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CST: 17/11/2019 03:04:56   

Truxton Corporation Reports First Quarter 2019 Results

212 Days ago

NASHVILLE, Tenn., April 18, 2019 (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, 2019.  First quarter net income attributable to common shareholders was $2.2 million or $0.78 per share compared to $1.8 million or $0.64 per share for the same quarter in 2018.  Net income rose by 25% for the quarter while earnings per share rose by 22%.

“We are very pleased with the way that 2019 has begun, reflecting the dedication and hard work of the Truxton team,” stated Chairman and CEO Tom Stumb.  “Our earnings grew because more clients entrusted us with more of their most critical financial affairs. They appreciate our attentive service and deep expertise in delivering private banking and wealth management.  Nashville, our principal market, continues to be one of the strongest in the United States.”

Key Highlights

  • Non-interest income grew to $2.9 million in the first quarter, an increase of 10% from the fourth quarter of 2018 and 13% for the first quarter of 2018.  Wealth management services constituted 93% of non-interest income. 
  • Loans rose by 11% to $339 million compared to March 31, 2018 and were up 2% compared to December 31, 2018.  First quarter new loan production was $18.0 million.  New loans in the quarter consisted of 59% commercial real estate, 36% consumer (including 1-4 family residential), and 5% commercial and industrial.  Loans produced in the quarter had an average yield of 5.4%.
  • Total deposits grew by 2% from December 31, 2018, and by 12% from March 31, 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 first quarter of 2019 was 3.23%.  That represents a decrease of two basis points from the 3.25% experienced in the quarter ended December 31, 2018, and a decline of 15 basis points from the quarter ended March 31, 2018.  Cost of funds rose to 1.14% in the first quarter of 2019 from 0.94% for the quarter ended December 31, 2018, and 0.55% for the quarter ended March 31, 2018.  After a long period during which deposit cost lagged the rise in Fed Funds, Truxton is seeing pressure on rates. 
  • Asset quality remains sound at Truxton.  Truxton had no non-performing assets at March 31, 2019.  Truxton had no charge-offs in the quarter and none in the trailing quarter, nor in the same quarter a year ago.  The Bank also had no “Other Real-estate Owned” for the three periods mentioned above. 
  • Provision for loan losses was $3.36 million, $3.36 million, and $3.12 million for the March 31, 2019, December 31, 2018, and March 31, 2018, quarters, respectively.   For the three periods, the bank’s allowance was 0.99%, 1.01%, and 1.03%, of gross loans outstanding at period end, respectively.
  • Tax expense increased by 40% from the December 31, 2018 quarter and by 29% from the March 31, 2018 period.  Effective tax rate was low in the final quarter of 2018 because of certain loans, funded late in the year, for which Truxton receives a direct credit against state income tax based on the year end balance of the loan.  Truxton believes that the effective tax rate of approximately 19% of pretax net income will persist under current state and federal law. Truxton has several sources of lightly taxed income including yield on bank-owned life insurance, the earnings of the bank’s captive insurance company, and the interest income from the bank’s tax-exempt bond portfolio that cause its effective rate to be below the combined statutory rates.
  • The bank’s capital position remains to be strong.  Tier 1 leverage ratio was 11.15% for March 31, 2019, 10.76% for December 31, 2018, and 11.20% for March 31, 2018.  Book value per common share was $21.52, $20.63, and $18.85 for March 31, 2019, December 31, 2018, and March 31, 2018, respectively.  During the 12 months ended March 31, 2019, Truxton Corporation paid dividends of $0.91 per common share.

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
Andrew May 
615-515-1707 
andrew.may@truxtontrust.com
  Media Relations
Tamara Schoeplein
615-515-1714
tamara.schoeplein@truxtontrust.com


Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
       
  March 31,
2019*
December
2018
March 31,
2018*
ASSETS      
Cash and due from financial institutions $   5,349   $   7,139   $   5,616  
Interest bearing deposits in other financial institutions     8,061       3,660       2,797  
                   
Federal funds sold     120       6       2,158  
Cash and cash equivalents     13,530       10,805       10,571  
       
Time deposits in other financial institutions     14,280       18,268       7,809  
Securities available for sale     111,608       109,696       104,134  
       
Gross loans     339,176       331,809       304,584  
Allowance for loan losses     (3,356 )     (3,356 )     (3,123 )
Net loans     335,820       328,453       301,461  
       
