NEWSLETTER ARTICLE ARCHIVES

• Pacific Trust Bank – the place for Business Accounts
• Not reviewing your credit report can be costly
• Credit Myths & Facts
• ARM Yourself - Understanding your mortgage
• The Loan Arrangers
• "Boomer" Retirement Plan
• The Light Green Account
• A Great Rate (and we're not teasing)
• Warning to Heirs - ID Thieves Target the Deceased
• Direct Deposit - The Safer, Easier Choice
• Financial Security - FDIC Insurance Coverage Increased
• More Reasons to love the Green Account
• Light Green - A Second Alternative
• Internet Security
• Online Attacks
• Phishing & Identity Theft
• New Anti-Phishing Law
• How to Protect Your Personal Data
• Green Account Simplicity
• All About the Green Account
• Check Fraud Protection
• Protect yourself from fraud with a stroke of the pen
• Spring Cleaning Time for your Finances
• Customers Rave About HomeAccess
• Coin Machines - Now at All Branches
• Beware - Junk Mail Bank Impersonators

For over 65 years, Pacific Trust Bank has been the place for you and your family to stash your cash or to get a loan. But, did you know it’s also the place your business accounts?

Pacific Trust Bank provides a variety of business accounts and services, and offers highly competitive rates for our business and professional customers. The unique needs of your business are important to us, and you can count on us to provide service that's so good - it's guaranteed.

For your business banking needs, in addition to business loans, Pacific Trust Bank offers your choice of business checking and savings accounts:

Simple Business Checking - The perfect checking account for just about every small business with moderate transaction activity and cash handling needs. The low monthly service fees is waived with an average balance of $2,500 or greater.

Interest Business Checking - An interest-bearing business checking account for sole proprietors, non-profit and governmental agencies. It offers the same benefits and has the same service fees as our Simple Business Checking account, but pays a variable rate of interest.

Analysis Business Checking - If your business processes a lot of checks or deposits each month, you’ll want our Analysis Business Checking account. It allows your account balances to earn credit to offset monthly service fees. You can open and link multiple Analysis Business Checking accounts to segregate account activity and better manage your finances.

An Analysis Business Checking relationship is required to take advantage of Pacific Trust’s feature-rich "BusinessAccess" online banking and cash management services, including ACH origination, wire transfers, account reporting and remote deposit.

Business Savings and Market Rate Accounts – Earn a great interest rate, and be able to make deposits or withdrawals at any time, in any amount. Interest rates on both of these business account products are tiered - larger account balances will earn higher interest rates.

Business Indexed Money Market Account - Your business cash can earn an Annual Percentage Yield that's always at current money market interest rates, while your funds remain fully liquid and easily available. The Annual Percentage Yield on your Business Indexed Money Market Account will be adjusted weekly, based on the most recent 3-month US Treasury Bill auction rate ($25,000 minimum balance).

Business Time Deposits (CDs) - Business Time Deposit accounts give you safe, secure investment flexibility with a guaranteed high rate of return that is fixed for your choice of maturity terms. You can invest any amount from $500 to $1 million or more, with terms from 30 days to 5 years.

Not sure which business account is right for you? Come in to any Pacific Trust branch, call us, or visit our web site for more information.

Whether you want to ensure your credit is good, so that you can buy a house or refinance your mortgage, or want to guard against possible ID theft and fraudulent credit activity in your name, checking your credit reports is important for everyone.

Most consumers neglect to do that, surveys have shown. About 97 percent of people have no idea what their credit scores are, and 86 percent did not check their credit reports last year even though doing so is free, according to an informal survey by Credit.com Educational Services in San Francisco.

Federal law allows consumers to access their reports with each one of the major credit bureaus free once a year by logging on to www.annualcreditreport.com.

When you get the report, the first step is to review it closely. Look for errors and possible fraud, such as identity theft. Credit bureaus can fix these problems if you have the records to back up your claims.

You may also discover that positive information that could raise your score has been omitted -- for instance, the payment record or credit limit on one of your credit cards.

The Consumer Federation of America reviewed more than 500,000 credit files in 2002 and found that in one out of three cases, credit scores from the three agencies varied by 50 points or more -- a result the advocacy group says could only have resulted from errors in the files.

By law, if you find what you think is an error, the credit bureau must investigate the matter (generally within 30 days) and provide the person affected with the written results within five days.

Many people never or rarely look at their credit report or their credit scores until they apply for a loan or they have been denied a loan. By then, it's often too late because inaccurate or missing information in your credit report could raise your borrowing costs or cause delays when you're in a rush to make a major purchase, like a new home.

Take advantage of your right under federal law to obtain one free copy of your credit report each year from each of the three nationwide credit bureaus (Equifax, Experian and TransUnion).

Periodically review your report and correct any omissions or errors, especially before you apply for a home loan or seek some other benefit where your credit report could affect the outcome. Doing so can boost your credit score enough to save you hundreds of dollars each year in interest or other charges.

