SOURCE: Trinity Bank

October 28, 2014 15:08 ET

Trinity Bank Reports Record Earnings

40th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwired - Oct 28, 2014) - Trinity Bank, N.A. (OTCBB: TYBT) today announced operating results for the third quarter and the nine months ending September 30, 2014.

Results of Operations

For the third quarter of 2014, Trinity Bank, N.A. reported Net Income after Taxes of $832,000, an increase of 15.4% over third quarter 2013 earnings of $721,000. Earnings per diluted common share for the third quarter 2014 amounted to $.73, an increase of 15.9% over third quarter 2013 results of $.63 per diluted common share.

For the first nine months of 2014, Net Income after Taxes was $2,410,000, an increase of 14.5% over the nine month 2013 results of $2,105,000. Earnings per diluted common share for the first nine months of 2014 were $2.12, an increase of 15.2% over 2013 nine months results of $1.84 per diluted common share.

Jeffrey M. Harp, President, stated, "Operating results for the quarter ending September 30, 2014 were good. Performance ratios, Return on Assets of 1.68% and Return on Equity of 14.12%, remain well above all local, state and national peer groups. The primary factors contributing to this performance are:

 1) a 14.7% increase in average loans over 3rd Q 2013,
 2) increase in Net Interest Margin - from 3.69% to 3.87%, and
 3) excellent operating expense control - Efficiency Ratio of 36.7%.

As previously announced, Trinity Bank will pay its sixth cash dividend on October 31st to shareholders of record as of October 15th. This dividend of $.34 per share represents a 9.7% increase over the $.31 dividend that was paid in April, 2014. The Board of Directors will continue to review dividend policy on a semi-annual basis."

                   
Average for Quarter Ending   9/30/2014     9/30/2013     %  
(in 000's)                  
Loans   $ 108,469     $ 94,567     14.7 %
Deposits   $ 173,614     $ 158,363     9.6 %
                       
                       
                       
Actual for Quarter Ending     9/30/2014       9/30/2013     %  
(in 000's)                      
                       
Net Interest Income   $ 1,708     $ 1,518     12.5 %
Non-Interest Income     127       110     15.5 %
Non-Interest Expense     (732 )     (637 )   14.9 %
Pretax Preprovision Income   $ 1,103     $ 991     11.3 %
                       
Gain on Sale of Securities and Foreclosed Assets   $ 23     $ 21     N/M  
Loan Loss Provision     (28 )     (20 )   N/M  
Pre Tax Income     1,098       992     10.7 %
Income Tax     (266 )     (271 )   (1.8 )%
Net Income   $ 832     $ 721     15.4 %
                       
Diluted Weighted Average Shares     1,135       1,142        
                       
Earnings per Share   $ 0.73     $ 0.63     15.9 %
                       
Return on Assets     1.68 %     1.61 %      
Return on Equity     14.12 %     14.04 %      
                       

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 Ended      
    September 30   %     September 30   %  
EARNINGS SUMMARY   2014   2013   Change     2014   2013   Change  
                                     
Interest income   $ 1,806   $ 1,616   11.8 %   $ 5,274   $ 4,735   11.4 %
Interest expense     98     98   0.0 %     290     304   -4.6 %
Net Interest Income     1,708     1,518   12.5 %     4,984     4,431   12.5 %
                                     
Service charges on deposits     42     43   -2.3 %     117     123   -4.9 %
Other income     85     67   26.9 %     249     209   19.1 %
Total Non Interest Income     127     110   15.5 %     366     332   10.2 %
                                     
Salaries and benefits expense     381     385   -1.0 %     1,135     1,122   1.2 %
Occupancy and equipment expense     68     75   -9.3 %     209     233   -10.3 %
Other expense     283     177   59.9 %     902     736   22.6 %
Total Non Interest Expense     732     637   14.9 %     2,246     2,091   7.4 %
                                     
Pretax pre-provision income     1,103     991   11.3 %     3,104     2,672   16.2 %
                                     
Gain on sale of securities     0     21   N/M       258     359   -28.1 %
Gain on sale of foreclosed assets     23     0   N/M       47     52   -9.6 %
                                     
Provision for Loan Losses     28     20   40.0 %     177     192   -7.8 %
                                     
Earnings before income taxes     1,098     992   10.7 %     3,232     2,891   11.8 %
Provision for income taxes     266     271   -1.8 %     822     786   4.6 %
Net Earnings   $ 832   $ 721   15.4 %   $ 2,410   $ 2,105   14.5 %
                                     
