SOURCE: Trinity Bank

July 25, 2011 13:54 ET

Trinity Bank 2011 2nd Quarter Profits up 12.5%

2nd Quarter Earnings per Share up 16.7%; 27th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwire - Jul 25, 2011) - Trinity Bank N.A. (OTCBB: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2011.

Results of Operations

For the second quarter of 2011, Trinity Bank, N.A. reported Net Income after Taxes of $558,000, an increase of 12.5% over second quarter 2010 earnings of $496,000. Earnings per diluted common share for the second quarter 2011 amounted to $.49, an increase of 16.7% over second quarter 2010 results of $.42 per diluted common share.

For the first six months of 2011, Net Income after Taxes was $1,097,000, an increase of 13.8% over the first half of 2010 results of $964,000. Earnings per diluted common share for the first half of 2011 were $.97, an increase of 18.3% over the first half of 2010 results of $.82 per diluted common share.

Jeffrey M. Harp, President, stated, "The increase in Earnings Per Share (16.7%) is greater than the increase in Net Income (12.5%) because of the share repurchase program put in place in June 2010. We continue to believe that repurchasing shares at appropriate prices produces shareholder value."

Mr. Harp also reported, "The shareholders of Trinity Bank approved a new stock repurchase program at the 2011 annual meeting. Subsequently, our primary regulator, the Office of the Comptroller of the Currency, approved our application to repurchase up to 3% of the outstanding common stock of Trinity Bank through open-market purchases during the next 12 months."

"In spite of the uncertainty in Washington and, as a result, the economy in general, Trinity Bank generated a Return on Assets of 1.46% and a Return on Equity (excluding unrealized gain on investments) of 13.11% for the second quarter of 2011. These returns compare very favorably to other banks, regionally and nationally."

Actual for Quarter Ending
3 Months 3 Months
(in 000's) 6-30-11 6-30-10 %
Diluted Weighted Average Shares 1,133 1,171
Earnings per Share $ 0.49 $ 0.42 16.7 %
Actual for Six Months Ending
6 Months 6 Months
(in 000's) 6-30-11 6-30-10
Diluted Weighted Average Shares 1,131 1,171
Earnings per Share $ 0.97 $ 0.82 18.3 %
Return on Assets 1.46 % 1.32 %
Return on Equity 13.11 % 12.35 %

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 2011 2010 Change 2011 2010 Change
Interest income 1,426 1,536 -7.2 % 2,900 3,023 -4.1 %
Interest expense 217 302 -28.1 % 443 613 -27.7 %
Net Interest Income 1,209 1,234 -2.0 % 2,457 2,410 2.0 %
Provision for Loan Losses 0 45 N/A 0 90 N/A
Service charges on deposits 29 37 -21.6 % 66 74 -10.8 %
Net gain on securities available for sale 28 7 300.0 % 57 20 185.0 %
Other income 78 59 32.2 % 140 123 13.8 %
Total Non Interest Income 135 103 31.1 % 263 217 21.2 %
Salaries and benefits expense 312 315 -1.0 % 652 628 3.8 %
Occupancy and equipment expense 79 79 0.0 % 154 158 -2.5 %
Other expense 218 231 -5.6 % 478 461 3.7 %
Total Non Interest Expense 609 625 -2.6 % 1,284 1,247 3.0 %
Earnings before income taxes 735 667 10.2 % 1,436 1,290 11.3 %
Provision for income taxes 177 171 3.5 % 339 326 4.0 %
Net Earnings 558 496 12.5 % 1,097 964 13.8 %
Basic earnings per share 0.52 0.44 18.2 % 1.03 0.86 19.8 %
Basic weighted average shares outstanding 1,072
1,116
1,070
1,116
Diluted earnings per share 0.49 0.42 16.7 % 0.97 0.82 18.3 %
Diluted weighted average shares outstanding 1,133 1,171 1,131 1,171

