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Trinity Bank Reports Results for 2023 - Net Income Up 10.3% to $ 8,015,000

RETURN ON ASSETS 1.75%

RETURN ON EQUITY 15.82%

FORT WORTH, TX / ACCESSWIRE / January 30, 2024 / Trinity Bank N.A. (OTC PINK:TYBT) today announced operating results for the fourth quarter and the twelve months ending December 31, 2023.

Results of Operation

For the fourth quarter 2023, Trinity Bank, N.A. reported Net Income after Taxes of $2,135,000, an increase of 1.0% over fourth quarter 2022 earnings of $2,113,00. Earnings per diluted common share for the fourth quarter 2023 amounted to $1.88, an increase of 1.1% over fourth quarter 2022 results of $1.86 per diluted common share.

For 2023, Net Income after Taxes was $8,015,000, an increase of 10.3% over 2022 results of $7,269,000. Earnings per diluted common share for 2023 were $7.06, an increase of 10.5% over 2022 results of $6.39 per diluted common share.

CEO Matt R. Opitz stated, "We are pleased with both our fourth quarter and full year 2023 results. The fourth quarter was the most profitable quarter and 2023 was the most profitable year in history for Trinity Bank."

"Loan demand remained strong in the fourth quarter which lead to 5.5% year-over-year loan growth. Our customers remain cautiously optimistic, and backlogs remain robust. We also took advantage of the opportunity to add several new, quality relationships in 2023 as many other banks were forced to drastically reduce lending efforts due to a lack of liquidity."

"Despite the bank failures we saw in March which led depositors throughout the US to pay much closer attention to where they were keeping their money, Trinity Bank was able to report 7.9% deposit growth in 2023. This is a testament to our conservative management practices."

Page 2 - Trinity Bank fourth quarter 2023 earnings

Mr. Opitz Further stated, "2023 was an outstanding year for Trinity Bank. These above average results are attributable to our dedicated staff, quality customer base and exceptional shareholders. Trinity Bank is prepared for what lies ahead and will continue to look for growth opportunities in the coming year with strong capital, great liquidity and a commitment to do the right thing for the right reasons."

Page 4 - Trinity Bank fourth quarter 2023 earnings

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
2023 2022 Change 2023 2022 Change
Interest income
$ 6,818 $ 5,173 31.8 % $ 24,060 $ 17,124 40.5 %
Interest expense
2,738 1,022 167.9 % 8,611 2,043 321.5 %
Net Interest Income
4,080 4,151 -1.7 % 15,449 15,081 2.4 %

Service charges on deposits
55 59 -6.8 % 247 239 3.3 %
Other income
117 113 3.5 % 471 457 3.1 %
Total Non Interest Income
172 172 0.0 % 718 696 3.2 %

Salaries and benefits expense
1,314 1,141 15.2 % 4,699 4,525 3.8 %
Occupancy and equipment expense
109 106 2.8 % 454 490 -7.3 %
Other expense
509 399 27.6 % 1,887 2,031 -7.1 %
Total Non Interest Expense
1,932 1,646 17.4 % 7,040 7,046 -0.1 %

Pretax pre-provision income
2,320 2,677 -13.3 % 9,127 8,731 4.5 %

Gain on sale of securities
(36 ) (164 ) N/M (40 ) (182 ) N/M
Gain on sale of assets
58 0 N/M 58 0 N/M

Provision for Loan Losses
0 0 N/M 0 0 N/M

Earnings before income taxes
2,342 2,513 -6.8 % 9,145 8,549 7.0 %
Provision for income taxes
207 400 -48.3 % 1,130 1,280 -11.7 %

Net Earnings
$ 2,135 $ 2,113 1.0 % $ 8,015 $ 7,269 10.3 %

Basic earnings per share
1.96 1.93 1.4 % 7.36 6.66 10.6 %
Basic weighted average shares
1,088 1,092 1,089 1,092
outstanding

Diluted earnings per share - estimate
1.88 1.86 1.4 % 7.06 6.39 10.6 %
Diluted weighted average shares outstanding
1,134 1,138 1,135 1,138



Average for Quarter Average for Twelve Months
December 31 % December 31 %
BALANCE SHEET SUMMARY
2023 2022 Change 2023 2022 Change
Total loans
$ 297,994 $ 268,801 10.9 % $ 287,127 $ 258,005 11.3 %
Total short term investments
43,172 39,759 8.6 % 26,075 37,686 -30.8 %
Total investment securities
132,516 137,624 -3.7 % 134,211 141,597 -5.2 %

Earning assets
473,682 446,184 6.2 % 447,413 438,043 2.1 %

Total assets
481,952 455,683 5.8 % 455,520 445,739 2.2 %

Noninterest bearing deposits
138,527 167,630 -17.4 % 140,837 166,329 -15.3 %
Interest bearing deposits
297,030 246,989 20.3 % 267,392 236,254 13.2 %

Total deposits
435,557 414,618 5.1 % 408,229 402,583 1.4 %

Fed Funds Purchased and Repurchase Agreements
261 0 N/M 351 0 N/M

Shareholders' equity
$ 52,263 $ 47,713 9.5 % $ 50,653 $ 45,846 10.5 %

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
2023 2023 2023 2023 2022
Total loans
$ 297,994 $ 294,238 $ 283,827 $ 272,089 $ 268,908
Total short term investments
43,172 22,128 16,087 22,733 39,334
Total investment securities
132,516 133,687 134,403 136,288 138,049

Earning assets
473,682 450,053 434,317 431,110 446,291

Total assets
481,952 458,461 441,447 439,725 455,683

Noninterest bearing deposits
138,527 137,385 140,734 146,909 167,630
Interest bearing deposits
297,030 271,946 253,624 246,285 246,989

Total deposits
435,557 409,331 394,358 393,194 414,618

Fed Funds Purchased and Repurchase Agreements
261 1,076 55 0 0

Shareholders' equity
$ 52,263 $ 51,234 $ 49,444 $ 48,537 $ 47,713

Quarter Ended
Dec 31, Sept. 30, June 30, March 31, Dec 31,
HISTORICAL EARNINGS SUMMARY 2023 2023 2023 2023 2022
Interest income
$ 6,818 $ 6,258 $ 5,719 $ 5,264 $ 5,173
Interest expense
2,738 2,370 1,934 1,572 1,022
Net Interest Income
4,080 3,888 3,785 3,692 4,151

Service charges on deposits
55 69 64 61 59
Other income
117 114 120 115 113
Total Non Interest Income
172 183 184 176 172

Salaries and benefits expense
1,314 1,171 1,146 1,068 1,141
Occupancy and equipment expense
109 118 116 108 106
Other expense
509 500 441 433 399
Total Non Interest Expense
1,932 1,789 1,703 1,609 1,646

Pretax pre-provision income
2,320 2,282 2,266 2,259 2,677

Gain on sale of securities
(36 ) (1 ) (3 ) (1 ) (164 )
Gain on sale of other assets
58 0 0 0 0

Provision for Loan Losses
0 0 0 0 0

Earnings before income taxes
2,342 2,281 2,263 2,258 2,513
Provision for income taxes
207 313 290 320 400

Net Earnings
$ 2,135 $ 1,968 $ 1,973 $ 1,938 $ 2,113

Diluted earnings per share
$ 1.88 $ 1.73 $ 1.73 $ 1.70 $ 1.86

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
2023 2023 2023 2023 2022
Total loans
$ 297,423 $ 298,506 $ 292,591 $ 270,530 $ 281,857
Total short term investments
40,334 26,168 18,313 37,656 19,893
Total investment securities
140,403 127,035 130,603 136,407 134,628

