COLUMBUS, Ohio—The Ohio Bankers League is escalating its opposition to the proposed acquisition of $225-million The Hicksville Bank by $2-billion Interra Credit Union, warning it is prepared to pursue legal action to block the deal as it moves through regulatory review.
As CUToday.info recently reported, the Goshen, Ind., CU reached across state lines to buy the Hicksville, Ohio-based bank.
In statements and releases, the OBL said it will “use all available tools,” including regulatory challenges, legislative action and, if necessary, litigation, arguing the transaction may conflict with Ohio law governing who can acquire state-chartered banks. The group maintains that existing statutes limit eligible buyers to banks and FDIC-insured institutions, a framework it says does not include credit unions.
The dispute has quickly evolved into a broader industry fight, with bankers saying the deal is a test case for whether tax-exempt credit unions should be allowed to expand through bank acquisitions. OBL President and CEO Michael Adelman called it a “defining moment” and said the league will act to prevent a precedent it believes could undermine competition and reduce state tax revenues, Tyfone reported.
As previously reported by CUToday.info, the transaction—an all-cash purchase—would mark the first credit union acquisition of a bank in Ohio and extend Interra’s footprint into northwest Ohio.