Trinity Bank Reports Return on Assets of 1.32 % Return on Equity 12.35%
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Trinity Bank Reports Return on Assets of 1.32 % Return on Equity 12.35%

Tuesday, July 28, 2020 2:45 PM
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Topic:
Earnings

FORT WORTH, TX / ACCESSWIRE / July 28, 2020 / Trinity Bank N.A. (OTC Bulletin Board:TYBT) today announced operating results for the three months ending June 30, 2020 and YTD results for the six months ending June 30, 2020.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $1,130,000 or $1.00 per diluted common share for the second quarter of 2020, compared to $374,000 or $0.33 per diluted common share for the second quarter of 2019, an increase of 203.0%.

For the first six months of 2020, Net Income after Taxes amounted to $2,254,000, an increase of 43% over the first half of 2019 results of $1,576,000. Earnings per diluted common share for the first half of 2020 were $1.99, an increase of 41% over the first half of 2019 results of $1.41 per diluted common share.

Barney Wiley, President, stated, "The primary focus in the 2Q was (and will continue to be) ADAPTING, IMPROVISING, and OVERCOMING. Our staff has performed admirably, going above and beyond expectations as our nation copes with the chaos created by the virus pandemic."

"The main story for 2Q was the SBA Payroll Protection Program. Trinity Bank was able to participate fully (thanks to our superb operations group) despite having never made an SBA loan prior to the PPP facility. To date, we have funded 268 PPP loans totaling $51,381,000 - average loan size of $191,700. While the PPP loans are at a 1% interest rate, we did receive most of the fees from the SBA associated with PPP in June. The bank has to take these fees into income over the life of the loans (undetermined at this time). With the portion of the fees taken into income attributable to 2Q, we were able to absorb all of the extraordinary PPP expense (personnel and software) and make a substantial addition to the Reserve for Loan Losses."

"This is an extremely challenging environment. With our core earnings (excluding PPP impact), strong capital base, asset quality, and efficiency, we remain cautiously optimistic about the future for Trinity Bank."

Profitability

6/30/2020

 

6/30/2019

   
           

Return on Assets

1.32%

 

0.56%

   

Return on Equity

12.35%

 

4.24%

   
           

Page 2 - Trinity Bank Second Quarter 2020

Average for Quarter Ending 6-30-20

         

(in 000's)

6/30/2020

 

6/30/2019

 

%

           

Loans

PPP Loans

Loans

$212,258

$41,726

$170,352

 

$156,571

0

$156,571

 

35.6

8.8

Deposits

$302,967

 

$228,583

 

32.5

Page 3 - Trinity Bank Six Months YTD

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

 

Six Months Ending

 

June 30

%

 

June 30

%

EARNINGS SUMMARY

2020

2019

Change

 

2020

2019

Change

               

Interest income

$3,042

$2,977

2.2%

 

$5,964

$5,791

3.0%

Interest expense

188

475

-60.4%

 

569

869

-34.5%

Net Interest Income

2,854

2,502

14.1%

 

5,395

4,922

9.6%

               

Service charges on deposits

39

42

-7.1%

 

89

81

9.9%

Other income

79

80

-1.3%

 

159

164

-3.0%

Total Non Interest Income

118

122

-3.3%

 

248

245

1.2%

               

Salaries and benefits expense

1,037

788

31.6%

 

1,892

1,551

22.0%

Occupancy and equipment expense

113

116

-2.6%

 

228

223

2.2%

Other expense

412

375

9.9%

 

814

632

28.8%

Total Non Interest Expense

1,562

1,279

22.1%

 

2,934

2,406

21.9%

               

Pretax pre-provision income

1,410

1,345

4.8%

 

2,709

2,761

-1.9%

               

Gain on sale of securities

0

1

N/M

 

0

(2)

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

125

1,000

-87.5%

 

125

1,030

-87.9%

               

Earnings before income taxes

1,285

346

271.4%

 

2,584

1,729

49.5%

Provision for income taxes

155

(28)

N/M

 

330

153

115.7%

               

Net Earnings

$1,130

$374

202.1%

 

$2,254

$1,576

43.0%

               

Basic earnings per share

1.04

0.34

205.9%

 

2.07

1.43

44.8%

Basic weighted average shares

1,086

1,100

   

