Arizona Federal Credit score Union expands, acquires Horizon Group Financial institution

Compiled by Matt Loeschman

PHOENIX — Arizona Federal Credit score Union introduced this week that it has entered right into a definitive settlement to accumulate Horizon Group Financial institution, an Arizona state-chartered financial institution headquartered in Lake Havasu Metropolis and wholly-owned subsidiary of Horizon Bancorp, Inc.

Horizon Group was based in 2002 and presently operates six branches in Fort Mohave, Kingman, Lake Havasu Metropolis, Mesa, Parker and Quartzsite. As of December 31, 2021, Horizon Group reported $539.5 million in whole property, $259.9 million in whole loans, $471.7 million in whole deposits and $43.4 million in whole fairness.

Arizona Federal, a $2.8 billion member-owned monetary cooperative, will profit by increasing into new market areas in western Arizona, additional diversifying its property and including expertise and experience. The acquisition may even assist the credit score union proceed investments in new services and assist fund the enlargement of companies to further new markets all through Arizona.

The 12,000 shoppers of Horizon Group will profit by getting access to Arizona Federal’s full suite of economic companies, together with shopper loans, insurance coverage, bank cards, investments, small enterprise companies, SBA and industrial loans and extra.

After efficiently buying and integrating the operations of Pinnacle Financial institution in 2019, Arizona Federal’s board of administrators endorsed acquisition alternatives as a part of the credit score union’s future development technique.

“We imagine that high quality development and diversification is important to continued success in our trade, and we intend to realize it each organically and thru mergers or acquisitions,” defined Ronald L. Westad, President and CEO of Arizona Federal.

That technique aligned nicely with Horizon Group as they explored future choices for his or her group.

“Arizona Federal has demonstrated their competency and dedication to group banking and they are going to be an awesome accomplice for our financial institution,” mentioned Ralph Tapscott, President and CEO of Horizon Group. “I’m excited for Horizon workers to hitch along with Arizona Federal workers to convey further monetary companies and assets to the communities we serve.”

The credit score union is dedicated to retaining and working every of the present Horizon Group branches.

“We’re excited to welcome Horizon Group Financial institution shoppers as new members,” Westad added. “We imagine this may create important long-term worth for all stakeholders.”

The transaction, which is topic to regulatory and shareholder approval, has been accepted by the Boards of Administrators of each establishments and is anticipated to be accomplished by the top of 2022. After the completion of the proposed transaction, the mixed group could have greater than $3.3 billion in property and serve over 155,000 members at 21 areas all through Arizona.

Deposits of Arizona Federal will proceed to be federally insured by the Nationwide Credit score Union Administration.

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