Trinity Bank Reports 2017 2nd Quarter Net Income of $1,016,000

– 2nd Quarter Return on Assets 1.66%
– 2nd Quarter Return on Equity 13.54%

FORT WORTH, TX / ACCESSWIRE / July 27, 2017 / Trinity Bank N.A. (OTC PINK: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2017.

Results of Operation

For the second quarter 2017, Trinity Bank, N.A. reported Net Income after Taxes of $1,016,000, an increase of 5.2% over second quarter 2016 earnings of $966,000. Earnings per diluted common share for the second quarter 2017 amounted to $0.91, an increase of 5.4% over second quarter 2016 results of $0.86 per diluted common share.

For the first six months of 2017, Net Income after Taxes was $1,373,000, an decrease of 28.4% over the first half of 2016 results of $1,918,000. Earnings per diluted common share for the first half of 2017 were $1.22, an decrease of 28.2% over the first half of 2016 results of $1.70 per diluted common share.

President, Jeffrey M. Harp, stated, “After a disappointing first quarter due to a large provision to the loan loss reserve, we are gratified to be back earning a little over $1,000,000 per quarter. There are some positive factors:

1. Loan volume is up 11.4% over 2Q2016.
2. Deposits have increased 13.1% over 2Q2016.
3. Trinity Bank continues to operate very efficiently. It takes us about $.36 in expense to generate $1.00 in revenue. The average bank requires over $.60 in operating expense to generate $1.00 in revenue.
4. Comparative returns for 2Q2017 are favorable.

Trinity

Peer

Return on Assets

1.66%

1.04%

Return on Equity

13.54%

9.37%

Challenges persist. The DFW market remains very competitive. We must attract and develop new staff – especially lenders. We are actively working on our one problem credit and have reduced it about 25%.

Trinity Bank operates in a favorable economic environment. We remain committed to producing exceptional results.”

Actual for Quarter:

3 Months

(in 000’s)

06/30/2017

06/30/2016

Net Interest Income

$
2,094.

$
1,882.

11.3
%.

Non-Interest Income

130.

124.

4.8
%)

Non-Interest Expense

(886
)

(863
)

2.7
%.

Pretax Preprovision Income

1,338.

1,143.

17.1
%

Gains on Sale of Securities and Other Assets

86.

N/M

Loan Loss Provision

(60
).

–

N/M

Pretax Income

1,281

1,229

4.2
%.

Income Tax

(265
)

(263
)

.8
%.

Net Income

$
1,016

$
966.

5.2
%.

Diluted Weighted Average Shares

1,121

1,129

Earnings Per Share

.91.

.86.

5.4
%

Actual for 6 months

6 Months

(in 000’s)

06/30/2017

06/30/2016

Net Interest Income

$
4,100.

$
3,800.

7.9
%.

Non-Interest Income

259.

269.

(3.7
%)

Non-Interest Expense

(1,767
)

(1,750
)

1.0
%.

Pretax Preprovision Income

2,592.

2,319.

11.8
%.

Gains on Sale of Securities and Other Assets

134.

N/M

Gains on Sale of Foreclosed Assets

N/M

Loan Loss Provision

(1,060
)

N/M

Pretax Income

1,535.

2,453.

(37.4
%)

Income Tax

(162
)

(535
)

(69.7
%)

Net Income

$
1,373.

$
1,918.

(28.4
%)

Diluted Weighted Average Shares

1,123

1,131

Earnings Per Share

1.22.

1.70.

(28.2
%)