Another benefit of reviewing your credit report is that you'll be better prepared to protect yourself from "predatory" lenders who try to trick cash-strapped consumers into accepting high-cost auto or home loans. "Some people who don't know they have a good credit history can be deceived into believing an expensive loan is their only choice," Marshall explained.

If you apply for insurance or a job, the insurance company or future employer can review your credit report as part of its consideration of your financial responsibility. You don’t want to lose a good job opportunity or a low premium on an insurance policy because of some erroneous information on your credit report.

SOURCES: Fair Isaac Corp., Freddie Mac, Credit.com Educational Services

ARM Yourself
Understanding adjustable-rate mortgages, and your options

Due to increasing house prices and worsening home ownership affordability, most mortgages in California are Adjustable Rate Mortgages (ARMs).

The attraction is lower monthly payments. That’s because rates on these loans start out lower than fixed rates but adjust with the market. Some ARMs offer borrowers the option to pay only the interest on the loan, or to choose how much principal or interest to pay.

Important Questions to Ask

Exactly how much do you owe on your house; what are the loan terms; what has happened to the interest rate and your monthly payments; and how much could the rate and payment go up in the future?

Perhaps your ARM has an initial rate and minimum payment that is fixed for several years before it begins to adjust, but do you know when and by how much?

At the time ARM loans are originated, Federal regulations require complete disclosure of the loan terms and examples of how rates and payments could change in the future. But surveys show that years later many consumers may not fully understand or even remember the loan terms they took.

Pacific Trust Bank Can Help

Whether you have an ARM from another lender or from Pacific Trust, we can review the terms of your current loan and explain what could happen to your interest rate and loan payments. And, we may be able to suggest refinancing alternatives to better meet your home financing requirements.

'BOOMER'
RETIREMENT PLAN

A lot of baby boomers were planning to achieve wealth the old-fashioned way: by inheriting it.

But, a new survey says that the much-anticipated windfall boomers are waiting for may be late in coming or never arrive at all.

According to AARP, it's pretty simple: mom and dad are living a lot longer and will be spending their retirement savings. Only 14.9 percent of boomers surveyed said they now expect to receive an inheritance.

What’s your plan to achieve wealth? For those boomers who haven’t started a savings program yet, there may be a big increase in the number of people playing the lottery.

Pacific Trust Bank – the place to stash your cash.

The Light Green Account
America's first fully-transactional, flexible 2nd mortgage account

Did you lock in a fixed interest rate on your first mortgage when rates were at or near their all-time lows?

If so, your current 1st mortgage rate may be too good to consider refinancing at this time. But, you may need to access your increased home equity.

Simplify Your Finances

Wouldn't you like to simplify your finances and have the Green Account’s flexibility and fully-transactional benefits? We have the solution – It’s another shade of Green.

Now, there’s a 2nd mortgage Home Equity Green Account - we call it “Light Green” - that allows homeowners to keep their existing low-rate first mortgage. You can still simplify your finances and reap all of the Green Account’s advantages.

Here's How It Works

Light Green works in exactly the same way as our first mortgage Green Account, and it’s fully-transactional with complete payment flexibility.

You can use Light Green to combine and replace your checking, savings, line of credit and other accounts. All Light Green deposits immediately reduce the loan balance to lower your finance charges. Each withdrawal increases your Light Green loan balance.

You can access funds as frequently as desired (up to your credit limit), by check, debit card, ATM or other means, and use HomeAccess Online Banking and Bill Payment to monitor and manage your funds.

Two Light Green Rate Adjustment Programs

You can choose a Light Green account with an initial interest rate that is fixed for 3 years and adjustable monthly thereafter, or our monthly-adjustable Light Green program. Light Green interest rates as low as one-half percent below Prime are currently available (other interest rates/margins may apply depending on your financial circumstances).

Your initial Annual Percentage Rate ("APR") and the margin used for subsequent rate adjustments depends on the credit limit you choose relative to your home's value (your combined loan to value ratio or 'CLTV' - your 1st mortgage balance plus the Light Green credit limit, divided by your home's value).

An Example of Light Green at Work:

The Light Green monthly-adjustable initial APR for a 70% or less CLTV owner-occupied home that is originated during August 2006 will be 7.75%. That's the major bank Prime Rate of 8.25% reported for 7/1/06 in the Wall Street Journal, less one-half percent (or Prime plus a margin of -0.50%)*.

Initial Interest Rates for the 3-Year Fixed/Monthly-Adjustable Light Green program can vary each day based on current market conditions. Please call us for current offering rate terms and rate lock-in options.

On its first rate change date and each month thereafter, your rate will adjust to equal the Prime Rate in effect for the first day of the previous month plus a margin, as specified in your credit agreement. The Light Green account has no minimum APR, but your APR will never exceed 12.00%.

Get More Information

Please see our web site for additional information to see if a Light Green Account or our 1st mortgage Green Account is right for you.

