Florida Banking October 2023

First page Table of contents 1 Next page Last page

Animated publication

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION WWW.FLORIDABANKERS.COM SEPTEMBER 2020 Evermore Bank Answering the Community's Call WWW.FLORIDABANKERS.COM OCTOBER 2023

In difficult and unpredictable economic times, with non-performing assets likely to spike, lenders and investors need an experienced team with diverse skills to optimize practical results.

Stephenie Anthony

Frank Lafalce

▶ Veteran Statewide Bankruptcy Lawyer ▶ Former Chair of the Tampa Bay Bankruptcy Bar Association ▶ Loan Enforcement Litigator and Zealous Advocate

▶ Veteran Transactional Attorney ▶ Former Bank President and General Counsel ▶ Work-out Draftsman and Prudent Counselor

100 S. Ashley Drive, Suite 1600, Tampa, Fl 33602 | 813-273-5616 | AnthonyandPartners.com

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

THE MAGAZINE OF THE FLORIDA BANKERS ASSOCIATION

VOLUME 38

NUMBER 9

OCTOBER 2023

ON THE COVER 8 �� Evermore Bank: Answering the Community's Call CONTENTS 4 �� Chair’s Message 6 �� Straight Talk from the President’s Desk 12 �� Government Relations: A Silver Anniversary: Twenty-Five Years with FBA in the Books 14 �� Florida BankPac Update 16 �� Bancserv Endorsed Partner: Wire Transfer Fraud Loss Prevention: The importance of written agreements and following funds transfer procedures 20 �� Trust Banking: Who’s the Boss? Navigating the Trustee Guardian Relationship 23 �� Florida Bankers Educational Foundation: Go Back to School With FBA’s Help – Apply For an FBEF Scholarship! 24 �� Florida Bar Grievance Mediation and Fee Arbitration Program is Seeking Volunteers 25 �� Personal Transactions 27 �� Kudos 31 �� Upcoming Events 31 �� Advertising Directory 31 �� Did You Know?

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

Jose Cueto Chair

Derek Jones Chair-Elect

Bill Penney Immediate Past Chair

Fab Brumley Second Immediate Past Chair

On the Cover: The Evermore Bank leadership, from left: Kris Barnhart, Steven Sanzone, and Filip Feller.

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

Photos by Steven Martine Photography

CHAIR’S MESSAGE

GEARING UP FOR THE 2024 LEGISLATIVE SESSION

BY JOSE CUETO, FBA CHAIR

T he 2024 Legislative Session convenes on January 9. Our industry faced a lot of heat during the 2023 Session, so we need to be ready. While the FBA’s experienced lobbyists will be advocating for our industry at the Capitol, every banker has a role to play in advancing beneficial legislation. The FBA’s legislative priorities are largely determined by its member banks and trust companies, so now is the time to get involved. As we prepare for Session, here are ways you can take action to support your association’s advocacy efforts: Speak up about your legislative concerns and priorities. The FBA’s Government Relations team works alongside its Government Relations Council (GRC) to set a legislative agenda. The GRC is made up of banks of different sizes from around Florida. Heading into Session, this council discusses legislative and regulatory issues with the FBA board and makes recommendations on how to proceed. The FBA wants to know about the challenges our banks and trust companies are facing. You can help form the FBA’s agenda by speaking up about relevant issues, whether through the GRC or by reaching out to a member of the Government Relations team directly. In turn, the FBA advocates for the industry and educates policymakers about how potential legislation impacts banks and the broader community. Attend events like Capitol Day & Night to network with legislators and decision-makers. Not every banker can join us on fly-ins to Washington, D.C., which is why the FBA hosts a variety of advocacy and leadership events across the state to give bankers access to legislators and policymakers. Last month, the FBA hosted leadership

events in Tampa and Miami for FDIC Vice Chair Travis Hill and FDIC Chair Martin Gruenberg. It is so important that we stay in communication with our banking regulators. Our recent DC trip in partnership with the California Bankers Association gave us the opportunity to meet with legislators on both sides of the political aisle and discuss issues like interchange, cannabis banking, credit union taxation, and ESG. This month, the FBA hosts a dinner for Congressman Byron Donalds. Attending events like this is a great way to stay informed about what’s happening on the legislative front.

