A proposed acquisition of American National Bank-Fox Cities by Landmark Credit Union has ignited a dispute between Wisconsin’s banking and credit union industries, with the Wisconsin Bankers Association (WBA) alleging an unfair advantage for tax-exempt credit unions and the Wisconsin Credit Union League defending the deal as a benefit to consumers.
The conflict arose after Landmark Credit Union announced last week its intent to acquire American National Bank-Fox Cities for $419 million in assets. Rose Oswald Poels, president and CEO of the WBA, responded with a statement expressing alarm, arguing the acquisition exemplifies a national trend of community banks being absorbed by larger, tax-exempt credit unions, ultimately shifting the tax burden to other payers.
“Unlike banks, credit unions do not pay any state or federal income taxes,” Oswald Poels stated. “all of us tax-paying individuals and businesses will bear an increased tax burden to support needed government services.”
The Wisconsin Credit Union League swiftly countered the WBA’s claims, characterizing them as “dubious” and an attempt to restrict consumer financial choices. The League pointed out that banks organized as S-corporations as well avoid corporate income taxes and that the selling bank, American National Bank-Fox Cities, was structured as an S-corporation. The League highlighted that of the 36 bank sales in Wisconsin since 2020, 31 were bank-to-bank acquisitions, involving a total of $15 billion in assets – significantly more than the less than $2 billion involved in bank-to-credit union deals.
The WBA maintains that the mergers and acquisitions landscape is fundamentally flawed, citing the tax advantages enjoyed by credit unions as creating an uneven playing field. Oswald Poels asserted that banks attempting to acquire other banks face insurmountable obstacles, with their “reasonable, competitive bids” being dismissed in favor of offers from large credit unions. She characterized the current process as no longer representing a free market.
“No tax-paying bank has a fair opportunity to keep a tax-paying bank on the tax rolls with large, multi-billion dollar credit unions at the merger table offering ridiculous multiples to secure a deal,” Oswald Poels said.
Timothy Mackay, President and CEO of Landmark Credit Union, framed the acquisition as a strategic move to expand the credit union’s presence in northeastern Wisconsin. Landmark opened a loan production office in Appleton last year, and Mackay stated the acquisition of the Fox Cities bank would “accelerate our growth” in the region.
The deal is expected to bring Brookfield-based Landmark Credit Union’s total assets to over $8 billion, according to the WBA. The League and the WBA have both released full statements outlining their respective positions, signaling a continuing clash over the future of financial institutions in Wisconsin.
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