Florida Banking April 2023

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM SEPTEMBER 2020 THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM APRIL 2023

Legislative Leaders Q &A with Senate President Passidomo and House Speaker Renner

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Editorial & Executive Offices 1001 Thomasville Road, Suite 201 Tallahassee, FL 32303 850-224-2265 www.floridabankers.com Advertising & Production Offices 250 Prairie Center Dr., Ste. 300 Eden Prairie, MN 55344 952-835-2275 www.nfrcom.com For advertising information, contact Erica Nelson Advertising Sales Executive 763-497-1778 Erica@NFRcom.com For reprints or single issues, contact 800-336-1120 Statements of fact and opinion are made on the responsibility of the authors alone and do not imply an opinion or endorsement on the part of the officers or members of FBA. Florida Banking is published 11 times annually with a combined issue in December/January. Subscription price is $50 per year for nonmembers. Postmaster, send address changes to Florida Bankers Association, P.O. Box 1360, Tallahassee, FL 32302. Copyright 2022 Alex Sanchez President and Chief Executive Officer

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 38

NUMBER 3

APRIL 2023

ON THE COVER 8 �� �� �� �� �� �� �� Legislative Leaders: Q&A with Senate President Passidomo and House Speaker Renner CONTENTS 4 �� �� �� �� �� �� �� �� �Chair’s Message 6 �� �� �� �� �� ��Straight Talk from the President’s Desk 16 �� �� �� �� Government Relations: Florida’s 2023 Legislative Session: Everything, Everywhere All At Once 20 �� �BancServ Endorsed Partner: Neal Reynolds Speaks With Brian Hickey of the Florida Bankers Association 22 �� �� �� �� �� �� �� �� ��Trust Banking: Secure Act 2.0: Top Ten Highlights 25 �� �Florida Bankers Educational Foundation Donors 26 �� �� �� �� ��Personal Transactions 28 �� �� �� �� �� �� �� �� �� �� �� �� ��Kudos 30 �� �� �� �� �� �� ��Upcoming Events 31 �� �� �� �� �� �� �� �� Did You Know? 31 �� �� �� �� �� Advertising Directory

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Florida Bankers Association asanchez@floridabankers.com Pamela Ricco Executive Vice President and Chief Operating Officer Florida Bankers Association pricco@floridabankers.com Brooke Harrison Publications Director Florida Bankers Association bharrison@floridabankers.com

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Bill Penney Chair Jose Cueto Chair-Elect

Fab Brumley Immediate Past Chair

Greg Nelson Second Immediate Past Chair

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On the Cover: Senate President Kathleen Passidomo and House Speaker Paul Renner

Florida Bankers Association: The voice of Florida banking since 1888.

Photos by Colin Hackley Photography, Tallahassee, FL

©istock.com: Michael Warren; DIPA

CHAIR’S MESSAGE

BANKERS, WANT TO ADVANCE YOUR EDUCATION? APPLY FOR FBEF FINANCIAL AID

BY BILL PENNEY, FBA CHAIR

W hen I was in high school, I didn’t think I’d go to college… much less become a banker! I loved race cars and engines, and I wanted to be a mechanic. One summer, I was working as a mechanic at the Village of North Palm Beach, and a garbage truck broke down enroute. I went out with my boss to help fix the broken hydraulic hose, and it was the combination of garbage and hydraulic oil on a hot day that drove me to say, “Mom, tell me about this college thing.”

and the completion of one year of employment with a Florida bank or trust company. The FBEF Scholarship/Loan Program offers financial assistance of $4,000 for junior and senior students and $5,000 for graduate students. You may be eligible for a scholarship if you are (1) attending one of the FBEF’s participating colleges and universities, (2) majoring in a banking-related field of study, and (3) planning to continue your career in Florida banking.

The Foundation doesn’t only offer aid to college students — there’s also a program specifically for career bankers who want to continue their education outside of traditional college degree programs. Through the FBEF Career Development Program, you can apply for financial assistance if you’re attending an approved professional development program like the FBA’s Florida School of Banking or Florida Trust School, LSU and Stonier Graduate School of Banking, or most ABA or ICBA

In Economics 101, I was fascinated by the chapter about how banks create money. I signed up for more banking and finance courses. In my junior and senior years at Florida Atlantic University, I received a scholarship grant from the Florida Bankers Educational Foundation. That was the very beginning of my banking career, and it wouldn’t have been possible without the FBEF’s support or financial aid. Coming full circle, my first

“I’LL ALWAYS BE GRATEFUL FOR THE ROLE THAT THE FBEF’S SCHOLARSHIP GRANT PLAYED IN LAUNCHING MY BANKING CAREER.”

leadership role with the FBA was as Chair of the FBEF. I was grateful to serve and give back what I’d received through the Foundation. Supporting bankers’ education is a big part of the FBA’s mission, and I want every one of our member banks to be familiar with the many opportunities for professional development. The FBEF has been around since 1956, serving as a financial resource for future Florida bankers by helping them complete their education so they can advance in their banking careers. Are you or someone you know pursuing a career in banking? The FBEF offers forgivable loans which are paid in full after graduation

endorsed graduate banking programs. I’ll always be grateful for the role that the FBEF’s scholarship grant played in launching my banking career. These programs are available to all our member banks; don’t miss out on the opportunity for financial assistance if you’re going back to school! You know as well as I do that every bit counts. Learn more about the FBEF and how its programs could help you advance your career through education. Visit the FBA website for full guidelines and application information. You can also reach out to FBEF Director Letty Newton at lnewton@floridabankers.com.

