Building a better community

At Los Alamos National Bank, we believe that it is our responsibility to give back to the communities we serve, since a strong community is the foundation for any business to be successful. We are proud to support many organizations, causes and events in the Los Alamos and Santa Fe area communities and encourage our employees to do the same. In fact, our 287 employees collectively logged more than 6,000 hours of volunteer time in 2008.

TCC not only gives time, but also spends more than 45% of its marketing expenses on community events and support of education, youth activities and economic development. It aligns our conscience with that of our neighbors. Historically, more than 38% of our new customers have come via referrals from other satisfied customers. Just as many cite our community support as they do our outstanding customer service as the reason they selected LANB. We try to keep in mind a print ad never provided a scholarship for a student.

• Folk Art Market again turns to LANB

  Los Alamos National Bank is once again the official financial sponsor of the 5th Annual Santa Fe International Folk Art Market. LANB employees donate their time and expertise at the Market by providing in-kind services such as cashiering services, credit card processing, international wire transfers, and back room accounting during the four-day event. In anticipation of the immense amount of commerce that takes place at the event, volunteers are required to attend multiple trainings a few days before the event to ensure that the Market's money exchange runs smoothly.
  
  In 2008, the Market made it possible for 125 artists from 41 countries to come to Santa Fe for what has become one of the largest international markets in the world. Visitors attending the Market enjoy ethnic foods, artists' demonstrations, international performances and educational activities all weekend long. Attendance increased to more than 20,000 attendees in 2008. The Market significantly impacts the local economy by bringing more than 11,000 visitors to Santa Fe each year. LANB is honored to play such a key role in this outstanding community event.

• LANB sponsors Santa Fe Children's Museum

  LANB was a major supporter of the Santa Fe Children's Museum through its support of the Ice Cream Sunday and Birthday events. Contributions to the museum assists in various educational programs for the youth in New Mexico. On average, the museum receives 80,000 visitors annually in addition to 8,500 school groups.
  

• LANB sponsors Kite Festival

  Each year on the third weekend in May, the windy Spirio Soccer Fields in White Rock are filled with high flying hand-made kites. The Los Alamos Arts council, in conjunction with LANB, brings free kite building workshops to children in local schools and culminates in a three-day, activity packed festival weekend. Throughout the course of the Kite Festival, nearly 1,000 children learn how to build and decorate kites with assistance from LANB/TG staff and other community volunteers. The event has gained popularity over the years and brings kite enthusiasts from all over the Southwest to fly their large, intricately shaped kites, hand-made flying works of art and demonstrate stunt-kite flying during the course of the Festival.

• Grand Prix de Santa Fe and LANB give back to the community

  The Grand Prix de Santa Fe is a world-class equestrian show-jumping event that has nearly a one million dollar economic impact on the Santa Fe community. All net proceeds go to local equestrian and social service non-profits. LANB continues to be a major sponsor of this event and its festivities.
  

• LANB and United Way make a great team

  Each year, LANB participates in fundraising for the United Way, which benefits programs in Northern New Mexico and Santa Fe County. Thanks to the generosity and time of its employees, LANB was able to donate more than $70,000 in 2008. Meaning that once again LANB was the second leading corporate contributor behind the 7,000 employees of LANL.

• LANB partakes in Pancake tradition

  Taking place annually on July 4th, Pancakes on the Plaza has been a Santa Fe tradition for 33 years. This is one of the largest community events in Santa Fe and one of the largest fundraisers for United Way of Santa Fe County, which provides funds for the Santa Fe Children's Project and other community programs. More than 12,000 citizens participate in the festivities over breakfast and entertainment on the historic Santa Fe Plaza. LANB has been a long time participant in this event. In 2007, a new tradition began--the Children's Pajama Parade. Fidel Gutierrez, Senior Vice President of LANB, serves as Master of Ceremonies, leading the participating children in a parade around downtown.

TCC voices

ROBERT WORCESTER
TCC Chair of the Board

As we all realize, the economy is officially in a recession, which may continue well into the second half of 2009. Although we are in a time of severe economic and financial distress, when the financial service industry has generally suffered significant loss in both value and confidence, Trinity Capital Corporation (TCC) has managed to sail against the wind and has maintained a level keel.