1,087

1,099

 

outstanding

             
               

Diluted earnings per share - estimate

1.00

0.33

203.0%

 

1.99

1.41

41.1%

Diluted weighted average shares outstanding

1,133

1,119

   

1,134

1,118

 
               
               
               
 

Average for Quarter

   

Average for Six Months

 
 

June 30

%

 

June 30

%

BALANCE SHEET SUMMARY

2020

2019

Change

 

2020

2019

Change

               

Total loans

$212,258

$156,571

35.6%

 

$190,812

$154,327

23.6%

Total short term investments

41,211

26,034

58.3%

 

40,061

19,038

110.4%

Total investment securities

81,496

74,627

9.2%

 

77,753

76,940

1.1%

               

Earning assets

334,965

257,232

30.2%

 

308,626

250,305

23.3%

               

Total assets

342,369

264,826

29.3%

 

316,082

258,314

22.4%

               

Noninterest bearing deposits

122,409

73,665

66.2%

 

105,435

73,772

42.9%

Interest bearing deposits

180,558

154,918

16.6%

 

171,387

148,664

15.3%

               

Total deposits

302,967

228,583

32.5%

 

276,822

222,436

24.5%

               

Fed Funds Purchased and Repurchase Agreements

0

0

N/M

 

0

590

N/M

               

Shareholders' equity

$36,611

$35,301

3.7%

 

$36,495

$34,624

5.4%

               

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
  2020     2020     2019     2019     2019  
 
                             
Total loans
  $ 212,337     $ 169,367     $ 154,764     $ 156,304     $ 156,571  
Total short term investments
    41,211       38,126       69,110       35,991       26,034  
Total investment securities
    81,496       74,406       70,508       72,212       74,627  
 
                                       
Earning assets
    335,044       281,899       294,382       264,507       257,232  
 
                                       
Total assets
    342,369       289,795       301,596       272,245       264,826  
 
                                       
Noninterest bearing deposits
    122,409       89,277       101,932       82,822       73,665  
Interest bearing deposits
    180,558       161,400       168,784       152,296       154,918  
 
                                       
Total deposits
    302,967       250,677       270,716       235,118       228,583  
 
                                       
Fed Funds Purchased and Repurchase Agreements
    0       0       0       0       0  
 
                                       
Shareholders' equity
  $ 36,611     $ 36,379     $ 35,382     $ 36,081     $ 35,301  
 
                                       
 
                                       
  Quarter Ended  
HISTORICAL EARNINGS SUMMARY

June 30,
2020

March 31,
2020
    Dec 31,
2019
   
Sept. 30,
2019
    June 30,
2019
     
 
                                       
Interest income
  $ 3,042     $ 2,922     $ 2,996     $ 3,025     $ 2,977  
Interest expense
    188       381       490       493       475  
Net Interest Income
    2,854       2,541       2,506       2,532       2,502  
 
                                       
Service charges on deposits
    39       50       48       36       42  
Other income
    79       78       79       104       80  
Total Non Interest Income
    118       128       127       140       122  
 
                                       
Salaries and benefits expense
    1,037       856       740       813       788  
Occupancy and equipment expense
    113       114       93       120       116  
Other expense
    412       400       370       299       375  
Total Non Interest Expense
    1,562       1,370       1,203       1,232       1,279  
 
                                       
Pretax pre-provision income
    1,410       1,299       1,430       1,440       1,345  
 
                                       
Gain on sale of securities
    0       0       0       12       1  
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
    125       0       0       0       1,000  
 
                                       
Earnings before income taxes
    1,285       1,299       1,430       1,452       346  
Provision for income taxes
    155       175       210       206       (28 )
 
                                       
Net Earnings
  $ 1,130     $ 1,124     $ 1,220     $ 1,246     $ 374  
 
                                       
Diluted earnings per share
  $ 1.00     $ 0.99     $ 1.12     $ 1.08     $ 0.33  
                                         

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
  2020     2020     2019     2019     2019  
 
                             
Total loans
  216,848     173,992     167,587     157,475     156,014  
Total short term investments
    38,648       37,566       60,603       56,328       19,321  
Total investment securities
    90,658       73,287       70,804       71,394       72,014  
 
                                       
Total earning assets
    346,154       284,845       298,994       285,197       247,349  
 
