Trinity Bank Reports 17.1% Increase in Net Income for Third Quarter

Published in Business and Finance on Friday, November 6th 2009 at 9:06 GMT by Market Wire
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FORT WORTH, TX--(Marketwire - November 6, 2009) - Trinity Bank N.A. (OTCBB: [ TYBT ]) today announced financial and operating results for the third quarter and the nine months ending September 30, 2009.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $418,000 or $.36 per diluted common share for the third quarter of 2009, compared to $357,000 or $.31 per diluted common share for the third quarter of 2008 -- a 17.1% increase. This level of profit produced a Return on Assets of 1.12% and a Return on Equity of 10.64% for the third quarter.

For the first nine months of 2009, Net Income after Taxes amounted to $1,194,000 or $1.02 per diluted common share versus $1,022,000 or $.88 per diluted common share for the first nine months of 2008 -- a 16.8% increase.

Jeffrey M. Harp, President, stated, "We continue to produce good returns in a weak economy. Strong growth in Total Assets, exceptional efficiency and no problem loan expense were major contributors to the improved performance.

"Compared to the first nine months of 2008, Average Assets grew 16%, Non-Interest Expense (net of the $180,000 increase in FDIC expense) was up only 4.6%. We have not incurred any loan losses since inception in May 2003 and we have no non-performing loans.

"Loan demand remains weak in our market area, but we are maintaining our focus on developing long-term relationships with quality businesses and individuals."

 Average for Quarter Ending (in 000's) 9-30-09 9-30-08 % -------- -------- ---- Loans $ 66,920 $ 64,946 3.0% Deposits $132,496 $110,586 19.8% Actual for Quarter Ending (in 000's) 9-30-09 9-30-08 % -------- -------- ---- Net Interest Income $ 1,096 $ 938 16.8% Non-Interest Income 172 87 97.7% Non-Interest Expense 683 539 26.7% Loan Loss Provision 45 45 - Pre Tax Income $ 540 $ 441 22.4% Income Tax $ 122 $ 84 45.2% Net Income $ 418 $ 357 17.1%

