SOURCE: Trinity Bank

April 27, 2011 13:52 ET

Trinity Bank 2011 Profits up 14.9%, Earnings per Share up 19.7%

26th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwire - Apr 27, 2011) - Trinity Bank N.A. (OTCBB: TYBT) today announced operating results for the three months ending March 31, 2011.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $539,000, or $.48 per diluted common share for the first quarter of 2011, compared to $469,000 or $.40 per diluted common share for the first quarter of 2010, an increase of 19.7%. This profit produced a Return on Assets of 1.42% and Return on Equity (excluding unrealized gain on investments) of 12.90%.

Jeffrey M. Harp, President, stated, "Net Income was up 14.9% over the first quarter of 2010 results. Earnings per share rose 19.7% because of the share repurchase program that began in late 2010. We are pleased with these results, especially since they were accomplished in the face of very weak loan demand."

"2011 will be a challenging year. Loan quality is improved (our Non-Performing Loan has dropped from $1,785,000 in September, 2010 to $488,000 as of March 31, 2010) and operating efficiency remains excellent. The issue we are facing this year is a number of investment securities are maturing with yields that cannot be replaced without extending the portfolio to a point that is beyond our comfort level. However, compared to our peers and the banking industry in general, we are still pleased with our overall performance."

Average for Quarter Ending

(in 000's)                       3-31-11        3-31-10          %
                                --------       --------        ----

Loans                           $ 71,103       $ 70,473          .9%
Deposits                        $133,277       $129,781         2.7%


Actual for Quarter Ending

(in 000's)                       3-31-11        3-31-10          %
                                --------       --------        ----

Net Interest Income             $  1,248       $  1,177         6.0%
Non-Interest Income             $    129       $    114        13.2%
Non-Interest Expense            $    675       $    622         8.5%
Loan Loss Provision             $      0       $     45         N/A

Pre Tax Income                  $    702       $    624        12.5%
Income Tax                      $    163       $    155         5.2%
Net Income                      $    539       $    469        14.9%


Actual for Quarter Ending

(in 000's)                       3-31-11        3-31-10          %
                                --------       --------        ----

Net Income                      $    539       $    469        14.9%
Diluted Weighted Average Shares $  1,126       $  1,171        (3.8%)
Earnings per Share              $   0.48       $   0.40        19.7%

Return on Assets                    1.42%          1.26%
Return on Equity                   12.90%         12.05%

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
                                                     March 31          %
    EARNINGS SUMMARY                               2011     2010    Change

    Interest income                                 1,474    1,488    -0.9%
    Interest expense                                  226      311   -27.3%
    Net Interest Income                             1,248    1,177     6.0%

    Provision for Loan Losses                           0       45  -100.0%

    Service charges on deposits                        37       37     0.0%
    Net gain on securities available for sale          29       13   123.1%
    Other income                                       63       64    -1.6%
    Total Non Interest Income                         129      114    13.2%

    Salaries and benefits expense                     340      313     8.6%
    Occupancy and equipment expense                    75       79    -5.1%
    Other expense                                     260      230    13.0%
    Total Non Interest Expense                        675      622     8.5%

    Earnings before income taxes                      702      624    12.5%
    Provision for income taxes                        163      155     5.2%
    Net Earnings                                      539      469    14.9%

    Basic earnings per share                         0.51     0.42    21.4%
    Basic weighted average shares
     Outstanding                                    1,067    1,116

    Diluted earnings per share                       0.48     0.40    19.7%
    Diluted weighted average shares outstanding     1,126    1,171



                                                    Average for Quarter
                                                   Ending March 31      %
    BALANCE SHEET SUMMARY                           2011     2010    Change

    Total loans                                  $ 71,103 $ 70,473     0.9%
    Total short term investments                   17,742   20,760   -14.5%
    Total investment securities                    56,684   49,764    13.9%

    Earning assets                                145,529  140,997     3.2%

    Total assets                                  151,401  148,608     1.9%

    Noninterest bearing deposits                   24,123   22,713     6.2%
    Interest bearing deposits                     109,154  107,068     1.9%

    Total deposits                                133,277  129,781     2.7%

    Fed Funds Purchased and Repurchase
     Agreements                                       582      991   -41.3%

    Shareholders' equity                           16,972   16,964     0.0%






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

                                       Average for Quarter Ending
                                March    Dec 31,   Sept.  June 30,  March
    BALANCE SHEET SUMMARY      31, 2011   2010   30, 2010   2010   31, 2010

    Total loans                $ 71,103 $ 72,047 $ 73,921 $ 74,671 $ 70,473
    Total short term
     investments                 17,742   23,496   25,261   19,397   20,760
    Total investment
     securities                  56,684   53,988   50,517   48,896   49,764

