Trinity Bank Reports 2018 1st Quarter Net Income of $1,129,000

FORT WORTH, TX / ACCESSWIRE / April 23, 2018 / Trinity Bank N.A. (OTC PINK: TYBT) today announced operating results for the three months ending March 30, 2018.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $1,129,000 or $1.00 per diluted common share for the first quarter of 2018, compared to $357,000 or $.32 per diluted common share for the first quarter of 2017, an increase of 216.8%.

President Jeffrey M. Harp stated, “First Quarter 2018 results reflect a recovery to our historical levels of Return on Assets and Return on Equity. Trinity Bank experienced better than the expected loan and deposit growth in 1Q along with our usual exceptional operating efficiency.”

“I am extremely pleased to announce that Matt Opitz has joined our management team as Executive Vice president. Matt has a proven track record in the Fort Worth market as a business generator and relationship manager as well as a developer of young lenders. His addition is a major part of the succession plan put in place to ensure continued success for Trinity Bank.”

“As previously announced, Trinity Bank will pay its thirteenth semiannual dividend, $.54 per share, on April 30, 2018. This dividend amount represents a 5.9% increase over the prior dividend of $.51 per share paid in October 2017.”

Profitability

3/30/2018

3/31/2017

Return on Assets

1.73
%

0.61
%

Return on Equity

14.34
%

4.85
%

Average for Quarter Ending

(in 000’s)

Loans

$
137,942

$
130,977

5.3

Deposits

$
228,828

$
203,600

12.4

Actual for Quarter Ending

(in 000’s)

3/30/2018

3/31/2017

Net Interest Income

$
2,277

$
2,006

13.5

Non-Interest Income

129

130

(.8
)

Non-Interest Expense

(1,131
)

(881
)

28.4

Pretax Preprovision Income

$
1,275

$
1,255

1.6

Gain on Sale of Securities and Assets

$
(1
)

N/M

Loan Loss Provision

1,000

N/M

Pre Tax Income

1,275

254

402.0

Income Tax

146

(103
)

N/M

Net Income

$
1,129

$
357

216.2

Diluted Weighted Average Shares

1,125

1,127

Earnings per Share

$
1.00

$
0.32

216.8

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

March 31

EARNINGS SUMMARY

2018

2017

Change

Interest income

$
2,486

$
2,145

15.9
%

Interest expense

209

139

50.4
%

Net Interest Income

2,277

2,006

13.5

Service charges on deposits

0.0
%

Other income

-1.1
%

Total Non Interest Income

129

130

-0.8

Salaries and benefits expense

628

508

23.6
%

Occupancy and equipment expense

121

104

16.3
%

Other expense

382

269

42.0
%

Total Non Interest Expense

1,131

881

28.4

Pretax pre-provision income

1,275

1,255

1.6

Gain on sale of securities

(1
)

N/M

Gain on sale of foreclosed assets

N/M

Gain on sale of assets

N/M

Provision for Loan Losses

1,000

N/M

Earnings before income taxes

1,275

254

402.0
%

Provision for income taxes

146

(103
)

