Trinity Bank Reports Return on Assets of 1.23%

Companies Mentioned:

Primary Exchange: OTC PINK
Under the Symbol: TYBT

$65.00

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Trinity Bank Reports Return on Assets of 1.23%

Thursday, July 18, 2019 7:45 PM

TRINITY BANK REPORTS 2019 2nd QUARTER NET INCOME OF $374,000
YTD RETURN ON ASSETS 1.23%
YTD RETURN ON EQUITY 9.14%

FORT WORTH, TX / ACCESSWIRE / July 18, 2019 / Trinity Bank N.A. (OTC Pink: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2019.

Results of Operation

For the second quarter 2019, Trinity Bank, N.A. reported Net Income after Taxes of $374,000, a decrease of 67.7% over second quarter 2018 earnings of $1,159,000. Earnings per diluted common share for the second quarter 2019 amounted to $0.33, a decrease of 67.60% over second quarter 2018 results of $1.03 per diluted common share.

For the first six months of 2019, Net Income after Taxes were $1,576,000, a decrease of 31.1% over the first half of 2018 results of $2,287,000. Earnings per diluted common share for the first half of 2019 were $1.41, a decrease of 30.7% over the first half of 2018 results of $2.03 per diluted common share.

President Jeff Harp stated, “For the second time in our 16 year history, we have identified a large borrower in financial difficulty. The borrower has deeded some property back to the bank in lieu of foreclosure, and the $1,000,000 loan loss provision we made in 2Q covers 100% of the remaining exposure. We have aggressive collection efforts underway. In spite of this, we are on pace to have our second best earnings year since inception. The returns generated this year will still be well above the performance of our bank peer group.”

“One of the positive aspects of maintaining a strong Capital base (13.05% as of June 30, 2019 - substantially in excess of our peer bank group) is that one problem loan does not impact our growth plans or our dividend policy.”

Richard Burt, Executive Vice President, stated, “Since 2015, we have added staff to build a base for doubling the size of the Bank and to implement a management succession plan for some of our founding employees. I am pleased to announce that we are adding a senior operations person this month that will complete our staff for the foreseeable future. We, as a management team, feel we have the right team in place and the necessary infrastructure to once again begin growing our operating revenue faster than our expenses.”

Actual for Quarter

3 Months 3 Months
(in 000's)
06/30/2019 06/30/2018 %
Net Interest Income
$ 2,977 $ 2,350 14.9 %
Non-Interest Income
122 137 97.1 %
Non-Interest Expense
(1,279 ) (1,139 ) 12.3 %
Pretax Pre-provision Income
1,345 1,348 -0.2 %
Gains on Sale of Securities and Other Assets
1 7 N/M
Loan Loss Provision
(1,000 ) (30 ) N/M
Pretax Income
346 1,325 N/M
Income Tax
28 (166 ) (116.9 )%
Net Income
$ 374 $ 1,159 (67.7 )%
Diluted Weighted Average Shares
1,119 1,122
Earnings Per Share
0.33 1.03 (67.6 )%

Actual for 6 months

6 Months 6 Months
(in 000's)
06/30/2019 06/30/2018 %
Net Interest Income
$ 4,922 $ 4,627 6.4 %
Non-Interest Income
245 266 (7.9 )%
Non-Interest Expense
(2,406 ) (2,271 ) 5.9 %
Pretax Pre-provision Income
2,761 2,622 5.3 %
Gains on Sale of Securities and Other Assets
(2 ) 7 N/M
Loan Loss Provision
(1,030 ) (30 ) N/M
Pretax Income
1,729 2,599 (33.5 )%
Income Tax
(153 ) (312 ) (51.0 )%
Net Income
$ 1,576 $ 2,287 (31.1 )%
Diluted Weighted Average Shares
1,118 1,124
Earnings Per Share
1.41 2.03 (30.7 )%


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.

