CrossFirst Bankshares and Canyon Bancorporation entered into a definitive merger agreement under which CrossFirst and Canyon will consummate a business combination transaction resulting in the mergers of Canyon with and into CrossFirst and Canyon’s bank subsidiary, Canyon Community Bank, merging with and into CrossFirst’s bank subsidiary, CrossFirst Bank (CFB Bank), in a stock and cash transaction.
Canyon Bank had total loans of $122 million and total deposits of $169 million as of March 31, 2023, and currently operates one banking location in Tucson, AZ.
The combination will bring together complementary banking platforms focused on serving small businesses and the surrounding communities they serve. The transaction continues CrossFirst’s commitment to expansion in the Southwest with the addition of a branch in Arizona’s second largest metropolitan area.
CrossFirst believes that providing Canyon Bank’s clients with access to CFB Bank’s broader array of banking products and capabilities will provide enhanced benefits for Canyon Bank clients, as well as provide synergies with CrossFirst’s existing presence in the Phoenix market.
“We are excited to welcome Canyon Bank’s clients and employees to our CrossFirst team,” Mike Maddox, president and CEO of CrossFirst, 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.”
“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,” Bo Hughes, president and CEO of Canyon Bank, said.
Canyon shareholders are expected to receive a combination of cash and CrossFirst common stock as consideration for their shares of Canyon common stock, with an aggregate transaction value estimated at $15.1 million based on the current CrossFirst stock price.
The business combination was approved by the board of directors of each company and bank. The transaction is expected to close in the second half of 2023, subject to approval by bank regulatory authorities, as well as the satisfaction of other customary closing conditions.
CrossFirst was advised in this transaction by Raymond James & Associates as financial advisor and Stinson as legal counsel. Canyon was advised by Keefe, Bruyette & Woods, A Stifel Company as financial advisor and Hunton Andrews Kurth as legal counsel.
