SOURCE: Trinity Bank

October 29, 2015 13:26 ET

Trinity Bank Reports Record Earnings

44th Consecutive Quarter of Profit Improvement

FORT WORTH, TX--(Marketwired - Oct 29, 2015) - Trinity Bank, N.A. (OTC: TYBT) today announced operating results for the third quarter and the nine months ending September 30, 2015. The financial summary is attached for your review.

Results of Operations

For the third quarter of 2015, Trinity Bank, N.A. reported Net Income after Taxes of $949,000, an increase of 14.1% over third quarter 2014 earnings of $832,000. Earnings per diluted common share for the third quarter 2015 amounted to $.84, an increase of 15.1% over third quarter 2014 results of $.73 per diluted common share.

For the first nine months of 2015, Net Income after Taxes was $2,756,000, an increase of 14.4% over the nine month 2014 results of $2,410,000. Earnings per diluted common share for the first nine months of 2015 were $2.44, an increase of 15.1% over 2014 nine months results of $2.12 per diluted common share.

Jeffrey M. Harp, President, stated, "Operating results for the quarter ending September 30, 2015 were good. Return on Assets of 1.83% and Return on Equity of 14.24%, remain well above all local, state and national peer groups. The primary factors contributing to this performance are:

1) a 9.8% increase in average loans over 3rd Q 2014,
2) increase in Net Interest Margin - from 3.87% to 4.15%, and
3) excellent operating expense control - Efficiency Ratio of 37.0%

As previously announced, Trinity Bank will pay its eighth cash dividend October 30th to shareholders of record as of October 15th. This dividend of $.42 per share represents a 10.5% increase over the $.38 dividend that was paid in April, 2015. The Board of Directors will continue to review dividend policy on a semi-annual basis."

                   
Average for Quarter Ending   9/30/2015     9/30/2014     %  
(in 000's)                      
Loans   $ 119,107     $ 108,469     9.8 %
Deposits   $ 179,635     $ 173,614     3.5 %
                       
                       
                       
Actual for Quarter Ending   9/30/2015     9/30/2014     %  
(in 000's)                      
                       
Net Interest Income   $ 1,910     $ 1,708     11.8 %
Non-Interest Income     130       127     2.4 %
Non-Interest Expense     (839 )     (732 )   14.6 %
Pretax Preprovision Income   $ 1,201     $ 1,103     8.9 %
                       
Gain on Sale of Securities and Foreclosed Assets     31     $ 23     34.8 %
Loan Loss Provision     0       (28 )   N/M  
Pre Tax Income     1,232       1,098     12.2 %
Income Tax     (283 )     (266 )   6.4 %
Net Income   $ 949     $ 832     14.1 %
                       
Diluted Weighted Average Shares     1,133       1,135        
                       
Earnings per Share     0.84       0.73     15.1 %
                       
Return on Assets     1.83 %     1.68 %      
Return on Equity     14.24 %     14.12 %      
                       

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 2015   2014   Change     2015   2014   Change  
                                   
Interest income $ 2,007   $ 1,806   11.1 %   $ 5,821   $ 5,274   10.4 %
Interest expense   97     98   -1.0 %     291     290   0.3 %
Net Interest Income   1,910     1,708   11.8 %     5,530     4,984   11.0 %
                                   
Service charges on deposits   48     48   0.0 %     136     136   0.0 %
Other income   82     79   3.8 %     253     230   10.0 %
Total Non Interest Income   130     127   2.4 %     389     366   6.3 %
                                   
Salaries and benefits expense   514     381   34.9 %     1,397     1,135   23.1 %
Occupancy and equipment expense   69     68   1.5 %     195     209   -6.7 %
Other expense   256     283   -9.5 %     866     902   -4.0 %
Total Non Interest Expense   839     732   14.6 %     2,458     2,246   9.4 %
                                   
Pretax pre-provision income   1,201     1,103   8.9 %     3,461     3,104   11.5 %
                                   
Gain on sale of securities   31     0   N/M       43     258   -83.3 %
Gain on sale of foreclosed assets   0     23   N/M       70     47   48.9 %
                                   
Provision for Loan Losses   0     28   N/M       0     177   N/M  
                                   
Earnings before income taxes   1,232     1,098   12.2 %     3,574     3,232   10.6 %
Provision for income taxes   283     266   6.4 %     818     822   -0.5 %
Net Earnings $ 949   $ 832   14.1 %   $ 2,756   $ 2,410   14.4 %
                                   
