Machias Savings Bank CEO Larry Barker talks about northern expansion and economic recovery
Photo / Dave Clough
Larry Barker, president and CEO of Machias Savings Bank, says the 145-year-old bank's expansion into Aroostook County is a natural fit.
Larry Barker worked his way up the ranks of Machias Savings Bank to become its president in 2011. He now is also the bank's CEO. Since 1869, Machias Savings has maintained a strong presence Down East. In the last decade, it has been expanding into the greater Bangor area, and last year it acquired six bank branches in northern Maine.
Barker, who raked blueberries for the bank's former CEO, knows first-hand about the blistered hands and sweat his customers in Maine's farming belt experience in daily life. That, combined with the bank's deep Down East roots, prepared it to serve those customers as it expanded into Aroostook County. The bank also services the lobstering industry with significant financing for boats, traps and gear. He recently talked about how his and the bank's background mesh with customer needs. An edited transcript follows.
Mainebiz: In 2013, Machias Savings Bank acquired the Bank of Maine's northern Maine branches. Can you tell us about that expansion?
Larry Barker: We were excited to acquire the new locations and have the opportunity to serve new customers in Caribou, Presque Isle, Houlton and Lincoln. We already had locations in Lincoln and Houlton and have had some great success in those markets. We had been looking for an opportunity to move further north.
MB: Many people lump together Washington and Aroostook counties. How would you compare their business needs?
LB: The two counties are very much alike from the standpoint of having great people with an incredible work ethic and very strong character. Many grew up just like we did, with blisters on their hands and sweat dripping from their forehead. The only difference is that they were in the potato fields and we were in the blueberry fields. From our original location on Main Street in Machias, we have grown to be one of the largest community banks in the state of Maine with assets totaling $1.1 billion. We have been financing logging and farming operations in northern Maine for many years, so expanding our footprint in Aroostook County is a natural expansion.
MB: What is your bank's role in two traditional Maine industries, blueberries and lobstering?
LB: We are one of the largest in the state when it comes to financing the lobster industry. We provide significant amounts of financing for boats, traps and gear. We finance lobster pounds and the working capital lines they need to buy and sell lobster inventory. We also finance many facets of the blueberry industry, including land, equipment and working capital.
MB: Have you seen signs of economic recovery in the communities you serve? What lessons has the bank learned to weather economic storms?
LB: Our communities are moving in the right direction, but it's with small year-over-year improvements. As an institution, we learned that it's important to stick with our time-tested discipline of having a strong capital position. We have a very seasoned team that has been through several difficult economic cycles and that's important.
MB: How does your background help you serve your customers?
LB: I raked blueberries for our former CEO, Ed Hennessey, in the late '80s. Ed told me in the field one day if I ever needed a job to come see him. I took him up on that offer in the fall of 1991 and he hired me under the condition that I finish my college degree. It took me four more years, going to school part-time and working full-time. I still spend time in the blueberry fields each year and, trust me, it's a grounding experience. Machias Savings Bank values character and work ethic. Our entire banking team will meet with a customer in the field at 5 a.m. if that's what works best. We're not afraid to get our hands dirty. In fact, we enjoy it.
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