LANB President and CEO John Gulas

LANB President and Chief Executive Officer John Gulas explained during an interview with the Los Alamos Daily Post that his management team has taken steps to tackle the bank’s challenges over the last three years since he has taken over the helm.

“We were able to wipe out our TARP debt completely in January,” Gulas said.

The authority to make new financial commitments under TARP ended Oct. 3, 2010. As of Oct. 31, 2016, cumulative collections under TARP, together with Treasury’s additional proceeds from the sale of non-TARP shares of AIG, exceed total disbursements by more than $7.9 billion. Treasury is now winding down its remaining TARP investments and also is continuing to implement TARP initiatives to help struggling homeowners avoid foreclosure.

Gulas explained that LANB’s parent company, Trinity Capital Corporation closed a private placement of 2,661,239 shares of its voting common stock and 8,286,200 shares of non-voting common stock in December. LANB used approximately $51 million of those gross proceeds to repurchase all of the Company’s outstanding Series A and Series B preferred securities originally issued under Treasury’s Capital Purchase Program, and, with the addition of a $15 million dividend from LANB, approximately $10 million to bring current the deferred interest on the Company’s four series of trust preferred securities, he said.

The remainder of the proceeds, following the payment of certain expenses associated with the private placement, will be used for other general corporate purposes, Gulas said. This capital injection has allowed LANB to address the indebtedness that accumulated before the financial downturn, the continuing accumulation of which had become extremely burdensome. 

“Our steadfast efforts to set LANB on a path toward growth are beginning to materialize,” Gulas said. “We have completed an internal banking system upgrade, designated experienced and accountable leaders to the right positions within the bank, are focused on implementing the necessary controls to allow us to operate in an efficient and customer focused way and have focused on increasing our presence in the Albuquerque market. In addition, LANB has been recognized by multiple outlets for our service and social responsibility.”

Gulas explained that every year LANB contributes to important community organizations and causes that positively impact the communities the bank serves. LANB contributes to more than 300 local nonprofit organizations and education programs throughout the state. Last year, LANB was recognized by the United Way of Northern New Mexico for their significant fundraising efforts, having surpassed the $1 million mark for contributions made over the years to the organization’s Community Action Fund.  

Trinity Capital Corporation was organized in 1975 as a bank holding company. It acquired the stock of Los Alamos National Bank in 1977 and serves as the holding company for the Bank. Trinity is a bank holding company with $1.4 billion in total assets and approximately 300 employees. LANB is in its 53^rd year of operation, and offers financial services through six branch offices in north central New Mexico. The bank was founded in 1963 by local investors to provide convenient, full-service banking to the unique scientific community that developed around the National Laboratory and continues to expand its market share and customer-base. LANB has six bank offices in Los Alamos, White Rock, Santa Fe and Albuquerque.

LANB was the first corporation in New Mexico, as well as the first and only bank in the nation, to earn the prestigious Malcolm Baldrige National Quality Award. Its mission is to improve the lives of its customers and employees and enhance the communities it serves by profitably providing superior banking products and trusted financial services. For more information visit LANB.com or call 505.662.5171.