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CU System
League CUs vote to pursue merger disappointing
WESTBROOK, Maine (10/16/08)--The Maine Credit Union League called the vote of Kennebec Valley FCU’s (KV FCU) board of directors to continue with its proposal to convert to a bank and immediately merge into another one “disappointing but just one step in a long process.” On Tuesday, the credit union board voted in favor of its proposal to pursue the conversion process. If approved, KV FCU would convert to a mutual savings bank and then merge with Kennebec Savings Bank. The conversion vote seems to run contrary to much of the feedback coming from credit union members, according to John Murphy, Maine league president. “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,” he said. The league encourages credit union members to get the facts about the proposal and consider it carefully. “In the end, members will consider if it is in their best interests to lose their credit union and the benefits of using a credit union, such as consistently higher rates on savings, lower rates on loans, and the value of being a member-owned institution. The reality is if more members vote to convert to and merge with a bank, the credit union will no longer be their credit union and all of the capital, assets and structure will cease to belong to them,” Murphy concluded. KV FCU, based in Augusta, Maine, has $51 million in assets.


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