Makes you say "Hmmm..."

Recently, I have had several consultants tell me the banks need to give up the credit union fight. They said CU’s aren’t an issue and don’t bother you. Really, having a competitor that has a substantial tax advantage (federal, state and local), competing with me for both deposits and loans, while enjoying those tax advantages? And now, add the following:

Tell me your reaction and the results if your bank had these numbers:

Capital/Assets: .99%!  Total NW/Assets: 3.64! Current Texas ratio: 156%

YE 2012 Texas Ratio: 826%!!!

How quickly would you be closed, shown the door and eventually hauled to the courthouse, professionally and personally?

Yet… in Dallas, there is a $1.4 BILLION credit union still merrily operating (after a $60 million capital injection FROM the NCUA no less). But hey, they are “making progress”. REALLY?

Not only are Community Banks treated differently from the taxing authorities but this is a visible example of the regulators disparity in treatment. And, these guys only file a 28 page Call Report (including 2 page cover and instruction).

Community bankers are saddled with taxation at almost every turn. We have an 80 page call report with over 600 pages of instructions. And, we have a real regulator (that doesn’t seem to want to bail us out – at least the community banks, that is).

This is outrageous. At least that’s my opinion. What’s yours? Email me at chip.lynch@icba.org