Members Vote Overwhelmingly to Join Forces
El Segundo, Calif. (March 23, 2016) ─ The member-owners of Menlo Park, California based Reach Federal Credit Union, which was founded in 1971 to originally serve employees of Raychem Corporation and has $100 million in assets, today voted to approve a merger with Xceed Financial Credit Union. 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 March 31, 2016, after which they will operate as Xceed Financial Credit Union. Both credit unions are “workplace” credit unions, with membership open to employees of their Select Employer Group (SEG) partners nationwide.
Teresa Freeborn, Xceed Financial’s President and Chief Executive, noted that the current Reach Credit Union offices in Menlo Park, California and Fuquay-Varina, North Carolina (near Raleigh) and sales associates in Boca Raton, Florida, Denver, Colorado, and Harrisburg, Pennsylvania will become part of the Xceed Financial network. They will continue to serve current and former employees of several companies – including Pentair, TE Connectivity, Tyco, and ADT – and enhance Xceed Financial’s capabilities in several key markets.
“This merger is a perfect fit because both credit unions share a focus on working closely with our nationwide employer groups and business partners to deliver high-value products and services that are tailored to their employees’ needs. It is a benefit that they just can’t get from any other financial institution,” said Freeborn. “It’s also ideal since it will add strategicallylocated Financial Centers to our nationwide network, creating a credit union with more than $1 billion in assets and 70,000 members nationwide. We’re excited about the outstanding opportunities this merger offers for us to grow and share our comprehensive range of financial products and services with these new members.”
While Reach Credit Union is financially sound, greatly-expanded regulatory requirements and technological changes have been particularly challenging for smaller credit unions like Reach. Thus, its Board of Directors and management had been searching for a strong and compatible strategic partner capable of meeting the financial needs of members nationwide.
“By combining forces, we gain efficiencies that better position us to serve all of our members and meet the needs of our employer groups,” said Reach Credit Union’s current Chief Executive Officer Christine Petro, who will join Xceed Financial’s senior management team following the merger. “Partnering with Xceed provides an opportunity for Reach Credit Union to preserve our workplace legacy, while allowing our members to benefit from enhanced financial fitness initiatives and an even larger line-up of financial products and services.”