DFI Monthly Bulletin – July 2004

Jul 1, 2004

Volume 8, Number 1

Administrative Changes at DFI

Leadership resources positioned to achieve critical objectives
Several changes to key administrative positions within the Department took place effective July 1, 2004. As
previously announced, Chief Examiner, David Scott retired in June after serving 32 years with DFI and its
predecessor, the State Banking Department.
Brian Yuen assumed responsibilities as Chief Examiner. Mr. Yuen had been Deputy Commissioner, Division of
Examinations, Southern California Region since April 2001. His prior assignment was as a Financial Institution
Manager in the San Francisco Regional Office. Mr. Yuen joined the State Banking Department in 1974 and
has almost thirty years of experience.
Craig Carlson assumed a newly-defined role as Senior Deputy Commissioner. Mr. Carlson will continue to
serve in his present capacity as Deputy Commissioner, Division of Examinations for the San Diego/Orange
County Region, a position he has held since June 2001. As Senior Deputy Commissioner, Mr. Carlson will also
spearhead DFI’s strategic planning and performance review initiatives. Peter A. Van Hoecke, Strategic
Support Manager will be assisting Mr. Carlson in coordinating timely completion of strategic initiatives,
coordinating and refining DFI’s performance measures, developing a policy infrastructure and communicating
policy positions and actions. Mr. Carlson has almost thirty years of experience with DFI and the State Banking
Department. His previous assignment was as a Financial Institution Manager in the San Diego Office.
John Ross was appointed Deputy Commissioner, Division of Examinations, Southern California Region. Mr.
Ross joined the State Banking Department in 1986 and has served as a Financial Institutions Manager in the
Los Angeles Regional Office since 1999. His prior assignment was as a Financial Institution Supervisor in the
Los Angeles Office.
Executive bios are available on the DFI Web site under Executive Profiles.
2 Monthly Bulletin July 2004
Commissioner Howard Gould stated: “I hope you will join me in extending warm congratulations to these key
leaders and managers who are committed to the DFI mission to ensure the integrity and stability of California’s
financial services system.”
Amendment in Policy on Stock Options
Commissioner of Financial Institutions Howard Gould has decided to affirm and amend the Department of
Financial Institutions’ policy regarding stock options. The Commissioner has approved the granting of stock
options to organizers of new banks to the extent allowed by the Federal Deposit Insurance Corporation.
The Commissioner plans to adopt a regulation that would exempt from the permit requirement of Financial
Code Section 691 the issuance by a California state-chartered commercial bank, industrial bank, or trust
company (a “bank”) of stock options to its directors, officers, employees, consultants (including attorneys and
accountants), and (in the case of a newly organized bank) organizers, and the sale of shares pursuant to the
exercise of stock options. The only significant requirement would be that each stock option be approved in
advance by the board of directors of the bank, or be issued pursuant to a plan which has been approved by the
Pending adoption of the regulation, any bank may apply to the Commissioner for an order granting it an
exemption from the permit requirement for stock options. Such an application should be in the form of a letter
addressed to the Legal Division at the Department’s San Francisco office, 111 Pine Street, #1100, San
Francisco, CA 94111-5613. The application letter may state simply that the bank is applying for an order of
exemption for stock options. No supporting information or documents need be furnished, and no fee will be
Waiver Needed to Exceed Aggregate MBL
Limits to Non-Members
Financial Code Section 30.803 permits state-chartered credit unions to grant business loans in accordance with
Section 723 of the NCUA rules and regulations. This regulation generally permits federally-insured credit
unions to make member business loans (“MBLs”) or hold non-member business loans to the extent that the
aggregate of all loans in this category do not exceed the lesser of 1.75 times the credit union’s net worth or
12.25% of total assets, unless a waiver has been approved.
The NCUA revised the Member Business Loan Regulations last year. The changes became effective October
31, 2003. One such amendment, to Section 723.16(b), permits a federally-insured credit union to own
member business loans and non-member participation loans in excess of the prescribed regulatory limitations if
the credit union has been granted a waiver by DFI and NCUA.
3 Monthly Bulletin July 2004
In order to apply for a waiver, federally insured state-chartered credit unions must file an application with DFI
for a waiver. The application must be filed in duplicate and shall include the following:
1) Current copy of the credit union’s member business loan policies
2) Confirmation that the credit union is in compliance with all other aspects of rule 723
3) A proposed limit for the total amount of non-member loans or participation interests the credit union
may acquire if the application is granted
4) Attestation that the acquisition of non-member loans and participations is not being used, in conjunction
with one or more other credit unions, to have the effect of trading member business loans that would
otherwise exceed the aggregate limit
DFI reserves the right to request additional information with regard to such an application as is deemed
Approval of your request is a two stage process. If your request is approved by DFI, our recommendation for
approval and a copy of your application will be forwarded to the NCUA for approval by that agency.
Money Transmitter Regulators Association Tenth
Annual Conference
The Money Transmitter Regulators Association (“MTRA”) Annual Conference is scheduled for September 13-
15 in Denver, Colorado. MTRA is an organization of state regulators whose mission is to foster cooperation
