Florida Banking July 2023

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

Gulf Atlantic Bank Making Waves in Key West

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

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 38

NUMBER 6

JULY 2023

ON THE COVER 8 �� �� �� �� �� �� �� �� Gulf Atlantic Bank: Making Waves in Key West CONTENTS 4 �� �� �� �� �� �� �� �� �Chair’s Message 6 �� �� �� �� �� ��Straight Talk from the President’s Desk 12 �� �� �� �� Government Relations: The 2023 Session Wrap Up 14 �� �BancServ Endorsed Partner: Maximizing Acquisition Strategies: How to Take Control and Drive Growth Through Data-Driven Insights 16 �� �� �� �� �� �� ��Efforts to Improve Transparency at the Consumer Financial Protection Bureau 18 �� �� �� Trust Banking: Hunkering Down During Florida’s Property Insurance Crisis 20 �� �� FBA Leadership Luncheon Honoring Senator Rick Scott 23 �� �� �� �� �� �� �� �� �� �� �� �� �Tribute 24 -Milestones in Florida Banking 26 �� �� �� �� ��Personal Transactions 28 �� �� �� �� �� �� �� �� �� �� �� �� ��Kudos 30 �� �� �� �� �� �� ��Upcoming Events 31 �� �� �� �� �� �� �� �� Did You Know? 31 �� �� �� �� �� Advertising Directory

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

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Jose Cueto Chair

Derek Jones Chair-Elect

Bill Penney Immediate Past Chair

Fab Brumley Second Immediate Past Chair

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On the Cover: Gulf Atlantic Bank’s senior management team

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

Photos Courtesy of Nick Doll Photography, Key West, Fla.

©istock.com: sanjeri; ipopba; monkeybusinessimages

CHAIR’S MESSAGE

THE TIME IS NOW: READY TO SERVE AS FBA CHAIR

BY JOSE CUETO, FBA CHAIR

M y uncle was one of the first Cuban American bankers in South Florida to become a bank president. I looked up to him, and the business of banking intrigued me. I discovered I had a natural affinity for math and finance. A summer internship in banking led to a part-time job, and the rest is history. Each step in my career has led me here. It is an honor to give back to this industry that has given so much to me and my family and to represent you as your next Chair of the Florida Bankers Association. Big thanks to my predecessor, Past Chair Bill Penney, for his leadership and wisdom. I am excited to follow the tradition of championing bankers’ voices in Tallahassee and Washington to address legislation. Ours is an industry that’s constantly under fire. As members of the FBA, we play a role in educating our customers, the public, and our representatives about the important work we do and how proposed legislation impacts our local communities. We do what we do because we love to serve our communities. And when we advocate for banking issues, we are fighting for or against legislation that will help or hurt consumers, entrepreneurs, and small businesses. Through my involvement with the FBA, serving on the Government Relations Council, BankPac, and the Board of Directors, I’ve seen how our relationships and persistent communication with representatives make a difference. Our representatives can’t help us if they don’t understand our position on a particular issue. Similarly, we can best help our customers when we know what’s happening in legislation at the state and federal levels.

In our conversations with representatives over the coming year, I will speak up about ESG regulation, credit union taxation, and the Safe Harbor Act, to name a few. Of course, we need your support to be successful. We need our members to be involved, and I’m not referring only to our C-suite executives. Who is going to step up from the next generation? One of my goals as Chair is to engage our young people in our advocacy efforts and encourage other banking leaders to do the same. We have to be intentional about developing our next generation bankers because they are next to take up the mantle. Let’s make this the year we invite new faces

to our events and ask our young people to participate in advocacy opportunities. One of my mantras is this: You don’t have to stand tall, but you do have to stand. The FBA offers plenty of opportunities for bankers to participate, whether by joining a board or committee, attending events such as leadership luncheons and trips to Washington, D.C., or simply answering our “Calls to Action.” I look forward to serving alongside Chair Elect Derek

“LET’S MAKE THIS THE YEAR THAT WE INVITE NEW FACES TO OUR EVENTS AND ASK OUR YOUNG PEOPLE TO PARTICIPATE IN ADVOCACY OPPORTUNITIES.”

Jones as well as the experienced and helpful team at the FBA. I am also grateful to my team at International Finance Bank for their support as I take on these new responsibilities. Most of all, I look forward to seeing you at our upcoming events. In September, the FBA is hosting leadership events in Tampa and Miami honoring FDIC Vice Chairman Travis Hill (Sept. 7) and FDIC Chair Martin Gruenberg (Sept. 12). Register today to save your seat — see you then!

