ALBUQUERQUE, N.M.–A bank has called off its plan to be bought by a credit union after questioning the financial condition of the acquiring CU.
Southwest Capital Bank CEO Chez Steel expressed concerns about the financial condition of U.S. Eagle FCU, telling the Albuquerque Journal the credit union’s recent losses were partially responsible for the merger falling apart, according to spokesperson Ary Gapairisez.
“Southwest Capital Bank is very profitable. (U.S. Eagle is) not. They’re having trouble,” Steel told the Journal. “Those are the key components.”
At mid-year, the $1.47 billion U.S. Eagle FCU, which has approximately 96,000 members, reported a loss of $20.5 million, its call report shows. It had net worth of 9.09%. It had a $2.1-million loss at year-end 2024.
‘Post-Pandemic Financial Impact’
The credit union reported a loss of $2.35 million for Q1, which a spokesperson told the Albuquerque Journal was the result of a “post-pandemic financial impact. The spokesperson added that the credit union’s “core business remains strong and continues to be classified as ‘well-capitalized’ for fiscal soundness.”
The acquisition of the approximately $500-million bank was announced in August of 2024 and was expected to close this year. It would have added Southwest Capital Bank’s six locations in Northern New Mexico to U.S. Eagle’s 11 branches. Both institutions are based in Albuquerque.
Terms of the would-be deal were not released.
CU Issues a Statement
In a statement on its website, U.S. Eagle said, “Upon continued discussions and input from financial governing authorities, we are disengaging from the planned acquisition of Southwest Capital Bank.
While we are disappointed we will not be moving forward to better serve a greater number of New Mexico residents, U.S. Eagle will continue to invest its time, efforts and resources in doing what we’ve always done best – delivering nationally recognized, award-winning service and exceptional value to our loyal membership.”
