Santander Holdings USA, Inc.

What they do

SHUSA operates through subsidiaries including Santander Bank, N.A. (SBNA), a national bank; Santander Consumer USA (SC), a Dallas-based auto finance company; Banco Santander International (BSI), which serves Latin American clients from Miami; SanCap, an institutional broker-dealer; and Santander Securities LLC. Consumer financing centers on vehicle loans and leases originated mainly through manufacturer-franchised dealers, plus a web-based direct lending program and third-party servicing. Retail and commercial banking is conducted through branches in nine states, online via Openbank, and through commercial, multifamily, and construction lending focused on the Mid-Atlantic and Northeast. Reportable segments are Auto, CBB, C&I, CRE, CIB, and Wealth Management.

Revenue drivers

• Auto — Consumer and commercial auto loans and leases, dealer floorplan and dealer loans, and third-party vehicle servicing, largely originating through franchised dealers; RICs and auto loans averaged $43.76B in Q2 2026 and earned 13.25%, the highest-yielding major loan category.
• Commercial banking (C&I, CRE, other commercial, multifamily) — Total commercial loans averaged $34.20B in Q2 2026 and earned 5.27%, spanning middle-market and large corporate lending, commercial real estate, and multifamily, where the company describes itself as a leading multifamily bank lender.
• Consumer and Business Banking (CBB) — Deposit gathering and retail banking through branches in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island, plus SBNA's online Openbank platform; average interest-bearing deposits were $67.03B at a 2.64% cost in Q2 2026.
• CIB and Wealth Management — Institutional fixed income, structured products, capital markets, and investment banking through SanCap, and international wealth management for Latin American UHNW and HNW clients through BSI; the company cited $36B in CIB assets and $64B in Wealth Management assets/AUM.

Recent performance

Net income has moved sharply over five years: $2.98B in 2021, $1.41B in 2022, $932.9M in 2023, $1.08B in 2024, and $1.65B in 2025. Operating cash flow declined over the same period, from $8.54B in 2021 to $1.16B in 2024 before recovering to $2.01B in 2025. Dividends paid to the parent were $4.75B in 2022, $3.00B in 2023, $1.125B in 2024, and $1.355B in 2025. In Q2 2026, average total earning assets were $150.62B yielding 7.65%, down from 8.33% a year earlier, while average total loans fell to $85.20B from $88.76B. Total assets were $164.54B at June 30, 2026, with shareholder equity of $16.50B and cash and equivalents of $11.38B.

Strategy

The clearest stated action is the merger of Santander Consumer USA Holdings Inc. into SBNA, for which SBNA filed applications with the FDIC and OCC on December 30, 2025, with SBNA as the surviving entity. The earnings presentation notes new auto originations transitioned to SBNA beginning March 2026, and SC continues to fund auto loans and leases with warehouse borrowings, ABS, and SHUSA debt. The company also grows deposits nationally through the Openbank platform and continues to sell consumer vehicle loans and leases through flow agreements and ABS securitizations when market conditions are favorable. Its largest business relationship, the MPLFA with Stellantis under the CCAP brand, was terminated effective September 15, 2025, leaving only trailing revenue- and risk-sharing obligations on originations made before that date. Segment reporting is organized around Auto, CBB, C&I, CRE, CIB, and Wealth Management.

Risks

• Loss of the Stellantis origination agreement — The MPLFA with Stellantis, under which the company was the preferred provider of consumer loans, leases, and dealer loans under the CCAP brand, was terminated effective September 15, 2025, with only trailing obligations remaining.
• Credit concentration in auto lending — RICs and auto loans averaged $43.76B of an $85.20B total loan book in Q2 2026 and carried a 13.25% yield, so auto credit performance disproportionately drives results.
• Funding cost and deposit sensitivity — The company relies primarily on deposits to fund lending; average savings rates rose to 3.05% in Q2 2026 from 2.44% a year earlier, and the 10-K cites changes in credit spreads and market rates as able to significantly increase funding costs.
• Regulatory and merger execution risk — The pending SC-into-SBNA merger requires FDIC and OCC approval, and the 10-K states regulators can restrict planned capital actions or impose fines and enforcement actions if expectations are not met.

Outlook

The filings describe a company mid-transition: auto originations are moving to SBNA from March 2026 and the Stellantis relationship has ended, while the SC merger application is pending with the FDIC and OCC. Q2 2026 results show a smaller loan book and lower earning-asset yields than a year earlier, with funding costs still elevated on savings and CDs. The 10-K does not provide specific guidance for 2026. Management's presentation framing points to the transition of auto originations into the bank and continued funding through deposits and securitizations.