COMMUNITY REINVESTMENT PLAN

COMMUNITY REINVESTMENT PLAN 2010

TABLE OF CONTENTS 2 Letter from President and CEO... 3 Two Thousand Ten Commitment... 4 Community Reinvestment Plan 2006-2010... 5 Affordable Housing... 6 Small Business Lending... 7 Community Development Investments... 8 Community Development Lending Partners... 9 Community Development Lending Partners (continued)... 10 Community Development Services... 11 Community Involvements... 12 Educational Initiatives... 13 Community Development Mission Statement... 14 About Santander... 15 Sovereign Bank is a Member FDIC and a wholly owned subsidiary of Banco Santander, S.A. 2011 Sovereign Bank Sovereign and Santander and its logo are registered trademarks of Sovereign Bank and Santander, respectively, or their affiliates or subsidiaries in the United States and other countries. About our company Banco Santander (SAN.MC, STD.N) is a retail and commercial bank, headquartered in Spain, with a presence in ten main markets: Spain, Portugal, Germany, the UK, Poland, Brazil, Mexico, Chile, Argentina and the U.S. Founded in 1857, Santander had 1,217 trillion euros in assets at the end of 2010. Santander has 92 million customers, approximately 14,000 branches more than any other international bank and over 170,000 employees. For more information on Santander, visit http://www.santander.com. Sovereign Bank, a subsidiary of Banco Santander, S.A., is a financial institution with principal markets in the northeastern United States. Sovereign has more than 700 branches, over 2,300 ATMs and approximately 8,000 team members. For more information on Sovereign Bank, visit http://www.sovereignbank.com or call 877-SOV-BANK. fitnessfaq.info

To: Sovereign Bank Customers and Friends 3 I am pleased to share with you the 2010 Community Reinvestment Plan performance of Sovereign Bank. The report details the bank s continuing commitment to serve the communities where we live and work. Sovereign remains committed to meeting the financial needs of all our customers, delivering value to shareholders and supporting our banking communities. In 2010, despite the continuing decline in the economy, Sovereign continued to be an active participant in community reinvestment. The Jorge Morán President and CEO bank achieved its Community Reinvestment Plan lending and investment goals providing over $1.5 billion in support of low- and moderate-income individuals and communities in its principal banking markets. In addition, the bank provided nearly $2 million in charitable grants to organizations promoting community and economic development, youth and education and health and human service programs. Sovereign has received an Outstanding CRA rating for its Community Reinvestment program. Sovereign Team Members work with many non-profit organizations to improve the quality of life for those in our banking communities. The bank continued its support of United Way through corporate and employee contributions as well as employee volunteer activities. In 2009, Sovereign Bank was acquired by Banco Santander, one of the largest and most successful banks in the world. Banco Santander is committed to Sovereign s Community Reinvestment Plan program, offering lending, investment and service opportunities to low- and moderate-income individuals and communities. Sovereign has created an extension of its Community Reinvestment Plan from 2011-2013 equaling $5.3 billion in new lending and investments for CRA credit. We are proud of our community reinvestment lending and team member services in our banking communities and will continue our commitment in 2011. Sincerely, Jorge Morán President and CEO fitnessfaq.info

Community Reinvestment Plan 4 2010 Commitment Through Sovereign s financial commitment to serve affordable housing initiatives, small business support, consumer finance, community development loans and investments or contributions and grants the bank helps meet the financial and service needs of its banking communities. NH 91 81 87 91 90 MA Boston 88 NY 90 87 Providence 81 CT PA 95 RI New Bedford 80 81 78 Reading New York 76 76 81 95 Philadelphia NJ MD PA West & Maryland 120 Branches PA East & NJ Central 131 Branches Metro NY-Northern NJ 156 Branches Southern & Western NE 150 Branches Northeastern NE 161 Branches The Islands Total Sovereign Branches 3 Branches 721 Branches $1. 523 BILLION IN COMMUNITY LOANS AND INVESTMENTS IN 2010 Affordable Housing Initiatives Loans to Low- and Moderate-Income Borrowers...$758 million Multi-Family Loans...$182 million Subtotal... $940 million Small Business Support Small Business Loans...$407 million Small Business Administration Loans....$20 million Subtotal... $427 million Consumer Finance (Low- and Moderate-Income Borrowers)...$130 million Community Development Loans...$24 million Contributions and Grants...$1.9 million Subtotal... $156 million Grand total... $1.523 billion fitnessfaq.info

