Trinity Bank Reports 2018 2nd Quarter Net Income of $1,159,000

– 2nd Quarter Return on Assets 1.85%
– 2nd Quarter Return on Equity 14.84%

FORT WORTH, TX / ACCESSWIRE / July 18, 2018 / Trinity Bank N.A. (OTC PINK: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2018.

Results of Operation

For the second quarter 2018, Trinity Bank, N.A. reported Net Income after Taxes of $1,159,000, an increase of 14.1% over second quarter 2017 earnings of $1,016,000. Earnings per diluted common share for the second quarter 2018 amounted to $1.03, an increase of 14.0% over second quarter 2017 results of $0.91 per diluted common share.

For the first six months of 2018, Net Income after Taxes was $2,287,000, an increase of 66.6% over the first half of 2017 results of $1,373,000. Earnings per diluted common share for the first half of 2018 were $2.03, an increase of 66.8% over the first half of 2017 results of $1.22 per diluted common share.

President Jeffrey M. Harp stated, ”Second Quarter 2018 results were favorable. Some of the high points are:

Loan Volume was up 12.0% over 2Q 2017.

We added a senior lender to our management team on March 28, 2018. The lender generated sufficient business to cover the additional overhead by quarter end. This is a remarkable achievement. Our existing book of business also generated good loan growth which is indicative of the efforts of our long-tenured employees and a good economy.

Return on Assets and Return on Equity are well above peer.

Trinity
Peer

Return on Assets
1.85%
1.02%

Return on Equity
14.84%
9.56%

Investing for the future over the last several years, we have doubled the size of our facility and added 50% to our number of employees. This investment is already generating increased pre-tax income – another remarkable achievement.

Challenges remain. Trinity Bank historically experiences a drop in deposits in 2Q due to April 15 tax payments and 1Q 2018 estimates. This year, this decline has been deeper and more prolonged. Competition for deposits (and the resulting increase in interest expense) is very apparent.

In spite of the challenges, Trinity Bank enjoys a favorable economic environment, and we remain committed to producing exceptional results.”

Actual for Quarter

(in 000’s)

3 Months

06/30/2018

06/30/2017

Net Interest Income

$
2,350

$
2,094

12.2
%

Non-Interest Income

137

130

5.4
%

Non-Interest Expense

(1,139
)

(886
)

28.6
%

Pretax Preprovision Income

1,348

1,338

.70
%

Gains on Sale of Securities and Other Assets

N/M

Loan Loss Provision

(30
)

(60
)

N/M

Pretax Income

1,325

1,281

3.4
%

Income Tax

(166
)

(265
)

(37.4
)%

Net Income

$
1,159

$
1,016

14.1
%

Diluted Weighted Average Shares

1,122

1,121

Earnings Per Share

1.03

.91

14.0
%

Actual for 6 months

(in 000’s)

6 Months

06/30/2018

06/30/2017

Net Interest Income

$
4,627

$
4,100

12.9
%

Non-Interest Income

266

259

2.7
%

Non-Interest Expense

(2,271
)

(1,767
)

28.5
%

Pretax Preprovision Income

2,622

2,592

1.2
%

Gains on Sale of Securities and Other Assets

N/M

Gains on Sale of Foreclosed Assets

N/M

Loan Loss Provision

(30
)

(1,060
)

N/M

Pretax Income

2,599

1,535

69.3
%

Income Tax

(312
)

(162
)

