Webster Financial agrees to $12.3B Santander acquisition; NIM compresses 18bp as credit quality improves

Filed July 27, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 11, 2025 · ~2 min read

Key Changes

• high

  Banco Santander to acquire Webster for $48.75 cash + 2.0548 ADSs per share (~$12.3B total) in two-step merger; shareholder/OCC/ECB approvals secured, Federal Reserve approval pending, expected close H2 2026.

  MD&A: Santander Transaction verify on EDGAR →
• high

  Net interest margin compressed 18bp YoY to 3.26% (Q2) and 15bp YTD to 3.31% as asset yields fell 32bp while funding costs declined only 16bp, reflecting lower rates and balance-sheet mix shift.

  MD&A: Net Interest Margin verify on EDGAR →
• high

  Non-performing assets fell 20% to $430M; NPL ratio improved to 0.74% from 1.00%; reserve coverage of NPLs strengthened to 169% from 135%; provision for credit losses down 32% to $31.5M on favorable risk-rating migration.

  MD&A: Asset Quality verify on EDGAR →