HUNTINGTON BEACH, Calif. – NuVision FCU announced last night it has agreed to combine with the much larger Kinecta FCU to create a $4.7 billion credit union, in one of the biggest credit union mergers ever.
Under the deal, NuVision CEO Roger Ballard will run the new credit union, which would bear the Kinecta name and have 40 branches throughout Los Angeles and Orange counties. Ballard will assume the Kinecta CEO role immediately, while continuing as NuVision’s CEO through the merger due diligence and approval process.
Stepping aside will be Steve Lumm, the one-time chief of Hewlett Packard FCU (now Addison Avenue FCU) who was brought in in January to work out the troubles at the one-time $4.5 billion credit union, which wracked up losses of $126 million in 2008 and 2009, and of $2.7 million for the first quarter of 2010. Kinecta had $3.5 billion in assets at the end of the first quarter and operates 24 branches, as well as 49 branches of Nix Check Cashing, which it acquired in 2005.
NuVision has $1.2 billion in assets and reported a loss of $6.2 million for 2009, and a loss of $222,000 for the first quarter of 2010.
The combination will rival the pending merger of First Tech CU and Addison Avenue FCU creating a $5.6 billion credit union, as the biggest in credit union history.
“NuVision has been actively exploring new strategies, including mergers, to bring our members greater value and convenience over the long term,” said Robert Geraci, chairman of the NuVision board. “When we realized the Kinecta Board was conducting a CEO search, we believed the time might be right to discuss a merger opportunity that would make sense for both organizations.”
Both credit unions were founded in southern California to serve aerospace employees. NuVision was founded in 1935 as the Douglas Aircraft Company FCU; while Kinecta was founded in 1940 as the Hughes Aircraft Employees FCU. Today, both credit unions continue to serve aerospace employees and their local communities, with strong balance sheets, full-service product offerings and established member bases. NuVision also serves employees of The Gas Company/Sempra Energy.
A veteran of the credit union industry with more than two decades of experience, Ballard has been CEO of NuVision since 2004. During his tenure at NuVision, Ballard has orchestrated two successful mergers, doubled the credit union’s assets and established successful mortgage lending and business service/loan programs – while achieving the highest levels of member satisfaction in the credit union’s history. Beginning his career with Golden 1 Credit Union, Ballard has been CEO of three different credit unions over the past 17 years.
