SOURCE: Trinity Bank

August 03, 2015 13:54 ET

Trinity Bank 2015 2nd Quarter Net Income Up 14.3%; 2nd Quarter Earnings per Share Up 14.1%; 43rd Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwired - Aug 3, 2015) -  Trinity Bank N.A. (OTC: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2015.

Results of Operation

For the second quarter 2015, Trinity Bank, N.A. reported Net Income after Taxes of $922,000, an increase of 14.3% over second quarter 2014 earnings of $807,000. Earnings per diluted common share for the second quarter 2015 amounted to $0.81, an increase of 14.1% over second quarter 2014 results of $0.71 per diluted common share.

For the first six months of 2015, Net Income after Taxes was $1,807,000, an increase of 14.5% over the first half of 2014 results of $1,578,000. Earnings per diluted common share for the first half of 2015 were $1.60, an increase of 15.1% over the first half of 2014 results of $1.39 per diluted common share.

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

1) Average loan volume for the second quarter increased 8.7%

2) Net Interest Margin increased slightly from 4.05% for 2Q2014 to 4.09% for 2Q2015

3) Income before tax and loan loss provision increased 18.2%

4) Efficiency ratio remains excellent at 36.8% (industry average is over 60%)

5) Return on Assets of 1.80% and Return on Equity of 14.7% represent new highs for Trinity Bank. 

Trinity Bank continues to perform well. The North Texas economy is growing and diversified. We intend to grow as well by adding new staff in 2015 and expanding into a new banking facility in 2016."

                   
Actual for Quarter                  
    3 Months     3 Months        
(in 000's)                  
    06/30/2015     06/30/2014     %  
                       
Net Interest Income   $ 1,857     $ 1,663     11.7 %
Non-Interest Income     129       121     6.6 %
Non-Interest Expense     (805 )     (785 )   2.5 %
Pretax Preprovision Income     1,181       999     18.2 %
                       
Gains on Sale of Securities and Foreclosed Assets     12       153     N/M  
Loan Loss Provision     -       (75 )   N/M  
Pretax Income     1,193       1,077     10.8 %
Income Tax     (271 )     (270 )   .4 %
Net Income   $ 922     $ 807     14.3 %
Diluted Weighted Average Shares     1,132       1,136        
Earnings Per Share     .81       .71     14.1 %
Actual for 6 months                      
    6 Months     6 Months        
(in 000's)                  
    06/30/2015     06/30/2014     %  
                       
Net Interest Income   $ 3,620     $ 3,276     10.5 %
Non-Interest Income     259       239     8.4 %
Non-Interest Expense     (1,619 )     (1,513 )   7.0 %
Pretax Preprovision Income     2,260       2,002     12.9 %
                       
Gains on Sale of Securities and Foreclosed Assets     12       258     N/M  
Gains on Sale of Foreclosed Assets     70       24     N/M  
Loan Loss Provision     0       (150 )   N/M  
Pretax Income     2,342       2,134     9.7 %
Income Tax     (535 )     (556 )   (3.8 %)
Net Income   $ 1,807     $ 1,578     14.5 %
Diluted Weighted Average Shares     1,132       1,136        
Earnings Per Share     1.60       1.39     15.1 %
                       

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 Ending      
    June 30   %     June 30   %  
EARNINGS SUMMARY   2015   2014   Change     2015   2014   Change  
                                     
Interest income   $ 1,953   $ 1,758   11.1 %   $ 3,814   $ 3,467   10.0 %
Interest expense     96     95   1.1 %   $ 194     191   1.6 %
Net Interest Income     1,857     1,663   11.7 %     3,620     3,276   10.5 %
                                     
Service charges on deposits     40     39   2.6 %   $ 82     81   1.2 %
Other income     89     82   8.5 %   $ 177     158   12.0 %
Total Non Interest Income     129     121   6.6 %     259     239   8.4 %
                                     
Salaries and benefits expense     454     377   20.4 %   $ 883     754   17.1 %
Occupancy and equipment expense     65     69   -5.8 %   $ 126     141   -10.6 %
Other expense     286     339   -15.6 %   $ 610     618   -1.3 %
Total Non Interest Expense     805     785   2.5 %     1,619     1,513   7.0 %
                                     
Pretax pre-provision income     1,181     999   18.2 %     2,260     2,002   12.9 %
                                     
