Washington, D.C. (March 10, 2026) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the latest reported acquisition of a tax-paying community bank by a tax-exempt credit union, which comes amid the launch of ICBA’s “The Illusionists” national advocacy and marketing campaign on the harmful impact of large credit unions on local communities.
“The latest tax-exempt credit union acquisition of a tax-paying community bank demonstrates why ICBA launched its new The Illusionists campaign, which exposes how large credit unions’ are promoting a narrative of community service while aggressively expanding beyond their original mission and undermining local communities.
“Through this campaign, ICBA is pulling back the curtain to reveal how growth-obsessed credit unions are contributing to industry consolidation, reducing consumer choice, and weakening the very local economies they claim to support. Today’s announced acquisition shows this campaign could not come at a more critical time.”
ICBA’s The Illusionists campaign—which will appear on streaming, digital and print platforms—highlights how the credit union industry’s carefully crafted narrative masks a troubling reality: as large credit unions grow through acquisitions and regulatory advantages, accountability, tax fairness, and consumer choice disappear. The campaign website—creditunionsrevealed.com—features data, videos, frequently asked questions, and research highlighting the policy disparities that allow tax-exempt institutions to expand while competing directly with community banks.
A recent data analysis from ICBA shows these acquisitions are harming small businesses and local communities while community banks outperform credit unions in high-poverty areas. For instance, the analysis shows that Small Business Administration lending fell after nearly 80% of credit union acquisitions while mortgage denial rates increased following 61% of acquisitions.
With credit unions straying beyond their founding congressional mandate of serving people of modest means with a defined field of membership, such as those with the same church or employer, an ICBA policy resolution calls on policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets or to establish tax parity between credit unions and community banks.
ICBA looks forward to continuing to work with the administration and the 119th Congress to advance these critical reforms.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.