Huntington Beach-based NuVision Federal Credit Union and Kinecta Federal Credit Union in Manhattan Beach have called off plans to merge.
The merger agreement was first announced in June 2010, and the deal was expected to close in the second quarter of this year.
The credit unions said the current economic environment would require two more years for the merger process to wrap up, causing them to reach a “conclusion that continuing the merger process for this amount of time would be too disruptive to their business and members,” according to a joint statement.
The credit unions expected to combine for $4.7 billion in assets, which would have made the new organization one of the largest in the U.S.
NuVision finished last year with net income of $2.6 million. It had assets of $1.2 billion at year-end.
Kinecta saw a $30.6 million loss. Its assets totaled $3.1 billion.
NuVision’s Chief Executive Roger Ballard also has been leading Kinecta since June 2010. He will serve the top job at both institutions until Kinecta’s board finds a new chief executive.