Pima Federal Credit Union (Pima) has signed an agreement with RBAZ Bancorp, the holding company of Republic Bank of Arizona to purchase the bank in an all-cash transaction.
Under the terms of the agreement, the US-based financial cooperative will acquire all the assets and assume all the liabilities of the Arizona-based community business bank.
RBAZ shareholders are expected to receive around $22 per share upon final liquidation, on a fully diluted basis, subject to adjustments.
The agreement has been unanimously approved by the Boards of Directors of both parties.
The transaction is expected to be completed in the second half of this year, subject to approval by RBAZ’s shareholders, regulators, and other customary closing conditions.
Upon closing, RBAZ and Republic Bank will be shut down and dissolved, with Pima retaining and servicing all customers and accounts of RBAZ.
Republic Bank of Arizona CEO Brian Ruisinger will continue with Pima as leader of the Phoenix market.
Pima president and CEO Eric Renaud said: “We are happy to announce our entrance into Phoenix and Maricopa County through this partnership with Republic Bank.
“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.”
Established in 1951 in Tucson, Arizona, Pima Federal Credit Union operates from nine locations to provide a competitive suite of personal and business banking products and services.
The financial cooperative had $1.2bn in total assets, $849m in gross loans, and $1bn in total shares and deposits, as of 31 March 2024.
Republic Bank was formed in 2007 as a community bank and currently operates three full-service branches in the Phoenix, Arizona metropolitan area.
The bank had $279m in total assets, $200m in gross loans, and $250m in total deposits, as of 31 March 2024.
The acquisition will add Republic Bank’s Phoenix, Gilbert, and Scottsdale branches to Pima’s existing branch network in the Tucson metropolitan area and Springerville.
Olsen Palmer served as financial advisor and Fenimore Kay Harrison as legal advisor to RBAZ on the transaction.
Donnelly Penman & Partners served as financial advisor and Luse Gorman, PC acted as its legal advisor to Pima.
RBAZ and Republic Bank president and CEO Brian Ruisinger said: “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.”