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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. 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

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

Quarter Ended Six Months Ending
June 30 % June 30 %
EARNINGS SUMMARY
2019 2018 Change 2019 2018 Change
Interest income
$ 2,977 $ 2,591 14.9 % $ 5,791 $ 5,077 14.1 %
Interest expense
475 241 97.1 % 869 450 93.1 %
Net Interest Income
2,502 2,350 6.5 % 4,922 4,627 6.4 %
Service charges on deposits
42 37 13.5 % 81 73 11.0 %
Other income
80 100 -20.0 % 164 193 -15.0 %
Total Non Interest Income
122 137 -10.9 % 245 266 -7.9 %
Salaries and benefits expense
788 731 7.8 % 1,551 1,360 14.0 %
Occupancy and equipment expense
116 106 9.4 % 223 227 -1.8 %
Other expense
375 302 24.2 % 632 684 -7.6 %
Total Non Interest Expense
1,279 1,139 12.3 % 2,406 2,271 5.9 %
Pretax pre-provision income
1,345 1,348 -0.2 % 2,761 2,622 5.3 %
Gain on sale of securities
1 7 N/M (2 ) 7 N/M
Gain on sale of foreclosed assets
0 0 N/M 0 0 N/M
Gain on sale of assets
0 0 N/M 0 0 N/M
Provision for Loan Losses
1,000 30 N/M 1,030 30 N/M
Earnings before income taxes
346 1,325 -73.9 % 1,729 2,599 -33.5 %
Provision for income taxes
(28 ) 166 -116.9 % 153 312 -51.0 %
Net Earnings
$ 374 $ 1,159 -67.7 % $ 1,576 $ 2,287 -31.1 %
Basic earnings per share
0.34 1.05 -67.6 % 1.43 2.07 -30.7 %
Basic weighted average shares
1,100 1,103 1,099 1,105
outstanding
Diluted earnings per share - estimate
0.33 1.03 -67.6 % 1.41 2.03 -30.7 %
Diluted weighted average shares outstanding
1,119 1,122 1,118 1,124
Average for Quarter Average for Six Months
June 30 % June 30 %
BALANCE SHEET SUMMARY
2019 2018 Change 2019 2018 Change
Total loans
$ 156,571 $ 147,227 6.3 % $ 154,327 $ 142,610 8.2 %
Total short term investments
26,034 10,843 140.1 % 19,038 16,905 12.6 %
Total investment securities
74,627 84,981 -12.2 % 76,940 88,821 -13.4 %
Earning assets
257,232 243,051 5.8 % 250,305 248,336 0.8 %
Total assets
264,826 250,070 5.9 % 258,314 255,098 1.3 %
Noninterest bearing deposits
73,665 80,637 -8.6 % 73,772 81,427 -9.4 %
Interest bearing deposits
154,918 135,940 14.0 % 148,664 141,151 5.3 %
Total deposits
228,583 216,577 5.5 % 222,436 222,578 -0.1 %
Fed Funds Purchased and Repurchase Agreements
0 1,566 N/M 590 787 N/M
Shareholders' equity
$ 35,301 $ 31,236 13.0 % $ 34,624 $ 31,272 10.7 %


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
2019 2019 2018 2018 2018
Total loans
$ 156,571 $ 152,227 $ 144,801 $ 145,280 $ 147,227
Total short term investments
26,034 12,728 23,175 18,368 10,843
Total investment securities
74,627 79,278 79,700 80,509 84,981
Earning assets
257,232 244,233 247,676 244,157 243,051
Total assets
264,826 251,901 255,113 251,839 250,070
Noninterest bearing deposits
73,665 73,881 81,187 83,151 80,637
Interest bearing deposits
154,918 142,339 141,081 135,815 135,940
Total deposits
228,583 216,220 222,268 218,966 216,577
Fed Funds Purchased and Repurchase Agreements
0 1,187 0 0 1,566
Shareholders' equity
$ 35,301 $ 33,940 $ 31,948 $ 32,151 $ 31,236
Quarter Ended
June 30, March 31, Dec 31, Sept. 30, June 30,
HISTORICAL EARNINGS SUMMARY
2019 2019 2018 2018 2018
Interest income
$ 2,977 $ 2,814 $ 2,785 $ 2,658 $ 2,591
Interest expense
475 394 358 309 241
Net Interest Income
2,502 2,420 2,427 2,349 2,350
Service charges on deposits
42 40 31 38 37
Other income
80 83 101 111 100
Total Non Interest Income
122 123 132 149 137
Salaries and benefits expense
788 763 757 707 731
Occupancy and equipment expense
116 107 120 119 106
Other expense
375 259 289 272 302
Total Non Interest Expense
1,279 1,129 1,166 1,098 1,139
Pretax pre-provision income
1,345 1,414 1,393 1,400 1,348
Gain on sale of securities
1 (2 ) 3 4 7
Gain on sale of foreclosed assets
0 0 0 0 0
Gain on sale of other assets
0 0 0 0 0