Merger Canceled But Kinecta-NuVision CEO Optimistic
As two big California credit unions, the $3.1 billion Kinecta FCU and the $1.1 billion NuVision, formally called off their planned merger, Roger Ballard, the CEO of both, gave an optimistic forecast for their financial future.
In a Credit Union Times interview, Ballard, who is in the rare position of holding down the top job at two large credit unions, said both Kinecta, which lost $30.6 million last year, and NuVision are already doing well in 2012.
And he vigorously discounted any negative blowback over cancellation of the merger.
“I pay no attention to any of those comments since anyone who knows the real details behind these two organizations, as being well managed and with great depth, will understand the facts,” maintained Ballard.
“Kinecta earned $3 million in January and NuVision $1 million,” he said in citing the improved balance sheets.
The two credit unions are about a 35-mile freeway drive apart; Kinecta in Manhattan Beach and NuVision in Huntington Beach.
Under the new break-up scenario as detailed Thursday, Ballard will leave Kinecta, which he took over two years ago, once an outside search team, Korn Ferry International, finds a successor.
That process has already started quickly and his Kinecta replacement will be picked “very soon, most certainly by midyear,” Ballard said.
The Kinecta/NuVision CEO stressed again that the ending of the merger was due to the lengthy time already spent—two years—plus perhaps another two years before the consolidation would be completed.
Ballard said the new regulatory climate and California’s economy complicated merger planning for months, leading to the decision to simply end the negotiations before members were asked to vote next year.
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.