Massachusetts SD 3312: Division of Banks 2023 Annual Report

Bill Text

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OCABR
The Office of Consumer Affairs and Business Regulation

mass.gov/dob
2023
ANNUAL REPORT
Massachusetts
Division of
Banks

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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.

2023 ANNUAL REPORT

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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 t