Basic earnings per share   0.85     0.74   14.9 %     2.46     2.14   15.0 %
Basic weighted average shares outstanding   1,122     1,124           1,121     1,125      
                                   
                                   
Diluted earnings per share   0.84     0.73   15.1 %     2.44     2.12   15.1 %
Diluted weighted average shares outstanding   1,133     1,135           1,132     1,136      
                                   
                           
  Average for Quarter         Average for Nine Months      
  September 30   %     September 30   %  
BALANCE SHEET SUMMARY 2015   2014   Change     2015   2014   Change  
                           
Total loans $ 119,107   $ 108,469   9.8 %   $ 115,632   $ 106,846   8.2 %
Total short term investments   13,055     24,627   -47.0 %     15,033     15,519   -3.1 %
Total investment securities   70,557     59,950   17.7 %     70,992     60,217   17.9 %
                                   
Earning assets   202,719     193,046   5.0 %     201,657     182,582   10.4 %
                                   
Total assets   207,560     198,164   4.7 %     206,819     187,522   10.3 %
                                   
Noninterest bearing deposits   60,995     56,904   7.2 %     58,971     49,125   20.0 %
Interest bearing deposits   118,640     116,710   1.7 %     120,788     114,708   5.3 %
                                   
Total deposits   179,635     173,614   3.5 %     179,759     163,833   9.7 %
                                   
Fed Funds Purchased and Repurchase Agreements   429     429   0.0 %     429     434   -1.2 %
                                   
Shareholders' equity $ 26,653   $ 23,578   13.0 %   $ 25,837   $ 22,831   13.2 %
                                   
                                   
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                     
    Average for Quarter Ending
BALANCE SHEET SUMMARY   Sept. 30, 2015   June 30, 2015   March 31, 2015   Dec 31, 2014   Sept. 30, 2014
                               
Total loans   $ 119,107   $ 116,614   $ 111,088   $ 109,401   $ 108,469
Total short term investments     13,055     11,618     20,885     35,421     24,627
Total investment securities     70,557     72,378     70,779     65,080     59,950
                               
Earning assets     202,719     200,610     202,752     209,902     193,046
                               
Total assets     207,560     205,394     207,502     214,976     198,164
                               
Noninterest bearing deposits     60,995     57,617     58,296     60,788     56,904
Interest bearing deposits     118,640     120,879     122,866     128,918     116,710
                               
Total deposits     179,635     178,496     181,162     189,706     173,614
                               
Fed Funds Purchased and Repurchase Agreements     429     429     429     430     429
                               
Shareholders' equity   $ 26,653   $ 25,638   $ 25,203   $ 24,077   $ 23,578
                               
                               
    Quarter Ended
HISTORICAL EARNINGS SUMMARY   Sept. 30, 2015   June 30, 2015   March 31, 2015   Dec 31, 2014   Sept. 30, 2014
                               
                               
Interest income   $ 2,007   $ 1,953   $ 1,862   $ 1,853   $ 1,806
Interest expense     97     96     98     105     98
Net Interest Income     1,910     1,857     1,764     1,748     1,708
                               
Service charges on deposits     48     46     42     47     48
Other income     82     83     88     80     79
Total Non Interest Income     130     129     130     127     127
                               
Salaries and benefits expense     514     454     429     613     381
Occupancy and equipment expense     69     65     61     64     68
Other expense     256     286     323     101     283
Total Non Interest Expense     839     805     813     778     732
                               
Pretax pre-provision income     1,201     1,181     1,081     1,097     1,103
                               
Gain on sale of securities     31     12     0     0     0
Gain on sale of foreclosed assets     0     0     70     0     23
                               
Provision for Loan Losses     0     0     0     28     28
                               
Earnings before income taxes     1,232     1,193     1,151     1,069     1,098
Provision for income taxes     283     271     265     212     266
    $ 949                        
Net Earnings   $ 949   $ 922   $ 886   $ 857   $ 832
                               
Diluted earnings per share   $ 0.84   $ 0.81   $ 0.78   $ 0.76   $ 0.73
                               
                               
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
    Ending Balance  
HISTORICAL BALANCE SHEET   Sept. 30, 2015     June 30, 2015     March 31, 2015     Dec 31, 2014     Sept. 30, 2014  
                                         
