EL PASO, Texas—After a brief lull in credit union purchases of banks earlier this year, the pace of deals is accelerating again, as $4.43-billion GECU here announced Monday that it will acquire $186.8-million Bank of the Southwest, based in Roswell, N.M.
The all-cash transaction will create a combined $4.7-billion organization serving more than 440,000 members and customers across Texas and New Mexico.
Bank of the Southwest operates 11 branches across New Mexico. The deal has received approval from both institutions’ boards and is pending NCUA, FDIC, and New Mexico regulatory sign-off, the CU stated.
Both organizations will continue operating independently while the transaction moves through the approval process. After closing and systems conversion, all operations will consolidate under the GECU name, led by GECU President and CEO Crystal Long.
“We have a vision of expanding our positive impact to help even more people and families on their financial journey and this acquisition brings us closer to this mission,” said Long. “Bank of the Southwest has been a cornerstone of the New Mexico financial community, and we look forward to building on their legacy by offering our range of exceptional financial products and services and instilling our people helping people philosophy.”
“We’re excited to join GECU as they expand in New Mexico. GECU’s commitment to employees, members, and communities aligns perfectly with our values at Bank of Southwest,” started Bank of the Southwest CEO K. Andrew Hogan. “Together we look forward to enhancing our ability to expand commercial lending and our offerings to more communities in New Mexico with GECU’s robust products and services and advanced technology solutions.”
Doeren Mayhew Advisors, LLC is serving as financial advisor and Luse Gorman, PC as legal counsel to GECU. Olsen Palmer LLC is serving as financial advisor and Fenimore Kay Harrison LLP as legal counsel to Bank of the Southwest.