Trinity Bank : 2016 2nd Quarter Net Income Up 4.8%; 2nd Quarter Earnings per Share Up 6.2%

FORT WORTH, TX--(Marketwired - Jul 26, 2016) - Trinity Bank N.A. (OTC: TYBT) today announced operating results for the second quarter and the six months ending June 30, 2016.

Results of Operation

For the second quarter 2016, Trinity Bank, N.A. reported Net Income after Taxes of $966,000, an increase of 4.8% over second quarter 2015 earnings of $922,000. Earnings per diluted common share for the second quarter 2016 amounted to $0.86, an increase of 6.2% over second quarter 2015 results of $0.81 per diluted common share.

For the first six months of 2016, Net Income after Taxes was $1,918,000, an increase of 6.1% over the first half of 2015 results of $1,807,000. Earnings per diluted common share for the first half of 2016 were $1.70, an increase of 6.2% over the first half of 2015 results of $1.60 per diluted common share.

President Jeffrey M. Harp stated, "Second quarter results for Trinity Bank represent the second best quarter (4Q 2015 was slightly better) since inception. However, the percentage increase (+4.8%) in Net Income over the 2Q 2015 results is below our previous history of double digit increases. This is due to:

1. Average loan volume dropped about 5% from 4Q 2015 to the current quarter. We haven't lost any major relationships. A number of customers have reduced their debt to the bank. 

2. Interest expense has increased substantially as we have raised deposit rates since October 2015. Our philosophy is to pay as much as we can instead of as little as we can get by with.

3. Personnel expense is up as we add staff in preparation to move into our newly expanded facility.

In spite of these headwinds, Trinity Bank is still performing at a very high level.

		Trinity			Peer
Return on Assets		1.76	%		.91	%
Return on Equity		13.97	%		8.03	%

The remainder of 2016 as well as 2017 will be challenging as the Texas economy adjusts to the current level of oil and gas prices, but we remain committed to producing exceptional results.

Actual for Quarter
(in 000's)		3 Months				3 Months
		06/30/2016				06/30/2015				%
Net Interest Income		$	1,882			$	1,857			1.3	%
Non-Interest Income			124				129			(3.9	%)
Non-Interest Expense			(863	)			(805	)		7.2	%
Pretax Preprovision Income			1,143				1,181			(3.2	%)
Gains on Sale of Securities and Other Assets			86				12			N/M
Loan Loss Provision			-				-			N/M
Pretax Income			1,229				1,193			3.0	%
Income Tax			(263	)			(271	)		(3.0	%)
Net Income		$	966			$	922			4.8	%
Diluted Weighted Average Shares			1,129				1,132
Earnings Per Share			.86				.81			6.2	%
Actual for 6 months
(in 000's)		6 Months				6 Months
		06/30/2016				06/30/2015				%
Net Interest Income		$	3,800			$	3,620			5.0	%
Non-Interest Income			269				259			3.9	%
Non-Interest Expense			(1,750	)			(1,619	)		8.1	%
Pretax Preprovision Income			2,319				2,260			2.6	%
Gains on Sale of Securities and Other Assets			134				12			N/M
Gains on Sale of Foreclosed Assets			0				70			N/M
Loan Loss Provision			0				0			N/M
Pretax Income			2,453				2,342			4.7	%
Income Tax			(535	)			(535	)
Net Income		$	1,918			$	1,807			6.1	%
Diluted Weighted Average Shares			1,131				1,132
Earnings Per Share			1.70				1.60			6.2	%