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

Quarter Ended

Six Months Ending

June 30

EARNINGS SUMMARY

2017

2016

Change

2017

2016

Change

Interest income

$
2,244

$
2,016

11.3
%

$
4,389

$
4,060

8.1
%

Interest expense

150

134

11.9
%

289

260

11.2
%

Net Interest Income

2,094

1,882

11.3
%

4,100

3,800

7.9
%

Service charges on deposits

2.7
%

$
80

$
76

5.3
%

Other income

5.7
%

179

193

-7.3
%

Total Non Interest Income

130

124

4.8
%

259

269

-3.7
%

Salaries and benefits expense

499

520

-4.0
%

$
1,007

$
1,029

-2.1
%

Occupancy and equipment expense

106

39.5
%

210

$
153

37.3
%

Other expense

281

267

5.2
%

550

$
568

-3.2
%

Total Non Interest Expense

886

863

2.7
%

1,767

1,750

1.0
%

Pretax pre-provision income

1,338

1,143

17.1
%

2,592

2,319

11.8
%

Gain on sale of securities

N/M

$
3

$
93

N/M

Gain on sale of foreclosed assets

N/M

–

$
0

N/M

Gain on sale of assets

N/M

–

$
41

N/M

Provision for Loan Losses

N/M

1,060

N/M

Earnings before income taxes

1,281

1,229

4.2
%

1,535

2,453

-37.4
%

Provision for income taxes

265

263

0.8
%

$
162

$
535

-69.7
%

Net Earnings

$
1,016

$
966

5.2
%

$
1,373

$
1,918

-28.4
%

Basic earnings per share

0.92

0.86

6.8
%

1.24

1.71

-27.5
%

Basic weighted average shares

1,106

1,118

1,108

1,120

outstanding

Diluted earnings per share

0.91

0.86

5.4
%

1.22

1.70

-28.2
%

Diluted weighted average shares outstanding

1,121

1,129

1,123

1,131

Average for Quarter

Average for Six Months

June 30

BALANCE SHEET SUMMARY

2017

2016

Change

2017

2016

Change

Total loans

$
131,481

$
118,028

11.4
%

$
131,230

$
120,049

9.3
%

Total short term investments

21,563

16,766

28.6
%

18,032

16,742

7.7
%

Total investment securities

84,656

80,062

5.7
%

83,297

78,055

6.7
%

Earning assets

237,700

214,856

10.6
%

232,559

214,846

8.2
%

Total assets

244,153

219,895

11.0
%

239,134

220,078

8.7
%

Noninterest bearing deposits

73,999

58,456

26.6
%

72,336

62,967

14.9
%

Interest bearing deposits

139,407

130,204

7.1
%

136,195

126,368

7.8
%

Total deposits

213,406

188,660

13.1
%

208,531

189,335

10.1
%

Fed Funds Purchased and Repurchase Agreements

358

-100.0
%

159

357

-55.5
%

Shareholders’ equity

$
30,024

$
29,460

1.9
%

$
29,863

$
29,109

2.6
%

TRINITY BANK N.A.

(Unaudited)

Average for Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

BALANCE SHEET SUMMARY

2017

2016

Total loans

$
131,481

$
130,977

$
124,012

$
120,931

$
118,028

Total short term investments

21,563

14,089

21,884

14,035

16,766

Total investment securities

84,656

82,294

81,207

81,166

80,062

Earning assets

237,700

227,360

227,103

216,132

214,856

Total assets

244,153

234,058

232,931

221,332

219,895

Noninterest bearing deposits

73,999

70,654

72,209

61,241

58,456

Interest bearing deposits

139,407

132,946

129,186

128,103

130,204

Total deposits

213,406

203,600

201,395

189,344

188,660

Fed Funds Purchased and Repurchase Agreements

320

361

358

Shareholders’ equity

$
30,024

$
29,701

$
29,746

$
30,278

$
29,460

Quarter Ended

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

HISTORICAL EARNINGS SUMMARY

2017

2016

Interest income

$
2,244

$
2,145

$
2,050

$
2,010

$
2,016

Interest expense

150

139

138

136

134

Net Interest Income

2,094

2,006

1,912

1,874

1,882

Service charges on deposits

Other income

115

Total Non Interest Income

130

131

153

124

Salaries and benefits expense

499

508

526

476

520

Occupancy and equipment expense

106

104

Other expense

281

269

210

268

267

Total Non Interest Expense

886

881

813

816

863

Pretax pre-provision income

1,338

1,255

1,230

1,211

1,143

Gain on sale of securities

(1
)

Gain on sale of foreclosed assets

Gain on sale of other assets

Provision for Loan Losses

1,000

Earnings before income taxes

1,281

254

1,309

1,302

1,229

Provision for income taxes

265

(103
)

237

283

263

Net Earnings

$
1,016

$
357

$
1,072

$
1,019

$
966

Diluted earnings per share

$
0.91

$
0.32

$
0.96

$
0.91

$
0.86

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

2017

2016

Total loans

$
132,854

$
131,531

$
132,140

$
123,995

$
117,616

Total short term investments

20,090

28,599

9,615

12,817

13,269

Total investment securities

88,902

81,820

83,241

80,951

79,974

Total earning assets

241,846

241,950

224,996

217,763

210,859

Allowance for loan losses

(2,731
)

(2,662
)

(1,652
)

(1,644
)

(1,633
)

