SOURCE: Trinity Bank

August 09, 2007 16:38 ET

Second Quarter Earnings Reflect Continued Growth at Trinity Bank

FORT WORTH, TX--(Marketwire - August 9, 2007) - Trinity Bank, N.A. (OTCBB: TYBT) today announced financial results for the second quarter and for the six months ending June 30, 2007.

Results of Operations

Trinity Bank, N.A. announced Net Income After Taxes of $243,761, or $.21 per diluted common share for the second quarter of 2007, compared to $225,162 or $.20 per diluted common share for the second quarter of 2006.

For the first six months of 2007, Net Income After Taxes amounted to $461,284 or $.40 per diluted common share, compared to $430,571 or $.38 per diluted common share.

Jeffrey M. Harp, President, stated, "Operating results for the second quarter of 2007 represent our eleventh consecutive quarter of increased pretax profit. Significant growth in Loans (32%) and Deposits (43%) contributed to a 65% increase in Pre-tax Income. Net Income After Taxes increased 8.4%, but was again negatively impacted by taxes at a 34% rate in 2007 versus a 0% tax rate for the second quarter of 2006."

Average for Quarter Ending

(in 000's)                      6-30-07         6-30-06        %
                                -------         -------      -----
Loans                           $46,530         $35,331      31.7%
Deposits                        $90,344         $63,278      42.8%

Actual for Quarter Ending

Net Interest Income             $   850         $   643      32.2%
Non-Interest Income             $    80         $    53      50.9%
Non-Interest Expense            $   513         $   441      16.3%
Loan Loss Provision             $    45         $    30      50.0%

Pre Tax Income                  $   372         $   225      65.3%

Income Tax                      $   128         $     0       N/M

Net Income                      $   244         $   225       8.4%

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            Six Months Ended
                             June 30         %          June 30         %
EARNINGS SUMMARY          2007     2006   Change     2007     2006   Change

Interest income          1,602    1,068    50.0%    3,081    2,017    52.8%
Interest expense           752      425    76.9%    1,468      793    85.1%
Net Interest Income        850      643    32.2%    1,613    1,224    31.8%

Provision for Loan
 Losses                     45       30    50.0%       90       60    50.0%

Service charges on
 deposits                   28       19    47.4%       52       42    23.8%
Other income                52       34    52.9%      125       84    48.8%
Total Non Interest
 Income                     80       53    50.9%      177      126    40.5%

Salaries and benefits
 expense                   248      236     5.1%      505      466     8.4%
Occupancy and
 equipment expense          87       69    26.1%      170      146    16.4%
Other expense              178      136    30.9%      324      248    30.6%
Total Non Interest
 Expense                   513      441    16.3%      999      860    16.2%

Earnings before
 income taxes              372      225    65.3%      701      430    63.0%
Provision for income
 taxes                     128        0     0.0%      240        0     0.0%
Net Earnings               244      225     8.4%      461      430     7.2%

Basic earnings per
 share                    0.22     0.20    10.0%     0.42     0.39     6.6%
Basic weighted
 average shares          1,109    1,109             1,109    1,109
 outstanding

Diluted earnings per
 share                    0.21     0.20     7.0%     0.40     0.38     5.8%
Diluted weighted
 average shares
 outstanding             1,160    1,145             1,160    1,145



                          Average for Quarter       Average for Six Months
                        Ending June 30,      %     Ending June 30,      %
BALANCE SHEET SUMMARY    2007     2006   Change     2007     2006    Change

Total loans           $ 46,530 $ 35,331    31.7% $ 44,762 $ 33,814    32.4%
Total short term
 investments            24,676   15,150    62.9%   22,108   14,962    47.8%
Total investment
 securities             26,955   19,710    36.8%   29,041   19,721    47.3%

Earning assets          98,161   70,191    39.8%   95,911   68,497    40.0%

Total assets           103,889   74,800    38.9%  101,466   73,235    38.5%

Noninterest bearing
 deposits               20,411   14,888    37.1%   19,341   14,234    35.9%
Interest bearing
 deposits               69,933   48,390    44.5%   65,770   47,539    38.3%

