GECU reaches deal to acquire Bank of the Southwest in New Mexico.
The agreement, pending regulatory approval, would create a $4.7 billion-asset financial institution serving more than 440,000 members and customers.
GECU, El Paso’s largest locally owned federal credit union, announced that it has agreed to acquire Bank of the Southwest, a New Mexico-based bank with 11 locations across the state.
The purchase price of the all-cash transaction was not disclosed in a press release Monday.
The proposed acquisition has received unanimous approval from both organizations’ boards and leadership teams.
The combined institution is projected to become a $4.7 billion-asset organization serving more than 440,000 members and customers once the deal closes, the credit union said. The transaction is subject to approval from the National Credit Union Administration, the Federal Deposit Insurance Corporation and the New Mexico Financial Institutions Division.
GECU and Bank of the Southwest said customers and members should expect no immediate changes as the two organizations continue to operate independently pending regulatory approval and other closing conditions. After the closing and a systems integration process, the merged institution will operate under the GECU name, led by Crystal Long, GECU’s president and chief executive.
“We have a vision of expanding our positive impact to help even more people and families on their financial journey and this acquisition brings us closer to this mission,” Long said.
K. Andrew Hogan, chief executive of Bank of the Southwest, said the bank’s values aligned with those of GECU. “We’re excited to join GECU as they expand in New Mexico,” he said. “GECU’s commitment to employees, members, and communities aligns perfectly with our values at Bank of Southwest. Together we look forward to enhancing our ability to expand commercial lending and our offerings to more communities in New Mexico with GECU’s robust products and services and advanced technology solutions.”
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GECU, founded in 1932 in El Paso, manages $4.4 billion in assets and serves more than 439,000 members across Texas and New Mexico. It operates 26 branches and provides access to more than 80,000 surcharge-free ATMs.
Bank of the Southwest, founded in 1992, has $187 million in assets and serves communities including Roswell, Las Cruces, Farmington and Truth or Consequences.
The move comes amid a continuing wave of credit union acquisitions of banks, a trend that has stirred debate across the financial industry. Thirteen such deals have been announced so far in 2025, following a record 22 in 2024.
Attorney Jeff Cardone of Luse Gorman noted that bank valuations and lower interest rates have slowed credit unions’ pace of acquisitions. “The primary reason for the slow down is that bank valuations are increasing/interest rates are lower, which has invited more bank acquirers into the mix — particularly in high growth markets in the Southeast (Florida and Georgia),” he told Tyfone. “Sellers are also more interested in taking bank stock given the improved valuations. As a result, CUs are not being ‘invited to the party’ in certain geographical areas.”
In one recent example, America First Federal Credit Union of Riverdale, Utah, agreed to acquire nearly all of the assets and liabilities of Meadows Bank in Las Vegas, a $1.4 billion-asset institution — a transaction considered among the largest of its kind.
Some major deals have also faltered, including VyStar Credit Union’s 2022 termination of its planned purchase of Heritage Southeast Bancorporation, Inc.
Community bankers continue to voice strong opposition to these transactions.
Rebeca Romero Rainey, president and chief executive of the Independent Community Bankers of America, issued a statement criticizing the trend.
“Following last year’s record number of community bank acquisitions by tax-exempt credit unions, the continuation of this troubling trend in 2025 demonstrates why the growing skepticism of credit union tax and regulatory exemptions must evolve into policymaker action,” she said.
The credit union earned $46.2 million in the first three quarters of 2025 compared to $44 million a year earlier.
“Bank of the Southwest has been a cornerstone of the New Mexico financial community, and we look forward to building on their legacy by offering our range of exceptional financial products and services and instilling our people helping people philosophy.”
– Crystal Long
GECU’s president and chief executive
