A.E.A. Federal Credit Union (“AEA”), headquartered in Yuma, Arizona, has entered into a purchase and assumption agreement with West Valley National Bank, headquartered in Goodyear, Arizona, and its parent holding company, West Valley Bancorp, Inc. (“West Valley Bancorp”). Pursuant to the agreement, AEA will purchase substantially all assets and assume substantially all liabilities of West Valley National Bank.
The transaction has been unanimously approved by the boards of directors of both institutions. Following the completion of the transaction, West Valley National Bank and West Valley Bancorp will each dissolve and liquidate, and all remaining assets will be distributed to West Valley Bancorp’s shareholders. When the transaction is finalized, the combined institution will have approximately $456 million in assets, and AEA will have seven branches in Arizona and one branch in Las Vegas, Nevada.
The acquisition is part of AEA’s strategy to expand its footprint in the Phoenix, Arizona region and into Nevada, diversify its assets, and add additional talent and expertise. West Valley National Bank customers who become members of AEA will have full access to all of AEA’s expansive product and service offerings.
Adele M. Sandberg, President and CEO of AEA, said “This partnership with West Valley National Bank and its customers will expand our footprint into the Phoenix, Arizona region and also add a presence in Las Vegas, Nevada. Our goal as a certified Community Development Financial Institution (CDFI) is to serve the underserved, and by expanding our footprint eastward into Arizona through this acquisition, we can do so more expediently.”
Ronald T. Evans, Jr., President and CEO of West Valley National Bank and West Valley Bancorp, said “We believe this is an exciting moment for West Valley National Bank. This transaction allows West Valley National Bank employees to join together with AEA employees in a shared commitment to deliver quality community-focused financial services and expertise to our collective customers throughout the communities we serve, and allows us to leverage our collective strengths and resources to deliver such services.”
The transaction is anticipated to be completed in the late second quarter of 2024 subject to receiving all required regulatory approvals, approval from the shareholders of West Valley Bancorp, and the satisfaction of other customary closing conditions.
AEA was advised by Luse Gorman, PC as legal counsel. West Valley Bancorp and West Valley National Bank were advised by Hunton Andrews Kurth LLP and the Parker Law Team, PLLC as legal counsel.