Volume 10, Number 10

Douglas Kirkpatrick Appointed as DeputyCommissioner

Department of Financial Institutions Commissioner Michael A. Kelley announced the appointment of
Douglas Kirkpatrick as Deputy Commissioner for the Department of Financial Institutions, San
Diego/Orange County Region effective April 7, 2007.

Mr. Kirkpatrick started his career with the California Department of Corporations in 1974. In 1987 he
was appointed Special Administrator for California’s industrial loan companies and played a key role in
their transition to federal deposit insurance. In 1996, Mr. Kirkpatrick was given the additional
responsible as Special Administrator for all California state chartered credit unions.

When the Department of Financial Institutions was created in 1997, Mr. Kirkpatrick joined DFI as an
Assistant Deputy Commissioner. He is a graduate of California State University Northridge and a
Certified Examinations Manager. Mr. Kirkpatrick is responsible for supervising commercial and
industrial banks in the San Diego/Orange County region. He is headquartered in the Department’s Los
Angeles office.

DFI Encourages Licensees to Work with Subprime
Borrowers in Distress
On April 16, 2007, the Department participated in a meeting at the Federal Department Insurance
Corporation headquarters on the turmoil in the market for so-called subprime mortgages. The meeting
was attended by high-level representatives of regulatory agencies, consumer groups, bankers and other
participants in the mortgage industry. Consensus was reached amongst those in attendance that it is in
everyone’s interest to work toward keeping deserving borrowers in their homes.
The Department of Financial Institutions requests that licensees involved in subprime lending to develop
policies so that, wherever possible and consistent with sound lending practices, borrowers in distress are
afforded all options that will reduce their risk of foreclosure.
2 Monthly Bulletin April 2007
Procedures to Formally Appeal Examination
Findings
In October 1991 Superintendent of Banks James Gilleran sent a letter to bank chief executive officers
advising them that if a bank disagreed with the findings of an examination, a procedure to appeal was
available. Superintendent Conrad Hewitt continued that process in 1995. Commissioner Michael
Kelley plans to continue that process.

To be effective, the appeal process must be consistent and uniform in its application. The procedures
that are to be followed to assure consistency and uniformity include:

• All findings of the examination are to be discussed by the Examiner-In-Charge with bank
management at exit meetings, and the examiner is to note any material disagreement with the
findings. After review by departmental supervisory staff, findings and classifications are
communicated to the bank’s board of directors through the Report of Examination and
accompanying transmittal letter.

