Southwest Federal Credit Union merges with First Financial amid rising costs

Southwest Federal Credit Union has merged with First Financial Credit Union.

Officials with the two credit unions announced the merger last week after 86% of Southwest members voted to join First Financial.

Southwest CEO and President Randy Lunsford said all three of the credit union’s locations — two in Albuquerque and one in Farmington — will become First Financial branches as part of the transaction. The merger, approved by the National Credit Union Administration and the New Mexico Financial Institutions Division, ultimately gives First Financial 20 locations across the state, he said.

The legal merger became official Tuesday, and the credit unions will be fully integrated in early September, according to a news release. Southwest members will continue operating under its system until full integration with First Financial is completed, Lunsford said.

“We’re working really hard behind the scenes to make sure there’s no negative impact to our members during that process,” Lunsford said.

The deal will ultimately have First Financial oversee $1 billion in assets, CEO and President Ron Moorehead said.

The merger, indicative of consolidation trends in the industry, will give Southwest members more local options and varied services, officials said.

The Southwest board of directors deliberated on the idea for two years before deciding to go with First Financial, which, Lunsford said, members picked because of its “smaller credit union attitude.”

The merger also follows other deals across New Mexico.

Nusenda Credit Union finalized its purchase of Western Heritage Bank early last year, giving the state’s largest credit union a larger presence in southern New Mexico and El Paso. U.S. Eagle Federal Credit Union also announced a plan in August to acquire Southwest Capital Bank, bolstering its cannabis lending and banking services, as well as giving it a presence in northern New Mexico. Sunward Federal Credit Union also completed its acquisition of Utah-based Mountain America Credit Union’s Albuquerque branches in March.

“It’s bittersweet because we would’ve preferred to stay independent, but it’s becoming very difficult to stay a smaller credit union because of the cost of technology, fraud, keeping talented staff — you have to pay more,” Lunsford said.

Moorehead said merging with Southwest allows First Financial to pick up their foreign currency purchasing service, something they haven’t offered before.

On top of keeping its three locations operating, he said any Southwest employee who wants a job has one unless they wish to leave or retire.

“About half of their staff has over 10 years of experience. That’s quite a testament to corporate culture and to how management and the governance side of the organization has taken care of them and made it a good environment for their employees to thrive in,” Moorehead said.