WestStar, Southwest Capital to combine.
The deal would create a roughly $3.8 billion community banking organization spanning New Mexico and the Borderplex region, with closing expected in early 2027.
WestStar Bank and Southwest Capital Bank have agreed to combine, expanding WestStar’s presence across New Mexico and creating a community banking organization with approximately $3.8 billion in assets, the companies said.
Under the definitive agreement, WestStar Bank Holding Company and Las Vegas Bancorporation, the Albuquerque-based holding company of Southwest Capital Bank, will join their organizations. Pending shareholder and regulatory approvals and other closing conditions, Southwest Capital Bank is expected to become part of WestStar Bank in the first quarter of 2027.
The combined bank is expected to have about $2.9 billion in loans and $3.3 billion in deposits. Its footprint will stretch from Southern New Mexico through Albuquerque and Northern New Mexico and into the Borderplex region, which includes El Paso, Las Cruces and Juárez.
For WestStar, based in El Paso, the transaction represents a substantial expansion into New Mexico. Southwest Capital brings more than 135 years of history in the state, along with established relationships and local market knowledge.
“WestStar and Southwest Capital Bank share more than a commitment to community banking. We share remarkably similar values,” L. Frederick “Rick” Francis, WestStar’s executive chairman, said. He said the institutions were shaped by generations of bankers, business owners and families and shared a belief in locally guided banking.
Chez Steel, president and chief executive of Southwest Capital, said preserving the bank’s history and relationship-focused approach was important as its leadership considered its future.
“For more than 135 years, generations of clients, team members and community members have built Southwest Capital Bank into the institution it is today,” Steel said. “As we considered how best to position our clients, team members and communities for the future, it was important to find a partner that respected our history, shared our values and was committed to relationship banking.”
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Steel will remain with the combined organization as its New Mexico Market President, continuing to serve clients across the state.
The companies said the combination is intended to preserve local leadership and decision-making while giving customers access to a broader range of financial services. Those will include commercial banking, treasury management, wealth management, title services and digital banking.
The deal also reflects the continuing consolidation and expansion of community banks seeking to build scale while maintaining local relationships. In this case, the companies are emphasizing that the larger organization will retain local leadership in the markets where the two banks operate.
WestStar currently has more than $3.3 billion in assets, 14 branches and more than 340 employees. The bank describes itself as the only El Paso-based community bank and the leading commercial bank in the Borderplex region. Its history includes the combined legacies of Bank of Ysleta, Bank of El Paso, First National Bank of Fabens and Bank of the West, which was rebranded as WestStar Bank in 2012. Those institutions ultimately came together under WestStar in 2016.
Southwest Capital, founded in 1890, has more than $500 million in assets, six branches and more than 80 employees. It serves businesses, entrepreneurs, individuals and families across Albuquerque and Northern New Mexico, with commercial lending and treasury management among its services.
The combination will give Southwest Capital customers access to WestStar’s larger set of financial capabilities while maintaining the existing local management structure, the companies said.
“Our people continue to be our most valuable asset. We are excited about what we can build together and what it can mean for the future of community banking across the region,” Francis said.
For now, customers of both banks are being told to continue using their accounts, checks, debit cards, digital banking services and existing branches as they do today. The companies said customers and employees will receive advance notice of any changes resulting from the transaction.
The transaction remains subject to shareholder and regulatory approvals and other customary closing conditions.
“WestStar and Southwest Capital Bank share more than a commitment to community banking. We share remarkably similar values.”
L. Frederick “Rick” Francis
executive chairman
WestStar Bank
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
