By Christian Mullins
Lost (to me anyway) amid the news that KV FCU representatives would field questions from their members regarding their proposed conversion and merger was a September 30 editorial that appeared in the Morning Sentinel written by Kennebec Savings Bank President & CEO Mark L. Johnston. The Op-Ed lists reasons why the possible merger would be in the best interest of both financial institutions.
Credit Johnston for being able to state his case for merger before any pro credit union organizations were able to come out against it. He seems to understand that this proposal is likely to get a little (ok, really) ugly over the next few months, and bringing his views (ASAP) to those that will ultimately decide on its fate is important.
He spoke of KSBs long standing ties to the community and how alike the two institutions are. Johnston also made sure to emphasize that, other than increased benefits for the KV FCU staff, none of them will be rewarded financially. Perhaps most importantly, he declined to discuss the fact that this type of conversion/merger is almost unheard of over the last decade, which may place doubt in the minds of some KV FCU members.
Interestingly, he chose to use the word ‘profitable’ to describe both financial institutions. It’s no secret that any successful non-profit has a positive net income, but it’s what they do with that net income that defines a non-profit from a for-profit organization. Given the tone and quality of the editorial, it’s reasonable to assume the word was used to further break down the barriers between credit unions and community banks, raising KV FCU members comfort level regarding the proposal.
October 9, 2008 at 8:56 pm |
[...] a mutual savings bank, then merger into Kennebec Savings Bank. Last week, Kennebec Savings Bank President and CEO Mark Johnston made his case for KV FCU to join the KSB team. On Wednesday, Alliance of Maine FCU Vice President (and former [...]