    Earning assets              145,529  149,531  149,699  142,964  140,997

    Total assets                151,401  155,868  156,779  150,282  148,608

    Noninterest bearing
     deposits                    24,123   24,267   23,717   22,134   22,713
    Interest bearing deposits   109,154  112,540  113,954  108,886  107,068

    Total deposits              133,277  136,807  137,671  131,020  129,781

    Fed Funds Purchased and
     Repurchase Agreements          582      733      874      924      991

    Shareholders' equity         16,972   17,382   17,209   17,340   16,964



                                             Quarter Ended
    HISTORICAL EARNINGS         March    Dec 31,   Sept.  June 30,  March
     SUMMARY                   31, 2011   2010   30, 2010   2010   31, 2010

    Interest income               1,474    1,516    1,542    1,536    1,488
    Interest expense                226      270      307      302      311
    Net Interest Income           1,248    1,246    1,235    1,234    1,177

    Provision for Loan Losses         0      150       45       45       45

    Service charges on deposits      37       34       37       37       37
    Net gain on securities
     available for sale              29      153       25        7       13
    Other income                     63       55       64       59       64
    Total Non Interest Income       129      242      126      103      114

    Salaries and benefits
     expense                        340      437      319      315      313
    Occupancy and equipment
     expense                         75       75       75       79       79
    FDIC expense                     45       45       45       45       39
    Other expense                   215       91      189      186      191
    Total Non Interest Expense      675      648      628      625      622

    Earnings before income taxes    702      690      688      667      624
    Provision for income taxes      163      165      173      171      155
    Net Earnings                    539      525      515      496      469




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

                                           Ending Balance
    HISTORICAL BALANCE      March    Dec 31,    Sept.   June 30,    March
     SHEET                31, 2011    2010    30, 2010    2010    31, 2010

    Total loans           $ 71,287  $ 72,460  $ 73,003  $ 74,007  $ 73,432
    Total short term
     investments            25,369    17,886    27,750    20,614    17,634
    Total investment
     securities             53,497    58,583    51,376    50,436    50,944

    Total earning assets   150,153   148,929   152,129   145,057   142,010

    Allowance for loan
     losses                  1,371     1,371     1,221     1,176     1,131
    Premises and
     equipment               1,440     1,442     1,479     1,513     1,544
    Other Assets             6,024     4,949     6,757     6,967     5,972

    Total assets           156,246   153,949   159,144   152,359   148,395

    Noninterest bearing
     deposits               27,747    26,844    25,304    21,057    22,404
    Interest bearing
     deposits              110,161   109,100   114,683   112,270   107,393

    Total deposits         137,908   135,944   139,987   133,327   129,797

    Fed Funds Purchased and
     Repurchase Agreements     534       538       702       511       590
    Other Liabilities          559       646     1,050       965       875

    Total liabilities      139,001   137,128   141,739   134,803   131,262

    Shareholders' Equity
     Actual                 16,715    16,176    16,081    16,316    15,835
    Unrealized Gain - AFS      530       645     1,324     1,240     1,299
    Total Equity            17,245    16,821    17,405    17,556    17,134



                                          Quarter Ending
                            March    Dec 31,    Sept.   June 30,    March
    NONPERFORMING ASSETS  31, 2011    2010    30, 2010    2010    31, 2010

    Nonaccrual loans      $    488  $    831  $  1,785  $      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               $    488  $    831  $  1,785  $      0  $      0

    Accruing loans past
     due 30-89 days       $      0  $      0  $      0  $      0  $      0

    Total nonperforming
     assets as a
     percentage of loans
     and foreclosed assets    0.68%     1.15%     2.45%     0.00%     0.00%





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

                                             Quarter Ending
    ALLOWANCE FOR               March   Dec 31,   Sept.    June    March
     LOAN LOSSES              31, 2011   2010   30, 2010 30, 2010 31, 2010

    Balance at beginning of
     period                    $ 1,371  $ 1,221  $ 1,176  $ 1,131  $ 1,086
    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      150       45       45       45
    Balance at end of period   $ 1,371  $ 1,371  $ 1,221  $ 1,176  $ 1,131

    Allowance for loan losses
     as a percentage of total
     loans                        1.92%    1.89%    1.67%    1.59%    1.54%
    Allowance for loan losses
     as a percentage of
     nonperforming loans        280.94%  164.98%   68.40%     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                 N/A     0.21%    0.06%    0.06%    0.06%



                                             Quarter Ending
                                March   Dec 31,   Sept.    June    March
    SELECTED RATIOS           31, 2011   2010   30, 2010 30, 2010 31, 2010

