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

ACCESSWIRE

By Trinity Bank N.A.

– 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
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
3 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
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
3. 134. N/M
Gains on Sale of Foreclosed Assets
0. 0. N/M
Loan Loss Provision
(1,060 ) 0. 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
%
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
38 37 2.7 % $ 80 $ 76 5.3 %
Other income
92 87 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 76 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
3 67 N/M $ 3 $ 93 N/M
Gain on sale of foreclosed assets
0 0 N/M $ 0 N/M
Gain on sale of assets
0 19 N/M $ 41 N/M
Provision for Loan Losses
60 0 N/M 1,060 0 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
%
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
0 358 -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
2017
2016
2016
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
0 320 361 361 358
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 2017 2016 2016 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
38 42 42 38 37
Other income
92 88 89 115 87
Total Non Interest Income
130 130 131 153 124
Salaries and benefits expense
499 508 526 476 520
Occupancy and equipment expense
106 104 77 72 76
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
3 (1 ) 79 91 67
Gain on sale of foreclosed assets
0 0 0 0 0
Gain on sale of other assets
0 0 0 0 19
Provision for Loan Losses
60 1,000 0 0 0
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
2017
2016
2016
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
0 0 361 361 361
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 2017 2016 2016 2016
Nonaccrual loans
$ 2,345 $ 2,527 $ 2,753 $ 3,173 $ 1,349
Restructured loans
$ 0 $ 0 $ 0 $ 0 $ 0
Other real estate & foreclosed assets
$ 0 $ 0 $ 0 $ 0 $ 0
Accruing loans past due 90 days or more
$ 0 $ 0 $ 0 $ 0 $ 0
Total nonperforming assets
$ 2,345 $ 2,527 $ 2,753 $ 3,173 $ 1,349
Accruing loans past due 30-89 days
$ 0 $ 0 $ 121 $ 0 $ 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
2017
2016
2016
2016
Balance at beginning of period
$ 2,662 $ 1,652 $ 1,644 $ 1,633 $ 1,624
Loans charged off
0 0 0 0 0
Loan recoveries
9 10 8 11 9
Net (charge-offs) recoveries
9 10 8 11 9
Provision for loan losses
60 1,000 0 0 0
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 % -0.01 % -0.01 % -0.01 % -0.01 %
Provision for loan losses
as a percentage of average loans
0.05 % 0.76 % N/A N/A N/A
Quarter Ending
June 30,
March 31,
Dec 31,
Sept. 30,
June 30,
SELECTED RATIOS
2017 2017 2016 2016 2016
Return on average assets (annualized)
1.66 % 0.61 % 1.84 % 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 % 0.25 % 0.25 % 0.26 % 0.25 %
Net interest margin (tax equivalent)
3.94 % 3.95 % 3.88 % 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 1,109 1,118

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

Quarter Ending
June 30, 2017
June 30, 2016
Tax
Tax
Average
Equivalent
Average
Equivalent
YIELD ANALYSIS
Balance
Interest
Yield
Yield
Balance
Interest
Yield
Yield
Interest Earning Assets:
Short term investment
$ 21,189 66 1.25 % 1.25 % $ 16,394 32 0.78 % 0.78 %
FRB Stock
374 6 6.00 % 6.00 % 372 6 6.00 % 6.00 %
Taxable securities
220 0 0.00 % 0.00 % 0 0 0.00 % 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 % 4.88 % 118,028 1,477 5.01 % 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 94 0.34 % 0.34 % 105,624 87 0.33 % 0.33 %
Certificates and other time deposits
27,635 56 0.81 % 0.81 % 24,580 47 0.76 % 0.76 %
Other borrowings
0 0 0.30 % 0.30 % 358 0 0.30 % 0.30 %
Total Interest Bearing Liabilities
139,407 150 0.43 % 0.43 % 130,562 134 0.41 % 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
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 0.00 % 0 0.00 %
Total loans (net)
$ 132,854 100.00 % $ 117,616 100.00 %
June 30
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)
17 16
Stock Price Range
(For the Three Months Ended):
High
$ 63.00 $ 50.00
Low
$ 57.00 $ 45.06
Close
$ 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