Santander Holdings USA, Inc.
For the period ended Mar 31, 2026. Filed May 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 4, 2026
SNUS-PH$20.44+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-03.
0000811830-25-000045
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0000811830-26-000015
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 259 previous paragraphs and 220 current paragraphs.
128 unchanged; 63 reworded; 29 added; 66 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 29 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
Agreement to Acquire Webster Financial Corporation
Current report
On February 3, 2026, Santander and Webster entered into the Transaction Agreement. Among other things, the Transaction Agreement provides for the merger of Webster with and into Webster Virginia, with Webster Virginia continuing as the surviving corporation in such merger transactions, and, immediately afterwards, the acquisition by Santander of all outstanding shares of Webster Virginia common stock through a statutory share exchange, all subject to the terms and conditions of the Transaction Agreement. The Transaction Agreement is subject to standard governance procedures, including obtaining the approval of Santander's and Webster's shareholders. Following completion of these transactions, Santander and Webster intend for the following transactions to occur:
Current report
i. SHUSA and Santander intend to enter into an agreement which, among other things, provides for the contribution of all outstanding shares of Webster Virginia common stock to SHUSA.
Current report
ii. SHUSA and Webster Virginia intend to enter into an agreement which among other things, provides for the merger of Webster Virginia with and into SHUSA following the Webster Virginia contribution.
Current report
iii. SHUSA, SBNA and Webster Bank intend for (x) the contribution by SHUSA of all of the outstanding shares of capital stock of Webster Bank to SBNA for no considerations; and (y) the merger of Webster Bank with and into SBNA immediately following the Webster Bank contribution, with SBNA being the surviving bank of such merger.
Current report
On March 30, 2026, SHUSA SBNA and Webster Bank entered into an Agreement and Plan of Merger to provide for the Webster Bank contribution to SBNA and subsequent merger into SBNA. Also on March 30, 2026, SBNA submitted a Bank Merger Act application to request approval from the OCC for the bank merger. Regulatory applications have also been submitted to the Federal Reserve and the European Central Bank in connection with the transaction, approval of Santander's shareholders has been obtained and proxy materials soliciting approval of Webster's shareholders have been mailed.
Current report
Completion of the merger of Webster Bank into SBNA remains contingent upon the fulfillment of certain conditions at or prior to the event, including that all prior transactions related to the acquisition of Webster by Santander and subsequent contribution of Webster Bank to SBNA have closed and become effective.
Current report
Overall, the increase in net interest income for the three months ended March 31, 2026 compared to the same period in 2025, was primarily driven by higher yields on investment securities and coupled with reduced funding costs on deposits and Securities Financing Activities. These positive impacts were partially offset by lower loan-related income and declines in resale agreement activity. The net result reflects the combined effect of balance sheet repositioning and higher market interest rates during the period.
Current report
Net interest income increased $37.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The primary drivers of these changes are summarized below:
Current report
•Loans – Interest income on loans decreased $126.4 million for the three months ended March 31, 2026, compared to the same period in 2025. This change was primarily attributable to a $110.4 million decrease in average loan volume, most notably in the RICs and auto loan and personal unsecured loan portfolios combined with a lower average loan rate of $16.0 million. Refer to the “Loan Portfolio” section of this MD&A for further discussion of loan balances.
Current report
•Interest-earning deposits – Interest income on interest-earning deposits decreased $82.0 million for the three months ended March 31, 2026, compared to the corresponding period in 2025. This decrease reflected lower average volumes of $55.9 million and lower average rates of $26.2 million. This change was primarily driven by the changing interest rate environment.
Current report
•Securities purchased under resale agreements – Interest and fees on federal funds sold and securities purchased under resale agreements decreased $130.8 million for the three months ended March 31, 2026, compared to the same period in 2025. This decrease is attributable to lower average volumes $58.3 million and lower average rates of $72.5 million.
Current report
•Investment securities – Interest income on investment securities increased $93.0 million compared to the corresponding period in 2025.This increase was attributable to higher average securities volumes of $66.8 million and higher average rates $26.1 million. Both increases were primarily driven by higher market interest rates.
Current report
•Deposits and related customer accounts – Interest expense on deposits and related customer accounts decreased $47.3 million for the three months ended March 31, 2026, compared to the corresponding period in 2025. This decrease was attributable to a lower average volume of $4.1 million combined with lower average deposit rates of $43.2 million. The rate declines were primarily related to lower money market and CD product rates, and partially offset by increased saving rates.
Current report
(1) Consumer fees primarily include consumer deposit fees, consumer loan fees, (including origination, servicing, and late fees),and insurance and investment fees.
Current report
(2) Commercial fees primarily include commercial deposit fees and commercial loan fees.
Current report
•Lease income decreased $144.5 million for the three months ended March 31, 2026 compared to the corresponding period in 2025, due to a reduction in leased vehicle units driven by lower new lease originations.
Current report
Total general, administrative and other expenses decreased $142.4 million for the three months ended March 31, 2026 compared to the corresponding period in 2025. This change was primarily comprised of:
Current report
•Other expenses decreased $50.6 million for the three months ended March 31, 2026 compared to the corresponding period in 2025, due to lower deposit insurance premiums.