Basic earnings per share     0.74     0.64   15.6 %     2.14     1.86   15.1 %
Basic weighted average shares outstanding     1,124     1,131           1,125     1,132      
                                     
Diluted earnings per share     0.73     0.63   15.9 %     2.12     1.84   15.2 %
Diluted weighted average shares outstanding     1,135     1,142           1,136     1,143      
                                     
                                     
                                     
    Average for Quarter         Average for Nine Months      
    September 30   %     September 30   %  
BALANCE SHEET SUMMARY   2014   2013   Change     2014   2013   Change  
                                     
Total loans   $ 108,469   $ 94,567   14.7 %   $ 106,846   $ 91,376   16.9 %
Total short term investments     24,627     14,693   67.6 %     15,519     18,577   -16.5 %
Total investment securities     59,950     65,064   -7.9 %     60,217     66,448   -9.4 %
                                     
Earning assets     193,046     174,324   10.7 %     182,582     176,401   3.5 %
                                     
Total assets     198,164     179,452   10.4 %     187,522     181,398   3.4 %
                                     
Noninterest bearing deposits     56,904     42,308   34.5 %     49,125     39,052   25.8 %
Interest bearing deposits     116,710     116,055   0.6 %     114,708     120,528   -4.8 %
                                     
Total deposits     173,614     158,363   9.6 %     163,833     159,580   2.7 %
                                     
Fed Funds Purchased and Repurchase Agreements     429     229   87.3 %     434     333   30.3 %
                                     
Shareholders' equity   $ 23,578   $ 20,548   14.7 %   $ 22,831   $ 20,937   9.0 %
                                     
                                     
                                     
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 2014   2014   2014   2013   2013
                             
Total loans $ 108,469   $ 107,290   $ 104,737   $ 100,220   $ 94,567
Total short term investments   24,627     12,010     10,122     12,966     14,693
Total investment securities   59,950     59,408     60,942     63,937     65,064
                             
Earning assets   193,046     178,708     175,801     177,123     174,324
                             
Total assets   198,164     183,720     180,487     181,884     179,452
                             
Noninterest bearing deposits   56,904     47,495     42,918     43,454     42,308
Interest bearing deposits   116,710     112,580     114,715     116,510     116,055
                             
Total deposits   173,614     160,075     157,633     159,964     158,363
                             
Fed Funds Purchased and Repurchase Agreements   429     429     442     267     229
                             
Shareholders' equity $ 23,578   $ 22,746   $ 22,154   $ 21,301   $ 20,548
                             
                             
    Quarter Ended
 
HISTORICAL EARNINGS SUMMARY
  Sept. 30,
2014
    June 30,
2014
    March 31,
2014
    Dec 31,
2013
    Sept. 30,
2013
                 
                             
                             
Interest income $ 1,806   $ 1,758   $ 1,709   $ 1,677   $ 1,616
Interest expense   98     95     96     100     98
Net Interest Income   1,708     1,663     1,613     1,577     1,518
                             
Service charges on deposits   42     39     42     43     43
Other income   85     82     76     66     67
Total Non Interest Income   127     121     118     109     110
                             
Salaries and benefits expense   381     377     377     478     385
Occupancy and equipment expense   68     69     72     73     75
Other expense   283     339     279     135     177
Total Non Interest Expense   732     785     728     686     637
                             
Pretax pre-provision income   1,103     999     1,003     1,000     991
                             
Gain on sale of securities   0     153     105     51     21
Gain on sale of foreclosed assets   23     0     24     0     0
Gain on sale of assets   0     0     0     18     0
                             
Provision for Loan Losses   28     75     75     50     20
                             
Earnings before income taxes   1,098     1,077     1,057     1,019     992
Provision for income taxes   266     270     286     263     271
                             
Net Earnings $ 832   $ 807   $ 771   $ 756   $ 721
                             
Diluted earnings per share $ 0.73   $ 0.71   $ 0.68   $ 0.66   $ 0.63
                             
                             
                             
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Ending Balance  

HISTORICAL BALANCE SHEET
  Sept. 30,
2014
    June 30,
2014
    March 31,
2014
    Dec 31,
2013
    Sept. 30,
2013
 
                                         
Total loans   $ 110,778     $ 108,648     $ 103,762     $ 109,505     $ 93,934  
Total short term investments     31,928       11,507       19,981       2,534       18,404  
Total investment securities     61,731       58,067       59,669       63,495       63,966  
                                         
