SOURCE: Trinity Bank

April 26, 2017 16:00 ET

Trinity Bank Reports: 2017 First Quarter Net Income Down 62.5%; Dividend Increase 6.5%

FORT WORTH, TX--(Marketwired - Apr 26, 2017) - Trinity Bank N.A. (OTC: TYBT) today announced operating results for the three months ending March 31, 2017.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $357,000 or $.32 per diluted common share for the first quarter of 2017, compared to $952,000 or $.84 per diluted common share for the first quarter of 2016, a decrease of 61.9%.

President Jeffrey M. Harp stated, "Obviously, the first quarter of 2017 reflects less than satisfactory earnings. As mentioned in previous communications, we have identified a non-performing credit, and for that relationship we made a substantial provision to the Loan Loss Reserve in the first quarter. In spite of this provision ($1,000,000), we were still profitable and we are actively reducing our loss exposure."

"We occupied our newly expanded and renovated facility in January. The staff and our customers are very pleased. You are welcome to come by for a tour."

"Trinity Bank is still enjoying moderate growth in both loans and deposits. Operating efficiency remains excellent. We have had non-performing loans before, and our net loan losses since inception (14 years ago) have been less than $300,000 in total. We look forward to resuming our historical outstanding profitability in subsequent quarters."

"Trinity Bank will distribute its 11th semi-annual dividend on April 28, 2017. The April dividend will be $.49 per share, an increase of 6.5% over the October 2016 dividend of $.46 per share." 

                 
Profitability 3/31/2017     3/31/2016        
                     
Return on Assets   0.61%       1.73%        
Return on Equity   4.85%       14.01%        
                     
                     
Average for Quarter Ending                 %  
(in 000's)                    
                     
Loans $ 130,977     $ 122,069     7.3  
Deposits $ 203,600     $ 190,020     7.1  
                     
                     
Actual for Quarter Ending                
(in 000's)   3/31/2017       3/31/2016     %  
                     
Net Interest Income $ 2,006     $ 1,917     4.6  
Non-Interest Income   130       143     (9.1 )
Non-Interest Expense   (881 )     (885 )   (0.5 )
Pretax Preprovision Income $ 1,255     $ 1,175     6.8  
                     
Gain on Sale of Securities and Assets $ (1 )   $ 49     N/M  
Loan Loss Provision   1,000       0     N/M  
Pre Tax Income   254       1,224     (79.2 )
Income Tax   103       (272 )   N/M  
                     
Net Income $ 357     $ 952     (62.5 )
                     
Diluted Weighted Average Shares   1,121       1,131        
                     
Earnings per Share $ 0.32     $ 0.84     (61.9 )

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 2017     2016   Change  
               
Interest income $2,145     $2,043   5.0 %
Interest expense 139     126   10.3 %
Net Interest Income 2,006     1,917   4.6 %
               
Service charges on deposits 42     39   7.7 %
Other income 88     104   -15.4 %
Total Non Interest Income 130     143   -9.1 %
               
Salaries and benefits expense 508     509   -0.2 %
Occupancy and equipment expense 104     78   33.3 %
Other expense 269     298   -9.7 %
Total Non Interest Expense 881     885   -0.5 %
               
Pretax pre-provision income 1,255     1,175   6.8 %
               
Gain on sale of securities (1 )   27   N/M  
Gain on sale of foreclosed assets 0     0   N/M  
Gain on sale of assets 0     22   N/M  
               
Provision for Loan Losses 1,000     0   N/M  
               
Earnings before income taxes 254     1,224   -79.2 %
Provision for income taxes (103 )   272   N/M  
Net Earnings $357     $952   -62.5 %
               
Basic earnings per share 0.32     0.85   62.4 %
Basic weighted average shares 1,108     1,120      
outstanding              
               
Diluted earnings per share 0.32     0.84   61.9 %
Diluted weighted average shares outstanding 1,121     1,131      
               
               
               
  Average for Quarter      
  March 31   %  
BALANCE SHEET SUMMARY 2017     2016   Change  
               
Total loans $130,977     $122,069   7.3 %
Total short term investments 14,089     16,414   -14.2 %
Total investment securities 82,294     76,418   7.7 %
               
Earning assets 227,360     214,901   5.8 %
               
Total assets 234,058     220,262   6.3 %
               
Noninterest bearing deposits 70,654     63,433   11.4 %
Interest bearing deposits 132,946     126,587   5.0 %
               
Total deposits 203,600     190,020   7.1 %
               
Fed Funds Purchased and Repurchase Agreements 320     355   -9.9 %
               
Shareholders' equity $29,701     $28,758   3.3 %
               
               
               
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 2017     2016   2016   2016   2016
                     
Total loans $130,977     $124,012   $120,931   $118,028   $122,069
Total short term investments 14,089     21,884   14,035   16,766   16,414
Total investment securities 82,294     81,207   81,166   80,062   76,418
                     
