Trinity Bank Reports 2019 3rd Quarter Net Income of $1,246,000

3rd Quarter Return on Assets 1.83%
3rd Quarter Return on Equity 14.21%

FORT WORTH, TX / ACCESSWIRE / October 17, 2019 / Trinity Bank N.A. (OTC PINK:TYBT) today announced operating results for the third quarter and the nine months ending September 30, 2019.

Results of Operation

For the third quarter 2019, Trinity Bank, N.A. reported Net Income after Taxes of $1,246,000, an increase of 4.7% over third quarter 2018 earnings of $1,190,000. Earnings per diluted common share for the third quarter 2019 amounted to $1.12, an increase of 4.7% over third quarter 2018 results of $1.07 per diluted common share.

For the first nine months of 2019, Net Income after Taxes was $2,823,000, a decrease of (18.8%) over the first nine months of 2018 results of $3,477,000. Earnings per diluted common share for the first nine months of 2019 were $2.53, a decrease of (18.7%) over the first nine months of 2018 results of $3.11 per diluted common share.

President Jeff Harp stated, “Third Quarter results were back in line with our historical levels of Return on Assets and Return on Equity – both well above Peer Group performance. We are on pace to have the second best year in our 16 year history. In addition, Trinity Bank will distribute its 16th semi-annual dividend of $.62 per share on October 31, 2019. Total dividend for 2019 will be $1.22, a 10% increase over 2018 dividends.”

Executive Vice President Barney C. Wiley reported, “The economic activity in our market remains strong. Competition for quality relationships remains very high. We are pleased to report growth in loan volume, deposits, and liquidity (funds we invest overnight at the Federal Reserve).”

In 000’s

 
  Month end
9-30-18
    Month end
9-30-19
    %  
Loans
  143,846     157,475       9.5 %
 
                       
Deposits
  219,782     257,231       17.0 %
 
                       
Liquid Assets
  23,080     56,328       144.0 %

“We are in the longest economic expansion in recent history. In baseball vernacular, we don’t know what inning we’re in. We are doing our best to be prepared for whatever scenario unfolds in the coming months and years.”

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     Nine Months Ending  
 
  September 30     %     September 30     %  
EARNINGS SUMMARY
  2019     2018     Change     2019     2018     Change  
 
                                   
Interest income
  $ 3,025     $ 2,658       13.8%     $ 8,816     $ 7,735       14.0%  
Interest expense
    493       309       59.5%       1,361       759       79.3%  
Net Interest Income
    2,532       2,349       7.8%       7,455       6,976       6.9%  
 
                                               
Service charges on deposits
    36       38       -5.3%       128       111       15.3%  
Other income
    104       111       -6.3%       257       304       -15.5%  
Total Non Interest Income
    140       149       -6.0%       385       415       -7.2%  
 
                                               
Salaries and benefits expense
    813       707       15.0%       2,364       2,067       14.4%  
Occupancy and equipment expense
    120       119       0.8%       343       346       -0.9%  
Other expense
    299       272       9.9%       931       956       -2.6%  
Total Non Interest Expense
    1,232       1,098       12.2%       3,638       3,369       8.0%  
 
                                               
Pretax pre-provision income
    1,440       1,400       2.9%       4,202       4,022       4.5%  
 
                                               
Gain on sale of securities
    12       4       N/M       10       11       N/M  
 
                                               
Provision for Loan Losses
    0       30       N/M       1,030       60       N/M  
 
                                               
Earnings before income taxes
    1,452       1,374       5.7%       3,182       3,973       -19.9%  
Provision for income taxes
    206       184       12.0%       359       496       -27.6%  
Net Earnings
  $ 1,246     $ 1,190       4.7%     $ 2,823     $ 3,477       -18.8%  
 
                                               
Basic earnings per share
    1.14       1.08       5.2%       2.57       3.15       -18.4%  
Basic weighted average shares
    1,095       1,100               1,098       1,103          
outstanding
                                               
 
                                               
Diluted earnings per share – estimate
    1.12       1.07       4.7%       2.53       3.11       -18.7%  
Diluted weighted average shares outstanding
    1,114       1,115               1,117       1,118          
                                                 
                                                 
 
  Average for Quarter           Average for Nine Months        
 
  September 30     %     September 30     %  
BALANCE SHEET SUMMARY
  2019     2018     Change     2019     2018     Change  
 