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

BANCSERV ENDORSED PARTNERS

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Core & Digital Banking Evaluations | Contract Negotiations | Bank Advisors for 28 Years Keith Hagen, (850) 640-2244 keith.hagen@ici-consulting.com

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Created by the Florida Bankers Association, BancServ Inc., provides quality products and services at a discounted rate, saving Florida banks time & money. Brian Hickey, Managing Director of Partner Relations | bhickey@floridabankers.com

STRAIGHT TALK FROM THE PRESIDENT’S DESK

PREPARING FOR ‘MORNINGS WITH MARIA’

BY ALEJANDRO “ALEX” SANCHEZ, FBA PRESIDENT AND CHIEF EXECUTIVE OFFICER

A s the FBA has been called on to appear on FOX Business’ “Mornings with Maria,” hosted by Maria Bartiromo, I want to share with you the preparation it takes to be ready for my interviews on the show. It is always an honor when Maria calls to let me know she wants me back on the air to discuss an issue impacting our industry or our nation’s economy. She is the hardest working journalist in her profession by far. She hosts “Mornings with Maria” daily, as well as “Sunday Morning Futures” and “Maria Bartiromo’s Wall Street.” Who hosts three different shows six days a week anymore? No one else! Maria is the best. Besides being a professional in what she does, she is also one of the nicest people you will ever meet. I never know when that call will come, so I must always be ready by knowing the topics of the day. When I receive an invitation to be on the show, it is with only a few days’ notice that I’m given the topic that will be discussed. The day before the interview, I prepare by reading as much as I can to be ready. It is also critical that I prepare by getting a good night’s sleep. Around 5:30 a.m. on the morning of the show, Maria’s producers send me two to three other subjects to discuss on air during the interview. They also send links to stories by major news outlets on each of the proposed issues or topics. I read these materials in preparation. If I am joining Maria in the studio in New York, the network sends an SUV to pick me up at my hotel at 6 a.m. for the 6:45 a.m. interview. I usually arrive in the FOX Business green room around 6:10 a.m.. I’ll typically have coffee and grab a snack while I continue to read my briefing materials. Then one of Maria’s producers stops by to welcome me and say hello. As I read and think about the issues and the questions that may come up, time zips by before

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

the technical crew comes by to wire me and escort me on set for the interview. You may be wondering: Am I nervous? No, not really. Through experience, I’ve learned that preparation, preparation, and more preparation is essential to be ready for the questions. When I walk out on set, the very first thing I do is greet Maria to thank her for having me as a guest; then I say hello to the day’s panelists. I take my seat and, seconds later, Maria welcomes me to the show and the interview begins. I am looking forward to welcoming Maria as the FBA’s keynote speaker at our 135th Annual Meeting

in June. I always thank her for inviting the FBA on the show to discuss the important issues that impact our ability to serve our customers and communities. Her show is important and viewed by many elected officials and policymakers in Washington, D.C. Being a guest on “Mornings with Maria” can help shape, change, and/or amend important policies impacting our industry and our economy. For those reasons, I am always grateful to Maria for giving the FBA the opportunity to speak out. Simply said, Maria is the best, and it is always an honor to appear on her show.

WWW.FLORIDABANKERS.COM APRIL 2023 — 7

House Speaker Paul Renner (left) and Senate President Kathleen Passidomo

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Q&A with Senate President Kathleen Passidomo

Q: What are some of the life guiding principles that you live by? My faith and my family have always been the foundation of my life. I was raised in a traditional Italian/Irish Catholic home with many siblings. My parents met on a blind date when my dad returned from World War II, and they were together for almost 75 years. My mom, who is my namesake, passed away in 2020, but I inherited her love of cooking and community. My dad turned 100 on New Year’s Day. I spend almost every Sunday with him watching golf, reading and talking. My husband, John, and I have been married for over 40 years and have raised three daughters in Naples. We have two grandchildren, William and Emilio, who are the loves of our lives. When the girls were growing up, I always tried to foster a home environment similar to the home I grew up in, with a lot of food, friendship, and always an extra place setting at the table. The work we do in Tallahassee is so significant, but there is nothing more important than family! Q: What inspired your desire to serve as Senate President? My husband first encouraged me to run for office. We are both attorneys, and I have always done a lot of legal work in the area of Real Property Probate and Trust Law. He saw my frustration over the years with some of our state laws, and convinced me that if I ran for office, maybe I could rewrite some of them, which I did! Being trusted by my colleagues to serve as Senate President is the professional honor of a lifetime. I enjoy the chance to work with each Senator and learn about the issues that are important to their constituents. I must say, I do really miss sitting on committees, and I still try to read – and sometimes try to rewrite – every bill. After 40 years practicing law, that’s a habit I cannot seem to break! Q: How do you see Florida’s current economic and financial outlook? Florida’s economy is in great shape. In December, Florida's unemployment rate dropped to 2.6 percent, the lowest among the nation’s Top 10 largest states and a full point below the national average. In November, we marked

