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Trinity Bank Reports 2018 3rd Quarter Net Income of $1,190,000


FORT WORTH, TX / ACCESSWIRE / October 23, 2018 / Trinity Bank N.A. (OTC PINK: TYBT) today announced operating results for the third quarter and the nine months ending September 30, 2018.

Results of Operation

For the third quarter 2018, Trinity Bank, N.A. reported Net Income after Taxes of $1,190,000, an increase of 13.0% over third quarter 2017 earnings of $1,053,000. Earnings per diluted common share for the third quarter 2018 amounted to $1.07, an increase of 13.6% over third quarter 2017 results of $0.94 per diluted common share.

For the first nine months of 2018, Net Income after Taxes was $3,477,000, an increase of 43.3% over the first nine months of 2017 results of $2,426,000. Earnings per diluted common share for the first nine months of 2018 were $3.11, an increase of 44.0% over the first nine months of 2017 results of $2.16 per diluted common share.

President Jeffrey M. Harp stated, "Third quarter results represents all-time highs for Trinity bank in terms of Net Income, Return on Assets, and Return on Equity. Congratulations to our staff for their exceptional performance and productivity."

Executive Vice President Barney C. Wiley stated, "These are volatile times, but Trinity is fortunate to participate in a market displaying strong economic activity. We continue to be committed to operate with: 

  1. strong capital - Equity to Assets Ratio of 12.77%,

  2. sound liquidity - $98 million in overnight funds and investments,

  3. high efficiency - Efficiency Ratio of 41.5% vs Peer 62.6%, and

  4. emphasis on growth - 10.5% increase in Loan Volume.”

    "In addition, Trinity Bank will distribute its 14th semi-annual dividend of $.57 per share on October 31, 2018. We have been fortunate to be able to increase the dividend semi-annually since the initial dividend in 2012. Trinity has now returned $6.39 of the original investors $10.00 cost in the form of cash dividends."

Trinity Bank third quarter 2018 earnings

 

Actual for Quarter
                 
    3 Months     3 Months        
(in 000's)
                 
    09/30/2018     09/30/2017     %  
                   
Net Interest Income
  $ 2,349.     $ 2,170.       8.2 %.
Non-Interest Income
    149.       129.       15.5 %)
Non-Interest Expense
    (1098 )     (906 )     21.2 %.
Pretax Preprovision Income
    1,400.       1,393.       .5 %
                         
Gains on Sale of Securities and Other Assets
    4       0       N/M  
Loan Loss Provision
    (30 ).     (60 ).     N/M  
Pretax Income
    1,374       1,333       3.1 %.
Income Tax
    (184 )     (280 )     (34.3 %).
Net Income
  $ 1,190     $ 1,053       13.0 %.
Diluted Weighted Average Shares
    1,115       1,121          
Earnings Per Share
    1.07.       .94.       13.6 %

 

Actual for 9 months
                 
    9 Months     9 Months        
(in 000's)
                 
    09/30/2018     09/30/2017     %  
                   
Net Interest Income
  $ 6,976.     $ 6,270.       11.3 %.
Non-Interest Income
    415.       388.       7.0 %
Non-Interest Expense
    (3,369 )     (2,673 )     26.0 %.
Pretax Pre-provision Income
    4,022.       3,985.       .9 %.
                         
Gains on Sale of Securities and Other Assets
    11.       3.       N/M  
Loan Loss Provision
    (60 )     (1,120 )     N/M  
Pretax Income
    3,973       2,868       38.5 %
Income Tax
    (496 )     (442 )     12.2 %
Net Income
  $ 3,477     $ 2,426       43.3 %
Diluted Weighted Average Shares
    1,118       1,122          
Earnings Per Share
  $ 3.11.     $ 2.16.       44.0 %

 

Trinity Bank third quarter 2018 earnings

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.

For information contact:

Richard Burt
Executive Vice President 
Trinity Bank
817-763-9966

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
  2018     2017     Change     2018     2017     Change  
                                     
Interest income
  $ 2,658     $ 2,345       13.3 %   $ 7,735     $ 6,734       14.9 %
Interest expense
    309       175       76.6 %     759       464       63.6 %
Net Interest Income
    2,349       2,170       8.2 %     6,976       6,270       11.3 %
                                                 
Service charges on deposits
    38       35       8.6 %     111       115       -3.5 %
Other income
    111       94       18.1 %     304       273       11.4 %
Total Non Interest Income
    149       129       15.5 %     415       388       7.0 %
                                                 
