MANHATTAN BEACH, Calif.–Two large California credit unions have announced plans to merge.
The $4.8-billion Kinecta FCU and $902-million Xceed Financial Credit Union in El Segundo, Calif. said they plan to combine operations with a goal of completing the merger by the first quarter of 2021.
The combined credit union will operate under the Kinecta FCU name and charter, with more than 300,000 members and 33 locations. The merged CU will be the nation’s 35th largest credit union, and California’s eighth largest in terms of asset size, and the largest credit union operating in the South Bay of Los Angeles County.
According to the credit unions, Kinecta CEO Keith Sultemeier will serve as CEO of the combined credit union, and Xceed Financial CEO Teresa Freeborn will serve as president. The Kinecta board will expand from seven to nine members to accommodate two board members from Xceed.
“This merger will be great news for members of both credit unions,” said Sultemeier. “Xceed has a solid branch network, especially in the Rochester area of New York, which will enhance access for Kinecta’s East Coast members, and provide a fantastic platform for growth. The cultural fit is also excellent. Both of us are workplace credit unions with strong ties to our respective employer group partners, and a strong community presence. We’re also 100% member-service driven, with experienced teams at both credit unions, so we’re looking forward to a very smooth transition.”
Economies of Scale Cited
Added Freeborn, “The economies of scale we’ll achieve with this merger will deliver exceptional value to all of our members, from enhanced products and services, to a larger branch network, very robust digital banking, full-service Saturday banking, and more. Just as important, Kinecta respects and values Xceed’s history and our long-time relationships with members, employer group partners, and the communities we serve. This merger will allow us to take everything we do for members to the next level, and I’m delighted we found a merger partner as committed as we are to our members’ best interests and financial well-being.”
Xceed Financial was originally chartered in 1965 as a credit union for Scientific Data Systems, which was later acquired by Xerox Corp. and known as Xerox FCU (hence the X in its name). Kinecta was founded in 1940 as Hughes Aircraft employees FCU, and changed its name to Kinecta in 2001.