SOURCE: Trinity Bank

November 06, 2009 12:03 ET

Trinity Bank Reports 17.1% Increase in Net Income for Third Quarter

20th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwire - November 6, 2009) - Trinity Bank N.A. (OTCBB: TYBT) today announced financial and operating results for the third quarter and the nine months ending September 30, 2009.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $418,000 or $.36 per diluted common share for the third quarter of 2009, compared to $357,000 or $.31 per diluted common share for the third quarter of 2008 -- a 17.1% increase. This level of profit produced a Return on Assets of 1.12% and a Return on Equity of 10.64% for the third quarter.

For the first nine months of 2009, Net Income after Taxes amounted to $1,194,000 or $1.02 per diluted common share versus $1,022,000 or $.88 per diluted common share for the first nine months of 2008 -- a 16.8% increase.

Jeffrey M. Harp, President, stated, "We continue to produce good returns in a weak economy. Strong growth in Total Assets, exceptional efficiency and no problem loan expense were major contributors to the improved performance.

"Compared to the first nine months of 2008, Average Assets grew 16%, Non-Interest Expense (net of the $180,000 increase in FDIC expense) was up only 4.6%. We have not incurred any loan losses since inception in May 2003 and we have no non-performing loans.

"Loan demand remains weak in our market area, but we are maintaining our focus on developing long-term relationships with quality businesses and individuals."

Average for Quarter Ending

(in 000's)                       9-30-09     9-30-08       %
                                --------    --------     ----

Loans                           $ 66,920    $ 64,946      3.0%
Deposits                        $132,496    $110,586     19.8%

Actual for Quarter Ending

(in 000's)                       9-30-09     9-30-08       %
                                --------    --------     ----

Net Interest Income             $  1,096    $    938     16.8%
Non-Interest Income                  172          87     97.7%
Non-Interest Expense                 683         539     26.7%
Loan Loss Provision                   45          45        -

Pre Tax Income                  $    540    $    441     22.4%
Income Tax                      $    122    $     84     45.2%
Net Income                      $    418    $    357     17.1%

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 to loan losses and the estimations of values of collateral and various financial assets and liabilities, that the cost 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 hold 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 obligations 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        2009     2008   Change     2009     2008   Change

Interest income          1,494    1,464     2.0%    4,368    4,475    -2.4%
Interest expense           398      526   -24.3%    1,229    1,727   -28.8%
Net Interest Income      1,096      938    16.8%    3,139    2,748    14.2%

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

Service charges on
 deposits                   36       23    56.5%       90       72    25.0%
Net gain on
 securities available
 for sale                   78       15   420.0%       87       42   107.1%
Other income                58       49    18.4%      221      202     9.4%
Total Non Interest
 Income                    172       87    97.7%      398      316    25.9%

Salaries and benefits
 expense                   292      301    -3.0%      868      870    -0.2%
Occupancy and
 equipment expense          89       86     3.5%      261      259     0.8%
Other expense              302      152    98.7%      752      497    51.3%
Total Non Interest
 Expense                   683      539    26.7%    1,881    1,626    15.7%

Earnings before
 income taxes              540      441    22.4%    1,521    1,303    16.7%
Provision for income
 taxes                     122       84    45.2%      327      281    16.4%
Net Earnings               418      357    17.1%    1,194    1,022    16.8%

Basic earnings per
 share                    0.38     0.32    17.0%     1.08     0.92    16.7%
Basic weighted
 average shares
 outstanding             1,110    1,109             1,110    1,109

Diluted earnings per
 share                    0.36     0.31    17.1%     1.02     0.88    16.8%
Diluted weighted
 average shares
 outstanding             1,166    1,166             1,166    1,166


                        Average for Quarter       Average for Nine Months
                     Ending September 30     %    Ending September 30   %
                         2009     2008    Change    2009     2008    Change
BALANCE SHEET SUMMARY

Total loans           $ 66,920 $ 64,946     3.0% $ 63,996 $ 57,405    11.5%
Total short term
 investments            23,611   17,627    33.9%   21,761   22,463    -3.1%
Total investment
 securities             52,448   37,060    41.5%   50,996   38,222    33.4%

Earning assets         142,979  119,633    19.5%  136,753  118,090    15.8%

Total assets           149,782  124,795    20.0%  143,218  123,386    16.1%

Noninterest bearing
 deposits               23,606   21,199    11.4%   23,345   20,857    11.9%
Interest bearing
 deposits              108,890   89,387    21.8%  101,738   88,552    14.9%

