Trinity Bank Reports Record Earnings and Both Regular and Special Cash Dividends

Marketwired

FORT WORTH, TX--(Marketwire - Oct 31, 2012) - Trinity Bank, N.A. (OTCBB: TYBT) today announced operating results for the third quarter and the nine months ending September 30, 2012.

Results of Operations

For the third quarter of 2012, Trinity Bank, N.A. reported Net Income after Taxes of $651,000, an increase of 12.2% over third quarter 2011 earnings of $580,000. Earnings per diluted common share for the third quarter 2012 amounted to $.57, an increase of 11.8% over third quarter 2011 results of $.51 per diluted common share.

For the first nine months of 2012, Net Income after Taxes was $1,915,000, an increase of 14.2% over the nine month 2011 results of $1,677,000. Earnings per diluted common share for the first nine months of 2012 were $1.69, an increase of 14.2% over 2011 nine months results of $1.48 per diluted common share.

Jeffrey M. Harp, President, stated, "Third quarter results were good. Return on Assets and Return on Equity both remain well above national and local peer group results. During the third quarter of 2012, Trinity incurred its first loan losses -- 3 loans charged off totaling $495,000. We do not feel that this is the beginning of a trend or an indication that our credit underwriting standards need to be strengthened. It is highly unusual for any bank to go more than 9 years without a single loss. On a positive note, we had accumulated enough reserves to take the losses without significantly affecting current income."

Also from a positive perspective, on October 9th, Trinity Bank declared a $.20 regular dividend and a $1.00 special dividend payable November 15, 2012 to shareholders of record on October 31, 2012. 

Harp reported, "We are pleased to provide a tangible return to our shareholders at a time when tax rates are probably at an all-time low. After the dividend, our Capital ratio remains strong, and we are in a position to take advantage of any opportunities that become available to increase shareholder value."

                   
Actual for Quarter Ending                  
(in 000's except for Earnings per Share)                  
                   
    3 Months     3 Months        
                   
    9-30-12     9-30-11     %  
                       
Net Income   $ 651     $ 580     12.2 %
Diluted Weighted Average Shares     1,137       1,131        
Earnings per Share   $ 0.57     $ 0.51     11.8 %
                       
Return on Assets     1.47 %     1.50 %      
Return on Equity     13.35 %     13.26 %      
                       
Actual for Nine Months Ending                      
                       
    9 Months     9 Months        
                   
    9-30-12     9-30-11        
                       
Net Income   $ 1,915     $ 1,677     14.2 %
Diluted Weighted Average Shares     1,132       1,131        
Earnings per Share   $ 1.69     $ 1.48     14.2 %
                       

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   2012   2011   Change     2012   2011   Change  
                                     
Interest income     1,526     1,471   3.7 %     4,595     4,371   5.1 %
Interest expense     134     203   -34.0 %     446     646   -31.0 %
Net Interest Income     1,392     1,268   9.8 %     4,149     3,725   11.4 %
                                     
Provision for Loan Losses     150     0   N/A       150     0   N/A  
                                     
Service charges on deposits     37     35   5.7 %     112     101   10.9 %
Net gain on securities available for sale     153     40   282.5 %     170     97   75.3 %
Other income     56     92   -39.1 %     177     232   -23.7 %
Total Non Interest Income     246     167   47.3 %     459     430   6.7 %
                                     
Salaries and benefits expense     342     317   7.9 %     982     969   1.3 %
Occupancy and equipment expense     74     82   -9.8 %     223     236   -5.5 %
Other expense     190     271   -29.9 %     682     749   -8.9 %
Total Non Interest Expense     606     670   -9.6 %     1,887     1,954   -3.4 %
                                     
Earnings before income taxes     882     765   15.3 %     2,571     2,201   16.8 %
Provision for income taxes     231     185   24.9 %     656     524   25.2 %
Net Earnings     651     580   12.2 %     1,915     1,677   14.2 %
                                     
Basic earnings per share     0.60     0.54   11.1 %     1.79     1.57   14.0 %
Basic weighted average shares outstanding     1,079     1,070           1,071     1,070      
                                     