5 Community Reinvestment Plan 2006-2010 Sovereign Bank has a significant commitment in community investment and achieved outstanding lending, investment and service results in all its banking communities in Pennsylvania, New Jersey, Maryland, New York, Connecticut, Massachusetts, New Hampshire and Rhode Island during its five year Community Reinvestment Plan. Highlights of the bank s performance include: $4.036 billion in Affordable Home Mortgages $3.191 billion in Small Business Loans $2.622 billion in Consumer Loans $1.208 billion in Multi-Family Loans $394 million in Community Development Loans $249 million in CRA qualified Investments $19 million in Charitable Contributions to Non-Profit Organizations New York, NY Philadelphia, PA Boston, MA CRA Philanthropic Donations CRA Qualified Investments Commercial Community Development Multi-family Loans Consumer Loans (LMI) Small Business Loans CRA Mortgage Loans 2006-2010 PLAN 2006-2010 ACTUAL 2006-2010 PLAN 2006-2010 Actuals Total Plan % of Goal CRA Philanthropic Donations 19,500 19,142 98% CRA Qualified Investments 249,000 248,917 100% Commercial Community Development 402,000 394,000 98% Multi-family Loans 1,100,000 1,208,900 101% Consumer Loans (LMI) 2,513,000 2,622,000 101% Small Business Loans 3,148,000 3,191,000 101% CRA Mortgage Loans 3,600,000 4,036,000 112% $ in millions Totals 11,031,500 11,719,959 106% fitnessfaq.info

Affordable Housing 6 Sovereign is committed to increasing homeownership and the availability of quality rental housing for low- and moderate-income people. The Bank exceeded its $3.6 billion commitment through its Community Reinvestment Plan 2006-2010 providing over $4 billion in affordable home mortgages. In 2010, Sovereign provided $758 million in affordable home mortgages in its principal banking markets. Sovereign affordable mortgage programs provide low cost assistance to low-and moderate-income people and communities. The programs provide maximum financing, higher debt to income ratios and offer homeownership counseling through non-profit organizations. In 2010, Sovereign provided more than $813 million to more than 5,800 lowand moderate-income borrowers. Affordable Housing Project Hispanic Association of Contractors and Enterprises. Philadelphia, PA In New Jersey, Sovereign partners with New Jersey Citizen Action (NJCA) in supporting homeownership counseling to low- and moderateincome first time homebuyers. In 2010, the bank provided over $7 million in mortgage financing and over $50,000 in grant funds to NJCA counseling programs. Sovereign enhances its affordable housing loan programs through participation in various State Housing Finance Agency Programs and through FHA and VA government lending programs for first-time homebuyers. The bank originated over $97 million in State Agency loans and over $118 million in government insured loans in 2010. Sovereign in Partnership with Massachusetts Housing Partnership and Massachusetts Affordable Housing Alliance continued to be a leader in the Soft Second Mortgage Program for low- and moderate-income first-time homebuyers. In 2010, the bank provided more than $44 million in low cost mortgage loans to counseled mortgage borrowers. Team members volunteered at Habitat for Humanity of Bergen County, NJ. Affordable Mortgage Partners To improve affordable housing, Sovereign has partnered with numerous organizations that promote consumer money management, first-time homebuyer seminars and homeownership counseling. Some of these organizations are: Consumer Credit Counseling Services (chapters) Habitat for Humanity (chapters) HACE - Philadelphia Massachusetts Housing Partnership Neighborhood Housing Services (chapters) New Jersey Citizen Action

Small Business Lending 7 Sovereign committed to lend $3.1 billion in small business loans from 2006-2010. From 2006 through 2010 the bank has provided over $3.1 billion in small business lending. In 2010, the bank provided $427 million in small business lending. Small Business Banking Lending Programs Sovereign s Small Business Banking programs focus on loan requests under $250,000 that are generated through the branches. In 2010, Sovereign added more than 200 small business lending specialists to support new and existing small business customers. These programs lent more than $106 million in small business loans. Small Business Administration Loans In 2010, Sovereign closed over $20 million in Small Business Administration (SBA) loans and manages over $150 million in SBA 7(a) loans. Sovereign is ranked the 25th most active SBA lender in U.S. The Bank is a participant in the SBA s Express Lending Program, and is a preferred lender in Pennsylvania, Massachusetts, Connecticut, and Rhode Island. In 2010, Sovereign was recognized by SBA in Rhode Island for its outstanding lending to minorities and in New Jersey for its lending program. Community Development Financial Institutions (CDFI) Micro-Lending Programs The Bank works with several CDFI Micro-lending programs that serve small business entrepreneurs. These programs typically offer loans from $5,000 to $25,000 to qualified business owners in addition to providing counseling services. Some of these organizations are: New Hampshire Community Loan Fund Regional Business Assistance Corporation The Rising Tide Community First Fund