two consecutive years (24 straight months) that Florida’s unemployment rate has remained below the national rate. We also continued to exceed the national job growth rate for the 20th consecutive month in November 2022. While Florida’s economy is booming, the pain of inflation due to the disastrous economic policies on the national level is very real for many Florida families. That is not just my view, it is the opinion shared by millions of Floridians across this state who sent a strong, clear message at the ballot box last November. Our nation’s inflation rate is the highest in 40 years. Grocery bills are through the roof. Gasoline is also back on the rise. What that means is the average Floridian is having to make difficult choices. Do I use my last $20 this pay period to fill up my tank or to buy my family dinner? Forget new shoes or jackets for the kids. Unfortunately, Florida cannot independently fix or outrun all of the problems created by the federal government, wreaking havoc on families and our most vulnerable; however, I believe there are things we can do to support Florida families through the financial distress brought on by Washington. By cutting more taxes, easing regulations and limiting bureaucracy, we are going to make sure Floridians get to keep more of their hard-earned money. Also, Florida closed out the year with historic reserves, leaving us in a great place to address future challenges. Q: How do you expect the legislature to help spur economic activity and job growth in Florida under your leadership? Safe, attainable, workforce housing. When I moved to Naples almost 43 years ago, the community was talking about the lack of housing for our workers. It was a problem then, and remains a persistent problem today in many areas of our state. When I talk with Florida businesses of all sizes, they consistently raise the challenge of finding suitable housing options for their employees. If our workers lack an affordable, convenient place to live and raise their families, we will not be able to recruit and retain the workforce we need in the Sunshine State. Legislative Leaders, Continued on page 10

WWW.FLORIDABANKERS.COM APRIL 2023 — 9

“WE APPRECIATE YOUR FEEDBACK AND ALWAYS LOOK FORWARD TO LEARNING THE PERSPECTIVE OF THE BANKING COMMUNITY AND OTHER LEADERS OF BUSINESS AND INDUSTRY."

Legislative Leaders, Continued from page 9

my Senate District, President Pro Tempore Garrett Richter, is a career-long banker. In my experience, whether with local bankers or in one-on-one meetings and committee hearings in Tallahassee, Florida bankers provide relevant and timely input on key issues. We appreciate your feedback and always look forward to learning the perspective of the banking community and other leaders of business and industry. One of the blessings of modern technology, and its impact on the legislative process, is that every Floridian has the opportunity to play a meaningful role in government regardless of their proximity to Tallahassee. All of our Senate Committee meetings and floor sessions can be viewed on our website, and interested Floridians can follow along in real-time by downloading the same meeting packets and information our Senators are reviewing in Tallahassee. You can also sign up for our Legislative Tracking System which allows users to receive updates as bills move through the process.

The Live Local plan we are advancing in the Senate is a comprehensive statewide workforce housing strategy to create attainable housing options, convenient for Florida workers who want to live in the communities they serve. This strategy includes housing options for Floridians at every income level and stage of life with a focus on ensuring our workers have an affordable, convenient place to live and raise their families. Through key partnerships with the private sector, this proposal will make certain that companies expanding in and moving to our state can recruit and retain the workforce needed to keep Florida open for business. I certainly hope it will earn your strong support! Q: How would you encourage Florida bankers to engage in the legislative process? Florida bankers have a very long history of civic engagement at all levels. In fact, my predecessor in

MEET SENATE PRESIDENT KATHLEEN PASSIDOMO

S enator Kathleen C. Passidomo, 69, was elected to the Florida Senate in November 2016 after serving in the Florida House of Representatives since 2010. Senate President Wilton Simpson (R-Trilby) appointed her to serve as Chair of the Senate Committee on Rules for the 2020-22 Legislative Term. During the 2018-20 Legislative Term, she served as Republican (Majority) Leader under former Senate President Bill Galvano (R-Bradenton). Senator Passidomo graduated in 1975 from Trinity College (now University) in Washington, D.C. In December 1978, she received her law degree from Stetson

University’s College of Law. She built a law practice around Real Estate and Business Law and has been practicing law in Naples for more than 40 years. Senator Passidomo was in the first group of attorneys in the state to obtain Board Certification in Real Estate Law, and her peers elected her to serve as President of both the Collier County Bar Association and the Collier County Women’s Bar Association. Senator Passidomo and her husband, John, married in 1979. Together, they have three adult daughters, Catarina, Francesca and Gabriella, and two grandsons, William and Emilio.