Current report
•Fees and other income increased $30.2 million for the three months ended March 31, 2026 compared to the corresponding period of 2025, primarily due to servicing and origination fees related to RICs and auto loans.
Current report
•Interest income decreased $58.0 million for the three months ended March 31, 2026 compared to the corresponding period of 2025. This decrease was primarily due to lower loan balances and lower yields.
Current report
•Interest expense decreased $45.4 million for the three months ended March 31, 2026 compared to the corresponding period of 2025. This decrease was primarily due to lower deposit rates.
Current report
CIB reported income before income taxes of $73.1 million for the three months ended March 31, 2026 compared to income before income taxes of $18.6 million for the corresponding period of 2025. This increase was primarily attributable to strong performance in Global Markets and Banking, supported by the continued benefits of the multi-year investment in the investment banking platform. Factors contributing to this change were:
Current report
•Interest income decreased $78.1 million for the three months ended March 31, 2026 compared to the corresponding period in 2025. This decrease was due to interest income associated with Securities Financing Activities.
Current report
•Interest income decreased $59.1 million for the three months ended March 31, 2026 compared to the corresponding period of 2025. This decrease was due to interest income associated with deposits held at the Federal Reserve.
Current report
•Interest expense decreased $66.8 million for the three months ended March 31, 2026 compared to the corresponding period of 2025. This decrease was due to interest expense associated deposits, brokered deposits, reduced borrowings, and internal funding.
Current report
During the three months ended March 31, 2026, the Company provided loan modifications to customers with an amortized cost basis at March 31, 2026 of $1.2 billion, compared to $760.6 million for the corresponding period in 2025. Loan modifications primarily consist of payment deferrals in the RIC and auto loan portfolio. The increase in payment deferrals was primarily comprised of an increase of $160.2 million in the Multifamily portfolio and an increase of $88.3 million in the RIC and auto loan portfolio. The increase in the Multifamily portfolio was largely driven by a limited number of borrowers, including three relationships that accounted for a significant portion of the activity. The increase in All Other Modifications was primarily driven by an increase of $246.5 million in the CRE portfolio, which was similarly driven by a small number of large loans.
Current report
•issuance of CLNs for approximately $325.1 million
Current report
Securities Financing Activities
Removed paragraphs (66)
Previous report
SHUSA is the parent holding company of SBNA, a national banking association; SC, a consumer finance company headquartered in Dallas, Texas; BSI, a financial services company headquartered in Miami, Florida that offers a full range of banking services to foreign individuals and corporations based primarily in Latin America; SanCap, an institutional broker-dealer headquartered in New York which has significant capabilities in market-making via an experienced fixed-income sales and trading team and a focus on structuring and advisory services for asset originators in the real estate and specialty finance markets; SSLLC, a broker-dealer headquartered in Boston, Massachusetts; and several other subsidiaries. SHUSA is headquartered in Boston and SBNA's home office is in Wilmington, Delaware. SSLLC is a registered investment adviser with the SEC. SHUSA's two largest subsidiaries by asset size and revenue are SBNA and SC. SHUSA is a wholly-owned subsidiary of Santander.
Previous report
The Company specializes in banking and consumer finance. Its consumer financing is focused on vehicle finance, servicing of third-party vehicle financing, and delivering service to dealers and customers across the full credit spectrum. This includes indirect origination and servicing of vehicle loans and leases, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers, origination of vehicle loans through a web-based direct lending program, purchases of vehicle loans from other lenders, and servicing of automobile and recreational and marine vehicle portfolios for other lenders. The Company sells consumer vehicle loans and leases through flow agreements and, when market conditions are favorable, it accesses the ABS market through securitizations of consumer vehicle loans and leases.
Previous report
From May 2013 to July 2025, under the MPLFA with Stellantis, the Company operated as Stellantis' preferred provider for consumer loans, leases and dealer loans and provides services to Stellantis customers and dealers under the CCAP brand. In the second quarter of 2022, the Company announced it had reached an agreement with Stellantis to amend and extend the MPLFA. On July 28, 2025, the MPLFA was terminated effective September 15, 2025, except for certain trailing obligations for revenue- and risk-sharing on originations up to the termination's effective date.
Previous report
In addition to specialized consumer finance, the Company also attracts deposits and provides other retail banking services through its network of retail branches with locations in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island and originates small business, middle market, large and global commercial loans, multifamily loans, construction loans and other consumer loans and leases throughout the United States, with a focus on the Mid-Atlantic and Northeastern region. The Company also acquires deposits nationally through SBNA's online Openbank platform. For large institutional investors, the Company provides structured products, emerging markets credit and U.S. investment grade credit, U.S. rates, short-term fixed-income, debt and equity capital markets, investment banking, exchange-traded derivatives, and cash equities, benefiting from a combination of Santander’s global reach and access to financial hubs together with extensive local market knowledge and regional expertise.
Previous report
The Company uses its deposits, public and private borrowings, as well as other financing sources, to fund its loan and investment portfolios.
