INVESTMENT SECURITIES (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Investments in Debt Securities, AFS |
The following table presents the amortized cost, gross unrealized gains and losses and approximate fair values of investments in debt securities AFS at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | (in millions) | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Loss | | Fair
Value | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Loss | | Fair
Value | | U.S. Treasury securities | | $ | 227 | | | $ | — | | | $ | (1) | | | $ | 226 | | | $ | 700 | | | $ | 6 | | | $ | — | | | $ | 706 | | | Corporate debt securities | | 9 | | | — | | | — | | | 9 | | | — | | | — | | | — | | | — | | | ABS | | 2,040 | | | 1 | | | (4) | | | 2,037 | | | 948 | | | — | | | (3) | | | 945 | | Beneficial interest in Structured LLC (1) | | 1,043 | | | — | | | (30) | | | 1,013 | | | 1,070 | | | 27 | | | — | | | 1,097 | | | | | | | | | | | | | | | | | | | | MBS: | | | | | | | | | | | | | | | | | | GNMA - Residential | | 4,251 | | | — | | | (381) | | | 3,870 | | | 2,636 | | | — | | | (254) | | | 2,382 | | | GNMA - Commercial | | 600 | | | — | | | (163) | | | 437 | | | 622 | | | — | | | (143) | | | 479 | | | FHLMC and FNMA - Residential | | 2,354 | | | — | | | (358) | | | 1,996 | | | 1,925 | | | — | | | (288) | | | 1,637 | | | FHLMC and FNMA - Commercial | | 77 | | | — | | | (2) | | | 75 | | | 82 | | | — | | | — | | | 82 | | Unallocated fair value hedge basis adjustment (2) | | (95) | | | — | | | 95 | | | — | | | (27) | | | — | | | 27 | | | — | | | Total investments in debt securities AFS | | $ | 10,506 | | | $ | 1 | | | $ | (844) | | | $ | 9,663 | | | $ | 7,956 | | | $ | 33 | | | $ | (661) | | | $ | 7,328 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Represents a 20 percent interest in the Structured LLC to hold and service a pool of multi-family loans. (2) The Company has entered into fair value hedges of portions of a closed portfolio of AFS debt securities, using the portfolio layer method. Refer to Note 13 for additional information.
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| Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Investments in Debt Securities, HTM |
The following table presents the amortized cost, gross unrealized gains and losses and approximate fair values of investments in debt securities HTM at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | (in millions) | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Loss | | Fair
Value | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Loss | | Fair
Value | | U.S. Treasury securities | | $ | 1,788 | | | $ | — | | | $ | (17) | | | $ | 1,771 | | | $ | 2,080 | | | $ | 8 | | | $ | — | | | $ | 2,088 | | | | | | | | | | | | | | | | | | | ABS and other interests in structured securities | | 1,942 | | | 2 | | | (15) | | | 1,929 | | | 2,020 | | | 13 | | | (2) | | | 2,031 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | MBS: | | | | | | | | | | | | | | | | | | GNMA - Residential | | 4,544 | | | — | | | (531) | | | 4,013 | | | 3,106 | | | 4 | | | (402) | | | 2,708 | | | GNMA - Commercial | | 9,551 | | | 135 | | | (1,181) | | | 8,505 | | | 4,525 | | | — | | | (888) | | | 3,637 | | | FHLMC and FNMA - Residential | | 3,882 | | | 1 | | | (215) | | | 3,668 | | | 1,434 | | | 3 | | | (77) | | | 1,360 | | | FHLMC and FNMA - Commercial debt securities | | 877 | | | — | | | (31) | | | 846 | | | 47 | | | — | | | — | | | 47 | | | Total investments in debt securities HTM | | $ | 22,584 | | | $ | 138 | | | $ | (1,990) | | | $ | 20,732 | | | $ | 13,212 | | | $ | 28 | | | $ | (1,369) | | | $ | 11,871 | |
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| Schedule of Carrying Value of Investment Securities Pledged as Collateral |
