Trinity Bank Reports Results for 2022 Net Income up 24.9% to $7,269,000 Earnings per Share up 24.0% to $6.39 Return on Assets 1.64% Return on Equity 15.86%

Rhea-AI Summary

Trinity Bank N.A. (OTC PINK:TYBT) reported strong operating results for Q4 and the full year 2022. For Q4, net income rose to $2.113 million, a 32.7% increase from $1.592 million in Q4 2021. Earnings per diluted share were $1.86, up 31.7% from the previous year. For the full year 2022, net income was $7.269 million, marking a 24.9% increase over 2021's $5.822 million. EPS for 2022 reached $6.39, up 24% from $5.15. CEO Barney Wiley acknowledged the challenges posed by rising interest rates but highlighted the bank's flexibility and strong asset mix as key strengths, deeming 2022 a record year.

Positive

• Net income increased 32.7% in Q4 2022 to $2.113 million.
• Earnings per diluted share rose 31.7% in Q4 2022 to $1.86.
• Full year net income grew 24.9% to $7.269 million.
• Earnings per diluted share for 2022 reached $6.39, a 24% increase.

Negative

• Rising interest rates have created tighter margins and liquidity pressures.

FORT WORTH, TX / ACCESSWIRE / January 31, 2023 / Trinity Bank N.A. (OTC PINK:TYBT) today announced operating results for the fourth quarter and the twelve months ending December 31, 2022.

Results of Operation

For the fourth quarter 2022, Trinity Bank, N.A. reported Net Income after Taxes of $2,113,000, an increase of 32.7% over fourth quarter 2021 earnings of $1,592,00. Earnings per diluted common share for the fourth quarter 2022 amounted to $1.86, an increase of 31.7% over fourth quarter 2021 results of $1.41 per diluted common share.

For 2022, Net Income after Taxes was $7,269,000, an increase of 24.9% over 2021 results of $5,822,000. Earnings per diluted common share for 2022 were $6.39, an increase of 24.0% over 2021 results of $5.15 per diluted common share.

2022 saw the Federal Reserve raise the Fed Funds Rate seven times starting in March of 2022 to combat inflation. The rates went from basically zero to 4.5% in December. These rate changes in turn have impacted a variety of interest rates, including savings rates, bond rates, and lending rates (both short and long-term). Everyone has been affected.

"For banks in particular, these rate hikes have created tightened margins and liquidity pressures. Trinity's management is cognizant of these pressures and has been pro-active in both our account rates and lending rates, as well as our bond strategy. We are fortunate and confident in our asset mix between cash, bonds, and loans, especially with regards to our ratio between fixed and floating rate loans," said President Barney Wiley.

In spite of the historical rise in rates experienced in 2022, and the unknowns of 2023, below are some positive results experienced from 2021 to 2022.

As Chairman Jeff Harp has quipped in jest on multiple occasions, "I have been in banking in the same town for 52 years and the events of the past three years has shown me that the first 49 years of lessons are worthless as these times are unprecedented. But I will tell you that I would not trade places with any other bank."

President Barney C. Wiley stated, "2022 was an outstanding year for Trinity Bank, albeit an interesting year. 2022 was our best year since inception which is a testament to our dedicated staff, quality customer base and outstanding shareholders. In times of uncertainty, we have shown the ability to stay flexible, pro-active, and able to provide for the needs of our customers and shareholders and thankful to be in the market we serve."

ACTUAL FOR QUARTER
		3 Months				3 Months
EARNINGS SUMMARY		12/31/2022				12/31/2021			%
Net Interest Income		$	4,151			$	3,388			22.5
Total Non-Interest Income			172				166			3.6
Total Non-Interest Expense			(1,646	)			(1,657	)		(0.7	)
Pretax pre-provision income			2,677				1,897			41.1
Gain on sale of securities			(164	)			0			N/M
Loan Loss Provision			0				0			N/M
Pretax Income			2,513				1,897			32.5
Income Tax			(400	)			(305	)		31.1
Net Earnings		$	2,113			$	1,592			32.7
Earnings Per Share		$	1.86			$	1.41			31.9
Diluted weighted average shares			1,138				1,129
ACTUAL FOR 12 MONTHS
		12 Months				12 Months
EARNINGS SUMMARY		12/31/2022				12/31/2021			%
Net Interest Income		$	15,081			$	14,116			6.8	%
Total Non-Interest Income			696				644			8.1	%
Total Non-Interest Expense			(7,046	)			(6,523	)		8.0	%
Pretax pre-provision income			8,731				8,237			6.0	%
Gain on sale of securities and ORE			-182				0			N/M
Loan Loss Provision			(0	)			(1,390	)		N/M
Pretax Income			8,549				6,847			24.9	%
Income Tax			(1,280	)			(1,025	)		24.9	%
Net Earnings		$	7,269			$	5,822			24.9	%
Earnings Per Share			6.39				5.15			24.0	%
Diluted weighted average shares			1,138				1,130

