Arizona Federal Credit Union said this marks the first time a credit union has acquired a bank in Arizona.
Pinnacle is a community bank with four branches in Tempe, Scottsdale and Phoenix. Its 60 employees serve about 2,600 customers.
As a credit union where members are shareholders, Arizona Federal is limited in its commercial loans. Acquiring Pinnacle will allow Arizona Federal members access to more mortgage services, generate potential revenue from new lines of business and add four branch locations. Pinnacle clients will become members of Arizona Federal.
In a statement to members, Arizona Federal President and CEO Ronald Westad said, “Once complete, our combined organization will have more than $1.8 billion in assets and serve over 127,000 members throughout the Valley of the Sun.”
He said no jobs will be lost and the deal, which faces regulatory and shareholder approval, is expected to close before the end of 2019.
