Florida Banking June 2023

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM SEPTEMBER 2020 2023-24 FBA Chair Jose Cueto THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM JUNE 2023

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 2023 Alex Sanchez President and Chief Executive Officer

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 38

NUMBER 5

JUNE 2023

ON THE COVER 8 �� �� �� �� �� �� �� �� �� �� �� 2023-24 FBA Chair Jose Cueto CONTENTS 4 - - - - - - - - -Chair’s Message 6 - - - - - - Straight Talk from the President’s Desk 12 - - - Incoming FBA Chair-Elect Derek Jones 13 - - - - Government Relations: 14 - - - -Florida BankPac Update 16 - -BancServ Endorsed Partner: Leveraging the Best: Managing Employee Benefits the Easy Way 18 - - - - - - - - - Trust Banking: Navigating Multiple Fiduciaries: Florida Uniform Directed Trust Act And Co-Trustee Considerations 24 - - - - - - 49th Annual Capitol Day + Capitol Night 27 - - - - - Personal Transactions 29 - - - - - - - - - - - - - Kudos 30 - - - - - - - Upcoming Events 31 - - - - - - - - Did You Know? 31 - - - - - Advertising Directory Why We Need You to Get to Know Your Elected Officials

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

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Bill Penney Chair Jose Cueto Chair-Elect

Fab Brumley Immediate Past Chair

Greg Nelson Second Immediate Past Chair

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On the Cover: 2023-24 FBA Chair Jose Cueto

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

Photos Courtesy of Steven Martine Photography

©istock.com: CatLane

CHAIR’S MESSAGE

LOOKING BACK ON A BUSY YEAR AS YOUR FBA CHAIR

BY BILL PENNEY, FBA CHAIR

I n 1969, Gary DeCarlo’s song “Na Na Hey Hey Goodbye” become a No. 1 hit on the radio. As I finish out my one-year term as your Chair, it seems an appropriate reference to end on. Where has the year gone? It’s hard to believe that my year as Chair has come to an end! We have been busy defending our industry on all sides. It has been a true honor to represent you, our membership, in Tallahassee and Washington, D.C., and at the FBA’s many events. Serving as Chair is not a passive role. It’s exciting to have a front-row seat to the advocacy process,

us to lawfully bank the cannabis industry. These are just a few of the key issues we’ve advocated for in our meetings with policymakers. I want to thank our team at Marine Bank for their support and encouragement during my time as Chair. I also want to thank our fearless leader, FBA CEO Alex Sanchez, and the FBA team for their hard work in planning and executing these advocacy opportunities. It’s no secret that our industry has faced challenges in the past year… I’m especially grateful for the FBA’s leadership in the aftermath of Hurricane Ian — jumping to the aid of our banks in Southwest

participating in the FBA’s efforts to build relationships with representatives and educate them about the impact of legislation and regulation. What has my year as Chair looked like? Highlights have included multiple trips to Washington, D.C., and White House briefings with Bharat Ramamurti, visits to Tallahassee, the Gubernatorial Debate in Fort Pierce, and our leadership luncheons for FED

Florida who faced significant losses — and also amidst the increased media scrutiny due to the bank failures. In my leadership role as Chair, these experiences were opportunities to learn and to be a voice for our Florida banking industry. I’m proud to pass the baton to Incoming Chair Jose Cueto, a colleague and friend who is just as passionate about championing our industry. I

“IN MY LEADERSHIP ROLE AS CHAIR, THESE EXPERIENCES WERE OPPORTUNITIES TO LEARN AND TO BE A VOICE FOR OUR FLORIDA BANKING INDUSTRY. ”

Governor Michelle Bowman and Sen. Rick Scott. We have met with an impressive lineup of leaders and policymakers, including Senators Marco Rubio and John Cornyn in addition to Sen. Rick Scott, as well as Acting Comptroller of the Currency Michael Hsu and FDIC Chair Marty Gruenberg, among others. We spoke out about ESG regulations and the burdensome compliance costs of having banks act as the “climate police” to enforce federal environmental policies. We have advocated against the ILC charter loophole and the outdated tax loophole benefitting credit unions. We have urged representatives to support the SAFE Banking Act which would allow

have said it before, and I’ll say it again… As bankers, we are leaders within our communities. The more that you get involved, the more you realize that you can make a difference. How do you get involved? Attend our events. Answer our calls to action. Serve on one of our boards or committees. Each of us has an important role to play. We need everyone in our membership to support the FBA and our efforts to keep the industry strong. Though my time as Chair may be up, I will continue to fight for our industry! Thanks for a great year, here’s to another. I’ll close out by quoting Porky Pig… “tha tha tha that’s all folks!”

