RELATED PARTY TRANSACTIONS |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the normal course of business, the Company conducts business with Santander and its subsidiaries. Santander policy requires that these transactions occur at prevailing market rates and terms, and, where applicable, these transactions are compliant with United States banking regulations. All extensions of credit by (and certain credit exposures of) the Bank to other Santander affiliates are legally required to be secured by eligible collateral. The following disclosures below are the more significant related party transactions entered into: On February 3, 2026, Santander and Webster entered into the Transaction Agreement, pursuant to which Santander acquired Webster on August 20, 2026. In connection with the acquisition, Santander contributed Webster Virginia as successor to Webster, to SHUSA and merged Webster Bank with SBNA. Refer to Note 1 to these Condensed Consolidated Financial Statements. Debt and derivative activities The Company and its affiliates have various debt and derivative agreements with Santander. For further details of these agreements, see Note 9 and Note 13 to these Condensed Consolidated Financial Statements and Note 21 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for 2025. During the second quarter of 2026, the Company entered into a new fair value hedge with Santander to hedge the Company’s debt issuances. Mezzanine and Stockholder's Equity The Company has preferred stock outstanding as discussed in Note 12 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for 2025 and Note 11 to these Condensed Consolidated Financial Statements. As of September 30, 2026, Santander was the sole holder of the Company's Series E, F, G and J preferred stock. During the nine months ended September 30, 2026, the Company declared and paid dividends to its common stock shareholder, Santander, in the amount of $250 million. In addition, during the nine months ended September 30, 2026, the Company declared and paid dividends to its preferred stock shareholders, primarily Santander, in the amount of $135 million. During the nine months ended September 30, 2026, the Company acquired shares of common stock from Santander to satisfy vested stock awards granted to SHUSA employees. The share price paid to Santander was in excess of the price at the grant date by approximately $45 million. The excess is recorded as a return of capital to Santander. Deposit and checking accounts The Company holds deposits for affiliates that are not consolidated by SHUSA. Refer to Note 9 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for 2025. Repurchase Agreements The Company also enters into intercompany Securities Financing Activities with Santander and its affiliates as discussed in Note 13 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for 2025.
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