Santander Holdings USA, Inc. is the parent company of Santander Bank, National
Association, (the "Bank" or "SBNA"), a national banking association,
and owns a majority interest (approximately 59%) of Santander Consumer USA Holdings
Inc. (together with its subsidiaries, "SC"), a specialized consumer
finance company focused on vehicle finance and third-party servicing. SHUSA is
headquartered in Boston, Massachusetts and the Banks main office is in Wilmington,
Delaware. SC is headquartered in Dallas, Texas. SHUSA is a wholly-owned subsidiary
of Banco Santander, S.A. ("Santander").
The Bank, previously named Sovereign Bank, National Association, changed its
name to Santander Bank, National Association on October 17, 2013. The Banks
principal markets are in the Mid-Atlantic and Northeastern United States. The
Bank had 675 branches and 2,100 automated teller machines (ATMs) across its
footprint. The Bank uses its deposits, as well as other financing sources, to
fund its loan and investment portfolios. The Bank earns interest income on its
loan and investment portfolios. In addition, the Bank generates non-interest
income from a number of sources, including deposit and loan services, sales
of loans and investment securities, capital markets products and bank-owned
life insurance ("BOLI"). The Banks principal non-interest expenses
include employee compensation and benefits, occupancy and facility-related costs,
technology and other administrative expenses. The volumes, and accordingly the
financial results, of the Bank are affected by the economic environment, including
interest rates and consumer and business confidence and spending, as well as
the competitive conditions within the Banks geographic footprint.
SCs primary business is the indirect origination of retail installment contracts
(RICs), principally through manufacturer-franchised dealers in connection with
their sale of new and used vehicles to retail consumers. SC also offers a full
spectrum of auto financing products and services to Chrysler customers and dealers
under the Chrysler Capital brand, the trade name used in providing services
("Chrysler Capital") under the ten-year private label financing agreement
with Fiat Chrysler Automobiles US LLC ("FCA"), formerly Chrysler Group
LLC signed by SC in 2013 (the "Chrysler Agreement"). These products
and services include consumer RIC and leases, as well as dealer loans for inventory,
construction, real estate, working capital and revolving lines of credit. SC
also originates vehicle loans through a web-based direct lending program, purchases
vehicle RICs from other lenders, and services automobile and recreational and
marine vehicle portfolios for other lenders. Additionally, SC has several relationships
through which it provides personal unsecured consumer loans, private-label credit
cards and other consumer finance products. Common stock of SC ("SC Common
Stock") is listed for trading on the New York Stock Exchange (the "NYSE")
under the trading symbol "SC".
The Companys reportable segments are organized in accordance with its strategic
business units. Except for the Companys SC segment, segments are focused principally
around the customers the Bank serves.
The Retail Banking segment is primarily comprised of the Banks branch locations
and the residential mortgage business.
The Auto Finance & Business Banking segment currently provides indirect
consumer leasing as well as commercial loans to dealers and financing for commercial
vehicles and municipal equipment.
The Real Estate and Commercial Banking segment offers commercial real estate
loans, multifamily loans, commercial loans, and the Banks related commercial
deposits.
SC is a specialized consumer finance company focused on vehicle finance and
third-party servicing. SC’s primary business is the indirect origination
of RICs, principally through manufacturer-franchised dealers in connection with
their sale of new and used vehicles to retail consumers.
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