Trinity Bank Reports: Return on Assets 1.46% Return on Equity 14.18%

FORT WORTH, TX / ACCESSWIRE / August 3, 2021 / Trinity Bank N.A. (OTC Bulletin Board: TYBT) today announced operating results for the three months ending June 30, 2021 and YTD results for the six months ending June 30, 2021.

Results of Operations

Trinity Bank, N.A. reported Net Income after Taxes of $1,426,000 or $1.26 per diluted common share for the second quarter of 2021, compared to $1,130,000 or $1.00 per diluted common share for the second quarter of 2020, an increase of 26%.

For the first six months of 2021, Net Income after Taxes amounted to $2,754,000, an increase of 22% over the first half of 2020 results of $2,254,000. Earnings per diluted common share for the first half of 2021 were $2.44, an increase of 23% over the first half of 2020 results of $1.99 per diluted common share.

Matt R. Opitz, Chief Executive Officer, stated, “I am pleased with the performance Trinity Bank was able to achieve in 2Q. These results represent our most profitable quarter since inception and that is due to the hard work and dedication of our great staff. PPP fee income and core loan growth, excluding PPP loans, were the primary drivers in achieving this above average performance.”

“We have successfully submitted all round one PPP loans for forgiveness and have received 100% forgiveness on all but one loan that has been processed. Subsequently, that loan has been paid off. We are now focused on assisting our customers with the forgiveness of round two loans and have already begun those efforts.”

“We continue to see above average loan demand both from our existing customer base as well as prospective customers who are encountering challenges with their banks. We are well positioned to continue taking advantage of this growth opportunity but, as always, we remain focused on quality over quantity.”

“We are still faced with a great deal of uncertainty and have prepared accordingly, adding significantly to our Loan Loss Reserve this year, despite no material deterioration in our loan portfolio. With our core earnings (excluding PPP impact), strong capital base, asset quality, and efficiency, we remain ready to take advantage of opportunities for continued growth.”

Page 2 – Trinity Bank Second Quarter 2021

Page 3 – Trinity Bank Second Quarter 2021

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.

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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 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	2021		2020		Change		2021		2020		Change

Interest income	$	3,806	$	3,042	25.1	%	$	7,462	$	5,964	25.1	%
Interest expense		144		188	-23.4	%		276		569	-51.5	%
Net Interest Income		3,662		2,854	28.3	%		7,186		5,395	33.2	%

Service charges on deposits		58		39	48.7	%		115		89	29.2	%
Other income		104		79	31.6	%		195		159	22.6	%
Total Non Interest Income		162		118	37.3	%		310		248	25.0	%

Salaries and benefits expense		1,080		1,037	4.1	%		2,039		1,892	7.8	%
Occupancy and equipment expense		114		113	0.9	%		238		228	4.4	%
Other expense		405		412	-1.7	%		910		814	11.8	%
Total Non Interest Expense		1,599		1,562	2.4	%		3,187		2,934	8.6	%

Pretax pre-provision income		2,225		1,410	57.8	%		4,309		2,709	59.1	%

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		550		125	340.0	%		1,100		125	780.0	%

Earnings before income taxes		1,675		1,285	30.4	%		3,209		2,584	24.2	%
Provision for income taxes		249		155	N/M			455		330	37.9	%

Net Earnings	$	1,426	$	1,130	26.2	%	$	2,754	$	2,254	22.2	%

Basic earnings per share		1.32		1.04	26.5	%		2.55		2.07	23.1	%
Basic weighted average shares		1,084		1,086				1,081		1,087
outstanding

Diluted earnings per share – estimate		1.26		1.00	26.0	%		2.44		1.99	22.8	%
Diluted weighted average shares outstanding		1,130		1,133				1,127		1,134

	Average for Quarter						Average for Six Months
	June 30				%		June 30				%
BALANCE SHEET SUMMARY	2021		2020		Change		2021		2020		Change

Total loans	$	261,273	$	212,258	23.1	%	$	262,025	$	190,812	37.3	%
Total short term investments		28,242		41,211	-31.5	%		19,931		40,061	-50.2	%
Total investment securities		96,153		81,496	18.0	%		95,251		77,753	22.5	%

Earning assets		385,668		334,965	15.1	%		377,207		308,626	22.2	%

Total assets		391,571		342,369	14.4	%		383,478		316,082	21.3	%

Noninterest bearing deposits		136,853		122,409	11.8	%		142,334		105,435	35.0	%
Interest bearing deposits		211,012		180,558	16.9	%		197,935		171,387	15.5	%

