ALBUQERQUE, N.M.–The $1.536-billion U.S. Eagle FCU said it has entered into an agreement to acquire Las Vegas, N.M.-based, $475-million Southwest Capital bank, which is a wholly owned subsidiary of Las Vegas Bancorp. The deal was the second to be announced this week.
The transaction is structured as a purchase and assumption agreement with U.S. Eagle purchasing substantially all assets and assuming substantially all liabilities of Southwest Capital Bank, subject to certain adjustments, the credit union said in a statement.
Terms of the deal were not released.
“The transaction will expand U.S. Eagle’s business and commercial services to all its member businesses as well as enhance its branch presence in New Mexico,” U.S. Eagle said in a statement.
The Financials
Southwest Capital Bank, which has six branches, reported $1.145-million in net income as of March 31. It has deposits of approximately $435-million.
U.S. Eagle FCU posted $4.522 million in net income and capital of 10.56% as of June 30.
“We look forward to tapping 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 CEO Marsha Majors said in a statement. “This acquisition allows us to strengthen our commitment to serving those who are traditionally underserved.”
‘New Chapter’
Added Chez Steel, CEO of Southwest Capital Bank in a statement, “Given our over 100-year history of dedicated service to the people of New Mexico, we are delighted to embark on this journey and new chapter with U.S. Eagle Federal Credit Union. Their absolute dedication and commitment to community, service and, most importantly, people align with our ideals in creating an exciting future of opportunity for all.”
The credit union said the transaction is anticipated to be completed in the second quarter of 2025 subject to receiving all regulatory approvals, approval by the shareholders of Southwest Capital Bank, and other customary closing conditions.
More Options
The pioneer of CU purchases of banks said banks are looking at every option when it's time to sell.
"Community banks are clearly examining their strategic alternatives, and many seem to be choosing to sell," said said Michael Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP. "They see it as the best way to deliver value to their customers, employees and shareholders. Every so often a credit union is the successful buyer."
Bell has been part of more than 60 whole-bank agreements, plus additional bank branch purchases.
The Advisors
U.S. Eagle was advised by McQueen Financial Advisors, as financial advisor, and Luse Gorman, as legal counsel. Southwest Capital Bank was advised by Hillworth Bank Partners, as financial advisor, and Otteson Shapiro, as legal counsel.
About the Institutions
U.S. Eagle was founded in in 1935 under the name “Albuquerque U.S. Employees Federal Credit Union,” and currently has approximately 318 employees over 95,000 members.
Established in 1890 in Las Vegas, N.M., Southwest Capital Bank is a full-service community-based, commercial bank with approximately 90 employees serving its customers throughout New Mexico.
Second Deal of the Week
Earlier this week, the $5.8-billlon Spokane Teachers Credit Union (STCU) said it had agreed to buy the $550-million Community Bank based in Joseph, Ore.
Community Bank has 10 branches in Wallowa, Union, Umatilla, and Baker counties in Oregon, and Walla Walla and Asotin counties in Washington.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $1.52-billion ELGA Credit Union is reaching well beyond its state’s borders to buy the $650-million Marine Bank & Trust, based in Vero Beach, Fla.
- The $2.5-billion Atlanta Postal Credit Union and its subsidiary Center Parc CU are purchasing the $870-million Affinity Bank, based in Covington, Ga.
- The $1.2-billion Pima Federal Credit Union has agreed to purchase the $272-million Republic Bank of Arizona, based in Phoenix.
- The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Pa., the bank reported.
- The $4.7-billion TDECU in Lake Jackson, Texas, has agreed to buy the $1.2-billion Sabine State Bank and Trust, based in Many, La.
- The $1.9-billion Harborstone Credit Union in Lakewood, Wash., has announced plans to buy Mt. Vernon, Wash.-based SaviBank.
- The $2-billion Empeople Credit Union in Moline, Ill., acquired the $182-million TSB Bank in Lomira, Wis.
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- In Tacoma, Wash., the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with to purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash.
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- The $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank.