NASHVILLE, Tenn., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Truxton Corporation, the parent company for Truxton Trust Company (“Truxton” or “the Bank”) and subsidiaries, announced its operating results for the quarter ended September 30, 2023. Third quarter net income attributable to common shareholders was $4.6 million or $1.57 per diluted share compared to $4.3 million or $1.49 per diluted share for the same quarter in 2022. Net income and fully diluted earnings per share for the quarter both rose by 5% compared to the third quarter of 2022.
“Truxton’s earnings reached a new quarterly high in the third quarter despite the challenging environment,” said Chairman and CEO Tom Stumb. “While we did benefit from several non-recurring revenue events in the third quarter, our core businesses of banking and wealth management continue to perform well, driven by the value we provide to our clients.”
Key Highlights
- Non-interest income grew to $4.9 million in the third quarter, an increase of 3% from the second quarter of 2023 and 16% higher in comparison to the third quarter of 2022. Wealth management services constituted 93% of non-interest income in the third quarter of 2023 compared to 93% in the second quarter of 2023 and 94% in the third quarter of 2022. WMS revenue for the third quarter included one-time fees totaling more than $150 thousand.
- Gross loans rose by 2% to $642 million at quarter end compared to $628 million on June 30, 2023 and were up 5% compared to $612 million on September 30, 2022.
- Total deposits increased by 0.2% from $779 million at June 30, 2023, to $781 million at September 30, 2023, and were 1% lower in comparison to $790 million at September 30, 2022. Truxton continues to principally fund its growth from a single banking location led by its commitment to provide what it believes is superior deposit operations service and technology. As a result, occupancy expenditures and fixed asset investments remain a fraction of typical peers.
- Net interest margin for the third quarter of 2023 was 2.61%, an increase of 7 basis points from the 2.54% experienced in the quarter ended June 30, 2023, and 34 basis points lower than 2.95% in the quarter ended September 30, 2022. Cost of funds was 3.05% in the third quarter of 2023, up from 2.80% for the quarter ended June 30, 2023, and up from 1.02% for the quarter ended September 30, 2022.
- Asset quality remains sound at Truxton. Truxton had no non-performing assets on September 30, 2023. Truxton had $1 thousand of recoveries in the third quarter of 2023 compared to no net charge-offs in the trailing quarter or in the third quarter of 2022.
- Truxton adopted the mandated Current Expected Credit Loss accounting methodology for calculating its allowance for credit losses effective January 1, 2023. The Allowance for Credit Losses was $6.0 million at quarter end September 30, 2023, and at quarter end June 30, 2023, each excluding $0.5 million in allowance for unfunded commitments, compared to Allowance for Loan and Lease Losses of $5.8 million at September 30, 2022. For the same three periods, the Bank’s allowance was 0.94%, 0.95%, and 0.94%, respectively, of gross loans outstanding at period end.
- Truxton Risk Management, Inc., Truxton Corporation’s captive insurance company, ceased further operations in the second quarter of 2023 and was substantively, although not completely, dissolved in the third quarter of 2023, which allowed a one-time reserve release of $168 thousand.
- The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.36% at September 30, 2023, compared to 10.39% at June 30, 2023, and 9.78% at September 30, 2022. Book value per common share was $27.43, $27.01, and $23.84 at September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
- During the third quarter of 2023, Truxton Corporation repurchased 12,986 shares of its common stock for $774 thousand, an average price of $59.59 per share. During the nine months ended September 30, 2023, Truxton Corporation paid dividends of $2.14 per common share, inclusive of a $1.00 special cash dividend.
About Truxton
Truxton Trust Company is a provider of wealth, banking, and family office services for wealthy individuals, their families and their business interests. Serving clients across the world, Truxton’s vastly experienced team of professionals provides customized solutions to its clients’ complex financial needs. Founded in 2004 in Nashville, Tennessee, Truxton Trust upholds its original guiding principle: do the right thing. Truxton Trust Company is a subsidiary of financial holding company, Truxton Corporation (OTCPK: TRUX). For more information, visit truxtontrust.com.
