SOURCE: Trinity Bank

April 28, 2014 11:35 ET

# Trinity Bank Reports: 2014 First Quarter Net Income up 12.7%, Fifth Cash Dividend Declared

FORT WORTH, TX--(Marketwired - Apr 28, 2014) - Trinity Bank N.A. (OTCBB: TYBT) today announced operating results for the three months ending March 31, 2014.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $771,000 or$.68 per diluted common share for the first quarter of 2014, compared to $684,000 or$.60 per diluted common share for the first quarter of 2013, an increase of 13.3%.

President Jeffrey M. Harp stated, "Net Income increased 12.7% over 1Q '13. An 18% increase in loan volume helped generate a 20% increase in Pretax Preprovision Income. We remain cautiously optimistic that the business environment in our market will continue to improve and enable us to maintain our history of improving results each quarter since inception."

"I have reported many times that Trinity Bank's performance compares favorably to peer groups. To support that statement, an investment banking firm recently rated Trinity 7th in profitability out of all banks in the DFW metroplex for 2013. Another investment firm rated Trinity 24th out of all 530 banks in Texas for 2013 in terms of overall performance (profitability, growth and efficiency)."

"As previously announced, Trinity will distribute its fifth cash dividend ($.31 per share -- an increase of 10.7% over the$.28 per share dividend paid in October 2013) to shareholders on April 30, 2014."

