SOURCE: Trinity Bank

April 20, 2016 17:57 ET

Trinity Bank Reports: 2016 First Quarter Net Income Up 7.4%; Dividend Increases 4.8%

FORT WORTH, TX--(Marketwired - Apr 20, 2016) - Trinity Bank N.A. (OTC: TYBT) today announced operating results for the three months ending March 31, 2016.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $952,000 or $.84 per diluted common share for the first quarter of 2016, compared to $886,000 or $.78 per diluted common share for the first quarter of 2015, an increase of 7.7%.

President Jeffrey M. Harp stated, "The 7.7% increase in Earnings Per Share is below our historical performance -- 10 to 15% increases. In 2015, we reached a plateau. We cannot keep increasing profits without adding new staff and expanding our bank facility. We have added staff in 2016 with more to come and we are about to begin an expansion and renovation of our facility. These actions may penalize results for this year and 2017, but they are necessary to produce long-term shareholder value.

"We continue to produce at a high level (Return on Assets of 1.73% and Return on Equity of 14.01%) in relation to all other banks. In spite of the necessary investments, we anticipate that we will maintain our streak since inception in 2003 of increasing Net Income each year over the previous year.

"As previously announced, Trinity Bank will distribute its ninth cash dividend on April 29, $.44 per share, an increase of 4.8% over the $.42 per share paid in October 2015."

                 
Profitability   3/31/2016     3/31/2015      
                     
Return on Assets     1.73 %     1.71 %    
Return on Equity     14.01 %     14.47 %    
                     
                     
Average for Quarter Ending                   %
(in 000's)                    
                     
Loans   $ 122,069     $ 111,088     9.9
Deposits   $ 190,020     $ 181,162     4.9
                     
                     
               
Actual for Quarter Ending                  
(in 000's)   3/31/2016     3/31/2015     %  
                       
Net Interest Income   $ 1,917     $ 1,764     8.7  
Non-Interest Income     143       130     10.0  
Non-Interest Expense     (885 )     (813 )   8.9  
Pretax Preprovision Income   $ 1,175     $ 1,081     8.7  
                       
Gain on Sale of Securities and Assets   $ 49     $ 70     (30.0 )
Loan Loss Provision     0       0     N/M  
Pre Tax Income     1,224       1,151     6.3  
Income Tax     (272 )     (265 )   2.6  
                       
Net Income   $ 952     $ 886     7.4  
                       
Diluted Weighted Average Shares     1,131       1,132        
                       
Earnings per Share   $ 0.84     $ 0.78     7.7  
                       

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   2016   2015   Change  
                   
Interest income   $ 2,043   $ 1,862   9.7 %
Interest expense     126     98   28.6 %
Net Interest Income     1,917     1,764   8.7 %
                   
Service charges on deposits     39     42   -7.1 %
Other income     104     88   18.2 %
Total Non Interest Income     143     130   10.0 %
                   
Salaries and benefits expense     509     429   18.6 %
Occupancy and equipment expense     78     61   27.9 %
Other expense     298     323   -7.7 %
Total Non Interest Expense     885     813   8.9 %
                   
Pretax pre-provision income     1,175     1,081   8.7 %
                   
Gain on sale of securities     27     0   N/M  
Gain on sale of foreclosed assets     0     70   N/M  
Gain on sale of assets     22     0   N/M  
                   
Provision for Loan Losses     0     0   N/M  
                   
Earnings before income taxes     1,224     1,151   6.3 %
Provision for income taxes     272     265   2.6 %
Net Earnings   $ 952   $ 886   7.4 %
                   
Basic earnings per share     0.85     0.79   7.6 %
Basic weighted average shares     1,120     1,121      
outstanding                  
                   
Diluted earnings per share     0.84     0.78   7.7 %
Diluted weighted average shares outstanding     1,131     1,132      
                   
                   
    Average for Quarter      
    March 31   %  
BALANCE SHEET SUMMARY   2016   2015   Change  
                   
