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 Nine Months Ended September 30 % September 30 %EARNINGS SUMMARY 2012 2011 Change 2012 2011 ChangeInterest income 1,526 1,471 3.7% 4,595 4,371 5.1%Interest expense 134 203 -34.0% 446 646 -31.0%Net Interest Income 1,392 1,268 9.8% 4,149 3,725 11.4%Provision for Loan Losses 150 0 N/A 150 0 N/AService charges on deposits 37 35 5.7% 112 101 10.9%Net gain on securities available for sale 153 40 282.5% 170 97 75.3%Other income 56 92 -39.1% 177 232 -23.7%Total Non Interest Income 246 167 47.3% 459 430 6.7%Salaries and benefits expense 342 317 7.9% 982 969 1.3%Occupancy and equipment expense 74 82 -9.8% 223 236 -5.5%Other expense 190 271 -29.9% 682 749 -8.9%Total Non Interest Expense 606 670 -9.6% 1,887 1,954 -3.4%Earnings before income taxes 882 765 15.3% 2,571 2,201 16.8%Provision for income taxes 231 185 24.9% 656 524 25.2%Net Earnings 651 580 12.2% 1,915 1,677 14.2%Basic earnings per share 0.60 0.54 11.1% 1.79 1.57 14.0%Basic weighted average shares outstanding 1,079 1,070 1,071 1,070Diluted earnings per share 0.57 0.51 11.8% 1.69 1.48 14.2%Diluted weighted average shares outstanding 1,137 1,131 1,132 1,131 Average for Quarter Average for Nine Months Ending September 30 Ending September 30 % %BALANCE SHEET SUMMARY 2012 2011 Change 2012 2011 ChangeTotal loans $ 83,792 $ 74,941 11.8% $ 82,691 $ 72,588 13.9%Total short term investments 27,327 21,204 28.9% 20,949 19,727 6.2%Total investment securities 58,929 51,908 13.5% 58,140 53,076 9.5%Earning assets 170,048 148,053 14.9% 161,780 145,391 11.3%Total assets 176,847 154,363 14.6% 168,541 152,810 10.3%Noninterest bearing deposits 35,755 27,706 29.1% 32,695 26,076 25.4%Interest bearing deposits 119,186 107,061 11.3% 114,627 107,902 6.2%Total deposits 154,941 134,767 15.0% 147,322 133,978 10.0%Fed Funds Purchased and Repurchase Agreements 395 411 -3.9% 366 476 -23.1%Shareholders' equity 20,621 18,401 12.1% 20,002 17,692 13.1% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Average for Quarter Ending Sept. 30, June 30, March 31, Dec 31, Sept. 30,BALANCE SHEET SUMMARY 2012 2012 2012 2011 2011Total loans $ 83,792 $ 83,133 $ 81,136 $ 76,426 $ 74,941Total short term investments 27,327 16,955 18,495 26,760 21,204Total investment securities 58,929 58,031 57,451 56,751 51,908Earning assets 170,048 158,119 157,082 159,937 148,053Total assets 176,847 164,933 163,755 166,392 154,363Noninterest bearing deposits 35,755 31,337 29,804 32,552 27,706Interest bearing deposits 119,186 112,538 113,263 113,758 107,061Total deposits 154,941 143,875 143,067 146,310 134,767Fed Funds Purchased and Repurchase Agreements 395 251 450 584 411Shareholders' equity 20,621 19,962 19,416 18,690 18,401 Quarter Ended HISTORICAL EARNINGS Sept. 30, June 30, March 31, Dec 31, Sept. 30, SUMMARY 2012 2012 2012 2011 2011Interest income 1,526 1,554 1,514 1,509 1,471Interest expense 134 151 161 199 203Net Interest Income 1,392 1,403 1,353 1,310 1,268Provision for Loan Losses 150 0 0 0 0Service charges on deposits 37 28 37 37 35Net gain on securities available for sale 153 0 17 18 40Other income 56 72 59 55 92Total Non Interest Income 246 100 113 110 167Salaries and benefits expense 342 309 331 450 317Occupancy and equipment expense 74 76 74 81 82FDIC expense (59) 14 14 45 