I n April 2010, following a decision by the California Department of FinancialInstitutions, Marin County’s Tamalpais Bank was shuttered by the Federal DepositInsurance 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 tonine 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 thetown square in Sonoma, joining its six-year-old Petaluma branch to double its SonomaCounty presence. Clearly, there’s a new player in the North Bay banking scene.

“We’ve always had clients in Marin and Sonoma counties, even though we didn’thave many branches there,” says Mahla Shaghafi, senior vice president and wealthmarket executive. “Now we can offer those clients service closer to home.” Andwelcome new banking customers as well.

Union Bank makes a bold move into the North Bay banking arena.By Alexandra Russell

2 NorthBay biz Reprint from November 2010

Interior of Union Bank's Sonoma branch (Photo courtesy of Union Bank)

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A bit of backgroundUnion Bank may (so far) be relativelyunknown to the North Bay, but it’s nonewbie to the banking industry.UnionBanCal Corporation, the parentof Union Bank, N.A., is a whollyowned subsidiary of the Bank ofTokyo-Mitsubishi UFJ, Ltd.,UnionBanCal Corp. is a member ofMitsubishi UFJ Financial Group, Inc.,one of the world’s largest financialgroups. Union Bank itself is 146 yearsold; in 2008, its San Francisco mainbranch celebrated its 100th anniversary

(it was one of the first businesses to reopen after the 1906earthquake). Today, Union Bank operates nearly 400 branches inCalifornia, Oregon, Washington and Texas.

Despite its international connections and expansive westernreach, Union Bank’s philosophy is more in line with smallerbanking institutions. “We differentiate ourselves from ourcompetitors by being on the ground,”says Shaghafi, who leads Union Bank’sprivate banking in Northern Californiawith direct management offices in SanFrancisco; the East Bay; and Sonoma,Sacramento and Marin counties. “Wecan offer services to compete on a scalewith larger banks, but we operate likea community bank; decisions are madelocally. We consider ourselves partnerswith the communities we serve.”

“Union Bank is a relationshipbank,” says Molly Fedorchak, managerof the newly opened branch on thesquare in the town of Sonoma, “sowe’re not just about opening accounts.We’re about establishing long-termrelationships with our customers.

Banking for allUnion Bank has a solid reputation as a business bank, providingcorporate, commercial, business and small business services, with“a number of professional service firms as clients—medicalpractices, law firms, nonprofits and the like,” says Shaghafi, “butwe also offer services for private bank and retail banking clients.”

“We’re very safe and stable; we’re a full-service bank witheverything to offer,” says Senior Vice President and MarketPresident Elaine Genevro. “We try to localize our service as muchas possible within the branch offices by working with our internalpartners.” This means Union Bank has senior financial advisersassigned to every branch office, who will meet with customers attheir convenience.

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

• Personal banking (checking, savings, home equity, retirementplanning, 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, cashmanagement, 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 arelooking for right now,” says Fedorchak.

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

Moves in MarinPrior to its acquisition of Tamalpais Bank, Union Bank alreadyhad long-established branch offices in Kentfield (since 1996) andSan Rafael (2004), as well as one in Petaluma (2004). But, asGenevro explains, “We’re in an expansion mode and really wantedto solidify our footprint in Northern California. We’re based inSan Francisco and have a strong presence throughout the East andSouth Bay, so adding branches in Marin and Sonoma reallyhelped us ‘fill in’ our presence.

“Before acquiring the Tam Bank branches, our two Marinbranches were part of the San Francisco North Bay region [to

which the Sonoma County branchesstill belong]. Now we have a newlyformed region in Marin County, with10 branches and local management.I’m very excited about the increasedpresence in the North Bay.”

Marin County resident MonicaBrazil, a longtime local banker who’sbeen with Union Bank for about ayear, has been named Marin Countyregional manager. She’ll be based inUnion Bank’s Northgate branch officein San Rafael, at the former TamalpaisBank headquarters, where Union Bankhas established administrative as wellas private (wealth management) andpriority banking offices. Her

responsibilities are already growing: Union Bank plans to open anew branch location in Mill Valley’s Strawberry Village before theend of 2010.

Welcome to SonomaFedorchak’s appointment to branch manager of the new outletin Sonoma brings her full circle. “Twenty years ago, I worked inthe same building,” she remembers, “only then it was GlendaleFederal Savings.” Established as a bank in the 1890s, thebuilding has been carefully restored and updated to meet seismicand ADA requirements.

