The battle over deposits has grown intense as interest rates continue to rise, especially in metro markets like Boston where the demand for loans is still robust.

While everyone faces competition, some local banks have fared better than others.

For instance, executives at Berkshire Bank said on their recent earnings call that the bank now has $700 million in deposits and $2 billion in loans in the Boston branches, which the bank has only had since 2017.

“I think we’re actually exceeding our own expectations,” Berkshire CEO Michael Daly said on the call.

At the same time, similar players have struggled.

Boston Private recently announced significant layoffs in part because of its inability to grow loans and deposits, forcing the bank to resort to expense reductions in order to improve return performance for shareholders.

Webster Bank, which has 33 branches in the Boston area, also said on its recent earnings call that it has fallen behind on its five-year, $500 million deposit goal in the Boston market.

“A lot of our promotional pricing, to the extent we do it, is in the Boston market,” Glenn MacInnes, CFO of Webster’s parent company, said on a recent earnings call. “So that’s where we are seeing most of the pressure on higher costs.”

Deposit pressure is nothing new, especially in a rising interest rate environment, and tends to produce similar trends, said Tom O’Connor, CPA and director of the financial institution services division at Milton-based GT Reilly & Co.

“When rates change at the Federal Reserve, you can almost always predict the institutions who will go out and raise rates, and to me it’s always the banks without branches,” he said, referring to largely digital banks, which includes the bigger institutions as well.

Those that do raise rates see lots of loan demand and opportunity, which is why many banks have likely adjusted pricing in the Boston market.

But not all choose to.

While Webster Bank said on its earnings call that it was running promotions in Boston, it later told Banker & Tradesman that there were other considerations at hand when it came to its deposit strategy.

“The Greater Boston market remains strategically important for us,” Webster Spokesperson Elaine Ficarra said in an email. “We continue to be disciplined with respect to pricing and building relationships to ensure we retain our core customers and move toward greater profitability across the footprint.”

Bram Berkowitz

 Ways to Differentiate

Pricing is not the only metric when it comes to the deposit war, as bankers and experts cite customer service and new products as other ways to stand out in a crowded battlefield.

Brian Sullivan, senior vice president and retail market leader of Massachusetts and Connecticut at Berkshire Bank, attributes the bank’s MyBanker program, which the bank has promoted in Boston, as a main reason for success.

The MyBanker program is a relationship concierge banking program that provides perks and priority service to everyone regardless of income, savings or wealth, and is not tied to a physical branch location.

“MyBankers will come to your office or meet you wherever you are. For those clients that look for a traditional presence, we are there, but we augment that with a mobile bank force,” Sullivan said. “MyBankers can assist customers with insurance, wealth management or deposits. The nice part is they become the quarterback.”

On the product side, O’Connor said he has heard that banks are getting creative by offering new promotions that will leverage existing customers instead of trying to bring in new business.

Some customers may keep their deposits with the same bank but shift them into new accounts to lock into new rates.

Other banks, said O’Connor, will agree to increase their rates for existing customers if they put more money in, which might persuade an existing customer to draw from funds they have at another financial institution.

“It’s still amazing that when you look at most institutions, their core deposits are in a very low interest-bearing account,” he said. “Banks are putting out specials and new programs and monitoring very closely where that money is coming from.”