SOURCE:
Trinity Bank
2008-08-08 10:06:00
Solid Loan Portfolio Contributes to Trinity Bank’s 39% Increase in Net Income
FORT WORTH, TX–(EMWNews – August 8, 2008) – Trinity Bank, N.A. (
announced financial results for the second quarter and for the six months
ending June 30, 2008.
Results of Operations
Trinity Bank, N.A. announced Net Income After Taxes of $340,015 or $.29 per
diluted common share for the second quarter of 2008, compared to $243,761
or $.21 per diluted common share for the second quarter of 2007, an
increase of 39%.
For the first six months of 2008, Net Income After Taxes amounted to
$665,326 or $.57 per diluted common share, compared to $461,284 or $.40 per
diluted common share, an increase of 44%.
Jeffrey M. Harp, President, stated, “Operating results for the second
quarter of 2008 represent our fifteenth consecutive quarter of profit
improvement. The performance of our loan portfolio has been outstanding. We
have not experienced a loan loss since the bank opened in May 2003. As of
June 30, 2008, Trinity Bank had no loans on non-accrual, no other real
estate owned (foreclosed real estate), and no loans that were 30 days past
due. In today’s environment, this is remarkable. We have been very
fortunate to date.”
Average for Quarter Ending
(in 000's) 6-30-08 6-30-07 %
--------- --------- -----
Loans $ 57,309 $ 46,530 23.2%
Deposits $ 108,252 90,344 19.8%
Actual for Quarter Ending
Net Interest Income $ 909 $ 850 6.9%
Non-Interest Income $ 106 $ 80 32.5%
Non-Interest Expense $ 539 $ 513 5.1%
Loan Loss Provision $ 45 $ 45 -
Pre Tax Income $ 431 $ 372 15.9%
Income Tax $ 91 $ 128 -28.9%
Net Income $ 340 $ 244 39.3%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Quarter Ended Six Months Ended
June 30 % June 30 %
EARNINGS SUMMARY 2008 2007 Change 2008 2007 Change
Interest income 1,430 1,602 -10.7% 3,011 3,081 -2.3%
Interest expense 521 752 -30.7% 1,201 1,468 -18.2%
Net Interest Income 909 850 6.9% 1,810 1,613 12.2%
Provision for Loan
Losses 45 45 0.0% 90 90 0.0%
Service charges on
deposits 24 28 -14.3% 49 52 -5.8%
Other income 82 52 57.7% 180 125 44.0%
Total Non Interest
Income 106 80 32.5% 229 177 29.4%
Salaries and benefits
expense 283 248 14.1% 568 505 12.5%
Occupancy and
equipment expense 87 87 0.0% 174 170 2.4%
Other expense 169 178 -5.1% 345 324 6.5%
Total Non Interest
Expense 539 513 5.1% 1,087 999 8.8%
Earnings before
income taxes 431 372 15.9% 862 701 23.0%
Provision for income
taxes 91 128 -28.9% 197 240 -17.9%
Net Earnings 340 244 39.3% 665 461 44.3%
Basic earnings per
share 0.31 0.22 39.3% 0.60 0.42 44.3%
Basic weighted
average shares 1,109 1,109 1,109 1,109
outstanding
Diluted earnings per
share 0.29 0.21 38.6% 0.57 0.40 43.5%
Diluted weighted
average shares
outstanding 1,166 1,160 1,166 1,160
Average for Quarter Average for Six Months
Ending June 30, % Ending June 30, %
BALANCE SHEET SUMMARY 2008 2007 Change 2008 2007 Change
Total loans $ 57,309 $ 46,530 23.2% $ 53,594 $ 44,762 19.7%
Total short term
investments 23,073 24,676 -6.5% 24,908 22,098 12.7%
Total investment
securities 36,588 26,955 35.7% 38,811 29,041 33.6%
Earning assets 116,970 98,161 19.2% 117,313 95,901 22.3%
Total assets 122,227 103,889 17.7% 122,673 101,466 20.9%
Noninterest bearing
deposits 20,553 20,411 0.7% 20,683 19,341 6.9%
Interest bearing
deposits 87,699 69,933 25.4% 88,131 65,770 34.0%
Total deposits 108,252 90,344 19.8% 108,814 85,111 27.8%
Shareholders' equity 12,821 11,486 11.6% 12,656 11,351 11.5%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Average for Quarter Ending
March Sept.