Premises and equipment

2,780

2,698

2,525

1,764

1,425

Other Assets

6,433

5,950

6,875

8,918

5,353

Total assets

248,328

247,936

232,744

226,801

216,004

Noninterest bearing deposits

75,867

78,381

74,537

67,702

59,753

Interest bearing deposits

140,577

139,409

127,986

127,123

124,839

Total deposits

216,444

217,790

202,523

194,825

184,592

Fed Funds Purchased and Repurchase Agreements

361

Other Liabilities

872

923

472

1,793

1,235

Total liabilities

217,316

218,713

203,356

196,979

186,188

Shareholders’ Equity Actual

29,886

29,015

29,201

28,106

28,097

Unrealized Gain – AFS

1,126

208

187

1,716

1,719

Total Equity

$
31,012

$
29,223

$
29,388

$
29,822

$
29,816

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

NONPERFORMING ASSETS

2017

2016

Nonaccrual loans

$
2,345

$
2,527

$
2,753

$
3,173

$
1,349

Restructured loans

$
0

Other real estate & foreclosed assets

$
0

Accruing loans past due 90 days or more

$
0

Total nonperforming assets

$
2,345

$
2,527

$
2,753

$
3,173

$
1,349

Accruing loans past due 30-89 days

$
0

$
121

$
0

Total nonperforming assets as a percentage

of loans and foreclosed assets

1.77
%

1.92
%

2.08
%

2.56
%

1.15
%

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

2017

2016

Balance at beginning of period

$
2,662

$
1,652

$
1,644

$
1,633

$
1,624

Loans charged off

Loan recoveries

Net (charge-offs) recoveries

Provision for loan losses

1,000

Balance at end of period

$
2,731

$
2,662

$
1,652

$
1,644

$
1,633

Allowance for loan losses

as a percentage of total loans

2.06
%

2.02
%

1.25
%

1.33
%

1.39
%

Allowance for loan losses

as a percentage of nonperforming assets

116
%

105
%

60
%

52
%

121
%

Net charge-offs (recoveries) as a

percentage of average loans

-0.01
%

Provision for loan losses

as a percentage of average loans

0.05
%

0.76
%

N/A

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

SELECTED RATIOS

2017

2016

Return on average assets (annualized)

1.66
%

0.61
%

1.84
%

1.76
%

Return on average equity (annualized)

13.54
%

4.81
%

14.32
%

13.46
%

13.12
%

Return on average equity (excluding unrealized gain on investments)

13.78
%

4.85
%

14.97
%

14.33
%

13.97
%

Average shareholders’ equity to average assets

12.30
%

12.69
%

12.86
%

13.68
%

13.40
%

Yield on earning assets (tax equivalent)

4.19
%

4.20
%

4.13
%

4.14
%

4.16
%

Effective Cost of Funds

0.25
%

0.26
%

0.25
%

Net interest margin (tax equivalent)

3.94
%

3.95
%

3.88
%

3.92
%

Efficiency ratio (tax equivalent)

35.8
%

37.0
%

35.8
%

36.2
%

38.8
%

End of period book value per common share

$
28.04

$
26.37

$
26.50

$
26.89

$
26.67

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

$
27.02

$
26.19

$
26.33

$
25.34

$
25.13

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

1,106

1,108

1,109

1,118

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

Quarter Ending

June 30, 2017

June 30, 2016

Tax

Average

Equivalent

Average

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Balance

Interest

Yield

Interest Earning Assets:

Short term investment

$
21,189

1.25
%

$
16,394

0.78
%

FRB Stock

374

6.00
%

372

6.00
%

Taxable securities

220

0.00
%

Tax Free securities

84,436

569

2.70
%

3.88
%

80,062

501

2.50
%

3.61
%

Loans

131,481

1,603

4.88
%

118,028

1,477

5.01
%

Total Interest Earning Assets

237,700

2,244

3.78
%

4.19
%

214,856

2,016

3.75
%

4.16
%

Noninterest Earning Assets:

Cash and due from banks

4,585

3,822

Other assets

4,556

2,845

Allowance for loan losses

(2,688
)

(1,628
)

Total Noninterest Earning Assets

6,453

5,039

Total Assets

$
244,153

$
219,895

Interest Bearing Liabilities:

Transaction and Money Market accounts

111,772

0.34
%

105,624

0.33
%

Certificates and other time deposits

27,635

0.81
%

24,580

0.76
%

Other borrowings

0.30
%

358

0.30
%

Total Interest Bearing Liabilities

139,407

150

0.43
%

130,562

134

0.41
%

Noninterest Bearing Liabilities:

Demand deposits

73,999

58,456

Other liabilities

723

1,417

Shareholders’ Equity

30,024

29,460

Total Liabilities and Shareholders Equity

$
244,153

$
219,895

Net Interest Income and Spread

2,094

3.34
%

3.76
%

1,882

3.34
%

3.75
%

Net Interest Margin

3.52
%

3.94
%

3.50
%

3.92
%

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

June 30

2017

2016

LOAN PORTFOLIO

Commercial and industrial

$
74,775

56.28
%

$
61,818

52.56
%

Real estate:

Commercial

19,560

14.72
%

22,880

19.45
%

Residential

21,337

16.06
%

19,278

16.39
%

Construction and development

16,432

12.37
%

12,105

10.29
%

Consumer

750

0.56
%

1,535

1.31
%

Total loans (gross)

132,854

100.00
%

117,616

100.00
%

Unearned discounts

0.00
%

Total loans (net)

$
132,854

100.00
%

$
117,616

100.00
%

June 30

2017

2016

REGULATORY CAPITAL DATA

Tier 1 Capital

$
29,886

$
28,098

Total Capital (Tier 1 + Tier 2)

$
31,820

$
29,731

Total Risk-Adjusted Assets

$
153,768

$
133,311

Tier 1 Risk-Based Capital Ratio

19.44
%

21.08
%

Total Risk-Based Capital Ratio

20.69
%

22.03
%

Tier 1 Leverage Ratio

12.24
%

12.78
%

OTHER DATA

Full Time Equivalent

Employees (FTE’s)

Stock Price Range

(For the Three Months Ended):

High

$
63.00

$
50.00

Low

$
57.00

$
45.06

$
61.00

$
49.50

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 ithas 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.

SOURCE: Trinity Bank, N.A.

ReleaseID: 469911

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