• Bankers will be afforded an opportunity to respond to the findings including providing
new/additional information or rebuttal (generally in the response to the report of examination).
• Bankers may discuss unresolved differences with the responsible (1) Assistant Deputy; (2)
Deputy Commissioner and (3) the Senior Deputy/Chief Examiner.
• If not resolved, bankers may discuss any differences personally with the Commissioner.
DFI and Antequera, Inc. Enter into an Agreement
On April 12, 2007, the Commissioner of Financial Institutions entered into a settlement agreement with
Antequera, Inc. (“Antequera”), in which Antequera agreed to pay $15,000 to the Department, and the
Commissioner agreed to take no further action with respect to alleged violations of the Financial Code
related to unapproved and unlicensed branch offices.
Commercial Bank Activity
New Bank
1st Capital Bank
5 Harris Court, Building N, City and County of Monterey
(831) 264-4000
(831) 264-4001 (fax)
Officers: Clyde F. Rowden, President and Chief Executive Officer
Jayme C. Fields, Chief Financial Officer
Geoffrey M. Loftus, Chief Credit Officer
Daniel L. Walls, Chief Lending Officer
Capitalization: $31,576,990.00
Website: http://www.1stCapitalBank.com
Opened: 4/16/07
3 Monthly Bulletin April 2007
New Bank (Continued)
American Principle Bank
4041 Broad Street, City and County of San Luis Obispo
Correspondent: David R. Booker
P.O. Box 1918
San Luis Obispo, CA 93406
(805) 546-1064
Approved: 4/19/07
California Republic Bank
1400 Newport Center Drive, Newport Beach, Orange County
Correspondent: Russell W. Bushore
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Filed: 4/2/07
Cathay Interim Bank
777 North Broadway, City and County of Los Angeles
Correspondent: Maureen Young
Bingham McCutchen
Three Embarcadero Center
San Francisco, CA 94111
(415) 393-2788
Opened: 3/30/07
Merged: 3/30/07
(In connection with the merger of United Heritage Bank, New Jersey, with and into Cathay Bank,
California)
Commerce Bank of Temecula Valley
25220 Hancock Avenue, Murrieta, Riverside County
Correspondent: James H. Avery
The Avery Company, LLC
P.O. Box 3009
San Luis Obispo, CA 93403
(805) 544-5477
Approved: 4/11/07
Conekta Bank
530 Broadway, Chula Vista, San Diego County
Correspondent: Maryam Hamzeh
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Filed: 4/3/07
4 Monthly Bulletin April 2007
New Bank (Continued)
Folsom Lake Bank
905 Sutter Street, Folsom, Sacramento County
(916) 985-8700
Officers: Robert J. Flautt, President and Chief Executive Officer
John R. Olson, Chief Financial Officer
Blaine C. Lauhon, Chief Credit Officer
Capitalization: $15,931,110.00
Website: http://www.folsomlakebank.com
Opened: 4/2/07
Pacific Enterprise Bank
17748 Sky Park Circle, Irvine, Orange County
(949) 623-7600
(949) 623-7599 (fax)
Officers: Richard Ganulin, President and COB
Brian Halle, Senior Executive Vice President – Chief Lending Officer
JoAnne Painter, Executive Vice President / Chief Financial Officer
Russ Smith, Executive Vice President / Chief Operating Officer
Capitalization: $25,000,000.00
Website: http://www.pacificenterprisebank.com
Opened: 4/30/07
SoCal Interim Bank
199 South Los Robles Avenue, Pasadena, Los Angeles County
Correspondent: John F. Stuart
Reitner, Stuart & Moore
1319 Marsh Street
San Luis Obispo, CA 93401
(805) 545-8590
Filed: 4/10/07
(In connection with the merger of Professional Business Bank, Pasadena, with and into SoCal Interim
Bank, Pasadena)
Stellar Business Bank
100 North Azusa Avenue, Covina, Los Angeles County
(626) 214-1760
(626) 214-1771 (fax)
Officers: Timothy P. Walbridge, President and Chief Executive Officer
Lori Ann Herzig, Executive Vice President and Chief Financial Officer
Melvin O. Redford, Executive Vice President and Chief Credit Officer
Capitalization: $22,952,717.00
Website: http://www.stellarbusinessbank.com
Opened: 4/9/07
5 Monthly Bulletin April 2007
Merger
First Coastal Bank, National Association, Manhattan Beach, to merge with and into Citizens Business
Bank, Ontario
Filed: 4/12/07
Landmark National Bank, Solana Beach, to merge with and into 1st Pacific Bank of California, La Jolla
Filed: 4/5/07
Professional Business Bank, Pasadena, to merge with and into SoCal Interim Bank, Pasadena
