OneAZ Credit Union Plans to Acquire 1st Bank Yuma
If approved by regulators, the definitive agreement is expected to close by mid-2025.
The $3.4 billion OneAZ Credit Union in Phoenix said Thursday it plans to acquire the $623 million 1st Bank Yuma in an all-cash transaction pending regulatory approvals.
OneAZ, Arizona’s second largest financial cooperative by assets, did not disclose the financial terms of the definitive agreement that is expected to close by mid-2025.
In a prepared statement, OneAZ said the transaction would increase its assets to more than $4 billion and would expand its membership to more than 220,000. The credit union’s first bank acquisition would also add 1st Bank Yuma’s five branches in Yuma, San Luis and Nogales to OneAZ’s 20 branches, which would grow the credit union’s market reach in Southern Arizona.
According to OneAz’s prepared statement, it currently serves more than 200,000 members and 12,000 business owners.
Established in 2001, 1st Bank Yuma, which specializes in commercial lending, serves more than 16,000 accounts and employs 81 people.
At the end of the second quarter, the bank recorded $569 million in deposits, $287 million in net loans, $49.4 million in capital and $5.4 million in net income, according to its financial filings with the FDIC.
“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,” OneAZ Credit Union President/CEO Brandon Michaels said in a prepared statement. “1st Bank Yuma has a proud legacy of community investment in Southern Arizona, and we’re excited to build on their incredible work.”
Western Arizona Bancorp Inc. is the holding company of 1st Bank Yuma.
“This strategic transaction enables us to offer our customers a wider array of products and services,” Wayne Gale, president/CEO of Western Arizona Bancorporation & CEO of 1st Bank Yuma, said. “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.”
This is the 17th credit union-bank acquisition agreement that has been announced so far this year.
In addition, there is one proposed merger of the $147 million Arrha Credit Union in Springfield, Mass., into the $378 million Pittsfield Co-operative Bank. The merger application is under review by the NCUA.