Mark your calendars for the upcoming Capitol Day & Night on January 24. This annual event gives Florida bankers the chance to participate in Session by spending the day at the Capitol discussing banking and economic issues with legislators. The day ends with a networking dinner at FBA’s headquarters.

“WE HAVE AN OPPORTUNITY TO SUPPORT THE BANKING INDUSTRY DURING SESSION.”

Reach out to your elected officials. When legislative or regulatory issues arise that require our immediate attention, a Call-to-Action may be issued via email asking you to reach out to your elected officials. Hearing directly from their constituents can help policymakers make informed decisions about the issues at hand. The voices of many are louder than the voice of one. We are impossible to ignore when our phone calls are received in significant numbers from across the state. We have an opportunity to support the banking industry during Session. Take action by communicating the challenges faced by your bank or local community, by attending leadership events, and by answering FBA’s Calls-to-Action. I hope to see you in the new year at Capitol Day & Night. You can register online at www. floridabankers.com.

4 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

BANCSERV ENDORSED PARTNERS

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

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

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

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

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

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

Bank Captive Insurance | Delaware & Nevada Investment Subsidiaries | Solar Tax Credits David Guerino, (802) 233-2624 dguerino@key-state.com

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

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

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

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

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

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

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

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

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

Discounted supplies including PPE, cleaning, furniture, print & promo solutions. Kimberly Gilbert, (855) 337-6811 Ext. 12815 kimberly.gilbert@officedepot.com

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

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

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

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

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

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

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

STRAIGHT TALK FROM THE PRESIDENT’S DESK

NOW DO YOU CARE ABOUT CUBA AND CHINA?

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

M any of our presidents took China lightly, thinking we could somehow change the country by allowing American manufacturing factories to set up shop there, only to have those products shipped back to our country as China-made products and exports. Many thought, what harm is there in doing that? Many of our universities tried

Cuba, on the other hand, is a country most Americans don’t know or remember only as a brief mention in high school history class. They may remember the 13 days of October when President Kennedy battled the old Soviet Union over the missile crisis when Soviet rockets were being placed in Cuba, a country only 90 miles from our American shores. The

to out-do each other by recruiting Chinese students, hoping perhaps those students would return to China with democratic ideals and principles and change their country’s political system. We now know that the Chinese economy is rivaling the American economy and may overtake us in the future. We also now know that China is massively investing in its military and building a global Naval force. We have realized that Chinese students educated in the West under free and democratic principles are not going to change the one-party Socialist/

Cuban government is a depressed, failed, and totalitarian Socialist/ Communist regime that is ruthless with its people. The regime keeps an iron fist over its citizens and there is no freedom whatsoever. How bad is the failed state of Cuba? This bad: Its citizens build makeshift rafts and, under the cover of night, jump into the dangerous Gulf of Mexico in hopes of reaching freedom in the United States. How bad must things be in Cuba for its citizens to escape while risking their lives in those shark infested waters of the Caribbean for days?

“MOST OF CHINA’S MONEY COMES FROM YOU AND ME, AS WE CONTINUE TO BUILD THE $500 BILLION ANNUAL TRADE IMBALANCE BETWEEN OUR COUNTRIES.”

Communist system in their country. While the Chinese government allows students to return with their Western education, to buy a home, a car, perhaps even travel overseas, it muzzles any political discontent or disobedience. And in a police state like China, the hurdles are too high for any Chinese citizen to overcome, and few will risk their economic well being.

Can you imagine yourself, your spouse, and your child floating in those waters for days on a makeshift raft? That is how desperate the Cubans are to leave that Socialist tyranny. Now Cuba and China have come together in a marriage between two communist regimes. China is building a major military base in Cuba with the

6 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

latest listening technologies to monitor our country. Earlier this year, the Biden Administration dealt with the embarrassing surveillance balloons flying over our country before it finally acted and shot down those devices. The Cuba regime needs the money, now more than ever, as it once needed Soviet aid to try to stay in power. With Soviet/Russian aid long gone, China is the new Communist partner en vogue. We Americans need to pay extra careful attention to China, because the big difference between the old Soviet Union and China is money — and China has lots of it. Most of China’s money comes from you and me, as we continue to build the $500 billion annual trade imbalance between our countries. What does that mean? It means that our country buys $500 billion more annually in products and services than China buys from us. You can see where my op-ed is going. China is not a friend of the United States. China is our rival and enemy. So, what do we do about it? This

Administration and all future American presidents need to start taking China seriously, realize that we are not going to change China, and that we need to stop appeasing it. To American corporations manufacturing in China, the time has come to re-evaluate your operations there and to start thinking of alternative manufacturing sites. Since most of the products being manufactured in China are being consumed here at home, why not bring those manufacturing facilities back here to the United States? Or, at the very least, to our hemisphere — in order to create jobs in countries that have been longtime American allies. We need to realize one simple fact: the more we buy from China, the richer they get. And the richer China gets, the more dangerous it becomes as it continues building up its military force around the world, including a mere 90 miles from our shores. The time has come to care about China and Cuba.

JANUARY 24, 2024

during the 2024 Legislative Session and spend a day at the Capitol discussing important banking and economic issues with Florida legislators. The day ends with Capitol Night—a dinner held at FBA headquarters.

SPONSORED BY:

FOR EVENT DETAILS PLEASE VISIT WWW.FLORIDABANKERS.COM CDCN

WWW.FLORIDABANKERS.COM OCTOBER 2023 — 7

The Evermore Bank leadership, from left: Kris Barnhart, Steven Sanzone, Filip Feller.

8 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Answering the Community's Call Evermore Bank:

F ort-Lauderdale-based de novo Evermore Bank was founded in December 2022 at the urging of its local community and future customers. Steven Sanzone, CEO of Evermore Bank, decided to answer the call for a “high tech, high touch” community bank that delivered personal service, modern solutions, and the best coffee. “Our customers really wanted us to start a community bank in Broward. We listened to our customers, and here we are,” Sanzone said. Sanzone is an experienced banker with previous de novo experience, having co-founded Stonegate Bank back in 2004 alongside colleague Kris Barnhart. He turned to Barnhart and his former Marquis Bank

working with the regulators and that it “felt like they were part of the team.” As a de novo , Evermore Bank has the unique opportunity to innovate and implement new solutions out of the gate. “With a new bank, you develop the procedures. You write the policies. Over the last year, we’ve diligently put new models into place,” Feller said. “Our staff identifies new issues every day; if they find a better way to do something, they’re empowered to go ahead and do it.” Every employee is involved in this process of building the bank from the ground up; management gives staff the autonomy to problem-solve, promoting an “ownership” mentality.

colleague Filip Feller to help him start Evermore Bank at the height of the pandemic. Barnhart is president and CLO, and Feller is CFO. “After almost two years of strategic thinking, hard work, and long hours from Fil, Kris and I, Evermore Bank was founded in December of 2022,” Sanzone said.“There’s never a right time to open a bank, but we just happened to be dealing with rising rates and bank failures, which was tough… all within the first seven months.” The executive team and directors raised over $26 million primarily from the local community. Today,

“We get to start from scratch. What’s great about being a small bank is that when a customer wants something, we’re nimble enough to say ‘yeah, we can find that for you,’” Barnhart said. “Fil does an incredible job finding vendors that can provide us with terrific tech to serve our customers. And our customers get to open up with that tech — we don’t have to introduce it to them years into the relationship.” Implementing new technologies, like the instant payment service FedNow, is part of the bank’s business plan. “All banks must have

“OUR CUSTOMERS REALLY WANTED US TO START A COMMUNITY BANK IN BROWARD. WE LISTENED TO OUR CUSTOMERS, AND HERE WE ARE.”

- STEVEN SANZONE

cutting-edge technology to survive,” Sanzone said. “But we don’t lose sight of the human touch that our customers value.” Sanzone, Barnhart and Feller pick up the phone for customers, listing their personal cell numbers on their business cards. The team prioritizes transparency, sending frequent emails to shareholders and customers to keep them informed. “We want to be accessible to our customers,” Barnhart said. “I want customers to call and talk to me, or talk to my lenders, so we can understand what they need and then service those needs.” One of the bank’s directors, Max Sebastiani of Dynasty Realty, enjoys giving tours to show off the bank. Sebastiani owns local shopping centers and brings Evermore Bank, Continued on page 10

nearly 10 months later, the bank has more than $80 million in assets and two locations serving Broward, Miami-Dade, and Palm Beach counties. Evermore Bank opened its Wellington branch in January, just 30 days after its founding. “It became apparent that there was a need for a local bank catering to the business community. Frankly, the South Florida market is very strong,” Barnhart said. “We don’t have to go out and cold call customers. Those folks who wanted us to open a bank followed up by banking with us. The deposits and loans we’ve generated in such a short period of time speak to our customers’ loyalty.” The team was grateful for the support from its regulators, who were always helpful and willing to answer questions. Sanzone said it was enjoyable

