With the acquisition of Canyon Bancorp. in Tucson, CrossFirst Bankshares will significantly expand its presence in the state of Arizona.
In an effort to broaden its traditional bread-and-butter small company lending operation, CrossFirst Bankshares of Leawood, Kansas, has reached an agreement to buy Canyon Bancorp. of Tucson, Arizona.
The cash and stock transaction worth $15.1 million would allow CrossFirst, which has assets worth $6.9 billion, to expand its presence in Arizona to include both Phoenix and Tucson, the state’s first- and second-most populous markets, respectively. According to a news release issued by CrossFirst on Friday, the transaction to complete the acquisition is anticipated to take place in the second half of 2023.
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Canyon is the holding company for Canyon Community Bank, which has total assets of $198 million, one branch, $122 million in loans, and $169 million in deposits. Canyon is a subsidiary of Canyon. CrossFirst stated that the combination would result in the creation of complementary banking platforms with an emphasis on providing loans to small businesses.
Mike Maddox, the president and chief executive officer of CrossFirst, was quoted in a press release as saying that “this transaction represents a natural extension of our growth opportunity in Arizona by providing a strategic presence in Tucson with a strong core deposit base and liquidity position,” in addition to supplementing CrossFirst’s existing presence in the metro Phoenix market.
Canyon’s president and CEO, Bo Hughes, predicted the combined bank will have more scale and resources.
According to what he stated in the press release, “We will continue to serve our clients in our local community and will be able to offer enhanced technologies, products, and services.”
Raymond James and Stinson were the ones that provided advice to CrossFirst. Canyon received legal counsel from Keefe, Bruyette & Woods as well as Hunton Andrews Kurth.
The transaction to acquire Farmers & Stockmens Bank in Clayton, New Mexico for $75 million and $568 million in total assets was successfully completed by CrossFirst in 2017. According to what Maddox stated in a prior interview after the announcement of the Farmers deal, the company went after the acquisitions in preparation for an increase in the amount of money lent to small businesses.
“There are further markets that pique our interest, including several in the state of Texas. At that time, he made the following statement: “We are going to continue to be opportunistic.”
CrossFirst is currently operating in the states of Colorado, Missouri, and New Mexico in addition to the states of Texas and Kansas already mentioned.