April 11, 2013


Reviewed all 2,413 newly introduced legislative measures and identified 447 as having a potential impact on or of interest to the financial services industry.

Provided detailed analysis of 67 measures to CBA policy committees and adopted positions on 57 measures to date.

Sponsored the introduction of four measures:
• Assembly Bill 42 (Perea) and SB 30 (Calderon) extend the sunset date to January 1, 2014, to provide tax relief to borrowers for debt forgiven by a lender through a negotiated short sale or principal reduction resulting from a loan modification.
• AB 279 (Dickinson) expands the types of insured deposit accounts, modeled after the Certificate of Deposit Account Registry Service, in which local agencies may deposit surplus funds.
• AB 1206 (Torres) permits letters of credit (LOCs) issued by any Federal Home Loan Bank (FHLB) to be used as security for public deposits rather than only LOCs issued by the “Federal Home Loan Bank of San Francisco.”

Generated five issue briefs, including a fact sheet detailing the vital impact of California banks on the state’s economy.

Participated in 160 meetings with state legislators and state agency departments.

Conducted 31 internal policy committee meetings.

Conducted meetings with CBA members and the state controller’s office regarding the state’s cash flow management.

Hosted a telebriefing for 66 attendees of the CBA Annual Legislative Conference to provide an overview of the issues CBA has identified as top priorities to the industry and to help attendees to navigate the state Capitol and meetings with legislators.

Provided legislative briefings at the CBA Annual Legislative Conference and CBA Annual Lenders Conference.

Presented testimony on behalf of the industry at the Senate Committee on Rules confirmation hearing of Department of Financial Institutions Commissioner Teveia Barnes.

Co-sponsored the California Tribal Business Alliance’s back-to-session event welcoming the California Legislature and constitutional officers back to the Capitol for the beginning of the legislative session.

Co-sponsored the California Latino Legislative Caucus and the California Issues Forum events in Sacramento.

Conducted 14 state legislative grassroots meetings attended by CBA members.

Participated in 37 Sacramento fundraisers for members of the state legislature and state legislative candidates.

Conducted three meetings with state legislative candidates.

Attended eight meetings with members of Congress and their senior staff during the ABA’s Freshmen Fly-In regarding bank examination reform, equal tax treatment for credit unions and how a healthy economy requires a strong and healthy banking system.

Participated in the ABA’s monthly grassroots conference calls, which includes a briefing and strategy related to current congressional issues affecting the banking industry.

Participated in a fundraiser for Rep. Juan Vargas.

Raised more than $32,000 for the CBA Federal PAC by conducting live/silent auctions during Bank Presidents Seminar.

Raised $109,137 (59 percent of goal) for the CBA State PAC and $59,591 (70 percent of goal) for the CBA Federal PAC.


Fielded roughly a dozen incoming media inquiries, focused on a wide range of issues including ATM fraud, the impact of Dodd-Frank on community banks, housing inventory and the Homeowner Bill of Rights, cyber security and more.

Distributed an opinion editorial from President & CEO Rod Brown on business lending in California. The oped appeared in the Contra Costa Times, San Jose Mercury News, Oakland Tribune, Sacramento Business Journal, Tri Valley Herald and Pacific Coast Business Times.

Conducted additional media interviews with American Banker, Sacramento Bee, San Jose Mercury News, CBS 13, CNBC, Orange County Register and the Sacramento Business Journal.

Issued a press release announcing that CBA has co-sponsored two measures, Senate Bill 30 and Assembly Bill 42, which will extend important tax relief to borrowers who under this legislation will not be required to report the amount of debt forgiven by a lender due to a negotiated short sale or principal reduction resulting from a loan modification.

Issued a press release announcing the release of a report, along with Beacon Economics, called “The Economic Impact of Banks: Measuring the Benefits in California,” which examines the critical role banks play in supporting California’s economy and the communities where they do business. The report, available online, examines and identifies a number of direct economic impacts banks have, as well the considerable contributions banks make to California’s economy through what the report’s authors refer to as indirect effects.

Produced two, 30 second marketing videos previewing CBA’s 122nd Annual Convention and highlighting April as Financial Literacy Month.

Developed a Financial Literacy Month resource web page, which features links to many financial literacy resources from federal and state regulators and agencies, and ways banks can get involved.

Scheduled three upcoming editorial board meetings with the Los Angeles Times (May 8), Sacramento Bee (May 14) and Orange County Register (June 5). These meetings, led by Rod Brown and with participation from local CBA member bank leadership, are excellent opportunities for California’s industry leaders to interface with the editorial board staff (those who determine the direction of the newspaper’s opinion page) and discuss issues of concern to the industry and consumers, and communicate the positive role their bank plays in the local community.

Worked closely with the events, education and government relations teams to design marketing materials to promote CBA events, conferences and seminars. Brochures and other collateral material were created for CBA’s Annual Convention, Bank Counsel Seminar, Annual Legislative Conference, Security Management Conference, Women in Banking and CFO Conference.

