|
MERGER PROPOSAL: KSB AND KV FEDERAL CREDIT UNION
Seeking to expand and improve upon financial services for area residents and businesses, Mark L. Johnston, President & CEO of Kennebec Savings Bank (KSB) and Beverly W. Beaucage, President & CEO of KV Federal Credit Union (KVFCU) today announced that the parties are discussing the potential of a merger of the two institutions under the name of Kennebec Savings Bank. This announcement begins a rigorous and thorough process of scrutiny, including appropriate legal postings and comment periods, approvals and votes by the directors and members of the Credit Union, the trustees and corporators of the Bank, and regulators. If approved, the resulting institution would be a federally-chartered mutual savings bank.
Kennebec Savings Bank is one of the oldest mutual savings banks in Maine. Its charter was signed in 1870 by then Governor Joshua Chamberlain. KV Federal Credit Union was established in 1962 as St. Augustine's Federal Credit Union and its County charter allows for membership in both Kennebec and Somerset counties. Both institutions are familiar with the merger process; in 1992, KV acquired Messalonskee Regional Federal Credit Union, and Kennebec Health Systems Federal Credit Union in 1993. Similarly, KSB and Waterville Savings and Loan combined successfully under the Kennebec Savings Bank name in 1995.
"With all the changes happening in the financial services industry, this union of two longstanding and respected local financial institutions could provide the greatest opportunity for improved services and choice for residents in the Greater Kennebec Valley," said Johnston.
Beaucage said, "We've continued to grow steadily since 1962 while maintaining a strong capital base and steadfast focus on member service. Our board determined that the long term goal for KV was to build and maintain a strong presence in Kennebec Valley offering our members a wide variety of financial services. In order to accomplish this, it makes sense to consider combining our efforts with a local institution that has similar values." Richard Tardiff, KV's Board Chair commented "A union like this could allow us to capitalize on each others' strengths to make the best financial institution going forward."
If approved, the combined institution would have assets of over $700 million, deposits of $436 million and capital of $77 million. Despite their different charters, KV Federal Credit Union and Kennebec Savings Bank are very similar organizations, with deep roots in the community. "A combined institution may be better able to serve the future financial needs of the existing members and customers and the entire Greater Kennebec Valley community," Johnston said.
Kennebec Savings Bank maintains offices at 150 State Street in Augusta, 84 Main Street in Winthrop, and 226 Main Street in Waterville. A 24-hour electronic banking center, KSB Anytime, is located on Route 202 in Manchester. KV Federal Credit Union has locations at 316 West River Road in Augusta and 25 Oak Street in Oakland as well as ATMs located at MaineGeneral in Augusta and at T-Mobile in Oakland. KSB also has an ATM on Riverside Drive in Augusta.
If approved, the combining of KV Federal Credit Union and Kennebec Savings Bank would likely be completed in mid-2009.
|
