U.S. Eagle Federal Credit Union in Albuquerque, N.M., is no longer set to buy Southwest Capital Bank in Albuquerque.
The $1.5 billion-credit union agreed last August to buy the $434 million-asset Southwest Capital in a deal that was expected to close in the second quarter.
Chez Steel, Southwest Capital’s CEO, indicated that the recent losses at the credit union were partially responsible for the deal collapsing. While Southwest Capital “is very profitable,” U.S. Eagle is “having trouble,” Steel told the Albuquerque Journal. “Those are the key components.”