U.S. Eagle Federal Credit Union in Albuquerque will acquire nearby Southwest Capital Bank, expanding U.S. Eagle in several markets and delving more deeply into servicing the fast-growing cannabis industry.
The firms announced the transaction, set to close in the second quarter of 2025, on Friday. Terms of the deal were not disclosed.
“It represents an exceptional opportunity to combine and augment our respective strengths and experience in personal, business and cannabis-related banking as well as deliver unparalleled service to a greater number of people,” U.S. Eagle CEO Marsha Majors and Southwest Capital CEO Chez Steel said in a prepared statement.
The deal will expand U.S. Eagle’s presence in the Las Vegas, Mora and Pecos markets in New Mexico. Both organizations plan to operate as is through mid-2025, at which point U.S. Eagle “is focused on retaining what makes SWCB so special to its employees and customers and will be working hand in hand with the bank’s employees to make any transitions as seamless as possible once we receive approval to integrate the two operations,” the credit union said.
Southwest Capital counts six branches and $475 million in assets, it says. U.S. Eagle has roughly $1.5 billion, according to the Albuquerque Journal.
“Given our over 100-year history of dedicated service to the people of New Mexico, we are delighted to embark on this journey and new chapter with U.S. Eagle Federal Credit Union,” Steel said in a statement seen by CUToday. “Their absolute dedication and commitment to community, service and, most importantly, people align with our ideals in creating an exciting future of opportunity for all.”
Credit union-bank deals have become increasingly popular in recent years. This is the 17th such deal announced this year, and the second within a week. Fourteen of the transactions have been for whole banks, and another three for partial footprints. Credit unions proposed to buy a record 16 whole banks in 2022, and this year has been on pace to easily surpass that.
In answering its own question as to why it’s buying a bank and not a fellow credit union, U.S. Eagle said on its website: “The decision to acquire another financial institution is a very complex and strategic decision. Our decision was based on the similarities we both saw in our missions and operations.
“The acquisition of SWCB presents an opportunity to serve an even greater number of new members and aligns with our core values of providing exceptional service and making a positive impact in the communities we serve,” U.S. Eagle wrote.
