Florida Banking August 2021

Daniel R. Sheehan, CEO

Led by an Innovative & Entrepreneurial Spirit Professional Bank THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM AUGUST 2021

Editorial & Executive Offices 1001 Thomasville Road, Suite 201 Tallahassee, FL 32303 850-224-2265 www.floridabankers.com Advertising & Production Offices 945 Winnetka Ave. N., Ste. 145 Golden Valley, MN 55427 952-835-2275 For advertising information, contact Valerie Fischer, sales account executive 913-261-7055 Valerie@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 2021 Alex Sanchez President and Chief Executive Officer Fax 952-835-2295 www.BankBeat.biz

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 36

NUMBER 7

AUGUST 2021

ON THE COVER 8 - - Professional Bank: Led by an Innovative & Entrepreneurial Spirit CONTENTS 4 - - - - - - - - -Chair’s Message 6 - - - - - - Straight Talk from the President's Desk 14 - - - - Government Relations: Be Careful Who and How You Call — Florida Adopts a Telephone Solicitation Law 15 - - 2021 Silent Auction Donors 16 - -BancServ Endorsed Partner: Slippery Slope - Another Yield Curve Shift Has Community Bankers Guessing 18 - - - - Going Back to School? Florida Bankers Educational Foundation (FBEF) Offers Financial Assistance 20 - -FBA's 2021 Annual Meeting 26 - - - - - Personal Transactions 27 - - - - - - - - - - - - - Kudos 29 - - - - - - FBA Staff Spotlight 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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Fab Brumley Chair

Bill Penney Chair-Elect

Greg Nelson Immediate Past Chair

Lloyd DeVaux Second Immediate Past Chair

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On the Cover: Professional Bank CEO Daniel R. Sheehan Photos by Daniese Betito, Images for Business, Orlando, Fla.

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

Image ©istock.com/Maxiphoto

CHAIR’S MESSAGE

EMERGING TECHS AND UPSIDE POTENTIAL FOR BANKS

BY FAB BRUMLEY, FBA CHAIR

"WE NEED TO KEEP AN EAR TO THE GROUND AND AN EYE TO THE FUTURE, AND CULTIVATE A WILLINGNESS TO LEARN."

I t was so refreshing to see everyone face-to-face at the FBA’s recent 132nd Annual Meeting in Palm Beach. After a long year of Zoom meetings, it’s safe to say we felt safe and enthusiastic about gathering together at The Breakers to network in person. We enjoyed the privilege of learning alongside one another about the challenges and opportunities within our industry. This year, there were interesting discussions about the impact of the Covid-19 pandemic on the banking industry, particularly digital banking and emerging payment methods like cryptocurrency. Our impressive keynote speaker, financial services forecaster and analyst Lee Wetherington, gave us a lot to think about during his presentation, “Emerging Techs 2021: The Abstraction of Financial Services & What it Means for Banks.” I’d like to share a few of the takeaways that I believe are critical 1. We live in a hybrid-money world; w understanding so we can identify bot opportunities. Wetherington shared some comp g about cryptocurrency and digital bank g do not own crypto, it is important to u a large percentage of consumers have i 40 percent of all American consumers form of crypto in the next 12 month a study by Ron Shevlin at Cornerston , percent of consumers said they would buy and sell cryptocurrency from their bank if it were offered. 2. The upside potential for community banks is to provide what the current banking-as-a-service (BaaS) apps are missing. Wetherington pointed out three things these apps are missing: 1) Outbound aggregation; 2) A financial health score, and 3) Personal service at the moment of need. Personal service, of course, is the “superpower” of community bankers. How would we go about plugging these gaps for our customers… ? y g

3. Community banks have an opportunity to invert banking-as-a-service and embed the best of what’s out there into their native digital banking experience. Wetherington made the point that bankers have historically feared “open banking” because we assume it makes it easier for our customers to leave us. In reality, the situation is “both/and” rather than “either/ or.” Our customers are already everywhere else. We know this to be true because we, too, use payment apps like Venmo, Zelle, PayPal and Square. Open banking is bidirectional. We can bring the best of what’s out there (that our customers are already using!) into our native digital banking experience, and this is called “embedded fintech.” You control the relationship with the customer. The pandemic showed us just how important or our industry. We need to keep an ear g nd an eye to the future, and cultivate a g arn. I encourage you to take advantage nal opportunities offered by the FBA. p y like to thank the FBA team for their

g nizing a successful convention and for g otel rooms, meals and more amidst p autions. g ghts of the Annual Meeting included phenomenal keynote speakers, our ons, regulator panel, BankPac Silent

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Auction fundraiser, and our final gala with hilarious entertainment from the Deuces Wild! Dueling Pianos. Speaking of entertainment – nothing was more so than the wardrobe faux pas of our Immediate Past Chair Greg Nelson, when he arrived in his boxers (!) because he “mistook” our event for a Zoom meeting. Congratulations to our new officers and award winners. It is always an honor to recognize members of our association for their service and dedication. If you weren’t able to attend this year, I hope you will join us next year.

