The TSB brand could vanish from UK high streets after rival Santander agreed to buy the lender for £2.65 billion, raising concerns about potential branch closures across the combined network.
The move comes as Santander plans a "rationalisation" of the overall branch network and examines "overlaps" involving properties.
Spanish owner Sabadell announced the sale yesterday, though the deal still requires shareholder approval.
The bank declined to comment on whether the TSB brand, which traces its roots back more than 200 years, will be retained.
The acquisition would create the UK's third-largest bank by personal current accounts. Santander said it "intends to integrate TSB in the Santander Group" as part of the deal.
TSB currently operates around 175 branches across the UK
GETTYTSB currently operates around 175 branches across the UK and employs more than 5,000 people. Santander runs 349 branches with approximately 18,000 staff.
Both lenders have reduced their branch networks in recent years as customers increasingly shift to digital banking.
The combined group would face significant overlap in locations.
Sabadell had been considering a sale of TSB as part of efforts to prevent itself becoming subject to a hostile takeover. The Spanish bank originally purchased TSB for £1.7 billion in 2014, gaining a foothold in the UK market.
The latest deal values TSB at £2.65 billion, though some reports suggest the figure could reach £2.9 billion
GETTYThat acquisition came just a year after Lloyds had spun off TSB in a stock market float. The latest deal values TSB at £2.65 billion, though some reports suggest the figure could reach £2.9 billion.
TSB saw first-quarter profits nearly double in May thanks to cost-cutting and improved mortgage lending ahead of April's stamp duty deadline.
The performance came as the bank continued streamlining operations.
Marc Armengol, TSB chief executive, said: "TSB is a truly special bank, run by a first-class team that deliver trusted service and support for customers, day in and day out."
He added: "Today's announcement represents the next exciting chapter for this successful business, as part of Santander, a highly regarded banking group. I believe this will prove to be an excellent fit for our loyal customers."
Ana Botin, Banco Santander's executive chairwoman, described the acquisition as "a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders."
She continued: "It strengthens our franchise in a core market through the acquisition of a low-risk and complementary business that adds to our diversification."
That acquisition came just a year after Lloyds had spun off TSB in a stock market float
PAThe deal represents the second time TSB has changed hands in a decade.
Lloyds Banking Group originally carved out TSB from its operations before floating it on the stock market in 2013.
Sabadell's purchase the following year was intended to establish a presence in the UK banking sector. However, the Spanish bank has faced pressure from potential hostile bidders, prompting the decision to sell.
The transaction requires approval from Sabadell's shareholders before completion.
If approved, it would mark a significant consolidation in the UK banking sector, with implications for customers and employees across both networks.
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