SOURCE: Trinity Bank

August 08, 2008 11:06 ET

Solid Loan Portfolio Contributes to Trinity Bank's 39% Increase in Net Income

FORT WORTH, TX--(Marketwire - August 8, 2008) - Trinity Bank, N.A. (OTCBB: TYBT) today announced financial results for the second quarter and for the six months ending June 30, 2008.

Results of Operations

Trinity Bank, N.A. announced Net Income After Taxes of $340,015 or $.29 per diluted common share for the second quarter of 2008, compared to $243,761 or $.21 per diluted common share for the second quarter of 2007, an increase of 39%.

For the first six months of 2008, Net Income After Taxes amounted to $665,326 or $.57 per diluted common share, compared to $461,284 or $.40 per diluted common share, an increase of 44%.

Jeffrey M. Harp, President, stated, "Operating results for the second quarter of 2008 represent our fifteenth consecutive quarter of profit improvement. The performance of our loan portfolio has been outstanding. We have not experienced a loan loss since the bank opened in May 2003. As of June 30, 2008, Trinity Bank had no loans on non-accrual, no other real estate owned (foreclosed real estate), and no loans that were 30 days past due. In today's environment, this is remarkable. We have been very fortunate to date."

Average for Quarter Ending

(in 000's)                       6-30-08         6-30-07          %
                                ---------       ---------       -----

Loans                           $  57,309       $  46,530        23.2%
Deposits                        $ 108,252          90,344        19.8%

Actual for Quarter Ending

Net Interest Income             $     909       $     850         6.9%
Non-Interest Income             $     106       $      80        32.5%
Non-Interest Expense            $     539       $     513         5.1%
Loan Loss Provision             $      45       $      45           -
Pre Tax Income                  $     431       $     372        15.9%
Income Tax                      $      91       $     128       -28.9%
Net Income                      $     340       $     244        39.3%





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



                           Quarter Ended            Six Months Ended
                             June 30         %          June 30         %
EARNINGS SUMMARY          2008     2007   Change     2008     2007   Change

Interest income          1,430    1,602   -10.7%    3,011    3,081    -2.3%
Interest expense           521      752   -30.7%    1,201    1,468   -18.2%
Net Interest Income        909      850     6.9%    1,810    1,613    12.2%

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

Service charges on
 deposits                   24       28   -14.3%       49       52    -5.8%
Other income                82       52    57.7%      180      125    44.0%
Total Non Interest
 Income                    106       80    32.5%      229      177    29.4%

Salaries and benefits
 expense                   283      248    14.1%      568      505    12.5%
Occupancy and
 equipment expense          87       87     0.0%      174      170     2.4%
Other expense              169      178    -5.1%      345      324     6.5%
Total Non Interest
 Expense                   539      513     5.1%    1,087      999     8.8%

Earnings before
 income taxes              431      372    15.9%      862      701    23.0%
Provision for income
 taxes                      91      128   -28.9%      197      240   -17.9%
Net Earnings               340      244    39.3%      665      461    44.3%

Basic earnings per
 share                    0.31     0.22    39.3%     0.60     0.42    44.3%
Basic weighted
 average shares          1,109    1,109             1,109    1,109
 outstanding

Diluted earnings per
 share                    0.29     0.21    38.6%     0.57     0.40    43.5%
Diluted weighted
 average shares
 outstanding             1,166    1,160             1,166    1,160



                      Average for Quarter       Average for Six Months
                       Ending June 30,       %    Ending June 30,       %
BALANCE SHEET SUMMARY   2008     2007     Change   2008     2007     Change

Total loans           $ 57,309 $ 46,530    23.2% $ 53,594 $ 44,762    19.7%
Total short term
 investments            23,073   24,676    -6.5%   24,908   22,098    12.7%
Total investment
 securities             36,588   26,955    35.7%   38,811   29,041    33.6%

