AUGUSTA, Maine -- As anticipated, the board of the $51 million KV Federal Credit Union voted on Oct. 14 to approve a plan to merge with a local mutual bank.
But a local paper reported that the board voted to amend the merger proposal as well and that credit union executives declined to report how the proposal was changed.
The Kennebec Journal quoted KV CEO Beverly Beaucage to the effect that after reviewing all the issues, the board decided to make a few changes. The board of the potential merger partner, Kennebec Savings Bank, will take up the proposal on Oct. 21.
The paper also reported the credit union has slowed the pace of the merger process and does not anticipate a final vote on the question until late April or early May of next year.
While stressing that it had not yet decided the specifics of its reaction, the Maine Credit Union League has expressed confidence that members of the $51 million KV Federal Credit Union will wind up rejecting their board's merger proposal.
Reacting to the news that the KV Board had approved a reportedly amended form of the merger proposal, John Murphy, president of the Maine Credit Union League, expressed doubt that the board had acted in accord with the will of the CU's members.
"From everything we have heard, many members are opposed to this proposal and look forward to making their votes count," Murphy said. "From the beginning, our position has been and remains that the credit union charter is the best option. There is a significant value of member ownership that belonging to a credit union offers and that would be lost if this credit union converts. Educating members and helping them understand what they would lose will be the focus of our message in the months ahead."
League spokesman Jon Paradise said that the league could not imagine supporting the merger proposal but would withhold comments on the specifics of it until the credit union revealed more of its details.