Total deposits		347,865		302,967	14.8	%		340,269		276,822	22.9	%

Fed Funds Purchased and Repurchase Agreements		0		0	N/M			122		0	N/M

Shareholders’ equity	$	40,236	$	36,611	9.9	%	$	39,713	$	36,495	8.8	%

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	2021		2021		2020		2020		2020

Total loans	$	261,273	$	262,840	$	239,440	$	216,454	$	212,337
Total short term investments		28,242		11,131		23,960		32,176		41,211
Total investment securities		96,153		94,737		93,094		92,272		81,496

Earning assets		385,668		368,708		356,494		340,902		335,044

Total assets		391,571		375,295		363,558		342,058		342,369

Noninterest bearing deposits		136,853		133,541		130,114		117,655		122,409
Interest bearing deposits		211,012		199,047		191,654		189,053		180,558

Total deposits		347,865		332,588		321,768		306,708		302,967

Fed Funds Purchased and Repurchase Agreements		0		244		0		0		0

Shareholders’ equity	$	40,236	$	39,352	$	38,084	$	37,602	$	36,611

	Quarter Ended
	June 30,		March 31,		Dec 31,		Sept. 30,		June 30,
HISTORICAL EARNINGS SUMMARY	2021		2021		2020		2020		2020

Interest income	$	3,806	$	3,656	$	3,177	$	2,949	$	3,042
Interest expense		144		131		129		158		188
Net Interest Income		3,662		3,525		3,048		2,791		2,854

Service charges on deposits		58		56		61		56		39
Other income		104		91		90		86		79
Total Non Interest Income		162		147		151		142		118

Salaries and benefits expense		1,080		959		977		915		1,037
Occupancy and equipment expense		114		124		119		94		113
Other expense		405		505		362		364		412
Total Non Interest Expense		1,599		1,588		1,458		1,373		1,562

Pretax pre-provision income		2,225		2,084		1,741		1,560		1,410

Gain on sale of securities		0		0		(1		0		0
Gain on sale of foreclosed assets		0		0		0		18		0
Gain on sale of other assets		0		0		0		0		0

Provision for Loan Losses		550		550		315		200		125

Earnings before income taxes		1,675		1,534		1,425		1,378		1,285
Provision for income taxes		249		206		179		162		155

Net Earnings	$	1,426	$	1,328	$	1,246	$	1,216	$	1,130

Diluted earnings per share	$	1.26	$	1.18	$	1.10	$	1.08	$	1.00

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	2021		2021		2020		2020		2020

Total loans	$	249,390	$	270,619	$	252,207	$	228,473	$	216,848
Total short term investments		31,247		10,941		24,993		16,429		38,648
Total investment securities		100,499		93,615		95,244		90,606		90,658

Total earning assets		381,136		375,175		372,444		335,508		346,154

Allowance for loan losses		(4,016		(3,466		(2,915		(2,598		(2,396	)
Premises and equipment		2,218		2,221		2,340		2,400		2,455
Other Assets		10,507		7,645		6,237		6,748		5,673

Total assets		389,845		381,575		378,106		342,058		351,886

Noninterest bearing deposits		149,049		135,920		134,692		114,284		118,933
Interest bearing deposits		196,355		202,205		201,120		186,096		192,159

Total deposits		345,404		338,125		335,812		300,380		311,092

Fed Funds Purchased and Repurchase Agreements		0		0		0		0		0
Other Liabilities		1,539		2,181		1,270		2,029		1,501

Total liabilities		346,943		340,306		337,082		302,409		312,593

Shareholders’ Equity Actual		40,957		39,352		38,778		37,463		37,089
Unrealized Gain – AFS		1,945		1,917		2,246		2,186		2,203
Total Equity	$	42,902	$	41,269	$	41,024	$	39,649	$	39,292

	Quarter Ending
	June 30,			March 31,			Dec 31,			Sept. 30,			June 30,
NONPERFORMING ASSETS	2021			2021			2020			2020			2020

Nonaccrual loans	$	297		$	321		$	249		$	266		$	388
Restructured loans	$	0		$	0		$	0		$	0		$	0
Other real estate & foreclosed assets	$	0		$	0		$	0		$	0		$	320
Accruing loans past due 90 days or more	$	0		$	0		$	0		$	0		$	0
Total nonperforming assets	$	297		$	321		$	249		$	266		$	708

Accruing loans past due 30-89 days	$	0		$	0		$	0		$	0		$	0

Total nonperforming assets as a percentage
of loans and foreclosed assets		0.12	%		0.12	%		0.10	%		0.12	%		0.33	%

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	2021			2021			2020			2020			2020

