NASHVILLE, Tenn., July 18, 2024 (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 June 30, 2024. Second quarter net income attributable to common shareholders was $4.51 million, or $1.55 per diluted share, compared to $4.45 million, or $1.53 per diluted share, for the same quarter in 2023. Net income and fully diluted earnings per share for the quarter both rose by 1% compared to the second quarter of 2023.
“Truxton’s second quarter performance was strong in our core businesses, especially our wealth management component,” said Chairman and CEO Tom Stumb. “The durability of our model and the value of our service to clients were again emphasized as we grew earnings despite a number of one-time items that were a net negative to our bottom line.”
Key Highlights
Non-interest income grew to $5.5 million in the second quarter of 2024, which was up $395 thousand over the first quarter of 2024 and $763 thousand over the second quarter of 2023. Wealth management constituted 94% of non-interest income in the second quarter of 2024, compared to 96% and 93%, for the first quarter of 2024 and second quarter of 2023, respectively. Non-interest income for the quarter included hedge termination fees received by the bank that more than offset the loss on the sale of the hedged security.
Non-interest expense in the second quarter of 2024 increased by $712 thousand compared to the prior quarter, driven by fraud losses of $733 thousand. Almost all this expense was related to a wire fraud incident for which the Bank is pursuing recovery.
Our headquarters relocation in late May drove occupancy and professional services higher for the second quarter, while the depreciation of leasehold improvements, furniture and equipment will remain higher going forward.
Loans declined by 2% to $648 million at quarter end compared to $660 million on March 31, 2024, and were up 3% compared to $628 million on June 30, 2023.
Total deposits declined by 1% from $850 million at March 31, 2024, to $840 million at June 30, 2024, but were 6% higher in comparison to $790 million at June 30, 2023. Truxton continues to fund its growth from a single banking location led by its commitment to provide what it believes is superior deposit operations service and technology.
Net interest margin for the second quarter of 2024 was 2.75%, an increase of 13 basis points from the 2.62% experienced in the quarter ended March 31, 2024, and an increase of 21 basis points from the 2.54% recorded in the quarter ended June 30, 2023. Cost of funds was 3.32% in the second quarter of 2024, down from 3.33% for the quarter ended March 31, 2024, and up from 2.80% for the quarter ended June 30, 2023.
Allowance for credit losses, excluding that for unfunded commitments, was $6.2 million at quarter end June 30, 2024, compared to $6.3 million at March 31, 2024, and $6.0 million at June 30, 2023. For those three periods, such allowance amounts were 0.96%, 0.96%, and 0.95%, respectively, of gross loans outstanding at period end. For the same three periods, the Bank’s allowance for unfunded commitments was $438 thousand, $374 thousand, and $511 thousand, respectively.
The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.45% at June 30, 2024, compared to 10.40% at March 31, 2024, and 10.39% at June 30, 2023. Book value per common share was $31.85, $30.62, and $27.01 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively.
During the six months ended June 30, 2024, Truxton Corporation paid dividends of $1.86 per common share, inclusive of a $1.00 special cash dividend, and repurchased 15 thousand shares of its common stock for $964 thousand, an average price of $63.79 per share.
About Truxton Truxton is a premier 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 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.
Interest bearing deposits in other financial institutions
3,851
34,361
2,848
Federal funds sold
-
6,733
1,705
Cash and cash equivalents
12,345
46,003
35,171
Time deposits in other financial institutions
490
490
250
Securities available for sale
286,977
256,517
272,474
Gross loans, excluding Paycheck Protection Program
648,300
659,622
627,576
Allowance for credit losses
(6,234
)
(6,324
)
(5,982
)
Paycheck Protection Program Loans
38
48
80
Net loans
642,104
653,346
621,674
Bank owned life insurance
11,512
10,865
10,698
Restricted equity securities
1,802
1,822
5,011
Premises and equipment, net
3,406
2,089
575
Accrued interest receivable
4,744
4,522
11,782
Deferred tax asset, net
5,386
5,576
6,623
Other assets
16,633
16,484
1,387
Total assets
$
985,399
$
997,714
$
965,644
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing
$
115,699
$
126,838
$
152,071
Interest bearing
724,251
723,645
637,595
Total deposits
839,950
850,483
789,665
Federal funds purchased
283
-
-
Swap counterparty cash collateral
5,000
5,570
3,780
Federal Home Loan Bank advances
2,250
3,250
16,500
Federal Reserve Bank Term Funding Program advances
20,000
22,700
55,000
Subordinated debt
14,213
14,514
14,946
Other liabilities
10,919
11,712
7,083
Total liabilities
892,615
908,229
886,974
SHAREHOLDERS' EQUITY
Common stock, $0.10 par value
$
290
$
290
$
289
Additional paid-in capital
31,381
31,881
31,743
Retained earnings
63,782
65,035
53,884
Accumulated other comprehensive income (loss)
(11,517
)
(12,055
)
(15,989
)
Net Income
$
8,848
$
4,334
$
8,743
Total shareholders' equity
92,784
89,485
78,670
Total liabilities and shareholders' equity
$
985,399
$
997,714
$
965,644
*The information is preliminary, unaudited and based on company data available at the time of presentation.
