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JULY/AUGUST 2011 

OFFICIAL PUBLICATION OF THE WASHINGTON BANKERS ASSOCIATION

KNOW THE LANDSCAPE ®

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Serving The Needs Of Washington Bankers Since 1889 

INSIDE THIS ISSUE 

JULY/AUGUST 2011 

5 Banking Industry Must Step Up to the Plate 

Jim Pishue, President & CEO, Washington Bankers Association 

7 Introducing WBA’s 2011-2012 Board of Directors 

8 Pushing the Pendulum 

Frank Keating, President & CEO, American Bankers Association 

10 Legislative Update 

Denny Eliason, WBA Lobbyist, Alliances Northwest 

OFFICIAL PUBLICATION OF THE WASHINGTON BANKERS ASSOCIATION 

On the Cover: Japanese Garden, 

by Photographer Bob Rollins, Edmonds, WA 

Cover Photo Submissions: WBA 

members are invited to submit photos 

for consideration. Direct submissions to 

lisha@wabankers.com. 

14 Upcoming Events and Schools 

15 2011 WBA/WFL Bankers Conference Highlights 

18 2011 Scholarship Recipients 

21 Introducing WBA’s Management Development Program 

23 What You Need to Know About Email Encryption and Archiving 

By John Pelley , CISSP, ISSAP, MBCI, Redhawk Network Engineering, Inc. 

ISSUES & ANSWERS is the official trade publication of the 

Washington Bankers Association. 

The views and opinions expressed herein are those of the individual 

authors and do not necessarily represent official statements of 

WBA policy, or its publisher Media Communications Group, Inc. 

Any legal advice should be regarded as general information. It is 

strongly recommended that one contact an attorney for counsel 

regarding specific circumstances. Likewise, the appearance of 

advertisers does not constitute an endorsement of the products or 

services featured by the Washington Bankers Association or Media 

Communications Group, Inc. 

25 Considerations for Banks Named as Parties in Eminent 

Domain Actions 

By Janis G. White & Charles F. Hudson, Lane Powell 

28 Federal Reserve Board Proposes New Remittance 

Transfer Regulations Under Dodd-Frank Act 

By Andrew J. Lorentz and Brian Hurh, Davis Wright Tremaine, LLP 

WBA STAFF 

Jim Pishue, President & CEO 

(206) 344-3485 

james@wabankers.com 

Liz Wilson, Executive Vice President 

(206) 344-3495 

liz@wabankers.com 

DessaMonica de Castro, Accounting Assistant 

(206) 344-3476 

dessa@wabankers.com 

Danielle Molle, Programs Administrator 

(206) 344-3475 

danielle@wabankers.com 

Monique Osbjornsen, Education Coordinator 

(206) 344-3494 

monique@wabankers.com 

Lisha Wood, Administrative Coordinator 

(206) 344-3484 

lisha@wabankers.com 

Gretchen Kirkpatrick, Database & Website Specialist 

(206) 344-3492 

gretchen@wabankers.com 

Peter Tang, Senior Accountant 

(206) 344-3472 

peter@wabankers.com 

WBA BOARD OF DIRECTORS 

Eric Pearson, Chairman 

President & CEO, Community 1st Bank, Kennewick 

Laurie Stewart, Chairman-Elect 

President & CEO, Sound Community Bank, Seattle 

Kerry Biddle, Secretary/Treasurer 

Senior Vice President, Bank of America, Tacoma 

Dave Straus, Immediate Past Chair 

President & CEO, Fortune Bank, Seattle 

Jim Mitchell, ABA Govt Relations Committee Rep. 

President & CEO, Puget Sound Bank, Bellevue 

Kurt E. Graff, WBA PROS Chairman 

President & CEO, Northwest Commercial Bank, Lakewood 

Laurie Stewart, WBA Education Committee Chair 

President & CEO, Sound Community Bank, Seattle 

Jim Carmichael, Director (term to 2014) 

President & CEO, Columbia Bank, Tacoma 

Melanie Dressel, Director (term to 2013) 

President & CEO, Columbia Bank, Tacoma 

Brian Hawley, Director (term to 2014) 

SVP & Regional President, Union Bank, Seattle 

John E. (Jack) Heath, Director (term to 2012) 

President & COO, Washington Trust Bank, Spokane 

Dennis Long, Director (term to 2013) 

CEO, Bank of the Pacific, Aberdeen 

Jim Mitchell, Director (term to 2013 

President & CEO, Puget Sound Bank, Bellevue 

Carol K. Nelson, Director (term to 2014) 

President & CEO, Cascade Bank, Everett 

Byron L. Richards, Director (term to 2014) 

Senior Vice President, U.S. Bank, Seattle 

Greg Seibly (term to 2014) 

President & CEO, Sterling Financial Corporation 

Patric Yalung, Director (term to 2013) 

Regional President, Wells Fargo Bank, Seattle 

www.wabankers.com 4


PRESIDENT’SMESSAGE 

Jim Pishue, President & CEO, Washington Bankers Association 

Banking Industry Must 

Step Up to the Plate 

We’ve all seen the phrase printed in small type on the bottom 

of countless raffle tickets: “Need not be present to win.” 

of the mouse our members can add important 

voices to our own chorus on an issue. 

However, when it comes to the halls 

of Olympia or Washington, D.C., 

the exact opposite is true. You 

must be present to win. 

WBA and our allies in the United Financial 

Lobby win our share of legislative battles. 

We have a strong presence: talented company 

and association lobbyists advocating 

on our behalf. We benefit from the relationships 

and credibility that local bankers 

build with their elected representatives. 

And we can call on experts to provide factual 

information on how pending legislation 

will impact our banks, our customers 

and our communities. 

But for all of these assets, the legislative 

calculus often includes other variables. 

Legislators may recognize that a bill isn’t 

ready for prime time, but if enough of their 

constituents flood their offices with calls, 

letters, and emails, they may be convinced 

to take action anyway. Politicians can be 

like rowers: they find it easier to go with 

the tide than against it. 

Enabled by new technologies, interest 

groups everywhere are mobilizing their 

members to produce a loud chorus that 

lawmakers can’t help but hear. Twitter and 

other social media tools provide constant 

updates on legislative developments. Email 

blasts deliver calls to action. And web-based 

tools put instant communication with 

elected officials only a mouse click away. 

Too often, consumer groups and social service 

advocates have outflanked financial institutions 

and other business organizations 

in pressing their agenda with lawmakers. 

At the WBA, we’d like to change that. 

We recognize that we’ll never be able to 

match the thousands of purple T-shirted 

“volunteers” routinely spilling off unionchartered 

school buses in the capitol 

parking lots. 

But we can do a better job of reaching and 

engaging our members in support of our 

government relations program. First, as 

we discussed at this year’s convention, 

we are significantly upgrading the WBA 

website. A major factor in the board’s 

decision to support this investment was 

the opportunity to leverage our web presence 

in our advocacy efforts on behalf of 

the industry. 

