TUCSON, Ariz.—The $1.2-billion Pima Federal Credit Union has agreed to purchase the $272-million Republic Bank of Arizona, based in Phoenix, the organizations reported in a joint release.
Bank shareholders are expected to receive approximately $22 per fully diluted share upon final liquidation, subject to various adjustments, the release stated. The total purchase price was not disclosed.
Following the completion of the purchase and assumption transaction, all customers and accounts of RBAZ will be retained and serviced by Pima, the organizations said.
The acquisition will add Republic Bank’s branches in Phoenix, Gilbert, and Scottsdale to Pima’s existing branch network in the Tucson metropolitan area and Springerville with Pima expanding to 12 total locations and more than $1.5 billion in total assets.
“We are happy to announce our entrance into Phoenix and Maricopa County through this partnership with Republic Bank,” Eric Renaud, president and CEO of Pima FCU said in a statement. “This strategic move is not only rooted in our shared values but also aligns with our growth objectives, presenting an exceptional opportunity to enhance our service to the local community. We are excited to bring our commitment to excellence and dedication to the businesses and people of Maricopa County. Together, leveraging the strengths and talents of both teams, we look forward to creating a positive impact in Maricopa County while continuing to offer an unmatched banking experience in our existing markets.”
Added Republic Bank President and CEO Brian Ruisinger in a statement, “We are excited to announce our decision to join forces with Pima. We share similar values, and our partnership with another Arizona-based institution extends our legacy of promoting Shop Local Dine Local Bank Local. 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 shareholders, dedicated employees, and the communities we proudly serve.”
Profitable Bank
Pima FCU reported $15.8 million in net incom during 2023, and $1.3 million through March, according to call report data. Capital stands at 9.91%. Republic Bank made $2.9 million in 2023.
The purchase and assumption agreement has been unanimously approved by the boards of both organizations. The combination is subject to approval of the bank’s shareholders, applicable regulators, and other customary closing conditions, the organizations said in their statement..
The transaction is expected to be completed during the second half of 2024. After transaction close, Ruisinger is anticipated to remain with Pima as leader of the Phoenix market, the release states.
Olsen Palmer LLC acted as financial advisor to the bank and Fenimore Kay Harrison LLP served as its legal advisor in the transaction. Donnelly Penman & Partners, Inc. acted as financial advisor to Pima and Luse Gorman, PC acted as its legal advisor.
"The deals continue to be announced and there are many more to come," noted the pioneer of credit union purchases of banks, Michael Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP. "The marketplace is appropriately active. Hang on tight and keep your eyes open."
Bell has been part of more than 50 whole-bank agreements, plus additional bank branch purchases.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- · The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Penn.
- · The $4.7-billion TDECU in Lake Jackson, Texas, has agreed to buy the $1.2-billion Sabine State Bank and Trust, based in Many, La.
- · The $1.9-billion Harborstone Credit Union in Lakewood, Wash., has announced plans to buy Mt. Vernon, Wash.-based SaviBank.
- · The $2-billion Empeople Credit Union in Moline, Ill., acquired the $182-million TSB Bank in Lomira, Wis.
- · Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- · In Tacoma, Wash., the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
- · The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with to purchase the $255-million NorthSide Community Bank.
- · The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
- · The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash.
- · The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- · The $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank.
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