Trinity Bank 2013 2nd Quarter Profits up 8.7%

July 29, 2013

FORT WORTH, TX--(Marketwired - Jul 29, 2013) -  Trinity Bank N.A. ( OTCBB : TYBT ) today announced operating results for the second quarter and the six months ending June 30, 2013.

Results of Operations

For the second quarter of 2013, Trinity Bank, N.A. reported Net Income after Taxes of $700,000, an increase of 8.7% over second quarter 2012 earnings of $644,000. Earnings per diluted common share for the second quarter 2013 amounted to $0.61, an increase of 7.0% over second quarter 2012 results of $.57 per diluted common share.

For the first six months of 2013, Net Income after Taxes was $1,384,000, an increase of 9.4% over the first half of 2012 results of $1,265,000. Earnings per diluted common share for the first half of 2013 were $1.21, an increase of 8.0% over the first half of 2012 results of $1.12 per diluted common share.

President Jeffrey M. Harp stated, "The 8.7% increase in Net Income from the 2Q 2012 represents the first time we have not produced a double digit increase. The culprit continues to be the manipulated interest rate environment and its effect on our investment portfolio."

"We have taken some gains on the sale of securities in the first half of 2013. We have used these gains to bolster our loan loss reserve, to accrue for some expenses we know we will incur over the last half of the year, and to offset some of the decline in investment income."

"On a more positive note, loans are up 9.7%, and the Net Interest Margin increased from 3.41% in 1Q 2013 to 3.63% in 2Q 2013. This is the first significant margin increase in several years. For 2Q 2013, Return on Assets of 1.56% and Return on Equity of 13.76% continue to compare very favorably with local, state, and national peer groups."

                   
Actual for Quarter                  
    3 Months     3 Months        
(in 000's)                  
    06/30/2013     06/30/2012     %  
                       
Net Interest Income   $ 1,483     $ 1,403     5.7 %
Non-Interest Income     113       100     13.0 %
Non-Interest Expense     (746 )     (637 )   17.1 %
Pretax Preprovision Income     850       866     (1.8 %)
                       
Gains on Sale of Securities and Foreclosed Assets     113       0     N/M  
Loan Loss Provision     0       0     N/M  
Pretax Income     963       866     11.2 %
Income Tax     (263 )     (222 )   18.5 %
Net Income   $ 700     $ 644     8.7 %
                       
                       
                       
Actual for 6 months                      
    6 Months     6 Months        
(in 000's)                  
    06/30/2013     06/30/2012     %  
                       
Net Interest Income   $ 2,913     $ 2,757     5.7 %
Non-Interest Income     222       196     13.3 %
Non-Interest Expense     (1,453 )     (1,279 )   13.6 %
Pretax Preprovision Income     1,682       1,674     .5 %
                       
Gains on Sale of Securities and Foreclosed Assets     338       17     N/M  
Gains on Sale of Foreclosed Assets     52       0     N/M  
Loan Loss Provision     (172 )     0     N/M  
Pretax Income     1,900       1,691     12.4 %
Income Tax     (516 )     (426 )   21.1 %
Net Income   $ 1,384     $ 1,265     9.4 %
                       

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     Six Months Ended  
    June 30   %     June 30   %  
EARNINGS SUMMARY   2013   2012   Change     2013   2012   Change  
                                     
Interest income     1,583     1,554   1.9 %     3,119     3,069   1.6 %
Interest expense     100     151   -33.8 %     206     312   -34.0 %
Net Interest Income     1,483     1,403   5.7 %     2,913     2,757   5.7 %
                                     
Service charges on deposits     41     28   46.4 %     80     65   23.1 %
Other income     72     72   0.0 %     142     131   8.4 %
Total Non Interest Income     113     100   13.0 %     222     196   13.3 %
                                     
Salaries and benefits expense     365     309   18.1 %     738     640   15.3 %
Occupancy and equipment expense     77     76   1.3 %     158     150   5.3 %
Other expense     304     252   20.6 %     557     489   13.9 %
Total Non Interest Expense     746     637   17.1 %     1,453     1,279   13.6 %
                                     
Pretax pre-provision income     850     866   -1.8 %     1,682     1,674   0.5 %
                                     
Gain on sale of securities     113     0   N/M       338     17   N/M  
Gain on sale of foreclosed assets     0     0   N/M       52     0   N/M  
                                     
Provision for Loan Losses     0     0   N/M       172     0   N/M  
                                     
Earnings before income taxes     963     866   11.2 %     1,900     1,691   12.4 %
Provision for income taxes     263     222   18.5 %     516     426   21.1 %
Net Earnings     700     644   8.7 %     1,384     1,265   9.4 %
                                     
Basic earnings per share     0.62     0.59   5.1 %     1.22     1.19   2.5 %
Basic weighted average shares outstanding     1,132
    1,078
          1,131
    1,067
     
