Florida Banking April/May 2025

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM SEPTEMBER 2020 Lafayette State Bank Balancing Innovation and Community Impact TTHEEMAGAZIINE OF THE FLORIIDA BANKERRSSAASSSOOCCIAIATTIOIONN WWW.FLORIDABANKERS.COM SEPTEMBER 2020 WWW.FLORIDABANKERS.COM APRIL | MAY 2025

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ON THE COVER

8 Lafayette State Bank

Balancing Innovation and Community Impact

Advertising & Production Offices NFR Communications, Inc. 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 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 six times annually. Subscription price is $50 per year for nonmembers. Postmaster, send address changes to Florida Bankers Association, P.O. Box 1360, Tallahassee, FL 32302. Copyright 2024 Kathy Kraninger President and Chief Executive Officer kkraninger@floridabankers.com For reprints or single issues, contact 800-336-1120

Cover Story (left to right): Gloria Arroyo, Todd Battle, Jacey Gresham, David Claussen

and Jessica Lambert of Lafayette State Bank. Photos by Don Juan Moore, @DJuanfotos

CONTENTS

5 — President's Perspective Maintaining Optimism Amid Uncertainty, Reflecting on Our 69th Annual D.C. Trip

7 — Chair’s Message Maximizing Value Through BancServ and Our 137th Annual Meeting

18 FBA Members Head to D.C. for Impactful 69th Annual Advocacy Trip 22

12 BancServ Endorsed Partner Concepts and Facts: ChatGPT Gets It Mostly Right on Yield Curve Shapes 14 Trust & Wealth Management Proceed, but Proceed with Caution! Navigating the Risks and Rewards of Generative AI 16 Government Relations BankPac 2025: Driving the Future of Banking Advocacy

Florida Bar Calls for Volunteer Arbitrators and Mediators 24 Personal Transactions 28 Kudos 30 Upcoming Events & Advertising Directory

Suellen Wilkins Director of Communications swilkins@floridabankers.com

Derek Jones Chair

Keith Costello Chair-Elect

Jose Cueto Immediate Past Chair

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

PRESIDENT'S PERSPECTIVE

MAINTAINING OPTIMISM AMID UNCERTAINTY, REFLECTING ON OUR 69TH ANNUAL D.C. TRIP

BY KATHY KRANINGER, FBA PRESIDENT AND CEO

As we wrapped up our 69th Annual FBA Fly-In to Washington, D.C., many of the bankers noted this was the best trip to D.C. in a long time, if not the best trip to D.C. ever. Yes, the FBA team deserves credit for a well-run program with the right speakers. We also had a great turnout of bankers and sponsors who brought thoughtful questions and engaged with policymakers. In addition, the weather was pleasant compared to the brutal cold of President Trump’s second Inauguration a month earlier and the infamous FBA Fly-In snow-in year that bankers still talk about. But best trip…ever?! The reason — optimism! The bankers are clearly responding to the enthusiasm Republican lawmakers exhibited for the first time in many years. The message and tone are different — even from the first Trump term. The goals are clearer. The conference is more unified and more optimistic about the big picture. The President has deeper relationships with many lawmakers — they understand and know each other better. The optimism permeates, despite the volatility of the “move fast and break things” Silicon Valley approach that DOGE is bringing to executive branch reform. The optimism remains, despite uncertainty about whether that approach and Congressional action will result in smaller, more efficient government. Positive energy made the difference! Here are just a few highlights: •We heard from Majority Whip Tom Emmer (R-MN) hours before the House passed the budget resolution launching the reconciliation process. At that point, he did not know if the bill would pass. Yet, he was excited about how fast the President was moving to deliver on the promises he made during the campaign and confident the

Republican majority would support those efforts. • House Financial Services Committee Chairman French Hill (R-AR) spoke about the deregulatory agenda and his focus on making community banking great again, as the first banker to head the committee in 100 years. • We engaged with Florida members of the Ways and Means Committee — Vern Buchanan, Greg Steube and Aaron Bean — about their efforts to move a tax package. •House Foreign Affairs Committee Chairman Brian Mast (R-FL) talked about the need to par back the size and scope of the federal government, particularly addressing waste, fraud and abuse. •And, of course, we talked with members of Congress and regulators about the challenges bankers are facing and the need to reverse the unnecessary, burdensome regulations finalized in recent years. Will we see results? There are reasons to be optimistic. Our top priority for regulatory relief is the CFPB’s final rule implementing section 1071 of the Dodd Frank Act on small business lending data collection. As I write this, the Senate is moving the nomination of former FDIC Director Jonathan McKernan to be CFPB Director. He will be a strong advocate for ensuring the CFPB sticks to its statutory mandates and paring 1071 back. Changing the law would be ideal, though we will need bipartisan support in Congress. That is the work of the coming months – leveraging the uncertainty of DOGE efforts in the executive branch and seeking Democrat support for reforms. Time will tell….

