Credit Union Tax Exemption Policy Back in Spotlight Following Another Acquisition of a Community Bank

Washington, D.C. (July 22, 2026) - Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the reported acquisition of a tax-paying community bank by a multibillion-dollar, tax-exempt credit union.

"The repeated acquisitions of tax-paying community banks by out-of-state credit unions taking advantage of their nonprofit status to go on a buying spree underscore the need for policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets.

"It is no surprise that the latest acquisition occurs between a Washington State-based credit union and an Oregon community bank, as this deal circumvents the recently implemented Washington State tax on the gross income generated from credit unions acquiring in-state banks. As some state legislatures act on these deals, tax-subsidized entities are still leveraging their unfair advantages far too often. ICBA's The Illusionists campaign pulls back the curtain on billion-dollar credit unions expanding beyond their congressionally mandated mission to undermine consumer choice and diminish access to robust credit in local communities.

"A data analysis from ICBA shows how community bank acquisitions by credit unions harm small businesses and local communities, while establishing that community banks consistently outperform credit unions in the very areas experiencing high rates of poverty that credit unions are specifically subsidized to serve. Since 2010, more than 80% of acquisitions involved a credit union with assets exceeding $1 billion, and nearly two-thirds of acquired banks saw an increase in net operating income in the five years leading up to the deal."

ICBA polling of U.S. adults shows that Americans support reforming credit union policies. According to the polling:

• 58% say credit unions that operate like banks should have to pay taxes like banks.

• 58% say Congress should investigate whether credit union tax and regulatory exemptions are still warranted.

• 60% of Republicans and 59% of Democrats say Congress should end the federal tax exemption for credit unions with more than $1 billion in assets.

ICBA's The Illusionists campaign-which appears on streaming, digital, and print platforms-highlights how large credit unions grow through acquisitions and regulatory advantages while accountability, tax fairness, and consumer choice disappear. The campaign website-creditunionsrevealed.com-features data, videos, frequently asked questions, and research highlighting the policy disparities that allow tax-exempt institutions to expand while competing directly with community banks.

About ICBA

The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation's community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America's community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers' financial goals and dreams. For more information, visit ICBA's website at icba.org.