Total loans   $ 122,069   $ 111,088   9.9 %
Total short term investments     16,414     20,885   -21.4 %
Total investment securities     76,418     70,779   8.0 %
                   
Earning assets     214,901     202,752   6.0 %
                   
Total assets     220,262     207,502   6.1 %
                   
Noninterest bearing deposits     63,433     58,296   8.8 %
Interest bearing deposits     126,587     122,866   3.0 %
                   
Total deposits     190,020     181,162   4.9 %
                   
Fed Funds Purchased and Repurchase Agreements     355     429   -17.2 %
                   
Shareholders' equity   $ 28,758   $ 25,203   14.1 %
                   
                   
 
 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                     
                     
    Average for Quarter Ending
    March 31,   Dec 31,   Sept. 30,   June 30,   March 31,
BALANCE SHEET SUMMARY   2016   2015   2015   2015   2015
                               
Total loans   $ 122,069   $ 124,316   $ 119,107   $ 116,614   $ 111,088
Total short term investments     16,414     16,894     13,055     11,618     20,885
Total investment securities     76,418     71,663     70,557     72,378     70,779
                               
Earning assets     214,901     212,873     202,719     200,610     202,752
                               
Total assets     220,262     217,961     207,560     205,394     207,502
                               
Noninterest bearing deposits     63,433     67,719     60,995     57,617     58,296
Interest bearing deposits     126,587     120,853     118,640     120,879     122,866
                               
Total deposits     190,020     188,572     179,635     178,496     181,162
                               
Fed Funds Purchased and Repurchase Agreements     355     361     429     429     429
                               
Shareholders' equity   $ 28,758   $ 27,733   $ 26,653   $ 25,638   $ 25,203
                               
                               
    Quarter Ended
    March 31,   Dec 31,   Sept. 30,   June 30,   March 31,
HISTORICAL EARNINGS SUMMARY   2016   2015   2015   2015   2015
                               
                               
Interest income   $ 2,043   $ 2,070   $ 2,007   $ 1,953   $ 1,862
Interest expense     126     107     97     96     98
Net Interest Income     1,917     1,963     1,910     1,857     1,764
                               
Service charges on deposits     39     50     48     46     42
Other income     104     87     82     83     88
Total Non Interest Income     143     137     130     129     130
                               
Salaries and benefits expense     509     627     514     454     429
Occupancy and equipment expense     78     68     69     65     61
Other expense     298     149     256     286     323
Total Non Interest Expense     885     844     839     805     813
                               
Pretax pre-provision income     1,175     1,256     1,201     1,181     1,081
                               
Gain on sale of securities     27     18     31     12     0
Gain on sale of foreclosed assets     0     0     0     0     70
Gain on sale of other assets     22     21     0     0     0
                               
Provision for Loan Losses     0     76     0     0     0
                               
Earnings before income taxes     1,224     1,219     1,232     1,193     1,151
Provision for income taxes     272     242     283     271     265
                               
Net Earnings   $ 952   $ 977   $ 949   $ 922   $ 886
                               
Diluted earnings per share   $ 0.84   $ 0.86   $ 0.84   $ 0.81   $ 0.78
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Ending Balance  
HISTORICAL BALANCE SHEET   March 31,
2016
    Dec 31,
2015
    Sept. 30,
2015
    June 30,
2015
    March 31,
2015
 
                                         
Total loans   $ 120,214     $ 127,871     $ 118,146     $ 120,706     $ 112,689  
Total short term investments     21,082       20,095       18,533       8,158       20,562  
Total investment securities     78,737       72,616       70,542       70,523       71,606  
                                         
Total earning assets     220,033       220,582       207,221       199,387       204,857  
                                         
Allowance for loan losses     (1,624 )     (1,613 )     (1,528 )     (1,518 )     (1,477 )
Premises and equipment     1,444       1,397       1,304       1,286       1,223  
Other Assets     5,189       8,008       5,381       4,700       4,941  
                                         
