OCMetro Business - (Henry Walker, CEO Farmers & Merchants Bank)

Lessons I learned at the Winter Olympics

Fri, 26 Feb 2010 12:29:00 GMT

As an avid skier and snowboarder, I was elated to join the throngs of snow-sport enthusiasts from all parts of the globe for the 20th annual Winter Olympics in Vancouver. To be a part of this global competition was a rare opportunity, and I wanted to make every minute count. With only a few days to soak in the Olympic spirit, my companions and I hit the ground running once we stepped foot on Canadian soil. Trekking through the Olympic jungle, being a guest at sponsored events for skiers and snowboarders, as well as attending other attractions kept us in a frenzy of activity around the clock. The Monster Energy Drink became my constant companion, serving as the catalyst to refuel my body to make sure I didn’t miss a moment of this unforgettable milestone.

Our first event was a hockey match between the Czech Republic and Sweden, two of the top four teams in the world. The fervent intensity of the players was at an all-time high throughout the game, but in the end, the Czech Republic won. As a business competitor, I thought of how the Czech Republic team worked together to achieve the goal and how that same spirit could drive a business organization to produce effectively and maximize efficiency as a united force. Each player was reliant on the other to move forward, which can be a powerful tool in the workplace. Witnessing Lindsey Vonn’s remarkable performance skiing in the Super G with everyone cheering, I wondered how much time, training and tactical strategy it took for her to overcome her shin injury and focus on the finish line. Her ability to not only compete in this event but to ski away with silver speaks volumes about her tenacity and drive. If you translate this determination into the business world, then the current economic climate would only present obstacles unable to hinder those who continue to persevere.

The push for Canadian Olympians to get gold as the host country was strong. It was shocking to watch the Canadian bobsled team flip over at a moving speed of 90 mph. The team members pushed themselves too hard, which reminded me of how important it is to be realistic about your goals. We were on top of the hill watching Bode Miller ski the Super G when the crowd erupted as he won gold. We also got to see Jon Montgomery take the gold in the skeleton. As I witnessed these athletes miraculously perform to new heights, I thought of all the years of dedication that brought them to this point. They were at the pinnacle of their careers finally receiving the recognition that was years in the making.

I found myself asking, “How do you create this same type of discipline to build a high-performing company?”

Watching these Olympians in action reminded me of how their personal drive and consistent dedication equipped them to be the best at their game. There were many moments to be remembered in the whirlwind of the Olympic Games, and I hope these lessons will continue to inspire us as we dedicate ourselves to driving our businesses forward.

Merry Christmas from Farmers & Merchants Bank

Wed, 16 Dec 2009 13:19:00 GMT

2009 has flown by, and it seems like just yesterday I was writing a post about “Helping in the new year.” For 2010, the message of giving in our communities is no different, as there are a number of people who still need assistance in some shape or form. Whether it is adopting a family for the holidays, volunteering at a local soup kitchen or simply giving a couple dollars to a charitable organization, there are plenty of opportunities to lend a hand without breaking the bank.

If you would like to help but you don’t know where to start, you can visit the Volunteer Center Orange County in Santa Ana or the agency's Web site at volunteercenter.org. This organization works with several other nonprofits and can assist in directing you to a nearby volunteer center or provide donation opportunities.

Many organizations are doing amazing things for the community, and I have been fortunate enough to work with some, such as Big Brothers Big Sisters of Orange County and Susan G. Komen for the Cure. Be sure to visit these foundations' Web sites and continue to search for opportunities to give back to your community throughout the year, because giving is never out of season!

Farmers & Merchants Bank wishes you and your family a Merry Christmas and a prosperous New Year.

Remarkable Women

Thu, 29 Oct 2009 08:48:00 GMT

It was just last week that I was standing in front of a room full of ladies to recognize Remarkable Women who have made incredible strides in business and embody the spirit of courage, hope and inspiration amid periods of financial uncertainty.

This annual gathering by the National Association of Women Business Owners inspires me to see how women are carving out a strong position in the marketplace, which, in turn, gives me a vision for what my daughters can achieve in the future. The road has been paved for them to pursue a career in the industry of their choice and to not be confined by the gender roles that have suppressed women in the past.

I think of this as I jump on a plane to visit my teenage daughter who is going to school in Pennsylvania. She is bright, dynamic and incredibly intelligent. I can see her striving to be a mover and shaker as a business owner or executive in a thriving institution, and I’m excited at the limitless possibilities she has ahead of her. I am proud of who she is and what she has accomplished thus far. And I look forward to her making an impact in her community and business in the future.

This year, each of our F&M branches in Orange County is recognizing a businesswoman through our Women of Courage program. Our mission is to continue the spirit of celebrating courageous women as the theme sponsor for NAWBO-O.C.’s Remarkable Women event. Our 2009 Women of Courage are:

Agnes Green, Green’s Discount Glass
Janet Newman Ferguson, Newman Backhoe Inc.
Robin Matherson, Mission Motorsports
Annette Derosa, Blenders and Soft Serve Inc.
Jeanne Scott, The Waffle Lady
Leslie Siegel, California Closet Co.
Katherine Litton, self-employed real estate investor
Diane Adams-Rehrig, Diane R. Adams Insurance Agency
Renee Ramos-Hitzel, Program Management International Inc. (PMI)
Jenny Rosoff, Village Green Foods

We will honor these 10 extraordinary women who have shown tenacity – many in the face of formidable challenges – at F&M’s Women of Courage breakfast in Tustin on Oct. 29. I encourage you to celebrate Remarkable Women Month by acknowledging the inspiring women in your life.

The meaning behind Music for the Cure

Mon, 14 Sep 2009 08:47:00 GMT

In this time of hardship, it has become necessary to break out of the box in our strategic thinking and find new ways to promote our causes. Serving as a board member for the Pacific Symphony and an advocate for breast cancer awareness as a Pink Tie Guy for Susan G. Komen for the Cure, it is my mission to increase exposure for each organization. Identifying new ways to raise funds for each one individually evolved into the idea of merging the two organizations for a big event.

It is unusual for an arts organization to align itself with a health-related cause, but this partnership brought innovative ways to capture new audiences, create a buzz for both organizations and, most importantly, amplify the message of breast cancer awareness. When the organizations came together to find common ground, the Pacific Symphony discovered the impact of breast cancer within its own orchestra. The assistant conductor, Maxim Eshkenazy, was still recovering from the loss of his cousin and music instructor who inspired him to play the violin, eventually leading him to become a conductor for a world-renowned orchestra.

Music has obviously played a large role in the lives of the Pacific Symphony members, and Komen also recognized the healing power of music to ease pain and suffering for women who are in the fight of their lives. Out of this recognition, the first-ever Music for the Cure was born.

The Pacific Symphony’s annual “Tchaikovsky Spectacular” took on a pink hue on Saturday night at the Verizon Wireless Amphitheater. The evening ended with Tchaikovsky’s 1812 overture, climaxing into a burst of thundering canons and spectacular fireworks to commemorate breast cancer survivors who have overcome a devastating disease that affects one in eight women nationally.

The first-ever Music for the Cure provided an opportunity for the general public to support breast cancer awareness and the preservation of music – two key programs in Orange County. The convergence of these organizations created a new role model for partnerships that are necessary during these difficult times.