June 30, 31, Dec 31, 30, June 30,
BALANCE SHEET SUMMARY 2008 2008 2007 2007 2007
Total loans $ 57,309 $ 49,878 $ 50,053 $ 50,328 $ 46,530
Total short term investments 23,073 26,740 27,011 22,927 24,676
Total investment securities 36,588 41,033 36,569 30,778 26,955
Earning assets 116,970 117,651 113,633 104,033 98,161
Total assets 122,227 123,192 119,646 109,844 103,889
Noninterest bearing deposits 20,553 20,814 23,620 21,396 20,411
Interest bearing deposits 87,699 88,562 82,504 75,546 69,933
Total deposits 108,252 109,376 106,124 96,942 90,344
Repurchase Agreements 620 806 849 663 1,519
Shareholders' equity 12,821 12,491 12,078 11,725 11,486
Quarter Ended
March Sept.
June 30, 31, Dec 31, 30, June 30,
HISTORICAL EARNINGS SUMMARY 2008 2008 2007 2007 2007
Interest income 1,430 1,581 1,745 1,721 1,602
Interest expense 521 680 803 804 752
Net Interest Income 909 901 942 917 850
Provision for Loan Losses 45 45 45 45 45
Service charges on deposits 24 25 28 25 28
Other income 82 98 39 51 52
Total Non Interest Income 106 123 67 76 80
Salaries and benefits expense 283 285 324 278 248
Occupancy and equipment
expense 87 87 91 91 87
Other expense 169 176 115 161 178
Total Non Interest Expense 539 548 530 530 513
Earnings before income taxes 431 431 434 418 372
Provision for income taxes 91 106 129 147 128
Net Earnings 340 325 305 271 244
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Ending Balance
March Sept.
June 30, 31, Dec 31, 30, June 30,
HISTORICAL BALANCE SHEET 2008 2008 2007 2007 2007
Total loans $ 62,061 $ 51,866 $ 50,545 $ 50,936 $ 48,392
Total short term
investments 15,415 27,818 25,654 24,235 24,256
Total investment
securities 39,803 37,740 43,561 31,685 27,907
Total earning assets 117,279 117,424 119,760 106,856 100,555
Allowance for loan losses 816 771 726 681 636
Premises and equipment 1,541 1,588 1,630 1,677 1,723
Other Assets 4,657 4,491 4,572 5,126 4,780
Total assets 122,661 122,732 125,236 112,978 106,422
Noninterest bearing
deposits 20,506 20,820 24,423 22,487 19,963
Interest bearing deposits 88,270 87,874 87,352 77,319 73,738
Total deposits 108,776 108,694 111,775 99,806 93,701
Repurchase Agreements 621 714 820 732 756
Other Liabilities 401 585 379 494 388
Total liabilities 109,798 109,993 112,974 101,032 94,845
Shareholders' equity 12,863 12,739 12,262 11,946 11,577
Quarter Ending
March Sept.
June 30, 31, Dec 31, 30, June 30,
NONPERFORMING ASSETS 2008 2008 2007 2007 2007
Nonaccrual loans $ 0 $ 0 $ 0 $ 0 $ 0
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 $ 0 $ 0 $ 0 $ 0 $ 0
Accruing loans past due
30-89 days $ 0 $ 5 $ 0 $ 0 $ 0
Total nonperforming
assets as a percentage
of loans and foreclosed
assets 0.00% 0.00% 0.00% 0.00% 0.00%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Quarter Ending
June March Dec Sept. June
30, 31, 31, 30, 30,
ALLOWANCE FOR LOAN LOSSES 2008 2008 2007 2007 2007
Balance at beginning of period $ 771 $ 726 $ 681 $ 636 $ 591
Loans charged off 0 0 0 0 0
Loan recoveries 0 0 0 0 0
Net (charge-offs) recoveries 0 0 0 0 0
Provision for loan losses 45 45 45 45 45
Balance at end of period $ 816 $ 771 $ 726 $ 681 $ 636
Allowance for loan losses
as a percentage of total loans 1.31% 1.49% 1.44% 1.34% 1.31%
Allowance for loan losses
as a percentage of nonperforming loans N/A N/A N/A N/A N/A
Net charge-offs (recoveries) as a
percentage of average loans N/A N/A N/A N/A N/A
