Oregon credit union set to acquire state bank
Maps Credit Union to Acquire Lewis & Clark Bank, Expanding Footprint and Offerings
Maps Credit Union, a community-focused financial institution, has announced its intention to acquire Lewis & Clark Bank. This move will see Maps Credit Union expand its operations to include the cities of Seaside and Astoria.
Lewis & Clark Bank, with its 13 branches, currently has assets totalling $392.1 million, as of December 31, 2023. The acquisition is expected to close in Q1 2026, at which point the combined institution will boast $1.7 billion in assets.
Jeffrey Sumpter, the outgoing CEO of Lewis & Clark Bank, expressed his excitement about the shared vision for the future, including additional locations and expanded capabilities. He believes this merger will bring significant benefits to both institutions' members.
The acquisition of banks by credit unions, such as this one, has become a growing trend as a strategy for expansion. However, it has raised regulatory and competitive concerns, particularly from trade groups like the Independent Community Bankers of America (ICBA).
The ICBA argues that credit unions’ federal tax exemption gives them an unfair competitive advantage over taxpaying banks when bidding for bank purchases, potentially leading to "taxpayer-subsidized consolidation" of the financial services market.
However, Maps Credit Union's CEO contends that the acquisition will enhance its commercial and small-business offerings, allowing it to provide more value to members in the form of expanded products, services, and locations.
It is important to note that credit unions and banks operate under distinct regulatory frameworks and licensing regimes. Credit unions acquiring banks (whole-bank purchase) require appropriate regulatory approval and licensing, overseen by entities such as the National Credit Union Administration (NCUA) for federal credit unions and state regulators for state-chartered credit unions. Banks are regulated under their banking regulators (federal or state), with their own licensing processes for acquisitions.
Regulatory assessments vary significantly between credit unions and banks. For example, in the California Department of Financial Protection and Innovation (DFPI) jurisdiction, credit unions face assessments at rates lower than banks ($1.02 per $1,000 of assets for credit unions versus $2.08 per $1,000 for banks in 2025-2026).
Maps Credit Union remains committed to community outreach in every area it serves and plans to retain all Lewis & Clark employees. The union also intends to use the increased scale from the acquisition to grow and keep up with technology advancements.
Jim Nussle, the outgoing CEO of America's Credit Unions, criticized the ICBA for targeting large credit unions, arguing that the targeting is due to credit union competition affecting banks' bottom lines. He further accused banks of taking advantage of taxpayers for their own profit.
Nussle's message, however, was met with criticism from the ICBA, with its argument that the federal tax exemption gives credit unions an unfair competitive advantage. This ongoing debate highlights the complex regulatory landscape governing credit union and bank acquisitions in the United States.
- The acquisition of Lewis & Clark Bank by Maps Credit Union will expand their business operations, not only geographically but also in the banking-and-insurance sector, as the combined institution will offer a broader range of financial services.
- The growing trend in the industry of credit unions acquiring banks like Lewis & Clark Bank has sparked debates and concerns, with groups like the ICBA arguing that the federal tax exemption for credit unions provides an unfair competitive advantage in finance, potentially leading to market consolidation.