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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STRAIGHT TALK FROM THE PRESIDENT’S DESK

MR. PRESIDENT: SOCIALISM DOES NOT WORK

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

C ome on, Mr. President; say it ain’t so. According to a recent Wall Street Journal op-ed by the Editorial Board, “Upside Down Mortgage Policy” (April 22, 2023), the Biden Administration has now imposed a monetary penalty on those with good credit scores seeking a mortgage to help those with lower credit scores who apply

If the President wants to fund a first-time buyer mortgage program, that is okay, although it should be noted that many of these programs already exist. However, one thing should be very clear: this new mortgage plan is nothing more than socialism, regardless of what the Administration calls it. I equate this new income redistribution program

for a mortgage. I think that is totally unfair. The Administration is using its rule power over agencies like the Federal Housing Finance Agency (FHFA) which regulates federal mortgage guarantors Fannie Mae and Freddie Mac, to change our country’s mortgage policies. Here is a piece from the Journal article: “Income redistribution is an abiding value of the Biden Administration, and now it wants to spread that to mortgage lending. A new rule will raise mortgage fees for borrowers with good credit to subsidize higher

with the student loan forgiveness plan unveiled by the Administration in August of last year. Like the new mortgage plan, the President’s student loan plan is total income redistribution. Both programs penalize one group under the guise of helping another. Having immigrated here to this great country from a country that adopted this system in the late 1950s, I can personally attest that socialism does not work, and the government should

"HOWEVER, ONE THING SHOULD BE VERY CLEAR: THIS NEW MORTGAGE PLAN IS NOTHING MORE THAN SOCIALISM, REGARDLESS OF WHAT THE ADMINISTRATION CALLS IT."

risk borrowers. Under the rule, which goes into effect May 1, home buyers with a good credit score over 680 will pay about $40 more each month on a $400,000 loan, and upward depending on the size of the loan. Those who make down payments of 20 percent on their homes will pay the highest fees. Those payments will then be used to subsidize higher-risk borrowers through lower fees.”

never pick winners and losers. Here is my personal point of view and story as an immigrant to this great country. My parents never accepted any welfare or government assistance handouts. They worked two or more jobs each day in the Bronx as they began their new life here and had to make ends meet to raise three big and hungry boys. My mom and dad worked in factories

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

while we lived in a two-bedroom apartment above a deli in the Bronx. I wanted to attend college but knew my parents could not afford to pay for my tuition. I also wanted to serve our great nation in the military to say thank you for taking us in as immigrants to live in freedom. So, after completing high school in Miami, I joined the military and served almost five years in the United States Air Force. I attended university classes Monday to Thursday evenings on the military bases where I was stationed after working all day in my military job. When I received my honorable discharge, I attended law school at the University of Iowa and I borrowed $6,000 as student aid to help pay for my education. After I graduated and began to work in my first law job making $25,000 a year, I bought a home and a car and started to repay my student loans. I paid off my student loans three or four years after I graduated. Now here comes President Biden handing out debt relief like Christmas gifts to those who did not repay their loans, no matter their families’ income levels. And what do people like me get, Mr. President, those of us who were responsible and repaid our student

loans? Had I never paid, would my loan be forgiven too? Does this immigrant who served our country in the military get some sort of monetary credit for being a responsible citizen? What if my parents had been wealthy, and I still did not repay my student loan — is that fair, Mr. President? Traditionally, mortgage rates are based on a variety of factors such as income, credit score and risk. Now comes the President’s new mortgage income redistribution plan which can be likened to students: If you have one student who studies and works hard to make As while the other student parties, fails to study, and makes Cs, is it fair to give them both Bs? Under our President’s philosophy, it is. This is not how grades should be distributed, nor is it true for mortgages. Mr. President, let’s help our country’s truly needy, but don’t penalize those who have worked hard and sacrificed. There was a time when this country rewarded such ideals. The FBA will discuss this issue with Washington policy makers in our never-ending battle to help our industry better serve Americans who want to achieve financial success.

Advance your career by enrolling in one of the Florida Bankers Association’s nationally-renowned schools taking place this summer!

FLORIDA TRUST & WEALTH MANAGEMENT SCHOOL

FLORIDA SCHOOL OF BANKING August 6-12, University of Florida, Gainesville Provides bank personnel at the supervisory and officer level the opportunity to increase their knowledge about the banking industry and the economy. July 23-28, Rosen Shingle Creek, Orlando Nationally renowned three-year program that encompasses the world of trust and wealth management banking.

For more information about the FBA’s schools, please visit the FBA website at www.FloridaBankers.com or contact Matthew Bennett at 850-701-3515.

WWW.FLORIDABANKERS.COM JUNE 2023 — 7

FBA Chair Jose Cueto

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

2023-24 FBA Chair Jose Cueto

P resident and CEO of International Finance Bank, Jose Cueto, is Incoming Chair of the Florida Bankers Association; he will serve a one-year term that runs from June 2023 through June 2024. Cueto has been a banker for more than 30 years. He says banking is “in his DNA,” as he was initially inspired by his uncle, one of the first Cuban American bankers in Miami to rise into a position of leadership as a bank president. Cueto took a part time summer internship in 1988 that led to part-time employment, and the rest is history. His banking career continued to evolve; Cueto has served as president and CEO of International Finance Bank for the last eight years.

