Washington, D.C. (July 24, 2025) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement after a second acquisition this week of a taxpaying community bank by a tax-exempt credit union. Both acquiring credit unions hold more than $1 billion in assets.
“When taxpaying community banks are acquired by billion-dollar, tax-exempt credit unions, further consolidating the financial services industry, consumers and small business owners lose. Lawmakers granted credit unions a full federal tax exemption on the condition they serve defined fields of membership, like teachers or firefighters in one region. But a growing number of credit unions have exploited this tax loophole to grow exponentially, purchase NFL stadium naming rights or finance private jets.
“Billion-dollar credit unions are responsible for more than 80% of community bank acquisitions, with nearly two-thirds of acquisitions involving a bank with a positive net operating income in the preceding five years. ICBA urges policymakers to review outdated policies that no longer serve the public’s best interest and end the federal tax exemption for credit unions with $1 billion or more in assets.”
Consumers support reforms to credit union oversight. Recent ICBA polling conducted by Morning Consult shows 62% of U.S. adults say credit unions that operate like banks should have to pay taxes like banks, and 62% support a congressional investigation of the credit union industry’s complete tax exemptions and light-touch regulatory status. As Congress weighed tax legislation this year, a May Bloomberg article captured lawmaker concerns about the full federal tax exemption for credit unions.
An ICBA policy resolution introduced earlier this year formally calls on policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets.
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.