DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Fair Values of the Assets and Liabilities

The following table presents Santander's acquisition date accounting that established the carrying basis of assets and liabilities subsequently contributed to SHUSA. The excess of Santander’s purchase price and noncontrolling interest obtained over the estimated fair value of net assets acquired and contributed to the Company has been recorded as goodwill.

NOTE 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued)


(in millions)
Consideration:
Common stock issued (329,846,439 shares)			$	4,674
Common stock awards converted			10
Cash paid			7,826



Fair value of Santander's consideration			$	12,510
Fair value of assets:
Cash and cash equivalents	$	3,193
Investment securities	17,842
Loans held for investment, net	55,731
Other intangible assets	2,264
All other assets (includes $158 of deferred taxes on purchase accounting fair value adjustments)	3,471
Total assets acquired	$	82,501
Fair value of liabilities:
Deposits and other customer accounts	$	70,718
Federal funds purchased and securities loaned or sold under repurchase agreements	94
Borrowings and other debt obligations	4,285
Accounts payable, accrued expenses, and other liabilities	1,120
Total liabilities acquired	$	76,217

Less: Fair value of net assets acquired			$	6,284
Plus: Preferred stock acquired (1)			$	252

Goodwill resulting from Santander's acquisition			$	6,478
(1) Represents fair value of non-controlling interest preferred stock for Santander recorded as equity for SHUSA.

Schedule of Finite-Lived Intangible Assets

The core deposit intangible and other intangible assets are being amortized on an accelerated basis over its estimated useful life as follows:


(dollars in millions)	Amount		Selected Useful Life
Identified intangible assets:
Core deposit intangibles - consumer and commercial	$	1,441	7-11 years
Core deposit intangibles - health savings accounts	517		8 years
Core deposit intangibles - workers comp administration funds	234		16 years
Customer relationships and other intangibles(1)	72		10 years
	$	2,264
(1) Includes $10 million of trade names which are indefinite-lived.

The following table details amounts related to the Company's intangible assets for the dates indicated:


	September 30, 2026				December 31, 2025
(in millions)	Net Carrying Amount		Accumulated Amortization		Net Carrying Amount		Accumulated Amortization
Intangible assets subject to amortization:
CDI	$	2,150	$	(42)	$	—	$	—
Dealer networks	172		(298)		190		(280)
Stellantis relationship NV	—		—		—		(139)

Customer relationships and other intangibles	79		(67)		24		(60)
Total intangible assets subject to amortization	$	2,401	$	(407)	$	214	$	(479)
Indefinite-lived intangible assets:
Trade names	10		—		—		—
Total Other intangible assets	$	2,411	$	(407)	$	214	$	(479)

Schedule of Business Acquisition, Pro Forma Information Combined Results of Operations

The following unaudited pro forma information presents combined results of operations as if the contribution had occurred on January 1, 2025:


(in millions)	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Net interest income	$	2,266	$	2,215	$	6,660	$	6,518
Non-interest income	740		975		2,559		2,911
Net income	248		705		1,721		2,033