SOURCE: Trinity Bank

August 18, 2010 11:19 ET

23rd Consecutive Quarter of Profit Improvement

Trinity Bank 2010 Profits up 27.3%

FORT WORTH, TX--(Marketwire - August 18, 2010) - Trinity Bank N.A. (OTCBB: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2010.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $496,000 or $.42 per diluted common share, compared to $390,000 or $.33 per diluted common share, an increase of 27.3%. This level of profit produced a Return on Assets of 1.32% and a Return on Equity of 12.35% for the second quarter.

For the first six months of 2010, Net Income after Taxes amounted to $964,000 or $.82 per diluted common share versus $776,000 or $.66 per diluted common share for the first six months of 2009 -- a 24.2% increase.

Jeffrey M. Harp, President, stated, "Second quarter results represent our 23rd consecutive quarter of profit improvement -- no small feat when one considers the economic environment over the last several years. Second quarter results were favorably impacted by the comparison to 2Q '09 when the banking industry was faced with a large one-time expense for FDIC insurance. However, after removing the impact of the '09 charge, net income was still up approximately 20% for the quarter."

"Trinity Bank's focus remains on developing long-term relationships with quality businesses and individuals. Loan growth remains the key driver for our bank. The good news is average loan volume is up 18.9% over the second quarter of 2009. The bad news is loan demand from people who have the ability to repay remains anemic at best. Those who can borrow and those who are willing to borrow continue to be restrained by fear and uncertainty in the marketplace."

Average for Quarter Ending

(in 000's)                     6-30-10     6-30-09          %
                              --------    --------       ----

Loans                         $ 74,671    $ 62,824       18.9%
Deposits                      $131,020    $126,962        3.2%

Actual for Quarter Ending

(in 000's)                     6-30-10     6-30-09          %
                              --------    --------       ----

Net Interest Income           $  1,234    $  1,033       19.5%
Non-Interest Income           $    103    $    121      (14.9%)
Non-Interest Expense          $    625    $    614        1.8%
Loan Loss Provision           $     45    $     45        0.0%

Pre Tax Income                $    667    $    495       34.7%
Income Tax                    $    171    $    105       62.9%
Net Income                    $    496    $    390       27.3%

Trinity Bank, N.A. is a commercial bank that began operations May 28, 2003. For a full financial statement, visit Trinity Bank's website: www.trinitybk.com Regulatory reporting format is also available at www.fdic.gov.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future financial conditions, results of operations and the Bank's business operations. Such forward-looking statements involve risks, uncertainties and assumptions, including, but not limited to, monetary policy and general economic conditions in Texas and the greater Dallas-Fort Worth metropolitan area, the risks of changes in interest rates on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest rate protection agreements, the actions of competitors and customers, the success of the Bank in implementing its strategic plan, the failure of the assumptions underlying the reserves for loan losses and the estimations of values of collateral and various financial assets and liabilities, that the costs of technological changes are more difficult or expensive than anticipated, the effects of regulatory restrictions imposed on banks generally, any changes in fiscal, monetary or regulatory policies and other uncertainties as discussed in the Bank's Registration Statement on Form SB-1 filed with the Office of the Comptroller of the Currency. Should one or more of these risks or uncertainties materialize, or should these underlying assumptions prove incorrect, actual outcomes may vary materially from outcomes expected or anticipated by the Bank. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. The Bank believes it has chosen these assumptions or bases in good faith and that they are reasonable. However, the Bank cautions you that assumptions or bases almost always vary from actual results, and the differences between assumptions or bases and actual results can be material. The Bank undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless the securities laws require the Bank to do so.



                            TRINITY BANK N.A.
                              (Unaudited)
              (Dollars in thousands, except per share data)



                              Quarter Ended            Six Months Ended
                                 June 30    %              June 30     %
EARNINGS SUMMARY         2010     2009   Change     2010     2009   Change

Interest income         1,536    1,446      6.2%   3,023     2,873     5.2%
Interest expense          302      413    -26.9%     613       831   -26.2%
Net Interest Income     1,234    1,033     19.5%   2,410     2,042    18.0%

Provision for Loan
 Losses                    45       45      0.0%      90        90     0.0%

Service charges on
 deposits                  37       30     23.3%      74        55    34.5%
Net gain on securities
 available for sale         7        6     16.7%      20         9   122.2%
Other income               59       85    -30.6%     123       161   -23.6%
Total Non Interest
 Income                   103      121    -14.9%     217       225    -3.6%

