Trinity Bank Reports: Return On Assets 1.54% Return on Equity 14.91%

Trinity Bank Reports: Return On Assets 1.54% Return on Equity 14.91%Press Release | 08/01/2022

FORT WORTH, TEXAS / ACCESSWIRE / August 1, 2022 / Trinity Bank N.A. (OTC PINK:TYBT) today announced operating results for the three months ending June 30, 2022 and YTD results for the six months ending June 30, 2022.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $1,680,000 or $1.47 per diluted common share for the first quarter of 2022, compared to $1,426,000 or $1.26 per diluted common share for the second quarter of 2021, an increase of 16.7%.

For the first six months of 2022, Net Income after Taxes amounted to $3,290,000, an increase of 19.5% over the first half of 2021 results of $2,754,000. Earnings per diluted common share for the first half of 2022 were $2.90, an increase of 18.9% over the first half of 2021 results of $2.44 per diluted common share

Jeffrey M. Harp, Chairman, stated, "We are pleased to announce that 2Q 2022 performance produced the best quarterly profit for Trinity Bank since inception in 2003. Loans and Deposits continue to grow. Return on Assets and Return on Equity remain well above both national and local peer groups. Our borrowers continue to perform well in an unsettled economic environment."

"After many years of maintaining artificially low interest rates, the Federal Reserve has embarked on a program to rapidly raise interest rates to combat the inflation that we all see on a daily basis. We have had four prime rate increases in four months (from 3.25% to 5.50%). While this helps our interest income, we also must increase deposit rates in line with our philosophy to pay as much as we can instead of as little as we can get by with. For example, we are offering one-year CD's at a 2.40% rate - well above the local market."

"In my 51 years in this business in this market, I can only say that we are in unprecedented times. Our goal remains to ADAPT, IMPROVISE, and OVERCOME. We strive to provide exceptional service to existing customers and attract new relationships with quality people. We intend to continue to maintain a strong capital base with above-average profitability and efficiency as we prepare for whatever the future holds."

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										Six Months Ending
		June 30						%				June 30						%
EARNINGS SUMMARY		2022			2021			Change				2022			2021			Change
Interest income		$	3,763		$	3,806			-1.1	%		$	7,363		$	7,462			-1.3	%
Interest expense			248			144			72.2	%			414			276			50.0	%
Net Interest Income			3,515			3,662			-4.0	%			6,949			7,186			-3.3	%
Service charges on deposits			62			58			6.9	%			123			115			7.0	%
Other income			126			104			21.2	%			230			195			17.9	%
Total Non Interest Income			188			162			16.0	%			353			310			13.9	%
Salaries and benefits expense			1,096			1,080			1.5	%			2,095			2,039			2.7	%
Occupancy and equipment expense			111			114			-2.6	%			221			238			-7.1	%
Other expense			536			405			32.3	%			1,136			910			24.8	%
Total Non Interest Expense			1,743			1,599			9.0	%			3,452			3,187			8.3	%
Pretax pre-provision income			1,960			2,225			-11.9	%			3,850			4,309			-10.7	%
Gain on sale of securities			0			0			N/M				0			0			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			0			550			-100.0	%			0			1,100			-100.0	%
Earnings before income taxes			1,960			1,675			17.0	%			3,850			3,209			20.0	%
Provision for income taxes			280			249			N/M				560			455			23.1	%
Net Earnings		$	1,680		$	1,426			17.8	%		$	3,290		$	2,754			19.5	%
Basic earnings per share			1.54			1.32			16.8	%			3.02			2.55			18.5	%
Basic weighted average shares			1,093			1,084							1,090			1,081
outstanding
Diluted earnings per share - estimate			1.47			1.26			16.7	%			2.90			2.44			18.9	%
Diluted weighted average shares outstanding			1,139			1,130							1,136			1,127

		Average for Quarter										Average for Six Months
		June 30						%				June 30						%
BALANCE SHEET SUMMARY		2022			2021			Change				2022			2021			Change
Total loans		$	255,951		$	261,273			-2.0	%		$	249,955		$	262,025			-4.6	%
Total short term investments			30,993			28,242			9.7	%			29,696			19,931			49.0	%
Total investment securities			142,743			96,153			48.5	%			142,526			95,251			49.6	%
Earning assets			429,687			385,668			11.4	%			422,177			377,207			11.9	%
Total assets			437,237			391,571			11.7	%			429,441			383,478			12.0	%
Noninterest bearing deposits			164,965			136,853			20.5	%			159,530			142,334			12.1	%
Interest bearing deposits			229,986			211,012			9.0	%			225,947			197,935			14.2	%
Total deposits			394,951			347,865			13.5	%			385,477			340,269			13.3	%
Fed Funds Purchased and Repurchase Agreements			0			0			N/M				0			122			N/M
Shareholders' equity		$	45,059		$	40,236			12.0	%		$	44,475		$	39,713			12.0	%

