Trinity Bank Reports 4Q and FYE 2017 Results

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January 31, 2018 8:02 AM EST

- 2017 Earnings Per Share were down 23% due to the write down of our Deferred Tax Asset (required by the passage of the Tax Reform Act dated 12-22-17) and a large loan loss provision (and subsequent charge off) for our one problem loan
- Return on Assets of 1.23% and Return on Equity of 10.22% (while well below our historical performance) are slightly above the average returns for our Bank Peer Group
- Good deposit growth, excellent efficiency, and strong Equity to Assets Ratio of 12.05% are indicative of the effort by the staff, management and Board of Trinity Bank to produce superior returns and shareholder value

FORT WORTH, TX / ACCESSWIRE / January 31, 2018 / Trinity Bank N.A. (OTC PINK: TYBT) today announced financial and operating results for the fourth quarter and for the twelve months ended December 31, 2017.

Trinity Bank, N.A. reported Net Income after Taxes for the fourth quarter of 2017 of $642,000 or $.57 per diluted common share, compared to $1,072,000 or $.96 per diluted common share for the fourth quarter of 2016, a decrease of 40.3%.

For the year 2016, Net Income After Taxes amounted to $3,068,000, or $2.74 per diluted common share, compared to $4,009,000, or $3.56 per diluted common share for 2016, a decrease of 23.1%.

Jeffrey M. Harp, President, stated, "Prior to the changes mentioned in the first bullet point above, Trinity Bank generated its best monthly profit ever in December, and the fourth quarter was the best quarter since inception in 2003. The 2017 Tax Reform Act (which necessitated the write-down of the Deferred Tax Asset) has significant positive implications for Trinity Bank in the long run. The large loan loss provision for our one problem loan is behind us."

"In a year that didn't meet our expectations, Trinity Bank still earned over $3,000,000 after taxes (a decent return on our shareholder's original and only capital investment of $11,000,000), paid over $1,100,000 in cash dividends, and generated above average returns on assets and equity compared to our Bank Peer Group. We look forward to performing at historical levels in 2018 and beyond."

For Year Ending
Trinity Bank

Peer Group
(9-30-17)
2017
2016
2015
2014
2013
Return on Assets
 .93% 1.23% 1.79% 1.79% 1.68% 1.58%
Return on Equity
(excluding unrealized
 8.72% 10.22% 14.32% 14.69% 14.29% 13.83%
gain on securities)

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 SB1 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 forwardlooking 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 forwardlooking 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
2017
2016
Change
2017
2016
Change
Interest income
 $2,407 $2,050 17.4% $9,141 $8,120 12.6%
Interest expense
 192 138 39.1% 656 534 22.8%
Net Interest Income
 2,215 1,912 15.8% 8,485 7,586 11.9%
Service charges on deposits
 35 42 -16.7% 149 156 -4.5%
Other income
 91 89 2.2 366 397 -7.8%
Total Non Interest Income
 126 131 -3.8% 515 553 -6.9%
Salaries and benefits expense
 575 526 9.3% 2,102 2,031 3.5%
Occupancy and equipment expense
 112 77 45.5% 432 302 43.0%
Other expense
 290 210 38.1% 1,116 1,046 6.7%
Total Non Interest Expense
 977 813 20.2% 3,650 3,379 8.0%
Pretax pre-provision income
 1,364 1,230 10.9% 5,350 4,760 12.4%
Gain on sale of securities
 2 79 N/M 4 263 N/M
Gain on sale of assets
 0 0 N/M 0 41 N/M
Provision for Loan Losses
 507 0 N/M 1,627 0 N/M
Earnings before income taxes
 859 1,309 -34.4% 3,727 5,064 -26.4%
Provision for income taxes
 217 237 -8.4% 659 1,055 -37.5%
Net Earnings
 $642 $1,072 -40.1% $3,068 $4,009 -23.5%
Basic earnings per share
 0.58 0.97 -40.2% 2.77 3.59 -22.7%
Basic weighted average shares outstanding
 1,106 1,109 1,106 1,116
Diluted earnings per share
 0.57 0.96 -40.3% 2.74 3.56 -23.1%
Diluted weighted average shares outstanding
 1,121 1,120 1,121 1,127


Average for Quarter
Average for Twelve Months
December 31
%
December 31
%
BALANCE SHEET SUMMARY
2017
2016
Change
2017
2016
Change
Total loans
 $130,708 $124,012 5.4% $131,126 $121,267 8.1%
Total short term investments
 33,929 21,884 55.0% 24,136 17,355 39.1%
Total investment securities
 92,935 81,207 14.4% 87,396 79,629 9.8%
Earning assets
 257,572 227,103 13.4% 242,658 218,251 11.2%
Total assets
 264,668 232,931 13.6% 249,390 223,624 11.5%
Noninterest bearing deposits
 81,387 72,209 12.7% 75,434 64,586 16.8%
Interest bearing deposits
 150,771 129,186 16.7% 142,423 127,783 11.5%
Total deposits
 232,158 201,395 15.3% 217,857 192,369 13.2%
Fed Funds Purchased and Repurchase Agreements
 0 361 -100.0% 79 359 -78.0%
Shareholders' equity
 $31,546 $29,946 5.3% $30,682 $29,613 3.6%