Total deposits          90,344   63,278    42.8%   85,111   61,773    37.8%

Shareholders' equity    11,486   10,460     9.8%   11,351   10,361     9.6%




                                    Average for Quarter Ending
                           June 30,  March 31,  Dec 31,  Sept. 30, June 30,
BALANCE SHEET SUMMARY         2007      2007      2006      2006      2006

Total loans               $  46,530 $  42,976 $  38,992 $  36,604 $  35,331
Total short term
 investments                 24,676    19,493    18,654    19,018    15,150
Total investment
 securities                  26,955    31,151    33,807    29,938    19,710

Earning assets               98,161    93,620    91,453    71,070    70,191

Total assets                103,889    99,017    96,189    90,163    74,714

Noninterest bearing
 deposits                    20,411    18,258    17,344    16,787    14,888
Interest bearing deposits    69,933    61,561    55,399    53,010    48,390

Total deposits               90,344    79,819    72,743    69,797    63,278

Repurchase Agreements         1,519     7,511    12,084     9,472       831

Shareholders' equity         11,486    11,215    10,996    10,684    10,460


                                              Quarter Ended
                           June 30, March 31,   Dec 31, Sept. 30,  June 30,
HISTORICAL EARNINGS SUMMARY   2007      2007      2006      2006      2006

Interest income               1,602     1,479     1,442     1,328     1,068
Interest expense                752       716       719       625       425
Net Interest Income             850       763       723       703       643

Provision for Loan Losses        45        45        39        33        30

Service charges on deposits      28        24        17        18        19
Other income                     52        73        43        43        34
Total Non Interest Income        80        97        60        61        53

Salaries and benefits
 expense                        248       257       286       246       236
Occupancy and equipment
 expense                         87        83        83        83        69
Other expense                   178       147        92       143       136
Total Non Interest Expense      513       487       461       472       441

Earnings before income
 taxes                          372       328       283       259       225
Provision for income taxes      128       111        83         0         0
Net Earnings                    244       217       200       259       225




                                         Ending Balance
HISTORICAL BALANCE     June 30,   March 31,   Dec 31,   Sept. 30,  June 30,
 SHEET                   2007       2007       2006       2006       2006

Total loans          $  48,388  $  46,189  $  42,465  $  37,317  $  37,489
Total short term
 investments            24,256     18,417     18,598     18,922     14,001
Total investment
 securities             27,907     32,817     29,750     35,766     19,691

Total earning assets   100,551     97,423     90,813     92,005     71,181

Allowance for loan
 losses                    636        591        546        507        474
Premises and equipment   1,723      1,767      1,804      1,837      1,780
Other Assets             4,729      3,776      4,353      4,202      4,443

Total assets           106,367    102,375     96,424     97,537     76,930

Noninterest bearing
 deposits               19,963     19,028     18,238     16,773     16,469
Interest bearing
 deposits               73,738     63,807     59,073     55,320     49,354

Total deposits          93,701     82,835     77,311     72,093     65,823

Repurchase Agreements      756      7,595      7,594     14,330        420
Other Liabilities          333        543        375        200        102

Total liabilities       94,790     90,973     85,280     86,623     66,345

Shareholders' equity    11,577     11,402     11,144     10,914     10,585


                                        Quarter Ending
                      June 30,  March 31,    Dec 31,  Sept. 30,   June 30,
NONPERFORMING ASSETS     2007       2007       2006       2006       2006

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


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




                                         Quarter Ending
ALLOWANCE FOR         June 30,   March 31,   Dec 31,   Sept. 30,  June 30,
 LOAN LOSSES             2007       2007       2006       2006       2006

Balance at beginning
 of period           $     591  $     546  $     507  $     474  $     444
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         39         33         30
Balance at end of
 period              $     636  $     591  $     546  $     507  $     474

Allowance for loan
 losses as a percentage
 of total loans           1.31%      1.28%      1.29%      1.36%      1.26%
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                    0.10%      0.10%      0.10%      0.09%      0.08%