happening, we won’t know what we’re trying to defend. We need to understand how legislation impacts banks, and then explain the impact that it can have on the broader community,” Cueto said. “Our banks are a big economic engine for small businesses and professionals, and legislation that puts a damper on our ability to focus on our community is dangerous for the industry as a whole.” During his year as Chair, Cueto will focus on industry issues such as ESG regulation, credit union taxation, and the Safe Harbor Act. He is also passionate about recruiting young professionals as the next generation of banking leaders. Succession

planning is critical to the future success of the industry; Cueto wants to engage young people in the association’s advocacy efforts and encourage other banking leaders to do the same within their own organizations. “I’ll be in dialogue with other FBA member banks to see how we can get more young people involved in the association, and in the banking industry as a whole. This will very much be a part of my chairmanship for

“Banking has been great to me. I think serving as FBA Chair is just the natural evolution of giving back to the industry that’s been so good to me and to my family,” Cueto said. Cueto has been active with the FBA for much of his career. He’s served on the Government Relations Council, FBA BankPac, and FBA Board of Directors. In 2016, he was awarded the Florida Bankers Association Horizon Award for his

"WE NEED TO UNDERSTAND HOW LEGISLATION IMPACTS BANKS, AND THEN EXPLAIN THE IMPACT THAT IT CAN HAVE ON THE BROADER COMMUNITY."

the year,” Cueto said. “I think it’s a failure not to include young people. It may not be a failure that’s palpable today, but it will be very palpable just five to 10 years down the road. Acquiring, developing and retaining talent are critical to the long-term success of any organization.” International Finance Bank has created initiatives to attract and train young bankers; this summer, the bank’s internship program welcomes 17 interns. The internship program has led to a lot of hiring. According to Cueto, many of those who started with little knowledge about the industry come out of the program having decided to make banking a career. Similarly, the IFB Young Leaders Work Group is a mentorship program for employees under the age of 35. 2023-24 FBA Chair Jose Cueto, Continued on page 10

outstanding dedication to the FBA. The award recognizes bankers who have given above and beyond expectations. “I’m excited to represent our industry. I’ve had a great opportunity to learn from Bill, Fab and Greg, and I’m excited to follow the tradition of championing bankers’ voices both in Tallahassee and Washington to address legislation,” Cueto said. “Ours is an industry that’s under fire constantly. It’s important that our voices be heard, and I’m ready to take on that responsibility.” Cueto believes that he has a responsibility as Chair to help representatives better understand the impact of their proposed legislation, not only on banks but also in the local communities. “It’s important to know what’s going on in legislation. If we’re not cognizant of what’s

WWW.FLORIDABANKERS.COM JUNE 2023 — 9

International Finance Bank senior management team, from left: Alexander Soto, Denisse Pichardo, Roberto Gatica, Jessica Quintanilla, Andrew Yanez, Jose Cueto, Robert Mas, Jessie Martinez-Lastres, Carlos Delgado, and Hugo Torres.

“The purpose of the group is to provide these young people with skills across the multiple disciplines that exist in the bank. We gave them real 2023-24 FBA Chair Jose Cueto, Continued from page 9

International Finance Bank is celebrating its 30 year anniversary, and Cueto is excited about the bank’s potential for growth and the expanding opportunities within the local market. When

projects and opportunities to engage members of senior management, present to the board, and work with various departments,” Cueto said. “I’m a firm believer that we need to position our young talent on a path of development.” As a leader, Cueto promotes an open-door policy and transparent communication. He is grateful for a seasoned leadership team who have been with him for almost his entire eight years at the bank.

it comes to planning for the future, Cueto and his team are as dedicated to increasing efficiency with new technologies as they are equipping the next generation. “Digital banking is something that we’re very focused on. I think the way that customers transact with banks will be very different five to 10 years down the road than it is today. Digital platforms are critically important to the survival of community banks, because it’ll

"IF YOU’RE A BANK CEO IN FLORIDA, BEING INVOLVED WITH THE FBA SHOULD BE PART OF YOUR JOB DESCRIPTION.”

Cueto joined International Finance Bank as president and CEO in May 2015. Today, International Finance Bank is one of the largest banks in South Florida, with over $972 million in assets and offices in Miami, Aventura, Tampa, and New York City.

make us significantly more efficient,” Cueto said. “Our goal is always going to be to offer the best technologies available to our clients, but never losing sight of the importance of the human element that still exists in banking.”

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

International Finance Bank offers “tailored solutions with a human touch,” guided by its values: exemplariness, closeness, decisiveness and soundness. “Community involvement and social responsibility are huge drivers of who this bank is. We feel a big commitment to the communities we serve,” Cueto said. The bank supports several of Miami’s non profit organizations. The bank has worked with and continues to support United Way, Junior Achievement, Early Learning Coalition, Big Brothers Big Sisters Miami, SebastianStrong, and the International Studies Foundation, among others. Cueto and his team cultivate a company-wide culture of giving back.

