First Scottsdale Bank in Arizona is buying a larger lender in Tucson, the Phoenix Business Journal reported Tuesday.
The $80 million-asset bank has agreed to pay $8.6 million for Commerce Bank of Arizona, the report said. First Scottsdale plans to take the $224 million-asset Commerce's name once the deal closes. The deal is subject to shareholder and regulatory approval.
The combined company would seek to raise $10 million through a stock offering upon completion of the deal, the report said.
Neither First Scottsdale nor Commerce immediately responded to American Banker's inquiries.
John Lewis would become president of the combined bank's Tucson operations, the report said. Lewis retired last year as Commerce's president and CEO.
Last month, the Federal Insurance Deposit Corp. brought an enforcement action against Commerce, requiring it to formulate a succession plan to replace Lewis and fill its vacant chief credit officer opposition. The order also required the bank to improve its lending procedures. The bank has a Tier 1 leverage ratio of 9.27% and a total risk-based capital ratio of 14.13%.
In 2010 First Scottsdale Chairman and Chief Executive Rich Vogel led a group of investors who bought the First National Bank of Scottsdale, the report said. Management changed the bank's name to First Scottsdale in 2011.
First Scottsdale has one branch, and Commerce has six, all in Arizona, according to the FDIC.