Florida Banking April 2022

CHAIR’S MESSAGE

MEGA CREDIT UNION TAXATION: WHY WE WON’T GIVE UP

BY FAB BRUMLEY, FBA CHAIR

F irst, let me thank those of you who have joined us on important Zoom calls with representatives from Washington, D.C. In the past couple of months, we have met with both Congressmen and Senators on both sides of the political aisle to conduct another virtual “D.C. fly-in.” We must also thank our sponsors of the event, including FHLBank Atlanta, NFP, SouthState, and Crowe.

We seize every opportunity to speak out about this issue because, though tedious, repetition is important; repetition is key; repetition is how we advocate; repetition is necessary; repetition breeds influence; the squeaky wheel gets the grease. This is a lesson that many a lobbyist has learned amid the legislative Session … you must say your

piece more than once if you are to win a legislator’s loyalty in the long term. This is why the FBA has a dedicated team of lobbyists who continue to nurture their relationships with representatives and follow up again and again. And this is why we are proud that Alex Sanchez is known for his outspoken stance concerning mega credit unions; so much so that representatives are teasingly surprised when Alex raises the issue at the end of the call rather than in the first five minutes. It is our consistency over the long-term that will drive the change in the end. We should never assume that our arguments are falling on deaf ears, because

Why are these calls important? Why does Alex ask us to be on camera? Florida is a critically important state that continues to grow in population and economy. So, our collective voices matter to our legislators and give us the opportunity to be heard as we advocate for our industry as a united front. Our representatives lean in hard when they see bankers from all over the state listening attentively and asking relevant questions. It may seem redundant to cover the same topics over and over, but that consistency in masses eventually yields rewards.

“ WE SHOULD NEVER ASSUME THAT OUR

ARGUMENTS ARE FALLING ON DEAF EARS, BECAUSE IN THE END EVERYONE WILL KNOW THAT THIS UNFAIR COMPETITION FOR OUR COMMUNITY BANKS ALSO CHEATS OUR FEDERAL GOVERNMENT OF MUCH-NEEDED TAX DOLLARS.”

And there is no issue that we have fought longer or harder for than a level playing field with credit unions. While smaller and targeted credit unions in their traditional scope play a role in the financial services sector, some have expanded beyond that scope. The mega credit unions — those greater than $1 billion in asset size who are acquiring our tax-paying Community Banks should also be taxed like a bank. With our national debt reaching $30 trillion, it is time to re-consider the tax-exempt status of these mega credit unions and require their support of the defense of our country and the care of our seniors and veterans.

in the end everyone will know that this unfair competition for our community banks also cheats our federal government of much-needed tax dollars. Our industry has had a busy first quarter advocating for the banking industry. If our representatives say nothing else about us, let it be this: “The Florida bankers keep showing up!” Please continue to support our efforts. Get involved and stay up-to-date by attending events to network with bankers and legislators, and by answering FBA’s Calls-to-Action. I hope to see you at our 134th Annual Meeting in Orlando on June 5-8. You can register online today at www.floridabankers.com.

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING