Truxton Corporation Reports Fourth Quarter 2019 Results

NASHVILLE, Tenn., Jan. 30, 2020 (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 year and quarter ended December 31, 2019.  Fourth quarter net income attributable to common shareholders was $2.5 million or $0.88 per diluted share compared to $2.1 million or $0.76 per diluted share for the same quarter in 2018.  Net income rose by 17% and earnings per diluted share rose by 16% for the quarter when compared to the fourth quarter of 2018.  For the twelve months ended December 31, 2019, net income increased by 19% to $9.7 million from $8.2 million in 2018.  For the twelve months ended December 31, 2019, earnings per diluted share rose from $2.95 to $3.46, an increase of 17%.

“Truxton had a remarkable 2019,” said Truxton Trust Chairman and CEO Tom Stumb.  “We achieved double-digit loan growth for the year and returned 15.8% on our average equity capital despite very conservative capital ratios.  These profitability levels allowed us to declare $2.00 per share in cash dividends in 2019 including the $1.00 special dividend payable next week.  Truxton’s dedicated staff continued to attract and meet the needs of new clients with complex financial needs.”

Key Highlights

  • Non-interest income grew to $2.8 million in the fourth quarter of 2019, an increase of 7% from the same period of 2018.  Wealth management services constituted 93% of non-interest income in the quarter ended December 31, 2019. 
  • Net loans rose by 10% to $360 million compared to December 31, 2018, and were up 7% compared to September 30, 2019. 
  • Average deposits increased 7% compared to December 31, 2018.  Truxton continues to fund its growth from a single banking location through superior deposit operations service and technology. 
  • Net interest margin for the fourth quarter of 2019 was 3.21%.  That represents a decline of 5 basis points from the 3.26% experienced in the quarter ended September 30, 2019, and a decline of 4 basis points from the quarter ended December 31, 2018.  Cost of funds decreased to 0.95% in the fourth quarter of 2019 from 0.98% for the quarter ended September 30, 2019, but rose from 0.94% for the quarter ended December 31, 2018. 
  • Asset quality remains sound at Truxton.  Truxton had no non-performing assets at December 31, 2019.  Truxton had no charge-offs in the quarter ended December 31, 2019, 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 $3.4 million as of December 31, 2019, September 30, 2019, and December 31, 2018, respectively.  At those same dates, the bank’s allowance was 0.94%, 1.01%, and 1.01%, respectively, of gross loans outstanding at period end.
  • The Bank’s capital position remains strong.  Tier 1 leverage ratio was 11.3% for December 31, 2019, 11.33% for September 30, 2019, and 10.76% for December 31, 2018.  Book value per common share was $22.84, $23.28, and $20.63 at December 31, 2019, September 30, 2019, and December 31, 2018, respectively.  During the twelve months ended December 31, 2019, Truxton Corporation paid dividends of $1.00 per common share and declared a $1.00 per share special dividend to be paid on February 3, 2020.  December 31, 2019 book value reflects the payment of the special dividend which is shown at year end as a “dividend payable” deducted from shareholder’s equity.

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
andrew.may@truxtontrust.comtamara.schoeplein@truxtontrust.com


Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
    
 December 31,
2019*
September 30,
2019*
December 31,
2018
ASSETS   
Cash and due from financial institutions$8,868 $9,038 $7,139 
Interest bearing deposits in other financial institutions 19,519  32,633  3,660 
Federal funds sold 8,808  1,569  6 
Cash and cash equivalents 37,195  43,240  10,805 
    
Time deposits in other financial institutions 5,157  5,651  18,268 
Securities available for sale 116,032  116,549  109,696 
    
Gross loans 363,784  339,182  331,809 
Allowance for loan losses (3,409) (3,411) (3,356)
Net loans 360,375  335,771  328,453 
    
Mortgage loans held for sale, net 350  300  - 
Bank owned life insurance 9,973  9,918  9,755 
Restricted equity securities 2,599  2,593  2,578 
Premises and equipment, net 273  311  429 
Accrued interest receivable 1,842  1,704  1,804 
Deferred tax asset, net 520  348  1,022 
Other assets 4,448  4,626  2,322 
    
Total assets$538,764 $521,011 $485,132 
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Deposits   
Non-interest bearing$119,999 $125,985 $93,464 
Interest bearing 328,077  304,966  311,218 
Total deposits 448,076  430,951  404,682 
    
Federal Home Loan Bank advances 18,411  18,647  19,249 
Federal funds purchased -  -  1,282 
Other liabilities 8,914  7,075  3,525 
Total liabilities 475,401  456,673  428,738 
    
SHAREHOLDERS' EQUITY   
Additional paid-in capital 29,770  29,366  28,527 
Retained earnings 33,511  34,483  29,283 
Accumulated other comprehensive income (loss) 82  489  (1,415)
    