                                       
Allowance for loan losses
    (2,396 )     (2,269 )     (2,262 )     (2,259 )     (2,224 )
Premises and equipment
    2,455       2,522       2,560       2,544       2,580  
Other Assets
    5,673       6,567       9,770       9,513       8,040  
 
                                       
Total assets
    351,886       291,665       309,062       294,995       255,745  
 
                                       
Noninterest bearing deposits
    118,933       89,581       100,527       97,519       76,168  
Interest bearing deposits
    192,159       162,726       170,191       159,712       143,710  
 
                                       
Total deposits
    311,092       252,307       270,718       257,231       219,878  
 
                                       
Fed Funds Purchased and Repurchase Agreements
    0       0       0       0       0  
Other Liabilities
    1,501       1,779       1,047       1,830       614  
 
                                       
Total liabilities
    312,593       254,086       271,765       259,061       220,492  
 
                                       
Shareholders' Equity Actual
    37,089       36,069       35,858       34,920       34,572  
Unrealized Gain - AFS
    2,203       1,510       1,439       1,014       681  
Total Equity
  39,292     37,579     37,297     35,934     35,253  
 
                                       
 
                                       
  Quarter Ending  
  June 30,
2020
March 31,
2020
    Dec 31,
2019
      Sept. 30,
2019
     

June 30,
2019

     
NONPERFORMING ASSETS
                                       
 
                                       
Nonaccrual loans
  388     408     419     432     446  
Restructured loans
  0     0     0     0     0  
Other real estate & foreclosed assets
  320     320     320     320     320  
Accruing loans past due 90 days or more
  0     0     0     0     0  
Total nonperforming assets
  708     728     739     752     766  
 
                                       
Accruing loans past due 30-89 days
  0     248     0     0     0  
 
                                       
Total nonperforming assets as a percentage
                                       
of loans and foreclosed assets
    0.33 %     0.42 %     0.44 %     0.45 %     0.49 %
                                         

 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
  2020     2020     2019     2019     2019  
 
                             
Balance at beginning of period
  2,269     2,262     2,259     2,224     1,703  
Loans charged off
    0       0       0       0       498  
Loan recoveries
    2       7       3       35       19  
Net (charge-offs) recoveries
    2       7       3       35       (479 )
Provision for loan losses
    125       0       0       0       1,000  
Balance at end of period
  2,396     2,269     2,262     2,259     2,224  
 
                                       
Allowance for loan losses
                                       
as a percentage of total loans
    1.10 %     1.30 %     1.35 %     1.43 %     1.43 %
Allowance for loan losses
                                       
as a percentage of nonperforming assets
    338 %     312 %     306 %     300 %     290 %
Net charge-offs (recoveries) as a
                                       
percentage of average loans
    0.00 %     -0.01 %     0.00 %     -0.02 %     0.31 %
Provision for loan losses
                                       
as a percentage of average loans
    0.06 %     0.00 %     0.00 %     0.00 %     0.64 %
 
                                       
 
                                       
 
                                       
  Quarter Ending  
  June 30,
2020
March 31,
2020
    Dec 31,
2019
      Sept. 30,
2019
      June 30,
2019
     
SELECTED RATIOS
                                       
 
                                       
Return on average assets (annualized)
    1.32 %     1.55 %     1.62 %     1.83 %     0.56 %
 
                                       
Return on average equity (annualized)
    12.35 %     11.80 %     13.34 %     13.81 %     4.24 %
 
                                       
Return on average equity (excluding unrealized gain on investments)
    12.34 %     12.36 %     13.79 %     14.21 %     4.27 %
 
                                       
Average shareholders' equity to average assets
    10.69 %     12.55 %     11.73 %     13.25 %     13.33 %
 
                                       
Yield on earning assets (tax equivalent)
    3.81 %     4.33 %     4.67 %     4.79 %     4.85 %
 
                                       
Effective Cost of Funds
    0.22 %     0.54 %     0.70 %     0.75 %     0.74 %
 
                                       
Net interest margin (tax equivalent)
    3.59 %     3.79 %     3.97 %     4.04 %     4.11 %
 
                                       
Efficiency ratio (tax equivalent)
    51.6 %     48.9 %     43.4 %     43.8 %     46.2 %
 
                                       
End of period book value per common share
  36.18     34.54     34.22     32.85     32.14  
 
