DFI Monthly Bulletin – November 2005

Nov 1, 2005

Volume 9, Number 5

DFI and Kelsea Thi Dao enter into a Settlement Agreement

On October 31, 2005, the Acting Commissioner of Financial Institutions entered into a settlement
agreement with Kelsea Thi Dao (“Dao”), in which Dao agreed to pay $2,000 to the Department and the
Acting Commissioner agreed to take no further action with respect to her alleged violation of Financial
Code Section 1804 related to the unauthorized acquisition of control of Anh Minh Transfer, Inc.
DFI and Del Agro Corporation, USA enter into a
Settlement Agreement
On November 9, 2005, the Acting Commissioner of Financial Institutions entered into a settlement
agreement with Del Agro Corporation, USA (“Del Agro”) in which Del Agro agreed to pay $15,000 to
the Department and the Acting Commissioner agreed to take no further action with respect to alleged
violations of Financial Code Sections 1801 and 1807, related to untimely payment of annual fees and
untimely and incomplete reporting.
Highlights of 2005 State Chaptered Legislation
Attached is Highlights of 2005 State Chaptered Legislation. This summary is a compendium of most but
not all of the legislation that may have an impact on financial institutions. There is a brief description of
each measure with a link to the chaptered version of that legislation.
We hope you find the “2005 Highlights of State Chaptered Legislation” to be a productive tool. We
encourage any suggestions you may have to improve its usefulness to you and your organization. Please
submit your suggestions to Peter Van Hoecke, Legislative Deputy, at (916) 322-1571 or by email at
2 Monthly Bulletin November 2005
Fraud Alert—CUNA “Phishing” Scam
A new phishing scam is generating multiple copies of a message that purports to be from the Credit
Union National Organization (CUNA) asking recipients to update their personal accounts. This is a
phishing scam—recipients should delete these messages.
CUNA advises that it does not solicit e-mails requesting credit union username, password, pin number,
or other personal identity information. For more information, visit the CUNA Web site at
How to Organize your 5300 Call Report for the
Examiner’s Review
Now that the Credit Union Division examiners rely more heavily on the data contained in the 5300 Call
Reports, the examination staff spends much more time verifying that information. Sometimes credit
union staff and DFI examiners must spend extra time “recreating” the data when the credit union does
not maintain records of how and where the data was obtained. Here is a suggestion on how to organize
your quarterly 5300 Call Report support data so that the time spent verifying the data can be reduced:
Use a binder for each new Call Report. The first page in the binder should be Page 1 of the Call Report
(Statement of Financial Condition as of MM/DD/YY). Behind Page 1 of the Call Report you should
place your source documents. Source documents for this page could include your general ledger trial
balance with accounts highlighted and segregated so that the examiner can readily determine which
accounts make up each line item on Page 1. The next page in the binder would be Page 2 of the 5300
Call Report. Behind that page would be the source documents to support the data on Page 2. This
strategy should continue for all the financial data filled-out on the Call Report so that all supporting
source documentation is inserted behind each financial data page of the Call Report.
Of course, the suggested methodology above is not the only way to organize your Call Reports for the
examiners. However, you can assist us in completing each examination in a timely manner by providing
all back up documentation collected in the preparation of the 5300 Call Report in a format which
supports all reported data. (Source documentation may include general ledger account balances,
schedules and other supporting documentation that provide the basis of the figures shown in the call
report.) Making this information readily available to us will help us be more efficient with our limited
examination time.
Credit Union Contact Information
Deputy Commissioner (Credit Union) Elizabeth Dooley will be out of the office for an extended period
of time. During the interim, credit unions are requested to contact their respective Financial Institution
Managers in her stead:
• Joni Kimbrell (213) 897-2168 jkimbrell@dfi.ca.gov
• Bert McLane (213) 897-9351 bmclane@dfi.ca.gov
• Beverly Ryan (415) 263-8560 bryan@dfi.ca.gov
3 Monthly Bulletin November 2005
DFI Promotes Direct Deposit with Go Direct
The Department of Financial Institutions (DFI) is partnering with Go Direct, a national campaign
