Trinity Bank Reports 4Q and FYE 2017 Results

– 2017 Earnings Per Share were down 23% due to the write down of our Deferred Tax Asset (required by the passage of the Tax Reform Act dated 12-22-17) and a large loan loss provision (and subsequent charge off) for our one problem loan
– Return on Assets of 1.23% and Return on Equity of 10.22% (while well below our historical performance) are slightly above the average returns for our Bank Peer Group
– Good deposit growth, excellent efficiency, and strong Equity to Assets Ratio of 12.05% are indicative of the effort by the staff, management and Board of Trinity Bank to produce superior returns and shareholder value

FORT WORTH, TX / ACCESSWIRE / January 31, 2018 / Trinity Bank N.A. (OTC PINK: TYBT) today announced financial and operating results for the fourth quarter and for the twelve months ended December 31, 2017.

Trinity Bank, N.A. reported Net Income after Taxes for the fourth quarter of 2017 of $642,000 or $.57 per diluted common share, compared to $1,072,000 or $.96 per diluted common share for the fourth quarter of 2016, a decrease of 40.3%.

For the year 2016, Net Income After Taxes amounted to $3,068,000, or $2.74 per diluted common share, compared to $4,009,000, or $3.56 per diluted common share for 2016, a decrease of 23.1%.

Jeffrey M. Harp, President, stated, “Prior to the changes mentioned in the first bullet point above, Trinity Bank generated its best monthly profit ever in December, and the fourth quarter was the best quarter since inception in 2003. The 2017 Tax Reform Act (which necessitated the write-down of the Deferred Tax Asset) has significant positive implications for Trinity Bank in the long run. The large loan loss provision for our one problem loan is behind us.”

“In a year that didn’t meet our expectations, Trinity Bank still earned over $3,000,000 after taxes (a decent return on our shareholder’s original and only capital investment of $11,000,000), paid over $1,100,000 in cash dividends, and generated above average returns on assets and equity compared to our Bank Peer Group. We look forward to performing at historical levels in 2018 and beyond.”

For Year Ending
Trinity Bank

Peer Group

(9-30-17)

2017

2016

2015

2014

2013

Return on Assets

.93%

1.23%

1.79%

1.68%

1.58%

Return on Equity

(excluding unrealized

8.72%

10.22%

14.32%

14.69%

14.29%

13.83%

gain on securities)

