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Trinity Bank: Not All Banks Are in Trouble... Trinity Bank 2008 Profits Up 34%

^{Published on 2009-03-04 09:06:04, Last Modified on 2009-03-04 09:09:49 - Market Wire}
 

FORT WORTH, TX--(Marketwire - March 4, 2009) - Trinity Bank, N.A. (OTCBB: [ TYBT ]) today announced continued profits from their financial and operating results for the fourth quarter and for the twelve months ended December 31, 2008.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes for the fourth quarter of $370,411, or $.32 per diluted common share, compared to $304,622, or $.26 per diluted common share for the fourth quarter of 2007, an increase of 21.6%.

For the year 2008, Net Income After Taxes amounted to $1,393,163, or $1.19 per diluted common share, compared to $1,036,698, or $.90 per diluted common share for 2007, an increase of 34.4%.

Jeffrey M. Harp, President, stated, "Operating results for the fourth quarter of 2008 represents our 17th consecutive quarter of increased profit. We feel very fortunate to have achieved these results in a challenging economic environment. On an annual basis, our income is increasing faster than our expenses, and we have had no loan losses or non-performing loans since inception in May 2003. This performance reflects positively on the strength of our local market, the quality of our customer base, and the efforts of the Board, the management, and the staff of Trinity Bank."

 Average for Quarter Ending (in 000's) 12-31-08 12-31-07 % -------- -------- ----- Loans $ 65,398 $ 50,053 30.7 % Deposits $114,310 $106,124 7.7 % Actual for Quarter Ending Net Interest Income $ 978 $ 942 3.8 % Non-Interest Income $ 64 $ 67 (4.5)% Non-Interest Expense $ 537 $ 530 1.3 % Loan Loss Provision $ 45 $ 45 0.0 % Pre Tax Income $ 460 $ 434 6.0 % Income Tax $ 90 $ 129 (30.2)% Net Income $ 370 $ 305 21.6 % Average for Year Ending (in 000's) 12-31-08 12-31-07 % -------- -------- ----- Loans $ 59,415 $ 47,511 25.1 % Deposits $110,641 $ 93,388 18.5 % Actual for Year Ending Net Interest Income $ 3,726 $ 3,472 7.3 % Non-Interest Income $ 382 $ 320 19.4 % Non-Interest Expense $ 2,163 $ 2,059 5.1 % Loan Loss Provision $ 180 $ 180 - Pre Tax Income $ 1,765 $ 1,553 13.7 % Income Tax $ 372 $ 516 (27.9)% Net Income $ 1,393 $ 1,037 34.4 % 

Trinity Bank, N.A. is a commercial bank that began operations May 28, 2003 with the largest initial capital ever raised by a Tarrant County bank. For a full financial statement, visit Trinity Bank's website: [ www.trinitybk.com ] click on "About Us" and then click on "Investor Information." Financial information in regulatory reporting format is also available at [ www.fdic.gov ].

