The potential merger between Kennebec Savings Bank and KV Federal Credit Union has generated a lot of discussion, but also much misinformation.

In a column that appeared last week in this newspaper, Kennebec Savings Bank President Mark Johnston writes that the merger "is not an acquisition. No money is changing hands."

But that's only because the credit union is voluntarily turning over all of its assets, including more than $5 million in capital, all of the member shares and loans, two nearly new office buildings, an ATM network and some prime real estate in Augusta and Oakland.

Until a merger happens, those assets belong only to the members of the credit union. After a merger, the assets would belong to all Kennebec Savings Bank customers -- which would, at that point, include former KV Credit Union members -- and would be apportioned according to their respective share of deposits in the savings bank.

That means the wealthiest savings bank depositors would receive a disproportionate share of the combined assets; which makes this a great deal for the savings bank and its current clients, but not for the credit union members.

What would it cost Kennebec Savings Bank to acquire all this through conventional means? Even if the credit union's property and assets were already available for sale, it would take several years of work and many millions of dollars, with the net proceeds of the sale going to the members of the credit union.

But through a merger, it could happen within a few months, and the savings bank wouldn't have to pay a cent. Any costs associated with a merger will likely be paid from the current income and retained earnings of the credit union.

In answering the question of why merge if both institutions are profitable and well-capitalized, Johnston explains, "Put simply, we want to stay that way."

The credit union management says a merger will help the the credit union remain competitive and allow it to provide the level of service its members expect, but that can be true only if the credit union is still around after the merger.

In this case, only Kennebec Savings Bank will survive and become more competitive by increasing its assets, expanding its reach and by eliminating a competitor. Maybe the folks at the credit union missed this tedious little fact, but, after a merger, the credit union will cease to exist.

The proponents of this plan argue that a merger is necessary because of a slowdown in the economy, increased competition and the ability to offer a "broader range of services."

Both of these financial institutions have weathered tougher economic times and greater competition before now, and there isn't a financial product or service currently in existence anywhere that isn't already available to everyone involved.

If Kennebec Savings Bank customers were demanding a new product or service not currently offered, the bank would add the item to its portfolio without hesitation.

A slow economy, increased competition and the need for new products and services are the most commonly used excuses for lower-than-expected performance.

The financial services marketplace is a fairly simple place.

We all basically offer the same products and services. What set us apart from the competition are our policies and our service. A company survives and thrives in this business by making good decisions under adverse conditions and by providing above-average customer service.

The average tenure here at the Alliance of Maine Federal Credit Union is eight and a half years of service, so we don't have a problem keeping talented staff.

We were one of the first financial institutions in Maine to offer free Internet bill payment, and our members can use any ATM in the world, free of charge, yet we remain competitive.

That's because we deliver exceptional member service and because we've stuck to our core credit union principles.

Professionally, I should support the merger because it would remove a competitor from the very crowded local market. Nevertheless, I am both personally and philosophically opposed to the idea.

As a long-time member of St. Augustine Federal Credit Union, which was KV's original charter, I've watched as the policies and practices at the credit union have changed over time to the point where KV now charges higher fees than the for-profit bank they plan to merge with.

Indeed, those lower fees at the bank are cited by KV management as one of the benefits for members if they approve the merger.

It's precisely these policies and that kind of reasoning that has driven so many of us away from an institution that was built by our family and friends.

The credit union members are being told that, following a merger, they'll still have a voice in the decisions made at Kennebec Savings Bank, but their vote will decide whether the merger happens. Current customers of the bank don't get a vote.

If mutual savings banks were "just like credit unions," the Federal Credit Union Act of 1934, which paved the way for the establishment of credit unions across the country, wouldn't have been necessary.

Paul Guerrette is the vice president of Alliance of Maine Federal Credit Union and a former member of Kennebec Valley Federal Credit Union.