My climb to view Machu Picchu

Thu, 20 Aug 2009 12:49:00 GMT

It had been 22 years since I'd climbed Huayna Picchu, the famous mountain in Peru that overlooks Machu Picchu – aka the “lost city of the Incas.” I'd been reflecting on the majestic view I had witnessed as a young man, and I had been anticipating this hike for weeks. Now, I was going to behold this majesty with my two teenage daughters, gaining a whole new perspective from their vantage point.

We were worn out from the grueling hours of traveling, and the morning came early with a wake-up call at 5:10 a.m. I had barely opened my eyes when my oldest daughter, Maddy, called, distraught about a toothache that had kept her up all night. She had recently undergone several fillings – with one more to go – and her tooth was in excruciating pain. As a father, it was a tough decision: Do I encourage her to stay behind and rest or motivate her to forge ahead for this once-in-a-lifetime view? The hike, which is a fairly vertical 1,000-foot climb and could be dangerous, would be challenging. We would have to move quickly, since it was restricted to 200 people at 7 a.m. Fortunately, before I could steer Maddy either way, my younger daughter Danielle balked at the thought of her older sister getting out of the climb. She gave her the evil eye, and they were both onboard.

We didn’t think we were going to make it in when we approached the line of more than 500 people. We barely made it through, and Maddy was the first one on the trail. The girls did great, and despite her toothache, Maddy performed marvelously. Danielle was a little uneasy since she is afraid of heights. We stayed together as a family and made it up in 45 minutes. It is an arduous hike with hundreds of uneven steps. As we climbed to the top, the view was indescribable! It was absolutely breathtaking! Parks in places like Yosemite and Hawaii may parallel the beauty of Machu Picchu. The area is magnificent, and we took several pictures to try and capture the extraordinary scene.

The descent was hard, and Danielle had difficulty looking down, but we were at the bottom in 30 minutes and back to the hotel to eat after working up an appetite. Before we knew it, we hopped on the train to our next destination. My daughters and I spent the day laughing and experiencing one of the most amazing sights in the world; it doesn’t get much better than that as a father.

'No one has ever become poor by giving'

Tue, 28 Jul 2009 11:40:00 GMT

In times of financial turmoil, the human instinct turns toward self-preservation; people naturally want to take care of themselves and their families first, and there’s nothing wrong with that. But in times like these, it is also easy to push aside the fact that there are others in dire need of help. Nonprofits are being crippled by the current state of the economy and need our help and assistance.

Anne Frank once wrote, “No one has ever become poor by giving.” That's why I have dedicated myself to Big Brothers Big Sisters of Orange County. This organization is one that really impresses and inspires me because it is a perfect example of how you can help without feeling like you have to give thousands of dollars. I find Big Brothers Big Sisters to be such an inspiration, especially in times of financial distress. Through Big Brothers Big Sisters, children’s lives are being changed for the better, enabling our future generations to be educated, confident and well-rounded. This is essential to providing for our own well-being, as well as that of our planet, and yes, our economy.

Get back on the horse

Tue, 07 Jul 2009 13:18:00 GMT

While playing polo last week, I was thrown from my horse. The unexpected jolt left me on the ground, checking my head and the rest of my body for any serious injuries. Luckily nothing was broken, and I was still breathing.

I returned to work at the bank the next day and everything was foggy, to say the least. It was a struggle to focus on the things that normally would be routine. But there was work to be done, and I couldn’t afford to neglect any responsibilities while the rest of my family and staff continued their hard work.

I know this struggle is what many people are facing every day in the current recession. Although we all may not be in physical pain, a fiscal pain is affecting us all, and that continual discomfort we feel from dismal news headlines lingers in the back of our minds as we try to push through daily tasks. It’s painfully obvious that it’s not business as usual, although many of us try so hard to make it seem as though it is.

The country has been thrown from its horse, after enjoying years of financial bliss. While we spent some time checking our pulse, trying to decide who is to blame for this economic catastrophe, we are still alive. Sure it’s scary, and there’s no guarantee that we won’t be thrown off again. But we can take steps to ensure that we will be better prepared. Although there’s still a tough journey ahead, it’s now time to get back on the horse and ride toward recovery.

Strength in family

Wed, 24 Jun 2009 14:12:00 GMT

Although it may not be the most celebrated day in the U.S., Father’s Day has always been a special holiday for my family. At this time of year, every day feels like Father’s Day. My brother and I have the privilege of working with my father, Ken, to help run the bank. He continues to teach us the value of hard work by his dedication to our customers after 60 years of service, operating functions at the main branch and sharing lunch with my brother and I several times a week.

My own kids are a reminder of what I cherish most in life. I see the sparkle of youth in their eyes. I’m enjoying having my daughter, Danielle, home for the summer, so I can spend time with her, my daughter, Maddy, and son, Charlie. I’m finding that as we all grow older, it has become more difficult for us to invest time to spend with each other. I am learning the significance of my relationships with them and cherish the moments we spend together.

The past year has been a rough ride for many people, and although we now are seeing glimpses of light at the end of the tunnel, I know we can’t expect the economy to remedy itself next week. While financial stress can take a toll on one’s overall mental well-being, I encourage everyone to use Father’s Day as a reminder of the things that are important in our lives – our loved ones.

Solutions for summer

Tue, 02 Jun 2009 11:48:00 GMT

Summer is around the corner, and my kids will be out of school soon. While I am looking forward to spending quality time with them, I am also looking for ways to keep them busy. As much as we, as parents, would enjoy a three-month vacation, it’s unlikely that many of us will have a chance to get away – much less take time off from work to spend with our kids in the struggling economy. I see the summer break as an ideal time for children to learn valuable skills and the importance of a strong work ethic. When I was growing up, I spent most of my summers taking care of horses at the stables, working hard for a small fee. I don’t anticipate my teenage daughters will be able to find a job in the current market, so I have to think of other ways to keep them occupied. I have a feeling that I’m not alone in this endeavor and want to share some thoughts and ideas I am considering.

Volunteering: Find an organization for your kids to get involved with in some capacity. Many nonprofits need additional help but can’t afford it. This will provide kids with the opportunity to grow, learn and gain hands-on experience giving back to the community. One of the organizations I am considering for my teenage daughters is Lighthouse Community Center in the heart of Santa Ana. This center provides educational programs for struggling families and children who are susceptible to getting involved with gangs and drugs. I am also looking at paying each of them for the time they dedicate to volunteering, since the odds of them being able to find a job in this market are slim.

Summer School: This is a good idea for kids so they can focus on one subject and excel. Whether it’s a general requirement, fitness or drama class, it will be time well spent.

Humanitarian Trips: While this requires some planning beforehand to raise money for sponsorship, it can open doors for kids to experience the world through a whole new set of eyes. My daughters and I went on a mission trip to Peru last summer that was life-changing. We helped hand out medical supplies, assembled wheelchairs and distributed them to those suffering in a third-world country. The experiences we had were unforgettable, and they are causing me to consider returning to Peru with my daughters this July.

Whatever our kids end up doing this summer, it’s important to direct and guide them to activities that will not only keep them busy, but also build their character and help them make an investment in their future.

