Florida Banking February/March 2025

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM SEPTEMBER 2020 House Speaker Perez on Guiding the Legislature THE MTHAEGMAAZIGNAEZOINFETOHFETFHLEOFRLIDOARIBDANBKAENRKSEARSSAOSCSOIACTIAOTNION WWW.FLORIDABANKERS.COM SEPTEMBER 2020 WWW.FLORIDABANKERS.COM FEBRUARY | MARCH 2025 Voices of Leadership Senate President Albritton,

Stay One Move Ahead of the Competition

Discover® Debit Gives You The Advantage.

When it comes to your debit program, you should always have the upper hand. Discover® Debit puts you in control of the board with superior economics, marketing support, and personalized service. Checkmate.

Debit that’s here for you.®

Find out more at DiscoverDebit.com/Win

Editorial & Executive Offices 1001 Thomasville Road, Suite 201 Tallahassee, FL 32303 850-224-2265 www.floridabankers.com Advertising & Production Offices 250 Prairie Center Dr., Ste. 300 Eden Prairie, MN 55344 952-835-2275 www.nfrcom.com For advertising information, contact Erica Nelson Advertising Sales Executive 763-497-1778 Erica@NFRcom.com For reprints or single issues, contact 800-336-1120 Statements of fact and opinion are made on the responsibility of the authors alone and do not imply an opinion or endorsement on the part of the officers or members of FBA. Florida Banking is published 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 Florida Bankers Association kkraninger@floridabankers.com Pamela Ricco Executive Vice President and Chief Operating Officer A

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 40

NUMBER 1

FEBRUARY | MARCH 2025

ON THE COVER 8 - - - - - - - Voices of Leadership Senate President Albritton, House Speaker Perez on Guiding the Legislature CONTENTS 4 ---------- Chair’s Message A Personal Invitation: Please Join Us to Advocate in D.C. and Tallahassee 6 - - - - - - President's Perspective Florida’s Time to Shine and Our Opportunity to Seize 12 - - BancServ Endorsed Partner The Evolving Landscape of Sale Leaseback (SLB) Transactions 14 - - Trust & Wealth Management Florida’s New Income and Principal Act Promotes Fiduciary Flexibility 16 - - - - - Government Relations Florida’s 2025 Legislative Session: The Wheels Are Already in Motion 18 - - - - Remembering Bill Marks ‘A True Gentleman and Consummate Professional’ 20 - - - - - - Personal Transactions 26 - - - - - - - - - - - - - - Kudos 30 - - - - - - - - Upcoming Events 31 - - - - - - Advertising Directory

8

Cover Story (left to right): House Speaker Danny Perez and Senate President Ben Albritton Photos by Don Juan Moore/@DJuanfots

Florida Bankers Association pricco@floridabankers.com Suellen Wilkins Director of Communications Florida Bankers Association swilkins@floridabankers.com

Derek Jones Chair

Keith Costello Chair-Elect

Jose Cueto Immediate Past Chair

4

6

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

26

©istock.com: piranka; Iuliia Anisimova

CHAIR’S MESSAGE

A PERSONAL INVITATION: PLEASE JOIN US TO ADVOCATE IN D.C. AND TALLAHASSEE

BY DEREK JONES, FBA CHAIR

G rassroots advocacy is the driving force behind transformative change in the banking industry. As bankers, we hold a unique and vital understanding of the financial needs of our communities — an insight that policymakers need to hear. By sharing our stories, expertise and concerns, we play a pivotal role in shaping legislation and regulations that strengthen the banking landscape while safeguarding the well-being of the customers and communities we serve. Our success as an industry depends on your engagement. The relationships we build with

engage directly with state legislators, discuss our priorities and address key issues affecting Florida’s banking industry. It’s a chance to share real-world stories illustrating how policy decisions impact our communities. Both events are vital to our advocacy efforts, and your presence will make a significant impact. As you engage with policymakers, whether at these events or in your local communities, I urge you to coordinate with the FBA team. Our staff is here to provide you with the tools and resources you need to make every interaction effective. From talking points

local, state and federal representatives are critical in helping them understand the challenges and opportunities we face. Grassroots advocacy is not just about policy; it’s about people — the hardworking individuals, families and businesses that rely on us every day. Your voice matters, and your participation strengthens our collective influence. This year, we have two critical opportunities for you

to data and background information, we can help ensure your conversations resonate and align with our shared objectives. Advocacy is not a one time effort — it’s an ongoing commitment to ensuring the banking industry remains strong and responsive to the needs of those we serve. Whether you’re attending a meeting in Tallahassee, walking the halls of Congress or connecting with local

“OUR SUCCESS AS AN INDUSTRY DEPENDS ON YOUR ENGAGEMENT.”

to join us in amplifying the voice of Florida banking. • 69th Annual Washington, D.C. Trip, Feb. 24-26: At the federal level, it’s essential that we bring our insights to members of Congress and regulators. This event allows us to collaborate with colleagues from across the nation, advocate for sound banking policies and underscore the importance of a stable and innovative financial system. • 51st Annual Capitol Day in Tallahassee, March 19: This event provides a platform to

officials, every conversation matters. I encourage you to take an active role in these efforts. Be an advocate for your institution, your employees and your customers. Together, we can make a lasting difference by advancing policies that support a resilient and inclusive banking system. Thank you for your dedication to our mission. I look forward to seeing you in Tallahassee and D.C. as we work together to move the Florida banking industry forward.

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

BANCSERV ENDORSED PARTNERS

Partner with Lively to deliver a best in-class HSA experience and unlock revenue growth for your bank. Adam Berry, (208) 724-03091 adam.berry@livelyme.com

Florida Bankers Health Consortium has been helping community banks manage their benefits for more than 50 years.

