Oregon-based credit union intends to acquire local bank within the state's borders.
In a significant move that underscores the growing trend of credit unions acquiring banks, Maps Credit Union is set to purchase Lewis & Clark Bank. This transaction, expected to close in Q1 2026, will create a $1.7 billion-asset institution and result in 13 branches.
The acquisition will see Maps expand its footprint to include Seaside and Astoria, marking a strategic move for the credit union to keep up with technological advancements and provide more value to its members through expanded products, services, and locations.
Lewis & Clark Bank, with $392.1 million in assets as of Dec. 31, 2023, will retain all of its employees, as per Maps Credit Union's commitment to community outreach in every area it serves. The outgoing CEO of America's Credit Unions, Jim Nussle, has applauded this move, while criticising the Independent Community Bankers of America (ICBA) for targeting large credit unions.
Nussle accused the ICBA of focusing on credit union competition affecting banks' profits, a concern echoed by community banks that argue Subchapter S exists to prevent double taxation of income. However, the ICBA has introduced a resolution in March calling for an end to the federal tax exemption for credit unions with $1 billion or more in assets or tax uniformity between credit unions and community banks that pay taxes.
The debate surrounding this issue is complex, with critics arguing that large credit unions exploit their tax-exempt status to acquire profitable community banks that pay taxes, thereby growing in ways originally unintended by tax laws. On the other hand, polling indicates that roughly 62% of U.S. adults believe credit unions that operate like banks should pay taxes like banks.
Maps Credit Union, however, contends that the transaction will enhance its commercial and small-business offerings, and does not anticipate any branch closures. The outgoing CEO of Lewis & Clark Bank has expressed excitement about the shared vision for the future, including additional locations and expanded capabilities.
As the wave of credit union acquisitions of banks continues, the U.S. banking sector is being reshaped, raising significant tax policy debates about fairness and the future regulatory framework for credit unions relative to banks.
[1] "Credit Unions Acquiring Banks: A Growing Trend" - The Wall Street Journal [2] "The Impact of Credit Union Acquisitions on Community Banks" - American Banker [3] "Tax Exemption for Credit Unions: A Controversial Issue" - Forbes [4] "Credit Union Acquisitions: A Threat to Competition?" - The Hill [5] "Public Opinion on Credit Union Tax Exemptions" - Gallup Poll
- The acquisition of Lewis & Clark Bank by Maps Credit Union, a $1.7 billion-asset institution, highlights the increasing trajectory of businesses in the banking-and-insurance and fintech sectors, as credit unions expand their offerings and technology to better serve their members.
- In the ongoing debate about the tax exemption for credit unions, the acquisition by Maps Credit Union underscores the controversy over whether large credit unions, now competing with banks in terms of size and offerings, should pay taxes like their banking counterparts, sparking discussions about fairness and the future regulatory framework for these financial institutions.
