Announcement

Dear Members:

It is with great excitement that I announce to you our intended acquisition of Pinnacle Bank, a local community bank serving approximately 2,600 clients at four branch locations in Tempe, Scottsdale and Phoenix. While it is not unprecedented for a credit union to acquire a bank, this will be the first transaction of its kind here in Arizona.

Through this transaction you, as a member-owner, will gain access to additional mortgage services (e.g., construction to permanent financing, jumbo mortgages), expanded small business services, SBA financing options and commercial lending services. Pinnacle Bank clients, who will become the newest members of Arizona Federal, will gain access to expanded consumer financial services, including loans, insurance, credit cards, investment services and more.

I’m pleased to share with you that no jobs will be lost as a result of the acquisition. Approximately 60 Pinnacle Bank employees will join together with Arizona Federal employees, sharing a commitment to deliver financial services and expertise to families and small businesses throughout the communities we serve. We will also maintain the four Pinnacle Bank locations, which will expand our network to 16 service locations throughout the Metro Phoenix area.

The transaction, which is subject to regulatory and Pinnacle Bank shareholder approval, is expected to be completed in the fourth quarter of 2019. Once complete, our combined organization will have more than $1.8 billion in assets and serve over 127,000 members throughout the Valley of the Sun.

This is just the beginning of the process for us – we have a lot of work to do to ensure this proceeds as smoothly as possible for everyone involved. But we know you may have some questions, so we have compiled answers to some FAQs we anticipate our members may have. We’ll post more information as we continue this journey, and we’re also planning some town-hall style meetings for later this year, where current and future members can meet our leadership team, ask questions and provide feedback.

Thank you for your membership, and I look forward to keeping you updated on our progress in the months to come.

Sincerely,



Ronald L. Westad
President/CEO

Frequently Asked Questions

The acquisition is advantageous to Arizona Federal for several reasons, including:

  • We can expand the services available to you, specifically in the area of additional mortgage services (e.g., construction to permanent financing, jumbo mortgages), expanded small business services, SBA financing options and commercial lending services.
  • We can add to the financial expertise we provide, with the addition of approximately 60 experienced professionals from Pinnacle Bank.
  • The acquisition includes new locations in some areas that we don’t currently have a facility to serve you.
  • The potential revenue to be generated from new lines of business creates additional value for our membership.
  • The diversification of the assets acquired adds to the financial soundness of our credit union.

Your Arizona Federal account number will not change. Once the acquisition is completed (projected for fourth quarter, 2019), you will have access to more services to serve your future needs.

Specifically, you’ll gain access to additional mortgage services (e.g., construction to permanent financing, jumbo mortgages), expanded small business services, SBA financing options and commercial lending services.

No, Arizona Federal remains committed to our foundation as a federally-chartered credit union. All assets and liabilities of Pinnacle Bank will be assumed by the credit union.
We are pleased to announce that no jobs will be lost as a result of the acquisition. Pinnacle Bank employees will join together with Arizona Federal employees, sharing a commitment to deliver financial services and expertise to families and small businesses throughout the communities we serve.

Through our members’ use of our services, we’ve built capital reserves in excess of twice the level our regulators consider to be “well capitalized.” We’re leveraging that financial strength to make this strategic investment.

After the acquisition, we’ll still maintain capital reserves well in excess of the “well capitalized” levels. During our due diligence process we partnered with firms who specialize in financial modeling and had them perform and validate our projections. Even the “worst case” projections modeled, while unlikely to result, do not threaten the safety and soundness of your credit union.

The transaction, which is subject to regulatory and shareholder approval, is expected to be completed in the fourth quarter of 2019. New services will be available at former Pinnacle Bank locations once the transaction is complete. We anticipate new services to be further integrated into our online/mobile channels and existing Arizona Federal locations beginning in 2020.
Absolutely. For more information about the services available at Pinnacle Bank, please visit PinnacleBankAz.com. Once the acquisition is complete, any services you have with Pinnacle Bank will transition to Arizona Federal.