J ose E. Cueto has served as president and chief executive officer of International Finance Bank (IFB) since 2015. IFB is a community bank that has served the needs of its local clientele and clients in select international markets for the last 30 years. Under Cueto’s leadership, IFB has made it to the DBR Best of Hall of Fame in four banking categories and has been recognized as a Top 3 Best Business Bank. They are also recognized as one of the Best and Brightest Companies to Work For, and as an honoree for the SFBJ Best Places to Work. Cueto is a member of the Orange Bowl Committee and serves on the FBA Government Relations Council. He is also the incoming chair for the Florida Bankers Association and the president elect of the Center for Financial Training Board of Directors. Cueto is on the Miami Branch board of directors for the Federal Reserve Bank of Atlanta. He is a Board Member of the South Florida Banking Institute, Cuban Banking Study Group, UM Citizens Board, and SebastianStrong Foundation. Cueto was born in Coral Gables, Fla., and attended Belen Jesuit Preparatory High School. He later earned a Bachelor of Arts degree in Business Administration from Florida International University. MEET JOSE E. CUETO “It’s an honor to be selected by your peers to be Chair of this 135-year-old organization. And it’s an honor to work with the staff at the FBA; they are a group of truly passionate professionals that make this association go,” Cueto said. “I’m excited to give back.” While Cueto acknowledges that his personality as Chair will be unique, he understands that he and his predecessors share an important trait: “Each of us loves this industry that we feel is becoming more and more under attack. We will continue to fight,” Cueto said. “I always tell people, you don’t have to stand tall, but you have to stand. If you’re a bank CEO in Florida, being involved with the FBA should be part of your job description.”

WWW.FLORIDABANKERS.COM JUNE 2023 — 11

INCOMING FBA CHAIR-ELECT

FBA CHAIR-ELECT DEREK JONES

D erek Jones, Central Florida Region Director at Wells Fargo, is chair-elect for the coming year. He will serve as a member of the FBA Executive Committee and as chair of the FBA’s Government Relations Council. As an active member of the FBA, Jones is chair of the Audit Committee, has served on the Board of

when it comes to creating a level playing field for our community banks.” Jones has served as Wells Fargo’s Central Florida Region Director since 2015. He provides strategic oversight and leadership of the Central Florida Regional Branch Banking business that spans across a geography that includes the Orlando and Tampa Metropolitan

Directors for the past eight years, and is engaged in FBA advocacy efforts in Florida and Washington, D.C. As chair-elect, Jones will represent Florida’s banking industry alongside 2023-24 Chair Jose Cueto. “The FBA’s collective efforts to rally and provide unwavering support to our Florida communities during COVID, Hurricane Ian, and current economic challenges reflects the important role that our banks play in the stability and prosperity of Florida,” Jones said.

areas. He previously served as the Gulf Coast region president from 2012-15. Jones began his banking career in Las Vegas as Wells Fargo’s Sunrise Valley district manager, later serving as area president of the Southern Nevada market before moving to Florida in 2011. He earned a Bachelor of Science degree in Sociology, Minor Secondary Education from California State University. Jones volunteers in his community as a board member of the Orlando Economic Partnership, and the Central Florida Boys and Girls Club; he was a board member of Harry Chapin Food Bank and has served on the board of directors of Florida Gulf Coast University,

“THE FBA’S COLLECTIVE EFFORTS TO PROVIDE UNWAVERING SUPPORT TO OUR FLORIDA COMMUNITIES DURING COVID, HURRICANE IAN, AND CURRENT ECONOMIC CHALLENGES REFLECTS THE IMPORTANT ROLE OUR BANKS PLAY IN THE STABILITY AND PROSPERITY OF FLORIDA.”

Jones is passionate about promoting a fair and competitive financial services industry, ensuring that regulation keeps pace with the rapidly changing world, and serving the unbanked and underbanked.

the Central Florida Urban League, the Southern Nevada Boys and Girls Club, and the Las Vegas Urban League. “As we navigate the political landscape in Washington, D.C., and in Tallahassee, the quote ‘keeping the main thing, the main thing,’ reminds me of the FBA’s core focus. It’s important to stay true to the FBA’s mission and purpose of focusing exclusively on banking related issues and legislation,” Jones said.

“If an institution accepts deposits, provides loans and other banking-related services, that institution should have the same regulatory oversight as banks,” Jones said. “Credit unions and fintechs both function in that manner and should operate under the same regulatory framework as banks. Addressing the tax-exempt status of large credit unions is another key priority, especially

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

GOVERNMENT RELATIONS

WHY WE NEED YOU TO GET TO KNOW YOUR ELECTED OFFICIALS

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

T he 2023 Session has been one like no other. For example, an amendment was filed to let credit unions take public deposits if just ONE bank does not wish to renew or is unable to renew as a qualified public depository (QPD) under the new ESG law. Luckily the Senate removed this language and the House passed the bill without it. Moreover, House Bill 987 granting the credit unions the ability and mechanism to take public deposits moved further than ever. For the first time, the bill moved through all of its House committees and was ready to be heard on the floor. Thankfully, the Senate never heard SB 1360, so the bill died. But they will be back! Your FBA works hard every day to represent our industry in the halls of DC and Tallahassee. Our year is planned around how to help our members. We plan big and small events for elected officials and regulators to meet and understand the issues that are of the utmost concern. The FBA also works to pass legislation or regulations proposed by our members or in response to legal or regulatory issues. However, we must also defeat bad proposals like public deposits. This is why you are needed. Our industry must do a better job getting to know our elected officials before Session. Much of our success in years past can be credited to the relationship between a legislator and his local banker; legislators have told me when they were influenced by their local banker who shared their stance on a particular issue. It does not matter whether you work in a small or large bank. Legislators want to get to know and learn from their constituents. Getting to know them is a year-round commitment, but it is not hard to do. Talk to your elected official at an event you are attending. It can be a church event, a charity, or a conversation over a cup of coffee. Invite them to the bank to meet your staff and board and