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

The Florida Bankers Association's Government Relations team meets with 2023 legislative leaders. Pictured, from left: Kenneth Pratt, FBA Senior Vice President of Government Affairs; Kathleen Passidomo, Senate President; Paul Renner, House Speaker; Anthony DiMarco, FBA Executive Vice President of Government Affairs; Gina Rotunno, Assistant Vice President of Government Affairs.

Q&A with House Speaker Paul Renner

Q: What inspired your desire to serve as House Speaker? When I was young, my dad was a minister and was involved with missionaries who lived behind the Iron Curtain. Learning that people were imprisoned, tortured or killed because of their religious beliefs made a strong impression on me, and it’s something I’ll never forget. History is full of people who have lost their freedom. When I came back home from serving in Afghanistan, I saw a culture that seemed oblivious to how easy it is to lose the freedoms we take for granted. It’s important to me that I do my part to ensure my children grow up in a world that is better off than I found it, ensures their freedoms, and creates more opportunity and prosperity for future generations. Q: What are some of the life guiding principles that you live by? Throughout my life and especially in taking on this role as Speaker, I try to measure my decisions

against whether or not an action provides more freedom and opportunity for individuals. President Reagan once said, “Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same." Freedom isn’t some mystery for us to unravel; it’s about maximizing people's decisions over major issues in their lives, like healthcare and education, and making sure we knock down barriers to work and opportunity. Q: How do you see Florida’s current economic and financial outlook? Florida’s sustained fiscal responsibility has put us in a much better economic position than the nation as a whole. Responsible spending decisions by the Florida Legislature and our Governor have made Florida stronger than ever. Each year, we balance our budget, addressing the needs of our state and lowering our debt. We’ll do that again this session, all while setting aside record reserves

Legislative Leaders, Continued on page 12

WWW.FLORIDABANKERS.COM APRIL 2023 — 11

working with President Passidomo and Governor DeSantis to build on these successes. When it comes to economic freedom, the “Florida Way” is the right way. Q: How would you encourage Florida bankers to engage in the legislative process? One of my top priorities this session is to protect Floridians and their pensions by standing up to ESG investing practices. Bankers should not be pressured to make loan decisions based on political considerations, but rather on strictly qualitative financial factors relied on by lenders for centuries. Banks should be empowered to perform their role as they always have, without pressure to choose sides politically. I would encourage Florida bankers to follow the legislative process and share their feedback with me and their respective legislators. Your practical knowledge of the banking and finance industry is a valuable addition to the conversation.

Legislative Leaders, Continued from page 11

to prepare Florida for the future. Unfortunately, Washington’s wasteful spending continues to add fuel to the inflationary fire. Rising costs of food, housing and energy are pushing many Floridians to their breaking point. We can only hope that Washington starts handling its business the Florida Way. Q: How do you expect the Legislature to help spur economic activity and job growth in Florida under your leadership? In Florida, we’re committed to reducing taxes, tackling runaway insurance costs, and making housing more affordable, especially for our growing workforce. Recent record low unemployment rates prove that keeping our state open for business helped us rebound quickly from the Covid-19 pandemic. I look forward to

MEET HOUSE SPEAKER PAUL RENNER

H ouse Speaker Paul Renner (R-Palm Coast) was elected by the House Republican Conference in September 2021 to serve as Speaker of the Florida House of Representatives for the 2022-24 term. He most recently chaired the Republican House Campaign Committee, leading the historic triumph of an 85-member supermajority of Republicans elected to the Florida House. Speaker Renner’s service in the Florida House began in 2015, and has been subsequently re-elected. He represents Flagler County and sections of St. Johns County as part of District 19. Speaker Renner is a combat military veteran and accomplished business attorney who began his legal career prosecuting felony offenses as an assistant state attorney. He served as a

Naval officer both on active duty and in the reserves. His deployments include the combat operations aboard the USS McInerney (FFG-8) to liberate Kuwait in Operation Desert Storm. In 2011, he served in Afghanistan during Operation Enduring Freedom as a Commander in the U.S. Navy Reserves. He was recognized with the Defense Meritorious Service Medal for his work as an Intelligence Officer leading a counter terrorism team in Afghanistan. Speaker Renner grew up in Northeast Florida, where he attended public school. He earned his Juris Doctorate at the University of Florida Levin College of Law and a bachelor’s degree in history at Davidson College in North Carolina. He lives in Palm Coast with his wife, Adriana, and their children, Abby and Will.

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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CALL FOR CHAIR FBA CHAIR 2025-26 The Florida Bankers Association Board of Directors has established a formal process for FBA members interested in serving as chair of the FBA. Candidate packets are now available for the next FBA Chair representing Tier I who will serve as FBA Chair in 2025-26. Completed applications are due by June 2, 2023, at 12 noon ET. Only members currently representing Tier I (deposits totaling $300 million or less) are eligible for consideration. If you have questions about your tier designation, the nomination and election process, or if you would like a Tier I candidate packet, please contact FBA Executive Vice President/COO Pamela Ricco at 850-701-3514 or pricco@ floridabankers.com.