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STRAIGHT TALK FROM THE PRESIDENT’S DESK

CELEBRATING AMERICA’S BIRTHDAY IN FREEDOM

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

A s we celebrate America’s birthday on July 4th, the Sanchez family celebrates living in freedom in the greatest country ever created. My mother, brothers and I will never forget the day that we left behind the tyranny of Castro’s Socialist Cuba to come to the freedom of the United States. It was September 3, 1962. This year marks the 61st anniversary of that day. My father fled Cuba in 1961 on a cargo ship bound for Spain to escape communists who were after him. My mother stayed behind with me and my two older brothers — Juan, who at just 10 years old was now the man of the house, and Guillermo, age 9 — in the house that she and my father had built in the suburbs of Havana. Goons from Cuba’s revolutionary army would come by at all times of day and night to harass my mom. They would call her names and shout that we were traitors to the communist revolution, warning that she would lose her home soon. My two older brothers were always at my mom’s side when the soldiers came, helping her and standing strong with her. When Castro closed all of the country’s Catholic schools, my mom pulled my two brothers from the public schools. My mom did not want her sons to attend public schools where the children were being indoctrinated by the communists to believe in Fidel as the Supreme Being and that there was no God. My father, who stayed in Spain for just a few months after his arrival, was eventually granted political asylum in the United States and immediately began the paperwork to have us leave Cuba on one of the Freedom Flights President Kennedy had arranged for Cuban families seeking freedom in the United States. Waiting to be Reunited As a young boy, I would often ask my mother where Papa was. She always replied that I would see him again soon, but that he was always close to my heart. Not long after my father began to work on having our family removed from Cuba, my mother — who told

me this story — finally received the good news: she would be able to leave Cuba with her three sons. For many months she had fought with Cuba’s communist government to allow Juan, my eldest brother, to leave the country with us. (The Cuban government wanted Juan to stay behind since he was 10 years old and could soon begin military training and communist indoctrination.) My mom won — she is one tough lady when she has to be. Today she is 92 and loves America with all her heart. When I awoke the morning of September 3, 1962, I had no idea what would happen to my family and me on that day. My mom grabbed a few family photographs, a dress, and one set of clothes for each of us boys and stuffed everything into one small suitcase. The communist government did not allow us to leave with money or jewelry, just that one small suitcase for four people. That day was one of mixed emotions for my mother. On the one hand, she wanted to rejoin her husband in the United States so her three children could be raised in freedom. Cuba had become a land of tyranny, a nation without freedom of religion or speech. On the other hand, she would be leaving home, the land she loved and never expected to leave. She would also be leaving behind her aging parents and her brothers and sisters, not knowing if she would ever see them again. As my grandparents hugged and kissed us goodbye, my mom hugged her father, mother, brothers and sisters for what would be the last time in her life. I cannot even imagine that, can you? Our family friend Pepe arrived to take us to the airport for the 1:00 PM Cuban Airlines flight to Miami. As we sat in the back seat of the car, my mom turned around to look through the back window and wave goodbye to her family and friends. After being searched by Cuban soldiers, we boarded the plane and were on our way to freedom. One of the few things I do remember was seeing the ground below as the airplane took off.

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

My mom and me at 231st and Broadway in the Bronx.

The Sanchez family: me and my father, mother and brothers.

Me and my older brothers Juan (left) and Guillermo (right).

My brothers and me with our mom.

Arrival in the United States We arrived in Miami before 2:00 PM and were immediately taken to immigration processing at the Freedom Tower (the old Miami News building on Biscayne Boulevard) where we received our medical shots, a toothbrush and toothpaste. The U.S. government placed us at the Tamiami Hotel in downtown Miami for the next two nights. On September 5th, we took a flight to New York City to rejoin our father. When we got off the plane at LaGuardia, my father was waiting. He hugged my mom, brothers and me so hard while he cried. Years later, my brother Juan told me that was the first time he had ever seen our papa cry. Our family had been reunited in freedom. Living in Freedom Less than 30 days after we arrived in the United States, the Cuban Missile Crisis began, and all Freedom Flights from Cuba were canceled. Although my family never wanted to leave Cuba, my parents accepted political asylum in America and were always grateful that this great country opened its arms to them. My father had, and my mom continues to have, a deep love for the United States. They never protested any of this country’s policies and always

obeyed its laws. They viewed themselves as guests during the early years following our arrival, but after years passed, and the possibility of returning to their beloved Cuba faded, they proudly became citizens of America. Years later, I would serve in our military to say, “thank you, America.” My parents never accepted any form of welfare or aid; they both worked around the clock in the most menial jobs you can imagine to provide for their children. In Cuba, my mom was a housewife, but here in the United States, she worked in a factory making plastic coolers and bags in the Bronx. My father started working at Incarnation Catholic Church in Manhattan as a maintenance man and later for Merrill Lynch cleaning offices at night. They never complained or asked, “Why me?” We had a comfortable middle-class lifestyle in Cuba before it all crumbled when Castro’s communist revolution seized all private property. My parents taught me that freedom is something you never take for granted; you cherish it, you fight for it, and you share it. If I ever have a “bad hair day,” the mere thought of my parents’ experience puts things back into perspective. I cannot even begin to tell you how grateful I am to my parents and to this great country, the United States. I look forward to celebrating America’s birthday on July 4th.

