U.S. Eagle to purchase Southwest Capital Bank

U.S. Eagle Federal Credit Union will soon acquire Southwest Capital Bank, the two financial institutions announced, a move that will likely bolster the credit union’s cannabis lending and banking services in a state that has seen fast-growing movement in the recreational industry.

The companies made the announcement in a joint news release Friday, with the financial institutions saying they have entered into a definitive agreement on the acquisition, which they said should be completed sometime in the second quarter of 2025. Regulatory approvals still need to be hurdled, the banks said, and Southwest Capital’s shareholders still need to give final approval.

U.S. Eagle's and Southwest Capital’s boards of directors, however, have both approved the deal.

“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 of U.S. Eagle, said in a statement announcing the transaction.

For U.S. Eagle, the acquisition of Southwest Capital — which will wind down and dissolve upon closing — amounts to a big win for the credit union, which already has a cannabis banking arm in Aery Group. There, U.S. Eagle offers services to cannabis businesses, such as checking and savings accounts, cash handling and lending, a spokesperson said.

Southwest Capital, on the other hand, offers those same services to cannabis businesses — and both financial institutions are regarded as leaders in the marijuana industry.

The acquisition will also mean for U.S. Eagle a foray into other New Mexico markets, including Las Vegas, Mora and Pecos, where Southwest Capital has five branches.

Chez Steel, CEO of Southwest Capital, told the Journal the northern New Mexico region was of great interest to U.S. Eagle, leading to the credit union’s proposed acquisition. But he said the credit union was also interested in Southwest Capital’s commercial lending side and its “cannabis banking (arm) in its entirety.”

Marsha Majors, the president and CEO of U.S. Eagle, relayed as much in her statement, saying the acquisition 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.”

U.S. Eagle, founded in 1935, was represented by financial adviser McQueen Financial and by Luse Gorman as legal counsel. Southwest Capital, founded in 1890 in Las Vegas, New Mexico, was advised by Hillworth Bank Partners and Otteson Shapiro, who acted as legal counsel.

The credit union has some $1.5 billion in assets, with over 95,000 members and 318 employees. Southwest Capital had total assets of $475 million and deposits of $434 million at the end of June, the news release said, and roughly 90 employees.

“We are excited to join forces with U.S. Eagle, enhancing the services, products, and team to further uplift and empower New Mexico,” Greg Levenson, Southwest Capital Bank’s board chairman, said in a statement.