VICTORIA, Texas, June 5 /PRNewswire/ -- FVNB Corp. (Nasdaq: FVNB)
announced today that the Company has elected to become a financial holding
company.
On November 12, 1999, the Gramm-Leach-Bliley Act (GLBA) was signed into
law. This comprehensive financial modernization legislation eliminates
restrictions to affiliations among banks, insurance companies, securities
firms, and other financial service providers.
GLBA authorizes a new type of financial holding company through which
affiliations among such entities is permitted. A financial holding company
may now engage in a broad range of financial activities and any non-financial
activities that the Federal Reserve Board determines is complementary to a
financial activity. A bank holding company may become a financial holding
company by filing with the Federal Reserve Board and certifying that each of
its subsidiary banks is well capitalized, is well managed and has at least a
satisfactory rating under the Community Reinvestment Act. FVNB Corp. elected
to become a financial holding company and the election was made effective as
of May 31, 2000.
"The Gramm-Leach-Bliley Act has helped level the playing field in the
financial services industry," commented David M. Gaddis FVNB Corp. President &
C.E.O. "Our election to become a financial holding company will position FVNB
Corp. to take advantage of the opportunities afforded by the legislation and
to compete more effectively in the future."
FVNB Corp. is a financial holding company whose principal operating
subsidiaries are First Victoria National Bank, with locations in Victoria,
Port Lavaca, Taft, Edna, and Ganado, Texas, and Citizens Bank of Texas N.A.,
with locations in New Waverly, Huntsville, and The Woodlands, Texas. As of
March 31, 2000, total consolidated assets of the Company were approximately
$645 million and consolidated equity capital was approximately $61 million.
["Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: The statements contained in this release which are not historical
facts contain forward looking information with respect to plans projections or
future performance of the Company, the occurrence of which involve certain
risks and uncertainties detailed in the Company's filings with the Securities
Exchange Commission.] Subsidiary Banks, Member FDIC.
For Further David M. Gaddis
Information: President & CEO
FVNB Corp.
361-572-6500
SOURCE FVNB Corp.
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Related links:
http://www.fvnb.com
Company News On-Call:
http://www.prnewswire.com/comp/124759.html or fax,
800-758-5804, ext. 124759
CONTACT:
David M. Gaddis, President & CEO of FVNB
Corp., 361-572-6500
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