let them know what issues are important to us. You can also explain the difference between a bank and a credit union. Many do not understand the difference. We would be happy to send you talking points to help you get the conversation going. We can also attend, if available, to help facilitate the meeting. Attend an FBA lunch or Leadership Dinner to solidify these relationships. However, you cannot wait until Session or a Call to Action to do any of this because it will be too late. Another way is to commit time and treasure to a campaign. Legislators do not forget when a local banker is one of their first supporters in an election. Unfortunately, many legislators do not know their local bankers. There is no reason for this. Even members who may not always vote with us must hear from a local banker or they will never vote for us. Remember, we are here to advocate for banking, not other issues. We have had liberal Democrats and conservative Republicans supporting our issues that will not agree on much else. Also, please answer our Calls to Action and have your fellow bankers and board members do so as well. The number of responses can help sway a legislator if they are undecided. We have also seen success when a board member explains to a legislator how the proposed legislation would hurt or help banks. As a non-banker, the board member gives a different perspective. Attend Capitol Day or accompany us on a DC Trip. The legislator takes notice when a banker comes all the way from home to meet and to inform them about issues important to our industry. However, the meeting will be even more beneficial if you have gotten to know the legislator prior to coming to Tallahassee or DC. Stopping the credit union bill and other bad legislation is always tough, and it will only get tougher if you do not help us. This is why you are needed.

WWW.FLORIDABANKERS.COM JUNE 2023 — 13

Florida BankPac Update PAC contributions for 2023: $90,575.00 Contributions received between 1/1/2023 and 5/11/2023

Contact Cheryl Tucker (ctucker@floridabankers.com) when your institution achieves 100 percent board member BankPac contributions.

Shilen Patel Vijay M. Patel

Tricia M. Snodgrass Scott J. Sullivan Bradley Weber Martina Weiss Laura Williamson

Mary E. Carroll Miller Couse Earle E. Edwards, III Andrew J. Higginbotham Karl E. Larsen Thomas C. Perry M. Carey Soud Max Jaime Weisinger First National Bank of Pasco Steven D. Hickman First National Bankers Bank Chris Alexander

Banks with 100 percent board member contributions:

Anand Sabapathy John Thompson

Central Bank

Citizens Bank & Trust Wesley Barnett Brian Bracey Carlie W. Cosce Marianne F. George Tiffani R. Gozdur Sherry B. Kelley Greg Littleton Robert A. Loftin Vaughn H. McAshan Douglas W. McPherson William G. Middleton Bonnie Parker Citizens First Bank Paul B. Abell Jay Bartholomew Lindsey Blaise Charles D. Borrowman W. Thomas Brooks Tina Campbell Jennifer Couture Kristen M. Crawford Michelle D. Crawford Ginger L. Devine Marci J. Duke Mark D. James Stephen T. Kurtz Christopher T. Langley Adam Lombardo Kevin W. McDonald Mark Morse Mark E. Schreiber Joseph T. Stangry Lori J. Wilson Patricia Wilson

Community Bank of the South

Community Bank Fred Leopold Justin Woodard

Edison National Bank

First Bank, Clewiston

Winter Park National Bank

Community Bank of the South Harold T. Bistline Stephen D. Crisafulli

BankPac contributions:

Kevin P. Markey Kevin B. Steele William T. Taylor Carlos K. Woodward

Bank of America

Flagship Bank

Fabiola Brumley

Kenneth Bailey David Brandon Ronald Hockman Mark Klein Ken Marks Robert McGivney James Nelson Joseph Oliveri Nick Patel Brent Sembler Robert Shaw Kelly Spica Christopher Sprowls Paul Wikle

Bank of Belle Glade Stephen Prielozny

Crews Banking Corporation JW Crews, IV Bradley L. Wilson

BankFlorida James “Bud” Stalnaker, Jr. Capital City Bank Group, Inc. Thomas A. Barron William F. Butler Stanley W. Connally, Jr. Bonnie J. Davenport Kenneth D. Pratt

Edison National Bank John P. Ammons Elizabeth Aurensan Greg Blurton Karen M. Brazelton Lenor Cross Lisa Hobson June Howard David Lowden Susan Nasworthy Kim Nyberg Matthew Overmyer Patrick Philbin Christina DePari David M. DuVall

John G. Sample, Jr. William G. Smith, Jr. John J. Wahlen

Gulf Coast Business Bank

Heartland National Bank Andrew S. Bible James C. Clinard Jerry T. Whidden Mainstreet Community Bank of Florida Roger B. Baumgartner T.L. Bushey W. Ben Flowers, Jr.