Bond, D & O, Cyber Insurance Patricia Williams, (800) 274-5222 pwilliams@abais.com

Adella Salinas, (800) 368-3248 asalinas@selectsourceone.com

#1 source for medical & professional loans BHGLoanHub.com/FL Melissa Whelan, (315) 559-7641 melissa@bhg-inc.com

The only nationwide independent, member-owned debit network, processor & core provider supporting community banks. Alex Jerigan, (229) 861-3802 jjerigan@shazam.net

Custom Sale-Leaseback, Property Management & Branch Consulting Bill Yeomans, (315) 491-8651 byeomans@brooklinedevelopment.com

Web-based portal for professionally designed & produced bank branded marketing materials in seconds. Neal Reynolds, (678) 528-6688 nreynolds@bankmarketingcenter.com

STS Group is Florida’s strongest partner for bank security, ATMS & branch automation equipment. Adam Stephens, (256) 957-8018 adams@stsgrp.com

A full suite of investment products and services for community banks through its exclusively endorsed broker, Stifel.

J im Reber, (800) 422-6442 jreber@icbasecurities.com

Comprehensive and affordable payments solutions, including credit, debit, merchant, & digital commerce. Client Relations, (800) 242-4770 payments@icba.org

Broad range of integrated payment, marketing, & technology solutions.

Executive Benefits & BOLI Glenn Blackwood, (561) 798-5620 glenn.blackwood@nfp.com Joe Schaefer, (786) 566-9423 joe.schaefer@nfp.com

Bill Lopez, (305) 609-2757 william.lopez@vericast.com

Zurich provides best-in-class solutions to help reduce FBA member bank losses and manage risk more effectively.

Discounted supplies including PPE, cleaning, furniture, print & promo solutions. Customer Service, (888) 263-3423 NationalEmailOrders@odpbusiness.com

A family of bank compliance services that include compliance alliance, review alliance, & virtual compliance officer. (833) 683-0701 info@bankersalliance.org

Stanley Bernard, (410) 559-2423 stanley.bernard@zurichna.com

Ncontracts' solutions suite encompasses the complete life cycle of risk. We help you build a better bank in a constantly changing environment.

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

Receive High-Yield CRA Credit David Lenoir david.lenoir@icba.org

Corey Polom, (413) 374-5467 corey.polom@ncontracts.com

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

PRESIDENT'S PERSPECTIVE

FLORIDA’S TIME TO SHINE AND OUR OPPORTUNITY TO SEIZE

BY KATHY KRANINGER, FBA PRESIDENT AND CEO

I f the last two years have been about the regulatory tsunami, the next two years bring the winds of change akin to the tornado in the Wizard of Oz! And with Florida front center! President Trump’s adopted home state is playing a key role in the new administration and in the new Congress. As I noted in my last column, that is leading to some musical chairs in our Congressional delegation and at the state level. As I am writing this, Jimmy Patronis and

But we do have to prioritize. I am looking at a list of 247 final and 204 proposed agency actions impacting and seeking response from our members over the past four years. Some of the actions are minor updates and clarification to agency guidance, while others are sweeping final regulations that impose burdensome, unwarranted costs. The concerns of the business community were so great that no fewer than six of those final actions have been challenged in court,

Randy Fine are on track to win their primary races to respectively replace Matt Gaetz and Mike Waltz in Congress — one more election on April 1 will officially send them to DC. Further, Gov. DeSantis appointed Attorney General Ashley Moody to the U.S. Senate, and he will have the opportunity to appoint a State CFO and an Attorney General. The FBA is already engaging with our elected representatives and the new administration to seize this opportunity. Given the groundwork we have laid with the

including CRA, 1071, and 1033. We also know we are facing complex challenges in areas such as countering fraud, supporting affordable/ workforce housing and addressing credit union accountability. As we prioritize the issues, we have to determine the best avenue to achieve the outcome we are seeking. Congress has the other Congressional Review Act (CRA), budget reconciliation (including the tax package), and legislative paths. We will have new agency leadership from day one — some

“THE FBA IS ALREADY ENGAGING WITH OUR ELECTED REPRESENTATIVES AND THE NEW ADMINISTRATION TO SEIZE THIS OPPORTUNITY. ”

ABA, ICBA other state banking associations, and other business community trade groups, we are well-positioned to reverse the most harmful agency actions and do great things for our communities and our customers.

guidance can be rescinded, regulations not yet effective or implemented will see extensions, enforcement actions under way will be reviewed, and litigation posture will be reassessed. With respect to the courts, it may be most judicious to see pending litigation through to decision.

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

And we also have the newly established Department of Government Efficiency (DOGE) effort as another way to tackle issues. The great Milton Friedman smartly said, “One of the great mistakes is to judge policies and programs by their intentions rather than their results.” On top of that, President Reagan noted, “Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!” Change is not easy, but it is constant

and necessary! What is our ask of you?

•Weigh in with the FBA staff, FBA Board members, and Government Relations Council members about your priorities for change • Register for the D.C. Fly-In and Capital Day + Night events • Respond to Calls to Action • Build relationships with your local representative.

WWW.FLORIDABANKERS.COM FEBRUARY | MARCH 2025 — 7

Voices of Leadership Senate President Albritton, House Speaker Perez on Guiding the Legislature

