KENNEBEC, Maine – Members of KV Federal Credit Union will begin voting on a rare credit union/bank merger on Saturday.
The $53-million credit union is seeking to merge with Kennebec Savings Bank, a mutual that is more than 100 years old. The merger has received considerable attention in local media, where letters to the editor have dueled over whether the merger will be good for members of the credit union and customers of the bank.
The credit union is not seeking to merge due to financial issues; its net worth is nearly 10% and its ROA is considerably above peer group. Earlier this week, the bank announced it was being recognized with a national award from Principal Financial Group for its employee benefits, with a bank exec telling the local “Morning Sentinel” it released the findings in part to soothe concerns of the 24 employees at the credit union.
Should the merger be approved, the CU’s $5 million in capital will be acquired by Kennebec Savings Bank. Members have until Sept. 21 to vote.
