Indiana credit union moves to acquire Ohio community bank.
The deal reflects a growing wave of credit union acquisitions of banks, a shift that has drawn sharp criticism from industry trade groups.
Interra Credit Union, a nearly $2 billion-asset institution based in Goshen, Ind., has reached an agreement to acquire The Hicksville Bank, a small community lender in northwest Ohio, in a move that underscores the steady expansion of credit unions into traditional banking territory.
The transaction, announced by The Hicksville Bank, remains subject to regulatory approval and customary closing conditions.
Financial terms of the all-cash transaction were not disclosed.
For Interra, which serves nearly 90,000 members and reported $16.8 million in earnings last year, the deal offers a foothold beyond its Indiana base. The Hicksville Bank, with $217 million in assets and $1.5 million in annual earnings, brings a smaller but established presence in rural Ohio, where community banking relationships remain central to local economies.
The two institutions framed the agreement as a continuation of shared values. “This marks an important step in our journey and reflects a shared commitment to community banking, personal relationships, and long-term service,” The Hicksville Bank said in announcing the deal, adding that it was “optimistic about the future ahead.”
The combination reflects a broader shift across financial services, where credit unions have increasingly turned to acquisitions as a way to grow. Once largely confined to organic expansion, many credit unions are now using bank deals to add commercial lending capabilities, enter new markets and scale their operations.
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That trend has accelerated in recent years. According to S&P Global Market Intelligence, 16 credit union-bank acquisitions were announced in 2025, down slightly from a record 22 in 2024. The Interra-Hicksville transaction is the fourth such deal announced in 2026.
Other recent agreements point to similar motivations. In March, Landmark Credit Union in Wisconsin said it would acquire American National Bank-Fox Cities, adding hundreds of millions of dollars in assets and expanding its reach in the region. Earlier in the year, Zeal Credit Union in Michigan agreed to acquire most of the assets and liabilities of The Miners State Bank, while Alabama ONE Credit Union struck a deal to purchase Peoples Independent Bank.
The pace of activity has drawn criticism from community bankers, who argue that credit unions’ tax-exempt status gives them an advantage in acquiring taxable institutions.
“With tax-exempt credit unions resuming their rapid pace of community bank acquisitions this year, ICBA and the nation’s community bankers continue our call for policymakers to address the favorable credit union tax treatment that is driving these harmful deals,” said Rebeca Romero Rainey, president and chief executive of the Independent Community Bankers of America.
Despite that pushback, credit unions have continued to pursue acquisitions, often emphasizing continuity in service and community focus. In smaller markets like Hicksville, where banking options can be limited, such transactions can reshape local financial landscapes.
Interra’s financial position suggests capacity for expansion. The credit union reported strong earnings growth, with net income rising to $16.8 million last year from $4.3 million in 2024. The Hicksville Bank has also shown steady performance, roughly doubling its earnings to $1.5 million over the same period.
“This partnership keeps our passion exactly where it belongs—on our customers and our communities,” said Greg Smitley, CEO of The Hicksville Bank. “Interra shares our belief that banking should be personal, accessible, and deeply connected to the places we serve.”
The deal is believed to be the first ever announced involving a credit union buying an Ohio-based community bank. It is also Interra’s first-ever bank buy.
If approved, the deal would bring together two institutions of markedly different size but similar emphasis on relationship-based banking. For Interra, it represents another step in a strategy that mirrors a broader industry pattern: growth not just by adding members, but by acquiring established banking operations.
“From the start, this was about people, our members, our employees, and the communities who trust us.”
– Amy Sink
CEO
Interra Credit Union
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