W e’re pleased to present this feature highlighting two of Florida’s most influential leaders: Senate President Ben Albritton and House Speaker Danny Perez. Both leaders have close relationships with their constituent bankers and the FBA has them as they’ve risen through the political ranks. Here, they share insights into the state’s financial future, opportunities that lie ahead and their vision for Florida’s economic growth. We were honored to have their participation in the accompanying photo shoot, which captured the leadership and personality of these legislative giants. House and Senate calendars, meetings and floor sessions; meeting packets; legislative trackers and more can be accessed at www.flhouse.gov and www.flsenate.gov. Meet Senate President Ben Albritton Q: What inspired your desire to serve as Senate President? I’m a fourth-generation farmer. I was brought up by a family of farmers, ranchers, citrus growers and businessmen, who invested their lives in the rich agricultural heritage of Central Florida. After finishing school, I went to work in my family’s citrus groves, and for over 30 years, my wife Missy and I have dedicated our professional lives to the growth of Florida’s agricultural community. As part of that work, Gov. Bush appointed me to serve on the Florida Citrus Commission, which really started my involvement in state government. The opportunity to represent my community and other hardworking farm families in Tallahassee and the trust they have placed in me to do so means the world to me. I’m honored by the opportunity to elevate their voices during my time as Senate President. Q: What are some of the life-guiding principles you live by? My faith burns in my heart, my mind and my spirit. 1 Corinthians 13:13 is very clear to me in my walk of faith…it reads,“And now these three remain: faith, hope and love. But the greatest of these is love.” I believe the majority of Floridians feel the same; to value love. Here are a few other pieces of wisdom I try to live by. 1. If you don’t measure it, you can’t manage it — data and outcomes matter. 2. Measure three times before cutting once — take your time — patience matters. 3. Don’t take down a fence before you know why it was put up — know what you’re doing, why

you’re doing it and the consequences of doing it. Focus on the unknown. 4. It’s easier to fool someone than it is to convince them they were fooled — truth matters, seek it. 5. Experience is a hard teacher because she gives the test first, the lesson after — pay attention all the way through. 6. If you eat, you’re involved in agriculture — food matters. 7. You don’t have to be cruel to be tough — don’t mistake someone’s kindness for weakness. Q: How do you see Florida’s current economic and financial outlook? For the past several years, the state has seen historic General Revenue balances and an influx of time limited federal stimulus funds related to the pandemic. Our state revenue forecasts, while still growing, have stabilized. So, as we look ahead to 2025, a return to more normal budget spending patterns is warranted to assure our expenditures are aligned with our revenues over the long term. Florida has a great framework for accountability and transparency, but we can always do better. We want to look for new ways to collect meaningful data to measure outcomes to ensure taxpayer resources are being utilized wisely. Q: How do you expect the Legislature to help spur economic activity and job growth in Florida under your leadership? Opportunity in rural Florida doesn’t just mean development. What I see are opportunities to improve our rural quality of life. That’s why I’m asking folks to join me in supporting a “rural renaissance” in Florida. Rural communities are strong and proud. I can tell you the last place they’ll look for guidance is the government. But, I do believe there are things we can do to help. We can support innovation and help rural Florida invest in new technologies that expand education, health care, commerce and transportation, and support agriculture and its supply chain. Q: What are the legislative priorities for your term as Senate President? An important part of Florida’s Rural Renaissance includes an increased focus on our amazing farmers and the food-supply chain in Florida. As a fourth Legislative Leaders, Continued on page 10

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

WWW.FLORIDABANKERS.COM FEBRUARY | MARCH 2025 — 9

Left to right: Then FBA SVP Kenneth Pratt, House Speaker Danny Perez, Senate President Ben Albritton and FBA EVP Anthony DiMarco meet at the Florida Capitol.

shaped by my personal experiences. Growing up, I watched my younger brother Brian, who has a severe developmental disability, and saw my mother struggle to access the programs and services he needed. That experience inspired me to go into public service with a mission to do better for families like mine and many others across our state. I believe the state government has a role to play — not being at the center of people’s lives, but by doing things that truly matter to them. When I first ran for office, I asked myself: What’s the point of throwing someone a lifeline if we leave them drowning in the water? That question continues to drive me today, as I work to ensure we’re not just offering help, but truly pulling people in and making a difference. Q: What are some of the life-guiding principles you live by? The principles that guide me are centered on service, collaboration and respect for others. I strive to work hard, build strong relationships and honor my family — values that shape how I live every day. I try to translate those principles as an elected official by empowering others to find solutions, ensuring every voice is heard and providing the tools and support needed for success. Q: How do you see Florida’s current economic and financial outlook? I am optimistic about Florida’s economic outlook. We navigated the pandemic better than most states and continue to lead on many key metrics. However, I also recognize that the state’s budget has become bloated. We need to build a budget that values value and invests in solutions that help people. The size of

Legislative Leaders, Continued from page 9

generation citrus grower, I’m focused on supporting our Florida farm families and saving from extinction our iconic Florida citrus industry. We also know the droves of people coming to Florida for freedom and opportunity pose a serious risk to the health and supply of our state’s water. We must continue to develop and advance solutions to rid Florida’s waterways of excessive nutrients. A renewed, data-driven focus on water will give us a close look at where we actually are, instead of where we think we might be. Fresh, accurate data will drive the solutions we need for the future. Q: How would you encourage Florida bankers to engage in the legislative process? Florida bankers have a very long history of civic engagement at all levels. In my experience, whether with local bankers or in one-on-one meetings and committee hearings in Tallahassee, Florida bankers provide relevant and timely input on key issues. We appreciate your feedback and always look forward to learning the perspective of the banking community and other leaders of business and industry. Meet House Speaker Danny Perez Q: What inspired your desire to serve as House Speaker? My desire to serve as House Speaker is rooted in a personal commitment to the people of Florida and

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Q: What are the legislative priorities for your term as Speaker of the House? My legislative priority is straightforward: serve the people of Florida. State government must do a better job of focusing on what truly matters to our constituents and finding solutions to the problems everyday Floridians face. We need to deliver real, meaningful solutions that make a difference in their lives. Q: How would you encourage Florida bankers to engage in the legislative process? Bankers have a unique perspective on Florida’s economy. It’s my hope that everyone in the financial services industry will lend their voice to the policymaking process.

our state budget should not be the measure of our economic health. True economic health is reflected in whether Floridians can secure well-paying jobs and have the ability to save and plan for their future. Q: How do you expect the Legislature to help spur economic activity and job growth in Florida under your leadership? The best way the Legislature can help spur economic activity and job growth in Florida is by eliminating bureaucracy, cutting red tape and removing burdensome regulations whenever possible. When government is not needed, we should get out of the way and allow Floridians to thrive.

