Trinity Bank Reports Record Earnings and Fourth Cash Dividend

36th Consecutive Quarter of Profit Improvement

Marketwired

FORT WORTH, TX--(Marketwired - Oct 24, 2013) - Trinity Bank, N.A. (OTCBB: TYBT) today announced operating results for the third quarter and the nine months ending September 30, 2013.

Results of Operations

For the third quarter of 2013, Trinity Bank, N.A. reported Net Income after Taxes of $721,000, an increase of 10.8% over third quarter 2012 earnings of $651,000. Earnings per diluted common share for the third quarter 2013 amounted to $.63, an increase of 10.5% over third quarter 2012 results of $.57 per diluted common share.

For the first nine months of 2013, Net Income after Taxes was $2,105,000, an increase of 9.9% over the nine month 2012 results of $1,915,000. Earnings per diluted common share for the first nine months of 2013 were $1.84, an increase of 8.9% over 2012 nine months results of $1.69 per diluted common share.

Jeffrey M. Harp, President, stated, "Operating results for the quarter ending September 30, 2013 were good. Return on Assets -- 1.61% -- and Return on Equity -- 14.04% -- for this quarter represent new highs for Trinity Bank. The primary factors producing these returns are:

1) a 12.9% increase in average loans over 3rd Q 2012,
2) increase in Net Interest Margin - from 3.50% to 3.69%, and
3) excellent operating expense control - Efficiency Ratio of 37%.

"As previously announced, Trinity Bank will pay its fourth cash dividend on October 31st to shareholders of record as of October 15th. This dividend of $.28 per share represents a 12% increase over the $.25 dividend that was paid in April, 2013. The Board of Directors will continue to review dividend policy on a semi-annual basis."

                   
                   
Average for Quarter Ending   09/30/2013     09/30/2012     %  
(in 000's)                  
                   
Loans   $ 94,567     $ 83,792     12.9 %
Deposits   $ 158,363     $ 154,941     2.2 %
                       
                       
                       
Actual for Quarter Ending     09/30/2013       09/30/2012       %
(in 000's)                      
                       
Net Interest Income   $ 1,518     $ 1,392     9.1 %
Non-Interest Income     110       93     18.3 %
Non-Interest Expense     (637 )     (606 )   5.1 %
Pretax Preprovision Income   $ 991     $ 879     12.7 %
                       
Gain on Sale of Securities and Foreclosed Assets   $ 21     $ 153     N/M  
Loan Loss Provision     (20 )     (150 )   N/M  
Pre Tax Income     992       882     12.5 %
Income Tax     (271 )     (231 )   17.3 %
Net Income   $ 721     $ 651     10.8 %
                       
Diluted Weighted Average Shares     1,142       1,137        
                       
Earnings per Share   $ 0.63     $ 0.57     10.5 %
                       
Return on Assets     1.61 %     1.47 %      
Return on Equity     14.04 %     12.63 %      
                       
                       

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   2013   2012   % Change     2013   2012   % Change  
                             
Interest income   1,616   1,526   5.9 %   4,735   4,595   3.0 %
Interest expense   98   134   -26.9 %   304   446   -31.8 %
Net Interest Income   1,518   1,392   9.1 %   4,431   4,149   6.8 %
                             
Service charges on deposits   43   37   16.2 %   123   112   9.8 %
Other income   67   56   19.6 %   209   177   18.1 %
Total Non Interest Income   110   93   18.3 %   332   289   14.9 %
                             
Salaries and benefits expense   385   342   12.6 %   1,122   982   14.3 %
Occupancy and equipment expense   75   74   1.4 %   233   223   4.5 %
Other expense   177   190   -6.8 %   736   682   7.9 %
Total Non Interest Expense   637   606   5.1 %   2,091   1,887   10.8 %
                             
Pretax pre-provision income   991   879   12.7 %   2,672   2,551   4.7 %
                             
Gain on sale of securities   21   153   N/M     359   170   N/M  
Gain on sale of foreclosed assets   0   0   N/M     52   0   N/M  
                             
Provision for Loan Losses   20   150   -86.7 %   192   150   28.0 %
                             
Earnings before income taxes   992   882   12.5 %   2,891   2,571   12.4 %
Provision for income taxes   271   231   17.3 %   786   656   19.8 %
Net Earnings   721   651   10.8 %   2,105   1,915   9.9 %
                             
