The Independent Community Bankers of America filed a Community Reinvestment Act protest this week against Anchorage, Alaska-based Global Credit Union’s planned acquisition of Renton, Wash.-based First Financial Northwest Bank.
According to the ICBA, the $231.2 million deal would be the largest ever CU-bank acquisition. In a Feb. 9 letter to FDIC Regional Director Paul Worthing, the ICBA urged the bank regulator to review Global Credit Union’s history of compliance with fair lending laws and evaluate complaints about the CU to consider whether the deal will “meet the convenience and needs of the community that will lose its bank.”
The ICBA called for Global Credit Union to face several requirements, including:
- Publicly disclosing total member fees in recent years
- Keeping community development lending and investment at the same level as First Financial Northwest
- Submitting information about investments and loans supporting affordable housing and community services for evaluation to Bank Merger Act requirements
- Undertaking voluntary public reporting and examination by a third-party auditor or the NCUA.
“The acquisition would expand the section of the financial services industry exempt from taxation and the CRA, harming taxpayers and affected low- and moderate-income communities,” the ICBA stated. “The combined institution would be unlikely to maintain First Financial Northwest Bank’s high level of community development lending and investment once it becomes CRA-exempt.”
The ICBA objection comes as more credit unions continue to acquire banks, including several so far this year in the Upper Midwest. Last month, Oshtemo, Mich.-based Advia Credit Union announced its plan to further expand in Illinois by acquiring Chicagoland-based NorthSide Bank. Also, Wabash, Ind.-based Beacon Credit Union announced its pending acquisition of Salem, Ind.-based Mid-Southern Savings Bank, and Moline, Ill.-based Empeople Credit Union announced its pending acquisition of Lomira, Wis.-based TSB Bank.