Santander Holdings USA, Inc.
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
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.
Jun 30, 2025 · Filed Jul 30, 2025
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 2025-03-31; filed 2025-05-01.
0000811830-25-000023
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0000811830-25-000033
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 293 previous paragraphs and 260 current paragraphs.
162 unchanged; 73 reworded; 25 added; 58 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 29 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 (25)
Current report
•Interest income on loans decreased $65.8 million and decreased $60.6 million for the three months and six months ended June 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 $91.2 million and an increase in average rates of $25.4 million. The six-month period change is attributable to a decrease in average loan volume of $202.2 million and an increase in average rates of $141.6 million. Refer to the discussion of changes in loan balances in the "Loan Portfolio" section of this MD&A. The increases are also attributable to interest rate increases.
Current report
Miscellaneous income decreased $8.6 million and increased $80.4 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. These changes were primarily comprised of:
Current report
•A decrease in Other miscellaneous income / (loss), net quarter to date compared to 2024, which includes less gains on real estate owned. The year to date increase in Other miscellaneous income / (loss), net, compared to 2024 is driven by higher gains on securitization transactions and higher foreign exchange gains.
Current report
Total general, administrative and other expenses decreased $109.4 million and $141.4 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. The most significant factors contributing to these changes were as follows:
Current report
•Occupancy and equipment expenses increased $13.1 million and $40.8 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, due to higher depreciation expense.
Current report
•Technology, outside services, and marketing expense increased $18.4 million and $38.5 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, due to increasing technology costs related to continued banking system build-outs.
Current report
•Fees and other income for Auto increased $24.9 million and increased $66.9 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. These changes were primarily driven higher auto servicing fees and gains on securitization of loan portfolios.
Current report
•Credit loss expense in Auto decreased $105.5 million and decreased $88.7 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. These decreases were driven by lower loan volume and improved net charge-off rates.
Current report
•Total assets in Auto at June 30, 2025 decreased by $5.0 billion compared to the corresponding date in 2024. The decrease was driven by loan securitizations.
Current report
•Total assets in CBB at June 30, 2025 decreased by $2.0 billion compared to the corresponding date in 2024. The decrease was driven by portfolio runoff.
Current report
•Credit loss expense in CRE decreased $27.2 million and $32.3 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods of 2024. These decreases were due to improved portfolio performance.
Current report
•Credit loss expense in C&I increased $20.0 million and increased $35.4 million for the three months and six months ended June 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.
Current report
•Interest income decreased $353.3 million and $550.9 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. The decreases were due to Securities Financing activities.
Current report
•Interest expense decreased $401.8 million and $624.2 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. The decreases were primarily due to interest expense associated with Securities Financing activities.
Current report
•Total assets at June 30, 2025 increased $2.9 billion compared to the corresponding date in 2024. The increase was primarily due to trading inventory.
Current report
•Total fees and other income increased $21.0 million and $31.8 million for the three months and six months ended June 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 client activity.
Current report
•Interest income increased $73.2 million and $150.9 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods of 2024. These increases were primarily in the investment portfolio and funds transfer pricing.
Current report
•Fees and other income increased $3.5 million and decreased $23.1 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods of 2024. These changes were primarily due to changes in mark-to-market hedge positions.
Current report
•Total assets at June 30, 2025 increased $8.7 billion compared to the corresponding date in 2024. The increase was primarily due to increased cash balances.
Current report
Tax Legislative Update
Current report
In December 2021, a framework known as Pillar Two was established by the OECD. Pillar Two is designed to ensure large multinational companies pay a minimum level of tax on the income arising in each jurisdiction where they have operations. Although it became effective for Spain in 2024, the Pillar Two framework has not been adopted by the U.S. per the G-7 statement on Global Minimum Tax issued on June 28, 2025. Accordingly, no incremental potential tax liability is expected for SHUSA.
Current report
On July 4, 2025, the OBBBA was enacted into law. The OBBBA includes the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, specifically bonus depreciation and research and development cost expensing, modifications to the international tax framework (e.g., Pillar 2) and significant changes to clean energy tax credits including the repeal of electric vehicle credits effective October 1, 2025. We are in the process of evaluating the impact of OBBBA on our consolidated financial statements.
Current report
•securitizations on SC's DRIVE platform for approximately $1.3 billion
Current report
•secured amortizing notes on SC's SCARF platform for approximately $532.5 million
Current report
•off-balance sheet securitizations on SBNA's SBAT platform for approximately $1.2 billion
Removed paragraphs (58)
Previous report
On July 27, 2023, the regulatory agencies issued an NPR to modify the definition of cross-jurisdictional activity, which would expand the scope of exposures included in the measurement of cross-jurisdictional activity and has the potential to move certain firms into a higher supervisory category under the Federal Reserve’s tailoring rule. The Company does not expect to be materially impacted by this NPR once finalized.