Community Development Investments 8 Low-Income Housing Tax Credit Investments (LIHTC) and New Market Tax Credit Program (NMTC) Sovereign has made a significant investment in CRA qualified community investments that benefit low- and moderate-income individuals and communities. The bank has funded nearly $1/2 billion in CRA investments to support community development, and the revitalization and stabilization of communities in the bank s principal banking markets. Sovereign s new Community Reinvestment Plan (2011-2013) will seek to provide $25 million in new community development investments. Umbrella Works Lancaster PA Sovereign has been a significant investor in New Market Tax Credits to stimulate investments in distressed communities. Sovereign has invested more than $117 million in Community Development Entities that serve and provide investment capital for low-income communities or low-income persons. Community Loan/Equity Funds Sovereign has funded more than $40 million to community loan/ equity funds. These funds help facilitate affordable housing initiatives and economic development projects, as well as promote job creation. Some of the organizations the bank supports are: Boston Community Capital Community Preservation Corporation Massachusetts Housing Partnership Fund New Hampshire Community Loan Fund New Jersey Community Capital The Reinvestment Fund - Philadelphia Century Hall Apartment Reading PA Charitable Grants In 2010, Sovereign Bank was named by The Boston Business Journal one of the top 100 charitable contributors in Massachusetts. In 2010, the Bank provided grant support to over 400 non-profit organizations totaling $2 million in its principle banking markets. Boston Business Journal Award Sonia Alleyne, CRA and Foundation Division Manager

Community Development Lending Partners 9 Sovereign committed to lend $402 million in community development loans from 2006 through 2010. This lending focuses on promoting small business growth, building affordable housing, encouraging homeownership and financing urban revitalization. In 2010, the bank provided $24 million in community development loans. The bank also provided over $182 million in multi-family loans in low- and moderate-income census tracts. Sovereign is an investor in several community development funds that have a community development purpose or promote the growth of small businesses. The New Hampshire Community Loan Fund (NHCLF) NHCLF is one of the first Community Development Financial Institutions in the United States. NHCLF collaborates with a wide range of donors and lenders, and with business, nonprofit and government partners. Together, they provide the financing and support that people with low and moderate incomes need to have affordable housing, quality jobs, childcare and early education for their children, and to become financially independent. In 2010, Sovereign provided NHCLF with a $2 million Community Development loan. Boston Community Capital (BCC) BCC is a community development financial institution whose mission is to build healthy communities where low-income people live and work. BCC accomplishes its mission by investing in projects that provide affordable housing, good jobs, and new opportunities in low-income communities, connecting these neighborhoods to the mainstream economy. Since 1985, BCC has invested more than $550 million to support organizations and businesses that benefit under served communities. Sovereign Bank is an investor and contributor to BCC. New Jersey Community Capital (NJCC) NJCC is a financial intermediary, aligning investment and intellectual capital in New Jersey s emerging markets. The Bank has been a long-term investor and lender to NJCC with credit facilities from $1,000,000 to $2,000,000.

Community Development Lending Partners (continued) 10 Hispanic Association of Contractors & Enterprises (HACE) Sovereign Bank has a five-year commitment to partner with HACE to provide the Latino community in North Philadelphia with lending and investment opportunities. The bank has provided over $500,000 to HACE s community and economic development initiatives. Community First Fund (CFF) The Fund is an economic development organization, providing loans and technical assistance for small business owners, affordable housing developers and community groups in low-and moderate-income communities in central Pennsylvania. In 2010, Sovereign completed funding New Market Tax Credit Investment equaling $765,000, as well as $5,000 in operating support. The Community Preservation Corporation (CPC) CPC is a Private, Not-For-Profit Corporation whose mission is to stabilize, strengthen and sustain low- and mixed income communities. Sovereign contributes capital, participates in lending activities, and provides governance to CPC through Board participation, the Mortgage Committee, and other policy making bodies. Sovereign has over $9.9 million in Community Development loan participations with CPC. Neighborworks America Sovereign participates and supports Neighborworks America programs in several cities committing loans and charitable grants for residential mortgage financing to low-income individuals, community development projects and counseling services. Sovereign s mortgage consultants work with Neighborworks organizations to provide consumer education and counseling services to first-time homebuyers. In 2010, Sovereign contributed over $40,000 to several Neighborworks organizations.

