Following Latest Community Bank Acquisition Fueled by Credit Union Tax Exemption, ICBA Continues Call for Policy Response

Washington, D.C. (Aug. 29, 2025) - Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the latest acquisition of a tax-paying community bank by a tax-exempt credit union.

"Following last year's record number of community bank acquisitions by tax-exempt credit unions, the continuation of this troubling trend in 2025 demonstrates why the growing skepticism of credit union tax and regulatory exemptions must evolve into policymaker action.

"Amid reports on credit unions abandoning their mission with 'Wall Street-style' behavior and increasingly acquiring community banks thousands of miles away, ICBA continues calling on Congress to eliminate the federal tax exemption for credit unions over $1 billion in assets."

With credit unions straying beyond their founding congressional mandate of serving people of modest means with a defined field of membership, such as those with the same church or employer, consumers increasingly support reforms to credit union policies. For instance, ICBA polling conducted by Morning Consult earlier this year found 62% of U.S. adults support a congressional investigation of the credit union industry's tax and regulatory exemptions.

ICBA's "Repair, Reform, and Thrive" plan and open letter to the 119th Congress urge lawmakers to address credit union tax and regulatory advantages. Further, a 2025 ICBA policy resolution calls on policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets or to establish tax parity between credit unions and community banks. ICBA looks forward to continuing to work with the Trump administration and the 119th Congress to advance these critical reforms.

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.