Trinity Bank Reports 2013 First Quarter Net Income up 10.1%

Third Cash Dividend Declared

Marketwired

FORT WORTH, TX--(Marketwired - Apr 26, 2013) - Trinity Bank N.A. (OTCBB: TYBT) today announced operating results for the three months ending March 31, 2013.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $684,000, or $.60 per diluted common share for the first quarter of 2013, compared to $621,000 or $.55 per diluted common share for the first quarter of 2012, an increase of 9.1%. 

President Jeffrey M. Harp stated, "Net Income increased 10.1%. That's the good news. The bad news is that too much of the increase came from one-time items instead of core earnings. Continued economic uncertainty and the Federal Reserve induced low interest rate environment are difficult challenges to overcome. In spite of these factors, Trinity Bank produced a Return on Assets of 1.48% and a Return on Equity of 13.70% for the first quarter of 2013. Both measures continue to compare very favorably to local, state and national peer groups."

"As previously announced, Trinity will distribute its third cash dividend ($.25 per share) to shareholders on April 30, 2013."

                 
Average for Quarter Ending 03/31/2013     03/31/2012     %  
(in 000's)                
                     
Loans $ 88,373     $ 81,136     8.9 %
Deposits $ 163,074     $ 143,067     14.0 %
                     
                     
                     
Actual for Quarter Ending   03/31/2013       03/31/2012     %  
(in 000's)                    
                     
Net Interest Income $ 1,431     $ 1,353     5.8 %
Non-Interest Income   108       96     12.5 %
Non-Interest Expense   (708 )     (642 )   10.3 %
Pretax Preprovision Income $ 831     $ 807     3.0 %
                     
Gain on Sale of Securities and Foreclosed Assets $ 278     $ 17     N/M  
Loan Loss Provision   (172 )     -     N/M  
Pre Tax Income   937       824     13.7 %
Income Tax   (253 )   $ (203 )   24.6 %
Net Income $ 684     $ 621     10.1 %
                     
Diluted Weighted Average Shares   1,141       1,119     1.9 %
                     
Earnings per Share $ 0.60     $ 0.55     9.1 %
                     
Return on Assets   1.48 %     1.52 %      
Return on Equity   13.70 %     13.56 %      
                     

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  
    March 31   %  
EARNINGS SUMMARY   2013   2012   Change  
                   
Interest income     1,537     1,514   1.5 %
Interest expense     106     161   -34.2 %
Net Interest Income     1,431     1,353   5.8 %
                   
Service charges on deposits     39     37   5.4 %
Other income     69     59   16.9 %
Total Non Interest Income     108     96   12.5 %
                   
Salaries and benefits expense     373     331   12.7 %
Occupancy and equipment expense     81     74   9.5 %
Other expense     254     237   7.2 %
Total Non Interest Expense     708     642   10.3 %
                   
Pretax pre-provision income     831     807   3.0 %
                   
Gain on sale of securities     226     17   N/M  
Gain on sale of foreclosed assets     52     0   N/M  
                   
Provision for Loan Losses     172     0   N/M  
                   
Earnings before income taxes     937     824   13.7 %
Provision for income taxes     253     203   24.6 %
Net Earnings     684     621   10.1 %
                   
Basic earnings per share     0.61     0.59   3.4 %
Basic weighted average shares     1,130     1,056      
  outstanding                  
                   
Diluted earnings per share     0.60     0.55   9.1 %
Diluted weighted average shares outstanding     1,141     1,119      
                   
                   
                   
      Average for Quarter  
      Ending March 31   %  
BALANCE SHEET SUMMARY     2013     2012   Change  
                   
Total loans   $ 88,373   $ 81,136   8.9 %
Total short term investments     25,315     18,495   36.9 %
Total investment securities     64,969     57,451   13.1 %
                   
Earning assets     178,657     157,082   13.7 %
                   
Total assets     185,352     163,755   13.2 %
                   
Noninterest bearing deposits     36,699     29,804   23.1 %
Interest bearing deposits     126,375     113,263   11.6 %
                   
Total deposits     163,074     143,067   14.0 %
                   
Fed Funds Purchased and Repurchase Agreements     545     450   21.1 %
                   
Shareholders' equity     20,988     19,416   8.1 %

 

 
 
 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                     
                     
    Average for Quarter Ending
    March 31,   Dec 31,   Sept. 30,   June 30,   March 31,
BALANCE SHEET SUMMARY   2013   2012   2012   2012   2012
                               
Total loans   $ 88,373   $ 85,853   $ 83,792   $ 83,133   $ 81,136
Total short term investments     25,315     25,057     27,327     16,955     18,495
Total investment securities     64,969     59,626     58,929     58,031     57,451
                               
Earning assets     178,657     170,536     170,048     158,119     157,082
                               
Total assets     185,352     177,855     176,847     164,933     163,755
                               
Noninterest bearing deposits     36,699     38,481     35,755     31,337     29,804
Interest bearing deposits     126,375     116,937     119,186     112,538     113,263
                               