The environment of 2008 tested management and the Board. We have benefitted from Board Members with broad experience and clear perspective. They brought to TCC's mission an awareness of the need to strike balances between the desire for growth, prudent risk assessment and the realistic management of expectations. We also benefitted from a management team and a dedicated group of employees that is unequaled in the New Mexico banking community.

There were many bright notes of which we can all be proud. We experienced asset growth that exceeded 2007 and broke ground on the new office on Cerrillos Road, which is expected to open for business in the third quarter of 2009. We also increased stock dividends to our shareholders for 24 years in a row. For the third consecutive year, the Bank was voted No. 1 Bank in the "Best of Santa Fe" and manages to maintain the largest market share for both Santa Fe and Los Alamos depositors. To top off the year, we were extremely proud to learn that our President of TCC, Bill Enloe, was appointed to the Denver Branch of the Kansas City Federal Reserve Board.

To be sure, the near-term outlook features serious challenges. In the next few months, we will focus on Washington and its ability to craft a successful response to this ongoing crisis. Ultimately, we believe that the many changes now being introduced by the new administration will result in a sounder financial system. Whatever the outcome, by remaining true to those values that have always been identified with the Bank, we are confident that TCC will continue to deliver superior services to our customers and provide value to our shareholders.

BILL ENLOE
TCC President and CEO

2008 will go down in history as a very memorable year. The nation began to feel the full effects of a recession that has already been one of the most severe in modern history. The regional economy is fortunate not to have experienced the level of job losses or home foreclosures that most of the country has seen. Trinity Capital Corporation (TCC) did not participate in the financial instruments that created record losses in the financial markets. Although 2008 was not an exceptional year for earnings, TCC did post $8.0 million in profits and grew total assets by 3%. TCC declared dividends of $0.80 per share.

In March of 2009, TCC chose to participate in the U.S. Treasury's Capital Purchase Program in order to add $35.5 million to our capital base. The preferred stock issued for this capital are non-voting, are not convertible to common stock and do not dilute the current shareholders' investment. The terms of this investment are attractive and place our organization in a very strong capital position (43% above the regulatory guidelines for a "well-capitalized" bank). This transaction ensures our ability to continue healthy levels of growth in loans and deposits without being restrained by regulatory capital requirements.

LANB's deposits continue to grow in both Los Alamos and Santa Fe. We continue to have the largest share of deposits in both of those markets. The new office on Cerrillos Road in Santa Fe will open in the fall of this year. This expansion, along with our existing offices, will provide convenient locations in all major residential areas of Santa Fe. TCC continues to take a conservative and methodical approach to market expansion. Ensuring we have the staff and technology to properly service and mitigate risk in new markets is essential. The competitive landscape has changed dramatically over the last year and is providing many opportunities for TCC. An example is the acquisition of assets from Allocca and Brunett, Inc., an investment advisory company. This transaction introduces us to a new set of clients and strengthened our own Trust and Investment services.

The most important factor in our success is the support and loyalty of our investors. It is your confidence and trust that allows us to continue to be the leading financial institution in Northern New Mexico. Please join us at the annual meeting on May 21, 2009 at 6:00 p.m. to discuss our financial results in more detail and address any questions you might have.

LANB named Best Place to Work

For the third year in a row, Los Alamos National Bank was named a "Best Place To Work" by the New Mexico Business Weekly. LANB was honored with this recognition in the large business category. Said President Steve Wells "It speaks to the fact that our employees enjoy their workplace. That's been a business principle for us, not to just look at the bottom line, but to see how we can create shared success for employees and shareholders." The award was presented at an awards banquet in December 2008.

Best of Santa Fe Winner

Los Alamos National Bank was pleased to receive recognition as a "Best of Santa Fe First Place Winner" in the annual survey done by the Santa Fe Reporter. "We opened our first office in Santa Fe in 1999. To be recognized as the "Best Bank or Credit Union in Santa Fe" for three years in a row reflects that we have firmly established our presence in the Santa Fe market. Our customers appreciate the community support we provide as well as being extremely satisfied with our service," said Fidel Gutierrez, Senior Vice President.