Total earning assets     204,437       178,222       183,412       175,534       176,304  
                                         
Allowance for loan losses     (1,447 )     (1,371 )     (1,396 )     (1,321 )     (1,271 )
Premises and equipment     1,265       1,281       1,306       1,275       1,232  
Other Assets     4,740       6,446       5,590       6,444       7,175  
                                         
Total assets     208,995       184,578       188,912       181,932       183,440  
                                         
Noninterest bearing deposits     59,336       50,548       46,896       45,813       44,398  
Interest bearing deposits     124,676       110,131       118,861       113,839       117,411  
                                         
Total deposits     184,012       160,679       165,757       159,652       161,809  
                                         
Fed Funds Purchased and Repurchase Agreements     430       429       429       429       229  
Other Liabilities     970       403       587       670       590  
                                         
Total liabilities     185,412       161,511       166,773       160,751       162,628  
                                         
Shareholders' Equity Actual     23,162       22,835       22,054       21,844       21,052  
Unrealized Gain - AFS     421       231       85       (233 )     (240 )
Total Equity   $ 23,583     $ 23,066     $ 22,139     $ 21,611     $ 20,812  
                                         
                                         
      Quarter Ending  
 
NONPERFORMING ASSETS
    Sept. 30,
2014
      June 30,
2014
      March 31,
2014
      Dec 31,
2013
      Sept. 30,
2013
 
                             
                                         
Nonaccrual loans   $ 0     $ 0     $ 402     $ 402     $ 402  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 300     $ 300     $ 0     $ 0     $ 0  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 300     $ 300     $ 402     $ 402     $ 402  
                                         
Accruing loans past due 30-89 days   $ 0     $ 0     $ 0     $ 0     $ 0  
                                         
Total nonperforming assets as a percentage of loans and foreclosed assets     0.27 %     0.28 %     0.39 %     0.39 %     0.37 %
                                         
                                         
                                         
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                             
                             
                             
  Quarter Ending  

ALLOWANCE FOR LOAN LOSSES
Sept. 30,
2014
    June 30,
2014
    March 31,
2014
    Dec 31,
2013
    Sept. 30,
2013
 
                                       
Balance at beginning of period $ 1,371     $ 1,396     $ 1,321     $ 1,271     $ 1,249  
Loans charged off   0       102       0       0       0  
Loan recoveries   48       2       0       0       2  
Net (charge-offs) recoveries   48       (100 )     0       0       2  
Provision for loan losses   28       75       75       50       20  
Balance at end of period $ 1,447     $ 1,371     $ 1,396     $ 1,321     $ 1,271  
                                       
Allowance for loan losses as a percentage of total loans   1.31 %     1.26 %     1.35 %     1.27 %     1.16 %
Allowance for loan losses as a percentage of nonperforming loans   482 %     457 %     347 %     329 %     316 %
Net charge-offs (recoveries) as a percentage of average loans   (0.04 %)     N/A       N/A       N/A       N/A  
Provision for loan losses as a percentage of average loans   (0.03 %)     0.08 %     0.07 %     0.05 %     0.02 %
                                       
                                       
                                       
    Quarter Ending  
    Sept. 30,       June 30,       March 31,       Dec 31,       Sept. 30,  
SELECTED RATIOS   2014       2014       2014       2013       2013  
                                       
Return on average assets (annualized)   1.68 %     1.76 %     1.71 %     1.66 %     1.61 %
                                       
Return on average equity (annualized)   14.12 %     14.19 %     13.92 %     14.20 %     14.04 %
                                       
Return on average equity (excluding unrealized gain on investments)   14.34 %     14.36 %     13.95 %     14.10 %     13.74 %
                                       
Average shareholders' equity to average assets   11.90 %     12.38 %     12.27 %     11.71 %     11.45 %
                                       
Yield on earning assets (tax equivalent)   4.07 %     4.26 %     4.14 %     4.00 %     3.92 %
                                       
Cost of interest bearing funds   0.34 %     0.34 %     0.33 %     0.34 %     0.34 %
                                       
Net interest margin (tax equivalent)   3.87 %     4.05 %     3.92 %     3.78 %     3.69 %
                                       
Efficiency ratio (tax equivalent)   36.7 %     40.7 %     39.5 %     38.5 %     36.9 %
                                       
