Florida Banking October 2021

A Domestic Bank with an International Bend Terrabank

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM OCTOBER 2021

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Editorial & Executive Offices 1001 Thomasville Road, Suite 201 Tallahassee, FL 32303 850-224-2265 www.floridabankers.com Advertising & Production Offices 945 Winnetka Ave. N., Ste. 145 Golden Valley, MN 55427 952-835-2275 For advertising information, contact Valerie Fischer, sales account executive 913-261-7055 Valerie@NFRcom.com For reprints or single issues, contact 800-336-1120 Statements of fact and opinion are made on the responsibility of the authors alone and do not imply an opinion or endorsement on the part of the officers or members of FBA. Florida Banking is published 11 times annually with a combined issue in December/January. Subscription price is $50 per year for nonmembers. Postmaster, send address changes to Florida Bankers Association, P.O. Box 1360, Tallahassee, FL 32302. Copyright 2021 Alex Sanchez President and Chief Executive Officer Fax 952-835-2295 www.BankBeat.biz

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 36

NUMBER 9

OCTOBER 2021

ON THE COVER 8 - - Terrabank: A Domestic Bank with an International Bend CONTENTS 4 - - - - - - - - -Chair’s Message 6 - - - - - - Straight Talk from the President's Desk 12 - - - - Government Relations: OUR Florida Program Helps Renters and Landlords Recover From the Pandemic 14 - - - - - - - -EIDL: A Program Beset By Fraud 16 - -BancServ Endorsed Partner: Ransomware Attacks Are Becoming More Prolific 18 - - - - - - FBEF: Faces of the Foundation 20 - - FBA's 2021 Trust & Wealth Management Conference 24 - - - - - Personal Transactions 26 - - - - - - - - - - - - - Kudos 29 - - - - - - FBA Staff Spotlight 30 - - - - - - - Upcoming Events 31 - - - - - - - - - Did You Know 31 - - - - - Advertising Directory

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

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Fab Brumley Chair

Bill Penney Chair-Elect

Greg Nelson Immediate Past Chair

Lloyd DeVaux Second Immediate Past Chair

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On the Cover: Francisco Martinez Henares (Left), Chair, and Antonio Uribe, President and CEO. Photos by Daniese Betito, Images for Business, Orlando, Fla.

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

CHAIR’S MESSAGE

HOW BANCSERV BENEFITS OUR MEMBER BANKS

BY FAB BRUMLEY, FBA CHAIR

W hen it comes to selecting vendors to provide the necessary products and services for our banks, we have to do our due diligence. Researching a vendor takes time and effort, resources which are often in short supply. This is why I’d like to remind you that the FBA’s subsidiary BancServ, Inc. (BSI) exists to make the vendor-selection process easier for us bankers. Through BancServ, the FBA endorses companies offering industry-leading products, services and solutions in order to help member banks save time,

The BSI board of directors is made up of 12 C-level community bank executives who are heavily involved in the vendor selection or operations of their bank. Members of the board serve three, two-year terms. First Bank’s Carey Soud is BancServ’s current chair, having been appointed in June to follow Greg Littleton of Citizens Bank & Trust. Every 18-24 months, BSI hosts a retreat for board members and Endorsed Partners to share information about what Florida banks are looking for from vendor relationships and to learn more about the

effort and money. While many of you may be familiar with our “Endorsed Partners,” there are many bankers who have yet to learn about BancServ and its efforts on our behalf.

partners’ latest offerings. This education and networking event is held during one of the quarterly BSI board meetings. Each partner gets one-on-one access to the board, and there’s also a roundtable discussion to explore opportunities to expand the partners’ programs in the state. Most recently, the retreat took place in beautiful Key West and was co-hosted by BancServ board member Karen Sharp, president and CEO at First State Bank of the Florida Keys. Not only do banks benefit from the exclusive pricing

“ THROUGH BANCSERV, THE FBA ENDORSES COMPANIES OFFERING INDUSTRY-LEADING PRODUCTS, SERVICES AND SOLUTIONS IN ORDER TO HELP MEMBER BANKS SAVE

In exchange for their elevated status and visibility to member banks, Endorsed Partners offer discounts and other exclusive offers to bankers. BancServ currently has 16 Endorsed Partners who offer products and services across a variety of industries, including compliance, check and marketing services, investment products and services, office supplies and printing, bank security equipment and EFT solutions (just to name a few). BancServ will not endorse more than one company per product. Only the highest caliber companies with impeccable references and a solid financial background are selected to become BancServ Endorsed Partners. These companies must first undergo a stringent application process, vetted by the BancServ board of directors. Their due diligence helps eliminate hours of research for your bank.

