The nation's second largest mega-merger, that of the $4.7 billion California pairing of Kinecta FCU and NuVision FCU, moved a step closer this month with a formal application filed with the NCUA.
Update, March 1, 2012: Kinecta, NuVision Cancel Merger Plans
The planned consolidation slated for completion in early 2012, pending regulatory and member approval, would create an entity with 51 branches serving 300,000 members, according to Roger Ballard, the merged CU's its designated president/CEO. The proposed merger was first announced in June 2010.
Ballard, who has been serving the past year as head of both CUs, Kinecta in Manhattan Beach and NuVision in Huntington Beach, maintained the deliberate pace on due diligence was pursued to ensure "our boards get all of their questions answered and all of the elements are firmly in place to win final regulatory approval."
"Yes, we did file a comprehensive 700-page document with NCUA last Friday, which we believe answers the major regulatory questions which might arise," Ballard told Credit Union Times.
In a statement on the June 3 filing, Ballard said the boards had "approved moving to the next phase of the merger process" as they agreed that a combined organization using the Kinecta brand would bring "added collective benefits to 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 CU will have 112 ATMs.
Ballard previously was CEO of NuVision in Huntington Beach and later promoted as head of both CUs. During the year, he said, both CUs have conducted a dialogue with regulators, and as part of the process, a month ago hired Chicago-based West Monroe Partners to help guide Kinecta on integration.
Ballard said that depending on how fast the NCUA moves through the 700 pages of its application document, the voting by NuVision members could take place during the fourth quarter.
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