Total loans   $ 118,146     $ 120,706     $ 112,689     $ 115,156     $ 110,778  
Total short term investments     18,533       8,158       20,562       26,587       31,928  
Total investment securities     70,542       70,523       71,606       68,132       61,731  
                                         
Total earning assets     207,221       199,387       204,857       209,875       204,437  
                                         
Allowance for loan losses     (1,528 )     (1,518 )     (1,477 )     (1,475 )     (1,447 )
Premises and equipment     1,304       1,286       1,223       1,240       1,265  
Other Assets     5,381       4,700       4,941       5,834       4,740  
                                         
Total assets     212,378       203,855       209,544       215,474       208,995  
                                         
Noninterest bearing deposits     60,749       59,449       61,777       56,554       59,336  
Interest bearing deposits     122,491       117,515       121,244       133,289       124,676  
                                         
Total deposits     183,240       176,964       183,021       189,843       184,012  
                                         
Fed Funds Purchased and Repurchase Agreements     429       429       429       430       430  
Other Liabilities     1,582       604       1,051       663       970  
                                         
Total liabilities     185,251       177,997       184,501       190,936       185,412  
                                         
Shareholders' Equity Actual     25,818       25,408       24,486       24,026       23,162  
Unrealized Gain - AFS     1,309       450       557       512       421  
Total Equity   $ 27,127     $ 25,858     $ 25,043     $ 24,538     $ 23,583  
                                         
                                         
    Quarter Ending  
NONPERFORMING ASSETS   Sept. 30, 2015     June 30, 2015     March 31, 2015     Dec 31, 2014     Sept. 30, 2014  
                                         
Nonaccrual loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 0     $ 0     $ 0     $ 300     $ 300  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 0     $ 0     $ 0     $ 300     $ 300  
                                         
Accruing loans past due 30-89 days   $ 0     $ 0     $ 0     $ 0     $ 0  
                                         
Total nonperforming assets as a percentage of loans and foreclosed assets     0.00 %     0.00 %     0.00 %     0.26 %     0.27 %
                                         
                                         
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
    Quarter Ending  
ALLOWANCE FOR LOAN LOSSES   Sept. 30, 2015     June 30, 2015     March 31, 2015     Dec 31, 2014     Sept. 30, 2014  
                                         
Balance at beginning of period   $ 1,518     $ 1,477     $ 1,475     $ 1,447     $ 1,371  
Loans charged off     0       0       0       0       0  
Loan recoveries     10       41       2       1       48  
Net (charge-offs) recoveries     10       41       2       1       48  
Provision for loan losses     0       0       0       27       28  
Balance at end of period   $ 1,528     $ 1,518     $ 1,477     $ 1,475     $ 1,447  
                                         
Allowance for loan losses                                        
as a percentage of total loans     1.29 %     1.26 %     1.31 %     1.28 %     1.31 %
Allowance for loan losses                                        
as a percentage of nonperforming assets     N/A       N/A       N/A       492 %     482 %
Net charge-offs (recoveries) as a                                        
percentage of average loans     -0.01 %     -0.04 %     N/A       N/A       -0.04 %
Provision for loan losses                                        
as a percentage of average loans     N/A       N/A       N/A       0.02 %     0.03 %
                                         
                                         
    Quarter Ending  
SELECTED RATIOS   Sept. 30, 2015     June 30, 2015     March 31, 2015     Dec 31, 2014     Sept. 30, 2014  
                               
Return on average assets (annualized)     1.83 %     1.80 %     1.71 %     1.59 %     1.68 %
                                         
Return on average equity (annualized)     14.24 %     14.38 %     14.06 %     14.22 %     14.12 %
                                         
Return on average equity (excluding unrealized gain on investments)     14.68 %     14.77 %     14.47 %     14.51 %     14.34 %
                                         
Average shareholders' equity to average assets     12.84 %     12.48 %     12.15 %     11.20 %     11.90 %
                                         
Yield on earning assets (tax equivalent)     4.34 %     4.28 %     4.04 %     4.07 %     4.07 %
                                         
Effective Cost of Funds     0.19 %     0.19 %     0.20 %     0.21 %     0.20 %
                                         
Net interest margin (tax equivalent)     4.15 %     4.09 %     3.84 %     3.86 %     3.87 %
                                         
