The members of $100 million Reach Federal Credit Union, Menlo Park, Calif., on Wednesday voted in favor of a proposed merger into $942 million Xceed Financial Credit Union, El Segundo, Calif.
Reach FCU was founded in 1971 to serve employees of Raychem Corporation. Both credit unions are employer group-based credit unions, with membership open to employees of their select employer group partners nationwide.
The proposed merger is supported by the boards of directors and management at both CUs. It recently received approval from NCUA.
With Wednesday’s member vote, the merger is scheduled to take effect on March 31.
Teresa Freeborn, Xceed Financial’s president and CEO, said the current Reach FCU offices in Menlo Park, Calif., and Fuquay-Varina, N.C., (near Raleigh) and sales associates in Denver, Boca Raton, Fla., and Harrisburg, Pa., all 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.
“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 cannot get from any other financial institution,” Freeborn said in a statement. “It is also ideal since it will add strategically-located financial centers to our nationwide network, creating a credit union with more than $1 billion in assets and 70,000 members nationwide.
“We are 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,” Freeborn added.
Reach FCU reported it is “financially sound,” but said, “greatly-expanded” regulatory requirements and technological changes have been “particularly challenging” for credit unions of its size. Because of these pressures, its board of directors and management have been searching for a “strong and compatible” strategic partner capable of meeting the financial needs of members.
“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 Christine Petro, Reach FCU’s current CEO.
Petro will join Xceed Financial’s senior management team following the merger.
“Partnering with Xceed provides an opportunity for Reach Federal Credit Union to preserve our workplace legacy, while allowing our members to benefit from enhanced financial fitness initiatives and an even larger lineup of financial products and services,” Petro said.
Xceed Financial’s roots go back 85 years. It partners with more than 300 employers, serving 70,000 members via 13 financial centers in six states.