SENATE PRESIDENT BEN ALBRITTON

Senate President Ben Albritton is a fourth-generation farmer, born and raised in Florida’s Heartland. Brought up by a family of farmers, ranchers, citrus growers and businessmen, he has invested his life in the rich agricultural heritage of Central Florida. Sen. Albritton earned a bachelor of science degree in Citrus/Business in 1990 from Florida Southern College. He went on to work for his family’s citrus groves and for over 30 years, has focused on the growth of Florida’s agricultural community.

Gov. Jeb Bush appointed Sen. Albritton to serve on the Florida Citrus Commission (FCC). He served in a variety of FCC leadership roles, including as Chairman from 2007 10. He also served as a board member and President of the Peace River Citrus Growers Association, and as a board member and Chair of the East Charlotte County Drainage District. He resigned from the FCC to pursue a seat in the Florida House. After being elected House in 2010, Sen. Albritton served as Chairman of the Agriculture & Natural Resources Appropriations Subcommittee, and as Vice Chairman of the Natural Resources & Public Lands Subcommittee, Agriculture & Property Rights Subcommittee, Appropriations Committee and Government Accountability Committee. He also chaired the Polk, Hardee and DeSoto County Legislative Delegations. Sen. Albritton was elected to the Florida Senate in 2018. In 2022, he was appointed by Senate President Kathleen Passidomo to serve as Majority Leader. He and his wife, Missy, have three children – Rebecca, Joshua and Ryan – and a brand-new grandbaby.

HOUSE SPEAKER DANNY PEREZ

House Speaker Daniel Perez was born in New York, New York. He received his bachelor's degree from Florida State University and his law degree from Loyola University New Orleans College. His career experience includes working as an attorney. House Speaker Perez’s upbringing, shaped by the experiences of his grandparents who emigrated from Cuba in 1969, instilled in him a strong sense of purpose and a commitment to public service. His journey from his first job as a transportation dispatcher to becoming a successful attorney and state representative underscores his dedication to his community. Elected to the Florida House of Representatives in 2017, Perez has served as Vice

Chairman for the Gaming Control Subcommittee and as Chairman of the House Rules Committee. Perez’s personal family experiences have profoundly influenced his legislative priorities. He is a passionate advocate for those with intellectual and developmental disabilities, pushing for better support systems and more effective coordination of programs for individuals with special needs. Perez and his wife, Stephanie, have three children – Camila Lucia, Matias Daniel and Paulina Andrea.

WWW.FLORIDABANKERS.COM FEBRUARY | MARCH 2025 — 11

BANCSERV ENDORSED PARTNER: BROOKLINE BRANCH SERVICES

THE EVOLVING LANDSCAPE OF SALE-LEASEBACK (SLB) TRANSACTIONS 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 WILLIAM B. YEOMANS, SR., OPERATING MANAGER & FOUNDER, BROOKLINE BRANCH SERVICES

I n the dynamic world of commercial real estate, Sale-Leaseback (SLB) transactions have proven to be a resilient and innovative tool for organizations aiming to optimize their balance sheets, unlock capital, and enhance operational flexibility. Amidst global economic fluctuations and evolving regulatory frameworks, this strategy continues to attract a broad range of sectors, with banking and retail businesses finding particular value. As market conditions shift — driven by post-pandemic recovery strategies and increasing international trade policies — the SLB model adapts, addressing new challenges and seizing fresh opportunities, thus remaining more relevant than ever. The Current Landscape In 2024, the SLB market is experiencing significant momentum, driven by rising interest rates and tightening credit conditions. Financial institutions, particularly banks, are increasingly exploring SLB transactions to unlock the value of their real estate assets. This approach not only provides immediate liquidity but also enables these institutions to focus on core operations while maintaining their presence in strategic locations. Key Drivers of SLB Popularity: 1. Access to Capital: With rising costs of traditional financing, SLBs offer a cost effective alternative to secure funds without increasing debt levels. 2. Strategic Real Estate Optimization: Banks can downsize oversized branches or consolidate operations to achieve operational efficiency. 3. Non-Dilutive to Shareholders: The proceeds from SLB transactions provide immediate liquidity without diluting shareholder value. Banks can reinvest these funds into areas like cybersecurity, transaction streamlining, improved customer experience and advertisements. 4. Reinvestment in Growth Initiatives: Proceeds from SLBs allow financial institutions to

invest in technology, member services, and other strategic priorities without affecting their capital ratios. 5. Confidentiality in Transactions: While not always a primary factor, maintaining confidentiality during SLB transactions provides financial institutions with the discretion needed in competitive markets. 1. Emphasis on Flexible Lease Structures: While traditional SLB deals often involved absolute triple-net leases, there is a growing demand for flexible lease terms that allow tenants to share maintenance responsibilities. This shift caters to tenants seeking reduced operational burdens while still benefiting from predictable costs. 2. Integration of Co-Tenancy Strategies: Banks are increasingly leveraging SLBs to reduce oversized branches, bringing in co-tenants to share the space. For example, retail establishments or service providers like coffee shops and clinics are becoming common co-tenants, enhancing foot traffic and community engagement. Brookline has demonstrated through case studies that co-tenancy strategies at oversized branches not only optimize space but also lead to increased deposit growth for banks. 3. Focus on Smaller Markets: As metropolitan markets become saturated, investors are turning to secondary and tertiary markets. These regions often provide better cap rates and opportunities to work with community banks.

Recent Developments

Technological and Environmental Enhancements

Investments in technology, such as AI and blockchain, are not only improving operational efficiencies but are also ensuring more secure and faster transactions.

