SOURCE: Trinity Bank

August 25, 2009 14:30 ET

Trinity Bank Reports Net Income up 14.7% in Spite of Increased FDIC Charges

19th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwire - August 25, 2009) - Trinity Bank N.A. (OTCBB: TYBT) today announced financial and operating results for the second quarter and the six months ending June 30, 2009.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $390,000 or $.33 per diluted common share for the second quarter of 2009, compared to $340,000 or $.29 per diluted common share for the second quarter of 2008. This level of profit produced a Return on Assets of 1.08% and a Return on Equity of 10.38% for the second quarter.

For the first six months of 2009, Net Income after Taxes amounted to $776,000 or $.66 per diluted common share versus $665,000 or $.57 per diluted common share for the first six months of 2008 -- a 16.7% increase.

Jeffrey M. Harp, President, stated, "We were able to produce a 14.7% increase in Net Income in spite of a 650% increase (from $17,000 in 2nd quarter '08 to $128,000 in 2nd quarter '09) in FDIC insurance premiums. I would challenge you to find very many other banks that were able to duplicate Trinity's results."

"In addition, we have just completed an examination by the OCC (national bank examiners), and I am pleased to confirm that since inception in May 2003, we have suffered no losses and we have no past due loans and no non-performing loans. In the current economic environment, these results are remarkable. Even though the recession has finally reached Texas, our market area continues to be one of the best in the U.S. We look forward to improving our position in the market."

Average for Quarter Ending

(in 000's)               6-30-09           6-30-08           %
                        ---------         ---------         ----

Loans                   $  62,824         $  57,309          9.6%
Deposits                $ 126,962         $ 108,252         17.3%



Actual for Quarter Ending

(in 000's)               6-30-09           6-30-08           %
                        ---------         ---------         ----

Net Interest Income     $   1,033         $     909         13.6%
Non-Interest Income           121               106         14.2%
Non-Interest Expense          614               539         13.9%
Loan Loss Provision            45                45            -

Pre Tax Income          $     495         $     431         14.8%
Income Tax              $     105         $      91         15.4%
Net Income              $     390         $     340         14.7%

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 to loan losses and the estimations of values of collateral and various financial assets and liabilities, that the cost 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 hold 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 obligations 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        Six Months Ended
                                 June 30        %       June 30        %
EARNINGS SUMMARY               2009   2008   Change   2009   2008   Change

Interest income                1,446  1,430     1.1%  2,873  3,011    -4.6%
Interest expense                 413    521   -20.7%    831  1,201   -30.8%
Net Interest Income            1,033    909    13.6%  2,042  1,810    12.8%

Provision for Loan Losses         45     45     0.0%     90     90     0.0%

Service charges on deposits       30     24    25.0%     55     49    12.2%
Net gain on securities
 available for sale                6     23   -73.9%      9     26   -65.4%
Other income                      85     59    44.1%    161    154     4.5%
Total Non Interest Income        121    106    14.2%    225    229    -1.7%

Salaries and benefits expense    284    283     0.4%    575    568     1.2%
Occupancy and equipment
 expense                          87     87     0.0%    172    174    -1.1%
Other expense                    243    169    43.8%    450    345    30.4%
Total Non Interest Expense       614    539    13.9%  1,197  1,087    10.1%

Earnings before income taxes     495    431    14.8%    980    862    13.7%
Provision for income taxes       105     91    15.4%    204    197     3.6%
Net Earnings                     390    340    14.7%    776    665    16.7%

Basic earnings per share        0.35   0.31    20.7%   0.70   0.60    16.6%
Basic weighted average shares
 outstanding                   1,110  1,109           1,110  1,109

Diluted earnings per share      0.33   0.29    17.9%   0.66   0.57    15.7%
Diluted weighted average
 shares outstanding            1,166  1,166           1,166  1,166




                        Average for Quarter      Average for Six Months
BALANCE SHEET SUMMARY   Ending June 30     %     Ending June 30,      %
                         2009     2008   Change     2009     2008   Change

Total loans           $ 62,824 $ 57,309     9.6% $ 63,458 $ 53,594    18.4%
Total short term
 investments            21,426   23,073    -7.1%   20,821   24,908   -16.4%
Total investment
 securities             53,319   36,588    45.7%   50,259   38,811    29.5%

Earning assets         137,569  116,970    17.6%  134,538  117,313    14.7%

Total assets           143,961  122,227    17.8%  139,881  122,673    14.0%

Noninterest bearing
 deposits               23,240   20,553    13.1%   23,211   20,683    12.2%
Interest bearing
 deposits              103,722   87,699    18.3%   98,106   88,131    11.3%

Total deposits         126,962  108,252    17.3%  121,317  108,814    11.5%

Fed Funds Purchased
 and Repurchase
 Agreements              1,323      620   113.4%    3,280      713   360.0%

