Alaska USA Agrees to Buy TCF National Bank Branches in Arizona

The $8.3 billion Alaska USA Federal Credit Union in Anchorage said Wednesday it agreed to buy seven branches in the greater Phoenix, Ariz., market from the $45.6 billion TCF National Bank.

The deal’s financial terms were not disclosed.

Three branches are located in Mesa and four are in Chandler, Peoria, Tempe and Phoenix. According to the FDIC, these branches posted total deposits of $191 million as of June 2019.

The TCF Bank branches will add to the eight branches that Alaska USA currently operates in the Phoenix metro market, which will total 15 branches following the acquisition. The credit union also has a financial center, an operations center and a data center in Glendale and employs more than 300 people in the state.

As part of the definitive agreement, Alaska USA will extend employment offers to the 39 TCF Bank employees who work at the seven branches.

How many new members Alaska USA may pick up from this transaction is uncertain.

As for the number of customers TCF’s Arizona branches serve, “it would be speculative to provide a customer number at this time,” according to Amie Hoffner, vice president and director of corporate communications for TCF Financial Corp.

“Some TCF Bank customers live in Arizona during the winter and reside in Michigan, Minnesota, Illinois, South Dakota and Wisconsin during the summer,” she said. “We are working with those customers to determine if they want to retain their banking relationship with TCF Bank, solely bank with Alaska USA or to bank with both organizations.”

Currently, Alaska USA serves about 61,000 members in Arizona, accounting for about 9% of the credit union’s 677,180 members.

“The acquisition of TCF Bank’s seven branches and deposits in Arizona further demonstrates our commitment to providing expanded access to credit union services to individuals residing throughout Maricopa County,” Alaska USA President/CEO Geoff Lundfelt, said. “We look forward to serving these customers, who will have the opportunity to become members of our credit union and all that it has to offer.”

Maricopa County, which is part of the Phoenix-Mesa-Scottsdale metro area, led the nation with the largest population increase of any county in the nation in 2018, according Arizona Gov. Doug Ducey’s office.

What’s more, the Phoenix metro region led the nation for new jobs from May 2018 to May 2019, according to the U.S. Bureau of Labor Statistics. The Phoenix metro area added 66,500 total nonfarm jobs year-over-year, representing 3.2% job growth — the largest of any metro area in the U.S. with a population more than one million in the 2010 U.S. Census.

Michael S. Jones, executive vice president of regional banking at TCF Bank, said the sale of the Arizona branches will enable the bank to prioritize its efforts and resources on core markets.

“We see tremendous opportunity to centralize our strong brand and full-service product offerings throughout our markets in Michigan, Minnesota, Illinois, Colorado, South Dakota, Ohio and Wisconsin,” Jones said.

The acquisition transaction is expected to close in the second quarter.