WWW.FLORIDABANKERS.COM OCTOBER 2023 — 9

“Our culture is simple; treat everyone with respect, take care of the customer, and think like an owner. We want our people to be here for the long term,” Sanzone said. “Everyone who works here has been handpicked.” Barnhart added,

Evermore Bank, Continued from page 9

his tenants to the main office to introduce them to bank staff. The team at Evermore Bank is proud to nurture these relationships. Looking ahead, Sanzone and his team have a vision

for the bank’s growth and community involvement; once the bank is established, the team hopes to open a branch in Dade County and also launch a local financial literacy initiative. “One hundred percent of our staff lives and works in the markets we serve. Our directors are locals, too. They go out to dinner here, they raise their families here,” Fil said. When hiring, Sanzone and his team

“If we treat our employees well, they’re going to treat our customers well, which in turn will benefit our shareholders. That’s the ultimate goal. We want our employees to be happy, we want our customers to be happy, and we want our shareholders to be happy.” The bank’s promise to its employees, customers, and shareholders is in its name; the adverb “evermore” means

“WE GET TO START FROM SCRATCH. WHAT’S GREAT ABOUT BEING A SMALL BANK IS THAT WHEN A CUSTOMER WANTS SOMETHING, WE’RE NIMBLE ENOUGH TO SAY ‘YEAH, WE CAN FIND THAT FOR YOU.’”

- KRIS BARNHART

“forever; always,” and the bank’s motto reads, “At Evermore Bank, we are here for you, forever and always.”

prioritize culture first. As a result, Evermore Bank has attracted experienced talent to join its ranks — people who jumped at the opportunity to work for the startup.

10 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

STEVEN SANZONE Steven Sanzone is CEO of Evermore Bank. Sanzone has been in the commercial lending industry for over 40 years. In 2004, he was one of the founders of Stonegate Bank located in Fort Lauderdale, Fla. As Executive Vice President and Senior Lender, Sanzone was instrumental in the initial capital raise of $45 million and Stonegate Bank’s growth to $3 billion in assets. Subsequent to the sale of Stonegate Bank in 2017, Sanzone opened the Broward County operation of Marquis Bank, which assisted in the sale of Marquis Bank to Professional Bank. Sanzone grew up in Broward County and has a proven history of success in the Tri-County area of South Florida.

FILIP FELLER Filip Feller has over 35 years of banking experience and is Evermore Bank’s chief financial officer. Feller was previously with Marquis Bank as the EVP, CFO, and was responsible for overseeing the accounting, retail deposit and loan operations, HR, internet banking solutions, facilities, consumer compliance, BSA/AML, and IT for asset growth projections of more than $1 billion within three years. Feller successfully managed a $10 million subordinated debt raise, to support growth from $300 million to over $700 million in assets at the time of sale in June of 2020. Feller served as CFO at several other community banks throughout Florida and Maryland where he led accounting, finance, ALCO, IT and operating divisions. Feller successfully led several successful acquisitions of banks from the FDIC and several debt and equity capital raises. Feller is a native of South Florida, is a graduate of the University of Miami, and lives in Davie with his wife.

KRIS BARNHART Kris Barnhart has more than 25 years of banking experience concentrated in commercial lending and management. Most recently, Barnhart was EVP of a community bank in Jupiter, Fla., focused on commercial lending and deposit generation. On average, Barnhart and his team produce $51 million in new commercial loans and $15 million annually. Barnhart was one of the founding officers of de novo Stonegate Bank of Broward County in 2004. He assisted with raising the initial $40 million in capital, creating the credit policy, organizational structure and new business development. In 2006, Barnhart opened Stonegate’s Jupiter, Fla., branch, and grew assets in the county from zero to $350 million in 12 years, which included three full-service branches, attaining profitability in year two of operations, and increasing profits each year (more than $4 million by 2018). In 1993, Barnhart graduated from Canisius College, Buffalo, N.Y.

