STOCK TITAN

Truxton Corporation Reports First Quarter 2023 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Truxton Corporation reported a net income of $4.3 million ($1.47 per diluted share) for Q1 2023, reflecting a 2% increase from the same quarter in 2022. Wealth Management Services revenue declined by only $10,000, while non-interest income rose to $4.5 million, up 2% year-over-year. Loans grew by 1% to $626 million, and deposits dropped by 4% to $771 million compared to year-end 2022. The net interest margin stood at 2.75%, down 8 basis points from Q4 2022, while the cost of funds increased to 2.27%. Asset quality remained strong with no non-performing assets, and the allowance for credit losses was $6 million. The capital position improved, with a Tier 1 leverage ratio of 10.29%. Truxton also declared dividends totaling $1.38 per share, including a special cash dividend of $1.00.

Positive
  • Net income increased to $4.3 million, a 2% rise from Q1 2022.
  • Non-interest income grew to $4.5 million, up 2% year-over-year.
  • Loan portfolio increased by 1% to $626 million.
  • No non-performing assets reported.
  • Tier 1 leverage ratio improved to 10.29%.
Negative
  • Total deposits decreased by 4% from $808 million at year-end 2022.
  • Net interest margin decreased by 8 basis points from Q4 2022.

NASHVILLE, Tenn., April 20, 2023 (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, 2023. First quarter net income attributable to common shareholders was $4.3 million or $1.47 per diluted share compared to $4.2 million or $1.45 per diluted share for the same quarter in 2022. Net income and fully diluted earnings per share for the quarter rose by 2% and 1%, respectively, compared to the first quarter of 2022.

“Truxton performed well in the first quarter of 2023 despite continued financial market turbulence,” said Chairman and CEO Tom Stumb. “In light of recent banking industry turmoil, it is important to highlight that our conservative asset liability management has always been a key pillar of strength for our business. Volatility in stock and bond markets also continues to be a headwind. Wealth Management Services revenue was down only $10 thousand for the quarter compared to first quarter 2022 while many market indices were down more than 10% over the same period. Net interest margin for the quarter held steady year-over-year despite a dramatic shift in the interest rate environment during the same period. The market environment remains challenging, but we continue to seek to serve our shareholders well by striving to serve our clients well.”

Key Highlights

  • Non-interest income, excluding gains and losses on the sale of securities, grew to $4.5 million in the first quarter, an increase of 2% from the fourth quarter of 2022 and 2% higher in comparison to the first quarter of 2022. Wealth management services constituted 94% of non-interest income, excluding those same gains and losses, in the first quarter of 2023 compared to 95% in the fourth quarter of 2022 and 96% in the first quarter of 2022.
  • Loans rose by 1% to $626 million at quarter end compared to $619 million on December 31, 2022 and were up 24% compared to $505 million on March 31, 2022.
  • Total deposits decreased by 4% from $808 million at December 31, 2022, to $771 million at March 31, 2023, and were less than 1% lower in comparison to $778 million at March 31, 2022. Truxton continues to fund its growth from a single banking location led by its commitment to provide what it believes is 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 2023 was 2.75%, a decrease of 8 basis points from the 2.83% experienced in the quarter ended December 31, 2022, and the same as in the quarter ended March 31, 2022. Cost of funds was 2.27% in the first quarter of 2023, up from 1.73% for the quarter ended December 31, 2022, and up from 0.42% for the quarter ended March 31, 2022.
  • Asset quality remains sound at Truxton. Truxton had $0 in non-performing assets on March 31, 2023. Truxton had $12 thousand of net charge-offs in the first quarter of 2023, $2 thousand in recoveries in the trailing quarter, and $0 in the first quarter of 2022.
  • Truxton adopted the mandated Current Expected Credit Loss accounting methodology for calculating its allowance for credit losses effective January 1, 2023. Allowance for credit losses, excluding $507 thousand for unfunded commitments, was $6.0 million at quarter end March 31, 2023, compared to Allowance for loans losses of $5.8 million at December 31, 2022, and $4.9 million at March 31, 2022. For the same three periods, the Bank’s allowance was 0.95%, 0.93%, and 0.97%, respectively, of gross loans outstanding at period end.
  • The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.29% at March 31, 2023, compared to 9.78% at December 31, 2022, and 9.48% at March 31, 2022. Book value per common share was $25.71, $25.39, and $25.77 at March 31, 2023, December 31, 2022, and March 31, 2022, respectively. During the three months ended March 31, 2023, Truxton Corporation paid dividends of $1.38 per common share, inclusive of a $1.00 special cash dividend paid on March 25, 2023.

