2023 Massachusetts
ANNUAL REPORT
Division of
Banks
1
mass.gov/dob
OCABR
The Office of Consumer Affairs and Business Regulation
Table of Contents
Accomplishments ............................................................................................................................ 4
2023 Division of Banks Year in Review Highlights .......................................................................... 6
Agency Strategic Goals................................................................................................................... 8
Non-Depository Institution Supervision ........................................................................................... 9
Mortgage Supervision ................................................................................................................... 10
Consumer Finance/Money Services Business Activity .................................................................. 11
Licensing....................................................................................................................................... 12
Depository Institution Supervision ................................................................................................. 13
Bank Summary: Balance Sheet and Income Statement ................................................................ 14
Credit Union Summary: Balance Sheet and Income Statement .................................................... 17
Consumer Protection and Outreach .............................................................................................. 20
Consumer Assistance and Enforcement and Investigation ............................................................ 21
Cyber/IT/Fintech ........................................................................................................................... 22
Legal Unit...................................................................................................................................... 23
Major Depository Corporate Transactions ..................................................................................... 24
Legislative Summary ..................................................................................................................... 27
Appendix I: Cooperative Banks ..................................................................................................... 30
Appendix II: Savings Banks........................................................................................................... 67
Appendix III: Limited Purpose Trust Companies.......................................................................... 135
Appendix IV: Trust Companies .................................................................................................... 138
This annual report has been developed in accordance with
Massachusetts General Laws chapter 167, §13.
2
 2023 ANNUAL REPORT
Letter from
Commissioner of Banks Mary L. Gallagher
We are pleased to present the Division of Banks’ (Division) 2023 Annual Report to the General Court pursuant to General
Laws chapter 167, section 13. This report presents an overview of the financial industry regulated by the Division, including
a snapshot of agency accomplishments and aggregate statements of the condition, as of December 2023, of banks and
credit unions under the Division’s supervision.
As 2023 ushered in uncertain economic and recessionary pressures on the back of the Federal Reserve’s fastest paced
monetary policy tightening in history, the U.S. banking sector experienced upheaval with three large bank failures at the
end of the first quarter. Although these banks were not Massachusetts-chartered and therefore outside of the Division’s
jurisdiction, two of the three banks had physical branches in Massachusetts—bringing direct impact to Commonwealth
consumers and businesses. Fear of liquidity contagion gripped the nation, and the proximity of these failures felt extremely
local in Massachusetts. The well-publicized post-action reports of these institutional failures punctuated the importance of
fundamental risk management principles for all of our regulated entities and further underscored that financial regulatory
agencies, including the Division of Banks, play a key oversight role and must be sufficiently and adequately resourced.
The Division has spent recent years anticipating the risks of large bank supervision, emerging technologies, and evolving
financial industry landscape, and we had the foresight to request Administration and Legislature support for additional
resources. While the Division of Banks assesses the industry we regulate to cover our full operating costs, the agency is
still subject to the legislative process to determine our budget. We are greatly appreciative to the Legislature for our FY24
budget increase which has helped the Division towards our strategic priority for adequate staffing. To effectively supervise
the breadth of the Division’s regulated entities and ensure consumer protections, the Division relies on a professional,
experienced, uniquely trained staff to fulfill our mission and meet statutorily mandated examination schedules. The FY24
budget gave the Division the opportunity to realize a much-needed 25% expansion to actual headcount, and we now shift
focus to training new staff to complement our experienced examination team in meeting our supervisory mandate.
Beyond operational progress towards improved staffing levels, the Division’s other priority is our commitment to consumer
protection advocacy – most recently via our legislative effort to support H.1106 An Act relative to the regulation of money
transmission by the Division of Banks. Existing state law only provides consumer protection for peer-to-peer money transfers
sent by Massachusetts consumers to international destinations; H.1106 will capture the $25 billion of annual peer-to-peer
money transfers on common mobile apps like Venmo, PayPal, and CashApp that happen “domestically” within the United
States. The bill is based on the 2022 Model Law framework which 20 states have already adopted; H.1106 legislation will
bring Massachusetts into line with rest of the country and importantly give the Division the authority to ensure consumer
protection for the millions of transactions by Massachusetts residents. We remain hopeful for H.1106’s successful passage
in the 193rd General Court.
Sincerely,
Mary L. Gallagher
Commissioner of Banks
3
 2023 ANNUAL REPORT
Accomplishments
Licenses issued or renewed by the Division to
16,678 mortgage companies, mortgage loan originators,
money services businesses, debt collectors, loan
servicers, and consumer finance companies.