WWW.FLORIDABANKERS.COM OCTOBER 2023 — 11

GOVERNMENT RELATIONS

A SILVER ANNIVERSARY: TWENTY-FIVE YEARS WITH FBA IN THE BOOKS BY ANTHONY DIMARCO, FBA EXECUTIVE VICE PRESIDENT AND DIRECTOR OF GOVERNMENT AFFAIRS

O n October 26, 1998, I began my career with the FBA as the Vice President of Government Affairs. I have thoroughly enjoyed my twenty-five years representing the FBA in Tallahassee and Washington, D.C. I was a bright-eyed 30-something with a wife, Mary Rose, two young boys, Frank and James, and two dogs when I started. Today, my wife and I also have a daughter, Mary Joy, and will soon have a daughter in-law, Lauren. We still have two dogs, albeit not the same two from before.

My parents were also happy that I was working at the FBA. My mother and father met at the First National Bank of Tampa, proofing checks at night. They married, had me, and my mother left the bank to raise me and my two younger brothers. Dad went on to have his entire career at the bank; he become an EVP in charge of operations, secretary to the holding company, and was involved with many more aspects of the bank. I often tell the story about a lobbyist friend who was upset with me because we held up his amendment on

a bill until we could figure out if we liked it or not. He turned to me in front of the House Chamber and called me “a little SOB!” I thanked him, because that stands for “son of a banker.” He laughed and I remember that we worked it out. Throughout my 25 years at the FBA, I have watched changes in the banking industry. My first Session, the big issue was banks selling insurance under state law and Gramm Leach-Bliley was passed

Alex Sanchez hired me all those years ago and I thank him. We have had a great working and personal relationship over the years. More on him at a later date. My career with the FBA began right after the FBA/ CBF merger took effect. These were interesting times, as the merger was not even a month old. The “Co-Bros,” Rudy Schupp and Kim Davis, led the FBA with Alex as CEO. Charlie Brinkley and Steve Price were the immediate

“I HAVE THOROUGHLY ENJOYED MY TWENTY-FIVE YEARS REPRESENTING THE FBA IN TALLAHASSEE AND WASHINGTON, D.C.”

Past Chairs of the two respective associations, and Wally Dodson and Miriam Lopez were in line to take the helm as the two incoming Chairs. These leaders were instrumental in making the FBA what it is today. My first year here was a whole new experience after leaving the Legislature and the former Department of Banking & Finance. I had to learn a whole new way of thinking and accomplishing success with more responsibility leading the banking industry in the Capitol.

which permitted this. Some banks jumped into the insurance market and then decided against it. Another big issue that first Session was ATM fees. We moved on to privacy opt-in/opt-out battles, high costs home loans, and Florida Cabinet Reorganization. Then the state suffered under the Great Recession with bank closures and foreclosures. Now, both political parties want to decide whom we can bank. One side wants us to debank certain groups, while the other side wants to require us to bank everyone who walks in the door.

12 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Two issues have been forefront through most of my career: credit unions/public deposits and property insurance. I am sure there will be another public deposit bill in 2024. Property insurance bills appear often in regular and special sessions, when we hear that this bill will finally fix the insurance problem. I have had the opportunity to work with four Governors, 14 Speakers of the House, and 14 Senate Presidents, and countless men and women of both chambers in both political parties and their staffs. Many of these elected officials have gone on to Congress and other offices. I will not begin to name them at the risk of omitting some of them. However, one of my proudest moments was working with my eldest son Frank, an aide to Rep. Cyndi Stevenson, on our bill dealing with LIBOR. I have been blessed with great teammates in the government relations department. They have all gone on to have successful careers and lives after leaving the FBA. I have also been blessed to work with a great group of inhouse and hired bank lobbyists. We have all

worked well together to make sure that our industry is well represented in the halls of the Capitol. The FBA staff is second to none. It has been a pleasure to work with each and every one during my tenure here. Like a family, we sometimes bicker, but there is no group I would rather be in the trenches with while fighting for our industry. As we know, more change is coming. It always does. Alex will retire soon, and we will have a new CEO, Kathy Kraninger, with whom I am excited to begin a new FBA chapter. My family has also changed. I have lost my parents, grandparents, and a brother. My children have all graduated from college (and maybe off the family payroll?). My eldest son is engaged to be married and we are excited to welcome her into the family. And through it all, my wife has been there to raise the kids and put up with me over these 25 years. I could not have done it without her. It has been a great 25 years! Here’s to many more years at the FBA!