Previous report
In December 2023, SBNA acquired a 20 percent interest in the Structured LLC for approximately $1.1 billion. The Structured LLC was established by the FDIC to hold and service a $9.0 billion portfolio primarily consisting of New York based rent-controlled and rent-stabilized multifamily loans retained by the FDIC following a recent bank failure. SBNA's 20 percent interest is reported as an AFS debt security that had a fair value of approximately $1.1 billion and $1.2 billion at September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025, SBNA serviced approximately $8.2 billion of multi-family loans for the Structured LLC and receives a market rate servicing fee in the accompanying Condensed Consolidated Statements of Operations.
Previous report
Overview
Previous report
The unemployment rate at August 31, 2025 was 4.3% compared to 4.1% at June 30, 2025 and 4.1% one year ago. According to the U.S. Bureau of Labor Statistics, job gains in health care were partially offset by losses in government.
Previous report
Market year-to-date returns for the following indices based on closing prices for the period indicated were:
Previous report
At its September 2025 meeting, the FOMC lowered the federal funds rate target range to 4.00% - 4.25%. The FOMC continues to focus its policy making on maximum employment and achieving a 2.0% inflation target rate.
Previous report
The ten-year Treasury bond rate at September 30, 2025 was 4.15%, down from 4.57% at December 31, 2024.
Previous report
(2) On October 3rd, 2025 Moody's upgraded Santander's senior preferred debt rating from A2 to A1.
Previous report
CRA
Previous report
In March 2025, the federal banking regulatory agencies announced, in light of pending litigation, their intent to issue a proposal to rescind a final rule issued in October 2023 intended to modernize the CRA framework. The agencies stated they will continue to work together to promote a consistent regulatory approach to implement CRA.
Previous report
SBNA remains committed to complying with the CRA and achieving the goal of supporting local communities and expanding economic opportunities for families and small businesses.
Previous report
Net interest income increased $136.1 million and increased $294.9 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The most significant factors contributing to these changes were as follows:
Previous report
•Interest income on loans decreased $73.3 million and decreased $133.9 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributable to a decrease in average loan volume of $247.9 million and an increase in average rates of $174.6 million. The nine-month period change is attributable to a decrease in average loan volume of $351.2 million and an increase in average rates of $217.3 million. Refer to the discussion of changes in loan balances in the "Loan Portfolio" section of this MD&A.
Previous report
•Interest income on interest-earning deposits increased $8.7 million and increased $97.1 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributable to an increase in average interest-bearing deposits volume of $26.8 million and a decrease in average rates of $18.1 million. The nine-month period change is attributable to an increase in average interest-bearing deposits volume of $181.7 million and a decrease in average rates of $84.6 million.
Previous report
•Interest and fees on federal funds sold and securities purchased under resale agreements or similar arrangements decreased $314.2 million and decreased $897.1 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributable to a decrease in average federal funds sold and securities purchased under resale agreements or similar arrangements volume of $185.9 million and a decrease in average rates of $128.3 million. The nine-month period change is attributable to a decrease in average federal funds sold and securities purchased under resale agreements or similar arrangements volume of $527.4 million and a decrease in average rates of $369.7 million.
Previous report
•Interest income on investment securities increased $85.8 million and increased $201.0 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributable to an increase in average investment securities volume of $78.3 million and an increase in average rates of $7.5 million. The nine-month period change is attributable to an increase in average investment securities volume of $175.3 million and an increase in average rates of $25.7 million.
Previous report
•Interest expense on deposits and related customer accounts decreased $66.7 million and decreased $107.4 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributable to a decrease in average interest-bearing deposit volume of $34.1 million and a decrease in average rates of $32.6 million. The nine-month period change is attributable to a decrease in average interest-bearing deposit volume of $31.0 million and a decrease in average rates of $76.4 million. The decrease in average rates is primarily attributable to money market and CD products.
Previous report
Credit loss expense on consumer loans decreased $46.2 million and decreased $167.1 million for the three months and nine months ended September 30, 2025 compared to the corresponding periods in 2024 due to lower net charge-offs in RICs and auto loans, improvement in used car prices and lower exposure in Personal unsecured loans.
Previous report
•Consumer fees increased $25.0 million and $70.3 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to an increase in consumer loan fees.
Previous report
•Lease income decreased $141.1 million and $409.2 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, primarily driven by a lower number of active leased vehicle units and lower purchase option fees.
Previous report
•Miscellaneous income, net increased $137.1 million and $217.5 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, discussed further below.
Previous report
•Securities gains, net decreased $1.9 million and $69.2 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to a decrease in trading securities gains.
Previous report
Miscellaneous income
Previous report
Miscellaneous income increased $137.1 million and increased $217.5 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These changes were primarily comprised of:
Previous report
•A decrease in Net gain on operating leases, led by a decrease in volume of leased vehicles liquidated.
Previous report
•An increase in Other miscellaneous income/(loss), net, primarily due to more favorable outcomes on securitization transactions.