    Return on average assets
     (annualized)                 1.42%    1.35%    1.31%    1.32%    1.26%

    Return on average equity
     (annualized)                12.70%   12.08%   11.97%   11.44%   11.06%

    Return on average equity
     (excluding unrealized
     gain on investments)        12.90%   12.91%   12.95%   12.35%   12.05%

    Average shareholders'
     equity to average assets    11.21%   11.15%   10.98%   11.56%   11.42%

    Yield on earning assets
     (tax equivalent)             4.27%    4.32%    4.34%    4.52%    4.45%

    Cost of interest bearing
     funds                        0.82%    0.96%    1.07%    1.10%    1.15%

    Net interest margin (tax
     equivalent)                  3.65%    3.49%    3.52%    3.67%    3.57%

    Efficiency ratio (tax
     equivalent)                 45.45    45.18    44.13    44.04    45.34

    End of period book value
     per common share            16.16    15.76    16.04    15.73    15.35

    End of period book value
     (excluding unrealized
     gain on investments)        15.67    15.16    14.82    14.62    14.19

    End of period common
     shares outstanding          1,067    1,067    1,085    1,116    1,116




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

                                    3 Months Ending
                      March 31, 2011                 March 31, 2010

                                       Tax                            Tax
                                      Equi-                          Equi-
               Average                valent  Average                valent
YIELD ANALYSIS Balance Interest Yield  Yield  Balance Interest Yield  Yield

Interest Earning
 Assets:
Short term
 investment     17,742       36 0.81%  0.81%   20,760       72 1.39%  1.39%
Investment
 securities     22,938      246 4.29%  4.29%   27,097      293 4.33%  4.33%
Tax Free
 securities     33,746      245 2.90%  4.18%   22,667      184 3.25%  4.68%
Loans           71,103      947 5.33%  5.33%   70,473      939 5.33%  5.33%

Total Interest
 Earning
 Assets        145,529    1,474 4.05%  4.27%  140,997    1,488 4.22%  4.45%

Noninterest
 Earning Assets:
Cash and due
 from banks      4,913                          3,485
Other assets     4,083                          5,321
Allowance for
 loan losses    (1,371)                        (1,107)

Total
 Noninterest
 Earning
 Assets          7,625                          7,699

Total Assets  $153,154                       $148,696

Interest
 Bearing
 Liabilities:
Transaction and
 Money Market
 accounts       78,422      142 0.72%  0.72%   76,309      185 0.97%  0.97%
Certificates
 and other
 time deposits  30,732       83 1.08%  1.08%   30,759      124 1.61%  1.61%
Other
 borrowings        582        1 0.69%  0.69%      991        2 0.81%  0.81%

Total Interest
 Bearing
 Liabilities   109,736      226 0.82%  0.82%  108,059      311 1.15%  1.15%

Noninterest
 Bearing
 Liabilities
Demand deposits 24,123                         22,713
Other
 liabilities       570                            872
Shareholders'
 Equity         16,972                         16,964

Total
 Liabilities
 and
 Shareholders
 Equity       $151,401                       $148,608

Net Interest
 Income and
 Spread                   1,248 3.23%  3.45%             1,177 3.07%  3.30%

Net Interest
 Margin                         3.43%  3.65%                   3.34%  3.57%





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

                                    March 31            March 31
                                      2011        %       2010        %
    LOAN PORTFOLIO

    Commercial and industrial         32,364     45.41%   33,989     46.29%
    Real estate:
      Commercial                      13,547     19.01%   15,945     21.71%
      Residential                     13,328     18.70%   10,136     13.80%
      Construction and development    10,431     14.64%   10,316     14.05%
    Consumer                           1,598      2.24%    3,046      4.15%

    Total loans (gross)               71,268    100.00%   73,432    100.00%

    Unearned discounts                     0      0.00%        0      0.00%

    Total loans (net)                 71,268    100.00%   73,432    100.00%


                                    March 31            March 31
                                      2011                2010
    REGULATORY CAPITAL DATA
    Tier 1 Capital                  $ 16,716            $ 15,835
    Total Capital (Tier 1 + Tier 2) $ 17,953            $ 16,966
    Total Risk-Adjusted Assets      $ 98,788            $106,337
    Tier 1 Ratio                       16.92%              14.89%
    Total Capital Ratio                18.17%              15.95%
    Tier 1 Leverage Ratio              11.06%              10.69%

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

    Stock Price Range
     (For the Twelve Months Ended):
      High                          $  25.50            $  29.75
      Low                           $  24.10            $  19.00
      Close                         $  25.50            $  24.00

Contact Information

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