Total deposits     163,074     155,418     154,941     143,875     143,067
                               
Fed Funds Purchased and Repurchase Agreements     545     451     395     251     450
                               
Shareholders' equity     20,988     20,529     20,621     19,962     19,416
                               
                               
    Quarter Ended
HISTORICAL EARNINGS SUMMARY   March 31,
2013
  Dec 31,
2012
  Sept. 30,
2012
  June 30,
2012
  March 31,
2012
                               
                               
Interest income     1,537     1,542     1,526     1,554     1,514
Interest expense     106     110     134     151     161
Net Interest Income     1,431     1,432     1,392     1,403     1,353
                               
Service charges on deposits     39     41     37     28     37
Other income     69     64     56     72     59
Total Non Interest Income     108     105     93     100     96
                               
Salaries and benefits expense     373     512     342     309     331
Occupancy and equipment expense     81     84     74     76     74
Other expense     254     122     190     252     237
Total Non Interest Expense     708     718     606     637     642
                               
Pretax pre-provision income     831     819     879     866     807
                               
Gain on sale of securities     226     116     153     0     17
Gain on sale of foreclosed assets     52     0     0     0     0
                               
Provision for Loan Losses     172     45     150     0     0
                               
Earnings before income taxes     937     890     882     866     824
Provision for income taxes     253     225     231     222     203
Net Earnings     684     665     651     644     621

 

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

HISTORICAL BALANCE SHEET
  March 31,
2013
    Dec 31,
2012
    Sept. 30,
2012
    June 30,
2012
    March 31,
2012
 
                                         
Total loans   $ 87,926     $ 93,523     $ 84,625     $ 83,510     $ 84,808  
Total short term investments     32,274       34,511       30,196       16,923       18,681  
Total investment securities     62,908       65,031       58,166       61,625       56,640  
                                         
Total earning assets     183,108       193,065       172,987       162,058       160,129  
                                         
Allowance for loan losses     (1,245 )     (1,073 )     (1,026 )     (1,371 )     (1,371 )
Premises and equipment     1,250       1,287       1,322       1,340       1,368  
Other Assets     6,002       6,474       6,040       6,469       6,706  
                                         
Total assets     189,115       199,753       179,323       168,496       166,832  
                                         
Noninterest bearing deposits     38,673       49,403       36,826       33,721       32,239  
Interest bearing deposits     128,345       128,491       120,298       113,377       114,268  
                                         
Total deposits     167,018       177,894       157,124       147,098       146,507  
                                         
Fed Funds Purchased and Repurchase Agreements     228       559       409       294       203  
Other Liabilities     965       725       910       809       898  
                                         
Total liabilities     168,211       179,178       158,443       148,201       147,608  
                                         
Shareholders' Equity Actual     19,996       19,546       19,775       19,244       18,368  
Unrealized Gain - AFS     908       1,029       1,105       1,051       856  
Total Equity     20,904       20,575       20,880       20,295       19,224  
                                         
                                         
    Quarter Ending  
NONPERFORMING ASSETS   March 31,
2013
    Dec 31,
2012
    Sept. 30,
2012
    June 30,
2012
    March 31,
2012
 
                                         
Nonaccrual loans   $ 0     $ 0     $ 0     $ 528     $ 221  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 0     $ 35     $ 72     $ 0     $ 0  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 0     $ 35     $ 72     $ 528     $ 221  
                                         
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

%
   
0.04

%
   
0.09

%
   
0.63

%
   
0.26
 
%

 

   
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Quarter Ending  
ALLOWANCE FOR   March 31,     Dec 31,     Sept. 30,     June 30,     March 31,  
LOAN LOSSES   2013     2012     2012     2012     2012  
                                         
Balance at beginning of period   $ 1,073     $ 1,026     $ 1,371     $ 1,371     $ 1,371  
Loans charged off     0       0       (499 )     0       0  
Loan recoveries     0       2       4       0       0  
  Net (charge-offs) recoveries     0       2       (495 )     0       0  
Provision for loan losses     172       45       150       0       0  
Balance at end of period   $ 1,245     $ 1,073     $ 1,026     $ 1,371     $ 1,371  
                                         
Allowance for loan losses as a percentage of total loans     1.42 %     1.15 %     1.21 %     1.62 %     1.62 %
Allowance for loan losses as a percentage of nonperforming loans     N/A       3066 %     1425 %     1904 %     620 %
Net charge-offs (recoveries) as a percentage of average loans     N/A       0.00 %     0.59 %     N/A       N/A  
Provision for loan losses as a percentage of average loans    
0.19

%
   
0.05

%
   
0.18

%
   
N/A
     
N/A
 
 
                                         
                                         
                                         
      Quarter Ending  
      March 31,       Dec 31,       Sept. 30,       June 30,       March 31,  
SELECTED RATIOS     2013       2012       2012       2012       2012  
                                         