Bank owned life insurance     9,809       9,755       9,590  
Restricted equity securities     2,583       2,578       2,560  
Premises and equipment, net     383       429       631  
Accrued interest receivable     1,883       1,804       1,445  
Deferred tax asset, net     653       1,022       716  
Other assets     3,497       2,323       1,205  
       
Total assets $   494,046   $   485,133   $   440,122  
       
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Deposits      
Non-interest bearing $   107,248   $   93,464   $   106,774  
Interest bearing     304,152       311,218       261,073  
Total deposits     411,400       404,682       367,847  
       
Federal Home Loan Bank advances     19,090       19,249       20,027  
Federal Funds purchased     -       1,282       -  
Other liabilities     4,263       3,525       1,159  
Total liabilities     434,753       428,738       389,033  
       
SHAREHOLDERS' EQUITY      
Additional paid-in capital     28,882       28,527       27,514  
Retained earnings     30,783       29,283       24,647  
Accumulated other comprehensive income (loss)     (372 )     (1,415 )     (1,072 )
       
Total shareholders' equity        59,293       56,395       51,089  
       
Total liabilities and shareholders' equity  $   494,046   $   485,133   $   440,122  
       
       
*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
  March 31,
2019*
  December 31,
2018 
  March 31,
2018*
  March 31,
2019*
  March 31,
2018
Non-interest income                
Wealth management services $   2,672   $   2,476     $   2,366   $   2,672   $   2,366
Service charges on deposit accounts   70     86       85     70     85
Securities gains (losses), net   2     (86 )         2    
Bank owned life insurance income   54     55       54     54     54
Other   74     74       41     74     41
Total non-interest income   2,872     2,605       2,546     2,872     2,546
                   
Interest income                  
Loans, including fees $   3,921   $   3,819     $   3,166   $   3,921   $   3,166
Taxable securities   498     494       380     498     380
Tax-exempt securities   247     232       265     247     265
Interest bearing deposits   156     231       52     156     52
Federal funds sold   5     16       3     5     3
 Other interest income   32     51       28     32    
Total interest income   4,859     4,843       3,894     4,859     3,866
                   
Interest expense                  
Deposits     1,082       940         428       1,082       428
Short-term  borrowings     7       2         3       7       3
Long-term  borrowings   121     87       91     121     91
Total interest expense   1,210     1,029       522     1,210     522
                   
Net interest income   3,649     3,814       3,372     3,649     3,344
                   
Provision for loan losses   0     226       49     0     49
                   
Net interest income after provision for loan losses   3,649     3,588       3,323     3,649     3,295
                   
Total revenue, net   6,521     6,193       5,869     6,521     5,841
                   
Non interest expense                  
Salaries and employee benefits   2,793     2,683       2,512     2,793     2,512
Occupancy   197     202       183     197     183
Furniture and equipment   27     28       56     27     56
Data processing   299     295       277     299     277
Wealth management processing fees   112     92       129     112     129
Advertising and public relations   38     43       30     38     30
Professional services   115     142       147     115     147
FDIC insurance assessments   35     19       35     35     35
Other   194     207       308     194     308
Total non interest expense   3,810     3,711       3,677     3,810     3,677
                   
Income before income taxes   2,711     2,482       2,192     2,711     2,164
                   
Income tax expense   523     373       406     523     406
                   
Net income $   2,188   $   2,109     $   1,786   $   2,188   $   1,758
                   
Earnings per share:                   
Basic $ 0.80   $   0.78     $   0.65       $   0.65
Diluted $ 0.78   $   0.76     $   0.64       $   0.64
*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)
       
  March 31, 2019* December 31, 2018  March 31, 2018*
       
Pre Common Share Data      
Net income attributable to shareholders, per share      
Basic $0.80 $0.78 $0.65
Diluted  $0.78 $0.76 $0.64
Book value per common share $21.52 $20.67 $18.86
Tangible book value per common share $21.52 $20.67 $18.86
Basic weighted average comm shares 2,677,947 2,644,318 2,618,266
Diluted weighted average common shares 2,729,774 2,703,971 2,679,397
Common shares outstanding at period end 2,754,788 2,728,975 2,708,659
       
       
Selected Balance Sheet Data      
Tangible common equity (TEC) ratio 12.00% 11.62% 11.61%
Average Loans $332,819 $323,421 $294,510
Average earning assets (1) $469,928 $475,145 $416,933
Average total assets $490,230 $492,767 $434,845
Average stockholders' equity $57,593 $54,756 $51,034
       