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CHAIR’S MESSAGE

MAXIMIZING VALUE THROUGH BANCSERV AND OUR 137TH ANNUAL MEETING

BY DEREK JONES, FBA CHAIR

A s Chairman of the Florida Bankers Association (FBA), I am reminded of how collaboration, innovation and partnership drive the success of our member banks. In today’s rapidly evolving financial landscape, staying ahead requires access to trusted solutions and strong industry connections. That’s why I encourage you to join us for the FBA’s 137th Annual Meeting, taking place June 8-11 at The Ritz-Carlton in Naples. This year’s event promises to be a valuable opportunity to connect with peers, gain industry insights and explore solutions that can help your bank thrive. A key part of our commitment to supporting your success is BancServ, Inc., the wholly-owned subsidiary of the FBA. Through our Endorsed Partner Program, your peers rigorously vet and endorse companies that provide industry-leading products, services and solutions designed to help member banks save time, effort and money. From cutting edge technology to risk management tools and compliance solutions, our Endorsed Partners deliver real value to Florida’s banking community. These carefully selected providers are not just vendors — they are trusted partners, committed to helping your institution succeed. The Annual Meeting is the perfect opportunity to experience this value firsthand. Our Endorsed Partners will be featured adjacent to our meeting space, where you can easily explore their offerings and discuss how their solutions can address your bank’s needs. Additionally, we’ll have our traditional exhibit hall. The exhibit hall is more than a showcase — it’s a hub for meaningful conversations, problem-solving and relationship-building. I encourage you to engage with our trusted partners,

ask questions and discover new ways to enhance your operations and better serve your customers. As always, the meeting will offer a wide range of informative sessions, keynote presentations and networking events. The opening keynote speaker on Tuesday morning, Tom Morrison, will address market disruption challenges and how industries can mold and adapt. Our closing keynote on Wednesday afternoon, renowned climber Aron Ralston, will regale us with the harrowing tale of losing his arm while hiking and how all of us can turn the boulders in our lives into blessings. Other sessions will provide practical insights for bankers on a range of topics including, emerging technologies,

regulatory changes, economic trends and cybersecurity. Whether you’re a first-time attendee or a seasoned participant, you’ll gain fresh perspectives, valuable connections and actionable insights to take back to your institution. Just as important as the content is the opportunity to connect with fellow bankers from across the state. Annual Meeting fosters an environment where we can share challenges, exchange

“THE FBA’S ANNUAL MEETING IS... A CELEBRATION OF OUR SHARED COMMITMENT TO THE FUTURE OF FLORIDA BANKING.”

ideas and learn from one another. The relationships built here often lead to collaborations and partnerships that extend far beyond the event itself. The FBA’s Annual Meeting is more than a conference — it’s a celebration of our shared commitment to the future of Florida banking. Your participation strengthens our community and drives our industry forward. I urge you to mark your calendar and make plans to join us in Naples. Together, we’ll share ideas, address challenges and continue building on our legacy of excellence. I look forward to seeing you there.

WWW.FLORIDABANKERS.COM APRIL | MAY 2025 — 7

Lafayette State Bank: Balancing Innovation and Community Impact

L ocated in the heart of north central Florida – in the part of our state some refer to as “The Real Florida” – is Lafayette State Bank. With branches in Mayo, Branford, Live Oak and Bell, the bank’s leadership and staff are hometown partners who are reimagining collaboration and teamwork – and, in the process, expanding the area’s possibilities and growth through community banking. “Lafayette State Bank is deeply rooted in the communities we serve,” President & CEO David Claussen said. “Over the years, we’ve become more than just a financial institution – we’re a trusted partner for families, businesses and organizations.” During a recent conversation with FBA President & CEO Kathy Kraninger, Claussen, along with Lafayette State Bank Chief Financial Officer Todd Battle, emphasized the significance of maintaining community banking values despite industry consolidation. They noted the importance of the bank’s strategic plan, employee training programs and community involvement. Fraud concerns, particularly elder abuse and cryptocurrency scams, were highlighted, along with the need for improved fraud prevention and education. The conversation also touched on the FBA’s advocacy events, including the Washington, D.C. fly in in February and Capitol Day + Capitol Night in March, and the powerful effect community bankers have at these events as they discuss key policy issues with lawmakers. Blending Tradition With Teamwork Currently, Lafayette State Bank holds a total of $230 million in assets and $214 million in deposits. Since it was founded in 1946, the bank has grown significantly – especially through the culture transformation its leadership and staff have undergone in the last two years. “We’ve shifted our focus to building a learning and teaching culture, emphasizing professional growth for our team,” Claussen said. “While our commitment to personal relationships and community has remained constant, we’ve modernized our services to meet the needs of today’s customers. From embracing new technology to expanding our offerings, we’ve stayed agile while honoring the traditions that make us a community bank.” Three members of the bank’s Senior Management Team are graduates of the FBA’s Florida School of Banking, a foundational priority that continues with the bank’s planned future enrollments.

