Trinity Bank Reports 2021 4th Quarter Net Income of $1,592,000 and Full Year Net Income of $5,822,000

YTD Return on Assets 1.47%
YTD Return on Equity 14.25%

FORT WORTH, TX / ACCESSWIRE / January 26, 2022 / Trinity Bank N.A. (OTC PINK:TYBT) today announced operating results for the fourth quarter and the twelve months ending December 31, 2021.

Results of Operation

For the fourth quarter 2021, Trinity Bank, N.A. reported Net Income after Taxes of $1,592,000, an increase of 27.8% over fourth quarter 2020 earnings of $1,246,000. Earnings per diluted common share for the fourth quarter 2021 amounted to $1.41, which represents a 28.2% increase over fourth quarter 2020 results of $1.10 per diluted common share.

For 2021, Net Income after Taxes was $5,822,000, an increase of 23.5% over 2020 results of $4,716,000. Earnings per diluted common share for 2021 were $5.15, an increase of 23.8% over 2020 results of $4.16 per diluted common share.

Chief Executive Officer Matt R. Opitz stated, "2021 was a challenging but rewarding year. We continued to operate in and experience one of the lowest rate environments in history, rising inflation, supply chain issues and uncertainty out of our policy makers in Washington. However, despite these headwinds, Trinity Bank's fourth quarter and full year Net Income were the highest since inception, marking a new record best."

"Furthermore, we were able to increase our Loan Loss Reserve (net of PPP loans) 22.6% to 1.79% as of 12/31/2021. While we have not seen any undue stress in the loan portfolio, we wanted to take the opportunity to increase the margin of safety during these uncertain times."

"I am especially proud of our staff who has continued to adapt, improvise and overcome in order to provide Trinity Bank customers with exceptional service which continues to be the main driver of our performance."

"As we look forward to 2022, the biggest uncertainty we face is the number and timing of the Fed's proposed rate hikes. We've not faced a rising rate environment since 2018. We regularly review the duration and pricing of our major earnings assets - loans, securities and overnight investments in an effort to effectively manage our interest rate risk and generate income no matter the level of interest rates."

"I remain encouraged by the level of positive economic activity in the North Texas market. In the coming year, Trinity Bank will remain focused on establishing and expanding good quality relationships and providing exceptional customer experiences in order to achieve continued organic growth."

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

		Quarter Ended										Twelve Months Ending
		December 31						%				December 31						%
EARNINGS SUMMARY		2021			2020			Change				2021			2020			Change
Interest income		$	3,547		$	3,177			11.6	%		$	14,700		$	12,089			21.6	%
Interest expense			159			129			23.3	%			584			856			-31.8	%
Net Interest Income			3,388			3,048			11.2	%			14,116			11,233			25.7	%
Service charges on deposits			58			61			-4.9	%			230			207			11.1	%
Other income			108			90			20.0	%			414			332			24.7	%
Total Non Interest Income			166			151			9.9	%			644			539			19.5	%
Salaries and benefits expense			1,009			977			3.3	%			4,175			3,784			10.3	%
Occupancy and equipment expense			108			119			-9.2	%			467			467			0.0	%
Other expense			540			362			49.2	%			1,881			1,511			24.5	%
Total Non Interest Expense			1,657			1,458			13.6	%			6,523			5,762			13.2	%
Pretax pre-provision income			1,897			1,741			9.0	%			8,237			6,010			37.1	%
Gain on sale of securities			0			(1	)		N/M				0			(1	)		N/M
Gain on sale of ORE			0			0			N/M				0			18			N/M
Provision for Loan Losses			0			315			N/M				1,390			640			117.2	%
Earnings before income taxes			1,897			1,425			33.1	%			6,847			5,387			27.1	%
Provision for income taxes			305			179			70.4	%			1,025			671			52.8	%
Net Earnings		$	1,592		$	1,246			27.8	%		$	5,822		$	4,716			23.5	%
Basic earnings per share			1.47			1.15			27.8	%			5.37			4.35			23.5	%
Basic weighted average shares			1,083			1,083							1,084			1,085
outstanding
Diluted earnings per share - estimate			1.41			1.10			28.2	%			5.15			4.16			23.9	%
Diluted weighted average shares outstanding			1,129			1,130							1,130			1,132