Gain on sale of securities     12     153   N/M     $ 12     258   N/M  
Gain on sale of foreclosed assets     0     0   N/M     $ 70     24   N/M  
                                     
Provision for Loan Losses     0     75   N/M       0     150   N/M  
                                     
Earnings before income taxes     1,193     1,077   10.8 %     2,342     2,134   9.7 %
Provision for income taxes     271     270   0.4 %   $ 535     556   -3.8 %
Net Earnings   $ 922   $ 807   14.3 %   $ 1,807   $ 1,578   14.5 %
                                     
Basic earnings per share     0.82     0.72   13.9 %     1.61     1.40   15.0 %
Basic weighted average shares     1,121     1,125           1,121     1,125      
outstanding                                    
                                     
Diluted earnings per share     0.81     0.71   14.1 %     1.60     1.39   15.1 %
Diluted weighted average shares outstanding     1,132     1,136           1,132     1,136      
                                     
                                     
                                     
    Average for Quarter         Average for Six Months      
    June 30   %     June 30   %  
BALANCE SHEET SUMMARY   2015   2014   Change     2015   2014   Change  
                                     
Total loans   $ 116,614   $ 107,290   8.7 %   $ 113,866   $ 106,021   7.4 %
Total short term investments     11,618     12,010   -3.3 %     16,226     11,256   44.2 %
Total investment securities     72,378     59,408   21.8 %     71,584     59,986   19.3 %
                                     
Earning assets     200,610     178,708   12.3 %     201,676     177,263   13.8 %
                                     
Total assets     205,394     183,720   11.8 %     206,442     182,113   13.4 %
                                     
Noninterest bearing deposits     58,601     47,495   23.4 %     58,451     46,219   26.5 %
Interest bearing deposits     119,895     112,580   6.5 %     121,371     112,642   7.7 %
                                     
Total deposits     178,496     160,075   11.5 %     179,822     158,861   13.2 %
                                     
Fed Funds Purchased and Repurchase Agreements     429     429   0.0 %     429     436   -1.6 %
                                     
Shareholders' equity   $ 25,638   $ 22,746   12.7 %   $ 25,422   $ 22,451   13.2 %
 
 
 
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   2015   2015   2014   2014   2014
                               
Total loans   $ 116,614   $ 111,088   $ 109,401   $ 108,469   $ 107,290
Total short term investments     11,618     20,885     35,421     24,627     12,010
Total investment securities     72,378     70,779     65,080     59,950     59,408
                               
Earning assets     200,610     202,752     209,902     193,046     178,708
                               
Total assets     205,394     207,502     214,976     198,164     183,720
                               
Noninterest bearing deposits     57,617     58,296     60,788     56,904     47,495
Interest bearing deposits     120,879     122,866     128,918     116,710     112,580
                               
Total deposits     178,496     181,162     189,706     173,614     160,075
                               
Fed Funds Purchased and Repurchase Agreements     429     429     430     429     429
                               
Shareholders' equity   $ 25,638   $ 25,203   $ 24,077   $ 23,578   $ 22,746
                               
                               
    Quarter Ended
HISTORICAL EARNINGS SUMMARY   June 30,
2015
  March 31,
2015
  Dec 31,
2014
  Sept. 30,
2014
  June 30,
2014
                               
                               
Interest income   $ 1,953   $ 1,862   $ 1,853   $ 1,806   $ 1,758
Interest expense     96     98     105     98     95
Net Interest Income     1,857     1,764     1,748     1,708     1,663
                               
Service charges on deposits     40     42     41     42     39
Other income     89     88     86     85     82
Total Non Interest Income     129     130     127     127     121
                               
Salaries and benefits expense     454     429     613     381     377
Occupancy and equipment expense     65     61     64     68     69
Other expense     286     323     101     283     339
Total Non Interest Expense     805     813     778     732     785
                               
Pretax pre-provision income     1,181     1,081     1,097     1,103     999
                               
Gain on sale of securities     12     0     0     0     153
Gain on sale of foreclosed assets     0     70     0     23     0
                               
Provision for Loan Losses     0     0     28     28     75
                               
Earnings before income taxes     1,193     1,151     1,069     1,098     1,077
Provision for income taxes     271     265     212     266     270
                               