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
2017
2017
2017
2017
2016
Total loans
 $130,708 $131,507 $131,481 $130,977 $124,012
Total short term investments
 33,929 26,349 21,563 14,089 21,884
Total investment securities
 92,935 89,922 84,656 82,294 81,207
Earning assets
 257,572 247,778 237,700 227,360 227,103
Total assets
 264,668 254,291 244,153 234,058 232,931
Noninterest bearing deposits
 81,387 75,572 73,999 70,654 72,209
Interest bearing deposits
 150,771 146,331 139,407 132,946 129,186
Total deposits
 232,158 221,903 213,406 203,600 201,395
Fed Funds Purchased and Repurchase Agreements
 0 0 0 320 361
Shareholders' equity
 $31,546 $31,428 $30,024 $29,701 $29,746

Quarter Ended
Dec 31,
Sept. 30,
June 30,
March 31,
Dec 31,
HISTORICAL EARNINGS SUMMARY
2017
2017
2017
2017
2016
Interest income
 $2,407 $2,345 $2,244 $2,145 $2,050
Interest expense
 192 175 150 139 138
Net Interest Income
 2,215 2,170 2,094 2,006 1,912
Service charges on deposits
 35 35 38 42 42
Other income
 91 94 92 88 89
Total Non Interest Income
 126 129 130 130 131
Salaries and benefits expense
 575 520 499 508 526
Occupancy and equipment expense
 112 110 106 104 77
Other expense
 290 276 281 269 210
Total Non Interest Expense
 977 906 886 881 813
Pretax pre-provision income
 1,364 1,393 1,338 1,255 1,230
Gain on sale of securities
 2 0 3 (1) 79
Gain on sale of other assets
 0 0 0 0 0
Provision for Loan Losses
 507 60 60 1,000 0
Earnings before income taxes
 859 1,333 1,281 254 1,309
Provision for income taxes
 217 280 265 (103) 237
Net Earnings
 $642 $1,053 $1,016 $357 $1,072
Diluted earnings per share
 $0.57 $0.94 $0.91 $0.32 $0.96

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
2017
2017
2017
2017
2016
Total loans
 $139,818 $129,762 $132,854 $131,531 $132,140
Total short term investments
 19,027 39,662 20,090 28,599 9,615
Total investment securities
 93,518 91,467 88,902 81,820 83,241
Total earning assets
 252,363 260,891 241,846 241,950 224,996
Allowance for loan losses
 (1,600) (1,493) (2,731) (2,662) (1,652)
Premises and equipment
 2,731 2,747 2,780 2,698 2,525
Other Assets
 5,817 6,050 6,433 5,950 6,875
Total assets
 259,311 268,195 248,328 247,936 232,744
Noninterest bearing deposits
 84,445 79,366 75,867 78,381 74,537
Interest bearing deposits
 143,638 155,790 140,577 139,409 127,986
Total deposits
 228,083 235,156 216,444 217,790 202,523
Fed Funds Purchased and Repurchase Agreements
 0 0 0 0 361
Other Liabilities
 352 1,548 872 923 472
Total liabilities
 228,435 236,704 217,316 218,713 203,356
Shareholders' Equity Actual
 30,993 30,310 29,886 29,015 29,201
Unrealized Gain - AFS
 (117) 1,181 1,126 208 187
Total Equity
 $30,876 $31,491 $31,012 $29,223 $29,388
Quarter Ending
Dec 31,
Sept. 30,
June 30,
March 31,
Dec 31,
NONPERFORMING ASSETS
 2017 2017 2017 2017 2016
Nonaccrual loans
 $394 $921 $2,345 $2,527 $2,753
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
 $394 $921 $2,345 $2,527 $2,753
Accruing loans past due 30-89 days
 $0 $0 $0 $0 $121
Total nonperforming assets as a percentage
of loans and foreclosed assets
 0.28% 0.71% 1.77% 1.92% 2.08%

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
2017
2017
2017
2017
2016
Balance at beginning of period
$1,493
$2,731
$2,662
$1,652
$1,644
Loans charged off
 400 1,300 0 0 0
Loan recoveries
 0 2 9 10 8
Net (charge-offs) recoveries
 (400)
(1,298)
9 10 8
Provision for loan losses
 507 60 60 1,000 0
Balance at end of period
$1,600
$1,493
$2,731
$2,662
$1,652
Allowance for loan losses
as a percentage of total loans
 1.14%
1.15%
2.06%
2.02%
1.25%
Allowance for loan losses
as a percentage of nonperforming assets
 406%
162%
116%
105%
60%
Net charge-offs (recoveries) as a
percentage of average loans
 0.31%
0.99%
-0.01%
-0.01%
-0.01%
Provision for loan losses
as a percentage of average loans
 0.39%
0.05%
0.05%
0.76%
N/A