		Average for Quarter										Average for Twelve Months
		December 31						%				December 31						%
BALANCE SHEET SUMMARY		2021			2020			Change				2021			2020			Change
Total loans		$	236,698		$	188,361			25.7	%		$	219,696		$	173,350			26.7	%
PPP loans		$	11,585		$	51,079			-77.3	%		$	35,708		$	36,153			-1.2	%
Total short term investments			33,497			23,960			39.8	%			25,014			20,682			20.9	%
Total investment securities			128,283			93,094			37.8	%			108,281			94,900			14.1	%
Earning assets			410,063			356,494			15.0	%			388,699			325,085			19.6	%
Total assets			416,766			363,558			14.6	%			394,739			371,207			6.3	%
Noninterest bearing deposits			170,822			130,114			31.3	%			144,112			115,252			25.0	%
Interest bearing deposits			215,287			191,654			12.3	%			206,569			180,380			14.5	%
Total deposits			386,109			321,768			20.0	%			350,681			295,632			18.6	%
Fed Funds Purchased and Repurchase Agreements			0			0			N/M				0			0			N/M
Shareholders' equity		$	43,113		$	38,084			13.2	%		$	40,870		$	37,173			9.9	%

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)

		Average for Quarter Ending
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
BALANCE SHEET SUMMARY		2021				2021				2021				2021				2020
Total loans		$	236,698			$	222,400			$	214,501			$	206,386			$	188,361
Total PPP loans			11,585				27,071				46,772				56,454				51,079
Total short term investments			33,497				26,122				28,242				11,131				23,960
Total investment securities			128,283				113,914				96,153				94,737				93,094
Earning assets			410,063				389,507				385,668				368,708				356,494
Total assets			416,766				395,762				391,571				375,295				363,558
Noninterest bearing deposits			170,822				143,056				136,853				133,541				130,114
Interest bearing deposits			215,287				207,369				211,012				199,047				191,654
Total deposits			386,109				350,425				347,865				332,588				321,768
Fed Funds Purchased and Repurchase Agreements			0				0				0				244				0
Shareholders' equity		$	43,113			$	41,723			$	40,236			$	39,352			$	38,084

		Quarter Ended
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
HISTORICAL EARNINGS SUMMARY		2021				2021				2021				2021				2020
Interest income		$	3,547			$	3,692			$	3,806			$	3,656			$	3,177
Interest expense			159				150				144				131				129
Net Interest Income			3,388				3,542				3,662				3,525				3,048
Service charges on deposits			58				56				58				56				61
Other income			108				111				104				91				90
Total Non Interest Income			166				167				162				147				151
Salaries and benefits expense			1,009				1,127				1,080				959				977
Occupancy and equipment expense			108				121				114				124				119
Other expense			540				430				405				505				362
Total Non Interest Expense			1,657				1,678				1,599				1,588				1,458
Pretax pre-provision income			1,897				2,031				2,225				2,084				1,741
Gain on sale of securities			0				0				0				0				(1	)
Gain on sale of ORE			0				0				0				0				0
Gain on sale of other assets			0				0				0				0				0
Provision for Loan Losses			0				290				550				550				315
Earnings before income taxes			1,897				1,741				1,675				1,534				1,425
Provision for income taxes			305				265				249				206				179
Net Earnings		$	1,592			$	1,476			$	1,426			$	1,328			$	1,246
Diluted earnings per share		$	1.41			$	1.30			$	1.26			$	1.18			$	1.10