WWW.FLORIDABANKERS.COM OCTOBER 2023 — 13

Florida BankPac Update PAC contributions for 2023: $251,655.00 Contributions received between 1/1/2023 and 9/14/2023

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

Central Bank

James H. Parr Steven M. Roy Danna A. Schmid Tricia M. Snodgrass Scott J. Sullivan Bradley Weber Martina Weiss Laura Williamson

Miller Couse Earle E. Edwards, III Andrew J. Higginbotham Karl E. Larsen Thomas C. Perry M. Carey Soud Deborah Van Sickle Max Jaime Weisinger Ralph Betancourt Robert Godwin Edward E. Haddock, Jr. Bruce W. May

Banks with 100 percent board member contributions:

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

Central Bank

Community Bank of the South

Jayesh D. Patel Jayesh K. Patel Jiten Patel Mahendra Patel Nilesh Patel Rajeshkumar C. Patel Shilen Patel Vijay M. Patel Anand Sabapathy John Thompson 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

Edison National Bank

First Bank, Clewiston

First Colony Bank

Community Bank Fred Leopold Justin Woodard Community Bank of the South Harold T. Bistline Stephen D. Crisafulli

Winter Park National Bank

BankPac contributions:

5iron

Dominga Sanchez Thomas J. Sheehan First National Bank Coastal Comm. Nicole Jones First National Bank of Mount Dora Bob White First National Bank of Pasco Steven D. Hickman First National Bank of South Miami Veronica Flores First National Bankers Bank Chris Alexander Linda Cook Lourdes Mendes First State Bank of the Florida Keys Karen M. Sharp Flagship Bank

Jeremy Hopwood

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

ABA

John Jordan Amerant Bank, N.A. Alberto Capriles

Crescent Mortgage Cammie Aucoin Crews Banking Corporation JW Crews, IV Bradley L. Wilson D.A. Davidson & Co. Bob Pabst Edison National Bank John P. Ammons Elizabeth Aurensan Greg Blurton Karen M. Brazelton Lenor Cross

Juan Esterripa Carlos Iafigliola Howard Levine Marshall Martin Jerry Plush

Mariola Sanchez Sharymar Yepez Banc Card of America Andrew Lane Bank of America Fabiola Brumley Bank of Belle Glade Stephen Prielozny BankFlorida Kenneth R. Lehman

Douglas W. McPherson William G. Middleton Bonnie Parker

Mark E. Schreiber Joseph T. Stangry

Lori J. Wilson Patricia Wilson Citizens First Bank Paul B. Abell Jay Bartholomew Lindsey Blaise

Christina DePari David M. DuVall Lisa Hobson June Howard David Lowden Susan Nasworthy Kim Nyberg Matthew Overmyer Patrick Philbin Geoffrey Roepstorff Robbie Roepstorff Susan Schulte Richard Shera First Bank, Clewiston

Kenneth Bailey David Brandon Ronald Hockman Mark Klein Ken Marks Robert McGivney

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

James “Bud” Stalnaker, Jr. Capital City Bank Group, Inc. Thomas A. Barron William F. Butler Stanley W. Connally, Jr. Bonnie J. Davenport Connie Davis Kenneth D. Pratt John G. Sample, Jr. William G. Smith, Jr. John J. Wahlen Capital City Trust Company William L. Moor, Jr.

James Nelson Joseph Oliveri Nick Patel Brent Sembler Robert Shaw Kelly Spica Christopher Sprowls Paul Wikle Florida Bankers Association Anthony DiMarco Lesley Jordan

Bryan D. Beer Mary E. Carroll Andrew Couse

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

Debbie Cooper Jennifer Denney 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 Merlisia Gittens Donovan Glaister 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 Cathy Harris Gary Harrod Kristen Herrick-Feazell Chris McGee Susan Miller Judy Mitchell Blaine Morrison Sebastian Mrowczynski Trey Mueller Charlie Murphy Corey Neil David Newberry

Barbi Miller Dianne Pagel Kenneth Pratt Alex Sanchez

Ocean Bank PAAST, P.L.