| Investor Relations | Media Relations |
| Austin Branstetter | Swan Burrus |
| 615-250-0783 | 615-250-0773 |
| [email protected] | [email protected] |
| Truxton Corporation | |||||||||
| Consolidated Balance Sheets | |||||||||
| (000's) | |||||||||
| (Unaudited) | |||||||||
| September 30, 2023* | June 30, 2023* | September 30, 2022* | |||||||
| ASSETS | |||||||||
| Cash and due from financial institutions | $ | 5,040 | $ | 7,060 | $ | 5,101 | |||
| Interest bearing deposits in other financial institutions | 7,589 | 15,287 | 3,906 | ||||||
| Federal funds sold | 956 | 1,705 | - | ||||||
| Cash and cash equivalents | 13,585 | 24,052 | 9,007 | ||||||
| Time deposits in other financial institutions | 740 | 1,140 | 1,830 | ||||||
| Securities available for sale | 259,543 | 272,474 | 263,149 | ||||||
| Gross loans, excluding Paycheck Protection Program | 641,697 | 627,567 | 611,946 | ||||||
| Allowance for credit losses** | (6,031 | ) | (5,973 | ) | (5,750 | ) | |||
| Paycheck Protection Program Loans | 69 | 80 | 111 | ||||||
| Net loans | 635,735 | 621,674 | 606,307 | ||||||
| Bank owned life insurance | 10,751 | 10,698 | 10,541 | ||||||
| Restricted equity securities | 1,940 | 2,538 | 2,688 | ||||||
| Premises and equipment, net | 129 | 143 | 241 | ||||||
| Accrued interest receivable | 4,310 | 3,945 | 3,207 | ||||||
| Deferred tax asset, net | 7,910 | 6,793 | 7,371 | ||||||
| Other assets | 13,922 | 12,414 | 12,417 | ||||||
| Total assets | $ | 948,566 | $ | 955,870 | $ | 916,758 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Deposits | |||||||||
| Non-interest bearing | $ | 116,918 | $ | 141,503 | $ | 154,049 | |||
| Interest bearing | $ | 663,950 | 637,595 | 635,503 | |||||
| Total deposits | 780,868 | 779,098 | 789,552 | ||||||
| Federal funds purchased | - | - | 6,517 | ||||||
| Swap counterparty cash collateral | 4,820 | 3,780 | 4,000 | ||||||
| Federal Home Loan Bank advances | 4,500 | 16,500 | 25,500 | ||||||
| Federal Reserve Bank Term Funding Program advances | 55,000 | 55,000 | - | ||||||
| Subordinated debt | 14,291 | 14,946 | 14,703 | ||||||
| Other liabilities | 9,544 | 7,870 | 7,619 | ||||||
| Total liabilities | 869,023 | 877,193 | 847,891 | ||||||
| SHAREHOLDERS' EQUITY | |||||||||
| Common stock, $0.10 par value | $ | 288 | $ | 289 | $ | 284 | |||
| Additional paid-in capital | 31,335 | 31,743 | 30,672 | ||||||
| Retained earnings | 52,780 | 53,883 | 43,748 | ||||||
| Accumulated other comprehensive income (loss) | (18,167 | ) | (15,989 | ) | (18,510 | ) | |||
| Net Income | $ | 13,307 | $ | 8,743 | $ | 12,676 | |||
| Total shareholders' equity | 79,543 | 78,669 | 68,870 | ||||||
| Total liabilities and shareholders' equity | $ | 948,566 | $ | 955,863 | $ | 916,761 | |||
| *The information is preliminary, unaudited and based on company data available at the time of presentation. | |||||||||
| **2022 data shows Allowance for loan losses. Truxton adopted the Current Expected Credit Loss methodology as of January 1, 2023. The total excludes reserve for credit losses on unfunded commitments recorded in Other liabilities in 2023. | |||||||||
| Truxton Corporation | |||||||||||||||
| Consolidated Statements of Net Income | |||||||||||||||
| (000's) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year To Date | ||||||||||||||
| September 30, 2023* | June 30, 2023* | September 30, 2022* | September 30, 2023* | September 30, 2022* | |||||||||||
| Non-interest income | |||||||||||||||
| Wealth management services | $ | 4,608 | $ | 4,442 | $ | 4,014 | $ | 13,222 | $ | 12,251 | |||||
| Service charges on deposit accounts | 123 | 139 | 99 | 398 | 304 | ||||||||||
| Securities gains (losses), net | 0 | 0 | - | 58 | (47 | ) | |||||||||
| Bank owned life insurance income | 54 | 54 | 51 | 159 | 151 | ||||||||||
| Other | 146 | 133 | 103 | 374 | 190 | ||||||||||
| Total non-interest income | 4,931 | 4,769 | 4,267 | 14,212 | 12,849 | ||||||||||
| Interest income | |||||||||||||||
| Loans, including fees | $ | 9,714 | $ | 9,107 | $ | 6,797 | $ | 27,308 | $ | 17,108 | |||||
| Taxable securities | 2,575 | 2,267 | 1,370 | 6,796 | 3,627 | ||||||||||
| Tax-exempt securities | 216 | 217 | 403 | 666 | 1,195 | ||||||||||
| Interest bearing deposits | 69 | 55 | 87 | 185 | 165 | ||||||||||
| Federal funds sold | 30 | 18 | 10 | 59 | 14 | ||||||||||
| Other interest income | 105 | 134 | 34 | 300 | 97 | ||||||||||
| Total interest income | 12,709 | 11,798 | 8,701 | 35,316 | 22,206 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 5,679 | 4,938 | 1,914 | 14,833 | 3,307 | ||||||||||
| Short-term borrowings | 61 | 52 | 6 | 167 | 10 | ||||||||||
| Long-term borrowings | 716 | ||||||||||||||
