SOURCE: Trinity Bank

July 29, 2014 16:04 ET

Trinity Bank 2014 2nd Quarter Net Income up 15.3%; 2nd Quarter Earnings per Share up 16.4%; 39th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwired - Jul 29, 2014) -  Trinity Bank N.A. (OTCBB: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2014.

Results of Operation

For the second quarter 2014, Trinity Bank, N.A. reported Net Income after Taxes of $807,000, an increase of 15.3% over second quarter 2013 earnings of $700,000. Earnings per diluted common share for the second quarter 2014 amounted to $0.71, an increase of 16.4% over second quarter 2013 results of $0.61 per diluted common share.

For the first six months of 2014, Net Income after Taxes was $1,578,000, an increase of 14.0% over the first half of 2013 results of $1,384,000. Earnings per diluted common share for the first half of 2014 were $1.39, an increase of 14.9% over the first half of 2013 results of $1.21 per diluted common share.

President Jeffrey M. Harp stated, "Second quarter results were good due to:

1) Loan volume was up 18% -- there is more economic activity so we are seeing some new opportunities plus more of our existing customers are experiencing increased demand.

2) Net Interest Margin increased from 3.63% for the second quarter of 2013 to 4.05% for the second quarter of 2014.

3) Core operating earnings (income before tax and loan loss provision) are up 17.5% over the second quarter of last year.

4) Operating expense control and asset quality remain excellent.

5) Return on Assets of 1.76% and Return on Equity of 14.36% represent new highs for Trinity Bank. 

I think it is also noteworthy to report that Trinity's Return on Equity of 14.36% is calculated based upon a Capital Ratio of 12.38%. There are banks that are earning a higher ROE, but few if any are doing it with 12% Capital."

                   
Actual for Quarter                  
    3 Months     3 Months        
(in 000's)                  
    06/30/2014     06/30/2013     %  
                       
Net Interest Income   $ 1,663     $ 1,483     12.1 %
Non-Interest Income     121       113     7.1 %
Non-Interest Expense     (785 )     (746 )   5.2 %
Pretax Preprovision Income     999       850     17.5 %
                       
Gains on Sale of Securities and Foreclosed Assets     153       113     35.4 %
Loan Loss Provision     (75 )     0     N/M  
Pretax Income     1,077       963     11.8 %
Income Tax     (270 )     (263 )   2.7 %
Net Income   $ 807     $ 700     15.3 %
                       
Diluted Weighted Average Shares     1,136       1,143        
Earnings Per Share     .71       .61     16.4 %
                       
                       
Actual for 6 months                      
    6 Months     6 Months        
(in 000's)                  
    06/30/2014     06/30/2013     %  
                       
Net Interest Income   $ 3,276     $ 2,913     12.5 %
Non-Interest Income     239       222     7.7 %
Non-Interest Expense     (1,513 )     (1,453 )   4.1 %
Pretax Preprovision Income     2,002       1,682     19.0 %
                       
Gains on Sale of Securities and Foreclosed Assets     258       338     (23.7 %)
Gains on Sale of Foreclosed Assets     24       52     N/M  
Loan Loss Provision     (150 )     (172 )   (12.8 %)
Pretax Income     2,134       1,900     12.3 %
Income Tax     (556 )     (516 )   7.8 %
Net Income   $ 1,578     $ 1,384     14.0 %
                       
Diluted Weighted Average Shares     1,136       1,142        
Earnings Per Share     1.39       1.21     14.9 %
                       
       
       
TRINITY BANK N.A.      
(Unaudited)      
(Dollars in thousands, except per share data)      
                             
                             
    Quarter Ended         Six Months Ended      
    June 30   %     June 30   %  
EARNINGS SUMMARY   2014   2013   Change     2014   2013   Change  
                                     
Interest income   $ 1,758   $ 1,583   11.1 %   $ 3,467   $ 3,119   11.2 %
Interest expense     95     100   -5.0 %     191     206   -7.3 %
Net Interest Income     1,663     1,483   12.1 %     3,276     2,913   12.5 %
                                     
Service charges on deposits     39     41   -4.9 %     81     80   1.3 %
Other income     82     72   13.9 %     158     142   11.3 %
Total Non Interest Income     121     113   7.1 %     239     222   7.7 %
                                     
Salaries and benefits expense     377     365   3.3 %     754     738   2.2 %
Occupancy and equipment expense     69     77   -10.4 %     141     158   -10.8 %
Other expense     339     304   11.5 %     618     557   11.0 %
Total Non Interest Expense     785     746   5.2 %     1,513     1,453   4.1 %
                                     
Pretax pre-provision income     999     850   17.5 %     2,002     1,682   19.0 %
                                     
Gain on sale of securities     153     113   35.4 %     258     338   -23.7 %
Gain on sale of foreclosed assets     0     0   N/M       24     52   N/M  
                                     
Provision for Loan Losses     75     0   N/M       150     172   -12.8 %
                                     
Earnings before income taxes     1,077     963   11.8 %     2,134     1,900   12.3 %
Provision for income taxes     270     263   2.7 %     556     516   7.8 %
Net Earnings   $ 807   $ 700   15.3 %   $ 1,578   $ 1,384   14.0 %
                                     
Basic earnings per share     0.72     0.62   16.1 %     1.40     1.22   14.8 %
Basic weighted average shares outstanding     1,125     1,132           1,125     1,131      
                                     
Diluted earnings per share     0.71     0.61   16.4 %     1.39     1.21   14.9 %
Diluted weighted average shares outstanding     1,136     1,143           1,136     1,142      
                                     
                                     
                                     
    Average for Quarter         Average for Six Months      
    June 30   %     June 30   %  
BALANCE SHEET SUMMARY   2014   2013   Change     2014   2013   Change  
                                     
Total loans   $ 107,290   $ 91,227   17.6 %   $ 106,021   $ 89,808   18.1 %
Total short term investments     12,010     15,843   -24.2 %     11,256     20,553   -45.2 %
Total investment securities     59,408     66,379   -10.5 %     59,986     65,677   -8.7 %
                                     
Earning assets     178,708     173,449   3.0 %     177,263     176,038   0.7 %
                                     
Total assets     183,720     179,392   2.4 %     182,113     182,273   -0.1 %
                                     
Noninterest bearing deposits     47,495     38,087   24.7 %     46,219     37,400   23.6 %
Interest bearing deposits     112,580     119,269   -5.6 %     112,642     122,799   -8.3 %
                                     
Total deposits     160,075     157,356   1.7 %     158,861     160,199   -0.8 %
                                     
Fed Funds Purchased and Repurchase Agreements     429     229   87.3 %     436     386   13.0 %
                                     
Shareholders' equity   $ 22,746   $ 21,281   6.9 %   $ 22,451   $ 21,135   6.2 %
 
 
 
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   2014   2014   2013   2013   2013
                               
Total loans   $ 107,290   $ 104,737   $ 100,220   $ 94,567   $ 91,227
Total short term investments     12,010     10,122     12,966     14,693     15,843
Total investment securities     59,408     60,942     63,937     65,064     66,379
                               
Earning assets     178,708     175,801     177,123     174,324     173,449
                               
Total assets     183,720     180,487     181,884     179,452     179,392
                               
Noninterest bearing deposits     47,495     42,918     43,454     42,308     38,087
Interest bearing deposits     112,580     114,715     116,510     116,055     119,269
                               
Total deposits     160,075     157,633     159,964     158,363     157,356
                               
Fed Funds Purchased and Repurchase Agreements     429     442     267     229     229
                               
Shareholders' equity   $ 22,746   $ 22,154   $ 21,301   $ 20,548   $ 21,281
                               
                               
    Quarter Ended
    June 30,   March 31,   Dec 31,   Sept. 30,   June 30,
HISTORICAL EARNINGS SUMMARY   2014   2014   2013   2013   2013
                               
                               
Interest income   $ 1,758   $ 1,709   $ 1,677   $ 1,616   $ 1,583
Interest expense     95     96     100     98     100
Net Interest Income     1,663     1,613     1,577     1,518     1,483
                               
Service charges on deposits     39     42     43     43     41
Other income     82     76     66     67     72
Total Non Interest Income     121     118     109     110     113
                               
Salaries and benefits expense     377     377     478     385     365
Occupancy and equipment expense     69     72     73     75     77
Other expense     339     279     135     177     304
Total Non Interest Expense     785     728     686     637     746
                               
Pretax pre-provision income     999     1,003     1,000     991     850
                               
Gain on sale of securities     153     105     51     21     113
Gain on sale of foreclosed assets     0     24     0     0     0
Gain on sale of assets     0     0     18     0     0
                               
Provision for Loan Losses     75     75     50     20     0
                               
Earnings before income taxes     1,077     1,057     1,019     992     963
Provision for income taxes     270     286     263     271     263
                               
Net Earnings   $ 807   $ 771   $ 756   $ 721   $ 700
                               
Diluted earnings per share   $ 0.71   $ 0.68   $ 0.66   $ 0.63   $ 0.61
   
   
   
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   2014     2014     2013     2013     2013  
                                         
Total loans   $ 108,648     $ 103,762     $ 109,505     $ 93,934     $ 94,432  
Total short term investments     11,507       19,981       2,534       18,404       7,895  
Total investment securities     58,067       59,669       63,495       63,966       67,506  
                                         
Total earning assets     178,222       183,412       175,534       176,304       169,833  
                                         
Allowance for loan losses     (1,371 )     (1,396 )     (1,321 )     (1,271 )     (1,249 )
Premises and equipment     1,281       1,306       1,275       1,232       1,264  
Other Assets     6,446       5,590       6,444       7,175       4,885  
                                         
Total assets     184,578       188,912       181,932       183,440       174,733  
                                         
Noninterest bearing deposits     50,548       46,896       45,813       44,398       37,823  
Interest bearing deposits     110,131       118,861       113,839       117,411       115,922  
                                         
Total deposits     160,679       165,757       159,652       161,809       153,745  
                                         
Fed Funds Purchased and Repurchase Agreements     429       429       429       229       229  
Other Liabilities     403       587       670       590       277  
                                         
Total liabilities     161,511       166,773       160,751       162,628       154,251  
                                         
Shareholders' Equity Actual     22,835       22,054       21,844       21,052       20,656  
Unrealized Gain - AFS     231       85       (233 )     (240 )     (174 )
Total Equity   $ 23,066     $ 22,139     $ 21,611     $ 20,812     $ 20,482  
                                         
                                         
    Quarter Ending  
    June 30,     March 31,     Dec 31,     Sept. 30,     June 30,  
NONPERFORMING ASSETS   2014     2014     2013     2013     2013  
                                         
Nonaccrual loans   $ 0     $ 402     $ 402     $ 402     $ 429  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 300     $ 0     $ 0     $ 0     $ 0  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 300     $ 402     $ 402     $ 402     $ 429  
                                         
Accruing loans past due 30-89 days   $ 0     $ 0     $ 0     $ 0     $ 1,097  
                                         
Total nonperforming assets as a percentage                                        
of loans and foreclosed assets     0.28 %     0.39 %     0.39 %     0.37 %     0.45 %
   
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Quarter Ending  
    June 30,     March 31,     Dec 31,     Sept. 30,     June 30,  
ALLOWANCE FOR LOAN LOSSES   2014     2014     2013     2013     2013  
                                         
Balance at beginning of period   $ 1,396     $ 1,321     $ 1,271     $ 1,249     $ 1,245  
Loans charged off     102       0       0       0       0  
Loan recoveries     2       0       0       2       4  
Net (charge-offs) recoveries     (100 )     0       0       2       4  
Provision for loan losses     75       75       50       20       0  
Balance at end of period   $ 1,371     $ 1,396     $ 1,321     $ 1,271     $ 1,249  
                                         
Allowance for loan losses as a percentage of total loans     1.26 %     1.35 %     1.27 %     1.16 %     1.32 %
Allowance for loan losses as a percentage of nonperforming loans     N/A       347 %     329 %     316 %     310.70 %
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 %     0.05 %     0.02 %     N/A  
                                         
                                         
                                         
    Quarter Ending  
    June 30,     March 31,     Dec 31,     Sept. 30,     June 30,  
SELECTED RATIOS   2014     2014     2013     2013     2013  
                                         
Return on average assets (annualized)     1.76 %     1.71 %     1.66 %     1.61 %     1.56 %
                                         
Return on average equity (annualized)     14.19 %     13.92 %     14.20 %     14.04 %     13.16 %
                                         
Return on average equity (excluding unrealized gain on investments)     14.36 %     13.95 %     14.10 %     13.74 %     13.76 %
                                         
Average shareholders' equity to average assets     12.38 %     12.27 %     11.71 %     11.45 %     11.86 %
                                         
Yield on earning assets (tax equivalent)     4.26 %     4.14 %     4.00 %     3.92 %     3.86 %
                                         
Cost of interest bearing funds     0.34 %     0.33 %     0.34 %     0.34 %     0.34 %
                                         
Net interest margin (tax equivalent)     4.05 %     3.92 %     3.78 %     3.69 %     3.63 %
                                         
Efficiency ratio (tax equivalent)     40.7 %     39.5 %     38.5 %     36.9 %     44.1 %
                                         
End of period book value per common share   $ 20.50     $ 19.68     $ 19.09     $ 18.40     $ 18.09  
                                         
End of period book value (excluding unrealized gain on investments)   $ 20.30     $ 19.60     $ 19.30     $ 18.61     $ 18.25  
                                         
End of period common shares outstanding (in 000's)     1,125       1,125       1,132       1,131       1,132  
               
               
               
  TRINITY BANK N.A.            
  (Unaudited)            
  (Dollars in thousands, except per share data)            
                               
                               
  3 Months Ending  
  June 30, 2014     June 30, 2013  
                               
            Tax               Tax  
  Average         Equivalent     Average         Equivalent  
YIELD ANALYSIS Balance   Interest Yield   Yield     Balance   Interest Yield   Yield  
                                   
Interest Earning Assets:                                  
Short term investment $ 12,010   18 0.60 % 0.60 %   $ 15,843   21 0.53 % 0.53 %
Investment securities   4,562   41 3.59 % 3.59 %     24,115   193 3.20 % 3.20 %
Tax Free securities   54,846   327 2.38 % 3.44 %     42,264   209 1.98 % 2.85 %
Loans   107,290   1,372 5.12 % 5.12 %     91,227   1,160 5.09 % 5.09 %
                                   
Total Interest Earning Assets   178,708   1,758 3.93 % 4.26 %     173,449   1,583 3.65 % 3.86 %
                                   
Noninterest Earning Assets:                                  
Cash and due from banks   3,516                 3,358            
Other assets   2,843                 3,883            
Allowance for loan losses   (1,347 )               (1,247 )          
                                   
Total Noninterest Earning Assets   5,012                 5,994            
                                   
Total Assets $ 183,720               $ 179,443            
                                   
Interest Bearing Liabilities:                                  
Transaction and Money Market accounts   87,464   59 0.27 % 0.27 %     94,633   66 0.28 % 0.28 %
Certificates and other time deposits   25,116   36 0.57 % 0.57 %     24,636   34 0.55 % 0.55 %
Other borrowings   429   0 0.25 % 0.25 %     229   0 0.25 % 0.25 %
                                   
Total Interest Bearing Liabilities   113,009   95 0.34 % 0.34 %     119,498   100 0.34 % 0.34 %
                                   
Noninterest Bearing Liabilities                                  
Demand deposits   47,495                 38,087            
Other liabilities   470                 526            
Shareholders' Equity   22,746                 21,281            
                                   
Total Liabilities and Shareholders Equity $ 183,720               $ 179,392            
                                   
Net Interest Income and Spread       1,663 3.59 % 3.92 %         1,483 3.32 % 3.53 %
                                   
Net Interest Margin         3.72 % 4.05 %           3.42 % 3.63 %
   
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
                         
    June 30           June 30        
    2014     %     2013     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial   $ 58,814     54.13 %   $ 51,813     54.87 %
Real estate:                            
  Commercial     18,412     16.95 %     15,562     16.48 %
  Residential     21,075     19.40 %     17,096     18.11 %
  Construction and development     7,873     7.25 %     7,487     7.93 %
Consumer     2,473     2.28 %     2,466     2.61 %
                             
Total loans (gross)     108,647     100.00 %     94,424     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)   $ 108,647     100.00 %   $ 94,424     100.00 %
                             
                             
    June 30           June 30        
    2014           2013        
REGULATORY CAPITAL DATA                            
Tier 1 Capital   $ 22,835           $ 20,656        
Total Capital (Tier 1 + Tier 2)   $ 24,206           $ 21,905        
Total Risk-Adjusted Assets   $ 115,772           $ 123,388        
Tier 1 Risk-Based Capital Ratio     19.72 %           16.74 %      
Total Risk-Based Capital Ratio     20.91 %           17.75 %      
Tier 1 Leverage Ratio     12.43 %           11.51 %      
                             
OTHER DATA                            
Full Time Equivalent Employees (FTE's)     15             14        
                             
Stock Price Range                            
(For the Three Months Ended):                            
  High   $ 38.00           $ 36.50        
  Low   $ 37.50           $ 32.50        
  Close   $ 38.00           $ 32.50        
                               
                               

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.

Contact Information

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