Press Release

Truxton Corporation Reports Fourth Quarter 2018 Results

Company Release - 1/31/2019 8:30 AM ET

NASHVILLE, Tenn., Jan. 31, 2019 (GLOBE NEWSWIRE) -- Truxton Corporation (OTCPK: TRUX), a financial holding company and the parent of Truxton Trust Company (the “Bank”), reported consolidated net income of $2,109,000 for the fourth quarter of 2018, a 45 percent increase compared with $1,453,000 for the fourth quarter of 2017.  Earnings per fully diluted share for the quarter ended December 31, 2018, totaled $0.76 versus $0.54 for the same period in 2017. 

For the twelve months ended December 31, 2018, the company reported net income of $8,194,000 compared to $6,178,000 for the comparable 2017 period, an increase of 32.6 percent.  Earnings per fully diluted share for the twelve months ended December 31, 2018, totaled $2.95 versus $2.28 in 2017.

A year ago, the company reported adjusted earnings, adding back the negative effects of a downward revision in its deferred tax asset and the losses taken on certain bond sale transactions.  Both adjustments were a response to the reduction in Federal Income Tax Rates contained in the Tax Cuts and Jobs Act of 2017.

Compared to the adjusted 2017 earnings per share of $0.64 and $2.39 for the fourth quarter and full year, respectively, adjusted earnings per share for 2018 rose 19 percent for the quarter and 23 percent for the full year.

At December 31, 2018, the company reported total assets of $485 million, a 10.8 percent increase from December 31, 2017.  Over the same period, total loans increased 13.2 percent to $331.8 million, while deposits grew 11.5 percent to $404.7 million.  At December 31, 2018, the Bank’s Tier 1 leverage ratio was 10.71 percent.

Non-interest income for the fourth quarter of 2018 was $2,605,000 compared to $2,355,000 for the same period in 2017, an increase of 10.6 percent.

Tangible Book Value per share at December 31, 2018, was $20.63 compared to $18.92 at the same time a year ago.

“Loan growth in 2018 was excellent.  Our private banking team and our clients worked together to meet many unique personal and commercial lending needs.  Our treasury management team attracted the deposit relationships that allowed us to fund these loans at moderate cost in a rising rate environment,” said CEO Tom Stumb.  He continued, “Wealth management grew revenues at a double-digit pace despite challenging market volatility that intensified in the fourth quarter.”  

About Truxton Trust
Truxton Trust is a full-service private bank and trust company founded in 2004. Since its inception, Truxton Trust has been focused on a singular guiding principle: do the right thing. Truxton Trust delivers the highest level of personal service through its vastly experienced and credentialed team of professionals who provide comprehensive and customized financial solutions to individuals, their families and their business interests.

Investor Relations Media Relations   
Andrew MayTamara Schoeplein
615-515-1707 615-515-1714
[email protected]   [email protected] 


Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
   
 December 2018*December 2017
ASSETS  
Cash and due from financial institutions$  7,139 $  6,425 
Interest bearing deposits in other financial institutions   3,660    3,750 
Federal funds sold   6    6 
Cash and cash equivalents   10,805    10,181 
   
Time deposits in other financial institutions   18,268    11,544 
Securities available for sale   109,696    109,295 
   
Gross loans   331,809    293,117 
Allowance for loan losses   (3,356)   (3,074)
Net loans   328,453    290,043 
   
Bank owned life insurance   9,755    9,535 
Restricted equity securities   2,578    2,556 
Premises and equipment, net   429    731 
Accrued interest receivable   1,804    1,444 
Other real estate owned   -    - 
Deferred tax asset, net   1,022    363 
Other assets   2,323    1,990 
   
Total assets$  485,133 $  437,682 
   
   
LIABILITIES AND SHAREHOLDERS' EQUITY  
Deposits  
Non-interest bearing$  93,464 $  87,049 
Interest bearing   311,218    275,906 
Total deposits   404,682    362,955 
   
Federal Home Loan Bank advances   19,249    20,198 
Federal Funds purchased   1,282    1,071 
Other liabilities   3,525    2,681 
Total liabilities   428,738    386,905 
   
