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Truxton Corporation Reports First Quarter 2024 Results

NASHVILLE, Tenn., April 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 March 31, 2024. First quarter net income attributable to common shareholders was $4.33 million, or $1.48 per diluted share, compared to $4.29 million, or $1.47 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 first quarter of 2023.

“We are pleased to start 2024 with another quarter of financial growth lead by our core businesses,” said Chairman and CEO Tom Stumb. “Truxton Wealth revenue increased by 15% while total deposits were 9% higher compared to the same quarter last year, both driven by superior client service and key relationship growth.”

On May 28, 2024, we anticipate opening our new office location at 20 Burton Hills Blvd, Suite 200, Nashville, TN, 37215. Our original location served us well for almost 20 years. However, we are excited to be in a new space that allows us to accelerate organizational growth, elevate our service experience, and enhance the convenience and safety of our clients and employees. We look forward to seeing you there.

Key Highlights

  • Non-interest income grew to $5.1 million in the first quarter of 2024, which was up $929 thousand over the fourth quarter of 2023 and $629 thousand over the first quarter of 2023. The fourth quarter of 2023 included $445 thousand of net losses on the sale of securities while the first quarter of 2023 included $58 thousand of net gains on sales of securities. There were no gains or losses on the sale of securities in the first quarter of 2024. Excluding securities gains and losses, non-interest income in the first quarter of 2024 was up 10% compared to the prior quarter and 15% compared to the first quarter of 2023. Wealth management constituted 96% of non-interest income in the first quarter of 2024, compared to 95% and 94%, for the fourth quarter of 2023 and first quarter of 2023, respectively, when excluding gains and losses on sales of securities.
  • Loans increased by less than 1% to $660 million at quarter end compared to $658 million on December 31, 2023, and were up 5% compared to $626 million on March 31, 2023.
  • Total deposits increased by 9% from $782 million at December 31, 2023, to $850 million at March 31, 2024, and were 10% higher in comparison to $771 million at March 31, 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 first quarter of 2024 was 2.62%, a decrease of 16 basis points from the 2.78% experienced in the quarter ended December 31, 2023, and a decrease of 13 basis points from the 2.75% in the quarter ended March 31, 2023. Cost of funds was 3.33% in the first quarter of 2024, up from 3.15% for the quarter ended December 31, 2023, and up from 2.27% for the quarter ended March 31, 2023.
  • The build-out of Truxton’s new headquarters began this past January along with the accounting for the new lease. As a result, occupancy expenses rose by 67% compared to the prior quarter due to the dual accounting cost for our current and new Nashville office leases. After the move in late May, Truxton will only have the cost of the new Nashville headquarters lease but will have higher depreciation expenses for the capitalized costs associated with the new office.
  • Allowance for credit losses, excluding that for unfunded commitments, was $6.3 million at quarter end March 31, 2024, compared to $6.3 million at December 31, 2023, and $6.0 million at March 31, 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 $374 thousand, $411 thousand, and $507 thousand, respectively.
  • The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.40% at March 31, 2024, compared to 10.53% at December 31, 2023, and 10.29% at March 31, 2023. Book value per common share was $30.61, $30.31, and $25.71 at March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
  • During the three months ended March 31, 2024, Truxton Corporation paid dividends of $1.43 per common share, inclusive of a $1.00 special cash dividend paid on March 25, 2024.

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.

Investor RelationsMedia Relations
Austin BranstetterSwan Burrus
615-250-0783615-250-0773
austin.branstetter@truxtontrust.com swan.burrus@truxtontrust.com 


Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
    
 March 31, 2024*December 31, 2023*March 31, 2023*
ASSETS   
Cash and due from financial institutions$4,909 $4,272 $8,955 
Interest bearing deposits in other financial institutions 34,361  3,417  4,322 
Federal funds sold 6,733  1,537  10 
Cash and cash equivalents 46,003  9,226  13,288 
    
Time deposits in other financial institutions 490  490  1,260 
Securities available for sale 256,517  259,926  253,372 
    
Gross loans, excluding Paycheck Protection Program 659,622  657,781  625,626 
Allowance for credit losses (6,324) (6,304) (5,961)
Paycheck Protection Program Loans 48  59  90 
Net loans 653,346  651,536  619,754 
    