WWW.FLORIDABANKERS.COM JULY 2023 — 7

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Making Waves in Key West Gulf Atlantic Bank:

T he founders of Key West-based Gulf Atlantic Bank have faith that all things work out as they should. Despite the challenges of opening its doors at the start of the Covid-19 pandemic, the bank experienced a successful launch and it was clear that the venture was meant to be. Chairman Peter Batty and Jeff Searcy are the co-founders of Gulf Atlantic Bank. Longtime business partners and brothers-in-law (Searcy is married to Batty’s sister), Batty and Searcy have previously opened both an insurance agency and real estate brokerage together. In 2018, they were approached by a client — and future investor in the bank — who wanted to know if they’d ever considered starting a bank. “We had always found ourselves involved in core businesses, offering necessary services. Insurance is

services gave the de novo an edge in the beginning months of the pandemic. “Being one of the first banks that’s actually 100 percent cloud-based, we were able to accommodate more of our customers. People were still able to open bank accounts without physically walking in, which they weren’t used to. That’s not typical here in Key West, though I know it is elsewhere,” Batty said. Today, the bank has $133 million in assets. “The community was really the reason we were able to open. If it wasn’t for our investors and customer relationships, we wouldn’t be here. The community was really responsive and really open to it,” Batty said. So too was the city excited to see the formerly derelict property cleaned up; the building was badly damaged by Hurricanes Wilma and Irma. Batty

one of the oldest industries in the world, as is banking,” Batty said. “Banking is a historically great business; it’s community-based. We always liked the idea of legacy money and legacy involvement in the community, and starting something that will be around for a long time.” Batty and Searcy met with a well-respected attorney, the late George Igler, to begin the process. About six months later, they’d put together a board, started the application, and found a location for the bank (a former motorcycle repair shop). They received approval on March 13, 2020, just days before the city was shut down due to the pandemic.

and Searcy served as the contractors for the project, personally signing a 40-year lease for the property as a testament to their belief in the bank and its future. Batty was raised both in Key West and in New York; his family split their time between the two, Batty and his siblings transferring schools midyear. After college, Batty returned to Key West to live and begin his career. His wife is also from Key West.

“IF IT WASN’T FOR OUR INVESTORS AND CUSTOMER RELATIONSHIPS, WE WOULDN’T BE HERE. THE COMMUNITY WAS REALLY RESPONSIVE AND REALLY OPEN TO THE BANK.”

Searcy was born in Gainesville, Ga. He graduated from the Air Force Academy in Colorado Springs and spent five years in the Air Force. After living in Alaska and then Charleston, S.C., Searcy and a friend moved to the Florida Keys to be charter captains. Mere months later, he met his wife — Batty’s sister -— on a blind date, and the rest was history. “I’ve been here in the Keys for nearly 23 years. The conch locals are a welcoming, warm community. But it can be difficult to break in, and our CEO Bryan [Robinson] has done that very well,” Searcy said. “Bryan has been our key employee as CEO. As our chief, we’re very grateful for him.” Robinson was working for a bank in Gainesville when he was first approached by Batty and Searcy; he Gulf Atlantic Bank, Continued on page 10

- PETER BATTY

Nevertheless, the bank opened its doors as planned on April 13, 2020 as only the second community bank in Key West. “We were an underdog. A lot of people didn’t expect us to open,” Batty said. “They underestimated Jeff and me, and underestimated our team’s drive and the need within the community.” Though it was a slow start for the de novo bank, the team at Gulf Atlantic Bank was committed to serving its new customers — both those who visited the branch and those who could not. The bank’s digital banking

WWW.FLORIDABANKERS.COM JULY 2023 — 9

live there when they returned to Key West. They later sold the unit and made enough money for the down payments on their future homes. “There’s no way any traditional bank would have given us that loan. Thanks to First State Bank’s relationships within the community — particularly with my father and the developer — the bank took a chance on us and said, ‘we’re going to give them that loan.’ So if it weren’t for community banks, I don’t know that Jeff and I would be here right now,” Batty said. “In the same way, we want to pay it forward within our local community; I want to see my kids and their friends have the opportunity to come back and live here in Key West one day.” Looking forward, Gulf Atlantic Bank has plans to diversify by opening a branch in Ocala in the third quarter of 2023. “If banking has taught me anything, it’s patience. I’ve learned to understand that it takes time. The board said, ‘Let’s get profitable first, and we’ll go from there,’” Batty said. “Ocala is our big dream. As it has with everything else that’s happened in our lives, we believe that things work out the way they’re supposed to, so we keep open minds. If we have to fight or force something through, it doesn’t necessarily make sense for us. We have to follow where the community, our investors, and our customers lead us. We’re excited about our future.”

