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Trinity Bank: Trinity Bank Reports Net Income up 14.7% in Spite of Increased FDIC Charges

^{Published on 2009-08-25 11:41:45, Last Modified on 2009-08-25 11:41:49 - Market Wire}
 

FORT WORTH, TX--(Marketwire - August 25, 2009) - Trinity Bank N.A. (OTCBB: [ TYBT ]) today announced financial and operating results for the second quarter and the six months ending June 30, 2009.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $390,000 or $.33 per diluted common share for the second quarter of 2009, compared to $340,000 or $.29 per diluted common share for the second quarter of 2008. This level of profit produced a Return on Assets of 1.08% and a Return on Equity of 10.38% for the second quarter.

For the first six months of 2009, Net Income after Taxes amounted to $776,000 or $.66 per diluted common share versus $665,000 or $.57 per diluted common share for the first six months of 2008 -- a 16.7% increase.

Jeffrey M. Harp, President, stated, "We were able to produce a 14.7% increase in Net Income in spite of a 650% increase (from $17,000 in 2nd quarter '08 to $128,000 in 2nd quarter '09) in FDIC insurance premiums. I would challenge you to find very many other banks that were able to duplicate Trinity's results."

"In addition, we have just completed an examination by the OCC (national bank examiners), and I am pleased to confirm that since inception in May 2003, we have suffered no losses and we have no past due loans and no non-performing loans. In the current economic environment, these results are remarkable. Even though the recession has finally reached Texas, our market area continues to be one of the best in the U.S. We look forward to improving our position in the market."

 Average for Quarter Ending (in 000's) 6-30-09 6-30-08 % --------- --------- ---- Loans $ 62,824 $ 57,309 9.6% Deposits $ 126,962 $ 108,252 17.3% Actual for Quarter Ending (in 000's) 6-30-09 6-30-08 % --------- --------- ---- Net Interest Income $ 1,033 $ 909 13.6% Non-Interest Income 121 106 14.2% Non-Interest Expense 614 539 13.9% Loan Loss Provision 45 45 - Pre Tax Income $ 495 $ 431 14.8% Income Tax $ 105 $ 91 15.4% Net Income $ 390 $ 340 14.7% 

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 ].

