SOURCE: Trinity Bank

October 26, 2016 16:00 ET

Trinity Bank Reports First $1,000,000 Quarterly Profit

FORT WORTH, TX--(Marketwired - Oct 26, 2016) - Trinity Bank, N.A. (OTC: TYBT) today announced operating results for the third quarter and the nine months ending September 31, 2016. The financial summary is attached for your review.

Results of Operations

For the third quarter of 2016, Trinity Bank, N.A. reported Net Income after Taxes of $1,019,000, an increase of 7.4% over third quarter 2014 earnings of $949,000. Earnings per diluted common share for the third quarter 2016 amounted to $.91, an increase of 8.3% over third quarter 2015 results of $.84 per diluted common share.

For the first nine months of 2016, Net Income after Taxes was $2,937,000, an increase of 6.6% over the nine month 2015 results of $2,756,000. Earnings per diluted common share for the first nine months of 2016 were $2.60, an increase of 6.6% over 2015 nine months results of $2.44 per diluted common share.

Jeffrey M. Harp, President, stated, "We are pleased to announce Trinity's first quarter with Net Income in excess of $1,000,000. It took us four full years of operation to make $1,000,000 for the year (2007). It is very gratifying for all of us to now be making in excess of $1,000,000 in one quarter. I would like to thank our staff, our Board, and our customers for making this possible."

"Trinity continues to perform at a high level -- Return on Assets of 1.84% and Return on Equity of 14.33% -- when compared to all local, state, and national peer groups." 

As previously announced, Trinity Bank will pay its tenth cash dividend October 31st to shareholders of record as of October 14th. This dividend of $.46 per share represents a 4.5% increase over the $.44 dividend that was paid in April, 2016. The Board of Directors will continue to review dividend policy on a semi-annual basis."

                   
Average for Quarter Ending   9/30/2016     9/30/2015     %  
(in 000's)                      
Loans   $ 120,931     $ 119,107     1.5 %
Deposits   $ 189,344     $ 179,635     5.4 %
                       
                       
                       
Actual for Quarter Ending   9/30/2016     9/30/2015     %  
(in 000's)                      
                       
Net Interest Income   $ 1,874     $ 1,910     (1.9 )%
Non-Interest Income     153       130     17.7 %
Non-Interest Expense     (816 )     (839 )   (2.7 )%
Pretax Preprovision Income   $ 1,211     $ 1,201     .8 %
                       
Gain on Sale of Securities and Foreclosed Assets     91       31        
Loan Loss Provision     0       0        
Pre Tax Income     1,302       1,232     5.7 %
Income Tax     (283 )     (283 )      
Net Income   $ 1,019     $ 949     7.4 %
                       
Diluted Weighted Average Shares     1,120       1,133        
                       
Earnings per Share     0.91       0.84     8.3 %
                       
Return on Assets     1.84 %     1.83 %      
Return on Equity     14.33 %     14.24 %      
                       

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         Nine Months Ending      
    September 30   %     September 30   %  
EARNINGS SUMMARY   2016   2015   Change     2016   2015   Change  
                                     
Interest income   $ 2,010   $ 2,007   0.1 %   $ 6,070   $ 5,821   4.3 %
Interest expense     136     97   40.2 %   $ 396   $ 291   36.1 %
Net Interest Income     1,874     1,910   -1.9 %     5,674     5,530   2.6 %
                                     
Service charges on deposits     38     46   -17.4 %   $ 105   $ 136   -22.8 %
Other income     115     82   40.2 %     317   $ 253   25.3 %
Total Non Interest Income     153     130   17.7 %     422     389   8.5 %
                                     
Salaries and benefits expense     476     514   -7.4 %   $ 1,505   $ 1,397   7.7 %
Occupancy and equipment expense     72     69   4.3 %   $ 225   $ 195   15.4 %
Other expense     268     256   4.7 %   $ 836   $ 866   -3.5 %
Total Non Interest Expense     816     839   -2.7 %     2,566     2,458   4.4 %
                                     
Pretax pre-provision income     1,211     1,201   0.8 %     3,530     3,461   2.0 %
                                     
Gain on sale of securities     91     31   N/M     $ 184   $ 43   N/M  
Gain on sale of foreclosed assets     0     0   N/M     $ 0   $ 70   N/M  
Gain on sale of other assets     0     0   N/M     $ 41   $ 0   N/M  
                                     