Gulf Atlantic Bank, Continued from page 9

ultimately decided to move to Key West. Gulf Atlantic Bank is Robinson’s fourth de novo . “We all work well together. Our personalities complement each other,” Robinson said. “We just want to get things done and take care of our clients.” It was Igler who helped connect Batty and Searcy with experienced veterans like Robinson. Rounding out the senior management team are Vice-Chairman Kenneth “Casey” Compton, Chief Loan Officer Adam Woods, Senior Loan Officer Shane Briening, and CFO Jon Eckstein. “Jeff and I have always believed that if something is going to work out, it will progress naturally. That doesn’t mean you won’t have to work hard. But you shouldn’t have to fight for something to fit. It shouldn’t feel like fitting a round peg in a square hole,” Batty said. Batty and Searcy also received support and encouragement from family friend Jack Spottswood, chairman of First State Bank of the Florida Keys, the first community bank on the island. Batty’s respect and appreciation for the community banking model goes back to his college days, when First State Bank granted him and his sister a loan to buy a house in Key West. Purchasing the workforce housing unit was a great opportunity for the young siblings, who were able to rent it out while they were in school but also

Gulf Atlantic Bank senior management team, from left: Senior Loan Officer Shane Briening, Vice-Chairman Kenneth “Casey” Compton, Chairman Peter Batty, President and CEO Bryan Robinson, Co-Founder Jeff Searcy, and CLO Adam Woods.

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

PETER E. BATTY

Peter E. Batty is chairman and co-founder of Gulf Atlantic Bank. He is also the president and co-owner of United Atlantic Insurance Group, a local insurance agency, and president and co-owner of Southernmost Processing Company, Inc., an ATM/ACH processing company. Batty received a master’s degree in Political Science from Florida State University and a bachelor’s degree in Philosophy from Florida International University College of Business. He is a lifelong resident of the Florida Keys and Key West, and lives on the island with his wife Jessica and their four children.

CASEY H. COMPTON

Casey H. Compton is vice-chairman of Gulf Atlantic Bank. Compton was previously a director of Community Southern Bank and Community Southern Bancorp, where he served as chairman of the Loan Committee, chairman of the Compensation Committee, and as a member of the Audit Committee and Asset and Liability Committee. Upon the sale of Community Southern Bank to Sunshine Bancorp, Compton was chosen as the sole director to join the successor Sunshine Bank and Sunshine Bancorp boards, where he was named the Sarbanes Oxley Financial expert. Subsequent to the sale of Sunshine Bancorp, Compton joined, and concurrently serves on, the board of Prime Meridian Bank and Prime Meridian Holding Company, where he is chairman of the Compensation Committee and serves on the Audit Committee.

BRYAN ROBINSON

Bryan Robinson is the chief executive officer and president of Gulf Atlantic Bank. Prior to joining the bank, he served as the chief financial officer of Citizens State Bank in Perry, Fla., before its sale to VyStar Credit Union. Robinson has more than 40 years of executive officer experience. He served as chief financial officer of Community Southern Bank in Lakeland, Fla., from 2012 to 2015, and before that as CEO and president of ProBank in Tallahassee, Fla.

Jeff Searcy is a co-founder of Gulf Atlantic Bank. He is also co-owner of United Atlantic Insurance Group Inc. and Cosgrove Realty. Searcy is a USCG licensed charter captain and a veteran of the United States Air Force. He graduated from the United States Air Force Academy in 1995. Searcy and his brother-in-law Peter Batty began the process of opening Gulf Atlantic Bank after a friend suggested the idea in January 2018. They found and improved the location, recruited a CEO, CFO and SLO, created a board, developed a business plan with Pearlman and Igler Law Firm, led the capital raise, and after two years and three months received FDIC approval to open on April 13, 2020. JEFFREY DAVID SEARCY