Central Bank

David L. Edgar Scott Kohler Arvind Patel Dinubhai D. Patel

Geoffrey Roepstorff Robbie Roepstorff

Jayesh D. Patel Jayesh K. Patel Jiten Patel Mahendra Patel Nilesh Patel Rajeshkumar C. Patel

Susan Schulte Richard Shera

James H. Parr Steven M. Roy Danna A. Schmid

First Bank, Clewiston Bryan D. Beer

David Hyzer Anne Kelley

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

David Newberry Thomas Oliver Dotti Overton Edna Owens Sarah Peet Zane Petty Kris Phillips Stacey Pittman Mark Poppell Susanne Powers Carly Ross Jim Scott Reade Sevigny Anne Shaughnessy Joel Smith Greg Stahl John Stump Simon Sumner Daryl Tatum Frank Territo, II James Tollerton John Unger Billie Valloreo Debbie Viveiros Donna Walsh Chad Wammock Pam Warnock Ashley Watters Bill West Craig West Paul Whiting Blake Williams

Merlisia Gittens Donovan Glaister

Wendy Libby Randall J. Marshall

David Zillig Ryan Zsiga

Cathy Harris Gary Harrod Kristen Herrick-Feazell

Hal M. Rogers Paul Rountree

TrustCo Bank

Kevin M. Curley Michael Hall Robert M. Leonard Robert J. McCormick Michael M. Ozimek, III

Marine Bank & Trust Company

Erin Hesbeens Oscar Horton Wesley Joyner Kyle Keith Bill Kent Malorie Kent Aenoi Kounlavong Mike Krieg Jeni La Paglia Alison LaPointe Tom Lee Toby Lincoln Jonathan Locklear Tim Mann Joe Marshburn Alyssa Martineau Cristina Martinez Si McAninch Terry McFatter

Kenneth Lehman William J. Penney

Scot R. Salvador Eric W. Schreck

Ocean Bank

ServisFirst Bank

United Southern Bank Gregory L. Nelson Wauchula State Bank J.W. Crews, Jr. Donna McKown Gary “Rob” Roberts Winter Park National Bank Dell W. Avery James L. Bolen Sidney Cash Michael C. Crisante, Jr. David R. Dotherow

Thomas Bo Carter

The Bank of Tampa Drew Aldridge Tammy Amburgey

Ed Armstrong Sam Astin, III Antonio Azorin Suzy Bateman Doug Bishop Bob Blanchard Bryan Boudreaux Matthew Boyd Dave Brown Rachael Brown John Bui Mitch Burley Melissa Burman Maureen Busch Matthew Buzza Lisa Carlton Greg Celestan Ken Cherven Aric Chevtaikin A.G. Divers Brett Divers Tim Donaldson Luis Eguia Michael Eubanks Pat Fain Preston Farrior Jim Ferman John Fillingim Angela Gardner Scott Gault Ann Giles Kevin Gilligan Cathy Collins Chuck Colwill Debbie Cooper Jennifer Denney

Chris McGee Susan Miller Judy Mitchell Blaine Morrison Sebastian Mrowczynski Trey Mueller Charlie Murphy Corey Neil

James W. Ferrell Teague Gilliland Jeffrey C. Jenkins Stan T. Pietkiewicz

Client-driven solutions for community banks. We are seasoned community bankers, helping banks more efficiently manage risk and internal work processes for successful long-term strategic growth. We tailor our solutions to your unique business needs with a hands-on approach so you can focus more internal resources on revenue generation and enhancing shareholder value in an increasingly complex and competitive industry. • Credit administration + analyst support • Proactive compliance solutions • Turnkey operational + management support

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BANCSERV ENDORSED PARTNER: SELECTSOURCE

LEVERAGING THE BEST: MANAGING EMPLOYEE BENEFITS THE EASY WAY

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BY CAROLEE RICHENDOLLAR, MA, CEBS, VICE PRESIDENT/OPERATIONS, SELECTSOURCE

H uman Resources — most people think of this term in the old and perhaps antiquated definition of the “Personnel Department.” The Personnel Department has only been around since the early 20th Century. Back when it was originally instituted, the department was primarily focused on safety and compliance, wage management, record keeping and handling employee grievances. Often considered staffing focused, personnel departments were seldom considered to be impactful on the company operations as a whole. Today’s Human Resources Management (HRM) has evolved to encompass much more than that. Many HR managers have specialized degrees and certifications qualifying them for this unique position. For some companies, HR departments may even encompass multiple subgroups focused on specific functions of the field such as employer policies and compliance, employee relations, total rewards, etc. Top Priorities HRM plays a vital role in the growth and stability of companies. Employers must adapt to staffing needs and economic cycles. When companies are in a cycle of growth, HRM helps find ways to either adapt the current employee population by aiding with training employees or creating and filling new positions. When companies are in downward cycles, they help management review efficiencies and expenses related to employees so C-suite members can make responsible decisions that will help the company continue to thrive during challenging times. However, the impact of HR is much more embedded than simply solving staffing needs. During the past few years, employers have been dealt new challenges that have included managing employees through a worldwide pandemic, new government regulations for health and safety, as well as employee benefits laws, just to name a few. HRs have been the quarterback for many companies as they have had to

