Arizona Financial Credit Union announced today that it has completed its planned purchase of assets and assumption of liabilities of Horizon Community Bank, an Arizona state-chartered bank headquartered in Lake Havasu City, Arizona, and wholly-owned subsidiary of Horizon Bancorp, Inc.
This transaction allows Arizona Financial to expand into western Arizona, further diversify its assets, and add talent and expertise to its workforce. It will also help the credit union continue investments in new products and services and help fund the expansion of services to additional new markets throughout Arizona.
The 12,000 clients of Horizon Community benefit by gaining access to the credit union’s full suite of banking services, including consumer loans, insurance, credit cards, investments, small business services, SBA and commercial loans, and more.
After successfully integrating the operations of Pinnacle Bank in 2019, Arizona Financial’s board of directors endorsed acquisition opportunities as a component of the credit union’s future growth strategy. “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,” explained Ronald L. Westad, President and CEO of Arizona Financial.
That strategy aligned well with Horizon Community as they explored future options for their organization. “Arizona Financial has demonstrated their competency and commitment to community banking and they have become a great partner throughout this process,” said Ralph Tapscott, former President and CEO of Horizon Community who will now serve as the Western Arizona Market President for Arizona Financial. “I’m excited for the future of our combined organizations and the additional financial services and resources we’ll bring to the communities of western Arizona,” he added.
Horizon Community was founded in 2002 and operated six branches in Fort Mohave, Kingman, Lake Havasu City, Mesa, Parker and Quartzsite, all of which will remain open and have been converted to Arizona Financial locations.
In parallel with the purchase and assumption of Horizon’s assets and liabilities, the credit union converted from a federally chartered to a state-chartered credit union. This allowed the credit union to expand its field of membership beyond Maricopa and Pinal counties to now include Coconino, Gila, La Paz, Mohave, Navajo, Pima, Yavapai, and Yuma counties. Any individual or small business who lives, works, worships, attends school, or regularly conducts business in these counties is eligible for membership with Arizona Financial. The final step of the charter change, which occurred on July 1, was the credit union rebranding itself as Arizona Financial Credit Union from its prior name Arizona Federal.
The combined organization, which will operate under the Arizona Financial banner, has more than $3.3 billion in assets and now serves more than 155,000 members at 20 locations throughout Arizona. Deposits of Arizona Financial continue to be federally insured by the National Credit Union Administration.
Arizona Financial was advised by Honigman LLP, as legal counsel, and McQueen Financial, as financial advisor. Horizon Community was advised by Fenimore Kay Harrison LLP, as legal counsel, and Hovde Group, LLC, as financial advisor.