SOURCE: Trinity Bank

November 21, 2008 17:35 ET

Fort Worth's Trinity Bank Profits up 31%

16th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwire - November 21, 2008) - Trinity Bank, N.A. (OTCBB: TYBT) today announced financial results for the third quarter and for the nine months ending September 30, 2008.

Results of Operations

Trinity Bank, N.A. announced Net Income After Taxes of $357,352 or $.31 per diluted common share for the third quarter of 2008, compared to $270,688 or $.23 per diluted common share for the third quarter of 2007, an increase of 31%.

For the first nine months of 2008, Net Income After Taxes amounted to $1,022,678 or $.88 per diluted common share, compared to $732,077 or $.63 per diluted common share, an increase of 39%.

Jeffrey M. Harp, President, stated, "We are pleased with and thankful for our bank's performance in light of the current economic conditions and the precarious position of many financial institutions in the U.S. Loan quality, asset growth, and expense control are the key drivers of this consistent growth in net income. In a day when many banks are fighting for their existence because of bad loan decisions, we are fortunate that we have yet to have one loan loss or one non-performing loan since the opening of our bank in May of 2003. These results are really a reflection of the quality of our customer base, our philosophy of banking, and the efforts of the Trinity Bank staff."

Average for Quarter Ending

(in 000's)                       9-30-08     9-30-07       %
                                --------     -------     ----

Loans                           $ 64,946     $50,328     29.0%
Deposits                        $110,586     $96,942     14.1%

Actual for Quarter Ending

Net Interest Income             $    938     $   917      2.3%
Non-Interest Income             $     87     $    76     14.5%
Non-Interest Expense            $    539     $   530      1.7%
Loan Loss Provision             $     45     $    45        -
Pre Tax Income                  $    441     $   418      5.5%
Income Tax                      $     84     $   147    -42.9%

Net Income                      $    357     $   271     31.7%

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 click on "About Us" and then click on "Investor Information." Financial information in 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            Nine Months Ended
                           September 30      %        September 30      %
EARNINGS SUMMARY          2008     2007   Change     2008     2007   Change

Interest income          1,464    1,721   -14.9%    4,475    4,802    -6.8%
Interest expense           526      804   -34.6%    1,727    2,273   -24.0%
Net Interest Income        938      917     2.3%    2,748    2,529     8.7%

Provision for Loan Losses   45       45     0.0%      135      135     0.0%

Service charges on
 deposits                   23       25    -8.0%       72       77    -6.5%
Other income                64       51    25.5%      244      176    38.6%
Total Non Interest Income   87       76    14.5%      316      253    24.9%

Salaries and benefits
 expense                   301      278     8.3%      870      783    11.1%
Occupancy and equipment
 expense                    86       91    -5.5%      259      262    -1.1%
Other expense              152      161    -5.6%      497      483     2.9%
Total Non Interest
 Expense                   539      530     1.7%    1,626    1,528     6.4%

Earnings before
 income taxes              441      418     5.5%    1,304    1,119    16.5%
Provision for income
 taxes                      84      147   -42.9%      281      387   -27.4%
Net Earnings               357      271    31.7%    1,023      732    39.8%

Basic earnings per
 share                    0.32     0.24    31.7%     0.92     0.66    39.8%
Basic weighted average
 shares outstanding      1,109    1,109             1,109    1,109

Diluted earnings per
 share                    0.31     0.23    31.1%     0.88     0.63    39.0%
Diluted weighted average
 shares outstanding      1,166    1,160             1,166    1,160



                         Average for                Average for
                        Quarter Ending           Nine Months Ending
                         September 30        %      September 30       %
BALANCE SHEET SUMMARY    2008     2007    Change    2008     2007   Change

Total loans           $ 64,946 $ 50,328    29.0% $ 57,405 $ 46,654    23.0%
Total short term
 investments            17,627   22,927   -23.1%   22,463   22,378     0.4%
Total investment
 securities             37,060   30,778    20.4%   38,222   29,627    29.0%

Earning assets         119,633  104,033    15.0%  118,090   98,659    19.7%

Total assets           124,795  109,844    13.6%  123,386  104,312    18.3%

Noninterest bearing
 deposits               21,199   21,396    -0.9%   20,857   20,032     4.1%
Interest bearing
 deposits               89,387   75,546    18.3%   88,552   69,066    28.2%