AIG: The outrage is justified

Fri, 27 Mar 2009 14:07:00 GMT

The entitlement of performance rewards at the cost of others on the part of AIG executives has sparked public and political outrage, for we as a nation have become highly sensitized to the excesses and financial recklessness that resulted in this quagmire. No longer will we stand by and watch silently as failed corporations distribute undeserved perks with the very public money meant to keep their operations afloat.

In the immensity of a corporation like AIG, morality has been lost to bureaucracy, hidden agendas and priorities that are utterly misplaced. AIG is not alone, as Merrill Lynch grossly distributed bonuses totaling $4 billion dollars to the very people responsible for the brokerage firm’s demise. As the nation watches in horror the overwhelming greed of these government-salvaged entities, we are awakened to the importance of upholding our integrity. It is vital for us to pay close attention to and preserve the interests of our shareholders, customers and employees. These are the people who, if treated well, will hold fast through this economic downturn and continue to maintain the business when it passes.

If a bright spot is to be found in this storm, may it be that both private and public sector spending, lending and borrowing will return to the values of moderation. It has been said that those who forget history are doomed to repeat it, and as such, my hope remains that this trying time will long be remembered for its lessons and morals.

Integrity

Fri, 13 Feb 2009 09:37:00 GMT

People like Bernie Madoff and former Illinois Gov. Rod Blagojevich are making headlines for abusing their power and allegedly defrauding the system. The breakdown in the moral compass of many of our financial leaders continues with the spending sprees of crippled financial institutions funded by taxpayer assistance (forbes.com; chicagotribune.com; and usatoday.com).

The reality of these bad decisions has many people, including myself, scratching our heads. How do those at the top lose sight of their moral compass? When does integrity take a backseat to greed?

The decision-makers who have ended up in the news recently were not motivated by their moral meter, but by their own financial gain. The financial fallout we are facing is a result of the lack of integrity by those steering the economic ship, and it should be referred to as a crisis of integrity.

I could pontificate about this, but what really matters is how we respond and what we glean from this moral mess. I believe integrity is not just doing the right thing; it’s also a matter of having the right heart and allowing the person you are on the inside to match the person you are on the outside.

It is in the small decisions that our character is defined, so that when we are faced with the difficult ones, we can stand firm on what we believe is right and true. I am not without fault. But I have been fortunate to be guided by a team of men who are full of integrity. My great-grandfather, C.J. Walker, who started Farmers and Merchants Bank, was faced with the challenge of averting a run on the bank in the recession of 1907 and ultimately helped the bank withstand the financial crisis of the Great Depression. He chose to honor his customers and navigated his way through one of the most difficult periods in our nation’s history (nawbo-oc.org).

My grandfather Gus Walker built upon C.J.’s integrity by integrating practices to safeguard depositors.

My father, Kenneth Walker, allowed integrity to permeate every area of his life, enabling the bank to safeguard depositors’ money during difficult financial times.

F&M’s CFO, John Hinrichs, has dedicated 45 years to working for the bank and continues to make complex financial choices through the lens of integrity. I was thrilled when the Orange County Business Journal and the California Society of Certified Public Accountants honored him with a Lifetime Achievement Award. It shined the spotlight on his character, which has withstood the test of time (zeyam.com).

My brother Daniel K. Walker, our current chairman, leads by example and focuses with character and integrity on all that he approaches with a solid support of our mission statement.

I am contemplating the value of integrity as I reflect on a presentation I gave on this very subject to a room full of business executives in the Orange County community. What does it mean for you to have integrity when you make daily decisions at work (fusionleaders.org)?

Integrity

Fri, 13 Feb 2009 09:19:00 GMT

People like Bernie Madoff and former Illinois Gov. Rod Blagojevich are making headlines for abusing their power and allegedly defrauding the system. The breakdown in the moral compass of many of our financial leaders continues with the spending sprees of crippled financial institutions funded by taxpayer assistance. (Go to forbes.com/2008/12/12/madoff-ponzi-hedge-pf-ii-in_rl_1212croesus_inl.html; chicagotribune.com/news/local/chi-blagojevich; and usatoday.com/money/industries/banking/2009-02-10-bankers-praise-bailout_N.htm.)

The reality of these bad decisions has many people, including myself, scratching our heads. How do those at the top lose sight of their moral compass? When does integrity take a backseat to greed?

The decision-makers who have ended up in the news recently were not motivated by their moral meter, but by their own financial gain. The financial fallout we are facing is a result of the lack of integrity by those steering the economic ship, and it should be referred to as a crisis of integrity.

I could pontificate about this, but what really matters is how we respond and what we glean from this moral mess. I believe integrity is not just doing the right thing; it’s also a matter of having the right heart and allowing the person you are on the inside to match the person you are on the outside.

It is in the small decisions that our character is defined, so that when we are faced with the difficult ones, we can stand firm on what we believe is right and true. I am not without fault. But I have been fortunate to be guided by a team of men who are full of integrity.

My great-grandfather, C.J. Walker, who started Farmers and Merchants Bank, was faced with the challenge of averting a run on the bank in the recession of 1907 and ultimately helped the bank withstand the financial crisis of the Great Depression. He chose to honor his customers and navigated his way through one of the most difficult periods in our nation’s history.
(Go to nawbo-oc.org/FarmersAndMerchantsBank.html.)

My grandfather Gus Walker built upon C.J.’s integrity by integrating practices to safeguard depositors.

My father, Kenneth Walker, allowed integrity to permeate every area of his life, enabling the bank to safeguard depositors’ money during difficult financial times.

F&M’s CFO, John Hinrichs, has dedicated 45 years to working for the bank and continues to make complex financial choices through the lens of integrity. I was thrilled when the Orange County Business Journal and the California Society of Certified Public Accountants honored him with a Lifetime Achievement Award. It shined the spotlight on his character, which has withstood the test of time.
(Go to zeyam.com/hka/Documents/PressReleases/CFO%20award%20release%20finalHWJH%201.15.09.pdf.)

My brother Daniel K. Walker, our current chairman, leads by example and focuses with character and integrity on all that he approaches with a solid support of our mission statement.

I am contemplating the value of integrity as I reflect on a presentation I gave on this very subject to a room full of business executives in the Orange County community. What does it mean for you to have integrity when you make daily decisions at work? (Go to fusionleaders.org.)

Helping in the new year

Mon, 19 Jan 2009 13:50:00 GMT

As we embrace the New Year in the wake of a recession and open our eyes to what the world has to offer in 2009, it is important to keep everything in perspective. Stepping into the shoes of others who are struggling and extending a helping hand to those crying out for help has helped me and my kids put the lens of our lives back into focus. Traveling to Peru on a humanitarian trip with Mariners Church and helping families in need during the holidays left a lasting impression on my kids, who seem to be racing toward adulthood. Each of them has experienced the true spirit of giving and been transformed by the power of helping others. Below are some snapshots from each of them on their experiences in helping people in Peru this past summer and spending the holidays giving to families in need locally.

