EXHIBIT 99
PRESS RELEASE FOR FURTHER DAVID M. GADDIS
IMMEDIATE RELEASE INFORMATION: PRESIDENT & CEO
JUNE 5, 2000 FVNB CORP.
361-572-6500
FVNB CORP. ELECTS TO BECOME A FINANCIAL HOLDING COMPANY
VICTORIA, TEXAS--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.