Consumers receiving reimbursements totaling
18,130 $2.7 million from complaint resolution or Division
enforcement actions.
Total number of completed bank, credit union,
licensee approval requests (620) and total
624 number of legal opinions (4) issued.
Total number of examination reports mailed to
depository (77) & non-depository (304)
381 institutions.
Foreclosure delay requests received by the
158 Division, of which 101 were granted.
4
 2023 ANNUAL REPORT
39 Formal & informal regulatory orders issued by the
Division.
Total number of major corporate transactions
46 consummated involving banks & credit unions (11)
and total number of bank and credit union branch
office notices/applications processed (35).
The Division hosted 5 outreach webcasts on its DOB
connects platform. Topics included access to financial
5 services for people with disabilties; commemorations of
Black History, Hispanic and Asian Pacific Islander
Heritage Months; and overcoming financial barriers for
service members and their families.
Division employees achieved a total of 10 new
10 certifications in 2023 and completed, on average, 33
hours of training.
In 2023, the Division filled 14 positions: 9 Bank
14 Examiners, 3 Licensing Examiners, 1 Legal Counsel
and 1 Data Analyst.
5
 2023 ANNUAL REPORT
2023 Division of Banks Year in
Review Highlights
Staffing/Training:
• The Division hired staff to fill 14 positions: 9 Bank Examiners, 3 Licensing Examiners, 1 Legal Counsel and
1 Data Analyst.
• Training reflected a combination of in-person and virtual courses, providing greater occasions for staff
participation. Division staff receive ongoing opportunities for skill development and refinement as the
agency leverages partnerships with federal and industry partners. 33 Division employees participated in
FFIEC virtual conferences, 13 examiners completed core FDIC requirements, 13 participants at industry
and trade association conferences, 24 participants in specialized knowledge courses, and 3 participants in
skill building classes.
• Division staff averaged 33 hours of training in 2023.
• 10 Division examiners achieved new certifications in 2023.
• 35 Division staff serve on industry and national regulatory committees demonstrating the- agency’s reach,
engagement, collaboration, and leadership on state-federal financial regulator.
Notable Actions:
• As reported in the 2023 Annual Enforcement Bulletin, the Division issued a total of 39 formal and informal regulatory
Enforcement Orders, collected a total of $4,506,750.00 in administrative penalties and reimbursed $2,656,895. to a
total of 18,130 consumers.
• On May 23, 2023, the Division hosted a Board of Bank Incorporation Hearing pertaining to a petition by Newburyport
Five Cents Bancorp, MHC (MHC) and Newburyport Five Cents Bancorp, Inc. (Bancorp) of Newburyport, MA for the
direct and indirect acquisition of Pentucket Bank of Haverhill, MA. MHC and Bancorp are the mutual holding company
and mid-tier stock holding company, respectively, of Newburyport Five Cents Savings Bank, Newburyport, MA.
• On June 27, 2023, the Division hosted a Board of Bank Incorporation Hearing pertaining to a petition by 1831 Bancorp,
MHC (MHC) and 1831 Bancorp, Inc. (Bancorp) of Dedham, MA for the direct and indirect acquisition of South Shore
Bank of Weymouth, MA. MHC and Bancorp are the mutual holding company and mid-tier stock holding company,
respectively, of Dedham Institution for Savings, Dedham, MA.
• On March 28, 2023, the Division of Banks, in collaboration with Bank on Women, Inc. and Goodwin Law, hosted
Enhancing Community Bank Risk Management and Governance through Diversity, an industry event featuring keynote
speaker Yvonne Hao, the Commonwealth’s Secretary of Economic Development. The goal of the event was to connect
current bank leadership with potential diverse board members. Industry experts and regulators participated in panel
discussions covering hot topics in banking, key traits, experience, and skill sets which all effective bank directors and
c-suite executives should have. 100+ attendees from the banking sector and related stakeholders participated.
6
 2023 ANNUAL REPORT
• During Boston Fintech Week 2023, the Division hosted an event entitled Fintech Regulation: The Importance of Risk
Management & Compliance. Over 60 industry leaders, entrepreneurs, and interested parties attended the session held
at Boston’s CIC Innovation Center. The session included a panel discussion on fintech licensing and supervision,
industry trends and risks, and regulatory observations and concerns. The Division announced the release of the
Ransomware Self-Assessment Tool, Version 2.0 (R-SAT 2.0) for banks and credit unions. The tool was developed in
collaboration with the Bankers Electronic Crimes Task Force, state bank regulators, and the U.S. Secret Service and
was originally released in October 2020. Version 2.0 reflects updates developed considering evolutions in the
ransomware threat environment and threat actor behaviors, as well as changes in bank and credit union control
environments that have occurred since its original issuance.
