Florida Banking October 2022

CHAIR’S MESSAGE

WHAT IS IN FLORIDA’S FUTURE: CREDIT UNIONS OR COMMUNITY BANKS?

BY BILL PENNEY, FBA CHAIR

D oes Oregon foretell the future of Florida? I recently had the opportunity to ride my bike down the Oregon coast. For seven days, I cycled over 300 miles with my buddies, enjoying both the physical challenge and the beautiful scenery. Climbing the massive hills was most difficult (much bigger than Sugarloaf Mountain near Mt. Dora!) and while coasting down I held on for dear life! While riding on flat ground, I observed these three“Cs” and couldn’t help but wonder if this is in Florida’s future: 1. C o f f e e — T h e r e

the mom-and-pop credit unions operating locally in their traditional scope. The smaller, niche credit unions serving a targeted audience are not our competition. The mega credit unions, however — those greater than $1 billion in asset size — walk and talk like banks, and therefore should be taxed like banks. We need a level playing field if we are to compete. Why shouldn’t these mega credit unions pay taxes to contribute to the defense of our country and

the care of our seniors and veterans? Your guess is as good as mine. It is estimated that some $3 billion to $5 billion in annual tax revenue is lost due to this corporate welfare. I realize I’m preaching to the choir here. Our industry’s efforts to close the credit union tax loophole have felt like one long, perpetually uphill bike ride. But as in anything in life, it’s all about timing. I feel that the timing has never been better to close these corporate tax loopholes. As our national debt grows, these loopholes become harder for our government to ignore. In the meantime, how do we show our strength in the

were cof fee shops e v e r y w h e r e , par t i cular ly smal l , k i o s k - s t y l e d r i v e - throughs in parking lots. If more coffee is in Florida’s future, I’m all for it. 2. Cannabis — I noticed

t h e r e we r e ma n y cannabis shops; each of us must form our own opinions on this topic. Even still, this is on our radar as bankers because we advocate for the SAFE Banking Act and our ability to provide banking services to legal cannabis-related businesses. I was not happy with this third “C”: 3. Credit unions — I saw an abundance of credit unions in these small communities and very few community banks. (In fact, there are less than 15 community banks headquartered in the entire state.) I sure hope that this imbalance is not in our future here in Florida. The credit unions’ tax-exempt status creates unfair competition for all our banks.We’re not talking about

Bill Penney cycled over 300 miles down the Oregon coast.

face of pressure from mega credit unions? We need to support our state’s de novos and continue to open new community banks. With the influx of new residents we’ve seen in the past couple of years, it’s clear that our communities need more local decision-makers. Please continue to support our efforts. Get involved and stay up-to-date by staying close to your local congressional representatives, attending events, reading our emails and social media updates, and by answering timely Calls-to-Action.

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