Average for Quarter Average for Six Months
Ending June 30 % Ending June 30 %
BALANCE SHEET SUMMARY 2011 2010 Change 2011 2010 Change
Total loans $ 71,676 $ 74,671 -4.0 % $ 71,391 $ 72,584 -1.6 %
Total short term investments 21,929 19,397 13.1 % 19,025 20,075 -5.2 %
Total investment securities 50,714 48,896 3.7 % 53,681 49,328 8.8 %
Earning assets 144,319 142,964 0.9 % 144,097 141,987 1.5 %
Total assets 152,633 150,282 1.6 % 152,020 149,535 1.7 %
Noninterest bearing deposits 25,176 22,134 13.7 % 24,644 22,420 9.9 %
Interest bearing deposits 108,696 108,886 -0.2 % 108,932 107,984 0.9 %
Total deposits 133,872 131,020 2.2 % 133,576 130,404 2.4 %
Fed Funds Purchased and Repurchase Agreements 438 924 -52.6 % 609 957 -36.4 %
Shareholders' equity 17,687 17,340 2.0 % 17,331 17,153 1.0 %
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 2011 2011 2010 2010 2010
Total loans $ 71,676 $ 71,103 $ 72,047 $ 73,921 $ 74,671
Total short term investments 21,929 17,742 23,496 25,261 19,397
Total investment securities 50,714 56,684 53,988 50,517 49,896
Earning assets 144,319 145,529 149,531 149,699 142,964
Total assets 152,633 151,401 155,868 156,779 150,282
Noninterest bearing deposits 25,176 24,123 24,267 23,717 22,134
Interest bearing deposits 108,696 109,154 112,540 113,954 108,886
Total deposits 133,872 133,277 136,807 137,671 131,020
Fed Funds Purchased and Repurchase Agreements 438 582 733 874 924
Shareholders' equity 17,687 16,972 17,382 17,209 17,340

Quarter Ended
June 30, March 31, Dec 31, Sept. 30, June 30,
HISTORICAL EARNINGS SUMMARY 2011 2011 2010 2010 2010
Interest income 1,426 1,474 1,516 1,542 1,536
Interest expense 217 226 270 307 302
Net Interest Income 1,209 1,248 1,246 1,235 1,234
Provision for Loan Losses 0 0 150 45 45
Service charges on deposits 29 37 34 37 37
Net gain on securities available for sale 28 29 153 25 7
Other income 78 63 55 64 59
Total Non Interest Income 135 129 242 126 103
Salaries and benefits expense 312 340 437 319 315
Occupancy and equipment expense 79 75 75 75 79
FDIC expense 45 45 45 45 45
Other expense 173 215 91 189 186
Total Non Interest Expense 609 675 648 628 625
Earnings before income taxes 735 702 690 688 667
Provision for income taxes 177 163 165 173 171
Net Earnings 558 539 525 515 496
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 2011 2011 2010 2010 2010
Total loans $ 74,822 $ 71,287 $ 72,460 $ 73,003 $ 74,007
Total short term investments 17,404 25,369 17,886 27,750 20,612
Total investment securities 51,982 53,497 58,583 51,376 50,436
Total earning assets 144,208 150,153 148,929 152,129 145,055
Allowance for loan losses 1,371 1,371 1,371 1,221 1,176
Premises and equipment 1,404 1,440 1,442 1,479 1,513
Other Assets 5,850 6,024 4,949 6,757 6,967
Total assets 150,091 156,246 153,949 159,144 152,359
Noninterest bearing deposits 24,208 27,747 26,844 25,304 21,057
Interest bearing deposits 106,761 110,161 109,100 114,683 112,270
Total deposits 130,969 137,908 135,944 139,987 133,327
Fed Funds Purchased and Repurchase Agreements 292 534 538 702 511
Other Liabilities 690 559 646 1,050 965
Total liabilities 131,951 139,001 137,128 141,739 134,803
Shareholders' Equity Actual 17,306 16,715 16,176 16,081 16,316
Unrealized Gain - AFS 834 530 645 1,324 1,240
Total Equity 18,140 17,245 16,821 17,405 17,556

Quarter Ending
June 30, March 31, Dec 31, Sept. 30, June 30,
NONPERFORMING ASSETS 2011 2011 2010 2010 2010
Nonaccrual loans $ 850 $ 488 $ 831 $ 1,785 $ 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 $ 850 $ 488 $ 831 $ 1,785 $ 0
Accruing loans past due 30-89 days $ 0 $ 0 $ 0 $ 0 $ 0
Total nonperforming assets as a percentage
of loans and foreclosed assets 1.14 % 0.68 % 1.15 % 2.45 % 0.00 %
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Quarter Ending
ALLOWANCE FOR LOAN LOSSES June 30, March 31, Dec 31, Sept. 30, June 30,
2011 2011 2010 2010 2010
Balance at beginning of period $ 1,371 $ 1,371 $ 1,221 $ 1,176 $ 1,131
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 0 0 150 45 45
Balance at end of period $ 1,371 $ 1,371 $ 1,371 $ 1,221 $ 1,176
Allowance for loan losses as a percentage of total loans 1.83 % 1.92 % 1.89 % 1.67 % 1.59 %
Allowance for loan losses as a percentage of nonperforming loans 161.29 % 280.94 % 164.98 % 68.40 % 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 N/A N/A 0.21 % 0.06 % 0.06 %

