Trinity Bank Reports: 2016 First Quarter Net Income Up 7.4%; Dividend Increases 4.8%
/EINPresswire.com/ -- FORT WORTH, TX -- (Marketwired) -- 04/20/16 -- Trinity Bank N.A. (OTC: TYBT) today announced operating results for the three months ending March 31, 2016.
Results of Operations
Trinity Bank, N.A. reported Net Income After Taxes of $952,000 or $.84 per diluted common share for the first quarter of 2016, compared to $886,000 or $.78 per diluted common share for the first quarter of 2015, an increase of 7.7%.
President Jeffrey M. Harp stated, "The 7.7% increase in Earnings Per Share is below our historical performance -- 10 to 15% increases. In 2015, we reached a plateau. We cannot keep increasing profits without adding new staff and expanding our bank facility. We have added staff in 2016 with more to come and we are about to begin an expansion and renovation of our facility. These actions may penalize results for this year and 2017, but they are necessary to produce long-term shareholder value.
"We continue to produce at a high level (Return on Assets of 1.73% and Return on Equity of 14.01%) in relation to all other banks. In spite of the necessary investments, we anticipate that we will maintain our streak since inception in 2003 of increasing Net Income each year over the previous year.
"As previously announced, Trinity Bank will distribute its ninth cash dividend on April 29, $.44 per share, an increase of 4.8% over the $.42 per share paid in October 2015."
Profitability 3/31/2016 3/31/2015
----------- -----------
Return on Assets 1.73% 1.71%
Return on Equity 14.01% 14.47%
Average for Quarter Ending %
----
(in 000's)
Loans $ 122,069 $ 111,088 9.9
Deposits $ 190,020 $ 181,162 4.9
Actual for Quarter Ending
(in 000's) 3/31/2016 3/31/2015 %
--------- --------- --------
Net Interest Income $ 1,917 $ 1,764 8.7
Non-Interest Income 143 130 10.0
Non-Interest Expense (885) (813) 8.9
Pretax Preprovision Income $ 1,175 $ 1,081 8.7
Gain on Sale of Securities and Assets $ 49 $ 70 (30.0)
Loan Loss Provision 0 0 N/M
Pre Tax Income 1,224 1,151 6.3
Income Tax (272) (265) 2.6
Net Income $ 952 $ 886 7.4
Diluted Weighted Average Shares 1,131 1,132
Earnings per Share $ 0.84 $ 0.78 7.7
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.
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
March 31 %
EARNINGS SUMMARY 2016 2015 Change
Interest income $ 2,043 $ 1,862 9.7%
Interest expense 126 98 28.6%
Net Interest Income 1,917 1,764 8.7%
Service charges on deposits 39 42 -7.1%
Other income 104 88 18.2%
Total Non Interest Income 143 130 10.0%
Salaries and benefits expense 509 429 18.6%
Occupancy and equipment expense 78 61 27.9%
Other expense 298 323 -7.7%
Total Non Interest Expense 885 813 8.9%
Pretax pre-provision income 1,175 1,081 8.7%
Gain on sale of securities 27 0 N/M
Gain on sale of foreclosed assets 0 70 N/M
Gain on sale of assets 22 0 N/M
Provision for Loan Losses 0 0 N/M
Earnings before income taxes 1,224 1,151 6.3%
Provision for income taxes 272 265 2.6%
Net Earnings $ 952 $ 886 7.4%
Basic earnings per share 0.85 0.79 7.6%
Basic weighted average shares 1,120 1,121
outstanding
Diluted earnings per share 0.84 0.78 7.7%
Diluted weighted average shares outstanding 1,131 1,132
Average for Quarter
March 31 %
BALANCE SHEET SUMMARY 2016 2015 Change
Total loans $ 122,069 $ 111,088 9.9%
Total short term investments 16,414 20,885 -21.4%
Total investment securities 76,418 70,779 8.0%
Earning assets 214,901 202,752 6.0%
Total assets 220,262 207,502 6.1%
Noninterest bearing deposits 63,433 58,296 8.8%
Interest bearing deposits 126,587 122,866 3.0%
Total deposits 190,020 181,162 4.9%
Fed Funds Purchased and Repurchase Agreements 355 429 -17.2%
Shareholders' equity $ 28,758 $ 25,203 14.1%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Average for Quarter Ending