For its customers, what sets Lafayette State Bank apart is the dedication of staff and leadership to providing unmatched excellence in customer service. The bank’s boutique approach, staff say, facilitates offering personalized solutions that can be challenging for larger banks to provide. “We excel in building trusted relationships with small businesses, helping them grow and thrive,” Battle said. “Our focus on integrity and humility ensures every customer interaction is authentic and meaningful. “While we might not be the largest,” Battle added, “we believe our personal touch is our most powerful offering.” The bank’s leadership and staff have worked to foster an environment where their team collaborates, learns and grows together. This learning-focused culture has strengthened their management team and, ultimately, their entire organization. It’s this cultural shift, they say, that has prepared them for the future. “Our culture is built on collaboration, growth and service,” Chief Operating Officer Jessica Lambert said. “We believe that ‘together we are smarter,’ and this mindset has allowed us to create a unique bond within our management team that extends throughout the bank. “Our core values — trusted relationships, compassion, exceptional service, family and community, integrity, and humility — guide every decision we make,” Lambert said. “They’re not just words; they’re our way of doing business and treating each other and our customers respectfully.” Rooted in Community, Driven to Grow Lafayette State Bank is deeply committed to supporting area communities through meaningful contributions and active participation. The bank proudly invests in local school literacy programs, youth sports events, Future Farmers of America charters, educational foundations and scholarships, helping to shape the next generation of leaders. “Our dedication extends beyond education – we actively engage in local chamber events and contribute to community-driven initiatives, including donations to local need drives,” Commercial Lender Jacey Gresham said. “From empowering local initiatives to partnering with schools and sponsoring community

Lafayette State Bank, Continued on page 10

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

WWW.FLORIDABANKERS.COM APRIL | MAY 2025 — 9

Lafayette State Bank’s Leadership Team often meets at the home of Board Member Mike Shaw. Left to right: Gloria Arroyo, Todd Battle, Jessica Lambert, David Claussen and Jacey Gresham.

Information Security Officer Gloria Arroyo said. “Strategically, we’re focused on leveraging technology to enhance our offerings and improve convenience for our customers. “Above all,” Arroyo added, “we’re committed to continuing our cultural journey, ensuring our team remains strong and adaptable as we grow.” In today’s rapidly changing financial landscape, Claussen said, several challenges help the bank’s leaders and staff remain focused. “Economic uncertainty, regulatory compliance and evolving customer expectations are always on our radar,” Claussen said. “Balancing the need for technological innovation with our commitment to personalized service is an ongoing challenge. But with our strong team and shared vision, we’re confident in our ability to navigate these issues while staying true to our values.”

Lafayette State Bank, Continued from page 8

events, the bank’s impact is woven into the fabric of our community,” How does Lafayette State Bank attract and recruit talent within their small area communities? By showcasing their unique culture and commitment to growth. The bank’s recruitment process emphasizes alignment with its core values, offering collaboration within a team. The bank also invests in professional development opportunities, creating a learning-focused organization where staff members feel valued and supported. New hires quickly see the bank is a place where they can learn, contribute and thrive. “Our primary goals are growth and fostering deeper customer relationships. We aim to expand our reach in the community while maintaining the personalized service that sets us apart,” Chief Retail Officer and

DAVID P. CLAUSSEN, PRESIDENT & CEO

David P. Claussen, President, CEO and Senior Lending Officer of Lafayette State Bank, is a third-generation seasoned banking executive with over 44 years of experience leading financial institutions through diverse economic cycles. Known for his expertise in turning around underperforming banks, Claussen has consistently delivered exceptional shareholder value and operational excellence. His ability to cultivate transformative cultures, mitigate risk effectively and ensure rigorous regulatory compliance distinguishes him as a leader in the banking industry. After earning a bachelor of science in business administration degree from Drake University in 1979, Claussen’s career included leadership roles at three banks in Iowa and at Drummond Community Bank. At Drummond, he oversaw de novo branch

expansions, developed innovative pricing models and helped achieve record earnings growth. Claussen exemplifies servant leadership, emphasizing community engagement and teamwork. He has served as a volunteer federal income-tax preparer, as President and Treasurer of the Rotary Club of Chiefland, and as an advocate for community development. His commitment to trust, integrity and excellence continues to guide his work at Lafayette State Bank, where he is focused on scaling the bank by safely growing its profitability while mentoring its future leaders.

