State of the Union

In April 2010, following a decision by the California Department of Financial Institutions,Marin County’s Tamalpais Bank was shuttered by the Federal Deposit Insurance Corporation (FDIC). Certain assets and deposits were acquired by San Francisco-based Union Bank in a  purchase and assumption agreement with the FDIC. By taking operation of Tam’s seven branch locations, Union Bank jumped from two to nine Marin outlets, making it a sudden powerhouse in the county’s banking landscape. The following month, Union Bank opened a branch office in a historic building on the town square in Sonoma, joining its six-year-old Petaluma branch to double its Sonoma County presence. Clearly, there’s a new player in the North Bay banking scene.

"We’ve always had clients in Marin and Sonomoa counties, even though we didn’t have many branches there," says Mahla Shaghafi, senior vice president and wealth market executive. "Now we can offer those clients service closer to home." And welcome new banking customers as well.

Despite its international connections and expansive western reach, Union Bank’s philosophy is more in line with smaller banking institutions. “We differentiate ourselves from our competitors by being on the ground,” says Shaghafi, who leads Union Bank’s private banking in Northern California with direct management offices in San Francisco; the East Bay; and Sonoma, Sacramento and Marin counties. “We can offer services to compete on a scale with larger banks, but we operate like a community bank; decisions are made locally. We consider ourselves partners with the communities we serve.”

“Union Bank is a relationship bank,” says Molly Fedorchak, manager of the newly opened branch on the square in the town of Sonoma, “so we’re not just about opening accounts. We’re about establishing long-term relationships with our customers.

Banking for all

Union Bank has a solid reputation as a business bank, providing corporate, commercial, business and small business services, with “a number of professional service firms as clients—medical practices, law firms, nonprofits and the like,” says Shaghafi, “but we also offer services for private bank and retail banking clients.”

“We’re very safe and stable; we’re a full-service bank with everything to offer,” says Senior Vice President and Market President Elaine Genevro. “We try to localize our service as much as possible within the branch offices by working with our internal partners.” This means Union Bank has senior financial advisers assigned to every branch office, who will meet with customers at their convenience.

Union Bank offers a full range of banking and financial services, including:

• Personal banking (checking, savings, home equity, retirement planning, online banking);

• Wealth management (investment management, brokerage, estate planning, trust administration, banking services, insurance);

• Small business (cash management, business financing, merchant card services, Internet banking); and

• Commercial financial services (business loans, financing, cash management, foreign exchange and employee benefits).

But it’s not just the services that are bringing in clients. “Union Bank represents superior customer service, which I feel people are looking for right now,” says Fedorchak.

“We’ve been fortunate that, as customers have come in [to the new branch], most have brought their full banking relationship to us,” continues the 20-year veteran of the local banking community. “So it’s not just a checking account or a savings account, it’s full-spectrum banking and financial needs. That’s what sets us apart.”

Moves in Marin

Prior to its acquisition of Tamalpais Bank, Union Bank already had long-established branch offices in Kentfield (since 1996) and San Rafael (2004), as well as one in Petaluma (2004). But, as Genevro explains, “We’re in an expansion mode and really wanted to solidify our footprint in Northern California. We’re based in San Francisco and have a strong presence throughout the East and South Bay, so adding branches in Marin and Sonoma really helped us ‘fill in’ our presence.

“Before acquiring the Tam Bank branches, our two Marin branches were part of the San Francisco North Bay region [to which the Sonoma County branches still belong]. Now we have a newly formed region in Marin County, with 10 branches and local management. I’m very excited about the increased presence in the North Bay.”

Marin County resident Monica Brazil, a longtime local banker who’s been with Union Bank for about a year, has been named Marin County regional manager. She’ll be based in Union Bank’s Northgate branch office in San Rafael, at the former Tamalpais Bank headquarters, where Union Bank has established administrative as well as private (wealth management) and priority banking offices. Her responsibilities are already growing: Union Bank plans to open a new branch location in Mill Valley’s Strawberry Village before the end of 2010.

Welcome to Sonoma

Fedorchak’s appointment to branch manager of the new outlet in Sonoma brings her full circle. “Twenty years ago, I worked in the same building,” she remembers, “only then it was Glendale Federal Savings.” Established as a bank in the 1890s, the building has been carefully restored and updated to meet seismic and ADA requirements.

“When I first worked here, I felt like I was walking into a history book,” she says. “It was an old Western bank with quilts hanging on the walls and figures staged on the balcony wearing bustle dresses and period outfits.”

