The Bank Slate


Fifth credit union-bank deal of 2022 announced

Horizon Bancorp in Lake Havasu City, Ariz., has agreed to sell its bank to Arizona Federal Credit Union in Phoenix.

The $2.8 billion-asset Arizona Federal plans to buy the $540 million-asset Horizon Community Bank for $91.4 million in cash. Arizona Federal also agreed to cover a portion of Horizon Community’s expected federal income tax liability tied to the sale of its assets in the transaction. 

The acquisition is expected to close by the end of this year. 

Horizon Community has six branches, 12,000 clients, $260 million of loans and $472 million of deposits. 

Arizona Federal bought Pinnacle Bank in 2019. 

“We believe that quality growth and diversification is essential to continued success in our industry, and we intend to achieve it both organically and through mergers or acquisitions,” Ronald Westad, Arizona Federal’s president and CEO, said in a Thursday press release. 

Arizona Federal was advised by Honigman and McQueen Financial. Horizon Community was advised by Fenimore Kay Harrison and Hovde Group. 

The deal is the fifth transaction of 2022 where a credit union is buying a bank.

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