TIMELINE FOR CHAIR SELECTION

JUNE 2, 2023 Deadline for declaration of candidacy FBA ANNUAL MEETING 2023 Announcement of candidate slate SIXTY DAYS AFTER 2023 ANNUAL MEETING Candidate personal interviews (if applicable) FBA BOARD MEETING – FALL 2023 Tier I Nominating Committee report SPRING 2024

Nomination placed before membership for approval

UPON CONCLUSION OF ANNUAL MEETING 2024 Candidate begins term as Chair-Elect

WWW.FLORIDABANKERS.COM APRIL 2023 — 13

135 TH ANNUAL MEETING JUNE 11-14 | ORLANDO Join Us!

SCHEDULE AT-A-GLANCE

SUNDAY, JUNE 11

TUESDAY, JUNE 13

• Board Meetings* • Joint Board Dinner*

• General Session • Networking Lunch • Exhibitor Tear-down • Panel Discussion • Workshops • BankPac Silent Auction

MONDAY, JUNE 12

• Golf Outing • Exhibitor Set-Up • Rap with the Regulators Panel

WEDNESDAY, JUNE 14

• ABA & ICBA Panel • Welcome Reception • Past Chairman’s Dinner*

• Continental Breakfast • General Session • Awards Luncheon • Keynote Speaker • Closing Reception • Closing Dinner & Entertainment

*By invitation or Board Members only More event details and registration information for the FBA Annual Meeting will be available online at www.floridabankers.com. Click on "Annual Meeting" under the "Events" tab.

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Keynote Speaker MARIA BARTIROMO FINANCIAL JOURNALIST, TELEVISION PERSONALITY, NEWS ANCHOR AND AUTHOR WEDNESDAY, JUNE 14TH

VENUE INFORMATION THE RITZ-CARLTON GRANDE LAKES, ORLANDO 4012 CENTRAL FLORIDA PARKWAY ORLANDO, FL 32837 The FBA Room Block is only available for registrants of the FBA's 135th Annual Meeting. You must be participating as an attendee, speaker or vendor in order to qualify for the room block.

REGISTER TODAY:

www.FloridaBankers.com/AnnualMeeting Visit our website for the most current program information and event announcements:

WWW.FLORIDABANKERS.COM APRIL 2023 — 15

GOVERNMENT RELATIONS

FLORIDA’S 2023 LEGISLATIVE SESSION: EVERYTHING, EVERYWHERE ALL AT ONCE

BY ANTHONY DIMARCO, FBA EXECUTIVE VICE PRESIDENT AND DIRECTOR OF GOVERNMENT AFFAIRS

Y es, this is the title to an Oscar-winning movie, but it is also the self-claimed theme of the 2023 Session. This year’s Session will have begun by the time you read this article, with the House and Senate convening on Tuesday, March 7, and welcoming the Governor to give his State of the State Address in a joint session in the House. Much like in Washington, D.C., the Governor will have laid out his agenda for the Session. The Legislature will then begin to debate his agenda and push their own independent agendas, plus bills filed on behalf of different special interest groups. I think this Session will have a deep impact on our industry, maybe not for the better, and will require the FBA and its members to fight off more than a few far afield ideas. Here are some of the ideas we will be encountering this Session: ESG House Bill 3 by Rep. Bob Rommel (R-Naples) and SB 302 by Sen. Erin Grall (R-Ft. Pierce) is Florida’s attempt to curtail perceived “wokeness” in the business community. Unfortunately, a big portion of the bill deals with banking practices. Among other provisions, the bills create a new “unsafe and unsound banking practice” to be applied to any bank that is a qualified public depository (QPD) or to any Florida state-chartered bank or credit union. The bill, while recognizing the need for financial institutions to provide or deny banking services based upon an analysis of risk factors unique to each individual customer, provides that it is deemed an unsafe and unsound banking practice to discriminate against a person based upon the following: • Their political opinions, speech, affiliations, religious beliefs, exercise or affiliation; • Any factor that is not a quantitative, impartial and risk-based standard;

• Any factor that includes the person’s business sector, e.g., fossil fuels or gun manufacturing; or, • Any rating, scoring, analysis or the like based on a “social credit score.” The financial institution, beginning on July 1, must attest, under penalty of perjury, that it is in compliance with this new law. If you are a Florida state-chartered financial institution you are subject to the following penalties: • It is deemed a violation of the Florida Financial Institutions Code and you are subject to the applicable penalties; • You are in violation of the Florida Deceptive and Unfair Trade Practices Act (FDUPTA), from which you are currently exempt; and • Potential perjury charges when signing the prescribed compliance form. Lastly, for Florida state chartered financial institutions, OFR may not use the “wild card” statute in relation to this new section of law. The same unsafe and unsound practice requirements apply to all QPDs, but the penalties and enforcement are different: • If the CFO determines that the attestation is materially false, he shall report this to the Attorney General. She in turn may bring civil or administrative action for damages, injunctive relief, or any other appropriate relief and if she is successful, is entitled to reasonable attorneys’ fees and costs; • The CFO may suspend or disqualify any QPD for a violation; • Failure to file the required attestation is deemed to be a knowing and willful violation; and • The CFO may bring all current penalty provisions of the QPD statutes such as, cease and-desist order, corrective order, and the like. The bill also has the same language for unsafe and unsound practices for consumer finance companies and money services businesses.