Total shareholders' equity 63,363  64,338  56,395 
    
Total liabilities and shareholders' equity$538,764 $521,011 $485,133 
    
    
*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 Ended
 December 31,
2019*
 September 30,
2019*
 December 31,
2018
 December 31,
2019*
 December 31,
2018
Non-interest income         
Wealth management services$2,596  $2,694 $2,476  $10,746 $9,843 
Service charges on deposit accounts 82   78  86   303  344 
Securities gains (losses), net 0   149  (86)  131  (74)
Bank owned life insurance income 54   55  55   218  220 
Other 57   40  74   271  220 
Total non-interest income 2,789   3,016  2,605   11,669  10,553 
          
Interest income         
Loans, including fees$4,062  $4,007 $3,819  $16,083 $13,828 
Taxable securities 584   506  494   2,060  1,672 
Tax-exempt securities 196   208  232   887  982 
Interest bearing deposits 125   302  231   744  656 
Federal funds sold 8   14  16   34  54 
Other interest income 45   25  51   153  156 
Total interest income 5,020   5,062  4,843   19,961  17,348 
          
Interest expense         
Deposits 984   1,013  940   4,120  2,596 
Short-term borrowings 1   -  2   17  11 
Long-term borrowings 90   90  87   412  374 
Total interest expense 1,075   1,103  1,029   4,549  2,981 
          
Net interest income 3,945   3,959  3,814   15,412  14,367 
          
Provision for loan losses 0   0  226   55  283 
          
Net interest income after provision 3,945   3,959  3,588   15,357  14,084 
for loan losses                 
          
Total Revenue, net 6,734   6,975  6,193   27,026  24,637 
          
Non-interest expense         
Salaries and employee benefits 2,671   2,661  2,683   10,699  10,339 
Occupancy 200   200  202   808  764 
Furniture and equipment 27   27  28   108  157 
Data processing 342   290  295   1,209  1,135 
Wealth management processing fees 126   114  92   462  442 
Advertising and public relations 121   20  43   198  111 
Professional services 211   125  142   596  602 
FDIC insurance assessments (73)  35  19   32  124 
Other 195   279  207   879  942 
Total non-interest expense 3,820   3,751  3,711   14,991  14,616 
          
Income before income taxes 2,914   3,224  2,482   12,035  10,021 
          
Income tax expense 441   661  373   2,293  1,827 
          
Net income$2,473  $2,563 $2,109  $9,742 $8,194 
          
Earnings per share:         
Basic$0.89  $0.93 $0.78  $3.53 $3.02 
Diluted$0.88  $0.91 $0.76  $3.46 $2.95 
*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)
    
 December 31, 2019*September 30, 2019*December 31, 2018
    
Per Common Share Data   
Net income attributable to shareholders, per share   
Basic$0.89$0.93$0.78
Diluted$0.88$0.91$0.76
Book value per common share$22.84$23.28$20.63
Tangible book value per common share$22.84$23.28$20.63
Basic weighted average common shares2,699,7772,690,9812,644,318
Diluted weighted average common shares2,754,1012,746,1712,703,971
Common shares outstanding at period end, including   
participating shares2,774,6552,763,4072,728,975
    
Selected Balance Sheet Data   
Tangible common equity (TEC) ratio11.76%12.35%11.62%
Average loans$348,635$333,950$323,421
Average earning assets (1)$492,829$490,536$475,145
Average total assets$518,902$516,252$492,767
Average stockholders' equity$65,457$63,455$54,756
    
    
Selected Asset Quality Measures   
Nonaccrual loans000
90+ days past due still accruing000
Total nonperforming loans000
Total nonperforming assets000
Net charge offs (recoveries)1(2)(1)
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 loan losses to total loans0.94%1.01%1.01%
Allowance for loan losses to nonperforming loansNANANA
Net charge offs (recoveries) to average loans0.00%0.00%0.00%
    
    
Capital Ratios (Bank Subsidiary Only)   
Tier 1 leverage11.30%11.33%10.76%
Common equity tier 113.70%14.93%14.20%
Total risk-based capital14.51%15.81%15.07%
    
Selected Performance Ratios    
Efficiency ratio55.67%57.97%56.73%
Return on average assets (ROA)1.89%1.97%1.70%
Return on average stockholders' equity (ROE)15.77%16.02%15.53%
Return on tangible common equity (ROTCE)15.77%16.02%15.53%
Net interest margin3.21%3.26%3.25%
    
*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 
 December 31, 2019* September 30, 2019* December 31, 2018 
             
 Average BalancesRates/
Yields (%)
Interest
Income/ Expense
 Average BalancesRates/
Yields
(%)
Interest Income/ Expense Average BalancesRates/
Yields (%)
Interest Income/ Expense 
             
