Kinecta, NuVision Plan Merger
MANHATTAN BEACH, Calif.-After 12 months of due diligence, Kinecta FCU and NuVision FCU filed a formal merger application with NCUA to form a $4.7-billion CU.
The merged institution would serve 300,000 members throughout Los Angeles and Orange counties with 51 branches and 112 ATMs, and would retain the Kinecta FCU name. NCUA must give regulatory approval, and the final step will be a vote by members of NuVision.
Both CUs were chartered in Southern California to serve aerospace employees: $1.2-billion NuVision was founded in 1935 as Douglas Aircraft Company FCU; $3.5-billion Kinecta was founded in 1940 as Hughes Aircraft Employees FCU. Kinecta reported $899,267 in income; NuVision posted $2.8-million in net income (both excluding assessments).
Roger Ballard, who was CEO of NuVision and on June 1, 2010, became CEO of Kinecta, said the extensive process, "really confirmed what a great fit Kinecta and NuVision are... There was a lot of work to do. We tried to anticipate as many questions as we could before filing the merger packet with NCUA."
Ballard said the similarities of charter and field of membership the two CUs share makes the merger a good fit. "Both have a long history with a heritage of serving the aerospace industry," he said. The two CUs will be working with regulators as part of the formal merger process. "We are optimistic the merger will be approved, but we respect the regulatory process and the member vote," Ballard said.
"We're excited to take the next step toward bringing two successful organizations together to deliver better service and convenience to our members, sponsor companies, employees and communities," Darryl Johnson, Kinecta board chair, said in a statement.
Ballard said both credit unions are "excited to move the process forward," adding, "This will help us do even more for the various community groups we partner with. We are excited about the benefits we can create and the good we can do going forward."
Kinecta serves employees from Boeing Satellite Systems, Raytheon Systems Company, DirecTV and other SEGs and also owns Kinecta Financial & Insurance Services, Apollo Agencies, and Kinecta Alternative Financial Solutions and Nix Check Cashing.
NuVision, headquartered in Huntington Beach, Calif., serves aerospace employees (primarily from Boeing), Sempra Energy employees and community members in Southern California.