WWW.FLORIDABANKERS.COM JULY 2023 — 11

GOVERNMENT RELATIONS

THE 2023 SESSION WRAP UP

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

T he 2023 Session is over. We are happy to report that many of the bad bills and amendments the FBA opposed did not pass. These include public deposits, interchange fees, PACE lending, and the IRS provisions. We were also able to amend language in several bills including the privacy bill and the merchant code bill. We were also able to pass two bills dealing with automobile liens and foreclosure priority. Overall, we are happy with how Session turned out, although we were unable to amend the ESG bill (HB 3). We have begun working with the Department of Financial Services (DFS) and the Office of Financial Regulation (OFR) on the bill’s implementation. We are also happy to report that the Senate removed the bad credit union language added by the House to the DFS package (HB 487). The language would have permitted any credit union to take public deposits if one bank dropped out of the QPD program. This issue is gone for the 2023 session, but they will be back in full force for the 2024 Session. The Governor even made a comment during his press conference when he signed HB 3, wondering why credit unions were not able to take public deposits. Finally, never did we think we would testify so many times in committee or ask you to answer so many Calls to Action. We thank you all for answering the numerous Calls to Action. While we do not always get the immediate reaction we want from legislators, it puts the heat on them to ultimately respond to our requests. Here is a short update of the host of issues we contended with in the Capitol. Watch for a more detailed End of Session Report on these issues and many more.

ESG – Signed HB 3 by Rep. Bob Rommel (R-Naples) was signed by the Governor where he also made a comment that his office will look into why credit unions are not QPDs. We have begun engaging with DFS and OFR on the bill’s implementation. We expect more information to be sent to you over the coming weeks. Credit Unions/Public Deposits – Dead They were back again trying to take your public deposits. Unfortunately, the bill had more legs than in years past, as it passed all of its House committees of reference. Thank you to all who have responded to our Calls to Action. Merchant Codes/Guns and Ammunition Stores – Signed SB 214 by Sen. Danny Burgess (R-Zephyrhills) prohibits financial institutions, the payment system, and others involved in the credit/debit card process from assigning a merchant category code (MCC) to a gun or ammunition store other than an MCC for sporting good or general merchandise store. The FBA was able to work on some amendment language to the bill. While SB 214 is not exactly how we would like it, it is an improvement over the bill that was originally filed. Interchange Fees – Dead The FBA also vigorously OPPOSED SB 7054 by Sen. Travis Hutson (R- Palm Coast). The legislation prohibited the collection of an interchange fee on the sales tax and tips portions of any transaction done with a credit or debit card. We suggested an alternative solution to the retailers to seek an increase in the sales tax collection rebate from the State to no avail.

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

IRS Reporting – Dead Legislation was filed in response to the IRS hiring of 87,000 agents and what that may mean to people and small businesses. The bill would, in part, require Florida state-chartered banks and credit unions to file quarterly reports with OFR on the number of IRS inquiries, requests, summons, subpoenas, or other requests for information or records concerning any account holder domiciled in Florida. We suggested amendments to the bills that will ensure that the state can still receive information, and removes the requirement for our members to provide this information. Automobile Liens – Passed Currently, judgement liens on motor vehicles and mobile homes are not enforceable against creditors unless noted on the certificate of title. HB 27 provides a procedure for a judgment creditor's lien to be noted on an auto title. The legislation also requires the lien to be foreclosed by judicial means as opposed to self-help. We want to thank Representative Christopher Benjamin and Senator Darryl Rouson for their work on the legislation.

The Finality of Foreclosure Judgments – Passed

SB 286; This legislation is in response to the Florida case that upended many decades of foreclosure case law. It reduces the likelihood of senior lienholders having their interests extinguished by junior lienholders seeking to foreclose prematurely. The legislation also deems the losing party liable for the prevailing party's attorney's fees if a foreclosed party erroneously claims that its lien was superior to that of the foreclosing party. We want to thank Senator Bobby Powell and Representative Thad Altman for their work on the legislation. Data Privacy – Passed & Signed After three years, SB 262 by Senator Jennifer Bradley (R-Fleming Island) was passed by the Florida Legislature. We are happy to report that the bill has a full entity level and data Gramm-Leach-Bliley Act (GLBA) exemption for financial institutions. It also contains additional exemption language we have been seeking. Finally, the bill purpose was to target “controllers” (e.g., Big Tech); fortunately, financial institutions do not meet the definition of a “controller.” Thank you to Senator Bradley and Rep. McFarland for including the GLBA and other exemptions we requested in the legislation.