For current interest rates, margins and available credit limits applicable for your property and financial situation, or to talk over your home financing needs, call us toll-free at (877) 441-BANK. We're here to help.

* Assumes good credit and an owner-occupied 1-4 family California residence with combined 1st and 2nd mortgage credit of $1.5 million or less. Other terms may apply, and Light Green loan terms are also available on second homes and investor-owned properties. The minimum Light Green credit limit is $50,000.

A GREAT RATE, AND WE'RE NOT TEASING!

The Federal Reserve has hiked the Fed Funds Rate an amazing 15 times since July 2004. To put this in perspective, the Fed Funds Rate stands at 4.75% as of April 1,2006, compared to just 1.00% before the rate hikes began. Many economists predict even more rate hikes in the future.

Rate Hikes Haven't Helped All Investors

Although yields on many types of investments are driven by changes the target Fed Funds rate, it doesn’t necessarily mean investors have benefited from this increase in rate levels.

Investors who had placed their money in bonds and other “fixed-income” securities have seen the value of their investments decline (as interest rates rise, bond prices go down).

In fact, very few investments have performed well over this period of time. But, there is a place where your investment returns can keep up with the Fed rate hikes.

Market Rate Returns

The place to stash your cash is our Indexed Money Market Account. It pays an Annual Percentage Yield ("APY") that’s indexed to market rates and is adjusted weekly. The Indexed Money Market Account is a money market deposit account (or MMDA, an overnight savings account).

Teaser rates Are Just That

Other institutions may advertise a high yield, but such offers are usually designed to get your business with a limited-time "Teaser Rate". After the promotion period ends, those accounts usually pay much lower rates that are arbitrarily set by the bank's management.

The Power of Pacific Trust's Indexed Account

Pacific Trust Bank’s Indexed Money Market Account is superior because it will always earn a highly competitive rate of return.

That's because the account's Annual Percentage Yield is "indexed". Its APY resets weekly to equal the most recent three-month US Treasury Bill auction rate.

The account has no service charges and no early withdrawal penalties. The minimum required to open this account and earn the disclosed annual percentage yield is $25,000.

With its high earnings rates, immediate funds availability, and FDIC insurance safety, Pacific Trust’s Indexed Money Market Account is the place to stash your cash.

WARNING TO HEIRS
ID Thiefs Target the Deceased

Identity thieves will stop at nothing – not even the death of the intended victim – when it comes to stealing someone's personal information to commit fraud. It has recently been reported that criminals regularly scour obituaries and other sources for personal information that can be used to commit fraud.

Crafty criminals look for personal details about the deceased in obituaries (in the newspaper or online), genealogy Web sites, death certificates and other sources. Armed with personal information, such as a full name, address and date of birth, an ID thief may be able to obtain a new Social Security card, a driver's license, or loans and credit cards, even though the victim is no longer alive.

5 Important Steps for Families After a Loved One Dies:

1. Limit the amount of personal information in obituaries. It's a good idea to leave out the exact birth date of the deceased. If anything, provide only the birth year.

2. Consider omitting a wife's maiden name, because many financial institutions use a mother's maiden name as a security password. If an obituary publicizes a woman's maiden name and lists her children, an identity thief may be able to use that and other information to order credit cards or otherwise go on a spending spree in the childrens' names.

3. Obtain several copies of the death certificate, and then proceed to close bank, brokerage, credit card and other accounts as needed.

4. Ask your attorney or accountant for advice about closing and reopening accounts in survivors' names.

5. Also, quickly report the death to the Social Security Administration and the fraud departments of all three major credit bureaus. Financial institutions rely on these when handling credit applications.

It's important to help prevent identity thieves from assuming the deceased person's identity before the estate is settled. Otherwise, there may be credit extended to the fraudsters that will need to be resolved before distributions can be made to heirs.

DIRECT DEPOSIT
The Safer, Easier Choice

Direct deposit of payroll checks has made life safer and more convenient for thousands of workers. It eliminates the risk of lost or stolen checks, and helps protect against fraud and identity theft.

Furthermore, direct deposit provides you with immediate access to your money from virtually everywhere, which can be vitally important in the case of a natural disaster or a major life change.

You can get these same advantages for your Social Security or other government payments by signing up for direct deposit on the Internet or with just one phone call.

Pacific Trust Bank is proud to partner with Go Direct – a campaign sponsored by the U.S. Department of the Treasury and the Federal Reserve Banks to inform people who receive federal benefits about the advantages of direct deposit and help them sign up.

With direct deposit, you have:

• The safest method of receiving your payment
  
• An easier, more convenient way to access your money
  
• Control over your money and your time

Direct deposit also saves taxpayers millions of dollars. If every person who receives federal benefit checks in California would switch to direct deposit, it would save taxpayers approximately $8.5 million a year. Almost all the money saved remains in the Social Security Trust Fund – a benefit to all Americans for years to come.

