Trinity Bank Reports Return on Assets of 1.32 % Return on Equity 12.35%

FORT WORTH, TX / ACCESSWIRE / July 28, 2020 / Trinity Bank N.A. (OTC Bulletin Board:TYBT) today announced operating results for the three months ending June 30, 2020 and YTD results for the six months ending June 30, 2020.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $1,130,000 or $1.00 per diluted common share for the second quarter of 2020, compared to $374,000 or $0.33 per diluted common share for the second quarter of 2019, an increase of 203.0%.

For the first six months of 2020, Net Income after Taxes amounted to $2,254,000, an increase of 43% over the first half of 2019 results of $1,576,000. Earnings per diluted common share for the first half of 2020 were $1.99, an increase of 41% over the first half of 2019 results of $1.41 per diluted common share.

Barney Wiley, President, stated, "The primary focus in the 2Q was (and will continue to be) ADAPTING, IMPROVISING, and OVERCOMING. Our staff has performed admirably, going above and beyond expectations as our nation copes with the chaos created by the virus pandemic."

"The main story for 2Q was the SBA Payroll Protection Program. Trinity Bank was able to participate fully (thanks to our superb operations group) despite having never made an SBA loan prior to the PPP facility. To date, we have funded 268 PPP loans totaling $51,381,000 – average loan size of $191,700. While the PPP loans are at a 1% interest rate, we did receive most of the fees from the SBA associated with PPP in June. The bank has to take these fees into income over the life of the loans (undetermined at this time). With the portion of the fees taken into income attributable to 2Q, we were able to absorb all of the extraordinary PPP expense (personnel and software) and make a substantial addition to the Reserve for Loan Losses."

"This is an extremely challenging environment. With our core earnings (excluding PPP impact), strong capital base, asset quality, and efficiency, we remain cautiously optimistic about the future for Trinity Bank."

Profitability

6/30/2020

6/30/2019

Return on Assets

1.32%

0.56%

Return on Equity

12.35%

4.24%

Page 2 – Trinity Bank Second Quarter 2020

Average for Quarter Ending 6-30-20

(in 000's)

6/30/2020

6/30/2019

Loans

PPP Loans

Loans

$212,258

$41,726

$170,352

$156,571

35.6

8.8

Deposits

$302,967

$228,583

32.5

Page 3 – Trinity Bank Six Months YTD

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

2020

2019

Change

2020

2019

Change

Interest income

$3,042

$2,977

2.2%

$5,964

$5,791

3.0%

Interest expense

188

475

-60.4%

569

869

-34.5%

Net Interest Income

2,854

2,502

14.1%

5,395

4,922

9.6%

Service charges on deposits

-7.1%

9.9%

Other income

-1.3%

159

164

-3.0%

Total Non Interest Income

118

122

-3.3%

248

245

1.2%

Salaries and benefits expense

1,037

788

31.6%

1,892

1,551

22.0%

Occupancy and equipment expense

113

116

-2.6%

228

223

2.2%

Other expense

412

375

9.9%

814

632

28.8%

Total Non Interest Expense

1,562

1,279

22.1%

2,934

2,406

21.9%

Pretax pre-provision income

1,410

1,345

4.8%

2,709

2,761

-1.9%

Gain on sale of securities

N/M

(2)

N/M

Gain on sale of foreclosed assets

N/M

Gain on sale of assets

N/M

Provision for Loan Losses

125

1,000

-87.5%

125

1,030

-87.9%

Earnings before income taxes

1,285

346

271.4%

2,584

1,729

49.5%

Provision for income taxes

155

(28)

