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W W W. M A I N E B I Z . B I Z 15 A P R I L 1 , 2 0 2 4 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E "We're not losing money, but we're not as profitable as we historically have been to do a normal amount of business," says Dan Walsh, president and CEO of Norway Savings Bank. Deposits at Norway Savings fell 9.1% in 2023 to $1.48 billion at year-end, excluding deposits via third-party brokers, according to Maine Bankers Association data. "We went from an environment where banks were awash in cash to where we are right now," Walsh says. Bullish on Maine banks' ability to weather the current turbulence, he adds: "We are blessed with a lot of great banks in this market. It's just unfortunate that our reputation gets sullied by the SVBs, the Signatures, the NYCBs." New York Community Bancorp Inc. (NYSE: NYCB) — owner of Flagstar Bank, one of the largest regional banks in the country — set off alarm bells on Wall Street in late January, when it posted a surprise fourth-quarter loss of $260 million. NYCB also slashed its quarterly dividend by 71% and boosted loan-loss provisions to $552 million from $62 mil- lion the previous quarter "to address weakness in the office sector, potential repricing risk in the multi-family port- folio, and an increase in classified assets." e bank's shares have since lost about two-thirds of their value. Commercial real estate in flux While it remains to be seen whether a $1 billion equity infusion from pri- vate investors will be enough to keep NYCB afloat, the bank's roller-coaster ride is adding to questions about the health of smaller, regional banks nationwide with large commercial property loan portfolios. In December, Fitch Ratings cited commercial real estate as a growing TheFirst.com/1-800-564-3195 You choose Maine. We choose you. With Merchant Services from First National Bank, your business will save 4% off your transaction fees or we'll give you $100. With local support and a team of digital commerce specialists on the ready when you need us, we're all in on you. You've built your life here, we want you to keep growing it to fit your dreams. DREAM FIRST. Ashley Benson, Innkeeper LimeRock Inn, Rockland Email DigitalCommerce@thefirst.com to start saving 4% today. When a business is in distress a lifeline can take many forms. That's where Drummond Woodsum attorneys Jeremy Fischer, Ben Marcus, Peter Klein, Jeff Piampiano, Julia Pitney, Kellie Fisher and Christopher Brooks can help. Our extensive bankruptcy, restructuring, and creditors' rights practice is ready, willing, and able to undertake efficient and immediate action in any distressed commercial situation. We pride ourselves on providing practical advice to our clients in northern New England and across the country from the first sign of distress through the most complex chapter 11 bankruptcy. dwmlaw.com | dwmlaw.com | 800.727.1941 800.727.1941 C O N T I N U E D O N F O L L OW I N G PA G E » We're not losing money, but we're not as profitable as we historically have been to do a normal amount of business. — Dan Walsh Norway Savings Bank

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