Assisted with several marketing campaigns to highlight new services or product offerings from Strategic Partners Verafin, Staples, Equias Alliance, Promontory Interfinancial Network and EverFi as well as assisted in the marketing launch of two new Strategic Partners, Diebold and LTC Financial Partners.


Delivered an “in-house” Commercial Lending School program to 24 participants from six banks primarily serving the Korean community.

Conducted the Strategic Governance Forum for 54 participants.

Held the make-up session of the FDIC Community Bankers Credit Workshop for 41 participants.

Hosted the Writing an Effective Credit Memorandum for 47 participants.

Delivered session one of the Directors Certification Program in two locations for a total of 46 participants.

Hosted the two-day Call Report Preparation Seminar for 64 participants.


Hosted the Bank Presidents Seminar in January with a total attendance of 285 participants, including 121 bank presidents.

Hosted the 26th Annual Lenders Conference with a total attendance of 189 participants, including 98 chief credit officers.


Conducted annual survey planning meeting with the Compensation Survey Advisory Committee, and prepared the 2013 Compensation & Benefits Benchmark Survey Questionnaire in conjunction with Crowe Horwath LLP.

Filed an amicus brief in the appellate court supporting a bank that had been successfully sued for exercising its contractual right to set-off against a customer’s accounts after the customer defaulted multiple times on outstanding loans. Zigner v. Pacific Mercantile Bank.

Requested a California court to publish a favorable decision in which a court refused to hold a bank liable for conducting duly authorized wire transfers for a customer who was a victim of a Nigerian-type scam. Shamgochian v. Bank of America, et al.

Joined a coalition of business associations in an amicus brief to the California Supreme Court in a case that addresses the extent of a defendant’s right of defense in a class action suit, and the permissibility of representative testimony and statistical sampling as substitutes for common proof of class liability. Duran v. U.S. Bank.

Joined a coalition of state bankers associations in an amicus brief in a bankruptcy case seeking review of a court’s decision to separately classify a secured creditor because of the existence of a third-party guarantee in favor of the creditor. Loop 76 v. Wells Fargo Bank.  

Joined a coalition of business groups to retain the publication status of a decision that barred class action plaintiffs from seeking discovery of insurance company client information (in order to expand the class) in a manner that is both costly and threatens privacy rights. In re Insurance Installment Fee Cases.

Opposed proposals by the cities of Salinas and Richmond to adopt a plan to use the city’s powers of eminent domain to take mortgage loans for restructuring and resale.

Issued a Regulatory Compliance Bulletin regarding tenant rights including a summary of AB 2610 which, among other things, extends from 60 to 90 days the time in which a tenant on a residential property that had been foreclosed may be evicted.

Issued a Regulatory Compliance Bulletin regarding ATM placards, including an analysis of the CFPB’s rule eliminating the requirement to post a physical fee notice on ATMs. 

Issued Regulatory Compliance Bulletin regarding escrow rule for higher priced mortgage loans including an analysis of the CFPB’s rule requiring escrow accounts for higher priced mortgage loans.

Issued a Regulatory Compliance Bulletin regarding escheat and account inactivity fees including analysis of the position of the state controller’s office that banks are not permitted to charge inactivity fees at any time on accounts that escheat to the state.

Issued a Regulatory Compliance Bulletin regarding HUD disparate impact rule, including analysis of HUD’s final rule adopting a disparate impact theory of liability for Fair Housing Act violations.

Issued a Regulatory Compliance Bulletin regarding the California Supreme Court decision threatening enforceability of contracts including analysis of the court’s RiverIsland Cold Storage v. Fresno-Madera Production Credit Association decision, which expands rights to introduce evidence to challenge valid contracts.


Welcomed the following new affiliate members: AmTrust North America, Arnold & Porter LLP, Data Center, Inc. (DCI), InterWest Insurance Services, Inc., Parasec, Pearl Meyer & Partners and Wunderlich Securities, Inc.

Welcomed the following new bank members: 1st Capital Bank, Avidbank, Bank of San Francisco, Bank of the Orient, First National Bank of Southern California, Mother Lode Bank, Premier Business Bank, Regents Bank, N.A., Sunwest Bank, Pacific Mercantile Bank and Community Bank of the Bay.

Held two regional CEO Roundtables, one in Santa Rosa with four bankers participating and one in San Diego with five bankers participating.

Held a Federal Reserve Bank Roundtable in Los Angeles with 29 bankers participating.

Seven bank visits conducted by President & CEO Rod Brown.

Strategic Partners

Extended successful endorsed partnership with Harland Clarke. The company currently provides at least one product or service to nearly 80 percent of all California banks. The CBA’s newly expanded and extended partnership now covers the full suite of services available from each of Harland Clarke’s three divisions, including payment solutions, marketing services and security solutions.

Enhanced new partnership with LTC Financial Partners, the nation’s largest long-term-care insurance agency. Recognizing the importance of long-term-care planning, the CBA trust has agreed to make a meaningful contribution to subsidize a portion of the premium associated with a basic policy provided via LTC Financial Partners for three years. This enhancement is available for any qualified employee of a CBA member bank.