RBAZ agrees to join forces with Tucson-based Pima Federal Credit Union
06/12/24
By Brian Ruisinger, President and Chief Executive Officer
By now, many of you have seen our press release or follow-on articles announcing that RBAZ Bancorp, Inc., the parent company of Republic Bank of Arizona, has agreed to partner with Pima Federal Credit Union out of Tucson in an all-cash sale. Allow me to share a bit of the background with you.
Our Board was presented with an offer in the first quarter of 2024 that, under its duty of care and loyalty, the Board felt was worthy of allowing a due diligence period by Pima. Upon completion, Pima reaffirmed its offer, and a Definitive Agreement was signed on May 16th. The process from this point will be a shareholder vote within 90 days and application for regulatory approvals. The total process is estimated to take 6-8 months to complete; setting up a closing in Q4 of this year.
The RBAZ Board looked at all aspects of this important decision to approve and send to shareholders for approval. RBAZ would be partnering with an AZ-based institution with no current presence in Phoenix or Maricopa County with an asset size of $1.2 billion. This would allow for an increased lending limit and bring a full array of consumer products to complement our commercial platform. These factors provide a compelling outcome for the future of our Bank and our stakeholders. Lastly, RBAZ shareholders will receive an estimated $22.00 per share if the transaction is approved. This is a great result for our shareholders, many of whom invested 17 years ago in RBAZ and have been incredibly supportive and patient over the years.
Pima FCU was founded in 1951 in Tucson and currently has 9 branches in the Tucson area, as well as Springerville, AZ. They have had a strategic plan for some time to enter into the Phoenix market, and this transaction accomplishes that goal. In the past several years, RBAZ has tripled its asset size to approximately $300 million, increased its earnings to $3 million annually and opened branches in Scottsdale and Gilbert. As a result of our recent performance, Pima saw RBAZ as an attractive partner to enter into the Phoenix market.
To all of our customers and stakeholders, expect to see an increased offering of banking products to allow us to deliver a one-stop shop to our customer base and members. More information to come as the process moves toward closing.