92.6
%

Net Income

$
2,287

$
1,373

66.6
%

Diluted Weighted Average Shares

1,124

1,123

Earnings Per Share

2.03

1.22

66.8
%

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

Six Months Ending

June 30

EARNINGS SUMMARY

2018

2017

Change

2018

2017

Change

Interest income

$
2,591

$
2,244

15.5
%

$
5,077

$
4,389

15.7
%

Interest expense

241

150

60.7
%

450

289

55.7
%

Net Interest Income

2,350

2,094

12.2
%

4,627

4,100

12.9
%

Service charges on deposits

-2.6
%

-8.8
%

Other income

100

8.7
%

193

179

7.8
%

Total Non Interest Income

137

130

5.4
%

266

259

2.7
%

Salaries and benefits expense

731

499

46.5
%

1,360

1,007

35.1
%

Occupancy and equipment expense

106

0.0
%

227

210

8.1
%

Other expense

302

281

7.5
%

684

550

24.4
%

Total Non Interest Expense

1,139

886

28.6
%

2,271

1,767

28.5
%

Pretax pre-provision income

1,348

1,338

0.7
%

2,622

2,592

1.2
%

Gain on sale of securities

N/M

Gain on sale of foreclosed assets

N/M

Gain on sale of assets

N/M

Provision for Loan Losses

N/M

1,060

N/M

Earnings before income taxes

1,325

1,281

3.4
%

2,599

1,535

69.3
%

Provision for income taxes

166

265

-37.4
%

312

162

92.6
%

Net Earnings

$
1,159

$
1,016

14.1
%

$
2,287

$
1,373

66.6
%

Basic earnings per share

1.05

0.92

14.4
%

2.07

1.24

66.9
%

Basic weighted average shares

1,103

1,106

1,105

1,108

outstanding

Diluted earnings per share – estimate

1.03

0.91

14.0
%

2.03

1.22

66.8
%

Diluted weighted average shares outstanding

1,122

1,121

1,124

1,123

Average for Quarter

Average for Six Months

June 30

BALANCE SHEET SUMMARY

2018

2017

Change

2018

2017

Change

Total loans

$
147,227

$
131,481

12.0
%

$
142,610

$
131,230

8.7
%

Total short term investments

10,843

21,563

-49.7
%

16,905

18,032

-6.3
%

Total investment securities

84,981

84,656

0.4
%

88,821

83,297

6.6
%

Earning assets

243,051

237,700

2.3
%

248,336

232,559

6.8
%

Total assets

250,070

244,153

2.4
%

255,098

239,134

6.7
%

Noninterest bearing deposits

80,637

73,999

9.0
%

81,427

72,336

12.6
%

Interest bearing deposits

135,940

139,407

-2.5
%

141,151

136,195

3.6
%

Total deposits

216,577

213,406

1.5
%

222,578

208,531

6.7
%

Fed Funds Purchased and Repurchase Agreements

1,566

N/M

787

159

N/M

Shareholders’ equity

$
31,236

$
30,024

4.0
%

$
31,272

$
29,863

4.7
%

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

Average for Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

BALANCE SHEET SUMMARY

2018

2017

Total loans

$
147,227

$
137,942

$
130,708

$
131,507

$
131,481

Total short term investments

10,843

23,035

33,929

26,349

21,563

Total investment securities

84,981

92,926

92,935

89,922

84,656

Earning assets

243,051

253,903

257,572

247,778

237,700

Total assets

250,070

260,399

264,668

254,291

244,153

Noninterest bearing deposits

80,637

82,622

81,387

75,572

73,999

Interest bearing deposits

135,940

146,206

150,771

146,331

139,407

Total deposits

216,577

228,828

232,158

221,903

213,406

Fed Funds Purchased and Repurchase Agreements

1,566

Shareholders’ equity

$
31,236

$
31,308

$
31,546

$
31,428

$
30,024

Quarter Ended

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

HISTORICAL EARNINGS SUMMARY

2018

2017

Interest income

$
2,591

$
2,486

$
2,407

$
2,345

$
2,244

Interest expense

241

209

192

175

150

Net Interest Income

2,350

2,277

2,215

2,170

2,094

Service charges on deposits

Other income

100

Total Non Interest Income

137

129

126

129

130

Salaries and benefits expense

731

628

575

520

499

Occupancy and equipment expense

106

121

112

110

106

Other expense

302

382

290

276

281

Total Non Interest Expense

1,139

1,131

977

906

886

Pretax pre-provision income

1,348

1,275

1,364

1,393

1,338

Gain on sale of securities

Gain on sale of foreclosed assets

Gain on sale of other assets

Provision for Loan Losses

507

Earnings before income taxes

1,325

1,275

859

1,333

1,281

Provision for income taxes

166

146

217

280

265

Net Earnings

$
1,159

$
1,129

$
642

$
1,053

$
1,016

Diluted earnings per share

$
1.03

$
1.00

$
0.57

$
0.94

$
0.91

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

Ending Balance

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

HISTORICAL BALANCE SHEET

2018

2017

Total loans

$
150,833

$
142,848

$
139,818

$
129,762

$
132,854

Total short term investments

7,454

20,766

19,027

39,662

20,090

Total investment securities

78,840

93,034

93,518

91,467

88,902

Total earning assets

237,127

256,648

252,363

260,891

241,846

Allowance for loan losses

(1,634
)

(1,604
)

(1,600
)

(1,493
)

(2,731
)

Premises and equipment

2,729

2,725

2,731

2,747

2,780

Other Assets

7,582

5,046

5,817

6,050

6,433

Total assets

245,804

262,815

259,311

268,195

248,328

Noninterest bearing deposits

79,678

86,903

84,445

79,366

75,867

Interest bearing deposits

133,922

143,929

143,638

155,790

140,577

Total deposits

213,600

230,832

228,083

235,156

216,444

Fed Funds Purchased and Repurchase Agreements

Other Liabilities

610

1,143

352

1,548

872

Total liabilities

214,210

231,975

228,435

236,704

217,316

Shareholders’ Equity Actual

31,594

31,497

30,993

30,310

29,886

Unrealized Gain – AFS

(650
)

(657
)

(117
)

1,181

1,126

Total Equity

$
30,944

$
30,840

$
30,876

$
31,491

$
31,012

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

NONPERFORMING ASSETS

2018

2017

Nonaccrual loans

$
179

$
224

$
394

$
921

$
2,345

Restructured loans

$
0

Other real estate & foreclosed assets

$
0

Accruing loans past due 90 days or more

$
0

Total nonperforming assets

$
179

$
224

$
394

$
921

$
2,345

Accruing loans past due 30-89 days

$
458

$
0

Total nonperforming assets as a percentage

of loans and foreclosed assets

0.12
%

0.16
%

0.28
%

0.66
%

1.81
%

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

Quarter Ending

ALLOWANCE FOR

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

LOAN LOSSES

2018

2017

Balance at beginning of period

$
1,604

$
1,600

$
1,493

$
2,731

$
2,662

Loans charged off

400

1,300

Loan recoveries

Net (charge-offs) recoveries

(400
)

