Banks adjust as borrowing costs climb

Matthew McNulty

08/14/2026

MOVING IN:  Construction worker Fabiola Roman installs drywall at a new Bank Rhode Island branch in Newport in 2023. The bank is now called Beacon Bank. Several smaller banks expanded their branch networks in Rhode Island over the last five years, while bigger financial institutions shuttered some of their branches.  PBN FILE PHOTO/DAVID HANSEN

In early 2022, Rhode Island’s banks were still operating in an environment defined by abundant liquidity and historically low interest rates. COVID-19 pandemic-era stimulus programs had boosted deposits, mortgage activity remained strong and commercial development continued at a steady clip. But it wasn’t too long before that landscape shifted. As the Federal Reserve began the

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