Independent Banker - February 2020 - 53

50%, to more than $50 billion. " Despite that
growth, the banking industry has consolidated,
and the Orlando MSA has 20% fewer banking
institutions, 30% fewer community banks and
20% fewer overall branches, " he says.
While many large banks have grown through
acquisitions, Losch says most haven't retained
the resulting combined market share due
to disruptions caused by their mergers and
consolidations. " These mergers have left many
clients and bankers disillusioned, making them
open and receptive to making a move, " he says,
noting that community banks are in the perfect
position to pick up both clients and bankers
disgruntled by these changes.
" Formation of new banks has been slow over
the past 10 years, and combined with merger
consolidations, there are now fewer community
banks serving Orlando, " Losch explains. " The
result is that for the remaining community
banks, there is now an opportunity for us to not
only grow, but also increase our market share. "
An eye toward growth
The Orlando branch of $7 billion-asset Seacoast
Bank of Stuart, Fla., benefits from the metro's
regular influx of potential customers. With an
active hospitality and tourism industry, the
region is also home to numerous corporate
headquarters that banks like Seacoast have been
able to partner and grow with, according to
executive vice president Julie Kleffel.
Kleffel points to recent
infrastructure upgrades at
the Orlando International
Airport, major investments in
Lake Nona Research Park-
known as Medical City-and
an $800 million investment
in SunRail, central Florida's
commuter rail line, as a few
examples of the government
and business commitment
to moving the area forward.
" There are many diverse
industries and economies here
in Orlando, " Kleffel says. " Our
team has been able to double
and triple down on that to become one of our
bank's fastest-growing markets statewide. "
Even in this tight labor market, Seacoast
Bank has been able to find and recruit quality
employees to round out its team, although
Kleffel says the region's 3.2% unemployment
rate does make that difficult at times.
" We continue to invest and develop the talent
that we have, " she says, " while also seeking
opportunities to grow that talent strategically
and efficiently as our bank grows. "
Speaking of growth, $17 billion-asset
CenterState Bank of Winter Haven, Fla., has
been on the acquisition trail over the past few
years, acquiring several Orlando-area financial
institutions. CEO John Corbett says they
undertook this acquisition strategy to comply
with the Durbin Amendment included in the
Dodd-Frank Act.
With $7 billion in assets at one point, the
community bank knew that when it crossed
the $10 billion threshold, it would lose the
interchange income from debit cards. " That was
going to cost us $12 million a year, " Corbett
says. " The choice was either sell the bank when
it hit $10 billion in assets or grow through it. We
chose the latter. "
During the year ahead, CenterState Bank
will focus on four main priorities: further
development of its corporate culture-the
" CenterState Way " -overall bank growth, risk
" There are many diverse industries
and economies here in Orlando.
Our team has been able to double
and triple down on that to become
one of our bank's fastest-growing
markets statewide. "
-Julie Kleffel, Seacoast Bank
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Independent Banker - February 2020

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