Switching to direct deposit is a small but important way that people who get Social Security and Supplemental Security Income (SSI) checks can improve their lives. And it just takes a few minutes to sign up.

Go Direct makes it easy for people who get Social Security and SSI to sign up for direct deposit – they can call the toll-free help line(800) 333-1795 or sign up online at www.GoDirect.org, or by clicking on the GoDirect link on our web site.

If you or those close to you are still receiving Social Security or other federal benefits by check, we urge you to look into switching to the safest, easiest option – direct deposit – today!

FDIC Insurance has Increased

Your deposits at Pacific Trust Bank are insured to at least $100,000 by the Federal Deposit Insurance Corporation, an agency of the U.S. Government.

Now, in addition, your retirement funds on deposit at Pacific Trust Bank will now be separately insured up to $250,000 by the FDIC, up from the $100,000 previous limit.

The higher insurance coverage applies primarily to traditional and Roth IRAs (Individual Retirement Accounts). Also included are self-directed Keogh accounts, "457 Plan" accounts for state government employees, and employer-sponsored "defined contribution plan" accounts that are self-directed, which are primarily 401(k) accounts.

Under the FDIC's new rules, effective April 1, 2006, all of your Pacific Trust Bank deposits that are in this broad category of retirement accounts are added together and the total is insured up to $250,000. Your retirement accounts also are separately insured from any other deposits you may have at Pacific Trust.

This increase to $250,000 for retirement accounts is important because many people saving money for their retirement have accumulated well in excess of $100,000.

With the higher FDIC coverage, our competitive yields, banking convenience and no IRA account administration fees, Pacific Trust is the place to stash your retirement cash.

The basic insurance coverage for other deposit accounts is still $100,000. However, as before, there are ways to qualify for far more than the basic coverage at Pacific Trust Bank.

Please call us, come in to any branch or visit our web site for more information about FDIC deposit insurance coverage.

More Reasons to Love the Green Account!

Pacific Trust’s revolutionary new first mortgage product, the Green Account, has proven extremely popular, and now there are more reasons to get one!

Customers are raving about its fully-transactional and flexible features that allow them to simplify their finances by using it as their checking, savings and line of credit all in one account.

Several customers have refinanced their existing home’s first mortgage and second mortgage home equity lines of credit into a Green Account. They like having just one account with the convenience of direct deposit and the flexibility to make deposits or withdrawals as frequently as desired within their credit limit.

Great for Investment Property Owners

Other customers have found that an investment property Green Account makes great sense for managing their related business finances.

Their lease security deposits, rent receipts and other property revenue immediately reduces the Green Account loan balance and lowers interest expense. It’s far superior to keeping funds in a non-interest bearing business checking account.

Investment property owners can also use their Green Account debit card or write checks to pay for maintenance, repairs, taxes or other property-related expenses, and keep track of all the related transactions in one account statement or online using HomeAccess. It’s the best of all possible worlds!

Light Green - A Second Alternative

If you don’t want to refinance your first mortgage, for whatever reason, but need additional home financing and would like to have the Green Account’s flexibility and fully-transactional benefits, we have the solution – It’s another shade of green.

Introducing a second mortgage Green Account we affectionately call “Light Green”. It allows homeowners to keep their existing low-rate first mortgage while still simplifying your finances and reaping all of the Green Account’s fully-transactional advantages.

You can use Light Green to combine and replace your checking, savings, line of credit and other accounts.

All Light Green deposits immediately reduce the loan balance to lower your finance charges, while each withdrawal increases your Light Green loan balance.

You can access funds as frequently as desired (up to your Light Green credit limit), by check, debit card or ATM, and use HomeAccess Online Banking and Bill Payment to monitor and manage your funds.

Light Green is a home equity line of credit with a variable interest rate that adjusts monthly based on the major bank Prime Rate plus a margin. Rates as low as one-half percent below Prime are currently available through March 2006, with other rates available depending on your specific financial circumstances.

Please call us for current interest rates, margins and available credit limits applicable for your situation. Or, click here to get all the details about the Green Account and new Light Green 2nd mortgage.

If you locked in a fixed-rate home loan when rates were at all time lows, then your existing interest rate just may be too good to refinance, and our standard Green Account may not be appropriate for your current financial situation.

However, if you have a second mortgage or other higher-rate debts to consolidate, or desire to be able to access your home’s increased equity, then the Light Green Account may be ideal for you.

INTERNET SECURITY

Internet Security is frequently in the news for good reason.

If your personal computer doesn't have adequate security, others may gain unauthorized access to the information stored on your PC or your browser. With this information they can also gain access to your accounts and personal information. You should take precautions to protect your computer from unauthorized access and use.

Pacific Trust Bank is committed to ensuring that your account information on the Internet is safe. We take all possible steps to establish a secure, encrypted connection after you click on the HomeAccess Log-In link on Pacific Trust’s web site and enter your sign-on information.