Total deposits         110,586   96,942    14.1%  109,409   89,098    22.8%

Shareholders' equity    13,073   11,725    11.5%   12,796   11,477    11.5%





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

                                       Average for Quarter Ending
                             Sept. 30, June 30, March 31, Dec 31, Sept. 30,
BALANCE SHEET SUMMARY           2008     2008      2008    2007      2007

Total loans                   $ 64,946 $ 57,309 $ 49,878 $ 50,053 $ 50,328
Total short term investments    17,627   23,073   26,740   27,011   22,927
Total investment securities     37,060   36,588   41,033   36,569   30,778

Earning assets                 119,633  116,970  117,651  113,633  104,033

Total assets                   124,795  122,227  123,192  119,646  109,844

Noninterest bearing deposits    21,199   20,553   20,814   23,620   21,396
Interest bearing deposits       89,387   87,699   88,562   82,504   75,546

Total deposits                 110,586  108,252  109,376  106,124   96,942

Repurchase Agreements              766      620      806      849      663

Shareholders' equity            13,073   12,821   12,491   12,078   11,725



                                             Quarter Ended
                             Sept. 30, June 30, March 31, Dec 31, Sept. 30,
HISTORICAL EARNINGS SUMMARY     2008     2008      2008    2007      2007

Interest income                  1,464    1,430    1,581    1,745    1,721
Interest expense                   526      521      680      803      804
Net Interest Income                938      909      901      942      917

Provision for Loan Losses           45       45       45       45       45

Service charges on deposits         23       24       25       28       25
Other income                        64       82       98       39       51
Total Non Interest Income           87      106      123       67       76

Salaries and benefits expense      301      283      285      324      278
Occupancy and equipment
 expense                            86       87       87       91       91
Other expense                      152      169      176      115      161
Total Non Interest Expense         539      539      548      530      530

Earnings before income taxes       441      431      431      434      418
Provision for income taxes          84       91      106      129      147
Net Earnings                       357      340      325      305      271





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

                                           Ending Balance
                          Sept. 30,  June 30,  March 31, Dec 31,  Sept. 30,
HISTORICAL BALANCE SHEET    2008      2008      2008      2007      2007

Total loans               $ 65,595  $ 62,061  $ 51,866  $ 50,545  $ 50,936
Total short term
 investments                23,291    15,415    27,818    25,654    24,235
Total investment
 securities                 34,523    39,803    37,740    43,561    31,685

Total earning assets       123,409   117,279   117,424   119,760   106,856

Allowance for loan losses      861       816       771       726       681
Premises and equipment       1,680     1,541     1,588     1,630     1,677
Other Assets                 3,754     4,657     4,491     4,572     5,126

Total assets               127,982   122,661   122,732   125,236   112,978

Noninterest bearing
 deposits                   21,769    20,506    20,820    24,423    22,487
Interest bearing deposits   91,448    88,270    87,874    87,352    77,319

Total deposits             113,217   108,776   108,694   111,775    99,806

Repurchase Agreements          934       621       714       820       732
Other Liabilities              483       401       585       379       494

Total liabilities          114,634   109,798   109,993   112,974   101,032

Shareholders' equity        13,348    12,863    12,739    12,262    11,946


                                          Quarter Ending
                          Sept. 30,  June 30,  March 31, Dec 31,  Sept. 30,
NONPERFORMING ASSETS        2008      2008      2008      2007      2007

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               $    152  $      5  $      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                Sept. 30, June 30, March 31, Dec 31, Sept. 30,
 LOAN LOSSES                    2008     2008     2008     2007     2007

Balance at beginning of
 period                       $   816  $   771  $   726  $   681  $   636
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      $   861  $   816  $   771  $   726  $   681

Allowance for loan losses
 as a percentage of total loans  1.31%    1.31%    1.24%    1.40%    1.35%
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                           0.07%    0.08%    0.08%    0.09%    0.09%



                                           Quarter Ending
                             Sept. 30, June 30, March 31, Dec 31, Sept. 30,
SELECTED RATIOS                 2008     2008      2008    2007     2007

Return on average assets
 (annualized)                    1.14%    1.11%    1.06%    1.02%    0.99%

Return on average equity
 (annualized)                   10.92%   10.61%   10.41%   10.10%    9.25%