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 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												Twelve Months Ending
		December 31								%				December 31								%
EARNINGS SUMMARY		2022				2021				Change				2022				2021				Change
Interest income		$	5,173			$	3,547				45.8	%		$	17,124			$	14,700				16.5	%
Interest expense			1,022				159				542.8	%			2,043				584				249.8	%
Net Interest Income			4,151				3,388				22.5	%			15,081				14,116				6.8	%
Service charges on deposits			59				58				1.7	%			239				230				3.9	%
Other income			113				108				4.6	%			457				414				10.4	%
Total Non Interest Income			172				166				3.6	%			696				644				8.1	%
Salaries and benefits expense			1,141				1,009				13.1	%			4,525				4,175				8.4	%
Occupancy and equipment expense			106				108				-1.9	%			490				467				4.9	%
Other expense			399				540				-26.1	%			2,031				1,881				8.0	%
Total Non Interest Expense			1,646				1,657				-0.7	%			7,046				6,523				8.0	%
Pretax pre-provision income			2,677				1,897				41.1	%			8,731				8,237				6.0	%
Gain on sale of securities			(164	)			0				N/M				(182	)			0				N/M
Provision for Loan Losses			0				0				N/M				0				1,390				N/M
Earnings before income taxes			2,513				1,897				32.5	%			8,549				6,847				24.9	%
Provision for income taxes			400				305				31.1	%			1,280				1,025				24.9	%
Net Earnings		$	2,113			$	1,592				32.7	%		$	7,269			$	5,822				24.9	%
Basic earnings per share			1.93				1.47				31.6	%			6.66				5.37				23.9	%
Basic weighted average shares			1,092				1,083								1,092				1,084
outstanding
Diluted earnings per share - estimate			1.86				1.41				31.7	%			6.39				5.15				24.0	%
Diluted weighted average shares outstanding			1,138				1,129								1,138				1,130

		Average for Quarter												Average for Twelve Months
		December 31								%				December 31								%
BALANCE SHEET SUMMARY		2022				2021				Change				2022				2021				Change
Total loans		$	268,801			$	236,698				13.6	%		$	258,005			$	219,696				17.4	%
PPP loans			0				11,585				-100.0	%			755				35,708				-97.9	%
Total short term investments			39,759				33,497				18.7	%			37,686				25,014				50.7	%
Total investment securities			137,624				128,283				7.3	%			141,597				108,281				30.8	%
Earning assets			446,184				410,063				8.8	%			438,043				388,699				12.7	%
Total assets			455,683				416,766				9.3	%			445,739				394,739				12.9	%
Noninterest bearing deposits			167,630				170,822				-1.9	%			166,329				144,112				15.4	%
Interest bearing deposits			246,989				215,287				14.7	%			236,254				206,569				14.4	%
Total deposits			414,618				386,109				7.4	%			402,583				350,681				14.8	%
Fed Funds Purchased and Repurchase Agreements			0				0				N/M				0				0				N/M
Shareholders' equity		$	47,713			$	42,241				13.0	%		$	45,846			$	40,870				12.2	%

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

		Average for Quarter Ending
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
BALANCE SHEET SUMMARY		2022				2022				2022				2022				2021
Total loans		$	268,801			$	266,041			$	255,951			$	240,831			$	236,698
Total PPP loans			0				0				0				3,062				11,585
Total short term investments			39,759				50,091				30,993				28,809				33,497
Total investment securities			137,624				143,746				142,743				142,717				128,283
Earning assets			446,184				459,878				429,687				415,419				410,063
Total assets			455,683				467,859				437,237				421,711				416,766
Noninterest bearing deposits			167,630				177,293				164,965				154,029				170,822
Interest bearing deposits			246,989				246,907				229,986				221,868				215,287
Total deposits			414,618				424,200				394,951				375,897				386,109
Fed Funds Purchased and Repurchase Agreements			0				0				0				0				0
Shareholders' equity		$	47,713			$	46,676			$	45,059			$	44,456			$	43,113

