U.S. Eagle Federal Credit Union will end its cannabis banking operations Nov. 1, closing a business it built over seven years.
The Albuquerque-based credit union, one of New Mexico’s largest, blamed the exit on too much cannabis banking competition rather than weak demand, according to the Albuquerque Journal.
The move shutters Aery Group, launched in 2019 as one of the first financial services providers for New Mexico’s then medical-only cannabis market.
Aery gave operators access to checking and savings accounts and let them deposit cash at branches across the state.
Are more banks working with cannabis businesses
U.S. Eagle President and CEO Michael Moore said cannabis banking no longer fits the credit union’s long-term strategy. He pointed to consolidation among the smaller operators Aery mostly served and a wave of competing institutions entering the space as reasons for the closure.
“It’s difficult to grow now without going out of state or into other markets,” Moore told the Journal.
Damien Padilla, owner of consulting firm Cannabis Driven Management, said at least 19 additional providers now work with cannabis businesses in New Mexico.
“Once people realized, ‘Hey, there’s other options out there,’ it kind of took away from their pie,” Padilla told the Journal.
What does it mean for SAFER Banking?
The exit complicates the long-running case for federal banking reform.
Advocates have argued for years that cannabis operators can’t get banking without a law like the federal SAFER Banking Act.
The New Mexico pictures suggest otherwise, at least in mature markets.
Financial Crimes Enforcement Network data backs that up.
A record 831 banks and credit unions reported serving cannabis businesses in early 2025 – still a small slice of total U.S. financial institutions.
But other states also have seen similar pullbacks.
In Maine, for example, cPort Credit Union moved last year to close hundreds of caregiver accounts, citing evolving regulatory expectations, according to WABI.
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Moore didn’t rule out a return to cannabis as federal policy shifts.
Rescheduling efforts and other changes haven’t yet eased the compliance load that keeps many institutions cautious.
“We’re not trying to shut the door permanently at all,” Moore told the Journal. “Definitely not a no, but a time-will-tell approach.”