                                       
End of period book value (excluding unrealized gain on investments)
  34.15     33.15     32.90     31.92     31.52  
 
                                       
End of period common shares outstanding (in 000's)
    1,086       1,088       1,090       1,094       1,097  
                                         

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

 

 

Quarter Ending

 

June 30,2020

 

June 30,2019

                   
       

Tax

       

Tax

 

Average

   

Equivalent

 

Average

   

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Yield

 

Balance

Interest

Yield

Yield

                   

Interest Earning Assets:

                 

Short term investment

$ 41,211

13

0.13%

0.13%

 

$ 25,653

153

2.39%

2.39%

FRB Stock

395

6

6.00%

6.00%

 

381

6

6.00%

6.00%

Taxable securities

0

0

0.00%

0.00%

 

1,593

9

2.26%

2.26%

Tax Free securities

81,101

564

2.78%

3.52%

 

73,034

539

2.95%

3.74%

Loans

212,258

2,459

4.63%

4.63%

 

156,571

2,270

5.80%

5.80%

                   

Total Interest Earning Assets

334,965

3,042

3.63%

3.81%

 

257,232

2,977

4.63%

4.85%

                   

Noninterest Earning Assets:

                 

Cash and due from banks

5,223

       

5,021

     

Other assets

4,453

       

4,322

     

Allowance for loan losses

(2,272)

       

(1,749)

     
                   

Total Noninterest Earning Assets

7,404

       

7,594

     
                   

Total Assets

$342,369

       

$264,826

     
                   

Interest Bearing Liabilities:

                 

Transaction and Money Market accounts

138,440

25

0.07%

0.07%

 

125,618

321

1.02%

1.02%

Certificates and other time deposits

42,118

163

1.55%

1.55%

 

29,300

154

2.10%

2.10%

Other borrowings

0

0

0.00%

0.00%

 

0

0

0.00%

0.00%

                   

Total Interest Bearing Liabilities

180,558

188

0.42%

0.42%

 

154,918

475

1.23%

1.23%

                   

Noninterest Bearing Liabilities:

                 

Demand deposits

122,409

       

73,665

     

Other liabilities

1,352

       

942

     

Shareholders' Equity

38,050

       

35,301

     
                   

Total Liabilities and Shareholders Equity

$342,369

       

$264,826

     
                   

Net Interest Income and Spread

 

2,854

3.22%

3.39%

   

2,502

3.40%

3.62%

                   

Net Interest Margin

   

3.41%

3.59%

     

3.89%

4.11%

                   

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

 

 

June 30

 

June 30

   
 

2020

%

2019

%

 

LOAN PORTFOLIO

         
           

Commercial and industrial

$140,483

64.78%

$87,559

56.05%

 

Real estate:

         

Commercial

31,017

14.30%

23,311

14.92%

 

Residential

23,043

10.63%

22,471

14.39%

 

Construction and development

21,875

10.09%

22,445

14.37%

 

Consumer

430

0.20%

419

0.27%

 
           

Total loans (gross)

216,848

100.00%

156,205

100.00%

 
           

Unearned discounts

0

0.00%

0

0.00%

 
           

Total loans (net)

$216,848

100.00%

$156,205

100.00%

 
           
           
 

June 30

 

June 30

   
 

2020

 

2019

   

REGULATORY CAPITAL DATA

         

Tier 1 Capital

$37,089

 

$34,572

   

Total Capital (Tier 1 + Tier 2)

$39,370

 

$36,708

   

Total Risk-Adjusted Assets

$182,279

 

$170,838

   

Tier 1 Risk-Based Capital Ratio

20.35%

 

20.24%

   

Total Risk-Based Capital Ratio

21.60%

 

21.49%

   

Tier 1 Leverage Ratio

10.83%

 

13.05%

   
           

OTHER DATA

         

Full Time Equivalent

         

Employees (FTE's)

23

 

22

   
           

Stock Price Range

         

(For the Three Months Ended):

         

High

$64.98

 

$66.00

   

Low

$58.90

 

$58.90

   

Close

$60.50

 

$64.00

   

SOURCE: Trinity Bank N.A.

Trinity Bank N.A.
Exchange:
Ticker:
OTC PINK
TYBT
$63.50
0.0000
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