Salaries and benefits expense
    707       520       36.0 %     2,067       1,527       35.4 %
Occupancy and equipment expense
    119       110       8.2 %     346       320       8.1 %
Other expense
    272       276       -1.4 %     956       826       15.7 %
Total Non Interest Expense
    1,098       906       21.2 %     3,369       2,673       26.0 %
                                                 
Pretax pre-provision income
    1,400       1,393       0.5 %     4,022       3,985       0.9 %
                                                 
Gain on sale of securities
    4       0       N/M       11       3       N/M  
                                                 
Provision for Loan Losses
    30       60       N/M       60       1,120       N/M  
                                                 
Earnings before income taxes
    1,374       1,333       3.1 %#     3,973       2,868       38.5 %
Provision for income taxes
    184       280       -34.3 %     496       442       12.2 %
Net Earnings
  $ 1,190     $ 1,053       13.0 %   $ 3,477     $ 2,426       43.3 %
                                                 
Basic earnings per share
    1.08       0.95       13.6 %     3.15       2.19       43.9 %
Basic weighted average shares
    1,100       1,106               1,103       1,107          
outstanding
                                               
                                                 
Diluted earnings per share
    1.07       0.94       13.6 %     3.11       2.16       44.0 %
Diluted weighted average shares outstanding
    1,115       1,121               1,118       1,122          
                                                 




    Average for Quarter           Average for Nine Months        
    September 30     %     September 30     %  
BALANCE SHEET SUMMARY
  2018     2017     Change     2018     2017     Change  
                                     
Total loans
  $ 145,280     $ 131,507       10.5 %   $ 143,555     $ 131,268       9.4 %
Total short term investments
    18,368       26,349       -30.3 %     17,398       20,834       -16.5 %
Total investment securities
    80,509       89,922       -10.5 %     86,020       85,529       0.6 %
                                                 
Earning assets
    244,157       247,778       -1.5 %     246,973       237,631       3.9 %
                                                 
Total assets
    251,839       254,291       -1.0 %     254,084       244,241       4.0 %
                                                 
Noninterest bearing deposits
    83,151       75,572       10.0 %     82,008       73,427       11.7 %
Interest bearing deposits
    135,815       146,331       -7.2 %     139,353       139,610       -0.2 %
                                                 
Total deposits
    218,966       221,903       -1.3 %     221,361       213,037       3.9 %
                                                 
Fed Funds Purchased and Repurchase Agreements
    0       0       0.0 %     522       106       N/M  
                                                 
Shareholders' equity
  $ 32,151     $ 31,428       2.3 %   $ 31,568     $ 30,391       3.9 %

 

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
  2018     2018     2018     2017     2017  
                               
Total loans
  $ 145,280     $ 147,227     $ 137,942     $ 130,708     $ 131,507  
Total short term investments
    18,368       10,843       23,035       33,929       26,349  
Total investment securities
    80,509       84,981       92,926       92,935       89,922  
                                         
Earning assets
    244,157       243,051       253,903       257,572       247,778  
                                         
Total assets
    251,839       250,070       260,399       264,668       254,291  
                                         
Noninterest bearing deposits
    83,151       80,637       82,622       81,387       75,572  
Interest bearing deposits
    135,815       135,940       146,206       150,771       146,331  
                                         
Total deposits
    218,966       216,577       228,828       232,158       221,903  
                                         
Fed Funds Purchased and Repurchase Agreements
    0       1,566       0       0       0  
                                         
Shareholders' equity
  $ 32,151     $ 31,236     $ 31,308     $ 31,546     $ 31,428  




    Quarter Ended                          
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
HISTORICAL EARNINGS SUMMARY
  2018     2018     2018     2017     2017  
                               
                               
Interest income
  $ 2,658     $ 2,591     $ 2,486     $ 2,407     $ 2,345  
Interest expense
    309       241       209       192       175  
Net Interest Income
    2,349       2,350       2,277       2,215       2,170  
                                         
Service charges on deposits
    38       37       42       35       35  
Other income
    111       100       87       91       94  
Total Non Interest Income
    149       137       129       126       129  
                                         
Salaries and benefits expense
    707       731       628       575       520  
Occupancy and equipment expense
    119       106       121       112       110  
Other expense
    272       302       382       290       276  
Total Non Interest Expense
    1,098       1,139       1,131       977       906  
                                         
Pretax pre-provision income
    1,400       1,348       1,275       1,364       1,393  
                                         
Gain on sale of securities
    4       7       0       2       0  
Gain on sale of foreclosed assets
    0       0       0       0       0  
Gain on sale of other assets
    0       0       0       0       0  
                                         
Provision for Loan Losses
    30       30       0       507       60  
                                         
Earnings before income taxes
    1,374       1,325       1,275       859       1,333  
Provision for income taxes
    184       166       146       217       280  
                                         