Quarter Ending
Dec 31,
Sept. 30,
June 30,
March 31,
Dec 31,
SELECTED RATIOS
2017
2017
2017
2017
2016
Return on average assets (annualized)
 0.97% 1.66% 1.66% 0.61% 1.84%
Return on average equity (annualized)
 8.14% 13.40% 13.54% 4.81% 14.32%
Return on average equity (excluding unrealized gain on investments)
 8.44% 13.90% 13.78% 4.85% 14.97%
Average shareholders' equity to average assets
 11.92% 12.36% 12.30% 12.69% 12.86%
Yield on earning assets (tax equivalent)
 4.17% 4.22% 4.19% 4.20% 4.13%
Effective Cost of Funds
 0.29% 0.28% 0.25% 0.25% 0.25%
Net interest margin (tax equivalent)
 3.88% 3.94% 3.94% 3.95% 3.88%
Efficiency ratio (tax equivalent)
 37.2% 35.3% 35.8% 37.0% 35.8%
End of period book value per common share
 $27.92 $28.47 $28.04 $26.37 $26.50
End of period book value (excluding unrealized gain on investments)
 $28.02 $27.41 $27.02 $26.19 $26.33
End of period common shares outstanding (in 000's)
 1,106 1,106 1,106 1,108 1,109

TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Twelve Months Ending
December 31, 2017
December 31, 2016
Tax
Tax
Average
Equivalent
Average
Equivalent
YIELD ANALYSIS
Balance
Interest
Yield
Yield
Balance
Interest
Yield
Yield
Interest Earning Assets:
Short term investment
 $23,763 311 1.31% 1.31% $16,983 137 0.81% 0.81%
FRB Stock
 373 23 6.17% 6.00% 372 24 6.00% 6.00%
Tax Free securities
 87,396 2,361 2.70% 3.89% 79,629 2,007 2.52% 3.63%
Loans
 131,126 6,446 4.92% 4.92% 121,267 5,952 4.91% 4.91%
Total Interest Earning Assets
 242,658 9,141 3.77% 4.19% 218,251 8,120 3.72% 4.13%
Noninterest Earning Assets:
Cash and due from banks
 4,404 3,968
Other assets
 4,539 3,038
Allowance for loan losses
 (2,211) (1,633)
Total Noninterest Earning Assets
 6,732 5,373
Total Assets
 $249,390 $223,624
Interest Bearing Liabilities:
Transaction and Money Market accounts
 114,315 396 0.35% 0.35% 102,554 319 0.31% 0.31%
Certificates and other time deposits
 28,108 259 0.92% 0.92% 25,249 214 0.85% 0.85%
Other borrowings
 79 1 0.25% 0.25% 359 1 0.28% 0.28
Total Interest Bearing Liabilities
 142,502 656 0.46% 0.46% 128,162 534 0.42% 0.42%
Noninterest Bearing Liabilities:
Demand deposits
 75,434 64,566
Other liabilities
 772 1,283
Shareholders' Equity
 30,682 29,613
Total Liabilities and Shareholders Equity
 $249,390 $223,624
Net Interest Income and Spread
 8,485 3.31% 3.73% 7,586 3.30% 3.71%
Net Interest Margin
 3.50% 3.93% 3.48% 3.88%

TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
December 31
December 31
2017
%
2016
%
LOAN PORTFOLIO
Commercial and industrial
 $80,226 57.38% $74,928 56.70%
Real estate:
Commercial
 18,672 13.35% 22,307 16.88%
Residential
 24,335 17.40% 19,255 14.57%
Construction and development
 15,885 11.36% 14,507 10.98%
Consumer
 700 0.50% 1,143 0.86%
Total loans (gross)
 139,818 100.00% 132,140 100.0%0
Unearned discounts
 0 0.00% 0 0.00%
Total loans (net)
 $139,818 100.00% $132,140 100.00%


December 31
December 31
2017 %
2016
REGULATORY CAPITAL DATA
Tier 1 Capital
 $30,993 $29,201
Total Capital (Tier 1 + Tier 2)
 $32,593 $30,853
Total Risk-Adjusted Assets
 $158,248 $151,282
Tier 1 Risk-Based Capital Ratio
 19.59% 19.30%
Total Risk-Based Capital Ratio
 20.60% 20.39%
Tier 1 Leverage Ratio
 11.71% 12.54%
OTHER DATA
Full Time Equivalent
Employees (FTE's)
 17 16
Stock Price Range
(For the Three Months Ended):
High
 $60.30 $56.00
Low
 $57.25 $50.10
Close
 $59.83 $53.50

SOURCE: Trinity Bank, N.A


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