Shareholders' equity    15,029   12,821    17.2%   14,704   12,656    16.2%





                              TRINITY BANK N.A.
                                (Unaudited)
                (Dollars in thousands, except per share data)



                                      Average for Quarter Ending
                            June 30, March 31,  Dec 31,  Sept. 30, June 30,
BALANCE SHEET SUMMARY         2009     2009       2008     2008      2008

Total loans                 $ 62,824 $   62,192 $ 65,398 $  64,946 $ 57,309
Total short term
 investments                  21,426     20,209   22,898    17,627   23,073
Total investment securities   53,319     47,162   39,329    37,060   36,588

Earning assets               137,569    129,563  127,625   119,633  116,970

Total assets                 143,961    135,756  133,175   124,795  122,227

Noninterest bearing
 deposits                     23,240     23,184   24,012    21,199   20,553
Interest bearing deposits    103,722     92,425   90,298    89,387   87,699

Total deposits               126,962    115,609  114,310   110,586  108,252

Fed Funds Purchased and
 Repurchase Agreements         1,323      5,259    4,934       798      620

Shareholders' equity          15,029     14,376   13,531    13,073   12,821



                                             Quarter Ended
                             June 30, March 31, Dec 31,  Sept. 30, June 30,
HISTORICAL EARNINGS SUMMARY    2009     2009      2008     2008      2008


Interest income                 1,446     1,427    1,456     1,464    1,430
Interest expense                  413       418      478       526      521
Net Interest Income             1,033     1,009      978       938      909

Provision for Loan Losses          45        45       45        45       45

Service charges on deposits        30        25       24        23       24
Net gain on securities
 available for sale                 6         3        0         0       23
Other income                       85        76       40        64       59
Total Non Interest Income         121       104       64        87      106

Salaries and benefits
 expense                          284       291      342       301      283
Occupancy and equipment
 expense                           87        85       87        86       87
Other expense                     243       207      108       152      169
Total Non Interest Expense        614       583      537       539      539

Earnings before income taxes      495       485      460       441      431
Provision for income taxes        105        99       90        84       91
Net Earnings                      390       386      370       357      340




                             TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)




                                             Ending Balance
                             June 30, March 31, Dec 31,  Sept. 30, June 30,
HISTORICAL BALANCE SHEET       2009     2009      2008     2008      2008

Total loans                  $ 64,339 $  60,086 $ 66,715 $  65,595 $ 62,061
Total short term investments   18,739    17,301   20,502    23,291   15,415
Total investment securities    53,282    50,553   44,980    34,523   39,803

Total earning assets          136,360   127,940  132,197   123,409  117,279

Allowance for loan losses         996       951      906       861      816
Premises and equipment          1,665     1,700    1,719     1,680    1,541
Other Assets                    6,491     4,926    5,347     3,754    4,657

Total assets                  143,520   133,615  138,357   127,982  122,661

Noninterest bearing deposits   22,562    21,511   28,665    21,769   20,506
Interest bearing deposits     104,498    96,283   87,552    91,448   88,270

Total deposits                127,060   117,794  116,217   113,217  108,776

Fed Funds Purchased and
 Repurchase Agreements            524       508    7,771       934      621
Other Liabilities                 640       612      441       483      401

Total liabilities             128,224   118,914  124,429   114,634  109,798

Shareholders' equity           15,296    14,701   13,928    13,348   12,863


                                                   Quarter Ending
                                         June   March   Dec   Sept.  June
                                          30,    31,    31,    30,    30,
NONPERFORMING ASSETS                     2009   2009   2008   2008   2008

Nonaccrual loans                         $   0  $   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               $   0  $   0  $   0  $   0  $   0

Accruing loans past due 30-89 days       $   0  $   0  $   0  $ 152  $   5

Total nonperforming assets as a
 percentage of loans and foreclosed
 assets                                   0.00%  0.00%  0.00%  0.00%  0.00%




                            TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)



                                             Quarter Ending
ALLOWANCE FOR                June 30, March 31, Dec 31,  Sept. 30, June 30,
LOAN LOSSES                    2009     2009      2008     2008      2008

Balance at beginning of
 period                      $   951  $    906  $   861  $    816  $   771
Loans charged off                  0         0        0         0        0
Loan recoveries                    0         0        0         0        0
Net (charge-offs) recoveries       0         0        0         0        0
Provision for loan losses         45        45       45        45       45
Balance at end of period     $   996  $    951  $   906  $    861  $   816

Allowance for loan losses
 as a percentage of total
 loans                          1.55%     1.58%    1.51%     1.29%    1.24%
Allowance for loan losses
 as a percentage of
 nonperforming loans             N/A       N/A      N/A       N/A      N/A
Net charge-offs (recoveries)
 as a percentage of average
 loans                           N/A       N/A      N/A       N/A      N/A
Provision for loan losses
 as a percentage of average
 loans                          0.07%     0.07%    0.07%     0.07%    0.08%