Earning assets         116,970   98,161    19.2%  117,313   95,901    22.3%

Total assets           122,227  103,889    17.7%  122,673  101,466    20.9%

Noninterest bearing
 deposits               20,553   20,411     0.7%   20,683   19,341     6.9%
Interest bearing
 deposits               87,699   69,933    25.4%   88,131   65,770    34.0%

Total deposits         108,252   90,344    19.8%  108,814   85,111    27.8%

Shareholders' equity    12,821   11,486    11.6%   12,656   11,351    11.5%





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



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

Total loans                    $ 57,309 $ 49,878 $ 50,053 $ 50,328 $ 46,530
Total short term investments     23,073   26,740   27,011   22,927   24,676
Total investment securities      36,588   41,033   36,569   30,778   26,955

Earning assets                  116,970  117,651  113,633  104,033   98,161

Total assets                    122,227  123,192  119,646  109,844  103,889

Noninterest bearing deposits     20,553   20,814   23,620   21,396   20,411
Interest bearing deposits        87,699   88,562   82,504   75,546   69,933

Total deposits                  108,252  109,376  106,124   96,942   90,344

Repurchase Agreements               620      806      849      663    1,519

Shareholders' equity             12,821   12,491   12,078   11,725   11,486


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

Interest income                   1,430    1,581    1,745    1,721    1,602
Interest expense                    521      680      803      804      752
Net Interest Income                 909      901      942      917      850

Provision for Loan Losses            45       45       45       45       45

Service charges on deposits          24       25       28       25       28
Other income                         82       98       39       51       52
Total Non Interest Income           106      123       67       76       80

Salaries and benefits expense       283      285      324      278      248
Occupancy and equipment
 expense                             87       87       91       91       87
Other expense                       169      176      115      161      178
Total Non Interest Expense          539      548      530      530      513

Earnings before income taxes        431      431      434      418      372
Provision for income taxes           91      106      129      147      128
Net Earnings                        340      325      305      271      244





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




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

Total loans               $ 62,061  $ 51,866  $ 50,545  $ 50,936  $ 48,392
Total short term
 investments                15,415    27,818    25,654    24,235    24,256
Total investment
 securities                 39,803    37,740    43,561    31,685    27,907

Total earning assets       117,279   117,424   119,760   106,856   100,555

Allowance for loan losses      816       771       726       681       636
Premises and equipment       1,541     1,588     1,630     1,677     1,723
Other Assets                 4,657     4,491     4,572     5,126     4,780

Total assets               122,661   122,732   125,236   112,978   106,422

Noninterest bearing
 deposits                   20,506    20,820    24,423    22,487    19,963
Interest bearing deposits   88,270    87,874    87,352    77,319    73,738

Total deposits             108,776   108,694   111,775    99,806    93,701

Repurchase Agreements          621       714       820       732       756
Other Liabilities              401       585       379       494       388

Total liabilities          109,798   109,993   112,974   101,032    94,845

Shareholders' equity        12,863    12,739    12,262    11,946    11,577


                                            Quarter Ending
                                      March               Sept.
                          June 30,     31,     Dec 31,     30,     June 30,
NONPERFORMING ASSETS        2008      2008      2007      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               $      0  $      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
                                         June   March   Dec   Sept.  June
                                          30,    31,    31,    30,    30,
ALLOWANCE FOR LOAN LOSSES                2008   2008   2007   2007   2007

Balance at beginning of period           $ 771  $ 726  $ 681  $ 636  $ 591
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                 $ 816  $ 771  $ 726  $ 681  $ 636

Allowance for loan losses
 as a percentage of total loans           1.31%  1.49%  1.44%  1.34%  1.31%
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         0.08%  0.09%  0.09%  0.09%  0.09%



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

Return on average assets (annualized)     1.11%  1.06%  1.02%  0.99%  0.94%

Return on average equity (annualized)    10.61% 10.41% 10.10%  9.25%  8.50%

Average shareholders' equity to average
 assets                                  10.49% 10.14% 10.09% 10.67% 11.06%