Total earning assets
478,160 451,709 441,507 444,593 436,378

Allowance for loan losses
(5,224 ) (5,222 ) (5,344 ) (5,344 ) (4,323 )
Premises and equipment
2,387 2,389 2,378 2,337 2,196
Other Assets
10,291 10,137 10,044 9,381 11,030

Total assets
485,614 459,013 448,585 450,967 445,281

Noninterest bearing deposits
130,601 135,016 141,613 151,010 159,568
Interest bearing deposits
301,603 279,319 259,401 252,164 240,883

Total deposits
432,204 414,335 401,014 403,174 400,451

Fed Funds Purchased and Repurchase Agreements
0 0 0 0 0
Other Liabilities
2,663 3,164 2,239 2,936 1,779

Total liabilities
434,867 417,499 403,253 406,110 402,230

Shareholders' Equity Actual
53,465 51,470 50,427 48,537 48,871
Unrealized Gain/Loss - AFS
(2,718 ) (9,956 ) (5,096 ) (3,680 ) (5,820 )
Total Equity
$ 50,747 $ 41,514 $ 45,331 $ 44,857 $ 43,051

Quarter Ending
Dec 31, Sept. 30, June 30, March 31, Dec 31,
NONPERFORMING ASSETS
2023 2023 2023 2023 2022
Nonaccrual loans
$ 0 $ 115 $ 143 $ 159 $ 171
Restructured loans
$ 658 $ 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
$ 658 $ 115 $ 143 $ 159 $ 171

Accruing loans past due 30-89 days
$ 1 $ 2 $ 2 $ 407 $ 3

Total nonperforming assets as a percentage
of loans and foreclosed assets
0.22 % 0.04 % 0.05 % 0.06 % 0.06 %

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
2023 2023 2023 2023 2022
Balance at beginning of period
$ 5,222 $ 5,344 $ 5,344 $ 4,324 $ 4,314
Loans charged off
0 (127 ) 0 0 0
Loan recoveries
2 5 0 0 10
Net (charge-offs) recoveries
2 (122 ) 0 0 10
Provision for loan losses
0 0 0 1,020 0
Balance at end of period
$ 5,224 $ 5,222 $ 5,344 $ 5,344 $ 4,324

Allowance for loan losses
1.76 % 1.75 % 1.83 % 1.98 % 1.53 %
as a percentage of total loans
Allowance for loan losses
794 % 4541 % 3737 % 3361 % 2528 %
as a percentage of nonperforming assets
Net charge-offs (recoveries) as a
0.00 % 0.04 % 0.00 % 0.00 % 0.00 %
percentage of average loans
Provision for loan losses
0.00 % 0.00 % 0.00 % 0.37 % 0.00 %
as a percentage of average loans
Quarter Ending
Dec 31, Sept. 30, June 30, March 31, Dec 31,
SELECTED RATIOS
2023 2023 2023 2023 2022
Return on average assets (annualized)
1.77 % 1.72 % 1.79 % 1.76 % 1.85 %
Return on average equity (annualized)
16.83 % 17.69 % 17.74 % 17.68 % 17.71 %

Return on average equity (excluding unrealized gain on investments)
16.34 % 15.29 % 15.96 % 15.97 % 17.71 %
Average shareholders' equity to average assets
10.84 % 11.18 % 11.20 % 11.04 % 10.47 %

Yield on earning assets (tax equivalent)
5.81 % 5.76 % 5.47 % 5.09 % 4.84 %

Effective Cost of Funds
2.16 % 2.11 % 1.78 % 1.46 % 0.92 %
Net interest margin (tax equivalent)
3.65 % 3.66 % 3.69 % 3.63 % 3.92 %
Efficiency ratio (tax equivalent)
42.9 % 41.6 % 42.9 % 39.4 % 36.2 %

End of period book value per common share
$ 46.73 $ 38.09 $ 41.59 $ 41.12 $ 39.42