Net Earnings   $ 922   $ 886   $ 857   $ 832   $ 807
                               
Diluted earnings per share   $ 0.81   $ 0.78   $ 0.76   $ 0.73   $ 0.71
   
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
    Ending Balance  
HISTORICAL BALANCE SHEET   June 30,
2015
    March 31,
2015
    Dec 31,
2014
    Sept. 30,
2014
    June 30,
2014
 
                                         
Total loans   $ 120,706     $ 112,689     $ 115,156     $ 110,778     $ 108,648  
Total short term investments     8,158       20,562       26,587       31,928       11,507  
Total investment securities     70,523       71,606       68,132       61,731       58,067  
                                         
Total earning assets     199,387       204,857       209,875       204,437       178,222  
                                         
Allowance for loan losses     (1,518 )     (1,477 )     (1,475 )     (1,447 )     (1,371 )
Premises and equipment     1,286       1,223       1,240       1,265       1,281  
Other Assets     4,700       4,941       5,834       4,740       6,446  
                                         
Total assets     203,855       209,544       215,474       208,995       184,578  
                                         
Noninterest bearing deposits     59,449       61,777       56,554       59,336       50,548  
Interest bearing deposits     117,515       121,244       133,289       124,676       110,131  
                                         
Total deposits     176,964       183,021       189,843       184,012       160,679  
                                         
Fed Funds Purchased and Repurchase Agreements     429       429       430       430       429  
Other Liabilities     604       1,051       663       970       403  
                                         
Total liabilities     177,997       184,501       190,936       185,412       161,511  
                                         
Shareholders' Equity Actual     25,408       24,486       24,026       23,162       22,835  
Unrealized Gain - AFS     450       557       512       421       231  
  Total Equity   $ 25,858     $ 25,043     $ 24,538     $ 23,583     $ 23,066  
                                         
                                         
    Quarter Ending  
NONPERFORMING ASSETS   June 30,
2015
    March 31,
2015
    Dec 31,
2014
    Sept. 30,
2014
    June 30,
2014
 
                                         
Nonaccrual loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 0     $ 0     $ 300     $ 300     $ 300  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 0     $ 0     $ 300     $ 300     $ 300  
                                         
Accruing loans past due 30-89 days   $ 0     $ 0     $ 0     $ 0     $ 0  
                                         
Total nonperforming assets as a percentage of loans and foreclosed assets     0.00 %     0.00 %     0.26 %     0.27 %     0.28 %
   
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
    Quarter Ending  
ALLOWANCE FOR LOAN LOSSES   June 30,
2015
    March 31,
2015
    Dec 31,
2014
    Sept. 30,
2014
    June 30,
2014
 
                                         
Balance at beginning of period   $ 1,477     $ 1,475     $ 1,447     $ 1,371     $ 1,396  
Loans charged off     0       0       0       0       102  
Loan recoveries     41       2       1       48       2  
  Net (charge-offs) recoveries     41       2       1       48       (100 )
Provision for loan losses     0       0       27       28       75  
Balance at end of period   $ 1,518     $ 1,477     $ 1,475     $ 1,447     $ 1,371  
                                         
Allowance for loan losses as a percentage of total loans     1.26 %     1.31 %     1.28 %     1.31 %     1.26 %
Allowance for loan losses as a percentage of nonperforming assets     N/A       N/A       492 %     482 %     457 %
Net charge-offs (recoveries) as a percentage of average loans     (0.04 %)     N/A       N/A       (0.04 %)     0.09 %
Provision for loan losses as a percentage of average loans     N/A       N/A       0.02 %     0.03 %     0.07 %
                                         
                                         
                                         
    Quarter Ending  
SELECTED RATIOS   June 30,
2015
    March 31,
2015
    Dec 31,
2014
    Sept. 30,
2014
    June 30,
2014
 
 
                                         
Return on average assets (annualized)     1.80 %     1.71 %     1.59 %     1.68 %     1.76 %
                                         
Return on average equity (annualized)     14.38 %     14.06 %     14.22 %     14.12 %     14.19 %
                                         
Return on average equity (excluding unrealized gain on investments)     14.77 %     14.47 %     14.51 %     14.34 %     14.36 %
                                         
Average shareholders' equity to average assets     12.48 %     12.15 %     11.20 %     11.90 %     12.38 %
                                         
Yield on earning assets (tax equivalent)     4.28 %     4.04 %     4.07 %     4.07 %     4.26 %
                                         