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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STRAIGHT TALK FROM THE PRESIDENT’S DESK

MY CONCERN FOR OUR GROWING NATIONAL DEBT

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

"JUST 21 YEARS AGO, OUR NATIONAL DEBT STOOD AT $5 TRILLION. BY THE END OF THIS YEAR, IT WILL BE A WHOPPING $34 TRILLION."

W hen I sat down to think about the important issues I’d like to share with you, several came to mind. I am concerned about the lack of objectivity by the mainstream media. I am concerned about the fight for freedom that is happening right now in Cuba, under a socialist regime. I considered writing

this latest $4 trillion bill is that it will be paid for by borrowed monies. We are adding $4 trillion to our national debt. Yet President Joe Biden touts this as a great victory for America. If I could speak with him directly, I would say: “Mr. President, how are we going to repay this debt?”

about my heroes, the men and women who serve in the United States Armed Services. But the issue I’d like to write about is one that nobody in Washington, D.C. seems to care about anymore. Their words state they do, but their actions don’t. And I am holding both political parties responsible for the massive and drastic increase since the year 2000 of our nation’s national debt. It stands today at $29 trillion, and then we must add an additional $2 trillion pushed by President Joe Biden. As of July 16, the

No one cares. President Biden and his followers and supporters see this as a great victory, yet no one is asking the obvious: Will the national debt of $34 trillion weaken and harm the United States, the most powerful nation ever created? To put this in perspective, just 21 years ago, our national debt stood at $5 trillion. By the end of this year, it will be a whopping $34 trillion. Again, I hold both sides of the political aisle responsible for this pending disaster. Our nation deserves better. Our

Washington Post has reported that the President and Senate Majority Leader Chuck Schumer have reached an agreement on a $4 trillion so-called infrastructure bill. Our nation’s annual national budget is almost $4 trillion. Forget the merits of this latest bill, you may agree or disagree with all or parts of it. What irks me about

last four Presidents, and this includes Joe Biden, are leaving this country bankrupt. Their irresponsible actions will lead to a judgment day requiring drastic and very difficult choices required for the good and perhaps the survival of our great nation. But no one has this sense of urgency in Washington, and that concerns me.

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

BancServ Endorsed Partners BancServ, Inc., was created by the Florida Bankers Association as an innovative approach to solve problems for financial institutions. By providing research, testing and offering products and services at a discounted rate, BancServ is saving Florida banks two incredibly important resources: time and money. This extensive research and screening performed by BancServ before it contracts with a vendor has allowed institutions of all sizes to become more efficient and effective. BancServ,Inc. is creating

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please call Pamela Ricco, CEO of BancServ or Jim Seay, Managing Director of BancServ at 850-224-2265 .

Led by an Innovative & Entrepreneurial Spirit Professional Bank

The Professional Bank Leadership, from left, are: Daniel R. Sheehan, Mary Usategui, and Abel L. Iglesias.

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

D espite the difficulties our industry faced in 2020, Professional Bank has celebrated exciting milestones in the last year, having completed its Initial Public Offering (IPO) and acquisition of Marquis Bank. On Feb. 14, 2020, the leadership team of Professional Bank rang the bell at NASDAQ’s global headquarters in Times Square to open the trading day — the first (and only!) bank IPO of 2020.

and ease of use. Chairman and CEO Daniel R. Sheehan wants to eliminate friction for the Bank’s clients and make it as easy as possible for them to get “in and out” when opening an account, for example. “We’re the hometown Florida-based bank that’s big enough to bank the blue-chip companies in town, but small enough to be an effective speed-based competitor,” said Sheehan.

WHEN IT COMES TO SERVING CUSTOMERS, PROFESSIONAL BANK PRIORITIZES RESPONSIVENESS, SPEED OF EXECUTION, AND EASE OF USE.

Sheehan doesn’t come from a commercial banking background, and he sees this as an advantage. He started his career at Bear Stearns, and subsequently has been directly involved in the investment and deployment of over $10 billion of institutional real estate capital throughout the United States while holding various positions at national real estate investment banks and financial intermediaries. He is able to look at the company with a fresh perspective and an entrepreneurial mindset.

Headquartered in Coral Gables, Fla., Professional Bank was founded to cater to the professionals and entrepreneurs who were flocking to South Florida. Today, the bank has 11 locations throughout South Florida, Tampa and Jacksonville, in addition to a Digital Innovation Center located in Cleveland, Ohio, and an office located in Bedford, N.H., for its search funding lending platform. Last year, the bank’s total assets grew to $2.5 billion. When it comes to serving customers, Professional Bank prioritizes responsiveness, speed of execution,