45Other expense 249 238 223 45 226Total Non Interest Expense 606 637 642 621 670Earnings before income taxes 882 866 824 799 765Provision for income taxes 231 222 203 194 185Net Earnings 651 644 621 605 580 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Ending BalanceHISTORICAL BALANCE Sept. 30, June 30, March 31, Dec 31, Sept. 30, SHEET 2012 2012 2012 2011 2011Total loans $ 84,625 $ 83,510 $ 84,808 $ 81,272 $ 76,180Total short term investments 30,196 16,923 18,681 19,279 27,716Total investment securities 58,166 61,625 56,640 58,540 53,370Total earning assets 172,987 162,058 160,129 159,091 157,266Allowance for loan losses (1,026) (1,371) (1,371) (1,371) (1,371)Premises and equipment 1,322 1,340 1,368 1,378 1,413Other Assets 6,040 6,469 6,706 7,843 6,209Total assets 179,323 168,496 166,832 166,941 163,517Noninterest bearing deposits 36,826 33,721 32,239 34,203 33,733Interest bearing deposits 120,298 113,377 114,268 112,163 109,722Total deposits 157,124 147,098 146,507 146,366 143,455Fed Funds Purchased and Repurchase Agreements 409 294 203 713 398Other Liabilities 910 809 898 792 896Total liabilities 158,443 148,201 147,608 147,871 144,749Shareholders' Equity Actual 19,775 19,244 18,368 18,025 17,667Unrealized Gain - AFS 1,105 1,051 856 1,045 1,100 Total Equity 20,880 20,295 19,224 19,070 18,767 Quarter Ending Sept. 30, June 30, March 31, Dec 31, Sept. 30,NONPERFORMING ASSETS 2012 2012 2012 2011 2011Nonaccrual loans $ 0 $ 528 $ 221 $ 653 $ 735Restructured loans $ 0 $ 0 $ 0 $ 0 $ 0Other real estate & foreclosed assets $ 72 $ 0 $ 0 $ 0 $ 0Accruing loans past due 90 days or more $ 0 $ 0 $ 0 $ 0 $ 0Total nonperforming assets $ 72 $ 528 $ 221 $ 653 $ 735Accruing loans past due 30-89 days $ 0 $ 0 $ 0 $ 0 $ 0Total nonperforming assets as a percentage of loans and foreclosed assets 0.09% 0.63% 0.26% 0.80% 0.96% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) Quarter EndingALLOWANCE FOR Sept. 30, June 30, March 31, Dec 31, Sept. 30,LOAN LOSSES 2012 2012 2012 2011 2011Balance at beginning of period $ 1,371 $ 1,371 $ 1,371 $ 1,371 $ 1,371Loans charged off (499) 0 0 0 0Loan recoveries 4 0 0 0 0Net (charge-offs) recoveries (495) 0 0 0 0Provision for loan losses 150 0 0 0 0Balance at end of period $ 1,026 $ 1,371 $ 1,371 $ 1,371 $ 1,371Allowance for loan losses as a percentage of total loans 1.21% 1.64% 1.62% 1.69% 1.80%Allowance for loan losses as a percentage of nonperforming loans 1425.00% 259.66% 620.36% 209.95% 186.53%Net charge-offs (recoveries) as a percentage of average loans 0.59% N/A N/A N/A N/AProvision for loan losses as a percentage of average loans 0.18% N/A N/A N/A N/A Quarter Ending Sept. 30, June 30, March 31, Dec 31, Sept. 30,SELECTED RATIOS 2012 2012 2012 2011 2011Return on average assets (annualized) 1.47% 1.56% 1.52% 1.45% 1.50%Return on average equity (annualized) 12.63% 12.90% 12.79% 12.95% 12.61%Return on average equity (excluding unrealized gain on investments) 13.35% 13.61% 13.56% 13.62% 13.26%Average shareholders' equity to average assets 11.66% 12.10% 11.86% 11.23% 11.92%Yield on earning assets (tax equivalent) 3.82% 4.19% 4.14% 4.05% 4.26%Cost of interest bearing funds 0.45% 0.54% 0.57% 0.70% 0.76%Net interest margin (tax equivalent) 3.50% 3.81% 3.73% 3.56% 3.72%Efficiency ratio (tax equivalent) 38.20 