Bancorp 34 (BCTF), the holding company of Bank 34, and CBOA Financial, the holding company of Commerce Bank of Arizona, have signed a $28 million worth all-stock merger deal to create the second largest Arizona-based bank with assets of around $ 1 billion.

As per the terms of the deal, CBOA Financial’s shareholders will exchange each of their shares for 0.24 shares of Bancorp 34.

The deal values each of the shares of CBOA Financial at $2.7.

Under the share exchange ratio, Bancorp 34’s shareholders will have ownership of around 65% in the combined entity, while the remaining 35% will be held by CBOA Financial’s shareholders.

Chris Webster — CBOA Financial said: “This unique strategic merger is the culmination of months and months of collaboration and consideration with BCTF’s fantastic team. The opportunity to combine the strengths of both management groups while capitalizing on conditions in some of the most exciting markets in the country is very compelling.

“Together this company will be positioned to fill a prominent role in the southwest banking landscape and we couldn’t be more excited to get started.”

Based in Scottsdale, Arizona, Bank 34 is a community bank that was established in 1934. The bank has branches in Scottsdale as well as in Las Cruces and Alamogordo in New Mexico.

On the other hand, Commerce Bank of Arizona has been operating since 2002, based in Tucson. The full-service community bank serves real estate professionals and small-to-mid-sized businesses.

Jim Crotty — Bancorp 34 CEO said: “This is an exciting combination that will accelerate both companies’ strategic goals by enhancing our ability to serve our customers.

“Higher lending limits will allow us to tap new opportunities and grow stronger relationships with our existing customers, while increased scale will allow us to more efficiently meet the needs of all our stakeholders. I am excited to partner with the Commerce team and believe we will do great things together.”

Jim Crotty will be the CEO of the combined entity after the completion of the merger, which could close in Q4 2023. The deal is subject to regulatory approvals, shareholders’ approvals of both bank holding companies, and other customary closing conditions.

  Arizona, Bancorp 34, Banking acquisition news, Banking industry news, CBOA Financial, Chris Webster, Commerce Bank of Arizona, Jim Crotty, New Mexico, Scottsdale, Tucson, USA