PHOENIX, Dec. 1, 2019 /PRNewswire-PRWeb/ -- Arizona Federal Credit Union finalized its purchase and acquisition of Pinnacle Bank, a community bank based in Scottsdale with $259 million in assets and 2,200 clients. The acquisition, which was first announced in June 2019, was finalized on November 30, 2019, following shareholder and regulatory approval. This is the first time an Arizona-based credit union has acquired an Arizona-based bank, and will expand Arizona Federal's product offerings for the local Phoenix community and small businesses.
As part of the historic acquisition, the combined institution will retain the Arizona Federal Credit Union name and charter, and deposits will be federally insured by the National Credit Union Administration up to $250,000. In addition, all former Pinnacle Bank employees will become employees of the credit union.
"Now that the acquisition is legally complete, our teams will begin the next phase of work involving the consolidation and conversion of systems and services," said Ronald L. Westad, president and CEO of Arizona Federal. "We're truly excited for our members and Pinnacle clients and look forward to providing additional products and services once our systems are converted later next year."
Arizona Federal currently has 12 branches across the metro-Phoenix area. With the completion of the acquisition, the four former Pinnacle Bank branches will become Arizona Federal Business and Home Loan Centers, offering home loan services, small business services, SBA financing options and commercial lending services.
"We're excited to join forces with Arizona Federal," said Michael J. Thorell, former Pinnacle Bank chairman and CEO, who has joined the credit union as president of commercial and residential lending. "This transaction is a win-win-win for clients, shareholders and employees. While Arizona Federal is well known for its outstanding delivery of consumer financial services, the team from Pinnacle will provide expertise in the areas of small business services and residential loans, further enhancing the credit union's portfolio of services."
Conversion of systems is estimated to occur in the second half of 2020. Until then, Arizona Federal members and Pinnacle Bank clients should experience little to no impact – account numbers, credit/debit card numbers and online/mobile banking login credentials will not change at this time.
Arizona Federal was advised by Howard & Howard, PLLC, as legal counsel, and McQueen Financial, as financial advisor. Pinnacle Bank was advised by Hunton Williams, as legal counsel, and Raymond James and Associates as financial advisor.
For more information, visit ArizonaFederal.org/announcement.
About Arizona Federal Credit Union
Arizona Federal is a $1.9 billion not-for-profit, local cooperative providing financial services and expertise to more than 130,000 member/owners. Founded in 1936, the credit union empowers members to take hold of their financial future through the delivery of leading-edge self-service tools and mobile apps, competitive rates on loans and deposits, robust home loan solutions, small business services and commercial loans, identity protection services, and annual member payouts when the cooperative does well. Arizona Federal has 16 locations across the Phoenix metropolitan area. Deposits are federally insured by the National Credit Union Administration. For more information: ArizonaFederal.org
SOURCE Arizona Federal Credit Union
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