The following table presents the carrying value of the Company's investment securities pledged as collateral:
| | | | | | | | | | | | | | | | (in millions) | | September 30, 2026 | | December 31, 2025 | | Pledged against public fund deposits | | $ | 6,387 | | | $ | 2,267 | | | Pledged against borrowing capacity with the FRB | | 3,611 | | | 4,270 | | | Pledged against repurchase agreements and supported hedging relationships, recourse on loans, and other agreements | | 551 | | | 336 | | | | | | | | Pledged against borrowing capacity with the FHLB | | 4,556 | | | 4,428 | | | | | | | | Total collateral pledged | | $ | 15,105 | | | $ | 11,301 | | | | | | |
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| Schedule of Contractual Maturities of Investments in Debt Securities for AFS and HTM |
Contractual maturities of the Company’s investments in debt securities AFS at September 30, 2026 were as follows: | | | | | | | | | | | | | | | | | | | | | (in millions) | | Amortized Cost(1) | | Fair Value | | Due within one year | | $ | 32 | | | $ | 32 | | | Due after 1 year but within 5 years | | 316 | | | 310 | | | Due after 5 years but within 10 years | | 791 | | | 780 | | | Due after 10 years | | 9,462 | | | 8,541 | | | Total | | $ | 10,601 | | | $ | 9,663 | | (1) Does not include unallocated fair value hedge basis adjustment. | | | | |
NOTE 2. INVESTMENT SECURITIES (continued)
Contractual maturities(1) of the Company’s investments in debt securities HTM at September 30, 2026 were as follows: | | | | | | | | | | | | | | | | | | | | | (in millions) | | Amortized Cost | | Fair Value | | Due within one year | | $ | 916 | | | $ | 915 | | | Due after 1 year but within 5 years | | 1,292 | | | 1,270 | | | Due after 5 years but within 10 years | | 1,147 | | | 1,123 | | | Due after 10 years | | 19,229 | | | 17,424 | | | Total | | $ | 22,584 | | | $ | 20,732 | |
(1) Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. |
| Schedule of Aggregate Amount of Unrealized Losses on Debt Securities in AFS Investment Portfolios |
The following table presents the aggregate amount of unrealized losses on debt securities in the Company’s AFS investment portfolios classified according to the amount of time those securities have been in a continuous loss position as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | Less than 12 months | | 12 months or longer | | Less than 12 months | | 12 months or longer | | (in millions) | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | U.S. Treasury securities | | $ | 226 | | | $ | (1) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Corporate debt securities | | 9 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | ABS | | 946 | | | (2) | | | 369 | | | (2) | | | 434 | | | (1) | | | 190 | | | (2) | | Beneficial Interest in Structured LLC (1) | | 977 | | | (30) | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | MBS: | | | | | | | | | | | | | | | | | | GNMA - Residential | | 1,262 | | | (29) | | | 2,035 | | | (352) | | | 25 | | | — | | | 2,346 | | | (254) | | | GNMA - Commercial | | — | | | — | | | 437 | | | (163) | | | — | | | — | | | 479 | | | (143) | | | FHLMC and FNMA - Residential | | 245 | | | (6) | | | 1,426 | | | (352) | | | — | | | — | | | 1,623 | | | (288) | | | FHLMC and FNMA - Commercial | | — | | | — | | | 76 | | | (2) | | | — | | | — | | | 81 | | | — | | | | | | | | | | | | | | | | | | | Total investments in debt securities AFS (2) | | $ | 3,665 | | | $ | (68) | | | $ | 4,343 | | | $ | (871) | | | $ | 459 | | | $ | (1) | | | $ | 4,719 | | | $ | (687) | |
(1) Represents a 20 percent interest in the Structured LLC to hold and service a pool of multi-family loans. (2) Does not include unallocated fair value hedge basis adjustment.