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 to loan losses and the estimations of values of collateral and various financial assets and liabilities, that the cost 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 hold 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 obligations 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 Ended June 30 % June 30 % EARNINGS SUMMARY 2009 2008 Change 2009 2008 Change Interest income 1,446 1,430 1.1% 2,873 3,011 -4.6% Interest expense 413 521 -20.7% 831 1,201 -30.8% Net Interest Income 1,033 909 13.6% 2,042 1,810 12.8% Provision for Loan Losses 45 45 0.0% 90 90 0.0% Service charges on deposits 30 24 25.0% 55 49 12.2% Net gain on securities available for sale 6 23 -73.9% 9 26 -65.4% Other income 85 59 44.1% 161 154 4.5% Total Non Interest Income 121 106 14.2% 225 229 -1.7% Salaries and benefits expense 284 283 0.4% 575 568 1.2% Occupancy and equipment expense 87 87 0.0% 172 174 -1.1% Other expense 243 169 43.8% 450 345 30.4% Total Non Interest Expense 614 539 13.9% 1,197 1,087 10.1% Earnings before income taxes 495 431 14.8% 980 862 13.7% Provision for income taxes 105 91 15.4% 204 197 3.6% Net Earnings 390 340 14.7% 776 665 16.7% Basic earnings per share 0.35 0.31 20.7% 0.70 0.60 16.6% Basic weighted average shares outstanding 1,110 1,109 1,110 1,109 Diluted earnings per share 0.33 0.29 17.9% 0.66 0.57 15.7% Diluted weighted average shares outstanding 1,166 1,166 1,166 1,166 Average for Quarter Average for Six Months BALANCE SHEET SUMMARY Ending June 30 % Ending June 30, % 2009 2008 Change 2009 2008 Change Total loans $ 62,824 $ 57,309 9.6% $ 63,458 $ 53,594 18.4% Total short term investments 21,426 23,073 -7.1% 20,821 24,908 -16.4% Total investment securities 53,319 36,588 45.7% 50,259 38,811 29.5% Earning assets 137,569 116,970 17.6% 134,538 117,313 14.7% Total assets 143,961 122,227 17.8% 139,881 122,673 14.0% Noninterest bearing deposits 23,240 20,553 13.1% 23,211 20,683 12.2% Interest bearing deposits 103,722 87,699 18.3% 98,106 88,131 11.3% Total deposits 126,962 108,252 17.3% 121,317 108,814 11.5% Fed Funds Purchased and Repurchase Agreements 1,323 620 113.4% 3,280 713 360.0% Shareholders' equity 15,029 12,821 17.2% 14,704 12,656 16.2% 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 2009 2009 2008 2008 2008 Total loans $ 62,824 $ 62,192 $ 65,398 $ 64,946 $ 57,309 Total short term investments 21,426 20,209 22,898 17,627 23,073 Total investment securities 53,319 47,162 39,329 37,060 36,588 Earning assets 137,569 129,563 127,625 119,633 116,970 Total assets 143,961 135,756 133,175 124,795 122,227 Noninterest bearing deposits 23,240 23,184 24,012 21,199 20,553 Interest bearing deposits 103,722 92,425 90,298 89,387 87,699 Total deposits 126,962 115,609 114,310 110,586 108,252 Fed Funds Purchased and Repurchase Agreements 1,323 5,259 4,934 798 620 Shareholders' equity 15,029 14,376 13,531 13,073 12,821 Quarter Ended June 30, March 31, Dec 31, Sept. 30, June 30, HISTORICAL EARNINGS SUMMARY 2009 2009 2008 2008 2008 Interest income 1,446 1,427 1,456 1,464 1,430 Interest expense 413 418 478 526 521 Net Interest Income 1,033 1,009 978 938 909 Provision for Loan Losses 45 45 45 45 45 Service charges on deposits 30 25 24 23 24 Net gain on securities available for sale 6 3 0 0 23 Other income 85 76 40 64 59 Total Non Interest Income 121 104 64 87 106 Salaries and benefits expense 284 291 342 301 283 Occupancy and equipment expense 87 85 87 86 87 Other expense 243 207 108 152 169 Total Non Interest Expense 614 583 537 539 539 Earnings before income taxes 495 485 460 441 431 Provision for income taxes 105 99 90 84 91 Net Earnings 390 386 370 357 340 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 2009 2009 2008 2008 2008 Total loans $ 64,339 $ 60,086 $ 66,715 $ 65,595 $ 62,061 Total short term investments 18,739 17,301 20,502 23,291 15,415 Total investment securities 53,282 50,553 44,980 34,523 39,803 Total earning assets 136,360 127,940 132,197 123,409 117,279 Allowance for loan losses 996 951 906 861 816 Premises and equipment 1,665 1,700 1,719 1,680 1,541 Other Assets 6,491 4,926 5,347 3,754 