CrossFirst Bank will expand its presence in Arizona by acquiring a Tucson-based bank.
CrossFirst Bankshares Inc., based in Leawood (Kansas), announced on April 21 an agreement to purchase Canyon Bancorporation Inc., and its operating division, Canyon Community Bank. Canyon shareholders will receive a split of 50/50 cash and CrossFirst shares worth $15.1 million.
Canyon Community Bank only has one branch in Tucson. According to the bank's website, it had one more branch that was temporarily closed in August, and then decided to permanently close.
According to CrossFirst, Canyon Community Bank reported $122 million of loans and $169 million of deposits as of March 31. CrossFirst, on the other hand, reported $5.6 billion of loans and $5.8 trillion in deposits during the same period. CrossFirst reported $62.6 million operating revenue and a net profit of $16.1 millions for the quarter ending March 31.
CrossFirst stated in a press release that the acquisition of Canyon Community Bank would provide new services for the bank's clients while demonstrating CrossFirst's "commitment" to expanding in the Southwest.
The transaction is expected to be completed in the second half 2023, subject to approval from banking regulators.
CrossFirst opened a Phoenix office in 2021. Mike Maddox, the CEO of CrossFirst told the Kansas City Business Journal at the time that they had been eyeing this market for many years and took the decision when they had the opportunity to hire Arizona banker Kevin Halloran as the head of the operation.
According to Business Journal, CrossFirst's Phoenix branch had $101 Million in local deposits by June 2022.