Credit union bank acquisitions break record halfway through 2024

ICBA-opposed credit union acquisitions of taxpaying community banks have reached an annual record less than halfway through the year, according to a new report.

Report Details: S&P Global reported that total target assets of banks selling to credit unions has reached $7.21 billion in 2024, well above the 2022 record of $5.15 billion. The 12 deals so far this year also put 2024 on pace to exceed the 16 acquisitions in 2022.

Calls for Action: Following the latest acquisition last week, ICBA continued its call for policymakers to address the trend and its impact on local communities. In a national news release, ICBA continued calling on Congress to hold hearings, request a Government Accountability Office study on the credit union industry, and consider an “exit fee” on these acquisitions to capture the value of the tax revenue lost once the acquired bank’s business activity becomes tax-exempt.

Historical Precedent: ICBA also noted that Congress in 1951 revoked the tax exemption for building and loan associations, cooperative banks, and mutual savings banks, finding that these institutions operated much like commercial banks and should be taxed accordingly.

Momentum for Action: ICBA polling shows public support for reforming credit union policies, while states such as Tennessee, Colorado, Minnesota, Mississippi, and Nebraska have acted to restrict these deals.

Grassroots: Community bankers can use ICBA’s Be Heard grassroots action center to call on their members of Congress to hold a hearing on credit union policy. Additional resources are available on the ICBA website.