The update process will be completed this 

fall and I hope every employee of every 

WBA member bank will look forward to 

visiting www.wabankers.com then. It will 

be a valuable resource for people who are 

interested in issues impacting our industry. 

(And it will offer plenty of information 

on WBA programs that can help their 

careers along the way, too.) 

From time to time, the WBA website will 

feature a call to action. With a simple click 

5 

We also are working to augment our new 

and improved web tools with some good, 

old-fashioned grassroots organization. 

Our goal is to identify at least one WBA 

government relations coordinator in each 

and every member bank. In large banks, it 

might be an expert who is already engaged 

in our advocacy efforts. Or it could be an 

up-and-coming manager who would benefit 

from a broader industry perspective. In 

smaller institutions, it could be the CEO or 

another senior officer. Whoever is identified, 

that person will be our first point of 

contact for sharing legislative information 

and for requesting the timely engagement 

of that bank and its employees. 

Our hope is that identifying individual volunteers 

to take on these assignments will 

improve the number and diversity of probank 

comments reaching local lawmakers. 

It is a crucial next step in building on the 

firm foundation that has been created by 

our existing advocacy program. 

To take that step, we need you. If you are interested 

in serving as the WBA government 

relations coordinator for your bank, I urge 

you to talk with your CEO about the assignment 

and contact me at the WBA offices. 

Help us be present. And win. 

July/August 2011 ⏐

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WHEN IT HAPPENS, WE ARE THERE. 

You have opportunities, we help make them a reality. You face threats, we help find 

solutions. You need a firm deep in talent that addresses the full spectrum of banking 

legal needs, we have the team. For counsel that’s right on the money, call Foster Pepper.


WBA’s Board of Directors 

Chairman: Eric Pearson, 

President & CEO, 

Community 

1st Bank, Kennewick 

Chairman-Elect & WBA 

Education Committee 

Chair: Laurie Stewart, 

President & CEO, Sound 

Community Bank, Seattle 

Secretary/Treasurer: 

Kerry Biddle, 

Senior Vice President, 

Bank of America, 

Tacoma 

Immediate Past Chair: 

Dave Straus, 


Fortune Bank, Seattle 

ABA Govt. Relations 

Committee 

Rep: Jim Mitchell, 

President & CEO, Puget 

Sound Bank, Bellevue 

WBA PROS Chairman: 

Kurt E. Graff, 


Northwest Commercial 

Bank, Lakewood 

Directors 

Jim Carmichael 

(term to 2014) 

President & CEO, Kitsap 

Bank, Port Orchard 

Melanie Dressel 


President & CEO, Columbia 

Bank, Tacoma 

Brian Hawley 


SVP & Regional President, 

Union Bank, Seattle 

John E. (Jack) Heath 


President & COO, 

Washington Trust Bank, 

Spokane 

Dennis Long (term to 2013) 

CEO, The Bank of the 

Pacific, Aberdeen 

Jim Mitchell (term to 2013) 


Cascade Bank, Everett 

Carol K. Nelson (term to 2014) 


Cascade Bank, Everett 

Byron L. Richards 


Senior Vice President, 

U.S. Bank, Seattle 

Greg Seibly (term to 2014) 

President & CEO, Sterling 

Financial Corporation 

Patrick Yalung 


Regional President, Wells 

Fargo Bank, Seattle 

WBA’s Magazine Issues & Answers 

WINS TOP AWARD 

The Washington Bankers Association recently 

won the APEX Excellence in Publishing Award 

for their magazine, Issues & Answers. The APEX 

awards program is an international competition 

that recognizes excellence in publications work 

and communications by Fortune 500 companies, 

trade associations, nonprofits, academia, and the 

corporate world. 

Each year roughly 3,500 entries are submitted 

and reviewed by a panel of well-known industry 

judges and 100 awards are presented to honor 

outstanding work in eleven major categories. Additionally, 

there are a number of “honorable mentions” 

awarded recognizing exceptional entries. 

The APEX Awards program has been in 

existence for 23 years and is one of the main 

publishing competitions in the world that places 

emphasis on the quality of editorial content and 

the publication as a whole. 

Sharing in this award is the publisher, Media 

Communications Group, Inc. and newsLINK 

7 

Marketing & Professional Publishing Services, 

who provides sales, marketing and editorial 

services to Media Communications Group, Inc. 

Congratulations to WBA on a publication that is 

stellar in editorial content and a magazine that 

embodies the industry’s highest standards and 

reinforces WBA’s sterling professional image. 

Future copies of the Issues & Issues magazine 

can now have the APEX Award logo for the 

year 2011. 



WASHINGTONUPDATE 

Frank Keating, President & CEO, American Bankers Association 

Pushing the Pendulum 

I recently had the chance to speak before bankers gathered 

at ABA’s annual Regulatory Compliance Conference here 

in Washington. One takeaway for me was how very well 

served your banks are by these dedicated and professional 

compliance officers. 

A 

second takeaway is that compliance 

is an essential function within any 

bank. There are four legs that support 

the modern bank business model: management 

and employees; products and services; 

marketing; and compliance. Each element 

supports and is necessary to the others. 

In a perfect world, the banking industry 

would have an equal partnership with its 

regulators, who would be more vested in 

seeing banks succeed than writing them 

However, when regulations get in the way of 

your bank’s ability to serve your customers 

and grow your communities, things have 

clearly gone too far. I’ve heard that frustration 

expressed by many of you during my 

visits with you at state bankers associations 

around the country. You want to do the right 

thing, but the regulatory environment – the 

overall burden, the overkill and overzealous 

examiners – is blocking your path forward. 

We’ve got to work together 

to change that. In a perfect 

world, the banking industry 

would have an equal partnership 

with its regulators, 

who would be more vested 

in seeing banks succeed 

than writing them up on 

items where they’ve failed. 

ABA. (You might want to join ABA’s Open 

Compliance Committee, which “meets” 

every other month by regularly scheduled 

conference call. You can learn more about 

this committee on aba.com.) 

This way, when we meet with regulators 

and lawmakers, we can continue to effectively 

present the industry’s case by 

providing credible, real-world examples 

and anecdotes. These are things that will 

be remembered by policy makers. 

Ask for your staff members’ input and let 

us know what you’ve learned. Together, we 

can begin moving the regulatory pendulum 

back into equilibrium. 

Email Frank Keating at fkeating@aba.com 

up on items where they’ve failed 

The serious focus on regulatory is not without 

reason, considering the extreme swing 

of the regulatory pendulum that we’ve seen 

in the aftermath of the financial crisis and 

the passage of the Dodd-Frank Act. 

The truth is that the regulatory 

culture has to change. 

It’s a big challenge, but we have to begin 

moving towards that goal. 