                                             Quarter Ending
                             June 30, March 31, Dec 31,  Sept. 30, June 30,
SELECTED RATIOS                2009     2009      2008     2008      2008

Return on average assets
 (annualized)                   1.08%     1.14%    1.11%     1.14%    1.11%

Return on average equity
 (annualized)                  10.38%    10.74%   10.94%    10.92%   10.61%

Average shareholders' equity
 to average assets             10.44%    10.59%   10.16%    10.48%   10.49%

Yield on earning assets (tax
 equivalent)                    4.47%     4.71%    5.20%     5.21%    5.17%

Cost of interest bearing
 funds                          1.60%     1.71%    2.43%     2.33%    2.37%

Net interest margin (tax
 equivalent)                    3.27%     3.40%    3.37%     3.45%    3.39%

Efficiency ratio (tax
 equivalent)                   49.32%    48.30%   47.18%    48.13%   49.27%

End of period book value per
 common share                  13.78     13.26    12.56     12.04    11.60

End of period common shares
 outstanding                   1,110     1,109    1,109     1,109    1,109




                            TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)


                                    3 Months Ending
                      June 30, 2009                  June 30, 2008

                                      Tax                             Tax
YIELD        Average              Equivalent Average             Equivalent
 ANALYSIS    Balance Interest Yield   Yield  Balance Interest Yield  Yield

Interest
 Earning
 Assets:
Short term
 investment     21,426     98 1.83%    1.83%   23,073    197   3.42%  3.42%
Investment
 securities     27,427    302 4.40%    4.40%   14,282    140   3.91%  3.91%
Tax Free
 securities     25,892    207 3.20%    4.61%   22,306    179   3.24%  4.65%
Loans           62,824    839 5.34%    5.34%   57,309    914   6.39%  6.39%

Total
 Interest
 Earning
 Assets        137,569  1,446 4.20%    4.47%  116,970  1,430   4.90%  5.17%

Noninterest
 Earning
 Assets:
Cash and due
 from banks      3,475                          3,532
Other assets     3,889                          2,519
Allowance for
 loan losses      (972)                          (794)

Total
 Noninterest
 Earning
 Assets          6,392                          5,257

Total Assets  $143,961                       $122,227

Interest
 Bearing
 Liabilities:
Transaction
 and Money
 Market
 accounts       68,890    223 1.29%    1.29%   64,092    292   1.83%  1.83%
Certificates
 and other
 time
 deposits       33,348    188 2.26%    2.26%   23,607    227   3.86%  3.86%
Other
 borrowings      1,323      2 0.60%    0.60%      620      2   1.25%  1.25%

Total
 Interest
 Bearing
 Liabilities   103,561    413 1.60%    1.60%   88,319    521   2.37%  2.37%

Noninterest
 Bearing
 Liabilities
Demand
 deposits       24,724                         20,553
Other
 liabilities       647                            534
Shareholders'
 Equity         15,029                         12,821

Total
 Liabilities
 and
 Shareholders
 Equity       $143,961                       $122,227

Net Interest
 Income and
 Spread                 1,033 2.61%    2.87%             909   2.53%  2.80%

Net Interest
 Margin                       3.00%    3.27%                   3.12%  3.39%




                            TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)



                                    June 30             June 30
                                      2009        %       2008        %
LOAN PORTFOLIO

Commercial and industrial             31,067     48.35%   34,266     55.21%
Real estate:
  Commercial                          12,126     18.87%   11,056     17.81%
  Residential                         10,326     16.07%    8,194     13.20%
  Construction and development         7,513     11.69%    6,547     10.55%
Consumer                               3,228      5.02%    1,998      3.22%

Total loans (gross)                   64,260    100.00%   62,061    100.00%

Unearned discounts                         0      0.00%        0      0.00%

Total loans (net)                     64,260    100.00%   62,061    100.00%


                                    June 30             June 30
                                      2009                2008
REGULATORY CAPITAL DATA
Tier 1 Capital                      $ 14,443            $ 12,929
Total Capital (Tier 1 + Tier 2)     $ 15,439            $ 13,745
Total Risk-Adjusted Assets          $ 98,147            $ 73,155
Tier 1 Ratio                           14.72%              17.67%
Total Capital Ratio                    15.73%              18.79%
Tier 1 Leverage Ratio                  10.03%              10.58%

OTHER DATA
  Full Time Equivalent
   Employees (FTE's)                      14                  14

  Stock Price Range
  (For the Twelve Months Ended):
  High                              $  20.00            $  20.00
  Low                               $  20.00            $  20.00
  Close                             $  20.00            $  20.00

Contact Information

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