Professional Bank, Continued on page 10

MEET CEO DANIEL R. SHEEHAN

Daniel R. Sheehan has served as the CEO of Professional Bank since 2019. He was a Co-Founder and Director of the bank and has been Chairman of the Board since September 2013. He has served as both Chairman of the Board and CEO of the Professional Holding Corp (NASDAQ:PFHD) since its inception in 2014, and was responsible for the development and execution of its growth, capital and leadership plans. Sheehan has significant experience in capital markets, structured finance, investment banking, community banking and shadow banking industries that provided him with valuable strategic insight on capital flows and associated risk, as well as transactional and execution experience. In 2020, he was invited to meet with U.S. Treasury Secretary Steven Mnuchin in Washington D.C. to discuss the rollout, benefits and challenges

of the newly instituted Paycheck Protection Program, and earlier that year was a guest speaker on Fox Business’ Mornings with Maria to discuss the banking industry and the dynamics of the Florida economy following his IPO of Professional Holding Corp. Sheehan has been recognized for his achievements in finance, banking, real estate and deal making by South Florida CEO as the “Six Million Dollar Man”, South Florida Business Journal’s “Heavy Hitter in Commercial Real Estate Finance” and Palm Beach Magazine’ s “Palm Beach 100” as one of Palm Beach County’s most influential business leaders in 2020. He was an economics major and varsity football letterman at Duke University prior to receiving his Bachelor of Science in Business Administration from the University of Florida and his Master of Business Administration from the University of Miami.

WWW.FLORIDABANKERS.COM AUGUST 2021 — 9

Even before the pandemic, Professional Bank opened its Digital Innovation Center, which Sheehan has dubbed its “digital banking brain,” equipped with “all the fun toys” and in-house automation. While some fear that automation will replace employees, Sheehan looks at it differently. He believes that driving efficiency over time will empower employees and free them up to do what they do best: exercise good judgement and reason. The bank has developed an online account-opening tool that they will roll out in the near term. This is one of a number of internal tools and new client offerings that the digital team plans to launch in 2021.

believe we’re in a unique position to do that with our technology and entrepreneurial banking system,” said Iglesias. “You’ve got to be innovative and think outside the box. There’s no reason we can’t try things, so long as we stay within the guidelines prescribed by our regulators and policymakers. But we often ask ourselves, ‘why not?’ As long as we keep that kind of spirit, I believe we’re going to do very well.” Mary Usategui, Executive Vice President and CFO, believes that working with their team in Ohio allowed them to quickly adapt to a remote work environment. “We were positioned on Microsoft Teams, and we had different avenues to hold meetings virtually…

PROFESSIONAL BANK ENCOURAGES ITS TEAM TO BE CREATIVE AND PUSH THE ENVELOPE, KNOWING THAT INNOVATION IS KEY TO STAYING AHEAD OF THE CURVE.

“The clients love our technology. But they also love the fact that they can get somebody on the phone if needed,” said President and COO Abel L. Iglesias. “We’ve grown organically by recruiting the best.” Professional Bank encourages its team to be creative and push the envelope, knowing that innovation is key to staying ahead of the curve. “There’s no question that we want to continue to grow. We want to capture market share, and we

So when the pandemic hit, we were better prepared as a result,” said Usategui. As she, Sheehan, and Iglesias reflect on the previous year, they realize Covid’s impact on their first merger with Marquis Bank. Shareholders found themselves voting to approve the deal in a parking lot, after Miami Beach restricted public gatherings (making it illegal for more than two people to meet in a commercial area). Marquis employees who

MEET COO ABEL L. IGLESIAS

Officer of Eastern National Bank. Iglesias is a member of the board of directors of the Miami Branch of the Federal Reserve Bank of Atlanta. He is also Vice Chair on the board of directors of Doctors Hospital and board member of the Coral Gables Museum. He is a former Chair of Miami Dade College Center for Financial Training; a former Member of the City of Coral Gables Historic Preservation Board; former Chair of Friends of WLRN (91.3 FM) NPR; former board member of the Latin Builder’s Association; and former board member of the Miami-Dade Beacon Council. Iglesias holds an MBA in business administration from the University of Miami and a bachelor’s degree, magna cum laude , in business administration from Barry University.

Abel L. Iglesias has served as a Director of Professional Bank and currently serves as its President and Chief Operating Officer. Most recently, Iglesias participated in the IPO efforts to take Professional Bank public and list on the NASDAQ Global Select Exchange. Additionally, a month-and-a-half later, closed on the acquisition of Coral Gables-based Marquis Bank. From 2013 to 2016, Iglesias was Executive Vice President and Chief Lending Officer at Professional Bank. Prior to joining Professional Bank, he was President and Chief Executive Officer of JGB Bank N.A.; Senior Executive Vice President at BankUnited FSB; Executive Vice President and Chief Lending Officer for the South Florida region of Colonial Bank; and Executive Vice President and Chief Lending

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Pierce and participated in drills with the SEALs, culminating in a rescue simulation that involved jumping out of a helicopter at 30 feet over the water. Both Sheehan and Usategui took the plunge, though Usategui is terrified of heights. It’s certainly a story that's made its way round the office. The leadership of Professional Bank is proud of the talent they employ.

stayed on with Professional Bank were unable to meet their new colleagues in person for over a year, getting to know one another exclusively through their digital platforms. During the pandemic, the team took “virtual walks” together to get the creative juices flowing. “We always want to be sure this is a fun place to work. And it’s got to start at the top,” said Sheehan.