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Additionally, a growing emphasis on sustainability is influencing SLB deals, as companies seek to reduce their environmental impact and align with global sustainability goals. Brookline is at the forefront of these technological advancements, currently in discussions with an AI company that will enhance its strategic capabilities. This collaboration aims to utilize artificial intelligence to identify financial institutions in need of a capital influx and to pinpoint new markets where Brookline can successfully establish flourishing branches. This strategic partnership underscores Brookline's commitment to leveraging cutting-edge technology to refine its market approach and expand its operational scope. The Brookline Advantage At Brookline Branch Services, we specialize in structuring bespoke SLB solutions tailored to the needs of financial institutions. Our approach focuses on: • The 6 Cs Philosophy: At Brookline, we believe in the six key drivers of success in SLB transactions: 1. Capital Gains: Maximizing day-one proceeds through precise market evaluations. 2. Cost-Savings: Helping institutions reduce operational expenses through optimized lease structures. 3.Customized Solutions: Tailoring lease structures to align with client goals. 4. Co-Tenancy: Redesigning oversized branches to include co-tenants, which improves foot traffic and enhances community engagement. 5.Client-Centric Approach: Building lasting partnerships by prioritizing client needs. 6.Core Business: Owning real estate is a distraction for banks; it is not the highest and best use of their employees and resources. Our research reveals that leading retailers like CVS and Walgreens own only about 3-4% of their real estate, highlighting a strategic focus on operational agility. In stark contrast, banks typically own a much larger share, around 50-60%, of their real estate assets! This highlights an opportunity for banks to minimize their real estate involvement, which can be a distraction, and instead focus resources on enhancing customer services. •Branch Downsizing Expertise: Many bank branches today are oversized compared to the average requirements of modern banking operations. Brookline brings expertise in downsizing these branches and introducing co-tenancy strategies, which not only improve space utilization but also foster increased customer engagement and deposit growth. • Testimonial: Jon Burk, President of BMO Harris Bank, remarked, “Our first sale-leaseback portfolio transaction immediately reduced our operating expenses and enabled the redesign of

the oversized branches’ space to fit our needs.” Brookline’s SLB solutions continue to deliver such impactful results. Why Now? The combination of economic uncertainty and the evolving needs of businesses makes 2025 a pivotal year for SLB transactions. For financial institutions, SLBs are no longer just a financing tool but a strategic decision to remain competitive in a challenging market. Sale-Leaseback transactions have not only been prevalent but also significantly advantageous for financial institutions in 2024, as demonstrated by recent high-profile deals: • Fulton Financial Corp.: Engaged in an SLB deal valued at $55.4 million, realizing a gain on sale of $20.4 million. This transaction allowed the bank to offset securities losses while retaining control over its branches, showcasing SLB as a strategic tool for managing balance sheet risks and improving liquidity. •Pinnacle Financial: Executed a comprehensive SLB transaction totaling $92.8 million. The remarkable gain on sale combined with repositioning their bond portfolio and offsetting $9.2 million in losses highlights SLB's role in financial restructuring and portfolio optimization. •Atlantic Union Bancshares: Through an SLB deal worth $45.8 million, the bank achieved a gain of $27.9 million. This significantly bolstered their Tangible Common Equity (TCE) ratio, improving it from 6.45% to 7.15%, underlining the efficacy of SLBs in enhancing financial stability and shareholder value. Conclusion As the real estate market continues to evolve, the Sale-Leaseback model stands out as a resilient and versatile strategy. By addressing the dual needs of liquidity and operational continuity, SLBs are shaping the future of commercial real estate investments. For banks, this is an opportunity to reimagine their real estate strategies and unlock untapped potential — a journey that Brookline is proud to lead. As an endorsed partner of the Florida Bankers Association, Brookline is uniquely positioned to assist all member banks. We offer our expertise in strategically downsizing oversized real estate and capitalizing non-earning real estate assets. With our help, banks can transform their branches into immediate capital gains, enhancing their balance sheets from the day of closing. Brookline is ready to guide member banks through these transformative opportunities, ensuring they maximize their real estate investments while focusing on core business growth. For information about Brookeline's services, please email William Yeomans at byeomans@ brooklinebranch.com.

WWW.FLORIDABANKERS.COM FEBRUARY | MARCH 2025 — 13

TRUST & WEALTH MANAGEMENT

FLORIDA’S NEW INCOME AND PRINCIPAL ACT PROMOTES FIDUCIARY FLEXIBILITY

BY ALEXANDER M. PARTHEMER, LLM, ATTORNEY I JONES FOSTER, AND SASHA KLEIN, PARTNER, PWC US TAX, LLP I PRIVATE

T he Florida Uniform Fiduciary Income and Principal Act (“FIPA” or the “Act”), effective Jan. 1, 2025, introduces revisions to Florida Statutes Chapter 738. The Act provides a comprehensive update to the state's trust and estate administration laws, which govern the allocation of receipts and disbursements between income and principal when the governing document does not specify. Superseding Florida’s Uniform Principal and Income Act of 2002 (“FUPIA”), the Act aligns Florida with contemporary

between income and principal resulting from flexible drafting, have created challenges to trust administration under current law. Accordingly, in 2018, the Uniform Law Commission updated its 1997 Act by enacting UFIPA, providing greater flexibility for fiduciaries. Florida adopted UFIPA’s framework within FIPA while retaining its unique policy choices that ensure continuity for existing trusts and preserve Florida specific provisions, such as the use of carrying value in asset valuation. This

fiduciary practices while addressing the evolving trust environment, which is characterized by longer and more adaptable trusts. The Act primarily incorporates the Uniform Law Comissioner’s Uniform Fiduciary Income and Principal Act of 2018 (“UFIPA”) while retaining essential Florida-specific provisions that ensure its relevance and applicability within the current legal framework.

update to Florida law aims to improve trust administration in Florida and resolve issues within the current law. Key Changes from Florida’s Prior Law • E n h a n c e d Flexibility for Fiduciaries with the Power to Adjust — Fla. Stat. § 738.203 FIPA adopts UFIPA’s expanded power to adjust, allowing fiduciaries to reallocate income and principal to achieve impartiality. Under FUPIA, this power was restricted by an “impossibility” standard, often discouraging its use.

“FIPA MARKS A SIGNIFICANT MILESTONE IN FLORIDA’S TRUST AND ESTATE ADMINISTRATION LAWS.”