Diluted earnings per share     0.57     0.51   11.8 %     1.69     1.48   14.2 %
Diluted weighted average shares outstanding     1,137     1,131           1,132     1,131      
                                     
                                     
                                     
    Average for Quarter     Average for Nine Months  
    Ending September 30   %     Ending September 30   %  
BALANCE SHEET SUMMARY   2012   2011   Change     2012   2011   Change  
                                     
Total loans   $ 83,792   $ 74,941   11.8 %   $ 82,691   $ 72,588   13.9 %
Total short term investments     27,327     21,204   28.9 %     20,949     19,727   6.2 %
Total investment securities     58,929     51,908   13.5 %     58,140     53,076   9.5 %
                                     
Earning assets     170,048     148,053   14.9 %     161,780     145,391   11.3 %
                                     
Total assets     176,847     154,363   14.6 %     168,541     152,810   10.3 %
                                     
Noninterest bearing deposits     35,755     27,706   29.1 %     32,695     26,076   25.4 %
Interest bearing deposits     119,186     107,061   11.3 %     114,627     107,902   6.2 %
                                     
Total deposits     154,941     134,767   15.0 %     147,322     133,978   10.0 %
                                     
Fed Funds Purchased and Repurchase Agreements     395     411   -3.9 %     366     476   -23.1 %
                                     
Shareholders' equity     20,621     18,401   12.1 %     20,002     17,692   13.1 %
                                     
 
 
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   2012     2012   2012   2011   2011
                                 
Total loans   $ 83,792     $ 83,133   $ 81,136   $ 76,426   $ 74,941
Total short term investments     27,327       16,955     18,495     26,760     21,204
Total investment securities     58,929       58,031     57,451     56,751     51,908
                                 
Earning assets     170,048       158,119     157,082     159,937     148,053
                                 
Total assets     176,847       164,933     163,755     166,392     154,363
                                 
Noninterest bearing deposits     35,755       31,337     29,804     32,552     27,706
Interest bearing deposits     119,186       112,538     113,263     113,758     107,061
                                 
Total deposits     154,941       143,875     143,067     146,310     134,767
                                 
Fed Funds Purchased and Repurchase Agreements     395       251     450     584     411
                                 
Shareholders' equity     20,621       19,962     19,416     18,690     18,401
                                 
                                 
    Quarter Ended
     
    Sept. 30,     June 30,   March 31,   Dec 31,   Sept. 30,
HISTORICAL EARNINGS SUMMARY   2012     2012   2012   2011   2011
                                 
                                 
Interest income     1,526       1,554     1,514     1,509     1,471
Interest expense     134       151     161     199     203
Net Interest Income     1,392       1,403     1,353     1,310     1,268
                                 
Provision for Loan Losses     150       0     0     0     0
                                 
Service charges on deposits     37       28     37     37     35
Net gain on securities available for sale     153       0     17     18     40
Other income     56       72     59     55     92
Total Non Interest Income     246       100     113     110     167
                                 
Salaries and benefits expense     342       309     331     450     317
Occupancy and equipment expense     74       76     74     81     82
FDIC expense     (59 )     14     14     45     45
Other expense     249       238     223     45     226
Total Non Interest Expense     606       637     642     621     670
                                 
Earnings before income taxes     882       866     824     799     765
Provision for income taxes     231       222     203     194     185
Net Earnings     651       644     621     605     580
                                 
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
    Ending Balance  
       
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
HISTORICAL BALANCE SHEET   2012     2012     2012     2011     2011  
                                         
Total loans   $ 84,625     $ 83,510     $ 84,808     $ 81,272     $ 76,180  
Total short term investments     30,196       16,923       18,681       19,279       27,716  
Total investment securities     58,166       61,625       56,640       58,540       53,370  
                                         
Total earning assets     172,987       162,058       160,129       159,091       157,266  
                                         
Allowance for loan losses     (1,026 )     (1,371 )     (1,371 )     (1,371 )     (1,371 )
Premises and equipment     1,322       1,340       1,368       1,378       1,413  
Other Assets     6,040       6,469       6,706       7,843       6,209  
                                         
