The following letter to the editor was submitted by Lars Eller, President & CEO of F&M Bank in Archbold.
Dear Editor,
For generations, community banks like ours have served northwest Ohio with one mission: local decision-making, local investment, and accountability to the communities we call home. That is why the proposed acquisition of The Hicksville Bank by Interra Credit Union deserves serious public scrutiny.
This debate is not about whether credit unions should exist or whether they provide value to their members. They do. The issue is whether Ohio law allows an Ohio-chartered bank to transfer substantially all of its assets and liabilities to an out-of-state credit union when Ohio banking statutes do not list credit unions as permissible counterparties.
That distinction matters.
Supporters of this transaction argue that it is voluntary. But voluntary does not automatically mean lawful. Boards and shareholders cannot approve transactions that fall outside the framework established by Ohio law. Regulators have a responsibility to respect the limits the General Assembly placed on these transactions.
This also is not comparable to traditional bank mergers. Ohio law clearly contemplates bank-to-bank acquisitions. What is being proposed here is fundamentally different: a tax-paying, FDIC-insured Ohio community bank becoming part of a tax-exempt, privately insured, out-of-state credit union.
There are also real implications for consumers and taxpayers. Customers would move from FDIC insurance to private share insurance. Local tax revenue generated by a community bank will disappear. And if this transaction is approved, it creates a precedent for similar acquisitions across Ohio.
We’re simply asking our community to continue supporting the local banks that have supported northwest Ohio for generations. Community banks pay local taxes, invest in local businesses and schools, and keep decisions close to home. This proposal would move those resources to an out-of-state credit union that doesn’t contribute to our communities in the same way.
Community banking has always depended on clear rules, fair competition, and public trust. Those principles should not be set aside here.
Signed,
Lars Eller, President & CEO
F&M Bank, Archbold, Ohio