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		2022			2022			2021			2021			2021
Total loans		$	255,951		$	240,831		$	236,698		$	222,400		$	214,501
Total PPP loans			0		$	3,062			11,585			27,071			46,772
Total short term investments			30,993			28,809			33,497			26,122			28,242
Total investment securities			142,743			142,717			128,283			113,914			96,153
Earning assets			429,687			415,419			410,063			389,507			385,668
Total assets			437,237			421,711			416,766			395,762			391,571
Noninterest bearing deposits			164,965			154,029			170,822			143,056			136,853
Interest bearing deposits			229,986			221,868			215,287			207,369			211,012
Total deposits			394,951			375,897			386,109			350,425			347,865
Fed Funds Purchased and Repurchase Agreements			0			0			0			0			0
Shareholders' equity		$	45,059		$	44,456		$	43,113		$	41,723		$	40,236

		Quarter Ended
		June 30,			March 31,			Dec 31,			Sept. 30,			June 30,
HISTORICAL EARNINGS SUMMARY		2022			2022			2021			2021			2021
Interest income less PPP		$	3,763		$	3,321		$	3,302		$	3,162		$	3,021
PPP interest and fees			0			278			245			530			785
Interest expense			248			165			159			150			144
Net Interest Income			3,515			3,434			3,388			3,542			3,662
Service charges on deposits			62			59			58			56			58
Other income			126			106			108			111			104
Total Non Interest Income			188			165			166			167			162
Salaries and benefits expense			1,096			999			1,009			1,127			1,080
Occupancy and equipment expense			111			110			108			121			114
Other expense			536			600			540			430			405
Total Non Interest Expense			1,743			1,709			1,657			1,678			1,599
Pretax pre-provision income			1,960			1,890			1,897			2,031			2,225
Gain on sale of securities			0			0			0			0			0
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			0			290			550
Earnings before income taxes			1,960			1,890			1,897			1,741			1,675
Provision for income taxes			280			280			305			265			249
Net Earnings		$	1,680		$	1,610		$	1,592		$	1,476		$	1,426
Diluted earnings per share		$	1.47		$	1.42		$	1.41		$	1.30		$	1.26

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		2022				2022				2021				2021				2021
Total loans		$	267,163			$	247,358			$	240,283			$	228,976			$	215,085
Total PPP loans			0				-				9,380				20,911				34,305
Total short term investments			19,635				39,776				41,153				34,818				31,247
Total investment securities			142,834				138,793				137,387				117,844				100,499
Total earning assets			429,632				425,927				428,203				402,549				381,136
Allowance for loan losses			(4,314	)			(4,314	)			(4,306	)			(4,306	)			(4,016	)
Premises and equipment			2,019				2,065				2,118				2,179				2,218
Other Assets			11,260				10,557				5,802				6,803				10,507
Total assets			438,597				434,235				431,817				407,225				389,845
Noninterest bearing deposits			170,661				158,072				167,497				148,238				149,049
Interest bearing deposits			226,141				233,142				218,611				214,162				196,355
Total deposits			396,802				391,214				386,108				362,400				345,404
Fed Funds Purchased and Repurchase Agreements			0				0				0				0				0
Other Liabilities			1,474				2,033				1,181				1,834				1,539
Total liabilities			398,276				393,247				387,289				364,234				346,943
Shareholders' Equity Actual			45,830				44,093				43,113				41,465				40,957
Unrealized Gain/Loss - AFS			(5,509	)			(3,105	)			1,415				1,526				1,945
Total Equity		$	40,321			$	40,988			$	44,528			$	42,991			$	42,902

		Quarter Ending
		June 30,				March 31,				Dec 31,				Sept. 30,					June 30,
NONPERFORMING ASSETS		2022				2022				2021				2021					2021
Nonaccrual loans		$	211			$	239			$	259			$	279			$	297
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		$	211			$	239			$	259			$	279			$	297
Accruing loans past due 30-89 days		$	0			$	0			$	0			$	600			$	0
Total nonperforming assets as a percentage
of loans and foreclosed assets			0.08	%			0.10	%			0.11	%			0.12	%			0.12	%

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		2022				2022				2021				2021				2021
Balance at beginning of period		$	4,314			$	4,306			$	4,306			$	4,016			$	3,466
Loans charged off			0				0				0				0				0
Loan recoveries			0				8				0				0				0
Net (charge-offs) recoveries			0				8				0				0				0
Provision for loan losses			0				0				0				290				550
Balance at end of period		$	4,314			$	4,314			$	4,306			$	4,306			$	4,016
Allowance for loan losses			1.61	%			1.74	%			1.72	%			1.88	%			1.61	%
as a percentage of total loans
Allowance for loan losses net of PPP Loans			1.61	%			1.74	%			1.79	%			1.94	%			1.86	%
as a percentage of total loans
Allowance for loan losses			2045	%			1805	%			1663	%			1543	%			1352	%
as a percentage of nonperforming assets
Net charge-offs (recoveries) as a			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
percentage of average loans
Provision for loan losses			0.00	%			0.00	%			0.00	%			0.13	%			0.21	%
as a percentage of average loans