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 Twelve Months Ended December 31 % December 31 % EARNINGS SUMMARY 2008 2007 Change 2008 2007 Change Interest income 1,456 1,745 -16.6% 5,931 6,547 -9.4% Interest expense 478 803 -40.5% 2,205 3,075 -28.3% Net Interest Income 978 942 3.8% 3,726 3,472 7.3% Provision for Loan Losses 45 45 0.0% 180 180 0.0% Service charges on deposits 24 28 -14.3% 95 106 -10.4% Net gain on securities available for sale 0 0 0.0% 45 0 0.0% Other income 40 39 2.6% 242 214 13.1% Total Non Interest Income 64 67 -4.5% 382 320 19.4% Salaries and benefits expense 342 324 5.6% 1,212 1,107 9.5% Occupancy and equipment expense 87 91 -4.4% 346 352 -1.7% Other expense 108 115 -6.1% 605 600 0.8% Total Non Interest Expense 537 530 1.3% 2,163 2,059 5.1% Earnings before income taxes 460 434 6.0% 1,765 1,553 13.7% Provision for income taxes 90 129 -30.2% 372 516 -27.9% Net Earnings 370 305 21.6% 1,393 1,037 34.4% Basic earnings per share 0.33 0.28 17.9% 1.26 0.94 34.0% Basic weighted average shares outstanding 1,109 1,109 1,109 1,109 Diluted earnings per share 0.32 0.26 23.1% 1.19 0.90 32.2% Diluted weighted average shares outstanding 1,166 1,157 1,166 1,156 Average for Quarter Average for Twelve Months Ending December 31 % Ending December 31 % BALANCE SHEET SUMMARY 2008 2007 Change 2008 2007 Change Total loans $ 65,398 $ 50,053 30.7% $ 59,415 $ 47,511 25.1% Total short term investments 22,898 27,011 -15.2% 22,570 23,546 -4.1% Total investment securities 39,329 36,569 7.5% 38,501 31,444 22.4% Earning assets 127,625 113,633 12.3% 120,486 102,501 17.5% Total assets 133,175 119,646 11.3% 125,846 108,154 16.4% Noninterest bearing deposits 24,012 23,620 1.7% 21,651 20,937 3.4% Interest bearing deposits 90,298 82,504 9.4% 88,990 72,452 22.8% Total deposits 114,310 106,124 7.7% 110,641 93,389 18.5% Fed Funds Purchased and Repurchase Agreements 4,934 849 481.2% 1,795 2,612 -31.3% Shareholders' equity 13,531 12,078 12.0% 12,980 11,629 11.6% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Average for Quarter Ending Dec 31, Sept. 30, June 30, March 31, Dec 31, BALANCE SHEET SUMMARY 2008 2008 2008 2008 2007 Total loans $ 65,398 $ 64,946 $ 57,309 $ 49,878 $ 50,053 Total short term investments 22,898 17,627 23,073 26,740 27,011 Total investment securities 39,329 37,060 36,588 41,033 36,569 Earning assets 127,625 119,633 116,970 117,651 113,633 Total assets 133,175 124,795 122,227 123,192 119,646 Noninterest bearing deposits 24,012 21,199 20,553 20,814 23,620 Interest bearing deposits 90,298 89,387 87,699 88,562 82,504 Total deposits 114,310 110,586 108,252 109,376 106,124 Fed Funds Purchased and Repurchase Agreements 4,934 798 620 806 849 Shareholders' equity 13,531 13,073 12,821 12,491 12,078 Quarter Ended HISTORICAL EARNINGS Dec 31, Sept. 30, June 30, March 31, Dec 31, SUMMARY 2008 2008 2008 2008 2007 Interest income 1,456 1,464 1,430 1,581 1,745 Interest expense 478 526 521 680 803 Net Interest Income 978 938 909 901 942 Provision for Loan Losses 45 45 45 45 45 Service charges on deposits 24 23 24 25 28 Other income 40 64 82 98 39 Total Non Interest Income 64 87 106 123 67 Salaries and benefits expense 342 301 283 285 324 Occupancy and equipment expense 87 86 87 87 91 Other expense 108 152 169 176 115 Total Non Interest Expense 537 539 539 548 530 Earnings before income taxes 460 441 431 431 434 Provision for income taxes 90 84 91 106 129 Net Earnings 370 357 340 325 305 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Ending Balance HISTORICAL BALANCE Dec 31, Sept. 30, June 30, March 31, Dec 31, SHEET 2008 2008 2008 2008 2007 Total loans $ 66,715 $ 65,595 $ 62,061 $ 51,866 $ 50,545 Total short term investments 20,502 23,291 15,415 27,818 25,654 Total investment securities 44,980 34,523 39,803 37,740 43,561 Total earning assets 132,197 123,409 117,279 117,424 119,760 Allowance for loan losses 906 861 816 771 726 Premises and equipment 1,719 1,680 1,541 1,588 1,630 Other Assets 5,347 3,754 4,657 4,491 4,572 Total assets 138,357 127,982 122,661 122,732 125,236 Noninterest bearing deposits 28,665 21,769 20,506 20,820 24,423 Interest bearing deposits 87,552 91,448 88,270 87,874 87,352 Total deposits 116,217 113,217 108,776 108,694 111,775 Fed Funds Purchased and Repurchase Agreements 7,771 934 621 714 820 Other Liabilities 441 483 401 585 