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