Kennebec Savings Bank, the state chartered bank that had applied for a federal charter as part of its proposed merger with KV Federal Credit Union has withdrawn its application after the CU's members nixed the proposed merger.
The credit union's members voted down the proposed charter change and merger in September.
The plan had been for the bank to convert to a federally chartered institution before the credit union changed to a bank charter and immediately merged and KSB already had the charter conversion process well under way. But now that the KV charter change and merger is off the table, the bank has withdrawn its application for a charter with the Office of Thrift Supervision.
Bank CEO Mark Johnston denied in the local media that the vote from KV members against the merger was why it had withdrawn the application, but acknowledged that the bank had stayed in the process longer than it otherwise would have because of the merger possibility.
Johnston
cited the shifting nature of federal banking regulations as the reason for KSB's withdrawal, particularly the current proposal which would eliminate the very federal thrift charter that the bank had been seeking.
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