" A BIG PART OF OUR PAST AND FUTURE SUCCESS IS BEING ABLE TO RETAIN GREAT TALENT... AT THE END OF THE DAY, OUR BRAND IS ONLY GOING TO BE AS STRONG AS THE PEOPLE THAT STAND BEHIND IT AND REPRESENT IT EVERY DAY ON THE GROUND. "

- DANIEL R. SHEEHAN

“A big part of our past and future success is being able to retain great talent,” said Sheehan. “And so when we enter a market, we want to have great bankers, and at the end of the day, our brand is only going to be as strong as the people that stand behind it and represent it every day on the ground.”

“Banks get a bad rap as ‘boring’ and ‘robotic.’ Our industry has done a poor job attracting young people over the years, and we’re addressing that here.” Nothing says “team building” quite like training with Navy SEALs. Last December, the team visited The National Navy SEAL Museum in Fort

MEET CFO MARY USATEGUI

Mary Usategui has served as the Executive Vice President and Chief Financial Officer of Professional Bank since April 2014. Usategui previously served as Vice President and Controller for Professional Bank from May 2010 until March 2014. Prior to joining Professional Bank, she served in various roles, including Senior Financial Officer with Coconut Grove Bank from 2003 to 2010. In all, she has over 18 years of banking experience. Usategui has been a Florida Bankers Association (FBA) BancServ board member since June 2020. She also served as a bank advisory board member for the AAA Scholarship Foundation from 2016 to 2020. She is actively involved in mentoring inner-city youth and has helped transform

the lives of multiple children in the South Florida community. Usategui is a Florida-licensed certified public accountant and received her Master of Accounting from the University of Miami and both her Master of Science degree in Finance and her Bachelor’s degree in Business Administration, Finance and International Business from Florida International University. She was recently recognized by the South Florida Business Journal in 2019 as a “40 under 40” honoree and was named the 2020 “CFO of the Year” by the South Florida Business Journal . Most recently, Usategui was instrumental in helping take Professional Holding Corp. public and list on the NASDAQ in February 2020.

WWW.FLORIDABANKERS.COM AUGUST 2021 — 11

GOVERNMENT RELATIONS

BE CAREFUL WHO AND HOW YOU CALL — FLORIDA ADOPTS A TELEPHONE SOLICITATION LAW

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

P lease have your counsel review Senate Bill 1120, which unfortunately passed this Session. The new law was signed by the Governor on June 30 and potentially affects every business in Florida. The new law contains two important parts. The first part, which amends the Florida Do Not Call statute, is the more problematic. The intent of this part is to stop unwanted telephone solicitation calls we all hate receiving for auto warranties, taxes, Social Security and the like. Unfortunately, the bill morphed into a bill banning solicitation calls using an automatic dialer without the express written consent of the called party. Part of the concern is the lack of a clear definition of automatic dialer. This lack of a clear definition will lead to a flurry of lawsuits. It appears that this part may be in response to a recent U.S. Supreme Court case involving Facebook. In the Facebook case, a consumer alleged that Facebook violated the federal Telephone Consumer Protection Act (TCPA) by sending him an unsolicited text. Turning on the type of technology used by Facebook to send the text, the Court held that since the technology did not store or produce numbers “using a random or sequential number generator,” it was not an “auto dialer” under the TCPA and, therefore, Facebook was not liable. Notably, neither the current Do Not Call Act nor SB 1120 contain exemptions for financial institutions. In addition, the law placed a new requirement that a company receive “prior express written consent” before making “telephonic sales calls” via phone, text or voicemail using an “automated system for the selection or duality of telephone numbers.” To have “prior express written consent,” a financial institution, among other things, would have to have the signature of the consumer and provide them with a document containing a clear and conspicuous disclosure explaining that they are

authorizing telephonic sales calls. The law also creates a rebuttable presumption that any call made to a Florida area code is a call made to a Florida resident. The first part’s other concern is its private right of action for violation of the law. There are three possible outcomes should a company be found guilty of violating the law: To enjoin the action, to impose the greater of the amount of actual damages or $500, or to pay triple the amount if the judge finds that the action was intentional. Moreover, the lawyer need not prove any damages, only that the call was made from an automatic dialer without prior express written consent. As you can imagine, this is a class action lawyer’s dream because the attractiveness of the private right of action means that lawyers can now bring state based class actions, as opposed to previously having to rely solely on the TCPA to seek redress. There are exemptions to the law that apply to our industry including a call to a prior or existing customer; however, the case law is very slim on the definition of a prior customer. The other possible exemption is to collect an existing debt. The first part of the bill will be heavily litigated. Please take the necessary steps to comply with the bill. The second part of the bill amends the Florida Telemarketing Act by changing the permissible call times, changing the number of calls a debtor may receive in any 24-hour period, and prohibiting the use of another telephone number in caller ID to hide who is calling. Please review this part as well to ensure compliance. I wish to thank FBA General Counsel Ginny Childs for her help with this article. Once again, please check with your own counsel for a legal opinion. I am sure that the business community will revisit this bill next Session if it becomes law. We will update you on any changes that we can get next Session.

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

2021 SILENT AUCTION DONORS

A SINCERE THANK YOU TO ALL OF THE BANKS AND INDIVIDUALS WHO CONTRIBUTED TO THE 2021 BANKPAC SILENT AUCTION.