TIME, EFFORT AND MONEY. ”

offered by Endorsed Partners, but this is a revenue generating program for the FBA. Every time a bank uses an Endorsed Partner, the FBA receives a percentage and those dollars flow back into BancServ and the FBA’s efforts to serve member banks and advocate for our industry. For more information about these programs, please call please call Pamela Ricco, President of BancServ, at 850-701-3514.

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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

profitable conditions, solving problems and meeting needs with significant value for all financial institutions. For more information

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

STRAIGHT TALK FROM THE PRESIDENT’S DESK

MY TIME IN IOWA, PART 1: APPLYING FOR LAW SCHOOL

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

T his is the first in a three-part series about the time I spent attending the University of Iowa, College of Law in Iowa City, Iowa. My Iowa experience first started at Torrejon Air Base, located about 40 miles northeast of Madrid. I was there for a three-year assignment at our base we shared with the Spaniards. I had served for almost three years in our military. I worked eight hours a day and attended university classes at night. My typical day was getting to my assigned station to work as a financial disbursement officer at about

I also was thinking about studying law, something that interested me since I was a child. Growing up I had two favorite television shows: “Mission Impossible” and “Perry Mason.” When I enlisted in the United States Air Force, my first job request was military intelligence. I wanted to be an agent on that IMF force. All my military test scores qualified me for that position. By the time I went to boot camp, my top-secret clearance needed for military intelligence had not been completed due to having family in a communist country, Cuba.

8 a.m., working until 5 p.m. At 5 p.m., I went to the chow hall for a quick bite with my school books in hand, then ran to the junior high school on base used by our troops to attend night college courses. I then attended class from 5:30 to 9:30 p.m. each night. Afterwards, I did some extra work at the office and then homework until midnight in the barracks. The next morning, I’d go for a five-mile run before starting the day all over again. Looking back, I did all of this without Cuban espresso coffee. “How did I do this?” , I wonder sometimes.

My second job interest was the law, from the “Perry Mason” show. Mr. Mason always got the bad guy all in one TV hour. He always made the right person break down on the witness stand. He was cool, calm and collected. I wanted to be like Perry Mason. Additionally, I had a real-life Perry Mason experience when I was 12 years old. My Dad had limited English skills in his blue-collar job at the factory in New York City. He asked me to go to work with him one day to translate in a meeting with a union official. I am not sure what problem my

“ I LOVED SERVING OUR COUNTRY IN THE MILITARY, BUT I ALSO WAS THINKING ABOUT STUDYING LAW, SOMETHING THAT INTERESTED ME SINCE I WAS A CHILD. ”

I attended college courses all three years at Torrejon Air Base — four hours a night, four nights a week, 47 weeks a year. I also received college credit hours at my previous military assignment, March Air Force Base in California. So the year was about 1980 and I was getting closer to two major checkpoints in my life: completing my military tour of duty of almost five years and graduating with my undergraduate degree. I started to think about what was next on the agenda of my life. I loved serving our country in the military, but

Dad was having with the union, but I was a pudgy little kid and stood between my Dad and the union representative during their meeting. As the union guy spoke, I then translated into Spanish for my Dad. My Dad would then respond, and I told the union rep what he said in English. I went back and forth for about 30 minutes. I don’t know or remember what the issue was, but I remember walking away with my Pop thinking he was getting the short end of the stick. I also remember thinking that, like Perry Mason, I wish I could have pulled out my business

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

who. I went to visit the ranking officer who was a full bird Colonel. He was a great mentor and gave me excellent advice. First, he wanted to know about my passion for law. Once I showed him that I had it, he spoke to me about applying to law school, taking the LSAT and the practice of it. He was from Iowa. He sold me on the University of Iowa, the Hawkeye state. I applied to the school by completing long applications on my office typewriter during many long and late nights. I also had to write an essay on those typewriters with no erasers. But I did. I mailed the application from my APO overseas address. Now came the waiting period. All the soldiers had a mailbox in the base post office. Many days during my lunch break, I would walk to check my mail. No word from Iowa. Days and weeks passed and, of course, I was hoping and praying for that answer to arrive. One afternoon while walking in the warmth of that late spring day in my military fatigues, I opened my mailbox and saw a letter from the University of Iowa. I took a long deep breath, opened it and read that I was accepted. I must have walked on the clouds back to my office. I was so excited and happy. I told my supervisor, squadron commander and my JAG Colonel mentor the happy news. I knew then I would be exiting the military through an honorable discharge and starting a new life at Iowa Law. To be continued in Part II.

card and told that union rep, “I am a lawyer; here is my card; I’ll see you in court.” So I was stationed overseas, and thought more and more about studying law. But who was I going to ask about a law career while stationed in a U.S. military base overseas? The JAG officer upstairs is

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Antonio Uribe (left), President and CEO; and Francisco Martinez Henares, Chair of Terrabank

A Domestic Bank with an International Bend Terrabank:

