Thomas Bates, Regulatory Influence, Washington 2023

WASHINGTON – In a move sparking concerns about regulatory influence, the Federal Deposit Insurance Corporation (FDIC) has named eight new members to its Advisory Committee on Community Banking. The committee, composed of community bankers from around the country, is tasked with sharing input on a broad range of community bank policy and regulatory matters.

The new members, announced on May 26, 2023, include Thomas Bates, President & CEO of Legends Bank in Clarksville, Tennessee; Michael Culhane, President & CEO of North Cambridge Co-operative Bank in Cambridge, Massachusetts; Anita Drentlaw, President & CEO of New Market Bank in New Market, Minnesota; Susan Horton, President, CEO & Chairman of the Board of Wheatland Bank in Spokane, Washington; Warren Huang, General Counsel of Amerasia Bank in Flushing, New York; April Perry, CEO & Chairman of the Board of Kentucky Farmers Bank Corporation in Catlettsburg, Kentucky; Troy Richards, President of Guaranty Bank & Trust Company in Delhi, Louisiana; and Lillous Ann Shoemaker, President of Magnolia State Bank in Bay Springs, Mississippi.

The new members join an existing committee that includes Mike Bock, CEO of Dairy State Bank in Rice Lake, Wisconsin; Troy Campbell, President & CEO of Altoona First Savings Bank in Altoona, Pennsylvania; Harold Horvat, President, CEO & Chairman of the Board of Centreville Bank in West Warwick, Rhode Island; Robert James II, Executive Vice President of Carver State Bank in Savannah, Georgia; Cindy Kitner, President & CEO of Jefferson Security Bank in Shepherdstown, West Virginia; Trey Maust, Executive Chairman of Lewis & Clark Bank in Oregon City, Oregon; Dominik Mjartan, President & CEO of Optus Bank in Columbia, South Carolina; Arlen Osterbuhr, CEO & Chairman of the Board of Minden Exchange Bank and Trust Company in Minden, Nebraska; Shane Pilarski, President & CEO of Alliance Bank in Francesville, Indiana; Kim Reigelsberger, President of Preferred Bank in Rothville, Missouri; and Andrew West, President & CEO of Eagle Bank in Polson, Montana.

The Advisory Committee on Community Banking was established in 2009, and its members are tasked with providing input on a range of community bank policy and regulatory matters. The committee’s next meeting, scheduled for June 1, 2023, will focus on banking conditions and updates on the Deposit Insurance Fund, the Minority Depository Institutions Subcommittee, and various supervision and policy matters.

The move has sparked concerns about regulatory influence, with critics arguing that the appointment of community bankers to the committee may create conflicts of interest. The FDIC has maintained that the committee is designed to provide input from community bankers and that the appointments are meant to bring diverse perspectives to the table.

While the FDIC has touted the committee as a way to promote community banking and provide input on regulatory matters, the appointments have raised questions about the potential for cronyism and regulatory capture.

The FDIC’s decision to name eight new members to the Advisory Committee on Community Banking has sparked a heated debate about regulatory influence and the potential for conflicts of interest.

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