Efficiency ratio (tax equivalent)     37.0 %     36.8 %     39.1 %     37.7 %     36.7 %
                                         
End of period book value per common share   $ 24.18     $ 23.07     $ 22.34     $ 21.89     $ 21.02  
                                         
End of period book value (excluding unrealized gain on investments)   $ 23.01     $ 22.67     $ 21.84     $ 21.43     $ 20.64  
                                         
End of period common shares outstanding (in 000's)     1,122       1,121       1,121       1,121       1,122  
                                         
                                         
   TRINITY BANK N.A.                  
   (Unaudited)                  
   (Dollars in thousands, except per share data)                  
  Quarter Ending
  September 30,2015   September 30,2014
                               
              Tax               Tax
  Average           Equivalent   Average           Equivalent
YIELD ANALYSIS Balance   Interest   Yield   Yield   Balance   Interest   Yield   Yield
                                   
Interest Earning Assets:                                  
Short term investment $ 12,685   21   0.66%   0.66%   $ 24,627   40   0.65%   0.65%
Investment securities   370   6   6.00%   6.00%     543   5   3.68%   3.68%
Tax Free securities   70,557   440   2.49%   3.59%     59,407   359   2.42%   3.48%
Loans   119,107   1,540   5.17%   5.17%     108,469   1,402   5.17%   5.17%
                                   
Total Interest Earning Assets   202,719   2,007   3.96%   4.34%     193,046   1,806   3.93%   4.07%
                                   
Noninterest Earning Assets:                                  
Cash and due from banks   4,112                 3,683            
Other assets   2,257                 2,845            
Allowance for loan losses   (1,528)                 (1,410)            
                                   
Total Noninterest Earning Assets   4,841                 5,118            
                                   
Total Assets $ 207,560               $ 198,164            
                                   
Interest Bearing Liabilities:                                  
Transaction and Money Market accounts   96,860   67   0.28%   0.28%     93,134   65   0.28%   0.28%
Certificates and other time deposits   21,780   30   0.55%   0.55%     23,666   33   0.56%   0.56%
Other borrowings   429   0   0.25%   0.25%     430   0   0.25%   0.25%
                                   
Total Interest Bearing Liabilities   119,069   97   0.33%   0.33%     117,230   98   0.34%   0.34%
                                   
Noninterest Bearing Liabilities                                  
Demand deposits   60,995                 56,815            
Other liabilities   843                 541            
Shareholders' Equity   26,653                 23,578            
                                   
Total Liabilities and Shareholders Equity $ 207,560               $ 198,164            
                                   
Net Interest Income and Spread       1,910   3.63%   4.02%         1,708   3.59%   3.73%
                                   
Net Interest Margin           3.77%   4.15%             3.54%   3.87%
                                   
                                   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
    September 30           September 30        
    2015     %     2014     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial   $ 60,904     51.55 %   $ 61,624     55.63 %
Real estate:                            
  Commercial     22,523     19.06 %     18,705     16.89 %
  Residential     19,677     16.65 %     20,496     18.50 %
  Construction and development     13,237     11.20 %     8,610     7.77 %
Consumer     1,805     1.53 %     1,343     1.21 %
                             
Total loans (gross)     118,146     100.00 %     110,778     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)   $ 118,146     100.00 %   $ 110,778     100.00 %
                             
                         
    September 30           September 30        
    2015           2014        
REGULATORY CAPITAL DATA                        
Tier 1 Capital   $ 25,818           $ 23,162        
Total Capital (Tier 1 + Tier 2)   $ 27,346           $ 24,609        
Total Risk-Adjusted Assets   $ 131,608           $ 122,851        
Tier 1 Risk-Based Capital Ratio     19.62 %           18.85 %      
Total Risk-Based Capital Ratio     20.78 %           20.03 %      
Tier 1 Leverage Ratio     12.44 %           11.69 %      
                             
OTHER DATA                            
Full Time Equivalent                            
  Employees (FTE's)     16             15        
                             
Stock Price Range                            
  (For the Three Months Ended):                            
  High   $ 61.00           $ 41.00        
  Low   $ 51.00           $ 38.00        
  Close   $ 51.00           $ 40.00        

Contact Information

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