Salaries and benefits
 expense                  315      284     10.9%     628       575     9.2%
Occupancy and equipment
 expense                   79       87     -9.2%     158       172    -8.1%
Other expense             231      243     -4.9%     461       450     2.4%
Total Non Interest
 Expense                  625      614      1.8%   1,247     1,197     4.2%

Earnings before income
 taxes                    667      495     34.7%   1,290       980    31.6%
Provision for income
 taxes                    171      105     62.9%     326       204    59.8%
Net Earnings              496      390     27.2%     964       776    24.2%

Basic earnings per
 share                   0.44     0.35     25.7%    0.86      0.70    22.9%
Basic weighted average
 shares outstanding     1,116    1,110             1,116     1,110


Diluted earnings per
 share                   0.42     0.33     27.3%    0.82      0.66    24.2%
Diluted weighted
 average shares
 outstanding            1,171    1,166             1,171     1,166


                        Average for Quarter        Average for Six Months
                           Ending June 30    %        Ending June 30    %
BALANCE SHEET SUMMARY   2010       2009   Change    2010     2009    Change

Total loans            $74,671   $62,824   18.9%   $72,584  $63,458   14.4%
Total short term
 investments            19,397    21,426   -9.5%    20,075   20,821   -3.6%
Total investment
 securities             48,896    53,319   -8.3%    49,328   50,259   -1.9%

Earning assets         142,964   137,569    3.9%   141,987  134,538    5.5%

Total assets           150,282   143,961    4.4%   149,535  139,881    6.9%

Noninterest bearing
 deposits               22,134    23,240   -4.8%    22,420   23,211   -3.4%
Interest bearing
 deposits              108,886   103,722    5.0%   107,984   98,106   10.1%

Total deposits         131,020   126,962    3.2%   130,404  121,317    7.5%

Fed Funds Purchased
 and Repurchase
 Agreements                924     1,323  -30.2%       957    3,280  -70.8%

Shareholders' equity    17,340    15,029   15.4%    17,153   14,704   16.7%




                            TRINITY BANK N.A.
                              (Unaudited)
              (Dollars in thousands, except per share data)


                                     Average for Quarter Ending
                            June 30, March 31,  Dec 31, Sept. 30,  June 30,
BALANCE SHEET SUMMARY        2010      2010      2009      2009      2009

Total loans                 $74,671   $70,473   $66,816   $66,920   $62,824
Total short term
 investments                 19,397    20,760    29,268    23,611    21,426
Total investment
 securities                  48,896    49,764    51,363    52,448    53,319

Earning assets              142,964   140,997   147,447   142,979   137,569

Total assets                150,282   148,608   154,425   149,782   143,961

Noninterest bearing
 deposits                    22,134    22,713    22,985    23,603    23,240
Interest bearing deposits   108,886   107,068   113,378   108,893   103,722

Total deposits              131,020   129,781   136,363   132,496   126,962

Fed Funds Purchased and
  Repurchase Agreements         924       991       630       743     1,323

Shareholders' equity         17,340    16,964    16,453    15,725    15,029


                                             Quarter Ended
HISTORICAL EARNINGS         June 30,  March 31,  Dec 31, Sept. 30, June 30,
 SUMMARY                      2010       2010      2009     2009      2009

Interest income               1,536     1,488     1,488     1,494     1,446
Interest expense                302       311       381       398       413
Net Interest Income           1,234     1,177     1,107     1,096     1,033

Provision for Loan Losses        45        45        45        45        45

Service charges on
 deposits                        37        37        34        36        30
Net gain on securities
 available for sale               7        13        88        78         6
Other income                     59        64        55        58        85
Total Non Interest Income       103       114       177       172       121

Salaries and benefits
 expense                        315       313       403       292       284
Occupancy and equipment
 expense                         79        79       108        89        87
FDIC expense                     45        39        44        44       168
Other expense                   186       191       105       258        75
Total Non Interest
 Expense                        625       622       660       683       614

Earnings before income
 taxes                          667       624       579       540       495
Provision for income
 taxes                          171       155       137       122       105
Net Earnings                    496       469       442       418       390




                            TRINITY BANK N.A.
                              (Unaudited)
              (Dollars in thousands, except per share data)


