Spotlight On: Jeff Watts, Chief Banking Officer – East Florida, Valley Bank
April 2025 — In an interview with Invest:, Valley Bank Chief Banking Officer – Florida East Jeff Watts discussed the ways in which Miami has been a fertile environment for midsized banks over the last decade despite uncertain headwinds elsewhere in the country. According to Watts, while last year was very strong, next year is due to be even better.
What have been some of the major milestones or highlights for Valley Bank over the last 12 months?
This year has been successful for the bank on many levels. The operating environment remains challenging, but our main priority is to grow our Commercial & Industrial (C&I) businesses, which represent banking operating companies. This includes businesses of up to $25 million in revenue for business banking and then $25 million and greater for our corporate middle market teams. Thankfully, we’re up 20% year-to-date from a C&I banking perspective, and we have experienced substantial increases in deposits and fee income. The vast majority of the new business is generated out of Dade County in our Coral Gables office. Our strong financial results are aligned with the bank’s priorities, and they show that our value proposition is resonating well in the marketplace. It is important for a mid-sized bank to have enough capital and capabilities while also being able to deliver local decision-making, local relationship teams, and the ability to execute. All of this tells me the business owner values what we’re bringing to the marketplace.
I would say the other element is talent. We’ve been able to add some excellent talent to our organization. We added a new C&I senior credit officer based in Coral Gables. We have also attracted some really impactful bankers, whether it’s in healthcare, commercial C&I, business banking, or real estate. If you travel up north, we recently added a new market president in Palm Beach County. We continue to attract some really impressive talent and we’ve effectively doubled the size of the commercial banking team in Coral Gables.
What is your overview of the banking and financial services sector in Miami?
We’re fortunate to be in Florida. A lot of what’s happening locally is not happening nationally. When you look at the growth in South Florida, we’re in a very enviable position. From a banking industry standpoint, it’s still a very challenging operating environment but I think 2024 is much more stable compared to 2023. We lived with high interest rates throughout 2023, as well as an inverted yield curve, which puts pressure on banks’ earnings potential. We observed bank failures nationally which generated a lot of uncertainty. Here we are 18 months later, we’ve had one decrease in interest rates, and all banks, including Valley, have a good handle on their commercial real estate exposure. At this point in the real estate cycle, our region is clearly outperforming the national markets because of the demographics and level of investment entering the area daily. With that being said, there is more stability and confidence in the industry. Looking ahead, I think at this time next year, we’re going to be in a normal operating environment from a rate, yield curve, and real estate perspective.
Today, when you look at our industry environment, there are a lot of banks that are yield-curve-dependent, meaning they make the majority of their income lending to companies and individuals. But when you have an inverted yield curve, your margin and earnings are put under pressure. At Valley Bank, we’re very fortunate to have a diverse range of revenue sources to generate income, whether it is treasury solutions, trade finance, syndications, or wealth management. We not only bring value to the marketplace and the business owner, but we are also an institution that has diversification of revenue that allows us to offset some of that pressure from the inverted yield curve.
Which services do you expect to be the main drivers of growth in the coming year?
Within our C&I practice, we have highly talented teams that align exceptionally well to the industries and sectors that are growing in Dade County. For example, our local market and industry knowledge in wholesale trade, education, trade finance, and service companies supports the growth of several of the local cities. Additionally, we enjoy a strong fluency and comfort level banking companies who are doing business not only domestically, but also in Latin American, among other international markets.
Another important element of our C&I platform is our established industry verticals that absolutely align with where we see growth in Dade County. For instance, our Healthcare, Technology, and Association Banking teams deliver significant expertise and advice to our clients and prospects. We plan on resourcing these teams tremendously to help advance the growth we see in Miami. At the end of the day, our C&I business is grounded in relationship banking, local decision-making and a high-touch service model.
For more information, please visit:
