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In Your Corner Magazine | Summer 2021

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In Your Corner ISSUE 8 | 2021 C H A M P I O N I N G T H E P E O P L E & B U S I N E S S E S B U I L D I N G C A L I F O R N I A

Rediscover the adventures of life the world Rejoining

In this issue ISSUE 8 | 2021

With 2021 more than halfway over, it’s an exciting time of optimism and change. As we embark on a steady path to what life looked like pre-pandemic, we are seeing the following optimistic trends: the economy rebounding and a renewed focus on what’s important in our lives. As we begin reuniting with others and rejoining the world, we’re thrilled to highlight some informative and timely content in this issue of In Your Corner magazine. We’re shining a spotlight on the positive developments in California’s Central Valley. We deep dive into Fresno’s new mayor, Jerry Dyer’s six-step plan, highlight a thriving Central Valley agricultural business and we get insights from Fresno commercial real estate leader, DeWayne Zinkin Sr. We also feature relevant topics such as investing in a second home during this competitive housing market, traveling during this time of transition and much more.

We see great things ahead for California and we look forward to serving you and your financial needs.

HIGHLIGHTS

STRATEGIC SAVINGS Insight into a 529 College Savings Plan

GROWING SUCCESS Gourmet Trading Company finds its niche

FRESNO REFRESHER Fresno is working toward its "great city" destiny

ACHIEVING GREAT HEIGHTS DeWayne Zinkin Sr.

TWICE AS NICE Could a second home be in your future?

CONTRIBUTORS Michelle Rapaport, Diana Ramos, Mike Hall, Kathryn Guinn, Margaret Sweat, Michelle Jacoby, Nathan Joseph, Bruce Farr, Debra Gelbart, Sally Clasen, Aaron Berman

VP | MARKETING MANAGER Angelia Hage COMMUNICATIONS OFFICER Kari Luu

PUBLISHER California Bank & Trust (CB&T)

EVP | DIRECTOR OF MARKETING Jathan Segur

COPY EDITOR Robyn Lee

VP | CREATIVE DIRECTOR Ron Gligic

In Your Corner magazine may contain trademarks or trade names owned by parties who are not affiliated with California Bank & Trust, Zions Bancorporation, N.A. or its affiliates. Use of such marks does not imply any sponsorship by or affiliation with third parties, and California Bank & Trust does not claim any ownership of or make representations about products and services offered under or associated with such marks. Articles are offered for informational purposes only and should not be construed as tax, legal, financial or business advice. Please contact a professional about your specific needs and advice.

Travel is back—it just looks a little different *

Now boarding BY SALLY J . CLASEN

I T’S BEEN A LONG year of quarantines, lockdowns and not moving about the world freely due to COVID-19. But the coronavirus cloud that has darkened the planet is starting to lift with declining infection rates and vaccines available around the globe. And as the virus storm clears, countries are slowly putting out their welcome mats again, which means travel is back. What that exactly looks like post-pandemic remains unclear, but people are ready to escape their narrow social perimeters and hit the open road for just about anywhere.

still exist in the U.S. and abroad with regard to pandemic safety and vigilance in preventing a virus resurgence. The Centers for Disease Control (CDC) currently recommends that fully vaccinated individuals can travel safely in the U.S. and its territories, but to delay travel if one isn’t fully vaccinated. Many places, like California, continue to ask residents to avoid nonessential travel outside of the state. In addition, international destinations are changing travel restrictions constantly and many require visitors to show proof of vaccination, take a COVID-19 test and/or quarantine depending on inbound policies. All air passengers coming to the United States, including U.S. citizens and fully vaccinated people, are required to have a negative COVID-19 test result no

Rules of engagement Despite the enthusiasm to go, travel restrictions

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more than three days before travel or documentation of recovery from COVID-19 in the past three months before they board a flight to the United States.

