Truxton Corporation Reports First Quarter 2025 Results

Rhea-AI Summary

Truxton (TRUX) reported strong Q1 2025 financial results with net income of $5.1 million, or $1.75 per diluted share, marking a 17% increase from Q1 2024. Key performance highlights include:

- Net Interest Income grew 18% year-over-year
- Non-interest income reached $6.4 million, up 23% from Q1 2024
- Wealth revenue increased 8% year-over-year to $5.3 million
- Loans grew 6% to $702 million compared to Q1 2024
- Total deposits surged 21% to $1.03 billion year-over-year
- Net interest margin improved to 2.90%, up from 2.62% in Q1 2024

The company maintained strong capital position with a Tier 1 leverage ratio of 10.46% and paid dividends of $1.50 per share, including a $1.00 special dividend. Additionally, TRUX repurchased 5,000 shares at an average price of $80.00.

Positive

• Net income increased 17% year-over-year to $5.1 million
• Non-interest income grew 23% to $6.4 million
• Total deposits increased 21% to $1.03 billion
• Net interest margin improved by 28 basis points to 2.90%
• Cost of funds decreased to 2.91% from 3.33% year-over-year
• Special dividend of $1.00 per share distributed to shareholders

Negative

• Share repurchase program at $80.00 per share reduces cash reserves

NASHVILLE, Tenn., April 24, 2025 (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, 2025. First quarter net income attributable to common shareholders was $5.1 million, or $1.75 per diluted share, compared to $4.3 million, or $1.48 per diluted share, for the same quarter in 2024. Net income and fully diluted earnings per share for the quarter rose by 17% and 18%, respectively, compared to the first quarter of 2024.

“We are pleased to start 2025 with another quarter of financial growth lead by our core businesses,” said Chairman and CEO Tom Stumb. “Net Interest Income increased by 18% compared to the first quarter of 2024 while non-interest income increased by 23%. We achieved another quarterly earnings high-water mark while continuing to invest in technology and human capital to better serve our clients.”

Key Highlights

• Non-interest income totaled $6.4 million in the first quarter of 2025, which was $657 thousand higher than the fourth quarter of 2024 and $1.2 million over the first quarter of 2024. Wealth revenue in the first quarter of 2025 was $5.3 million, up 2% from the fourth quarter of 2024 and 8% from the first quarter of 2024. Other non-interest income was elevated due to capital advisory fee revenue associated with a successful sell-side engagement.
• Loans increased by 5% to $702 million at quarter end compared to $670 million on December 31, 2024, and were up 6% compared to $660 million on March 31, 2024.
• Total deposits increased by 19% from $866 million at December 31, 2024, to $1.03 billion at March 31, 2025, and were 21% higher in comparison to $850 million at March 31, 2024. 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.
• Net interest margin for the first quarter of 2025 was 2.90%, an increase of 11 basis points from the 2.79% experienced in the quarter ended December 31, 2024, and an increase of 28 basis points from the 2.62% in the quarter ended March 31, 2024. Cost of funds was 2.91% in the first quarter of 2025, down from 3.08% for the quarter ended December 31, 2024, and down from 3.33% for the quarter ended March 31, 2024.
• Allowance for credit losses, excluding that for unfunded commitments, was $6.7 million at quarter end March 31, 2025, compared to $6.4 million at December 31, 2024, and $6.3 million at March 31, 2024. For each of those three periods, such allowance amounts were 0.96% of gross loans outstanding at period end. For the same three periods, the Bank’s allowance for unfunded commitments was $589 thousand, $483 thousand, and $374 thousand, respectively.
• The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.46% at March 31, 2025, compared to 10.63% at December 31, 2024, and 10.53% at March 31, 2024. Book value per common share was $34.46, $34.42, and $30.62 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
• During the three months ended March 31, 2025, Truxton Corporation paid dividends of $1.50 per common share, inclusive of a $1.00 special cash dividend, and repurchased 5,000 shares of its common stock for $400 thousand in aggregate, or an average price of $80.00 per share.
  