THANKS TO YOUR GENEROUS CONTRIBUTIONS, $58,000 WAS RAISED FOR OUR STATE BANKPAC!

Apollo Bank

First National Bank Coastal Comm. Moyle Fritz First National Bank of Mount Dora Bob White First National Bank of NW Florida Angie Barger Denise Buness Theresa Wallace First National Bankers Bank Michael Malone Jeff Neale Rob Trott First State Bank of the Florida Keys Karen Sharp FirstBank Cali Garcia-Velez Florida Bankers Association Pete Brokaw Anthony DiMarco Thelma Givens Pamela Ricco Florida Business Bank Bill Norris Gulfside Bank Dennis Murphy Interamerican Bank Isis Pacheco Velasco Intercredit Bank, N.A. Simon Cruz International Finance Bank Jose Cueto Legacy Bank Dennis Bedley Mainstreet Community Bank Ben Flowers Marine Bank & Trust Company Bill Penney Ocean Bank Alfonso Macedo Pacific National Bank Carlos Fernandez-Guzman Pilot Bank Rita Lowman Seacoast Bank Susan Blackburn ServisFirst Bank Greg Bryant South State Bank John Corbett

Sunstate Bank

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Bank Leumi

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Bank of America

The Bank of Tampa Corey Neil Bill West The Northern Trust Alex Adams United Southern Bank Rob Adrid

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BankUnited

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Tom Basta Citizens Bank & Trust Greg Littleton Citizens First Bank Lindsey Blaise Commerce National Bank & Trust Guy Colado Ray Colado Community Bank of the South Bill Taylor Community Bankers Webinar Network Larry Williams Crews Banking Corporation Bill Crews Dorsey Consulting Joe & Karen Dorsey Edison National Bank/Bank of the Islands Robbie Roepstorff FBA BancServ Jim Seay First Bank, Clewiston Miller Couse Carey Soud First Citrus Bank Jack Barrett First Florida Integrity Bank Garrett Richter

MANY THANKS TO OUR AUCTION SPONSOR, FIRST NATIONAL BANKERS BANK!

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BANCSERV ENDORSED PARTNER

SLIPPERY SLOPE: ANOTHER YIELD CURVE SHIFT HAS COMMUNITY BANKERS GUESSING

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BY JIM REBER, PRESIDENT AND CEO, ICBA SECURITIES

"IF LONG AND SHORT RATES HAVE VERY LITTLE DIFFERENCE, IT INDICATES INVESTORS ARE RELATIVELY SATISFIED THAT INFLATION IS NOT A THREAT."

A nd now for something completely different. Except it’s not; it just hasn’t been around for a number of years. But it most assuredly has an impact on your community bank’s bond portfolio and on the securities you’ll be thinking about purchasing the next time you’re in the market. I’m speaking once again about the ever-popular slope of the yield curve. For our purposes, these are the yields on the various on-the-run Treasury issues, specifically the ones at the two-year and 10-year maturity terms. Those are the most popular benchmarks for bond market analysts to use when the slope of the yield curve is discussed. What is different so far this year is that the slope, or difference in yield at the benchmarks, has both grown and shrunk in a few short months. This surely doesn’t look like a secular trend vis-à-vis 2017 through 2019, when the slope gradually, grindingly, flattened by more than 100 basis points (1 percent). So, now that we’ve established that bond yields of differing tenors seem to have minds of their own, what does that mean to your community bank? More is better, usually Most community bankers have been wishing for higher rates since late 2019, when the economy started to lose oil pressure. Loan demand (but not credit quality, thankfully) had already begun to deteriorate by the time Covid-19 became part of our vocabulary. In short order, the Federal Reserve pushed short-term yields to near zero, began buying billions of bonds each

month and launched a series of programs to back-stop the economy. The yield curve and — not surprisingly — net interest margins flattened. What we experienced in the first quarter of 2021 is known as a “bear steepener.” This occurs when monetary policy is on hold at the same time bond investors get the shakes about inflation. With all the fiscal stimulus coursing through the economy’s veins, long-term buyers demanded more protection against purchasing power erosion, and the slope of the curve jumped nearly 80 basis points by Mar. 31. Alas, this trend proved to be short-lived. In the second quarter, especially after the Fed’s June meeting, the bond market gave back a large portion of the 2021 yield improvement. By the halfway point in the year, the curve’s slope was back down by about 35 basis points. This was not welcome news for portfolio managers, who are still hustling to invest idle cash, which is probably leaving margins exposed to falling rates. What shape indicates This is probably a good time to recount what the slope of the curve telegraphs about investor sentiment. If long and short rates have very little difference, it indicates investors are relatively satisfied that inflation is not a threat. Two-year buyers will almost always take their cue from the Fed, while 10-year buyers, who are quick to retreat if they sense prices are about to rise, have gradually required less risk premium over the past 30 years since inflation has stayed under wraps.