Here are a few tips to help you safeguard your personal and account information when using online services:

• Install anti-virus software, a firewall and spyware-detection software on your PC; and update this software on a regular basis, as recommended by the software providers. Remember, new viruses continue to be created. Always check to make sure the security software is running before accessing the Internet.

• Do not respond to emails, web pages or telephone inquiries requesting you to verify your account information. Pacific Trust will never ask you to verify your account information, user name or password, via an email using a non-secure web site. Never provide personal or account information or respond to any attempt to collect this.

• Keep your PC and browser updated with current patches that are released by your system vendor. Be sure to download patches only from official vendors' web sites, and not from third-party providers.

• Forward all suspicious emails claiming to be from Pacific Trust to us at mail@pacifictrustbank.com, as well as to your Internet Service Provider. For more information on Identity Theft and Phishing, or when Pacific Trust may contact you via email, Click Here.

• Never share your password with anyone, even someone you know. On Pacific Trust’s HomeAccess Online banking system, you can select your own online password and change it as often as you’d like. Do not use numbers or words that can be easily guessed, such as your phone or street number, or your child’s name.

ONLINE ATTACK

Fraudulent “Phishing” e-mails are continuously being circulated claiming to be from banks, a government agency or other seemingly legitimate party. They contain warnings about your account and urge you to respond immediately by providing personal or financial information.

Lately, some of these crooks are also attempting to contact people by phone to gather their personal financial data, including account or debit card information.

Beware of any unsolicited emails or phone calls that threaten account closure or cancellation of your online banking services if you do not respond to an urgent request for action, including providing personal or account information.

It is important to keep this in mind at all times:

• Never provide personal or account information in response to an unsolicited request of any kind.

• Never open attachments in emails from unknown sources or if the email looks suspicious.

• For your protection, we recommend that you carefully review your bank account transaction detail on a regular basis through Pacific Trust’s HomeAccess Online Banking system.

If you believe any unsolicited e-mail phone call or other contact from Pacific Trust may be legitimate, contact Pacific Trust Bank directly at 877-441-BANK for verification.

The Federal Trade Commission has a new online fraud prevention web site: www.onguardonline.gov.

It provides tips, articles, and videos about cybercrime. Other features include quizzes on identity theft, spam, and scams such as phishing. The site also tells consumers how to monitor their credit histories, use effective passwords, and recover from identity theft.

Identity Theft Is Now on the Rise

Fraud related to identity theft is one of America’s fastest growing crimes. There are two main types of crime related to identity theft:

Account takeover – The identity thief acquires a person's existing credit or bank account information and either withdraws money or makes purchases. Victims usually learn of account takeover when they receive their monthly credit card or bank account statement or a credit report.

Opening new accounts – The identity thief uses another person's SSN and other identifying information to fraudulently open new accounts for financial gain. Victims may be unaware of the fraud for an extended period of time, which can allow the criminal to continue the ruse for months or even years.

How do they get your personal data?

Identity theft fraud takes many forms, from low-tech mail theft and dumpster diving to phishing emails and phone scams. In fact, most ID theft originates from non-online sources (stolen mail, wallets and purses, credit card receipts, etc.).

Phishing... is an identity theft scam discussed in previous Focus On Finance newsletters. Thieves hope to hook you into revealing personal financial information (such as bank account numbers, usernames and passwords, and Social Security Numbers) by sending you e-mails that appear to come from real banks or major corporations. The fake e-mails often contain links to fake web sites that look just like the company's real site.

With this information, ID thieves can takeover your existing bank or credit accounts or open new accounts, and steal your money and rack up new debt in your name.

In 1998 Congress passed the Identity Theft and Assumption Deterrence Act, which makes it a federal crime to use another person's identification with the intent to commit unlawful activity. Now, there’s a new law that makes attempts to “steal” your personal data illegal.

California is the first state in the nation to make phishing a crime. The Anti-Phishing Act of 2005 was signed into law on 30 September 2005, and makes phishing punishable by penalties as high as $2,500 per violation. Phishing scam victims may seek to recover either the cost of the damages they have suffered or $500,000, whichever is greater, from the perpetrators.

Phishing messages could originate from anywhere in the world, and culprits are hard to locate and apprehend. So, the new California law may not reduce the number of phishing attacks or result in many convictions. The best protection from phishing scams and identity theft is to be alert and safeguard your personal information.

How to protect your personal data

Shred your account statements and other documents containing such data prior to throwing it away. Don’t click on links in e-mails supposedly from a financial institution or business, and never provide identity or account data in response. Never provide such information by phone, either, unless you have an existing relationship with the business or agency AND you initiate the call using a verified phone number.

If you have replied to such a scam — especially if you've provided identity or account information — notify the appropriate businesses or institutions immediately.

GO GREEN AND SAVE
Simplify your finances with a Green Account

The Green Account is America’s first fully-transactional and flexible mortgage. While revolutionary, it's not at all complex. In fact, it is very simple.

In a single Green Account relationship, you could have the combined features and benefits of a mortgage, line of credit, checking and savings account! You probably already have all of these accounts, and some may have account or usage fees and minimum balance requirements.

