In recent weeks, two banks with similar names announced their were becoming one, while two credit unions made a similar announcement of their own.
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It’s a busy time for financial services mergers in central Maine, with two banks and two credit unions unveiling tie-ups within days of each other in June.
In the larger of the two, Augusta-based Kennebec Savings Bank is joining forces with Kennebec Savings and Loan Association of Waterville, to form an entity with about 165 employees and $1.25 billion in assets.
The credit union merger, which took effect June 27, brings together Augusta-based Connected Credit Union with Winslow Community Federal Credit Union. The enlarged Connected Credit Union employs 27 people in the two locations, serves more than 8,400 members and has assets of $100 million.
Kennebec Savings President and CEO Andrew Silsby underscores that the tie-up between his institution and his smaller peer is a merger and not an acquisition because there is no financial transaction involved.
“This is two mutual organizations coming together within the same market,” he says. “We decided we’re stronger together than we’re apart. This is more about social issues.”
Kennebec Savings currently has locations in Augusta, Waterville, Farmingdale, Winthrop and Freeport. Once the deal is completed, Kennebec Federal’s two Waterville branches will remain in operation and its 21 employees will join the Kennebec Savings team of 145, putting the total at 165.
Silsby will continue in his role at the enlarged Kennebec Savings, while Kennebec Federal President and CEO Allan Rancourt will retire.
Regulatory reviews ‘mostly process-driven’
Kennebec Savings was incorporated in 1870. Its pending merger will be its first since 1995, when it joined forces with Waterville Savings and Loan Association, which back then was a $35 million bank. Today it’s a $225 million branch office for Silsby’s institution.
Kennebec Savings aims to complete its merger with Kennebec Savings and Loan in the fourth quarter of 2020, pending regulatory approvals.
Silsby says there will be reviews by at least three regulatory bodies and possibly four. He expects those to take between five and eight months without any major hurdles, saying, “It is mostly process-driven. We get good grades from our regulators … I don’t anticipate any challenges with the regulatory process.”
In the meantime,Silsby says that various teams are working on different aspects of post-merger integration from converting bank software to setting up a new employee benefits structure, and that having similar cultures helps.
“This is not a situation where this big entity is coming in and taking over,” Silsby says. “The blending of the mission and the cultures is priority one.”