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

(Investors of a certain age will recall the term “bond vigilantes.” These institutional buyers would demand higher yields if the combination of monetary and fiscal policies weren’t to their liking. In the two decades, the bond vigilantes have gone the way of Wyatt Earp.) What took place in June of this year would qualify as a “bull flattener.” Longer rates retreated when the Fed, and in particular Chair Jay Powell, put the bond market more at ease regarding incipient inflation fears. The flatter curve means that longer-term investors aren’t rewarded as much for their additional price risk. That is relevant to community banks in 2021, since bond portfolios are as long as they’ve ever been, using duration as an indicator. Where to go from here What’s the next move for the shape of the yield curve? I’m not going to hazard a guess, but I will point out several tidbits of interest. For one, the current slope of about 120 basis points is almost exactly the past 10 years’ average. For another, the recent yield rise for the two-year Treasury note also restored its 10-year average spread over Fed Funds.

And finally, the Fed’s June dot plot may have shown that more members are projecting the first hike earlier than in the recent past, but the consensus is still in 2023, which is a long way from here. Stay tuned for more reporting on our mountain of debt, as depicted by the thrilling slopes of the U.S. Treasury yield curve. Jim Reber is president and CEO of ICBA Securities, the Independent Community Bankers of America’s institutional, fixed-income broker-dealer for community banks. Reach him at jreber@icbasecurities.com Balance Sheet Academy ICBA Securities and its exclusively endorsed broker Vining Sparks announce the 2021 Balance Sheet Academy. It will be presented in a live session Oct. 18-19 in Memphis, Tenn. This intermediate level course will discuss a variety of topics including interest rate products and portfolio modeling. Space is limited. Visit viningsparks.com to register. Up to 12 hours of CPE credit are offered.

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FLORIDA BANKERS EDUCATION FOUNDATION

GOING BACK TO SCHOOL? FLORIDA BANKERS EDUCATIONAL FOUNDATION (FBEF) OFFERS FINANCIAL ASSISTANCE

BY LETTY NEWTON, DIRECTOR, FBEF

H ave you or a coworker been thinking about going back to school but wonder how you would pay for it? The cost of returning to school can make students feel like it would be too expensive, but it doesn’t have to be with the right resources. The Florida Bankers Educational Foundation (FBEF) can help you with your education expenses. Since 1956, the FBEF Scholarship/Loan Program has offered forgivable loans which are paid in full after the student completes one year of employment with a Florida bank or trust company following graduation. Before applying, students must already have been employed at least part-time by a Florida bank or trust company. Undergraduate applicants must have been employed for two years prior to

required one year of full-time employment in Florida banking after graduation. Freshmen and sophomore students who are career bankers are also eligible for an additional $3,000 in funding, increasing the amount of potential funding for undergraduate grant recipients to $7,000. Over the years the FBEF has seen more and more career bankers wanting assistance to continue their education outside of traditional college degree programs. The Florida Bankers Association (FBA) has been committed to helping banks since 1888 and we continue to do that today with new ways to help bank employees. In addition to providing financial assistance to bankers who wish to return to school to complete their college degree, the FBEF is pleased to announce the

FBEF Career Development Program . Bankers who will be attending an approved professional development program, but do not have financial support from their employer, will be able to apply for FBEF financial assistance that can help pay for tuition. Students attending the Florida School of Banking, Florida Trust School and Florida Graduate Trust

application and graduate applicants must have been employed for five years prior to application. The FBEF Scholarship/ Loan Program offers financial assistance of $4,000 for junior and senior students and $5,000 for graduate students. Students attending one of the FBEF’s participating colleges and universities, majoring in a banking

"OVER THE YEARS THE FBEF HAS SEEN MORE AND MORE CAREER BANKERS WANTING ASSISTANCE TO CONTINUE THEIR EDUCATION OUTSIDE OF TRADITIONAL COLLEGE DEGREE PROGRAMS."

related field of study, and planning to continue their career in Florida banking are eligible to apply. Since many of the FBEF Scholarship/Loan recipients work full-time, students are only required to take 12 credit hours a calendar year. Any banker who has five years of full-time employment in Florida banking prior to applying for the FBEF Scholarship/Loan is eligible for a grant. Grant recipients are excused from the

School may apply for tuition assistance. In addition, students attending the LSU and Stonier Graduate School of Banking, the FSU Juris Master Program in Financial Services Compliance, or most ABA/ICBA/ FBA endorsed graduate school of banking programs may also apply. The FBEF Career Development Program offers financial assistance of $500 per year for FBA programs such as the Florida School of Banking,

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Florida Trust School and Florida Graduate Trust School. Preference will be given to an employee of an FBA member institution who has been employed full-time for two years prior to application. The student may reapply in the following year to renew funding for the next year of school, if enrolled in a multi-year program. The FBEF Career Development Program also offers financial assistance of $1,500 per year for programs such as the LSU Graduate School of Banking, Stonier Graduate School of Banking and any ABA/ICBA/FBA endorsed graduate school of banking. Preference will be given to an employee of a FBA member institution who has been employed full-time for five years prior to application. The student may reapply in the following year to renew funding for the next year of school, if enrolled in a multi-year program. Annual funding limits are set by the FBEF Board. In the event that applications received exceed budgeted funding amounts, recipients will be chosen based

on the length of employment in Florida banking. Because the FBEF’s goal is to help as many different students as possible, one funding application per student per program will be accepted each year for the LSU Graduate School of Banking, Stonier Graduate School of Banking and any ABA/ICBA/FBA endorsed graduate school of banking. For more information about how the FBEF might be able to help you, please contact FBEF Director Letty Newton at (850) 701-3522 or lnewton@ floridabankers.com. FBEF Applications can be found online in the Education section of www. floridabankers.com. For the past 65 years the FBEF has helped bankers around the state advance their careers through education. The FBEF is a 501(c)(3) non-profit organization registered with the Florida Department of Agriculture & Consumer Services, Registration Number SC-07621.