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

JESSICA LAMBERT, CHIEF OPERATING OFFICER

Jessica Lambert serves as Chief Operating Officer of Lafayette State Bank, where she combines her 18 years of experience with the bank and expertise in lending, operations and audit coordination to ensure seamless and efficient functionality. With a steadfast commitment to excellence and a deep understanding of community banking, Jessica oversees key operational and HR functions, fostering a culture of collaboration, accountability and employee engagement. Lambert plays a pivotal part in talent management, leadership development and creating a positive workplace environment that reflects the bank’s core values. Her focus on empowering employees strengthens the bank’s ability to deliver exceptional customer service.

Lambert also serves as Board Secretary, using her organizational and leadership skills to support strategic decision making and governance. Her passion for operational excellence, employee well-being and community engagement underscores her dedication to Lafayette State Bank’s continued growth and efficiency.

TODD BATTLE, CHIEF FINANCIAL OFFICER

Todd Battle is the Chief Financial Officer of Lafayette State Bank, bringing over 30 years of accounting expertise in financial operations, strategic planning and leadership within the banking industry. Since joining the bank in March 2023, Battle has overseen all financial operations, including financial statements, budgeting, liquidity management, sensitivity and regulatory reporting. As a member of the Executive Management Team, he plays a vital role in driving strategic initiatives and ensuring the bank’s financial integrity.

Previously, Battle served as CFO at Drummond Community Bank, where he supported profitable growth in assets from $375 million to over $1 billion. His prior leadership experience also includes serving as CFO at The Perkins State Bank for 15 years. Battle holds a bachelor’s degree in accounting from the University of Florida, graduating with honors. He is known for his strong analytical skills, operational accuracy and commitment to excellence.

GLORIA ARROYO, CHIEF RETAIL OFFICER AND INFORMATION SECURITY OFFICER

Gloria Arroyo serves as Chief Retail Officer and Information Security Officer at Lafayette State Bank, where she leads prioritizing exceptional customer experiences and ensures the bank’s technological resilience. With a banking career that began in 2010, Arroyo brings competency to retail operations and cybersecurity in her dual roles. As Chief Retail Officer, Arroyo oversees branch operations, retail strategy and customer engagement initiatives, ensuring the bank’s core values of compassion, integrity and community are reflected in every interaction. Her leadership fosters a culture of service excellence, strengthening the bank’s role as a trusted financial partner. As Information Security Officer, Arroyo is dedicated to protecting the bank’s technological infrastructure and safeguarding customer data. She develops comprehensive cybersecurity strategies, ensures compliance with FDIC and FFIEC standards, and proactively addresses emerging threats. Arroyo’s commitment to empowering teams, and supporting the financial well-being of the community as current President of the Live Oak Rotary Club, remains instrumental in Lafayette State Bank’s continued success.

JACEY GRESHAM, COMMERCIAL LOAN OFFICER

Jacey Gresham currently serves as a Commercial Lender at Lafayette State Bank. She has been blessed to spend 17 years in the banking industry, beginning as an intern through a high school program. Over the course of her career, she has worked in various departments, including teller operations, bookkeeping, accounting, branch management, customer service, consumer lending and commercial lending. Gresham’s diverse background has provided her with a well-rounded understanding of banking operations and client services. Working in commercial lending has been especially rewarding for her, as it has allowed her to assist the bank’s borrowers monetize and achieve their dreams.

WWW.FLORIDABANKERS.COM APRIL | MAY 2025 — 11

BANCSERV ENDORSED PARTNER: ICBA SECURITIES

CONCEPTS AND FACTS: CHATGPT GETS IT MOSTLY RIGHT ON YIELD CURVE SHAPES F L O R I D A B A N K E R S A S S O C I A T I O N

BY JIM REBER, ICBA SECURITIES

T he Impact of the Treasury Yield Curve on Community Banks The Treasury yield curve is a critical financial indicator that depicts the relationship between interest rates and the maturity dates of U.S. government debt. Typically, the yield curve slopes upward, reflecting higher yields for long-term securities compared to short-term ones. This essay explores how the shape of the Treasury yield curve affects community banks, focusing on their lending practices, interest rate risk The yield curve can take on various shapes, primarily categorized as normal, inverted or flat. A normal yield curve indicates that longer-term bonds have higher yields, suggesting economic growth; an inverted yield curve occurs when short-term yields exceed long-term yields, often seen as a predictor of recession; and a flat yield curve signifies uncertainty in the economy, where there is little difference between short-term and long-term rates. Each of these shapes presents unique challenges and opportunities for community banks. Lending Practices Community banks primarily generate revenue through lending, and the yield curve significantly influences their lending practices. In a normal yield curve environment, community banks can borrow at lower short-term interest rates and lend at higher long-term rates, which supports their profitability. For example, if a bank can secure funding at a 1% interest rate for a one-year loan and lend it out at 4% for a 30-year mortgage, the spread – essentially the bank's profit – is 3%. This difference allows community banks to support local economies, providing loans for homes, businesses and other community projects. Conversely, when the yield curve flattens or inverts, the profitability of these lending activities diminishes. In an inverted yield curve scenario, community banks management and overall financial health. Understanding the Yield Curve

