Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey has issued a statement regarding the acquisition of a Kentucky bank by a Tennessee-based credit union. This marks the 19th such acquisition by tax-exempt credit unions in 2024, setting an annual record.

"This latest deal of a Tennessee-based credit union acquiring a Kentucky bank comes months after Tennessee enacted a law barring credit union acquisitions of the state’s banks," stated Romero Rainey. She emphasized the growing scrutiny from policymakers and the public on these transactions, highlighting the need for federal intervention.

Romero Rainey noted that the Federal Deposit Insurance Corporation (FDIC) has recently approved a policy on bank mergers that calls for additional scrutiny on deals involving credit unions, aligning with ICBA's advocacy efforts. She also referenced ICBA polling conducted by Morning Consult, which found that "61% of U.S. adults — including 70% of Democrats and 64% of Republicans — say Congress should investigate whether credit unions should be able to acquire banks given credit unions’ tax and regulatory exemptions."

The ICBA is urging Congress to hold hearings and consider implementing an "exit fee" on such acquisitions to recoup lost tax revenue. Romero Rainey pointed out historical precedents where Congress revoked tax exemptions for certain financial institutions, suggesting similar actions could be warranted today.

ICBA continues its mission to support community banks through advocacy, education, and innovation. These banks play a vital role in local economies by providing credit and fostering economic growth.