Provision for Loan Losses     0     0   N/M       0     0   N/M  
                                     
Earnings before income taxes     1,302     1,232   5.7 %     3,755     3,574   5.1 %
Provision for income taxes     283     283   0.0 %   $ 818   $ 818   0.0 %
Net Earnings   $ 1,019   $ 949   7.4 %   $ 2,937   $ 2,756   6.6 %
                                     
Basic earnings per share     0.92     0.85   8.2 %     2.62     2.46   6.5 %
Basic weighted average shares outstanding     1,109     1,122           1,118     1,121      
                                     
Diluted earnings per share     0.91     0.84   8.3 %     2.60     2.44   6.6 %
Diluted weighted average shares outstanding     1,120     1,133           1,129     1,132      
                                     
                                     
                                     
    Average for Quarter         Average for Nine Months      
    September 30   %     September 30   %  
BALANCE SHEET SUMMARY   2016   2015   Change     2016   2015   Change  
                                     
Total loans   $ 120,931   $ 119,107   1.5 %   $ 120,099   $ 115,632   3.9 %
Total short term investments     14,035     13,055   7.5 %     15,736     15,033   4.7 %
Total investment securities     81,166     70,557   15.0 %     78,851     70,992   11.1 %
                                     
Earning assets     216,132     202,719   6.6 %     214,686     201,657   6.5 %
                                     
Total assets     221,332     207,560   6.6 %     219,926     206,819   6.3 %
                                     
Noninterest bearing deposits     61,241     60,995   0.4 %     62,336     58,971   5.7 %
Interest bearing deposits     128,103     118,640   8.0 %     126,558     120,788   4.8 %
                                     
Total deposits     189,344     179,635   5.4 %     188,894     179,759   5.1 %
                                     
Fed Funds Purchased and Repurchase Agreements     361     429   -15.9 %     358     429   -16.6 %
                                     
Shareholders' equity   $ 30,278   $ 26,653   13.6 %   $ 29,390   $ 25,837   13.8 %
                                     
 
 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                     
    Average for Quarter Ending
    Sept. 30,   June 30,   March 31,   Dec 31,   Sept. 30,
BALANCE SHEET SUMMARY   2016   2016   2016   2015   2015
                               
Total loans   $ 120,931   $ 118,028   $ 122,069   $ 124,316   $ 119,107
Total short term investments     14,035     16,766     16,414     16,894     13,055
Total investment securities     81,166     80,062     76,418     71,663     70,557
                               
Earning assets     216,132     214,856     214,901     212,873     202,719
                               
Total assets     221,332     219,895     220,262     217,961     207,560
                               
Noninterest bearing deposits     61,241     58,456     63,433     67,719     60,995
Interest bearing deposits     128,103     130,204     126,587     120,853     118,640
                               
Total deposits     189,344     188,660     190,020     188,572     179,635
                               
Fed Funds Purchased and Repurchase Agreements     361     358     355     361     429
                               
Shareholders' equity   $ 30,278   $ 29,460   $ 28,758   $ 27,733   $ 26,653
                               
                               
    Quarter Ended
    Sept. 30,   June 30,   March 31,   Dec 31,   Sept. 30,
HISTORICAL EARNINGS SUMMARY   2016   2016   2016   2015   2015
                               
                               
Interest income   $ 2,010   $ 2,016   $ 2,043   $ 2,070   $ 2,007
Interest expense     136     134     126     107     97
Net Interest Income     1,874     1,882     1,917     1,963     1,910
                               
Service charges on deposits     38     37     39     50     48
Other income     115     87     104     87     82
Total Non Interest Income     153     124     143     137     130
                               
Salaries and benefits expense     476     520     509     627     514
Occupancy and equipment expense     72     76     78     68     69
Other expense     268     267     298     149     256
Total Non Interest Expense     816     863     885     844     839
                               
Pretax pre-provision income     1,211     1,143     1,175     1,256     1,201
                               
Gain on sale of securities     91     67     27     18     31
Gain on sale of foreclosed assets     0     0     0     0     0
Gain on sale of other assets     0     19     22     21     0
                               
