Bancorp 34 in Scottsdale, Ariz., has agreed to buy CBOA Financial in Tucson, Ariz.
The $576 million-asset Bancorp 34 said in a press release that it will pay $28 million in stock for the parent of the $370.3 million-asset Commerce Bank of Arizona. The deal is expected to close in the fourth quarter.
“This is an exciting combination that will accelerate both companies’ strategic goals by enhancing our ability to serve our customers,” Jim Crotty, Bancorp 34’s CEO, said in the release.
“Higher lending limits will allow us to tap new opportunities and grow stronger relationships with our existing customers, while increased scale will allow us to more efficiently meet the needs of all our stakeholders,” Crotty added.
Bancorp 34 said it expects the deal to be 50% accretive to its earnings per share. It should take about three years to earn back an estimated 14% dilution to Bancorp 34’s tangible book value.
The eight-member board will include five directors from Bancorp 34 and three from CBOA. Chris Webster, CBOA’s CEO, will become president and join the board.
MJC Partners and Nelson Mullins Riley & Scarborough advised Bancorp 34. Piper Sandler and Otteson Shapiro advised CBOA.