Note: In this column, for the first time, your correspondent relied on ChatGPT, the generative artificial intelligence (AI) platform. For the record, I submitted this inquiry: “Write a 700-word essay on how the shape of the Treasury yield curve affects community banks.” The following was generated in, I guess, three seconds, and most of it appears to be correct. I’ve taken the liberty of adding some commentary in brackets, and there really aren’t many changes. In the future, I will use AI only if I fully disclose its assistance. And you’ll be able to tell because there’s no snark in AI-generated documents. JR

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

decline, and existing borrowers may struggle to meet their obligations, leading to increased default rates. This deterioration in asset quality can significantly impact community banks, which often have concentrated loan portfolios tied to local economies. [It’s a bit of a non-sequitur to claim inverted curves cause a decline in credit quality. It’s more like the curve is reacting to that expectation.] A rise in non-performing loans can strain capital reserves and lead to regulatory scrutiny. Conclusion The shape of the Treasury yield curve is a pivotal factor influencing the operations and financial health of community banks. A normal upward-sloping curve supports profitable lending practices and encourages economic growth, while an inverted or flat curve presents challenges related to interest rate risk, profitability and asset quality. Community banks must remain vigilant and adaptable to changes in the yield curve, employing sound risk management strategies and maintaining strong relationships with their local communities. Understanding these dynamics is essential for community banks as they strive to navigate the complexities of the financial landscape and continue to support their local economies. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks.

may find themselves in a position where they borrow at higher short-term rates than the rates at which they can lend long-term. This situation compresses margins, potentially leading to a reduction in loan origination and, consequently, a slowdown in economic activity within the communities they serve. Interest Rate Risk Management Community banks must also navigate interest rate risk, which is the risk of financial loss due to changes in interest rates. The shape of the yield curve plays a crucial role in how banks manage this risk. In a normal yield curve scenario, banks can match the duration of their assets (loans) with their liabilities (deposits) effectively. For instance, if a community bank has long-term fixed-rate mortgages, it can rely on stable, lower-cost funding from short-term deposits. [Wrong! This is the very recipe for exposure to rising rates.] This alignment helps mitigate the risk of rising interest rates. However, during periods of an inverted or flat yield curve, community banks face increased interest rate risk. [Not necessarily.] The duration mismatch can lead to a situation where liabilities reprice before assets, exposing banks to potential losses. To manage this risk, community banks may engage in interest rate swaps or other hedging strategies, but these can be costly and complex, particularly for smaller institutions with limited resources. Asset Quality and Loan Demand

The shape of the yield curve also affects asset quality and loan demand, which are critical for community banks' stability. In a normal yield-curve environment, economic growth typically leads to increased demand for loans as businesses and consumers have greater confidence in their financial prospects. Community banks can capitalize on this demand, extending credit while maintaining healthy asset quality. However, when the yield curve inverts, it often signals an impending economic slowdown. As businesses and consumers become more cautious, loan demand may

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TRUST & WEALTH MANAGEMENT

PROCEED, BUT PROCEED WITH CAUTION! NAVIGATING THE RISKS AND REWARDS OF GENERATIVE AI

BY ALEXANDER KLEIN, FOUNDER & PRESIDENT, THE BENJAMIN SCHOOL, AI CLUB, AND MARK PARTHEMER, AEP, ACTEC FELLOW, GLENMEDE TRUST COMPANY

I n the long-running TV show, “Hill Street Blues,” Sergeant Phil Esterhaus’s daily warning – "Let’s be careful out there" – applies well to the rise of generative artificial intelligence (AI). As AI becomes increasingly integrated into professional settings, advisors must learn how to approach it wisely. Let’s take a step back in time. When handheld calculators first hit the market in 1971, schools struggled to determine their role – some banned them, others embraced them and some limited their use. Over time, calculators became recognized as tools to master, not fear. AI is following a similar path. To understand its implications, it’s helpful to break AI into five categories: 1. Reactive AI: Operates on fixed rules and pattern recognition. Examples: Autofill for forms, spam filters in email, credit card fraud detection systems 2. Artificial Narrow Intelligence: Specializes in one task, but lacks broader intelligence. Examples: Google translate, Alexa, Siri 3. Limited Memory AI: Learns from past data to improve decisions. Examples: Recommendations for online shopping, self driving cars 4. Predictive AI: Uses machine learning to anticipate outcomes. Examples: Predictive text suggestions, weather forecasting models, Netflix recommendations

“WHEN HANDHELD CALCULATORS FIRST HIT THE MARKET... SCHOOLS STRUGGLED TO DETERMINE THEIR ROLE – SOME BANNED THEM, OTHERS EMBRACED THEM AND SOME LIMITED THEIR USE. OVER TIME, CALCULATORS BECAME RECOGNIZED AS TOOLS TO MASTER, NOT FEAR.”