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

“I THINK THIS SESSION WILL HAVE A DEEP IMPACT ON OUR INDUSTRY, MAYBE NOT FOR THE BETTER, AND WILL REQUIRE THE FBA AND ITS MEMBERS TO FIGHT OFF MORE THAN A FEW FAR AFIELD IDEAS.”

Credit Unions/Public Deposits They are back again trying to take your public deposits. Unfortunately, the bill has more legs than in years past. House Bill 987 is likely to get a hearing in the House Insurance & Banking Subcommittee. Senate Bill 1360 by Sen. Blaise Ingoglia (R-Springhill) has also been filed. We will naturally OPPOSE the bills until the credit unions are on the same tax and regulatory level as our members. House Bill 221 by Rep. John Snyder (R-Palm City) and SB 214 by Sen. Danny Burgess (R-Zephyrhills) have been filed to prohibit financial institutions, the payment system, and others involved in the credit/debit card process from assigning a merchant category code (MCC) to a gun or ammunition store other than an MCC for sporting good or general merchandise store. Bills such as this are being filed and passed in red Merchant Codes/Guns and Ammunition Stores

what that may mean to people and small businesses. The bill will, in part, require Florida state-chartered banks and credit unions to file quarterly reports with the Office of Financial Regulation on the number of IRS inquiries, requests, summons, subpoenas or other requests for information or records concerning any account holder domiciled in Florida. We are suggesting amendments to the bills that will ensure that the state can still receive information, and that removes the requirement for our members to provide this information. We are also supporting legislation to clarify automobile liens and finality of foreclosures. Finally, we are opposing legislation filed, including PACE lending. We will keep you updated as Session progresses. Please contact us if you have any questions concerning these bills or any others that will be addressed by the Florida Legislature.

states after the International Standards Organization (ISO) created a new MCC for guns and ammunition stores to try to stop gun sales. Interchange Fees House Bill 677 by Rep. Mike Caruso (R-West Palm Beach) and Senate Bill 564 by Sen. Travis Hutson (R-Palm Coast) have been filed to prohibit the collection of an interchange fee on the sales tax portion of any transaction done with a credit or debit card. We are opposed to this idea for several reasons, including the fact that the current technology does not exist, and we will be paying for the sales tax portion of the transaction without any compensation. IRS Reporting Senate Bill 372 by Sen. Blaise Ingoglia (R-Springhill) and House Bill 507 by Rep. Toby Overdorf (R-Stuart) have been filed in response to the IRS hiring of 87,000 agents and

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WWW.FLORIDABANKERS.COM APRIL 2023 — 17

BANCSERV ENDORSED PARTNER: BANKMARKETINGCENTER.COM

NEAL REYNOLDS SPEAKS WITH BRIAN HICKEY OF THE FLORIDA BANKERS ASSOCIATION

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BY NEAL REYNOLDS, PRESIDENT, BANKMARKETINGCENTER.COM

A s you all know, bankers are continually required to do more with less… and the management of their marketing programs is certainly no exception. Because Bank Marketing Center is a Florida Bankers Association endorsed partner, I recently had the pleasure to speak with Brian Hickey, who you all know as the FBA’s Director of Partner Relations and Associate Membership. We talked about some of the trends in banking and how members can make the most of our partnership. Brian Hickey: Thanks for meeting with me, Neal. Let me begin this conversation by giving our members a bit of background. For those association members who are not familiar with the process, this is important; our selection of endorsed partners is an ongoing one. In other words, once selected, a vendor doesn’t simply enjoy permanent endorsed vendor status. As new suppliers and technologies appear, we know that we must continually review these partners and potential opportunities to remain assured that they are, in fact, the best organizations in their field. And, subsequently, that members continue to receive the best services in the industry. As your state banking association, we feel that it is always important to help keep you, our partner banks, abreast of the trends, developments and new opportunities that present themselves in this fast and ever-evolving industry. We’re taking this opportunity to update you on developments in the area of marketing, brought to you by Neal Reynolds, founder and president of one of our endorsed marketing partners, BankMarketingCenter.com. Neal Reynolds: First off, thank you, Brian, for giving me the opportunity to address your member banks. We are committed to bringing the FBA banks the best in marketing messaging, which is so critical, especially

with the many challenges that bankers now face. A top challenge, of course, is that banks are continually being asked to do more — regulation is a good example — and resources are stretched thin. The competition for customers has become incredibly tough with fintechs constantly entering the marketplace. Consequently, smart marketing is more critical than ever. Hickey: You mentioned that resources are stretched thin, and I’m pretty sure that all our member banks would agree. Tell me, how can your service help banks stay on top of that all-important function, marketing, without, perhaps, staffing an entire department or hiring an expensive outside firm? Reynolds: Good question, Brian. For starters, our web-based marketing portal gives your banks the ability to produce professionally designed, bank-branded marketing materials in a matter of seconds. It puts the user in complete control of the ad production process, saving valuable time and money. Our design interface is super user friendly, so no design skill is required, which is huge. Users log in, select an ad that most closely meets their needs, and then customize it with their desired images, brand colors, and copy, simply by dragging and

