AUGUSTA, Maine — After a contentious campaign, KV Federal Credit Union members last week rejected a proposed bank conversion and merger with nearby Kennebec Savings Bank.
"It's a great day for Maine's credit unions," said John Murphy, president of the Maine Credit Union League, who was notified of the final tally by a KV FCU member shortly after it became available.
KV FCU's board unanimously approved the intention to convert and merge last October, but the announcement kicked up a firestorm that lasted through the final day of voting. Organizations in favor of the merger and against the plans sprung up and battled each other in a variety of mediums. The Maine Credit Union League, as well as former KV FCU chairman Gerald Poulin, both publicly announced their opposition to the proposal.
Murphy lauded the $53-million credit union's membership for its passion in a fight that turned into a full blown political campaign in recent months. Political-style signs on both sides of the issue dotted yards and roadways in the weeks leading up to and during the month-long voting process that ended two weeks ago. Activists both for and against the merger took to the airwaves with advertising and tried to sway their fellow members with letters to the editor and full-page advertisements in the local newspapers. "[The members] deserve all the credit," said Murphy. "They worked hard for the last 12 months to save their credit union and they have."
KV FCU CEO Beverly Beaucage and Kennebec Savings Bank President Mark Johnston were not available for comment at press time, and final results of the tally were not available.
Had the merger been approved, it would have been the second in the region in which a credit union merged with a bank. In Massachusetts in 2008, Northeast Community CU announced plans to merge with Haverhill Bank.
The $700-million bank, which is a mutual, is substantially larger than the CU. Credit union management had cited expanded product offerings and efficiencies they said the merger would have brought in urging members to vote in favor.
