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V O L . X X I I I N O. V I I I A P R I L 1 7 , 2 0 1 7 28 Experts see the deal momentum continuing "I don't think we've seen the end of bank consolidation," says Erin Hurley, chief consulting offi cer with Hurley Solutions Inc. in Portland. " e banking industry is very expensive, from the technology to anti-fraud monitoring to security and compliance costs. Banks have to have economies of scale if they're going to be able to compete. at's why we're seeing so many acquisitions." In recent years, one of the biggest compliance costs — and headaches — for banks is Dodd-Frank, the post-fi nan- cial crisis law that imposed new rules on Wall Street. e American Bankers Association notes that consolidation has accelerated after Dodd-Frank, with small banks disappearing at a faster rate since 2010. e current moderate-growth, low-interest rate environment in a his- torically fragmented sector adds pressure on banks to seek growth and effi ciencies through mergers and acquisitions. "I think you'll see the mergers across the country continue and at a faster pace than new banks open- ing," says Samuel Ladd III, a fi xture in Maine's banking industry for more than 45 years who is now retired. "If you talk to the smaller banks, the cost of Dodd-Frank has just killed them." At the other end of the spectrum, many who have put the fi nancial crisis behind them are fi nally in a position to pursue long-sought strategic goals, noted Fitch Ratings Inc.'s Christopher D. Wolfe in a March 2016 article. In Maine, there have been at least half a dozen deals in the past 18 months or so, starting with Camden National Bank's purchase of the Bank of Maine in October 2015 for $135 million in cash and stock to extend its reach into south- ern Maine. More recently, in December 2016, Camden merged its Acadia Trust N.A. wealth management subsid- iary (acquired in 2001) into Camden National Bank to form Camden National Wealth Management. " ere is some repositioning going on in banks where you see diff erent institutions going in diff erent directions where they see a business opportu- nity," says Maine Bankers Association President Christopher W. Pinkham. " ey all have diff erent secret sauces about what their target audience is." For Camden National Bank (NASDAQ: CAC), a desire to expand into the higher-growth southern Maine region was the motivation behind its Bank of Maine purchase. » C O N T I N U E D F RO M P R E V I O U S PA G E Building a business? TALK TO A NEIGHBOR. Our experienced lenders are more than bankers — they're problem solvers and will work with you to design a commercial loan that's right for you. We're proud to support local Maine businesses with products and services to help your business grow. Custom lending solutions are here for you — and so are we. Let's talk. MEMBER FDIC EQUAL HOUSING LENDER 1-800-447-4559 bathsavings.com Bath • Boothbay Harbor • Brunswick • Damariscotta • Falmouth Freeport • Portland • South Portland • Yarmouth Theresa Hodge Senior Vice President, Commercial Lending P H O T O / T I M G R E E N WAY Gregory A. Dufour, president and CEO of Camden National Bank, oversaw a merger with Bank of Maine, which made Camden National the largest Maine-based bank. F O C U S

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