<ARTICLE> 9 <LEGEND> SOVEREIGN BANCORP, INC. AND SUBSIDIARIES PART III - FINANCIAL DATA SCHEDULE ARTICLE 9 OF REGULATION S-X </LEGEND> <MULTIPLIER> 1,000 <CURRENCY> Dollars <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> JUN-30-1997 <EXCHANGE-RATE> 1.000 <CASH> 133,910 <INT-BEARING-DEPOSITS> 18,268 <FED-FUNDS-SOLD> 0 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 718,052 <INVESTMENTS-CARRYING> 2,943,867 <INVESTMENTS-MARKET> 2,927,042 <LOANS> 6,842,853 <ALLOWANCE> (48,948) <TOTAL-ASSETS> 10,898,572 <DEPOSITS> 5,856,717 <SHORT-TERM> 3,752,000 <LIABILITIES-OTHER> 162,666 <LONG-TERM> 593,152 <PREFERRED-MANDATORY> 0 <PREFERRED> 96,441 <COMMON> 268,658 <OTHER-SE> 168,938 <TOTAL-LIABILITIES-AND-EQUITY> 10,898,572 <INTEREST-LOAN> 246,612 <INTEREST-INVEST> 114,204 <INTEREST-OTHER> 0 <INTEREST-TOTAL> 360,816 <INTEREST-DEPOSIT> 115,455 <INTEREST-EXPENSE> 234,302 <INTEREST-INCOME-NET> 126,514 <LOAN-LOSSES> 9,700 <SECURITIES-GAINS> 2,541 <EXPENSE-OTHER> 15,908 <INCOME-PRETAX> 50,943 <INCOME-PRE-EXTRAORDINARY> 50,943 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 30,713 <EPS-PRIMARY> .41 <EPS-DILUTED> .39 <YIELD-ACTUAL> 2.50 <LOANS-NON> 47,909 <LOANS-PAST> 4,844 <LOANS-TROUBLED> 390 <LOANS-PROBLEM> 16,626 <ALLOWANCE-OPEN> 46,093 <CHARGE-OFFS> 5,795 <RECOVERIES> 1,624 <ALLOWANCE-CLOSE> 48,948 <ALLOWANCE-DOMESTIC> 33,239 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 15,709