Previous report
Payment of Divid ends
Previous report
SHUSA is the parent holding company of SBNA. SHUSA and SBNA are subject to various regulatory restrictions relating to the payment of dividends, including regulatory capital minimums and the requirement to remain "well-capitalized" under prompt corrective action regulations. Refer to the "Liquidity and Capital Resources" section of this MD&A for detail of the capital actions of the Company and its subsidiaries during the period.
Previous report
On January 1, 2020, we adopted the FASB ASC Topic 326 - Financial Instruments - Credit Losses, which upon adoption resulted in a reduction to our opening retained earnings balance, net of income tax, and an increase to the allowance for loan losses of approximately $2.5 billion. The U.S. banking agencies in December 2018 approved a final rule to address the impact of CECL on regulatory capital by allowing banking organizations, including the Company, the option to phase in the day-one impact of CECL until the first quarter of 2023. On March 26, 2020, the U.S. banking agencies issued an interim final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. This interim rule was subsequently updated with technical amendments in a final rule dated September 30, 2020, which was elected by the Company. As of January 1, 2025, the Company has completed its transition period and the impact of CECL adoption is now fully recognized within regulatory capital.
Previous report
The Federal Reserve has adopted a final rule to simplify capital rules for large banks. Under the final rule, firms' supervisory stress test results are now used to establish the size of the SCB requirement. The SCB is calculated as the maximum decline in CET1 in the severely adverse scenario (subject to a 2.5% floor) plus four quarters of dividends. The rule results in new firm-specific regulatory capital expectations which are equal to 4.5% of CET1 plus the SCB, any GSIB surcharge, and any countercyclical capital buffer. The GSIB buffer is applicable only to the largest and most complex firms and does not apply to SHUSA. In the event a firm falls below its new minimums, the rule imposes restrictions on capital distributions and discretionary bonuses. Firms continue to submit a capital plan annually. Supervisory expectations for capital planning processes do not change under the final rule. As of March 31, 2025, SHUSA's SCB CET1 minimum requirement was 8.0%.
Previous report
On July 27, 2023, the federal banking agencies issued a capital proposal that would make significant changes to the regulatory capital rules applicable to large banking organizations (including SHUSA and SBNA) and banking organizations with significant trading activity. This proposal would implement the final elements of the Basel III capital framework and make other changes to the regulatory capital rules in response to recent bank failures. The capital proposal would establish the Expanded Risk-Based Approach for calculating RWAs that would apply to large banking organizations. The Expanded Risk-Based Approach would include a new more risk-sensitive standardized approach for measuring credit risk and operational risk. It would also include new standardized approaches for measuring market risk and credit valuation adjustment risk but would allow the use of internal models for market risk in certain circumstances with regulatory approval. Under the capital proposal, a large banking organization would be required to calculate its risk-based capital ratios under both the Expanded Risk-Based Approach and the current standardized approach and would use the lower of the two. All capital buffer requirements, including the SCB requirement, would apply regardless of whether the Expanded Risk-Based Approach or the existing standardized approach produces the lower ratio.
Previous report
The total RWA calculation used in the Expanded Risk-Based Approach would be phased in over a three-year period. The requirement to reflect AOCI in regulatory capital would also be phased in over a three-year period. All other elements of the calculation of regulatory capital would apply on the effective date of the final rule. On October 20, 2023, the federal banking agencies announced that they extended the comment period on the capital proposal from November 30, 2023 until January 16, 2024. In addition to pushing back the comment deadline, the Federal Reserve indicated it would begin collecting data to gather more information from the banks affected by the proposal. That data collection also ended on January 16, 2024.
Previous report
On July 10, 2024, Federal Reserve Chair Jerome Powell indicated during a hearing with the House Financial Services Committee plans for a re-proposal of the rules which would include broad and material changes from the initial proposal. On September 10, 2024, Federal Reserve Vice Chair of Supervision Michael Barr gave a speech informing institutions of the nature of the changes in their current form. Most notably, the rules would be tailored by institution size and, for those with total assets between $100 and $250 billion, a majority of the new requirements would no longer apply. These changes have not yet been made final by the Federal Reserve, and it is expected that an implementation timeline will be released once the regulatory agencies have agreed on the substance of the changes.
