Former community banker shares the ‘why’ behind his decision to sell to a credit union

When Matt Reynolds’ family decided to sell Colchester State Bank in Illinois to a credit union, there were a lot of factors that played into their decision.  A new post on the America’s Credit Unions blog dives into why community banks choose to sell their assets to credit unions.  

With bankers in Washington, D.C. this week—banking lobbyists are claiming bank sales to credit unions are a growing problem and “hostile takeovers.” They fail to mention that these voluntary, market-based transactions require a vote from the community bank’s board of directors. In addition, statistics show bank sales to credit unions account for only 100 sales—compared to 2500 bank sales to banks - in the past 13 years. A message from America’s Credit Unions to Congress this week highlighted the misinformation.

For Reynolds, preserving the community’s financial health was the top priority when deciding on a buyer for their family-owned community bank. They found that Land of Lincoln Credit Union matched their vision perfectly.

Now operating as a credit union, there's an expanded range of affordable financial products and additional benefits available to members, employees and their Illinois community—including financial literacy programs and community sponsorships.  Reynolds says he would do it all again to preserve the financial options for the community that his family bank—and now the credit union—serve.  

Hear more about Reynolds’ story and read the full blog post.  America’s Credit Unions also has resources with more data and information about bank sales to credit unions.