Bank owned life insurance 10,865  10,808  10,644 
Restricted equity securities 1,822  1,858  5,391 
Premises and equipment, net 2,089  189  222 
Accrued interest receivable 4,522  4,388  9,752 
Deferred tax asset, net 5,576  6,010  6,842 
Other assets 16,484  10,839  1,369 
    
Total assets$997,714 $955,270 $921,894 
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Deposits   
Non-interest bearing$126,838 $123,918 $151,956 
Interest bearing$723,645 $658,061  619,542 
Total deposits 850,483  781,979  771,499 
    
Federal funds purchased -  -  2,417 
Swap counterparty cash collateral 5,570  4,060  2,860 
Federal Home Loan Bank advances 3,250  4,500  9,500 
Federal Reserve Bank Term Funding Program advances 22,700  53,800  40,000 
Subordinated debt 14,514  14,327  14,752 
Other liabilities 11,712  8,922  6,078 
Total liabilities 908,229  867,588  847,106 
    
SHAREHOLDERS' EQUITY   
Common stock, $0.10 par value$290 $289 $289 
Additional paid-in capital 31,881  31,457  31,336 
Retained earnings 65,035  51,679  54,990 
Accumulated other comprehensive income (loss) (12,055) (13,279) (16,118)
Net Income$4,334 $17,536 $4,291 
Total shareholders' equity 89,485  87,682  74,788 
    
Total liabilities and shareholders' equity$997,714 $955,270 $921,894 
    
    
*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
 March 31, 2024* December 31, 2023* March 31, 2023*
Non-interest income     
Wealth management services$4,907  $4,435  $4,171
Service charges on deposit accounts 91   111   136
Securities gains (losses), net 0   (445)  58
Bank owned life insurance income 58   56   52
Other 81   52   91
Total non-interest income 5,137   4,208   4,508
      
Interest income     
Loans, including fees$10,357  $10,495  $8,487
Taxable securities 2,599   2,554   1,954
Tax-exempt securities 188   210   233
Interest bearing deposits 231   194   61
Federal funds sold 41   41   11
 Other interest income 27   63   65
Total interest income 13,441   13,558   10,812
      
Interest expense     
Deposits 6,450   6,048   4,216
Short-term borrowings 618   685   58
Long-term borrowings 15   23   237
Subordinated debentures 188   187   194
Total interest expense 7,270   6,943   4,705
      
Net interest income 6,171   6,615   6,107
      
Provision for credit losses (6)  215   59
      
Net interest income after provision for loan losses 6,177   6,400   6,048
      
Total revenue, net 11,315   10,608   10,556
      
Non interest expense     
Salaries and employee benefits 4,076   3,563   3,766
Occupancy 453   272   286
Furniture and equipment 4   24   25
Data processing 418   389   427
Wealth management processing fees 214   166   176
Advertising and public relations 34   109   46
Professional services 209   285   116
FDIC insurance assessments 190   225   75
Other 278   322   397
Total non interest expense 5,877   5,355   5,314
      
Income before income taxes 5,438   5,253   5,242
      
Income tax expense 1,104   1,029   951
      
Net income$4,334  $4,225  $4,291
      
Earnings per share:     
Basic$1.49  $1.46  $1.48
Diluted$1.48  $1.46  $1.47
*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)
    
 March 31, 2024*December 31, 2023*March 31, 2023*
    
Per Common Share Data   
Net income attributable to shareholders, per share   
Basic$1.49$1.46$1.48
Diluted$1.48$1.46$1.47
Book value per common share$30.62$30.31$25.71
Tangible book value per common share$30.62$30.31$25.71
Basic weighted average common shares2,831,2172,821,8462,820,892
Diluted weighted average common shares2,838,0032,828,2742,830,504
Common shares outstanding at period end2,922,7612,893,0642,908,483
    
    
Selected Balance Sheet Data   
Tangible common equity (TCE) ratio8.97%9.18%8.11%
Average Loans$656,790$653,804$622,012
Average earning assets (1)$958,138$956,793$912,603
Average total assets$970,227$960,852$918,440
Average shareholders' equity$89,441$81,759$75,557
    
