Credit unions announce deals for two community banks

Core Insights - The trend of credit unions acquiring banks is gaining momentum, although it is unlikely to match the record of 22 acquisitions in 2024 [1] - Recent acquisitions include GECU Credit Union acquiring Bank of the Southwest and Community First Credit Union acquiring First Southern Bank, indicating a resurgence in credit union-bank transactions [2][3] Industry Reactions - The Independent Community Bankers of America expressed strong opposition to these acquisitions, calling for Congress to impose taxes on credit unions with assets exceeding $1 billion, as they currently enjoy a federal income tax exemption [3][4] - The community banking sector is concerned about the negative impact of these acquisitions on local communities [4] Future Outlook - Experts predict that credit unions will continue to acquire banks, with expectations of at least one more acquisition announcement in 2025 and robust merger activity in 2026 [5][6] - Michael Bell, a legal expert in financial institutions, noted that the deal flow for credit union-bank transactions is expected to remain strong [7][8] Financial Performance - The Bank of the Southwest reported a net income of $2 million for the first half of 2025 and $4.2 million for all of 2024, while GECU's profit for the first nine months of 2025 was $46.2 million [9][11] - Community First's acquisition of First Southern Bank is aimed at enhancing its commercial lending capabilities and expanding its market presence, with projected assets of $3.3 billion post-acquisition [9][10]