                                   
Total loans
  $ 156,304     $ 145,280       7.6%     $ 154,962     $ 143,555       7.9%  
Total short term investments
    35,991       18,368       95.9%       24,623       17,398       41.5%  
Total investment securities
    72,212       80,509       -10.3%       75,346       86,020       -12.4%  
 
                                               
Earning assets
    264,507       244,157       8.3%       254,931       246,973       3.2%  
 
                                               
Total assets
    272,245       251,839       8.1%       262,968       254,084       3.5%  
 
                                               
Noninterest bearing deposits
    82,822       83,151       -0.4%       76,821       82,008       -6.3%  
Interest bearing deposits
    152,296       135,815       12.1%       149,889       139,353       7.6%  
 
                                               
Total deposits
    235,118       218,966       7.4%       226,710       221,361       2.4%  
 
                                               
Fed Funds Purchased and Repurchase Agreements
    0       0       N/M       391       522       N/M  
 
                                               
Shareholders’ equity
  $ 36,081     $ 32,151       12.2%     $ 35,115     $ 31,568       11.2%  

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

 
  Average for Quarter Ending  
 
  Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
BALANCE SHEET SUMMARY
  2019     2019     2019     2018     2018  
 
                             
Total loans
  $ 156,304     $ 156,571     $ 152,227     $ 144,801     $ 145,280  
Total short term investments
    35,991       26,034       12,728       23,175       18,368  
Total investment securities
    72,212       74,627       79,278       79,700       80,509  
 
                                       
Earning assets
    264,507       257,232       244,233       247,676       244,157  
 
                                       
Total assets
    272,245       264,826       251,901       255,113       251,839  
 
                                       
Noninterest bearing deposits
    82,822       73,665       73,881       81,187       83,151  
Interest bearing deposits
    152,296       154,918       142,339       141,081       135,815  
 
                                       
Total deposits
    235,118       228,583       216,220       222,268       218,966  
 
                                       
Fed Funds Purchased and Repurchase Agreements
    0       0       1,187       0       0  
 
                                       
Shareholders’ equity
  $ 36,081     $ 35,301     $ 33,940     $ 31,948     $ 32,151  
                                         
                                         
 
  Quarter Ended  
 
  Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
HISTORICAL EARNINGS SUMMARY
  2019     2019     2019     2018     2018  
 
                             
 
                             
Interest income
  $ 3,025     $ 2,977     $ 2,814     $ 2,785     $ 2,658  
Interest expense
    493       475       394       358       309  
Net Interest Income
    2,532       2,502       2,420       2,427       2,349  
 
                                       
Service charges on deposits
    36       42       40       31       38  
Other income
    104       80       83       101       111  
Total Non Interest Income
    140       122       123       132       149  
 
                                       
Salaries and benefits expense
    813       788       763       757       707  
Occupancy and equipment expense
    120       116       107       120       119  
Other expense
    299       375       259       289       272  
Total Non Interest Expense
    1,232       1,279       1,129       1,166       1,098  
 
                                       
Pretax pre-provision income
    1,440       1,345       1,414       1,393       1,400  
 
                                       
Gain on sale of securities
    12       1       (2 )     3       4  
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
    0       1,000       30       30       30  
 
                                       
Earnings before income taxes
    1,452       346       1,382       1,366       1,374  
Provision for income taxes
    206       (28 )     180       166       184  
 
                                       
Net Earnings
  $ 1,246     $ 374     $ 1,202     $ 1,200     $ 1,190  
 
                                       
Diluted earnings per share
  $ 1.12     $ 0.33     $ 1.08     $ 1.08     $ 1.07  

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

 
  Ending Balance  
 
  Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
HISTORICAL BALANCE SHEET
  2019     2019     2019     2018     2018  
 
                             
Total loans
  $ 157,475     $ 156,014     $ 160,028     $ 154,184     $ 143,846  
Total short term investments
    56,328       19,321       14,160       13,127       23,080  
Total investment securities
    71,394       72,014       75,906       81,896       79,234  
 
                                       
Total earning assets
    285,197       247,349       250,094       249,207       246,160  
 
                                       
Allowance for loan losses
    (2,259 )     (2,224 )     (1,703 )     (1,671 )     (1,664 )
Premises and equipment
    2,544       2,580       2,613       2,627       2,652  
Other Assets
    9,513       8,040       5,506       7,018       5,892  
 
