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.
Ronald L. Westad