                                           Ending Balance
                          June 30,  March 31,  Dec 31,  Sept. 30,  June 30,
HISTORICAL BALANCE SHEET    2010      2010      2009      2009      2009

Total loans                $74,007   $73,432   $71,949   $67,661   $64,339
Total short term
 investments                20,612    17,634    19,006    20,968    18,739
Total investment
 securities                 50,436    50,944    55,082    56,209    53,282

Total earning assets       145,055   142,010   146,037   144,838   136,360

Allowance for loan losses    1,176     1,131     1,086     1,041       996
Premises and equipment       1,513     1,544     1,543     1,610     1,665
Other Assets                 6,967     5,972     4,733     6,589     6,491

Total assets               152,359   148,395   151,227   151,996   143,520

Noninterest bearing
 deposits                   21,057    22,404    25,568    22,235    22,562
Interest bearing deposits  112,270   107,393   107,565   111,965   104,498

Total deposits             133,327   129,797   133,133   134,200   127,060

Fed Funds Purchased and
 Repurchase Agreements         511       590       454       535       524
Other Liabilities              965       875       876     1,023       640

Total liabilities          134,803   131,262   134,463   135,758   128,224

Shareholders' Equity
 Actual                     16,316    15,835    15,354    14,862    14,443
Unrealized Gain - AFS        1,240     1,299     1,410     1,376       853
Total Equity                17,556    17,134    16,764    16,238    15,296


                                            Quarter Ending
                            June 30,  March 31,  Dec 31, Sept. 30, June 30,
NONPERFORMING ASSETS          2010       2010      2009     2009      2009

Nonaccrual loans                $0        $0        $0        $0        $0
Restructured loans              $0        $0        $0        $0        $0
Other real estate &
 foreclosed assets              $0        $0        $0        $0        $0
Accruing loans past due
 90 days or more                $0        $0        $0        $0        $0
Total nonperforming assets      $0        $0        $0        $0        $0
Accruing loans past due
 30-89 days                     $0        $0        $0        $0        $0

Total nonperforming assets
 as a percentage of loans
 and foreclosed assets        0.00%     0.00%     0.00%     0.00%     0.00%




                            TRINITY BANK N.A.
                               (Unaudited)
              (Dollars in thousands, except per share data)


                                            Quarter Ending
ALLOWANCE FOR              June 30,  March 31,  Dec 31, Sept. 30,  June 30,
LOAN LOSSES                  2010      2010      2009      2009      2009

Balance at beginning of
 period                      $1,131    $1,086    $1,041      $996     $951
Loans charged off                 0         0         0         0        0
Loan recoveries                   0         0         0         0        0
 Net (charge-offs)
  recoveries                      0         0         0         0        0
Provision for loan losses        45        45        45        45       45
Balance at end of period     $1,176    $1,131    $1,086    $1,041     $996

Allowance for loan losses
 as a percentage of total
 loans                         1.59%     1.54%     1.51%     1.54%    1.55%
Allowance for loan losses
 as a percentage of
 nonperforming loans            N/A       N/A       N/A       N/A      N/A
Net charge-offs
 (recoveries) as a
 percentage of average
 loans                          N/A       N/A       N/A       N/A      N/A
Provision for loan losses
 as a percentage of
 average loans                 0.06%     0.06%     0.06%     0.07%    0.07%


                                              Quarter Ending
                             June 30,  March 31, Dec 31, Sept. 30, June 30,
SELECTED RATIOS               2010      2010      2009      2009     2009

Return on average assets
 (annualized)                  1.32%     1.26%     1.15%     1.12%    1.08%

Return on average equity
 (annualized)                 11.44%    11.06%    10.75%    10.63%   10.38%

Return on average equity
 (excluding unrealized
 gain on investments)         12.35%    12.05%    11.71%    11.44%   10.97%

Average shareholders'
 equity to average assets     11.56%    11.42%    10.65%    10.50%   10.44%

Yield on earning assets
 (tax equivalent)              4.52%     4.45%     4.27%     4.43%    4.47%

Cost of interest bearing
 funds                         1.10%     1.15%     1.34%     1.45%    1.60%

Net interest margin (tax
 equivalent)                   3.67%     3.57%     3.23%     3.32%    3.27%

Efficiency ratio (tax
 equivalent)                  44.04     45.34     51.52     50.37    49.32

End of period book value
 per common share             15.73     15.35     15.03     14.63    13.78