March 31, Dec 31, Sept. 30, June 30, March 31,
BALANCE SHEET SUMMARY 2016 2015 2015 2015 2015
Total loans $ 122,069 $124,316 $ 119,107 $116,614 $ 111,088
Total short term investments 16,414 16,894 13,055 11,618 20,885
Total investment securities 76,418 71,663 70,557 72,378 70,779
Earning assets 214,901 212,873 202,719 200,610 202,752
Total assets 220,262 217,961 207,560 205,394 207,502
Noninterest bearing deposits 63,433 67,719 60,995 57,617 58,296
Interest bearing deposits 126,587 120,853 118,640 120,879 122,866
Total deposits 190,020 188,572 179,635 178,496 181,162
Fed Funds Purchased and
Repurchase Agreements 355 361 429 429 429
Shareholders' equity $ 28,758 $ 27,733 $ 26,653 $ 25,638 $ 25,203
Quarter Ended
March 31, Dec 31, Sept. 30, June 30, March 31,
HISTORICAL EARNINGS SUMMARY 2016 2015 2015 2015 2015
Interest income $ 2,043 $ 2,070 $ 2,007 $ 1,953 $ 1,862
Interest expense 126 107 97 96 98
Net Interest Income 1,917 1,963 1,910 1,857 1,764
Service charges on deposits 39 50 48 46 42
Other income 104 87 82 83 88
Total Non Interest Income 143 137 130 129 130
Salaries and benefits
expense 509 627 514 454 429
Occupancy and equipment
expense 78 68 69 65 61
Other expense 298 149 256 286 323
Total Non Interest Expense 885 844 839 805 813
Pretax pre-provision income 1,175 1,256 1,201 1,181 1,081
Gain on sale of securities 27 18 31 12 0
Gain on sale of foreclosed
assets 0 0 0 0 70
Gain on sale of other assets 22 21 0 0 0
Provision for Loan Losses 0 76 0 0 0
Earnings before income taxes 1,224 1,219 1,232 1,193 1,151
Provision for income taxes 272 242 283 271 265
Net Earnings $ 952 $ 977 $ 949 $ 922 $ 886
Diluted earnings per share $ 0.84 $ 0.86 $ 0.84 $ 0.81 $ 0.78
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Ending Balance
HISTORICAL BALANCE March 31, Dec 31, Sept. 30, June 30, March 31,
SHEET 2016 2015 2015 2015 2015
Total loans $ 120,214 $127,871 $ 118,146 $120,706 $ 112,689
Total short term
investments 21,082 20,095 18,533 8,158 20,562
Total investment
securities 78,737 72,616 70,542 70,523 71,606
Total earning assets 220,033 220,582 207,221 199,387 204,857
Allowance for loan
losses (1,624) (1,613) (1,528) (1,518) (1,477)
Premises and equipment 1,444 1,397 1,304 1,286 1,223
Other Assets 5,189 8,008 5,381 4,700 4,941
Total assets 225,042 228,374 212,378 203,855 209,544
Noninterest bearing
deposits 63,151 73,078 60,749 59,449 61,777
Interest bearing
deposits 130,828 125,772 122,491 117,515 121,244
Total deposits 193,979 198,850 183,240 176,964 183,021
Fed Funds Purchased and
Repurchase Agreements 355 355 429 429 429
Other Liabilities 1,842 1,095 1,582 604 1,051
Total liabilities 196,176 200,300 185,251 177,997 184,501
Shareholders' Equity
Actual 27,180 26,755 25,818 25,408 24,486
Unrealized Gain - AFS 1,686 1,319 1,309 450 557
Total Equity $ 28,866 $ 28,074 $ 27,127 $ 25,858 $ 25,043
Quarter Ending
March 31, Dec 31, Sept. 30, June 30, March 31,
NONPERFORMING ASSETS 2015 2015 2015 2015 2015
Nonaccrual loans $ 1,383 $ 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 $ 1,383 $ 0 $ 0 $ 0 $ 0
Accruing loans past due
30-89 days $ 0 $ 0 $ 0 $ 0 $ 0
Total nonperforming
assets as a percentage
of loans and
foreclosed assets 1.15% 0.00% 0.00% 0.00% 0.00%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
Quarter Ending
ALLOWANCE FOR March 31, Dec 31, Sept. 30, June 30, March 31,
LOAN LOSSES 2015 2015 2015 2015 2015
Balance at beginning of
period $ 1,613 $ 1,528 $ 1,518 $ 1,477 $ 1,475
Loans charged off 0 0 0 0 0
Loan recoveries 11 9 10 41 2
Net (charge-offs)
recoveries 11 9 10 41 2
Provision for loan
losses 0 76 0 0 0
Balance at end of
period $ 1,624 $ 1,613 $ 1,528 $ 1,518 $ 1,477
Allowance for loan
losses
as a percentage of
total loans 1.35% 1.26% 1.29% 1.26% 1.31%