Earning assets 227,360     227,103   216,132   214,856   214,901
                     
Total assets 234,058     232,931   221,332   219,895   220,262
                     
Noninterest bearing deposits 70,654     72,209   61,241   58,456   63,433
Interest bearing deposits 132,946     129,186   128,103   130,204   126,587
                     
Total deposits 203,600     201,395   189,344   188,660   190,020
                     
Fed Funds Purchased and Repurchase Agreements 320     361   361   358   355
                     
Shareholders' equity $29,701     $29,746   $30,278   $29,460   $28,758
                     
                     
  Quarter Ended
  March 31,     Dec 31,   Sept. 30,   June 30,   March 31,
HISTORICAL EARNINGS SUMMARY 2017     2016   2016   2016   2016
                     
                     
Interest income $2,145     $2,050   $2,010   $2,016   $2,043
Interest expense 139     138   136   134   126
Net Interest Income 2,006     1,912   1,874   1,882   1,917
                     
Service charges on deposits 42     42   38   37   39
Other income 88     89   115   87   104
Total Non Interest Income 130     131   153   124   143
                     
Salaries and benefits expense 508     526   476   520   509
Occupancy and equipment expense 104     77   72   76   78
Other expense 269     210   268   267   298
Total Non Interest Expense 881     813   816   863   885
                     
Pretax pre-provision income 1,255     1,230   1,211   1,143   1,175
                     
Gain on sale of securities (1 )   79   91   67   27
Gain on sale of foreclosed assets 0     0   0   0   0
Gain on sale of other assets 0     0   0   19   22
                     
Provision for Loan Losses 1,000     0   0   0   0
                     
Earnings before income taxes 254     1,309   1,302   1,229   1,224
Provision for income taxes (103 )   237   283   263   272
                     
Net Earnings $357     $1,072   $1,019   $966   $952
                     
Diluted earnings per share $ 0.32     $ 0.96   $ 0.91   $ 0.96   $ 0.84
                     
                     
                     
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                             
                             
  Ending Balance  
  March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
HISTORICAL BALANCE SHEET 2017     2016     2016     2016     2016  
                             
Total loans $131,531     $132,140     $123,995     $117,616     $120,214  
Total short term investments 28,599     9,615     12,817     13,269     21,082  
Total investment securities 81,820     83,241     80,951     79,974     78,737  
                             
Total earning assets 241,950     224,996     217,763     210,859     220,033  
                             
Allowance for loan losses (2,662 )   (1,652 )   (1,644 )   (1,633 )   (1,624 )
Premises and equipment 2,698     2,525     1,764     1,425     1,444  
Other Assets 5,950     6,875     8,918     5,353     5,189  
                             
Total assets 247,936     232,744     226,801     216,004     225,042  
                             
Noninterest bearing deposits 78,381     74,537     67,702     59,753     63,151  
Interest bearing deposits 139,409     127,986     127,123     124,839     130,828  
                             
Total deposits 217,790     202,523     194,825     184,592     193,979  
                             
Fed Funds Purchased and Repurchase Agreements 0     361     361     361     355  
Other Liabilities 923     472     1,793     1,235     1,842  
                             
Total liabilities 218,713     203,356     196,979     186,188     196,176  
                             
Shareholders' Equity Actual 29,015     29,201     28,106     28,097     27,180  
Unrealized Gain - AFS 208     187     1,716     1,719     1,686  
Total Equity $29,223     $29,388     $29,822     $29,816     $28,866  
                             
                             
  Quarter Ending  
  March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
NONPERFORMING ASSETS 2017     2016     2016     2016     2016  
                             
Nonaccrual loans $2,527     $2,753     $3,173     $1,349     $1,383  
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 $2,527     $2,753     $3,173     $1,349     $1,383  
                             
Accruing loans past due 30-89 days $0     $121     $0     $0     $0  
                             
Total nonperforming assets as a percentage of loans and foreclosed assets 1.92 %   2.08 %   2.56 %   1.15 %   1.15 %
                             
                             
                             
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                             
                             
  Quarter Ending  
ALLOWANCE FOR LOAN LOSSES March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
  2017     2016     2016     2016     2016  
                             
Balance at beginning of period $1,652     $1,644     $1,633     $1,624     $1,613  
Loans charged off 0     0     0     0     0  
Loan recoveries 10     8     11     9     11  
Net (charge-offs) recoveries 10     8     11     9     11  
Provision for loan losses 1,000     0     0     0     0  
Balance at end of period $2,662     $1,652     $1,644     $1,633     $1,624  
                             
Allowance for loan losses                            
as a percentage of total loans 2.02 %   1.25 %   1.33 %   1.39 %   1.35 %
Allowance for loan losses                            
as a percentage of nonperforming assets 105 %   60 %   52 %   121 %   117 %
Net charge-offs (recoveries) as a                            
percentage of average loans -0.01 %   -0.01 %   -0.01 %   -0.01 %   -0.01 %
Provision for loan losses                            
as a percentage of average loans 0.76 %   N/A     N/A     N/A     N/A  
                             
                             
                             
  Quarter Ending  
  March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
SELECTED RATIOS 2017     2016     2016     2016     2016  
                             
