Things Should Get A Lot Less Confusing Around Kennebec County
June 18, 2020
Things are going to get a little less confusing in Kennebec, Maine by the end of the year. It was announced that in the next 5-8 months, Kennebec Savings Bank will merge with Kennebec Federal Savings.
When combined, the combined Augusta banks will have 165 employees and $1.25 billion in assets. Kennebec Federal's two Waterville branches will remain in operation and its 21 employees will join the Kennebec Savings team of 145, putting the total at 165. Kennebec Savings currently has locations in Augusta, Waterville, Farmingdale, Winthrop and Freeport.
No cost-cutting measures are foreseen.
Andrew E. Silsby Kennebec Savings Bank’s president and CEO, told MaineBiz, his relationship with Kennebec Federal President and CEO Allan Rancourt goes back about 10 years, and that they met about twice a year for breakfast when the subject came up of a possible merger between the two "fierce but friendly competitors."
"This is a mutual to mutual merger," he told MaineBiz, "so we're not paying for any stock. This is more about making sure that the values of the two organizations are similar, and I would call it more about social issues than monetary."
The merger is expected to be completed in the fourth quarter of 2020 subject to customary closing conditions, including regulatory approvals that Silsby does not anticipate being problematic.
"Both banks are good banks, they get good grades, and I really don't anticipate any difficulty there," Silsby said. He will continue in his current role after the merger, while Rancourt will retire.
Kennebec Savings was advised on the deal by the Kafafian Group Inc., with legal representation by Pillar + Aught. Kennebec Federal Savings took advice from New England Business Advisors Inc. with legal representation by Bernstein, Shur, Saywer & Nelson P.A.