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		2021				2021				2021				2021				2020
Total loans		$	240,283			$	228,976			$	215,085			$	213,644			$	205,355
Total PPP loans			9,380				20,911				34,305				56,975				46,852
Total short term investments			41,153				34,818				31,247				10,941				24,993
Total investment securities			137,387				117,844				100,499				93,615				95,244
Total earning assets			428,203				402,549				381,136				375,175				372,444
Allowance for loan losses			(4,306	)			(4,306	)			(4,016	)			(3,466	)			(2,915	)
Premises and equipment			2,118				2,179				2,218				2,221				2,340
Other Assets			5,802				6,803				10,507				7,645				6,237
Total assets			431,817				407,225				389,845				381,575				378,106
Noninterest bearing deposits			167,497				148,238				149,049				135,920				134,692
Interest bearing deposits			218,611				214,162				196,355				202,205				201,120
Total deposits			386,108				362,400				345,404				338,125				335,812
Fed Funds Purchased and Repurchase Agreements			0				0				0				0				0
Other Liabilities			1,181				1,834				1,539				2,181				1,270
Total liabilities			387,289				364,234				346,943				340,306				337,082
Shareholders' Equity Actual			43,113				41,465				40,957				39,352				38,778
Unrealized Gain - AFS			1,415				1,526				1,945				1,917				2,246
Total Equity		$	44,528			$	42,991			$	42,902			$	41,269			$	41,024

		Quarter Ending
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
NONPERFORMING ASSETS		2021				2021				2021				2021				2020
Nonaccrual loans		$	259			$	279			$	297			$	321			$	249
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		$	259			$	279			$	297			$	321			$	249
Accruing loans past due 30-89 days		$	0			$	600			$	0			$	0			$	0
Total nonperforming assets as a percentage
of loans and foreclosed assets			0.11	%			0.12	%			0.12	%			0.13	%			0.10	%

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		2021				2021				2021				2021				2020
Balance at beginning of period		$	4,306			$	4,016			$	3,466			$	2,915			$	2,598
Loans charged off			0				0				0				0				0
Loan recoveries			0				0				0				1				2
Net (charge-offs) recoveries			0				0				0				1				2
Provision for loan losses			0				290				550				550				315
Balance at end of period		$	4,306			$	4,306			$	4,016			$	3,466			$	2,915
Allowance for loan losses
as a percentage of total loans			1.72	%			1.88	%			1.61	%			1.28	%			1.16	%
Allowance for loan losses net of PPP Loans
as a percentage of total loans			1.79	%			1.94	%			1.86	%			1.62	%			1.46	%
Allowance for loan losses
as a percentage of nonperforming assets			1663	%			1543	%			1352	%			1080	%			1171	%
Net charge-offs (recoveries) as a
percentage of average loans			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Provision for loan losses
as a percentage of average loans			0.00	%			0.13	%			0.21	%			0.21	%			0.13	%

		Quarter Ending
		Dec 31,				Sept. 30,				June 30,				March 31,				Dec 31,
SELECTED RATIOS		2021				2021				2021				2021				2020
Return on average assets (annualized)			1.53	%			1.49	%			1.46	%			1.42	%			1.37	%
Return on average equity (annualized)			14.60	%			13.50	%			13.51	%			12.88	%			12.15	%
Return on average equity (excluding unrealized gain on investments)			15.06	%			14.15	%			14.18	%			13.56	%			12.85	%
Average shareholders' equity to average assets			10.34	%			10.54	%			10.28	%			10.49	%			10.66	%
Yield on earning assets (tax equivalent)			3.95	%			3.97	%			4.11	%			4.14	%			3.88	%
Effective Cost of Funds			0.15	%			0.16	%			0.14	%			0.15	%			0.28	%
Net interest margin (tax equivalent)			3.80	%			3.81	%			3.97	%			3.99	%			3.60	%
Efficiency ratio (tax equivalent)			44.5	%			43.3	%			40.5	%			41.4	%			44.8	%
End of period book value per common share		$	41.12			$	39.66			$	39.47			$	38.11			$	37.88
End of period book value (excluding unrealized gain on investments)		$	39.81			$	38.25			$	37.68			$	36.34			$	35.81
End of period common shares outstanding (in 000's)			1,083				1,084				1,087				1,083				1,083

