Banks set sights on Danvers

KEN YUSZKUS/Photo.Branch manager Glenn Boutchie Jr., left, and vice president regional manager Kevin Noyes are at the new First Ipswich Bank in Danvers.

Editor's note: The chart with this article has been updated since its original publication to reflect a correction. Align Credit Union is located at 110 Newbury St., Danvers.

DANVERS — With another two banks branches opening in town within the span of a month, you might say Danvers is fast becoming the Switzerland of the North Shore.

First, Beverly Bank opened a branch on Elm Street in early February, followed by a branch of First Ipswich Bank a month later at 107 High St.

The town now has 12 banks with 14 branch offices, with more than $1.6 billion in deposits, according to the Federal Deposit Insurance Corp.'s deposit market share report of June 30, 2016, the latest figures available.

These figures do not count three credit unions in town — four if you count the town's municipal credit union in Town Hall.

Why the spate of banks branches out all of a sudden?

Bankers say Danvers is attractive for several reasons: It's a well-run, blue-collar town with a strong commercial base and good housing stock. It's also centrally located as it is crisscrossed by Route 1, Route 128, Route 114 and Interstate 95.

"I think it's a reflection of the North Shore, generally, and Danvers is right in the middle of the action," said Joe Riley, executive vice president of consumer banking for Eastern Bank, the No. 2 bank in town in terms of deposits.

"Danvers is a wonderful community and a well-run town and we have enjoyed being part of the community for a long time," said North Shore Bank President and CEO Kevin Tierney, a resident of Danvers who says the bank has had a branch in town since 1970.

"I think it's certainly a competitive business, but Massachusetts in general, and certainly the North Shore, and certainly on Essex County, has been a vibrant market for a long time," Tierney said.

"Everybody's in Danvers," said Bruce Potter, a lifelong resident and chief operating officer for Salem Five, which has two branches in town. 

"Danvers is a great community. It's a wonderful location," Potter said.

"You look at the town of Danvers, how much commercial entities are in this community is amazing," said Kevin Noyes, the new vice president and regional manager for the retail banking division of First Ipswich Bank, which opened the doors to its newest branch March 6.

Danvers has become a mini hub for banks, with its population of 26,500 and a median household income of $77,949, according to the U.S. census. 

The other banking hub on the North Shore is Beverly, the home of Beverly Bank. 

The Garden City has at least 13 banks and 23 branches with $1.5 billion in deposits, according to the FDIC.

Last year, Salem, where Salem Five is headquartered, had 10 banks and 16 branches, and $1.7 billion in deposits.

Peabody, where North Shore Bank is headquartered and East Boston Savings Bank has its executive offices, had 10 banks and 21 branches, and almost $1.9 billion in deposits, FDIC data shows.

People's United roars back

Danvers Square has long been dominated by the former Danvers Savings Bank, and later Danversbank, which had a nearly a 60 percent market share in town in 2011 when Connecticut-based People's United Bank acquired it.

Since then, People's United has consolidated its footprint. It closed a branch on High Street, the same one that has now become the new First Ipswich branch.

Today, People's United has close to a 50 percent market share in Danvers. It's next closest competitor, Eastern Bank, has a more than 12 percent share here.

After the acquisition, however, People's United's market share in town fell to 35 percent in 2015 and $446 million in deposits. The bank had shed online certificates of deposit Danversbank had once offered.

However, as of last June, the bank's deposits in Danvers grew to $788,000, which was nearly the size of Danverbank's deposits in 2011 when it was acquired.

People's United Bank's Massachusetts President Patrick Sullivan said the Danvers office has benefited from a focus on commercial business. 

The bank is doing more business in education and health care. The bank was also the beneficiary of some large corporate clients. It has grown its wealth business in town, too.

"It's been a good story for us in Danvers," Sullivan said.

EBSB

About four years ago, East Boston Savings Bank, whose executive office building is in Peabody, opened a branch across the street from People's United in Danvers Square.

"The day they announced People's coming is the day I rented the space right across the street," said the bank's Chairman, President and CEO Richard Gavegnano. He said he also acquired about 70 employees from the former Danversbank.

East Boston Savings has grown its market share to more than 10 percent and $172 million in deposits in Danvers, the FDIC report shows.

"For us, to come into town in 4 1/2 years and get that market share is just a story of what we are doing all over the state," Gavegnano said.

Beverly Bank

In recent months, Beverly Bank invested in a brand new colonial-style branch at 29 Elm St. 

President and CEO Mike Wheeler said it is healthy that banks want to open up in town.

"For us, it was a natural location to go," Wheeler said. Beverly Bank had a significant number of Danvers customers who were already traveling to its other locations. 

First Ipswich's familiar faces

On Monday, March 6, workers were busy installing signs on the side of First Ipswich's new branch.

The bank is a wholly-owned subsidiary of Brookline Bancorp, the holding company of Brookline Bank and Bank Rhode Island. First Ipswich also has branches in Essex, Gloucester, Ipswich, Newburyport and Rowley. 

While the branch is new, it has familiar faces.

It's assistant vice president and branch manager is Glenn Boutchie Jr., a former vice president and market manager with People's United in town. He had worked for about 15 years for Danversbank and People's United.

Boutchie is well known for volunteering with the Kiwanis Club of Danvers, Care Dimensions and the Danvers Educational Enrichment Partnership. 

"For Danvers, I believe there's quite a few banks in Danvers, but I like to think of it as having enough business in town for everybody to share. Obviously, what separates you from other banks is the service we provide," said Boutchie. "I have a large portion of Danvers residents here, so we know the community. We are involved in the community one way or another."

The new branch and others will be overseen by Kevin Noyes, who worked for almost 18 years for Danversbank and People's United. He joined First Ipswich in December.

"We like that community feel, and one thing that I personally love about this bank, is that we don't live in silos. So, we are all a big team," Noyes said. "We all help each other out, and that's what you want in a nice, community bank."

Danvers banks

Bank Locations Deposits Market Share

People’s United 1 Conant St., 3 Federal St. $788 million 46.8%

Eastern Bank 4 Federal St., $208 million 12.4%

Salem Five 85 High St.,137 Endicott St. $185 million 11%

East Boston Savings Bank 10 Elm St. $172 million 10.2%

Bank of America 81 Elm St. $88.5 million 5.3%

North Shore Bank 48 Elm St. $74.8 million 4.4%

Citizens Bank 301 Newbury St.(Stop & Shop) $69.6 million 4.1%

Santander Bank 17 Maple St. $42.3 million 2.5%

NorthEast Community Bank 87 Elm St. $36 million 2.1%

MountainOne Bank 140 Commonwealth Ave. $18.3 million 1.1%

Beverly Bank 29 Elm St. NA NA

First Ipswich Bank 107 High St. NA NA

TD Bank 107 Elm St. (ATM only) NA NA

Credit unions

RTN Federal Credit Union, 29 Andover St.

USAlliance Financial, 100 Independence Way (Liberty Tree Mall)

Align Credit Union, 110 Newbury St.

Town of Danvers municipal credit union, 1 Sylvan St.

Source: Deposit Market Share Report Federal Deposit Insurance Corp., June 30, 2016