Washington, D.C. — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on Tuesday’s acquisition of a tax-paying community bank by a tax-exempt credit union.
“With large tax-exempt credit unions announcing two acquisitions of Main Street community banks in as many days following last year’s record number of deals, ICBA and the nation’s community bankers continue our call for policymakers to address the harmful impact these deals have on local communities.
“Following our recent data analysis detailing the how these deals are harming small businesses and local communities while community banks outperform credit unions in high-poverty areas, it is time for Congress to eliminate the federal tax exemption for credit unions over $1 billion in assets.”
ICBA’s analysis of publicly available data shows:
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More than 80% of acquisitions since 2010 involved a credit union with more than $1 billion in assets, while more than 40% involved a credit union headquartered in a different state than the acquired bank.
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In areas where community banks participated in Small Business Administration lending programs, SBA lending fell after nearly 80% of credit union acquisitions.
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Total mortgage applications decreased in 57% of affected service areas following an acquisition, while the amount loaned per approved mortgage application decreased in 61% of acquisitions and mortgage denial rates increased in 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, ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress urge lawmakers to address credit union tax and regulatory advantages. Further, a 2025 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 Trump 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.