How It starts with being involved. As I told 

the bankers at our Regulatory Compliance 

Conference, it’s important for bank CEOs 

to listen to their compliance staff members, 

and learn what is and isn’t working in their 

institutions. CEOs need to share this information 

with their state associations and 



Legislative Update 

by Denny Eliason, WBA Lobbyist, Alliances Northwest 

The 2011 Regular and Special Sessions of the Legislature 

proved to be some of the most challenging yet for our 

industry. Anti-banking bills were at the forefront of legislative 

issues from the time lawmakers convened in January through 

the final days of the Special Session in May. 

Lawmakers adjourned Sine Die on April 

22, two days before the scheduled end 

to the 2011 Legislative Session. They 

left Olympia without completing their 

most important task – passage of the 2011-2013 

General Fund Budget. 

The most controversial issues surrounded 

the General Fund Budget and the numerous 

bills necessary to implement the many 

governing reforms that were being 

contemplated to reduce state spending. 

Governor Gregoire immediately called lawmakers 

back into Special Session. It began on April 

26, and lasted for 30 days. The Special Session 

was mostly limited to bills related to the passage 

of the 2011-2013 General Fund Budget, the 

Transportation Budget and the Capital Budget. 

The most controversial issues surrounded the 

General Fund Budget and the numerous bills 

necessary to implement the many government 

reforms that were being contemplated to reduce 

state spending. 

The WBA was most exposed during the Special 

Session in the context of taxation. (All policy 

bills had been resolved to our satisfaction.) Lawmakers 

were constrained from raising taxes for 

the next two years by the protections contained 

in I-1053, which requires a 2/3 majority to raise 

taxes. Legislators could avoid those protections 

if they referred any tax measure directly to voters 

for approval. There were numerous proposals 

aimed at our industry during the Special Session, 

most of which focused on eliminating the first 

mortgage deduction. Here is a summary of some 

of those measures: 

HB 2078 – This bill received 

a great deal of attention by 

lawmakers in the House. It was 

signed by 48 members of the 

Democratic Caucus and sought 

to repeal the first mortgage deduction 

for earnings in excess 

of $100 million. The estimated 

$170 million raised by this 

proposal would be dedicated to 

K-3 education funding. The bill 

received a high profile hearing, 

and was passed to the floor of the House. Republican 

members “locked up” against this measure 

and remained steadfast in their opposition, based 

mostly on their belief that it would raise the cost 

of first mortgage lending. 

House Democrats did ultimately bring this 

proposal to a vote, and it failed by a 52 to 42 

basis, with four of our additional “no” votes being 

absent. The bill was brought to the floor by 

Democratic Leadership even though they knew 

it would not ultimately receive the 2/3 vote necessary 

to pass given the restrictions of I-1053. In the 

near future House Democrats strategically hope 

to use this vote when they legally challenge the 

constitutionality of the Initiative. 

The United Financial Lobby worked very 

effectively on this issue. All parties held together 

www.wabankers.com 10 

in opposition, even in the face of amendments 

proposed for the bill that would exempt smaller 

financial institutions. 

SB 5945 – Similar to HB 2078, this legislation 

sought to remove the first mortgage deduction. 

The proposal would have removed the deduction 

for banks doing business in more than ten 

states, and thus would only apply to the largest 

of national banks (it remains unclear whether 

the bill would have run afoul of federal law). 

The bill was brought up twice in the Ways and 

Means Committee, but the WBA had intensively 

lobbied lawmakers on both sides of the isle, and 

thus it failed to receive a majority vote of support 

from lawmakers. This vote was critical during 

the Special Session, but will also be important 

if there is a lawsuit challenging I-1053 as it will 

signal to a court that a majority of lawmakers in 

the Legislature did in fact oppose repeal of this 

tax treatment. 

SB 5944 – This legislation sought to remove 

the 2/3 vote protections found in I-1053 for tax 

exemptions. The bill had a referendum clause 

and thus would only require a simple majority 

vote of the legislature. The WBA worked directly 

with the rest of the business community in the 

Senate to ensure there is not a majority of votes 

available to pass this measure. That said, the labor 

community and social service groups put on a 

full court press in support of the bill. In the end 

this issue was hotly debated in the Special Session, 

but ultimately did not pass. 

HB 1768 & HB 2048 – Mortgage Lending 

Fee Proposals – During the 2011 Session the 

WBA defeated HB 1768. The measure sought to 

apply a $48 fee on the secondary sale of mortgages 

to help fund affordable housing programs. 

Ultimately our industry agreed not to oppose HB 

2048, a measure that would add a $10 fee to the 

recording fees that already exist in our State and 

are borne by homebuyers. HB 2048 ultimately 

failed to pass during the Special Session.


HB 1087 – State General Fund Budget – Job one for the Legislature was 

to pass a 2011-2013 General Fund Budget. Ultimately this was achieved on a 

rather unprecedented bipartisan basis. The $32.2 billion measure represents 

a budget that actually spends just shy of $2 billion more than the past biennium. 

That said, it also is the first budget in six years that does not spend 

more than the State is expected to receive in future revenues. Lawmakers 

did this largely through approximately $4.6 billion in spending cuts. 

It is hoped by all that this budget will be sustainable. In anticipation of further 

revenue challenges for the State, the budget does contain a reserve of 

$741 million. That said, the most current revenue forecast – that occurred 

after the Legislature went home – indicates revenue collections may be 

down as much as $570 million. 

2011 Regular Session Review 

The Legislature entered this Session with much discussion regarding bipartisan 

cooperation. Much of this was in reaction to the fact that the 2010 

elections brought both the House and Senate closer in terms of control. In 

the Senate, Democrats still held a 26 to 22 margin; but there were a number 

of moderate Democrats who made it quite clear that they had little interest 

in passing extreme legislation in the areas of budget, taxation or labor 

issues. In the House, Democrats controlled handily by a 56 to 42 margin. 

Moderate Democrats in the House were less organized, but still made their 

presence known. 

There were more than 2,180 bills introduced during the 2011 Session. The 

WBA directly tracked more than 240 bills, and actively worked more than 

100 of those measures. In the end, all of these measures were dispatched 

in a manner that was acceptable to our members. The United Financial 

Lobby – an informal coalition of banking organizations, individual banks, 

thrifts, credit unions, and other financially related interests – once again 

functioned very well and was instrumental in handling the sheer volume 

of legislation. The WBA chairs this organization. 

The following are a few of the highest priority bills that the WBA lobbied 

during the 2011 Regular Legislative Session. (Note: A nonpartisan review 

of these bills can be found on the Legislature’s web site at www.leg.wa.gov.) 

Mortgage Lending Issues 

1. HB 1362/SB 5275 – The leading non tax issue for banks in 2011 was 

foreclosure. Given there were more than 30,000 foreclosures in Washington 

State in 2010, lawmakers and leadership from both sides of the isle 

came to the WBA and asked that we work on legislation that would help 

to address this issue. HB 1362 in its original form would have resulted 

in an overly expensive, time-consuming, and litigious foreclosure process. 

An agreement was ultimately reached on a dramatically amended 

version of the bill after more than 36 hours of direct negotiation with 

lawmakers, the Housing Finance Commission, and consumer groups. 