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 Nine Months Ended September 30 % September 30 % EARNINGS SUMMARY 2009 2008 Change 2009 2008 Change Interest income 1,494 1,464 2.0% 4,368 4,475 -2.4% Interest expense 398 526 -24.3% 1,229 1,727 -28.8% Net Interest Income 1,096 938 16.8% 3,139 2,748 14.2% Provision for Loan Losses 45 45 0.0% 135 135 0.0% Service charges on deposits 36 23 56.5% 90 72 25.0% Net gain on securities available for sale 78 15 420.0% 87 42 107.1% Other income 58 49 18.4% 221 202 9.4% Total Non Interest Income 172 87 97.7% 398 316 25.9% Salaries and benefits expense 292 301 -3.0% 868 870 -0.2% Occupancy and equipment expense 89 86 3.5% 261 259 0.8% Other expense 302 152 98.7% 752 497 51.3% Total Non Interest Expense 683 539 26.7% 1,881 1,626 15.7% Earnings before income taxes 540 441 22.4% 1,521 1,303 16.7% Provision for income taxes 122 84 45.2% 327 281 16.4% Net Earnings 418 357 17.1% 1,194 1,022 16.8% Basic earnings per share 0.38 0.32 17.0% 1.08 0.92 16.7% Basic weighted average shares outstanding 1,110 1,109 1,110 1,109 Diluted earnings per share 0.36 0.31 17.1% 1.02 0.88 16.8% Diluted weighted average shares outstanding 1,166 1,166 1,166 1,166 Average for Quarter Average for Nine Months Ending September 30 % Ending September 30 % 2009 2008 Change 2009 2008 Change BALANCE SHEET SUMMARY Total loans $ 66,920 $ 64,946 3.0% $ 63,996 $ 57,405 11.5% Total short term investments 23,611 17,627 33.9% 21,761 22,463 -3.1% Total investment securities 52,448 37,060 41.5% 50,996 38,222 33.4% Earning assets 142,979 119,633 19.5% 136,753 118,090 15.8% Total assets 149,782 124,795 20.0% 143,218 123,386 16.1% Noninterest bearing deposits 23,606 21,199 11.4% 23,345 20,857 11.9% Interest bearing deposits 108,890 89,387 21.8% 101,738 88,552 14.9% Total deposits 132,496 110,586 19.8% 125,083 109,409 14.3% Fed Funds Purchased and Repurchase Agreements 743 799 -7.0% 2,425 741 227.3% Shareholders' equity 15,725 13,073 20.3% 15,048 12,796 17.6% 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 2009 2009 2009 2008 2008 Total loans $ 66,920 $ 62,824 $ 62,192 $ 65,398 $ 64,946 Total short term investments 23,611 21,426 20,209 22,898 17,627 Total investment securities 52,448 53,319 47,162 39,329 37,060 Earning assets 142,979 137,569 129,563 127,625 119,633 Total assets 149,782 143,961 135,756 133,175 124,795 Noninterest bearing deposits 23,603 23,240 23,184 24,012 21,199 Interest bearing deposits 108,893 103,722 92,425 90,298 89,387 Total deposits 132,496 126,962 115,609 114,310 110,586 Fed Funds Purchased and Repurchase Agreements 743 1,323 5,259 4,934 798 Shareholders' equity 15,725 15,029 14,376 13,531 13,073 Quarter Ended Sept. 30, June 30, March 31, Dec 31, Sept. 30, HISTORICAL EARNINGS SUMMARY 2009 2009 2009 2008 2008 Interest income 1,494 1,446 1,427 1,456 1,464 Interest expense 398 413 418 478 526 Net Interest Income 1,096 1,033 1,009 978 938 Provision for Loan Losses 45 45 45 45 45 Service charges on deposits 36 30 25 24 23 Gain on Sale - AFS 78 6 3 0 0 Other income 58 85 76 40 64 Total Non Interest Income 172 121 104 64 87 Salaries and benefits expense 292 284 291 342 301 Occupancy and equipment expense 89 87 85 87 86 Other expense 302 243 207 108 152 Total Non Interest Expense 683 614 583 537 539 Earnings before income taxes 540 495 485 460 441 Provision for income taxes 122 105 99 90 84 Net Earnings 418 390 386 370 357 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 2009 2009 2009 2008 2008 Total loans $ 67,661 $ 64,339 $ 60,086 $ 66,715 $ 65,595 Total short term investments 20,968 18,739 17,301 20,502 23,291 Total investment securities 56,209 53,282 50,553 44,980 34,523 Total earning assets 144,838 136,360 127,940 132,197 123,409 Allowance for loan losses 1,041 996 951 906 861 Premises and equipment 1,610 1,665 1,700 1,719 1,680 Other Assets 6,589 6,491 4,926 5,347 3,754 Total assets 151,996 143,520 133,615 138,357 127,982 Noninterest bearing deposits 22,235 22,562 21,511 28,665 21,769 Interest bearing deposits 111,965 104,498 96,283 87,552 91,448 Total deposits 134,200 127,060 117,794 116,217 113,217 Fed Funds Purchased and