Read more about our upcoming acquisition by Arizona Federal Credit Union.
Dear Clients:
It is with great excitement that I am making the announcement of Horizon Community Bank’s strategic merger with Arizona Federal Credit Union – only the second of its kind in Arizona history. The transaction will be structured with Arizona Federal purchasing substantially all of the assets and assuming substantially all of the liabilities of Horizon Community Bank.
Founded in 1936, Arizona Federal is a federally insured $2.8 billion credit union with 145,000 members. It’s headquartered in Phoenix, Arizona, and is chartered and regulated under the authority of the National Credit Union Administration (NCUA).
We were introduced to Arizona Federal late last year as we were exploring options to increase value for our clients, employees and shareholders. We quickly learned that while we’ve been expanding further into Maricopa County, Arizona Federal has been planning an expansion outside of Maricopa County, with a vision to serve all of Arizona. That strategic alignment, along with Arizona Federal’s resources and demonstrated competency with mergers and acquisitions (they completed the first credit union acquisition of a community bank in Arizona in 2019) made partnering with them the clear choice for all our stakeholders.
Horizon employees will join with Arizona Federal employees, sharing a commitment to deliver financial services and expertise to families and small businesses throughout all the communities we serve. Our branch locations will be maintained, and incorporated with Arizona Federal’s, resulting in a network of 21 service locations throughout Arizona. Together we’ll form one of the largest Arizona-based financial institutions, exclusively focused on serving our home state.
Through this transaction you’ll gain access to expanded consumer and commercial financial services, including loans, insurance, credit cards, investment services and more from Arizona Federal. You’ll also benefit by enhanced technology to complement the personal service you’ve come to expect – they refer to this as “high-tech and high-touch.” I encourage you to visit their website at ArizonaFederal.org to get an idea of what’s coming.
The transaction, which is subject to regulatory and shareholder approval, is expected to be completed by the end of 2022. Until then, it will be largely business as usual and we will continue to operate as an independent community bank. Once the transaction is complete, our combined organization will have more than $3.3 billion in assets and serve over 155,000 members throughout Arizona.
This is just the beginning of the process for us – we have a lot of work to do to ensure the transaction proceeds as smoothly as possible for everyone involved. We know you may have some questions, so we have compiled answers to some FAQs we anticipate you may have. We’ll post more information as we continue this journey.
Thank you for putting your trust in Horizon Community Bank, and I look forward to keeping you updated on our progress in the months to come.
Sincerely,
Ralph Tapscott
President & CEO
Horizon Community Bank
FAQ
Why was the decision made to sell?
Late last year we began exploring options to increase value for our clients, employees and shareholders. After weighing multiple options, we determined that joining Arizona Federal Credit Union through an acquisition brought the most value to everyone involved and ensured that our operations would continue successfully into the future.
Why did you choose Arizona Federal?
Arizona Federal acquired and integrated the operations of Pinnacle Bank in 2019, the first time that an Arizona-based credit union had purchased a community bank. That transaction has been successful for all involved and demonstrates their competency and commitment to be great partners.
Through this process we’ve learned that Arizona Federal was planning an expansion outside of Maricopa County, so they’re eager to make continued investments to serve our communities. They also have a reputation as an outstanding employer, so we know our employees will benefit.
What will change at the branches?
Our branches will continue to operate doing business as usual. At some point before the end of the year the signs and branding will change, and then in March of 2023 we anticipate completing a conversion to their computer systems (online banking, etc.). We’ll keep you updated along the way to minimize any impacts to service.
