The recent news about a potential merger between Kennebec Savings Bank and Kennebec Valley Federal Credit Union has resulted in some healthy discussion, but unfortunately, some misinformation in the process.

Kennebec Savings Bank is a $670 million mutual savings bank, headquartered in Augusta since its inception in 1870. It was created by an act of the Maine Legislature and signed into law by Gov. Joshua Chamberlain. Several mutual savings banks were created in Maine during that era, primarily as a savings outlet for people outside of mainstream business, such as women and families.

The bank has deep roots in the community and has had a long-standing commitment to improving the lives of its citizens. As a mutual savings bank, Kennebec Savings Bank has no stockholders, existing solely for the benefit of its three stakeholder groups: customers, employees and the communities it serves.

The bank has offices in Augusta, Waterville and Winthrop and an Electronic Banking Center in Manchester. It has been the No. 1 mortgage lender in Kennebec County for several years and has received many awards, including Business of the Year by both the Kennebec Valley and Mid-Maine Chambers of Commerce, the Governor's Award for Business Excellence and the Best Places to Work in Maine.

Kennebec Valley Federal Credit Union is a $55 million credit union, headquartered in Augusta since its inception as St. Augustine Credit Union in 1962.

Like the savings bank, the credit union also has no stockholders and exists for the benefit of the same groups of stakeholders. The credit union has offices in Augusta and Oakland.

Both institutions are profitable and well-capitalized and, in actuality, are more alike than they are different.

For the past several months, management and the boards of these two local financial institutions have explored the possibility of merging. Although the two are not equal in size, we consider this a merger of equals because both institutions bring strengths and expertise to the table. To facilitate the merger, both institutions will convert to a federal mutual savings bank and then be merged together.

This is not an acquisition. No money is changing hands.

If credit union members approve the merger, all credit union employees will become Kennebec Savings Bank employees. The bank's employee benefit package (which includes health and dental insurance and a 401k program) is considerably better than what the credit union has been able to provide to its employees.

No employees on either side of the proposed merger, however, will be rewarded financially, other than for the improvement in benefits being offered to all credit union employees.

If credit union members approve the merger and it receives all regulatory approvals, we hope that the merger will be concluded sometime during the middle part of next year.

If both financial institutions are profitable and well-capitalized, why merge?

Put simply, we want to stay that way (profitable and well-capitalized). There is pressure on earnings because of the slowdown in the economy and the increase in competition, particularly from enormous national and multi-national banks. And the competition is not just for customers, loans and deposits. It's also for quality, well-trained employees. As a slightly larger financial institution, with more capital, more employees, more branches and more ATMs, we will be better able to compete in the future.

We are exploring the merger because we truly believe it would be in the best interests of both organizations and our three stakeholder groups.

For members, it means a broader range of products and services provided in more areas.

For employees, it means better benefits, as well as more opportunities for growth within the merged organization.

For the community, it means that two local institutions have joined forces in order to remain local and true to their missions, which include a long-standing commitment to improving the lives of local citizens through community service and reinvestment.

Those are the facts of this merger and any attempts to cast this effort in a different light are a great disservice to this community.

If and when credit union members vote to join with the members of Kennebec Savings Bank, the strengths of that union will benefit the members themselves, the employees and the economy of the greater Kennebec Valley.

Mark L. Johnston is president of Kennebec Savings Bank.