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BY LISA NICHOLAS, VICE PRESIDENT, VERTICAL STRATEGIST, VERICAST

I n today's data-driven economy, understanding and managing consumer data has become a critical aspect of successful marketing strategies. With the elimination of third-party cookie tracking, financial services marketers are increasingly relying on their first-party customer data to gain insights into consumer behavior, preferences and needs, and to develop targeted campaigns that maximize acquisition and retention. However, while first-party data provides a wealth of information about existing customers, it doesn’t The sheer volume and complexity of consumer data can be overwhelming, and effectively managing and utilizing it requires collaboration. By harnessing the power of first- and third-party consumer data and leveraging two-party collaborative approaches, marketers can achieve greater engagement and conversion rates, while also building stronger relationships with their customers. Power Personalized Financial Services Acquisition with 6 Types of Data To address a campaign’s goals and objectives, it’s important to collect the most relevant and valuable data. There are six kinds of data that can be useful for creating a targeted, personalized marketing campaign for financial services acquisition. capture the broader view of the market or potential customers who have not yet interacted with an institution or brand.

1. Consumer behavioral data – Actions, preferences, and decision-making processes provide insights needed to develop effective strategies and positive customer experiences. 2. Digital marketing insights – Tools and techniques to understand how consumers interact with digital marketing channels, such as social, email and websites. 3. Loan and deposit activity – Critical for identifying opportunities, developing relevant messaging and optimizing product offerings. 4. Credit data – Essential for identifying potential

customers, assessing risk and understanding individual customer needs. 5. Loan application data – Crucial component for understanding customer behavior, assessing needs and tailoring messaging accordingly. 6. Competitive data – Understand your position in the market, and obtain valuable insights into trends, positioning and marketing tactics.

THERE ARE SIX KINDS OF DATA THAT CAN BE USEFUL FOR CREATING A TARGETED, PERSONALIZED MARKETING CAMPAIGN FOR FINANCIAL SERVICES ACQUISITION.

Why Intelligent Marketing Spend Is Essential and Expected Marketers are under increasing pressure to deliver measurable results in a highly competitive and changing environment. The enormous amounts of data produced every day by consumers’ interactions with various channels and platforms enable marketers to make more informed decisions on how to allocate their marketing spend and improve the effectiveness of campaigns.

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6 Key Factors to Planning Marketing Budget Allocation Determining a marketing allocation strategy requires careful consideration of several key points. At Vericast, we recommend these six important factors to keep in mind: 1. Targeting approach – Choose a level and approach designed to effectively reach and engage your audience. 2. Audience – Gain a better understanding of your audience to reach the right people and optimize ROI. 3. Channels – Choosing the right channels can have a significant impact on the success of a campaign in areas of reach, engagement and measurement. 4. Reach – Achieve maximum reach for building brand awareness, increasing market penetration and optimizing cost efficiency. 5. Frequency – Measuring how often your audience is exposed to your message plays an important role in determining message retention and achieving a higher ROI. 6. Price – Understanding how price impacts channels, strategies, innovation, and competitors affects the total cost of a campaign. Let’s explore the importance of understanding, managing, and collaborating on consumer data, and the key strategies and best practices for optimizing marketing performance and driving business growth. Data Informs and Optimizes Acquisition Marketing Strategies By using data and analytics to inform your acquisition marketing strategies, you can be more strategic and purposeful, more cost-effective, gain better customer insights, and generate more effective leads. Here’s ways data information and analysis enhance acquisition marketing: • Strategic and Purposeful – By analyzing consumer data, you can identify the most effective channels and tactics for reaching your target audience and create campaigns that are tailored to their specific needs and interests. • Cost-Effective – By targeting specific segments, you can reduce wastage and optimize your marketing spend. Additionally, by analyzing the performance of your campaigns in real time, you can quickly identify and adjust any campaigns that are underperforming, allowing you to save money and maximize ROI. • Better Insights – Gain a deeper understanding of your customers' and prospects’ needs and preferences. This can help you to create more targeted and personalized marketing messages that resonate with your audience, increasing the likelihood of converting them into customers. • High-Quality Lead Generation – By analyzing customer data, you can identify potential customers who are most likely to be interested in your financial institution’s products or services and create campaigns that are designed to appeal to them specifically.

Unlock the Secret to Omnichannel Acquisition Marketing Success An omnichannel acquisition strategy relies on quality first- and third-party data to provide personalized, consistent, and optimized experiences for customers across multiple channels, such as online, mobile, email, print and in-branch. By leveraging both first- and third-party data that is gathered, vetted, and optimized in partnership with an experienced data vendor, financial institutions can gain a more complete and accurate picture of their customers and deliver the best possible experience. Lisa Nicholas is the vice president of Strategy, Financial Services at Vericast. She specializes in marketing and digital transformation for the financial services industry. Nicholas has more than 30 years of experience in the banking and tech industries. She has worked with companies to transform their marketing, sales, lending, branches, and operations, focusing on leveraging technology and data for an omnichannel strategy. She can be reached at 512 535-8365 or lisa.nicholas@vericast.com. Vericast offers advanced data collection, enhancement, and analysis capabilities that help optimize acquisition marketing strategies. Our AI-powered predictive insights and industry-leading analytics provide valuable data that informs better decision-making, ultimately resulting in desirable outcomes.