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

		Twelve Months Ending
		December 31, 2021																December 31, 2020
														Tax																Tax
		Average												Equivalent				Average												Equivalent
YIELD ANALYSIS		Balance				Interest				Yield				Yield				Balance				Interest				Yield				Yield
Interest Earning Assets:
Short term investment		$	24,610				44				0.18	%			0.18	%		$	33,836				153				0.45	%			0.45	%
FRB Stock			404				25				6.00	%			6.00	%			394				24				6.00	%			6.00	%
Taxable securities			748				1				0.13	%			0.13	%			505				7				1.39	%			1.39	%
Tax Free securities			107,533				2,503				2.33	%			2.95	%			84,554				2,278				2.69	%			3.41	%
Loans			255,488				12,127				4.75	%			4.75	%			209,503				9,627				4.60	%			4.60	%
Total Interest Earning Assets			388,783				14,700				3.78	%			3.95	%			328,792				12,089				3.68	%			3.88	%
Noninterest Earning Assets:
Cash and due from banks			5,466																5,198
Other assets			4,302																4,473
Allowance for loan losses			(3,812	)															(2,419	)
Total Noninterest Earning Assets			5,956																7,252
Total Assets		$	394,739															$	336,044
Interest Bearing Liabilities:
Transaction and Money Market accounts			158,711				374				0.24	%			0.24	%			138,643				308				0.22	%			0.22	%
Certificates and other time deposits			47,858				210				0.44	%			0.44	%			42,839				548				1.28	%			1.28	%
Other borrowings			0				0				0.00	%			0.00	%			0				0				0.00	%			0.00	%
Total Interest Bearing Liabilities			206,569				584				0.28	%			0.28	%			181,482				856				0.47	%			0.47	%
Noninterest Bearing Liabilities:
Demand deposits			144,112																114,150
Other liabilities			1,341																1,350
Shareholders' Equity			42,717																39,062
Total Liabilities and Shareholders Equity		$	394,739															$	336,044
Net Interest Income and Spread							14,116				3.50	%			3.67	%							11,233				3.21	%			3.41	%
Net Interest Margin											3.63	%			3.80	%											3.42	%			3.60	%

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

		December 31								December 31
		2021				%				2020				%
LOAN PORTFOLIO
Commercial and industrial		$	135,586				54.31	%		$	106,577				42.26	%
PPP Loans			9,380				3.76	%			46,852				18.58	%
Real estate:
Commercial			60,090				24.07	%			61,330				24.32	%
Residential			10,196				4.08	%			20,492				8.13	%
Construction and development			34,123				13.67	%			16,499				6.54	%
Consumer			288				0.12	%			457				0.18	%
Total loans (gross)			249,663				100.00	%			252,207				100.00	%
Unearned discounts			0				0.00	%			0				0.00	%
Total loans (net)		$	249,663				100.00	%		$	252,207				100.00	%

		December 31				December 31
		2021				2020
REGULATORY CAPITAL DATA
Tier 1 Capital		$	43,113			$	38,778
Total Capital (Tier 1 + Tier 2)		$	46,498			$	41,583
Total Risk-Adjusted Assets		$	269,856			$	224,307
Tier 1 Risk-Based Capital Ratio			15.97	%			17.29	%
Total Risk-Based Capital Ratio			17.23	%			18.54	%
Tier 1 Leverage Ratio			10.34	%			10.66	%
OTHER DATA
Full Time Equivalent
Employees (FTE's)			24				23
Stock Price Range
(For the Three Months Ended):
High		$	76.00			$	65.50
Low		$	75.00			$	62.00
Close		$	76.00			$	64.98

SOURCE: Trinity Bank N.A.

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