Basic earnings per share   0.64   0.60   6.2 %   1.86   1.79   3.9 %
Basic weighted average shares outstanding   1,131   1,079         1,132   1,071      
                             
Diluted earnings per share   0.63   0.57   10.5 %   1.84   1.69   8.9 %
Diluted weighted average shares outstanding   1,142   1,137         1,143   1,132      
                             
                             
                             
    Average for Quarter     Average for Nine Months  
    September 30         September 30      
BALANCE SHEET SUMMARY 2013   2012   % Change     2013   2012   % Change  
                             
Total loans   $ 94,567   $ 83,792   12.9 %   $ 91,376   $ 82,691   10.5 %
Total short term investments     14,693     27,327   -46.2 %     18,577     20,949   -11.3 %
Total investment securities     65,064     58,929   10.4 %     66,448     58,140   14.3 %
                                     
Earning assets     174,324     170,048   2.5 %     176,401     161,780   9.0 %
                                     
Total assets     179,452     176,847   1.5 %     181,398     168,541   7.6 %
                                     
Noninterest bearing deposits     42,308     35,755   18.3 %     39,052     32,695   19.4 %
Interest bearing deposits     116,055     119,186   -2.6 %     120,528     114,627   5.1 %
                                     
Total deposits     158,363     154,941   2.2 %     159,580     147,322   8.3 %
                                     
Fed Funds Purchased and Repurchase Agreements     229     395   -42.0 %     333     366   -9.0 %
                                     
Shareholders' equity     20,548     20,621   -0.4 %     20,937     20,002   4.7 %
                                     
                                     
 
 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                     
                     
    Average for Quarter Ending
BALANCE SHEET SUMMARY   Sept. 30, 2013   June 30, 2013   March 31, 2013   Dec 31, 2012   Sept. 30, 2012
                     
Total loans   $ 94,567   $ 91,227   $ 88,373   $ 85,853   $ 83,792
Total short term investments     14,693     15,843     25,315     25,057     27,327
Total investment securities     65,064     66,379     64,969     59,626     58,929
                               
Earning assets     174,324     173,449     178,657     170,536     170,048
                               
Total assets     179,452     179,392     185,352     177,855     176,847
                               
Noninterest bearing deposits     42,308     38,087     36,699     38,481     35,755
Interest bearing deposits     116,055     119,269     126,375     116,937     119,186
                               
Total deposits     158,363     157,356     163,074     155,418     154,941
                               
Fed Funds Purchased and Repurchase Agreements     229     229     545     451     395
                               
Shareholders' equity     20,548     21,281     20,988     20,529     20,621
                               
                     
    Quarter Ended
HISTORICAL EARNINGS SUMMARY   Sept. 30, 2013   June 30, 2013   March 31, 2013   Dec 31, 2012   Sept. 30, 2012
                     
                     
Interest income   1,616   1,583   1,537   1,542   1,526
Interest expense   98   100   106   110   134
Net Interest Income   1,518   1,483   1,431   1,432   1,392
                     
Service charges on deposits   43   41   39   41   37
Other income   67   72   69   64   56
Total Non Interest Income   110   113   108   105   93
                     
Salaries and benefits expense   385   365   373   512   342
Occupancy and equipment expense   75   77   81   84   74
Other expense   177   304   254   122   190
Total Non Interest Expense   637   746   708   718   606
                     
Pretax pre-provision income   991   850   831   819   879
                     
Gain on sale of securities   21   113   226   116   153
Gain on sale of foreclosed assets   0   0   52   0   0
                     
Provision for Loan Losses   20   0   172   45   150
                     
Earnings before income taxes   992   963   937   890   882
Provision for income taxes   271   263   253   225   231
Net Earnings   721   700   684   665   651
                     
                     
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                     
                     
                     
  Ending Balance  
HISTORICAL BALANCE SHEET Sept. 30, 2013   June 30, 2013   March 31, 2013   Dec 31, 2012   Sept. 30, 2012  
                     
Total loans $ 93,934   $ 94,432   $ 87,926   $ 93,523   $ 84,625  
Total short term investments   18,404     7,895     32,274     34,511     30,196  
Total investment securities   63,966     67,506     62,908     65,031     58,166  
                               