This article highlights (1) some key changes under FIPA, (2) some of its key deviations from UFIPA and examines the impact on fiduciaries and trust administration in Florida. Background FIPA represents Florida’s latest effort to modernize trust and estate administration. Rooted in the 1997 Uniform Principal and Income Act (“1997 Act”), Florida enacted its version (FUPIA) in 2002. Over the past two decades, evolving investment strategies, extended trust durations, and blurred distinction

FIPA replaces this with a standard of “assistance,” empowering fiduciaries to act when adjustments support equitable administration. • Restructured Unitrust Provisions — Fla. Stat. §§ 738.301 — 738.310 Unitrust provisions, previously consolidated in one dense section, are now distributed across 10 specific sections. This structural change simplifies the administration of unitrusts and aligns Florida law

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

with UFIPA. The Act also maintains Florida’s 3-5% safe harbor for unitrust payouts, offering consistency and tax compliance benefits. • Modernized Income and Principal Definitions — Fla. Stat. § 738.102 FIPA introduces nuanced definitions that reflect modern trust structures. Terms such as “capital distribution” replace outdated concepts like “partial liquidation,” and definitions for “income interest” and “successive interest” clarify beneficiary rights. Governing Law and Portability — Fla. Stat. § 738.104 Under FIPA, Florida law applies to trusts administered in the state, even if created elsewhere. This rule enhances predictability for trustees managing multi jurisdictional trusts and reinforces Florida’s appeal as a trust administration hub. Deviations from the Uniform Law Although FIPA adopts much of UFIPA’s modern framework, several Florida-specific provisions remain, reflecting the state’s distinct policy choices and historical preferences. • Carrying Value for Asset Valuation — Fla. Stat. § 738.104(4) Unlike UFIPA, which utilizes the current fair market value of assets, Florida retains the use of carrying value for certain calculations. Carrying value, representing the book value of an asset, reduces the need for frequent and costly appraisals, simplifying trust administration. This approach offers fiduciaries a consistent and accessible baseline for determining allocations, minimizing disputes while aligning with Florida’s preference for practicality over uniformity. • Entity Distribution Rules — Fla. Stat. § 738.401 Florida maintains its detailed and objective rules governing distributions from private and public entities, which differ from UFIPA’s broader discretionary framework. For example, capital distributions exceeding specific thresholds — such as 20% of an entity’s gross assets for private entities or 10% of the fiduciary’s fair market value interest in public entities — require a portion to be allocated to both income and principal. Florida continues to use a lookback rule to allocate between income and principal on capital distributions; however, FIPA introduces a limitation on the lookback period. Fiduciaries only need to look at the cumulative annual return (or flow through income tax) for the current accounting period and the prior two accounting periods instead of the unlimited look back of the prior act. The new limited 3-year lookback period makes this rule a little easier for fiduciaries to follow and administer, providing clear guidance and preventing beneficiaries from being disadvantaged due to long gaps in distributions.

• Life Estate Expense Apportionment — Fla. Stat. § 738.508 Florida’s unique treatment of life estates remains a vital provision under FIPA. Particularly relevant in a state where homestead laws often create life estates for surviving spouses, this rule ensures that expenses are fairly apportioned between life tenants and remaindermen. By addressing the allocation of costs such as taxes, maintenance, and insurance, this provision protects the interests of both parties and provides clarity for fiduciaries navigating the complexities of life estate management in Florida. These deviations from UFIPA demonstrate Florida’s commitment to preserving practical and equitable solutions tailored to its legal landscape. By maintaining these provisions while embracing the broader flexibility and modernization offered by UFIPA, FIPA strikes a balance between tradition and progress, ensuring the state remains a leader in trust and estate administration. FIPA brings significant benefits to trustees and fiduciaries, fostering a more flexible and modern approach to trust management. By prioritizing total return investment strategies, FIPA reduces tension between income and principal beneficiaries. Key provisions, such as the power to adjust and the refined unitrust framework, support the application of Modern Portfolio Theory, enabling fiduciaries to manage trusts with a comprehensive, balanced perspective. FIPA also streamlines trust administration by restructuring sections and aligning definitions with UFIPA, making its navigation easier for fiduciaries familiar with national standards. The updated unitrust provisions, in particular, offer enhanced clarity and simplicity, promoting efficient administration. Finally, FIPA provides a critical safeguard by presuming that fiduciary actions are fair and reasonable unless proven otherwise. This presumption protects fiduciaries acting in good faith while reinforcing FIPA’s emphasis on impartiality and equitable trust FIPA marks a significant milestone in Florida’s trust and estate administration laws. By balancing uniformity among jurisdictions with Florida-specific nuances, the Act ensures the state remains a premier jurisdiction for fiduciary services. Fiduciaries and practitioners must familiarize themselves with FIPA’s provisions to leverage its flexibility and comply with its mandates. As Florida continues to attract wealth and multi generational trusts, FIPA provides the tools necessary to navigate modern trust complexities effectively. What does FIPA mean for Trustees and Fiduciaries? administration. Conclusion

WWW.FLORIDABANKERS.COM FEBRUARY | MARCH 2025 — 15

GOVERNMENT RELATIONS

FLORIDA’S 2025 LEGISLATIVE SESSION: THE WHEELS ARE ALREADY IN MOTION

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

T wo weeks after the general election, the Florida Legislature met in Organizational Session, where the Senate President and House Speaker were officially elected to their respective posts. All legislators were sworn in and became official for the next two years. Soon thereafter, committee and subcommittee chairs were announced, and committee and subcommittee members were named before the holidays. More importantly, bills were being drafted and filed. We are expecting a flurry of bill filings as we head to the official start of the Session on March 4. The FBA has also been busy leading up to the Session. We’re working on a few proposals and expecting to take a few defensive positions. FBA-Proposed Legislation IOTA One of FBA's top legislative priorities is to reform the Interest on Trust Accounts (IOTA) program. In 2023, the Florida Supreme Court amended the rules of the program at the request of the Florida Bar to require that all lawyers achieve a rate that is “[w] hen the Wall Street Journal Prime Rate (“indexed rate”) is between 325 and 499 basis points (3.25% and 4.99%), the minimum interest rate paid net of all fees and service charges (“yield”) must be no less than 300 basis points (3.00%) below the indexed rate in effect on the first business day of each month. When the indexed rate is 500 basis points (5.00%) or above, the yield must be no less than 40% of the indexed rate in effect on the first business day of each month.” The FBA immediately filed a Motion for Rehearing and several weeks later, the Supreme Court originally granted that motion, requiring the Florida Bar to report on the implementation of the new rule and providing an opportunity for the FBA and other interested parties to file a response to the Bar’s report.

