EL SEGUNDO, Calif. – Xceed Financial FCU announced this morning it is acquiring troubled Safeway Los Angeles FCU, a one-time $77 million credit union that has reported losses for five straight years.
The deal for the single-branch credit union that serves Safeway supermarket employees was approved yesterday by members and has been approved by NCUA. The Safeway credit union reported a $204,000 loss for the first three quarters of the year and assets of $55 million. The credit union has reported losses totaling more than $6 million since 2008.
Teresa Freeborn, president of the $750 million Xceed Financial, the one-time Xerox employees credit union, said the current Safeway branch in Norwalk will become an Xceed Financial Center and will continue to serve members at that location following the merger, which is expected to be completed by year-end.
“By combining forces, we will gain efficiencies that better position us to serve all of our members and meet the needs of employer groups,” said David Holmes, president of the smaller credit union, who will join Xceed Financial’s management team following the merger. “Partnering with Xceed provides an opportunity for Safeway LAFCU to preserve its SEG/workplace legacy while allowing our members to benefit from a much larger, comprehensive line-up of financial products and services.”