Trinity Bank reports 2019 4th Quarter Net Income of $ 1,220,000

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Full Year Net Income Of $4,043,000

FORT WORTH, TX / ACCESSWIRE / January 29, 2020 / Trinity Bank N.A. (OTC PINK:TYBT) today announced operating results for the fourth quarter and the twelve months ending December 31, 2019.

Results of Operation

For the fourth quarter 2019, Trinity Bank, N.A. reported Net Income after Taxes of $1,220,000, an increase of 1.7% over fourth quarter 2018 earnings of $1,200,000. Earnings per diluted common share for the fourth quarter 2019 amounted to $1.10, an increase of 1.9% over fourth quarter 2018 results of $1.08 per diluted common share.

For 2019, Net Income after Taxes was $4,043,000, a decrease of (13.6%) over 2018 results of $4,677,000. Earnings per diluted common share for 2019 were $3.63, a decrease of (13.4%) over 2018 results of $4.19 per diluted common share.

President Jeffrey M. Harp stated, "2019 results were favorable and yielded the second best year of performance in our 16 year history. While 2019 was a good year, it came with a few challenges. In April 2019, we identified a large problem loan relationship. We conservatively made a loan loss provision on a worst case basis. It now appears we have a reasonable chance to recover a significant portion of the debt. Further, following 9 prime rate increases from 2015 through December 2018 (and projections for at least three more increases in 2019) the Federal Reserve abruptly reversed course and decreased the prime rate three times - July, September and October 2019, creating material net interest margin pressure."

Executive Vice President Matt R. Opitz commented, "We are pleased with overall deposit growth in 2019. There were three primary factors that contributed to this above average growth:

The recovery from the unusually adverse weather conditions in late 2018 and early 2019 that affected our largest market segment- commercial construction.
We maintained a focus on providing competitive rates to attract new deposit relationships and incentivize deposit growth within our existing customer base.
Many of our customers had a great year in 2019 which generated strong positive cash flow."

		In 000’s
	Month end 12/31/2019	Month end 12/31/2018	∆
Loans	$ 167,589	$ 154,184	8.7 %
Deposits	$ 270,718	$ 223,647	21.0 %
Liquid Assets	$ 60,603	$ 13,127	361.7 %

"We have mentioned this in the past but we now find ourselves in the longest economic expansionary period in history. While we cannot predict the future, we are encouraged by the fact that we operate in one of the best markets in the country and look forward to continued growth and success in 2020."

Page 2 - Trinity Bank fourth quarter 2019 earnings

Trinity Bank N.A. , Wednesday, January 29, 2020, Press release picture

Page 3 - Trinity Bank fourth quarter 2019 earnings

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 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 Ending
	December 31						December 31
EARNINGS SUMMARY	2019		2018		Change		2019		2018		Change

Interest income	$	2,996	$	2,785		7.6%	$	11,812	$	10,520		12.3%
Interest expense		490		358		36.9%		1,852		1,118		65.7%
Net Interest Income		2,506		2,427		3.3%		9,960		9,402		5.9%

Service charges on deposits		48		31		54.8%		175		148		18.2%
Other income		79		101		-21.8%		338		399		-15.3%
Total Non Interest Income		127		132		-3.8%		513		547		-6.2%

Salaries and benefits expense		740		757		-2.2%		3,104		2,823		10.0%
Occupancy and equipment expense		93		120		-22.5%		436		466		-6.4%
Other expense		370		289		28.0%		1,301		1,245		4.5%
Total Non Interest Expense		1,203		1,166		3.2%		4,841		4,534		6.8%

Pretax pre-provision income		1,430		1,393		2.7%		5,632		5,415		4.0%

Gain on sale of securities		0		3		N/M		10		14		N/M

Provision for Loan Losses		0		30		N/M		1,030		90		N/M

Earnings before income taxes		1,430		1,366		4.7%		4,612		5,339		-13.6%
Provision for income taxes		210		166		26.5%		569		662		-14.0%
Net Earnings	$	1,220	$	1,200		1.7%	$	4,043	$	4,677		-13.6%

Basic earnings per share		1.12		1.09		2.4%		3.69		4.24		-13.0%
Basic weighted average shares outstanding		1,092		1,100				1,096		1,102

Diluted earnings per share - estimate		1.10		1.08		1.9%		3.63		4.19		-13.4%
Diluted weighted average shares outstanding		1,111		1,115				1,115		1,117



	Average for Quarter						Average for Twelve Months
	December 31						December 31
BALANCE SHEET SUMMARY		2019		2018	Change			2019		2018	Change

Total loans	$	154,764	$	144,801		6.9%	$	154,842	$	143,869		7.6%
Total short term investments		69,110		23,175		198.2%		36,120		18,854		91.6%
Total investment securities		70,508		79,700		-11.5%		74,127		84,427		-12.2%