Total earning assets   176,304     169,833     183,108     193,065     172,987  
                               
Allowance for loan losses   (1,271 )   (1,249 )   (1,245 )   (1,073 )   (1,026 )
Premises and equipment   1,232     1,264     1,250     1,287     1,322  
Other Assets   7,175     4,885     6,002     6,474     6,040  
                               
Total assets   183,440     174,733     189,115     199,753     179,323  
                               
Noninterest bearing deposits   44,398     37,823     38,673     49,403     36,826  
Interest bearing deposits   117,411     115,922     128,345     128,491     120,298  
                               
Total deposits   161,809     153,745     167,018     177,894     157,124  
                               
Fed Funds Purchased and Repurchase Agreements   229     229     228     559     409  
Other Liabilities   590     277     965     725     910  
                               
Total liabilities   162,628     154,251     168,211     179,178     158,443  
                               
Shareholders' Equity Actual   21,052     20,656     19,996     19,546     19,775  
Unrealized Gain - AFS   (240 )   (174 )   908     1,029     1,105  
  Total Equity   20,812     20,482     20,904     20,575     20,880  
                               
                               
    Quarter Ending  
NONPERFORMING ASSETS   Sept. 30, 2013     June 30, 2013     March 31, 2013     Dec 31, 2012     Sept. 30, 2012  
                               
Nonaccrual loans   $ 402     $ 429     $ 0     $ 0     $ 0  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 0     $ 0     $ 0     $ 35     $ 72  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 402     $ 429     $ 0     $ 35     $ 72  
                                         
Accruing loans past due 30-89 days   $ 0     $ 1,097     $ 0     $ 0     $ 0  
                                         
Total nonperforming assets as a percentage of loans and foreclosed assets     0.43 %     0.45 %     0.00 %     0.04 %     0.09 %
                                         
                                         
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
                               
                               
    Quarter Ending  
ALLOWANCE FOR LOAN LOSSES   Sept. 30,
2013
    June 30,
2013
    March 31,
2013
    Dec 31,
2012
    Sept. 30,
2012
 
                               
Balance at beginning of period   $ 1,249     $ 1,245     $ 1,073     $ 1,026     $ 1,371  
Loans charged off     0       0       0       0       (499 )
Loan recoveries     2       4       0       2       4  
  Net (charge-offs) recoveries     2       4       0       2       (495 )
Provision for loan losses     20       0       172       45       150  
Balance at end of period   $ 1,271     $ 1,249     $ 1,245     $ 1,073     $ 1,026  
                                         
Allowance for loan losses                                        
as a percentage of total loans     1.35 %     1.32 %     1.42 %     1.15 %     1.21 %
Allowance for loan losses as a percentage of nonperforming loans     316 %     N/A       N/A       3066 %     1425 %
Net charge-offs (recoveries) as a percentage of average loans     N/A       N/A       N/A       0.00 %     0.59 %
Provision for loan losses as a percentage of average loans     0.02 %     N/A       0.19 %     0.05 %     0.18 %
                                         
                                         
                               
    Quarter Ending  

SELECTED RATIOS
  Sept. 30,
2013
    June 30,
2013
    March 31,
2013
    Dec 31,
2012
    Sept. 30,
2012
 
                               
Return on average assets (annualized)   1.61 %   1.56 %   1.48 %   1.50 %   1.47 %
                               
Return on average equity (annualized)   14.04 %   13.16 %   13.04 %   12.96 %   12.63 %
                               
Return on average equity (excluding unrealized gain on investments)   13.74 %   13.76 %   13.70 %   13.79 %   13.35 %
                               
Average shareholders' equity to average assets   11.45 %   11.86 %   11.32 %   11.54 %   11.66 %
                               
Yield on earning assets (tax equivalent)   3.92 %   3.87 %   3.65 %   3.84 %   3.82 %
                               
Cost of interest bearing funds   0.34 %   0.34 %   0.33 %   0.37 %   0.45 %
                               
Net interest margin (tax equivalent)   3.69 %   3.63 %   3.41 %   3.58 %   3.50 %
                               
Efficiency ratio (tax equivalent)   36.99     44.14     42.04     43.97     38.20  
                               
End of period book value per common share   18.40     18.09     18.47     18.26     19.23  
                               