Previous report
Total general, administrative and other expenses decreased $116.8 million and $258.2 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The most significant factors contributing to these changes were as follows:
Previous report
•Other expenses decreased $41.7 million and $65.5 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to lower litigation reserve expense.
Previous report
•Fees and other income for Auto increased $40.3 million and increased $107.2 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These changes were primarily driven by higher auto servicing fees and gains on securitization of loan portfolios.
Previous report
•Credit loss expense in Auto decreased $137.3 million and decreased $226.0 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These decreases were driven by lower loan volume and improved net charge-off rates.
Previous report
•Total assets in Auto at September 30, 2025 decreased by $5.2 billion compared to the corresponding date in 2024. This decrease was driven by loan securitizations.
Previous report
•Credit loss expense in CRE decreased $27.2 million and $59.6 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods of 2024. These decreases were due to improved portfolio performance.
Previous report
•Credit loss expense in C&I increased $8.3 million and increased $43.7 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods of 2024. These increases were primarily due to prior year credit loss releases related to loan payoffs.
Previous report
CIB reported income before income taxes of $65.1 million and $135.7 million for the three months and nine months ended September 30, 2025, respectively, compared to a loss before income taxes of $35.1 million and $10.9 million for the corresponding periods in 2024, respectively. Factors contributing to these changes were:
Previous report
•Interest income decreased $277.2 million and $828.2 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The decreases were due to Securities Financing activities.
Previous report
•Fees and other income increased $57.5 million and $60.9 million for the three months and nine months ended September 30, 2025, respectively compared to the corresponding periods in 2024. These increases were primarily due to increased Global Banking Fees.
Showing the first 40 of 66 passages. Open the source sections for the rest.
Reworded paragraphs (63)
Previous wording
(3) Moody's rating represents SBNA long-term issuer rating.
Current wording
(2) Moody's rating represents SBNA's long-term issuer rating.
Previous wording
The Federal Reserve tailors its supervisory programs and regulatory requirements by category based on firm-specific characteristics such as total assets, cross-jurisdictional activity, and nonbank asset or off-balance sheet exposure. As of September 30, 2025, SHUSA was designated a Category IV institution under the Federal Reserve's tailoring rule. Institutions that change to a higher category would become subject to the requirements of the new category, as outlined by the Federal Reserve, generally within two quarters of the change in category.
Current wording
The Federal Reserve tailors its supervisory programs and regulatory requirements by category based on firm-specific characteristics such as total assets, cross-jurisdictional activity, and nonbank asset or off-balance sheet exposure. As of March 31, 2026, SHUSA was designated a Category IV institution under the Federal Reserve's tailoring rule. Institutions that change to a higher category due to organic growth or acquisition would become subject to the requirements of the new category, as outlined by the Federal Reserve, generally within two quarters of the change in category.
Previous wording
See the "Bank Regulatory Capital" section of this MD&A for the Company's capital ratios under Basel III standards. The implementation of certain regulations and standards relating to regulatory capital could disproportionately affect the Company's regulatory capital position relative to that of its competitors, including those that may not be subject to the same regulatory requirements as the Company.
Current wording
See the "Bank Regulatory Capital" section of this MD&A for the Company's capital ratios under Basel III standards. The implementation of certain regulations and standards relating to regulatory capital could disproportionately affect the Company's regulatory capital position relative to that of its competitors, including those that may not be subject to the same regulatory requirements as the Company. On March 19, 2026, the Federal bank regulatory agencies re-proposed capital rules which would have implemented the Basel III endgame reform package. The comment period is open until June 18, 2026. The re-proposal includes, but is not limited to, revisions to the current standardized approach to risk-based capital. SBNA is currently reviewing the proposal and assessing its impact. No effective date has been proposed while the agencies seek comment from the public on timing/transition.
Previous wording
(5)Includes allowance for loan losses and Other assets including leases, goodwill and intangibles, premises and equipment, net deferred tax assets, equity method investments, BOLI, accrued interest receivable, derivative assets, miscellaneous receivables, prepaid expenses and MSRs. Refer to Note 6 to the Condensed Consolidated Financial Statements for further discussion.
Current wording
(5)Includes allowance for loan losses and Other assets including leases, goodwill and intangibles, premises and equipment, net deferred tax assets, equity method investments, BOLI, accrued interest receivable, derivative assets, miscellaneous receivables, prepaid expenses and MSRs. Refer to Note 7 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for 2025 for further discussion.
Previous wording
•Interest expense on Securities Financing Activities and borrowed funds decreased $362.4 million and decreased $920.4 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributable to a decrease in average Securities Financing Activities and borrowed funds volume of $171.8 million and a decrease in average rates of $190.6 million. The nine-month period change is attributable to a decrease in average Securities Financing Activities and borrowed funds volume of $451.4 million and a decrease in average rates of $468.9 million.
Current wording
•Securities Financing Activities and borrowed funds- Interest expense on Securities Financing Activities and borrowed funds decreased $236.3 million for the three months ended March 31, 2026, compared to the same period in 2025. This decrease was attributable to a lower average Securities Financing Activities and borrowed funds volume of $123.9 million and lower average rates of $112.4 million. Decreases were primarily due to a decline in Securities Financing Activities.