Net Earnings
  $ 1,190     $ 1,159     $ 1,129     $ 642     $ 1,053  
                                         
Diluted earnings per share
  $ 1.07     $ 1.03     $ 1.00     $ 0.57     $ 0.94  

 

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
  2018     2018     2018     2017     2017  
                               
Total loans
  $ 143,846     $ 150,833     $ 142,848     $ 139,818     $ 129,762  
Total short term investments
    23,080       7,454       20,766       19,027       39,662  
Total investment securities
    79,234       78,840       93,034       93,518       91,467  
                                         
Total earning assets
    246,160       237,127       256,648       252,363       260,891  
                                         
Allowance for loan losses
    (1,664 )     (1,634 )     (1,604 )     (1,600 )     (1,493 )
Premises and equipment
    2,652       2,729       2,725       2,731       2,747  
Other Assets
    5,892       7,582       5,046       5,817       6,050  
                                         
Total assets
    253,040       245,804       262,815       259,311       268,195  
                                         
Noninterest bearing deposits
    81,856       79,678       86,903       84,445       79,366  
Interest bearing deposits
    137,926       133,922       143,929       143,638       155,790  
                                         
Total deposits
    219,782       213,600       230,832       228,083       235,156  
                                         
Fed Funds Purchased and Repurchase Agreements
    0       0       0       0       0  
Other Liabilities
    1,311       610       1,143       352       1,548  
                                         
Total liabilities
    221,093       214,210       231,975       228,435       236,704  
                                         
Shareholders' Equity Actual
    32,772       32,244       31,497       30,993       30,310  
Unrealized Gain - AFS
    (825 )     (650 )     (657 )     (117 )     1,181  
Total Equity
  $ 31,947     $ 31,594     $ 30,840     $ 30,876     $ 31,491  




    Quarter Ending  
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
NONPERFORMING ASSETS
  2018     2018     2018     2017     2017  
                               
Nonaccrual loans
  $ 137     $ 179     $ 224     $ 394     $ 921  
Restructured loans
  $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets
  $ 0     $ 0     $ 0     $ 0     $ 0  
Accruing loans past due 90 days or more
  $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets
  $ 137     $ 179     $ 224     $ 394     $ 921  
                                         
Accruing loans past due 30-89 days
  $ 456     $ 458     $ 0     $ 0     $ 0  
                                         
Total nonperforming assets as a percentage
                                       
of loans and foreclosed assets
    0.10 %     0.12 %     0.16 %     0.28 %     0.66 %

 

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
  2018     2018     2018     2017     2017  
                               
Balance at beginning of period
  $ 1,634     $ 1,604     $ 1,600     $ 1,493     $ 2,731  
Loans charged off
    0       0       0       400       1,300  
Loan recoveries
    0       0       4       0       2  
Net (charge-offs) recoveries
    0       0       4       (400 )     (1,298 )
Provision for loan losses
    30       30       0       507       60  
Balance at end of period
  $ 1,664     $ 1,634     $ 1,604     $ 1,600     $ 1,493  
                                         
Allowance for loan losses
                                       
as a percentage of total loans
    1.16 %     1.08 %     1.12 %     1.14 %     1.15 %
Allowance for loan losses
                                       
as a percentage of nonperforming assets
    1215 %     913 %     716 %     406 %     162 %
Net charge-offs (recoveries) as a
                                       
percentage of average loans
    0.00 %     0.00 %     -0.01 %     0.31 %     0.99 %
Provision for loan losses
                                       
as a percentage of average loans
    0.02 %     0.02 %     0.00 %     0.39 %     0.05 %




    Quarter Ending  
    Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
SELECTED RATIOS
  2018     2018     2018     2017     2017  
                               
Return on average assets (annualized)
    1.89 %     1.85 %     1.73 %     0.97 %     1.66 %
                                         
Return on average equity (annualized)
    14.81 %     14.84 %     14.42 %     8.14 %     13.40 %
                                         
Return on average equity (excluding unrealized gain on investments)
    14.53 %     14.51 %     14.34 %     8.44 %     13.90 %
                                         
Average shareholders' equity to average assets
    12.77 %     12.49 %     12.02 %     11.92 %     12.36 %
                                         
Yield on earning assets (tax equivalent)
    4.59 %     4.53 %     4.19 %     4.17 %     4.22 %
                                         
Effective Cost of Funds
    0.51 %     0.40 %     0.33 %     0.29 %     0.28 %
                                         
Net interest margin (tax equivalent)
    4.08 %     4.13 %     3.86 %     3.88 %     3.94 %
                                         
