Kinecta Federal Credit Union and NuVision Federal Credit Union Mutually Agree Not to Pursue Merger

Manhattan Beach, CA & Huntington Beach, CA – {March 1, 2012} – Kinecta Federal Credit Union (Kinecta) and NuVision Federal Credit Union (NuVision) announced today that the Boards of each organization have mutually decided to terminate their merger agreement. Roger Ballard will continue as joint CEO of both credit unions while Kinecta conducts a CEO search process and puts a transition plan in place.

As two independently strong, well-capitalized credit unions, both Boards agreed at the outset that they would move forward with the merger only if it offered substantial benefits with minimal disruption to members and each organization’s business strategies and operations. As both credit unions have continued to assess the length of time required for merger review, approval and integration, they now estimate an additional two-year timeframe given the economic environment. Both credit unions have come to the conclusion that continuing the merger process for this amount of time would be too disruptive to their business and members.

“Merging two large, diverse financial institutions is an incredibly complex and time-consuming process that places significant demands on resources and diverts staff focus away from core business operations. Given the length of time now anticipated to complete the merger, both credit unions decided that moving the merger forward at this point is not in the best interests of either credit union or our members,” said Darryl Johnson, Chair of the Board of Kinecta. “We still believe there are great synergies between our credit unions, and look forward to exploring strategic opportunities that benefit our members. We have tremendous respect for the NuVision organization, and know they have a great future ahead. The Kinecta Board has begun a search for a new CEO, and we are confident we will have a smooth and seamless transition. We also want to express our appreciation to Roger, who has done an outstanding job as Kinecta’s CEO and played a key role in working with our leadership team to build capabilities that will drive our business for a successful 2012. Kinecta has begun the year with very strong financial results, and we expect to continue this positive momentum moving forward.”

Robert Geraci, Chair of the Board of NuVision, commented, “It’s been a great experience working with the Kinecta Board and staff as we explored how to combine our two diverse organizations. We’ve made excellent progress in our integration planning work, but both agree that continuing with the merger through this extended length of time isn’t the right strategy for either credit union or our members. We firmly believe that taking a hard look at the prospect of a merger was a worthwhile, positive process for both credit unions, and we each came away with new best practices we’ve already begun implementing that will benefit our organizations in the future. NuVision has a strong strategic plan in place, and we’re off to a great 2012 start with positive net income to date. We look forward to putting all of our focus and energy on achieving our growth and member service initiatives in the year ahead. While both Boards came to the conclusion that now wasn’t the right time to pursue a merger, Kinecta and NuVision will have great success moving forward independently.”

Both credit unions believe the merger planning process was beneficial in identifying new practices to better serve their members, and they will continue to explore partnership opportunities to bring members added value. NuVision members will continue to have the benefit of utilizing Kinecta Financial & Insurance Services (KFIS) investment programs and Kinecta gift cards, which were introduced to the credit union last year. The credit unions will also continue to partner on joint community programs as well as other internal initiatives through 2012.

 

About Kinecta Federal Credit Union

Kinecta Federal Credit Union (kinecta.org) is one of the nation’s largest credit unions, with approximately $3.2 billion in assets; 23 member service centers; four retail mortgage centers; 44 Nix customer service centers and 12 Kinecta at Nix locations; and over 235,000 members nationwide. Headquartered in Manhattan Beach, Calif., Kinecta was founded to serve employees of Hughes Aircraft Company and now serves employees from Boeing Satellite Systems, Raytheon Systems Company, DirecTV and other select employer groups. Kinecta offers its members a full range of financial products through the Credit Union and its subsidiaries, Kinecta Financial & Insurance Services, Apollo Insurance Services, Inc., and Kinecta Alternative Financial Solutions, dba Nix Financial.

 

About NuVision Federal Credit Union

NuVision Federal Credit Union is a full-service financial institution with 14 branches located in Los Angeles and Orange Counties and Arizona and assets of approximately $1.3 billion. Headquartered in Huntington Beach, Calif., NuVision was founded in 1935 to serve employees of Douglas Aircraft Company. It continues to serve aerospace employees from Boeing, employees of Sempra Energy/The Gas Company, and employees of Tesoro with a total of more than 87,000 members primarily in Los Angeles and Orange Counties. For more information, visit www.nuvisionfederal.org.

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