Public meeting aims to keep S&L in Calais

CALAIS – A public meeting has been called for Wednesday evening at the American Legion hall here to decide what steps can be taken to keep Calais Federal Savings and Loan a locally owned association.

At the 6:30 p.m. meeting, discussion will center on the proposed merger of the city’s hometown bank – Calais Federal Savings and Loan – located on the corner of Main and North streets, and Gardiner Savings Institution.

The announcement was made Oct. 13. Gardiner’s merger plans were approved by the bank’s board of directors and are subject to regulatory approval. The actual change is anticipated in the first quarter of 2007.

However, the announced plans have rankled folks in this city. Mayor Vinton Cassidy sent a letter to the board and S&L chief executive officer Dennis Brown saying, “As you know from its inception, savings and loan associations were created to be a mutually owned institution by the depositors and the borrowers. I feel this is why CFSL has been such an important part of our economic base here in Calais,” the mayor said.

“I hope you will reconsider your decision and keep CFSL as a real asset to the city of Calais,” the mayor added in his letter.

At the Wednesday meeting, Cassidy said, the focus will be on why the directors of Calais Federal did not ask for a vote of the members, or each depositor, and what personal compensation, if any, the directors receive if the merger takes place.

Arthur C. Markos, president of Gardiner Savings Institution, said in a prepared statement that the merger would be appropriate move in today’s banking environment. “Smaller banks are forced to compete with tax-exempt credit unions and megabanks with a size advantage that becomes a factor as technology continues to develop in the industry. The cost of regulatory requirements is an additional burden. This merger positions both banks to better compete in this fast-moving arena.”

“Our focus as a community-oriented bank parallels Calais’,” he added, “and we intend to maintain, and hopefully enhance, that commitment to the communities and customers that Calais Federal Savings and Loan serves.”

Gardiner Savings, established in 1834, is the second-oldest savings bank in Maine. With assets totaling more than $750 million, the bank has a solid footprint in central and midcoast Maine with more than 20 branch locations. It is also in the process of acquiring First Citizens Bank, headquartered in Presque Isle, adding $135 million in assets and five branch offices.