Return on average assets (annualized)     1.48 %     1.50 %     1.47 %     1.56 %     1.52 %
                                         
Return on average equity (annualized)     13.04 %     12.96 %     12.63 %     12.90 %     12.79 %
                                         
Return on average equity (excluding unrealized gain on investments)     13.70 %     13.79 %     13.35 %     13.61 %     13.56 %
                                         
Average shareholders' equity to average assets     11.32 %     11.54 %     11.66 %     12.10 %     11.86 %
                                         
Yield on earning assets (tax equivalent)     3.65 %     3.84 %     3.82 %     4.19 %     4.14 %
                                         
Cost of interest bearing funds     0.33 %     0.37 %     0.45 %     0.54 %     0.57 %
                                         
Net interest margin (tax equivalent)     3.41 %     3.58 %     3.50 %     3.81 %     3.73 %
                                         
Efficiency ratio (tax equivalent)     42.04       43.97       38.20       39.59       40.71  
                                         
End of period book value per common share     18.47       18.26       19.23       18.79       18.20  
                                         
End of period book value (excluding unrealized gain on investments)     17.66       17.34       18.21       17.82       17.39  
                                         
End of period common shares outstanding     1,132       1,127       1,086       1,080       1,056  

 

                 
                 
                 
    TRINITY BANK N.A.
    (Unaudited)
    (Dollars in thousands, except per share data)
                                 
                                 
    3 Months Ending
    March 31, 2013   March 31, 2012
                                 
                Tax               Tax
    Average           Equivalent   Average           Equivalent
YIELD ANALYSIS   Balance   Interest   Yield   Yield   Balance   Interest   Yield   Yield
                                     
Interest Earning Assets:                                    
Short term investment     25,315   28   0.44%   0.44%     18,495   23   0.50%   0.50%
Investment securities     23,059   191   3.31%   3.31%     16,116   175   4.34%   4.34%
Tax Free securities     41,910   211   2.01%   2.90%     41,335   252   2.44%   3.51%
Loans     88,373   1,107   5.01%   5.01%     81,136   1,064   5.25%   5.25%
                                     
Total Interest Earning Assets     178,657   1,537   3.44%   3.65%     157,082   1,514   3.86%   4.14%
                                     
Noninterest Earning Assets:                                    
Cash and due from banks     3,644                 3,439            
Other assets     4,222                 4,605            
Allowance for loan losses     (1,171)                 (1,371)            
                                     
Total Noninterest Earning Assets     6,695                 6,673            
                                     
Total Assets   $ 185,352               $ 163,755            
                                     
Interest Bearing Liabilities:                                    
Transaction and Money Market accounts     101,715   72   0.28%   0.28%     84,343   108   0.51%   0.51%
Certificates and other time deposits     24,660   34   0.55%   0.55%     28,920   52   0.72%   0.72%
Other borrowings     545   0   0.22%   0.22%     450   1   0.89%   0.89%
                                     
Total Interest Bearing Liabilities     126,920   106   0.33%   0.33%     113,713   161   0.57%   0.57%
                                     
Noninterest Bearing Liabilities                                    
Demand deposits     36,699                 29,804            
Other liabilities     745                 822            
Shareholders' Equity     20,988                 19,416            
                                     
Total Liabilities and Shareholders Equity   $ 185,352               $ 163,755            
                                     
Net Interest Income and Spread         1,431   3.11%   3.32%         1,353   3.29%   3.57%
                                     
Net Interest Margin             3.20%   3.41%             3.44%   3.73%
                                     

 

   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
                         
    March 31           March 31        
    2013     %     2012     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial     47,803     54.37 %     42,633     50.27 %
Real estate:                            
  Commercial     15,239     17.33 %     15,786     18.61 %
  Residential     13,686     15.57 %     16,584     19.55 %
  Construction and development     8,875     10.09 %     7,712     9.09 %
Consumer     2,323     2.64 %     2,093     2.47 %
                             
Total loans (gross)     87,926     100.00 %     84,808     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)     87,926     100.00 %     84,808     100.00 %
                             
                             
      March 31             March 31        
      2013             2012        
REGULATORY CAPITAL DATA                            
Tier 1 Capital   $ 19,996           $ 18,369        
Total Capital (Tier 1 + Tier 2)   $ 21,241           $ 19,722        
Total Risk-Adjusted Assets   $ 118,815           $ 108,247        
Tier 1 Risk-Based Capital Ratio     16.83 %           16.92 %      
Total Risk-Based Capital Ratio     17.88 %           18.22 %      
Tier 1 Leverage Ratio     10.80 %           11.24 %      
                             
OTHER DATA                            
Full Time Equivalent                            
Employees (FTE's)     14             14        
                             
Stock Price Range                            
(For the Three Months Ended):                            
  High   $ 36.00           $ 27.25        
  Low   $ 33.00           $ 25.50        
  Close   $ 36.00           $ 27.25        
                             
Contact:
For information contact:
Richard Burt
Executive Vice President
Trinity Bank
817-763-9966

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