Community Development Services 11 Sovereign supports a variety of educational and financial literacy programs that enhance the quality of life for low- and moderateincome individuals and families. Team Members devote numerous volunteer hours by participating in money management workshops, first time homebuyer s seminars and outreach to small businesses. Earned Income Tax Credit The Earned Income Tax Credit (EITC) program assists qualified lowand moderate-income taxpayers by providing free tax preparation assistance and financial management education. Sovereign supports EITC programs in communities throughout Sovereign Banking markets providing over $100,000 to support Team Member volunteer work. In 2010, approximately 12,000 low income taxpayers received assistance resulting in over $29 million in refunds for individuals. York Area Housing Group York PA Family Saving (FSA)/Individual Development Accounts (IDA) The bank, through partnerships with Community Action Committee of Lehigh Valley, PA, Ifetayo Cultural Academy in Brooklyn and Worcester Community Action Council in Massachusetts, offers FSA and IDA accounts to help low- and moderate-income families achieve self-sufficiency. Financial Literacy Sovereign Bank, as part of its commitment to local communities, provides financial literacy training sessions to low- and moderateincome families on Basic Banking and Identity Theft, The ABCs of Credit, You and Your Credit, and Owning Your Own Home. In addition, financial literacy classes are offered to senior citizens as a means of helping to identify and avoid identify theft, scams geared towards the elderly, and other predatory practices. Assisstive Technology Loan Programs In partnership with the Massachusetts Assistive Technology Loan Program (MATF) and Pennsylvania Assistive Technology Loan Program (PATF), Sovereign offers low-interest loans to individuals with disabilities. The funding gives disabled individuals more financial flexibility when it comes to buying useful technological devices that improve their quality of life. In 2010, Sovereign provided over $2.6 million in low cost financing to these Programs. Dorchester Collegiate Academy Charter School Dorchester MA Evoluer House Philadelphia, PA

COMMUNITY INVOLVEMENT 12 Sovereign plays an active role in responding to the needs of local communities. Community involvement is provided through financial support and the volunteer efforts of the bank s Team Members. In response to community needs, Sovereign participates in Santander Is You Week a global celebration of team members participating in community volunteer events and activities that support blood donations; food banks; school and park cleaning and neighborhood beautification projects. Team member donations were made to Susan G. Komen for the Cure, Big Brothers Big Sisters, American Red Cross, American Heart Association and Habitat for Humanity. Day of Caring Reading, PA United Way In 2010, Sovereign Bank and its Team Members contributed over $500,000 to United Way agencies while assisting in community projects that include stocking supplies at food banks, and painting and refurbishing homes. Habitat for Humanity In 2010, Sovereign Bank provided over $40,000 in support to Habitat for Humanity chapters with team members volunteering hundreds of hours to help the dream of affordable homeownership become a reality. Food Bank Partners Sovereign Bank has generously supported numerous food banks toward a common goal of addressing hunger in our communities. Some of the food banks Sovereign supports are: Food Bank of Brooklyn & Staten Island (NY) Food Bank of Ocean & Monmouth Counties (NJ) Project Self Sufficiency (NJ) Greater Berks Food Bank (PA) Greater Philadelphia Food Bank (PA) Greater Boston Food Bank (MA) Loaves and Fishes (CT) Special Olympics Sovereign has supported Special Olympics for many years, and in 2010, provided over $30,000 in support of their activities and programs, including Team Member volunteers in Pennsylvania, Rhode Island and Massachusetts. Project Self Sufficiency Food Drive Newton NJ Special Olympics Providence RI