Total deposits         132,496  110,586    19.8%  125,083  109,409    14.3%

Fed Funds Purchased
 and Repurchase
 Agreements                743      799    -7.0%    2,425      741   227.3%

Shareholders' equity    15,725   13,073    20.3%   15,048   12,796    17.6%




                            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            2009     2009     2009     2008     2008

Total loans                    $ 66,920 $ 62,824 $ 62,192 $ 65,398 $ 64,946
Total short term investments     23,611   21,426   20,209   22,898   17,627
Total investment securities      52,448   53,319   47,162   39,329   37,060

Earning assets                  142,979  137,569  129,563  127,625  119,633

Total assets                    149,782  143,961  135,756  133,175  124,795

Noninterest bearing deposits     23,603   23,240   23,184   24,012   21,199
Interest bearing deposits       108,893  103,722   92,425   90,298   89,387

Total deposits                  132,496  126,962  115,609  114,310  110,586

Fed Funds Purchased and
 Repurchase Agreements              743    1,323    5,259    4,934      798

Shareholders' equity             15,725   15,029   14,376   13,531   13,073


                                             Quarter Ended
                             Sept. 30, June 30, March 31, Dec 31, Sept. 30,
HISTORICAL EARNINGS SUMMARY      2009     2009     2009     2008     2008

Interest income                   1,494    1,446    1,427    1,456    1,464
Interest expense                    398      413      418      478      526
Net Interest Income               1,096    1,033    1,009      978      938

Provision for Loan Losses            45       45       45       45       45

Service charges on deposits          36       30       25       24       23
Gain on Sale - AFS                   78        6        3        0        0
Other income                         58       85       76       40       64
Total Non Interest Income           172      121      104       64       87

Salaries and benefits expense       292      284      291      342      301
Occupancy and equipment
 expense                             89       87       85       87       86
Other expense                       302      243      207      108      152
Total Non Interest Expense          683      614      583      537      539

Earnings before income taxes        540      495      485      460      441
Provision for income taxes          122      105       99       90       84
Net Earnings                        418      390      386      370      357




                            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    2009      2009      2009      2008      2008

Total loans               $ 67,661  $ 64,339  $ 60,086  $ 66,715  $ 65,595
Total short term
 investments                20,968    18,739    17,301    20,502    23,291
Total investment
 securities                 56,209    53,282    50,553    44,980    34,523

Total earning assets       144,838   136,360   127,940   132,197   123,409

Allowance for loan losses    1,041       996       951       906       861
Premises and equipment       1,610     1,665     1,700     1,719     1,680
Other Assets                 6,589     6,491     4,926     5,347     3,754

Total assets               151,996   143,520   133,615   138,357   127,982

Noninterest bearing
 deposits                   22,235    22,562    21,511    28,665    21,769
Interest bearing deposits  111,965   104,498    96,283    87,552    91,448

Total deposits             134,200   127,060   117,794   116,217   113,217

Fed Funds Purchased and
 Repurchase Agreements         535       524       508     7,771       934
Other Liabilities            1,023       640       612       441       483

Total liabilities          135,758   128,224   118,914   124,429   114,634

Shareholders' equity        16,238    15,296    14,701    13,928    13,348


                                           Quarter Ending
                         Sept. 30,  June 30,  March 31,  Dec 31,  Sept. 30,
NONPERFORMING ASSETS        2009      2009      2009      2008      2008

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  $    152  $      5

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
                             Sept. 30, June 30, March 31, Dec 31, Sept. 30,
ALLOWANCE FOR LOAN LOSSES       2009      2009    2009     2008      2008

Balance at beginning of period $   996  $   951  $   906  $   861  $   816
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       $ 1,041  $   996  $   951  $   906  $   861

Allowance for loan losses
as a percentage of total loans    1.54%    1.55%    1.58%    1.51%    1.29%
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%    0.07%    0.07%    0.07%    0.07%


                                           Quarter Ending
                             Sept. 30, June 30, March 31, Dec 31, Sept. 30,
SELECTED RATIOS                  2009      2009    2009     2008      2008


Return on average assets
 (annualized)                     1.12%    1.08%    1.14%    1.11%    1.14%

Return on average equity
 (annualized)                    10.63%   10.38%   10.74%   10.94%   10.92%