Quarter Ending
June 30, March 31, Dec 31, Sept. 30, June 30,
SELECTED RATIOS 2011 2011 2010 2010 2010
Return on average assets (annualized) 1.46 % 1.42 % 1.35 % 1.31 % 1.32 %
Return on average equity (annualized) 12.62 % 12.70 % 12.08 % 11.97 % 11.44 %
Return on average equity (excluding unrealized gain on investments) 13.11 % 12.90 % 12.91 % 12.95 % 12.35 %
Average shareholders' equity to average assets 11.59 % 11.21 % 11.15 % 10.98 % 11.54 %
Yield on earning assets (tax equivalent) 4.24 % 4.27 % 4.32 % 4.34 % 4.52 %
Cost of interest bearing funds 0.80 % 0.82 % 0.96 % 1.07 % 1.10 %
Net interest margin (tax equivalent) 3.64 % 3.65 % 3.49 % 3.52 % 3.67 %
Efficiency ratio (tax equivalent) 42.29 45.45 45.18 44.13 44.04
End of period book value per common share 16.87 16.16 15.76 16.04 15.73
End of period book value (excluding unrealized gain on investments) 16.10 15.67 15.16 14.82 14.62
End of period common shares outstanding 1,075 1,067 1,067 1,085 1,116
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
3 Months Ending
June 20, 2011 June 20, 2010
Tax Tax
Average Equiv alent Average Equiv alent
YIELD ANALYSIS Balance Interest Yield Yield Balance Interest Yield Yield
Interest Earning Assets:
Short term investment 21,929 33 0.60 % 0.60 % 19,398 60 1.24 % 1.24 %
Investment securities 17,680 202 4.57 % 4.57 % 26,876 291 4.33 % 4.33 %
Tax Free securities 33,034 238 2.88 % 4.15 % 22,020 181 3.29 % 4.74 %
Loans 71,676 953 5.32 % 5.32 % 74,671 1,004 5.38 % 5.38 %
Total Interest Earning Assets 144,319 1,426 3.95 % 4.24 % 142,965 1,536 4.30 % 4.52 %
Noninterest Earning Assets:
Cash and due from banks 5,590 3,295
Other assets 4,095 5,181
Allowance for loan losses (1,371 ) (1,159 )
Total Noninterest Earning Assets 8,314 7,317
Total Assets $ 152,633 $ 150,282
Interest Bearing Liabilities:
Transaction and Money Market accounts 79,397 144 0.73 % 0.73 % 76,687 186 0.97 % 0.97 %
Certificates and other time deposits 29,300 73 0.99 % 0.99 % 32,199 114 1.42 % 1.42 %
Other borrowings 438 1 0.46 % 0.46 % 924 2 0.87 % 0.87 %
Total Interest Bearing Liabilities 109,135 217 0.80 % 0.80 % 109,810 302 1.10 % 1.10 %
Noninterest Bearing Liabilities
Demand deposits 25,176 22,134
Other liabilities 635 998
Shareholders' Equity 17,687 17,340
Total Liabilities and Shareholders Equity $ 152,633 $ 150,282
Net Interest Income and Spread 1,209 3.16 % 3.45 % 1,234 3.20 % 3.42 %
Net Interest Margin 3.35 % 3.64 % 3.45 % 3.67 %

TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
June 30 June 30
2011 % 2010 %
LOAN PORTFOLIO
Commercial and industrial 35,199 47.04 % 35,194 47.55 %
Real estate:
Commercial 13,243 17.70 % 16,010 21.63 %
Residential 14,634 19.56 % 10,363 14.00 %
Construction and development 10,148 13.56 % 10,577 14.29 %
Consumer 1,598 2.14 % 1,863 2.52 %
Total loans (gross) 74,822 100.00 % 74,007 100.00 %
Unearned discounts 0 0.00 % 0 0.00 %
Total loans (net) 74,822 100.00 % 74,007 100.00 %
June 30 June 30
2011 2010
REGULATORY CAPITAL DATA
Tier 1 Capital $ 17,306 $ 16,316
Total Capital (Tier 1 + Tier 2) $ 18,524 $ 17,492
Total Risk-Adjusted Assets $ 97,307 $ 107,438
Tier 1 Ratio 17.78 % 15.19 %
Total Capital Ratio 19.04 % 16.28 %
Tier 1 Leverage Ratio 11.37 % 10.87 %
OTHER DATA
Full Time Equivalent
Employees (FTE's) 14 14
Stock Price Range
(For the Three Months Ended):
High $ 26.00 $ 25.00
Low $ 25.50 $ 21.00
Close $ 26.00 $ 23.00

Contact Information

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