Presently, you put your income into a checking account and it just sits there until you pay bills or you move it to another account... trying to get the best return on your money. You make payments on your mortgage and other debts, all the while paying much higher finance charge rates than earned on your savings.

This is unnecessarily complex and inefficient, both in terms of time and effort it takes to manage your personal finances, and in the financial outcomes.

Call us today and get all the details about the Green Account. Or, check it out on our web site. When you consider how rewarding the Green Account can be in simplifying your personal finances, it’s just awesome – simply awesome.

"ALL ABOUT THE GREEN"

The Green Account is America's first mortgage account that helps you manage all aspects of your finances.

With some of the lowest home loan interest rates in decades now available, it almost couldn't get any better for potential borrowers.

But it just got better!

Pacific Trust bank is proud to introduce the Green Account - a revolutionary new way to pay for your home, lower your interest charges, reduce the length of your loan and manage your daily finances. This account is so exceptional that it is considered the first of its kind in the entire United States. And now, as a Pacific Trust customer, you can have the advantages that no one else in the country enjoys!

Features and Benefits

The Green Account combines the features of a mortgage loan, line of credit, and savings and checking accounts into a single package. It has a 15-year term, during which time you can make deposits (loan principal payments) and withdrawals (loan advances) up to your credit limit as frequently as desired, and as conveniently as using your personal checking account. It allows all types of deposits and withdrawals to be performed, including direct deposit, check or debit card, ATM transactions, and internet banking and bill payer service.

Here's How It Works

According to Pacific Trust Bank's president and CEO, Hans Ganz: "Instead of making payments on a traditional mortgage, and keeping separate checking and savings accounts, you can now save thousands of dollars in interest rate charges, build equity in your home and pay off your loan faster with a Green Account."

Because every deposit is a principal loan payment, you effectively earn the Green Account mortgage interest rate on funds you would otherwise keep in low interest accounts. Normally, people deposit funds into a low-yielding or non-interest bearing checking account and the money stays there until it's withdrawn.

By depositing income and other funds into a Green Account mortgage, its loan balance is reduced until the funds are withdrawn, and this results in less interest expense for the borrower. The result could save you a small fortune over the life of the loan and help cut years off your mortgage.

And, because Green Account interest is calculated daily, based on each day's ending loan balance, borrowers immediately benefit from every deposit with reduced interest expense, unlike traditional mortgage interest calculated on a monthly basis without regard to when the payment is made.

The Green Account is the freshest approach to home loans that come along in decades. Don't miss out on this excellent opportunity to help your personal financial situation. Soon the whole country will be talking about it!

The Green Account is one of the most exciting mortgage loan programs to be introduced in years. To help you further understand its benefits, here are answers to some of the most commonly asked questions.

For an extensive list of detailed questions and answers, please go to our web site and click on "Green Account FAQs."

Q: What is a Green Account?
A: The Green Account is a flexible 1st mortgage line of credit account that is the first to feature full banking transaction service capabilities.

Q: What is my "credit limit"?
A: Your credit limit is the maximum amount you can borrow under the terms on the Green Account. Your credit limit will be based on the value of your home and your requested amount. Green Account credit limits of $300,000 to $2.5 million or up to 80% of your home's value are available. If your home value increases, however, you may request that your credit limit be increased or, if desired, you could request us to lower it.

Q: How do I make payments?
A: Every time you make a deposit to your Green Account, in effect you are making a payment that reduces your outstanding loan balance by that amount. No separate or additional loan payments need to be made, unless you have reached your credit limit.

Q: Should I close my old checking and savings accounts?
A: This is the ideal account to manage your cash flow. The effectiveness of the Green Account is maximized when as much of your finances flow through the account as possible. The more funds you put into the account, the lower your daily principal balance, and the more interest you save.

Q: How and when does my payment change?
A: The interest-only minimum payment due on your Green Account loan will change monthly, based on fluctuations in your daily account balance and changes to your loan's interest rate. Please see the "Important Terms Of Our Green Account" disclosures for complete details regarding your choice of Index and rate adjustment frequency terms.

Q: Do I need to change my money spending habits?
A: No. There should be no need to change anything you do. Your income and other funds are simply deposited into your Green Account instead of your checking account. Since the deposits will be going towards principal, and reduce your finance charges, you'll likely come out way ahead and be able to payoff your loan faster. Also, since your minimum monthly payment is interest only, compared with making traditional mortgage payments you'll have more funds available if needed for other purposes.

Q: Does the Green Account fit my personal financial situation?
A: While almost anyone could benefit from the Green Account's many advantages, it is ideally suited to those who have uneven cash flow (such as investors, business owners, and those on commission),and for cash management purposes by investment property owners.

Q: Is the interest I pay on the Green Account tax deductible?
A: Since this is a mortgage, the interest you pay may be tax deductible. Please consult your tax advisor for more guidance.