                                       
Total assets
    294,995       255,745       256,510       257,181       253,040  
 
                                       
Noninterest bearing deposits
    97,519       76,168       69,934       85,668       81,856  
Interest bearing deposits
    159,712       143,710       150,895       137,979       137,926  
 
                                       
Total deposits
    257,231       219,878       220,829       223,647       219,782  
 
                                       
Fed Funds Purchased and Repurchase Agreements
    0       0       0       0       0  
Other Liabilities
    1,830       614       1,158       701       1,311  
 
                                       
Total liabilities
    259,061       220,492       221,987       224,348       221,093  
 
                                       
Shareholders’ Equity Actual
    34,920       34,572       34,522       34,051       32,772  
Unrealized Gain – AFS
    1,014       681       1       (1,218)       (825)  
Total Equity
  $ 35,934     $ 35,253     $ 34,523     $ 32,833     $ 31,947  
                                         
                                         
 
  Quarter Ending  
 
  Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
NONPERFORMING ASSETS
  2019     2019     2019     2018     2018  
 
                             
Nonaccrual loans
  $ 432     $ 446     $ 952     $ 60     $ 137  
Restructured loans
  $ 0     $ 0     $ 0     $ 0     $ 0  
Other real estate & foreclosed assets
  $ 320     $ 320     $ 0     $ 0     $ 0  
Accruing loans past due 90 days or more
  $ 0     $ 0     $ 0     $ 0     $ 0  
Total nonperforming assets
  $ 752     $ 766     $ 952     $ 60     $ 137  
 
                                       
Accruing loans past due 30-89 days
  $ 0     $ 0     $ 477     $ 0     $ 456  
 
                                       
Total nonperforming assets as a percentage
                                       
of loans and foreclosed assets
    0.48 %     0.49 %     0.59 %     0.04 %     0.10 %

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

 
  Quarter Ending  
ALLOWANCE FOR
  Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
LOAN LOSSES
  2019     2019     2019     2018     2018  
 
                             
Balance at beginning of period
  $ 2,224     $ 1,703     $ 1,671     $ 1,664     $ 1,634  
Loans charged off
    0       498       0       23       0  
Loan recoveries
    35       19       2       0       0  
Net (charge-offs) recoveries
    35       (479 )     2       (23 )     0  
Provision for loan losses
    0       1,000       30       30       30  
Balance at end of period
  $ 2,259     $ 2,224     $ 1,703     $ 1,671     $ 1,664  
 
                                       
Allowance for loan losses
                                       
as a percentage of total loans
    1.43 %     1.43 %     1.06 %     1.08 %     1.10 %
Allowance for loan losses
                                       
as a percentage of nonperforming assets
    300 %     290 %     179 %     2785 %     930 %
Net charge-offs (recoveries) as a
                                       
percentage of average loans
    -0.02 %     0.31 %     -0.01 %     0.02 %     0.00 %
Provision for loan losses
                                       
as a percentage of average loans
    0.00 %     0.64 %     0.02 %     0.02 %     0.02 %
                                         
                                         
 
  Quarter Ending  
 
  Sept. 30,     June 30,     March 31,     Dec 31,     Sept. 30,  
SELECTED RATIOS
  2019     2019     2019     2018     2018  
 
                             
Return on average assets (annualized)
    1.83 %     0.56 %     1.91 %     1.88 %     1.89 %
 
                                       
Return on average equity (annualized)
    13.81 %     4.24 %     14.17 %     15.02 %     14.81 %
 
                                       
Return on average equity (excluding unrealized gain on investments)
    14.21 %     4.27 %     13.90 %     14.39 %     14.53 %
 
                                       
Average shareholders’ equity to average assets
    13.25 %     13.33 %     13.47 %     12.52 %     12.77 %
 
                                       
Yield on earning assets (tax equivalent)
    4.79 %     4.85 %     4.86 %     4.75 %     4.59 %
 
                                       
Effective Cost of Funds
    0.75 %     0.74 %     0.64 %     0.58 %     0.51 %
 
                                       
Net interest margin (tax equivalent)
    4.04 %     4.11 %     4.22 %     4.17 %     4.08 %
 
                                       
Efficiency ratio (tax equivalent)
    43.8 %     46.2 %     41.9 %     37.9 %     41.5 %
 
                                       
End of period book value per common share
  $ 32.85     $ 32.14     $ 31.44     $ 29.85     $ 29.07  
 
                                       
End of period book value (excluding unrealized gain on investments)
  $ 31.92     $ 31.52     $ 31.44     $ 30.96     $ 29.82  
 
                                       
End of period common shares outstanding (in 000’s)
    1,094       1,097       1,098       1,100       1,099  

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

 
  Quarter Ending  
 
  September 30, 2019     September 30, 2018  
 
                                               
 
                    Tax                       Tax  
 
  Average                 Equivalent     Average                 Equivalent  
YIELD ANALYSIS
  Balance     Interest     Yield     Yield     Balance     Interest     Yield     Yield  
 
                                               
Interest Earning Assets:
                                               
Short term investment
  $ 35,610       190       2.13%       2.13%     $ 17,991       93       2.07%       2.07%  
FRB Stock
    381       6       6.00%       6.00%       377       6       6.00%       6.00%  
Taxable securities
    0       0       0.00%       0.00%       1,217       6       1.97%       1.97%  
Tax Free securities
    72,212       529       2.93%       3.71%       80,065       563       2.81%       3.56%  
Loans
    156,304       2,300       5.89%       5.89%       145,280       1,990       5.48%       5.48%  
 
                                                               
Total Interest Earning Assets
    264,507       3,025       4.57%       4.79%       244,930       2,658       4.34%       4.59%  
 
                                                               
Noninterest Earning Assets:
                                                               
Cash and due from banks
    5,202                               4,308                          
Other assets
    4,782                               4,265                          
Allowance for loan losses
    (2,246 )                             (1,664 )                        
 
                                                               
Total Noninterest Earning Assets
    7,738                               6,909                          
 
                                                               
Total Assets
  $ 272,245                             $ 251,839                          
 
                                                               
Interest Bearing Liabilities:
                                                               
Transaction and Money Market accounts
    116,188       290       1.00%       1.00%       111,298       226       0.81%       0.81%  
Certificates and other time deposits
    36,108       203       2.25%       2.25%       24,517       83       1.35%       1.35%  
Other borrowings
    0       0       0.00%       0.00%       0       0       0.00%       0.00%  
 
                                                               
Total Interest Bearing Liabilities
    152,296       493       1.29%       1.29%       135,815       309       0.91%       0.91%  
 
                                                               
Noninterest Bearing Liabilities:
                                                               
Demand deposits
    82,822                               83,151                          
Other liabilities
    1,046                               722                          
Shareholders’ Equity
    36,081                               32,151                          
 
                                                               
Total Liabilities and Shareholders Equity
  $ 272,245                             $ 251,839                          
 
                                                               
Net Interest Income and Spread
            2,532       3.28%       3.50%               2,349       3.43%       3.68%  
 
                                                               
Net Interest Margin
                    3.83%       4.04%                       3.84%       4.08%  

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

 
  September 30           September 30        
 
  2019     %     2018     %  
LOAN PORTFOLIO
                       
 
                       
Commercial and industrial
  $ 86,613       55.00%     $ 85,673       59.56%  
Real estate:
                               
Commercial
    22,932       14.56%       20,977       14.58%  
Residential
    26,028       16.53%       19,407       13.49%  
Construction and development
    21,383       13.58%       16,706       11.61%  
Consumer
    519       0.33%       1,083       0.75%  
 
                               
Total loans (gross)
    157,475       100.00%       143,846       100.00%  
 
                               
Unearned discounts
    0       0.00%       0       0.00%  
 
                               
Total loans (net)
  $ 157,475       100.00%     $ 143,846       100.00%  
                                 
                                 
 
  September 30           September 30        
 
  2019           2018        
REGULATORY CAPITAL DATA
                       
Tier 1 Capital
  34,920             32,773          
Total Capital (Tier 1 + Tier 2)
  37,050             34,437          
Total Risk-Adjusted Assets
  170,236             160,141          
Tier 1 Risk-Based Capital Ratio
    20.51 %             20.47 %        
Total Risk-Based Capital Ratio
    21.76 %             21.50 %        
Tier 1 Leverage Ratio
    12.83 %             13.01 %        
 
                               
OTHER DATA
                               
Full Time Equivalent
                               
Employees (FTE’s)
    23               20          
 
                               
Stock Price Range
                               
(For the Three Months Ended):
                               
High
  65.50             67.00          
Low
  62.00             60.00          
Close
  65.00             65.00          

SOURCE: Trinity Bank N.A.

View source version on accesswire.com:
https://www.accesswire.com/563319/Trinity-Bank-Reports-2019-3rd-Quarter-Net-Income-of-1246000

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