address these new and ever-changing situations, all while maintaining their day-to-day functions. On top of all that, employees have come to demand more from their employers as well. Today’s employees expect their employers to supply benefits and services that make them feel valued and respected. Gone are the days of 30-year pension plans that compel employees to remain loyal and make a career at a single company. Now employers need to encourage employee retention by offering benefits that extend beyond 401(k)s and vacation pay. Younger employees are looking for comprehensive benefits that include paid family leave, pet care coverage, flexible work hours and locations, recognition programs, financial health, and general well-being programs on top of competitive compensation. Making it Work Putting everything together in an employee benefit package that is coherent and effective is the cherry on top of every total rewards offering. Being able to do so is a big feather in the HR hat. Human Capital Management (HCM) and payroll technology companies supply priceless resources to help companies manage their employee benefit programs. Consultants help with benefit purchases for healthcare and well-being programs. Carriers provide valuable resources HR can use to communicate to employees about company initiatives that hopefully help employees maintain healthier lifestyles. However, everything comes at a price. Employers either pay for outsourced services to find and implement these programs, or the HR pays in time spent researching, evaluating, and comparing services to decide which is best for their own company’s needs. There is never a one size fits all when it comes to putting together a comprehensive benefits package for employees, because every industry is different and employees are living different lives. Although many HRs are deeply invested in an education focused on dealing with the variety of these

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

responsibilities, smaller companies may not have the luxury of having a designated Human Resources Specialist, much less an HR Director or department. Smaller companies may rely on outsourcing to ensure that they are maintaining the level of human resources management that is required to keep them compliant and hopefully competitive. However, outsourced services can be costly and may not provide services best for a specific employer, as it usually lumps everyone into the same benefits, payroll, rules, etc. Companies must take into consideration the exclusive nature of their industry, employees and specific needs to ensure they are getting the best bang for their buck. Solution Oriented Members of the Florida Bankers Association are one such specialized industry as an advocate to help members meet some of their Total Reward goals. FBHC is uniquely qualified to serve Florida’s Community Bank needs. Today’s benefit world continues to grow in cost, compliance and regulatory requirements. Working with local coalitions and major corporations, employers can prepare themselves for their future benefit needs. The Florida Bankers Health Consortium (FBHC) works with the most knowledgeable consultants and coalitions to do the work that it takes to ensure that the employers’ and employees’ best interests are being served. With

healthcare education, well-being initiatives and strong negotiation, the FBHC is a formidable ally. Garnering the strength of Florida community banks and their employees, the FBHC stands with organizations like the Florida Alliance for Healthcare Value and major U.S. corporations to fight for employers and their employees to ensure cost effective, quality benefits. By partnering with reputable vendors and trusted technology, FBHC provides a single location for employee benefit enrollment and competitive benefit packages for your employees. We help you manage your employee benefits efficiently and easily. Founded in 1962 as the Florida Bankers Insurance Trust (FBIT), our organization began as a not-for-profit serving the Florida Bankers Association (FBA). Today the FBHC offers a broad range of benefits and HR services to the Florida banking industry. You can rest assured that our team is fully committed to delivering the highest quality service to our clients (employers and employees), brokers, agents, and partners. We value and provide integrity, honesty, transparency, excellence, and mutual respect— because you, your Board Members, and your employees deserve nothing less. Carolee Richendollar is vice president/operations for SelectSource. She can be reached at 407-515-2452 or crichendollar@selectsourceone.com.

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WWW.FLORIDABANKERS.COM JUNE 2023 — 17

TRUST BANKING

BY STACY B. RUBEL, THE VIRGIL LAW FIRM, AND RICHARD DENAPOLI, CORAL GABLES TRUST COMPANY, BOTH OF CORAL GABLES, FLA. NAVIGATING MULTIPLE FIDUCIARIES: FLORIDA UNIFORM DIRECTED TRUST ACT AND CO-TRUSTEE CONSIDERATIONS

parts of the Trust Code, as needed to coordinate with the new Part XIV. The Act applies only to decisions or actions occurring on or after July 1, 2021, even if the trust was created before that date. For trusts where the principal place of administration is changed to Florida on or after July 1, 2021, the Act applies only to decisions or actions taken after the move. This article features some of the most significant revisions to the Trust Code pursuant to the Legislation and the Act. Many of the provisions in the Act can be overridden by the trust instrument itself, so it is important to review the terms of any directed trust. There are also certain powers that are not considered powers of direction for purposes of the Act unless the terms of the trust expressly provide otherwise. Examples of powers that are not powers of direction are a power of appointment and a power to appoint or remove a trustee. Definitions Historically, many trusts used the term “trust protector” when referring to a third person’s ability to make decisions on behalf of a trust. The Legislation adds multiple definitions including a trust director, which is defined as “a person who has a power of direction under the trust terms to the extent exercisable while that person is not a trustee.” A directed trustee is a trustee subject to the direction of a trust director and a directed trust is any trust which includes a power of direction. The Legislation also adds definitions for power of direction and terms