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

L ocated in the heart of Coral Gables, Miami, Terrabank has grown alongside the vibrant South Floridian city. This local community bank was established in 1985. Today, it is owned by a diverse group of individual investors from both Latin America and Miami, which is reflective of the diversity of South Florida. Terrabank is an OCC bank with three locations, 98 employees, and is affiliated with a banking group that has presence in nine countries. “We’re a domestic bank with an international bend,” said President and CEO Antonio Uribe. Uribe is Hispanic-American, but he was born in Montreal, Canada. His family lived in Colombia until Uribe was 11 years old, when they moved to the U.S. Uribe was drawn to the banking industry for the opportunity to travel and see the world. Prior to joining Terrabank, he worked for Citibank for nearly 20 years, serving as country head and general manager in Zambia, Guatemala, Paraguay and Colombia. Chair Francisco Martinez Henares, who is of Nicaraguan and Cuban descent, has a similar story;

Terrabank has grown to $614 million in total assets. As real estate prices go up in Miami, so too has the bank seen an increase in commercial real estate lending. Terrabank has a wealth of experience in real estate financing, offering an array of loan programs for commercial real estate and residential properties. As real estate is one of the main drivers of South Florida’s economy, the bank is proud of the role it plays in impacting the economy of the local community. While Uribe says it’s the “sun and the sea” that bring residents to Miami, he sees that the city has become a hub for the tech and finance industries, attracting young professionals from the Northeast. It is a sign of things to come, and Uribe believes that digital transformation is critical to retaining customers and outpacing the competition. Digital Transformation Terrabank, for example, has implemented digital solutions to make processes like opening credit lines more efficient. The bank has also adapted popular digital payments app Zelle. In fact, Terrabank has

“ [OUR INTERNATIONAL BACKGROUNDS] HAVE MADE IT MUCH EASIER TO UNDERSTAND AND WORK IN THE VARIOUS MARKETS FROM WHICH WE HAVE CLIENTS... IT HAS ALSO MADE IT EASIER TO PROMOTE OUR SERVICES IN THE INTERNATIONAL ARENA. ” - ANTONIO URIBE

he was born in New Orleans but lived in Nicaragua until he was nine, at which point his family moved back to the U.S. Today, he is executive vice president and chief financial officer of the $18 billion banking group Promerica Financial Corporation. Previously he worked for Bank of America as vice president in corporate banking based in Miami, with a focus on Latin America. “Miami is quite an international city. I think it’s difficult to be a bank in South Florida, Miami in particular, and not have international clients… particularly from Latin America and the Caribbean,” said Martinez Henares. “Our international client base has evolved and grown as Miami has also grown internationally.” Several members of Terrabank’s management team and board of directors have international backgrounds. “[Our international backgrounds] have made it much easier to understand and work in the various markets from which we have clients,” said Uribe. “It has also made it easier to promote our services in the international arena.”

partnered with three fintech companies to automate processes and better meet clients’ needs. Terrabank was introduced to Cobiscorp, a multinational banking software company looking to enter the U.S. market. The bank wanted to develop a small business line of credit product, and found its partnership with Cobiscorp mutually beneficial as the software company used Terrabank as its beta project in the United States. More recently, the bank has worked with FIS to develop several RPA (robotic process automation) projects which, according to Uribe, have been “instrumental” in its digital transformation projects. The team at Terrabank believes that the concept of digital transformation goes beyond client services. The company has gone paperless, turning to digital solutions to streamline internal processes. Looking back, Uribe reflects that the greatest challenge for the company was not the transition itself but rather learning to do things differently and letting go of the “security blanket” that paper copy represented. Terrabank: A Domestic Bank, Continued on page 10

WWW.FLORIDABANKERS.COM OCTOBER 2021 — 9

It’s due to the bank’s focus on digital transformation in the last five years that Terrabank was well positioned to not only survive but thrive during the pandemic. In terms of deposit growth, Terrabank grew 27 percent with the support of its customers. “Our client base demonstrated confidence in the bank,” Martinez Henares said. “Our deposits grew significantly and we had a great opportunity to assist small-to-medium sized businesses during a particularly challenging time.” Personal Service and Relationships Terrabank’s leadership understands that banking is a highly relational business. Both Uribe and Martinez Henares agree that the bank’s personal service is a draw for customers. On the commercial side of the business, especially, transactions are tailored to the client. Terrabank treats its customers as individuals, not as a number. Decision makers are local, experts in understanding the economic conditions of South Florida and Latin America. The team seeks to understand their clients’ businesses and ask insightful questions to customize financial solutions. “The process requires both relationship, a thorough understanding of the customer and his needs and customization,” Martinez Henares said. These ideals are represented in the company’s core values: • A client-first culture • A passion for excellence

