Kennebec Savings Bank and KV Federal Credit Union yesterday announced plans to merge, the first merger in Maine of a credit union and a bank.
Officials from the Augusta-based financial institutions said joining would allow them to expand their services and attract customers in an increasingly competitive banking market, according to a press release from Kennebec Savings. If approved, the merged company would operate under the Kennebec Savings Bank name and give it combined assets of approximately $702 million, deposits of $436 million and capital of $77 million, according to the release. In October, KV Federal Credit Union will begin converting into a mutual savings bank, and Kennebec Savings will convert into a federally chartered savings bank.
The merger, if approved by regulatory officials, is tentatively scheduled to be complete by June 30, 2009.
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