Earning assets		294,382		247,676		18.9%		265,089		247,150		7.3%

Total assets		301,596		255,113		18.2%		272,704		254,343		7.2%

Noninterest bearing deposits		101,932		81,187		25.6%		81,381		81,783		-0.5%
Interest bearing deposits		168,784		141,081		19.6%		154,650		139,807		10.6%

Total deposits		270,716		222,268		21.8%		236,031		221,590		6.5%

Fed Funds Purchased and Repurchase Agreements		0		0		N/M		292		390		N/M

Shareholders' equity	$	35,382	$	31,948		10.7%	$	35,009	$	31,664		10.6%

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	2019		2019		2019			2019			2018

Total loans	$	154,764	$	156,304	$	156,571		$	152,227		$	144,801
Total short term investments		69,110		35,991		26,034			12,728			23,175
Total investment securities		70,508		72,212		74,627			79,278			79,700

Earning assets		294,382		264,507		257,232			244,233			247,676

Total assets		301,596		272,245		264,826			251,901			255,113

Noninterest bearing deposits		101,932		82,822		73,665			73,881			81,187
Interest bearing deposits		168,784		152,296		154,918			142,339			141,081

Total deposits		270,716		235,118		228,583			216,220			222,268

Fed Funds Purchased and Repurchase Agreements		0		0		0			1,187			0

Shareholders' equity	$	35,382	$	36,081	$	35,301		$	33,940		$	31,948


	Quarter Ended
		Dec 31,		Sept. 30,		June 30,			March 31,			Dec 31,
HISTORICAL EARNINGS SUMMARY		2019		2019		2019			2019			2018


Interest income	$	2,996	$	3,025	$	2,977		$	2,814		$	2,785
Interest expense		490		493		475			394			358
Net Interest Income		2,506		2,532		2,502			2,420			2,427

Service charges on deposits		48		36		42			40			31
Other income		79		104		80			83			101
Total Non Interest Income		127		140		122			123			132

Salaries and benefits expense		740		813		788			763			757
Occupancy and equipment expense		93		120		116			107			120
Other expense		370		299		375			259			289
Total Non Interest Expense		1,203		1,232		1,279			1,129			1,166

Pretax pre-provision income		1,430		1,440		1,345			1,414			1,393

Gain on sale of securities		0		12		1			(2	)		3
Gain on sale of foreclosed assets		0		0		0			0			0
Gain on sale of other assets		0		0		0			0			0

Provision for Loan Losses		0		0		1,000			30			30

Earnings before income taxes		1,430		1,452		346			1,382			1,366
Provision for income taxes		210		206		(28	)		180			166

Net Earnings	$	1,220	$	1,246	$	374		$	1,202		$	1,200

Diluted earnings per share	$	1.12	$	1.08	$	0.33		$	1.08		$	1.08

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

	Ending Balance
	Dec 31,			Sept. 30,			June 30,			March 31,			Dec 31,
HISTORICAL BALANCE SHEET	2019			2019			2019			2019			2018

Total loans	$	167,587		$	157,475		$	156,014		$	160,028		$	154,184
Total short term investments		60,603			56,328			19,321			14,160			13,127
Total investment securities		70,804			71,394			72,014			75,906			81,896

Total earning assets		298,994			285,197			247,349			250,094			249,207

Allowance for loan losses		(2,262	)		(2,259	)		(2,224	)		(1,703	)		(1,671	)
Premises and equipment		2,560			2,544			2,580			2,613			2,627
Other Assets		9,770			9,513			8,040			5,506			7,018

Total assets		309,062			294,995			255,745			256,510			257,181

Noninterest bearing deposits		100,527			97,519			76,168			69,934			85,668
Interest bearing deposits		170,191			159,712			143,710			150,895			137,979

Total deposits		270,718			257,231			219,878			220,829			223,647

Fed Funds Purchased and Repurchase Agreements		0			0			0			0			0
Other Liabilities		1,047			1,830			614			1,158			701

Total liabilities		271,765			259,061			220,492			221,987			224,348

Shareholders' Equity Actual		35,858			34,920			34,572			34,522			34,051
Unrealized Gain - AFS		1,439			1,014			681			1			(1,218)
Total Equity	$	37,297		$	35,934		$	35,253		$	34,523		$	32,833


	Quarter Ending
		Dec 31,			Sept. 30,			June 30,			March 31,			Dec 31,
NONPERFORMING ASSETS		2019			2019			2019			2019			2018

Nonaccrual loans	$	419		$	432		$	446		$	952		$	60
Restructured loans	$	0		$	0		$	0		$	0		$	0
Other real estate & foreclosed assets	$	320		$	320		$	320		$	0		$	0
Accruing loans past due 90 days or more	$	0		$	0		$	0		$	0		$	0
Total nonperforming assets	$	739		$	752		$	766		$	952		$	60

Accruing loans past due 30-89 days	$	0		$	0		$	0		$	477		$	0

Total nonperforming assets as a percentage
of loans and foreclosed assets		0.44	%		0.45	%		0.49	%		0.59	%		0.04	%

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

2019

2018

Balance at beginning of period

2,259

2,224

1,703

1,671

1,664

Loans charged off

498

Loan recoveries

Net (charge-offs) recoveries

(479

)