Balance at beginning of period	$	3,466		$	2,915		$	2,598		$	2,396		$	2,269
Loans charged off		0			0			0			0			0
Loan recoveries		0			1			2			2			2
Net (charge-offs) recoveries		0			1			2			2			2
Provision for loan losses		550			550			315			200			125
Balance at end of period	$	4,016		$	3,466		$	2,915		$	2,598		$	2,396

Allowance for loan losses		1.61	%		1.28	%		1.16	%		1.14	%		1.10	%
as a percentage of total loans
Allowance for loan losses net of PPP Loans		1.86	%		1.62	%		1.46	%		1.48	%		1.36	%
as a percentage of total loans
Allowance for loan losses		1352	%		1080	%		1171	%		977	%		338	%
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		0.21	%		0.21	%		0.13	%		0.09	%		0.06	%
as a percentage of average loans

	Quarter Ending
	June 30,			March 31,			Dec 31,			Sept. 30,			June 30,
SELECTED RATIOS	2021			2021			2020			2020			2020

Return on average assets (annualized)		1.46	%		1.42	%		1.37	%		1.42	%		1.32	%

Return on average equity (annualized)		13.51	%		12.88	%		12.15	%		12.19	%		11.88	%

Return on average equity (excluding unrealized gain on investments)		14.18	%		13.56	%		12.85	%		12.94	%		12.34	%

Average shareholders’ equity to average assets		10.28	%		10.49	%		10.48	%		10.99	%		10.69	%

Yield on earning assets (tax equivalent)		4.11	%		4.14	%		3.88	%		3.65	%		3.81	%

Effective Cost of Funds		0.14	%		0.15	%		0.28	%		0.19	%		0.22	%

Net interest margin (tax equivalent)		3.97	%		3.99	%		3.60	%		3.46	%		3.59	%

Efficiency ratio (tax equivalent)		40.5	%		41.4	%		44.8	%		50.4	%		51.6	%

End of period book value per common share	$	39.47		$	38.11		$	37.88		$	36.61		$	36.18

End of period book value (excluding unrealized gain on investments)	$	37.68		$	36.34		$	35.81		$	34.59		$	34.15

End of period common shares outstanding (in 000’s)		1,087			1,083			1,083			1,083			1,086

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

	Quarter Ending
	June 30,2021							June 30,2020
						Tax							Tax
	Average					Equivalent		Average					Equivalent
YIELD ANALYSIS	Balance		Interest	Yield		Yield		Balance		Interest	Yield		Yield
Interest Earning Assets:
Short term investment	$	27,838	11	0.16	%	0.16	%	$	41,211	13	0.13	%	0.13	%
FRB Stock		404	6	6.00	%	6.00	%		395	6	6.00	%	6.00	%
Taxable securities		2,198	0	0.00	%	0.00	%		0	0	0.00	%	0.00	%
Tax Free securities		93,955	605	2.58	%	3.26	%		81,101	564	2.78	%	3.52	%
Loans		261,273	3,184	4.87	%	4.87	%		212,258	2,459	4.63	%	4.63	%

Total Interest Earning Assets		385,668	3,806	3.95	%	4.11	%		334,965	3,042	3.63	%	3.81	%

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

	June 30				June 30
	2021		%		2020		%
LOAN PORTFOLIO

Commercial and industrial	$	147,373	59.09	%	$	140,483	64.78	%
Real estate:
Commercial		61,051	24.48	%		31,017	14.30	%
Residential		17,149	6.88	%		23,043	10.63	%
Construction and development		23,476	9.41	%		21,875	10.09	%
Consumer		341	0.14	%		430	0.20	%

Total loans (gross)		249,390	100.00	%		216,848	100.00	%

Unearned discounts		0	0.00	%		0	0.00	%

Total loans (net)	$	249,390	100.00	%	$	216,848	100.00	%

	June 30			June 30
	2020			2020
REGULATORY CAPITAL DATA
Tier 1 Capital	$	40,955		$	37,089
Total Capital (Tier 1 + Tier 2)	$	42,900		$	39,370
Total Risk-Adjusted Assets	$	236,963		$	182,279
Tier 1 Risk-Based Capital Ratio		17.28	%		20.35	%
Total Risk-Based Capital Ratio		18.54	%		21.60	%
Tier 1 Leverage Ratio		10.54	%		10.83	%

OTHER DATA
Full Time Equivalent
Employees (FTE’s)		23			23

Stock Price Range
(For the Three Months Ended):
High	$	75.00		$	64.98
Low	$	61.31		$	58.90
Close	$	75.00		$	60.50