Phoenix-based Arizona FCU is acquiring Scottsdale, Ariz.-based Pinnacle Bank.
The financial terms of the deal, which is expected to close in the fourth quarter, were not disclosed.
The combined organization will have assets of more than $1.8 billion, more than 127,000 members and 16 locations in the greater Phoenix area.
S&P Global Market Intelligence valuations for bank and thrift targets in the West region between June 3, 2018, and June 3, 2019, averaged 184.64% of book and 186.92% of tangible book and had a median of 22.32x last-12-months earnings on an aggregate basis.
Arizona FCU will expand in Maricopa County, Ariz., by five branches to be ranked No. 13 with a 1.39% share of approximately $108.95 billion in total market deposits, S&P Global Market Intelligence data shows.
Howard & Howard PLLC served as legal counsel, and McQueen Financial served as financial adviser for Arizona FCU. Hunton Williams was legal counsel, and Raymond James and Associates was financial adviser for Pinnacle Bank.