This article was originally published in the Winter 2021 issue of ActionLine, a Florida Bar Real Property and Trust Law Section publication. I t is common for settlors to name more than one trustee in a trust instrument, which may include multiple children of the settlor, individual and corporate trustees, or a mix of family and non family members. Reasons for naming multiple trustees can range from not hurting anyone’s feelings (i.e., naming all children together) to ensuring compliance with the settlor’s intent (i.e., neutral corporate trustee) to checks and balances (i.e., prevent misuse by a single trustee). However, naming multiple trustees can create a number of issues as well, especially when decisions are deadlocked, the trustees do not get along, or they refuse to communicate with each other. Sometimes in lieu of naming multiple trustees with the same authority, a settlor will provide certain trustees or non-trustee(s) the authority in the trust to make certain decisions relating to the trust administration. Historically, there has been very little statutory authority regarding trusts that grant a person other than a trustee a power over some aspect of the trust’s administration. This changed when on June 29, 2021, Gov. DeSantis signed into law Senate Bill 1070 (the “Legislation”) which, among other things, creates the Florida Uniform Directed Trust Act (the “Act”). This Act, which took effect on July 1, 2021, highlights the requirements and regulations for trust directors, including clarifying the fiduciary nature of the role, the application to co-trustees, and the duties and liabilities of those making decisions and complying with decisions. It creates a new section of the Florida Trust Code, Part XIV, titled Directed Trusts. However, it also includes revisions to other

of a trust. Powers

A trust director has the authority granted under the terms of the trust, as well any further power “appropriate to the exercise or nonexercise of a power” unless the trust indicates otherwise. This

18 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Co-Trustees When a trust names multiple trustees, the terms of the trust dictate the role of each trustee. When the trust is silent on any unanimity required for decisions, co-trustees may act by majority decision. Additionally, if there is a trustee vacancy, the remaining trustees or majority of the remaining co-trustees may act for the trust. A co-trustee may not delegate to another trustee the performance of a function the settlor reasonably expected the co-trustees to perform jointly. However, the settlor does not reasonably expect joint performance if the trust provides one or more co-trustees, to the exclusion of other trustees, the power to direct or prevent specified actions of the

includes the ability of the trust director to hire an attorney or others to assist in the performance of their duties, and to direct payment of fees and costs from the assets of the trust. If there are multiple trust directors with the same powers, they must act by a majority. Duties and Liabilities A trust director generally has the same fiduciary duty and liability as a trustee or co-trustee in a like position or under similar circumstances. The trust can modify duties and liabilities to the same extent that a trust can modify the duties or liabilities of a trustee, and the trust can also impose an additional duty or liability.

trustees. In this scenario, the excluded trustees generally have the same duty and liability as a directed trustee. Similar to Florida Statutes prior to the Act, the trustee(s) with the power to direct are liable to the beneficiaries for exercise of the power as if the excluded trustee(s) were not in office. The trustee(s) with power also have the exclusive obligation to account to and defend any action brought by the beneficiaries relating to the exercise. What about the liability of a co-trustee when decisions must be

What liability, if any, do employees of a trustee have? In Beaubien v. Cambridge Consolidated, LTD., 652 So. 2d 936 (Fla. 5th DCA 1995), the court held that an individual acting on behalf of a corporate trustee may be personally liable for their actions, even if acting as an agent for the corporation. As a result, and after review of the law by the Real Property, Probate and Trust Law Section of the Florida Bar, the Legislation also specifies that any claim barred against a trustee or trust director due to a statute of limitation

"A KEY QUESTION IS WHETHER AND WHEN A DECISION-MAKER, WHETHER A TRUSTEE OR NON-TRUSTEE, HAS A FIDUCIARY DUTY TO THE BENEFICIARIES. THE ANSWER IS CLARIFIED BY THE ACT."

made together? In this scenario, each co-trustee must exercise reasonable care to prevent a co-trustee from committing a breach of trust or compel a co-trustee to redress a breach of trust. Also, if a dissenting trustee joins at the direction of the majority, they will not be liable, as long as they notify their co-trustees of their dissent at or before the time of the action. Uncertainties What if a trustee or a beneficiary are uncertain whether a trust director has, or will accept the role? A written demand may be made on the designated trust director by a trustee, beneficiary, or even the settlor, to accept or confirm prior acceptance of the trust directorship in writing. Within 60 days after receipt of the demand, the designated trust director must either accept, indicate prior acceptance, or decline, in writing, and deliver the writing to all trustees, qualified beneficiaries and the settlor, if living. Trust Banking, Continued on page 20

is also barred against the directors, officers, and employees acting for the trustee or trust director. A directed trustee must take reasonable care to comply with a direction, and is not liable for such reasonable action. However, a directed trustee may not comply to the extent that by complying, the trustee would engage in willful misconduct. Note that willful misconduct is not a defined term in the Florida Trust Code, though it was already the standard applicable to an excluded trustee’s liability under the Trust Code prior to the enactment of the Act. Additionally, before complying with a direction, a directed trustee must determine whether the exercise is within the scope of the power of direction. However, an exercise is not outside the scope of a power merely because it constitutes or may constitute a breach of trust. Also, consistent with trust director statutes, a settlor may impose additional duties and liabilities in the trust document.

WWW.FLORIDABANKERS.COM JUNE 2023 — 19