U.S. Eagle FCU to bolster cannabis program with community bank acquisition
The deal marks the14th transaction announced this year in which a credit union is acquiring a bank. There were 11 such deals announced all of last year.
U.S. Eagle Federal Credit Union plans to acquire Southwest Capital Bank, the companies announced in a joint press release.
Both institutions are based in Albuquerque, New Mexico, and the purchase price was not disclosed.
It is the 14th deal announced in 2024 in which a credit union is buying a bank.
The $1.5 billion-asset U.S. Eagle said the deal will bolster its cannabis lending and banking services in a state that has seen a fast-growing movement in the recreational industry.
The credit union already has a cannabis banking arm in Aery Group. U.S. Eagle offers services to cannabis businesses, such as checking and savings accounts, cash handling and lending.
“This acquisition will expand our services to a greater number of people and contribute significantly to U.S. Eagle’s growth for years to come,” said Kevin McMahon, board chairman of U.S. Eagle, in a statement.
The deal is expected to be completed in the second quarter of 2025.
The acquisition will also mean an entry into new New Mexico markets for U.S. Eagle, including Las Vegas, Mora and Pecos, where Southwest Capital has five branches.
Marsha Majors, the president and CEO of U.S. Eagle, said the deal will allow the credit union to tap 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,” she said in a statement.
Last week, Spokane Teachers Credit Union said it plans to acquire the $550 million-asset Community Bank, which is based in Joseph, Oregon.
There were 11 credit union-buying-bank deals announced last year.
The $434 million-asset Southwest Capital is the first New Mexico-based bank to sell to a credit union this year. Last year, Albuquerque-based Nusenda Credit Union announced plans to acquire Las Cruces-based Western Heritage Bank.
U.S. Eagle FCU earned roughly $4.5 million through the second quarter of 2024, an 81% increase compared to a year earlier, according to call report data from the National Credit Union Administration.
“This acquisition will expand our services to a greater number of people and contribute significantly to U.S. Eagle’s growth for years to come.”
– Kevin McMahon
Board Chairman
U.S. Eagle Federal Credit Union