Xceed Financial Credit Union Merger

December 30, 2020

Dear Member,
On behalf of the Board of Xceed Financial Federal Credit Union, the Merging Credit Union, I am pleased to share exciting news. We have received regulatory approval to pursue a merger with Kinecta Federal Credit Union, the Continuing Credit Union.

The Merging Credit Union and the Continuing Credit Union are well-capitalized organizations that share a common desire and commitment to provide exceptional service to members. Merging our two organizations will result in a merged credit union with approximately $6 billion in assets and approximately 300,000 members (compared to the Merging Credit Union’s $900 million in assets and approximately 50,000 members). Unlike bank mergers that are designed to make money for stockholders, this merger is for you, our member. This merger will result in a wider variety of competitive services and products and conveniences, including:

• Better pricing on products and services, such as higher-yield savings, money market, and certificate accounts, free checking that earns dividends and merchant discounts, and lower fees on various types of member transactions.
• Additional products, such as VA/FHA mortgages, one-time-close construction loans, emergency loans, solar loans, no-FICO student loans, private student loans, share-secured credit cards, and business credit cards.
• Enhanced convenience and account access through 19 additional public access locations, a full-service phone center to serve you, with longer hours of operation, Saturday service, continued access to over 5,600 credit union shared branch locations worldwide and 30,000 surcharge-free ATMs through the CO-OP Network, 65,000 ATMs through the Allpoint and CU 24 networks, and enhanced online and mobile banking and other electronic services.
• Lower operating costs resulting from the greater economies of scale, by allowing such costs to be spread over a wider membership base, which provides for even greater levels of member service, development of new and enhanced products and services, exploration of greater access to current/new technologies, continued community support programs, improved data security, enhanced liquidity for lending, and geographic diversity to navigate economic cycles.
• Leadership continuity given that the President/CEO of Merging Credit Union, Teresa Freeborn, will be the President of the Continuing Credit Union after the proposed merger, and will work closely with the Continuing Credit Union's CEO.
• Employee representation with the Continuing Credit Union employing Merging Credit Union’s employees immediately after the merger to avoid disruption of service at the levels Merging Credit Union members have come to expect.
• Continued Volunteer representation as two members of the Merging Credit Union’s Board of Directors will have the opportunity to serve on the Continuing Credit Union’s Board immediately after the merger, one of them serving on the Executive Committee. In addition, other Merging Credit Union Board members and Volunteers will have the opportunity to enter in the Continuing Credit Union’s Director Emeritus or Volunteer Associate programs.

Beyond these immediate benefits, this merger will combine two established entities that share similar values and commitment to their members, people, and culture. These two organizations share a core purpose of advancing and promoting the interests of our member owners to empower people to achieve brighter financial futures. With the combined vision, people, and capabilities of these two organizations, the members, communities, and employees will receive lasting benefits. The combined entity will leverage its leadership and innovation to offer members competitive products and services even better than they have today.

The Board of Directors of Xceed Financial and management support this merger. However, the final decision is up to you. Your vote to approve this merger is very important. The merger must have the approval of a majority of the members of the credit union voting on the proposal. There will be a special meeting virtually to consider the merger proposal on February 26, 2021 at 2:30 PM (PST). Website links for the meeting and for the voting at the meeting will be placed on the Xceed Financial Federal Credit Union website at www.xfcu.org prior to the meeting. If you cannot attend the meeting virtually, you can vote online at https://xfcu.cuballot.com or complete the ballot and mail it to:

To be counted, your ballot must reach us by the date and time announced for the meeting. Online votes may be cast during the meeting.

If you wish to submit comments about the merger to share with other members, you may submit them to the National Credit Union Administration (NCUA) at https://www.ncua.gov/support-services/credit-union-resources-expansion/resources/comments-proposed-credit-union-mergers or Office of Credit Union Resources and Expansion (CURE), NCUA, 1775 Duke Street, Alexandria, VA 22314. The NCUA will post comments received from members on its website, along with the member’s name, subject to the limitations and requirements of its regulations.

If you have any questions, feel free to contact us directly at 800-990-9959 or merger@xfcu.org.

We greatly appreciate your membership and thank you for your support.

Sincerely,

Roni Crichton
Board Chairman

Teresa Freeborn
President and CEO