Banker & Tradesman file photo
In Eastern Bank’s first quarter earnings call last week, executives highlighted the increasing competition it faces for deposits in Massachusetts as its larger competitors get more aggressive with their pricing.
In late 2025, Salem Five announced that it would be launching a private bank. JPMorgan Chase has also continued its steady march of branch openings in Massachusetts, and specifically added physical presence in Cambridge for its more affluent customers.
“We’ve talked about smaller banks being competitive in certain parts of our market,” Eastern Bank CFO David Rosato told analysts. “That’s kind of the nature of this market up here. What’s changed is you’re now seeing more aggressive pricing from larger banks. Some of that is to support what they are trying to do in wealth management, some of that is online, and some of that is just larger banks being more competitive. Those dynamics are changing, and that affects everything. That affects the attraction of new money, but it also impacts existing because of the flows that you see just across your deposit base in normal times. There’s a certain amount of money that’s always in flight.”
Eastern reported that deposits increased by 20.7 percent to $25.1 billion year-over-year. Total deposit cost also dropped from 1.48 percent to 1.46 percent.
Eastern’s deposit makeup shifted slightly from the first quarter of 2025. Money market deposit accounts made up 31 percent of Eastern’s deposits compared to 27 percent a year ago. The bank is currently projecting that deposits will grow by one to two percent in 2026.
The deposit environment remains competitive, and we are taking targeted actions to ensure our offerings are appropriately positioned to defend and grow share,” Eastern CEO Denis Sheahan said. “While these efforts will result in some upward pressure on costs, we remain focused on balancing growth of our high quality deposit base with that of the margin. Overall, we believe Eastern is well-positioned to deliver meaningful value to shareholders by executing on organic growth opportunities and a consistent return of capital.”