Greg Stahl John Stump Simon Sumner Daryl Tatum Frank Territo, II James Tollerton Darrell Turner John Unger Billie Valloreo Debbie Viveiros Donna Walsh Chad Wammock Pam Warnock Ashley Watters Bill West Craig West Paul Whiting Blake Williams

Alexander Sueiro Prime Meridian Bank Sammie Dixon Profit Resources, Inc. Dave Koto Qualtik Jen Adcock Retriever Payment Systems Frank Krieger Saltmarsh, Cleaveland & Gund Paul Allen Kristen Stogniew SBS Cybersecurity Freddie Martin Seacoast Bank

Funding Circle Chris Connor Grove Bank & Trust Jose Cueto Gulf Coast Business Bank Gulfside Bank Tim Clarke Jennifer Compton P. Compton Cramer, Jr. N. Rogan Donelly Teri A. Hansen Frank J. Lacivita Thomas A. Martin, Jr. Dennis B. Murphy Sam D. Norton Michael R. Pender, Jr. Charles W. Rush Drayton A. Saunders Jeffrey Saunders Heartland National Bank Andrew S. Bible James C. Clinard Jerry T. Whidden International Finance Bank Sonia Canessa-Gonzalez Intracoastal Bank Cynthia Fite Lively

David Zillig Ryan Zsiga

Miriam Lopez Mary Usategui SebastianStrong Oscar Ortiz ServisFirst Bank

TIB, N.A.

Cheryl Westermann

TrustCo Bank

Kevin M. Curley Michael Hall Robert M. Leonard Robert J. McCormick Michael M. Ozimek, III Scot R. Salvador Eric W. Schreck United Data Technologies Luis Aguiar Kayler Hevia United Southern Bank Connie Nelson Gregory L. Nelson Waterfall Bank G.A. “Andy” Williams Wauchula State Bank J.W. Crews, Jr. Donna McKown Gary “Rob” Roberts Wells Fargo Bank, N.A. Derek Jones Winter Park National Bank Dell W. Avery James L. Bolen Sidney Cash Michael C. Crisante, Jr. David R. Dotherow

Thomas Bo Carter

SHAZAM!

Alex Jernigan SouthState Bank

Michael L. Sleaford Mark Tucker Strategic Resource Management Brent Lapp Sunstate Bank Yvonne Debesa The Bank of Tampa Drew Aldridge Tammy Amburgey

Adam Berry Gerry Hollis Locality Bank

Keith Costello Kenneth R. Lehman Mainstreet Comm. Bank of Florida Roger B. Baumgartner T.L. Bushey W. Ben Flowers, Jr.

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

David Hyzer Anne Kelley Stephanie Koshiol Wendy Libby Randall J. Marshall

Thomas Oliver Dotti Overton Edna Owens

Hal M. Rogers Paul Rountree Marine Bank & Trust Company

Sarah Peet Zane Petty Kris Phillips Lee Pierson Stacey Pittman Mark Poppell Susanne Powers Carly Ross Jim Scott Reade Sevigny Anne Shaughnessy Joel Smith

Kenneth Lehman William J. Penney Mauldin & Jenkins Alison Wester New Edge Associates Yesenia Moreno NFP Executive Benefits Joe Schaefer