Earning assets            
Loans$348,635 4.60$4,044 $333,950 4.76$4,007 $323,421 4.69$3,811 
Loan fees$0 0.03$24 $0 0.02$15 $0 0.01$10 
Loans with fees$348,635 4.63$4,068 $333,950 4.78$4,022 $323,421 4.70$3,821 
Mortgage loans held for sale$13 3.55$0 $70 5.30$1 $19 3.84$0 
Federal funds sold$1,944 1.66$8 $2,423 2.26$14 $2,464 2.46$15 
Deposits with banks$25,747 1.93$125 $48,513 2.47$302 $38,160 2.41$231 
Investment securities - taxable$89,614 2.61$584 $76,620 2.64$506 $77,923 2.54$494 
Investment securities - tax-exempt$26,876 3.93$196 $28,961 3.88$208 $33,158 4.18$232 
 Total earning assets$492,829 4.07$4,981 $490,537 4.15$5,053 $475,145 4.11$4,793 
Non-interest earning assets            
Allowance for loan losses (3,411)    (3,411)    (3,261)   
Cash and due from banks$8,263    $7,799    $6,664    
Premises and equipment$1,623    $1,727    $325    
Accrued interest receivable$1,600    $1,569    $1,459    
Other real estate$0    $0    $0    
Other assets$16,343    $16,152    $15,331    
Unrealized gain (loss) on inv. securities 1,656     1,879     (2,897)   
 Total assets$518,903    $516,252    $492,766    
Interest-bearing liabilities            
Interest-bearing demand$28,241 0.41$29 $27,779 0.71$50 $25,337 0.44$28 
Savings and money market$349,734 0.84$737 $348,146 1.04$916 $348,923 0.99$868 
Time deposits - retail$14,023 1.83$65 $11,930 1.54$46 $15,268 1.06$41 
Time deposits - wholesale$8,695 6.99$153 $10,585 0.05$1 $1,243 1.16$4 
Total interest-bearing deposits$400,693 0.97$984 $398,440 1.01$1,013 $390,771 0.95$941 
Federal Home Loan Bank advances$18,490 1.89$90 $18,711 1.89$90 $19,345 1.75$87 
Other borrowings$1,417 0.21$1 $1,463 0.03$0 $307 2.64$2 
Total borrowed funds$19,907 1.77$91 $20,174 1.75$90 $19,652 1.77$89 
Total interest-bearing liabilities$420,600 1.01$1,074 $418,614 1.04$1,103 $410,423 0.99$1,029 
Net interest rate spread 3.06$3,907  3.11$3,950  3.12$3,765 
Non-interest-bearing deposits$27,422    $29,269    $24,842    
Other liabilities$5,423    $4,816    $2,746    
Stockholder's equity$65,457    $63,455    $54,756    
 Total liabilities and stockholder's equity$518,902    $516,154    $492,767    
Cost of funds 0.95   0.98   0.94  
Net interest margin 3.21   3.26   3.25  
             
*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: 
 
 
 Twelve Months Ended  Twelve Months Ended 
 December 31, 2019*  December 31, 2018 
          
 Average BalancesRates/
Yields (%)
Interest
Income/
Expense
  Average
Balances
Rates/
Yields (%)
Interest
Income/
Expense
 
          
Earning assets         
Loans$338,675
4.74$16,038
  $306,900
4.52$13,841 
Loan fees$0
0.03$87
  $0
0.00$15 
Loans with fees$338,675
4.76$16,125
  $306,900
4.53$13,856 
Mortgage loans held for sale$55
3.29$2
  $27
4.48$1 
Federal funds sold$1,570
2.16$34
  $2,510
2.10$53 
Deposits with banks$30,857
2.41$744
  $30,364
2.16$656 
Investment securities - taxable$79,071
2.61$2,060
  $71,720
2.33$1,672 
Investment securities - tax-exempt$30,856
3.89$887
  $35,664
4.11$982 
 Total earning assets$481,084
4.19$19,852
  $447,185
3.97$17,220 
Non-interest earning assets         
Allowance for loan losses (3,393)     (3,151)   
Cash and due from banks$7,290     $6,408
   
Premises and equipment$1,537     $386
   
Accrued interest receivable$1,597     $1,334
   
Other real estate$0     $0
   
Other assets$16,111     $14,821
   
Unrealized gain (loss) on inv. securities 607     (1,873)   
 Total assets$504,833     $465,110
   
Interest-bearing liabilities         
Interest bearing demand$27,131 0.69$187
  $26,550
0.43$113 
Savings and money market$342,244 1.05$3,584
  $321,274
0.73$2,351 
Time deposits - retail$12,203 1.49$181
  $13,167
0.83$109 
Time deposits - wholesale$7,131 2.35$167
  $1,718
1.32$23 
Total interest bearing deposits$388,709 1.06$4,119
  $362,709
0.72$2,596 
Federal Home Loan Bank advances$20,957 1.94$412
  $21,153
1.75$374 
Other borrowings$1,817 0.93$17
  $481
2.22$11 
Total borrowed funds$22,774 1.86$429
  $21,634
1.76$385 
Total interest-bearing liabilities$411,483 1.10$4,548
  $384,343
0.77$2,981 
Net interest rate spread 3.09$15,304
   3.19$14,239 
Non-interest bearing deposits$27,400     $25,963
   
Other liabilities$4,141     $2,030
   
Stockholder's equity$61,783     $52,759
   
 Total liabilities and stockholder's equity$504,807     $465,095
   
Cost of funds 1.04    0.73  
Net interest margin 3.25    3.30  
          
*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. 
 
 
 
 
 
 

 

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