Previous report
Liquidity Rules
Previous report
The Federal Reserve, the FDIC, and the OCC have established a rule to implement the Basel III LCR for certain internationally active banks and nonbank financial companies, and a modified version of the LCR for certain depository institution holding companies that are not internationally active. The LCR is designed to ensure that a banking entity maintains an adequate level of unencumbered high-quality liquid assets equal to its expected net cash outflow for a 30-day time horizon. Smaller covered companies (but with more than $50 billion in assets) such as the Company are required to calculate the LCR monthly.
Previous report
Resolution Planning
Previous report
The DFA requires the Company to prepare and update resolution plans. The 165(d) resolution plan must assume that the covered company is resolved under the U.S. Bankruptcy Code and that no “extraordinary support” is received from the U.S. or any other government. The most recent 165(d) resolution plan was submitted to the Federal Reserve and FDIC in June 2022. In addition, under amended FDIA rules, the IDI resolution plan rule requires that a bank with assets of $50 billion or more develop a plan for its resolution that supports depositors’ rapid access to their insured deposits, maximizes the net present value return from the sale or disposition of its assets, and minimizes the amount of any loss realized by creditors in resolution.
Previous report
On June 20, 2024, the FDIC issued a final rule that took effect on October 1, 2024, which revises the IDI resolution planning requirements. The final rule requires IDIs with assets of $100 billion or more, including SBNA, to submit a full resolution plan every three years, with interim supplements filed in the off-years.
Previous report
Long-Term Debt Requirements
Previous report
On July 28, 2023, the Federal Reserve and FDIC issued an NPR that would require banks with total assets of $100 billion or more to maintain a layer of LTD from the holding company to improve financial stability by increasing the resolvability and resiliency of such institutions. By requiring each such large bank to maintain a minimum amount of LTD to absorb losses, the proposal would increase the options available to resolve such banks in case of failure. Additionally, by reducing the risk that uninsured depositors would face losses, LTD can reduce the speed and severity of bank runs and limit the risk of contagion when a bank is under stress. The proposal would provide a three-year phase-in period and would also allow certain outstanding LTD to count toward the minimum requirements to provide banks with a reasonable period to transition to the required characteristics of eligible LTD instruments. Comments on the proposal were due on November 30, 2023. SHUSA remains subject to the TLAC requirements discussed below.
Previous report
Deposit Insurance and Assessments
Previous report
On October 18, 2022, the FDIC adopted a final rule, applicable to all IDIs, to increase the initial base deposit insurance assessment rate schedules uniformly by two basis points consistent with the amended restoration plan approved by the FDIC on June 21, 2022. The FDIC indicated that it was taking this action in order to restore the DIF reserve ratio to the required statutory minimum of 1.35% by the statutory deadline of September 30, 2028. The FDIC indicated that the reserve ratio had declined below this level because of the increase in insured deposits since the start of the pandemic and other factors that affect the level of the DIF. Under the final rule, the increase in rates began with the first quarterly assessment period of 2023 and will remain in effect unless and until the reserve ratio meets or exceeds 2% in order to support growth in the DIF in progressing toward the FDIC’s long-term goal of a 2% reserve ratio. The increase in assessment rates applies to SBNA.
Previous report
The recent failure of several large U.S. banking institutions has led to increased market uncertainty. Under the FDIA, the loss to the DIF arising from the use of the systemic risk exception must be recovered through one or more special assessments on IDIs, depository institution holding companies, or both, as the FDIC determines to be appropriate. On May 11, 2023, the FDIC issued for public comment a proposed rule to impose a special assessment on IDIs to recover the loss to the DIF resulting from the use of the systemic risk exception to protect the uninsured depositors of the failed U.S. banking institutions. The final rule was issued on November 16, 2023. Under the final rule, the FDIC would collect a special assessment from IDIs at a quarterly rate of approximately 3.36 basis points over eight quarterly assessment periods, starting with the first quarterly assessment period of 2024. In June 2024, the FDIC added an additional assessment to be collected at a quarterly rate of approximately 2.34 basis points over an additional two quarters, resulting in an additional accrual of $10.7 million that was recorded during the second quarter of 2024. The assessment base for the special assessment is equal to an IDI’s estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion in estimated uninsured deposits held by the IDI. The special assessment is a tax-deductible operating expense for IDIs, and the effect on income of the entire amount of the special assessment will occur in one quarter for the IDIs subject to the assessment. The total impact of the special assessment is $72.1 million.