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

Cathy Collins Chuck Colwill

WWW.FLORIDABANKERS.COM OCTOBER 2023 — 15

BANCSERV ENDORSED PARTNER: ABA INSURANCE SERVICES

WIRE TRANSFER FRAUD LOSS PREVENTION THE IMPORTANCE OF WRITTEN AGREEMENTS AND FOLLOWING FUNDS TRANSFER PROCEDURES

BY PATRICIA WILLIAMS, CPCU, EAST COAST & COMPLEX BANK BUSINESS DEVELOPMENT MANAGER, ABA INSURANCE SERVICES

Wire fraud losses are growing at astounding rates. What can your bank do to prevent wire transfer fraud? It’s imperative that your staff understand the importance of your bank’s written agreements and following instructions and procedures in place. Taking shortcuts may cause claims. At face value, a written agreement is simply a customer relationship management document that outlines how a bank will honor and execute customer requests to transfer funds electronically. Below the surface, however, a written agreement is a critical component of a bank’s risk management program with important operational and insurance coverage ramifications. In this article, we offer a basic construct of a written agreement, discuss their importance in today’s banking and insurance environment, and conclude with a few best practices to follow. What is a ‘written agreement’ and why is it necessary? A written agreement is a document that authorizes a bank to rely on email, voice, online, or fax instructions from a customer to transfer funds. It should be in place for both retail and commercial customers and include the customer’s explicit authorization for the bank to transfer funds. The agreement should include the names of the people who are authorized to initiate transfers or validate transfer instructions. Be sure to include contact phone numbers and titles, if applicable, of everyone who is granted authority. The written agreement needs to outline a commercially reasonable procedure that will be utilized by the bank to authenticate all requests. A phone call to a predetermined number is still one of the best ways to prevent fraud. When a callback is not practical, use an out-of-band verification procedure, such as a

numerical code sent via text message to the customer’s phone number of record. In all cases, make sure the verification method is clearly spelled out in the written agreement. Finally, it is suggested that the written agreement explicitly states that the bank will not act upon an instruction if: • The bank is unable to obtain proper and satisfactory verification of the instructions; or • There is inconsistency between such instructions and information previously supplied to the bank by the customer; or • Instructions are not submitted in accordance with security procedures established by the bank; or • Instructions are suspected by the bank to not be genuine. While there is no standard written agreement template, they are generally similar from bank to bank, with minor modifications made for unique circumstances. Regardless of your bank’s unique situation, it is recommended you review your written agreement with legal counsel to ensure it is commercially reasonable and meets your needs. Most insurers require a written agreement between a bank and its customer when evaluating the applicability of insurance coverage in the event of a claim. As a condition precedent to coverage, you must have a written agreement in place with your customer in order for insurance to respond to a loss, regardless of how the instructions are received. The policy language governing this requirement is generally found in the funds transfer coverage part or in the definition of customer of your financial institution bond. Transfer requests and written agreements are commonly confused. A transfer request is nothing more than the initiation point for the movement of funds. How do written agreements tie to insurance coverage?

16 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING

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 institutions, including trust companies and banks in formation. 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. Any discussion relating to policy language and/or coverage requirements is non-exhaustive and provided for informational purposes only. 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. 082023.ST2FBA © 2023 ABA Insurance Services Inc., dba Cabins Insurance Services in CA (CA license #0G63200), ABA Insurance Services of Kentucky Inc. in KY, and ABA Insurance Agency Inc. in MI, 3401 Tuttle Rd., Suite 300, Shaker Heights, OH 44122.

It is not the same as a written agreement and will not satisfy insurance policy requirements. Best practices to follow: 1. Have a written agreement in place before the first request to transfer funds. As a standard course of action, written agreements should be executed at the time an account is opened or at some point before a transfer request is made, not when a customer is on the phone seeking to move money. 2. Train your employees to trust their gut and stick to the written agreement instructions. Fraudsters can be very convincing, and they are often great at manipulating situations in their favor. Your employees are your best defense against fraud. Give them the authority to trust their gut and stick to the instructions in the written agreement, even in the face of considerable push-back from a customer. 3. Scrutinize certain types of requests closely. Transfer requests tied to real estate transactions, HELOC accounts, and international destinations should be evaluated extremely closely as they are more prone to fraud. You should also designate all transfer requests made by elderly customers as high risk. Unfortunately, elderly people are more prone to fall victim to fraud, and instances of financial abuse against senior citizens are well-documented.

Always Your Partner. Never Your Competition.

FNBB is your trusted correspondent banking partner. With FNBB, you gain access to a financially stable provider and the assurance that we will never be your competition.

Charlie Brinkley Regional Market President cbrinkley@bankers-bank.com

Chris Alexander Correspondent Lending Officer calexander@bankers-bank.com

Lourdes Mendes Relationship Manager lmendes@bankers-bank.com

Rob Trott Relationship Manager rtrott@bankers-bank.com

800.275.4222

Service Beyond Comparison To learn more, scan the QR code and visit our website.

FNBB Capital Markets, LLC is an affiliated FINRA broker dealer.

MEMBER FDIC

FNBB Services Corp. is not a CPA firm and does not engage in the practice of public accounting. Insurance products are not insured by any Federal government agency. Not a deposit. Not FDIC insured and not guaranteed by this bank.

WWW.FLORIDABANKERS.COM OCTOBER 2023 — 17