Press Release

Truxton Corporation Reports Third Quarter 2019 Results

Company Release - 10/24/2019 8:30 AM ET

NASHVILLE, Tenn., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Truxton Corporation (OTCPK: TRUX), the parent company for Truxton Trust Company (“Truxton” or “the Bank”) and subsidiaries, announced its operating results for the quarter ended September 30, 2019.  Third quarter net income attributable to common shareholders was $2.6 million or $0.91 per diluted share compared to $2.3 million or $0.82 per diluted share for the same quarter in 2018.  Net income rose by 12% and earnings per diluted share rose by 11% for the quarter.  For the nine months ended September 30, 2019, net income increased by 19% to $7.3 million from $6.1 million in the comparable period in 2018.  For the nine months ended September 30, 2019, earnings per diluted share rose from $2.20 to $2.59, an increase of 18%.

“Truxton experienced record EPS in the quarter,” said Truxton Trust Chairman and CEO Tom Stumb. “Our returns to equity capital are very strong for the banking industry despite our conservative capital structure. This performance reflects the discipline of our experienced team, the attractiveness of our lines of business, and the strength of Nashville, our core market.”

Key Highlights

  • Non-interest income grew to $3.0 million in the third quarter, an increase of 9% from the same period of 2018.  Wealth management services constituted 89% of non-interest income in the quarter ended September 30, 2019. 
  • Loans rose by 10% to $336 million compared to September 30, 2018, and were up 2% compared to December 31, 2018. 
  • Average deposits increased 4% compared to September 30, 2018.  Truxton continues to fund its growth from a single banking location through superior deposit operations service and technology.  As a result, occupancy expenditures and fixed asset investments are a fraction of typical peers.
  • Net interest margin for the third quarter of 2019 was 3.26%.  That represents a decline of 9 basis points from the 3.35% experienced in the quarter ended June 30, 2019, but an increase of 8 basis points from the quarter ended September 30, 2018.  Cost of funds decreased to 0.98% in the third quarter of 2019 from 1.08% for the quarter ended June 30, 2019, but rose from 0.75% for the quarter ended September 30, 2018. 
  • Asset quality remains sound at Truxton.  Truxton had no non-performing assets at September 30, 2019.  Truxton had no charge-offs in the quarter and none in the trailing quarter, nor in the same quarter a year ago. 
  • Allowance for loan losses was $3.4 million, $3.4 million, and $3.1 million as of September 30, 2019, June 30, 2019, and September 30, 2018, respectively.   At those same dates, the bank’s allowance was 1.01%, 1.02%, and 1.02%, respectively, of gross loans outstanding at period end.
  • The Bank’s capital position remains strong.  Tier 1 leverage ratio was 11.31% for September 30, 2019, 11.44% for June 30, 2019, and 10.55% for September 30, 2018.  Book value per common share was $23.28, $22.47, and $19.27 at September 30, 2019, June 30, 2019, and September 30, 2018, respectively.  During the 12 months ended September 30, 2019, Truxton Corporation paid dividends of $0.97 per common share.

About Truxton Trust
Truxton Trust Company is a provider of private banking, wealth management, trust, 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 RelationsMedia Relations 
Andrew MayTamara Schoeplein
615-515-1707615-515-1714 
[email protected] [email protected] 


Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
    
 September 30, 2019*June 30, 2019*September 30, 2018*
ASSETS   
Cash and due from financial institutions$9,038 $7,951 $6,091 
Interest bearing deposits in other financial institutions 32,633  12,712  45,037 
Federal funds sold 1,569  253  4,547 
Cash and cash equivalents 43,240  20,916  55,675 
    
Time deposits in other financial institutions 5,651  12,288  22,992 
Securities available for sale 116,549  102,304  108,965 
    
Gross loans 339,182  335,639  307,803 
Allowance for loan losses (3,411) (3,411) (3,131)
Net loans 335,771  332,228  304,672 
    
Mortgage loans held for sale, net 300  480  - 
Bank owned life insurance 9,918  9,864  9,700 
Restricted equity securities 2,593  2,588  2,572 
Premises and equipment, net 1,684  1,887  477 
Accrued interest receivable 1,704  1,817  1,567 
Deferred tax asset, net 348  321  1,020 
Other assets 3,253  3,115  1,680 
    
Total assets$521,011 $487,808 $509,320 
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Deposits   
Non-interest bearing$125,985 $104,475 $117,411 
Interest bearing 304,966  296,549  315,784 
Total deposits 430,951  401,024  433,195 
    
Federal Home Loan Bank advances 18,647  18,833  19,534 
Federal funds purchased -  -  - 
Other liabilities 7,075  5,988  2,833 
Total liabilities 456,673  425,845  455,562 
    
SHAREHOLDERS' EQUITY   
Additional paid-in capital 29,366  29,066  27,896 
Retained earnings 34,483  32,610  27,783 
Accumulated other comprehensive income (loss) 489  287  (1,921)
    
Total shareholders' equity 64,338  61,963  53,758 
    
Total liabilities and shareholders' equity$521,011 $487,808 $509,320 
    
    
*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
 September 30, 2019* June 30, 2019* September 30, 2018* September 30, 2019* September 30, 2018*
Non-interest income         
Wealth management services$2,694 $2,783 $2,570  $8,150 $7,366
Service charges on deposit accounts 78  74  86   222  258
Securities gains (losses), net 149  70  (8)  221  13
Bank owned life insurance income 55  55  53   163  165
Other 40  10  68   124  146
Total non-interest income 3,016  2,992  2,769   8,880  7,948
          
Interest income         
Loans, including fees$4,007 $4,093 $3,419  $12,021 $10,009
Taxable securities 506  471  437   1,476  1,178
Tax-exempt securities 208  237  234   692  750
Interest bearing deposits 302  161  312   619  425
Federal funds sold 14  7  30   26  38
 Other interest income 25  51  29   108  105
Total interest income 5,062  5,020  4,461   14,942  12,505
          
Interest expense         
Deposits 1,013  1,041  733   3,136  1,656
Short-term borrowings -  9  -   16  9
Long-term borrowings 90  111  87   323  288
Total interest expense 1,103  1,161  820   3,475  1,953
          
Net interest income 3,959  3,859  3,641   11,467  10,552
          
Provision for loan losses 0  55  0   55  57
          
Net interest income after provision for loan losses 3,959  3,804  3,641   11,412  10,495
          
Federal Home Loan Bank advances 6,975  6,796  6,410   20,292  18,443
          
Non interest expense         
Salaries and employee benefits 2,661  2,575  2,504   8,028  7,655
Occupancy 200  207  193   605  566
Furniture and equipment 27  27  28   82  130
Data processing 290  278  280   869  840
Wealth management processing fees 114  110  110   336  351
Advertising and public relations 20  20  23   77  68
Professional services 125  145  137   385  460
FDIC insurance assessments 35  35  35   105  105
Other 279  212  252   684  730
Total non interest expense 3,751  3,609  3,562   11,171  10,905
          
Income before income taxes 3,224  3,187  2,848   9,121  7,538
          
Income tax expense 661  668  569   1,853  1,454
          
Net income$2,563 $2,519 $2,279  $7,268 $6,084
          
Earnings per share:         
Basic$0.93 $0.92 $0.84  $2.65 $2.25
Diluted$0.91 $0.90 $0.82  $2.59 $2.20
*The information is preliminary, unaudited and based on company data available at the time of presentation.  