Previous report
TLAC
Previous report
The TLAC Rule requires certain U.S. organizations to maintain a minimum amount of loss-absorbing instruments, including a minimum amount of unsecured LTD. The TLAC Rule applies to U.S. GSIBs and to IHCs with $50 billion or more in U.S. non-branch assets that are controlled by a global systemically important FBO. The Company is such an IHC.
Previous report
Under the TLAC Rule, companies are required to maintain a minimum amount of TLAC, which consists of a minimum amount of LTD and Tier 1 capital. As a result, SHUSA must hold the higher of 18% of its RWAs or 9% of its total consolidated assets in the form of TLAC, of which 6% of its RWAs or 3.5% of total consolidated assets must consist of LTD. In addition, SHUSA must maintain a TLAC buffer composed solely of CET1 capital and will be subject to restrictions on capital distributions and discretionary bonus payments based on the size of the TLAC buffer it maintains.
Previous report
Volcker Rule
Previous report
Section 13 of the BHCA, commonly referred to as the “Volcker Rule,” prohibits a “banking entity” from engaging in “proprietary trading” or engaging in any of the following activities with respect to a Covered Fund: (i) acquiring or retaining any equity, partnership or other ownership interest in the Covered Fund; (ii) controlling the Covered Fund; or (iii) engaging in certain transactions with the fund if the banking entity or any affiliate is an investment adviser or sponsor to the Covered Fund. These prohibitions are subject to certain exemptions for permitted activities.
Previous report
Because the term “banking entity” includes an IDI, a depository institution holding company and any of their affiliates, the Volcker Rule has sweeping worldwide application and covers entities such as Santander, the Company, and certain of the Company’s subsidiaries (including SBNA and SC), as well as other Santander subsidiaries in the United States and abroad.
Previous report
The Company implemented certain policies and procedures, training programs, recordkeeping, internal controls and other compliance requirements that were necessary to comply with the Volcker Rule. As required by the Volcker Rule, the compliance infrastructure has been tailored to each banking entity based on its size and its level of trading and Covered Fund activities. SHUSA's compliance program includes, among other things, processes for prior approval of new activities and investments permitted under the Volcker Rule, and testing and auditing for compliance.
Previous report
Risk Retention Rule
Previous report
The Federal Reserve's final credit risk retention rule generally requires sponsors of ABS to retain at least five percent of the credit risk of the assets collateralizing ABS. SHUSA, primarily through SC and SBNA, is an active participant in the structured finance markets and complies with these retention requirements.
Previous report
Market Risk Rule
Previous report
The market risk rule requires certain national banks to measure and hold risk-based regulatory capital for the market risk of their covered positions. The bank must measure and hold capital for its market risk using its internal risk-based models. The market risk rule outlines quantitative requirements for the bank's internal risk-based models, as well as qualitative requirements for the bank's management of market risk. Banks subject to the market risk rule must also measure and hold market risk regulatory capital for the specific risk associated with certain debt and equity positions.
Previous report
A bank is subject to the market risk capital rules if its consolidated trading activity, defined as the sum of trading assets and liabilities as reported in its FFIEC 031 and FR Y-9C for the previous quarter, equals the lesser of: (1) 10 percent or more of the bank's total assets as reported in its Call Report and FR Y-9C for the previous quarter, or (2) $1 billion or more. The Bank and the Company are required to comply with the market risk component within RWAs of the risk-based capital ratios and submit the FFIEC 102 - Market Risk Regulatory Report.
Previous report
SHUSA integrated SanCap’s market risk exposure into its market risk rule calculation framework during the first quarter of 2024, replacing the previously utilized methodology in 2023. Consequently, SanCap has continued to be the primary driver of SHUSA’s market risk RWAs. As of March 31, 2025, SHUSA’s market risk RWAs increased from $5.6 billion at December 31, 2024 to $7.9 billion at March 31, 2025, primarily due to increased SanCap balance sheet positions.
Previous report
Transactions with Affiliates
Previous report
Depository institutions must remain in compliance with Sections 23A and 23B of the Federal Reserve Act and the Federal Reserve's Regulation W, which govern transactions between SBNA and affiliated companies and individuals. Section 23A imposes limits on certain specified “covered transactions,” which include loans, lines and letters of credit to affiliated companies or individuals, and investments in affiliated companies, as well as certain other transactions with affiliated companies and individuals.
Previous report
Section 23B of the Federal Reserve Act prohibits a depository institution from engaging in certain transactions with affiliates unless the transactions are considered arms'-length. As a U.S.-domiciled subsidiary of a global parent with significant non-bank affiliates, the Company faces elevated compliance risk in this area.