Allowance for loan
losses
as a percentage of
nonperforming assets 117.43% N/A N/A N/A N/A
Net charge-offs
(recoveries) as a
percentage of average
loans -0.01% -0.01% -0.01% -0.04% N/A
Provision for loan
losses
as a percentage of
average loans N/A N/A N/A N/A N/A
Quarter Ending
March 31, Dec 31, Sept. 30, June 30, March 31,
SELECTED RATIOS 2016 2015 2015 2015 2015
Return on average
assets (annualized) 1.73% 1.79% 1.83% 1.80% 1.71%
Return on average
equity (annualized) 13.19% 14.09% 14.24% 14.38% 14.06%
Return on average
equity (excluding
unrealized gain on
investments) 14.01% 14.84% 14.68% 14.77% 14.47%
Average shareholders'
equity to average
assets 13.06% 12.72% 12.84% 12.48% 12.15%
Yield on earning assets
(tax equivalent) 4.32% 4.23% 4.34% 4.28% 4.04%
Effective Cost of Funds 0.24% 0.20% 0.19% 0.19% 0.20%
Net interest margin
(tax equivalent) 4.08% 4.03% 4.15% 4.09% 3.84%
Efficiency ratio (tax
equivalent) 38.4% 36.2% 37.0% 36.8% 39.1%
End of period book
value per common share $ 25.77 $ 25.07 $ 24.18 $ 23.07 $ 22.34
End of period book
value (excluding
unrealized gain on
investments) $ 24.27 $ 23.89 $ 23.01 $ 22.67 $ 21.84
End of period common
shares outstanding (in
000's) 1,120 1,120 1,122 1,121 1,121
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
3 Months Ending
March 31, 2016 March 31, 2015
Tax Tax
Equiv- Equiv-
YIELD Average alent Average alent
ANALYSIS Balance Interest Yield Yield Balance Interest Yield Yield
Interest
Earning
Assets:
Short term
investment $ 16,414 28 0.70% 0.70%$ 20,885 34 0.65% 0.65%
FRB Stock 370 7 7.57% 7.57% 369 6 5.92% 5.92%
Taxable
securities 308 0 0.00% 0.00% 555 0 0.00% 0.00%
Tax Free
securities 75,740 475 2.59% 3.92% 69,855 416 2.38% 3.43%
Loans 122,069 1,533 5.05% 5.05% 111,088 1,406 5.06% 5.06%
Total
Interest
Earning
Assets 214,901 2,043 3.80% 4.32% 202,752 1,862 3.93% 4.04%
Noninterest
Earning
Assets:
Cash and due
from banks 4,201 3,501
Other assets 2,778 2,725
Allowance for
loan losses (1,618) (1,476)
Total
Noninterest
Earning
Assets 5,361 4,750
Total Assets $220,262 $207,502
Interest
Bearing
Liabilities:
Transaction
and Money
Market
accounts 102,850 80 0.31% 0.31% 100,720 70 0.28% 0.28%
Certificates
and other
time
deposits 23,737 46 0.79% 0.79% 22,147 28 0.51% 0.51%
Other
borrowings 355 0 0.30% 0.30% 429 0 0.25% 0.25%
Total
Interest
Bearing
Liabilities 126,942 126 0.40% 0.40% 123,296 98 0.32% 0.32%
Noninterest
Bearing
Liabilities
Demand
deposits 63,433 58,296
Other
liabilities 1,129 707
Shareholders'
Equity 28,758 25,203
Total
Liabilities
and
Shareholders
Equity $220,262 $207,502
Net Interest
Income and
Spread 1,917 3.41% 3.92% 1,764 3.61% 3.72%
Net Interest
Margin 3.60% 4.08% 3.48% 3.84%
TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
March 31 March 31
2016 % 2015 %
LOAN PORTFOLIO
Commercial and industrial $ 65,545 54.52% $ 59,432 52.74%
Real estate:
Commercial 22,584 18.79% 22,708 20.15%
Residential 19,607 16.31% 18,857 16.73%
Construction and development 10,867 9.04% 10,464 9.29%
Consumer 1,611 1.34% 1,228 1.09%
Total loans (gross) 120,214 100.00% 112,689 100.00%
Unearned discounts 0 0.00% 0 0.00%
Total loans (net) $120,214 100.00% $112,689 100.00%
March 31 March 31
2016 2015
REGULATORY CAPITAL DATA
Tier 1 Capital $ 27,180 $ 23,929
Total Capital (Tier 1 + Tier 2) $ 28,804 $ 25,406
Total Risk-Adjusted Assets $136,828 $126,155
Tier 1 Risk-Based Capital Ratio 19.86% 18.97%
Total Risk-Based Capital Ratio 21.05% 20.14%
Tier 1 Leverage Ratio 12.34% 11.53%
OTHER DATA
Full Time Equivalent
Employees (FTE's) 16 15
Stock Price Range
(For the Three Months Ended):
High $ 49.00 $ 47.00
Low $ 46.75 $ 42.40
Close $ 47.00 $ 47.00
For information contact:
Richard Burt
Executive Vice President
Trinity Bank
817-763-9966
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