Washington, D.C. (June 18, 2021) — The Independent Community Bankers of America (ICBA) today reinforced its call for Congress to investigate tax-exempt credit unions acquiring taxpaying community banks following a resurgence in interstate acquisitions.
The latest acquisitions include:
“Congress granted credit unions a tax exemption to serve people of modest means—not to buy taxpaying community banks and finance private airplanes,” ICBA President and CEO Rebeca Romero Rainey said. “These transactions—facilitated by a tax exemption that allows credit unions to make inflated purchase offers well above the book value of the acquired banks—are the latest to eliminate locally based lenders, further consolidate the banking industry, and cut regulatory safeguards for low- and moderate-income consumers.”
Credit union acquisitions of community banks have a demonstrably negative impact on local communities and taxpayers.
To fully understand the impact of this deeply concerning acquisition trend, ICBA is calling on Congress to:
For more information, visit www.icba.org/wakeup.
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.