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LANB, OCC modify regulatory pact

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Bank > Agreement was signed Dec. 17

By John Severance

The Los Alamos National Bank signed another consent order with the Office of the Comptroller of the Currency Dec. 17.
LANB president Steve Wells said this consent order replaces the one signed with the OCC in November of last year.
“It further clarifies the areas LANB needs to address to be in compliance and to meet the expectations of our primary regulator,” Wells said in an email.
According to a SEC release, the focus of the order is on improving the bank’s credit administration, credit underwriting, internal controls, compliance and management supervision. Additionally, the Order requires that the Bank maintain certain capital ratios and receive approval of the OCC prior to declaring dividends.
The Order terminates the previously entered Formal Agreement dated November 30, 2012 and will remain in effect until terminated, modified or suspended by the OCC.”
Wells said the consent order does not directly affect an agreement that LANB signed with Kansas City Federal Reserve earlier this year.
“In late 2012, the OCC determined that LANB needed to improve aspects of its regulatory compliance and management effectiveness in a number of areas,” Wells said. “During 2013, the Federal Reserve concluded TCC should take actions to ensure it remained a source of strength for LANB and set forth actions it wanted to see to ensure LANB complied with its primary regulator as well as the concerns their actions raised for the Federal Reserve.”
The full compliace order can be found on LANB.com.
LANB has been involved in a fair amount of foreclosure cases. The Hilltop House was bought back by LANB after the hotel owners defaulted on their mortgage.
LANB is currently in litigation with owners of the Hill Diner after filing foreclosure papers back in July. On its website, LANB has more than 40 pieces of property listed for sale after acquiring them after foreclosure proceedings including five in Los Alamos.
Another issue for Trinity Capital Corporation has been the decline of its stock shares. Some employees have been given stock as part of their retirement.
Back in 2008, the stock was $28 per share. Now, the stock sits at $6 per share.
“Our employees are the largest shareholder of Trinity Capital Corporation stock and are motivated to see the Bank perform well and the value of TCC shares increase,” Wells said.
“Based on performance, occasionally Management has received shares as a part of their compensation package and other employees have received shares as a part of the Bank’s Profit-Sharing and Employee Stock Ownership Plan (ESOP) plans.
“Our employees are keenly aware that the performance of the LANB and TCC impacts them directly; this by design creates a strong, shared team effort to achieve better outcomes each year.”
Wells further addressed the impact of the falling stock price of LANB.
“Almost across the board, share prices and performance of financial institutions were negatively impacted by the economic downturn that began in late 2007 and from which the nation is just starting to recover,” Wells said.
“New Mexico entered the recession late and has been slower to recover than many other areas of the country. LANB also has felt the impact of the downturn as we are a very active lender in New Mexico. Increased unemployment, tentative government spending and decreases in real estate values have had an impact on our financial performance, our customers, and the overall economic activity seen in our state.
“We continue to assist our customers with financial solutions to the challenges they face, and to update our business strategies and operations to improve our financial performance.
“I know LANB is focused on improving its performance and creating value for our customers, shareholders, and employees.”