• A guarantee of integrity and personal accountability • A professional staff empowered to create and innovate • A culture of teamwork and respect Uribe and Martinez Henares credit their employees and their board for executing the bank’s vision and serving clients both digitally and personally each day. “People are fundamental,” said Uribe. “The quality of our employees and the loyalty and continuity of our management team are key factors to our success.” Uribe and Martinez Henares have been with Terrabank for more than 15 years. In 2000, the investor group asked Martinez Henares to join the bank as chair of the board; Uribe joined the bank in 2006. Rounding out the leadership team are Executive Vice Presidents Joaquin Arguello, the domestic and international retail banking head, Maria Elena Riera, CFO, and Lucas Azar, chief lending officer. Terrabank’s local board, too, is heavily involved and has experienced little turnover in the past 15 years of Uribe’s and Martinez’s leadership. “We have a very strong management team that has been able to drive the bank and execute our strategy… but certainly the significant support, knowledge and insight provided by our board has been another reason for our success,” said Martinez Henares.

The Terrabank leadership, from left, are: Joaquin Arguello, Maria Elena Riera, Francisco Martinez Henares, Antonio Uribe, and Lucas Azar.

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

FRANCISCO MARTINEZ HENARES, CHAIRMAN Francisco Martinez Henares is Executive Vice President and Chief Financial Officer of Promerica Financial Corporation, a banking group with US $18 billion in total assets with presence throughout Latin America and the Caribbean (Ecuador, Nicaragua, Guatemala, Honduras, Costa Rica, El Salvador, Panama, Dominican Republic and Cayman Islands). Additionally, Martinez is Chairman of the Board of Produbanco (Ecuador), Banco Promerica Dominican Republic and Terrabank, N.A. (since 2000). He is also on the Advisory Board of The Netherlands Development Finance Company (FMO) as well as on the Global Financial Institutions Advisory Board of Bank of America, N.A.

Martinez Henares has 27 years of experience in the financial services industry. Prior to joining Promerica, he worked for Banque Sudameris Miami Agency as well as Bank of America in its Latin America Corporate Banking Division. He holds a Bachelor’s Degree in Business Administration with a major in Finance from Florida International University, and an MBA from the University of Miami with a concentration in Finance and International Business.

ANTONIO URIBE , PRESIDENT AND CEO

Antonio Uribe is President and CEO of Terrabank, a local community bank established in 1985. Mr. Uribe began his career in banking with Citibank in New York. He quickly ascended and became head of Citibank’s corporate and investment business as Country Head and General Manager in Zambia, Guatemala, and Paraguay. He also served as CEO of Citibank Colombia. After a successful 20-year career with Citibank, he moved to Miami where he became Senior Vice President of Regions Bank’s corporate division; he later became President of Bancafe International. In 2006, Mr. Uribe became President and CEO of Terrabank. With extensive experience in complex business turnarounds, he assembled a new management team and has successfully refocused the Bank’s business strategy, developing and deploying technology-driven solutions for clients in today’s increasingly demanding markets. Mr. Uribe holds a bachelor’s degree from the University of Pennsylvania where he majored in international relations and political science.

WWW.FLORIDABANKERS.COM OCTOBER 2021 — 11

GOVERNMENT RELATIONS

OUR FLORIDA PROGRAM HELPS RENTERS AND LANDLORDS RECOVER FROM THE PANDEMIC

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

T he pandemic continues in America. Thanks to Gov. DeSantis’ leadership, Florida’s economic conditions have vastly improved; however, some are still struggling from the economic damage wrought by Covid-19. To those who have not fully recovered, Florida has initiated the OUR Florida program, using federal funds to help renters and landlords. This information may be helpful to your customers as we continue to recover from the economic damages of the pandemic and cannot make ends meet, either through CARES Act funds or from nonprofit organizations. OUR Florida

housing instability, or living in unsafe or unhealthy conditions. To qualify the renter must: • Go to www.OURFlorida.com to fill out application, call 833-493-0594, or go to an OUR Florida location; • Gather and submit the required documents such as, driver’s license, lease agreements, paystubs, tax filings, unemployment benefits, past due rent notices; and, • Must disclose if they received assistance from any source to pay these bills.

Even if the renter has received CARES Act funds or other assistance, they may still be eligible for the program, for any rent or utility bills left unpaid or were not covered by CARES. Additionally, a resident in subsidized housing is eligible for the tenant-owned portion of rents, if the household will not be reimbursed from other sources. Since the application may be submitted by either the landlord or the tenant along with the required documents, you may wish to let any of

“ THE STATE HAS STARTED OUR FLORIDA, USING FEDERAL FUNDS, TO HELP FLORIDIANS WITH RENTAL OR UTILITIES ASSISTANCE TO REBUILD AND RECOVER FROM THE PANDEMIC. ”

The state has started OUR Florida, using federal funds, to help Floridians with rental or utilities assistance to rebuild and recover from the pandemic. Below is a short summary and eligibility for the program. Please go to www.OURFlorida. com for more details and FAQs that are of assistance. For Renters

The goal of the program is to provide qualified renters with relief from unpaid rent and utility bills. This will help Floridians stay in their rented homes while seeking economic self-sufficiency. Renters are eligible if they: • Rent a residential dwelling in Florida; • Earn a household income at or below 80% of the area’s median income (AMI); • Have qualified for unemployment or another program due to Covid; and, • Are at risk of losing their home, experiencing

your customers who have rental properties know about this program. If the landlord submits the application, the tenant must sign the application and the identity of both the tenant and the landlord must be disclosed. Remember the purpose of the program is to make up lost rental payments for the renter; this way both parties can be made more whole. Hopefully, this will help alleviate any need for rental properties to go into foreclosure.