Total assets     225,042       228,374       212,378       203,855       209,544  
                                         
Noninterest bearing deposits     63,151       73,078       60,749       59,449       61,777  
Interest bearing deposits     130,828       125,772       122,491       117,515       121,244  
                                         
Total deposits     193,979       198,850       183,240       176,964       183,021  
                                         
Fed Funds Purchased and Repurchase Agreements     355       355       429       429       429  
Other Liabilities     1,842       1,095       1,582       604       1,051  
                                         
Total liabilities     196,176       200,300       185,251       177,997       184,501  
                                         
Shareholders' Equity Actual     27,180       26,755       25,818       25,408       24,486  
Unrealized Gain - AFS     1,686       1,319       1,309       450       557  
Total Equity   $ 28,866     $ 28,074     $ 27,127     $ 25,858     $ 25,043  
                                         
                                         
    Quarter Ending  

NONPERFORMING ASSETS
  March 31,
2015
    Dec 31,
2015
    Sept. 30,
2015
    June 30,
2015
    March 31,
2015
 
                                         
Nonaccrual loans   $ 1,383     $ 0     $ 0     $ 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   $ 1,383     $ 0     $ 0     $ 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     1.15 %     0.00 %     0.00 %     0.00 %     0.00 %
                                         
                                         
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Quarter Ending  
ALLOWANCE FOR   March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
LOAN LOSSES   2015     2015     2015     2015     2015  
                                         
Balance at beginning of period   $ 1,613     $ 1,528     $ 1,518     $ 1,477     $ 1,475  
Loans charged off     0       0       0       0       0  
Loan recoveries     11       9       10       41       2  
Net (charge-offs) recoveries     11       9       10       41       2  
Provision for loan losses     0       76       0       0       0  
Balance at end of period   $ 1,624     $ 1,613     $ 1,528     $ 1,518     $ 1,477  
                                         
Allowance for loan losses                                        
as a percentage of total loans     1.35 %     1.26 %     1.29 %     1.26 %     1.31 %
Allowance for loan losses                                        
as a percentage of nonperforming assets     117.43 %     N/A       N/A       N/A       N/A  
Net charge-offs (recoveries) as a                                        
percentage of average loans     -0.01 %     -0.01 %     -0.01 %     -0.04 %     N/A  
Provision for loan losses                                        
as a percentage of average loans     N/A       N/A       N/A       N/A       N/A  
                                         
                                         
                                         
    Quarter Ending  
    March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
SELECTED RATIOS   2016     2015     2015     2015     2015  
                                         
Return on average assets (annualized)     1.73 %     1.79 %     1.83 %     1.80 %     1.71 %
                                         
Return on average equity (annualized)     13.19 %     14.09 %     14.24 %     14.38 %     14.06 %
                                         
Return on average equity (excluding unrealized gain on investments)     14.01 %     14.84 %     14.68 %     14.77 %     14.47 %
                                         
Average shareholders' equity to average assets     13.06 %     12.72 %     12.84 %     12.48 %     12.15 %
                                         
Yield on earning assets (tax equivalent)     4.32 %     4.23 %     4.34 %     4.28 %     4.04 %
                                         
Effective Cost of Funds     0.24 %     0.20 %     0.19 %     0.19 %     0.20 %
                                         
Net interest margin (tax equivalent)     4.08 %     4.03 %     4.15 %     4.09 %     3.84 %
                                         
Efficiency ratio (tax equivalent)     38.4 %     36.2 %     37.0 %     36.8 %     39.1 %
                                         
End of period book value per common share   $ 25.77     $ 25.07     $ 24.18     $ 23.07     $ 22.34  
                                         
End of period book value (excluding unrealized gain on investments)   $ 24.27     $ 23.89     $ 23.01     $ 22.67     $ 21.84  
                                         
