Washington, D.C. (August 25, 2026) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the newly reported acquisition of a tax-paying community bank by a billion-dollar credit union.
“As another tax-paying community bank is set to be acquired by a tax-exempt credit union, taxpayers are now subsidizing a deal resulting in an organization with assets approaching $2 billion. The data is clear: community bank acquisitions by credit unions harm small businesses and reduce lending capacity in local communities, and community banks consistently outperform credit unions in the very areas experiencing high rates of poverty that credit unions are specifically subsidized to serve.
“Adding insult to injury, the banks targeted for acquisition are typically not experiencing business issues or financial stress, as nearly two-thirds of banks acquired since 2010 saw an increase in net operating income in the five years leading up to the takeover. ICBA’s The Illusionists campaign narrows in on billion-dollar credit unions and pulls back the curtain to show how they have expanded far beyond their congressionally mandated mission, undermining consumer choice and reducing access to robust credit in local communities.”
ICBA polling of U.S. adults shows that Americans support reforming credit union policies. According to the polling:
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58% say credit unions that operate like banks should have to pay taxes like banks.
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58% say Congress should investigate whether credit union tax and regulatory exemptions are still warranted.
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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.
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.