379 Total liabilities 124,429 114,634 109,798 109,993 112,974 Shareholders' equity 13,928 13,348 12,863 12,739 12,262 Quarter Ending Dec 31, Sept. 30, June 30, March 31, Dec 31, NONPERFORMING ASSETS 2008 2008 2008 2008 2007 Nonaccrual loans $ 0 $ 0 $ 0 $ 0 $ 0 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 $ 0 $ 0 $ 0 $ 0 $ 0 Accruing loans past due 30-89 days $ 0 $ 152 $ 5 $ 0 $ 0 Total nonperforming assets as a percentage of loans and foreclosed assets 0.00% 0.00% 0.00% 0.00% 0.00% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Quarter Ending ALLOWANCE FOR Dec 31, Sept. 30, June 30, March 31, Dec 31, LOAN LOSSES 2008 2008 2008 2008 2007 Balance at beginning of period $ 861 $ 816 $ 771 $ 726 $ 681 Loans charged off 0 0 0 0 0 Loan recoveries 0 0 0 0 0 Net (charge-offs) recoveries 0 0 0 0 0 Provision for loan losses 45 45 45 45 45 Balance at end of period $ 906 $ 861 $ 816 $ 771 $ 726 Allowance for loan losses as a percentage of total loans 1.36% 1.31% 1.31% 1.49% 1.44% Allowance for loan losses as a percentage of nonperforming loans N/A N/A N/A N/A N/A Net charge-offs (recoveries) as a percentage of average loans N/A N/A N/A N/A N/A Provision for loan losses as a percentage of average loans 0.07% 0.07% 0.08% 0.08% 0.09% Quarter Ending Dec 31, Sept. 30, June 30, March 31, Dec 31, SELECTED RATIOS 2008 2008 2008 2008 2007 Return on average assets (annualized) 1.11% 1.14% 1.11% 1.06% 1.02% Return on average equity (annualized) 10.94% 10.92% 10.61% 10.41% 10.10% Average shareholders' equity to average assets 10.16% 10.48% 10.49% 10.14% 10.09% Yield on earning assets (tax equivalent) 5.20% 5.21% 5.17% 5.58% 6.30% Cost of interest bearing funds 2.43% 2.33% 2.37% 3.04% 3.85% Net interest margin (tax equivalent) 3.37% 3.45% 3.39% 3.26% 3.44% Efficiency ratio (tax equivalent) 45.98% 48.13% 49.27% 50.70% 52.53% End of period book value per common share 12.56 12.04 11.60 11.49 11.06 End of period common shares outstanding 1,109 1,109 1,109 1,109 1,109 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) 12 Months Ending December 31, 2008 December 31, 2007 Tax Tax Equiva- Equiva- YIELD Average lent Average lent ANALYSIS Balance Interest Yield Yield Balance Interest Yield Yield Interest Earning Assets: Short term investment 22,570 787 3.49% 3.49% 23,546 1,231 5.23% 5.23% Investment securities 15,627 634 4.06% 4.06% 29,319 1,327 4.53% 4.53% Tax Free securities 22,874 739 3.23% 4.66% 2,125 78 3.67% 5.29% Loans 59,360 3,771 6.35% 6.35% 47,511 3,911 8.23% 8.23% Total Interest Earning Assets 120,431 5,931 4.92% 5.20% 102,501 6,547 6.39% 6.42% Noninterest Earning Assets: Cash and due from banks 3,641 3,751 Other assets 2,589 2,531 Allowance for loan losses (815) (630) Total Noninterest Earning Assets 5,415 5,652 Total Assets $125,846 $108,153 Interest Bearing Liabilities: Transaction and Money Market accounts 63,529 1,259 1.98% 1.98% 51,740 2,002 3.87% 3.87% Certificates and other time deposits 25,461 925 3.63% 3.63% 20,713 960 4.63% 4.63% Other borrowings 1,795 21 1.17% 1.17% 2,612 113 4.33% 4.33% Total Interest Bearing Liabilities 90,785 2,205 2.43% 2.43% 75,065 3,075 4.10% 4.10% Noninterest Bearing Liabilities Demand deposits 21,651 20,937 Other liabilities 429 522 Shareholders' Equity 12,981 11,629 Total Liabilities and Shareholders Equity $125,846 $108,153 Net Interest Income and Spread 3,726 2.50% 2.77% 3,472 2.29% 2.32% Net Interest Margin 3.09% 3.37% 3.39% 3.42% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Dec 31 Dec 31 2008 % 2007 % LOAN PORTFOLIO Commercial and industrial 36,280 54.38% 30,179 59.71% Real estate: Commercial 10,883 16.31% 6,975 13.80% Residential 9,886 14.82% 6,509 12.88% Construction and development 5,993 8.98% 4,788 9.47% Consumer 3,673 5.51% 2,094 4.14% Total loans (gross) 66,715 100.00% 50,545 100.00% Unearned discounts 0 0.00% 0 0.00% Total loans (net) 66,715 100.00% 50,545 100.00% Dec 31 Dec 31 2008 2007 REGULATORY CAPITAL DATA Tier 1 Capital $ 13,658 $ 12,259 Total Capital (Tier 1 + Tier 2) $ 14,564 $ 12,985 Total Risk-Adjusted Assets $ 69,395 $ 65,729 Tier 1 Ratio 16.09% 18.65% Total Capital Ratio 17.16% 19.76% Tier 1 Leverage Ratio 10.26% 10.25% OTHER DATA Full Time Equivalent Employees (FTE's) 14 15 Stock Price Range (For the Twelve Months Ended): High $ 20.00 $ 20.00 Low $ 20.00 $ 18.00 Close $ 20.00 $ 20.00