U.S. Eagle Federal Credit Union to Acquire Southwest Capital Bank in $1.5 Billion Deal
U.S. Eagle Federal Credit Union to Acquire Southwest Capital Bank in $1.5 Billion Deal
In a major move that is set to reshape the financial landscape in Albuquerque, New Mexico, the $1.5 billion U.S. Eagle Federal Credit Union has announced its plans to acquire the $474 million Southwest Capital Bank (SCB) during the second quarter of 2025. The acquisition, which is pending approvals from shareholders and regulators, is expected to bring significant benefits to both institutions and their customers.
The financial terms of the purchase and assumption agreement were not disclosed when the deal was announced on Friday. However, it is clear that the proposed transaction will not only expand U.S. Eagle’s business and commercial services to its members but also enhance its branch presence in the state.
Southwest Capital Bank, established in 1890 in Las Vegas, N.M., currently operates six locations and serves 5,500 customers. With $174 million in loans and $433 million in deposits, the bank posted a net income of $1.9 million at the end of the second quarter, according to FDIC filings.
Marsha Majors, President/CEO of U.S. Eagle FCU, expressed excitement about the acquisition, highlighting the potential to tap into Southwest Capital’s expertise in business and cannabis banking services. She emphasized the credit union’s commitment to serving underserved communities and members of modest means, a mission that aligns with SCB’s values.
Chez Steel, CEO of SCB, echoed Majors’ sentiments, noting the shared dedication to community service and people-centric approach. The merger is seen as a positive step towards creating new opportunities for all stakeholders involved.
This acquisition marks the 14th credit union bank buy agreement announced this year, surpassing the total number of deals in 2023. The industry continues to see consolidation and strategic partnerships as financial institutions seek to enhance their offerings and expand their reach.
In addition to the U.S. Eagle-Southwest Capital Bank deal, the National Credit Union Administration (NCUA) is currently reviewing an application from Arrha Credit Union in West Springfield, Mass., to merge with Pittsfield Co-operative Bank in Pittsfield, Mass. This trend of consolidation and collaboration is expected to shape the future of the banking sector in the coming years.