Yield on earning assets (tax equivalent)  5.17%  5.58%  6.30%  6.64%  6.53%

Cost of interest bearing funds            2.37%  3.04%  3.85%  4.22%  4.21%

Net interest margin (tax equivalent)      3.39%  3.26%  3.44%  3.56%  3.46%

Efficiency ratio (tax equivalent)        49.27% 50.70% 52.53% 53.37% 55.16%

End of period book value per common
 share                                   11.60  11.49  11.06  10.77  10.44

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
                                  June 30, 2008          June 30, 2007

                                               Tax                    Tax
                                Average     Equivalent Average   Equivalent
YIELD ANALYSIS                  Balance Yield Yield    Balance Yield Yield

Interest Earning Assets:
Short term investment            23,073  3.42% 3.42%    24,676  5.37% 5.37%
Investment securities            14,282  3.91% 3.91%    26,955  4.47% 4.47%
Tax Free securities              22,306  3.24% 4.65%         0  0.00% 0.00%
Loans                            57,309  6.39% 6.39%    46,530  8.34% 8.34%

Total Interest Earning Assets   116,970  4.90% 5.17%    98,161  6.53% 6.53%

Noninterest Earning Assets:
Cash and due from banks           3,532                  3,709
Other assets                      2,519                  2,626
Allowance for loan losses          (794)                  (607)

Total Noninterest Earning
 Assets                           5,257                  5,728

Total Assets                  $ 122,227              $ 103,889

Interest Bearing Liabilities:
Transaction and Money Market
 accounts                        64,092  1.83% 1.83%    49,460  3.98% 3.98%
Certificates and other time
 deposits                        23,607  3.86% 3.86%    20,474  4.77% 4.77%
Other borrowings                    620  1.25% 1.25%     1,519  4.21% 4.21%

Total Interest Bearing
 Liabilities                     88,319  2.37% 2.37%    71,453  4.21% 4.21%

Noninterest Bearing
 Liabilities:
Demand deposits                  20,553                 20,411
Other liabilities                   534                    539
Shareholders' Equity             12,821                 11,486

Total Liabilities and
 Shareholders Equity          $ 122,227              $ 103,889

Net Interest Income and
 Spread                                  2.53% 2.80%            2.32% 2.32%

Net Interest Margin (includes
 non-interest bearing
 accounts)                               3.12% 3.39%            3.46% 3.46%





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



                                    June 30             June 30
LOAN PORTFOLIO                       2008        %       2007        %


Commercial and industrial             34,266     55.21%   27,470     56.77%
Real estate:
      Commercial                      11,056     17.81%    7,793     16.11%
      Residential                      8,194     13.20%    6,575     13.59%
      Construction and development     6,547     10.55%    4,701      9.72%
Consumer                               1,998      3.22%    1,849      3.82%

Total loans (gross)                   62,061    100.00%   48,388    100.00%

Unearned discounts                         0      0.00%        0      0.00%

Total loans (net)                     62,061    100.00%   48,388    100.00%


                                     June 30             June 30
                                      2008                2007
REGULATORY CAPITAL DATA
Tier 1 Capital                      $ 12,929            $ 11,684
Total Capital (Tier 1 + Tier 2)     $ 13,745            $ 12,320
Total Risk-Adjusted Assets          $ 73,155            $ 60,151
Tier 1 Ratio                           17.67%              19.42%
Total Capital Ratio                    18.79%              20.48%
Tier 1 Leverage Ratio                  10.58%              11.25%

OTHER DATA
Full Time Equivalent
 Employees (FTEs)                        14                  14

Stock Price Range
 (For the Six Months Ended):
      High                          $  20.00            $  18.00
      Low                           $  20.00            $  17.00
      Close                         $  20.00            $  17.75

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.

Contact Information

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