WASHINGTON, D.C. — 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.
“The latest acquisition of a tax-paying community bank by a larger, out-of-state credit union further validates the importance of this week’s ICBA Capital Summit, which will feature meetings between community banker attendees and policymakers on ICBA’s call to tax credit unions with over $1 billion in assets.
“As ICBA lays out in our recently launched The Illusionists campaign, large credit unions are promoting a narrative of community service while aggressively expanding beyond their original mission and undermining local communities. Through this campaign, we continue pulling back the curtain on how growth-obsessed credit unions are contributing to industry consolidation, reducing consumer choice, and weakening the local economies they claim to support.
“Given the harmful impact on local communities of the tax exemption for large credit unions, today’s announced acquisition shows the importance of our campaign and this week’s meetings with policymakers.”
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. Further, newly released ICBA polling of U.S. adults shows that Americans support reforming credit union policies. According to the polling:
- 58% say credit unions that operate like banks should have to pay taxes like banks.
- 58% say Congress should investigate whether credit union tax and regulatory exemptions are still warranted.
- 60% of Republicans and 59% of Democrats say Congress should end the federal tax exemption for credit unions with more than $1 billion in assets.
ICBA’s The Illusionists campaign—which appears on streaming, digital and print platforms—highlights how large credit unions grow through acquisitions and regulatory advantages while 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.
ICBA looks forward to continuing to work with the administration and the 119th Congress to advance credit union policy 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.
