Xceed Financial Credit Union Members Approve Merger with Kinecta Federal Credit Union
Combined Entity to Become Nation’s 35th Largest Credit Union
Manhattan Beach, CA (March 1, 2021) — Kinecta Federal Credit Union, based in Manhattan Beach, Calif., and Xceed Financial Credit Union, based in El Segundo, Calif., today announced 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 today.
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. She 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.”
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 245,000 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).