Educational Initiatives 13 Sovereign and its Team Members have supported educational improvement programs that help improve the lives of many low- and moderate-income people in its banking markets. Sovereign Santander Universities Banco Santander believes that investing in higher education and research is the most powerful means of promoting the development and prosperity of society. In 2008, Santander Universities began its activities in the United States through Sovereign Bank. Through Santander Universities, the bank supports the Higher Education sector in such areas as teaching and research, international cooperation, knowledge and technology transfer, entrepreneurial initiatives, student mobility, and innovation. In 2010, through Santander Universities, the bank supported scholarships for low-to moderate-income students at New York University, The State University of New York, Boston University and Providence College. The scholarships are designed to increase opportunities for students from diverse backgrounds to study abroad and participate in international service programs. The goal of the program is to support and encourage more students from different cultural and economic backgrounds to gain a greater, international perspective. In 2010, Sovereign provided nearly $3 million in support of higher education programs and student scholarships. Ifetayo Financial Education Institute. (IFEI) In 2010, the bank provided over $15,000 in grant support, in-kind contributions and meeting facilities to (IFEI) in Brooklyn, New York, which provides full integration of financial literacy training for families living below poverty level and having no accumulative savings or assets. St. John s University. In 2010, Sovereign was selected to participate in the Teaching Financial Education Group. The program provides professional development to teachers and organizations, integrates financial literacy education into school curriculums and the development of lifelong learning skills in personal finance. Sovereign provides both technical and financial support to these programs. John W. McCormack Middle School in Massachusetts. Sovereign has been in partnership with the school since 1999. The bank provides financial support for the annual academic awards, career fair, the Reading Is Fundamental program and the creation of student and staff I.D. cards. Santander Universities Agreement Providence College Ifetayo Financial Institute Financial Literacy Program Brooklyn, NY Santander is you Program McCormark School Dorchester, MA

Community Development Mission Statement 14 Sovereign Bank is committed and dedicated to serving the needs of our communities through investment of the bank s resources and team member participation. It is our mission to meet the credit needs of all our communities while maintaining sound non-discriminatory standards. We will continue to build mutually beneficial relationships with our customers for the vitality of our communities. Our products and services are designed to support first-time homebuyers, affordable rental housing, health care and education while creating and supporting jobs and services in low- and moderateincome communities. We will work closely with community-based organizations, business leaders and local governments on community development initiatives that assist low- and moderate-income communities and families. Jack Killen Corporate CRA Officer Sovereign Bank s commitment to improving the quality of life in our communities reflects our conviction that we have an opportunity to make a difference. Community Reinvestment Act Notice The federal Community Reinvestment Act (CRA) requires the Office of Thrift Supervision to evaluate our performance in helping meet the credit needs of the community, and to take this evaluation into account when deciding on certain applications submitted by the bank. Your involvement is encouraged. You may send signed, written comments about our CRA statement or our performance in helping to meet community credit needs to: Corporate CRA Officer at Sovereign Bank Two Aldwyn Center Lancaster Avenue and Route 320 Villanova, PA 19085 Regional Director of the Office of Thrift Supervision Harborside Financial Center Plaza Five, Suite 1600 Jersey City, NJ 07311 Your letter, together with any response by us, may be made public.

ABOUT SANTANDER Community: We are part of a company committed to the community. Santander is a socially responsible company committed to the community. Team members are encouraged to be leaders in their own community by giving of their time and talents. Santander is you 15 Learning and Knowledge: Your progress means we all move forward. Continuous learning and knowledge are vital for quality professional development. Santander innovates and invests in learning, with a Corporate Learning and Development Center that companies all over the world look to as a reference point. Recognition: We value your hard work. Santander acknowledges everyone s contribution and believes your ideas count. The company has a transparent, confidential and objective appraisal system, linked to a competitive salary and performance-based incentive plans. Team members volunteer at the New Hope Day Care Center Elizabeth NJ Professional Development: You set the limits. The professional growth of team members is one of Santander s key priorities. The company runs talent development projects, programs for new managers, offers individual professional advice and an Employee Care service. Leading Company: Our success is your success. Santander s leadership is the result of everyone s hard work. Santander is the leading bank in the Euro zone, and one of the top 10 banks in the world with a presence in key markets, 180,000 employees and more than 14,000 branches. International Profile: 95 nationalities in more than 40 countries. Working in a global setting is a very rewarding experience. Santander has multicultural teams in more than 40 countries taking part in global projects and sharing best practices. Santander Is You team member volunteer at Special Olympics summer event RI Work/Life Balance: A company that is open to your needs. Striking a balance between professional and personal needs is important. Santander has policies in place that aim to give team members a work/life balance.