Provision for loan losses
as a percentage of average loans 0.08% 0.09% 0.09% 0.09% 0.09%
Quarter Ending
June March Dec Sept. June
30, 31, 31, 30, 30,
SELECTED RATIOS 2008 2008 2007 2007 2007
Return on average assets (annualized) 1.11% 1.06% 1.02% 0.99% 0.94%
Return on average equity (annualized) 10.61% 10.41% 10.10% 9.25% 8.50%
Average shareholders' equity to average
assets 10.49% 10.14% 10.09% 10.67% 11.06%
Yield on earning assets (tax equivalent) 5.17% 5.58% 6.30% 6.64% 6.53%
Cost of interest bearing funds 2.37% 3.04% 3.85% 4.22% 4.21%
Net interest margin (tax equivalent) 3.39% 3.26% 3.44% 3.56% 3.46%
Efficiency ratio (tax equivalent) 49.27% 50.70% 52.53% 53.37% 55.16%
End of period book value per common
share 11.60 11.49 11.06 10.77 10.44
End of period common shares outstanding 1,109 1,109 1,109 1,109 1,109
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
3 Months Ending
June 30, 2008 June 30, 2007
Tax Tax
Average Equivalent Average Equivalent
YIELD ANALYSIS Balance Yield Yield Balance Yield Yield
Interest Earning Assets:
Short term investment 23,073 3.42% 3.42% 24,676 5.37% 5.37%
Investment securities 14,282 3.91% 3.91% 26,955 4.47% 4.47%
Tax Free securities 22,306 3.24% 4.65% 0 0.00% 0.00%
Loans 57,309 6.39% 6.39% 46,530 8.34% 8.34%
Total Interest Earning Assets 116,970 4.90% 5.17% 98,161 6.53% 6.53%
Noninterest Earning Assets:
Cash and due from banks 3,532 3,709
Other assets 2,519 2,626
Allowance for loan losses (794) (607)
Total Noninterest Earning
Assets 5,257 5,728
Total Assets $ 122,227 $ 103,889
Interest Bearing Liabilities:
Transaction and Money Market
accounts 64,092 1.83% 1.83% 49,460 3.98% 3.98%
Certificates and other time
deposits 23,607 3.86% 3.86% 20,474 4.77% 4.77%
Other borrowings 620 1.25% 1.25% 1,519 4.21% 4.21%
Total Interest Bearing
Liabilities 88,319 2.37% 2.37% 71,453 4.21% 4.21%
Noninterest Bearing
Liabilities:
Demand deposits 20,553 20,411
Other liabilities 534 539
Shareholders' Equity 12,821 11,486
Total Liabilities and
Shareholders Equity $ 122,227 $ 103,889
Net Interest Income and
Spread 2.53% 2.80% 2.32% 2.32%
Net Interest Margin (includes
non-interest bearing
accounts) 3.12% 3.39% 3.46% 3.46%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
June 30 June 30
LOAN PORTFOLIO 2008 % 2007 %
Commercial and industrial 34,266 55.21% 27,470 56.77%
Real estate:
Commercial 11,056 17.81% 7,793 16.11%
Residential 8,194 13.20% 6,575 13.59%
Construction and development 6,547 10.55% 4,701 9.72%
Consumer 1,998 3.22% 1,849 3.82%
Total loans (gross) 62,061 100.00% 48,388 100.00%
Unearned discounts 0 0.00% 0 0.00%
Total loans (net) 62,061 100.00% 48,388 100.00%
June 30 June 30
2008 2007
REGULATORY CAPITAL DATA
Tier 1 Capital $ 12,929 $ 11,684
Total Capital (Tier 1 + Tier 2) $ 13,745 $ 12,320
Total Risk-Adjusted Assets $ 73,155 $ 60,151
Tier 1 Ratio 17.67% 19.42%
Total Capital Ratio 18.79% 20.48%
Tier 1 Leverage Ratio 10.58% 11.25%
OTHER DATA
Full Time Equivalent
Employees (FTEs) 14 14
Stock Price Range
(For the Six Months Ended):
High $ 20.00 $ 18.00
Low $ 20.00 $ 17.00
Close $ 20.00 $ 17.75
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 click on “About Us” and then click on “Investor
Information.” Financial information in regulatory reporting format is also
available at www.fdic.gov.
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.
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