Division Funded Grant Programs:
• On March 30, 2023, the Division of Banks, in collaboration with the State Treasurer’s Office of Economic Empowerment
and the Office of Consumer Affairs and Business Regulation, announced the recipients of the Financial Education
Innovation Fund Grants. Fifteen schools were awarded grants totaling $42,265.00. These grants provide
Massachusetts high schools and special education programs with funding to hold financial education events for students
called “Credit for Life Fairs.” The Division funds this program through its Mortgage Settlement Trust Fund. Read more
about the grants here.
• On May 16, 2023, the Division of Banks awarded nearly $3 million in grants to 23 organizations to fund first-time
homeownership education programs and foreclosure prevention counseling centers throughout Massachusetts. The
funds were awarded through the Chapter 206 Grant Program, which assists homeowners who may be experiencing
financial hardship as well as prospective homebuyers who are determining if homeownership is right for them. The 2023
grant recipients included 10 regional foreclosure education centers and 13 consumer counseling organizations. The
Division funds this program through licensing revenues retained from Mortgage Loan Originators. You can read more
about these awards here.
• On July 5, 2023, the Division of Banks, in collaboration with the State Treasurer’s Office of Economic Empowerment
and the Office of Consumer Affairs and Business Regulation, awarded $64,432 in 2023 Operation Money Wise grants
to 14 non-profits. Operation Money Wise supports organizations that provide high quality financial education that
address the unique needs and challenges of the military community. The Division funds this program through its
Mortgage Settlement Trust Fund. You can read more about the 2023 Operations Money Wise grant recipients here.
7
 2023 ANNUAL REPORT
Agency Strategic Goals
The Division’s 2024-2026 Strategic Plan reflects the agency’s commitment to the mission of ensuring a sound, competitive, and
accessible financial services environment throughout the Commonwealth. The Plan focuses on our agency’s vision and core
values, as reflected and strived for in the daily work of Division staff.
We support a culture of inclusion within the Commonwealth that values and promotes diversity and equal opportunity for all
individuals. We align agency diversity and inclusion initiatives with EOED’s Diversity Plan and goal to build robust, sustainable, and
measurable diversity, equity, and inclusion initiatives across the agencies.
Throughout the year, agency staff made significant steps in working to achieve our vision of a financial services environment in
which:
• the public has confidence in its financial institutions,
• consumers have the information needed to make wise financial choices, and
• financial institutions can compete both within the Massachusetts system and with federally chartered entities.
We worked towards our mission and vision by focusing on the following goals.
Consumer Protection and Outreach
Our consumer protection and outreach goals are to implement and enforce consumer protection laws and regulations,
while also providing consumers and/or industries with information to make both informed financial decisions and
prepare to mitigate anticipated risks.
Supervision and Regulatory Environment
Effectively supervise and examine the Division’s regulated entities through a regulatory framework which ensures consumer
protection while promoting a competitive industry. The Division will strive to develop and maintain a real-time, networked
supervision program utilizing data to satisfactorily complete its core supervisory functions through examination, licensing,
consumer complaint review and response, and initiation of regulatory actions where appropriate.
Administration, Staffing, and Development
Review and plan for operational improvements to ensure the Division functions effectively and efficiently amidst the
changing workplace landscape. Strive to develop the Workforce of Tomorrow by leveraging collaborations, technology, and
maximizing partnerships.
8
 2023 ANNUAL REPORT
Non-Depository Institution
Supervision
The Non-Depository Institution Supervision (NDIS) unit licenses and examines the over 16,000 non-depository financial
institutions in Massachusetts. These institutions include:
• Mortgage lenders
• Mortgage brokers
• Consumer finance companies
• Money services businesses
• Debt collectors
• Loan servicers
• Check Cashers
• Check Sellers
• Student Loan Servicers
In order to evaluate the overall safety and soundness of the non-depository financial institutions in Massachusetts, while
complying with our mission to ensure sound, competitive, and accessible financial services, NDIS examiners conduct
periodic examinations of these companies to assess the level of compliance with consumer protection laws.
9