COLUMBUS, Ohio–The Ohio Credit Union League has responded to a trade association’s threat to push for legislative action and/or litigation to stop the acquisition of a bank in Ohio by an Indiana-based credit union by saying claims made by the bankers are wrong and that ultimately it is the bank’s customers and the state’s consumers who will benefit.
As the CU Daily reports here, the Ohio Bankers League said it plans to use available tools, including regulatory engagement, legislative action, “and, if necessary, litigation,” to stop the planned acquisition of the Hicksville Bank in Ohio by Indiana-based Interra Credit Union.
As the CU Daily also reported, in an earlier statement the $2-billion Interra described the proposed acquisition as a strategic expansion into Northeast Indiana and Northwest Ohio.
“This issue is not only about competition—it is about adherence to Ohio’s statutory framework governing bank ownership and acquisitions,” the Ohio Bankers League said in a statement on its website. “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.”
The CU Daily has additional coverage of the Ohio bankers’ group’s statements here.
‘Best for Everyone Involved’
The Ohio CU League has responded by saying the purchase is in the best interests of everyone involved, and that the bankers group is motivated by politics.
“By initiating this sale, Hicksville Bank recognized what 3.4 million Ohio credit union members already know: as member-owned, not-for-profit financial institutions, credit unions are uniquely invested in the local communities they serve,” said Ohio CU League President and CEO Paul Mercer. “Just like in 2019 when Ohio regulators approved the sale of a Cincinnati-area bank branch of an Indiana bank to an Ohio credit union, Hicksville Bank’s decision to sell to Interra Credit Union will benefit not only the bank’s current customers who maintain access to critical financial services, but also the Hicksville community and the local economy. This sale represents the best business decision for everyone involved, and we’re disappointed that the bank lobby is threatening to harm Hicksville Bank, Interra Credit Union, and the Hicksville community with frivolous and politically-motivated litigation.”
Additional Response to Bankers Group
The Ohio league further stated:
- No one forced Hicksville Bank to sell to Interra Credit Union. The OCUL said the board of Hicksville Bank chose to do so because their shareholders recognize the important benefits credit unions provide to their members, and that the bank could have chosen any Ohio bank to sell their assets to; instead, they found the most value in selling to a credit union.
- Sales of Ohio–based banks to credit unions are not new. The league pointed to a 2019 sale of a branch of United Fidelity Bank to Superior Credit Union, a deal it noted was approved ty the state’s regulators. The OCUL said credit unions have purchased banks in states across the country, “because bank shareholders recognize the value that credit unions provide to their members and the communities they serve.”
- Credit unions do pay taxes. The OCU said the bankers’ claims CUs do not pay taxes are false, but that “unlike banks, as not-for-profit institutions, any profits credit unions earn are reinvested in their communities rather than padding the pockets of shareholders.”
- The sale will ultimately benefit current customers. The Ohio league said that Hicksville Bank customers will benefit by continuing to have “access to the financial services they need; the community that keeps a community-minded institution; and the local economy that keeps jobs and a local small business in operation.”