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

Twelve Months Ending

December 31

EARNINGS SUMMARY

2017

2016

Change

2017

2016

Change

Interest income

$2,407

$2,050

17.4%

$9,141

$8,120

12.6%

Interest expense

192

138

39.1%

656

534

22.8%

Net Interest Income

2,215

1,912

15.8%

8,485

7,586

11.9%

Service charges on deposits

-16.7%

149

156

-4.5%

Other income

2.2

366

397

-7.8%

Total Non Interest Income

126

131

-3.8%

515

553

-6.9%

Salaries and benefits expense

575

526

9.3%

2,102

2,031

3.5%

Occupancy and equipment expense

112

45.5%

432

302

43.0%

Other expense

290

210

38.1%

1,116

1,046

6.7%

Total Non Interest Expense

977

813

20.2%

3,650

3,379

8.0%

Pretax pre-provision income

1,364

1,230

10.9%

5,350

4,760

12.4%

Gain on sale of securities

N/M

263

N/M

Gain on sale of assets

N/M

Provision for Loan Losses

507

N/M

1,627

N/M

Earnings before income taxes

859

1,309

-34.4%

3,727

5,064

-26.4%

Provision for income taxes

217

237

-8.4%

659

1,055

-37.5%

Net Earnings

$642

$1,072

-40.1%

$3,068

$4,009

-23.5%

Basic earnings per share

0.58

0.97

-40.2%

2.77

3.59

-22.7%

Basic weighted average shares outstanding

1,106

1,109

1,106

1,116

Diluted earnings per share

0.57

0.96

-40.3%

2.74

3.56

-23.1%

Diluted weighted average shares outstanding

1,121

1,120

1,121

1,127

Average for Quarter

Average for Twelve Months

December 31

BALANCE SHEET SUMMARY

2017

2016

Change

2017

2016

Change

Total loans

$130,708

$124,012

5.4%

$131,126

$121,267

8.1%

Total short term investments

33,929

21,884

55.0%

24,136

17,355

39.1%

Total investment securities

92,935

81,207

14.4%

87,396

79,629

9.8%

Earning assets

257,572

227,103

13.4%

242,658

218,251

11.2%

Total assets

264,668

232,931

13.6%

249,390

223,624

11.5%

Noninterest bearing deposits

81,387

72,209

12.7%

75,434

64,586

16.8%

Interest bearing deposits

150,771

129,186

16.7%

142,423

127,783

11.5%

Total deposits

232,158

201,395

15.3%

217,857

192,369

13.2%

Fed Funds Purchased and Repurchase Agreements

361

-100.0%

359

-78.0%

Shareholders’ equity

$31,546

$29,946

5.3%

$30,682

$29,613

3.6%

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

Average for Quarter Ending

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

BALANCE SHEET SUMMARY

2017

2016

Total loans

$130,708

$131,507

$131,481

$130,977

$124,012

Total short term investments

33,929

26,349

21,563

14,089

21,884

Total investment securities

92,935

89,922

84,656

82,294

81,207

Earning assets

257,572

247,778

237,700

227,360

227,103

Total assets

264,668

254,291

244,153

234,058

232,931

Noninterest bearing deposits

81,387

75,572

73,999

70,654

72,209

Interest bearing deposits

150,771

146,331

139,407

132,946

129,186

Total deposits

232,158

221,903

213,406

203,600

201,395

Fed Funds Purchased and Repurchase Agreements

320

361

Shareholders’ equity

$31,546

$31,428

$30,024

$29,701

$29,746

Quarter Ended

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

HISTORICAL EARNINGS SUMMARY

2017

2016

Interest income

$2,407

$2,345

$2,244

$2,145

$2,050

Interest expense

192

175

150

139

138

Net Interest Income

2,215

2,170

2,094

2,006

1,912

Service charges on deposits

Other income

Total Non Interest Income

126

129

130

131

Salaries and benefits expense

575

520

499

508

526

Occupancy and equipment expense

112

110

106

104

Other expense

290

276

281

269

210

Total Non Interest Expense

977

906

886

881

813

Pretax pre-provision income

1,364

1,393

1,338

1,255

1,230

Gain on sale of securities

(1)

Gain on sale of other assets

Provision for Loan Losses

507

1,000

Earnings before income taxes

859

1,333

1,281

254

1,309

Provision for income taxes

217

280

265

(103)

237

Net Earnings

$642

$1,053

$1,016

$357

$1,072

Diluted earnings per share

$0.57

$0.94

$0.91

$0.32

$0.96

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

Ending Balance

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

HISTORICAL BALANCE SHEET

2017

2016

Total loans

$139,818

$129,762

$132,854

$131,531

$132,140

Total short term investments

19,027

39,662

20,090

28,599

9,615

Total investment securities

93,518

91,467

88,902

81,820

83,241

Total earning assets

252,363

260,891

241,846

241,950

224,996

Allowance for loan losses

(1,600)

(1,493)

(2,731)

(2,662)

(1,652)

Premises and equipment

2,731

2,747

2,780

2,698

2,525

Other Assets

5,817

6,050

6,433

5,950

6,875

Total assets

259,311

268,195

248,328

247,936

232,744

Noninterest bearing deposits

84,445

79,366

75,867

78,381

74,537

Interest bearing deposits

143,638

155,790

140,577

139,409

127,986

Total deposits

228,083

235,156

216,444

217,790

202,523

Fed Funds Purchased and Repurchase Agreements

361

Other Liabilities

352

1,548

872

923

472

Total liabilities

228,435

236,704

217,316

218,713

203,356

Shareholders’ Equity Actual

30,993

30,310

29,886

29,015

29,201

Unrealized Gain – AFS

(117)

1,181

1,126

208

187

Total Equity

$30,876

$31,491

$31,012

$29,223

$29,388

Quarter Ending

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

NONPERFORMING ASSETS

2017

2016

Nonaccrual loans

$394

$921

$2,345

$2,527

$2,753

Restructured loans

Other real estate & foreclosed assets

Accruing loans past due 90 days or more

Total nonperforming assets

$394

$921

$2,345

$2,527

$2,753

Accruing loans past due 30-89 days

$121

Total nonperforming assets as a percentage

of loans and foreclosed assets

0.28%

0.71%

1.77%

1.92%

2.08%

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

Quarter Ending

ALLOWANCE FOR

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

LOAN LOSSES

2017

2016

Balance at beginning of period

$1,493

$2,731

$2,662

$1,652

$1,644

Loans charged off

400

1,300

Loan recoveries

Net (charge-offs) recoveries

(400)

(1,298)