Efficiency ratio (tax equivalent)
    41.5 %     43.0 %     43.9 %     37.2 %     35.3 %
                                         
End of period book value per common share
  $ 29.07     $ 28.13     $ 27.88     $ 27.92     $ 28.47  
                                         
End of period book value (excluding unrealized gain on investments)
  $ 29.82     $ 29.31     $ 28.48     $ 28.02     $ 27.41  
                                         
End of period common shares outstanding (in 000's)
    1,099       1,100       1,106       1,106       1,106  

 

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



    Quarter Ending  
    September 30, 2018     September 30, 2017  
                                                 
                      Tax                       Tax  
    Average                 Equivalent     Average                 Equivalent  
YIELD ANALYSIS
  Balance     Interest     Yield     Yield     Balance     Interest     Yield     Yield  
                                                 
Interest Earning Assets:
                                               
Short term investment
  $ 17,991       93       2.07 %     2.07 %   $ 25,975       91       1.40 %     1.40 %
FRB Stock
    377       6       6.00 %     6.00 %     374       6       6.00 %     6.00 %
Taxable securities
    1,217       6       1.97 %     1.97 %     76       0       0.00 %     0.00 %
Tax Free securities
    80,065       563       2.81 %     3.56 %     89,846       608       2.71 %     3.90 %
Loans
    145,280       1,990       5.48 %     5.48 %     131,507       1,640       4.99 %     4.99 %
                                                                 
Total Interest Earning Assets
    244,930       2,658       4.34 %     4.59 %     247,778       2,345       3.78 %     4.22 %
                                                                 
Noninterest Earning Assets:
                                                               
Cash and due from banks
    4,308                               4,450                          
Other assets
    4,265                               4,796                          
Allowance for loan losses
    (1,664 )                             (2,733 )                        
                                                                 
Total Noninterest Earning Assets
    6,909                               6,513                          
                                                                 
Total Assets
  $ 251,839                             $ 254,291                          
                                                                 
Interest Bearing Liabilities:
                                                               
Transaction and Money Market accounts
    111,298       226       0.81 %     0.81 %     116,647       107       0.37 %     0.37 %
Certificates and other time deposits
    24,517       83       1.35 %     1.35 %     29,684       68       0.92 %     0.92 %
Other borrowings
    0       0       0.00 %     0.00 %     0       0       0.00 %     0.00 %
                                                                 
Total Interest Bearing Liabilities
    135,815       309       0.91 %     0.91 %     146,331       175       0.48 %     0.48 %
                                                                 
Noninterest Bearing Liabilities:
                                                               
Demand deposits
    83,151                               75,572                          
Other liabilities
    722                               960                          
Shareholders' Equity
    32,151                               31,428                          
                                                                 
Total Liabilities and Shareholders Equity
  $ 251,839                             $ 254,291                          
                                                                 
Net Interest Income and Spread
            2,349       3.43 %     3.68 %             2,170       3.31 %     3.74 %
                                                                 
Net Interest Margin
                    3.84 %     4.08 %                     3.50 %     3.94 %

 

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



    September 30           September 30        
    2018     %     2017     %  
LOAN PORTFOLIO
                       
                         
Commercial and industrial
  $ 85,673       59.56 %   $ 74,002       57.03 %
Real estate:
                               
Commercial
    20,977       14.58 %     17,670       13.62 %
Residential
    19,407       13.49 %     21,875       16.86 %
Construction and development
    16,706       11.61 %     15,461       11.91 %
Consumer
    1,083       0.75 %     754       0.58 %
                                 
Total loans (gross)
    143,846       100.00 %     129,762       100.00 %
                                 
Unearned discounts
    0       0.00 %     0       0.00 %
                                 
Total loans (net)
  $ 143,846       100.00 %   $ 129,762       100.00 %




    September 30     September 30  
    2018     2017  
REGULATORY CAPITAL DATA
           
Tier 1 Capital
  $ 32,773     $ 30,310  
Total Capital (Tier 1 + Tier 2)
  $ 34,437     $ 31,803  
Total Risk-Adjusted Assets
  $ 160,141     $ 151,089  
Tier 1 Risk-Based Capital Ratio
    20.47 %     20.06 %
Total Risk-Based Capital Ratio
    21.50 %     21.05 %
Tier 1 Leverage Ratio
    13.01 %     11.92 %
                 
OTHER DATA
               
Full Time Equivalent
               
Employees (FTE's)
    20       17  
                 
Stock Price Range
               
(For the Three Months Ended):
               
High
  $ 67.00     $ 61.00  
Low
  $ 60.00     $ 60.30  
Close
  $ 65.00     $ 60.30  

 

SOURCE: Trinity Bank N.A.