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Finance in Florida
Florida-based banks are ripe for mergers
The number of Florida-based banks is down by 60% since 2007.
Leading Role
FBA’s new chairman cheers tax changes but fears cyberthreats.
Emory Mayfield is the Tallahassee market president for Hancock Whitney Bank and the new chairman of the Florida Bankers Association. He spoke recently with FLORIDA TREND about the current status of Florida banks and his goals as FBA chairman.
What’s driving higher bank profits in Florida:
“The 2017 Tax Reform Act that cut corporate taxes from 35% to 21% is certainly a big factor. The businesses we bank are also experiencing lower taxes, and this has increased their confidence to invest. We’re also seeing consumer confidence and spending increase. Moreover, the credit quality of Florida banks is strong. Across the state, non-performing loans represent just 0.54% of total bank assets as of March 31. At the peak of the Great Recession that number was eight to 10 times higher.”
Competition with credit unions:
“Until this playing field with credit unions is leveled, banks will always be playing with one arm tied behind our backs. While we advocated for the credit union income tax exemption to be eliminated in the Tax Reform Act, it wasn’t. So our work continues. I would just add that a hardworking family of four is paying more income tax than any one of these ‘non-profit’ multi-billiondollar credit unions.”
The decline of community banks in Florida:
“It’s one of the biggest issues the FBA faces right now. A decade ago, Florida had 308 community banks. Today, that number has fallen (to 125), while only two new banks have been chartered in the state since 2009. Community banks are the lifeblood of the state’s smaller communities and provide more than 70% of agricultural loans and 50% of all small-business loans.”
Cybersecurity challenges:
“If you ask what keeps us up at night, a large majority of bankers would say cybersecurity. We are, however, investing a great deal of time and money to protect our customers. I would also add that the FBA strongly believes it is time for Congress to update the Bank Secrecy Act and the Anti Money Laundering Act. BSA and AML reform are very big issues, particularly with South Florida banks. We don’t want corrupt money coming into our banks. Those laws were written back in the 1970s, and updating them is the Florida Bankers Association’s biggest priority for the upcoming year.”
— Carlton Proctor
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