End of period book value (excluding unrealized gain on investments)
$ 49.23 $ 47.22 $ 46.26 $ 44.49 $ 44.75
End of period common shares outstanding (in 000's)
1,086 1,090 1,090 1,091 1,092

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

Twelve Months Ending
December 31, 2023 December 31, 2022
Tax Tax
Average Equivalent Average Equivalent
YIELD ANALYSIS
Balance Interest Yield Yield Balance Interest Yield Yield
Interest Earning Assets:
Short term investment
$ 26,075 1,379 5.29 % 5.29 % $ 37,266 735 1.97 % 1.97 %
FRB Stock
429 26 6.00 % 6.00 % 420 25 6.00 % 6.00 %
Taxable securities
1,383 73 5.28 % 5.28 % 959 1 0.00 % 0.00 %
Tax Free securities
132,399 3,438 2.60 % 3.29 % 140,638 3,039 2.16 % 2.74 %
Loans
287,127 19,144 6.67 % 6.67 % 258,760 13,324 5.15 % 5.15 %

Total Interest Earning Assets
447,413 24,060 5.38 % 5.58 % 438,043 17,124 3.91 % 4.09 %

Noninterest Earning Assets:
Cash and due from banks
5,856 5,973
Other assets
7,306 6,036
Allowance for loan losses
(5,057 ) (4,313 )

Total Noninterest Earning Assets
8,105 7,696
Total Assets
$ 455,518 $ 445,739

Interest Bearing Liabilities:
Transaction and Money Market accounts
179,325 5,504 3.07 % 3.07 % 181,865 1,391 0.76 % 0.76 %
Certificates and other time deposits
78,092 3,034 3.89 % 3.89 % 37,701 465 1.23 % 1.23 %
Other borrowings
10,327 73 0.71 % 0.71 % 16,689 187 1.12 % 1.12 %

Total Interest Bearing Liabilities
267,744 8,611 3.22 % 3.22 % 236,255 2,043 0.86 % 0.86 %
Noninterest Bearing Liabilities:
Demand deposits
140,835 166,328
Other liabilities
2,573 1,703
Shareholders' Equity
44,366 41,453

Total Liabilities and Shareholders Equity
$ 455,518 $ 445,739
Net Interest Income and Spread
15,449 2.16 % 2.37 % 15,081 3.04 % 3.23 %

Net Interest Margin
3.45 % 3.66 % 3.44 % 3.63 %

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

December 31 December 31
2023 % 2022 %
LOAN PORTFOLIO
Commercial and industrial
$ 163,017 54.72 % $ 161,254 57.13 %
Real estate:
Commercial
86,588 29.07 % 78,197 27.71 %
Residential
17,271 5.80 % 17,419 6.17 %
Construction and development
30,724 10.31 % 25,083 8.89 %
Consumer
306 0.10 % 283 0.10 %

Total loans (gross)
297,906 100.00 % 282,236 100.00 %

Unearned discounts
0 0.00 % 0 0.00 %

Total loans (net)
$ 297,906 100.00 % $ 282,236 100.00 %



December 31 December 31
2023 2022
REGULATORY CAPITAL DATA
Tier 1 Capital
$ 53,464 $ 43,051
Total Capital (Tier 1 + Tier 2)
$ 57,695 $ 48,871
Total Risk-Adjusted Assets
$ 337,534 $ 315,529
Tier 1 Risk-Based Capital Ratio
15.84 % 15.49 %
Total Risk-Based Capital Ratio
17.10 % 16.74 %
Tier 1 Leverage Ratio
11.09 % 8.74 %

OTHER DATA
Full Time Equivalent
Employees (FTE's)
28 25

Stock Price Range
(For the Three Months Ended):
High
$ 90.00 $ 90.00
Low
$ 79.25 $ 76.00
Close
$ 90.00 $ 88.50

SOURCE: Trinity Bank N.A.



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