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

© iStockphoto/adl21

For Landlords Additionally, landlords may apply on their own for lost rental payments. They must provide proper documentation and be qualified, much like renters. Please have them visit www.OURFlorida.com, call the number listed above, or visit a local office for more information. We hope that you find this information helpful and that these programs will help those in need. We will send you more information on these and other rent assistance programs as we learn of them. As always, please do not hesitate to contact us if you have any questions about this short summary.

Once a renter is qualified into the program, OUR Florida will send payments directly to the business, landlord or utility on behalf of the renter. Qualified renters may receive up to 15 months of rent payments, including 12 months past-due rent and utilities, and three months of forward-looking payments. Utilities payments are for those not included in the tenant’s rental payments. Telephone, cable, and internet are not considered utilities. The maximum payment for rent and utilities is $2,000 per month with the program capped at $15,000 for a qualified household.

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EIDL: A PROGRAM BESET BY FRAUD

BY CONGRESSMAN BLAINE LUETKEMEYER

I n one sense, it feels like a decade ago that Congress started working on the CARES Act. At the same time, it feels like only a few weeks that we were discussing the formation of the PPP programs and the SBA’s new, outsized role in the government’s response. I’ve written about that role several times in this magazine and many of us have spoken in person about it a few times over the last 18 months. As you know, the two most notable lending programs the CARES Act gave life to are PPP and the Economic Injury Disaster Loan (EIDL) Program. You all have probably heard all you want about PPP. I

potentially fraudulent EIDL activity. Through August 19, 2021, the SBA disbursed approximately $280 billion in COVID EIDL loans and grants. This equates to a fraud rate of nearly 30 percent within the program which is absolutely unacceptable. The Government Accountability Office also issues regular reports highlighting the need for increased protections in the EIDL program. Those recommendations have largely gone ignored by the Administration. As a result, last month SBA Administrator Guzman sent me a letter citing that 1,127,327 EIDL applications now have an SBA

have no doubt that you’re still working through the forgiveness process on some of your loans. I am here to help with that process anyway I can. As much of a hassle certain aspects of PPP have been, ultimately it is an extremely successful program, and that is due to private sector involvement. The EIDL Program on the other hand, which is a direct lending program with the SBA, is drowning in fraud and paralyzed by ineptitude. In my positions on the

Agency Hold for identity theft reasons. Over 1 million applications are fraudulent. It is a breathtaking bout of illicit behavior. As the top Republican on the House Small Business Committee, I sent Administrator Guzman a letter and demanded that the defrauding of American taxpayers be immediately stopped. The American People cannot be paying for nefarious loan activity because of inadequate oversight by the agency handling this program.

“ AN ADMINISTRATION DESIGNED TO ASSIST SMALL BUSINESSES CANNOT BE EFFECTIVE WHEN IT’S EASIER FOR FRAUDSTERS TO ACCESS ITS SERVICES THAN HONEST WORKING PEOPLE. IT’S LONG PAST TIME WE FIX THAT. ”

House Financial Services Committee and Small Business Committee, I deal with these programs every day, and I am always demanding data on the programs’ effectiveness. In May, the SBA Inspector General found that 846,111 EIDL applications have been flagged for identity theft. That report promoted numerous recommendations from the IG in order to shore up the program. The IG found that from October 28, 2020, there was $78.1 billion in

The Administrator must get serious about protecting taxpayer dollars and owes it to the public to implement the GAO and IG protection recommendation immediately. Along with being an example of the massive amount of COVID money that has been abused over the last year and a half, this perfectly depicts the government’s inability to manage direct lending programs.

