Senate committee advances bill requiring FDIC coverage in bank sales, drawing credit union opposition

The West Virginia Senate Banking and Insurance Committee voted to report an engrossed committee substitute for House Bill 2963 to the full Senate with a recommendation that it pass, sealing the committee’s endorsement by voice vote on April 12, 2025.

The bill would add a section to the state banking code requiring that a bank chartered in West Virginia may sell or transfer all or substantially all of its assets and liabilities by merger, reorganization, purchase and assumption, or similar business combination only if the acquiring entity is insured by the Federal Deposit Insurance Corporation (FDIC). The measure also would allow an interested person, including a bank or bank holding company, to seek equitable relief in court to enforce the provision.

The measure drew sharply different views from witnesses. Mark Adkins, representing the Community Bankers of West Virginia, told the committee the legislation responds to a growing national trend of…