Total assets     179,323       168,496       166,832       166,941       163,517  
                                         
Noninterest bearing deposits     36,826       33,721       32,239       34,203       33,733  
Interest bearing deposits     120,298       113,377       114,268       112,163       109,722  
                                         
Total deposits     157,124       147,098       146,507       146,366       143,455  
                                         
Fed Funds Purchased and Repurchase Agreements     409       294       203       713       398  
Other Liabilities     910       809       898       792       896  
                                         
Total liabilities     158,443       148,201       147,608       147,871       144,749  
                                         
Shareholders' Equity Actual     19,775       19,244       18,368       18,025       17,667  
Unrealized Gain - AFS     1,105       1,051       856       1,045       1,100  
  Total Equity     20,880       20,295       19,224       19,070       18,767  
                                         
                                         
    Quarter Ending  
       
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
NONPERFORMING ASSETS   2012     2012     2012     2011     2011  
                                         
Nonaccrual loans   $ 0     $ 528     $ 221     $ 653     $ 735  
Restructured loans   $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets   $ 72     $ 0     $ 0     $ 0     $ 0  
Accruing loans past due 90 days or more   $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets   $ 72     $ 528     $ 221     $ 653     $ 735  
                                         
Accruing loans past due 30-89 days   $ 0     $ 0     $ 0     $ 0     $ 0  
                                         
Total nonperforming assets as a percentage of loans and foreclosed assets     0.09 %     0.63 %     0.26 %     0.80 %     0.96 %
                                         
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                               
    Quarter Ending  
ALLOWANCE FOR   Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
LOAN LOSSES   2012     2012     2012     2011     2011  
                                         
Balance at beginning of period   $ 1,371     $ 1,371     $ 1,371     $ 1,371     $ 1,371  
Loans charged off     (499 )     0       0       0       0  
Loan recoveries     4       0       0       0       0  
Net (charge-offs) recoveries     (495 )     0       0       0       0  
Provision for loan losses     150       0       0       0       0  
Balance at end of period   $ 1,026     $ 1,371     $ 1,371     $ 1,371     $ 1,371  
                                         
Allowance for loan losses as a percentage of total loans     1.21 %     1.64 %     1.62 %     1.69 %     1.80 %
Allowance for loan losses as a percentage of nonperforming loans     1425.00 %     259.66 %     620.36 %     209.95 %     186.53 %
Net charge-offs (recoveries) as a percentage of average loans     0.59 %     N/A       N/A       N/A       N/A  
Provision for loan losses as a percentage of average loans     0.18 %     N/A       N/A       N/A       N/A  
                                         
                                         
                                         
    Quarter Ending  
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
SELECTED RATIOS   2012     2012     2012     2011     2011  
                                         
Return on average assets (annualized)     1.47 %     1.56 %     1.52 %     1.45 %     1.50 %
                                         
Return on average equity (annualized)     12.63 %     12.90 %     12.79 %     12.95 %     12.61 %
                                         
Return on average equity (excluding unrealized gain on investments)     13.35 %     13.61 %     13.56 %     13.62 %     13.26 %
                                         
Average shareholders' equity to average assets     11.66 %     12.10 %     11.86 %     11.23 %     11.92 %
                                         
Yield on earning assets (tax equivalent)     3.82 %     4.19 %     4.14 %     4.05 %     4.26 %
                                         
Cost of interest bearing funds     0.45 %     0.54 %     0.57 %     0.70 %     0.76 %
                                         
Net interest margin (tax equivalent)     3.50 %     3.81 %     3.73 %     3.56 %     3.72 %
                                         
Efficiency ratio (tax equivalent)     38.20       39.59       40.71       40.55       43.42  
                                         
End of period book value per common share     19.23       18.79       18.20       18.05       17.60  
                                         
End of period book value (excluding unrealized gain on investments)     18.21       17.82       17.39       17.07       16.57  
                                         
End of period common shares outstanding     1,086       1,080       1,056       1,056       1,066  
                                         
