PHOENIX—The $3.3-billion OneAZ Credit Union has agreed to buy $624-million 1st Bank Yuma, based in Yuma, Ariz., marking the 17th such deal of 2024, a one-year record for these agreements.
The $9.3-billion ESL Federal Credit Union’s purchase of $401-million Generations Bank, based in Seneca, N.Y., last month marked the 16th such deal of 2024, tying the previous record set in 2022.
According to OneAZ, the credit union will acquire substantially all assets and liabilities of the bank, in an all-cash transaction, which has been approved by the boards of directors of OneAZ and 1st Bank Yuma. Final regulatory approval is expected by mid-2025. The two organizations are expected to be fully integrated in 2026, OneAZ stated. Terms of the agreement were not disclosed.
Five More Offices
The deal will add 1st Bank Yuma’s five branches in Yuma, San Luis, and Nogales to OneAZ’s network of 20 branches.
“With the acquisition of 1st Bank Yuma, OneAZ is taking a bold step toward fulfilling our commitment to driving positive change across Arizona,” said Brandon Michaels, president and CEO of OneAZ Credit Union. “This partnership expands our reach into the rapidly growing markets of Yuma and Santa Cruz Counties, where we know we can have a positive impact on the local economy to ignite even more growth and prosperity for those communities. 1st Bank Yuma has a proud legacy of community investment in Southern Arizona, and we’re excited to build on their incredible work. Together, we’ll drive economic growth and opportunity, ensuring that everyone in Southern Arizona has the chance to thrive and dream.”
“We are excited to announce our decision to join forces with OneAZ and create a larger financial institution with greater resources,” said Wayne Gale, president and CEO of Western Arizona Bancorp, Inc. and CEO of 1st Bank Yuma. “We share similar values, and our partnership with another Arizona-based financial institution extends our legacy of meeting the needs of our customers, while being a strong partner with the communities in Yuma and Santa Cruz counties. This strategic transaction enables us to offer our customers a wider array of products and services. We believe that this partnership is a good fit not only for our customers but also for our dedicated employees, and the communities we proudly serve.”
Performance Data
1st Bank Yuma made $5.4 million in net income through June of this year and $9.5 million through 2023, according to FDIC data. OneAZ made $15 million in net income through June of '24 and $24.9 million last year, according to Call Report data.
Active Market
The pioneer of CU purchases of banks noted the southwest has been an active market for these agreements.
“And it’s nice to see that continue,” said Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP. “Shareholders continue to exercise their freedom to choose their buyer. It’s lovely—America at its best.”
Bell has been part of more than 60 whole-bank agreements, plus additional bank branch purchases.
McQueen Financial Advisors served as financial advisor and Luse Gorman, PC served as legal counsel to OneAZ Credit Union. D.A. Davidson & Co. served as financial advisor and Spierer Woodward Corbalis Goldberg served as legal counsel to Western Arizona Bancorp, Inc., the CU said.