 Profitability 3/31/2014 3/31/2013 Return on Assets 1.71 % 1.48 % Retun on Equity 13.95 % 13.70 % Average for Quarter Ending % (in 000's) Loans $104,737$ 88,373 18.5 % Deposits $157,633$ 163,074 (3.3 %)
 Actual for Quarter Ending (in 000's) 3/31/2014 3/31/2013 % Net Interest Income $1,613$ 1,431 12.7 % Non-Interest Income 118 108 9.3 % Non-Interest Expense (728 ) (708 ) 2.8 % Pretax Preprovision Income $1,003$ 831 20.7 % Gain on Sale of Securities and Assets $129$ 278 N/M Loan Loss Provision (75 ) (172 ) N/M Pre Tax Income 1,057 937 12.8 % Income Tax (286 ) (253 ) 13.0 % Net Income $771$ 684 12.7 % Diluted Weighted Average Shares 1,136 1,141 Earnings per Share $0.68$ 0.60 13.3 %
 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Quarter Ended March 31 % EARNINGS SUMMARY 2014 2013 Change Interest income $1,709$ 1,537 11.2 % Interest expense 96 106 -9.4 % Net Interest Income 1,613 1,431 12.7 % Service charges on deposits 42 39 7.7 % Other income 76 69 10.1 % Total Non Interest Income 118 108 9.3 % Salaries and benefits expense 377 373 1.1 % Occupancy and equipment expense 72 81 -11.1 % Other expense 279 254 9.8 % Total Non Interest Expense 728 708 2.8 % Pretax pre-provision income 1,003 831 20.7 % Gain on sale of securities 105 226 -53.5 % Gain on sale of foreclosed assets 24 52 N/M Provision for Loan Losses 75 172 -56.4 % Earnings before income taxes 1,057 937 12.8 % Provision for income taxes 286 253 13.0 % Net Earnings $771$ 684 12.7 % Basic earnings per share 0.69 0.61 13.1 % Basic weighted average shares outstanding 1,125 1,132 Diluted earnings per share 0.68 0.60 13.3 % Diluted weighted average shares outstanding 1,136 1,141
 Average for Quarter March 31 % BALANCE SHEET SUMMARY 2014 2013 Change Total loans $104,737$ 88,373 18.5 % Total short term investments 10,122 25,315 -60.0 % Total investment securities 60,942 64,969 -6.2 % Earning assets 175,801 178,657 -1.6 % Total assets 180,487 185,352 -2.6 % Noninterest bearing deposits 42,918 36,699 16.9 % Interest bearing deposits 114,715 126,375 -9.2 % Total deposits 157,633 163,074 -3.3 % Fed Funds Purchased and Repurchase Agreements 442 545 -18.9 % Shareholders' equity $22,154$ 20,988 5.6 %
 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Average for Quarter Ending BALANCE SHEET SUMMARY March 31, 2014 Dec 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Total loans $104,737$ 100,220 $94,567$ 91,227 $88,373 Total short term investments 10,122 12,966 14,693 15,843 25,315 Total investment securities 60,942 63,937 65,064 66,379 64,969 Earning assets 175,801 177,123 174,324 173,449 178,657 Total assets 180,487 181,884 179,452 179,392 185,352 Noninterest bearing deposits 42,918 43,454 42,308 38,087 36,699 Interest bearing deposits 114,715 116,510 116,055 119,269 126,375 Total deposits 157,633 159,964 158,363 157,356 163,074 Fed Funds Purchased and Repurchase Agreements 442 267 229 229 545 Shareholders' equity$ 22,154 $21,301$ 20,548 $21,281$ 20,988 Quarter Ended HISTORICAL EARNINGS SUMMARY March 31, 2014 Dec 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Interest income $1,709$ 1,677 $1,616$ 1,583 $1,537 Interest expense 96 100 98 100 106 Net Interest Income 1,613 1,577 1,518 1,483 1,431 Service charges on deposits 42 43 43 41 39 Other income 76 66 67 72 69 Total Non Interest Income 118 109 110 113 108 Salaries and benefits expense 377 478 385 365 373 Occupancy and equipment expense 72 73 75 77 81 Other expense 279 135 177 304 254 Total Non Interest Expense 728 686 637 746 708 Pretax pre-provision income 1,003 1,000 991 850 831 Gain on sale of securities 105 51 21 113 226 Gain on sale of foreclosed assets 24 0 0 0 52 Gain on sale of assets 0 18 0 0 0 Provision for Loan Losses 75 50 20 0 172 Earnings before income taxes 1,057 1,019 992 963 937 Provision for income taxes 286 263 271 263 253 Net Earnings$ 771 $756$ 721 $700$ 684 Diluted earnings per share 0.68 0.66 0.63 0.61 0.60
 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Ending Balance HISTORICAL BALANCE SHEET March 31, 2014 Dec 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Total loans $103,762$ 109,505 $93,934$ 94,432 $87,926 Total short term investments 19,981 2,534 18,404 7,895 32,274 Total investment securities 59,669 63,495 63,966 67,506 62,908 Total earning assets 183,412 175,534 176,304 169,833 183,108 Allowance for loan losses (1,396 ) (1,321 ) (1,271 ) (1,249 ) (1,245 ) Premises and equipment 1,306 1,275 1,232 1,264 1,250 Other Assets 5,590 6,444 7,175 4,885 6,002 Total assets 188,912 181,932 183,440 174,733 189,115 Noninterest bearing deposits 46,896 45,813 44,398 37,823 38,673 Interest bearing deposits 118,861 113,839 117,411 115,922 128,345 Total deposits 165,757 159,652 161,809 153,745 167,018 Fed Funds Purchased and Repurchase Agreements 429 429 229 229 228 Other Liabilities 587 670 590 277 965 Total liabilities 166,773 160,751 162,628 154,251 168,211 Shareholders' Equity Actual 22,054 21,844 21,052 20,656 19,996 Unrealized Gain - AFS 85 (233 ) (240 ) (174 ) 908 Total Equity$ 22,139 $21,611$ 20,812 $20,482$ 20,904 Quarter Ending NONPERFORMING ASSETS March 31, 2014 Dec 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Nonaccrual loans $402$ 402 $402$ 429 $0 Restructured loans$ 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 $402$ 402 $402$ 429 $0 Accruing loans past due 30-89 days$ 0 $0$ 0 $1,097$ 0 Total nonperforming assets as a percentage of loans and foreclosed assets 0.39 % 0.37 % 0.43 % 0.45 % 0.00 %