that 80 percent of trips planned were road trips, and the trend will continue in 2021, according to industry forecaster MMGY Global. In addition, the RV Industry Association estimates more than 500,000 new RVs will ship in 2021, a 20 percent boost from last year. Some in the industry are even attracting visitors to their locales with marketing campaigns that promote non-airline travel. The Arizona Office of Tourism, for example, designated 2021 “The Year of the Road Trip.” Travel by train is also gaining steam as an option to avoid crowded airport security lines and packed cabin seating. In April, Amtrak, which primarily serves the northeastern states, announced improvements and expansion to its current service area with future plans to add passenger routes in places such as Nashville, Louisville, Las Vegas and Phoenix. The North American cruise business, which has been docked since March 2020 because of the CDC’s no-sail order, has generated interest in smaller ships and riverboat cruising, which are exempt from the agency’s Framework for Conditional Sailing that applies to ships carrying 250 passengers. Smaller cruise ships have a reputation for being “pandemic proof” because they are less crowded and can travel closer to land. In consumer and travel industry surveys, river cruises rank among the most desired modes of travel domestically and internationally. Major cruise operators plan to lift anchor this summer with 21 new vessels introduced by year’s end. Many lines now require all crew and passengers be fully vaccinated and show proof to sail, and rapid COVID testing of those not vaccinated before and after departure, per CDC’s guidelines. In addition, such policies as temperature checks, mandatory masks in designated areas, social distancing and elimination of buffets may be part of the experience. A different sort of trip It remains to be seen what travel post-COVID will look like in the coming months. As travel trends show Americans starting to plan for overseas trips, safety concerns and government health requirements imposed by most countries add more complexities. It’s clear that travelers will need to be flexible and nimble as they plan for a trip, especially outside the U.S. in a post-pandemic environment, suggests Sandra Arguello, Product Management Team Leader at Zions Bancorporation. “One way to accomplish this is to check off the

Safety first Perhaps the best line of collective defense

against another COVID pandemic—and keeping the doors open to travel—is the rollout of vaccines across the globe. In the U.S., everyone 12 years of age and older is now eligible to get a COVID-19 vaccination. As more people become fully vaccinated, some countries also are waiving quarantine and testing mandates for visitors. Yet, masks continue to be a required international accessory regardless of vaccine program participation. If you are headed to a U.S. airport, the TSA requires that all domestic and international travelers wear face masks

throughout the travel experience including in airports and at security screening checkpoints. In addition, all major U.S.

airlines require face masks for

passengers age 2 and older, though

passengers are allowed to lower their coverings while eating or drinking on board. But keep in mind, what’s acceptable in terms of face coverings varies by airline, so check an individual

carrier’s policy for specific guidelines.

Getting there How one gets to their destination nowadays might look a bit different, too. Flight bookings are increasing (TSA recorded its highest passenger screening in a year in May 2021), but many are still apprehensive about flying due to the close confines of air travel and the risk of exposure. In response, there’s been an uptick in social- distance friendly travel in the U.S. Last fall, the American Automobile Association (AAA) reported

IN YOUR CORNER ISSUE 8 | 2021

restaurant? Each option is one piece of the puzzle, but even more important when you’re traveling internationally,” she said.

The baggage of travel recovery

The pandemic decimated the tourism industry with

unemployment, lost revenues and business shutdowns. Since the beginning of March 2020

and through the end of the year, the U.S. travel industry experienced $492 billion in cumulative losses, according to the U.S. Travel Association. The good news for the economy is people are invested in travel. Over Memorial Day weekend, the TSA reported 7.1 million people were screened at U.S. airport checkpoints, with Friday the highest single travel day

things you can control before leaving home,” she said. In addition to staying current with the local health regulations and airline rules, she recommends travelers verify their transportation logistics and secure some of the local currency before they leave home. “It’s about saving time and doing the things you need to do in a trustworthy and safe environment,” Arguello said. “Visiting your local bank and getting local currency ahead of time is one more thing that will make your vacation a little less stressful.” And while COVID-19 complicates matters, travelers shouldn’t go looking for trouble unnecessarily—in overcrowded lines or unfamiliar places, according to Arguello. “Don’t expose yourself to vulnerable situations more than you need to,” she said. “You don’t want to be at a busy airport kiosk or ATM on the street where everyone can see you making a currency exchange. Take care of what you can with a trusted provider at home so you don’t have all eyes on you while you’re getting cash.” Arguello also advises travelers to use a combination of payment options such as credit cards, local currency and touchless, digital wallet payment apps through Apple and Google (if they are an accepted payment form in the country), which are more secure and decrease human interaction. “Travelers should educate themselves on the local practices beforehand. Are U.S. dollars used? Will paying in local currency be better? Do you want to let your credit card be taken out of sight at a

since March 2020 when COVID-19 slashed air travel demand and only 1.96 million people were screened. It also appears that Americans are interested in exploring their own backyards: 74 percent of U.S. citizens stated they would book domestic beach adventures and other vacations featuring wide open spaces this summer, according to Tripadvisor. Job recovery also looks promising. In the hard-hit airline industry, rebound efforts include federal stimulus package funding, cancellation of layoffs at American Airlines, and carriers purchasing new

74% of U.S. citizens

stated they would book

domestic beach adventures and other vacations featuring wide open spaces this summer.

planes, training pilots and hiring staff—an initiative with potentially widespread effects across the market. While COVID-19 has disrupted traveling in ways no one could have imagined, the future is looking bright as countries reopen and citizens from all over the world eventually get to their destinations without the baggage of a global pandemic.