Previous report
Regulation AB II
Previous report
Regulation AB II, among other things, expanded disclosure requirements and modified the offering and shelf registration process for ABS. SC and SBNA must comply with these rules, which impact all offerings of publicly registered ABS and all reports under the Exchange Act for outstanding publicly-registered ABS, and affect the Company's public securitization platform.
Previous report
SBNA is subject to the requirements of the CRA, which requires the appropriate federal financial supervisory agency to assess an institution's record of helping to meet the credit needs of the local communities in which it is located. SBNA's current rating is Outstanding, the second consecutive examination period for which SBNA has received the highest rating possible. The OCC takes into account SBNA’s CRA rating in considering certain regulatory applications SBNA makes, including applications related to establishing and relocating branches, and the Federal Reserve does the same with respect to certain regulatory applications the Company makes.
Previous report
In October 2023, the supervisory agencies jointly adopted a final CRA rule to modernize the regulation. The rule intends to adapt to industry changes, such as the growth of online, mobile, and branchless banking and hybrid models, while continuing a focus on low and moderate communities.
Previous report
The rule also seeks to introduce greater clarity and consistency by implementing a metrics-based approach to evaluate performance and expanding activity that may be considered for CRA credit. This results in significant data collection and reporting requirements for banks with over $10 billion in assets such as SBNA. The rule also imposes new criteria for banks to establish assessment areas outside of the communities in which they have a physical presence if certain criteria are met.
Previous report
Broker-Dealer Regulation
Showing the first 40 of 58 passages. Open the source sections for the rest.
Reworded paragraphs (73)
Previous wording
The Company specializes in consumer financing 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.
Current wording
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 wording
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 $1.2 billion and $1.2 billion at March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025, SBNA serviced approximately $8.5 billion of multi-family loans for the Structured LLC and receives a market rate servicing fee in the accompanying Condensed Consolidated Statements of Operations.
Current wording
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 June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025, SBNA serviced approximately $8.4 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 wording
The unemployment rate at March 31, 2025 was 4.2% compared to 3.8% one year ago. According to the U.S. Bureau of Labor Statistics, employment trended up in government, health care, and social assistance.
Current wording
The unemployment rate at June 30, 2025 was 4.1% compared to 4.2% at March 31, 2025 and 4.1% one year ago. According to the U.S. Bureau of Labor Statistics, employment trended up in government, health care, and social assistance.
Previous wording
The ten-year Treasury bond rate at March 31, 2025 was 4.25%, down from 4.57% at December 31, 2024.
Current wording
The ten-year Treasury bond rate at June 30, 2025 was 4.23%, down from 4.57% at December 31, 2024.
Previous wording
The activities of the Company and its subsidiaries are subject to regulation under various U.S. federal laws and regulatory agencies which impose regulations, supervise and conduct examinations, and may affect the operations and management of the Company and its ability to take certain actions, including making distributions to our parent, Santander. The Company is regulated on a consolidated basis by the Federal Reserve, including the FRB of Boston, and the CFPB. The Company's subsidiaries are further supervised by the OCC, the FRB of Atlanta, and the New York Department of Financial Services.
Current wording
The activities of the Company and its subsidiaries are subject to regulation under various U.S. federal laws and regulatory agencies which impose regulations, supervise and conduct examinations, and may affect the operations and management of the Company and its ability to take certain actions, including making distributions to our parent, Santander. The Company is regulated on a consolidated basis by the Federal Reserve, including the FRB of Boston, and the CFPB. The Company's subsidiaries are further supervised by the OCC, the FRB of Atlanta, and the New York Department of Financial Services. Refer to the Company’s Annual Report on Form 10-K as of December 31, 2024 for more information on regulatory and supervisory matters affecting the Company and its subsidiaries.
Previous wording
These rules include prompt corrective action thresholds that require banking organizations, including the Company and SBNA, to maintain a minimum CET1 capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, a total capital ratio of 8.0% and a minimum leverage ratio, calculated as the ratio of Tier 1 capital to average consolidated assets for the quarter, of 4.0%. A further capital conservation buffer of 2.5% above these minimum ratios is required for banking institutions to make capital distributions, including paying dividends.
Current wording
These rules include prompt corrective action thresholds that require banking organizations, including the Company and SBNA, to maintain a minimum CET1 capital ratio of 4.5%, a minimum Tier 1 capital ratio of 6.0%, a minimum total capital ratio of 8.0% and a minimum leverage ratio, calculated as the ratio of Tier 1 capital to average consolidated assets for the quarter, of 4.0%. A further capital conservation buffer of 2.5% above these minimum ratios is required for banking institutions to make capital distributions, including paying dividends.