“Going on a mission trip to Peru was my dad’s idea, and I wasn’t sure what the experience would be like or how it would change me. On our first day, my dad, sister and I put together wheelchairs as a team. Afterward, there was a crowd of people, and we distributed them to the disabled who had never been able to get around by themselves. I couldn’t believe what I was seeing. I met a mother whose youngest child could not walk and had seizures, a man who was paralyzed from a gunshot and a family of seven who slept in a space the size of my room. Seeing the villages with grass huts along the Amazon River reminded me that these families didn’t have any of the conveniences I was used to. I met people who had major diseases and were missing arms and legs. This trip helped me to see how other people live and continue to smile, despite their daily struggles. I hope that I will keep these images in my mind as I face challenges in my everyday life. ”
– Maddy, 16-years-old

“When I got home for Christmas break [from boarding school in Pennsylvania] my dad asked me to get to work compiling a Santa’s list for some needy families in the area with the help of one of his colleagues. We had gotten requests through some community groups for basic supplies like blankets, food and toilet paper. I was pretty surprised because these were the same things we gave to people in Peru; I guess I didn’t think people here needed them, too. As I shopped for the items, I got more and more excited. I thought about the parents and kids who really needed this stuff, and I couldn’t wait to give it to them. When we met the families, we became friends pretty fast, as we started to play and sing Christmas songs with the children. Some of the moms had escaped abuse or been abandoned and were struggling to provide for their kids. I became friends with a little boy named Amani who had big brown eyes and curly hair. I couldn’t stop holding him and wanted him to know how much I cared. When we gave each family their gifts, one mother told us she didn’t know how she was going to put food on the table for Christmas, much less provide gifts for her kids. I was happy to help them.”
– Danielle, 13-years-old

My hope is that each of my kids will use these moments to continue to give of themselves as they journey through life, reminding all of us of what’s truly important.

In the ‘Pink’

Wed, 17 Dec 2008 10:43:00 GMT

You know, it’s not often that a guy gets asked to be a Pink Tie Guy and then makes a plan to wear pink. I don’t particularly consider pink my best color. So you can imagine my surprise when I was asked to be a Pink Tie Guy for the Orange County Affiliate of Susan G. Komen for the Cure. A primary business value and a Walker family tradition is to proactively sponsor, give to and support nonprofit and faith programs – so much so that it is weaved into the Farmers & Merchants company culture and business model. I was honored to receive an invitation to join other businessmen in advocating breast cancer awareness and representing the women who battle this devastating disease.

Breast cancer, which affects one in eight women, has had a direct impact on my family, as my brother’s wife lost her battle with the disease. Attending a recent Community Grants Breakfast for Komen reminded me of how much breast cancer not only affects the women who are diagnosed – but also their husbands, children, colleagues and friends – much like it affected my family. Ginger Silverman opened up with her story of how she battled breast cancer, had a double mastectomy and went through a tumultuous divorce. Her stamina, resilience and confidence to not only survive, but also thrive, are inspiring. Her mission to empower her 10-year-old daughter caused me to think of my two daughters and how precious they are to me. I am proud to play even a small role in helping to end breast cancer, hopefully within their lifetime, if not mine.

Any mention of breast cancer will find a story close to you: One of my F&M managers attending the breakfast shared how her mother is fighting breast cancer and was very moved by Komen’s commitment to finding a cure. The statistics are startling. Next year, close to 2,000 women will be diagnosed, and 200 of them will die from the disease – in Orange County alone. The disease impacts a wide spectrum of individuals regardless of race, ethnic background or economic standing. Because it is a pervasive problem that affects so many, the business community included, it requires an aggressive strategy to educate women. At the Komen breakfast, I also learned that Komen works with numerous other organizations in the community to alleviate the statistics.

As a member of the business community, I am passionate about stepping into this new role to help increase awareness. Giving back to the community is a personal passion that is shared among the F&M family, and I believe it is important for businesses to take on a philanthropic role. I encourage my associates, colleagues, employees and business partners to join me in fighting for a cause you believe in.

Reflecting on the economy

Mon, 24 Nov 2008 14:39:00 GMT

Recently I escaped to one of my favorite places at this time of the year: Park City, Utah. However, being surrounded by snow-capped mountains and the serenity of the scenery could not completely remove me from lingering thoughts of the economy and financial markets. The industrious guy who works at the local restaurant and shovels snow was interested in my thoughts and advice on how to navigate his way through these challenging times. While there is no silver bullet to fend off the bear market, I began to envision a strategy to help combat the defeated frame of mind that many of us have adopted and instead develop a fundamental and competitive will to overcome. This strategy requires us to identify concrete priorities, understand the strengths we need in order to persevere, as well as analyze the weaknesses that threaten our prosperity the most.

As an avid polo player and intense competitor on the field, I think a good defense is the best offense in a bad economy. Companies need to first take corrective measures and get out of debt as soon as possible. Taking internal, restorative action is the key to preservation when a company is hit by a financial storm like the one we are experiencing now. Although it may be hard to bounce back swiftly, this is not a time for us to be passive. We need to proactively shed debt, reduce excessive spending and become liquid. Taking action now is the key to surfing the rough economic seas. The right people always emerge out of rough times. Those with foresight, focus and fortitude will ride the wave to calmer seas rather than those who are struggling to tread water and feel stuck in survival mode. The key is to not allow our businesses to sink with the economy but to deal with the financial crisis and develop strategies that address the immediate problem and support a long-term plan.

Remarkable Women

Thu, 30 Oct 2008 17:03:00 GMT

For the past five years, I have attended the Orange County chapter of the National Association of Women Business Owners (NAWBO), OC Remarkable Women luncheon, a highly anticipated event to recognize four outstanding Orange County businesswomen who have gone above and beyond to make their business a success. Being a strong advocate for women entrepreneurs and executives, I personally feel it is important to support women who are making tremendous strides in the business community. In previous years, I have brought my young daughter on stage as the youthful analogy of the progress women have made in business and the opportunities that are available to her in the future. This year my thoughts and heart were focused on memories of my past with the recent loss of the most remarkable woman in my life – my mother.

As I reflect back on the profound imprint she has made in defining who I am, I realize the Christian values she instilled in our family. I recognize the hard work and dedication she gave back to the local community and those in need. She was a driving force behind my father, Ken Walker, and his successful tenure with Farmers & Merchants Bank. Her unwavering love and support enabled my father to soar in his career and build a financial foundation to provide for our family. They were a team walked through life together. Through her I have witnessed the true essence of a woman that embodies strength, commitment and courage.

It is now that I am reminded of the true meaning of success. It is not measured by financial gain but the investment I make in my family and those around me. My mother’s wisdom and influence have made a profound impact on me and help me recognize the key to fulfillment and contentment is to lead a balanced life.

Perspectives on the Plan

Wed, 08 Oct 2008 17:05:00 GMT

The famous words uttered by our fearless former General, George S. Patton, “A good plan today is better than a perfect plan tomorrow,” need to echo throughout the walls in Washington, D.C. Congress’ decision to support the government bailout (rescue) plan was probably a step in the right direction. The plan is not a silver bullet to remedy all the problems on Wall Street or Main Street, but it is a positive and necessary step to restore confidence in the economy. At some point, the government will need to quit intervening and get back to free market principles. Just like a parent who intervenes to assist a child in trouble but eventually lets go; the government must ease their assistance at some point to allow a free marketplace for Americans to thrive.