On Aug. 7, 2024, the Court dismissed the Motion for Rehearing, allowing the Bar to continue implementing the new rule. Since the rule change, the Florida Bar has collected almost $300M in revenue, a dramatic increase of which they were only able to spend $34M, forcing them to place $143M in reserves. The Florida Bar's IOTA program helps to fund many of the needs of those who cannot pay for legal representation in our state. The FBA realizes the program's value and does not seek to make this program go away. However, the dramatic rate change has caused many community banks to question whether they will be able to continue to serve their law customers by offering these services. The FBA has been advocating for the Florida Legislature to determine the appropriate rate, quarterly, and for the rate to be announced through Florida's Chief Financial Officer. FBA members believe a fairer rate of 68% of Fed Funds with a comparability standard, is more appropriate and would still provide more than satisfactory funding for the 35 legal aid organizations who benefit from such funding. Fraud The FBA has also begun working on legislation, and other efforts, to curb fraud. The first legislative piece is to criminalize mail theft or possessing a counterfeit mailbox key. We hope this will help stop check theft and washing. We expect more ideas, legislative and communicative, once our Anti-Fraud Task Force is established. Legislation Proposed by Others As of Jan. 13, only 160 bills had been filed, leaving an estimated 1,700 more — plus committee bills and amendments — to be filed. There will be many more bills to review before March. Some of the proposed legislation and ideas include: • Substitute Service of Process in Vulnerable Adult

Government Relations, Continued on page 24

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Join the 55th Annual Florida School of Banking!

August 3-9, 2025

Gainesville, FL

$Ęáŧ¾ŎáΨŮĦœłΨÖ¾ğĔăğ÷Ψ×¾łááłΨ¾ŎΨŎÿăņΨ×ĦĞĿłáÿáğņăŧáΨŎÿłááͺŮá¾łΨĿłĦ÷ł¾ĞΨÝáņă÷ğáÝΨöĦłΨÖ¾ğĔΨĿáłņĦğğáĘΨ¾Ŏ ¾ğŮΨĘáŧáĘ͛ Ψ9¾ăğΨăğͺÝáĿŎÿΨĔğĦŨĘáÝ÷áΨĦöΨŎÿáΨÖ¾ğĔăğ÷ΨăğÝœņŎłŮΨ¾ğÝΨá×ĦğĦĞŮ͜ ΨŨÿăĘáΨğáŎŨĦłĔăğ÷ΨŨăŎÿΨŎĦĿ ĿłĦöáņņăĦğ¾ĘņΨăğΨŎÿáΨöăáĘÝ͛ ΨdŧáłΨ̜̙̙̙͜ Ψ÷ł¾Ýœ¾ŎáņΨÿ¾ŧáΨŎłœņŎáÝΨŎÿăņΨĿłĦ÷ł¾ĞΨŎĦΨ¾Ýŧ¾ğ×áΨŎÿáăłΨáŭĿáłŎăņá ņăğ×áΨ̢̠̙͛̚

Admission Requirements

Why Attend?

ĦĞĿłáÿáğņăŧáΨWá¾łğăğ÷͝ $ğ÷¾÷áΨăğΨ¾ לłłă×œĘœĞΨÝáņă÷ğáÝΨŎĦΨĿłáĿ¾łáΨŮĦœΨöĦł łá¾ĘͺŨĦłĘÝΨÖ¾ğĔăğ÷Ψ×ÿ¾ĘĘáğ÷áņ͛ $ŭĿáłăáğ×áÝΨ8¾×œĘŎŮ͝ Learn from industry leaders and seasoned professionals. ¾ğĔΨ]¾ğ¾÷áĞáğŎΨ„ăĞœĘ¾ŎăĦğ͝ Hands-on experience for senior students to manage a simulated bank. Wá¾ÝáłņÿăĿΨEğņă÷ÿŎņ͝ Ψ Executive discussions with bank officers. ^áŎŨĦłĔăğ÷͝ Ψ Connect with peers, leaders, and experts in the banking industry.

Member of a bank or regulatory agency

High school graduate

Recommendation from a bank officer or supervisor. All incoming students will be required to complete a Banking 101 webinar series prior to commencing the School of Banking.

€á÷ăņŎáłΨĦğĘăğáΨ¾Ŏ ŨŨŨ͛ öĘĦłăݾ־ğĔáłņ͛ ×ĦĞ

Fees

Location

$1,695 ]áĞÖáłΨ€¾Ŏá͝

^Ħğͺ]áĞÖáłΨ€¾Ŏá͝ (before April 4, 2025)

R͛ Ψ¦¾ŮğáΨ€áăŎŶΨ‘ğăĦğ͜ ‘ğăŧáłņăŎŮΨĦöΨ8ĘĦłăݾ͜ Ψ9¾ăğáņŧăĘĘá

„áלłáΨ¬ĦœłΨ„ĿĦŎ،ĦݾŮ͠

$3,390

ĦğΉŎΨĞăņņΨĦœŎΨĦğΨŎÿăņΨĦĿĿĦłŎœğăŎŮΨŎĦΨÖĦĦņŎΨŮĦœłΨ×¾łááłΨ¾ğÝΨÖá×ĦĞáΨĿ¾łŎ ĦöΨŎÿáΨáņŎááĞáÝΨ¾ĘœĞğăΨĦöΨŎÿáΨ8ĘĦłăÝ¾Ψ„×ÿĦĦĘΨĦöΨ ¾ğĔăğ÷͠