Learn about CB&T’s personal credit cards options with great travel benefits on page 20.

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*Please check updated travel restrictions and policies before your trip.

Insight into a 529 College Savings Plan SAVINGS

BY DEBRA GELBART

IN YOUR CORNER ISSUE 8 | 2021

W HEN YOU’RE CONTEMPLATING funding your children’s college education as they grow, you have many options to choose from. But, in actuality, only one gives you the flexibility you deserve and the protection from tax implications that you need. According to Chris Considine, Executive Vice President and Director of Wealth Planning at Zions Bancorporation, while there are a few common saving options, the 529 plan is the most popular— and for good reason. What is a 529 College Savings Plan? Designed specifically for education expenses, the 529 College Savings Plan was established as a new part of the tax code in 1996. This type of plan can be used for college expenses or K-12 private school tuition, but it’s most advantageous when used for college. A couple can contribute up to $30,000 each year per child into this fund (a single parent can contribute up to $15,000) that can be diversified any way you choose within the plan’s investment portfolios among stocks, mutual funds or ETFs, bonds and cash without having to file a gift tax form with the IRS. Caveats and considerations The money can grow and you never have to pay taxes on that growth in a 529 plan as long as the funds are

would have about $53,000 available in 18 years, after paying taxes on stock or bond sales, withdrawals and dividends based on being in a 28 percent tax bracket,” he explained. “But if you invest $25,000 in a 529 plan and if that money grows at the same annual rate of six percent, you would have about $71,000 available to you in 18 years because you’re not having to pay taxes on accessing those resources. That’s roughly 25 percent more than you would have available in a traditional brokerage account at the end of 18 years.” Consider the options You can also opt for “target date” funds within a 529 plan, where at certain pre-designated times based on how many years the child is from college, stocks in the plan convert, tax-free, into bonds or money market funds to minimize risk as the child nears college age. “We recommend clients save about 70 to 80 percent of what they think they’ll need for each child’s post-secondary educational expenses in a 529,” Considine said, in case a child chooses a less expensive venue such as a community college or decides not to pursue post-secondary education. Another option for a 529 plan is pre-paying tuition, but that opportunity is far more limited than it was when 529 plans were first introduced. Only nine states still allow prepayment for a state university (California isn’t one of them), where the

withdrawn exclusively to pay for qualified education expenses. If the child for whom the funds are intended chooses not to go to college or vocational school, the earmarked funds can be directed to a younger child or anyone you designate who can benefit from help to pay for post-secondary educational expenses or private school tuition. If the funds are used for any purpose other than educational expenses, you’ll be liable for a penalty and applicable taxes. Although the funds in a 529 plan are limited to paying for educational expenses, this plan offers the most flexibility and benefits, Considine says. “If you put $25,000, for example, into a taxable traditional brokerage account that assumes six percent annual growth, you

“We recommend clients save about 70 to 80 percent of what they think they’ll need for each child’s post-secondary educational expenses in a 529.” Chris Considine Executive Vice President and Director of Wealth Planning

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QUALIFIED EDUCATION EXPENSES • Tuition and related fees • Room and board • Books and supplies • Special services • Computers and related equipment • Repayment of student loans

tuition you’ll pay is locked in for your child at a state university at today’s rate.

