Hoosier Banker 33 nine such deals throughout all of 2018. Four more deals have been announced since the beginning of July. Michael Emancipator, regulatory counsel for the ICBA, called the trend “startling.” The NCUA has allowed credit unions “to take advantage of their uneven playing field” and expand aggressively, he said in an interview. Credit unions are not subject to the Community Reinvestment Act, which Emancipator said can make it easier for them to buy banks. Banks, on the other hand, must go through a community feedback process regarding CRA. “Effectively, [community groups] are closed out of the transaction, which is a bit alarming,” said Emancipator. And he expects this trend of credit unions acquiring banks to continue. “Until something changes, it’s possible that this will continue for the foreseeable future,” Emancipator said. “Which is just going to exacerbate the problem of a consolidating industry.” Credit unions control 8.4% of total Reprinted with permission from S&P Global Market Intelligence, Aug. 26, 2019. There’s lending, and there’s intelligent lending. The tools to succeed in every stage of your lending lifecycle. Learn more at spglobal.com/commercial-lending Copyright © 2019 S&P Global Market Intelligence Inc. All rights reserved. Market Insight & Lead Generation Pricing & Total Relationship Optimization Portfolio & Lender Performance Analysis Credit Surveillance & Portfolio Tracking Credit Analysis & Assessment banking assets in the U.S., according to S&P Global Market Intelligence data. “While credit unions are a very small component of the overall banking assets, they’re fairly large if you’re a community banker,” said Charley McQueen, founder, president and CEO of McQueen Financial Advisors II Inc. McQueen said many banks with $250 million to $300 million in assets are looking to sell, and while acquisitions of this size can be a hassle for a larger bank, they are often a good fit for credit unions. “Credit unions are eager to grow, and there are a number of them of the size that a $250 million acquisition is a substantial acquisition,” McQueen said. As the community bank industry consolidates in the face of expensive regulation, credit unions are trying to fill the void, he added. “I don’t blame the credit unions, I blame the bank regulation,” McQueen said. HB IN MEMORY OF Patrick C. Botts, 55, president and chief operating officer of MutualBank, Muncie, and executive vice president of Mutualfirst Financial Inc., died Oct. 12. He also served as president of the MutualBank Charitable Foundation. Botts joined Mutual Federal Savings Bank in 1986. He was active in the community as chairman of the board of the Muncie BY5 Initiative; vice chairman of the Greater Muncie Habitat for Humanity; and committee member of the United Way of Delaware & Henry Counties, for which he was a past chair. Additionally, he served multiple organizations including Heart of the City and the Muncie-Delaware County Economic Development Alliance. Botts was the 2017 recipient of the David Sursa Leadership Award and a graduate of Ball State University. HB
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