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Throughout history government direct lending has failed. The way I see it, there are two reasons for that. First, government has neither the processes in place nor the expertise banks utilize every day. They will never acquire the skill set necessary to run a successful loan program. Second, it’s not their money that is being wasted. The SBA doesn’t feel the pressure of going out of business. Their bottom line isn’t harmed by losses. They just ask Congress for more of Americans’ money. Can you imagine if banks had this level of fraud in PPP? We’d have hearings everyday with members of Congress decrying the unspeakable injustices carried out by the private sector. And given what those numbers are, hearings would absolutely be necessary. Of course, banks have processes in place and the expertise to prevent fraud, which is the reason PPP

has seen such a small percentage of fraudulent loans. We have to get the government out of direct lending entirely, and I am working on that effort right now. I look forward to sharing those proposals with you along with other proposals to overhaul the SBA and modernize its programs. An Administration designed to assist small businesses cannot be effective when it’s easier for fraudsters to access its services than honest working people. It’s long past time we fix that. U.S. Congressman Blaine Luetkemeyer proudly represents Missouri’s 3rd Congressional District and has served in the U.S. House of Representatives since 2009. He is a member of the House Financial Services Committee and is the Ranking Member on the Subcommittee on Consumer Protection and Financial Institutions.

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BANCSERV ENDORSED PARTNER: ABA INSURANCE SERVICES

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RANSOMWARE ATTACKS ARE BECOMING MORE PROLIFIC

BY PATRICIA P. WILLIAMS, CPCU, COMPLEX BANK BUSINESS DEVELOPMENT MANAGER AT ABA INSURANCE SERVICES

W ell-publicized ransomware incidents have targeted entities across industries, from government organizations and school districts to privately held operations, hospital systems and financial institutions. While the threat of ransomware is nothing new, the alarming trends suggest that attacks are evolving to be more disruptive with payment demands more consequential than previously known. Ransomware is no longer simply a nuisance; attacks are rendering businesses

operating system, online banking platform, and telephones. The extortionists demanded a ransom in excess of $1,000,000. The increasing frequency of attacks has garnered the attention of the U.S. Treasury’s Office of Foreign Assets Control. An advisory issued in October 2020 provides some background on attacks, identifies several known malicious actors, and suggests a risk based compliance program to mitigate exposure. The advisory also warns victims can be fined if they pay

ransom to groups that are under economic sanctions. A similar advisory was issued by the Financial Crimes Enforcement Network. Big picture, experts suggest common-sense security measures are the best first step in protecting your institution, including: • Training employees to recognize suspicious emails and attachments. • Keeping antivirus and anti-malware software up to date. • Ongoing, regularly

inoperable, significantly eroding public confidence, and costing businesses millions to remediate. Ransomware attacks typically begin with a targeted email message containing malicious software. Once introduced, the malware spreads throughout the network, encrypting documents or files and rendering them inaccessible until a ransom is paid by the victim. In the past, these attacks normally targeted specific

“ RANSOMWARE IS NO LONGER SIMPLY A NUISANCE; ATTACKS ARE RENDERING BUSINESSES INOPERABLE, SIGNIFICANTLY ERODING PUBLIC CONFIDENCE, AND COSTING BUSINESSES MILLIONS TO REMEDIATE. ”

scheduled offsite (cloud-based) backups that are not connected to the networks being backed up. • Refining incident response and business continuity plans to reflect today’s threat environment. On a more basic level, remind employees and customers to be even more vigilant with the increase in fraudulent schemes related to the pandemic. The ideal environment has been created for fraudsters to take full advantage of the underlying stress and potential vulnerabilities with email communication

documents or files. Today, however, the attacks are creating havoc by infiltrating entire operating systems; deleting onsite backups; and exfiltrating sensitive data, with threat actors threatening to publish confidential information if their demands are not met. As these criminals become more emboldened, they are seeking larger ransom payments, now easily reaching seven figures. In one recent incident, a bank was shut down for several days after numerous systems in its environment were attacked, including its core

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

increasing exponentially. As phishing scams continue to be extremely prevalent and typically one of the most common initiation points for fraud, remind employees to: • Remain vigilant and view emails with a suspicious eye, especially those with certain keywords, such as “coronavirus” or “Covid 19” as fraudsters may use virus-related words to effectuate scams. The importance of training employees to identify phishing emails and social engineering tricks cannot be overstated. • Rotate passwords and not duplicate passwords for multiple sites or online sources. • Be mindful when using third-party sites or applications. • If working from home, change the default passwords on home networks or WiFi routers, and do not share or allow family members to access any computers or handheld devices used for business purposes. Continue to educate your customers about the prevalence of phishing and social engineering. Do not assume they understand the risks; often, attacks target individuals or small businesses who may be more prone to divulging sensitive information. There are emerging technology solutions available to help fortify your defenses against malware. A number of providers offer solutions that monitor entry points and network workflow to detect threats. The tools

institutions, including trust companies and banks in organization, up to $20 billion in assets. Our unique insurance program, co-endorsed by Florida Bankers Association’s BancServ and American Bankers Association, has been committed to serving and supporting financial institutions by providing quality insurance and excellent customer service for over 30 years. Excess insurance and surety bonds are also available. For more information on risk management, please visit abais.com/Insights or contact ABA Insurance Services’ Patricia Williams at 800-274-5222 or pwilliams@abais.com ________________________________________ The claims scenario in this material is provided to illustrate a possible exposure faced by you or your clients. The facts of any situation which may actually arise, and the terms, conditions, exclusions, and limitations in any policy in effect at that time, are unique. Thus, no representation is made that any specific insurance coverage applies to the claims scenario. This information provides guidance and is not intended as a legal interpretation of any federal, state or local laws, rules or regulations. ABA Insurance Services Inc. (“ABAIS”) does not warrant that all potential hazards or conditions have been evaluated or can be controlled. The liability of ABAIS and its affiliates is limited to the terms, limits and conditions of the insurance policies issued by ABAIS. © 2021 ABA Insurance Services Inc.