Provision for loan losses

507

1,000

Balance at end of period

$1,600

$1,493

$2,731

$2,662

$1,652

Allowance for loan losses

as a percentage of total loans

1.14%

1.15%

2.06%

2.02%

1.25%

Allowance for loan losses

as a percentage of nonperforming assets

406%

162%

116%

105%

60%

Net charge-offs (recoveries) as a

percentage of average loans

0.31%

0.99%

-0.01%

Provision for loan losses

as a percentage of average loans

0.39%

0.05%

0.76%

N/A

Quarter Ending

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

SELECTED RATIOS

2017

2016

Return on average assets (annualized)

0.97%

1.66%

0.61%

1.84%

Return on average equity (annualized)

8.14%

13.40%

13.54%

4.81%

14.32%

Return on average equity (excluding unrealized gain on investments)

8.44%

13.90%

13.78%

4.85%

14.97%

Average shareholders’ equity to average assets

11.92%

12.36%

12.30%

12.69%

12.86%

Yield on earning assets (tax equivalent)

4.17%

4.22%

4.19%

4.20%

4.13%

Effective Cost of Funds

0.29%

0.28%

0.25%

Net interest margin (tax equivalent)

3.88%

3.94%

3.95%

3.88%

Efficiency ratio (tax equivalent)

37.2%

35.3%

35.8%

37.0%

35.8%

End of period book value per common share

$27.92

$28.47

$28.04

$26.37

$26.50

End of period book value (excluding unrealized gain on investments)

$28.02

$27.41

$27.02

$26.19

$26.33

End of period common shares outstanding (in 000’s)

1,106

1,108

1,109

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

Twelve Months Ending

December 31, 2017

December 31, 2016

Tax

Average

Equivalent

Average

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Balance

Interest

Yield

Interest Earning Assets:

Short term investment

$23,763

311

1.31%

$16,983

137

0.81%

FRB Stock

373

6.17%

6.00%

372

6.00%

Tax Free securities

87,396

2,361

2.70%

3.89%

79,629

2,007

2.52%

3.63%

Loans

131,126

6,446

4.92%

121,267

5,952

4.91%

Total Interest Earning Assets

242,658

9,141

3.77%

4.19%

218,251

8,120

3.72%

4.13%

Noninterest Earning Assets:

Cash and due from banks

4,404

3,968

Other assets

4,539

3,038

Allowance for loan losses

(2,211)

(1,633)

Total Noninterest Earning Assets

6,732

5,373

Total Assets

$249,390

$223,624

Interest Bearing Liabilities:

Transaction and Money Market accounts

114,315

396

0.35%

102,554

319

0.31%

Certificates and other time deposits

28,108

259

0.92%

25,249

214

0.85%

Other borrowings

0.25%

359

0.28%

0.28

Total Interest Bearing Liabilities

142,502

656

0.46%

128,162

534

0.42%

Noninterest Bearing Liabilities:

Demand deposits

75,434

64,566

Other liabilities

772

1,283

Shareholders’ Equity

30,682

29,613

Total Liabilities and Shareholders Equity

$249,390

$223,624

Net Interest Income and Spread

8,485

3.31%

3.73%

7,586

3.30%

3.71%

Net Interest Margin

3.50%

3.93%

3.48%

3.88%

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

December 31

2017

2016

LOAN PORTFOLIO

Commercial and industrial

$80,226

57.38%

$74,928

56.70%

Real estate:

Commercial

18,672

13.35%

22,307

16.88%

Residential

24,335

17.40%

19,255

14.57%

Construction and development

15,885

11.36%

14,507

10.98%

Consumer

700

0.50%

1,143

0.86%

Total loans (gross)

139,818

100.00%

132,140

100.0%0

Unearned discounts

0.00%

Total loans (net)

$139,818

100.00%

$132,140

100.00%

December 31

2017 %

2016

REGULATORY CAPITAL DATA

Tier 1 Capital

$30,993

$29,201

Total Capital (Tier 1 + Tier 2)

$32,593

$30,853

Total Risk-Adjusted Assets

$158,248

$151,282

Tier 1 Risk-Based Capital Ratio

19.59%

19.30%

Total Risk-Based Capital Ratio

20.60%

20.39%

Tier 1 Leverage Ratio

11.71%

12.54%

OTHER DATA

Full Time Equivalent

Employees (FTE’s)

Stock Price Range

(For the Three Months Ended):

High

$60.30

$56.00

Low

$57.25

$50.10

$59.83

$53.50

SOURCE: Trinity Bank, N.A

ReleaseID: 487394

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