20 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

dropping. And they have unlimited access to thousands of layouts and millions of Getty photos and images. Hickey: I get it. I’ve been in your portal and seen the campaigns. It looks like you offer everything from digital signs, direct mail, statement stuffers and social media posts to ads, flyers and brochures. Basically, everything a bank needs to market their products and services, honor holidays, build their brand, celebrate their employees… all kinds of things. Reynolds: Very true, Brian. And you’re making a very important point about our marketing messaging. The content on our portal has been created by people who know the business, and this is really critical. We have a team of financial industry marketing professionals who are constantly researching financial industry trends, products and services. Then, using decades of marketing experience in the financial services space — community banking, in particular — they develop and add new, customizable creative to our library of ads almost every day. This is the major difference between our service and some of the template-driven applications out there, such as Canva. Like everything in life, you get what you pay for. Programs like Canva don’t apply the highly sophisticated principles of marketing that we do at BankMarketingCenter.com. Hickey: Can you talk a bit more about how it works? Reynolds: Sure. Our portal can also, if the user wants it to, automatically insert their institution’s logo, address, and phone numbers into their ads. The portal then facilitates proofing of the ad, automatically routing it along a predetermined, pre-arranged compliance approval path. Another very useful feature, and one that

iPhone. That doesn’t sound like a big deal but, well, Apple thinks it is. Their Trademark Guidelines tell you that “Only Apple and its authorized resellers and licensees may use the Apple Logo in advertising, promotional, and sales materials.” Needless to say, the last thing your bank needs is a Cease-and-Desist letter from Apple’s legal department. Hickey: Thanks very much for your time, Neal. This has been great… very informative stuff. Reynolds: Thank you, Brian, for giving me this opportunity. I hope it helps your banks better understand what we can do for them. BankMarketingCenter.com (BMC) is a web-based marketing portal that empowers banks to produce professionally designed, bank-branded marketing materials in a matter of seconds. As an endorsed partner of the Florida Bankers Association, our member banks receive a 20 percent discount on the already low-cost monthly subscription. For more information or to schedule a no-obligation demo, visit www.bankmarketingcenter.com. About the Author Neal Reynolds began his career as an art director at J. Walter Thompson ad agency in Chicago where he worked on the advertising for Oscar Mayer, Kraft and Ford. At that time, it was the largest ad agency in the world. Reynolds started his own ad agency a few years later, working with a large variety of clients, including many small community banks. Fifteen years ago, he started BankMarketingCenter. com, a web-based marketing portal that is now being used by 350 banks. Reynolds can be reached at 678-528-6688 or nreynolds@bankmarketingcenter.com.

many overlook the importance of, is that each user has easy access to their order history, enabling them to track all the marketing materials that are produced. This is a huge benefit if and when, in a compliance review, they’re asked by regulators for access to their marketing materials. No other web-based messaging portal does this. Hickey: You mentioned images. Millions of them? Reynolds: Yes, roughly 9 million and that includes videos as well. And your members can use any of them without concerning themselves about the usage rights. Here’s an example of what I’ve actually been seeing – banks promoting their mobile banking with an image of an

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TRUST BANKING

SECURE ACT 2.0: TOP TEN HIGHLIGHTS

BY MARK R. PARTHEMER, AEP, MANAGING DIRECTOR, GLENMEDE CHAIR, FBA TRUST EXECUTIVE COMMITTEE

O n December 29, 2022, President Biden signed into law the omnibus spending bill known as the Consolidated Appropriations Act, 2023. With a total of $1.7 trillion of spending, much is included in this law. We explore only one component, the SECURE Act 2.0. Background There are significant and taxpayer-friendly changes to retirement plans through what is referred to as SECURE Act 2.0. It is a combination of three bills from early in 2022, none of which became law: the Securing a Strong Retirement Act of 2022 introduced in the House, and The Enhancing American Retirement Now Act (EARN) and the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act (RISE & SHINE), both introduced in the Senate. The new SECURE Act 2.0 builds upon the 2019 Setting Every Community Up for Retirement Enhancement Act, known as the SECURE Act. The original SECURE Act was part of the Further Consolidated Appropriations Act, 2020. 10 Top Highlights There are many changes to the retirement rules, but here are a select group of 10: 1. Required Minimum Distributions The SECURE Act 2.0 delays the triggering age for RMDs, that is, the year in which one is required to begin taking minimum distributions from a tax advantaged retirement savings account. Currently, the mandatory age to begin making withdrawals is 72 (under the SECURE Act, it changed from 70½ to 72). As of January 1, 2023, the mandatory age changed to 73; in 2033, it will be 75. Of course, everyone who will turn 73 in 2023 turned 72 in 2022, so the first change won’t have an impact until 2023. Starting in 2023, the steep penalty for failing to take an RMD will decrease from 50 to 25 percent of the

