“Credit union purchases of community banks - which peaked at 21 in 2019 and are on pace to surpass that total this year - are getting the attention of state policymakers because credit unions don’t pay taxes, unlike their tax-paying community bank targets,” said Independent Community Bankers of America President Rebeca Romero Rainey in an opinion piece posted on the organization’s website June 9. Independent Community Bankers of America President Rebeca Romero Rainey To most customers, credit unions function just like banks do, but credit unions originally were created a century ago to serve a limited field of customers and banks are trying to prevent them from expanding their reach. Nationally, VyStar has been in the news for several months as the Heritage deal became a flashpoint in an ongoing fight between banks and credit unions. VyStar has been in the local news constantly for the past month because of problems with customer access to its online banking services. VyStar called off the deal amid pressure on financial regulators from banks to reject credit union acquisitions of commercial banks.įifteen months after VyStar agreed to buy Heritage, regulatory agencies had not acted on the merger application and there was no indication they would anytime soon. Just two hours after the companies’ joint announcement June 15 that they terminated VyStar’s planned acquisition of Heritage, the Jonesboro, Georgia-based bank announced it engaged an investment adviser to help it seek “strategic alternatives to enhance shareholder value.” This time, you can bet it will be seeking a commercial bank partner. wasted no time seeking a new merger opportunity after its breakup with Jacksonville-based VyStar Credit Union.
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