Thursday, March 31, 2016

More Community Banks to Be Acquired by Large Credit Unions

The Milwaukee Journal Sentinel has a story about more community banks to be acquired by large credit unions.

The article notes that while these transactions are still rare, they will become more commonplace.

According to Michael Bell, a mergers-and-acquisitions specialist with the law firm of Howard & Howard, this trend is not going to slow down.

In 2014, Landmark Credit Union (New Berlin, WI) acquired Hartford Savings Bank and earlier this year Advia Credit Union (Parchment, MI) announced a deal to take over Janesville-based Mid America Bank.

Bell expects to announce another large credit union acquisition of a community bank in Wisconsin.

However, as I have previously pointed out, these deals should be a two-way street. Unfortunately, the National Credit Union Administration's rules make it almost impossible for banks to acquire credit unions.

In addition, these transactions, where you have a tax exempt credit union take over taxpaying bank, will raise policy concerns about the credit union industry's tax exemption.

Read the story.

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