The Nebraska Department of Banking and Finance denied an application by $7.9 billion-asset GreenState Credit Union in North Liberty, Iowa, to acquire $395 million-asset Premier Bank in Omaha.
Agency Decision: After Nebraska community bankers formally objected to the application, the state banking agency said this week that:
Only chartered financial institutions organized to do business in Nebraska may participate in a cross-industry acquisition or merger.
Premier did not show express power under federal law to sell substantially all its assets under the proposed acquisition, which the agency said would terminate—not carry on—the business of banking.
Next: Premier has 30 days to appeal the order.
ICBA Position: ICBA last year spoke out against the application and other interstate acquisition proposals as part of its ongoing call for Congress to investigate tax-exempt credit unions acquiring taxpaying community banks.
Ongoing Campaigns: ICBA last month released a new video urging Americans to advocate congressional hearings on how credit unions are taxed and regulated. Shorter versions of the video will be used for a social media marketing campaign, which follows an ICBA print and digital ad campaign on credit unions last fall.
Grassroots: Community bankers can continue urging Congress to hold hearings on credit union acquisitions via a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.