The Federal Reserve Board approved a Spanish banking organisation’s acquisition of a Connecticut financial holding company and its national bank subsidiary on August 4, 2026.
The transaction was approved under Sections 3 and 4 of the Bank Holding Company Act, with the deal valued at approximately $12.3 billion.
Federal Reserve approval came 129 days after the application was received, representing the final regulatory clearance required for the transaction to proceed.
The Office of the Comptroller of the Currency had previously approved the related bank merger on June 12, 2026, with the European Central Bank granting its own authorisation on July 21, 2026.
The parties now expect the transaction to close on August 20, 2026, following the merger of the target holding company into the acquirer’s U.S. holding company.
Once completed, the acquirer’s U.S. holding company will become the 19th largest insured depository organisation in the United States, with consolidated assets of approximately $253.6 billion.
The combined bank will become the largest insured depository institution in Connecticut by deposits, controlling approximately $42.3 billion in that state alone.
The merged entity will also rank fourth in both Massachusetts and Rhode Island, and eleventh in New York, establishing a formidable presence across the northeastern United States.
The acquired institution’s chief executive officer will become chief executive officer of the surviving national bank following integration of most of the acquired institution’s businesses.
The Federal Reserve evaluated the transaction’s competitive effects across six banking markets, concluding the resulting concentration was consistent with Board precedent and applicable competitive standards.
The Board also determined that the transaction’s financial, managerial, anti-money-laundering, community-needs, and financial-stability considerations were all consistent with approval.
The acquirer’s global parent holds approximately $2.1 trillion in assets, a scale that analysts say will materially shift competitive dynamics on deposit pricing, customer retention, and talent across the Northeast.
The 129-day Federal Reserve review adds to a broader pattern of shorter approval periods for large bank transactions, providing deal teams with a clearer planning benchmark for future applications.