Teller Barbara Mobley rings up a transaction for social worker Michael Davis at the Augusta VAH Federal Credit Union. Ms. Mobley worked for the King Mill credit union before the mill closed. ANDREW DAVIS TUCKER/STAFF

Not all of the 306 King Mill employees who were laid off were called back to work after Standard Textile took over operations earlier this year, leaving many unable to pay their Savings and Credit Association loans.

Now the debts are held by the Augusta VAH Federal Credit Union, which acquired the $6 million mill credit union Aug. 31.

VAH Federal Credit Union President Wayne Coffin said his organization will work out special arrangements with those currently unable to make payments.

''If we want to bend our policy rules to help people in trouble, we will do that as long as they do their part,'' he said.

The merger, approved by both the King Mill and VAH boards of directors, boosted VAH's assets to $40 million and its membership to 9,000. The King Mill credit union's three full-time employees were added to the VAH staff, and its president, Dot Wall, was named vice president of operations.

''The merger pretty much makes (the former King Mill credit union) a stronger organization,'' said Ms. Wall. She said mill members now have access to checking and certificates of deposit products, which were previously unavailable.

The VAH credit union is maintaining reserves of $5 million to cover any loan losses. The 48-year-old organization has three offices, one at each VA Medical Center campus and one under construction on Augusta West Parkway.

Reach Damon Cline at (706) 823-3486 or bized@augustachronicle.com.