N/M

Net Earnings

1,129

357

216.2

Basic earnings per share

1.02

0.32

216.8

Basic weighted average shares

1,106

1,108

outstanding

Diluted earnings per share – estimate

1.00

0.32

216.8

Diluted weighted average shares outstanding

1,125

1,127

Average for Quarter

March 31

BALANCE SHEET SUMMARY

2018

2017

Change

Total loans

$
137,942

$
130,977

5.3
%

Total short term investments

23,035

14,089

63.5
%

Total investment securities

92,926

82,294

12.9
%

Earning assets

253,903

227,360

11.7

Total assets

260,399

234,058

11.3

Noninterest bearing deposits

82,622

70,654

16.9
%

Interest bearing deposits

146,206

132,946

10.0
%

Total deposits

228,828

203,600

12.4

Fed Funds Purchased and Repurchase Agreements

320

-100.0
%

Shareholders’ equity

31,308

29,701

5.4

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

Average for Quarter Ending

March 31,

Dec 31,

Sept. 30,

June 30,

March 31,

BALANCE SHEET SUMMARY

2018

2017

Total loans

$
137,942

$
130,708

$
131,507

$
131,481

$
130,977

Total short term investments

23,035

33,929

26,349

21,563

14,089

Total investment securities

92,926

92,935

89,922

84,656

82,294

Earning assets

253,903

257,572

247,778

237,700

227,360

Total assets

260,399

264,668

254,291

244,153

234,058

Noninterest bearing deposits

82,622

81,387

75,572

73,999

70,654

Interest bearing deposits

146,206

150,771

146,331

139,407

132,946

Total deposits

228,828

232,158

221,903

213,406

203,600

Fed Funds Purchased and Repurchase Agreements

320

Shareholders’ equity

31,308

31,546

31,428

30,024

29,701

Quarter Ended

March 31,

Dec 31,

Sept. 30,

June 30,

March 31,

HISTORICAL EARNINGS SUMMARY

2018

2017

Interest income

$
2,486

$
2,407

$
2,345

$
2,244

$
2,145

Interest expense

209

192

175

150

139

Net Interest Income

2,277

2,215

2,170

2,094

2,006

Service charges on deposits

Other income

Total Non Interest Income

129

126

129

130

Salaries and benefits expense

628

575

520

499

508

Occupancy and equipment expense

121

112

110

106

104

Other expense

382

290

276

281

269

Total Non Interest Expense

1,131

977

906

886

881

Pretax pre-provision income

1,275

1,364

1,393

1,338

1,255

Gain on sale of securities

(1
)

Gain on sale of foreclosed assets

Gain on sale of other assets

Provision for Loan Losses

507

1,000

Earnings before income taxes

1,275

859

1,333

1,281

254

Provision for income taxes

146

217

280

265

(103
)

Net Earnings

1,129

642

1,053

1,016

357

Diluted earnings per share

$
1.00

$
0.57

$
0.94

$
0.91

$
0.32

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

Ending Balance

March 31,

Dec 31,

Sept. 30,

June 30,

March 31,

HISTORICAL BALANCE SHEET

2018

2017

Total loans

$
142,848

$
139,818

$
129,762

$
132,854

$
131,531

Total short term investments

20,766

19,027

39,662

20,090

28,599

Total investment securities

93,034

93,518

91,467

88,902

81,820

Total earning assets

256,648

252,363

260,891

241,846

241,950

Allowance for loan losses

(1,604
)

(1,600
)

(1,493
)

(2,731
)

(2,662
)

Premises and equipment

2,725

2,731

2,747

2,780

2,698

Other Assets

5,046

5,817

6,050

6,433

5,950

Total assets

262,815

259,311

268,195

248,328

247,936

Noninterest bearing deposits

86,903

84,445

79,366

75,867

78,381

Interest bearing deposits

143,929

143,638

155,790

140,577

139,409

Total deposits

230,832

228,083

235,156

216,444

217,790

Fed Funds Purchased and Repurchase Agreements

Other Liabilities

1,143

352

1,548

872

923

Total liabilities

231,975

228,435

236,704

217,316

218,713

Shareholders’ Equity Actual

31,497

30,993

30,310

29,886

29,015

Unrealized Gain – AFS

(657
)

(117
)

1,181

1,126

208

Total Equity

30,840

30,876

31,491

31,012

29,223

Quarter Ending

March 31,

Dec 31,

Sept. 30,

June 30,

March 31,

NONPERFORMING ASSETS

2018

2017

Nonaccrual loans

$
224

$
394

$
921

$
2,345

$
2,527

Restructured loans

$
0

Other real estate & foreclosed assets

$
0

Accruing loans past due 90 days or more

$
0

Total nonperforming assets

224

394

921

2,345

2,527

Accruing loans past due 30-89 days

$
0

Total nonperforming assets as a percentage

of loans and foreclosed assets

0.16
%

0.28
%

0.71
%

1.77
%

1.92
%

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

Quarter Ending

ALLOWANCE FOR

March 31,

Dec 31,

Sept. 30,

June 30,

March 31,

LOAN LOSSES

2018

2017

Balance at beginning of period

1,600

1,493

2,731

2,662

1,652

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

1,604

1,600

1,493

2,731

2,662

Allowance for loan losses

as a percentage of total loans

1.12
%

1.14
%

1.15
%

2.06
%

2.02
%

Allowance for loan losses

as a percentage of nonperforming assets

716
%

406
%

162
%

116
%

105
%

Net charge-offs (recoveries) as a

percentage of average loans

-0.01
%

0.31
%

0.99
%

-0.01
%

Provision for loan losses

as a percentage of average loans

0.00
%

0.39
%

0.05
%

0.76
%

Quarter Ending

March 31,

Dec 31,

Sept. 30,

June 30,

March 31,

SELECTED RATIOS

2018

2017

Return on average assets (annualized)

