Ohio Banking Commission Takes Action on Assessments and Hicksville Transaction

06/10/26

First, the Commission voted to reduce bank assessments by 4% for the upcoming year. The reduction reflects the Division of Financial Institutions' continued commitment to operating efficiently while maintaining the strong supervisory framework that supports Ohio's state-chartered banks. The assessment reduction is welcome news for Ohio banks and demonstrates the Division's ongoing efforts to be a responsible steward of industry resources.

The Commission also adopted a formal resolution opposing the proposed acquisition of The Hicksville Bank by Indiana-based Interra Credit Union. In the resolution, the Commission urged the Federal Deposit Insurance Corporation (FDIC) to deny or decline to approve any application, notice, or other request for regulatory approval associated with the transaction. The Commission concluded that the proposal raises "substantial concerns regarding Ohio law, charter integrity, competitive equity, tax fairness, deposit insurance protections, and the continued strength and accountability of Ohio's banking system." An unofficial copy of the resolution can be found here.

The resolution specifically highlights concerns that Ohio law does not authorize an Ohio state-chartered bank to transfer substantially all of its assets and liabilities to a credit union and urges federal regulators to give full effect to Ohio's statutory framework governing state-chartered banks. The Commission further noted concerns about the transaction's impact on Ohio's tax base, the competitive imbalance created when a tax-exempt credit union acquires a tax-paying community bank, and the fact that Hicksville depositors would move from an FDIC-insured institution to a privately insured credit union.

In adopting the resolution, the Commission affirmed that Ohio's financial services marketplace should be governed by principles of safety and soundness, fairness, transparency, charter integrity, deposit protection, community accountability, and equal responsibility. The resolution also states that public policy should not allow tax-exempt financial institutions to use their preferential tax status to acquire tax-paying competitors, thereby removing community banks from Ohio's banking system and tax base.

The resolution will be transmitted to the FDIC Board of Directors, Ohio Superintendent of Financial Institutions, Ohio Department of Commerce Director, Governor of Ohio, President of the Ohio Senate, Speaker of the Ohio House of Representatives, members of Ohio's congressional delegation, and other relevant stakeholders.

The Commission's action represents another important development in the ongoing debate surrounding credit union acquisitions of community banks and sends a clear message that Ohio policymakers and banking leaders believe the transaction warrants heightened scrutiny from state and federal regulators.