To focus on core banking operations
Alliance Bankshares has sold its insurance agency subsidiary, thereby discontinuing its insurance agency operation, in a move to solely focus on banking.
The company said that it anticipates 2010 financial results to positively benefit from the sale of the insurance operation. It expects the transaction to enhance regulatory capital position and improve tier 1 leverage ratio by 79 basis points and total risk based capital ratio and tier 1 risk based capital ratios by 117 basis points.
Alliance Bankshares said that the strategy is a cost effective way to enhance regulatory capital in a difficult economy without diluting common shareholders and without a negative impact on the company’s projected 2010 financial results.
Thomas Young, president and CEO, said: “We have made the strategic business decision to sell the insurance operation. The board of directors and management team feel strongly that our focus must be on core banking operations. The past several years have been difficult for Alliance and many businesses throughout the country as we have been in an unprecedented economic recession. As we enter 2010, our energy and focus is back on the basics of banking.”