OneAZ Credit Union to acquire 1st Bank Yuma
Phoenix-based OneAZ Credit Union has agreed to acquire 1st Bank Yuma in a cash deal that would make the combined entity the second-largest credit union in the Valley.
OneAZ Credit Union announced Thursday it entered into a definitive agreement with Western Arizona Bancorp., the parent company of 1st Bank Yuma, to buy the assets and assume the liabilities of the financial services institution.
If approved, OneAZ’s acquisition of 1st Bank Yuma will increase the credit union’s assets to more than $4 billion and add 1st Bank’s five branches in Yuma, San Luis and Nogales, expanding its locations to 25, according to the 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,” Brandon Michaels, president and CEO of OneAZ Credit Union, said in a statement. “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.”
This transaction was unanimously approved by the OneAZ and 1st Bank Yuma boards on Oct. 1, following extensive due diligence and collaboration among the financial institutions to ensure the partnership was the right move, Michaels told the Business Journal.
Financial terms of the transaction were not disclosed.
Regulatory approval for the transaction is expected to occur by mid-2025 and the two organizations will be fully integrated in 2026, according to OneAZ Credit Union.
“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,” Wayne Gale, president and CEO of Western Arizona Bancorporation and 1st Bank Yuma, said in a statement.
After the transaction closes, Gale will serve as an executive consultant for OneAZ Credit Union.
“Wayne’s wisdom about these new markets for OneAZ will be invaluable as we strategically grow to serve more Arizonans,” Michaels said.
Credit union-bank mergers more prevalent nationwide
OneAZ Credit Union has more than $3.4 billion in assets under management and serves 220,000 members.
A team of business professionals and bankers founded 1st Bank Yuma in 2001. The bank has more than $600 million in assets under management and serves 20,000 accounts across its five branches in southern Arizona.
The combined assets of OneAZ Credit Union and 1st Bank Yuma position it to move up to No. 2 among the Valley’s largest credit unions, behind Desert Financial Credit Union, which holds $8.8 billion in assets.
OneAZ Credit Union is ranked No. 3 among the Valley’s largest credit unions, measured by local deposits, according to Business Journal research.
OneAZ Credit Union’s potential acquisition of 1st Bank Yuma comes at a time when credit unions are snapping up banks at a recordbreaking pace.
As of September, 16 credit union and bank acquisitions were announced this year, tying a previous record of 16 acquisitions set in 2022, according to Independent Community Bankers of America, a trade association that represents small and community banks in the U.S.
For some credit unions, banks present an opportunity to expand into new markets and gain more brick-and-mortar locations, and additional products and services.
Credit unions also have incentive to acquire banks for commercial banking and treasury management expertise without building a new division from scratch within, according to the ICBA.
In 2022, Arizona Federal Credit Union bought Horizon Community Bank. It previously purchased Scottsdale-based Pinnacle Bank in 2019, which marked the first time a credit union bought a bank in state history.
And in May of this year, Tucson-based Pima Federal Credit Union agreed to buy assets of Phoenix-based RBAZ Bancorp. (OTCPK: RBAZ), the parent company of Republic Bank, paving the way for its entry into the Maricopa County market. The all-cash deal, which is expected to close later this year, would make the combined entity the sixth-largest credit union in the state, the Business Journal previously reported.