Previous wording
The Company had credit loss expense of $368.1 million and $1.2 billion for the three months and nine months ended September 30, 2025, compared to a credit loss expense of $431.3 million and $1.3 billion for the corresponding periods in 2024. The lower credit loss expense during the three months and nine months ended September 30, 2025 was mainly due to lower net charge-offs in RICs and auto loans, partially offset by the decrease in the ACL driven by the sale of certain RICs and auto loans, improvement in used car prices, lower exposure in Personal unsecured loans and rating improvement in certain loans in Commercial.
Current wording
The Company had credit loss expense of $431.3 million for the three months ended March 31, 2026, compared to a credit loss expense of $425.9 million for the corresponding period in 2025. The credit loss expense during the three months ended March 31, 2026 was mainly due to charge-offs, net of recoveries in RICs and auto loans, partially offset by a release in the ACL reserves primarily attributable to seasonality and changes in portfolio composition in RIC and auto loan and lower exposure in personal unsecured loans portfolio.
Previous wording
Credit loss expense on commercial loans decreased $20.4 million and decreased $0.6 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024.
Current wording
Credit loss expense on commercial loans increased $18.1 million for the three months ended March 31, 2026 compared to the corresponding period in 2025.
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The credit loss expense on unfunded credit losses for the three months and nine months ended September 30, 2025 increased $3.3 million and increased $17.1 million compared to the corresponding periods in 2024.
Current wording
The credit loss expense on unfunded credit losses for the three months ended March 31, 2026 decreased $12.7 million compared to the corresponding period in 2025.
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Total non-interest income increased $68.6 million and decreased $116.1 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These changes were primarily comprised of:
Current wording
Total non-interest income decreased $74.3 million for the three months ended March 31, 2026 compared to the corresponding period in 2025. These changes were primarily comprised of:
Previous wording
•Capital market revenue increased $51.7 million and $66.1 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to an increase in investment banking income.
Current wording
•Capital market revenue increased $74.9 million for the three months ended March 31, 2026 compared to the corresponding period in 2025, driven by higher investment banking income and increased derivative gains.
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•Lease expense decreased $107.4 million and $303.8 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024, due to lower auto lease volumes resulting in lower depreciation expense.
Current wording
•Lease expense decreased $67.9 million for the three months ended March 31, 2026 compared to the corresponding period in 2025, due to lower auto lease volumes resulting in lower depreciation expense.
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An income tax provision of $89.6 million and $144.5 million was recorded for the three months and nine months ended September 30, 2025, respectively, compared to a benefit of $32.2 million and $74.3 million for the corresponding periods in 2024. This resulted in an ETR of 16.4% and 9.9% for the three months and nine months ended September 30, 2025, respectively, compared to (20.0)% and (8.5)% for the corresponding periods in 2024.
Current wording
An income tax provision of $68.6 million was recorded for the three months ended March 31, 2026 compared to an income tax provision of $16.9 million for the corresponding period in 2025. This resulted in an ETR of 14.2% for the three months ended March 31, 2026 compared to 4.4% for the corresponding period in 2025.
Previous wording
The ETR for the three months and nine months ended September 30, 2025, when compared to the same periods in 2024, was directly impacted by (i) an increase in forecasted pre-tax income in 2025 and (ii) a decrease in electric vehicle tax credits expected to be generated in 2025.
Current wording
The increase in ETR for the three months ended March 31, 2026, when compared to the same period in 2025, was directly impacted by (i) an increase in forecasted pre-tax income in 2026 and (ii) no electric vehicle tax credits in 2026, offset by $44 million of tax benefit resulted from closed audit years recorded in the first quarter of 2026.
Previous wording
The Company manages its business activities by it six reportable segments, Auto, CBB, C&I, CRE, CIB, and Wealth Management. The tables below reflect certain information by reportable segment and includes additional supplementary information related to consumer activities and commercial activities. The supplementary information is deemed to be useful as it represents a view in how we manage the business and also aligns with how our parent, Santander, manages its business from a global perspective.
Current wording
The Company manages its business activities by its six reportable segments, Auto, CBB, C&I, CRE, CIB, and Wealth Management. The tables below reflect certain information by reportable segment and includes additional supplementary information related to consumer activities and commercial activities. The supplementary information is deemed to be useful as it represents a view in how we manage the business and also aligns with how our parent, Santander, manages its business from a global perspective. Information reported in this Form 10-Q in respect of the CIB segment includes only information within the Company’s Condensed Consolidated Financial Statements, and does not include information in respect of Santander’s New York branch, which is reported within Santander’s consolidated financial statements.
Previous wording
The Company reported total income before income taxes related to its Consumer activities of $450.8 million and $1.3 billion for the three months and nine months ended September 30, 2025, respectively, compared to income before income taxes of $214.8 million and $899.2 million for the corresponding periods in 2024. The most significant drivers of these changes were:
Current wording
The Company reported total income before income taxes related to its Consumer activities of $349.0 million for the three months ended March 31, 2026 compared to income before income taxes of $321.8 million for the corresponding period in 2025. The most significant drivers of this change were:
Previous wording
•Lease income decreased $141.1 million and $409.2 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These changes where primarily driven by lower average auto lease volumes.