End of period book value (excluding unrealized gain on investments)   18.61     18.25     17.66     17.34     18.21  
                               
End of period common shares outstanding   1,131     1,132     1,132     1,127     1,086  
                               
                               
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                                             
                                             
    3 Months Ending  
    September 30, 2013     September 30, 2012  
                                             


YIELD ANALYSIS
 
Average
Balance
   

Interest
 

Yield
    Tax
Equivalent
Yield
   
Average
Balance
   

Interest
 

Yield
    Tax
Equivalent
Yield
 
                                             
Interest Earning Assets:                                            
Short term investment     14,693     18   0.49 %   0.49 %     27,327     29   0.42 %   0.42 %
Investment securities     22,791     185   3.25 %   3.25 %     20,433     185   3.62 %   3.62 %
Tax Free securities     42,273     213   2.02 %   2.90 %     38,496     224   2.33 %   3.35 %
Loans     94,567     1,200   5.08 %   5.08 %     83,792     1,088   5.19 %   5.19 %
                                                 
Total Interest Earning Assets     174,324     1,616   3.71 %   3.92 %     170,048     1,526   3.59 %   3.82 %
                                                 
Noninterest Earning Assets:                                                
Cash and due from banks     3,616                       3,460                  
Other assets     2,769                       4,585                  
Allowance for loan losses     (1,257 )                     (1,246 )                
                                                 
Total Noninterest Earning Assets     5,128                       6,799                  
                                                 
Total Assets   $ 179,452                     $ 176,847                  
                                                 
Interest Bearing Liabilities:                                                
Transaction and Money Market accounts     90,622     64   0.28 %   0.28 %     91,440     85   0.37 %   0.37 %
Certificates and other time deposits     25,433     34   0.53 %   0.53 %     27,746     49   0.71 %   0.71 %
Other borrowings     229     0   0.25 %   0.25 %     395     0   N/A     N/A  
                                                 
Total Interest Bearing Liabilities     116,284     98   0.34 %   0.34 %     119,581     134   0.45 %   0.45 %
                                                 
Noninterest Bearing Liabilities                                                
Demand deposits     42,308                       35,755                  
Other liabilities     312                       890                  
Shareholders' Equity     20,548                       20,621                  
                                                 
Total Liabilities and Shareholders Equity   $ 179,452                     $ 176,847                  
                                                 
Net Interest Income and Spread           1,518   3.37 %   3.58 %           1,392   3.14 %   3.37 %
                                                 
Net Interest Margin               3.48 %   3.69 %               3.27 %   3.50 %
                                                 
                                                 
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                     
                     
    September 30,
2013
 
%
    September 30,
2012
 
%
 
LOAN PORTFOLIO                    
                     
Commercial and industrial   52,561   55.96 %   42,236   49.91 %
Real estate:                    
  Commercial   15,827   16.85 %   16,227   19.18 %
  Residential   16,333   17.39 %   17,697   20.91 %
  Construction and development   6,810   7.25 %   6,127   7.24 %
Consumer   2,403   2.56 %   2,338   2.76 %
                     
Total loans (gross)   93,934   100.00 %   84,625   100.00 %
                     
Unearned discounts   0   0.00 %   0   0.00 %
                     
Total loans (net)   93,934   100.00 %   84,625   100.00 %
                     
                     
    September 30,
2013
        September 30,
2012
     
REGULATORY CAPITAL DATA                    
Tier 1 Capital   $ 21,052         $ 19,775      
Total Capital (Tier 1 + Tier 2)   $ 22,323         $ 20,801      
Total Risk-Adjusted Assets   $ 122,065         $ 111,236      
Tier 1 Risk-Based Capital Ratio     17.25 %         17.78 %    
Total Risk-Based Capital Ratio     18.29 %         18.70 %    
Tier 1 Leverage Ratio     11.77 %         11.18 %    
                         
OTHER DATA                        
Full Time Equivalent Employees (FTE's)     14           14      
                         
Stock Price Range                        
(For the Three Months Ended):                        
  High   $ 36.00         $ 30.50      
  Low   $ 32.50         $ 30.00      
  Close   $ 35.75         $ 30.50      
                           
                           
Contact:
For information contact:
Richard Burt
Executive Vice President
Trinity Bank
817-763-9966

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