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V O L . X X I I N O. X X V I I A s national banks pare down their presence in greater Portland, community banks are rapidly expanding in the market. TD Bank, KeyBank and Bank of America have closed branches in Cumberland County over the past decade, while community banks like Gorham Savings Bank, Bangor Savings Bank, Camden National Bank and Norway Savings Bank have stepped up their pres- ence in the market. For the community banks, the economic hub of fast- growing Portland represents fertile new territory. But for big banks, Maine's size and growth potential pales in comparison to major metro areas like Boston, New York and Atlanta and the booming frontiers of online and mobile banking. "Banks expanding into the area from outside of Portland see this as an opportunity to grow their busi- ness," says Gerard Cassidy, a Portland-based analyst who is managing director of equity research for RBC Capital Markets. But for large banks, "the reallocation of capital to better growth markets and the increased use of digital channels has reduced the need for as many branches." Global trends, local impact What's happening in Portland is being driven by forces that are transforming the industry nationwide. Over the past decade, the banking industry has cut 3,012 branches. But banks with less than $1 billion in assets have actually opened a net of 3,275 branches, while larger banks have cut more than 6,000 retail sites, according to S&P Global Market Intelligence. Smart phones and consumers' voracious appetite for mobile services have forced banks to invest heav- ily in technology and cybersecurity. While interact- ing in person at a branch is still the most common method of using fi nancial services, online banking services are nearly as popular as ATMs. Today 71% of consumers use online banking and 38% of consum- ers use mobile banking, according to a 2016 survey conducted by the Federal Reserve Bank. "We've seen more change in our industry in the last 10 years than in the previous 50 years," says Gorham Savings Bank President and CEO Chris Emmons. "We must continue to evolve in order to meet the chal- lenges and opportunities of this dynamic marketplace." 0 2 4 6 8 10 12 14 16 18 20 22 24 NBT Bank Machias Savings Bank Katahdin Trust Company Biddeford Savings Bank People's United Bank 1 First Tennessee Bank Border Trust Company Mechanics' Savings Bank Camden National Bank Bangor Savings Bank Gardiner Savings Institution Saco & Biddeford Savings Institution Northeast Bank Androscoggin Savings Bank Bath Savings Institution Maine Bank & Trust Company 1 Gorham Savings Bank Norway Savings Bank Bank of America KeyBank TD Bank 2006 2016 Chris Emmons, CEO of Gorham Savings Bank, has overseen the bank's growth in the Portland market. He stands in front of the historic Grand Trunk building, which Gorham Savings is refurbishing for a branch offi ce. P H O T O / T I M G R E E N WAY Community banks gravitating to Portland As national banks scale back, Maine-based banks fill in the market B y J e n n i f e r V a n A l l e n B A N K I N G & F I N A N C E F O C U S N OV E M B E R 2 8 , 2 0 1 6 26 Cumberland County bank branches, 2006 vs 2016 1 In 2008, People's United entered the Portland market with its purchase of the holding company of Maine Bank and Trust. S O U R C E : FDIC, data through June 30 of each year

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