		Quarter Ended
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
HISTORICAL EARNINGS SUMMARY		2022				2022				2022				2022				2021
Interest income less PPP		$	5,173			$	4,588			$	3,763			$	3,321			$	3,302
PPP interest and fees			0				0				0				278				245
Interest expense			1,022				607				248				165				159
Net Interest Income			4,151				3,981				3,515				3,434				3,388
Service charges on deposits			59				58				62				59				58
Other income			113				114				126				106				108
Total Non Interest Income			172				172				188				165				166
Salaries and benefits expense			1,141				1,290				1,096				999				1,009
Occupancy and equipment expense			106				163				111				110				108
Other expense			399				495				536				600				540
Total Non Interest Expense			1,646				1,948				1,743				1,709				1,657
Pretax pre-provision income			2,677				2,205				1,960				1,890				1,897
Gain on sale of securities			(164	)			(19	)			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				0				0
Earnings before income taxes			2,513				2,186				1,960				1,890				1,897
Provision for income taxes			400				320				280				280				305
Net Earnings		$	2,113			$	1,866			$	1,680			$	1,610			$	1,592
Diluted earnings per share		$	1.86			$	1.64			$	1.47			$	1.42			$	1.41

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

		Ending Balance
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
HISTORICAL BALANCE SHEET		2022				2022				2022				2022				2021
Total loans		$	281,857			$	265,811			$	267,163			$	247,358			$	240,283
Total PPP loans			0				-				-				-				9,380
Total short term investments			19,893				58,084				19,635				39,776				41,153
Total investment securities			134,628				136,114				142,834				138,793				137,387
Total earning assets			436,378				460,009				429,632				425,927				428,203
Allowance for loan losses			(4,323	)			(4,314	)			(4,314	)			(4,314	)			(4,306	)
Premises and equipment			2,196				1,976				2,019				2,065				2,118
Other Assets			11,030				11,957				11,260				10,557				5,802
Total assets			445,281				469,628				438,597				434,235				431,817
Noninterest bearing deposits			159,568				181,436				170,661				158,072				167,497
Interest bearing deposits			240,883				248,475				226,141				233,142				218,611
Total deposits			400,451				429,911				396,802				391,214				386,108
Fed Funds Purchased and Repurchase Agreements			0				0				0				0				0
Other Liabilities			1,779				2,794				1,474				2,033				1,181
Total liabilities			402,230				432,705				398,276				393,247				387,289
Shareholders' Equity Actual			48,871				46,712				45,830				44,093				43,113
Unrealized Gain/Loss - AFS			(5,820	)			(9,789	)			(5,509	)			(3,105	)			1,415
Total Equity		$	43,051			$	36,923			$	40,321			$	40,988			$	44,528

		Quarter Ending
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
NONPERFORMING ASSETS		2022				2022				2022				2022				2021
Nonaccrual loans		$	171			$	195			$	211			$	239			$	259
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		$	171			$	195			$	211			$	239			$	259
Accruing loans past due 30-89 days		$	3			$	0			$	0			$	0			$	0
Total nonperforming assets as a percentage
of loans and foreclosed assets			0.06	%			0.07	%			0.08	%			0.10	%			0.11	%

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

		Quarter Ending
ALLOWANCE FOR		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
LOAN LOSSES		2022				2022				2022				2022				2021
Balance at beginning of period		$	4,314			$	4,314			$	4,314			$	4,306			$	4,306
Loans charged off			0				0				0				0				0
Loan recoveries			9				0				0				8				0
Net (charge-offs) recoveries			9				0				0				8				0
Provision for loan losses			0				0				0				0				0
Balance at end of period		$	4,323			$	4,314			$	4,314			$	4,314			$	4,306
Allowance for loan losses			1.53	%			1.62	%			1.61	%			1.74	%			1.72	%
as a percentage of total loans
Allowance for loan losses net of PPP Loans			1.53	%			1.62	%			1.61	%			1.74	%			1.79	%
as a percentage of total loans
Allowance for loan losses			2528	%			2212	%			2045	%			1805	%			1663	%
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	%			0.00	%			0.00	%
as a percentage of average loans

		Quarter Ending
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
SELECTED RATIOS		2022				2022				2022				2022				2021
Return on average assets (annualized)			1.85	%			1.60	%			1.54	%			1.53	%			1.53	%
Return on average equity (annualized)			19.63	%			17.68	%			15.92	%			15.71	%			14.60	%
Return on average equity (excluding unrealized gain on investments)			17.71	%			15.99	%			14.91	%			14.61	%			15.06	%
Average shareholders' equity to average assets			10.47	%			9.98	%			10.31	%			10.54	%			10.34	%
Yield on earning assets (tax equivalent)			4.84	%			4.17	%			3.68	%			3.64	%			3.95	%
Effective Cost of Funds			0.92	%			0.53	%			0.23	%			0.16	%			0.15	%
Net interest margin (tax equivalent)			3.92	%			3.64	%			3.45	%			3.48	%			3.80	%
Efficiency ratio (tax equivalent)			36.2	%			44.7	%			44.9	%			45.2	%			44.5	%
End of period book value per common share		$	39.42			$	33.78			$	36.89			$	37.50			$	41.12
End of period book value (excluding unrealized gain on investments)		$	44.75			$	42.74			$	41.93			$	40.34			$	39.81
End of period common shares outstanding (in 000's)			1,092				1,093				1,093				1,093				1,083

