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WestStar stretches New Mexico presence with Southwest Capital deal

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WestStar stretches New Mexico presence with Southwest Capital deal

The transaction, set to close in the first quarter of 2027, gives Southwest Capital a landing spot after a previous tie-up with a credit union collapsed.

WestStar Bank has agreed to acquire Albuquerque-based Southwest Capital Bank in a deal that will grow the El Paso, Texas-based buyer’s footprint from one New Mexico branch to seven.

The transaction, set to close in the first quarter of 2027, will create a lender with $3.8 billion in assets, roughly $3.3 billion in deposits and $2.9 billion in loans, the banks said Wednesday. Financial terms of the deal were not disclosed.

In a statement, WestStar’s executive chair, Rick Francis, noted the banks have “remarkably similar values.”

“Both institutions were shaped by generations of bankers, business owners and families who believed their communities deserved a bank that understood them,” Francis said. “Just as important, we share a vision for the future and a belief that locally guided community banks continue to play a vital role in helping businesses, families and communities thrive.”

The deal also gives Southwest Capital a landing spot after a 2024 proposed acquisition by U.S. Eagle Federal Credit Union collapsed.

“Southwest Capital Bank is very profitable. [U.S. Eagle is] not. They’re having trouble,” the New Mexico bank’s CEO, Chez Steel, told the Albuquerque Journal in July 2025.

U.S. Eagle posted a $20.5 million loss during last year’s second quarter, Credit Union Times reported.

S. Eagle’s then-CEO, Marsha Majors, told the publication. Majors retired in January .



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