End of period book value
 (excluding unrealized
 gain on investments)         14.62     14.19     13.77     13.39    13.01

End of period common
 shares outstanding           1,116     1,116     1,115     1,110    1,110




                            TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)


                                            3 Months Ending
                                              June 20, 2010
                                                                     Tax
                                Average                          Equivalent
YIELD ANALYSIS                  Balance      Interest    Yield      Yield

Interest Earning Assets:
Short term investment            19,398          60      1.24%        1.24%
Investment securities            26,876         291      4.33%        4.33%
Tax Free securities              22,020         181      3.29%        4.74%
Loans                            74,671       1,004      5.38%        5.38%

Total Interest Earning Assets   142,965       1,536      4.30%        4.52%

Noninterest Earning Assets:
Cash and due from banks           3,295
Other assets                      5,181
Allowance for loan losses        (1,159)

Total Noninterest Earning
 Assets                           7,317

Total Assets                   $150,282

Interest Bearing Liabilities:
Transaction and Money Market
 accounts                        76,687         186      0.97%        0.97%
Certificates and other time
 deposits                        32,199         114      1.42%        1.42%
Other borrowings                    924           2      0.87%        0.87%

Total Interest Bearing
 Liabilities                    109,810         302      1.10%        1.10%

Noninterest Bearing
 Liabilities
Demand deposits                  22,134
Other liabilities                   998
Shareholders' Equity             17,340

Total Liabilities and
 Shareholders Equity           $150,282

Net Interest Income and
 Spread                                       1,234      3.20%        3.42%

Net Interest Margin                                      3.45%        3.67%


                                            3 Months Ending
                                              June 30, 2009
                                                                    Tax
                               Average                           Equivalent
YIELD ANALYSIS                 Balance     Interest     Yield       Yield

Interest Earning Assets:
Short term investment            21,426          98      1.83%        1.83%
Investment securities            27,427         302      4.40%        4.40%
Tax Free securities              25,892         207      3.20%        4.61%
Loans                            62,824         839      5.34%        5.34%

Total Interest Earning Assets   137,569       1,446      4.20%        4.47%

Noninterest Earning Assets:
Cash and due from banks           3,475
Other assets                      3,889
Allowance for loan losses          (972)

Total Noninterest Earning
 Assets                           6,392

Total Assets                  $ 143,961

Interest Bearing Liabilities:
Transaction and Money Market
 accounts                        68,890         223      1.29%        1.29%
Certificates and other time
 deposits                        33,348         188      2.26%        2.26%
Other borrowings                  1,323           2      0.60%        0.60%

Total Interest Bearing
 Liabilities                    103,561         413      1.60%        1.60%

Noninterest Bearing
 Liabilities
Demand deposits                  24,724
Other liabilities                   647
Shareholders' Equity             15,029

Total Liabilities and
 Shareholders Equity          $ 143,961

Net Interest Income and
 Spread                                       1,033      2.61%        2.87%

Net Interest Margin                                      3.00%        3.27%





                            TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)



                                 June 30,              June 30,
                                   2010          %       2009          %
LOAN PORTFOLIO

Commercial and industrial          35,194      47.55%    31,067      48.29%
Real estate:
Commercial                         16,010      21.63%    12,126      18.85%
Residential                        10,363      14.00%    10,326      16.05%
Construction and development       10,577      14.29%     7,513      11.68%
Consumer                            1,863       2.52%     3,307       5.14%

Total loans (gross)                74,007     100.00%    64,339     100.00%

Unearned discounts                      0       0.00%         0       0.00%

Total loans (net)                  74,007     100.00%    64,339     100.00%


                                  June 30,               June 30,
                                    2010                  2009
REGULATORY CAPITAL DATA
Tier 1 Capital                    $16,316               $14,443
Total Capital (Tier 1 + Tier 2)   $17,492               $15,439
Total Risk-Adjusted Assets       $107,438               $98,147
Tier 1 Ratio                        15.19%                14.72%
Total Capital Ratio                 16.28%                15.73%
Tier 1 Leverage Ratio               10.87%                10.03%

OTHER DATA
Full Time Equivalent
 Employees (FTE's)                     14                    14

Stock Price Range
(For the Three Months Ended):
 High                              $25.00                $20.00
 Low                               $21.00                $20.00
 Close                             $23.00                $20.00

Contact Information

  • For information contact:
    Richard Burt
    Executive Vice President
    Trinity Bank
    817-763-9966