There is that ray of sunshine that pokes its head in the clouds through the storm. The FDIC is doing what it was designed to do – calm the markets and reduce the panic. This deposit protection system shows how well our banking system is designed and how resilient our country can be. I was not in favor of raising the FDIC insurance levels from 100,000 to 250,000 because it means the government is bowing to political pressure and, again, intervening in free market structures. At some point Americans will need to become responsible for their investments and not depend on the government (taxpayers) to bail them out

While the daily news fills our minds with gloomy headlines, there is opportunity for those who stay optimistic and alert. I believe the housing market will right itself in Southern California, as we see signs indicating we are nearing the bottom. Investors who have been waiting on the sidelines are beginning to jump into the market again. I am not trying to minimize the reality of the economic turbulence. However, I think it is necessary to realize the overall strength of the U.S. economy and the role we play as a country in the global marketplace.

While some analysts can see recovery on the horizon and expect to see life signs of a much stronger economy by the end of next year, I’m not sure we will feel the improvements for quite a few years. It is important to turn around the economic cycle we are in to take control of the cost of living to keep the dollar stable, and get our citizens back to work. Recessions can be positive because they shake out those who engaged in risky behavior. I am hopeful for the future and confident our economy will not only survive, but also begin to thrive.

My father's 60th anniversary at F&M

Wed, 24 Sep 2008 17:13:00 GMT

My father, Kenneth Walker, just celebrated his 60th anniversary working at Farmers & Merchants Bank (F&M). This is a remarkable feat, especially in today's world of business. His anniversary comes at a particularly disturbing time, when panic is permeating Wall Street and the financial markets. Over his 60 years with the Bank, my dad was no stranger to panic – a cyclical condition – yet he knew how to weather the financial storms. My father's anniversary with the bank has caused me to stop and think about the lessons I have learned from him and how his core values of honesty and integrity are increasingly rare.

Perspectives from Peru

Wed, 03 Sep 2008 13:37:00 GMT

It is difficult to translate the profound experiences that have continued to confirm my world view from serving the people in Peru. Here are some snapshots that will forever be imprinted in my heart and mind and moments that will continue to change me as I assimilate back into my Orange County routine.

On day No. 5 of our journey, we were riding a boat in the Amazon where the morning sun gleamed off the smooth and vast surface of this enormous river. Along the banks, grass huts were scattered, lining the shore, all raised about four feet to compensate for when she (the Amazon) overflows. I can only imagine what it is like when she is at full strength and her arms stretch out to fill all the low-lying areas. I must come back and witness this, as it would be magnificent to see the countryside change.

Our mission? To serve at a medical clinic that took us roughly one-and-a-half hours to get to by bus, boat and foot. Carrying in medical supplies, our team hiked amidst dense vegetation, rickety bridges and elevated walkways to arrive at the clinic in Penguana. As we approached, there was a line of roughly 200 people waiting to be treated. Serving alongside doctors and volunteers from Camino de Vida (Road to Life), my daughters and I witnessed the resilience and perseverance of the human spirit. The children’s smiles amidst getting their teeth pulled and getting treated for malaria was incredible. The wholeness of life that seemed to reflect in the eyes of the people despite their disease and poverty will stay with me always. At the end of the day, the human spirit triumphs over despair, and the people of Penguana and the seven surrounding villages that traveled to see us were given love, dignity and hope. At the end of the day we serviced almost 500 people. We didn’t change Peru, but we made a difference to them and that was worth it.

On day No. 6, it was very humid from the rain the previous night but my discomfort was quickly diminished when I saw the line of hundreds who had arrived early to be treated at a clinic in Inca Roca. My initial responsibility was that I was put in charge of retrieving water for everyone that was, ironically, being stored at la casa de Walker. When I arrived at the Walker hut, it was humbling to witness a family with the same surname that was struggling to survive, living in dingy conditions; a sharp contrast from the Walker casa in Orange County. My youngest daughter and I admitted patients into the clinic with our limited vocabulary.

The line seemed endless with mothers checking in children, elderly and even a 13-year-old girl who checked in her three siblings, most of them suffering from malaria. The day pushed on and the need was so great that people started forcing their way in. Thankfully, the clinic also served as a compound so when the surging crowd tried to force themselves inside, we were able to shut the gates and control the chaos. Several hundred people had been admitted but there were still hundreds more waiting outside that were not going to be seen. Eventually the demand exceeded our abilities and when the people outside realized they were not going to be treated, they started yelling and banging on the gates. The sound echoed throughout the courtyard like something you would see in a movie. The need was too great to be met.

We left exhausted, but went to an early dinner at a nice restaurant floating in the center of the Amazon. I felt hypocritical as I looked back to the city of Iquitos and as we were far enough down the river to blur the imperfections of the realities we had just experienced.

On day No. 7, I witnessed the love of a mother exhibited in the truest sense of the word. This image will forever be branded in my memory. I saw this mother cradling the most disfigured and handicapped man I had ever laid eyes on. He was not a boy but a 26-year-old man that lay in his mother’s arms wrapped in a blanket. I was speechless as I absorbed the reality that this mother had been carrying her son for 26-years. That is incredible! For the man to even be able to sit she would lay him on the dining room table and massage his back to loosen him up, otherwise, he was rigid like a board. The man’s face was so disfigured that it was difficult to look at him, and very candidly, cannot be described. The mother was overjoyed with the gift of a wheelchair for her son but I don’t think her son was coherent enough to realize he was given mobility.

Day No. 8 was spent at the Nancy Cole Home, which caters to young girls and women who have suffered abuse. These women have incredible stories of rape, incest and complete disregard for their human dignity. Our mission was to celebrate these women by doing their hair, nails and make-up. At the end we had a makeover party and these ladies came alive! It’s amazing how these small acts of love lifted their spirits and took them to new heights. The old saying, “people don’t care until they know how much you care,” became a reality.

Our last night was spent in Lima where we treated ourselves to one of the most famous restaurants in town called La Rosa Nautica. It was nostalgic to be there as I can remember walking the pier to visit this restaurant 20 years earlier. I reflected on how much my life has changed and how thankful I am to serve the people with my two precious daughters.

Now that I am back home and back to my daily routine, I think often of my experiences in Peru. Just walking the aisles of the grocery store takes me back to visiting a local store in Miraflores where the commodities were perfectly aligned but the prices in general met or exceeded our prices. Even putting gas in my car reminds me of how fuel prices in this Third World country are triple what they are in the U.S. I consider how extremely inexpensive their labor is in comparison to how expensive their resources are. There are 28 million people in Peru and 25 million are living below our acceptable poverty levels with the vast majority living in extreme poverty.

Although I put just a small toe in their shoes, I am thankful and grateful for the experiences that will forever impact my children and me.

A Third World view...

Thu, 07 Aug 2008 09:29:00 GMT

I stepped into a completely different world when I got off the plane in Peru. Traveling with a team from Mariners Church, my daughters and I had no idea how leaving the comforts of our Orange County home and serving people in this Third World country would impact us.