The measure modifies current non judicial foreclosure statutes, with a 

focus on getting borrowers to housing counselors. Mediation can occur, 

but is restrained and reflects a balanced approach to mediation. Banks 

with 250 or fewer Notices of Default (NODs) per year are exempt from 

the $250 fee assessed on NODs to pay for housing counselors. Banks 

11 

with 250 or fewer Notices of Trustee Sale are exempt from the mediation 

provisions of the bill. While this bill is not one our industry would 

have requested, the amended bill is a dramatic improvement over the 

legislation as introduced and is in a form that we can accept. 

2. SSB 5590 – This legislation deals with short sales. As originally proposed 

it would have required banks to reply to a short sale offer within 45 days 

from the receipt of an offer. If a financial institution failed to respond 

it would be subject to actual damages and violations of the Consumer 

Protection Act. The bill was ultimately amended to remove the CPA and 

the time to respond was lengthened to 120 days. The WBA removed our 

objection to the bill once amended and it ultimately did pass. 

3. SB 5309 – Consumer groups pushed this measure as a companion to 

the larger foreclosure bill. It was a subtle attempt to discourage the use 

of the MERS system in the State of Washington, and also attempt to 

apply the Consumer Protection Act to the entire Deed of Trust Act. 

This bill was killed in committee, but only after a law firm representing 

trustee interests tried to resurrect the bill in an attempt to amend 

other Deed of Trust issues onto the bill. This irresponsible tactic failed 

and the bill was killed. 

State Bank of Washington 

1. HB 1320/SB 5238 – These two bills were a major push by labor unions 

during the 2011 Session. The measures received a great deal of attention 

from the press and had 27 sponsors in the House. The bills would have 

established the State Bank of Washington, a state sponsored financial 

institution that could compete with banks on virtually every financial 

product. The state bank would have been capitalized by requiring that 

all state funds be deposited in the new Washington Investment Trust. 

Jim McIntire, our State Treasurer, weighed in actively against these 

measures for a host of thoughtful reasons. (These measures quite clearly 

ran afoul of our State’s constitutional prohibition against the lending 

of the state’s credit.) The bills both received hearings and a great deal 

of support from labor unions and consumer groups. Ultimately, both 

died in committee. 

2. HB 2039 – This legislation was introduced late in the process by a 

member of the House Democratic leadership. The measure sought to 

establish the Washington Economic Prosperity Bank. This bank would 

manage the economic development grant and loan funds of the State, 

and also establish a single state financing authority that would have the 

ability to issue taxable and tax-exempt revenue bonds. The bill did not 

receive a hearing, but is expected to be considered in 2012. 

Street Utility Tax 

SHB 1929 – This legislation received a great deal of attention during the 

early months of the 2011 Session. Local governments continue to also face 

significant deficits within their budgets, and street maintenance is a considerable 

expense. The bill would have taxed retail businesses based on the 

“theoretical trips” generated by their customers. As a result, the measure 

LEGISLATIVE UPDATE — continued on page 13 


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lEGISLATIVE UPDATE — continued from page 11 

would have established a new and potentially substantial tax on our industry, 

as our branches would have been subject to the tax. The Association of 

Washington Cities and local government unions considered this measure 

one of their top priorities. The bill received a high profile hearing and was 

ultimately passed to the Rules Committee. It died in that committee after 

extensive lobbying from the WBA and the business community. 

Reflections on the 2011 Session 

The 2011 Legislative Session was yet again very active and challenging for 

the banking industry. Our industry faced powerful critics – labor unions, 

housing advocates and consumer groups – who were sophisticated, successfully 

exploited both traditional and social media outlets, and were fully 

financed. The foreclosure crisis and continued economic challenges again 

focused a great deal of attention on banks from lawmakers on both sides 

of the aisle and from the press. 

2011 ABA NATIoNAL 

AgriculturAl BAnkers conference 

November 6–9, 2011 JW Marriott Indianapolis Indianapolis, Indiana 

everything You Want to Know 

About Ag Lending… 

Get ready to focus on agriculture at the 2011 ABA National Agricultural Bankers Conference—the 

biggest and best of its kind. Presented in cooperation with the Indiana Bankers Association, this 

year’s event will take place at the brand-new JW Marriott Indianapolis hotel—the largest Marriott 

ever built. 

You’ll find timely information, insights on trends and a look at what’s just around the corner. Top 

experts will address farm real estate prices, financing farm real estate, the outlook for commodities, 

technology on the farm, how to effectively use social media for marketing and more. 

DoN’t DelAy! For more information and to register, go to aba.com/AgConference. 

To protect the positive banking climate in Washington State we will need to 

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grows in size and scope, explore ways to more effectively use social 

media, and make sure our public affairs strategy continues to complement 

our governmental affairs efforts. Please see Jim Pishue’s article for more 

information as to how we will be moving forward. 

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Upcoming Events 

August 

17 Deposit Documentation (PBS) 

18 Deposit Documentation (PBS), Spokane 

31 Directors Forum 

September 

1-2 Customer Lending School 

15 Train the Trainer 

21 Notary Public 

23 Regulatory Updates Forum 

26-28 Commercial Lending Institute 

October 

7 Technology and Fraud Conference 

9 Notary Public, Lynnwood 

20-21 Compliance Conference 

21 Notary Public 

26-28 Commercial Lending Institute 

November 

2-3 Agricultural Lending in Challenging Times, 

Kennewick 

4 CFO Conference 

9 Notary Public, Tacoma 

18 Women in Banking Conference 

December 

1-2 WBA/WFL CEO/Bank Director’s Conference 

Upcoming WBA Schools 

Consumer Lending Academy 

September 1-2, Seattle 

This two-day program is an interactive class that combines lecture, case 

study, and role play. It is intended to provide participants with the basic 

lending skills required to manage the bank’s consumer loan process. 

Today’s loan officer must master not only lending but sales skills, as 

well as regulatory compliance. Credit scoring alone cannot replace the 

judgment and analytical skills of the loan officer. The country’s economic 

downturn has complicated this job. Regulators have upped the ante as 

loan file administration is central to a good safety and soundness exam. 

The top performing banks in the country have 20% - 30% of their outstanding 

loans in consumer loans. The big advantages to these banks 

are higher portfolio yields and portfolio risk diversity. In addition, the 

consumer loan portfolio also generates fee income. In short, banks have 

to focus on this hidden source of business. 

Commercial Lending Institute 

September 26-28, Seattle 

Commercial and industrial lending has moved to the forefront for many 

banks. After years of extending loans to develop and support commercial 

real estate; bank loan portfolios have become heavily concentrated 

in loans secured by commercial real estate. Regulators are demanding 


that banks diversify their commercial loan portfolios to include more 

commercial and industrial loans, thus lessening the impact of commercial 

real estate loan concentration. The purpose of this three-day 

Commercial Lending Institute is to provide participants with the fundamentals 

required to be successful in the commercial lending process. 

