Fed Hits Trinity Capital in N.M. with Enforcement Action

The Federal Reserve Board has ordered Trinity Capital Corp. in Los Alamos, N.M., to improve its capital position.

The Fed entered into a written agreement with Trinity on Sept. 26, requiring the $1.5 billion-asset lender to formulate a plan to maintain adequate capital, to issue periodic progress reports, and to refrain from taking on debt, redeeming stock or paying dividends without the regulator's approval. It also ordered the company to maintain adequate capital levels.

Trinity's banking unit, Los Alamos National Bank, had a Tier 1 leverage ratio of 9.25% and total risk-based capital of 14.12% as of June 30, according to the Federal Deposit Insurance Corp.

The Treasury Department sold its Troubled Asset Relief Program stake in Trinity at a discount of approximately 25% in an auction last year. Trinity received $35.5 million through the program in March 2009, and the Treasury auctioned its Series A preferred shares for approximately $26.7 million.