End of period common shares outstanding (in 000's)     1,120       1,120       1,122       1,121       1,121  
                                         
                                         
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
   
                                       
    3 Months Ending  
    March 31, 2016   March 31, 2015  
                                       
                  Tax                 Tax  
    Average             Equivalent   Average             Equivalent  
YIELD ANALYSIS   Balance     Interest   Yield   Yield   Balance     Interest   Yield   Yield  
                                           
Interest Earning Assets:                                          
Short term investment   $ 16,414     28   0.70 % 0.70 % $ 20,885     34   0.65 % 0.65 %
FRB Stock     370     7   7.57 % 7.57 %   369     6   5.92 % 5.92 %
Taxable securities     308     0   0.00 % 0.00 %   555     0   0.00 % 0.00 %
Tax Free securities     75,740     475   2.59 % 3.92 %   69,855     416   2.38 % 3.43 %
Loans     122,069     1,533   5.05 % 5.05 %   111,088     1,406   5.06 % 5.06 %
                                           
Total Interest Earning Assets     214,901     2,043   3.80 % 4.32 %   202,752     1,862   3.93 % 4.04 %
                                           
Noninterest Earning Assets:                                          
Cash and due from banks     4,201                   3,501                
Other assets     2,778                   2,725                
Allowance for loan losses     (1,618 )                 (1,476 )              
                                           
Total Noninterest Earning Assets     5,361                   4,750                
                                           
Total Assets   $ 220,262                 $ 207,502                
                                           
Interest Bearing Liabilities:                                          
Transaction and Money Market accounts     102,850     80   0.31 % 0.31 %   100,720     70   0.28 % 0.28 %
Certificates and other time deposits     23,737     46   0.79 % 0.79 %   22,147     28   0.51 % 0.51 %
Other borrowings     355     0   0.30 % 0.30 %   429     0   0.25 % 0.25 %
                                           
Total Interest Bearing Liabilities     126,942     126   0.40 % 0.40 %   123,296     98   0.32 % 0.32 %
                                           
Noninterest Bearing Liabilities                                          
Demand deposits     63,433                   58,296                
Other liabilities     1,129                   707                
Shareholders' Equity     28,758                   25,203                
                                           
Total Liabilities and Shareholders Equity   $ 220,262                 $ 207,502                
                                           
Net Interest Income and Spread           1,917   3.41 % 3.92 %         1,764   3.61 % 3.72 %
                                           
Net Interest Margin               3.60 % 4.08 %             3.48 % 3.84 %
                                           
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
                         
    March 31           March 31        
    2016     %     2015     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial   $ 65,545     54.52 %   $ 59,432     52.74 %
Real estate:                            
  Commercial     22,584     18.79 %     22,708     20.15 %
  Residential     19,607     16.31 %     18,857     16.73 %
  Construction and development     10,867     9.04 %     10,464     9.29 %
Consumer     1,611     1.34 %     1,228     1.09 %
                             
Total loans (gross)     120,214     100.00 %     112,689     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)   $ 120,214     100.00 %   $ 112,689     100.00 %
                             
                             
    March 31           March 31        
    2016           2015        
REGULATORY CAPITAL DATA                            
Tier 1 Capital   $ 27,180           $ 23,929        
Total Capital (Tier 1 + Tier 2)   $ 28,804           $ 25,406        
Total Risk-Adjusted Assets   $ 136,828           $ 126,155        
Tier 1 Risk-Based Capital Ratio     19.86 %           18.97 %      
Total Risk-Based Capital Ratio     21.05 %           20.14 %      
Tier 1 Leverage Ratio     12.34 %           11.53 %      
                             
OTHER DATA                            
Full Time Equivalent                            
Employees (FTE's)     16             15        
                             
Stock Price Range                            
  (For the Three Months Ended):                            
  High   $ 49.00           $ 47.00        
  Low   $ 46.75           $ 42.40        
  Close   $ 47.00           $ 47.00        
                             

Contact Information

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