among states and federal agencies for the effective and efficient regulation of money transmitters, and sellers of
payment instruments and travelers checks. All of our licensees are strongly encouraged to attend this 3-day
conference to get up to date information on the latest industry trends, compliance with federal and state antimoney laundering laws (such as the Bank Secrecy Act and Patriot Act), and to meet and greet both state and
federal regulators as well as your peers in the industry. For a complete program agenda and more information
about how to register for the conference, please go to the MTRA web site at
Commercial Bank Activity
New Bank
Bay Commercial Bank
1280 Civic Drive, Suite 100, Walnut Creek, Contra Costa County
(925) 476-1800
Web site: www.baycommercialbank.com
Officers: George Guarini, President and Chief Executive Officer
Keary Colwell, Chief Financial Officer
Brian Bray, Chief Credit Officer
Capitalization: 15,400,000
Opened: 7/20/04
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New Bank (Continued)
California United Bank
15821 Ventura Boulevard, Suite 100, Encino, Los Angeles County
Correspondent: Grace Wickersham
Carpenter & Company
5 Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Filed: 7/26/04
Charter Oak Bank
1739 Trancas Street, Napa, Napa County, CA 94558
Correspondent: Grace Wickersham
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614-8527
(949) 261-8888
Approved: 7/21/04
Commonwealth Business Bank
5055 Wilshire Boulevard, Los Angeles, Los Angeles County
Correspondent: Grace Wickersham
Carpenter & Company
5 Park Plaza, Suite 950
Irvine, CA 92614
Filed: 6/10/04
First General Bank
1744 South Nogales Street, Rowland Heights, Los Angeles County
Correspondent: Gary Steven Findley. Esq.
Gary Steven Findley & Associates
1470 North Hundley Street
Anaheim, CA 92806
(714) 630-7910
Filed: 7/7/04
MetroPacific Bank
In the vicinity of Von Karman and Martin, Irvine, Orange County
Correspondent: Robert B. Hildt
4540 Campus Drive, Suite 148
Newport Beach, CA 92660
(714) 253-7807
Filed: 7/9/04
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New Bank (Continued)
Mother Lode Bank
172 West Stockton Road, Sonora, Tuolumne County
(209) 694-8400
Web site: www.motherlodebank.com
Officers: A. Peter Johnson, President and Chief Executive Officer
Craig E. Sandall, Chief Credit Officer
Laurie E. Mitchum, Chief Financial Officer
Capitalization: $9,625,000.00
Opened: 7/30/04
Ojai Community Bank
402 West Ojai Avenue, Ojai, Ventura County
Correspondent: James H. Avery
James H. Avery Company
PO Box 3009
San Luis Obispo, CA 93403
Phone: (805) 544-5477
Approved: 7/21/04
Bank of Orange County, Orange, with and into Placer Sierra Bank, Auburn
Effected: 7/23/04
Community First National Bank, Fargo, North Dakota, with and into Bank of the West, San Francisco
Approved: 7/1/04
Humboldt Bank, Eureka, with and into Umpqua Bank, Roseburg, Oregon
Effected: 7/10/04
Trust Bank, Monterey Park, a federal savings association, with and into East-West Bank, San Marino
Approved: 7/27/04
Union Safe Deposit Bank, Stockton, California, with and into Bank of the West, San Francisco
Filed: 7/22/04
Acquisition of Control
Banco Bilbao Vizcaya Argentaria, S.A., BBVA International Investment Corporation, Grupo Financiero BBVA
Bancomer, S.A. de C.V., BBVA Bancomer, S.A., Institucion de Banca Multiple Grupo Financiero BBVA
Bancomer, and BBVA Bancomer Financial Holdings, Inc. to acquire control of Valley Bank (Name will be
changed to BBVA Bancomer Bank), Moreno Valley
Filed: 7/7/04
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Acquisition of Control (Continued)
BancWest Corporation, Honolulu, Hawaii, and BNP Paribas, Paris, France, to acquire control of Union Safe
Deposit Bank, Stockton
Approved: 7/6/04
North Valley Bancorp, Redding to acquire control of Yolo Community Bank, Woodland
Approved: 7/7/04
Premium Finance Company Activity
New Premium Finance Company
California Premium Financing, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Correspondent: Carol Manson
Automated Installment Systems
955 Executive Parkway, #201
St. Louis, MO 63141
(800) 624-6308
Filed: 6/30/04
Colonial Premium Financing, Inc.
13750 Pipeline Avenue, Chino, San Bernardino County
Correspondent: James Walski
13750 Pipeline Ave
Chino, CA 91710
(909) 591-6497
Filed: 7/13/04
Approved: 7/29/04
Express Premium Finance Corporation
23441 South Point Drive, Suite 220, Laguna Hills, Orange County
Officer: Matthew C. Price, President
Opened: 7/6/04
First Solutions Financial Services, Inc.
955 Grand Street, Carlsbad, San Diego County
Officer: Charles Reed, President
Opened: 7/13/04
Oasis Financial Services, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
(800) 624-6308
Officer: Stephanie Fanelli
Opened: 6/30/04
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New Premium Finance Company (Continued)
Pacific Alliance Premium Finance, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Officer: Janice M. Sirkin
Opened: 7/13/04
Change of Name
Commonwealth Premium Financing, Inc. (In Organization) to ClassicPlan Premium Financing, Inc. (In
Effected: 7/7/04
Credit Union Activity
Conversion to State Charter
Courts & Records Federal Credit Union, Pasadena
Withdrawn: 7/14/04
Verizon Employees Federal Credit Union, Los Alamitos, into Orange County’s Credit Union, Santa Ana
Effected: 6/30/04
Field of Membership
Nine credit unions received approvals to add 28 new fields of membership during June 2004.
Bylaw Amendments
One credit unions received approval for two bylaw amendments during June 2004.
Amendment of Articles of Incorporation
One credit union received approval for one amendment of articles of incorporation during June 2004.
Transmitter of Money Abroad Activity
Acquisition of Control
RII Holding, Inc. to acquire control of Ruesch International, Inc.
Filed: 7/23/04
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Payment Instrument Activity
New Payment Instrument
Navicert Financial Inc.
17019 Kingsview Avenue
Carson, CA 90746
Opened: 7/21/04
Commissioner of Financial Institutions
Bulletin for Month ended
July 2004, issued pursuant
to Financial Code, Section 258
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