N/M

330

153

115.7%

Net Earnings

$1,130

$374

202.1%

$2,254

$1,576

43.0%

Basic earnings per share

1.04

0.34

205.9%

2.07

1.43

44.8%

Basic weighted average shares

1,086

1,100

1,087

1,099

outstanding

Diluted earnings per share – estimate

1.00

0.33

203.0%

1.99

1.41

41.1%

Diluted weighted average shares outstanding

1,133

1,119

1,134

1,118

Average for Quarter

Average for Six Months

June 30

BALANCE SHEET SUMMARY

2020

2019

Change

2020

2019

Change

Total loans

$212,258

$156,571

35.6%

$190,812

$154,327

23.6%

Total short term investments

41,211

26,034

58.3%

40,061

19,038

110.4%

Total investment securities

81,496

74,627

9.2%

77,753

76,940

1.1%

Earning assets

334,965

257,232

30.2%

308,626

250,305

23.3%

Total assets

342,369

264,826

29.3%

316,082

258,314

22.4%

Noninterest bearing deposits

122,409

73,665

66.2%

105,435

73,772

42.9%

Interest bearing deposits

180,558

154,918

16.6%

171,387

148,664

15.3%

Total deposits

302,967

228,583

32.5%

276,822

222,436

24.5%

Fed Funds Purchased and Repurchase Agreements

N/M

590

N/M

Shareholders' equity

$36,611

$35,301

3.7%

$36,495

$34,624

5.4%

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

2020

2020

2019

2019

2019

Total loans

$
212,337

$
169,367

$
154,764

$
156,304

$
156,571

Total short term investments

41,211

38,126

69,110

35,991

26,034

Total investment securities

81,496

74,406

70,508

72,212

74,627

Earning assets

335,044

281,899

294,382

264,507

257,232

Total assets

342,369

289,795

301,596

272,245

264,826

Noninterest bearing deposits

122,409

89,277

101,932

82,822

73,665

Interest bearing deposits

180,558

161,400

168,784

152,296

154,918

Total deposits

302,967

250,677

270,716

235,118

228,583

Fed Funds Purchased and Repurchase Agreements

0

0

0

0

0

Shareholders' equity

$
36,611

$
36,379

$
35,382

$
36,081

$
35,301

Quarter Ended

HISTORICAL EARNINGS SUMMARY

June 30,
2020

March 31,
2020

Dec 31,
2019

Sept. 30,
2019

June 30,
2019

Interest income

$
3,042

$
2,922

$
2,996

$
3,025

$
2,977

Interest expense

188

381

490

493

475

Net Interest Income

2,854

2,541

2,506

2,532

2,502

Service charges on deposits

39

50

48

36

42

Other income

79

78

79

104

80

Total Non Interest Income

118

128

127

140

122

Salaries and benefits expense

1,037

856

740

813

788

Occupancy and equipment expense

113

114

93

120

116

Other expense

412

400

370

299

375

Total Non Interest Expense

1,562

1,370

1,203

1,232

1,279

Pretax pre-provision income

1,410

1,299

1,430

1,440

1,345

Gain on sale of securities

0

0

0

12

1

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

125

0

0

0

1,000

Earnings before income taxes

1,285

1,299

1,430

1,452

346

Provision for income taxes

155

175

210

206

(28
)

Net Earnings

$
1,130

$
1,124

$
1,220

$
1,246

$
374

Diluted earnings per share

$
1.00

$
0.99

$
1.12

$
1.08

$
0.33

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

2020

2020

2019

2019

2019

Total loans

$
216,848

$
173,992

$
167,587

$
157,475

$
156,014

Total short term investments

38,648

37,566

60,603

56,328

19,321

Total investment securities

90,658

73,287

70,804

71,394

72,014

Total earning assets

346,154

284,845

298,994

285,197

247,349

Allowance for loan losses

(2,396
)

(2,269
)

(2,262
)

(2,259
)

(2,224
)

Premises and equipment

2,455

2,522

2,560

2,544

2,580

Other Assets

5,673

6,567

9,770

9,513

8,040

Total assets

351,886

291,665

309,062

294,995

255,745

Noninterest bearing deposits

118,933

89,581

100,527

97,519

76,168

Interest bearing deposits

192,159

162,726

170,191

159,712

143,710

Total deposits

311,092

252,307

270,718

257,231

219,878

Fed Funds Purchased and Repurchase Agreements

0

0

0

0

0

Other Liabilities

1,501

1,779

1,047

1,830

614

Total liabilities

312,593

254,086

271,765

259,061

220,492

Shareholders' Equity Actual

37,089

36,069

35,858

34,920

34,572

Unrealized Gain – AFS

2,203

1,510

1,439

1,014

681

Total Equity

$
39,292

$
37,579

$
37,297

$
35,934

$
35,253

Quarter Ending

June 30,
2020
March 31,
2020

Dec 31,
2019

Sept. 30,
2019

June 30,
2019

NONPERFORMING ASSETS

Nonaccrual loans

$
388

$
408

$
419

$
432

$
446

Restructured loans

$
0

$
0

$
0

$
0

$
0

Other real estate & foreclosed assets

$
320

$
320

$
320

$
320

$
320

Accruing loans past due 90 days or more

$
0

$
0

$
0

$
0

$
0

Total nonperforming assets

$
708

$
728

$
739

$
752

$
766

Accruing loans past due 30-89 days

$
0

$
248

$
0

$
0

$
0

Total nonperforming assets as a percentage

of loans and foreclosed assets

0.33
%

0.42
%

0.44
%

0.45
%

0.49
%

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

2020

2020

2019

2019

2019

Balance at beginning of period

$
2,269

$
2,262

$
2,259

$
2,224

$
1,703

Loans charged off

0

0

0

0

498

Loan recoveries

2

7

3

35

19

Net (charge-offs) recoveries

2

7

3

35

(479
)