Super funding a 529 If you want to maximize your contributions to your child’s or grandchild’s 529 plan—especially if the child is already 12 or 13 and doesn’t yet have a generously funded 529 account—you can invest up to five years’ worth of allowable contributions without gift tax consequences into each child’s 529 account, as long as you don’t gift the child any additional money within the next five years. The advantage: In addition to setting aside as much money as possible for college, you don’t use any of your lifetime gift tax exemption (the 2021 exemption amount is $11.7 million). That means you and your spouse can contribute up to $150,000

SOURCE: IRS .GOV

at one time into each child’s or grandchild’s 529 plan without gift tax consequences. “Given that you have such a relatively short window to save for college,” Considine points out, “you really need all the benefits and tailwinds you can possibly come up with, because you want to be able to compound those returns in that 16- to 17-year window to get the biggest benefit from your investment. That’s why a 529 plan is such a great option for so many families.” Other options for saving If a 529 plan doesn’t match your goals, Considine shared other plans available for saving: Coverdell – A Coverdell Education Savings Account is a custodial account offering tax-free earnings growth and withdrawals as long as

“Given that you have such a relatively short window to save for college, you really need all the benefits and tailwinds you can possibly come up with.” Chris Considine,

The catch is that to be able to withdraw any of the resources within the Roth account tax-free, you must have made your first contribution at least five years prior to withdrawal and you must be at least 59-and- a-half years old at the time of withdrawal. Any money in the account not spent on educational expenses can become part of your retirement portfolio. People currently under 50 can contribute up to $6,000 per year to the account; those over 50 can contribute up to $7,000 each year to the account. Traditional brokerage account – Because cash and securities in this type of account can be used for any purpose and at any age, you can invest as much as you want for each child every year and watch the investments grow over the first 18 years of your child’s life. The drawback is that you’re liable for taxes on dividends you receive and when it comes time to withdraw money for college, any stocks or bonds that you sell likely will incur capital gains tax from the growth of each since you purchased it. While your child’s college education seems like a distant future, it’s never too early to start saving for this goal. Talk to your banker or financial planner for options available for you and your family.

Executive Vice President and Director of Wealth Planning

the funds are spent on what are known as qualified education expenses. This type of account limits annual contributions to $2,000 per child per calendar year. Roth IRA account – You’re probably familiar with this as a retirement savings vehicle, but you may not know it can be used to help pay for college, too. Contributions and earnings in a Roth IRA grow tax-free because you don’t receive tax deductions up-front for your contributions.

IN YOUR CORNER ISSUE 8 | 2021

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Gourmet Trading Compan finds its nich

HOW DOES A COMPANY selling exotic meats pivot to becoming an agricultural leader in multi- colored asparagus and blueberries? “Our founder was initially selling venison and exotic meats from his hometown in New Zealand to the restaurant market in Los Angeles,” said Trent Grose, CFO of Gourmet Trading Company. “Soon after, his brother came to help and the two of them started branching out and trading more produce from New Zealand, with kiwifruit and blueberries.” Since 1982, Gourmet Trading Company has been a lead importer and distributor of fresh fruits and vegetables. Strong grower relationships, management of its farms and continual investment in its business have enabled the company to provide high-quality produce year-round. Headquartered in Redondo Beach, the company grows its produce in California and all over the world. They’ve spent the last 30 years building relationships with quality growers in South and Central America, Canada, Australia, New Zealand, Mexico and the United States. FINDING A NICHE In the past, grocery stores sold certain produce only seasonally. The founders wanted to change that. Grose says that with a strategy of selling healthy, popular fruits and vegetables in any season, they came up with a plan for growth. “We started exploring the best places to grow, and we realized we needed to follow the sun,” he said. “Certain times of year will be best for asparagus in northern Mexico, and others will be

better for central Mexico. And the same thing for blueberries, whether in Argentina or California.”

Gourmet Trading Company began focusing solely on asparagus and blueberries when founder Chris Martin, met California growers who said they could grow asparagus year-round in South America. The company launched its first farm in Peru in 1992. More farms followed in North and South America. “The founders decided to focus on these two commodities because they were nutritious and the media was covering a lot of health benefits for both products,” Grose said. “Also, asparagus has historically had very stable pricing.” Currently, Gourmet Trading Company It’s very important to us. We want to make sure people are paid right and treated right. Trent Grose, CFO Gourmet Trading Company

offers a popular mix of colorful asparagus, purple and white, that is popular

among local restaurants.