(1,298
)

Provision for loan losses

507

Balance at end of period

$
1,634

$
1,604

$
1,600

$
1,493

$
2,731

Allowance for loan losses

as a percentage of total loans

1.08
%

1.12
%

1.14
%

1.15
%

2.06
%

Allowance for loan losses

as a percentage of nonperforming assets

913
%

716
%

406
%

162
%

116
%

Net charge-offs (recoveries) as a

percentage of average loans

0.00
%

-0.01
%

0.31
%

0.99
%

-0.01
%

Provision for loan losses

as a percentage of average loans

0.02
%

0.00
%

0.39
%

0.05
%

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

SELECTED RATIOS

2018

2017

Return on average assets (annualized)

1.85
%

1.73
%

0.97
%

1.66
%

Return on average equity (annualized)

14.84
%

14.42
%

8.14
%

13.40
%

13.54
%

Return on average equity (excluding unrealized gain on investments)

14.51
%

14.34
%

8.44
%

13.90
%

13.78
%

Average shareholders’ equity to average assets

12.49
%

12.02
%

11.92
%

12.36
%

12.30
%

Yield on earning assets (tax equivalent)

4.53
%

4.19
%

4.17
%

4.22
%

4.19
%

Effective Cost of Funds

0.40
%

0.33
%

0.29
%

0.28
%

0.25
%

Net interest margin (tax equivalent)

4.13
%

3.86
%

3.88
%

3.94
%

Efficiency ratio (tax equivalent)

43.0
%

43.9
%

37.2
%

35.3
%

35.8
%

End of period book value per common share

$
28.13

$
27.88

$
27.92

$
28.47

$
28.04

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

$
28.72

$
28.48

$
28.02

$
27.41

$
27.02

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

1,100

1,106

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

Quarter Ending

June 30, 2018

June 30, 2017

Tax

Average

Equivalent

Average

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Balance

Interest

Yield

Interest Earning Assets:

Short term investment

$
10,466

1.91
%

$
21,189

1.25
%

FRB Stock

377

6.00
%

374

6.00
%

Taxable securities

154

2.60
%

220

0.00
%

Tax Free securities

84,827

599

2.82
%

3.58
%

84,436

569

2.70
%

3.88
%

Loans

147,227

1,935

5.26
%

131,481

1,603

4.88
%

Total Interest Earning Assets

243,051

2,591

4.26
%

4.53
%

237,700

2,244

3.78
%

4.19
%

Noninterest Earning Assets:

Cash and due from banks

4,400

4,585

Other assets

4,229

4,556

Allowance for loan losses

(1,610
)

(2,688
)

Total Noninterest Earning Assets

7,019

6,453

Total Assets

$
250,070

$
244,153

Interest Bearing Liabilities:

Transaction and Money Market accounts

112,148

166

0.59
%

111,772

0.34
%

Certificates and other time deposits

23,792

1.09
%

27,635

0.81
%

Other borrowings

1,566

2.55
%

0.30
%

Total Interest Bearing Liabilities

137,506

241

0.70
%

139,407

150

0.43
%

Noninterest Bearing Liabilities:

Demand deposits

80,637

73,999

Other liabilities

691

723

Shareholders’ Equity

31,236

30,024

Total Liabilities and Shareholders Equity

$
250,070

$
244,153

Net Interest Income and Spread

2,350

3.56
%

3.83
%

2,094

3.34
%

3.76
%

Net Interest Margin

3.86
%

4.13
%

3.52
%

3.94
%

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

June 30

2018

2017

LOAN PORTFOLIO

Commercial and industrial

$
88,292

58.54
%

$
74,775

54.52
%

Real estate:

Commercial

20,961

13.90
%

19,560

18.79
%

Residential

23,518

15.59
%

21,337

16.31
%

Construction and development

17,387

11.53
%

16,432

9.04
%

Consumer

675

0.45
%

750

1.34
%

Total loans (gross)

150,833

100.00
%

132,854

100.00
%

Unearned discounts

0.00
%

Total loans (net)

$
150,833

100.00
%

$
132,854

100.00
%

June 30

2018

2017

REGULATORY CAPITAL DATA

Tier 1 Capital

$
32,244

$
29,886

Total Capital (Tier 1 + Tier 2)

$
33,878

$
31,820

Total Risk-Adjusted Assets

$
164,787

$
153,768

Tier 1 Risk-Based Capital Ratio

19.56
%

19.44
%

Total Risk-Based Capital Ratio

20.56
%

20.69
%

Tier 1 Leverage Ratio

12.89
%

12.24
%

OTHER DATA

Full Time Equivalent

Employees (FTE’s)

Stock Price Range

(For the Three Months Ended):

High

$
60.00

$
63.00

Low

$
59.75

$
57.00

$
60.00

$
61.00

SOURCE: Trinity Bank N.A.

ReleaseID: 505743

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