Kinecta Federal Credit Union, based in Manhattan Beach, Calif., and Xceed Financial Credit Union, based in El Segundo, Calif., announced Monday that the member-owners of Xceed Financial have voted to approve a merger with Kinecta. Supported by both credit unions’ Boards of Directors and management, and recently approved by the National Credit Union Association (NCUA), the merger will take effect on April 1, 2021, after which the continuing credit union will operate as Kinecta Federal Credit Union. With approximately $6 billion in assets, nearly 300,000 members and 32 locations, it will be the nation’s 35th largest credit union, California’s eighth largest in terms of asset size, and the largest credit union operating in the South Bay area of Los Angeles County.
The voting process, which gave Xceed members the option of voting electronically or with paper ballots, was run by an objective third-party vendor and was overwhelmingly favorable, with more than 83 percent of votes cast in support of the merger. The tentative results of the vote were announced at a special meeting of Xceed’s members, which took place virtually due to the COVID-19 pandemic, on Friday, February 26, 2021, with the final vote tally confirmed Monday, March 1, 2021.
Kinecta President & CEO Keith Sultemeier welcomed Xceed’s members and employees to the Kinecta family, and expressed enthusiasm for the great cultural fit the merger represents: “Figuratively-speaking, our teams have worked shoulder-to-shoulder throughout the due diligence process and the many activities leading up to the vote of Xceed’s members,” he said. “All of that has validated our earlier judgements that joining forces is going to be great news for the members of both credit unions. I’m humbled by the tremendous confidence in Kinecta that Xceed’s members have demonstrated with this vote, and delighted to welcome Xceed’s associates on board.”
As part of the merger agreement, Xceed’s President & Chief Executive Teresa Freeborn will stay on as President of Kinecta, and the Kinecta Board of Directors will expand from seven to nine members to accommodate two Board members from Xceed. Freeborn was particularly enthusiastic about the benefits the merger offers Xceed’s members and employees: “This merger is a huge win for our members and a tribute to the Board volunteers who had the vision to see the possibilities a strategic merger could present. The economies of scale we achieve open up a whole new world of benefits for members that Xceed simply could not have delivered had we continued to go it alone,” she said. “This is also great news for our Xceed associates. Most of our people will be staying on to serve members after the merger, and I’m thrilled they’re as enthusiastic about the merger as our members are.”
Keith Sultemeier
Teresa Freeborn