Current wording
•Lease income decreased $144.5 million for the three months ended March 31, 2026 compared to the corresponding period of 2025, driven by lower average Auto lease balances.
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•Lease expense decreased $107.4 million and $303.8 million three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These changes where primarily driven by lower average auto lease balances.
Current wording
•Lease expense decreased $67.9 million for the three months ended March 31, 2026 compared to the corresponding period of 2025, driven by lower average auto lease balances leading to lower depreciation expense.
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Commercial activities consists of the Company's C&I reportable segment and CRE reportable segment.
Current wording
Commercial activities consist of the Company's C&I and CRE reportable segments.
Previous wording
The Company reported total income before income taxes related to its Commercial activities of $180.3 million and $487.9 million for the three months and nine months ended September 30, 2025, respectively, compared to income before income taxes of $170.4 million and $501.9 million for the corresponding periods in 2024. The most significant drivers of these changes were:
Current wording
The Company reported total income before income taxes related to its Commercial activities of $124.9 million for the three months ended March 31, 2026 compared to income before income taxes of $146.0 million for the corresponding period in 2025. The most significant drivers of this change were:
Previous wording
•Interest expense decreased $318.6 million and $942.8 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These decreases were primarily due to interest expense associated with Securities Financing activities.
Current wording
•Interest expense decreased $128.9 million for the three months ended March 31, 2026 compared to the corresponding period in 2025. This decrease was due to interest expense associated with Securities Financing Activities.
Previous wording
•Total assets at September 30, 2025 increased $5.2 billion compared to the corresponding date in 2024. This increase was primarily due to trading inventory.
Current wording
•Total assets at March 31, 2026 increased $4.5 billion compared to the corresponding period in 2025. This increase was primarily due to trading inventory.
Previous wording
Wealth Management reported income before income taxes of $62.1 million and $217.7 million for the three months and nine months ended September 30, 2025, respectively, compared to income before income taxes of $65.2 million and $209.1 million for the corresponding periods in 2024. The primary factors contributing to these changes were:
Current wording
Wealth Management reported income before income taxes of $77.6 million for the three months ended March 31, 2026, compared to income before income taxes of $69.0 million for the corresponding period in 2025. The primary factors contributing to this change were:
Previous wording
•Total fees and other income increased $8.0 million and $39.8 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods in 2024. These increases were primarily driven by additional transaction fees on increased securities transaction activity and higher foreign exchange activity.
Current wording
•Fees and other income increased $25.6 million for the three months ended March 31, 2026 compared to the corresponding period in 2025. This increase was primarily due to fees on increased securities transaction activity.
Previous wording
•Total assets increased $944.8 million compared to the corresponding date in 2024. This increase was primarily due to acquisition of the interest in the U.K. Limited Partnership.
Current wording
•Total assets at March 31, 2026 increased $1.0 billion compared to the corresponding period in 2025. This increase was primarily due to the purchase of the interest in the U.K. Limited Partnership.
Previous wording
The Other category reported losses before income taxes of $212.2 million and $690.2 million for the three months and nine months ended September 30, 2025, respectively, compared to losses before income taxes of $254.2 million and $722.3 million for the corresponding periods in 2024. The primary factors contributing to these changes were:
Current wording
The Other category reported a loss before income taxes of $141.8 million for the three months ended March 31, 2026, compared to a loss before income taxes of $172.7 million for the corresponding period in 2025. The primary factors contributing to this change were:
Previous wording
•General, administrative and other expenses decreased $15.7 million and increased $42.5 million for the three months and nine months ended September 30, 2025, respectively, compared to the corresponding periods of 2024. These changes were primarily the result of timing in strategic investment and restructuring charges.
Current wording
•General, administrative and other expenses decreased $26.3 million for the three months ended March 31, 2026 compared to the corresponding period of 2025. This increase was primarily a result of prior year strategic investment and restructuring charges.
Previous wording
(1) As of September 30, 2025, the Company had $425.9 million of commercial loans that were denominated in a currency other than the U.S. dollar.
Current wording
(1) As of March 31, 2026, the Company had $325.3 million of commercial loans that were denominated in a currency other than the U.S. dollar.
Previous wording
Commercial loans decreased approximately $330.2 million, or 1.0%, from December 31, 2024 to September 30, 2025. This decrease was primarily attributable to a decrease in C&I loans of $600.7 million, and a decrease in CRE loans of $153.0 million, partially offset by an increase in Other commercial loans of $342.5 million.
Current wording
Commercial loans decreased approximately $221.6 million, or 0.7%, from December 31, 2025 to March 31, 2026. This decrease was primarily attributable to a decrease in C&I loans of $109.4 million and a decrease in CRE loans of $140.5 million, partially offset by an increase in Other commercial loans of $118.2 million.
