ALBUQUERQUE, N.M.— The planned merger between $1.536-billion U.S. Eagle FCU here and Las Vegas-based $475-million Southwest Capital Bank has collapsed, according to an announcement from Southwest Capital, the Albuquerque Journal reported.
Southwest Capital Bank CEO Chez Steel cited concerns over U.S. Eagle’s financial health as a key reason the deal fell through, telling the Albuquerque Journal the credit union's recent losses raised red flags.
“Southwest Capital Bank is very profitable. (U.S. Eagle is) not. They're having trouble,” Steel said. “Those are the key components.”
The merger, first announced in August, would have added Southwest Capital’s six northern New Mexico branches to U.S. Eagle’s existing network of 11 locations across Albuquerque, Farmington, Bernalillo, and Santa Fe. The deal was originally expected to close earlier this year.
Officials from both companies declined to provide the cost of the proposed deal, the Albuquerque Journal said.
U.S. Eagle reported a loss of $2.35 million for its 2025 first quarter, which a spokesperson for the credit union characterized as "post-pandemic financial impact," adding that U.S. Eagle's "core business remains strong and continues to be classified as 'well-capitalized' for fiscal soundness" by NCUA, the Journal said. The CU’s net worth is 10.16%.
As of March, U.S. Eagle had $1.5 billion in assets, according to the NCUA. Southwest Capital is operating on a smaller scale with almost $500 million in assets as of March, according to the bank's most recent report to the Federal Deposit Insurance Corp. That's up from $433 million in assets reported last year, the Journal said.
The dissolved deal closes the door for U.S. Eagle to take advantage of Southwest Capital's cannabis lending and banking operations, an industry that has seen fast-growing movement in New Mexico due to the 2021 legalization of recreational marijuana.
"In keeping with our values ... we will not be moving forward," Steel said in a statement.
U.S. Eagle, on its website stated: "Upon continued discussions and input from financial governing authorities, we are disengaging from the planned acquisition of Southwest Capital Bank."