Our first day was dedicated to assembling wheelchairs for the handicapped that are immobile due to their inability to afford such a luxury. These cost effective chairs are provided by the Free Wheelchair Mission; a program that utilizes inexpensive parts to enable the disabled in the poorest areas in the world to move around. My daughters and I worked as a team, putting each chair together in less than 15 minutes. As we assembled each one, I thought about how this simple chair would breathe life into someone who felt stuck. As we gathered together to give the chairs away, we heard heart-breaking stories about people who were paralyzed from being shot, casualties of a car accident and suffering from polio.

We then visited four different homes where we became personally acquainted with families, hearing their tragic story first hand.   It was humbling to meet the mother of four whose youngest child could not walk and suffered from constant seizures or the family of seven who lives in less than 500 square feet and have endured emotional upheaval due to their crippled child. The father was so devastated by the disability of this child that he tried to kill himself and failed. He later abandoned the family leaving his daughter to care for the young one while the other children along with their mother and grandmother work to provide for the family. The mother and daughter were forced to carry this 6-year old until we gave him the gift of mobility.

The resilience of the people is amazing! My daughters and I met another man who was the target of a gunman when he tried to protect his neighbor’s car from being stolen. This former electrician is now paralyzed from the waist down and had been confined to his bed for three months.   I will never forget the look on his face when I personally picked him up and placed him in a chair, wheeling him outside for the first time in weeks. He had hoped he would be able to return to work because his wife and children were trying to earn enough money to support the family but were unsuccessful in their attempts. Now he feels like he has a whole new lease on life despite the inability to walk.

The stories seem never ending. Our next stop is a small town named Iquitos.   There we plan to help hundreds of people waiting for medical assistance. The majority of people are poor, but their smiles are big.   The compassion and joy the girls and I have felt in one day are more that others learn in a life time.

Thu, 07 Aug 2008 09:29:00 GMT

I stepped into a completely different world when I got off the plane in Peru. Traveling with a team from Mariners Church, my daughters and I had no idea how leaving the comforts of our Orange County home and serving people in this Third World country would impact us.

Our first day was dedicated to assembling wheelchairs for the handicapped that are immobile due to their inability to afford such a luxury. These cost-effective chairs are provided by the Free Wheelchair Mission; a program that utilizes inexpensive parts to enable the disabled in the poorest areas in the world to move around. My daughters and I worked as a team, putting each chair together in less than 15 minutes. As we assembled each one, I thought about how this simple chair would breathe life into someone who felt stuck. As we gathered together to give the chairs away, we heard heart-breaking stories about people who were paralyzed from being shot, casualties of a car accident and suffering from polio.

We then visited four different homes where we became personally acquainted with families, hearing their tragic story first hand.   It was humbling to meet the mother of four whose youngest child could not walk and suffered from constant seizures or the family of seven who lives in less than 500 square feet and have endured emotional upheaval due to their crippled child. The father was so devastated by the disability of this child that he tried to kill himself and failed. He later abandoned the family leaving his daughter to care for the young one while the other children, along with their mother and grandmother, work to provide for the family. The mother and daughter were forced to carry this 6-year old until we gave him the gift of mobility.

The resilience of the people is amazing! My daughters and I met another man who was the target of a gunman when he tried to protect his neighbor’s car from being stolen. This former electrician is completely paralyzed and had been confined to his bed for three months.   I will never forget the look on his face when I personally picked him up and placed him in a chair, wheeling him outside for the first time in weeks. He had hoped he would be able to return to work because his wife and children were trying to earn enough money to support the family but were unsuccessful in their attempts. Now he feels like he has a whole new lease on life despite the inability to walk.

The stories seem never ending. Our next stop is a small town named Iquitos.   There we plan to help hundreds of people waiting for medical assistance. The majority of people are poor, but their smiles are big.   The compassion and joy the girls and I have felt in one day are more that others learn in a life time.

Third World trip puts things in perspective...

Fri, 01 Aug 2008 10:49:00 GMT

It’s easy to get overwhelmed by all the news being reported in today’s volatile economy. Picking up a newspaper, tuning into a TV newscast or clicking on my favorite website for news is constant reinforcement that people are suffering throughout the country.

Yet everything needs to be put in perspective. And sometimes, putting on a new pair of glasses can make all the difference. I am preparing to travel to Peru as part of a humanitarian trip with my church. Peru is one of several Third World countries in Latin America with 60 percent of the population living in poverty and over 20 percent living in what is classified as extreme poverty. It is hard for me to imagine this type of deprivation from where I sit. My initial thought was to take my children on a trip to broaden their horizons and deepen their perspectives, but I have a feeling I may be the one walking away with a transformed point of view.

We will be distributing wheelchairs to the physically disabled, and working in medical clinics, orphanages and shelters for abused women. Although I may only catch a glimpse of the daily struggles the Peruvian people face, I welcome the opportunity to put even just a toe in their shoes. I want to be enlightened on their struggle, engaged in their understanding of the world and witness the spirit that enables them to not only persevere but to celebrate life in the midst of their circumstances.

Yes, times are challenging for us in the present state of our economy, but it is important for us to keep our situation in perspective. We don’t want to minimize our experiences but realize the resources we have, and often take for granted. I’m as guilty of this as much as anybody, but I recognize that having the opportunity to be a part of a humanitarian mission trip is a gift. And one that not everyone can afford. But perhaps there are things we can do right here in our own backyard that can positively impact our lives and change our frame of mind. In the meantime, I look forward to sharing my experiences with you so we can all glean some insight from stepping outside of our current situation.

How to boost consumer confidence...

Wed, 23 Jul 2008 14:06:00 GMT

The impact of the mortgage crisis still has banks struggling to maintain their stature with their depositors and shareholders. It makes it very hard to do business as usual. We are spending so much time trying to stabilize the string of Dominos that continue to fall into the next sector of the economy. The tightening of credit and higher fuel prices are making it a struggle for companies to get customers in the door.

As I reflect on the recent FDIC takeover of IndyMac Bank, I find myself asking, “What can I do to boost customer confidence and create some momentum in our business community?”

In observing this bank failure, I jotted down notes of behavioral factors that I, along with other business owners, regardless of industry, should practice daily. Though they may seem basic, these factors can play a huge role in how customers view our organizations and their future relationship with us.

•   Keep all lines of communication open. No one likes to hear bad news. However, chances are, bad news sounds even worse when it’s revealed too late to explain. Being honest and direct with your customers, shareholders, and employees in regards to your current business condition, whether good or bad, is crucial in maintaining their trust.

•   Treat people like people. No matter how large a company grows, it should not change how it treats its customers. For example, I believe all businesses should make the effort to allow customers to speak to a live person over the phone or face to face.

•   Be proactive in communicating to key customers. In banking, there is a 10-90 rule. Ten percent of our customers can impact 90 percent of our business. It is important that our key officers communicate often with our key customers, maintaining their trust and confidence in us in order to see them through these troubling times.

•   Take responsibility. Although we try to avoid mistakes and failures, they do happen. Inspect what you expect…constant assessment, evaluation of current position, and adapting to change quickly should be our new mantras.

This summer season has become very challenging. As we endure these difficult times and watch the economy continue to change, we must adapt to keep our business doors open, employees positive, and continue to nurture our relationships with our customers and the community in which we live.