Previous wording
Multifamily lending (occupied and construction) continues to be our focus, representing 76% of the total CRE and multifamily portfolio and 16.6% of total LHFI. Overall, occupancy across the multifamily loan portfolio and our primary markets, such as New York City, continues to be stable. Our construction originations are concentrated to well-established and proven builders and sponsors.
Current wording
Multifamily lending (occupied and construction) continues to be our focus. Overall, occupancy across the multifamily loan portfolio and our primary markets, such as New York City, continues to be stable. Our construction originations are concentrated to well-established and proven builders and sponsors. The Company's office exposure primarily consists of investment grade, single tenants with long leases.
Previous wording
Consumer loans secured by real estate decreased $515.3 million from December 31, 2024 to September 30, 2025 due to continued run-off in these portfolios.
Current wording
Consumer loans secured by real estate decreased $153.6 million from December 31, 2025 to March 31, 2026 due to continued run-off in these portfolios.
Previous wording
RICs and auto loans HFI decreased $1.6 billion from December 31, 2024 to September 30, 2025. This decrease represents off-balance sheet securitizations and collections offset by new origination activity. RICs are collateralized by vehicle titles, and the lender has the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. A significant portion of the Company's RICs HFI are pledged against warehouse lines or securitization bonds. Refer to further discussion of these in Note 9 to the Condensed Consolidated Financial Statements.
Current wording
RICs and auto loans HFI increased $804.2 million from December 31, 2025 to March 31, 2026. This increase represents primarily new origination activity A significant portion of the Company's RICs HFI are pledged against warehouse lines or securitization bonds. Refer to further discussion of these in Note 7 to the Condensed Consolidated Financial Statements.
Previous wording
As of September 30, 2025, 61.8% of the Company's RIC and auto loan portfolio balance was comprised of nonprime loans (defined by the Company as customers with a FICO score of below 640) with customers who did not qualify for conventional consumer finance products as a result of, among other things, a lack of or adverse credit history, low income levels and/or the inability to provide adequate down payments. This also includes 6.5% of loans for which no FICO score was available. While underwriting guidelines are designed to establish that the customer would be a reasonable credit risk, nonprime loans will nonetheless experience higher default rates than a portfolio of obligations of prime customers. Additionally, higher unemployment rates, higher gasoline prices, unstable real estate values, re-sets of adjustable rate mortgages to higher interest rates, the general availability of consumer credit, and other factors that impact consumer confidence or disposable income could lead to an increase in delinquencies, defaults, and repossessions, as well as decreased consumer demand for used automobiles and other consumer products, weaken collateral values and increase losses in the event of default. Because the historical focus for such credit has been predominantly on nonprime consumers, the actual rates of delinquencies, defaults, repossessions, and losses on these loans could be more dramatically affected by a general economic downturn.
Current wording
As of March 31, 2026, 62.1% of the Company's RIC and auto loan portfolio balance was comprised of nonprime loans (defined by the Company as customers with a FICO score of below 640) with customers who did not qualify for conventional consumer finance products as a result of, among other things, a lack of or adverse credit history, low income levels and/or the inability to provide adequate down payments. This also includes 6.4% of loans for which no FICO score was available. While underwriting guidelines are designed to establish that the customer would be a reasonable credit risk, nonprime loans will nonetheless experience higher default rates than a portfolio of obligations of prime customers. Additionally, higher unemployment rates, higher gasoline prices, unstable real estate values, re-sets of adjustable rate mortgages to higher interest rates, the general availability of consumer credit, and other factors that impact consumer confidence or disposable income could lead to an increase in delinquencies, defaults, and repossessions, as well as decreased consumer demand for used automobiles and other consumer products, weaken collateral values and increase losses in the event of default. Because the historical focus for such credit has been predominantly on nonprime consumers, the actual rates of delinquencies, defaults, repossessions, and losses on these loans could be more dramatically affected by a general economic downturn.
Previous wording
Personal unsecured and other consumer loans HFI decreased $298.9 million from December 31, 2024 to September 30, 2025. This decrease was primarily attributable to run-off in the portfolio.
Current wording
Personal unsecured and other consumer loans HFI decreased $39.1 million from December 31, 2025 to March 31, 2026. This decrease was primarily due to run-off in the portfolio.
Previous wording
Commercial NCOs during the period to average loans increased from September 30, 2024 to September 30, 2025. The increase in NCOs was primarily in the CRE portfolio. Consumer NCOs during the period to average loans decreased from September 30, 2024 to September 30, 2025. This decrease was primarily due to the sale of loans in the Personal unsecured portfolio in 2024.
Current wording
Commercial NCOs during the period to average loans decreased from March 31, 2025 to March 31, 2026. The decrease in NCOs was primarily in the CRE portfolio. Consumer NCOs during the period to average loans decreased from March 31, 2025 to March 31, 2026. This decrease was primarily due to the sale of loans in the Personal unsecured portfolio in 2025 and an increase in recoveries.
Previous wording
Commercial NPLs increased $16.7 million from December 31, 2024 to September 30, 2025. Commercial NPLs accounted for 1.8% of commercial LHFI at September 30, 2025. The change in commercial NPLs was primarily comprised of an increase of $80.0 million in the Multifamily portfolio, a decrease of $41.8 million in the CRE portfolio, and a decrease of $17.9 million in the C&I portfolio.
