accepting the best offer — their fiduciary responsibility is to their shareholders, not taxpayers at large. It’s disappointing that many of our elected officials appear apathetic about the loss of tax revenue resulting from the shift of activity from community banks to credit unions while simultaneously offering legislation to increase the tax burden on banks of all sizes. Where is the concern that several million dollars of tax revenue is re-routed to the bottom line of a credit union? Credit union assets have topped $2 trillion nationwide, and that number is growing rapidly. In particular, credit unions have focused on growing their business lending portfolios, an activity never considered when credit unions were originally granted their tax-exempt status. Those responsible for the public treasury could introduce legislation to prevent the sale or to require the purchasing credit union to compensate the state for the loss of revenue. But … silence. It’s disappointing that our elected officials appear apathetic that the CRA investments they are so eager to require of community banks could fizzle to nothing under a credit union. They could change regulations to require the same CRA investment from all credit unions or, at the very least, require the acquiring credit union to adopt the CRA requirements from the bank they are purchasing. But … silence. Thankfully, ICBA is not silent and is leading the charge to draw attention to and prevent the continued loss of community banks across the nation. In a recent post on X, ICBA noted that 20% of bank acquisitions are now by tax-subsidized credit unions. ICBA also filed a Community Reinvestment Act protest with the FDIC, saying that credit unions acquiring community banks “expand the section of the financial services industry exempt from taxation and the CRA, harming taxpayers and affected low- and moderate-income communities.” These issues are indeed best fixed at the federal level. A statechartered credit union could change to a federal charter if it doesn’t like more restrictive state regulations. If it continues, this rapid acceleration of credit unions acquiring community banks and the ensuing loss of choices, tax revenue and community investment will eventually disappoint even elected officials and consumers. CONFERENCE SERIES MAY 14-15 Entire bank joins for only $595! 2024 Spring Scan the QR code to register today! CURRENCY | 5
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