U.S. Eagle FCU Plans to Buy Southwest Capital Bank
If approved by shareholders and regulators, the proposed acquisition is expected to close during the second quarter of next year.
The $1.5 Billion U.S. Eagle Federal Credit Union in Albuquerque, N.M., is expected to close its proposed acquisition of the $474 million Southwest Capital Bank (SCB), also based in Albuquerque, during the second quarter of 2025, pending approvals from shareholders and regulators.
Financial terms of the purchase and assumption agreement were not disclosed when announced on Friday.
The proposed transaction will expand U.S. Eagle’s business and commercial services to its business members and enhance its branch presence in New Mexico.
Established in 1890 in Las Vegas, N.M., Southwest Capital Bank’s 90 employees operate six locations and serve 5,500 customers. The bank manages $174 million in loans and $433 million in deposits. At the end of the second quarter, SCB posted a net income of $1.9 million, according to FDIC filings.
“We look forward to tapping into Southwest Capital’s knowledge of the Las Vegas market, as well as leveraging their expertise in business and cannabis banking deposit services and lending,” U.S. Eagle President/CEO Marsha Majors said. “This acquisition allows us to strengthen our commitment to serving those who are traditionally underserved.”
In April, the credit union opened a new branch to serve the city’s underserved South Valley and Mesa Del Sol communities. The Herrera Isleta Branch was named to honor Kenneth E. Herrera, who served on the credit union’s board from 1981 to 2021 and who championed the needs of the underserved and members of modest means. In 2021, U.S. Eagle earned a certification in safe monetary banking protocols that establishes high levels of compliance standards and risk-mitigating strategies for banking cannabis and hemp businesses. According to New Mexico Attorney General’s office, the credit union became the first financial institution in the nation to receive this certification.
“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,” Chez Steel, CEO of SCB, said. “Their absolute dedication and commitment to community, service and, most importantly, people, aligns with our ideals in creating an exciting future of opportunity for all.”
U.S. Eagle’s 329 employees operate 11 locations and serve nearly 95,000 members.
This is the 14th credit union bank buy agreement announced so far this year, exceeding the 11 credit union bank acquisition agreements announced in 2023. In 2022, there were 16 credit union bank buy deals announced, but two of them were called off.
In addition, the NCUA is reviewing an application from the $147 million Arrha Credit Union in West Springfield, Mass., for permission to ask its 9,456 members to merge with the $378 million Pittsfield Co-operative Bank in Pittsfield, Mass.