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									Six Months Ending
		June 30						%			June 30						%
EARNINGS SUMMARY		2016			2015			Change			2016			2015			Change
Interest income		$	2,016		$	1,953		3.2	%		$	4,060		$	3,814		6.4	%
Interest expense			134			96		39.6	%		$	260		$	194		34.0	%
Net Interest Income			1,882			1,857		1.3	%			3,800			3,620		5.0	%
Service charges on deposits			37			40		-7.5	%		$	76		$	82		-7.3	%
Other income			87			89		-2.2	%		$	193		$	177		9.0	%
Total Non Interest Income			124			129		-3.9	%			269			259		3.9	%
Salaries and benefits expense			520			454		14.5	%		$	1,029		$	883		16.5	%
Occupancy and equipment expense			76			65		16.9	%		$	153		$	126		21.4	%
Other expense			267			286		-6.6	%		$	568		$	610		-6.9	%
Total Non Interest Expense			863			805		7.2	%			1,750			1,619		8.1	%
Pretax pre-provision income			1,143			1,181		-3.2	%			2,319			2,260		2.6	%
Gain on sale of securities			67			12		N/M			$	93		$	12		N/M
Gain on sale of foreclosed assets			0			0		N/M			$	0		$	70		N/M
Gain on sale of other assets			19			0		N/M			$	41		$	0		N/M
Provision for Loan Losses			0			0		N/M				0			0		N/M
Earnings before income taxes			1,229			1,193		3.0	%			2,453			2,342		4.7	%
Provision for income taxes			263			271		-3.0	%		$	535		$	535		0.0	%
Net Earnings		$	966		$	922		4.8	%		$	1,918		$	1,807		6.1	%
Basic earnings per share			0.86			0.82		4.9	%			1.71			1.61		6.2	%
Basic weighted average shares			1,118			1,121						1,120			1,121
outstanding
Diluted earnings per share			0.86			0.81		6.2	%			1.70			1.60		6.2	%
Diluted weighted average shares outstanding			1,129			1,132						1,131			1,132
		Average for Quarter									Average for Six Months
		June 30						%			June 30						%
BALANCE SHEET SUMMARY		2016			2015			Change			2016			2015			Change
Total loans		$	118,028		$	116,614		1.2	%		$	120,049		$	113,866		5.4	%
Total short term investments			16,766			11,618		44.3	%			16,742			16,226		3.2	%
Total investment securities			80,062			72,378		10.6	%			78,055			71,584		9.0	%
Earning assets			214,856			200,610		7.1	%			214,846			201,676		6.5	%
Total assets			219,895			205,394		7.1	%			220,078			206,442		6.6	%
Noninterest bearing deposits			58,456			58,601		-0.2	%			62,967			58,451		7.7	%
Interest bearing deposits			130,204			119,895		8.6	%			126,368			121,371		4.1	%
Total deposits			188,660			178,496		5.7	%			189,335			179,822		5.3	%
Fed Funds Purchased and Repurchase Agreements			358			429		-16.6	%			357			429		-16.8	%
Shareholders' equity		$	29,460		$	25,638		14.9	%		$	29,109		$	25,422		14.5	%

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		2016			2016			2015			2015			2015
Total loans		$	118,028		$	122,069		$	124,316		$	119,107		$	116,614
Total short term investments			16,766			16,414			16,894			13,055			11,618
Total investment securities			80,062			76,418			71,663			70,557			72,378
Earning assets			214,856			214,901			212,873			202,719			200,610
Total assets			219,895			220,262			217,961			207,560			205,394
Noninterest bearing deposits			58,456			63,433			67,719			60,995			57,617
Interest bearing deposits			130,204			126,587			120,853			118,640			120,879
Total deposits			188,660			190,020			188,572			179,635			178,496
Fed Funds Purchased and Repurchase Agreements			358			355			361			429			429
Shareholders' equity		$	29,460		$	28,758		$	27,733		$	26,653		$	25,638
		Quarter Ended
		June 30,			March 31,			Dec 31,			Sept. 30,			June 30,
HISTORICAL EARNINGS SUMMARY		2016			2016			2015			2015			2015
Interest income		$	2,016		$	2,043		$	2,070		$	2,007		$	1,953
Interest expense			134			126			107			97			96
Net Interest Income			1,882			1,917			1,963			1,910			1,857
Service charges on deposits			37			39			50			48			46
Other income			87			104			87			82			83
Total Non Interest Income			124			143			137			130			129
Salaries and benefits expense			520			509			627			514			454
Occupancy and equipment expense			76			78			68			69			65
Other expense			267			298			149			256			286
Total Non Interest Expense			863			885			844			839			805
Pretax pre-provision income			1,143			1,175			1,256			1,201			1,181
Gain on sale of securities			67			27			18			31			12
Gain on sale of foreclosed assets			0			0			0			0			0
Gain on sale of other assets			19			22			21			0			0
Provision for Loan Losses			0			0			76			0			0
Earnings before income taxes			1,229			1,224			1,219			1,232			1,193
Provision for income taxes			263			272			242			283			271
Net Earnings		$	966		$	952		$	977		$	949		$	922
Diluted earnings per share		$	0.86		$	0.84		$	0.86		$	0.84		$	0.81