       
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) (1) (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%
Allowance for loan losses to total loans 0.99% 1.01% 1.03%
Allowance for loan losses to nonperforming loans NA NA NA
Net charge offs (recoveries) to average loans 0.00% 0.00% 0.00%
       
       
Capital Ratios (Bank Subsidiary Only)      
Tier 1 leverage 11.15% 10.76% 11.12%
Common equity tier 1 14.43% 14.30% 14.03%
Total risk-based capital 15.32% 15.21% 14.95%
       
Selected Performance Ratios        
Efficiency ratio 58.53% 56.73% 64.66%
Return on average assets (ROA) 1.81% 1.70% 1.64%
Return on average stockholders' equity (ROE) 15.41% 15.29% 13.97%
Return on tangible common equity (ROTCE) 15.41% 15.29% 13.97%
Net interest margin 3.23% 3.25% 3.38%
     
*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
  March 31, 2019*   December 31, 2018   March 31, 2018*
                       
  Average
Balances
Rates/
Yields
(%)
Interest
Income/
Expense
  Average
Balances
Rates/
Yields
(%)
Interest
Income/
Expense
  Average
Balances
Rates/
Yields
(%)
Interest
Income/
Expense
                       
Earning Assets                      
Loans $332,819 4.77 $3,917   $323,421 4.69 $3,811   $294,510 4.37 $3,167
Loan fees $0 0.02 $17   $0 0.01 $10   $0 0.00 $4
Loans with fees $332,819 4.79 $3,935   $323,421 4.70 $3,821   $294,510 4.38 $3,171
Mortgage loans held for sale $66 1.44 $0   $19 3.84 $0   $0 0.00 $0
Federal funds sold $851 2.48 $5   $2,464 2.46 $15   $962 1.44 $3
Deposits with banks $24,211 2.61 $156   $38,160 2.41 $231   $14,099 1.49 $52
Investment securities - taxable $77,423 2.57 $498   $77,923 2.54 $494   $68,520 2.22 $380
Investment securities - tax-exempt $34,558 4.26 $247   $33,158 4.18 $232   $38,842 4.07 $265
Total Earning Assets $469,928 4.27 $4,841   $475,145 4.11 $4,794   $416,933 3.89 $3,871
Non interest earning assets                      
Allowance for loan losses (3,356)       (3,261)       (3,080)    
Cash and due from banks $6,693       $6,664       $6,017    
Premises and equipment $300       $325       $464    
Accrued interest receivable $1,588       $1,459       $1,242    
Other real estate $0       $0       $0    
Other assets $16,456       $15,331       $14,121    
Unrealized gain (loss) on inv. securities (1,379)       (2,897)       (853)    
Total Assets $490,230       $492,767       $434,845    
Interest bearing liabilities                      
Interest bearing demand $26,545 0.95 $62   $25,337 0.44 $28   $30,603 0.39 $29
Savings and Money Market $339,115 1.17 $981   $348,923 0.99 $868   $289,647 0.52 $373
Time deposits - Retail $11,465 1.14 $32   $15,268 1.06 $41   $11,932 0.62 $18
Time Deposits - Wholesale $1,243 2.20 $7   $1,243 1.16 $4   $2,041 1.45 $7
Total interest bearing deposits $378,368 1.16 $1,082   $390,771 0.95 $940   $334,222 0.52 $428
Federal home Loan Bank advances $24,378 2.00 $122   $19,345 1.75 $87   $21,208 1.72 $91
Other borrowings $884 3.08 $7   $307 2.64 $2   $572 1.78 $3
Total borrowed funds $25,262 2.03 $128   $19,652 1.77 $89   $21,780 1.72 $94
Total interest bearing liabilities $403,631 1.21 $1,210   $410,423 0.99 $1,029   $356,003 0.59 $522
Net interest rate spread   3.06 $3,631     3.12 $3,765     3.30 $3,349
Non-interest bearing deposits $25,445       $24,842       $26,437    
Other liabilities $3,560       $2,746       $1,387    
Stockholder's equity $57,593       $54,756       $51,034    
Total Liabilities and Stockholder's Equity $490,228       $492,767       $434,861    
Cost of funds   1.14       0.94       0.55  
Net interest margin   3.23       3.25       3.38  
                       
*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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