5. Generative AI: Creates new content using vast data models. Examples: Virtual assistants that draft email; Microsoft co-pilot; ChatGPT, which drafts articles, summarizes information and compares concepts

For instance, you can use AI to bridge the gap between wealth management (a sponsor’s focus) and nutrition’s role in cognitive health (a speaker’s topic).

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

legal professionals can enhance both efficiency and effectiveness. How Advisors Can Use AI Responsibly To mitigate risks, advisors should: • Verify all AI-generated recommendations before presenting them to clients. • Ensure compliance with ethical and regulatory standards when using AI tools. • Protect client confidentiality by avoiding inputting sensitive data into public AI platforms that lack proper security measures. • Use AI as a tool, not a replacement for independent judgment. • Monitor for bias by regularly auditing AI models to ensure fairness in lending, investments and risk assessments. • Use AI as a supplement – not as a replacement – by combining AI insights with human expertise and judgment. • Enhance – not automate – decisionmaking by having AI assist in analysis, but not replace your fiduciary responsibility • Stay updated on AI regulations and industry best practices While AI can enhance efficiency, research and portfolio management, it should never replace human expertise and ethical responsibility. Smart advisors will embrace AI as a supplement – not as a substitute – for sound financial judgment. And with that, “AI deposit my final thought.”

Within seconds, it will provide five connections, three of which could be refined and used. To illustrate AI’s predictive nature, one can start lectures by asking audiences to complete phrases like “bread and __” or “as a matter of __.” Just as humans rely on learned patterns, AI does the same – only at scale. So, we are aware AI can help write and even re-write, but what are some concerns? The Risks: AI’s Hallucinations and Legal Pitfalls While AI can be a valuable tool, it comes with risks. Consider these AI-generated responses to two prompts: 1. Do you generate false information? ChatGPT replied: “Yes, AI models like me can sometimes produce inaccurate, misleading or entirely fabricated content. This occurs because my responses are based on statistical patterns rather than actual knowledge.” 2. Can advisors face ethical and legal consequences for using AI – respond in short sentences: ChatGPT responded: “Yes, advisors can face ethical and legal consequences for using AI. Regulatory Violations – Misuse of AI can breach SEC, FINRA and CFPB rules Confidentiality Breaches – Inputting client data into AI may violate privacy laws Bias and Discrimination – AI-driven decisions can lead to unfair lending or investment practices

Inaccurate Advice – AI can generate misleading financial insights, harming clients Unauthorized Practice – Over-reliance on AI without proper oversight can be problematic Fiduciary Duty Violations – AI-generated advice must align with client best interests Legal Liability – Bad AI-driven recommendations can lead to lawsuits or penalties.” Embracing AI with Caution Like calculators before it, AI is here to stay. Rather than ignoring or fearing it, the best approach is to embrace AI’s potential while staying mindful of its limitations. By learning how to use AI responsibly,

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WWW.FLORIDABANKERS.COM APRIL | MAY 2025 — 15

GOVERNMENT RELATIONS

BANKPAC 2025 DRIVING THE FUTURE OF BANKING ADVOCACY

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

T he FBA’s 2025 BankPac Board of Directors is energized and ready to lead BankPac into another year of impactful advocacy and success! Thank you for your support. We extend our heartfelt gratitude to all who have contributed to BankPac over the years. Your investments are crucial in safeguarding the future of our member institutions and ensuring a thriving financial landscape in Florida. 2026 Election Cycle: the road ahead. With a busy 2026 election season on the horizon, BankPac funds will play a vital role in supporting candidates who champion a free and competitive marketplace. Your continued involvement is key to strengthening our collective voice and advancing the banking industry. Meet your 2025 BankPac Board of Directors. BankPac’s Board represents a diverse group of dedicated bankers from institutions of all sizes across the state. We deeply appreciate their time, talents and commitment to advancing BankPac’s essential mission. • Ralph Betancourt, Chair, First Colony Bank of Florida • Susan Blackburn, Seacoast Bank • Gary Carney, First State Bank of the Florida Keys • Guillermo Chiang, ServisFirst Bank • Jason Crowe, Community Bank • Joe Dorsey, InclusiveBANK (I/O) • Veronica Flores, United Community Bank, Inc. The 2025 BankPac Board:

• Courtney Gage, Citizens First Bank • Barclay Harless, Valley Bank • Carlos Lafigliola, Amerant Bank, N.A. • Jason Isbell, Regions Financial Corporation • Nicole Jones, First National Bank Coastal Community • McHenry Kane, City National Bank of Florida • Neil Kinnebrew, Synovus Financial Corporation • Greg Littleton, Citizens Bank & Trust • John Medina, First Federal Bank of Florida • Tom Pennekamp, Truist Bank • Steve Prielozny, Bank of Belle Glade • Rick Pullum, One Florida Bank • Drew Saito, Locality Bank • Mike Sontag, Seacoast Bank • Alex Soto, International Finance Bank • John Thompson, Central Bank • Rob Trott, First National Bankers Bank Support BankPac at our upcoming Silent Auction! Don’t miss the BankPac Silent Auction on Tuesday evening, June 10, during the FBA’s 137th Annual Meeting at The Ritz-Carlton Naples. This exciting event offers a fantastic opportunity to bid on amazing items, both large and small, with all proceeds directly supporting BankPac’s mission. We need your help! Consider donating an item to the Silent Auction to help us reach our fundraising goals. For donation details, please contact Cheryl Tucker at (850) 701-3508, or ctucker@floridabankers.com. Together, let’s continue to protect and promote a prosperous future for Florida’s financial institutions!

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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FBA MEMBERS HEAD TO D.C. FOR IMPACTFUL 69TH ANNUAL ADVOCACY TRIP

I n February, more than 80 FBA member bankers, partners and staff traveled to Washington, D.C. to engage directly with key policymakers and spotlight pressing issues affecting the banking industry. Front and center: reversing the massive regulatory burden limiting bankers’ ability to serve their customers and communities with the products and services that best meet their needs. Power-Packed Day 1 at ABA Headquarters Monday’s agenda at ABA headquarters set the stage for a high-impact week, featuring: • Executive Leadership Meetings — The FBA Executive Board and Board of Directors convened to align on strategy. • Communications Briefing — Peter Cook, ABA’s Chief Communications Officer, shared insights on navigating today’s political climate and addressing related customer questions. • Legislative Rundown — ICBA’s Paul Merski and ABA’s Kirsten Sutton and Jess Sharp broke down key legislative priorities and dynamics on the Hill. • Regulatory Strategy Discussion — ABA’s Ginny O’Neill and Hugh Carney, with ICBA’s Lance Noggle and Michael Emancipator, outlined what’s happening at the agencies and tackled top deregulatory priorities. • Litigation Insights — ICBA’s Jenna Burke and ABA’s Andrew Doersam provided an update on ongoing litigation and strategic legal efforts. Day 2: A Day on Capitol Hill Attendees took their advocacy straight to the U.S. Capitol, meeting with members of Congress and connecting with the Florida Delegation during a reception at the Florida House. Discussions covered

critical industry concerns with: • Chairman French Hill (AR-2) • Chairman Brian Mast (FL-21) • Rep. Mario Diaz-Balart (FL-26)

• Rep. Andy Barr (KY-06) • Rep. Aaron Bean (FL-4)

• Rep. Vern Buchanan (FL-16) • Rep. Byron Donalds (FL-19) • Rep. Tom Emmer (MN-6) • Rep. Mike Haridopolos (FL-8) • Tom Moran, Chief of Staff for Rep. Maria Salazar (FL-27) • Rep. Debbie Wasserman Schultz (FL-25) • Rep. Greg Steube (FL-17) • Sen. Ashley Moody (FL) • Sen. Rick Scott (FL) • U.S. Senate Banking Committee staff Day 3: Policy Deep Dives and Fraud Prevention Insights Back at ABA headquarters, attendees gained firsthand regulatory perspectives from top industry officials, including: • The Honorable Travis Hill, Acting FDIC Chairman • The Honorable Rodney Hood, Acting Comptroller, OCC • Drew Kohan & Susan Torzilli, Federal Reserve Board experts from Consumer and Community Affairs Rounding out the program, Paul Benda, ABA EVP Risk Fraud, and Cybersecurity delivered an essential session on Countering Fraud – Tools and Strategy. This year’s D.C. trip was a powerful opportunity for FBA members to raise their voices, advocate for policy change, and ensure the industry remains strong and effective for the communities it serves. See you next year!