39.59 40.71 40.55 43.42End of period book value per common share 19.23 18.79 18.20 18.05 17.60End of period book value (excluding unrealized gain on investments) 18.21 17.82 17.39 17.07 16.57End of period common shares outstanding 1,086 1,080 1,056 1,056 1,066 TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) 3 Months Ending September 30, 2012 Tax Average EquivalentYIELD ANALYSIS Balance Interest Yield YieldInterest Earning Assets:Short term investment 27,327 29 0.42% 0.42%Investment securities 20,433 185 3.62% 3.62%Tax Free securities 38,496 224 2.33% 3.35%Loans 83,792 1,088 5.19% 5.19%Total Interest Earning Assets 170,048 1,526 3.59% 3.82%Noninterest Earning Assets:Cash and due from banks 3,460Other assets 4,585Allowance for loan losses (1,246)Total Noninterest Earning Assets 6,799Total Assets $ 176,847Interest Bearing Liabilities:Transaction and Money Market accounts 91,440 85 0.37% 0.37%Certificates and other time deposits 27,746 49 0.71% 0.71%Other borrowings 395 0 N/A N/ATotal Interest Bearing Liabilities 119,581 134 0.45% 0.45%Noninterest Bearing LiabilitiesDemand deposits 35,755Other liabilities 890Shareholders' Equity 20,621Total Liabilities and Shareholders Equity $ 176,847Net Interest Income and Spread 1,392 3.14% 3.37%Net Interest Margin 3.27% 3.50% 3 Months Ending September 30, 2011 Tax Average EquivalentYIELD ANALYSIS Balance Interest Yield YieldInterest Earning Assets:Short term investment 21,204 29 0.55% 0.55%Investment securities 16,973 184 4.34% 4.34%Tax Free securities 34,935 245 2.81% 4.04%Loans 74,941 1,013 5.41% 5.41%Total Interest Earning Assets 148,053 1,471 3.97% 4.26%Noninterest Earning Assets:Cash and due from banks 3,332Other assets 4,349Allowance for loan losses (1,371)Total Noninterest Earning Assets 6,310Total Assets $ 154,363Interest Bearing Liabilities:Transaction and Money Market accounts 78,162 135 0.69% 0.69%Certificates and other time deposits 28,899 68 0.94% 0.94%Other borrowings 411 1 0.49% 0.49%Total Interest Bearing Liabilities 107,472 204 0.76% 0.76%Noninterest Bearing LiabilitiesDemand deposits 27,706Other liabilities 784Shareholders' Equity 18,401Total Liabilities and Shareholders Equity $ 154,363Net Interest Income and Spread 1,268 3.22% 3.50%Net Interest Margin 3.43% 3.72% TRINITY BANK N.A. (Unaudited) (Dollars in thousands, except per share data) September 30 September 30 2012 % 2011 %LOAN PORTFOLIOCommercial and industrial 42,236 49.91% 35,539 46.65%Real estate: Commercial 16,227 19.18% 12,729 16.71% Residential 17,697 20.91% 16,231 21.31% Construction and development 6,127 7.24% 9,858 12.94%Consumer 2,338 2.76% 1,823 2.39%Total loans (gross) 84,625 100.00% 76,180 100.00%Unearned discounts 0 0.00% 0 0.00%Total loans (net) 84,625 100.00% 76,180 100.00% September 30 September 30 2012 2011REGULATORY CAPITAL DATATier 1 Capital $ 19,775 $ 17,667Total Assets $ 176,847 $ 154,021Tier 1 Capital Ratio 11.18% 11.47%Total Capital $ 20,801 $ 18,921Total Risk-Weighted Assets $ 111,236 $ 100,262Total Risk-Based Capital Ratio 18.70% 18.87%OTHER DATAFull Time Equivalent Employees (FTE's) 14 14Stock Price Range(For the Three Months Ended): High $ 30.50 $ 27.00 Low $ 30.00 $ 25.00 Close $ 30.50 $ 26.05
For information contact:
Richard Burt
Executive Vice President
Trinity Bank
817-763-9966
