CrossFirst Bankshares to acquire Arizona-based Canyon Bancorporation
CrossFirst Bankshares, a Kansas-based bank holding company, has agreed to acquire Canyon Bancorporation, a bank holding company in Arizona, in a stock and cash deal worth $15.1 million.
Canyon Bancorporation is the parent company of Canyon Community Bank, while the Nasdaq-listed CrossFirst Bankshares is the parent company of CrossFirst Bank (CFB Bank).
Shareholders of Canyon Bancorporation are likely to get a mix of cash and common stock of CrossFirst Bankshares as consideration.
Bo Hughes — Canyon Bank President and CEO said: “We believe this is an exciting moment for Canyon Bank. We will continue to serve our clients in our local community and be able to offer enhanced technologies, products and services.”
Canyon Community Bank caters to professionals, businesses, individuals, and families through its single branch situated in Tucson, Arizona.
As of 31 March 2023, Canyon Community Bank had total loans of $122 million and total deposits of $169 million.
On the other hand, CrossFirst Bank is headquartered in Leawood. It has branches across Kansas, Texas, Oklahoma, Colorado, Missouri, New Mexico, and Arizona.
The merger between CrossFirst Bank and Canyon Community Bank will unite two banks that are focused on supporting small-sized businesses and the areas they service, as per a press release issued by the parties.
The deal furthers CrossFirst Bankshares’ expansion plans into the Southwest by establishing branches in Arizona’s second-largest metropolitan area.
CrossFirst Bank believes that providing access to its larger selection of banking products and capabilities to customers of Canyon Bank will offer them greater benefits. Besides, it provides synergies to CrossFirst Bank’s current presence within Phoenix.
Mike Maddox — CrossFirst Bankshares President and CEO said: “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, while also supplementing our existing presence in the metro Phoenix market.”
The merger was ratified by the board of directors of each bank and company.
CrossFirst Bankshares was advised by Raymond James & Associates as a financial advisor for the deal, while Stinson LLP served as legal counsel.
Canyon Bancorporation, on the other hand, sought the services of Keefe, Bruyette & Woods, A Stifel Company, as a financial advisor, and Hunton Andrews Kurth LLP was roped in as legal counsel.
Subject to the approval by banking regulators and other conditions, the deal is expected to close in the latter half of this year.