John Medina, President & CEO, First Federal Bank
John Medina, president and CEO of First Federal Bank, spoke with Invest: about the health of the Jacksonville market for the banking and financial service industries. First Federal Bank, being owned by its depositors, takes a unique pride in serving the community and region of northeast Florida, he said.
What have been the main milestones and highlights for First Federal Bank over the past 12 months?
A lot has happened. In 2023, we generated approximately 10,000 home mortgages, either through originating or purchasing loans. That’s a little over $3 billion in mortgages. Our mortgage operations are headquartered in Jacksonville. We’ve been here for a while, but we acquired our headquarters building in 2020. So, while we have offices all around the country – North Dakota, South Dakota, Georgia, North Carolina, South Carolina, Arizona, Kansas, all over the country – our headquarters are in Jacksonville; we are committed to that space and geography
In the last year, we also acquired Watson Mortgage Group, which was an affiliate of Watson Realty, and we are excited about that partnership. Watson Realty has over 1200 agents in North and Central Florida, and they’ve been our customer for many years. It was a good opportunity for us to partner with someone we were already doing business with.
We also were recognized last year by the SBA’s northeast office district as the top community lender. We are proud of our ability to serve the needs of business owners in the entire MSA. We have banking operations in Nassau County – with dominant deposit market share in Nassau County – and we were nominated as the best large business of the year last year. We dominate deposit market share also in Baker County; we have many clients in play in St. John’s County So, we look at the region, not just necessarily Duval County. A lot has taken place and we’re looking forward to the future of banking for this MSA.
What is your overview of the banking and financial services industries in Jacksonville?
Duval County, and Jacksonville as a whole, is a robust market. Job growth is taking place in the market, and it is a diversified marketplace. There is everything from aerospace to healthcare, to transportation; you’ve got the military, the ports, the airports. It’s a well-diversified market. Florida also has no state income tax which makes it attractive for companies that are looking to relocate. But beyond that, Duval County is a great place to live, work, play, and learn. When you look at ecotourism and the things that are available for families to participate in – not to mention the access to good education in Duval County – all those things bode well for the future of Jacksonville
I believe 11% of the business market in Duval County is finance and insurance companies. The large banks are here, and large credit unions are here. Also, you have what I call medium-sized institutions, such as ours. It’s an ecosystem that supports a wide variety of industries. I think I read in one of your publications that the city of Jacksonville had its bond rating upgraded by Fitch from an AA to an AA+. I can’t stress enough what a favorable indication that is for what’s happening in Jacksonville. A lot goes into consideration when the rating agencies are making those decisions. Obviously financial well-being is paramount, but I think it’s also the holistic approach of the community. Strategic planning and management are pivotal, so kudos to the city of Jacksonville for that rating. Obviously, we’re bullish: we’re continuing to hire, we’re continuing to expand our banking presence here, and we’re going to continue to grow.
In what ways does First Federal Bank differentiate itself from other banks operating in the area?
There is a strong financial services market here; you have plenty of options. First Federal Bank is unique in several ways. First, we’re the only mutual bank remaining in the state of Florida. This means we are owned by our depositors. This gives us the flexibility of being able to look long term. We don’t have shareholders; we don’t have any intention of selling the bank. As a result, we can provide the essence of stability that other banks may not be able to provide. We’re part of the community. Like others, we invest heavily through the Community Foundation for Northeast Florida; we invest in nonprofits. Many of our employees are tenured. In numerous cases, they are lifelong residents of Duval County. So, we have a vested interest in the community. Some of the opportunities we’ve been able to participate in, and support with donations and volunteer hours, include Clean Up Northeast Florida Waters and the Jacksonville Down Syndrome Association. We were also able to provide veteran families with tickets to the Iceman Games. We really pride ourselves on being a local alternative to large banks
In terms of product offerings, not all institutions are able to provide construction-to-perm financing for homes. Manufactured housing continues to be a great market for us, and SBA loans, too. We were recognized for being one of the top providers of SBA loans in that area. Being able to serve both the individual and a company or business needs gives us a distinctive competence in the marketplace. We also have down payment assistance for homebuyers in the Jacksonville market-up to $10,000. We provide financial literacy classes at several different venues throughout Duval County. Again, we’ve been around for 62 years and we’re probably one of the few banks that can articulate that we will remain First Federal Bank and not sell out. We want to be able to provide for the needs of the community we serve. Our distinctive competency overall is stability; to provide stability for the communities and the customers that we serve. We will continue to do that.
Which of your services do you expect will be the main drivers of growth?
Customers want financial services that are fast, easy, and carefree, and they want it where, when, and how they want it. That is not ambiguous. Customers are expecting a high level of user-friendly technology, whether it’s mobile, app-based, or online. That is going to continue to grow across all spectrums. By the same token, customers appreciate the ability to have someone they know, someone they can meet face to face, to be able to help them see their ideas come to fruition. I think that is going to continue to be critical in our space.