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		2016				2016				2015				2015				2015
Total loans		$	117,616			$	120,214			$	127,871			$	118,146			$	120,706
Total short term investments			13,269				21,082				20,095				18,533				8,158
Total investment securities			79,974				78,737				72,616				70,542				70,523
Total earning assets			210,859				220,033				220,582				207,221				199,387
Allowance for loan losses			(1,633	)			(1,624	)			(1,613	)			(1,528	)			(1,518	)
Premises and equipment			1,425				1,444				1,397				1,304				1,286
Other Assets			5,353				5,189				8,008				5,381				4,700
Total assets			216,004				225,042				228,374				212,378				203,855
Noninterest bearing deposits			59,753				63,151				73,078				60,749				59,449
Interest bearing deposits			124,839				130,828				125,772				122,491				117,515
Total deposits			184,592				193,979				198,850				183,240				176,964
Fed Funds Purchased and Repurchase Agreements			361				355				355				429				429
Other Liabilities			1,235				1,842				1,095				1,582				604
Total liabilities			186,188				196,176				200,300				185,251				177,997
Shareholders' Equity Actual			28,097				27,180				26,755				25,818				25,408
Unrealized Gain - AFS			1,719				1,686				1,319				1,309				450
Total Equity		$	29,816			$	28,866			$	28,074			$	27,127			$	25,858
		Quarter Ending
		June 30,				March 31,				Dec 31,				Sept. 30,				June 30,
NONPERFORMING ASSETS		2016				2016				2015				2015				2015
Nonaccrual loans		$	1,349			$	1,383			$	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		$	1,349			$	1,383			$	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	%			1.15	%			0.00	%			0.00	%			0.00	%

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		2016				2016				2015				2015				2015
Balance at beginning of period		$	1,624			$	1,613			$	1,528			$	1,518			$	1,477
Loans charged off			0				0				0				0				0
Loan recoveries			9				11				9				10				41
Net (charge-offs) recoveries			9				11				9				10				41
Provision for loan losses			0				0				76				0				0
Balance at end of period		$	1,633			$	1,624			$	1,613			$	1,528			$	1,518
Allowance for loan losses as a percentage of total loans			1.39	%			1.35	%			1.26	%			1.29	%			1.26	%
Allowance for loan losses as a percentage of nonperforming assets			121	%			117	%			N/A				N/A				N/A
Net charge-offs (recoveries) as a percentage of average loans			-0.01	%			-0.01	%			-0.01	%			-0.01	%			-0.04	%
Provision for loan losses as a percentage of average loans			N/A				N/A				0.06	%			N/A				N/A
		Quarter Ending
		June 30,				March 31,				Dec 31,				Sept. 30,				June 30,
SELECTED RATIOS		2016				2016				2015				2015				2015
Return on average assets (annualized)			1.76	%			1.73	%			1.79	%			1.83	%			1.80	%
Return on average equity (annualized)			13.12	%			13.19	%			14.09	%			14.24	%			14.38	%
Return on average equity (excluding unrealized gain on investments)			13.97	%			14.01	%			14.84	%			14.68	%			14.77	%
Average shareholders' equity to average assets			13.40	%			13.06	%			12.72	%			12.84	%			12.48	%
Yield on earning assets (tax equivalent)			4.16	%			4.32	%			4.23	%			4.34	%			4.28	%
Effective Cost of Funds			0.24	%			0.24	%			0.20	%			0.19	%			0.19	%
Net interest margin (tax equivalent)			3.92	%			4.08	%			4.03	%			4.15	%			4.09	%
Efficiency ratio (tax equivalent)			38.8	%			38.4	%			36.2	%			37.0	%			36.8	%
End of period book value per common share		$	26.67			$	25.77			$	25.07			$	24.18			$	23.07
End of period book value (excluding unrealized gain on investments)		$	25.13			$	24.27			$	23.89			$	23.01			$	22.67
End of period common shares outstanding (in 000's)			1,118				1,120				1,120				1,122				1,121

TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
		Quarter Ending
		June 30, 2016										June 30, 2015
YIELD ANALYSIS		Average Balance			Interest		Yield		Tax Equivalent Yield			Average Balance			Interest		Yield		Tax Equivalent Yield
Interest Earning Assets:
Short term investment		$	16,394		32		0.78	%	0.78	%		$	11,618		17		0.59	%	0.59	%
Investment securities			372		6		6.00	%	6.00	%			370		6		6.00	%	6.00	%
Tax Free securities			80,062		501		2.50	%	3.61	%			72,008		443		2.46	%	3.55	%
Loans			118,028		1,477		5.01	%	5.01	%			116,614		1,487		5.10	%	5.10	%
Total Interest Earning Assets			214,856		2,016		3.75	%	4.16	%			200,610		1,953		3.89	%	4.28	%
Noninterest Earning Assets:
Cash and due from banks			3,822										3,445
Other assets			2,845										2,819
Allowance for loan losses			(1,628	)									(1,480	)
Total Noninterest Earning Assets			5,039										4,784
Total Assets		$	219,895									$	205,394
Interest Bearing Liabilities:
Transaction and Money Market accounts			105,624		87		0.33	%	0.33	%			98,955		66		0.27	%	0.27	%
Certificates and other time deposits			24,580		47		0.76	%	0.76	%			21,924		30		0.55	%	0.55	%
Other borrowings			358		0		0.30	%	0.30	%			429		0		0.25	%	0.25	%
Total Interest Bearing Liabilities			130,562		134		0.41	%	0.41	%			121,308		96		0.32	%	0.32	%
Noninterest Bearing Liabilities
Demand deposits			58,456										57,617
Other liabilities			1,417										831
Shareholders' Equity			29,460										25,638
Total Liabilities and Shareholders Equity		$	219,895									$	205,394
Net Interest Income and Spread					1,882		3.34	%	3.75	%					1,857		3.58	%	3.97	%
Net Interest Margin							3.50	%	3.92	%							3.70	%	4.09	%

TRINITY BANK N.A.
(Unaudited)
(Dollars in thousands, except per share data)
			June 30							June 30
			2016				%			2015				%
LOAN PORTFOLIO
Commercial and industrial			$	61,818			52.56	%		$	64,360			53.32	%
Real estate:
	Commercial			22,880			19.45	%			22,427			18.58	%
	Residential			19,278			16.39	%			19,936			16.52	%
	Construction and development			12,105			10.29	%			12,737			10.55	%
Consumer				1,535			1.31	%			1,246			1.03	%
Total loans (gross)				117,616			100.00	%			120,706			100.00	%
Unearned discounts				0			0.00	%			0			0.00	%
Total loans (net)			$	117,616			100.00	%		$	120,706			100.00	%
			June 30							June 30
			2016							2015
REGULATORY CAPITAL DATA
Tier 1 Capital			$	28,098						$	25,413
Total Capital (Tier 1 + Tier 2)			$	29,731						$	26,931
Total Risk-Adjusted Assets			$	133,311						$	131,732
Tier 1 Risk-Based Capital Ratio				21.08	%						19.29	%
Total Risk-Based Capital Ratio				22.03	%						20.44	%
Tier 1 Leverage Ratio				12.78	%						12.37	%
OTHER DATA
Full Time Equivalent
Employees (FTE's)				16							16
Stock Price Range
(For the Three Months Ended):
	High		$	50.00						$	70.00
	Low		$	45.06						$	47.00
	Close		$	49.50						$	61.00