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FBA'S 2021 ANNUAL MEETING THE BREAKERS, PALM BEACH

PHOTOGRAPHS BY BROOKE HARRISON, PUBLICATIONS DIRECTOR, FBA T he FBA held its 132nd Annual Meeting at The Breakers in Palm Beach on June 14-16. The event was a great success and all were thankful for the opportunity to come together in person for networking opportunities, engaging keynotes and breakout sessions and entertainment. Outgoing FBA Chair Greg Nelson passed the reins to incoming FBA Chair Fabiola Brumley. FBA’s new officers and board of directors began their terms and celebrated the service of past officers. In keeping with tradition, the FBA presented awards to a select group of deserving bankers, recognizing their dedication and contributions to the FBA and Florida’s banking industry. The 2021 award winners were: Lifetime Achievement Award Kim Davis, CFO, Capital City Bank (Tallahassee) and Rudy Schupp (West Palm Beach), who retired from banking in 2018

Chairman’s Award Javier Jorge, Vice President, SBA Lender, Pilot Bank (Miami) Horizon Award Amy Hale, Managing Director-Florida, BMO Private Bank (Naples) Bankers of the Year Awarded to every Florida banker in recognition of the extraordinary efforts bankers throughout our state made during the Covid-19 pandemic, especially in processing PPP funds and working with individuals, families, businesses and organizations that were financially impacted by the pandemic. This award typically recognizes an individual who demonstrates the highest level of commitment to the banking industry and service to his or her community.

WELCOME RECEPTION

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WELCOME RECEPTION

SILENT AUCTION

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SILENT AUCTION

CLOSING GALA

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CLOSING GALA

GENERAL SESSION, AWARDS, & LUNCHEON

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GENERAL SESSION, AWARDS, & LUNCHEON

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SPECIAL THANK YOU TO OUR SPONSORS DIAMOND LEVEL

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PERSONAL TRANSACTIONS

PROMOTIONS/NEW HIRES FORT MYERS

a community banker, Sidlasky will serve the banking and treasury needs of homeowner and condominium associations as well as management companies. She is an active community volunteer engaged with the American Lung Association as a board liaison and has participated the last ten years with Fight For Air Stair Climb. Sidlasky holds a master’s degree in management from Troy University. In her spare time, she enjoys playing golf.

Sanibel Captiva Community Bank announced the addition of Katherine Keuvelaar as a residential loan processing coordinator. She is responsible for processing personal loan files. Prior to joining the bank, Keuvelaar worked in sales for the automobile and wireless services industries. She graduated from Flagler College with a bachelor’s degree in fine arts. MIAMI

Axiom Bank, N.A. announced the addition of Sul Hemani as vice president, SBA relationship manager. In this new role, he will help further grow the bank’s government-guaranteed lending program by generating new SBA

Terrabank announced the addition of Edgar J. Nieto as vice president, loan officer. He will be responsible for business development and contributing to the bank’s efforts in building its brand in the community. In addition, he will work closely

Hemani

and USDA loans. Hemani has nearly two decades of commercial banking experience, including serving as branch manager for two national financial institutions in the Tampa market. Most recently, he worked with small business clients to provide SBA loans and other lending options. Hemani earned a Bachelor of Commerce degree from Premier College in Karachi, Pakistan. He serves as an Economic Planning Board member for the Ismaili Khoja community, where he helps youth plan for their college education. In 2011, Hemani was recognized for his commitment to serving others by receiving the President’s Volunteer Service Award on behalf of the President of the United States.

Nieto

with the bank’s chief lending officer to streamline and improve loan services. Nieto has more than 15 years of banking experience in the South Florida market. He began his career at Coconut Grove Bank in 2006 and rose from teller to vice president and branch manager. In 2015, he moved to Biscayne Bank as vice president, loan officer where he developed and managed a loan portfolio of more than $140 million. Nieto earned both his Master of Business Administration and Bachelor of Science degrees from Florida International University. N APLES AND FORT LAUDERDALE Fifth Third Bank, National executive, Weiss previously led Tampa Bay as city president and was the senior commercial banking executive in the North Florida region. His civic commitments include service as chair of the Tampa Bay Economic Development Council and executive committee for the Florida Aquarium. TAMPA Beach Bank announced the addition of Michele Sidlasky as AVP of Association Banking. She brings many years of relationship-development experience to the bank. Sidlasky previously worked with nationwide property management companies and has past experience in association banking. As Sidlasky Weiss Association, has announced that Jim Weiss will succeed David Call as the regional president for South Florida. Weiss is a 14-year veteran with Fifth Third. Most recently serving as the Middle Market credit risk

RETIRING NAPLES AND FORT LAUDERDALE Fifth Third Bank, National

Association, has announced the retirement of David Call , regional president for South Florida. Call has dedicated more than 20 years to the bank. He will be succeeded by Credit Risk Executive Jim Weiss.

