Trinity Capital, the parent company of Los Alamos National Bank, has entered into a stock purchasing agreement with three private equity firms.
Patriot Financial Partners, Strategic Value Bank Partners and Castle Creek Financial Partners will be acquiring a minority stake in LANB through a $52 million recapitalization plan.
President and Chief Executive Officer John Gulas of Trinity Capital and LANB, said the transaction was a good sign for the bank, which is still recovering from the 2008 recession and an ugly episode of financial mismanagement that occurred several years ago.
“We are encouraged that our new investors have confidence in our turnaround efforts,” Gulas said. “We believe this new capital enables us to address the most difficult remaining challenge in restoring the company to a safe and sound condition.”
When the recapitalization deal is finalized in October, two of the companies, Castle Creek Capital and Patriot Financial, will have one representative each appointed to LANB’s board.
Within a year of all parties signing off on the deal, Trinity Capital will also be able to offer current shareholders up to $10 million in stock.
Once the deal is done, the bank will round a corner by putting a rocky decade of alleged fraudulent assets reporting and recession debt behind it.