OBL Responds to Credit Union Acquiring Ohio Bank

04/29/26

The Ohio Bankers League is aware of a potential transaction involving an out-of-state credit union seeking to acquire an Ohio-chartered bank. OBL is directly informing its membership that it will oppose this transaction using all available tools, including regulatory engagement, legislative action, and, if necessary, litigation.

This issue is not only about competition-it is about adherence to Ohio's statutory framework governing bank ownership and acquisitions. Ohio law clearly defines eligible acquirers of state-chartered banks as other banks and FDIC-insured institutions. Credit unions are not included in that framework. Legal analysis confirms Ohio's structure is consistent with other states that have blocked similar transactions.

OBL believes regulators should deny approval based on this statutory intent. If the transaction is not prohibited at the regulatory level, OBL is fully prepared to challenge that decision in court.

There are also significant public policy concerns. Credit unions operate with a tax exemption that creates a 25-30% competitive advantage, allowing them to accumulate capital and pursue acquisitions that tax-paying institutions cannot. When a bank is acquired, it is permanently removed from the tax base, further reducing public revenue. Ohio already forgoes an estimated $20 million annually due to the credit union tax exemption.

Statement from OBL President & CEO Michael Adelman:
"This is a defining moment for Ohio's banking system. We will use every tool available to ensure the law is followed and to prevent a precedent that undermines fair competition and the state's tax base."

Statement from OBL Chair Tony Davis, Peoples State Bank:
"Our members compete every day while paying taxes and supporting their communities. Allowing tax-exempt institutions to acquire those banks is fundamentally unfair and cannot stand."

We will continue to keep members informed as this situation develops.