4,657 Total assets 143,520 133,615 138,357 127,982 122,661 Noninterest bearing deposits 22,562 21,511 28,665 21,769 20,506 Interest bearing deposits 104,498 96,283 87,552 91,448 88,270 Total deposits 127,060 117,794 116,217 113,217 108,776 Fed Funds Purchased and Repurchase Agreements 524 508 7,771 934 621 Other Liabilities 640 612 441 483 401 Total liabilities 128,224 118,914 124,429 114,634 109,798 Shareholders' equity 15,296 14,701 13,928 13,348 12,863 Quarter Ending June March Dec Sept. June 30, 31, 31, 30, 30, NONPERFORMING ASSETS 2009 2009 2008 2008 2008 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 $ 0 $ 0 $ 152 $ 5 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 June 30, March 31, Dec 31, Sept. 30, June 30, LOAN LOSSES 2009 2009 2008 2008 2008 Balance at beginning of period $ 951 $ 906 $ 861 $ 816 $ 771 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 $ 996 $ 951 $ 906 $ 861 $ 816 Allowance for loan losses as a percentage of total loans 1.55% 1.58% 1.51% 1.29% 1.24% 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% 0.07% 0.07% 0.08% Quarter Ending June 30, March 31, Dec 31, Sept. 30, June 30, SELECTED RATIOS 2009 2009 2008 2008 2008 Return on average assets (annualized) 1.08% 1.14% 1.11% 1.14% 1.11% Return on average equity (annualized) 10.38% 10.74% 10.94% 10.92% 10.61% Average shareholders' equity to average assets 10.44% 10.59% 10.16% 10.48% 10.49% Yield on earning assets (tax equivalent) 4.47% 4.71% 5.20% 5.21% 5.17% Cost of interest bearing funds 1.60% 1.71% 2.43% 2.33% 2.37% Net interest margin (tax equivalent) 3.27% 3.40% 3.37% 3.45% 3.39% Efficiency ratio (tax equivalent) 49.32% 48.30% 47.18% 48.13% 49.27% End of period book value per common share 13.78 13.26 12.56 12.04 11.60 End of period common shares outstanding 1,110 1,109 1,109 1,109 1,109 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) 3 Months Ending June 30, 2009 June 30, 2008 Tax Tax YIELD Average Equivalent Average Equivalent ANALYSIS Balance Interest Yield Yield Balance Interest Yield Yield Interest Earning Assets: Short term investment 21,426 98 1.83% 1.83% 23,073 197 3.42% 3.42% Investment securities 27,427 302 4.40% 4.40% 14,282 140 3.91% 3.91% Tax Free securities 25,892 207 3.20% 4.61% 22,306 179 3.24% 4.65% Loans 62,824 839 5.34% 5.34% 57,309 914 6.39% 6.39% Total Interest Earning Assets 137,569 1,446 4.20% 4.47% 116,970 1,430 4.90% 5.17% Noninterest Earning Assets: Cash and due from banks 3,475 3,532 Other assets 3,889 2,519 Allowance for loan losses (972) (794) Total Noninterest Earning Assets 6,392 5,257 Total Assets $143,961 $122,227 Interest Bearing Liabilities: Transaction and Money Market accounts 68,890 223 1.29% 1.29% 64,092 292 1.83% 1.83% Certificates and other time deposits 33,348 188 2.26% 2.26% 23,607 227 3.86% 3.86% Other borrowings 1,323 2 0.60% 0.60% 620 2 1.25% 1.25% Total Interest Bearing Liabilities 103,561 413 1.60% 1.60% 88,319 521 2.37% 2.37% Noninterest Bearing Liabilities Demand deposits 24,724 20,553 Other liabilities 647 534 Shareholders' Equity 15,029 12,821 Total Liabilities and Shareholders Equity $143,961 $122,227 Net Interest Income and Spread 1,033 2.61% 2.87% 909 2.53% 2.80% Net Interest Margin 3.00% 3.27% 3.12% 3.39% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) June 30 June 30 2009 % 2008 % LOAN PORTFOLIO Commercial and industrial 31,067 48.35% 34,266 55.21% Real estate: Commercial 12,126 18.87% 11,056 17.81% Residential 10,326 16.07% 8,194 13.20% Construction and development 7,513 11.69% 6,547 10.55% Consumer 3,228 5.02% 1,998 3.22% Total loans (gross) 64,260 100.00% 62,061 100.00% Unearned discounts 0 0.00% 0 0.00% Total loans (net) 64,260 100.00% 62,061 100.00% June 30 June 30 2009 2008 REGULATORY CAPITAL DATA Tier 1 Capital $ 14,443 $ 12,929 Total Capital (Tier 1 + Tier 2) $ 15,439 $ 13,745 Total Risk-Adjusted Assets $ 98,147 $ 73,155 Tier 1 Ratio 14.72% 17.67% Total Capital Ratio 15.73% 18.79% Tier 1 Leverage Ratio 10.03% 10.58% OTHER DATA Full Time Equivalent Employees (FTE's) 14 14 Stock Price Range (For the Twelve Months Ended): High $ 20.00 $ 20.00 Low $ 20.00 $ 20.00 Close $ 20.00 $ 20.00