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| Schedule of Aggregate Amount of Unrealized Losses on Debt Securities in HTM Investment Portfolios |
The following table presents the aggregate amount of unrealized losses on debt securities in the Company’s HTM investment portfolios classified according to the amount of time those securities have been in a continuous loss position as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | Less than 12 months | | 12 months or longer | | Less than 12 months | | 12 months or longer | | (in millions) | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | U.S. Treasury securities | | $ | 1,771 | | | $ | (17) | | | $ | — | | | $ | — | | | $ | 305 | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | ABS and other interests in structured securities | | 911 | | | (14) | | | 35 | | | (1) | | | 262 | | | (2) | | | 5 | | | — | | | | | | | | | | | | | | | | | | | | MBS: | | | | | | | | | | | | | | | | | | GNMA - Residential | | 2,043 | | | (41) | | | 1,637 | | | (490) | | | 74 | | | — | | | 1,858 | | | (402) | | | GNMA - Commercial | | 2,658 | | | (128) | | | 3,256 | | | (1,053) | | | 21 | | | (1) | | | 3,588 | | | (887) | | | FHLMC and FNMA - Residential | | 2,442 | | | (90) | | | 907 | | | (125) | | | 22 | | | — | | | 1,043 | | | (77) | | | FHLMC and FNMA - Commercial | | 846 | | | (31) | | | — | | | — | | | 47 | | | — | | | — | | | — | | | Total investments in debt securities HTM | | $ | 10,671 | | | $ | (321) | | | $ | 5,835 | | | $ | (1,669) | | | $ | 731 | | | $ | (3) | | | $ | 6,494 | | | $ | (1,366) | |
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| Schedule of Gains and Losses From Investment and Trading Securities |
The realized gains and losses from investment and trading securities were as follows for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | (in millions) | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | AFS debt and other securities: | | | | | | | | | | | | Gross realized gains | | $ | 3 | | | $ | — | | | $ | 5 | | | $ | — | | | | | Gross realized losses | | (150) | | | — | | | (150) | | | — | | | | | | | | | | | | | | | | Net realized losses on AFS and other securities | | $ | (147) | | | $ | — | | | $ | (145) | | | $ | — | | | | | Total trading securities gains / (losses) | | (17) | | | 53 | | | — | | | 115 | | | | | Total equity securities gains / (losses) | | (12) | | | — | | | 16 | | | — | | | | | Securities gains / (losses), net | | $ | (176) | | | $ | 53 | | | $ | (129) | | | $ | 115 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Schedule of Other Investments |
Other investments consisted of the following as of the dates indicated: | | | | | | | | | | | | | | | | (in millions) | | September 30, 2026 | | December 31, 2025 | | FHLB and FRB stock | | $ | 1,067 | | | $ | 508 | | | LIHTC investments | | 1,886 | | | 1,034 | | | | | | | Equity securities (1) | | 1,034 | | | 1,020 | | Interest-bearing deposits with an affiliate bank (2) | | 5 | | | 5 | | | | | | | | Total | | $ | 3,992 | | | $ | 2,567 | |
(1) Includes $6 million and $4 million of retained interests in structured entities related to off-balance sheet securitizations and $97 million and $23 million of equity securities accounted for at cost less impairment as of September 30, 2026 and December 31, 2025, respectively. (2) Interest-bearing deposits include deposits maturing in more than 90 days with Santander affiliates that are not consolidated.
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| Schedule of FHLB AND FRB Stock Purchases And Redemptions |
The Company's FHLB and FRB stock purchases and redemptions were as follows for the period indicated below. There were no gains or losses associated with these redemptions.
| | | | | | | | | | | | | | | | (in millions) | | Three months ended September 30, 2026 | | | | Nine months ended September 30, 2026 | | FHLB stock purchased at par | | $ | 392 | | | | | $ | 424 | | | FHLB stock redeemed at par | | 182 | | | | | 264 | | | FRB stock purchased at par | | 238 | | | | | 254 | | | FRB stock redeemed at par | | — | | | | | 5 | |
Supplemental cash flow information for the nine months ended September 30, 2026 and 2025 was as follows: | | | | | | | | | | | | | | | | | | | Nine months ended September 30, | | | 2026 | | 2025 | | | | | (in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NON-CASH TRANSACTIONS | | | | | | | Loans transferred to/(from) OREO and other repossessed assets | | $ | 24 | | | $ | 21 | | | | | Loans transferred from/(to) LHFI (from)/to LHFS, net | | 550 | | | 41 | | | | | Transfer of financial interest in a VIE - Loans | | — | | | 245 | | | | Transfer of financial interest in a VIE - Borrowings | | — | | | 154 | | | | | Unsettled purchases of investment securities | | 2,329 | | | 109 | | | | | Unsettled sales of investment securities | | 1,469 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-cash transfer of financial assets in an off-balance sheet securitization transaction | | — | | | 1,149 | | | | | | | | | | | | | | | | | | | Dividends declared and payable to shareholder | | — | | | 44 | | | | | Exchange of Webster Series F and G preferred stock for SHUSA Series H and I preferred stock | | 252 | | | — | | | | Contribution from Parent Company (1) | | 9,317 | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Net of cash contributed of $3.2 billion. Includes Webster Series F and G preferred stock acquired for no consideration in the amount of $252 million.
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