                                         Quarter Ending
                       June 30,  March 31,    Dec 31,  Sept. 30,   June 30,
SELECTED RATIOS           2007       2007       2006       2006       2006

Return on average
 assets (annualized)      0.94%      0.88%      0.83%      1.15%      1.20%

Return on average
 equity (annualized)      8.50%      7.74%      7.28%      9.70%      8.60%

Average shareholders'
 equity to average
 assets                  11.06%     11.33%     11.43%     11.85%     14.00%

Yield on earning
 assets                   6.53%      6.32%      6.31%      6.16%      6.09%

Cost of interest
 bearing funds            4.21%      4.15%      4.27%      3.95%      3.45%

Net interest margin
 (tax equivalent)         3.46%      3.26%      3.16%      3.28%      3.66%

Efficiency ratio         55.16%     56.63%     58.87%     61.86%     63.73%

End of period book
 value per common
 share                   10.44      10.28      10.05       9.84       9.54

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




                                      Three Months Ending
                            June 30, 2007              June 30, 2006

                        Average                   Average
YIELD ANALYSIS          Balance  Interest Yield   Balance   Interest Yield

Interest Earning
 Assets:
Short term investment    24,676       331  5.37%   15,150        189  4.99%
Investment securities    26,955       301  4.47%   19,710        196  3.98%
Loans                    46,530       970  8.34%   35,331        683  7.73%

Total Interest
 Earning Assets          98,161     1,602  6.53%   70,191      1,068  6.09%

Noninterest Earning
 Assets:
Cash and due from banks   3,709                     2,772
Other assets              2,626                     2,221
Allowance for loan
 losses                    (607)                     (456)

Total Noninterest
 Earning Assets           5,728                     4,537

Total Assets          $ 103,889                  $ 74,728

Interest Bearing
 Liabilities:
Transaction and Money
 Market accounts         49,460       492  3.98%   33,747        276  3.27%
Savings deposits              0         0  0.00%        0          0  0.00%
Certificates and
 other time deposits     20,474       244  4.77%   14,644        142  3.88%
Other borrowings          1,519        16  4.21%      831          7  3.37%

Total Interest
 Bearing Liabilities     71,453       752  4.21%   49,222        425  3.45%

Noninterest Bearing
 Liabilities
Demand deposits          20,411                    14,887
Other liabilities           539                       145
Shareholders' Equity     11,486                    10,460

Total Liabilities and
 Shareholders Equity  $ 103,889                  $ 74,714

Net Interest Income
 and Spread                           850  2.32%                 643  2.63%

Net Interest Margin
 (includes
 non-interest                              3.46%                      3.67%
 bearing accounts)




                                     June 30             June 30
                                       2007        %       2006        %
LOAN PORTFOLIO

Commercial and industrial             27,470     56.77%   19,341     51.60%
Real estate:
  Commercial                           7,793     16.11%    8,052     21.48%
  Residential                          6,575     13.59%    6,849     18.27%
  Construction and development         4,701      9.72%    1,866      4.98%
Consumer                               1,849      3.82%    1,376      3.67%

Total loans (gross)                   48,388    100.00%   37,484    100.00%

Unearned discounts                         0      0.00%        0      0.00%

Total loans (net)                     48,388    100.00%   37,484    100.00%


                                     June 30             June 30
                                       2007                2006
REGULATORY CAPITAL DATA
Tier 1 Capital                      $ 11,684            $ 10,765
Total Capital (Tier 1 + Tier 2)     $ 12,320            $ 11,239
Total Risk-Adjusted Assets          $ 60,151            $ 54,812
Tier 1 Ratio                           19.42%              19.64%
Total Capital Ratio                    20.48%              20.50%
Tier 1 Leverage Ratio                  11.25%              14.41%

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

Stock Price Range
(For the Quarter Ended):
High                                $  18.00            $  17.40
Low                                 $  17.00            $  15.25
Close                               $  17.75            $  16.00

Contact Information

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