In recent years Brian Gottlob has noticed a trend around his home in Dover: more out-of-state banks, particularly from Maine, opening branches in NH.
Gottlob, who is the director of the state’s Economic and Labor Market Information Bureau, wasn’t surprised. Compared to the rest of New England and the country, NH has a strong economy, he says, fueled by a well-educated population and thriving business community.
That makes the market appealing to banks, including at least seven institutions that have entered the NH market within the last year, or announced their intent to do so. In May, Massachusetts-based Cambridge Savings Bank announced plans to acquire Dover-based First Seacoast Savings Bank in the third quarter of 2026. The bank joins two other Massachusetts institutions, Needham Bank and Rockland Trust, that expanded into NH in 2025.
Maine-based Machias Savings Bank and Camden Bank also entered the market, with other Maine institutions including Bar Harbor Bank and Trust and Bangor Savings Bank expanding their footprint in NH. New-York based Community Bank opened its first NH branch in January, and Minnesota-based Luminate Bank opened two loan production offices in the Granite State last year.
For banks, “New Hampshire becomes a really logical place to broaden business,” Gottlob says. Institutions moving into NH are “making a bet on an economy that looks to be a standout in the region.”
Strong Business Community
Overall, the number of banks operating in NH has been relatively stable over the past decade, according to data from the Federal Deposit Insurance Corporation (FDIC), the agency that insures deposits and helps oversee American banks. In 2025, there were 41 banks operating in NH, compared to 42 in 2015.
However, there’s been a “major” shift in the number of Maine banks that operate in NH in recent years, according to Kristy Merrill, president and CEO of the NH Bankers Association. In 2015, there were three Maine banks with NH branches, and now there are six.
Differences in the states’ economies can help explain that, experts say. “Maine’s economy is growing more slowly than states like NH, so you have a lot of banks fighting over market share,” says Jay Hood, executive vice president and chief lending officer with Machias Savings Bank, which opened its first NH branch in Manchester last year. “The New Hampshire market is growing. The opportunity is much greater there.”
New Hampshire’s banking market seems able to support new players, according to Merrill. In 2015, she notes, the state’s banks held about $31 billion in deposits; by last year, that had increased to about $48 billion.
In addition to the economic potential, proximity played a role in Machias’ expansion into NH. The bank had made “a substantial number of loans” to NH businesses before formally entering the Granite State market, Hood says.
Machias isn’t alone in courting Granite State businesses. When New York-based Community Bank first expanded into NH, it did so by hiring a commercial lending team in Manchester, says Matt Plasse, New England regional president for the bank. Making in-roads with the business community helped when Community Bank opened its first NH branch in Bedford in January.
“A lot of success at the bank is related to bringing on deposits related to commercial accounts,” Plasse says.
New Hampshire’s strong start-up environment, especially in industries with growth potential like defense and biotech, is likely catching the attention of small- and mid-sized community banks looking to increase their commercial lending, Gottlob says.
“Most of these banks aren’t banks that are lending to huge corporations,” he explains. “They’re looking for a dynamic local economy with a lot of smaller
local businesses.”
Mergers and Acquisitions
While some banks are entering the NH market on their own, many more are making inroads through mergers and acquisitions. That’s been particularly prevalent in NH’s North Country. Last year, Camden National Bank acquired Northway Bank, which was headquartered in Berlin, and Bar Harbor Bank & Trust (which has been active in NH since 2017) acquired Woodsville Guaranty Savings Bank.
Those deals have “reduced the number of New Hampshire chartered bank branches operating in the state’s North Country, where local presence has traditionally been important to consumers,” says Emelia Galdieri, commissioner of the NH Banking Department.
In southern NH, Massachusetts-based Rockland Trust entered the market by acquiring Enterprise Bancorp, another Massachusetts-based institution that had branches in the Granite State for 21 years. Even prior to that acquisition, Rockland Trust had been eyeing the NH market, according to Jeff Tengel, president and CEO of the bank, who adds “it’s possible” that the bank will establish additional branch locations in the future.
“We want to grow,” Tengel says.
Not all banks are taking that approach. Machias has a retail banking presence in Maine, but has no plans to establish a retail footprint in NH, Hood says. Instead, it will continue to focus on commercial operations.
Shifting Market Shares Favor Smaller Banks
In the past decade, there have been some notable shifts in what institutions are holding deposits. Ten years ago, about 62% of NH deposits were held in three national banks (Citizens Bank, TD Bank, and Bank of America), but by last year that had dropped to 52%, according to FDIC data.
It’s possible that large national banks are scaling back their focus on the NH market. “They can make money in a lot of ways,” Gottlob says. “I’m not sure it’s the most profitable for them to be in the more competitive or rural locations.”
That’s left more of the market for smaller community banks. Bank of NH holds the largest market share of any state or regional institution: about 4.64% of deposits last year (up from 3.19% in 2015). Chris Logan, president and CEO of the bank, believes the increase is due to people choosing to bank local.
“You have access to decision makers,” he says. “The value proposition that Bank of New Hampshire and other community banks can provide is [we] can be true partners to businesses.”
Smaller local banks have many advantages in the marketplace, says Galdieri of the banking department. “Their familiarity with local industries, seasonal income patterns, property trends, and community needs enables flexible, relationship-based lending that may not be replicated by institutions headquartered outside the state,” she says.
Bank-Friendly Regulations Draw Interest
The state’s regulatory environment is also impacting which banks operate in NH and is drawing interest of those who want to start new banks. “New Hampshire is a business-friendly environment, which we certainly like,” says Plasse of Community Bank.
The state’s regulatory environment also drew the founders of Walden Mutual Bank, which opened in 2023. The mutual bank—which is owned by customers rather than shareholders—is the first of its kind approved by the FDIC in 50 years.
“New Hampshire state statutes had a path for that,” says Charley Cummings, CEO of the bank, which is headquartered in Concord but operates almost
entirely online.
Last year the NH Legislature shortened the de novo period during which newly chartered banks are under increased scrutiny from five years to three years, a move that the NH Bankers Association advocated. This brings NH into line with FDIC standards, Merrill notes, and regulators can extend the de novo period if needed.
Even before that, the NH Banking Department saw “steady interest in forming new financial institutions,” Galdieri says. In addition to Walden Mutual, the department has a pending application for a new commercial bank in Bedford.
Nationally, the market for new banks is “anemic,” Merrill notes, adding, “New Hampshire is really a bright spot.”
Whether from out-of-state acquisitions or newly established banks, having increased competition is a positive for the NH economy and business community, experts say. “Customers win,” says Merrill. “The continued growth that we see here is a positive for everyone.”
