US Eagle Federal Credit Union to Discontinue Cannabis Banking Services Amid Growing Competition
Albuquerque-based US Eagle Federal Credit Union, one of the largest credit unions in New Mexico, has announced that it will be shutting down its cannabis banking arm, Aery Group, effective November 1. The decision comes as the cannabis industry has seen an influx of financial services providers, making it challenging for US Eagle to remain competitive.
Aery Group was established in 2019 to serve the state’s medical cannabis industry. It provided cannabis operators with checking and savings accounts, as well as deposit services at US Eagle’s locations across New Mexico. However, US Eagle’s president and CEO, Michael Moore, stated that servicing the cannabis industry is no longer part of the credit union’s long-term strategy.
Moore cited the consolidation of smaller cannabis operators and the entry of new financial institutions into the market as factors contributing to the decision. “It’s difficult to grow now without going out of state or into other markets,” he said.
Industry insider Damien Padilla, owner of Cannabis Driven Management, noted that at least 19 additional providers are now actively working with cannabis businesses in New Mexico, up from just a handful before the adult-use market launched in 2022. “Once people realized there were other options out there, it kind of took away from their pie,” Padilla said.
The credit union’s decision to exit the cannabis banking market comes roughly a year after its proposed acquisition of Southwest Capital Bank collapsed. Moore emphasized that the failed acquisition did not play a role in the closure of US Eagle’s cannabis banking arm.
While federal shifts on cannabis policy, including efforts to reschedule cannabis, have not yet had a significant impact on the industry, US Eagle may reconsider its decision to exit the market if the legal landscape evolves. “We’re not trying to shut the door permanently at all,” Moore said. “Definitely not a no, but a time-will-tell approach.”