Mac attack: How to evaluate the safety of your bank

Wed, 16 Jul 2008 11:14:00 GMT

The photos of people waiting in long lines outside IndyMac’s branches to withdraw their money are all to reminiscent of the 1929 Wall Street Crash that jolted the country, causing folks to congregate outside every bank to empty their accounts.

The FDIC seizure of IndyMac Bank, which is Pasadena-based and has 33 branches throughout California, was felt all the way to Wall Street. The good news … we will not be reliving the Great Depression. However, it was a wake up call and now is the time to consider the safety and soundness of the bank that we trust with our money.

After a long run of prosperity, the U.S. banking industry has lost its momentum. IndyMac, one of the nation’s largest home lenders is the latest casualty of the mortgage meltdown and, now, we are watching Freddie Mac and Fannie Mae struggling to manage the mortgage foreclosures.

Freddie Mac and Fannie Mae will recover with the Fed’s help and with a rebound in the housing market. Analysts are making all types of projections about when the real estate market is going to look up. Even signs that the worst is over could boost confidence significantly.

As we walk this troubled road, it is important for us to take each step with our eyes wide open. Just a few months ago, you may have thought little about the bank that you entrusted your money to because it seemed that we were seeing the light at the end of the recovery tunnel. But suddenly, the tunnel became longer it is important to check the financial stability of your chosen financial institution.

It’s important to evaluate the financial history of the bank you are with, looking at their types of assets and their performance. Did your bank make or put subprime loans in their investment portfolio? Did your bank make a profit or loss last year or last quarter? Don’t rely on the bank’s stock price to tell you its strength. Although I have learned that in life there are few things we can really count on. A lesson learned is … I know it is not fearing your bank, but knowing your bank that is important. Remember, knowledge is power and that evaluating the strength of your bank is the key to riding out this financial storm without getting wet.

Reflections on July 4

Mon, 14 Jul 2008 17:34:00 GMT

No matter what side of the political divide you fall into, the extreme right or left or somewhere in the middle, we all seem to unite under one banner on the 4th of July. Political agendas seem to fade into the background for one day as we celebrate the birth of our country.

I have always looked forward to the 4th of July. As a young boy, I enjoyed going to the parade and watching fireworks explode into the night. The spirit of this day is contagious and I continue to see it reflected in the eyes of my kids. It causes me to stop and reflect on the sacrifice that was made by so many of our forefathers so that we can experience the freedom we now enjoy and sometimes take for granted.

This past holiday, I thought about my great-grandfather who started Farmers & Merchants Bank. He opened his doors and continued to serve his customers through WWI, the great depression and the 1933 earthquake. His character was resilient, persevering under the most difficult circumstances, always relying on his faith to carry him through. I think of him as I watch the sparks fade into the sky, wondering what the future will hold. I recognize the anchor I have in the legacy of my family and like my great-grandfather, rely on my faith to guide me.

This Independence day I paused to think about how this period of uncertainty is a season, it will pass. The waves will come and go but what is most important is the strength of my character to weather the storms and carry my family and customers through safely.

Prioritize your investments. Kids should top the list.

Wed, 02 Jul 2008 07:52:00 GMT

The heat is on as we continue to empty our pockets at the pump and figure out how to cut corners in our everyday spending. It feels as if this roller coaster ride we call the economy has taken a plunge downward and we are trying to figure out how to get back up. As a banker, I was stunned to watch the Dow Jones plummet to its worst June since the great depression. With the persistent downward spiral of sluggish home sales, the rising cost of food and the constantly increasing price at the pump, many of us are walking around with a bleak view of our current condition, making it difficult to enjoy our prized California summer.

These past few months have been a whirlwind and when I finally stopped to catch my breath, I started to re-evaluate my investments. As the new CEO of F&M, all eyes seemed to be on me, and it was exciting but difficult to prioritize all that demanded my attention. When I finally decided to drown out the sound in order to focus on what is most valuable to me, all I could think about were my kids. They keep me on my toes, tease me and bring me unspeakable joy; they are the most important investment I have and yet I needed to prioritize my time so that I could find a balance between working hard and spending quality time with them.

Delegating, managing and keeping to a schedule that included my kids shaped my new way of living. When outside events began to dominate my calendar, I would reposition myself and adjust my schedule to include quality time with them. The declining economy drives many of us to focus on our circumstances. While it’s important to navigate our way through uncertain times, it should not dominate our way of life, nor rob us of our happiness. While I am passionate about banking and thrive in my current position, I recognize the most important part of my life is staring back at me and decided to make it my most treasured investment.

This summer, I am dedicating my time and energy to my kids by facilitating trips for fun and humanitarian purposes to give us perspective. Rather than allowing the economic conditions to cloud my judgment, I want to invest in the lives of others. I am spending the week with my kids, playing in the sun and will take them on a mission trip to Peru to help those who are desperately in need. The current economic conditions we face may slightly impact our current lifestyle, but do not compare to the pervasive poverty permeated in other regions. I have discovered the true value of an investment is dictated by how you spend your time and not measured by how much money you currently have to spend.

Bear Sterns' scandal's deeper impact

Tue, 24 Jun 2008 15:45:00 GMT

It’s becoming increasingly difficult to open the newspaper each morning. As I have been discussing in this blog, the suffering economy and through-the-roof prices on fuel have put a damper on our current financial situation. I didn’t even have to open the paper last week to discover the indictments of two former Bear Stearns hedge fund managers who are charged with misleading investors. The headlines jumped out of the front page, and I realized the financial decision these managers made have contributed to the global crisis we now face, not to mention the billions of dollars it cost their investors.

The indictment is based on e-mail correspondence between the two men that reportedly are a clear indication of their knowledge of the declining state of the hedge funds. As I absorbed the details of the case, I grew extremely concerned about the current business environment, not only from the perspective of a banker, but perhaps more importantly from the perspective of a father.

While we all wish financial success for our children, it would be a shame to let them grow up believing that successful business and good ethics are contradictory. The Bear Stearns fiasco is one example of how a lack of integrity and character negatively effected an organization, as well as the entire economy. Just as teaching kids to be street-smart and money-wise is important, teaching them the value of ethics is a vital part of their education especially during difficult times. The economic crisis is testing the core beliefs of financial executives today and I hope to instill core values for my kids to guide them when they are faced with difficult decisions. My desire is for each of them to be guided by strong values so that when they are challenged to make a choice, they will choose the road less traveled rather than selfishness and greed.

Although it often feels as though displays of honesty in business are rare these days, I also realize ethical businesspeople just aren’t considered front-page news. While corruption and dishonesty can lead to the decline of entire institutions and the loss of billions of dollars, those that implement ethics in their business plans are the ones that allow for “business as usual.” Although the topic of ethics isn’t always a headliner, it is certainly crucial to consider in all industries and levels of business and one of the most important values to instill in our kids.

Tiger serves to inspire

Wed, 18 Jun 2008 17:10:00 GMT

I stood on the sidelines at the U.S. Open last week and was captivated as Tiger Woods fought through the course with an injured knee. While the beginning looked dismal for Tiger and the crowd started to lose confidence, he swung a 12-foot birdie putt that bumped along toward the hole and swirled into the bump without an inch to spare. You could not help but be inspired, as his performance was one of the all-time epic moments in his golfing career, winning his third U.S. Open title. The victory is being lauded as a story of true perseverance and triumph over daunting obstacles.