WWW.FLORIDABANKERS.COM JULY 2023 — 15

EFFORTS TO IMPROVE TRANSPARENCY AT THE CONSUMER FINANCIAL PROTECTION BUREAU

BY CONGRESSMAN BLAINE LUETKEMEYER

I f you’re a regular reader of this column, you’ve heard me talk about reforming the Consumer Financial Protection Bureau (CFPB) a time or two. But now that Republicans have the House majority and the United States Supreme Court is going to decide whether its funding mechanism is constitutional, we’re in a position to actually make some changes. And I’ve got several bills in the works to bring reform to arguably the most unaccountable agency in Washington. The Bureau’s actions over the last couple of years have been concerning — to put it mildly. This agency and its current director operate as if they’ve been given carte blanche over the American financial system. The most glaring example of this took place in December of 2021, with Director Chopra’s attempt to usurp then-FDIC Chairwoman Jelena McWilliams’ authority, which I’ve spoken about before. Not long after this stunt, I introduced the FDIC Board Accountability Act to remove the CFPB Director from the FDIC Board and put term limits in place for FDIC Directors. This would ensure the FDIC remains independent from the extremely political CFPB and prevent career bureaucrats like Martin Gruenberg from sitting at the corporation indefinitely. But no matter my views on the Director and his actions during his tenure, there is a larger issue here. The CFPB as an agency has far too much autonomy, authority, and unaccountable federal funding which allows it to operate in the manner it does. In 2018, the then-CFPB Director Mick Mulvaney — who later went on to become acting White House Chief of Staff — said something very profound in a written testimony. He said the CFPB’s, “lack of accountability to any representative branch of government should be a warning sign that a lapse in democratic structure

and republican principles has occurred.” Keep in mind, this was the person leading the Bureau at the time. He experienced firsthand the excessive, unchecked power he was given and sounded the alarms, which doesn’t often happen in Washington, D.C. Fortunately, the Bureau’s legitimacy is so legally questionable that the United States Supreme Court will hear arguments on whether the CFPB’s funding mechanism is even constitutional in October. I’m hopeful it will rule that the manner in which it’s been allowed to operate is unacceptable and confirm what CFPB critics have been saying all along. Recently, the House Financial Services Committee passed a package of oversight bills aimed directly at the Bureau. Two of my bills were in that package. The Consumer Financial Protection Commission Act that would replace the CFPB Director position with a bipartisan, five-person commission and the Bureau of Consumer Financial Protection-Inspector General Reform Act of 2023 to establish an independent Inspector General specifically for the CFPB. Most people don’t know this but the CFPB — the agency most in need of an independent Inspector General — doesn’t have one. Both of these bills would minimize politically motivated actions and drastically improve transparency at the Bureau. While getting those bills through the Senate and signed by the President would be extremely difficult, the House is making our intentions clear. And should the Supreme Court rule that the funding mechanism is unconstitutional, legislation will need to be passed to authorize any sort of funding for the Bureau. You can be sure that massive reforms will be required for the House to allow the Bureau to receive any funding at all, and these two bills are only the start.

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PROPERTY INSURANCE

HUNKERING DOWN DURING FLORIDA’S PROPERTY INSURANCE CRISIS

BY KENNETH PRATT, SENIOR VICE PRESIDENT OF GOVERNMENTAL AFFAIRS, FBA

T oday, Floridians are all struggling to deal with the significant rising costs of just about all consumer goods — in many parts due to rising inflation. However, no other individual financial challenge is perhaps more significant for Florida families than the triple digits exponential rising cost of property insurance premiums. Analyzing the Crisis By most accounts, there are several drivers that are primarily responsible for Florida’s insurance crisis. One of those factors has been the poor litigation environment for property insurance claims. As usual, there are bad apples on both sides of this equation — insurance companies that don’t settle claims fairly and quickly and trial lawyers who drag out litigation and the associated costs to purposefully receive sky high jury awards. The Insurance Information Institute has reported data that shows Florida ranks number one in homeowner’s insurance related litigation and that Florida litigation makes up 79% of the lawsuits in the U.S. while accounting for just 9% of the total claims. Another major factor impacting the market has been the rapidly rising cost for insurers to purchase reinsurance. Insurers are required to purchase appropriate reinsurance to appropriately spread more of their risk and ensure that they are financially prepared to pay out claims under catastrophic circumstances. Add to all of that that we have seen thousands of recent policy cancellations, 15 property insurers have gone insolvent since 2020, FIGA’s 1% emergency assessment to policyholders and warmer waters which continue to surround our shores and which have strengthened chances of more devastating storms to come. For many years, the issue of unavailability in Florida’s property insurance market was largely one that was limited to a Florida seaside stretch from Fort Lauderdale to Key West. Over the past