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

		Twelve Months Ending
		December 31, 2022																December 31, 2021
														Tax																Tax
		Average												Equivalent				Average												Equivalent
YIELD ANALYSIS		Balance				Interest				Yield				Yield				Balance				Interest				Yield				Yield
Interest Earning Assets:
Short term investment		$	37,266				735				1.97	%			1.97	%		$	24,610				44				0.18	%			0.18	%
FRB Stock			420				25				6.00	%			6.00	%			404				25				6.00	%			6.00	%
Taxable securities			959				1				0.00	%			0.00	%			748				1				0.13	%			0.13	%
Tax Free securities			140,638				3,039				2.16	%			2.74	%			107,533				2,503				2.33	%			2.95	%
Loans			258,760				13,324				5.15	%			5.15	%			255,488				12,127				4.75	%			4.75	%
Total Interest Earning Assets			438,043				17,124				3.91	%			4.09	%			388,783				14,700				3.78	%			3.95	%
Noninterest Earning Assets:
Cash and due from banks			5,973																5,466
Other assets			6,036																4,302
Allowance for loan losses			(4,313	)															(3,812	)
Total Noninterest Earning Assets			7,696																5,956
Total Assets		$	445,739															$	394,739
Interest Bearing Liabilities:
Transaction and Money Market accounts			181,865				1,391				0.76	%			0.76	%			158,711				374				0.24	%			0.24	%
Certificates and other time deposits			37,701				465				1.23	%			1.23	%			39,598				198				0.50	%			0.50	%
Other borrowings			16,689				187				1.12	%			1.12	%			8,260				12				0.15	%			0.15	%
Total Interest Bearing Liabilities			236,255				2,043				0.86	%			0.86	%			206,569				584				0.28	%			0.28	%
Noninterest Bearing Liabilities:
Demand deposits			166,328																144,112
Other liabilities			1,703																1,341
Shareholders' Equity			41,453																42,717
Total Liabilities and Shareholders Equity		$	445,739															$	394,739
Net Interest Income and Spread							15,081				3.04	%			3.23	%							14,116				3.50	%			3.67	%
Net Interest Margin											3.44	%			3.63	%											3.63	%			3.80	%

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

		December 31								December 31
		2022				%				2021				%
LOAN PORTFOLIO
Commercial and industrial		$	161,254				57.13	%		$	135,586				54.31	%
PPP Loans		$	0				0.00	%			9,380				3.76	%
Real estate:
Commercial			78,197				27.71	%			60,090				24.07	%
Residential			17,419				6.17	%			10,196				4.08	%
Construction and development			25,083				8.89	%			34,123				13.67	%
Consumer			283				0.10	%			288				0.12	%
Total loans (gross)			282,236				100.00	%			249,663				100.00	%
Unearned discounts			0				0.00	%			0				0.00	%
Total loans (net)		$	282,236				100.00	%		$	249,663				100.00	%

		December 31				December 31
		2022				2021
REGULATORY CAPITAL DATA
Tier 1 Capital		$	43,051			$	43,113
Total Capital (Tier 1 + Tier 2)		$	48,871			$	46,498
Total Risk-Adjusted Assets		$	315,529			$	269,856
Tier 1 Risk-Based Capital Ratio			15.49	%			15.97	%
Total Risk-Based Capital Ratio			16.74	%			17.23	%
Tier 1 Leverage Ratio			8.74	%			10.34	%
OTHER DATA
Full Time Equivalent
Employees (FTE's)			25				24
Stock Price Range
(For the Three Months Ended):
High		$	90.00			$	76.00
Low		$	76.00			$	75.00
Close		$	88.50			$	76.00

SOURCE: Trinity Bank

View source version on accesswire.com:
https://www.accesswire.com/737511/Trinity-Bank-Reports-Results-for-2022-Net-Income-up-249-to-7269000-Earnings-per-Share-up-240-to-639-Return-on-Assets-164-Return-on-Equity-1586

FAQ

What were Trinity Bank's net earnings for Q4 2022?

Trinity Bank's net earnings for Q4 2022 were $2.113 million.

How much did Trinity Bank's earnings per share increase in 2022?

Trinity Bank's earnings per diluted share increased by 24% in 2022, reaching $6.39.

What challenges did Trinity Bank face in 2022?

Trinity Bank faced tightened margins and liquidity pressures due to rising interest rates.

How did Trinity Bank perform in 2022 compared to 2021?

In 2022, Trinity Bank reported a 24.9% increase in net income compared to 2021.