Filed: 4/10/07
United Heritage Bank, Edison, New Jersey, to merge with and into Cathay Bank, Los Angeles,
California
Effected: 3/30/07
The Vintage Bank, Napa, to merge with and into Umpqua Bank, Roseburg, Oregon
Effected: 4/27/07
Acquisition of Control
Bank of Marin Bancorp, to acquire control of Bank of Marin
Filed: 3/21/07
Approved: 4/5/07
Banyon, LLC, to acquire control of First California Bank
Filed: 3/29/07
Withdrawn: 4/26/07
Belvedere SoCal, Belvedere Capital Fund II, L.P., and Belvedere Capital Partners II LLC, to acquire
control of Professional Business Bank
Filed: 4/10/07
Pacific City Financial Corporation, to acquire control of Pacific City Bank
Filed: 4/12/07
Richard Wayne Arendsee, to acquire control of California Community Bank
Approved: 4/11/07
Final Order (Financial Code Section 1913)
Innovative Bank
360 14th Street, Oakland, Alameda County
Effected: 4/30/07
6 Monthly Bulletin April 2007
Premium Finance Company Activity
New Premium Finance Company
Allied Premium Finance Co., Inc.
8530 La Mesa Blvd, Suite 208, La Mesa, San Diego County 91942
Filed: 4/3/07
Approved: 4/16/07
American Financial Plan, Inc.
2501 E. Chapman Ave., Fullerton, Orange County
Opened: 4/24/07
Capital Credit Group CA, Inc.
8530 La Mesa Boulevard, La Mesa, San Diego County
Address changed: on 4/11/07 from 5480 Baltimore Drive, La Mesa, San Diego County
Opened: 4/11/07
Platinum Premium Finance Corporation
2501 E. Chapman Avenue, Fullerton, Orange County
Filed: 4/10/07
Approved: 4/18/07
Premium Financing Services, Inc.
8530 La Mesa Boulevard, La Mesa, San Diego County
Address changed on 4/4/07: from 5480 Baltimore Drive, La Mesa, San Diego County
Opened: 4/10/07
Westport Financial Services, Inc.
2501 E. Chapman Avenue, Fullerton, Orange County
Opened: 4/17/07
Voluntary Surrender of License
Pericles Financial Corporation
Effected: 4/30/07
Spartan Premium Finance Company, Inc.
Effected: 4/19/07
Industrial Bank Activity
Conversion to State Charter
Tustin Community Bank, Tustin, to convert to a state-chartered commercial bank
Expired: 3/19/07
Tustin Community Bank, Tustin, to convert to state-chartered commercial bank
Filed: 4/5/07
7 Monthly Bulletin April 2007
Final Order (Financial Code Section 1913)
Fremont Investment & Loan
2727 East Imperial Highway, Brea, Orange County
Effected: 4/13/07
Trust Company Activity
Voluntary Surrender of License
Western Financial Trust Company
Effected: 12/26/06
Foreign (Other Nation) Bank Activity
New Office
The Hongkong Shanghai Banking Corporation
39410 Fremont Boulevard, Fremont, Alameda County (Representative Office)
Filed: 4/2/07
Credit Union Activity
Field of Membership
One credit union received approvals to add two new fields of membership during March 2007.
Variance
One credit union received approval for request for variance to sections of the California Code of
Regulations during March 2007.
Merger
First Napa Federal Credit Union, Napa, to merge with and into Redwood Credit Union, Santa Rosa
Filed: 8/10/06
Approved: 9/1/06
Effected: 3/30/07
Golden State Federal Credit Union, Sacramento, to merge with and into Sacramento Credit Union,
Sacramento
Effected: 4/1/07
McColl’s Credit Union, Redding, to merge with and into Sierra Central Credit Union, Yuba City
Filed: 4/5/07
Approved: 4/17/07
8 Monthly Bulletin April 2007
Merger (Continued)
Napa Schools Federal Credit Union, Napa, to merge with and into Travis Credit Union Vacaville
Effected: 3/27/07
Placer Community Credit Union, Auburn, to merge with and into First U.S. Community Credit Union,
Sacramento
Filed: 3/30/07
Approved: 4/17/07
United Mutual Employees Federal Credit Union, Richmond, to merge with and into First Metropolitan
Credit Union, Concord
Filed: 2/20/07
Approved: 3/14/07
Transmitter of Money Abroad Activity
New Transmitter of Money Abroad
GPC International, Inc
Withdrawn: 4/23/07
Metro Remittance Center (California), Inc.
Approved: 2/9/07
Acquisition of Control
Ronaldo Freitas, to acquire control of Money Express Financial Corporation
Filed: 2/13/07
Withdrawn: 4/25/07
MICHAEL A. KELLEY
Commissioner of Financial Institutions
Bulletin for Month ended
April 2007, issued pursuant
to Financial Code section 258
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