The Kinecta board of directors will expand from seven to nine seats, which will be filled by Xceed board members.

Keith Sultemeier

Sultemeier said Xceed's branch network, especially in Rochester, N.Y., will enhance access for Kinecta's east coast members and provide a platform for growth in that marketplace.

He also described the cultural fit of both credit unions as "excellent."

If the merger is approved, the combined credit union will operate 32 branches and two retail mortgage centers that will be staffed by more than 850 employees.

"Both of us are workplace credit unions with strong ties to our respective employer group partners and a strong community presence," Sultemeier said.

Kinecta serves 243,000 members and Xceed serves nearly 58,000 members.

Teresa Freeborn

"The economies of scale we'll achieve with this merger will deliver exceptional value to all of our members from enhanced products and services, to a larger branch network, very robust digital banking, full-service Saturday banking, and more," Freeborn said.

If the merger is approved by Xceed Financial members and regulators, it will establish Kinecta as the largest financial cooperative in the South Bay of Los Angeles County, the largest county in the nation by population.

This is the second consolidation agreement between large-asset credit unions in 2020.

In May, the $1.5 billion TruStone Financial Federal Credit Union and the $1.4 billion Firefly Federal Credit Union announced plans to merge by 2021, which will create Minnesota's second largest financial cooperative if approved by members and regulators.

On June 1, the $867 million Andigo Credit Union in Schaumburg, Ill., officially merged with the $1.4 billion Consumers Credit Union in Gurnee, Ill., creating the fifth largest cooperative in the Land of Lincoln. Andigo CU is operating as a division of Consumers CU. That consolidation deal was announced in Aug. 2019.