The Tucson-based Pima Federal Credit Union (PFCU) is on the verge of a substantial growth spurt after gaining regulatory approval to purchase Phoenix-based Republic Bank of Arizona, according to an announcement made on Monday. This all-cash deal with RBAZ Bancorp., Republic Bank's parent company, propels PFCU towards becoming the sixth-largest credit union in Arizona, as reported by ABC15. The acquisition, first unveiled in May 2024, marks PFCU's strategic entry into Maricopa County. Completion of the transaction is anticipated by May 2.
PFCU's acquisition not only increases its asset portfolio to $1.5 billion but also introduces Republic Bank’s branches in Phoenix, Gilbert, and Scottsdale into PFCU's fold, bringing the total to 12 offices. "This acquisition represents a pivotal moment for our organization. By combining our strengths with those of Republic Bank, we are prepared to deliver even greater value to our members and communities,” PFCU President and CEO Eric Renaud told the Phoenix Business Journal. Republic Bank's customers and accounts will maintain continuity, being serviced by PFCU post-merger.
Upon finalization of the sale, RBAZ Bancorp will dissolve Republic Bank and cease trading on the over-the-counter market. RBAZ estimates that its shareholders will receive $22 per share upon the parent company's dissolution. "We are excited about the expansion of Pima Federal’s product offerings in the high-growth metro market of Phoenix and look forward to bringing these two strong companies together to deliver service excellence to our customers and communities across our market,” Alan Sparks, chairman of RBAZ and Republic Bank, said in a statement obtained by the Phoenix Business Journal.
The financial services landscape is poised for reshaping as the combined assets of PFCU and Republic Bank ascend to compete with top-tier credit unions in the Valley. Behind TruWest Credit Union, which holds $1.81 billion in assets, the newly expanded PFCU could alter market dynamics. Further details about the merger process underscore a commitment to a seamless transition for customers and employees alike, with a PFCU spokesperson indicating that Republic Bank of Arizona President and CEO Brian Ruisinger is expected to spearhead the Phoenix market post-merger, although "specific titles have not been announced yet," according to a statement provided to the Phoenix Business Journal. Under its current name, PFCU will continue to serve its membership, with a possible rebranding on the horizon to reflect the credit union’s growing and inclusive membership base.
For financial enthusiasts and members curious about PFCU's future strategies, free newsletters can be signed up for, and breaking news alerts are available through the Phoenix Business Journal's app. As this acquisition unfolds over the subsequent months, the focus will remain on the seamless integration of the institutions, their products, their services, and most importantly, their customer and employee experiences.