To see if a Green Account is right for you, discuss your home financing needs with a Pacific Trust Bank loan officer. We're here to help. Call us toll-free at (877) 441-BANK.

Paying With A Check?
Don't get taken to the cleaners by Check Washing!

Past Focus On Finance issues reported on Identity Theft, “phishing” and other high-tech scam safety tips. But, here’s a common non-technical fraud scheme that can take money right out of your bank account.

Forgers are stealing your mail and ‘washing’ your checks.

Thieves literally bleach out the ink on the check, write a new payee name and fill in whatever dollar amount they think they can get away with.

All it takes to clean out your bank account is a signed check swiped from your outgoing mail and the chemical acetone commonly found in nail polish remover, says Frank W. Abagnale Jr., the former check forger and identity thief depicted by Leonardo DiCaprio in the movie 'Catch Me If You Can'.

It works like this: The crook steals outgoing paid bills from your mailbox and places a piece of cellophane tape over the front and back of your signature on the check. Then he or she places the check into a pan of acetone or nail polish remover for about 30 minutes—which lifts anything that's not printer's ink, except for your tape-protected signature. The check is then blow-dried and flattened in a book, and the tape is carefully removed to yield a blank check, signed by you.

About $815 million of (fraudulent) checks each year have been stolen out of mail boxes and washed with a chemical to change the information on the dollar amount ... or who the check's made out to.

Thwart Check Washing – Use a Gel Pen

Only one type of ink — the kind in gel pens — is counterfeit-proof to acetone or any other chemical used in "check washing" says Abagnale, who now consults law enforcement and corporations on the art of the steal. "I personally sign all my checks and important documents with one."

Here are tips to safeguard your checking account:

• Use a black or dark blue Gel Pen to write your checks.
  

• Fill in all the lines of your check, including the memo.
  

• Mail your bills at the post office. 99% of washed checks are stolen from private mailboxes.
  

• Avoid leaving mail in a box on Sundays and holidays, when letter carriers don't work.
  

• Review your bank statements carefully.

Spring Cleaning – Time to Get Your Financial House in Order

According to the US Naval Observatory, the sun passed through the Vernal Equinox on March 20, 2005 at exactly 4:34 AM PST, marking the beginning of spring in the Northern Hemisphere.

Spring Cleaning is a long standing tradition for many households. It’s also a good idea for your personal finances.

You have probably accumulated numerous financial account relationships, many of which you may not currently use or may just be undesirable “clutter” for your financial household. Now is the time to take a closer look at these.

On the one hand, you may have piled up a collection of credit cards, retail store card accounts, other loans or line of credit accounts. While having available credit is a good thing, having an excessive number of credit account relationships is potentially very dangerous.

On the other hand, you may have established several personal banking account relationships with various financial institutions. While there are good valid reasons for having several account relations – to allocate funds to checking and savings, accommodate individual and joint ownership relationships, segregate IRA or other retirement funds, etc. – an excessive number of accounts can be inefficient, difficult to manage, and prove costly.

Clean Up Your Credit Accounts

For most of us, not a week goes by without several credit card special offers coming in the mail. And retail stores entice shoppers with one time discounts on purchases with an application for a new store credit account.

One risk of having so many credit accounts is Identity Theft.

The more open accounts you have open, the more likely that fraudsters will gain access to your account information. The ID thief will have the account’s mailing address changed, and then quickly rack up thousands of dollars of charges on your accounts.

For accounts that you don’t often use or forgot about, you’re probably not going to miss a billing statement or notice unusual account activity – that is, until the debt collection agencies call or your credit is ruined.

How Many Cards Do You Need?

Financial experts say that most people need only two - a debit card for most transactions, and a low-rate, no-frills credit card for those who carry over balances from month to month.

Consolidating all of your credit card debt into a lower-rate loan, such as a home equity line of credit, can be a good idea, but be careful.

You want to make sure you still have an adequate level of unused available credit, but that you don’t fall back into the credit card debt trap. And, closing credit accounts you’ve had for a long time could wind up hurting your credit score. Lenders like a history of reliable payments on your part, and also that you are not at or near your credit limits.

Tidy Up Your Bank Accounts

Many of us move from job to job, city to city, and in the process open numerous banking, retirement fund and brokerage accounts. Owning accounts scattered among several financial institutions can be a record-keeping nightmare, and costs you money.

By consolidating balances moving those accounts to Pacific Trust Bank, you can get either no fee or lower fees that most other banks for the services you use most. And our savings account interest rates are tiered – we pay a higher rate for bigger account balances. So, by consolidating accounts you can more easily avoid account fees and earn a higher rate on your savings.