Return on average equity
 (excluding unrealized gain on
 investments)                    11.44%   10.97%   11.18%   11.02%   10.92%

Average shareholders' equity
 to average assets               10.50%   10.44%   10.59%   10.16%   10.48%

Yield on earning assets (tax
 equivalent)                      4.43%    4.47%    4.71%    5.20%    5.21%

Cost of interest bearing funds    1.45%    1.60%    1.71%    2.43%    2.33%

Net interest margin (tax
 equivalent)                      3.32%    3.27%    3.40%    3.37%    3.45%

Efficiency ratio (tax
 equivalent)                     50.37%   49.32%   48.30%   47.18%   48.13%

End of period book value per
 common share                    14.63    13.78    13.26    12.56    12.04

End of period book value
 (excluding unrealized gain on
 investments)                    13.17    12.81    12.46    12.11    11.79

End of period common shares
 outstanding                     1,110    1,110    1,109    1,109    1,109




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

                                    3 Months Ending
                  September 30, 2009              September 30, 2008
                                     Tax                             Tax
                                    Equiv-                          Equiv-
YIELD        Average                 alent   Average                 alent
 ANALYSIS    Balance Interest Yield  Yield   Balance Interest Yield  Yield

Interest Earning
 Assets:
Short term
 investment   23,611       87 1.47%   1.47%   17,627      149 3.38%   3.38%
Investment
 securities   27,288      296 4.34%   4.34%   10,298       91 3.53%   3.53%
Tax Free
 securities   25,160      200 3.18%   4.58%   26,762      214 3.20%   4.60%
Loans         66,920      911 5.45%   5.45%   64,893    1,010 6.23%   6.23%

Total Interest
 Earning
 Assets      142,979    1,494 4.18%   4.43%  119,580    1,464 4.90%   5.21%

Noninterest
 Earning
 Assets:
Cash and due
 from banks    3,442                           3,477
Other assets   4,378                           2,705
Allowance for
 loan losses  (1,017)                           (838)

Total
 Noninterest
 Earning
 Assets        6,803                           5,344

Total
 Assets     $149,782                        $124,924

Interest Bearing
 Liabilities:
Transaction
 and Money
 Market
 accounts     76,571      231 1.21%   1.21%   65,746      315 1.92%   1.92%
Certificates
 and other
 time
 deposits     32,318      166 2.05%   2.05%   23,640      208 3.52%   3.52%
Other
 borrowings      743        1 0.54%   0.54%      799        3 1.50%   1.50%

Total Interest
 Bearing
 Liabilities 109,632      398 1.45%   1.45%   90,185      526 2.33%   2.33%

Noninterest
 Bearing
 Liabilities
Demand
 deposits     23,606                          21,200
Other
 liabilities     819                             466
Shareholders'
 Equity       15,725                          13,073

Total
 Liabilities
 and
 Shareholders
 Equity     $149,782                        $124,924

Net Interest
 Income and
 Spread                 1,096 2.73%   2.98%               938 2.56%   2.88%

Net Interest
 Margin                       3.07%   3.32%                   3.14%   3.45%




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

                                    Sept 30             Sept 30
                                      2009        %       2008        %
LOAN PORTFOLIO

Commercial and industrial             30,988     45.80%   36,253     55.27%
Real estate:
  Commercial                          12,334     18.23%   10,571     16.12%
  Residential                         10,709     15.83%    9,909     15.11%
  Construction and development        10,499     15.52%    5,404      8.24%
Consumer                               3,131      4.63%    3,458      5.27%

Total loans (gross)                   67,661    100.00%   65,595    100.00%

Unearned discounts                         0      0.00%        0      0.00%

Total loans (net)                     67,661    100.00%   65,595    100.00%


                                     Sept 30             Sept 30
                                       2009                2008
REGULATORY CAPITAL DATA
Tier 1 Capital                      $ 14,861            $ 13,287
Total Capital (Tier 1 + Tier 2)     $ 15,902            $ 14,148
Total Risk-Adjusted Assets          $ 87,210            $ 61,146
Tier 1 Ratio                           14.57%              17.36%
Total Capital Ratio                    15.59%              18.49%
Tier 1 Leverage Ratio                   9.92%              10.65%

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

Stock Price Range
(For the Twelve Months Ended):
  High                              $  29.75            $  20.00
  Low                               $  20.00            $  20.00
  Close                             $  29.50            $  20.00

Contact Information

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