IN YOUR CORNER ISSUE 8 | 2021

ny he

Trent Grose is the CFO at Gourmet Trading Company, part of the NZG Specialties corporate family. The NZ in the name means New Zealand, the home country of the company’s founders and owners. Trading Company is continually improving its farms and the quality of its produce, while being instrumental in making these once seasonal specialties available to enjoy all year round at local grocery stores and restaurants. “Part of the reason for our success has been that people are very health conscious these days,” he said. “Many are willing to pay more for quality food and fresh produce that’s good for their families. People are paying more attention to what they eat. We are feeling very optimistic about the future.” The company has come a long way since selling venison to restaurants in Los Angeles and is now a thriving business with a fruitful outlook. As experts in these select produce items, Gourmet "Our packaging is designed to have a useful life beyond protecting the asparagus and blueberries, and we encourage retailers and consumers to reuse the packaging materials before recycling them,” Grose said. LOOKING TO THE FUTURE The company has weathered the pandemic better than many businesses due to its unique business model, rigorous quality control and smart choices. Grose foresees more growth for Gourmet Trading Company.

SOCIAL RESPONSIBILITY In today’s global economy, cultivating products and getting them to market can affect all parties involved. That’s why Gourmet Trading Company supports the employees and people of Ica, Peru, the region where it grows the majority of its asparagus. Grose said, “It's very important to us. We want to make sure that people are paid right and treated right.” Besides playing an important role in the local economy, the company is committed to the education of the children of its employees. “We’ve worked to improve the infrastructure of the school and help meet some of the children’s basic needs, like clothing and school supplies,” Grose said. “We strive for an environment that nurtures learning. As a company that’s in the business of making things grow, investing in the children of our workers is an investment in the future of the area, as well as the future of the company.”

SUSTAINABILITY To be successful farmers, the company believes it must be good stewards of the environment, ensuring its growing

practices benefit the land. The company manages its water resources to balance the

needs of farming, the environment and the local population.

“

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How to stay one step ahead of scammers

Financial fraud

BY AARON BERMAN

W HILE STRATEGY AND planning lie at the heart of many productive business decisions, sometimes business owners— like all consumers—act on impulse and have a strong sense of urgency. “This is what fraudsters rely on and hope they will get a bite,” explained Katherine Cobb, Senior VP, Fraud Operations, Products and Strategy at Zions Bancorporation. According to the 2021 Association of Financial Professionals Payments Fraud and Control Survey Report: • 74 percent of organizations were targeted by payment fraud last year • 66 percent of financial professionals experienced check fraud attempts/attacks • 39 percent experienced fraudulent wire transfers Fraud at the speed of life With the ubiquity of smartphones, nearly every employee at any company is a few screen-taps away from potentially giving scammers access to company funds or proprietary information. This is due in large part to one of the fraudster’s best friends: our accelerated lifestyles. From logging onto a public Wi-Fi network to the intranet password you taped on your laptop, the little cheats that allow us to get through our hectic days are also the tools that fraudsters can use against us. Even fraud expert Cobb recalled how she nearly fell for a phishing scam simply because of the timing. When she was expecting a UPS delivery, she received

a text purportedly from that company urging her to click a link. However, rechecking her shipping information revealed that her package hadn’t yet been sent. “The best advice is to pause and ask yourself if this makes sense,” she advised. “It’s worth the due diligence so you don’t fall victim and click on a malicious link.” Siphoning money “One of the most common schemes against businesses we see is business email compromise,” Cobb observed. According to the FBI, business email compromise occurs when “criminals send an email message that appears to come from a known source making a legitimate request.” In effect, attackers use email to impersonate a company or individual familiar to company employees. They often accomplish this goal by creating fake email addresses that seem legitimate. For example, they may spell company names with one letter changed or research the names of C-suite executives to create addresses that look authentic. Then, they scan publicly-available email directories for likely contacts and craft urgent-sounding emails asking recipients to take immediate action. Cobb said another frequent scheme for businesses is buying

IN YOUR CORNER ISSUE 8 | 2021

Microsoft needing remote access to your computer to remove a virus. (Note: These companies will never contact you requesting that type of information or PC-access.) One of the fastest-growing schemes also happens to be relatively new: synthetic identity fraud. In this instance, fraudsters combine the stolen information of real people with fake names to open accounts. Synthetic identity fraud was one of the most prevalent types of fraud in 2020 and has every chance to be the number one fraud threat in 2021. An example is the AI-powered synthetic compilations of audio or video content that imitate a real person’s behavior. This synthetic content was used early on to mock politicians and celebrities, using “recordings” for blackmail and fake news purposes. Its trickery capacities were quickly picked up by scammers who started to use it for identity theft—creating fake accounts, hacking devices and, ultimately, stealing >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36

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