And there it is.

The most credit union-buying-bank deals ever announced in a year was 16 in 2022.

Until today.

The $3.3 billion-asset OneAZ Credit Union in Phoenix said it will acquire $600 million-asset 1st Bank Yuma, the banking subsidiary of Western Arizona Bancorp Inc.

Financial details of the all-cash transaction were not disclosed.

The deal marks the 17th time in 2024 that a bank has agreed to sell to a credit union – one more than was announced two years ago, although only 14 of those transactions ultimately closed.

Most recently, ESL Federal Credit Union in September agreed to acquire $401 million-asset Generations bank in Seneca Falls, New York.

There were 11 credit union-buying-bank deals announced in 2023.

“With the recent rate cut by the Federal Reserve, we anticipate that the number of credit union/bank transactions will continue at its current pace through the end of 2024 and into 2025,” said attorney Jeff Cardone of Luse Gorman, which advised OneAZ on the transaction.

After deal completion, OneAZ will have more than $4 billion in assets, serving over 220,000 members throughout Arizona.

The acquisition will also add 1st Bank Yuma’s five branches in Yuma, San Luis and Nogales to OneAZ’s network of 20 branches, significantly expanding OneAZ’s reach in southern Arizona.

“OneAZ is taking a bold step toward fulfilling our commitment to driving positive change across Arizona,” said Brandon Michaels, president and CEO of OneAZ Credit Union. “This partnership expands our reach into the rapidly growing markets of Yuma and Santa Cruz counties, where we know we can have a positive impact on the local economy to ignite even more growth and prosperity for those communities.”

Final regulatory approval is expected by mid-2025, and the two organizations are expected to be fully integrated in 2026.

“This strategic transaction enables us to offer our customers a wider array of products and services. We believe that this partnership is a good fit not only for our customers but also for our dedicated employees, and the communities we proudly serve,” said Wayne Gale, president and CEO of Western Arizona Bancorporation and CEO of 1st Bank Yuma.

The credit union earned roughly $15 million in the first half of 2024, a 28% increase compared to a year earlier, according to call report data from the National Credit Union Administration.

It is the first bank acquisition for OneAZ CU.

But these deals continue to tick off bankers and the trade groups that represent them.

The Independent Community Bankers of America recently shared polling of U.S. adults conducted by Morning Consult, which revealed 61% — including 70% of Democrats and 64% of Republicans — said Congress should investigate whether credit unions should be able to acquire banks given credit unions’ tax and regulatory exemptions.

“ICBA and community bankers continue our calls for Congress to hold hearings and to consider an ‘exit fee’ on credit union acquisitions of tax-paying banks to capture lost tax revenue resulting from these deals, which is in line with historical precedent,” said ICBA President and CEO Rebeca Romero Rainey.

“1st Bank Yuma has a proud legacy of community investment in southern Arizona, and we’re excited to build on their incredible work. Together, we’ll drive economic growth and opportunity, ensuring that everyone in southern Arizona has the chance to thrive and dream.”

 – Brandon Michaels
President and CEO
OneAZ Credit Union