Larry Barker’s journey to the CEO role at Machias Savings Bank in Machias, Maine, was characterized by neither privilege nor pedigree. It began in a world of uncertainty, where stability was a luxury and every dollar mattered. His youth was marked by constant upheaval, yet within that instability, he absorbed lessons of resilience, determination, and grit—qualities that would define his approach to leadership.
From raking blueberries as a boy to managing multimillion-dollar portfolios, Barker’s ascent is a testament to the power of hard work and an unwavering commitment to people. His story chronicles a banker who built his success on trust, perseverance, and an unshakable belief that relationships matter more than transactions.
The Making of a Banking Leader
“I grew up moving from house to house every six months,” recalls Barker. “My stepfather was a gambler, and we never had stability. One day, my mother finally had enough. She kicked out her untrustworthy husband, packed up the car, and we started over.”
Part of that reboot was the move from the family’s then-current home in Bangor to Machias, just shy of the Canadian border, on the coast. The locale enabled the struggling family to put down some needed roots. “That’s when I was introduced to some stability and some great family members: my grandparents and two sets of aunts and uncles, who were just great,” Barker recalls. He cites their evident virtues, including “… a wonderful work ethic and strong values. They were good people, great mentors.”
This new chapter in his life compelled Barker to find a way to contribute to the household. “I was 10 years old, and I watched my mother work every shift she could get her hands on,” he remembers. “She started as a dishwasher at Helen’s Restaurant, and in ten years, she owned the place. That kind of resilience—it left a mark on me.”
By his teenage years, Barker had fully embraced a work-first mentality. “I didn’t have a choice. I raked blueberries in the barrens in the mornings, worked afternoons at Helen’s (alongside my mom), and overnight at a motel. I wasn’t afraid of hard work, and I knew if I wanted any kind of future, I needed to push myself harder than anyone else.”
That work ethic, learned through years of first-hand observation, caught the eye of Ed Hennessey, then the President of Machias Savings Bank. Barker recalls: “He saw me hustling, juggling three jobs, and he said, ‘If you ever want a job at the bank, come see me.’
“At the time, banking wasn’t even on my radar. But I had a serious girlfriend, and I figured I needed a job with stability. So, I walked through the doors of Machias Savings Bank in August 1991.”
A Trial by Fire in Banking
Barker’s entry into banking was anything but conventional. “They put me in collections. I was dealing with bankruptcies, foreclosures, and loan workouts. I didn’t know a thing about finance, but I knew how to work, and I was willing to learn.”
His education was hands-on and relentless. “I remember my boss asking me if I knew what a mortgage was. I said yes—then I went home that night and looked it up.”
Over the next six years, Barker immersed himself in every aspect of banking. “I reviewed every loan application that crossed my desk. I learned what made a good loan and what made a bad one. I understood risk because I saw the consequences of bad decisions firsthand.”
His breakthrough moment came when the bank’s senior lender left unexpectedly. “Ed walked into my office, dropped a portfolio on my desk, and said, ‘Here you go.’ That was it—trial by fire. I went from being in collections to managing a $50-million loan portfolio overnight.”
Barker thrived in the challenge. “I loved it. I wasn’t just approving loans; I was helping business owners grow their enterprises. I wanted to understand their businesses, their financials, their struggles. I wasn’t just looking at numbers; I was investing in people.”
The Core Banking Philosophy is Building Trust
For Barker, banking has never been about transactions—it’s been about trust, a virtue that has been woven deeply into the financial institution’s DNA. “We don’t do red tape. If I know my customers, and I believe in them, I don’t need three months to approve a loan. I need five minutes.”
That trust extended beyond customers—it shaped his leadership philosophy. When he became President and CEO in 2012, he made it clear: “We empower our people. Our lenders don’t just gather information and send it up the chain—we give them the authority to make decisions. If you don’t trust your people, you don’t deserve to lead them.”
Barker applied the same principle to his employees. During the COVID-19 lockdowns, he made the bold decision to keep from trimming the workforce, despite the temporary pause of onsite banking.
“I had a conversation with Human Resources and my senior leadership team,” he remembers, “and said: ‘We are not going to lay anybody off. And you can tell that to all our employees. Today.’
“And we did. And that stance remains our commitment to our employees today. We don’t lay people off.”
He further explains: “Now, if you’re not doing your job, we will ‘unhire’ you. But we don’t lay people off. We’re not going to let an employee go who otherwise is doing his or her job.”
Progressive Time-Off Policy for Employee Well-being
Barker takes an equally progressive approach to employee time off, ensuring that work-life balance is more than just a slogan at Machias Savings Bank.
“If one of my employees calls and says their child is sick, I don’t want them worrying about their paycheck—I want them at the hospital,” Barker says. “If you have a sick parent and need to take three months off, you’ll still have a job when you come back.”
Under his leadership, the bank has implemented an unlimited flexible time-off policy, allowing employees to take the time they need without the fear of repercussions. “We don’t measure commitment by the number of hours you sit at a desk. We measure it by how well you serve our customers and support your team. Life happens. And when it does, we take care of our people.”
This approach has led to high employee satisfaction and retention, reinforcing a workplace culture where staff feel valued both personally and professionally.
Trust-Fueled Growth at Machias Savings
The trust-based culture at Machias Savings Bank proved invaluable during the COVID-19 pandemic. “A longtime customer called me, panicked. He needed a $1 million credit line. I said, ‘What time do you want to come in tomorrow and get it?’ I didn’t need to see paperwork—I knew the man. I knew his business. That’s what banking should be.”
Under Barker’s leadership, Machias Savings Bank has grown from $950 million to $2.6 billion. “We don’t grow for the sake of growth. We grow because we’re building relationships. We grow because we invest in our people and our customers.”
The bank has expanded strategically, including a new branch in Manchester, New Hampshire. “We grow through the windshield. We build a market, develop relationships, and then we put up a sign. That’s how we’ve done it for decades.”
Barker’s Essential Tips for Aspiring Bankers
Barker has a simple but powerful message for those entering banking:
- “No one will outwork me. And no one should outwork you.” In other words, hard work opens doors, even in unexpected places.
- “If you don’t own the outcome, you’re just pushing paper.” That is, take responsibility for your decisions.
- “The best bankers don’t just approve loans; they understand businesses.” The takeaway here is to build relationships that transcend the numbers.
- “You have to keep learning. I read everything I can get my hands on.” Put differently: find mentors who push you to grow.
He also encourages young professionals to take initiative. “Don’t wait for someone to hand you an opportunity. If you want to get ahead, solve problems before anyone asks.”
Maintaining Culture and Connection During Growth
Barker is determined to keep Machias Savings Bank’s culture intact as it grows. He is unwilling, for example, for a customer to feel disassociated in any way with him or his staff. Additionally, their employees said they appreciated the visibility of senior leadership, and they listened. “We made sure that happened. In fact, we started keeping a spreadsheet that tracked every branch visit by senior leaders,” he notes. “If nobody’s been to Caribou, Maine, in six months, somebody better get up there.”
As competition in banking intensifies, Barker believes efficiency will be key. “Margins won’t be what they were. If you’re not focusing on efficiency, you won’t be here in five years.”
Yet, despite the pressures of leadership, Barker remains grounded. “At the end of the day, it’s not about titles. It’s about family. I have seven kids, four adopted, and four grandkids. We have dinner together three or four nights a week. That’s what matters.” It’s an unsurprising admission from a bank leader with a generous definition of family leave.
Reflecting on his career, Barker offers one final piece of advice: “If I could go back, I’d tell my younger self: Have more fun. Work just as hard, but don’t be so hard on yourself. It’s the climb that matters.”
