Friendly Fire

Many bankers, feeling put upon by what they say is a tax-free ride the federal government gives credit unions, aren't likely to join a unity parade with their financial services brethren anytime soon.

But when credit union executives show up with acquisition offers and lots of cash, community bank officials are listening.

That's where Encore Bank CEO Tom Ray found himself earlier this year, after Lake Michigan Credit Union reached out to acquire the profitable Naples-based community bank, with $396.7 million in assets. Not long after Grand Rapids-based Lake Michigan's unsolicited all-cash offer, “we found we had common cultures,” Ray says, adding the offer was “a good value to my investors.”