capture and analyze big data across many channels and use machine learning to continuously refine their algorithms to predict and prevent both novel and known variants of malware. The detection and response capabilities work in real time and are significantly more effective in thwarting threats from ransomware and other novel malware than off-the-shelf antivirus software. As the frequency and severity of ransomware attacks continue to increase, it is critical that institutions evaluate the security measures they have in place and implement/update security measures to keep a step ahead of potential threats. About ABA Insurance Services ABA Insurance Services, a member of Great American Insurance Group, is a long term, reliable and stable source of D&O, Bond, and Cyber Liability insurance for financial

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WWW.FLORIDABANKERS.COM OCTOBER 2021 — 17

FBEF: FACES OF THE FOUNDATION

JURIS MASTER DEGREE MAKES A BANKER MARKETABLE

BY DARIA IBACH, ASSISTANT VICE PRESIDENT, CREDIT ADMINISTRATION, COMMERCIAL CREDIT ANALYST II AT CAPITAL CITY BANK FLORIDA STATE UNIVERSITY – GRADUATED SUMMER 2020 WITH A JURIS MASTER IN FINANCIAL REGULATION AND COMPLIANCE

P eople have asked why I went back to school, particularly for a degree that does not appear to be within my area of expertise. However, compliance in banking touches every area and every department of the bank. It is not going away and it is not going to get easier. I have always been a big picture person or global thinker. I want to know why we do the things we do and ask a lot of questions. It is important to know the thought progression behind procedures, policies and decisions so I can ask better questions and make better decisions through logic and reasoning. Above the entrance to Dodd Hall on the campus of Florida State University are the anonymously penned words: “The half of knowledge is to know where to find knowledge.” This has taken on a different and new meaning as information available on the internet can be flawed or just plain incorrect. The Florida State University Juris Master Degree, with a focus on Financial Regulation and Compliance, taught me how to interpret regulations and understand why agencies promulgated certain rules. I now know where to find how and why certain laws exist, which has helped prompt me to have more relevant conversations about strategy and risk. I understand risk in a different way and I am able to respond more appropriately and effectively to examiner questions. Also, I assist the bank in developing improved processes, procedures and policies that comply not only with the letter of the law, but the spirit of the law. The Florida Bankers Educational Foundation helped me continue my lifelong journey of learning. Capital City Bank has a great tuition assistance program which paid for my tuition, but there are many other fees and expenses that are required to be paid when attending university. The scholarship from the Florida Bankers Educational Foundation went a long way toward paying these expenses and I am sincerely grateful to

the Foundation and to all those who have donated. These donations helped me become a banker who is able to help our industry operate more fairly and more ethically for the clients we help and the communities where we operate. A degree doesn’t necessarily say to an employer that I have all the skills necessary to do a certain job. What it does say is that not only do I have the ability to learn at a high level, but I have the drive and determination to keep focused and keep learning , no matter how difficult the task may seem. The added value for me is that it boosts my resume and makes me more valuable — more marketable. I believe that my Juris Master degree will help me be more competitive in the future when a desirable opportunity at my bank presents itself. I am ready for the next challenge. The FBA is very pleased to partner with Florida State University College of Law to offer FBA members an important degree program for our banking professionals. The Juris Master in Financial Regulation and Compliance is an online, 30-credit hour master’s in law that can be completed on a part time basis. When you enroll in this online program to obtain a JM degree in Financial Regulation and Compliance from Florida State University College of Law, you will enhance your own professional development, the reputation of your financial institution and that of the banking industry. The JM program provides bankers and regulators a unique opportunity to: obtain a graduate degree from a highly acclaimed institution with a particular focus on bank compliance issues and the law. For more information about the Juris Master Online Program go to law.fsu.edu/academics/academic-programs or contact Laura Sellatti, Juris Master Program Director, at (850) 644-6022 or lsellati@law.fsu.edu.