Effective Cost of Funds     0.19 %     0.20 %     0.21 %     0.20 %     0.21 %
                                         
Net interest margin (tax equivalent)     4.09 %     3.84 %     3.86 %     3.87 %     4.05 %
                                         
Efficiency ratio (tax equivalent)     36.8 %     39.1 %     37.7 %     36.7 %     40.7 %
                                         
End of period book value per common share   $ 23.07     $ 22.34     $ 21.89     $ 21.02     $ 20.50  
                                         
End of period book value (excluding unrealized gain on investments)   $ 22.67     $ 21.84     $ 21.43     $ 20.64     $ 20.30  
                                         
End of period common shares outstanding (in 000's)     1,121       1,121       1,121       1,122       1,125  

 

                 
                 
                 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                                 
                                 
    Quarter Ending
    June 30, 2015   June 30, 2014
                                 
                Tax               Tax
    Average           Equivalent   Average           Equivalent
YIELD ANALYSIS   Balance   Interest   Yield   Yield   Balance   Interest   Yield   Yield
                                     
Interest Earning Assets:                                    
Short term investment   $ 11,618   17   0.59%   0.59%   $ 12,010   18   0.60%   0.60%
Investment securities     370   6   6.00%   6.00%     4,562   41   3.59%   3.59%
Tax Free securities     72,008   443   2.46%   3.55%     54,846   327   2.38%   3.44%
Loans     116,614   1,487   5.10%   5.10%     107,290   1,372   5.12%   5.12%
                                     
Total Interest Earning Assets     200,610   1,953   3.89%   4.28%     178,708   1,758   3.93%   4.26%
                                     
Noninterest Earning Assets:                                    
Cash and due from banks     3,445                 3,516            
Other assets     2,819                 2,843            
Allowance for loan losses     (1,480)                 (1,347)            
                                     
Total Noninterest Earning Assets     4,784                 5,012            
                                     
Total Assets   $ 205,394               $ 183,720            
                                     
Interest Bearing Liabilities:                                    
Transaction and Money Market accounts     98,955   66   0.27%   0.27%     87,464   59   0.27%   0.27%
Certificates and other time deposits     21,924   30   0.55%   0.55%     25,116   36   0.57%   0.57%
Other borrowings     429   0   0.25%   0.25%     429   0   0.25%   0.25%
                                     
Total Interest Bearing Liabilities     121,308   96   0.32%   0.32%     113,009   95   0.34%   0.34%
                                     
Noninterest Bearing Liabilities                                    
Demand deposits     57,617                 47,495            
Other liabilities     831                 470            
Shareholders' Equity     25,638                 22,746            
                                     
Total Liabilities and Shareholders Equity   $ 205,394               $ 183,720            
                                     
Net Interest Income and Spread         1,857   3.58%   3.97%         1,663   3.59%   3.92%
                                     
Net Interest Margin             3.70%   4.09%             3.72%   4.05%
                                     
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
                         
    June 30           June 30        
    2015     %     2014     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial   $ 64,360     53.32 %   $ 58,814     54.13 %
Real estate:                            
  Commercial     22,427     18.58 %     18,412     16.95 %
  Residential     19,936     16.52 %     21,075     19.40 %
  Construction and development     12,737     10.55 %     7,873     7.25 %
Consumer     1,246     1.03 %     2,473     2.28 %
                             
Total loans (gross)     120,706     100.00 %     108,647     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)   $ 120,706     100.00 %   $ 108,647     100.00 %
                             
                             
    June 30           June 30        
    2015           2014        
REGULATORY CAPITAL DATA                            
Tier 1 Capital   $ 25,413           $ 22,835        
Total Capital (Tier 1 + Tier 2)   $ 26,931           $ 24,206        
Total Risk-Adjusted Assets   $ 131,732           $ 115,772        
Tier 1 Risk-Based Capital Ratio     19.29 %           19.72 %      
Total Risk-Based Capital Ratio     20.44 %           20.91 %      
Tier 1 Leverage Ratio     12.37 %           12.43 %      
                             
OTHER DATA                            
Full Time Equivalent                            
  Employees (FTE's)     16             15        
                             
Stock Price Range                            
  (For the Three Months Ended):                            
  High   $ 70.00           $ 38.00        
  Low   $ 47.00           $ 37.50        
  Close   $ 61.00           $ 38.00        
                               

Contact Information

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