COLUMBUS, Ohio — An Ohio regulator has determined Hicksville Bank has the legal authority to sell its assets to Indiana-based Interra Credit Union, clearing a significant hurdle for the proposed transaction while stopping short of granting final approval.
As the CU Daily earlier reported here, the Ohio Bankers League has said at the time the planned acquisition was announced in May that it planned to use available tools, including regulatory engagement, legislative action, “and, if necessary, litigation,” to stop the planned acquisition of the bank..
The Ohio Division of Financial Institutions confirmed the bank has the authority to proceed with the proposed asset sale, according to the Ohio Credit Union League, which said the determination supports its position that credit unions are legally permitted to purchase bank assets in the state.
Final regulatory approval of the transaction remains pending.
‘Victory for Community’
Ohio Credit Union League President Paul Mercer called the regulator’s determination a victory for the Hicksville community and criticized banking industry opposition to the deal.
“The decision from ODFI represents a meaningful win for the community of Hicksville and for local residents,” Mercer said. “Interra Credit Union will provide the Hicksville community with the same level of financial service and community investment they have come to expect, while also maintaining jobs and keeping members’ money local.”
Mercer accused the Ohio Bankers League of attacking regulators because of what he characterized as the weakness of its legal position.
“The fact that the bank lobby in Columbus has already decided to resort to attacks on impartial decision makers only underscores the weakness of their position,” Mercer said.
He added that efforts to delay or block the transaction would burden the Hicksville community and its residents.
“There are also significant public policy concerns,” the Ohio Bankers League stated earlier. “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.”
League Points Out Transaction Was Voluntary
The Ohio Credit Union League emphasized that Hicksville Bank’s decision to sell to Interra was voluntary and was made by the bank’s board.
The league said Hicksville Bank’s shareholders recognize the benefits credit unions can provide their members.
Credit union acquisitions of bank assets have occurred previously in Ohio, the league said. It cited a 2019 transaction in which an Ohio credit union purchased bank assets in a deal that included deposits, other assets and employees and received approval from state regulators.
The league said the Hicksville transaction would similarly benefit customers by maintaining access to financial services while preserving a community-focused financial institution, local jobs and economic activity.
Interra Credit Union is based in Goshen, Indiana, while Hicksville Bank is headquartered in Hicksville, Ohio, near the Indiana border.
The Ohio Division of Financial Institutions’ determination addresses whether Hicksville Bank has authority under Ohio law to sell its assets to Interra. The transaction must still receive the remaining regulatory approvals before it can be completed.