18 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

WWW.FLORIDABANKERS.COM APRIL | MAY 2025 — 19

1. FBA Board of Directors 2. ABA staff Blake Early, Matt Brown, Mary Elizabeth Stringer and Caitlin Taylor 3. ABA’s Ginny O’Neill and Hugh Carney, ICBA’s Michael Emancipator and Lance Noggle 4. Rep. Greg Steube (FL-17) 5. FBA members Israel Velasco and Harlan Parrish 6. ICBA’s Paul Merski and ABA’s Kirsten Sutton and Jess Sharp 7. U.S. Senate Banking Committee staff members 8. Chairman French Hill (AR-2) 9. Joe Schaefer of NFP Executive Benefits and FBA Board Member, GRC Member and Past Chair Lloyd De Vaux 10. Chairman Brian Mast (FL-21)

11. Rep. Debbie Wasserman Schultz (FL-25) 12. Rep. Aaron Bean (FL-4) 13. Rep. Mario Diaz-Balart (FL-26) 14. Sen. Ashley Moody (FL) 15. FBA President & CEO Kathy Kraninger and Sen. Rick Scott (FL) 16. FBA President & CEO Kathy Kraninger and Sen. Ashley Moody (FL) 17. FBA Chair Elect Garrett Richter and Sen. Rick Scott (FL) 18. FBA EVP, Government Affairs Anthony DiMarco and Rep. Mike Haridopolos (FL-8) 19. FBA President & CEO Kathy Kraninger and Rep. Tom Emmer (MN-6)

20 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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FLORIDA BAR CALLS FOR VOLUNTEER ARBITRATORS AND MEDIATORS

BY KENDALL SPENCER, THE SPENCER GROUP

F orida bankers historically have been the most community-focused individuals in the cities and towns across our great state. Individuals and businesses have respected and placed their trust in the banks and the bankers they represent since the first bank, The Bank of Florida in Tallahassee, was chartered in 1828. Florida bankers have been, and are, integral to fostering financial stability and growth within our communities, ultimately contributing to their overall well-being and prosperity by providing financial services, economic growth, investment in community projects, financial education, risk management and support during economic downturns and emergencies. It is also well recognized that Florida’s banks and bankers are the most volunteer-minded in the communities we serve. You and I have personally volunteered and served, contributing thousands of hours in dozens of organizations and projects during our professional banking careers. It is with this in mind that I want to make you aware of one of the most rewarding volunteer opportunities I have experienced and would ask you to strongly consider. Fifteen years ago, I was nominated to serve as a non-lawyer on the North Florida Bar Association’s Grievance Committee, on which I served for six years until I termed out. I was then offered the opportunity to serve as a non-lawyer on the Florida Bar Association’s Fee Arbitration and Mediation Program, on which I currently serve. This program, established in 2004 and regulated by The Florida Bar, offers attorneys and former clients the means by which to resolve fee disputes outside of the civil court system. Because the services are free, the Bar must seek volunteer mediators and arbitrators. The Florida Bar is seeking volunteer arbitrators and mediators throughout the state for the Grievance Mediation and Fee Arbitration programs. In particular, these programs are seeking non-lawyer arbitrators willing to serve on three-person panels, usually consisting of two Florida Bar attorneys and a non lawyer volunteer. Bankers are particularly qualified to

serve as non-lawyer volunteers through our financial expertise, risk assessment and negotiation skills in mediating disputes. Since the pandemic, most arbitration hearings and mediation conferences are conducted via on-line platforms. Volunteer mediators and arbitrators schedule the cases on dates and times convenient to their schedules. Volunteers are asked to commit to taking two arbitrations per year. I have found a bankers’ understanding, and perspective can be extremely helpful in providing a fair outcome. (And to be clear, I have never taken part in a case that involved one of the bank’s customers). While acting as neutral participants, the panel is presented with the facts and weighs the evidence while deciding the credibility of witnesses. The hearing is concluded once both parties have no further evidence to present; the panel then renders a decision or takes the matter under advisement, followed by a written decision. Most mediations and arbitrations are completed in a few hours or less and offer a win-win-win scenario: members of the public gain confidence their dispute is being addressed by a fair, independent neutral party; attorneys get a resolution with a former client in a forum that is not in a public setting with court filings and accusations filed against them in the public domain; and program volunteers get to provide a valuable public service. As a banker, you receive many benefits as a program volunteer, including professional growth, network expansion and community impact – and you will be providing an important and valuable service to both parties involved, and to The Florida Bar. If you or anyone you know may be interested in becoming approved as an arbitrator and/or mediator under The Florida Bar’s Arbitration and Mediation Programs, I encourage you to visit the Florida Bar Association website at floridabar.org (click on About the Bar/Committees/Standing Committees/Grievance Mediation & Fee Arbitration); email Susan Austin at saustin@floridabar.org; or call Shanell Schuyler, Director Florida Bar, AC/AP Intake, at (850) 561-5647.

22 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING