After a year of due diligence, a second mega-merger of West Coast credit unions, the $4.7 billion consolidation of Kinecta FCU and NuVision FCU, has moved a major step closer with a formal application filed with the NCUA.
Update, March 1, 2012: Kinecta, NuVision Cancel Merger Plans
The planned consolidation due for completion “next January or in the first months of 2012” pending regulatory and member approval, would create an entity with 51 branches, 112 ATMs and 300,000 members, said Roger Ballard, who has been serving as president/CEO of both credit unions for the past year.
“Yes, we did file a comprehensive 700-page document with NCUA last Friday which we believe answers any of the major regulatory questions on the structure of this merger which might arise,” Ballard told Credit Union Times on Monday.
In a formal statement, Kinecta of Manhattan Beach and NuVision of Huntington Beach, said the boards of the respective CUs had “approved moving to the next phase of the merger process after extensive due diligence confirmed the added benefits a combined organization will bring to their collective members, sponsor companies and communities.”
“The two healthy, well-capitalized credit unions are a natural fit as merger partners, with shared Southern California roots in the aerospace industry and complementary branch networks, product/service offerings and membership bases,” said Ballard.
The original announcement of the merger was made in June 2010 and followed on the heels of another mega merger now complete of the $4.9 billion First Tech FCU and Addison Avenue, now operating as First Tech FCU out of Portland, Ore.
“Submitting our formal merger application moves us closer to creating a stronger, more competitive credit union that will bring our members greater value than either of us can as independent organizations,” said Robert Geraci, board chairman at NuVision. “The due diligence process reinforced our belief in the benefits of this merger, with even more synergies than expected between our goals and organizations.”