sponsored by the U.S. Department of the Treasury and the Federal Reserve Bank, to encourage people
who get Social Security payments by check to switch to direct deposit.
Enrolling people in direct deposit has been a longstanding effort by the Treasury for many years. Go
Direct is a great campaign for DFI and our licensees to be involved in – because direct deposit is simply
the best way to receive Social Security and Supplemental Security Income payments. It eliminates the
risk of lost or stolen checks, reduces fraud and gives people more control over their money.
The Go Direct campaign makes it easy to be a partner by providing support tools as well as campaign
materials and program ideas. All these can be found on the special Partner section of the Go Direct Web
site at http://www.GoDirect.org/Partners.html.
For more information about Go Direct, call (952) 346-6055 or visit www.GoDirect.org (English) and
www.DirectoASuCuenta.org (Spanish) to learn about partnership and volunteer opportunities.
Commercial Bank Activity
New Bank
California Business Bank
800 West Sixth Street, Suite 1000, City and County of Los Angeles
(213) 688-9668
(213) 688-2973 (fax)
Officers: Charles R. Wood, President and Chief Executive Officer
Yu-Ching Lau, Executive Vice President and Chief Financial Officer
Capitalization: $18,464,250.00
Opened: 11/1/05
Community Business Bank
827 Jefferson Boulevard, West Sacramento, Yolo County
916-372-9754 (Fax)
Officers: John DiMichele, President and Chief Executive Officer
Chad Meyer, Senior Executive Vice President and Chief Administrative Officer
Mark Day, Executive Vice President and Chief Financial Officer
Kelly Binger – Executive Vice President and Chief Information Officer
Capitalization: $21,282,100.00
Website: http://www.communitybizbank.com
Opened: 11/14/05
4 Monthly Bulletin November 2005
New Banks (Continued)
Embarcadero Bank
110 West A Street, City and County of San Diego
Correspondent: Stephen N. Rippe
700 Adella Avenue
Coronado, CA 92118
(619) 522-9920
Filed: 11/14/05
Golden Valley Bank
1074 East Avenue, Chico, Butte County
Address changed 11/10/05 from 190 Cohasset Road, Chico
Pinnacle Bank
7597 Monterey Street, Gilroy, Santa Clara County
Correspondent: Grace Wickersham
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Filed: 11/18/05
San Diego Private Bank
9404 Genesee Avenue, La Jolla, San Diego County
Correspondent: Maryam Hamzeh
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Filed: 11/23/05
Great Eastern Bank, New York, New York, with and into United Commercial Bank, San Francisco,
Filed: 11/08/05
Pacifica Bank, Bellevue, Washington, with and into United Commercial Bank, San Francisco, California
Effected: 10/31/05
Purchase of Whole Business Unit
First California Bank, Camarillo to purchase the whole business unit of South Coast Commercial Bank,
Approved: 11/18/05
5 Monthly Bulletin November 2005
Premium Finance Company Activity
New Premium Finance Company
E.T.I. Financial Corporation
2501 E. Chapman Ave, Fullerton, Orange County
Filed: 11/22/05
Pericles Financial Corporation
6046 Cornerstone Court West, Suite 202, City and County of San Diego
Opened: 11/28/05
Professional Premium Acceptance Corporation
5480 Baltimore Drive, La Mesa, San Diego County
Opened: 11/15/05
Foreign (Other Nation) Bank Activity
New Office
The Governor and Company of the Bank of Ireland (Representative Office)
2029 Century Park East, City and County of Los Angeles
Approved: 11/9/05
Opened: 11/17/05
HSH Nordbank AG
560 Mission Street, City and County of San Francisco (Representative Office)
Opened: 11/1/05
Foreign (Other State) Bank Activity
New Facility
Toyota Financial Savings Bank (Facility – Insured Industrial Bank)
19001 South Western Avenue, Torrance, Los Angeles County
Opened: 11/15/05
Errata: It was erroneously reported in the October 2005 issue of the Monthly Bulletin that Toyota
Financial Savings Bank (“TFSB”) was an uninsured bank. TFSB is an FDIC-insured industrial bank.
Credit Union Activity
Colton Federal Credit Union, Colton, to merge with and into 1st Valley Credit Union, San Bernardino
Filed: 9/27/05
Withdrawn: 11/2/05
6 Monthly Bulletin November 2005
Field of Membership
Two credit unions received approvals to add eleven new fields of membership during October 2005.
Bylaw Amendment
Three credit unions received approval for ten bylaw amendments during October 2005.
Transmitter of Money Abroad Activity
New Transmitter
JOM Corporation
Filed: 11/17/05
Money Express Financial Corp.
Opened: 10/21/05
Acting Commissioner of Financial Institutions
Bulletin for Month ended
November 2005, issued pursuant
to Financial Code section 258
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