                                     
Diluted earnings per share     0.61     0.57   7.0 %     1.21     1.12   8.0 %
Diluted weighted average shares outstanding     1,143     1,136           1,142     1,125      
                                     
                                     
                                     
    Average for Quarter     Average for Six Months  
    Ending June 30   %     Ending June 30   %  
BALANCE SHEET SUMMARY   2013   2012   Change     2013   2012   Change  
                                     
Total loans   $ 91,227   $ 83,133   9.7 %   $ 89,808   $ 82,134   9.3 %
Total short term investments     15,843     16,955   -6.6 %     20,553     17,725   16.0 %
Total investment securities     66,379     58,031   14.4 %     65,677     57,740   13.7 %
                                     
Earning assets     173,449     158,119   9.7 %     176,038     157,599   11.7 %
                                     
Total assets     179,392     164,933   8.8 %     182,273     164,343   10.9 %
                                     
Noninterest bearing deposits     38,087     31,337   21.5 %     37,400     30,567   22.4 %
Interest bearing deposits     119,269     112,538   6.0 %     122,799     112,904   8.8 %
                                     
Total deposits     157,356     143,875   9.4 %     160,199     143,471   11.7 %
                                     
Fed Funds Purchased and Repurchase Agreements     229     251   -8.8 %     386     351   10.0 %
                                     
Shareholders' equity     21,281     19,962   6.6 %     21,135     19,689   7.3 %
 
 
 
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   2013   2013   2012   2012   2012
                               
Total loans   $ 91,227   $ 88,373   $ 85,853   $ 83,792   $ 83,133
Total short term investments     15,843     25,315     25,057     27,327     16,955
Total investment securities     66,379     64,969     59,626     58,929     58,031
                               
Earning assets     173,449     178,657     170,536     170,048     158,119
                               
Total assets     179,392     185,352     177,855     176,847     164,933
                               
Noninterest bearing deposits     38,087     36,699     38,481     35,755     31,337
Interest bearing deposits     119,269     126,375     116,937     119,186     112,538
                               
Total deposits     157,356     163,074     155,418     154,941     143,875
                               
Fed Funds Purchased and Repurchase Agreements     229     545     451     395     251
                               
Shareholders' equity     21,281     20,988     20,529     20,621     19,962
                               
                               
    Quarter Ended
HISTORICAL EARNINGS SUMMARY   June 30,
2013
  March 31,
2013
  Dec 31,
2012
  Sept. 30,
2012
  June 30,
2012
                               
                               
Interest income     1,583     1,537     1,542     1,526     1,554
Interest expense     100     106     110     134     151
Net Interest Income     1,483     1,431     1,432     1,392     1,403
                               
Service charges on deposits     41     39     41     37     28
Other income     72     69     64     56     72
Total Non Interest Income     113     108     105     93     100
                               
Salaries and benefits expense     365     373     512     342     309
Occupancy and equipment expense     77     81     84     74     76
Other expense     304     254     122     190     252
Total Non Interest Expense     746     708     718     606     637
                               
Pretax pre-provision income     850     831     819     879     866
                               
Gain on sale of securities     113     226     116     153     0
Gain on sale of foreclosed assets     0     52     0     0     0
                               
Provision for Loan Losses     0     172     45     150     0
                               
Earnings before income taxes     963     937     890     882     866
Provision for income taxes     263     253     225     231     222
Net Earnings     700     684     665     651     644
...
   
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Ending Balance  

HISTORICAL BALANCE SHEET
  June 30,
2013
    March 31,
2013
    Dec 31,
2012
    Sept. 30,
2012
    June 30,
2012
 
                                         
Total loans   $ 94,432     $ 87,926     $ 93,523     $ 84,625     $ 83,510  
Total short term investments     7,895       32,274       34,511       30,196       16,923  
Total investment securities     67,506       62,908       65,031       58,166       61,625  
                                         
Total earning assets     169,833       183,108       193,065       172,987       162,058  
                                         
Allowance for loan losses     (1,249 )     (1,245 )     (1,073 )     (1,026 )     (1,371 )
Premises and equipment     1,264       1,250       1,287       1,322       1,340  
Other Assets     4,885       6,002       6,474       6,040       6,469  
                                         
Total assets     174,733       189,115       199,753       179,323       168,496  
                                         
Noninterest bearing deposits     37,823       38,673       49,403       36,826       33,721  
Interest bearing deposits     115,922       128,345       128,491       120,298       113,377  
                                         
Total deposits     153,745       167,018       177,894       157,124       147,098  
                                         
Fed Funds Purchased and Repurchase Agreements     229       228       559       409       294  
Other Liabilities     277       965       725       910       809  
                                         
Total liabilities     154,251       168,211       179,178       158,443       148,201