Truxton Corporation
Consolidated Statements of Net Income
(000's)
(Unaudited)
Three Months Ended
Year To Date
June 30, 2024*
March 31, 2024*
June 30, 2023*
June 30, 2024*
June 30, 2023*
Non-interest income
Wealth management services
$
5,206
$
4,907
$
4,442
$
10,113
$
8,613
Service charges on deposit accounts
91
91
139
182
276
Securities gains (losses), net
(213
)
0
0
(213
)
58
Bank owned life insurance income
62
58
54
120
106
Other
387
81
133
468
228
Total non-interest income
5,532
5,137
4,769
10,670
9,281
Interest income
Loans, including fees
$
10,459
$
10,357
$
9,107
$
20,816
$
17,594
Taxable securities
2,933
2,599
2,267
5,532
4,221
Tax-exempt securities
207
188
217
395
450
Interest bearing deposits
408
231
55
639
117
Federal funds sold
60
41
18
101
29
Other interest income
52
27
134
79
195
Total interest income
14,119
13,441
11,798
27,559
22,606
Interest expense
Deposits
6,939
6,450
4,938
13,389
9,155
Short-term borrowings
327
618
52
945
110
Long-term borrowings
13
15
817
28
1,054
Subordinated debentures
188
188
194
376
388
Total interest expense
7,467
7,270
6,001
14,737
10,706
Net interest income
6,652
6,171
5,797
12,822
11,900
Provision for credit losses
(27
)
(6
)
15
(33
)
74
Net interest income after provision for loan losses
6,679
6,177
5,782
12,855
11,826
Total revenue, net
12,211
11,315
10,550
23,526
21,107
Non interest expense
Salaries and employee benefits
3,897
4,076
3,663
7,973
7,429
Occupancy
484
453
314
937
600
Furniture and equipment
73
4
20
77
45
Data processing
439
418
455
857
882
Wealth management processing fees
208
214
176
422
352
Advertising and public relations
48
34
35
82
81
Professional services
272
209
54
481
169
FDIC insurance assessments
120
190
75
310
150
Other
1,048
278
279
1,326
676
Total non interest expense
6,589
5,877
5,070
12,466
10,384
Income before income taxes
5,621
5,438
5,481
11,059
10,722
Income tax expense
1,107
1,104
1,028
2,211
1,979
Net income
$
4,514
$
4,334
$
4,453
$
8,848
$
8,743
Earnings per share:
Basic
$
1.55
$
1.49
$
1.53
$
3.03
$
3.01
Diluted
$
1.55
$
1.48
$
1.53
$
3.03
$
3.00
*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.