This school will cover the major areas commercial loan officers must 

master in order to build a safe and sound loan portfolio. 

Agriculture Lending in a Challenging Environment 

November 2-3, Richland 

This two-day seminar, presented by Dr. David Kohl, Professor Emeritus 

at Virginia Tech, is specifically designed for current times and the challenges 

facing agriculture and agrilending. This program will examine 

the domestic and global economy impact on agricultural portfolios and 

individual credit and underwriting standards. Students will participate 

in case studies in which they will examine key ratios and financial 

benchmarks used in the agrilending field and the latest developments 

in financial and credit analysis as they apply to farm, ranch, and agribusiness 

loans. Dr. Kohl will also discuss growth and expansion traps as 

well as problem loan indicators and workout strategies that continually 

present challenges to agrilenders.


2011 WBA/WFL Bankers 

Convention Highlights 

Bankers, affiliate members, and vendors met in Cle Elum at the beautiful Suncadia Resort for the 10 th annual WBA/WFL 

Bankers Convention, held June 23-25. This year’s convention offered a packed exhibit hall, numerous opportunities for social 

interaction, and business sessions centered on the current state of the banking industry. 

Convention highlights included: keynote speaker, Matt Pieniazek, who discussed the “New Norm” in balance sheet management 

– developing the right strategies and the right processes; Kell Kelly, ABA Chairman-Elect and Melaine Dressel, President & CEO, 

Columbia Bank talked about ABA’s key initiative; economist Bill Fruth covered the state economy; and closing speaker Mark Adams 

encouraged attendees with a lively presentation on “How to Turn it around in Tough Times.” 

Attendees found this year’s convention to be well worth the price of admission. Several comments included: 

• “I always find the WBA Convention to be a good way to recharge my batteries. It is very healthy to get away from the bank 

for a few days to gain a better perspective on our industry” – Randy Fewel, President and CEO, Inland Northwest Bank. 

• Lori Drummond, President and CEO, Olympia Federal Savings said: “Attending conferences is a cost to the bank yet I 

consistently feel the WBA/WFL joint Convention pays for itself with great takeaways that can help improve our institution. 

• Laurie Stewart, President and CEO, Sound Community Bank stated: “Best return on time and money of any meeting I’ve 

attended this year.” 

Mark your calendar for next year’s Bankers Convention, Coeur d’Alene Resort, June 28-30, 2012. 

2011 WBA/WFL Bankers Convention Exhibitors 

The Washington Bankers Association and the Washington Financial League thank the following sponsors for their support of the 2011 

WBA/WFL Bankers Convention (exhibitors listed in bold are endorsed by WBA PROS): 

AccessPoint 

Aflac 

Allied Fire & Security 

Allied Solutions, LLC 

Cook Security Group 

Corrigan & Company 

Custom Card Systems 

Dell SecureWorks 

Financial Tools, Inc. 

Harland Financial Solutions 

HEIT 

IT-Lifeline 

Kaye-Smith 

Lane Powell PC 

Lee-Built Construction 

Management Services Northwest, Inc. 

Merchant Card Services - Columbia Bank 

Meyer-Chatfield 

National Equity Fund, Inc. 

NOVA Retail Group 

Office Depot 

OTR, Inc. 

Pacific Coast Banking School 

Payne Financial Group 

PayNorthwest 

Premier Data Corporation 

Professional Credit Service 

Sheshunoff Consulting + Solutions 

Solvport 

T.D. Service Company 

The Driftmier Architects, P.S. 

The Element Group 

TSI – Reconveyance Processing 

United Bankers’ Bank 

West Monroe Partners 

15 



2011 WBA/WFL Bankers Convention 

PCBS Graduates 

Bill Chatfield, Meyer Chatfield; Rick Shields, 

Whidbey Island Bank 

Audience 

Brandon Kowsky, Wells Fargo Bank; Randy and Jean Lambert, 

U.S. Bank National Correspondent Banking 

Jon Jones and Gordon Osberg, 

Washington Business Bank 

Matt Moran, Dustin Birashk, Moss Adams, Jeff Green, 

Moss Adams, Matt Deines; Sound Community Bank 

Jim Mitchell, Puget Sound Bank and Tom Giovanelli, 

Bank of the Northwest 

Jeffery Johnson, Bankers Insight Group, Jim Pishue, WBA, Wayne Mannie, 

Columbia Bank, Byron Richards, U.S. Bank 

Lori Drummond, Olympia Federal Savings, Holly Coburn, Harland Clarke 



2011 WBA/WFL Bankers Convention Sponsors 

The Washington Bankers Association and Washington Financial League thank the following sponsors for their support: 

Platinum Sponsors – $5,000 or more 

Gold Sponsors – $2,500 - $4,999 

Funding Services 

Silver Sponsors – $1,500 - $2,499 

HEIT 

Lee-Built Construction 

Pacific Coast Bankers’ Bank 

PRB Financial 

U.S. Bank National Correspondent Banking 

United Bankers’ Bank 

Coeur D’Alene Resort 

Davenport Hotel 

Doubletree - Seattle Airport 

Harbour Towers Hotel & Suites 

Hotel 1000 

Bronze Sponsors – $500 - $1,499 

Elliott Cove Capital Management 

Gift Sponsors 

LaConner Country Inn/Channel Lodge 

Mayflower Park Hotel 

Red Lion Hotel Olympia 

Semiahmoo Resort 

Silver Reef Hotel Casino and Spa 

Suncadia Resort 

Sunriver Resort 

The Fairmont Olympic Hotel 

The Westin Resort & Spa 

17 



2011 Legislative Luncheons 

Legislative luncheons will take place around the state this fall. We will 

review the 2011 legislative session, look ahead to what is in store for 

2012, and spotlight local issues of interest. Don’t miss an opportunity 

to meet and interact with your local state legislators. 

• September 19 – Hotel 1000, Seattle 

• September 26 – Red Lion Hotel, Pasco 

• September 27 – The Davenport Hotel, Spokane 

• September 30 – Wenatchee Golf and Country Club, Wenatchee 

• October 17 – Inn at Port Gardiner, Everett 

• October 18 – Harborside Bistro at Hotel Bellwether, Bellingham 

• October 19 – Hotel Murano, Tacoma 

• October 20 – Westin Hotel, Bellevue 

Cindy Larvick has joined West Coast Bank as 

Vice President - Relationship Manager, Portland- 

Vancouver. 

West Coast Bank has named Todd Van Cise Relationship 

Manager - Assistant Vice President for 

the Central Puget Sound region, operating from 

the Tukwila office at 400 Industry Drive. He has 

eight years banking experience managing commercial banking 

relationships and received a Bachelor of Arts in Business 

Administration from the University of Washington. 

Visit www.wabankers.com for details and registration information. 