    
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)$11($8)$12
Nonperforming loans to assets0.00%0.00%0.00%
Nonperforming assets to total assets0.00%0.00%0.00%
Nonperforming assets to total loans and other real estate0.00%0.00%0.00%
Allowance for credit losses to total loans**0.96%0.96%0.95%
Net charge offs to average loans0.00%0.00%0.00%
    
    
Capital Ratios (Bank Subsidiary Only)   
Tier 1 leverage10.40%10.53%10.29%
Common equity tier 114.26%14.58%13.79%
Total risk-based capital15.19%15.53%14.74%
    
Selected Performance Ratios    
Efficiency ratio51.6%47.1%51.3%
Return on average assets (ROA)1.80%1.75%1.89%
Return on average shareholders' equity (ROE)19.49%20.52%23.05%
Return on average tangible common equity (ROTCE)19.49%20.52%23.05%
Net interest margin2.62%2.78%2.75%
    
*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 
 March 31, 2024* December 31, 2023* March 31, 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$656,790 6.28$10,261 $653,804 6.18$10,183 $622,012 5.46$8,376 
   Loan fees$0 0.06$95 $0 0.19$312 $0 0.07$111 
      Loans with fees$656,790 6.34$10,356 $653,804 6.37$10,495 $622,012 5.53$8,487 
   Mortgage loans held for sale$0 0.00$0 $0 0.00$0 $0 0.00$0 
   Federal funds sold$3,255 4.93$41 $2,985 5.41$41 $866 5.15$11 
   Deposits with banks$19,536 4.75$231 $14,240 5.51$198 $11,749 4.38$127 
   Investment securities - taxable$245,516 4.23$2,599 $248,778 4.11$2,554 $237,601 3.29$1,954 
   Investment securities - tax-exempt$33,041 3.4$188 $36,986 3.39$210 $40,376 3.45$233 
      Total Earning Assets$958,138 5.66$13,415 $956,793 5.65$13,498 $912,604 4.84$10,812 
Non interest earning assets            
   Allowance for loan losses (6,309)    (6,123)    (6,279)   
   Cash and due from banks$5,270    $5,402    $6,547    
   Premises and equipment$1,260    $119    $202    
   Accrued interest receivable$3,478    $3,575    $2,843    
   Other real estate$0    $0    $0    
   Other assets$30,494    $30,404    $28,601    
   Unrealized gain (loss) on inv. securities (22,103)    (29,318)    (26,077)   
      Total Assets$970,227    $960,852    $918,441    
Interest bearing liabilities            
   Interest bearing demand$330,343 3.53$2,898 $345,966 3.42$2,984 $366,260 2.80$2,529 
   Savings and money market$162,640 3.4$1,375 $138,244 2.95$1,027 $127,422 1.70$533 
   Time deposits - retail$15,557 3.43$133 $16,343 3.18$131 $18,256 1.93$87 
   Time deposits - wholesale$173,570 4.74$2,044 $165,756 4.56$1,906 $133,704 3.24$1,067 
      Total interest bearing deposits$682,110 3.8$6,450 $666,309 3.6$6,048 $645,642 2.65$4,216 
   Federal Home Loan Bank advances$3,401 1.7$15 $4,500 1.98$23 $16,844 4.09$172 
   Subordinated debt$14,610 5.09$188 $14,422 5.08$187 $15,001 5.17$194 
   Other borrowings$57,060 4.28$618 $60,859 4.39$685 $11,451 4.29$123 
      Total borrowed funds$75,071 4.32$821 $79,781 4.39$895 $43,296 4.52$489 
      Total interest bearing liabilities$757,181 3.85$7,271 $746,090 3.69$6,943 $688,938 2.77$4,705 
Net interest rate spread 1.81$6,144  1.96$6,555  2.08$6,107 
   Non-interest bearing deposits$118,809    $126,534    $150,259    
   Other liabilities$4,796    $6,469    $3,686    
   Shareholder's equity$89,441    $81,759    $75,557    
      Total Liabilities and Shareholder's Equity$970,227    $960,852    $918,440    
Cost of funds 3.33   3.15   2.27  
Net interest margin 2.62   2.78   2.75  
             
*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. 

 

 


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