5 years, the issue has now expanded to both coasts of our peninsula and has risen to Orlando, Tampa Bay and Florida’s panhandle coast as well. Now, the Fort Lauderdale to Key West areas of Florida not only struggle with the cost of premiums, but these residents are simply finding it impossible to secure full coverage (wind, storm and flood) from any insurer at all. Insurance agents have also widely reported that even securing coverage through Citizens Insurance Corporation, Florida’s insurer of last resort, has been difficult for certain segments of Floridians who do not meet the company’s thresholds, as established by the Florida Legislature. Legislative Reform Efforts Florida’s Legislature has been debating solutions to the property insurance issue and making some smaller reforms to the market over the past 7 to 8 years. However, over just the past year, Florida’s Legislature has passed two major legislative reform packages in the property insurance market in an attempt to more fully address the issue. During 2022, legislators convened for two special sessions to address the property insurance crisis. In May of 2022, the legislature passed SB 2A and 2D which focused on funding hurricane home hardening grants, reforming contractor solicitations, allowing insurers to offer separate roof deductibles and requirements to mandate that insurers move faster in their processing of hurricane claims. The legislature also convened another Special Session in December of 2022 to put in place more historical reform. During that special session, legislators passed SB 2A which: • Repeals the one-way attorney fee provisions for property insurance claims, leaving both parties responsible for paying their attorney fees; • Prohibits the assignment (in whole or in part) of any post-loss insurance benefits for policies issued after January 1, 2023;

18 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

• Establishes the Florida Optional Reinsurance Assistance Program which allows Florida insurers to purchase reinsurance at near/reasonable market rates; • Establishes additional regulatory provisions to make certain that insurers resolve claims and pay those claims faster; • Provides new provisions to limit policyholders from entering Citizen’s Insurance Company, including a requirement to remove policies where renewals or take out offers are within 20% of the Citizen’s premium. Sending the Right Signals Even with these significant legislative reforms completed, it is unreasonable to expect immediate change in the form of lower premiums for customers and more significant availability for bankers to close loans. We did not get into this crisis overnight and we won’t fully heal the market overnight either. However, what is most important regarding these reforms is that our government has begun to send the right signal to both foreign and domestic insurers and reinsurers who have previously been hesitant to enter the Florida property insurance market. That signal is that we are willing to make the tough, but right, choices that will address Florida’s multi-faceted challenges. So far, one new company, established by HCI Group, has recently filed with the Office of Insurance Regulation to begin issuing policies in the Florida market. Keeping a Fresh Perspective

knowledgeable agents who know the most about the market and have access to a variety of insurance options for coverage.

Working Together to Find a Solution

The FBA continues to receive emails and phone calls from concerned bankers, and many FBA board and Governmental Relations Council meetings have continued to wrestle with the topic. Recently, one banker suggested that the FBA should consider submitting a property insurance questionnaire to our wide membership group. This questionnaire would request additional information such as how banks are using creative lending options on underinsured properties or if they have found using Probable Maximum Loss studies for underwriting to be helpful. FBA would then compile and summarize the responses and provide creative solutions/best practices in an effort to address these problems as an industry. Coming together as a banking community and using our collective brainpower is an excellent idea and one which the FBA plans on implementing in the coming months. Please be on the lookout for the questionnaire and please help the industry by providing a response! Kenneth Pratt serves as FBA’s Senior Vice President of Governmental Affairs and is the association’s principal lobbyist on issues involving trust and wealth management legislation.

It is also more important than ever for the banking industry to look for new and creative ways to address this crisis. During the 135th Annual Meeting, the FBA hosted a panel discussion on “Florida Property Insurance — Current and Future.” The FBA was pleased to be joined by Florida Insurance Commissioner Michael Yaworksy, Citizens Property Insurance CEO Tim Cerio and Zurich Vice President for Middle Markets Jennifer Harrington, all experts on the topic of property insurance. The panelists painted a sobering picture of the current market but gave bankers some hope that with time, Florida’s insurance crisis could still rebound. The keys to this rebound would be increased insurer competition, decreased reinsurance costs and movement towards depopulating policies out of Citizen’s. While the panelists could offer no single or quick resolution to solve Florida’s crisis, they did encourage the bankers and the rest of the business community to stick together and help to maintain the legislative reforms most recently passed. They also encouraged bankers to revisit insurance agency choices and to seek out the most

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WWW.FLORIDABANKERS.COM JULY 2023 — 19