(23

)

Provision for loan losses

1,000

Balance at end of period

2,262

2,259

2,224

1,703

1,671

Allowance for loan losses

as a percentage of total loans

1.35

1.43

1.06

1.08

Allowance for loan losses

as a percentage of nonperforming assets

306

300

290

179

2785

Net charge-offs (recoveries) as a

percentage of average loans

0.00

-0.02

0.31

-0.01

0.02

Provision for loan losses

as a percentage of average loans

0.00

0.64

0.02

Quarter Ending

Dec 31,

Sept. 30,

June 30,

March 31,

Dec 31,

SELECTED RATIOS

2019

2018

Return on average assets (annualized)

1.62

1.83

0.56

1.91

1.88

Return on average equity (annualized)

13.34

13.81

4.24

14.17

15.02

Return on average equity (excluding unrealized gain on investments)

13.79

14.21

4.27

13.90

14.39

Average shareholders' equity to average assets

11.73

13.25

13.33

13.47

12.52

Yield on earning assets (tax equivalent)

4.67

4.79

4.85

4.86

4.75

Effective Cost of Funds

0.70

0.75

0.74

0.64

0.58

Net interest margin (tax equivalent)

3.97

4.04

4.11

4.22

4.17

Efficiency ratio (tax equivalent)

43.4

43.8

46.2

41.9

37.9

End of period book value per common share

34.22

32.85

32.14

31.44

29.85

End of period book value (excluding unrealized gain on investments)

32.90

31.92

31.52

31.44

30.96

End of period common shares outstanding (in 000's)

1,090

1,094

1,097

1,098

1,100

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

	Twelve Months Ending
	December 31,2019									December 31,2018

								Tax									Tax
	Average							Equivalent		Average							Equivalent
YIELD ANALYSIS	Balance			Interest		Yield		Yield		Balance			Interest		Yield		Yield

Interest Earning Assets:
Short term investment	$	35,738			708		1.98%		1.98	$	18,478			378		2.05		2.05%
FRB Stock		382			23		6.00%		6.00		367			23		6.00		6.00%
Taxable securities		622			13		2.09%		2.09		0			0		0.00		0.00%
Tax Free securities		73,505			2,160		2.94%		3.72		84,427			2,387		2.83		3.58%
Loans		154,938			8,908		5.75%		5.75		143,869			7,732		5.37		5.37%

Total Interest Earning Assets		265,185			11,812		4.45%		4.67		247,141			10,520		4.26		4.51%

Noninterest Earning Assets:
Cash and due from banks		5,100									4,411
Other assets		4,406									4,427
Allowance for loan losses		(1,987	)								(1,636	)

Total Noninterest Earning Assets		7,519									7,202

Total Assets	$	272,704								$	254,343

Interest Bearing Liabilities:
Transaction and Money Market accounts		121,613			1,217		1.00		1.00		115,271			797		0.69		0.69
Certificates and other time deposits		33,037			626		1.89		1.89		24,536			311		1.27		1.27
Other borrowings		293			9		3.07		3.07		390			10		2.56		2.56

Total Interest Bearing Liabilities		154,943			1,852		1.20		1.20		140,197			1,118		0.80		0.80

Noninterest Bearing Liabilities:
Demand deposits		81,381									81,783
Other liabilities		1,371									699
Shareholders' Equity		35,009									31,664

Total Liabilities and Shareholders Equity	$	272,704								$	254,343

Net Interest Income and Spread					9,960		3.26%		3.47%					9,402		3.46%		3.71%

Net Interest Margin							3.76%		3.97%							3.50%		4.06%

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

	Quarter Ending			Quarter Ending
	December 31			December 31
	2019			2018
LOAN PORTFOLIO

Commercial and industrial	$	98,099	58.54	$	80,226	57.38
Real estate:
Commercial		24,133	14.40%		18,672	13.35%
Residential		23,115	13.79%		24,335	17.40%
Construction and development		21,692	12.94%		15,885	11.36%
Consumer		548	0.33%		700	0.50%

Total loans (gross)		167,587	100.00%		139,818	100.00%

Unearned discounts		0	0.00%		0	0.00%

Total loans (net)	$	167,587	100.00%	$	139,818	100.00%


		December 31			December 31
		2019			2018
REGULATORY CAPITAL DATA
Tier 1 Capital	$	35,859		$	34,051
Total Capital (Tier 1 + Tier 2)	$	38,121		$	35,722
Total Risk-Adjusted Assets	$	181,050		$	171,326
Tier 1 Risk-Based Capital Ratio		19.81			19.88
Total Risk-Based Capital Ratio		21.06			20.85
Tier 1 Leverage Ratio		11.89			13.35

OTHER DATA
Full Time Equivalent
Employees (FTE's)		22			20

Stock Price Range
(For the Three Months Ended):
High	$	65.50		$	67.00
Low	$	62.00		$	59.05
Close	$	64.98		$	65.50