Truxton Corporation
Selected Quarterly Financial Data
at or for the Three Months Ended
(000's)
(Unaudited)
    
 September 30, 2019*June 30, 2019*September 30, 2018*
    
Per Common Share Data   
Net income attributable to shareholders, per share   
Basic$0.93 $0.92 $0.84 
Diluted$0.91 $0.90 $0.82 
Book value per common share$23.28 $22.47 $19.27 
Tangible book value per common share$23.28 $22.47 $19.27 
Basic weighted average common shares 2,690,981  2,675,283  2,621,440 
Diluted weighted average common shares 2,746,171  2,727,375  2,685,468 
Common shares outstanding at period end, including participating shares 2,763,407  2,758,109  2,705,999 
    
    
Selected Balance Sheet Data   
Tangible common equity (TEC) ratio 12.35% 12.70% 10.55%
Average loans$333,950 $339,174 $301,927 
Average earning assets (1)$490,536 $470,691 $469,731 
Average total assets$516,252 $493,510 $488,607 
Average stockholders' equity$63,455 $60,524 $53,284 
    
    
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) (2) (2) (1)
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%
Federal Home Loan Bank advances 1.01% 1.02% 1.02%
Allowance for loan losses to nonperforming loansNANANA
Net charge offs (recoveries) to average loans -0.00% -0.00% -0.00%
    
    
Capital Ratios (Bank Subsidiary Only)   
Tier 1 leverage 11.31% 11.44% 10.55%
Common equity tier 1 14.93% 15.06% 14.20%
Total risk-based capital 15.81% 15.97% 15.07%
    
Selected Performance Ratios    
Efficiency ratio 57.97% 54.60% 56.24%
Return on average assets (ROA) 1.97% 2.05% 1.85%
Return on average stockholders' equity (ROE) 16.02% 16.69% 16.97%
Return on tangible common equity (ROTCE) 16.02% 16.69% 16.97%
Net interest margin 3.26% 3.35% 3.18%
    
*The information is preliminary, unaudited and based on company data available at the time of presentation. 
    
(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, investment securities and restricted equity 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 
 September 30, 2019*    June 30, 2019* September 30, 2018* 
 Average BalancesRates/ Yields (%)Interest Income/ Expense Average BalancesRates/ Yields (%)Interest Income/ Expense Average BalancesRates/ Yields (%)Interest Income/ Expense
            
Earning assets           
 Loans$333,950 4.76$4,007 $339,175 4.81$4,070 $301,927 4.53$3,437 
 Loan fees$0 0.02$15 $0 0.04$30 $0 0.00$(2)
 Loans with fees$333,950 4.78$4,022 $339,175 4.85$4,100 $301,927 4.48$3,435 
 Mortgage loans held for sale$70 5.30$1 $71 2.99$1 $51 4.71$1 
 Federal funds sold$2,423 2.26$14 $1,042 2.58$7 $5,830 2.00$30 
 Deposits with banks$48,513 2.47$302 $24,747 2.61$161 $54,643 2.27$313 
 Investment securities - taxable$76,620 2.64$506 $72,520 2.60$471 $73,382 2.38$437 
 Investment securities - tax-exempt$28,961 3.88$208 $33,136 4.27$237 $33,898 4.13$234 
 Total earning assets$490,537 4.15$5,053 $470,691 4.34$4,977 $469,731 3.87$4,450 
Non interest earning assets           
 Allowance for loan losses (3,411)    (3,394)    (3,131)  
 Cash and due from banks$7,799    $6,381    $7,268   
 Premises and equipment$1,727    $1,901    $356   
 Accrued interest receivable$1,569    $1,630    $1,315   
 Other real estate$0    $0    $0   
 Other assets$16,152    $16,075    $14,992   
 Unrealized gain (loss) on inv. securities 1,879     226     (1,924)  
 Total assets$516,252    $493,510    $488,607   
Interest bearing liabilities           
 Interest bearing demand$27,779 0.71$50 $25,935 0.71$46 $24,185 0.35$23 
 Savings and money market$348,146 1.04$916 $331,800 1.15$951 $350,288 0.60$440 
 Time deposits - retail$11,930 1.54$46 $11,368 1.35$38 $12,722 0.75$24 
 Time deposits - wholesale$10,585 0.05$1 $7,880 0.31$6 $1,474 1.39$7 
 Total interest bearing deposits$398,440 1.01$1,013 $376,983 1.11$1,041 $388,669 0.59$494 
 Federal Home Loan Bank advances$18,711 1.89$90 $22,339 1.97$111 $19,605 1.76$109 
 Other borrowings$1,463 0.03$0 $2,924 1.27$9 $0 2.33$6 
 Total borrowed funds$20,174 1.75$90 $25,263 1.89$120 $19,605 1.79$115 
 Total interest bearing liabilities$418,614 1.04$1,103 $402,246 1.16$1,161 $408,274 0.67$609 
Net interest rate spread 3.11$3,950  3.18$3,816  3.31$3,841 
 Non-interest bearing deposits$29,269    $27,424    $24,343   
 Other liabilities$4,816    $3,315    $2,606   
 Stockholder's equity$63,455    $60,524    $53,284   
 Total liabilities and stockholder's equity$516,154    $493,509    $488,507   
Cost of funds 0.98   1.08   0.75 
Net interest margin 3.26   3.35   3.18 
            
