AUGUSTA (AP) – Two Augusta-based financial institutions, one a federal credit union and the other a state-chartered savings bank, announced Tuesday that they plan to merge.

If it wins regulatory approval, the merger of Kennebec Savings Bank and KV Federal Credit Union would mark a first in Maine and would be among the first instances nationally of a credit union teaming up with a savings bank.

Mark Johnston, president and chief executive officer of Kennebec Savings Bank, said the two institutions had long talked about a possible merger, and the discussions accelerated in recent months.

Officials billed the merger as a way for the two institutions to become more efficient and position themselves for growth in a crowded banking market.

The companies have set June 30 as a “loose target” for completing the deal, Johnston said.

Only subscribers are eligible to post comments. Please subscribe or to participate in the conversation. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.