Provision for loan losses

125

0

0

0

1,000

Balance at end of period

$
2,396

$
2,269

$
2,262

$
2,259

$
2,224

Allowance for loan losses

as a percentage of total loans

1.10
%

1.30
%

1.35
%

1.43
%

1.43
%

Allowance for loan losses

as a percentage of nonperforming assets

338
%

312
%

306
%

300
%

290
%

Net charge-offs (recoveries) as a

percentage of average loans

0.00
%

-0.01
%

0.00
%

-0.02
%

0.31
%

Provision for loan losses

as a percentage of average loans

0.06
%

0.00
%

0.00
%

0.00
%

0.64
%

Quarter Ending

June 30,
2020
March 31,
2020

Dec 31,
2019

Sept. 30,
2019

June 30,
2019

SELECTED RATIOS

Return on average assets (annualized)

1.32
%

1.55
%

1.62
%

1.83
%

0.56
%

Return on average equity (annualized)

12.35
%

11.80
%

13.34
%

13.81
%

4.24
%

Return on average equity (excluding unrealized gain on investments)

12.34
%

12.36
%

13.79
%

14.21
%

4.27
%

Average shareholders' equity to average assets

10.69
%

12.55
%

11.73
%

13.25
%

13.33
%

Yield on earning assets (tax equivalent)

3.81
%

4.33
%

4.67
%

4.79
%

4.85
%

Effective Cost of Funds

0.22
%

0.54
%

0.70
%

0.75
%

0.74
%

Net interest margin (tax equivalent)

3.59
%

3.79
%

3.97
%

4.04
%

4.11
%

Efficiency ratio (tax equivalent)

51.6
%

48.9
%

43.4
%

43.8
%

46.2
%

End of period book value per common share

$
36.18

$
34.54

$
34.22

$
32.85

$
32.14

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

$
34.15

$
33.15

$
32.90

$
31.92

$
31.52

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

1,086

1,088

1,090

1,094

1,097

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

Quarter Ending

June 30,2020

June 30,2019

Tax

Average

Equivalent

Average

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Balance

Interest

Yield

Interest Earning Assets:

Short term investment

$ 41,211

0.13%

$ 25,653

153

2.39%

FRB Stock

395

6.00%

381

6.00%

Taxable securities

0.00%

1,593

2.26%

Tax Free securities

81,101

564

2.78%

3.52%

73,034

539

2.95%

3.74%

Loans

212,258

2,459

4.63%

156,571

2,270

5.80%

Total Interest Earning Assets

334,965

3,042

3.63%

3.81%

257,232

2,977

4.63%

4.85%

Noninterest Earning Assets:

Cash and due from banks

5,223

5,021

Other assets

4,453

4,322

Allowance for loan losses

(2,272)

(1,749)

Total Noninterest Earning Assets

7,404

7,594

Total Assets

$342,369

$264,826

Interest Bearing Liabilities:

Transaction and Money Market accounts

138,440

0.07%

125,618

321

1.02%

Certificates and other time deposits

42,118

163

1.55%

29,300

154

2.10%

Other borrowings

0.00%

Total Interest Bearing Liabilities

180,558

188

0.42%

154,918

475

1.23%

Noninterest Bearing Liabilities:

Demand deposits

122,409

73,665

Other liabilities

1,352

942

Shareholders' Equity

38,050

35,301

Total Liabilities and Shareholders Equity

$342,369

$264,826

Net Interest Income and Spread

2,854

3.22%

3.39%

2,502

3.40%

3.62%

Net Interest Margin

3.41%

3.59%

3.89%

4.11%

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

June 30

2020

2019

LOAN PORTFOLIO

Commercial and industrial

$140,483

64.78%

$87,559

56.05%

Real estate:

Commercial

31,017

14.30%

23,311

14.92%

Residential

23,043

10.63%

22,471

14.39%

Construction and development

21,875

10.09%

22,445

14.37%

Consumer

430

0.20%

419

0.27%

Total loans (gross)

216,848

100.00%

156,205

100.00%

Unearned discounts

0.00%

Total loans (net)

$216,848

100.00%

$156,205

100.00%

June 30

2020

2019

REGULATORY CAPITAL DATA

Tier 1 Capital

$37,089

$34,572

Total Capital (Tier 1 + Tier 2)

$39,370

$36,708

Total Risk-Adjusted Assets

$182,279

$170,838

Tier 1 Risk-Based Capital Ratio

20.35%

20.24%

Total Risk-Based Capital Ratio

21.60%

21.49%

Tier 1 Leverage Ratio

10.83%

13.05%

OTHER DATA

Full Time Equivalent

Employees (FTE's)

Stock Price Range

(For the Three Months Ended):

High

$64.98

$66.00

Low

$58.90

$60.50

$64.00

SOURCE: Trinity Bank N.A.

ReleaseID: 599251

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