Today, the structure’s essence remains, thanks to careful attention in the repair work: The balcony remains (sans figures), the high ceilings still feature molding detail, and historic town photos hang on the freshly painted walls. In September, the branch was awarded Special Recognition for Outstanding Historic Building Improvement Project by the Sonoma Chamber of Commerce. “The building means a great deal to the town of Sonoma,” says Fedorchak. “People are sentimental about it, and they didn’t like to see it sitting empty. So Union Bank restoring it was a gesture to the community.”

In response to such outreach efforts, says Fedorchak, the community has quickly embraced Union Bank as a partner. “We’ve been very well-received,” she says, citing significant growth in the bank’s customer base since May. “I think that’s a result of what Union Bank stands for, but also because of the reputations of the people we have on staff here.”

All Sonoma team members have long employment histories in local banking and, in many cases, in the Sonoma Valley as well. Among those who’ve joined the team are Sonoma resident Ulku Barrett as manager of the Priority Banking unit and Tim Warren as Private Banking manager. “Our histories in local banking have brought loyal customers to us, because they know and trust us,” says Fedorchak.

Bringing jobs to the North Bay

With each expansion, Union Bank creates jobs. According to Genevro, the bank has hired 13 new employees in Marin County since taking over Tam, with another seven expected to join in Mill Valley—managers, tellers and professional bankers. Fedorchak currently staffs seven full time and one part time in Sonoma. “Every expansion adds employees,” says Genevro, “and we’re committed to hiring locally.

“We tend to work with a five-year expansion plan,” she continues, “and we’d certainly entertain the idea of more branches in the North Bay—especially in Novato, Santa Rosa and Napa County.”

In addition to hiring on the local level, another expansion that will surely benefit the North Bay is Union Bank’s small business programs. “We’re getting more aggressive and have just made some new hires to lead our SBA Group,” says Genevro. “We think there’s real opportunity to partner with small business.” It’s another example of the community bank mentality that differentiates Union Bank from other banks of a similar scale.

Hands in the community

Every year, Union Bank donates 2 percent of its net profits to local nonprofits and community organizations. Each region has a committee comprised of local bank employees, who field requests and make decisions about where the money will go. Recipients differ depending on the local community needs, but overall, priorities include affordable housing, community economic development, education and the environment.

“We make a point of investing in local nonprofits and community support organizations,” says Genevro. Upon assuming Tamalpais Bank earlier this year, Union Bank promptly committed to uphold Tam’s longtime sponsorship of the Heart of Marin awards, hosted annually by the Marin Center for Volunteer and Nonprofit Leadership (the next awards will be presented in January 2011).

“When Tamalpais Bank closed, we were disappointed and concerned about what would happen, but Union Bank was eager to step in as the lead sponsor for Heart of Marin and also wanted to get involved with the Marin Human Race,” says Linda Davis, CEO of the Center for Volunteer and Nonprofit Leadership of Marin. “It was obvious the bank understood the value of an event that recognizes Marin nonprofits and their volunteers, and [Union Bank] seems committed to really becoming engaged in Marin and getting to know our community and organizations better.”

Union Bank has also already pledged support to a number of deserving North Bay groups, including Canal Alliance, Ecumenical Association for Housing (EAH) and Marin General Hospital Foundation in Marin County and, in Sonoma County, Becoming Independent, Sonoma Jazz Festival (benefiting music education in local schools), Boys & Girls Club of Sonoma Valley and Sonoma Valley Hospital Foundation, among others.

Fedorchak adds, “Union Bank is the second-oldest bank in California. The institution is very strong and stable, but it operates like a community bank—and that includes support of local nonprofits in the communities.

“I’ve been involved with this community and local nonprofits ever since I’ve been here,” says Fedorchak, a 25-year Sonoma Valley resident. “My involvement has contributed to some of the nonprofits that have been selected.”

In addition to sponsorships and monetary donations, Union Bank encourages employees to get involved in their communities through its Giving Back program, by paying salary for up to eight hours per year spent volunteering. “I believe it starts with me,” says Genevro. “I serve on various boards and volunteer in my community, and I encourage my regional managers to do the same—and to encourage their branch managers and employees as well.”

Experience counts

“I think our community needs a strong, solid bank that’s been around for as long as we have—we need that stability—but also one that can give back to the community,” says Fedorchak.

Evidence is on her side: “People in the community have reached out to us wanting to be our customers,” she says. “The thing that’s been so refreshing is, many of them are telling their family, friends, clients and colleagues. They’re bringing people in because of their own banking experience with us.”