Kinecta Federal Credit Union Of Manhattan Beach Merges With Xceed

Manhattan Beach CA

02 March, 2021

2:14 PM

Description

MANHATTAN BEACH, CA — The member-owners of Xceed Financial Credit Union, based in El Segundo, have voted to approve a merger with Kinecta Federal Credit Union, based in Manhattan Beach. The merger is effective April 1, 2021, with the continuing credit union operating as Kinecta. With the merger, Kinecta will become the 35th largest credit union in the United States, the 8th largest credit union in California in terms of asset size, and the largest credit union operating in the South Bay area of Los Angeles County. Once merged, Kinecta will have approximately $6 billion in assets, nearly 300,000 members and 32 locations. The merger is supported by both credit unions' Boards of Directors and management, and was recently approved by the National Credit Union Association (NCUA). 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." The voting process, which gave Xceed members the option of voting electronically or with paper ballots, was run by an objective third-party vendor that reported that more than 83 percent of votes cast were 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, Feb. 26, 2021, with the final vote tally confirmed Monday, March 1, 2021. 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 awhole new world of benefits for members that Xceed simply could not have delivered had wecontinued to go it alone," she said. "This is also great news for our Xceed associates. Most of ourpeople will be staying on to serve members after the merger, and I'm thrilled they're asenthusiastic about the merger as our members are."Presently, 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).