“When I first worked here, I felt like I was walking into ahistory book,” she says. “It was an old Western bank with quiltshanging on the walls and figures staged on the balcony wearingbustle dresses and period outfits.”

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

In response to such outreach efforts, says Fedorchak, the

4 NorthBay biz Reprint from November 2010

“We can offer services tocompete on a scale with largerbanks, but we operate like acommunity bank; decisions

are made locally. We consider ourselves partners with the

communities we serve.”—Mahla Shaghafi

Mahla Shaghafi is SVP andwealth market executive atUnion Bank.

3566 Airway Dr.Santa Rosa, CA 95403

707-575-8282707-546-7368

—REPRINT—from November 2010

Pages 54-59northbaybiz.com

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community has quickly embracedUnion Bank as a partner. “We’ve beenvery well-received,” she says, citingsignificant growth in the bank’scustomer base since May. “I thinkthat’s a result of what Union Bankstands for, but also because of thereputations of the people we have onstaff here.”

All Sonoma team members havelong employment histories in localbanking and, in many cases, in theSonoma Valley as well. Among thosewho’ve joined the team are Sonoma

resident Ulku Barrett as manager of the Priority Banking unit andTim Warren as Private Banking manager. “Our histories in localbanking have brought loyal customers to us, because they knowand trust us,” says Fedorchak.

Bringing jobs to the North BayWith each expansion, Union Bankcreates jobs. According to Genevro,the bank has hired 13 new employeesin Marin County since taking overTam, with another seven expected tojoin in Mill Valley—managers, tellersand professional bankers. Fedorchakcurrently staffs seven full time and onepart time in Sonoma. “Everyexpansion adds employees,” saysGenevro, “and we’re committed tohiring locally.

“We tend to work with a five-yearexpansion plan,” she continues, “andwe’d certainly entertain the idea ofmore branches in the North Bay—especially in Novato, SantaRosa and Napa County.”

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

Hands in the communityEvery year, Union Bank donates 2 percent of its net profits tolocal nonprofits and community organizations. Each region has acommittee comprised of local bank employees, who field requestsand make decisions about where the money will go. Recipientsdiffer depending on the local community needs, but overall,priorities include affordable housing, community economicdevelopment, education and the environment.

“We make a point of investing in local nonprofits andcommunity support organizations,” says Genevro. Uponassuming Tamalpais Bank earlier this year, Union Bank promptlycommitted to uphold Tam’s longtime sponsorship of the Heart ofMarin awards, hosted annually by the Marin Center forVolunteer and Nonprofit Leadership (the next awards will bepresented in January 2011).

“When Tamalpais Bank closed, we were disappointed andconcerned about what would happen, but Union Bank was eagerto step in as the lead sponsor for Heart of Marin and also wanted

to get involved with the Marin HumanRace,” says Linda Davis, CEO of theCenter for Volunteer and NonprofitLeadership of Marin. “It was obviousthe bank understood the value of anevent that recognizes Marin nonprofitsand their volunteers, and [Union Bank]seems committed to really becomingengaged in Marin and getting to knowour community and organizationsbetter.”

Union Bank has also alreadypledged support to a number ofdeserving North Bay groups, includingCanal Alliance, Ecumenical Associationfor Housing (EAH) and Marin General Hospital Foundation inMarin County and, in Sonoma County, Becoming Independent,Sonoma Jazz Festival (benefiting music education in localschools), Boys & Girls Club of Sonoma Valley and Sonoma ValleyHospital Foundation, among others.

Fedorchak adds, “Union Bank isthe second-oldest bank in California.The institution is very strong andstable, but it operates like acommunity bank—and that includessupport of local nonprofits in thecommunities.

“I’ve been involved with thiscommunity and local nonprofits eversince I’ve been here,” says Fedorchak,a 25-year Sonoma Valley resident.“My involvement has contributed tosome of the nonprofits that havebeen selected.”

In addition to sponsorships andmonetary donations, Union Bank

encourages employees to get involved in their communitiesthrough its Giving Back program, by paying salary for up to eighthours per year spent volunteering. “I believe it starts with me,”says Genevro. “I serve on various boards and volunteer in mycommunity, and I encourage my regional managers to do thesame—and to encourage their branch managers and employees aswell.”

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

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

“I serve on various boards andvolunteer in my community,and I encourage my regional

managers to do the same—andto encourage their branch man-agers and employees as well.”

—Elaine Genevro

Molly Fedorchak ismanager of Union Bank’sSonoma branch.

Elaine Genevro is SVP andmarket president at UnionBank.