IN REMEMBRANCE

REMEMBERING BILL MARKS ‘A TRUE GENTLEMAN AND CONSUMMATE PROFESSIONAL’

B eloved Past Chair of the FBA Trust & Wealth Management Division, Bill Marks, passed away Sept. 26, 2024, following a brief illness. Born May 3, 1948, Marks received his undergraduate degree from Lehigh University and MBA and J.D. from the University of Missouri-Columbia. Prior to his nearly 27-year career at Northern Trust, Marks worked for Bank of America, Continental Illinois Trust Company and First National Bank of Kansas City. Throughout his life, Marks was active in many professional and non-profit organizations and generously supported numerous causes. As an active member of St. Benedict’s Episcopal Church in Plantation, Marks served several terms as treasurer,

was a Sunday school teacher for more than a decade and held several other leadership positions at the church. Marks served as FBA Trust Division Chair from 2000-2001 and was named Trust Banker of the Year in 2003. He was a longtime supporter of Florida Trust School and taught there for many years. He also served as a Trustee on the Florida Bankers Education Foundation (FBEF) from 2007-13 and was FBEF Chair from 2012-13. After retiring from Northern Trust, Marks was elected to the FBA Trust Hall of Fame in 2013. He was a dedicated advocate for the trust banking industry and attended numerous FBA Annual Trips to Washington,

D.C., as well as Capitol Day + Capitol Night events in Tallahassee. Upon learning of Marks’ passing, Trust Division Past Chair George Lange summed up the feelings of many. “Bill was a true gentleman and consummate professional,” Lange said. “It was a privilege to have known him and have him as a friend. A real loss for FBA and the trust community.”

Commercial Loan Portfolio Consulting

Commercial Loan Reviews ouoѴbo "|u;vv $;vঞm] omv†Ѵঞm]

ENGAGED. PROVEN. TRUSTED. CEIS Review evaluates and assesses commercial loan portfolios to assist senior management and the board in assessing the credit risk quality and administration of their Institution’s portfolio. CEIS’ experienced credit professionals consult with clients to advise on credit matters, industry best practices, and pertinent regulatory guidelines.

Contact us to learn more. 888-967-7380

18 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

11th Annual Women in Leadership Conference

Date: Thursday, April 10-Friday, April 11, 2025 April 10: 9 a.m.-7 p.m. April 11: 8 a.m.-Noon Time: Location: Orlando Marriott Lake Mary

Join Us!

dŧáłΨŎŨĦΨÝŮğ¾Ğă×ΨݾŮņ͜ ΨŮĦœΏĘĘΨáŭĿáłăáğ×áΨĿĦŨáłöœĘΨĔáŮğĦŎáΨņĿáá×ÿáņ͜ Ψáğ÷¾÷ăğ÷ΨÖłá¾ĔĦœŎ ņáņņăĦğņΨ¾ğÝΨŧăÖł¾ğŎΨğáŎŨĦłĔăğ÷ΨáŧáğŎņΨÝáņă÷ğáÝΨŎĦΨöœáĘΨŮĦœłΨĿłĦöáņņăĦğ¾ĘΨÝáŧáĘĦĿĞáğŎΨ¾ğÝ ĿáłņĦğ¾ĘΨ÷łĦŨŎÿ͛ ΨWá¾łğΨöłĦĞΨŎł¾ăĘÖĘ¾Ŷăğ÷ΨĘá¾Ýáłņ͜ ΨöĦł÷áΨĞá¾ğăğ÷öœĘΨ×Ħğğá×ŎăĦğņΨ¾ğÝΨŨ¾ĘĔ ¾Ũ¾ŮΨáğáł÷ăŶáÝΨŎĦΨáĘáŧ¾ŎáΨŮĦœłΨ×¾łááłΨŎĦΨğáŨΨÿáă÷ÿŎņ͛

Who Should Attend?

ŒÿăņΨŎł¾ğņöĦłĞ¾ŎăŧáΨáŧáğŎΨăņΨÝáņă÷ğáÝΨöĦłΨŨĦĞáğΨ¾ŎΨ¾ĘĘΨĘáŧáĘņΨĦöΨÖ¾ğĔăğ÷͜ Ψöăğ¾ğ×áΨ¾ğÝΨłáĘ¾ŎáÝ ăğÝœņŎłăáņ͛ Ψ¦ÿáŎÿáłΨŮĦœΏłáΨĘ¾œğ×ÿăğ÷ΨŮĦœłΨ×¾łááłΨĦłΨŮĦœΏłáΨ¾Ψņá¾ņĦğáÝΨĿłĦöáņņăĦğ¾ĘΨĘá¾Ýăğ÷ΨŎÿá Ũ¾Ů͜ ΨŎÿăņΨ×Ħğöáłáğ×áΨÝáĘăŧáłņΨŧ¾Ęœ¾ÖĘáΨăğņă÷ÿŎņ͜ ΨăğņĿăł¾ŎăĦğΨ¾ğÝΨĦĿĿĦłŎœğăŎăáņΨŎ¾ăĘĦłáÝΨöĦłΨŮĦœ͠

How to Register

Hotel Information

Venue

FBA Members

Register online via the FBA Members Only portal.

Orlando Marriott Lake Mary

Room Rate

$149 per night ++

Non-Members

Reservation Deadline Wednesday, March 19, 2025

Complete and submit a Non Member Registration Form.

Don’t miss this opportunity to be inspired, connect with like-minded professionals and take your leadership journey to the next level! Registration Contact: Olga Williams, ojwilliams@floridabankers.com iss this opportunity to be inspired, connect with like-minded onals and take your leadership journey to the next level! tion Contact: Olga Williams, ojwilliams@floridabankers.com Don’t mi professio Registrat