About Truxton Trust
Truxton Trust Company is a provider of private banking, wealth management, trust, capital markets 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
Austin BranstetterSwan Burrus
615-250-0783615-250-0773
austin.branstetter@truxtontrust.comswan.burrus@truxtontrust.com


Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
    
 March 31, 2023*December 31, 2022*March 31, 2022*
ASSETS   
Cash and due from financial institutions$8,955 $5,405 $8,837 
Interest bearing deposits in other financial institutions 4,322  1,094  42,375 
Federal funds sold 10  -  2,985 
Cash and cash equivalents 13,288  6,499  54,197 
    
Time deposits in other financial institutions 1,260  3,833  2,284 
Securities available for sale 253,372  257,257  293,588 
    
Gross loans, excluding Paycheck Protection Program 625,626  618,847  504,235 
Allowance for credit losses** (5,961) (5,761) (4,881)
Paycheck Protection Program Loans 90  101  409 
Net loans 619,754  613,187  499,763 
    
Bank owned life insurance 10,644  10,592  10,439 
Restricted equity securities 5,391  3,227  3,250 
Premises and equipment, net 222  209  267 
Accrued interest receivable 9,752  3,512  2,479 
Deferred tax asset, net 6,842  7,161  3,107 
Other assets 1,369  11,803  5,790 
    
Total assets$921,894 $917,280 $875,164 
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Deposits   
Non-interest bearing$151,956 $153,870 $180,743 
Interest bearing 619,542  653,880  597,310 
Total deposits 771,499  807,750  778,053 
    
Federal funds purchased 2,417  4,933  - 
Swap counterparty cash collateral 2,860  4,090  - 
Federal Home Loan Bank advances 9,500  4,500  4,500 
Federal Reserve Bank Term Funding Program advances 40,000  -  - 
Subordinated debt 14,752  14,727  14,653 
Other liabilities 6,078  7,904  2,789 
Total liabilities 847,106  843,904  799,995 
    
SHAREHOLDERS' EQUITY   
Common stock, $0.10 par value$289 $289 $287 
Additional paid-in capital 31,336  31,107  32,113 
Retained earnings 59,281  59,492  49,946 
Accumulated other comprehensive income (loss) (16,118) (17,512) (7,177)
    
Total shareholders' equity 74,788  73,376  75,169 
    
Total liabilities and shareholders' equity$921,894 $917,280 $875,164 
    
*The information is preliminary, unaudited and based on company data available at the time of presentation.
**Prior quarter data shows Allowance for loan losses. Truxton adopted the Current Expected Credit Loss methodology as of January 1, 2023. The total excludes reserve for credit losses on unfunded commitments of $507, recorded in Other liabilities, as of March 31, 2023.


Truxton Corporation
Consolidated Statements of Net Income
(000's)
(Unaudited)
       
 Three Months Ended 
 March 31, 2023* December 31, 2022* March 31, 2022* 
Non-interest income      
Wealth management services$4,171 $4,126  $4,182  
Service charges on deposit accounts 136  111   99  
Securities gains (losses), net 58  (588)  (18) 
Bank owned life insurance income 52  51   50  
Other 91  63   48  
Total non-interest income 4,508  3,763   4,361  
       
Interest income      
Loans, including fees$8,487 $8,017  $4,838  
Taxable securities 1,954  1,620   1,114  
Tax-exempt securities 233  373   396  
Interest bearing deposits 61  303   31  
Federal funds sold 11  26   1  
Other interest income 65  59   16  
Total interest income 10,812  10,398   6,396  
       
Interest expense      
Deposits 4,216  3,485   586  
Short-term borrowings 58  42   194  
Long-term borrowings 237  72   23  
Subordinated debentures 194  194   1  
Total interest expense 4,705  3,793   804  
       
Net interest income 6,107  6,605   5,592  
       
Provision for credit losses 59  9   105  
       
Net interest income after provision for loan losses 6,048  6,596   5,487  
       
Total revenue, net 10,5560 10,359   9,848  
       
Non interest expense      
Salaries and employee benefits 3,766  3,823   3,511  
Occupancy 286  278   252  
Furniture and equipment 25  25   32  
Data processing 427  400   366  
Wealth management processing fees 176  179   165  
Advertising and public relations 46  78   32  
Professional services 116  177   166  
FDIC insurance assessments 75  55   57  
Other 397  196   242  
Total non interest expense 5,314  5,211   4,823  
       
Income before income taxes 5,242  5,148   5,025  
       
Income tax expense 951  1,098   798  
       
Net income$4,291 $4,050  $4,227  
       
Earnings per share:      
Basic$1.48 $1.40  $1.46  
Diluted$1.47 $1.40  $1.45  
*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, 2023*December 31, 2022*March 31, 2022*
    
Per Common Share Data   
Net income attributable to shareholders, per share   
Basic$1.48$1.40$1.46
Diluted$1.47$1.40$1.45
Book value per common share$25.71$25.39$25.77
Tangible book value per common share$25.71$25.39$25.77
Basic weighted average common shares2,820,8922,810,7022,793,014
Diluted weighted average common shares2,830,5042,822,5382,807,866
Common shares outstanding at period end2,908,4832,887,3622,917,044
    
    
Selected Balance Sheet Data   
Tangible common equity (TCE) ratio8.11%8.00%8.59%
Average Loans$622,012$616,609$498,755
Average earning assets (1)$912,603$939,763$840,952
Average total assets$918,440$943,900$866,432
Average stockholders' equity$75,557$70,128$83,009
    
    
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)$12($2)$0
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 credit losses to total loans**0.95%0.93%0.97%
Net charge offs to average loans0.00%0.00%0.00%
    