Return on average assets (annualized) 0.61 %   1.84 %   1.84 %   1.76 %   1.73 %
                             
Return on average equity (annualized) 4.81 %   14.32 %   13.46 %   13.12 %   13.19 %
                             
Return on average equity (excluding unrealized gain on investments) 4.85 %   14.97 %   14.33 %   13.97 %   14.01 %
                             
Average shareholders' equity to average assets 12.69 %   12.86 %   13.68 %   13.40 %   13.06 %
                             
Yield on earning assets (tax equivalent) 4.20 %   4.13 %   4.14 %   4.16 %   4.32 %
                             
Effective Cost of Funds 0.25 %   0.25 %   0.26 %   0.25 %   0.24 %
                             
Net interest margin (tax equivalent) 3.95 %   3.88 %   3.88 %   3.92 %   4.08 %
                             
Efficiency ratio (tax equivalent) 37.0 %   35.8 %   36.2 %   38.8 %   38.4 %
                             
End of period book value per common share $26.37     $26.50     $26.89     $26.67     $25.77  
                             
End of period book value (excluding unrealized gain on investments) $26.19     $26.33     $25.34     $25.13     $24.27  
                             
End of period common shares outstanding (in 000's) 1,108     1,109     1,109     1,118     1,120  
                             
                             
                             
  TRINITY BANK N.A.
  (Unaudited)
  (Dollars in thousands, except per share data)
                           
                           
  3 Months Ending
  March 31, 2017   March 31, 2016
            Tax             Tax
  Average         Equivalent   Average         Equivalent
YIELD ANALYSIS Balance   Interest   Yield Yield   Balance   Interest   Yield Yield
                               
Interest Earning Assets:                              
Short term investment $ 14,089   34   0.97% 0.97%   $ 16,414   28   0.70% 0.70%
FRB Stock   372   6   5.91% 6.00%     370   7   7.57% 7.57%
Taxable securities   446   1   0.90% 0.90%     308   0   0.00% 0.00%
Tax Free securities   81,475   545   2.68% 3.86%     75,740   475   2.59% 3.92%
Loans   130,977   1,559   4.76% 4.76%     122,069   1,533   5.05% 5.05%
                               
Total Interest Earning Assets   227,359   2,145   3.77% 4.20%     214,901   2,043   3.80% 4.32%
                               
Noninterest Earning Assets:                              
Cash and due from banks   4,444               4,201          
Other assets   4,178               2,778          
Allowance for loan losses   (1,923 )             (1,618 )        
                               
Total Noninterest Earning Assets   6,699               5,361          
                               
Total Assets $ 234,058             $ 220,262          
                               
Interest Bearing Liabilities:                              
Transaction and Money Market accounts   105,954   79   0.30% 0.30%     102,850   80   0.31% 0.31%
Certificates and other time deposits   26,993   60   0.89% 0.89%     23,737   46   0.79% 0.79%
Other borrowings   321   0   0.30% 0.30%     355   0   0.30% 0.30%
                               
Total Interest Bearing Liabilities   133,268   139   0.42% 0.42%     126,942   126   0.40% 0.40%
                               
Noninterest Bearing Liabilities:                              
Demand deposits   70,654               63,433          
Other liabilities   435               1,129          
Shareholders' Equity   29,701               28,758          
                               
Total Liabilities and Shareholders Equity $ 234,058             $ 220,262          
                               
Net Interest Income and Spread       2,006   3.36% 3.78%         1,917   3.41% 3.92%
                               
Net Interest Margin           3.53% 3.95%             3.60% 4.08%
                               
                               
                               
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
               
               
  March 31       March 31    
  2017   %   2016   %
LOAN PORTFOLIO              
               
Commercial and industrial $76,442   58.12%   $65,545   54.52%
Real estate:              
    Commercial 20,303   15.44%   22,584   18.79%
    Residential 20,897   15.89%   19,607   16.31%
    Construction and development 13,065   9.93%   10,867   9.04%
Consumer 824   0.63%   1,611   1.34%
               
Total loans (gross) 131,531   100.00%   120,214   100.00%
               
Unearned discounts 0   0.00%   0   0.00%
               
Total loans (net) $131,531   100.00%   $120,214   100.00%
               
               
  March 31       March 31    
  2017       2016    
REGULATORY CAPITAL DATA              
Tier 1 Capital $29,014       $27,180    
Total Capital (Tier 1 + Tier 2) $30,912       $28,804    
Total Risk-Adjusted Assets $151,085       $136,828    
Tier 1 Risk-Based Capital Ratio 19.20%       19.86%    
Total Risk-Based Capital Ratio 20.46%       21.05%    
Tier 1 Leverage Ratio 12.40%       12.34%    
               
OTHER DATA              
Full Time Equivalent Employees (FTE's) 17       16    
               
Stock Price Range              
(For the Three Months Ended):              
  High $63.00       $49.00    
  Low $53.50       $46.75    
  Close $63.00       $47.00    
                 

Contact Information

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