 
 
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
                                             
    3 Months Ending  
    September 30, 2012     September 30, 2011  
                                             
                    Tax                     Tax  
    Average               Equivalent     Average               Equivalent  
YIELD ANALYSIS   Balance     Interest   Yield     Yield     Balance     Interest   Yield     Yield  
                                                 
Interest Earning Assets:                                                
Short term investment     27,327     29   0.42 %   0.42 %     21,204     29   0.55 %   0.55 %
Investment securities     20,433     185   3.62 %   3.62 %     16,973     184   4.34 %   4.34 %
Tax Free securities     38,496     224   2.33 %   3.35 %     34,935     245   2.81 %   4.04 %
Loans     83,792     1,088   5.19 %   5.19 %     74,941     1,013   5.41 %   5.41 %
                                                 
Total Interest Earning Assets     170,048     1,526   3.59 %   3.82 %     148,053     1,471   3.97 %   4.26 %
                                                 
Noninterest Earning Assets:                                                
Cash and due from banks     3,460                       3,332                  
Other assets     4,585                       4,349                  
Allowance for loan losses     (1,246 )                     (1,371 )                
                                                 
Total Noninterest Earning Assets     6,799                       6,310                  
                                                 
Total Assets   $ 176,847                     $ 154,363                  
                                                 
Interest Bearing Liabilities:                                                
Transaction and Money Market accounts     91,440     85   0.37 %   0.37 %     78,162     135   0.69 %   0.69 %
Certificates and other time deposits     27,746     49   0.71 %   0.71 %     28,899     68   0.94 %   0.94 %
Other borrowings     395     0   N/A     N/A       411     1   0.49 %   0.49 %
                                                 
Total Interest Bearing Liabilities     119,581     134   0.45 %   0.45 %     107,472     204   0.76 %   0.76 %
                                                 
Noninterest Bearing Liabilities                                                
Demand deposits     35,755                       27,706                  
Other liabilities     890                       784                  
Shareholders' Equity     20,621                       18,401                  
                                                 
Total Liabilities and Shareholders Equity   $ 176,847                     $ 154,363                  
                                                 
Net Interest Income and Spread           1,392   3.14 %   3.37 %           1,268   3.22 %   3.50 %
                                                 
Net Interest Margin               3.27 %   3.50 %               3.43 %   3.72 %
                                                 
   
   
TRINITY BANK N.A.  
(Unaudited)  
(Dollars in thousands, except per share data)  
                         
    September 30           September 30        
    2012     %     2011     %  
LOAN PORTFOLIO                            
                             
Commercial and industrial     42,236     49.91 %     35,539     46.65 %
Real estate:                            
  Commercial     16,227     19.18 %     12,729     16.71 %
  Residential     17,697     20.91 %     16,231     21.31 %
  Construction and development     6,127     7.24 %     9,858     12.94 %
Consumer     2,338     2.76 %     1,823     2.39 %
                             
Total loans (gross)     84,625     100.00 %     76,180     100.00 %
                             
Unearned discounts     0     0.00 %     0     0.00 %
                             
Total loans (net)     84,625     100.00 %     76,180     100.00 %
                             
                             
    September 30           September 30        
    2012           2011        
REGULATORY CAPITAL DATA                            
                             
Tier 1 Capital   $ 19,775           $ 17,667        
Total Assets   $ 176,847           $ 154,021        
Tier 1 Capital Ratio     11.18 %           11.47 %      
                             
Total Capital   $ 20,801           $ 18,921        
Total Risk-Weighted Assets   $ 111,236           $ 100,262        
Total Risk-Based Capital Ratio     18.70 %           18.87 %      
                             
                             
OTHER DATA                            
Full Time Equivalent Employees (FTE's)     14             14        
                             
Stock Price Range                            
(For the Three Months Ended):                            
  High   $ 30.50           $ 27.00        
  Low   $ 30.00           $ 25.00        
  Close   $ 30.50           $ 26.05        
Contact:
For information contact:
Richard Burt
Executive Vice President
Trinity Bank
817-763-9966

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