RMD amount not taken. The penalty will be further reduced to 10 percent for IRA owners if the account owner withdraws the RMD amount previously not taken and submits a corrected tax return in a timely manner. • Roth accounts in employer retirement plans will be exempt from the RMD requirements starting in 2024. • Beginning immediately, in-plan annuity payments that exceed a participant's RMD amount can be applied to the following year's RMD. Planning consideration: Consider when to take your first RMD, as the law permits you to defer the first payment until April 1st of the second year. For example, if you turn 73 in 2024, you can take your first RMD either by December 31, 2024, or delay until no later than April 1, 2025. But if you delay your first RMD to April 1, 2025, you will pay tax on two RMDs distributions in 2025 — your first by April 1, 2025, to satisfy the 2024 required withdrawal, and the second by December 31, 2025, to satisfy the 2025 required withdrawal. This stacking of income in 2025 could have an adverse impact on your tax bracket and other tax attributes. 2. Qualified Charitable Distributions Under existing law, an IRA owner age 70½ or older does not have to pay tax on up to $100,000 of QCDs per year. These can be made with voluntary withdrawals as well as with RMDs. To qualify, the QCD must be paid directly to a qualified charity (accomplished by having the distribution check made payable to it). Donor advised funds, supporting organizations and private foundations are not qualified charities. Beginning in 2023, people age 70½ and older may elect as part of their QCD limit a one-time gift up to $50,000, adjusted annually for inflation, to a charitable remainder unitrust, a charitable remainder annuity

22 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

trust or a charitable gift annuity. This amount counts toward the annual RMD, if applicable. Similarly, these QCDs must be paid directly to the recipient vehicle and cannot be comingled with non-QCD dollars (i.e., cannot be distributed to a trust or annuity that has been otherwise funded). 3. Student Loan 401(k) Matching Starting in 2024, employers will be able to "match" employee qualified student loan payments with matching payments to a retirement account. Qualifying payments are those made to a qualified education loan that was incurred by the employee to pay qualified higher education expenses, as defined in the Higher Education Act of 1975. Employers are permitted to rely on a certification by employees that the debt qualifies. If an employer wishes to permit such matches, the plan must provide for them. Also, matches must be nondiscriminatory and must vest in the same manner as elective deferrals. Matches cannot exceed the employee’s annual contribution limits. 4. Automatic Enrollment and Portability Starting in 2025, employers establishing a new 401(k) or 403(b) retirement savings plan must have default automatic enrollment for all employees (subject to their eligibility). The initial contribution must be at least 3 percent but not more than 10 percent of pretax earnings. Plans also are to provide for an automatic annual increase after the first year of participation of 1 percent per year until at least 10 percent of the employee’s compensation, but not exceeding 15 percent. Employees may opt out of making contributions or elect to have contributions made at a different percentage.

someone is 50 or older, they are entitled to make a $1,000 catch-up contribution. Previously, this $1,000 catch-up was not indexed for inflation, but it will be starting in 2024 (the adjustment will be rounded down to the nearest $100). B. 401(k) and other employer sponsored plans — The 2023 contribution limit is $22,500, with a catch-up for those 50 and older of an additional $7,500. Starting in 2025, individuals ages 60 through 63 years old will be able to make catch up contributions up to the greater of $10,000 or 150 percent of the “standard” catch-up contribution. The $10,000 will be indexed for inflation starting in 2026. One twist: Beginning in 2024, there will be an income limit that governs the type of account into which a catch-up contribution can be made. Those earning more than $145,000 in the prior calendar year only will be able to make a catch-up contribution to a Roth account in after-tax dollars. Individuals earning $145,000 or less will be exempt from the Roth requirement. Starting in 2025, the $145,000 income limit will be indexed for inflation, but rounded down to the nearest $500. 6. Savings Beginning in 2024, defined contribution retirement plans are able to add an emergency savings account that is a designated Roth account eligible to accept participant contributions for non-highly compensated employees. These are referred to as pension-linked emergency savings accounts. Contributions are limited to $2,500 annually (or lower, as set by the employer) and the first four withdrawals in a year would be tax- and penalty

Legislative Leaders, Continued on page 12

Small businesses with 10 or fewer employees and businesses that started less than three years ago would be exempt. The Act permits retirement plan service providers to offer plan sponsors automatic portability services, transferring an employee's retirement accounts to a new plan when they change jobs. The change could be especially useful for savers who otherwise might cash out their retirement plans when

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they leave jobs. 5. Catch-up

Tammy McDowell President + Founder (906) 286-0808 tmcdowell@maccreditcomp.com Kelly W. George CEO + Founder (906) 286-1445 kgeorge@maccreditcomp.com

contributions expanded A. IRAs — Qualifying

individuals can contribute $6,500 in 2023 to a traditional or Roth IRA. This contribution limit is indexed for inflation. If

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WWW.FLORIDABANKERS.COM APRIL 2023 — 23