Average shareholders' equity
 to average assets              10.48%   10.49%   10.14%   10.09%   10.67%

Yield on earning assets (tax
 equivalent)                     5.21%    5.17%    5.58%    6.30%    6.64%

Cost of interest bearing funds   2.33%    2.37%    3.04%    3.85%    4.22%

Net interest margin (tax
 equivalent)                     3.45%    3.39%    3.26%    3.44%    3.56%

Efficiency ratio (tax
 equivalent)                    48.13%   49.27%   50.70%   52.53%   53.37%

End of period book value per
 common share                   11.79    11.60    11.49    11.06    10.77

End of period common shares
 outstanding                    1,109    1,109    1,109    1,109    1,109





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

                                    3 Months Ending
                  September 30, 2008              September 30, 2007

                                     Tax                            Tax
                                     Equiv-                          Equiv-
YIELD       Average                   alent Average                   alent
 ANALYSIS   Balance  Interest Yield  Yield  Balance  Interest Yield  Yield

Interest Earning
 Assets:
Short term
 investment  17,627       149  3.38%  3.38%  22,927       310  5.41%  5.41%
Investment
 securities  10,298        91  3.53%  3.53%  28,871       335  4.64%  4.64%
Tax Free
 securities  26,762       214  3.20%  4.60%   1,907        17  3.57%  5.13%
Loans        64,893     1,010  6.23%  6.23%  50,328     1,059  8.42%  8.42%

Total Interest
 Earning
 Assets     119,580     1,464  4.90%  5.21% 104,033     1,721  6.62%  6.65%

Noninterest
 Earning
 Assets:
Cash and due
 from banks   3,477                           3,796
Other assets  2,705                           2,667
Allowance for
 loan losses   (838)                           (652)

Total
 Noninterest
 Earning
 Assets       5,344                           5,811

Total
 Assets    $124,924                        $109,844

Interest
 Bearing
 Liabilities:
Transaction
 and Money
 Market
 accounts    65,746       315  1.92%  1.92%  53,645       531  3.96%  3.96%
Certificates
 and other
 time
 deposits    23,640       208  3.52%  3.52%  21,901       267  4.88%  4.88%
Other
 borrowings     799         3  1.50%  1.50%     663         6  3.62%  3.62%

Total Interest
 Bearing
 Liabilities 90,185       526  2.33%  2.33%  76,209       804  4.22%  4.22%

Noninterest
 Bearing
 Liabilities
Demand
 deposits    21,200                          21,396
Other
 liabilities    466                             514
Shareholders'
 Equity      13,073                          11,725

Total
Liabilities
 and
 Shareholders
 Equity    $124,924                        $109,844

Net Interest
 Income and
 Spread                   938  2.56%  2.88%               917  2.40%  2.43%

Net Interest
 Margin
 (includes
  non-interest
  bearing
  accounts)                    3.14%  3.45%                    3.53%  3.56%





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

                                   Sept. 30            Sept. 30
LOAN PORTFOLIO                         2008        %       2007        %

Commercial and industrial             36,253     55.27%   29,382     57.68%
Real estate:
   Commercial                         10,571     16.12%    7,292     14.32%
   Residential                         9,909     15.11%    6,815     13.38%
   Construction and development        5,404      8.24%    5,637     11.07%
Consumer                               3,458      5.27%    1,810      3.55%

Total loans (gross)                   65,595    100.00%   50,936    100.00%

Unearned discounts                         0      0.00%        0      0.00%

Total loans (net)                     65,595    100.00%   50,936    100.00%


                                    Sept.30             Sept.30
                                       2008                2007
REGULATORY CAPITAL DATA
Tier 1 Capital                      $ 13,287            $ 11,954
Total Capital (Tier 1 + Tier 2)     $ 14,148            $ 12,635
Total Risk-Adjusted Assets          $ 61,146            $ 63,456
Tier 1 Ratio                           17.36%              18.84%
Total Capital Ratio                    18.49%              19.91%
Tier 1 Leverage Ratio                  10.65%              10.89%

OTHER DATA
Full Time Equivalent
 Employees (FTE's)                        14                  15

Stock Price Range
 (For the Nine Months Ended):
   High                             $  20.00            $  22.00
   Low                              $  20.00            $  17.00
   Close                            $  20.00            $  18.00

Contact Information

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