Ella Donovan 

Bellarmine Preparatory 

Parent: 

Jill Donovan 

Columbia Bank, Tacoma, WA 

College Information: 

Washington State University 

Anticipated Major: 

Nursing 

2011 WBA Scholarship Recipients 

Kelli Gieser 

East Valley High School 

Parent: 

Betti Gieser 

Washington Trust Bank, Spokane, WA 


Spokane Community College 


Vision Care 

Alissa Mansker 

Lake Roosevelt High 

Parent: 

Jerri Smith 

North Cascades National Bank, Grand Coulee, WA 


Washington State University 


Education 

Elise Pettyjohn 

Wall Walla High School 

Parent: 

Michael Pettyjohn 

Baker Boyer Bank, Walla Walla, WA 


Eastern Washington University 


English/Creative Writing 

Jordan Pittman 

Manson Secondary School 

Parent: 

Todd Pittman 

North Cascades National Bank, Chelan, WA 


Whitworth University 


Education 

Emilee Smalley 

Puyallup High School 

Parent: 

Scott Smalley 

Kitsap Bank, Gig Harbor, WA 


University of Washington 


Nutrition 

Jiwon Song 

Kent - Meridian High School 

Parent: 

David Song 

Pacific International Bank, Tacoma, WA 


University of Washington 



Accounting or Business Administration 

Courtney Stanley 

Todd Beamer High School 

Parent: 

Kathy Stanley 

Columbia Bank, Kent, WA 


Highline Community College 


Biology 

Brianna Trafton 

Anacortes High School 

Parent: 

Michael Trafton 

Bank of the Pacific, Anacortes, WA 


New York University 


Business Studies 

Jacob Wimpenny 

Post Falls High School 

Parent: 

Donald Scott Wimpenny 

Sterling Savings Bank, Spokane, WA 


Lewis-Clark State College 


Pre-medicine 

Congratulations to all recipients of the $1,000 scholarship for the 2011-2012 academic year.


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Introducing Washington Bankers Association’s 

Management Development Program 

With today’s bankers facing economic, regulatory and 

competitive pressures, the need for strong leadership 

is as important as ever. Kicking off in September, the 

Management Development Program focuses on developing 

a solid understanding of the skills necessary to lead banks, 

employees and communities into the future. 

This six-course program includes a 

variety of teaching tools on management, 

leadership, sales and 

communication topics, and other 

topics of utmost relevance to today’s managers. 

Participants will be able to put lessons learned 

into practice immediately. 

“I am very excited about your new Management 

Development Program because I believe it fills a 

big need. We have managers who don’t have the 

‘vision’ to go to the next level and are not ready 

for the Executive Development Program. 

This program will help them learn more about 

what it takes to be a good manager and p 

repare them for the next step.” 

~Pat Floyd, Sound Community Bank 

The Big Picture 

This class will examine the recent financial crisis, 

how it is impacting Washington, the country 

and the world and will compare the differences 

among financial institutions such as credit 

unions, thrifts and commercial banks. This session 

will also broaden participants’ understanding 

of the complexities of the legislative process. 

Communications, Coaching and 

Conflict Resolution 

Sometimes we do a good job of communicating, 

mostly when there are no issues or 

concerns. But when perceptions differ, problems 

exist, or when people disagree with one 

another, expressing ourselves clearly becomes 

much more difficult. The 

major cause of conflict is the 

breakdown in communication. 

Whether it is problem 

solving, coaching employees, 

or saying something that others 

do not wish to hear, we 

can’t be successful without 

good communications. 

Leadership and Team 

Development 

With current resources 

stressed, bankers are called 

to innovate, challenged to 

experiment with new approaches, 

and stretch new 

skills in the present and distant 

future. Understanding 

the need and executing rapid 

solutions is paramount – a 

strong and confident leadership presence 

with an emphasis on course correction and 

employee development. 

Human Resources – It’s Not Just 

Paper Anymore 

Once HR was called Personnel and it was 

primarily an administrative function. Those 

21 

days are long gone. Now it is about organizational 

effectiveness, risk management, workforce 

development, and positive workplaces. 

This session will cover the territory that is 

now HR and the compliance environment. 

It will also cover the trends, what successful 

organizations do and the myriad of differing 

values and beliefs about work. Participants 

will receive a checklist for auditing HR along 

with an extensive handout packet full of 

resources designed to assist in tackling this 

major endeavor. 

Management and Mindset 

Bank managers and leaders have been challenged 

to broaden skills and stretch to a new 

level of influence – a stressful and seemingly 

daunting task to many. This transformation 

calls for a fresh state of mind, focused 

conversation and change, developing new 

skills and dusting off a few practices that 

worked in the past. Our mindset will require 

an attitude of solutions, an influential presence, 

and the development of self-directed 

employees. During this session we will roll 

out the new look of today’s bank manager: 

the needed knowledge, approach, and flexibility 

of successful teaming, influencing and 

managing change. 

Sales and Retail Management 

What does it take to manage a sales team, or 

better yet, how can you convert your current 

team into a top sales performers Is selling 

all about high pressure sales tactics or can 

you be a great seller by merely identifying the 

needs of your clients and offering products 

and services that truly fit their needs So 

whether your needs are how best to lead a 

sales team or how to strengthen your personal 

sales results, this class will prepare you 

to improve in both areas. 

Contact Danielle Molle, Programs Administrator, 

at 206-344-3475 or danielle@wabankers.com for 

more details and registration information. 



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Information Privacy and Legal Compliance for Your Email Communications 

What You Need to Know About 

Email Encryption and Archiving 

by John Pelley, CISSP, ISSAP, MBCI, Redhawk Network Engineering, Inc. 

Build Trust in Your Email Communications with 

Email Encryption 

Assure your clients, partners, and employees that emails tagged to contain 

sensitive data will not be visible to prying eyes. Today’s email encryption 

technology provides an easy-to-use secure communication channel to 

encrypt both outgoing email and replies, even if your recipient doesn’t have 

an encryption strategy in place. 

Email encryption in the market today includes onsite appliances that 

your organization can self-manage. The latest industry direction involves 

outsourced, cloud-based solutions or Software-as-a-Service (SaaS) email 

encryption. Cloud-based services make sense, because email is carried on 

the Internet while in transit. A cloud service can provide multiple email 

services from high availability facilities with professional 24/7/365 administration, 

monitoring and support. 

• Protect Your Assets with Encryption - Defined policies will shield 

sensitive company data from open Internet exposure. email encryption 

protects your sensitive email data from being transmitted 

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• Comply with Data Privacy and Security Regulations with Encryption 

- Use email encryption to comply with GLBA, Sarbanes-Oxley 

and PCI guidelines. 

for archiving. The documented email archiving policy and procedure 

must be adhered to. Your retention period could be from one 

to seven years. Management will need to decide the time period and 

include it in the policy. 

• An email archiving and storage solution utilizing either selfmanaged 

or outsourced technology. Email data must be archived 

to write-once media with the stated retention policy. 

