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V O L . X X V I I I N O. X X V I I I N OV E M B E R 2 8 , 2 0 2 2 20 B A N K I N G / F I N A N C E / I N S U R A N C E F O C U S processed over the past couple of years in the lower interest rate environment, to today's lower activity due to higher interest rates. at said, it is important to keep in mind that, especially for community banks, being there for homeowners, even at higher rates, is part of the full banking service we provide. Residential lending is still an important product set for us to help homeowners navigate, what can be the one of the most impor- tant purchases in their life. MB: Does the decline result in impacts on the bank? GD: It does. e key for us, and all Maine banks, is a diversified revenue stream. Small businesses are still an active market and have been one of our silver linings, as well as additional fee revenue sources. We are able to strategi- cally balance our income as we look to grow and meet our customers' needs. MB: Camden National Bank is Maine's No. 2 mortgage lender. What's your outlook for that segment? GD: We still have a strong pipeline of mortgage activity coming on, although lower than previous years. We're confident we can maintain it at a healthy level. MB: What are your expectations of mortgage activity going forward? GD: We're going through a reset for a variety of reasons as the economy absorbs the impact of rising interest rates, which also impacts home sales. Once the rate environment settles down, we'll have a new baseline and we'll all readjust. e last couple of years we've been able to invest in our technology platform and processes, to make home lending be more efficient for both us and our customers, which will help us absorb these changes. MB: Is today's interest rate environ- ment 'normal'? GD: at's what everyone is wrestling with. For over 10 years before the pan- demic, interest rates fell and remained low. When the pandemic hit, it caused rates to go even lower, as we experienced uncharted territory. With inflation pick- ing up as quickly as it did, some people draw analogies to the early 1980s, when inflation was significant. Today, the Federal Reserve is try- ing to be proactive and curb infla- tion. However, other influencers, such as supply chain challenges and low unemployment, are making it chal- lenging. ere's also geopolitical risk, which is also impacting the economy and consumer confidence. All of these things are swirling around, making it difficult to reach a new normal. We've gone through periods of high interest rates before, but the underlying rea- sons have been different, which makes it difficult to predict. MB: Other considerations? GD: We'll still be helping homeowners purchase or refinance their home. at's part of why we're here as a commu- nity bank. I think that's key. Camden National Bank and Maine's banking industry in general have a long-term commitment as an economic driver for the state of Maine. Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz » C O N T I N U E D F RO M P R E V I O U S PA G E machiassavings.bank + At Machias Savings Bank, we know that helping Maine businesses thrive is one of the most important things we can do. When Mainers are successful, we're all better off! That's why we work hard every day to provide the products, services, and solutions necessary to help make the hopes, goals, and dreams of Maine businesses a reality. So, how can we help you find your "YES!" The key for us, and all Maine banks, is a diversified revenue stream. — Gregory Dufour Camden National Bank P H O T O / T I M G R E E N WAY Gregory Dufour, president and CEO of Camden National Bank, says the bank is able to strategically balance its income to account for the shifting home loan landscape.

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