Credit Unions
FiCare Federal Credit Union has sued Fiserv, alleging inadequate cybersecurity in its Virtual Branch Next online banking platform allowed hackers to steal hundreds of thousands of dollars from customer accounts. The complaint claims Fiserv failed to implement basic security controls like biometrics and multifactor authentication, and later charged for a security upgrade. Fiserv denies the allegations and vows to defend itself. The lawsuit adds to Fiserv's legal challenges, including similar claims from another credit union and shareholder suits over its Clover point-of-sale service.
Bank M&A in 2026 is expected to accelerate, with deal announcements potentially doubling 2025's 181 transactions as regulatory approvals speed up and the environment becomes more constructive. Analysts predict a barbell-shaped banking landscape: midtier and regional banks growing through acquisitions, while smaller banks (especially under $1 billion in assets) face pressure from succession issues, technology costs, and a shrinking buyer pool. Larger banks, fintechs, and credit unions are likely buyers, and consolidation may be influenced by activist investors and political timing. States with many banks, such as Texas and Illinois, will see continued consolidation, and the overall trend points to a more competitive industry with fewer but larger institutions.
Livonia, Michigan-based Zeal Credit Union has agreed to acquire The Miners State Bank, boosting its presence in Michigan's Upper Peninsula. The transaction, expected to close in the fourth quarter, will create an institution with 22 branches and approximately $1.1 billion in assets. Financial terms were not disclosed. The deal is the first announced acquisition of a bank by a credit union in 2026. The Independent Community Bankers of America criticized the deal, calling for policymakers to address the impact of tax-exempt credit unions acquiring taxpaying community banks and to eliminate the federal tax exemption for credit unions over $1 billion in assets. Credit union-bank acquisitions spiked to a record 22 in 2024 but fell to 16 last year, according to Tyfone. Zeal previously announced its acquisition of Gogebic Range Bank on Dec. 30, 2024, which was approved by regulators late last month. The Miners State Bank acquisition will add five branches and about $144 million in assets. Zeal CEO Julie Kreinbring and Miners CEO Paul Hinkson expressed enthusiasm for the partnership. Michael Bell, a partner at Honigman, expects 2026 to be very active for such deals and disputed the ICBA's position.
Three Senate Democrats—Elizabeth Warren, Cory Booker, and Richard Blumenthal—sent a letter Monday to the CEOs of 21 credit unions across 12 states, questioning their overdraft and non-sufficient funds (NSF) fees, which they call 'predatory.' The letter cites CFPB data showing that consumers with incomes between $35,001 and $65,000 are nearly twice as likely to be charged overdraft and NSF fees as those earning $100,001 to $175,000, and that less than 10% of customers account for almost 80% of overdraft fees. It follows the National Credit Union Administration's March decision to stop publishing overdraft and NSF data for individual credit unions and Republican lawmakers' repeal of the CFPB's rule that would have capped overdraft fees at $5. The senators point to Alliant Credit Union, which eliminated overdraft fees in 2021 and still had a record dividend payout in 2023, as proof that such fees are not necessary. They request answers from the credit unions by Dec. 14.
Jacksonville, Florida-based Community First Credit Union of Florida will acquire Waycross, Georgia-based First Southern Bank, creating a $3.3 billion-asset institution. The transaction, unanimously approved by both boards, is expected to close in the second or third quarter of 2026. The combined entity will have approximately $2.5 billion in loans, $2.9 billion in deposits, and 31 branches, and will retain all First Southern employees. The deal is the second credit union-bank tie-up announced this week. The Independent Community Bankers of America criticized such deals, calling for policymakers to address their impact and for Congress to eliminate the tax exemption for credit unions with over $1 billion in assets. Michael Bell of Honigman disputed ICBA's claims.
GECU, a credit union based in El Paso, Texas, announced Monday it will acquire Bank of the Southwest, headquartered in Roswell, New Mexico. The deal will create a financial institution with $4.7 billion in assets, more than 30 branches, and 440,000 customers. It deepens GECU's presence in New Mexico, where it opened a single branch in Las Cruces last year. Bank of the Southwest has 11 branches in New Mexico, including one in Las Cruces. Financial details and timelines were not disclosed. The acquisition has board support but requires approval from the National Credit Union Administration, the New Mexico Financial Institutions Division, and the Federal Deposit Insurance Corporation. GECU President and CEO Crystal Long will lead the new institution. Bank of the Southwest CEO K. Andrew Hogan said the combined entity will expand commercial lending and offerings in New Mexico. Credit union-bank deals reached a record 22 last year, and Michael Bell of Honigman told CUToday that 2025 activity remains strong, likely finishing in the twenties despite political turbulence, NCUA staff reductions, and perceptions of regulatory delay.
Reseda Group, the credit union service organization of Michigan State University Federal Credit Union, has acquired Tandem, a couples-focused finance app, for undisclosed terms. The acquisition aims to create an end-to-end family banking ecosystem, supporting members through various life stages. Tandem, launched in 2023, has about 100,000 registered users and will relaunch its high-yield savings account with MSUFCU backing. Co-founders Dan Couvreur and Michelle Winterfield will become vice presidents at Reseda Group.
Suncoast Credit Union will begin offering Bloom+ to its 1.1 million checking account holders in November, allowing members to automatically report positive rent and utility payment data to TransUnion. The product, provided by Bloom Credit, scrapes up to two years of payment history to establish or bolster credit profiles. Suncoast EVP Darlene Johnson highlighted member control over reported bills and the potential to improve financial well-being. The deal follows Bloom's partnership with Navy Federal Credit Union and signals the fintech's expansion into banks.
While credit union acquisitions of banks are rare—only 100 out of 2,599 bank sales between 2012 and January 2025—some community banks are actively choosing credit unions as buyers. This piece explains that no bank is forced to sell to a credit union, and that community banks face competition primarily from other banks. It outlines reasons a credit union may be the smartest option: shared community presence, consistent local services, avoiding banking deserts, and better employee and branch retention. It also notes that most bank assets sold go to out-of-state banks, often leading to closures and layoffs, and argues that credit unions offer a mission-centered alternative for communities.
Decatur, Illinois-based Land of Lincoln Credit Union will purchase Williamsville State Bank and Trust in an all-cash transaction expected to close in the first half of 2026, growing to $576 million in assets and 18 branches. The deal marks the 10th credit union-bank acquisition this year. Separately, NCUA liquidated Members First of Maryland Federal Credit Union, with Aberdeen Proving Ground Federal Credit Union assuming its accounts.