Truxton Corporation
Selected Quarterly Financial Data
At Or For The Three Months Ended
(000's)
(Unaudited)
June 30, 2024*
March 31, 2024*
June 30, 2023*
Per Common Share Data
Net income attributable to shareholders, per share:
Basic
$1.55
$1.49
$1.53
Diluted
$1.55
$1.48
$1.53
Book value per common share
$31.85
$30.62
$27.01
Tangible book value per common share
$31.85
$30.62
$27.01
Basic weighted average common shares
2,834,023
2,831,217
2,830,894
Diluted weighted average common shares
2,839,086
2,838,003
2,838,321
Common shares outstanding at period end
2,913,478
2,922,761
2,912,781
Selected Balance Sheet Data
Tangible common equity (TCE) ratio
9.42%
8.97%
8.15%
Average Loans
$655,486
$656,790
$629,899
Average earning assets (1)
$980,123
$958,138
$932,732
Average total assets
$998,799
$970,227
$939,007
Average shareholders' equity
$90,929
$89,441
$76,536
Selected Asset Quality Measures
Nonaccrual loans
$0
$0
$0
90+ days past due still accruing
$0
$0
$0
Total nonperforming loans
$0
$0
$0
Total nonperforming assets
$0
$0
$0
Net charge offs (recoveries)
($1)
$11
$0
Nonperforming loans to assets
0.00%
0.00%
0.00%
Nonperforming assets to total assets
0.00%
0.00%
0.00%
Nonperforming assets to total loans and other real estate
0.00%
0.00%
0.00%
Allowance for credit losses to total loans**
0.96%
0.96%
0.95%
Net charge offs to average loans
0.00%
0.00%
0.00%
Capital Ratios (Bank Subsidiary Only)
Tier 1 leverage
10.45%
10.40%
10.39%
Common equity tier 1
14.62%
14.26%
14.25%
Total risk-based capital
15.54%
15.19%
15.18%
Selected Performance Ratios
Efficiency ratio
52.72%
51.55%
48.56%
Return on average assets (ROA)
1.82%
1.80%
1.90%
Return on average shareholders' equity (ROE)
19.97%
19.49%
23.33%
Return on average tangible common equity (ROTCE)
19.97%
19.49%
23.33%
Net interest margin
2.75%
2.62%
2.54%
*The information is preliminary, unaudited and based on company data available at the time of presentation.
**Ratios do not include reserve for unfunded commitments
(1) Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, and investment securities.
Truxton Corporation
Yield Tables
For The Periods Indicated
(000's)
(Unaudited)
The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest earning assets and interest bearing liabilities and the average interest rate for interest earning assets and interest bearing liabilities, net interest spread and net interest margin for the periods indicated below:
Three Months Ended
Three Months Ended
Three Months Ended
June 30, 2024*
March 31, 2024*
June, 30 2023*
Average Balances
Rates/ Yields (%)
Interest Income/ Expense
Average Balances
Rates/ Yields (%)
Interest Income/ Expense
Average Balances
Rates/ Yields (%)
Interest Income/ Expense
Earning Assets
Loans
$655,486
6.34
$10,332
$656,790
6.28
$10,261
$629,899
5.72
$8,989
Loan fees
$0
0.08
$127
$0
0.06
$96
$0
0.08
$119
Loans with fees
$655,486
6.42
$10,459
$656,790
6.34
$10,357
$629,899
5.8
$9,107
Mortgage loans held for sale
$0
0.00
$0
$0
0.00
$0
$0
0.00
$0
Federal funds sold
$4,476
5.32
$60
$3,255
4.93
$41
$1,456
4.85
$18
Deposits with banks
$27,887
5.88
$408
$19,536
4.75
$231
$15,618
4.95
$193
Investment securities - taxable
$257,470
4.56
$2,933
$245,516
4.23
$2,599
$247,515
3.66
$2,267
Investment securities - tax-exempt
$34,804
3.56
$207
$33,041
3.4
$188
$38,243
3.39
$217
Total Earning Assets
$980,123
5.81
$14,067
$958,138
5.66
$13,416
$932,732
5.12
$11,802
Non interest earning assets
Allowance for loan losses
(6,306)
(6,309)
(5,959)
Cash and due from banks
$6,856
$5,270
$6,092
Premises and equipment
$2,698
$1,260
$164
Accrued interest receivable
$3,975
$3,478
$3,213
Other real estate
$0
$0
$0
Other assets
$32,919
$30,494
$28,375
Unrealized gain (loss) on inv. securities
(21,466)
(22,103)
(25,610)
Total Assets
$998,799
$970,227
$939,007
Interest bearing liabilities
Interest bearing demand
$340,187
3.62
$3,062
$330,343
3.53
$2,898
$341,780
3.14
$2,673
Savings and money market
$175,264
3.55
$1,546
$162,640
3.4
$1,375
$139,463
2.62
$912
Time deposits - retail
$14,887
3.4
$126
$15,557
3.43
$133
$16,758
2.4
$100
Time deposits - wholesale
$201,005
4.41
$2,205
$173,570
4.74
$2,044
$128,795
3.9
$1,254
Total interest bearing deposits
$731,343
3.82
$6,939
$682,110
3.8
$6,450
$626,796
3.16
$4,938
Federal Home Loan Bank advances
$3,173
1.64
$13
$3,401
1.7
$15
$18,907
4.27
$204
Subordinated debt
$14,471
5.14
$188
$14,610
5.09
$188
$14,876
5.16
$194
Other borrowings
$30,973
4.18
$327
$57,060
4.28
$618
$58,342
5.86
$664
Total borrowed funds
$48,617
4.30
$528
$75,071
4.32
$821
$92,125
4.56
$1,062
Total interest bearing liabilities
$779,960
3.85
$7,467
$757,181
3.85
$7,271
$718,921
3.34
$6,000
Net interest rate spread
1.96
$6,600
1.81
$6,145
1.78
$5,801
Non-interest bearing deposits
$124,029
$118,809
$139,807
Other liabilities
$3,881
$4,796
$3,743
Shareholder's equity
$90,929
$89,441
$76,536
Total Liabilities and Shareholder's Equity
$998,799
$970,227
$939,007
Cost of funds
3.32
3.33
2.80
Net interest margin
2.75
2.62
2.54
*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.
Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.
Truxton Corporation
Yield Tables
For The Periods Indicated
(000's)
(Unaudited)
The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest earning assets and interest bearing liabilities and the average interest rate for interest earning assets and interest bearing liabilities, net interest spread and net interest margin for the periods indicated below:
Six Months Ended
Six Months Ended
June 30, 2024*
June 30, 2023*
Average Balances
Rates/ Yields (%)
Interest Income/ Expense
Average Balances
Rates/ Yields (%)
Interest Income/ Expense
Earning Assets
Loans
$656,138
6.31
$20,593
$625,977
5.59
$17,364
Loan fees
$0
0.07
$223
$0
0.07
$232
Loans with fees
$656,138
6.38
$20,816
$625,977
5.67
$17,596
Mortgage loans held for sale
$0
0.00
$0
$0
0.00
$0
Federal funds sold
$3,865
5.16
$101
$1,162
4.96
$29
Deposits with banks
$23,712
5.41
$638
$13,695
4.71
$320
Investment securities - taxable
$251,493
4.4
$5,532
$242,585
3.48
$4,221
Investment securities - tax-exempt
$33,922
3.48
$395
$39,304
3.42
$450
Total Earning Assets
$969,130
5.74
$27,482
$922,723
4.98
$22,616
Non interest earning assets
Allowance for loan losses
(6,308)
(6,118)
Cash and due from banks
$6,064
$6,318
Premises and equipment
$1,979
$183
Accrued interest receivable
$3,726
$3,029
Other real estate
$0
$0
Other assets
$31,706
$28,487
Unrealized gain (loss) on inv. securities
(21,784)
(25,842)
Total Assets
$984,513
$928,780
Interest bearing liabilities
Interest bearing demand
$335,265
3.58
$5,961
$353,953
2.96
$5,201
Savings and Money Market
$168,952
3.48
$2,920
$133,476
2.18
$1,445
Time deposits - Retail
$15,222
3.42
$259
$17,503
2.16
$187
Time Deposits - Wholesale
$187,287
4.56
$4,249
$131,236
3.57
$2,321
Total interest bearing deposits
$706,726
3.81
$13,389
$636,167
2.9
$9,154
Federal home Loan Bank advances
$3,287
1.67
$28
$17,881
4.19
$376
Subordinated debt
$14,541
5.11
$376
$14,939
5.16
$388
Other borrowings
$44,016
4.25
$944
$35,025
4.45
$787
Total borrowed funds
$61,844
4.31
$1,348
$67,845
4.55
$1,551
Total interest bearing liabilities
$768,570
3.85
$14,737
$704,012
3.06
$10,705
Net interest rate spread
1.89
$12,745
1.92
$11,911
Non-interest bearing deposits
$121,419
$145,004
Other liabilities
$4,339
$3,715
Shareholder's equity
$90,185
$76,049
Total Liabilities and Shareholder's Equity
$984,513
$928,780
Cost of funds
3.32
2.54
Net interest margin
2.68
2.65
*The information is preliminary, unaudited and based on company data available at the time of presentation.
Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.