		Quarter Ending
		June 30,				March 31,				Dec 31,				Sept. 30,				June 30,
SELECTED RATIOS		2022				2022				2021				2021				2021
Return on average assets (annualized)			1.54	%			1.53	%			1.53	%			1.49	%			1.46	%
Return on average equity (annualized)			15.92	%			15.71	%			14.60	%			13.50	%			13.51	%
Return on average equity (excluding unrealized gain on investments)			14.91	%			14.61	%			15.06	%			14.15	%			14.18	%
Average shareholders' equity to average assets			10.31	%			10.54	%			10.34	%			10.54	%			10.28	%
Yield on earning assets (tax equivalent)			3.68	%			3.64	%			3.95	%			3.97	%			4.11	%
Effective Cost of Funds			0.23	%			0.16	%			0.15	%			0.16	%			0.14	%
Net interest margin (tax equivalent)			3.45	%			3.48	%			3.80	%			3.81	%			3.97	%
Efficiency ratio (tax equivalent)			44.9	%			45.2	%			44.5	%			43.3	%			40.5	%
End of period book value per common share		$	36.89			$	37.50			$	41.12			$	39.66			$	39.47
End of period book value (excluding unrealized gain on investments)		$	41.93			$	40.34			$	39.81			$	38.25			$	37.68
End of period common shares outstanding (in 000's)			1,093				1,093				1,083				1,084				1,087

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

		Quarter Ending
		June 30,2022																June 30,2021
		Average												Tax Equivalent				Average												Tax Equivalent
YIELD ANALYSIS		Balance				Interest				Yield				Yield				Balance				Interest				Yield				Yield
Interest Earning Assets:
Short term investment		$	30,574				58				0.76	%			0.76	%		$	27,838				11				0.16	%			0.16	%
FRB Stock			419				6				6.00	%			6.00	%			404				6				6.00	%			6.00	%
Taxable securities			1,297				0				0.00	%			0.00	%			2,198				0				0.00	%			0.00	%
Tax Free securities			141,446				734				2.08	%			2.63	%			93,955				605				2.58	%			3.26	%
Loans			255,951				2,965				4.63	%			4.63	%			261,273				3,184				4.87	%			4.87	%
Total Interest Earning Assets			429,687				3,763				3.50	%			3.68	%			385,668				3,806				3.95	%			4.11	%
Noninterest Earning Assets:
Cash and due from banks			6,061																5,510
Other assets			5,803																4,095
Allowance for loan losses			(4,314	)															(3,702	)
Total Noninterest Earning Assets			7,550																5,903
Total Assets		$	437,237															$	391,571
Interest Bearing Liabilities:
Transaction and Money Market accounts			185,133				186				0.40	%			0.40	%			159,448				90				0.23	%			0.23	%
Certificates and other time deposits			32,091				41				0.51	%			0.51	%			41,564				41				0.39	%			0.39	%
Other borrowings			12,762				21				0.66	%			0.66	%			10,000				13				0.52	%			0.52	%
Total Interest Bearing Liabilities			229,986				248				0.43	%			0.43	%			211,012				144				0.27	%			0.27	%
Noninterest Bearing Liabilities:
Demand deposits			164,965																136,853
Other liabilities			1,607																1,484
Shareholders' Equity			40,679																42,222
Total Liabilities and Shareholders Equity		$	437,237															$	391,571
Net Interest Income and Spread							3,515				3.07	%			3.25	%							3,662				3.67	%			3.84	%
Net Interest Margin											3.27	%			3.45	%											3.80	%			3.97	%

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

		June 30									June 30
		2022				%					2021			%
LOAN PORTFOLIO
Commercial and industrial		$	158,935				59.49	%		$	147,373				59.09	%
Real estate:
Commercial			64,560				24.17	%			61,051				24.48	%
Residential			18,396				6.89	%			17,149				6.88	%
Construction and development			25,001				9.36	%			23,476				9.41	%
Consumer			271				0.10	%			341				0.14	%
Total loans (gross)			267,163				100.00	%			249,390				100.00	%
Unearned discounts			0				0.00	%			0				0.00	%
Total loans (net)		$	267,163				100.00	%		$	249,390				100.00	%

		June 30				June 30
		2022				2021
REGULATORY CAPITAL DATA
Tier 1 Capital		$	45,830			$	40,955
Total Capital (Tier 1 + Tier 2)		$	49,565			$	42,900
Total Risk-Adjusted Assets		$	298,259			$	236,963
Tier 1 Risk-Based Capital Ratio			15.37	%			17.28	%
Total Risk-Based Capital Ratio			16.62	%			18.54	%
Tier 1 Leverage Ratio			10.48	%			10.54	%
OTHER DATA
Full Time Equivalent
Employees (FTE's)			24				23
Stock Price Range
(For the Three Months Ended):
High		$	88.75			$	75.00
Low		$	80.01			$	61.31
Close		$	88.75			$	75.00

SOURCE: Trinity Bank N.A.

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