Attached files
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| EX-99.1 - AGREEMENT BY AND BETWEEN THE OFFICE OF THE COMPTROLLER OF CURRENCY AND LOS ALAMOS NATIONAL BANK - TRINITY CAPITAL CORP | ex99-1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT,
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report January 26,
2010
TRINITY
CAPITAL CORPORATION
(Exact
name of Registrant as specified in its charter)
New
Mexico
(State or
other jurisdiction of incorporation)
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000-50266
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85-0242376
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(Commission
File Number)
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(I.R.S.
Employer Identification Number)
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1200
Trinity Drive, Los Alamos, New Mexico
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87544
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(Address
of principal executive offices)
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(Zip
Code)
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(505)
662-5171
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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[
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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[
]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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[
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
8.01. Other Events
Beginning
in late 2007, Los Alamos National Bank (the "Bank"), the wholly-owned banking
subsidiary of Trinity Capital Corporation ("Trinity"), began to see increased
levels of loans with weaknesses stemming largely from the slowing real estate
markets and decreased collateral values. Since that time, the
Board of Directors of the Bank has been proactively and aggressively addressing
issues related to the deterioration in the loan
portfolio. Additionally, over the past two years, the Bank has
reduced its concentrations in Commercial Real Estate loans approximately
37%.
As
economic conditions worsened, the Board took certain actions, including
participation in the Treasury's Capital Purchase Program, to further solidify
our financial soundness against the uncertain consequences of a deep
recession.
On
January 26, 2010, the Bank entered into a written agreement (the "Agreement")
with its primary regulator, the Office of the Comptroller of the Currency
("OCC"). The basis for the Agreement was the 2009 on-site examination
of the Bank by the OCC, using conditions as of June 30, 2009. The
Agreement is focused on reducing the Bank's classified loans and reducing its
loan concentration in commercial real estate.
Management
and the board of directors are committed to taking the necessary actions to
fully address the provisions of the Agreement within the timeframes identified
in the Agreement. The Bank has made measurable progress in addressing
the requirements to date, including an approximate 18% decrease in classified
loans since June 30, 2009. The Bank already has programs in place
addressing most of the provisions of the Agreement.
The
Agreement does not change the Bank's "Well-Capitalized" status; nor does it
affect any of the Bank’s products and services that it offers to its
customers. The Bank remains strongly capitalized and the Bank’s
liquidity remains robust, with an excess of $252 million in liquid
funds. The Bank's total capital to risk-weighted assets continue to
exceed the statutory requirements for "Well-Capitalized" status at 13.74%,
almost 140% of the statutory requirements. In connection with the
current economic environment, the Bank has a capital plan to maintain its total
capital to risk-weighted assets at 12% or above and its Tier 1 capital to total
assets at 9% or above. The Bank also has an additional $8.5
million in reserves for loan losses that is not included in capital. The
allowance for loan losses is approximately equal to 1.92% of total loans and is
deemed sufficient by management to cover possible losses.
The
description of the Agreement set forth above does not purport to be complete,
and is qualified by reference to the full text of the Agreement, which is
attached to this Form 8-K as Exhibit 99.1. The Agreement was issued
under the regulatory authority of the OCC and is not intended to modify the
previous disclosures of Trinity regarding the condition of the Bank or Trinity
or the adequacy or effectiveness of its internal control over financial
reporting or disclosure controls and procedures.
This
document contains, and future oral and written statements of Trinity and its
management may contain, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 with respect to the financial
condition, results of operations, plans, objectives, future performance and
business of Trinity. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of Trinity’s management and on information
currently available to management, are generally identifiable by the use of
words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,”
“may,” “will,” “would,” “could,” “should” or other similar expressions.
Additionally, all statements in this document, including forward-looking
statements, speak only as of the date they are made, and Trinity undertakes no
obligation to update any statement in light of new information or future
events. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not be placed on
such statements. Additional information concerning Trinity and its business,
including additional factors that could materially affect Trinity’s financial
results, is included in Trinity’s filings with the Securities and Exchange
Commission.
Item
9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 Agreement,
dated January 26, 2010
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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TRINITY
CAPITAL CORPORATION
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Dated:
February 1, 2010
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By:
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/s/
William C. Enloe
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William
C. Enloe
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