A former National Credit Union Administration official continued an ongoing series of blog posts raising concerns over credit union acquisitions of community banks.

Latest Post: In his latest post, Callahan & Associates co-founder and former NCUA Central Liquidity Fund President Chip Filson said:

  • Fear of missing out, or FOMO, is driving many credit unions to consider bank purchases.

  • Credit unions are buying banks at multiples of book value, or at prices much higher than recent market valuations.

  • These all-cash purchases provide little transparency for credit union members or analysts to evaluate how the decisions will succeed financially.

Prior Criticism: In previous blog posts, Filson has noted these transactions convert firms subject to market monitoring into private entities and exclude credit union member-owners.

ICBA Op-ed: ICBA Chairman Brad Bolton recently wrote in Business Alabama (free registration required) that each credit union purchase of a community bank expands the segment of the financial services sector exempt from taxation and the Community Reinvestment Act—and Congress should investigate.

LinkedIn Article: The op-ed follows a recent LinkedIn article from Bolton on the resurgence of these acquisitions and how they harm local economies, including underserved communities.

ICBA Campaign: Meanwhile, ICBA is running a digital campaign featuring a recently released ICBA video urging Americans to advocate congressional hearings on how credit unions are taxed and regulated.

Grassroots: Community bankers can continue urging Congress to hold hearings on the credit union tax exemption using a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.