18 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

JURIS MASTER DEGREE PROVIDES DEEPER UNDERSTANDING OF RISK

BY SONYA KRISTIE, VICE PRESIDENT AND TRUST OFFICER AT CALDWELL TRUST COMPANY

FLORIDA STATE UNIVERSITY – GRADUATED SUMMER 2020 WITH A JURIS MASTER IN FINANCIAL REGULATION AND COMPLIANCE

T he Juris Master program was a most beneficial opportunity for me.The efforts and coordination of Florida State University and Florida Bankers Association working together to provide this program made it as accommodating as possible for working individuals to continue their education. The program did require a great deal of self-discipline, but FSU has been very accessible and supportive to all of my questions and concerns. The professors and their assistants were very accommodating and responsive and, even with all of the challenges of the pandemic, classes were not negatively affected in any way. The program did expand my knowledge in subjects above and beyond my expectations. As a manager, this program helped me to realize risks that I can solely mitigate. The law aspect articulated the liability factors associated with the risks. I am now able to provide more knowledge and experience to management as well as easing concerns of my clients and staff. The program has given me more confidence in my decisions, enabling me to influence better decisions by staff members and help others that work in different fields. Working for a private trust company does come with regulations and compliance factors to follow. The Juris Master program expanded my knowledge, not only of my company’s risks and rules, but other companies' as well. This has provided me with a better understanding of how other financial institutions operate differently and why, which has allowed me to work with these other financial institutions more easily. The program allowed me to understand some of the risk management programs, technology risks, and how to better protect my staff and clients. I now have a better understanding of how to work with regulators and help support my company in its growth. The Florida Bankers Educational Foundation provided me with another opportunity: the financial assistance that helped me pay for the Juris Master program. They were wonderful to work with in offering

scholarship assistance with my tuition payments. This helped alleviate some financial burden and stress of covering the expense of the program. It also helped me to focus on what was most important — my studies. I am grateful for the opportunity to take advantage of the Juris Master program. It was an amazing experience, allowing me to virtually connect with interesting and inspirational students and professors. I would highly recommend this program to anyone interested. Working to advance your career through education? The FBEF is here to help. FBEF funding applications are accepted throughout the year, with application deadlines of November 1st, February 1st, May 1st and August 1st. Applications and eligibility information can be found online at floridabankers.com/educational-foundation-fbef. html. Contact FBEF Director Letty Newton at (850) 701-3522 or lnewton@floridabankers.com for more information on how the FBEF can help you. The FBEF is a 501(c)(3) non-profit corporation registered with the Florida Department of Agriculture & Consumer Services, Registration #CH7621. Contributions to the FBEF are tax-deductible. Organized in 1956, the FBEF continues to help bankers throughout Florida. If you are interested in making a tax-deductible contribution to the FBEF, contact Letty Newton at 850-701-3522, lnewton@ floridabankers.com, or PO Box 1360, Tallahassee, FL 32302-1360. A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINEDFROMTHEDIVISIONOFCONSUMER SERVICES BY CALLING TOLL-FREE 800-435 7352 WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL OR RECOMMENDATION BY THE STATE. www. FloridaConsumerHelp.com

WWW.FLORIDABANKERS.COM OCTOBER 2021 — 19

FBA’S 2021 TRUST & WEALTH MANAGEMENT CONFERENCE RITZ CARLTON, FORT LAUDERDALE

PHOTOGRAPHS BY BROOKE HARRISON, PUBLICATIONS DIRECTOR, FBA T he FBA held its annual 62nd Trust & Wealth Management Conference at the Ritz Carlton in Fort Lauderdale on September 8-9. This annual conference is designed with the trust and wealth management professional firmly in mind. The timely curriculum addressed topics and issues currently challenging the industry, taught by attorneys well versed in the legal aspects, industry consultants, and senior trust and wealth management officers deep in the daily trenches. Division Chair Kelly Caldwell, chair and CEO of Caldwell Trust Company, provided legislative

and education updates and presented awards in recognition of service, involvement and accomplishments. Florida trust CEOs from around the state were invited to attend the inaugural FBA CEO Roundtable Discussion & Dinner to discuss issues impacting the trust and wealth management industry. FBA President and CEO Alex Sanchez participated and gave an exclusive Washington briefing. The dinner was sponsored by Kelly Caldwell and proved to be a productive, enlightening evening.

FBA Trust Executive Committee Chair Kelly Caldwell presents Tom Lytton, president of FineMark National Bank & Trust – Riverwalk, with the 2022 Trust School Honor Graduate award.

Kelly Caldwell (right) recognizes Managing Principal of Sabal Trust Company Lucas DeVicente for his leadership as 2021 Trust School Director.

FBA President & CEO Alex Sanchez speaks with trust bankers at the inaugural CEO Roundtable Discussion & Dinner.

FBA President & CEO Alex Sanchez gives an exclusive Washington briefing at the FBA CEO Roundtable Discussion & Dinner.

FBA President & CEO Alex Sanchez with Nelson Hinojosa.

FBA Trust Executive Committee Chair Kelly Caldwell at the CEO Roundtable Discussion & Dinner.

20 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING