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

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:

  1. The recovery from the unusually adverse weather conditions in late 2018 and early 2019 that affected our largest market segment- commercial construction.
  2. We maintained a focus on providing competitive rates to attract new deposit relationships and incentivize deposit growth within our existing customer base.
  3. 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

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     2019     2019     2019     2018  
 
                             
Balance at beginning of period
  $ 2,259     $ 2,224     $ 1,703     $ 1,671     $ 1,664  
Loans charged off
    0       0       498       0       23  
Loan recoveries
    3       35       19       2       0  
Net (charge-offs) recoveries
    3       35       (479 )     2       (23 )
Provision for loan losses
    0       0       1,000       30       30  
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 %     1.43 %     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 %     0.00 %     0.64 %     0.02 %     0.02 %
 
                                       
 
                                       
 
                                       
  Quarter Ending
  Dec 31,
Sept. 30,
    June 30,     March 31,     Dec 31,  
SELECTED RATIOS
    2019       2019       2019       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          
 
                               

SOURCE: Trinity Bank N.A.

View source version on accesswire.com:
https://www.accesswire.com/574545/Trinity-Bank-reports-2019-4th-Quarter-Net-Income-of-1220000

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