Provision for Loan Losses     0     0     0     76     0
                               
Earnings before income taxes     1,302     1,229     1,224     1,219     1,232
Provision for income taxes     283     263     272     242     283
                               
Net Earnings   $ 1,019   $ 966   $ 952   $ 977   $ 949
                               
Diluted earnings per share   $ 0.91   $ 0.86   $ 0.84   $ 0.86   $ 0.84
                               
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
    Ending Balance  
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
HISTORICAL BALANCE SHEET   2016     2016     2016     2015     2015  
                                         
Total loans   $ 123,995     $ 117,616     $ 120,214     $ 127,871     $ 118,146  
Total short term investments     12,817       13,269       21,082       20,095       18,533  
Total investment securities     80,951       79,974       78,737       72,616       70,542  
                                         
Total earning assets     217,763       210,859       220,033       220,582       207,221  
                                         
Allowance for loan losses     (1,644 )     (1,633 )     (1,624 )     (1,613 )     (1,528 )
Premises and equipment     1,764       1,425       1,444       1,397       1,304  
Other Assets     8,918       5,353       5,189       8,008       5,381  
                                         
Total assets     226,801       216,004       225,042       228,374       212,378  
                                         
Noninterest bearing deposits     67,702       59,753       63,151       73,078       60,749  
Interest bearing deposits     127,123       124,839       130,828       125,772       122,491  
                                         
Total deposits     194,825       184,592       193,979       198,850       183,240  
                                         
Fed Funds Purchased and Repurchase Agreements     361       361       355       355       429  
Other Liabilities     1,793       1,235       1,842       1,095       1,582  
                                         
Total liabilities     196,979       186,188       196,176       200,300       185,251  
                                         
Shareholders' Equity Actual     28,106       28,097       27,180       26,755       25,818  
Unrealized Gain - AFS     1,716       1,719       1,686       1,319       1,309  
  Total Equity   $ 29,822     $ 29,816     $ 28,866     $ 28,074     $ 27,127  
                                         
                                         
    Quarter Ending  
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
NONPERFORMING ASSETS   2016     2016     2015     2015     2015  
                                         
Nonaccrual loans   $ 3,173     $ 1,349     $ 1,383     $ 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   $ 3,173     $ 1,349     $ 1,383     $ 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     2.56 %     1.15 %     1.15 %     0.00 %     0.00 %
                                         
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
    Quarter Ending  
ALLOWANCE FOR   Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
LOAN LOSSES   2016     2016     2016     2015     2015  
                                         
Balance at beginning of period   $ 1,633     $ 1,624     $ 1,613     $ 1,528     $ 1,518  
Loans charged off     0       0       0       0       0  
Loan recoveries     11       9       11       9       10  
  Net (charge-offs) recoveries     11       9       11       9       10  
Provision for loan losses     0       0       0       76       0  
Balance at end of period   $ 1,644     $ 1,633     $ 1,624     $ 1,613     $ 1,528  
                                         
Allowance for loan losses                                        
as a percentage of total loans     1.33 %     1.39 %     1.35 %     1.26 %     1.29 %
Allowance for loan losses                                        
as a percentage of nonperforming assets     52 %     121 %     117 %     N/A       N/A  
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     N/A       N/A       N/A       0.06 %     N/A  
                                         
                                         
                                         
    Quarter Ending  
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
SELECTED RATIOS   2016     2016     2016     2015     2015  
                                         
Return on average assets (annualized)     1.84 %     1.76 %     1.73 %     1.79 %     1.83 %
                                         
Return on average equity (annualized)     13.46 %     13.12 %     13.19 %     14.09 %     14.24 %
                                         
Return on average equity (excluding unrealized gain on investments)     14.33 %     13.97 %     14.01 %     14.84 %     14.68 %
                                         
Average shareholders' equity to average assets     13.68 %     13.40 %     13.06 %     12.72 %     12.84 %
                                         
Yield on earning assets (tax equivalent)     4.14 %     4.16 %     4.32 %     4.23 %     4.34 %
                                         
Effective Cost of Funds     0.26 %     0.25 %     0.24 %     0.20 %     0.19 %
                                         
Net interest margin (tax equivalent)     3.88 %     3.92 %     4.08 %     4.03 %     4.15 %
                                         