SHAREHOLDERS' EQUITY  
Additional paid-in capital   28,527    27,253 
Retained earnings   29,283    23,569 
Accumulated other comprehensive income (loss)   (1,415)   (45)
   
Total shareholders' equity    56,395    50,777 
   
Total liabilities and shareholders' equity $  485,133 $  437,682 
   
*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  Twelve Months Ended 
 December 2018 * December 2017  December 2018 * December 2017 
Non-interest income         
Wealth management services$  2,476  $  2,406   $  9,843  $  9,108  
Service charges on deposit accounts 86   87    344   341  
Securities gains (losses), net (86)  (210)   (74)  (189) 
Bank owned life insurance income 55   56    220   231  
Other 74   16    220   100  
Total non-interest income 2,605   2,355    10,553   9,591  
          
Interest income         
Loans, including fees$  3,819  $  3,138   $  13,828  $  12,531  
Taxable securities 494   294    1,672   1,140  
Tax-exempt securities 232   250    982   795  
Interest bearing deposits 231   131    656   313  
Federal funds sold 16   11    54   22  
 Other Interest Income 51   48    156   139  
Total interest income 4,843   3,872    17,348   14,940  
          
Interest expense         
Deposits   940     411      2,596     1,451  
Short-term  borrowings   2     -      11     3  
Long-term  borrowings 87   85    374   332  
Total interest expense 1,029   496    2,981   1,786  
          
Net interest income 3,814   3,376    14,367   13,154  
          
Provision for loan losses 226   0    283   75  
          
Net interest income after provision for loan losses 3,588   3,376    14,084   13,079  
          
Total revenue, net 6,193   5,731    24,637   22,670  
          
Non-interest expense         
Salaries and employee benefits 2,683   2,607    10,339   9,557  
Occupancy 202   180    764   718  
Furniture and equipment 28   61    157   217  
Data processing 295   328    1,135   1,218  
Wealth management processing fees 92   99    442   475  
Advertising and public relations 43   54    111   172  
Professional services 142   55    602   617  
FDIC insurance assessments 19   35    124   140  
Other 207   194    942   801  
Total non-interest expense 3,711   3,613    14,616   13,915  
          
Income before income taxes 2,482   2,118    10,021   8,755  
          
Income tax expense 373   665    1,827   2,577  
          
Net income$  2,109  $  1,453   $  8,194  $  6,178  
          
Earnings per share:          
Basic$  0.78  $  0.55   $  3.02  $  2.32  
  Basic: Excluding gains and losses on sales of investment securities and revaluation of deferred tax assets$  0.78  $  0.65   $  3.02  $  2.42  
          
Diluted$  0.76  $  0.54   $  2.95  $  2.28  
  Diluted: Excluding gains and losses on sales of investment securities and revaluation of deferred tax assets$  0.76  $  0.64   $  2.95  $  2.39  
          
*The information is preliminary, unaudited and based on company data available at the time of presentation.   

 

Truxton Corporation
Operating Statistics
(000's)
(Unaudited)
     
 Three Months EndedTwelve Months Ended
 December 2018*December 2017December 2018*December 2017
Performance Ratios    
Efficiency Ratio  56.73% 61.46% 59.30% 60.93%
Net Interest Margin  3.25% 3.22% 3.30% 3.31%
     
Capital Ratios    
Return on Average Assets  1.70% 1.31% 1.76% 1.46%
ROAA excluding gains and losses on sales of investment securities and revaluation of deferred tax assets 1.70% 1.55% 1.76% 1.52%
Return on Average Equity  15.29% 11.51% 15.53% 12.67%
ROAE excluding gains and losses on sales of investment securities and revaluation of deferred tax assets 15.29% 13.67% 15.53% 13.23%
Tier 1 Leverage Ratio (Bank)  10.71% 10.54%
     
Asset Quality Data    
Net Loan Charge-Offs $  -  $  -  $  -  $  -  
Non-Performing Loans $  -  $  -  $  -  $  -  
     
*The information is preliminary unaudited and based on company data available at the time of presentation.

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Source: Truxton Trust Company
 
TRUXTON TRUST