U. S. Eagle Federal Credit Union to close cannabis banking arm

U. S. Eagle Federal Credit Union, a major institution based in Albuquerque, New Mexico, has announced it will close its cannabis banking arm, the Aery Group, effective November 1. The decision is attributed to increased competition within the sector and a consolidating client base.

Launched in 2019, the Aery Group was among the first financial services providers in New Mexico to serve the cannabis industry, offering checking, savings, and cash deposit services. Michael Moore, president and CEO of U. S. Eagle, stated that servicing the cannabis industry is not part of the institution’s long-term strategy and noted the difficulty of expanding the service without entering other markets.

Industry experts note that the number of financial providers working with cannabis businesses in New Mexico has grown significantly, with at least 19 providers currently active. While the closure follows a failed attempt by U. S. Eagle to acquire Southwest Capital Bank, leadership indicated that the acquisition failure was not a factor in the decision to close the Aery Group.