 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Quarter Ending ALLOWANCE FOR LOAN LOSSES March 31, 2014 Dec 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Balance at beginning of period $1,321$ 1,271 $1,249$ 1,245 $1,073 Loans charged off 0 0 0 0 0 Loan recoveries 0 0 2 4 0 Net (charge-offs) recoveries 0 0 2 4 0 Provision for loan losses 75 50 20 0 172 Balance at end of period$ 1,396 $1,321$ 1,271 $1,249$ 1,245 Allowance for loan lossesas a percentage of total loans 1.35 % 1.21 % 1.35 % 1.32 % 1.42 % Allowance for loan lossesas a percentage of nonperforming loans 347 % 329 % 316 % 291 % N/A Net charge-offs (recoveries) as apercentage of average loans N/A N/A N/A N/A N/A Provision for loan lossesas a percentage of average loans 0.07 % 0.05 % 0.02 % N/A 0.19 % Quarter Ending SELECTED RATIOS March 31, 2014 Dec 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Return on average assets (annualized) 1.71 % 1.66 % 1.61 % 1.56 % 1.48 % Return on average equity (annualized) 13.92 % 14.20 % 14.04 % 13.16 % 13.04 % Return on average equity (excluding unrealized gain on investments) 13.95 % 14.10 % 13.74 % 13.76 % 13.70 % Average shareholders' equity to average assets 12.27 % 11.71 % 11.45 % 11.86 % 11.32 % Yield on earning assets (tax equivalent) 4.14 % 4.00 % 3.92 % 3.87 % 3.65 % Cost of interest bearing funds 0.33 % 0.34 % 0.34 % 0.34 % 0.33 % Net interest margin (tax equivalent) 3.92 % 3.78 % 3.69 % 3.63 % 3.41 % Efficiency ratio (tax equivalent) 39.5 % 38.5 % 3690.0 % 44.1 % 42.0 % End of period book value per common share $19.68$ 19.09 $18.40$ 18.09 $18.47 End of period book value (excluding unrealized gain on investments)$ 19.60 $19.30$ 18.61 $18.25$ 17.66 End of period common shares outstanding (in 000's) 1,125 1,132 1,131 1,132 1,132
 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data)
 3 Months Ending March 31, 2014 March 31, 2013 YIELD ANALYSIS Average Balance Interest Yield Tax Equivalent Yield Average Balance Interest Yield Tax Equivalent Yield Interest Earning Assets: Short term investment $10,122 15 0.59 % 0.59 %$ 25,315 28 0.44 % 0.44 % Investment securities 16,427 134 3.26 % 3.26 % 23,059 191 3.31 % 3.31 % Tax Free securities 44,515 249 2.24 % 3.22 % 41,910 211 2.01 % 2.90 % Loans 104,737 1,311 5.01 % 5.01 % 88,373 1,107 5.01 % 5.01 % Total Interest Earning Assets 175,801 1,709 3.89 % 4.14 % 178,657 1,537 3.44 % 3.65 % Noninterest Earning Assets: Cash and due from banks 3,504 3,644 Other assets 2,538 4,222 Allowance for loan losses (1,356 ) (1,171 ) Total Noninterest Earning Assets 4,686 6,695 Total Assets $180,487$ 185,352 Interest Bearing Liabilities: Transaction and Money Market accounts 89,438 62 0.28 % 0.28 % 101,715 72 0.28 % 0.28 % Certificates and other time deposits 25,276 34 0.54 % 0.54 % 24,660 34 0.55 % 0.55 % Other borrowings 442 0 0.13 % 0.13 % 545 0 0.22 % 0.22 % Total Interest Bearing Liabilities 115,156 96 0.33 % 0.33 % 126,920 106 0.33 % 0.33 % Noninterest Bearing Liabilities Demand deposits 42,918 36,699 Other liabilities 259 745 Shareholders' Equity 22,154 20,988 Total Liabilities and Shareholders Equity $180,487$ 185,352 Net Interest Income and Spread 1,613 3.55 % 3.81 % 1,431 3.11 % 3.32 % Net Interest Margin 3.67 % 3.92 % 3.20 % 3.41 %
 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) March 31 2014 % March 31 2013 % LOAN PORTFOLIO Commercial and industrial $57,699 55.61 %$ 47,803 54.37 % Real estate: Commercial 16,899 16.29 % 15,239 17.33 % Residential 20,428 19.69 % 13,686 15.57 % Construction and development 7,113 6.86 % 8,875 10.09 % Consumer 1,622 1.56 % 2,323 2.64 % Total loans (gross) 103,761 100.00 % 87,926 100.00 % Unearned discounts 0 0.00 % 0 0.00 % Total loans (net) $103,761 100.00 %$ 87,926 100.00 % March 31 2014 March 31 2013 REGULATORY CAPITAL DATA Tier 1 Capital $22,054$ 19,996 Total Capital (Tier 1 + Tier 2) $23,450$ 21,241 Total Risk-Adjusted Assets $121,805$ 118,815 Tier 1 Risk-Based Capital Ratio 18.11 % 16.83 % Total Risk-Based Capital Ratio 19.25 % 17.88 % Tier 1 Leverage Ratio 12.22 % 10.80 % OTHER DATA Full Time Equivalent Employees (FTE's) 14 14 Stock Price Range (For the Three Months Ended): High $37.00$ 36.00 Low $35.01$ 33.00 Close $37.00$ 36.00

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