With a reasonably priced solution and a documented policy, your organization 

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For more information and compliance questions, please contact John Pelley , CISSP, 

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Email archiving works with your email system to enable you to store, search 

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• To secure mission critical data with offsite storage for disaster 

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necessary component of a disaster recovery plan. A hosted archive 

solution will mitigate the risk of losing critical communications. 

• Establish an email archiving program and improve your legal 

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email may not be admissible in court. Your defense against 

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Email is legally admissible as a business record when a consistently applied 

method is utilized for archiving and storage. This approach complies with 

the chain of custody and rules of evidence legal precedents. A strong legal 

posture is achieved by: 

• A documented policy with stated retention period and procedures 

23 



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COUNSELOR’S CORNER 

Considerations for Banks Named as 

Parties in Eminent Domain Actions 

By Janis G. White & Charles F. Hudson, Lane Powell 

three phases: (1) adjudication of public use 

and necessity, (2) determination of just 

compensation to be awarded to the owner, 

and (3) payment of just compensation and 

transfer of title. 

In the first phase, the court must determine 

whether the proposed acquisition is 

actually for a public use and whether the 

acquisition is reasonably necessary under 

the circumstances. Challenges to public 

use and necessity are rare, but do occasionally 

occur. Lenders should monitor 

the public use and necessity phase of the 

case to make sure that the property owner 

raises any valid objections. 

Eminent domain or condemnation is the process by which the 

government is permitted to acquire a citizen’s private property, 

with due monetary compensation, for public use. Typically, 

property is acquired by the government through the use of 

eminent domain for public projects such as highways, parking 

structures, public utilities, public buildings and railroads. 

Section 16 of the Washington State Constitution states, “No 

private property shall be taken or damaged for public or private 

use without just compensation having been first made ...” 

More importantly, the lender will want to 

be sure the borrower/property owner presents 

strong arguments during the second 

phase, which is the primary trial on just 

compensation. The lender may not argue 

its particular interest at that stage, only the 

value of just compensation for the taking as 

a whole, assuming a single fee simple owner. 

Following the trial and absent agreement 

between the lender and the borrower, there 

is a post-trial apportionment hearing before 

the court sitting in equity (without a jury) 

to determine the lender’s share of the just 

compensation award. 

Property that is subject to being 

acquired by eminent domain is 

often encumbered by one or more 

loans. Lenders are required to be 

joined as parties in condemnation actions 

under Washington law. The lender has the 

right to obtain counsel and participate in 

the case along with the property owner 

and any other parties who have an interest 

in the property. Condemnation cases have 

25 

Most banks rely on the borrower’s counsel 

to make sure the just compensation award 

is appropriate during condemnation proceedings 

and that they do not engage separate 

counsel. Most of the time, that is an 

intelligent choice that saves legal expense. 

However, banks should not automatically 



assume that their interests will be protected by the property owner. 

Someone knowledgeable on behalf of the bank — an experienced 

credit manager, inside counsel or outside counsel — should carefully 

review the loan documents to determine the bank’s interest 

in the event of condemnation. They should also make the threshold 

judgment of whether the bank should retain its own counsel when 

the bank first receives notice of a condemnation proceeding. 

When an entire property is acquired or “taken” by eminent domain, 

the bank must be careful to be sure that it is paid in full. Depending 

on the amount of just compensation awarded, the bank’s security 

position could be in jeopardy. Similarly, if the government is only 

taking part of the property and that “partial take” causes substantial 

severance damages to the remaining property, the bank must be 

careful to protect its security position. Most courts in condemnation 

actions try to protect the adequacy of the bank’s security and 

limit the lender to recovery of an appropriate proportion of the 

just compensation award. 

There may be times when the bank is entitled to the entire just 

compensation award. For example, when a mortgage is foreclosed 

and a deed in foreclosure is delivered prior to an acquisition by 

eminent domain, the mortgagee’s interest is no longer a lien, but 

a fee interest. In that case, the mortgagee is entitled to the entire 

just compensation award. 

The condemnation of a property subject to a loan presents many 

choices for the lender. The bank may choose to put its relationship 

with the borrower ahead of strict compliance with the loan documents, 

even if the loan documents provide that 100 percent of all 

condemnation awards be paid to the bank. But, before choosing 

to rely on its borrower and borrower’s counsel, the bank should 

review the loan documents, its security interest and the nature of 

the government’s “take,” to determine whether it needs independent 

counsel to protect its security and receive the compensation 

that it is entitled to. 

Janis G. White is a Shareholder at Lane Powell, where she 

focuses her practice on complex commercial litigation, 

including banking, real estate litigation, condemnation, 

construction litigation, fiduciary litigation, securities, 

contracts, unfair competition and general commercial cases. 

She has practiced in federal and state courts and conducted 

bench and jury trials. Janis can be reached at whitej@ 

lanepowell.com or 206.223.7031. 

Charles “Chip” F. Hudson is a Shareholder at Lane Powell, 

focusing his practice in the representation of individual 

and corporate clients in a broad range of commercial 

litigation and alternative dispute resolution, including real 

estate, administrative law, securities and eminent domain 

matters. He can be reached at hudsonc@lanepowell.com or 

503.778.2178. 



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27 



Federal Reserve Board Proposes 

New Remittance Transfer 

Regulations Under Dodd-Frank Act 

By Andrew J. Lorentz and Brian Hurh, Davis Wright Tremaine, LLP 

Scope of proposed rules 

“Remittance transfers” under the proposed 

rules involve a request by a “sender” to 

make an electronic transfer of funds to 

a “designated recipient” that receives the 

funds in a foreign country through a “remittance 

transfer provider.” 

Business-to-business or business-toconsumer 

transactions, and transfers of 

$15 or less, are exempted. 

On May 23, 2011, the Board of Governors of the Federal Reserve 

(the Board) published proposed rules to regulate foreign 

remittances. The rules implement provisions of the Dodd- 

Frank Wall Street Reform and Consumer Protection Act (the 

Dodd-Frank Act) requiring disclosures and other consumer 

protections for remittances as a matter of federal law for the 

first time. The new requirements may improve transparency for 

senders of remittances, but their complexity and prescriptive 

nature seem likely to increase costs for providers. 

Cash remittances from the United 

States to foreign households have 

traditionally been regulated at 

the state level under state money 

transmitter statutes and Article 4A of the Uniform 

Commercial Code. The Dodd-Frank Act 

changed this balance by amending the Electronic 

Fund Transfer Act (EFTA) to broadly 

define remittance transfers to include transactions 

that traditionally have not been governed 

by EFTA, such as consumer wire transfers. New 

rules under Regulation E would require both 

financial and non-financial remittance providers 

to deliver rate and fee disclosures (in both 

English and the sender’s foreign language), 

investigate and correct errors, and provide 

cancellation rights and refunds at no additional 

cost to the sender. 


“Remittance transfer providers” would 

include both financial and non-financial 

institutions, but payment networks are not 

considered remittance transfer providers 

to the extent they only provide third-party 

payment and settlement services. If, however, 

the sender uses a debit or credit card 

issued by a payment network to transfer 

funds to a designated recipient, such 

transfer would be a “remittance transfer” 

and the payment network would be considered 

a “remittance transfer provider” 

in this case. 