Call

Call’s leadership and community involvement was integral to the growth of the bank’s presence in the market. He has led teams in Florida since 2008. Call previously served as regional president of the bank’s Ohio Valley region and worked in numerous roles in Commercial and Retail before taking on his regional leadership role in 2005. “David’s leadership in the Ohio Valley region and Florida over the past two decades has been significant in helping us grow and expand across geographies with great service. We wish him the best in his next chapter,” said Fifth Third Bank President Tim Spence.

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KUDOS

FBA Congratulates Former General Counsel Carrie Ann Wozniak for Appointment as Judge, Welcomes Ginny Childs

T op 100 U.S. law firm Akerman LLP announced Litigation Partner Carrie Ann Wozniak has been appointed by Florida Governor Ron DeSantis to serve as Judge on Florida’s Fifth District Court of Appeal. She fills the judicial vacancy created by the retirement of Judge Richard Orfinger. Wozniak formerly worked for Akerman Law Firm as the Florida Bankers Association’s General Counsel. “This appointment is a significant honor and we could not be more proud of Carrie Ann,” said Scott Meyers, Akerman Chairman and CEO. “I am confident that she will bring to her new role as a Florida appellate judge the same extraordinary level of legal ability, dedication, and fairness that she demonstrated as an Akerman partner.” Wozniak began her legal career at Akerman in 2007 after a clerkship with the Florida Supreme Court. Board certified by the Florida Bar in Appellate Practice, she was also a member of Akerman’s Appellate Practice, where she represented clients in appellate litigation at the state and federal levels, as well as in commercial litigation in the trial courts. She served as general counsel to the Florida Bankers Association, where she assisted with drafting, revising, and commenting on myriad banking legislation and issues. Wozniak also served as Vice Chair of the Fifth District Court of Appeal Judicial Nominating Commission via nomination by the Florida Bar and appointment by previous Governor Rick Scott, and as a member of the Florida Bar’s Appellate Practice Section Executive Council, Appellate Rules Committee, and Appellate Practice Board Certification Committee. A fierce advocate in the community as well, Wozniak is past chair of Akerman’s Community Impact Team in Orlando, and her work on behalf of abused and neglected children earned her the Orange County Bar Association’s Elizabeth Susan Khoury Guardian Ad Litem Award of Excellence in 2016. She received her bachelor’s with honors from the University of Michigan in 2002 and a J.D. cum laude

from Stetson University College of Law in 2004. “We are very proud of Carrie Ann and have every confidence in her ability to serve in this capacity and even higher callings,” said FBA COO Pamela Ricco. Wozniak is succeeded by Ginny Childs as the FBA’s new general counsel. Childs is the office managing partner

Carrie Ann Wozniak

of Akerman LLP’s Orlando office. She is a commercial litigator with significant experience in business torts, complex commercial foreclosures, non-compete agreements, creditors’ rights and real estate and lender liability. She crafts solutions and restructures debt in a way that helps her clients avoid or curtail litigation. When litigation is unavoidable, Childs is an experienced lead trial lawyer and has obtained complete verdicts for her clients in two jury trials. She has extensive experience in various tort and insurance related cases and has represented some of the world’s largest and best known entities in litigation related to premises security, pre-employment background screening and the Fair Credit Reporting Act. The FBA welcomes Childs and looks forward to working with her. Ginny Childs

SEND US YOUR NEWS Send submissions to Brooke Harrison at bharrison@floridabankers.com

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KUDOS

This article was republished from last month to correct an error.

Englewood Bank Breaks Ground on New Venice Office E nglewood Bank & Trust recently held a groundbreaking ceremony at the site of its new Venice office. The bank has operated a loan and

will be no drive-thru banking lanes, although the bank will feature a walk-up ATM. Plans had to be approved by the Venetian Theme Architectural Control District, a division of the city’s Architectural Review Board.

trust production office in Venice since 2013. The new office will be a two story, 4,217-square-foot structure. As a full-service branch, it will offer consumer, commercial and real estate loans, checking and savings accounts, full trust and investment management services and more.

“We are excited to expand our loan and trust production office into a full service banking center,” said Kevin Hagan, President. “I think it’s a great opportunity for all of us to grow and be part of this community. I also want to thank a lot of people who helped us throughout this process, including city employees, city council and volunteer architectural review committees.” Since the location is in the heart of Historic Downtown Venice, there

Members of the Englewood Bank & Trust leadership team gather during the Venice office groundbreaking: From left, Vice President of Retail Banking Christine Davis, Commercial banker Ryan Clausen, Trust Business Development Officer Kerry Hunter, President Kevin Hagan, Vice President and Trust Officer Terri Griffith, Vice President of Commercial Lending Len Carney, Vice President and Residential Lender Terese Duelge, and Senior Vice President and Senior Lender Kevin Casey.

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