Previous wording
In March 2024, a preliminary injunction was granted to pause implementation of the new rule while the Federal District Court for the Northern District of Texas decides the merits of a lawsuit brought by the American Bankers Association against the regulatory agencies for exceeding their statutory authority in adopting the rule. 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.
Current wording
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 wording
Net interest income increased $80.5 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The most significant factors contributing to this change were as follows:
Current wording
Net interest income increased $78.2 million and increased $158.7 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. The most significant factors contributing to these changes were as follows:
Previous wording
•Interest income on interest-earning deposits increased $27.8 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. This change is attributable to an increase in average interest-bearing deposits volume of $54.9 million and a decrease in average rates of $27.1 million. This change is primarily driven by the changing interest rate environment.
Current wording
•Interest income on interest-earning deposits increased $60.6 million and increased $88.3 million for the three months and six months ended June 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 $92.1 million and a decrease in average rates of $31.5 million. The six-month period change is attributable to an increase in average interest-bearing deposits volume of $149.4 million and a decrease in average rates of $61.1 million.
Previous wording
•Interest and fees on federal funds sold and securities purchased under resale agreements or similar arrangements decreased $196.8 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. This change is attributable to a decrease in average investment securities volume of $92.2 million and a decrease in average rates of $104.6 million.
Current wording
•Interest and fees on federal funds sold and securities purchased under resale agreements or similar arrangements decreased $386.0 million and decreased $582.9 million for the three months and six months ended June 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 $248.8 million and a decrease in average rates of $137.2 million. The six-month period change is attributable to a decrease in average federal funds sold and securities purchased under resale agreements or similar arrangements volume of $341.5 million and a decrease in average rates of $241.4 million.
Previous wording
•Interest income on investment securities increased $46.9 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. This change is attributable to an increase in average investment securities volume of $46.8 million and an increase in average rates of $39.0 thousand. This change is primarily driven by an increase in interest rates during the year.
Current wording
•Interest income on investment securities increased $68.4 million and increased $115.2 million for the three months and six months ended June 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 $53.9 million and an increase in average rates of $14.5 million. The six-month period change is attributable to an increase in average investment securities volume of $101.2 million and an increase in average rates of $14.0 million. These changes are primarily driven by an increase in interest rates during the year.
Previous wording
•Interest expense on deposits and related customer accounts decreased $10.3 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. This change is attributable to an increase in average interest-bearing deposits volume of $8.8 million and a decrease in average rates of $19.1 million. The increase in average rates is primarily attributable to money market and CD products.
Current wording
•Interest expense on deposits and related customer accounts decreased $30.3 million and decreased $40.6 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. The three-month period change is attributed to a decrease in average rates of $32.4 million offset by an increase in average interest-bearing deposit volume of $2.1 million. The six-month period change is attributable to an increase in average interest-bearing deposit volume of $6.3 million and a decrease in average rates of $46.9 million. The decrease in average rates is primarily attributable to money market and CD products.
Previous wording
•Interest expense on Securities Financing Activities and borrowed funds decreased $187.2 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. This change is attributable to a decrease in average Securities Financing Activities and borrowed funds volume of $68.7 million and a decrease in average rates of $118.5 million.
Current wording
•Interest expense on Securities Financing Activities and borrowed funds decreased $370.8 million and decreased $558.0 million for the three months and six months ended June 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 $212.2 million and a decrease in average rates of $158.6 million. The six-month period change is attributable to a decrease in average Securities Financing Activities and borrowed funds volume of $281.8 million and a decrease in average rates of $276.2 million. Both changes were mostly attributable to a decrease in Securities Financing Activities.
Previous wording
The Company had credit loss expense of $425.9 million for the three months ended March 31, 2025, compared to a credit loss expense of $405.0 million for the corresponding period in 2024. The credit loss expense during the three months ended March 31, 2025 was mainly due to Charge-offs, net of recoveries in RICs and auto loans, partially offset by the decrease in ACL driven by seasonal improvement in the RICs and auto loans delinquencies and rating improvement in certain loans in the Commercial portfolio.
Current wording
The Company had credit loss expense of $372.9 million and $798.8 million for the three months and six months ended June 30, 2025, compared to a credit loss expense of $481.2 million and $886.2 million for the corresponding periods in 2024. The lower credit loss expense during the three months and six months ended June 30, 2025 was mainly due to lower charge-offs, net of recoveries in RICs and auto loans, partially offset by the decrease in the ACL driven by the sale of certain RICs and auto loans.
Previous wording
Credit loss expense on commercial loans increased $13.8 million for the three months ended March 31, 2025 compared to the corresponding period in 2024.
Current wording
Credit loss expense on commercial loans increased $6.0 million and increased $19.7 million for the three months and six months ended June 30, 2025 compared to the corresponding periods in 2024.
Previous wording
Credit loss expense on consumer loans decreased $3.8 million for the three months ended March 31, 2025 compared to the corresponding period in 2024.
Current wording
Credit loss expense on consumer loans decreased $117.2 million and decreased $120.9 million for the three months and six months ended June 30, 2025 compared to the corresponding periods in 2024 driven by the sale of certain RICs and auto loans.
Previous wording
The credit loss expense on unfunded credit losses for the three months ended March 31, 2025 increased $10.9 million compared to the corresponding period in 2024.
Current wording
The credit loss expense on unfunded credit losses for the three months and six months ended June 30, 2025 increased $2.8 million and increased $13.7 million compared to the corresponding periods in 2024.
Previous wording
Total non-interest income decreased $59.7 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. These changes were primarily comprised of:
Current wording
Total non-interest income decreased $125.1 million and $184.7 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. These changes were primarily comprised of:
Previous wording
•Consumer fees increased $29.0 million for the three months ended March 31, 2025 compared to the corresponding period in 2024, primarily due to an increase in consumer loan fees.
Current wording
•Consumer fees increased $16.4 million and $45.4 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to an increase in consumer loan fees.
Previous wording
•Lease income decreased $127.7 million for the three months ended March 31, 2025 compared to the corresponding period in 2024, primarily due to fewer active leased vehicle units.
Current wording
•Lease income decreased $140.3 million and $268.0 million for the three months and six months ended June 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 wording
•Capital market revenue decreased $20.2 million for the three months ended March 31, 2025 compared to the corresponding period in 2024, primarily due to a decrease in investment banking income.
Current wording
•Capital market revenue increased $34.7 million and $14.4 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to an increase in investment banking income.
Previous wording
•Miscellaneous income, net increased $89.0 million for the three months ended March 31, 2025 compared to the corresponding period in 2024, discussed further below.
Current wording
•Miscellaneous income, net decreased $8.6 million and increased $80.4 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, discussed further below.
Previous wording
•Securities gains, net decreased $24.9 million for the three months ended March 31, 2025 compared to the corresponding period in 2024, primarily due to a decrease from trading securities gains.
Current wording
•Securities gains, net decreased $42.4 million and $67.3 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, primarily due to a decrease in trading securities gains.
Previous wording
•A decrease in Net gain on sale of operating leases, led by a shift in lease portfolio performance.
Current wording
•A decrease in Net gain on operating leases, led by a shift in lease portfolio performance.
Previous wording
•Lease expense decreased $106.1 million for the three months ended March 31, 2025 compared to the corresponding period in 2024, due to lower auto lease volumes resulting in lower depreciation expense.
Current wording
•Lease expense decreased $90.3 million and $196.4 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024, due to lower auto lease volumes resulting in lower depreciation expense.
Previous wording
An income tax provision of $16.9 million was recorded for the three months ended March 31, 2025 compared to an income tax provision of $7.8 million for the corresponding period in 2024. This resulted in an ETR of 4.4% for the three months ended March 31, 2025 compared to 2.2% for the corresponding period in 2024.
Current wording
An income tax provision of $38.0 million and $54.9 million was recorded for the three months and six months ended June 30, 2025, respectively, compared to a benefit of $49.8 million and $42.1 million for the corresponding periods in 2024. This resulted in an ETR of 7.1% and 6.0% for the three months and six months ended June 30, 2025, respectively, compared to (13.7)% and (5.9)% for the corresponding periods in 2024.
Previous wording
The ETR for the three months ended March 31, 2025, when compared to the same period 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 ETR for the three months and six months ended June 30, 2025, when compared to the same periods in 2024, was directly impacted by (i) an increase in forecasted pretax income in 2025 and (ii) a decrease in electric vehicle tax credits expected to be generated in 2025.
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. Information reported in this Form 10-Q in respect of the CIB segment includes only information within the Company’s 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.
Current 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.
Previous wording
The Company reported total income before income taxes related to its Consumer activities of $384.4 million for the three months ended March 31, 2025 compared to income before income taxes of $303.0 million for the corresponding period in 2024. The most significant drivers of this change were:
Current wording
The Company reported total income before income taxes related to its Consumer activities of $478.3 million and $862.7 million for the three months and six months ended June 30, 2025, respectively, compared to income before income taxes of $381.4 million and $684.4 million for the corresponding periods in 2024. The most significant drivers of these changes were:
Previous wording
•Lease income decreased $127.7 million for the three months ended March 31, 2025 compared to the corresponding period of 2024, driven by lower average Auto lease balances.