Transactions that traditionally have not 

been subject to EFTA, such as cash-based 

remittances sent through money transmitters 

and consumer wire transfers made 

through banks, would fall within the scope 

of the proposed rules. The proposed rules 

would also apply to certain transfers not 

traditionally considered to be remittances, 

such as online bill payments to a designated 

foreign recipient. 

Disclosure requirements 

The proposed rules would require remittance 

transfer providers to give senders


specific disclosures about the transaction, including a pre-payment 

disclosure that sets forth the amount to be received by the 

designated recipient, fees and taxes, the applicable exchange rate, 

and the total transaction amount. The provider must also provide 

a post-payment receipt that includes the pre-payment disclosure 

information, as well as the promised date of availability; recipient 

and remittance transfer provider contact information; a statement 

of the sender’s error resolution and cancellation rights; and instructions 

on how to contact a state agency with jurisdiction over 

the remittance transfer provider, as well as the federal Consumer 

Financial Protection Bureau, with questions or complaints. 

The proposed rules would require the disclosures to be made in 

English as well as the “primary” language used by the provider to 

“advertise, solicit, or market remittance transfer services, either 

orally, in writing, or electronically, at that office.” 

Error resolution procedures 

Proposed error resolution procedures are similar in important 

respects to those applied to EFTs under existing Regulation E. In 

general, a sender must give notice of an “error” within 180 days 

of the promised delivery date. This notice triggers the provider’s 

duty to investigate and determine, within 90 days of receipt of 

the notice, if an error occurred. The provider must report the 

results to the sender within three days of completing its investigation 

and correct the error within one business day or “as soon 

as reasonably practicable after” receiving instructions regarding 

the sender’s preferred remedy. There is no ability to “provisionally 

recredit” the sender and extend the time period for investigation. 

These procedures do not apply to a mere inquiry into the status 

of a transfer or to transfers of $15 or less. 

Cancellations and refunds 

The proposed rules give senders a right to cancel a remittance 

transfer orally or in writing if made within one business day after 

payment is made, provided that the funds have not yet been picked 

up or deposited into an account of the designated recipient. The 

provider must issue a refund of the total amount, including any 

fees imposed, within three business days of receiving the cancellation 

notice, at no additional cost to the sender. 

For more information, contact Davis Wright Tremaine LLP partner Andrew 

Lorentz (202.973.4232 or andrewlorentz@dwt.com) or associate Brian Hurh 

(202.973.4279 or brianhurh@dwt.com). Davis Wright Tremaine’s Finance 

and Commercial Transactions team assists international, national, and 

community banks in a wide range of regulatory, transactional and litigation 

matters. See www.dwt.com for additional information about our capabilities 

and experience. 

Regulatory Updates Forum 

September 23, 2011 • Washington Athletic Club, Seattle 

Dodd-Frank Act, Consumer Financial Protection Bureau, and More: 

An Update on the Regulatory Scene in the Other Washington 

Over a year has passed since Congress passed the Dodd-Frank 

Act (DFA) and regulators are far from finished in adopting 

the several hundred regulations mandated by DFA. However, 

despite slipping deadlines, the regulatory agencies are hard at 

work in pumping out new regulations even as Congress debates 

changes in DFA dealing with the structure and financing 

of the Consumer Financial Protection Bureau (CFPB) while 

considering other changes in the DFA. 

This program will provide bankers, including CEOs, directors, 

executive and senior management, compliance officers and other 

appropriate bank personnel, with the up-to-date status of this 

rule-making process, including: 

• A progress report on the implementation of key 

regulations mandated by DFA 

• Potential risks and consequences during the transition 

to the new regulations 

• A status report on the start-up of the new CFPB and the 

challenges it presents for bankers 

• Changes taking place in the mortgage arena as new 

disclosure forms are developed and tested 

• Basel III and how it will interact with existing and 

pending capital and liquidity regulations 

The 2011 Regulatory Updates Forum will feature top-notch 

speakers including: 

• Wayne Abernathy, Executive Vice President, American 

Bankers Association 

• Bert Ely, Financial Institutions Consultant, Ely & 

Company, Inc., Alexandria, VA 

• Rick Riccobono, Director of Banks, Department of 

Financial Institutions, Seattle, WA 

• Mark Olson, Co-Chairman, Treliant Risk Advisors LLC, 

Washington, DC 

29 



Attorneys 

Davis Wright Tremaine LLP............................................ Page 19 

Foster Pepper PLLC........................................................... Page 6 

Graham & Dunn.................................................................. Page 9 

Lane Powell........................................................................ Page 2 

Business Continuity & Disaster Recovery 

IT-Lifeline..........................................................................Page 24 

Card Processing 

Merchant Card Services..................................................Page 24 

Cash Flow Funding 

Northrim Funding Services............................................ Page 31 

Correspondent Banking 

United Bankers’ Bank...................................................... Page 12 

Credit Risk Management Solutions 

Harland Financial Solutions............................................ Page 19 

Education 

Pacific Coast Banking School.........................................Page 22 

Employee Benefits 

Northwest Financial Associations’ 

Employee Benefit Trust...................................................Page 20 

Financial Services 

Federal Home Loan Bank................................................Page 27 

Pulse..........................................................................Page 26 & 27 

Sandler O’Neill + Partners............................................... Page 3 

Foreclosure Processing 

TD Service.........................................................................Page 23 

Insurance 

Propel Insurance..............................................................Page 22 

Retail Investment Programs 

Elliot Cove Capital Management...................................Page 32 

Security 

Allied Fire & Security.......................................................Page 24 

Redhawk Security............................................................Page 30 

Transfer Agents 

OTR.................................................................................... Page 13 

IT audit and managed security 

services for community banks. 

Introductory offer for WBA Member Banks: 

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review at no charge. 

Offer good through June 30, 2011. 

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With our creative approach to cash flow funding 

and workout situations, Northrim Funding 

Services offers a partnership you can bank on. 

In today’s business credit environment, many of your commercial 

borrowers may find that they are unable to maintain compliance 

with loan covenants and agreements. Others may experience a 

deteriorating financial position that places the company in jeopardy 

of exceeding their approved loan advance ratios to meet payroll, 

taxes and operating expenses. 

Working together, Northrim Funding Services may provide the 

operating capital that your customers need, while you retain the 

longer-term deposit, fee-based services and client loyalty. 

Bankers helping bankers. 

Dan Lowell 

Senior Vice President 

and Division Manager 

(425) 453-1105 

dan@northrimfs.com 

Paul Kirschner 

Vice President and 

Relationship Manager 

(425) 453-1105 

paul@northrimfs.com 

Northrim Funding Services 

170 120th Avenue NE, Suite 202 

Bellevue, WA 98005 

Telephone: (425) 453-1105 

Fax: (425) 453-1205 

northrim.com

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