Trinity Capital in Los Alamos, N.M., will restate earnings for 2009 and has determined that its financial statements going back to 2006 can no longer be relied upon.
Trinity, the holding company for Los Alamos National Bank, will only restate its financials as far back as 2009, and it won't restate for the years 2006 through 2008, because "such financial information has become irrelevant, due to age, to the company and its shareholders," it said in an Oct. 27 regulatory filing.
The $1.5 billion-asset Trinity had previously said that it would restate financials for 2010 and 2011, and for the first and second quarters of 2012. It also has not yet filed consolidated financial statements for the third and fourth quarters of 2012, or for any quarter in 2013.
Those financial statements will be included in Trinity's annual report, which is late being filed, and which is currently expected to be completed this month.
In previous filings with the Federal Deposit Insurance Corp. Trinity reported a profit of $5.1 million in 2009 and losses totaling $10.2 million in 2010 and 2011. It reported a profit of $6.9 million in 2012 and earnings of $377,000 in 2013.
The restatements are being completed in consultation with Trinity's current auditor, Crowe Horwath, and its former auditor, Moss Adams. Trinity determined that the financial statements were incorrect because "former members of management" overrode internal controls and did not reclassify loans into nonaccrual status on timely basis.
John Gulas was named president and chief executive of Trinity in May, succeeding William Enloe, who resigned in February 2013.
Separately, Trinity's chief financial officer, Daniel Bartholomew, resigned in September, and Steve Wells, chief administrative officer, in August announced plans to retire.
Bartholomew signed a consulting agreement with Trinity that will pay him $15,000 per month until a permanent CFO is hired, or until March 1, 2015, whichever is earlier. Anne Kain, vice president and cashier, was named interim CFO.
Also, director Deborah Johnson said last month that she will not stand for re-election to the board.
Los Alamos National Bank has been operating since December under a consent order with the Office of the Comptroller of the Currency, which requires it to improve credit underwriting, internal controls, compliance and management supervision. Trinity Capital has been operating under written agreement with the Federal Reserve Bank since Sept. 26, 2013, requiring it to serve as a source of strength to the bank, restrict the payment of dividends, and submit an improved capital plan.