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CST: 19/11/2019 00:08:11   

Truxton Corporation Reports Third Quarter 2019 Results

25 Days ago

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


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 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   11.31 %   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 Balances Rates/ Yields (%) Interest Income/ Expense   Average Balances Rates/ Yields (%) Interest Income/ Expense   Average Balances Rates/ 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 Balances Rates/ Yields (%) Interest Income/ Expense     Average Balances Rates/ 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.

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