End of period book value per common share $ 21.02     $ 20.50     $ 19.68     $ 19.09     $ 18.40  
                                       
End of period book value (excluding unrealized gain on investments) $ 20.64     $ 20.30     $ 19.60     $ 19.30     $ 18.61  
                                       
End of period common shares outstanding (in 000's)   1,122       1,125       1,125       1,132       1,131  
                                       
                                       
                                       
    TRINITY BANK N.A.                  
    (Unaudited)                  
    (Dollars in thousands, except per share data)                  
                                             
                                             
    3 Months Ending  
    September 30, 2014     September 30, 2013  
                                             
                    Tax                     Tax  
    Average               Equivalent     Average               Equivalent  
YIELD ANALYSIS   Balance     Interest   Yield     Yield     Balance     Interest   Yield     Yield  
                                                 
Interest Earning Assets:                                                
Short term investment   $ 24,627     40   0.65 %   0.65 %   $ 14,693     18   0.49 %   0.49 %
Investment securities     543     5   3.68 %   3.68 %     22,791     185   3.25 %   3.25 %
Tax Free securities     59,407     359   2.42 %   3.48 %     42,273     213   2.02 %   2.90 %
Loans     108,469     1,402   5.17 %   5.17 %     94,567     1,200   5.08 %   5.08 %
                                                 
Total Interest Earning Assets     193,046     1,806   3.93 %   4.07 %     174,324     1,616   3.71 %   3.92 %
                                                 
Noninterest Earning Assets:                                                
Cash and due from banks     3,683                       3,616                  
Other assets     2,845                       2,769                  
Allowance for loan losses     (1,410 )                     (1,257 )                
                                                 
Total Noninterest Earning Assets     5,118                       5,128                  
                                                 
Total Assets   $ 198,164                     $ 179,452                  
                                                 
Interest Bearing Liabilities:                                                
Transaction and Money Market accounts     93,134     65   0.28 %   0.28 %     90,622     64   0.28 %   0.28 %
Certificates and other time deposits     23,666     33   0.56 %   0.56 %     25,433     34   0.53 %   0.53 %
Other borrowings     430     0   0.25 %   0.25 %     229     0   0.25 %   0.25 %
                                                 
Total Interest Bearing Liabilities     117,230     98   0.34 %   0.34 %     116,284     98   0.34 %   0.34 %
                                                 
Noninterest Bearing Liabilities                                                
Demand deposits     56,815                       42,308                  
Other liabilities     541                       312                  
Shareholders' Equity     23,578                       20,548                  
                                                 
Total Liabilities and Shareholders Equity   $ 198,164                     $ 179,452                  
                                                 
Net Interest Income and Spread           1,708   3.59 %   3.73 %           1,518   3.37 %   3.58 %
                                                 
Net Interest Margin               3.54 %   3.87 %               3.48 %   3.69 %
                                                 
                                                 
                                                 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                 
                 
    September 30       September 30    
    2014   %   2013   %
LOAN PORTFOLIO                    
                     
Commercial and industrial   $ 61,624   55.63%   $ 52,561   55.96%
Real estate:                    
  Commercial     18,705   16.89%     15,827   16.85%
  Residential     20,496   18.50%     16,333   17.39%
  Construction and development     8,610   7.77%     6,810   7.25%
Consumer     1,343   1.21%     2,403   2.56%
                     
Total loans (gross)     110,778   100.00%     93,934   100.00%
                     
Unearned discounts     0   0.00%     0   0.00%
                     
Total loans (net)   $ 110,778   100.00%   $ 93,934   100.00%
                     
                     
      September 30         September 30    
      2014         2013    
REGULATORY CAPITAL DATA                    
Tier 1 Capital   $ 23,162       $ 21,052    
Total Capital (Tier 1 + Tier 2)   $ 24,609       $ 22,323    
Total Risk-Adjusted Assets   $ 122,851       $ 122,065    
Tier 1 Risk-Based Capital Ratio     18.85%         17.25%    
Total Risk-Based Capital Ratio     20.03%         18.29%    
Tier 1 Leverage Ratio     11.69%         11.77%    
                     
OTHER DATA                    
Full Time Equivalent Employees (FTE's)     15         14    
                     
Stock Price Range (For the Three Months Ended):                    
  High   $ 41.00       $ 36.00    
  Low   $ 38.00       $ 32.50    
  Close   $ 40.00       $ 35.75    
                       

Contact Information

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