Current wording
•Lease income decreased $140.3 million and $268.0 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. These changes where primarily driven by lower average auto lease volumes.
Previous wording
•Lease expense decreased $106.1 million for the three months ended March 31, 2025 compared to the corresponding period of 2024, driven by lower average Auto lease balances.
Current wording
•Lease expense decreased $90.3 million and $196.4 million three months and six months ended June 30, 2025, respectively, compared to the corresponding periods in 2024. These changes where primarily driven by lower average auto lease balances.
Previous wording
Commercial activities consist of the Company's C&I reportable segment and CRE reportable segment.
Current wording
Commercial activities consists of the Company's C&I reportable segment and CRE reportable segment.
Previous wording
The Company reported total income before income taxes related to its Commercial activities of $160.6 million for the three months ended March 31, 2025 compared to income before income taxes of $166.2 million for the corresponding period in 2024. The most significant drivers of this change were:
Current wording
The Company reported total income before income taxes related to its Commercial activities of $147.0 million and $307.6 million for the three months and six months ended June 30, 2025, respectively, compared to income before income taxes of $165.3 million and $331.5 million for the corresponding periods in 2024. The most significant drivers of these changes were:
Previous wording
CIB reported income before income taxes of $44.7 million for the three months ended March 31, 2025 compared to an income before income taxes of $10.9 million for the corresponding period of 2024. Factors contributing to this change were:
Current wording
CIB reported income before income taxes of $25.9 million and $70.6 million for the three months and six months ended June 30, 2025, respectively, compared to income before income taxes of $13.2 million and $24.1 million for the corresponding periods in 2024, respectively. Factors contributing to these changes were:
Previous wording
Wealth Management reported income before income taxes of $73.8 million for the three months ended March 31, 2025, compared to income before income taxes of $77.5 million for the corresponding period in 2024. The primary factors contributing to this change were:
Current wording
Wealth Management reported income before income taxes of $81.8 million and $155.6 million for the three months and six months ended June 30, 2025, respectively, compared to income before income taxes of $66.4 million and $143.9 million for the corresponding periods in 2024. The primary factors contributing to these changes were:
Previous wording
The Other category reported a loss before income taxes of $280.6 million for the three months ended March 31, 2025, compared to a loss before income taxes of $206.7 million for the corresponding period in 2024. The primary factors contributing to this change were:
Current wording
The Other category reported losses before income taxes of $197.4 million and $478.0 million for the three months and six months ended June 30, 2025, respectively, compared to losses before income taxes of $261.5 million and $468.2 million for the corresponding periods in 2024. The primary factors contributing to these changes were:
Previous wording
•General, administrative and other expenses increased $74.5 million for the three months ended March 31, 2025 compared to the corresponding period of 2024. This increase was primarily a result of strategic investment and restructuring charges.
Current wording
•General, administrative and other expenses decreased $16.3 million and increased $58.2 million for the three months and six months ended June 30, 2025, respectively, compared to the corresponding periods of 2024. These changes were primarily the result of timing in strategic investment and restructuring charges.
Previous wording
(1) As of March 31, 2025, the Company had $398.2 million of commercial loans that were denominated in a currency other than the U.S. dollar.
Current wording
(1) As of June 30, 2025, the Company had $346.3 million of commercial loans that were denominated in a currency other than the U.S. dollar.
Previous wording
Commercial loans decreased approximately $74.1 million, or 0.2%, from December 31, 2024 to March 31, 2025. This decrease was primarily attributable to a decrease in C&I loans of $307.8 million, a decrease in Multifamily loans of $35.6 million, and an increase in CRE loans of $234.4 million.
Current wording
Commercial loans decreased approximately $104.9 million, or 0.3%, from December 31, 2024 to June 30, 2025. This decrease was primarily attributable to a decrease in C&I loans of $403.8 million, and a decrease in Multifamily loans of $309.9 million, partially offset by an increase in CRE loans of $351.6 million.
Previous wording
Consumer loans secured by real estate decreased $159.3 million from December 31, 2024 to March 31, 2025. The Company ceased origination of new residential mortgage and home equity loans in the first quarter of 2022.
Current wording
Consumer loans secured by real estate decreased $350.3 million from December 31, 2024 to June 30, 2025. The Company ceased origination of new residential mortgage and home equity loans in the first quarter of 2022.
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