1.73
%

0.97
%

1.66
%

0.61
%

Return on average equity (annualized)

14.42
%

8.14
%

13.40
%

13.54
%

4.81
%

Return on average equity (excluding unrealized gain on investments)

14.34
%

8.44
%

13.90
%

13.78
%

4.85
%

Average shareholders’ equity to average assets

12.02
%

11.92
%

12.36
%

12.30
%

12.69
%

Yield on earning assets (tax equivalent)

4.19
%

4.17
%

4.22
%

4.19
%

4.20
%

Effective Cost of Funds

0.33
%

0.29
%

0.28
%

0.25
%

Net interest margin (tax equivalent)

3.86
%

3.88
%

3.94
%

3.95
%

Efficiency ratio (tax equivalent)

43.9
%

37.2
%

35.3
%

35.8
%

37.0
%

End of period book value per common share

$
27.88

$
27.92

$
28.47

$
28.04

$
26.37

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

$
28.48

$
28.02

$
27.41

$
27.02

$
26.19

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

1,106

1,108

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

3 Months Ending

March 31, 2018

March 31, 2017

Tax

Average

Equivalent

Average

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Balance

Interest

Yield

Interest Earning Assets:

Short term investment

$
22,661

1.57
%

$
14,089

0.97
%

FRB Stock

374

6.00
%

372

6.00
%

Taxable securities

0.00
%

446

0.90
%

Tax Free securities

92,926

649

2.79
%

3.53
%

81,475

545

2.68
%

3.86
%

Loans

137,942

1,742

5.05
%

130,977

1,559

4.76
%

Total Interest Earning Assets

253,903

2,486

3.92

4.19

227,359

2,145

3.77

4.20

Noninterest Earning Assets:

Cash and due from banks

3,767

4,444

Other assets

4,333

4,178

Allowance for loan losses

(1,604
)

(1,923
)

Total Noninterest Earning Assets

6,496

6,699

Total Assets

260,399

234,058

Interest Bearing Liabilities:

Transaction and Money Market accounts

120,561

146

0.48
%

105,954

0.30
%

Certificates and other time deposits

25,461

0.99
%

26,993

0.89
%

Other borrowings

0.30
%

321

0.30
%

Total Interest Bearing Liabilities

146,022

209

0.57
%

0.57

133,268

139

0.42

Noninterest Bearing Liabilities:

Demand deposits

82,622

70,654

Other liabilities

447

435

Shareholders’ Equity

31,308

29,701

Total Liabilities and Shareholders Equity

260,399

234,058

Net Interest Income and Spread

2,277

3.34

3.62

2,006

3.36

3.78

Net Interest Margin

3.58

3.86

3.53

3.95

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

March 31

2018

2017

LOAN PORTFOLIO

Commercial and industrial

$
78,423

54.86
%

$
76,442

54.52
%

Real estate:

Commercial

20,664

14.46
%

20,303

18.79
%

Residential

24,766

17.33
%

20,897

16.31
%

Construction and development

18,552

12.98
%

13,065

9.04
%

Consumer

539

0.38
%

824

1.34
%

Total loans (gross)

142,944

100.00

131,531

100.00
%

Unearned discounts

0.00
%

Total loans (net)

142,944

100.00

$
131,531

100.00
%

March 31

2018

2017

REGULATORY CAPITAL DATA

Tier 1 Capital

$
31,497

$
29,014

Total Capital (Tier 1 + Tier 2)

$
33,101

$
30,912

Total Risk-Adjusted Assets

$
160,648

$
151,085

Tier 1 Risk-Based Capital Ratio

19.61
%

19.20
%

Total Risk-Based Capital Ratio

20.60
%

20.46
%

Tier 1 Leverage Ratio

12.10
%

12.40
%

OTHER DATA

Full Time Equivalent

Employees (FTE’s)

Stock Price Range

(For the Three Months Ended):

High

$
59.83

$
63.00

Low

$
58.50

$
53.50

$
59.05

$
63.00

SOURCE: Trinity Bank NA

ReleaseID: 497042

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