GECU to Acquire Bank of the Southwest in New Mexico

GECU, based in El Paso, Texas, announced Monday that it will acquire Bank of the Southwest, a financial institution headquartered in Roswell, New Mexico. The proposed acquisition will create a combined $4.7 billion-asset organization with more than 30 branches and 440,000 customers. Financial terms and a timeline for completion were not disclosed.

Combined Institution to Expand Footprint in New Mexico

The acquisition strengthens GECU’s expansion into New Mexico, a state it entered last year with the opening of a single branch in Las Cruces. Bank of the Southwest operates 11 branches across New Mexico, including one in Las Cruces. Both institutions’ boards of directors and leadership teams have endorsed the deal, which remains subject to approval by federal and state regulators, including the National Credit Union Administration, the New Mexico Financial Institutions Division, and the Federal Deposit Insurance Corporation.

Leadership Plans and Strategic Goals

GECU President and CEO Crystal Long will continue to lead the combined organization. In a letter to members, she said she is looking forward to the opportunities presented by the acquisition. Bank of the Southwest CEO K. Andrew Hogan said the combined entity aims to expand commercial lending and broaden financial product offerings to more communities in New Mexico by leveraging GECU’s technology and services.

Industry Trends Show Strong Deal Activity

Credit union–bank acquisitions have been increasingly common, reaching a record 22 transactions last year. Michael Bell, a partner at Honigman who structures such deals, said activity remains strong heading into 2025. He said the industry will likely finish the year with a total number of deals in the twenties and noted that political conditions, staffing changes at the National Credit Union Administration, and regulatory delays have influenced the pace of transactions.