COLUMBUS, Ohio–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 reported, in a 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.”
Regulators Urged to Deny Approval
The OBL said it believes regulators should deny approval based on this statutory intent. If the transaction is not prohibited at the regulatory level, the OBL said it is “fully prepared” to challenge that decision in court.
“There are also significant public policy concerns,” the OBL stated. “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.”
A ‘Defining Moment’
“This is a defining moment for Ohio’s banking system,” OBL President and CEO Michael Adelman said in a statement. “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.”
Added OBL Chair Tony Davis of 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.”
