Credit union acquisition milestone demands Washington response

The surge in tax-exempt credit union acquisitions of taxpaying community banks that has increasingly crossed state lines has reached a new and concerning milestone.

The recent purchases of $489 million-asset Citizens Bank of Florida in Seminole County by $4 billion-asset Fairwinds Credit Union and $93-million Tempo Bank by $1.6-billion Scott Credit Union are the 100th and 101st credit union acquisitions of community banks since 2003.

Acquisitions like these decrease consumer access to local financial services while diminishing tax revenues that could be used to help bolster services in local communities. As policymakers look to fund infrastructure and other spending priorities, pressure is growing on Washington, D.C. to examine this troubling acquisition trend.