Those of you with very large savings balances, however, may be concerned that the Federal Deposit Insurance Corp. (FDIC) insures deposit accounts only up to $100,000 per individual at Pacific Trust Bank. However, other account categories, like IRAs and trusts, are insured separately up to $250,000 each, and by structuring account ownership through a family trust, or jointly with multiple family members, the amount of FDIC coverage at Pacific Trust Bank can be increased. See the examples in the table below:

See our FDIC Info web page for more information, and "EDIE": The FDIC's "Electronic Deposit Insurance Estimator" to help manage your own account relationships for maximization of your FDIC deposit insurance coverage, or you can call us for more information at (877) 441-BANK.

Don’t Rest with your Retirement Funds

One of the smartest things to do for your financial future is to invest in your employer’s 401(k) plan. But, by moving from job to job, you may wind up with several small retirement plans that are difficult to properly manage.

Most financial advisers recommend you move retirement plan funds at the old job into either a traditional Individual Retirement Account (IRA), or into your new employer's 401(k) plan if allowed. It’s a mistake to cash out of the old plan, since you have to pay taxes on the money withdrawn along with a 10% penalty if you're under age 59½.

For those with numerous IRA accounts, as you approach retirement age it's a good idea to consolidate those plans into one account. Again a single larger balance account could earn higher rates of return and minimize account management fees. Also, it’s easier to calculate required distributions. If you forget to take the required minimum distributions after age 70½, you'll be hit with steep penalties and taxes.

Organizing your Investments

Easter time reminds us that it’s not good to have all your eggs in one basket. Hence: diversification for your investments is a good thing.

Like your bank accounts, however, too much diversification into numerous smaller accounts is difficult to manage, and can be expensive since you're paying fees for each investment sale and purchase transaction and to each of your mutual fund managers. For improved investment efficiency, consider a strategy of investing in just one to three diversified funds. Often, you can avoid fund transfer fees when actively managing your accounts by picking a large “fund family” that allows you to transfer among their various component specialty funds without added cost.

Spring Cleaning Rules

The rules for household and financial spring cleaning are similar: decide what to keep and spiff it up; lose the unneeded or unused junk; and if things don’t work, get top-notch replacements.

If you’d like help getting your financial house in order, Pacific Trust Bank is the place to stash your cash. Compare us for your checking, savings, and IRA needs. We’ve got better rates, fewer fees, and service so good it’s guaranteed.

Customers rave about HomeAccess Online Banking

Our HomeAccess online banking system is available free of change to all of our customers, and includes free “pay anyone” unlimited online bill payment transactions from your personal checking account.

HomeAccess features also include: instant real-time transfers of funds between your accounts; online check image retrieval (click on the check number and view the front and back of your check); and ability to create your own account “nicknames” that show both online and on your monthly statement.

Our most recent HomeAccess upgrade was to improve the export capabilities of your bank account history to Quicken, Quickbooks, or Microsoft Money.

Here’s an example of our customer’s views about HomeAccess, recently sent by Lawrence Wilson (name used by permission):

“Your monthly Focus On Finance might better serve the bank if you’d extol the virtues of your online banking system.

Before you opened your Rancho Bernardo Branch, I did my online banking first thru CitiCorp, then thru Bank of America. Both of your competitor’s systems pale in comparison to Pacific Trust’s system. You may quote me if you like.”

If you’re not banking online yet with Pacific Trust Bank, come in or call us and we’ll be glad to help you get started.

If you're already signed-up for HomeAccess, online banking convenience is just a click away.

Coin Machines

Pacific Trust Bank’s free self service coin machines are now available at all our full-service office locations. Whether you are a Bank customers or not, individuals and families are encouraged to bring their change in to be counted and exchanged for cash or a deposit into their Pacific Trust Bank account.

Beware – Junk Mail Advertisers Impersonating Banks

A growing complaint of homeowners is all the junk mail that comes shortly after obtaining a mortgage from a bank or refinancing their home.

The name of the customer’s bank usually appears somewhere on the front of the envelope, along with a return address such as “Loan Processing Center.” Sometimes the front of the envelope also says “Important mortgage information enclosed,” or something similar.

Inside is an advertisement suggesting that the recipient refinance at a lower interest rate, or buy some insurance product, and lists the amount, current interest rate, and other details about the customer’s loan with the actual bank.

The message looks like it's from your bank, but it’s not. In fact, banks want this practice to stop.

How did they get your loan information?

Your bank did not give or sell your financial data to marketers, or to anyone else. Most customers do not realize that their loan information is available to anyone who visits a county recorder’s office or title company and requests recently recorded mortgages and trust deeds.

Bank imposters (non-bank finance companies, or loan and insurance brokers) usually get names and mortgage information from public records, then send mailings that appear to be from the bank where the recipient has their mortgage.

Help Is On The Way

A new California law taking effect Jan. 1, 2005 will let state regulators issue cease-and-desist orders to non-bank entities that pose as banks in mailings pitching insurance products or mortgage refinancing. The bank being impersonated would have to file a complaint, but we don’t get these mailings – you do.

For Pacific Trust Bank borrowers, please send us any marketing materials you may receive that contains the unauthorized use of our name or logo, and we will take the appropriate steps to have this unethical practice stopped.