Repurchase Agreements 535 524 508 7,771 934 Other Liabilities 1,023 640 612 441 483 Total liabilities 135,758 128,224 118,914 124,429 114,634 Shareholders' equity 16,238 15,296 14,701 13,928 13,348 Quarter Ending Sept. 30, June 30, March 31, Dec 31, Sept. 30, NONPERFORMING ASSETS 2009 2009 2009 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 Sept. 30, June 30, March 31, Dec 31, Sept. 30, ALLOWANCE FOR LOAN LOSSES 2009 2009 2009 2008 2008 Balance at beginning of period $ 996 $ 951 $ 906 $ 861 $ 816 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 $ 1,041 $ 996 $ 951 $ 906 $ 861 Allowance for loan losses as a percentage of total loans 1.54% 1.55% 1.58% 1.51% 1.29% 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% 0.07% Quarter Ending Sept. 30, June 30, March 31, Dec 31, Sept. 30, SELECTED RATIOS 2009 2009 2009 2008 2008 Return on average assets (annualized) 1.12% 1.08% 1.14% 1.11% 1.14% Return on average equity (annualized) 10.63% 10.38% 10.74% 10.94% 10.92% Return on average equity (excluding unrealized gain on investments) 11.44% 10.97% 11.18% 11.02% 10.92% Average shareholders' equity to average assets 10.50% 10.44% 10.59% 10.16% 10.48% Yield on earning assets (tax equivalent) 4.43% 4.47% 4.71% 5.20% 5.21% Cost of interest bearing funds 1.45% 1.60% 1.71% 2.43% 2.33% Net interest margin (tax equivalent) 3.32% 3.27% 3.40% 3.37% 3.45% Efficiency ratio (tax equivalent) 50.37% 49.32% 48.30% 47.18% 48.13% End of period book value per common share 14.63 13.78 13.26 12.56 12.04 End of period book value (excluding unrealized gain on investments) 13.17 12.81 12.46 12.11 11.79 End of period common shares outstanding 1,110 1,110 1,109 1,109 1,109 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) 3 Months Ending September 30, 2009 September 30, 2008 Tax Tax Equiv- Equiv- YIELD Average alent Average alent ANALYSIS Balance Interest Yield Yield Balance Interest Yield Yield Interest Earning Assets: Short term investment 23,611 87 1.47% 1.47% 17,627 149 3.38% 3.38% Investment securities 27,288 296 4.34% 4.34% 10,298 91 3.53% 3.53% Tax Free securities 25,160 200 3.18% 4.58% 26,762 214 3.20% 4.60% Loans 66,920 911 5.45% 5.45% 64,893 1,010 6.23% 6.23% Total Interest Earning Assets 142,979 1,494 4.18% 4.43% 119,580 1,464 4.90% 5.21% Noninterest Earning Assets: Cash and due from banks 3,442 3,477 Other assets 4,378 2,705 Allowance for loan losses (1,017) (838) Total Noninterest Earning Assets 6,803 5,344 Total Assets $149,782 $124,924 Interest Bearing Liabilities: Transaction and Money Market accounts 76,571 231 1.21% 1.21% 65,746 315 1.92% 1.92% Certificates and other time deposits 32,318 166 2.05% 2.05% 23,640 208 3.52% 3.52% Other borrowings 743 1 0.54% 0.54% 799 3 1.50% 1.50% Total Interest Bearing Liabilities 109,632 398 1.45% 1.45% 90,185 526 2.33% 2.33% Noninterest Bearing Liabilities Demand deposits 23,606 21,200 Other liabilities 819 466 Shareholders' Equity 15,725 13,073 Total Liabilities and Shareholders Equity $149,782 $124,924 Net Interest Income and Spread 1,096 2.73% 2.98% 938 2.56% 2.88% Net Interest Margin 3.07% 3.32% 3.14% 3.45% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Sept 30 Sept 30 2009 % 2008 % LOAN PORTFOLIO Commercial and industrial 30,988 45.80% 36,253 55.27% Real estate: Commercial 12,334 18.23% 10,571 16.12% Residential 10,709 15.83% 9,909 15.11% Construction and development 10,499 15.52% 5,404 8.24% Consumer 3,131 4.63% 3,458 5.27% Total loans (gross) 67,661 100.00% 65,595 100.00% Unearned discounts 0 0.00% 0 0.00% Total loans (net) 67,661 100.00% 65,595 100.00% Sept 30 Sept 30 2009 2008 REGULATORY CAPITAL DATA Tier 1 Capital $ 14,861 $ 13,287 Total Capital (Tier 1 + Tier 2) $ 15,902 $ 14,148 Total Risk-Adjusted Assets $ 87,210 $ 61,146 Tier 1 Ratio 14.57% 17.36% Total Capital Ratio 15.59% 18.49% Tier 1 Leverage Ratio 9.92% 10.65% OTHER DATA Full Time Equivalent Employees (FTE's) 14 14 Stock Price Range (For the Twelve Months Ended): High $ 29.75 $ 20.00 Low $ 20.00 $ 20.00 Close $ 29.50 $ 20.00

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Trinity Bank Reports 17.1% Increase in Net Income for Third Quarter