*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.



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:
     
     
  Nine Months Ended  Nine Months Ended 
 September 30, 2019*  September 30, 2018*
 Average BalancesRates/ Yields (%)Interest Income/ Expense  Average BalancesRates/ Yields (%)Interest Income/ Expense
         
Earning assets        
 Loans$335,318 4.78$11,994  $301,332 4.46$10,030
 Loan fees$0 0.02$62  $0 0.00$5
 Loans with fees$335,318 4.81$12,056  $301,332 4.46$10,035
 Mortgage loans held for sale$69 3.27$2  $30 4.61$1
 Federal funds sold$1,445 2.38$26  $2,526 1.98$38
 Deposits with banks$32,579 2.54$619  $27,737 2.05$425
 Investment securities - taxable$75,518 2.61$1,476  $69,629 2.26$1,178
 Investment securities - tax-exempt$32,198 3.87$692  $36,508 4.09$750
 Total earning assets$477,127 4.23$14,871  $437,762 3.91$12,427
Non interest earning assets        
 Allowance for loan losses (3,387)     (3,114)  
 Cash and due from banks$6,962     $6,322   
 Premises and equipment$1,508     $406   
 Accrued interest receivable$1,596     $1,291   
 Other real estate$0     $0   
 Other assets$16,033     $14,650   
 Unrealized gain (loss) on inv. securities 254      (1,528)  
 Total assets$500,093     $455,789   
Interest bearing liabilities        
 Interest bearing demand$26,758 0.79$158  $26,959 0.42$85
 Savings and money market$339,720 1.12$2,847  $311,957 0.64$1,483
 Time deposits - retail$11,590 1.35$117  $12,460 0.73$68
 Time deposits - wholesale$6,603 0.03$14  $1,878 1.36$19
 Total interest bearing deposits$384,671 1.09$3,136  $353,254 0.63$1,655
 Federal Home Loan Bank advances$21,789 1.95$323  $21,762 1.74$288
 Other borrowings$1,952 1.10$16  $540 2.14$9
 Total borrowed funds$23,741 1.88$339  $22,302 1.75$297
 Total interest bearing liabilities$408,412 1.14$3,475  $375,556 0.07$1,952
Net interest rate spread 3.10$11,396   3.22$10,475
 Non-interest bearing deposits$27,393     $26,340   
 Other liabilities$3,709     $1,789   
 Stockholder's equity$60,545     $52,087   
 Total liabilities and stockholder's equity$500,059     $455,772   
Cost of funds 1.06    0.65 
Net interest margin 3.26    3.32 
         
*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.

TruxtonLogo.jpg

Source: Truxton Trust Company
 
TRUXTON TRUST