Friends of Traditional Banking Newsletter: Credit Union Tax Exemption Damaging U.S. Economy

Maine's Tony McKim Joins

FOTB's Exec Committee

Tony McKim, president and CEO of First National Bank based in Damariscotta, Maine, has been unanimously welcomed onto the Executive Committee of Friends of Traditional Banking. He will represent New England at FOTB's highest level.

"I am delighted to join such an impressive and qualified team of bankers on the FOTB Exec Committee," said McKim. "I am looking forward to rolling up my sleeves and working with the team as we work with our elected officials to improve our industry."

Chair of the Maine Bankers Association, McKim has been a longtime advocate for our industry, including service on committees for American Bankers Association and Independent Bankers Trust.

"We are thrilled to have such a well respected banking leader from New England join our Executive Committee," said Joye Hunt, Chair of FOTB and CFO/SVP/Treasurer of PBK Bank in Stanford, Kentucky. "This is an area of the country we are growing in, and Tony will add important perspectives to our group."

McKim is a graduate of the University of Maine and programs at the New England School of Banking and the Graduate School of Bank Investments and Financial Management from the University of South Carolina's Darla Moore School of Business. He and his wife Wendy have four children.

Damage Caused by Federal Tax Exemption for Credit Unions, Says New Report

"The tax exemption for credit unions is not justifiable under principles of sound tax policy, nor under the rubric that lawmakers have used in the past to evaluate the tax-exempt status of financial institutions," says a report out this month from the Tax Foundation, a well respected Washington, D.C. think-tank.

"Credit unions compete with banks for similar customers and offer similar financial services but do so with the benefit of not paying the taxes that their competition must pay," they conclude. "Ending this disparate treatment would improve the neutrality of the tax code and provide revenue that could be used to make pro-growth changes."

Read the full report here: https://taxfoundation.org/repealing-credit-union-exemption/

Welcome to FOTB's new

Nationwide Banker Board members

Most states have a representative on Friends of Traditional Banking's Nationwide Banker Board (if your state is not represented, let us know if you'd be interested in serving). We appreciate the following leaders who have recently stepped up to serve:

RICH WACKER

President & CEO

American Savings Bank

Representing HAWAII with FOTB

AMADA ALVIDREZ

Market President

Equity Bank

Representing OKLAHOMA with FOTB

Regulators Keep Focus on Cybersecurity

During recent discussion with a group of bankers, the vice chairman of the FDIC stated that information security, specifically cybersecurity, is a top concern the agency will continue to address in the IT examination process.
Bankers were reminded that bank board-level engagement in risk management of information security is critical.Regulatory emphasis is increasing on information technology issues because the risks (financial, legal, regulatory, and reputational) continue to increase as the number of sophisticated threats continue to increase. See more about the risk third parties pose to the bank: https://www.bankonitusa.com/uploads/october-2019-issue-info-security-for-directors.pdf


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Friends of Traditional Banking is a non-partisan grassroots effort organized by bankers in 2012 to improve the political and regulatory environment for the traditional banking industry in the U.S. FOTB is the inverse of a PAC--instead of spreading a little bit of money to a lot of campaigns, they focus a lot of money on a couple of key campaigns.