Current wording
Commercial NPLs increased $126.2 million from December 31, 2025 to March 31, 2026. Commercial NPLs accounted for 2.0% of commercial LHFI at March 31, 2026. The change in commercial NPLs was primarily comprised of an increase of $85.2 million in the Multifamily portfolio, an increase of $1.5 million in the CRE portfolio, and an increase of $39.3 million in the C&I portfolio.
Previous wording
NPLs in the consumer loans secured by real estate portfolio decreased year-over-year primarily resulting from the continued run-off of the portfolio. Non-performing consumer loans secured by real estate in foreclosure were $46.3 million, or 43.9%, of non-performing consumer loans secured by real estate at September 30, 2025, compared to $55.4 million, or 45.2%, at December 31, 2024.
Current wording
NPLs in the consumer loans secured by real estate portfolio decreased year-over-year primarily resulting from the continued run-off of the portfolio. Non-performing consumer loans secured by real estate in foreclosure were $44.6 million, or 43.0%, of non-performing consumer loans secured by real estate at March 31, 2026, compared to $44.4 million, or 38.2%, at December 31, 2025.
Previous wording
RICs are classified as non-performing when they are more than 60 DPD (i.e., 61 or more DPD) with respect to principal or interest. Except for loans accounted for using the FVO, at the time a loan is placed on non-performing status, previously accrued and uncollected interest is reversed against interest income. When an account is 60 days or less past due, it is returned to performing status and the Company returns to accruing interest on the loan. NPLs in the RIC and auto loan portfolio increased by $254.7 million from December 31, 2024 to September 30, 2025. Non-performing RICs and auto loans accounted for 5.8% and 5.0% of total RICs and auto loans at September 30, 2025 and December 31, 2024, respectively.
Current wording
RICs are classified as non-performing when they are more than 60 DPD (i.e., 61 or more DPD) with respect to principal or interest. Except for loans accounted for using the FVO, at the time a loan is placed on non-performing status, previously accrued and uncollected interest is reversed against interest income. When an account is 60 days or less past due, it is returned to performing status and the Company returns to accruing interest on the loan. NPLs in the RIC and auto loan portfolio decreased by $436.3 million from December 31, 2025 to March 31, 2026. Non-performing RICs and auto loans accounted for 5.2% and 6.3% of total RICs and auto loans at March 31, 2026 and December 31, 2025, respectively.
Previous wording
The accrual of interest on revolving personal loans continues until the loan is charged off. Credit cards are charged off when they are 180 days delinquent or within 60 days after the receipt of notification of the cardholder’s death or bankruptcy. NPLs in the personal unsecured portfolio decreased by $271.0 thousand from December 31, 2024 to September 30, 2025. Non-performing personal unsecured loans accounted for 0.02% and 0.03% of total personal unsecured loans at September 30, 2025 and December 31, 2024, respectively.
Current wording
The accrual of interest on revolving personal loans continues until the loan is charged off. Credit cards are charged off when they are 180 days delinquent or within 60 days after the receipt of notification of the cardholder’s death or bankruptcy. NPLs in the personal unsecured portfolio decreased by $8.0 thousand from December 31, 2025 to March 31, 2026. Non-performing personal unsecured loans accounted for 0.02% and 0.02% of total personal unsecured loans at March 31, 2026 and December 31, 2025, respectively.
Previous wording
Early stage delinquency in commercial loans totaled approximately $163.8 million and $178.2 million at September 30, 2025 and December 31, 2024, respectively. Early stage delinquency consumer loans amounted to $6.0 billion and $5.5 billion at September 30, 2025 and December 31, 2024, respectively. Management has included these loans in its evaluation of the Company's ACL and reserved for them during the respective periods.
Current wording
Early stage delinquency in commercial loans totaled approximately $197.6 million and $257.5 million at March 31, 2026 and December 31, 2025, respectively. Early stage delinquency consumer loans amounted to $5.5 billion and $6.2 billion at March 31, 2026 and December 31, 2025, respectively. Management has included these loans in its evaluation of the Company's ACL and reserved for them during the respective periods.
Previous wording
The Company generally considers an account delinquent when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. Overall, total delinquencies increased by $629.4 million from December 31, 2024 to September 30, 2025. The main driver of this is the increase in past due loans in the RIC and auto loan portfolio.
Current wording
The Company generally considers an account delinquent when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. Overall, total delinquencies decreased by $945.8 million from December 31, 2025 to March 31, 2026. The main driver of this is the decrease in past due loans in the RIC and auto loan portfolio.
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Previous report — wording carried elsewhere
Office CRE loans represent 8.4% of the total CRE and multifamily portfolio and 2% of total LHFI. The Company's office exposure primarily consists of investment grade, single tenants with long leases.
Previous report — wording carried elsewhere
Any dividend declared and paid or return of capital has the effect of reducing capital ratios. Refer to the section captioned "Liquidity and Capital Resources" in this MD&A for discussion of the Company's dividends.