The apathy about the increasing trend for community banks to sell to credit unions is disappointing. While it’s happening nationwide, in Washington state, one community bank sold to a credit union in 2019, and there are two more pending. Community banks are the primary lenders to small- and medium-sized businesses in America. If a community bank disappears from a community, will the credit union fill the gap? Will the credit union continue the community bank’s CRA investments? Who is going to make up the loss of tax revenue? Certainly not the credit union, which is exempt from both Washington state’s B&O tax and federal income tax. Losing a community bank to a credit union does impact consumers with the loss of banking services, taxes and community investment. However disappointing, many consumers don’t understand the differences in financial institutions. In general, consumers want their money to be safe and easily accessible, and many don’t care who provides it. Credit unions traditionally had no ability to raise capital from investors, so their growth was fueled by retained profits. Now, it seems fast-growing ones have found a shortcut: acquiring the assets of a community bank by purchasing it directly, rather than the slow process of drawing away business with better rates enabled by their tax-free status. However disappointing, you can’t blame the board of a community bank for KATHY SWENSON, CBW PRESIDENT AND CEO Credit Union Bank Acquisitions A Disappointing Trend Losing a community bank to a credit union does impact consumers with the loss of banking services, taxes and community investment. PRESIDENT’S MESSAGE 4 | CURRENCY
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