Kinecta Federal Credit Union and Xceed Financial Credit Union Announce Plans to Merge
Combined Entity to Become Nation’s 35th Largest Credit Union
Manhattan Beach, CA (July 16, 2020) — Kinecta Federal Credit Union, based in Manhattan Beach, Calif., and Xceed Financial Credit Union, based in El Segundo, Calif., today announced that the two credit unions have reached a tentative agreement to merge. Following approval by regulatory authorities and Xceed’s membership, the merger is planned to be completed before the end of the first quarter of 2021. The combined credit union will operate under the Kinecta Federal Credit Union name and charter and will have approximately $6 billion in assets, 300,000 members and 33 locations. It 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.
Kinecta President & CEO Keith Sultemeier (pictured right) will serve as Chief Executive Officer of the combined credit union, Xceed President &
Chief Executive Teresa Freeborn (pictured below) will serve as President, and the Kinecta Board of Directors 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.”
Freeborn was enthusiastic about merging the two well-respected, financially healthy credit unions: “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,” she said. “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.”
Kinecta and Xceed are both workplace credit unions, which means most of their members work for or are retired from employer group partners (as known as Select Employer Groups, or SEGs) that offer credit union membership as an employee benefit. Both also have a significant community presence – Kinecta in Southern California, and Xceed in Southern and Northern California and Rochester, New York. Immediate family or household members of both credit unions’ members are also eligible for membership, as are people who live, work, worship or attend school in certain communities where the credit unions operate.
About Kinecta Federal Credit Union
Kinecta Federal Credit Union is one of the nation’s largest credit unions, with approximately $5 billion in assets, 22 branches, two retail mortgage centers, and 255,000 members nationwide. Banking the South Bay for 80 years, Kinecta offers its members a full range of financial products through the Credit Union and its subsidiaries, Kinecta Wealth Management and Kinecta Insurance Services. Each year, Kinecta partners with, donates to, and invests time in more than 150 nonprofit causes. For the past nine years (2011-2019), it has been named the South Bay’s Best Credit Union by Daily Breeze readers and was recently voted the best Credit Union in the South Bay for Easy Reader’s 2020 Best of the Beach.
About Xceed Financial Credit Union
Xceed Financial is a full-service, federally chartered workplace credit union with approximately $900 million in assets, 50,000 members nationwide, and ten locations on the East Coast and West Coast. Previously known as Xerox Federal Credit Union, Xceed serves more than 200 employer group partners, including major brands such as Xerox, Realogy, ADT and Wyndham. Xceed was named one of CU Journal’s “Best Credit Unions to Work For” for five years (2014-2018).