Merger to Expand Arizona Franchise with Acquisition of Canyon Community Bank

inbusinessPHX.com

CrossFirst Bankshares, Inc. and Canyon Bancorporation, Inc. announced that they have 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, N.A., merging with and into CrossFirst’s bank subsidiary, CrossFirst 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, Arizona.

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,” commented Mike Maddox, CrossFirst’s President and Chief Executive Officer. “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,” said Bo Hughes, Canyon Bank’s President and Chief Executive Officer.

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, Inc. as financial advisor and Stinson LLP as legal counsel. Canyon was advised by Keefe, Bruyette & Woods, A Stifel Company as financial advisor and Hunton Andrews Kurth LLP as legal counsel.

CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned subsidiary CrossFirst Bank, a full-service financial institution that offers products and services to businesses, professionals, individuals, and families. CrossFirst, headquartered in Leawood, Kansas, has locations in Kansas, Oklahoma, Texas, Missouri, Colorado, New Mexico and Arizona.

Canyon Bancorporation, Inc. is an Arizona corporation and a registered bank holding company for its wholly owned subsidiary Canyon Community Bank, N.A., a full-service financial institution that offers products and services to businesses, professionals, individuals, and families from its branch location in Tucson, Arizona.

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