AUGUSTA, Maine — The board of the $51 million KV Federal Credit Union will vote on Oct. 14 whether to put a proposal to merge with a bank before the credit union's members.
According to an announcement KV put on its Web site (www.kvfcu.org), the merger would benefit the credit union's members by allowing the credit union to grow further and offer more branches, more comprehensive business services, enhanced loan terms and maintaining its ties to the local communities, among other things.
The credit union listed the negative effects of the merger as the loss of credit union structure and the advent of corporate taxation.
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KV CEO Beverly Beaucage said the credit union's board came to the merger decision in part though declining options, explaining that the CU had considered first the possibility of merging with another credit union but had been unable to find one with the same roots or commitment in the local Augusta community.
By contrast, the perspective bank merger partner, Kennebec Savings Bank, has the local focus Beaucage said KV wanted.
In addition to its Web site, the credit union has placed similar notices in the local paper and has provided a way for members to e-mail their comments on the possible change on the site.
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