    
Capital Ratios (Bank Subsidiary Only)   
Tier 1 leverage10.29%9.78%9.48%
Common equity tier 113.79%13.36%14.00%
Total risk-based capital14.74%14.20%14.83%
    
Selected Performance Ratios    
Efficiency ratio51.32%48.55%48.46%
Return on average assets (ROA)1.89%1.70%1.98%
Return on average stockholders' equity (ROE)23.05%22.92%20.64%
Return on average tangible common equity (ROTCE)23.05%22.92%20.64%
Net interest margin2.75%2.83%2.75%
    
*The information is preliminary, unaudited and based on company data available at the time of presentation.
**Prior quarter data shows Allowance for loan losses. Truxton adopted the Current Expected Credit Loss methodology as of January 1, 2023. March 31, 2023 ratio does not include $507 reserve for unfunded commitments
(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, and investment 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, 2023* December 31, 2022* March 31, 2022*
            
 Average
Balances
Rates/ Yields (%)Interest Income/ Expense Average
Balances
Rates/ Yields (%)Interest Income/ Expense Average
Balances
Rates/ Yields (%)Interest Income/ Expense
            
Earning Assets           
Loans$622,012 5.46$8,376 $616,609 5.01$7,905 $498,755 3.73$4,586
Loan fees$0 0.07$111 $0 0.07$112 $0 0.20$252
Loans with fees$622,012 5.53$8,487 $616,609 5.16$8,017 $498,755 3.93$4,837
Mortgage loans held for sale$0 0.00$0 $0 0.00$0 $61 3.72$1
Federal funds sold$866 5.15$11 $2,688 3.76$26 $1,735 0.17$1
Deposits with banks$11,749 4.38$127 $31,462 3.82$303 $34,026 0.37$31
Investment securities - taxable$237,601 3.29$1,954 $228,108 2.84$1,620 $239,635 1.86$1,114
Investment securities - tax-exempt$40,376 3.45$233 $60,897 3.31$372 $66,739 3.21$396
      Total Earning Assets$912,603 4.84$10,812 $939,764 4.43$10,338 $840,952 3.13$6,380
Non interest earning assets           
Allowance for loan losses (6,279)    (5,783)    (4,776)  
Cash and due from banks$6,547    $6,871    $8,046   
Premises and equipment$202    $224    $256   
Accrued interest receivable$2,843    $2,935    $2,065   
Other real estate$0    $0    $0   
Other assets$28,601    $30,251    $20,519   
Unrealized gain (loss) on inv. securities (26,077)    (30,362)    (630)  
      Total Assets$918,440    $943,900    $866,432   
Interest bearing liabilities           
Interest bearing demand$366,260 2.80$2,529 $380,638 2.23$2,140 $37,019 0.32$29
Savings and money market$127,422 1.70$533 $142,369 1.44$515 $68,248 0.33$523
Time deposits - retail$18,256 1.93$87 $24,280 1.41$86 $10,734 0.48$13
Time deposits - wholesale$133,704 3.24$1,067 $128,619 2.29$744 $39,793 0.22$21
Total interest bearing deposits$645,642 2.65$4,216 $675,906 2.05$3,485 $725,793 0.33$586
Federal Home Loan Bank advances$16,844 4.09$172 $9,957 2.85$72 $6,278 1.48$23
Subordinated debt$15,001 5.17$194 $14,827 5.12$194 $14,863 5.22$194
Other borrowings$11,451 4.29$123 $4,760 4.33$42 $882 1.23$1
Total borrowed funds$43,296 4.52$489 $29,544 4.08$308 $22,023 3.96$218
      Total interest bearing liabilities$688,938 2.77$4,705 $705,450 2.13$3,793 $747,817 0.43$804
Net interest rate spread 2.08$6,107  2.30$6,545  2.70$5,576
Non-interest bearing deposits$150,259    $163,653    $31,724   
Other liabilities$3,686    $4,671    $3,882   
Stockholder's equity$75,557    $70,128    $83,009   
      Total Liabilities and Stockholder's Equity$918,440    $943,902    $866,432   
Cost of funds 2.27   1.73   0.42 
Net interest margin 2.75   2.83   2.75 
            
*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.  
            
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.

FAQ

What were Truxton Corporation's net income results for Q1 2023?

Truxton Corporation reported a net income of $4.3 million for Q1 2023.

How much was Truxton's net interest margin in Q1 2023?

The net interest margin for Truxton in Q1 2023 was 2.75%.

Did Truxton Corporation's deposits increase or decrease in Q1 2023?

Total deposits at Truxton decreased by 4% in Q1 2023.

What is Truxton Corporation's Tier 1 leverage ratio as of March 31, 2023?

As of March 31, 2023, Truxton's Tier 1 leverage ratio was 10.29%.

How much did Truxton pay in dividends during Q1 2023?

Truxton Corporation paid dividends totaling $1.38 per share in Q1 2023.

TRUXTON CORP

OTC:TRUX

TRUX Rankings

TRUX Latest News

TRUX Stock Data

214.09M
2.89M
0.66%
Banks - Regional
Financial Services
Link
United States of America
Nashville