Efficiency ratio (tax equivalent)     36.2 %     38.8 %     38.4 %     36.2 %     37.0 %
                                         
End of period book value per common share   $ 26.89     $ 26.67     $ 25.77     $ 25.07     $ 24.18  
                                         
End of period book value (excluding unrealized gain on investments)   $ 25.34     $ 25.13     $ 24.27     $ 23.89     $ 23.01  
                                         
End of period common shares outstanding (in 000's)     1,109       1,118       1,120       1,120       1,122  
                                         
                   
                   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                                     
    Quarter Ending  
    September 30, 2016     September 30, 2015  
                                     
                Tax                 Tax  
    Average           Equivalent     Average           Equivalent  
YIELD ANALYSIS   Balance   Interest   Yield   Yield     Balance   Interest   Yield   Yield  
                                         
Interest Earning Assets:                                        
Short term investment   $ 13,663   28   0.82 % 0.82 %   $ 12,685   21   0.66 % 0.66 %
Investment securities     372   6   6.00 % 6.00 %     370   6   6.00 % 6.00 %
Tax Free securities     81,166   513   2.53 % 3.64 %     70,557   440   2.49 % 3.59 %
Loans     120,931   1,463   4.84 % 4.84 %     119,107   1,540   5.17 % 5.17 %
                                         
Total Interest Earning Assets     216,132   2,010   3.72 % 4.14 %     202,719   2,007   3.96 % 4.34 %
                                         
Noninterest Earning Assets:                                        
Cash and due from banks     3,820                   4,112              
Other assets     3,017                   2,257              
Allowance for loan losses     (1,637 )                 (1,528 )            
                                         
Total Noninterest Earning Assets     5,200                   4,841              
                                         
Total Assets   $ 221,332                 $ 207,560              
                                         
Interest Bearing Liabilities:                                        
Transaction and Money Market accounts     102,124   78   0.31 % 0.31 %     96,860   67   0.28 % 0.28 %
Certificates and other time deposits     25,979   58   0.89 % 0.89 %     21,780   30   0.55 % 0.55 %
Other borrowings     361   0   0.30 % 0.30 %     429   0   0.25 % 0.25 %
                                         
Total Interest Bearing Liabilities     128,464   136   0.42 % 0.42 %     119,069   97   0.33 % 0.33 %
                                         
Noninterest Bearing Liabilities                                        
Demand deposits     61,241                   60,995              
Other liabilities     1,349                   843              
Shareholders' Equity     30,278                   26,653              
                                         
Total Liabilities and Shareholders Equity   $ 221,332                 $ 207,560              
                                         
Net Interest Income and Spread         1,874   3.30 % 3.72 %         1,910   3.63 % 4.02 %
                                         
Net Interest Margin             3.47 % 3.88 %             3.77 % 4.15 %
                                         
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
    September 30           September 30        
    2016     %     2015     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial   $ 67,314     54.29 %   $ 60,904     51.55 %
Real estate:                            
  Commercial     22,227     17.93 %     22,523     19.06 %
  Residential     19,398     15.64 %     19,677     16.65 %
  Construction and development     13,671     11.03 %     13,237     11.20 %
Consumer     1,385     1.12 %     1,805     1.53 %
                             
Total loans (gross)     123,995     100.00 %     118,146     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)   $ 123,995     100.00 %   $ 118,146     100.00 %
                             
                             
    September 30           September 30        
    2016           2015        
REGULATORY CAPITAL DATA                            
Tier 1 Capital   $ 28,106           $ 25,818        
Total Capital (Tier 1 + Tier 2)   $ 29,750           $ 27,346        
Total Risk-Adjusted Assets   $ 141,322           $ 131,608        
Tier 1 Risk-Based Capital Ratio     19.92 %           19.62 %      
Total Risk-Based Capital Ratio     21.08 %           20.78 %      
Tier 1 Leverage Ratio     12.70 %           12.44 %      
                             
OTHER DATA                            
Full Time Equivalent                            
Employees (FTE's)     16             16        
                             
Stock Price Range                            
(For the Three Months Ended):                            
  High   $ 50.25           $ 61.00        
  Low   $ 49.00           $ 51.00        
  Close   $ 50.25           $ 51.00        

Contact Information

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