In fact, Tiger's win is an ideal opportunity for all Americans to be inspired. It's true, the housing market is particularly gritty, feels like we are stuck in a sand trap. And gas and food prices are the country's triple bogey: it's scary each day just driving by the posted gas prices at the corner station. As a country, we are enduring the pain of an injured economy just as Tiger's sore knee gave him a slight limp and made him grimace each time he took a swing.

So, what can we learn from this? How can we be inspired? While a sudden death round may not sound like an appealing comparison, the important thing to remember is that there are 18 holes in a course. A game that starts out badly can turn around at any point along the way. Although many business owners may feel pressure on the first few holes, we should remember that a few extra strokes at the start may not always determine the outcome. Sure, the course may be filled with slopes, water hazards and bunkers. Most of us have ridden rough waters before. Fortunately, careful planning, calculated moves and patience can pull us through. Tiger's win was not a miracle, but a result of training, concentration and tenacity. When times are tough, it's great to look for inspiration wherever we can find it, even on the golf course.

Make sure your bank is safe

Tue, 17 Jun 2008 20:52:00 GMT

The financial industry has been turned upside-down from the turbulence created by the credit and mortgage crisis. The shock waves are affecting our small, independent, community banks in rural America as well as the large, national banks with household names. To give you some perspective of how the financial climate has changed, there were only three FDIC-insured bank failures from 2005 to 2007. Now, we are witnessing our fourth FDIC-insured bank failure and we are only halfway through 2008. A recent article in the Wall Street Journal chronicles the SWAT team-like closure of First Integrity Bank in Staples, Minnesota. The operation had the FDIC operating covertly under a fictitious company name to quickly cleanup the bank’s failure in one, swift weekend. While citizens of Staples were kept clueless and unaware for as long as possible, to prevent any panic.

A small town in Minnesota may seem miles away from the sunny atmosphere in Orange County but the winds of this financial storm are still blowing. One should not get too distracted by the gas price to forget the importance of protecting ourselves from becoming a casualty of an unforeseen bank failure. As a 4th generation banker, I am painfully aware of the economic failures that have occurred and want you to understand the importance of checking the barometer of your financial institution. When choosing or reviewing your bank, here are some key things to keep in mind:

•    Take a look at the financial statement on the FDIC’s web site. It provides the amount of classified loans and amount of capital held by the bank. Classified loans denote substandard loans or worse. You want to see a 9% or greater ratio derived from the amount capital divided by the total assets.
•    You can also compare the total loans to total deposits. A ratio greater the 80% may be an indicator that the bank is an aggressive lender. Which means you should assess how conservative the bank is in making their loans. A red flag should go up for banks that specialized in development loans for single family housing over the past five years.
•    If your deposits exceed $100,000 and/or you have large lines of credit for your day-to-day business operation, have a back-up plan for having access to both. A bank failure could stop your business or life in its tracks.
•    Don’t expect a brokerage firm to be a better alternative to a bank relationship. I have consulted more than one friend who found the term liquidity in liquid investments does not always mean getting your funds tomorrow or even the next week.

So…do a little research and collect some true independent data to determine if your money, savings, and lines of credit are truly safe, sound, and secure with the financial institution you trust.

(Note: According to the Wall Street Journal article, some analysts are predicting even more bank failures, up to 150, within the next three years. Even the most cautious people can get caught in the middle of failed bank situations.)

Stimulus checks do little to boost bottomline.

Tue, 10 Jun 2008 15:23:00 GMT

We live in a region that is glorified by the media as a place where the economic sun is always shining, everyone surfs, kids don’t need to worry about jobs, and housewives are anything but desperate. But anyone who looks past the “TV Reality” smokescreen to see the real O.C., knows that we are feeling the reality burn from the economic downturn just as much as the rest of the country.

While many wait patiently by their mailboxes, or check their checking account balance online every day for that much-needed and anticipated stimulus check, in truth, these checks are only enough to fill the gas tank for their SUV a couple of times. That’s, if you qualify for a check.

Still it’s only a nominal attempt to jump-start the economy. While food and fuel prices soar, the benefits of the extra cash are gone before it stimulates anything. The only businesses seeing the impact of the stimulus checks are oil companies, discount, and bargain stores. The mid- to high-end stores continue to see declining sales. In the month of May, Wal-Mart’s sales increased by 4.4% and Costco by 5%, while the Gap experienced a 14% plunge and Old Navy, a devastating 25%.

Even Orange County’s trendy consumers are beginning to cover the necessities in life first, as they try to make their shrinking dollar stretch, thinking twice about spending their money on clothes or luxuries. Although these checks may give us a short morale boost, keep us driving a few more days, and allow for a positive political statement to America that something is being done; the reality is … it’s doing very little to boost our business bottom line.

The harsh reality: we're in a recession

Thu, 05 Jun 2008 20:49:00 GMT

The Walker family has been in the Southern California banking business for over 100 years. We have weathered the financial storms of the great depression and experienced the prosperous seasons during economic peaks. Through it all, we have persevered without allowing the economic climate of the time to dictate how we responded to our customers and clients. Our philosophy has always been customer centric focused on the relationship, which is why I am personally thrilled to reach out to and connect with the Orange County business community through this new, interactive, social medium. Although today’s banking and finance may appear to be a very sobering topic, it significantly impacts our lives on a daily basis. I look forward to developing a dialogue that opens the lines of communication to express our opinions on topics that may be new territory for some, and yet a frequent journey for others. I will be honest, straightforward and realistic about our discussions as many others, I believe, would tread lightly.

Let me start by expressing my underlying observation on our current, yet shaky, financial climate. To be candid, I think it’s time for us to realize that we are not facing an “economic downturn,” but the harsh reality that we are in the midst of a recession. Many of us have been here before, and we know the future promises a more robust economy for California. However, as I look around at everyday life today, I see indicators pointing out this recession reality. Every time I take my family out for dinner, I note the empty tables and few people waiting for seating –a true indicator of a sharp decline in consumers dining out. This ripple effect resulting from our economy is moving down to impact how many times we eat out, confirming the lack of consumer confidence and willingness to spend in the local marketplace. Another indicator to me is to look at how our commercial lease rates rank in comparison to the rest of the country. In Orange County, commercial lease rates appear to be abnormally high. Yet the bubble has burst and now it’s time for us to re-evaluate, re-assess, and recognize the slump we are parked in. It’s time to make those wise and creative adjustments to respond to a recession that is now in progress.

My desire is that this blog will initiate a multi-tiered conversation, allowing me to offer insight, thoughts, and a voice to gain perceptions from each of you on how to deal with the reality of our current economic condition.

Seed Posting: Washington Post Columnist Steven Pearlstein said rising energy, food, and air-travel prices, the collapse of the mortgage market, reduced production at auto companies, and job losses in the financial industry all are the effects of an economy purging itself of large and unsustainable imbalances. He writes that this is a natural result for a country that has gone from being the world's largest creditor to its largest debtor, and that its citizens are going to have to get used to a "new equilibrium."