About Truxton
Truxton is a premier provider of wealth, banking, 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 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 Austin Branstetter  615-250-0783   austin.branstetter@truxtontrust.com

Media Relations Swan Burrus 615-250-0773 swan.burrus@truxtontrust.com

Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
	March 31, 2025*			December 31, 2024			March 31, 2024*
ASSETS
Cash and due from financial institutions	$	10,704		$	4,225		$	4,909
Interest bearing deposits in other financial institutions		24,887			25,698			34,361
Federal funds sold		10,231			4,054			6,733
Cash and cash equivalents		45,822			33,977			46,003
Time deposits in other financial institutions		-			245			490
Securities available for sale		414,190			258,322			256,517
Gross loans, excluding Paycheck Protection Program		701,660			669,962			659,622
Allowance for credit losses**		(6,708	)		(6,433	)		(6,324	)
Paycheck Protection Program Loans		-			20			48
Net loans		694,952			663,549			653,346
Bank owned life insurance		16,863			16,722			10,865
Restricted equity securities		3,718			2,272			1,822
Premises and equipment, net		3,176			3,293			2,089
Accrued interest receivable		4,989			4,567			4,522
Deferred tax asset, net		5,297			5,257			5,576
Other assets		14,440			15,577			16,484
Total assets	$	1,203,447		$	1,003,781		$	997,714
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$	127,851		$	126,016		$	126,838
Interest bearing	$	900,489		$	740,406		$	723,645
Total deposits		1,028,340			866,422			850,483
Federal funds purchased		-			-			-
Swap counterparty cash collateral		2,790			4,230			5,570
Federal Home Loan Bank advances		45,000			8,250			3,250
Federal Reserve Bank borrowings		2,400			-			22,700
Subordinated debt		14,439			14,426			14,514
Other liabilities		11,154			11,747			11,706
Total liabilities		1,104,123			905,075			908,223
SHAREHOLDERS' EQUITY
Common stock, $0.10 par value	$	284		$	286		$	290
Additional paid-in capital		28,957			28,945			31,881
Retained earnings		75,396			61,316			65,035
Accumulated other comprehensive income (loss)		(10,365	)		(10,252	)		(12,055	)
Net Income	$	5,052		$	18,411		$	4,340
Total shareholders' equity		99,324			98,706			89,491
Total liabilities and shareholders' equity	$	1,203,447		$	1,003,781		$	997,714
*The information is preliminary, unaudited and based on company data available at the time of presentation. **Truxton adopted the Current Expected Credit Loss methodology as of January 1, 2023. The total excludes reserve for credit losses on unfunded commitments recorded in Other liabilities.

Truxton Corporation
Consolidated Statements of Net Income
(000's)
(Unaudited)
	Three Months Ended
	March 31, 2025*			December 31, 2024*				March 31, 2024*
Non-interest income
Wealth management services	$	5,338		$	5,242			$	4,907
Capital advisory fees		555			70				40
Service charges on deposit accounts		45			85				91
Securities gains (losses), net		0			(122	)			0
Bank owned life insurance income		142			124				58
Other		297			321				68
Total non-interest income		6,377			5,720				5,164
Interest income
Loans, including fees	$	10,378		$	10,354			$	10,357
Taxable securities		3,371			3,039				2,599
Tax-exempt securities		182			217				188
Interest bearing deposits		331			348				231
Federal funds sold		34			75				41
Total interest income		14,296			14,033				13,414
Interest expense
Deposits		6,599			6,798				6,450
Short-term borrowings		60			90				618
Long-term borrowings		199			85				15
Subordinated debentures		188			188				188
Total interest expense		7,046			7,161				7,270
Net interest income		7,250			6,872				6,144
Provision for credit losses		390			145				(6	)
Net interest income after provision for loan losses		6,860			6,727				6,150
Total revenue, net		13,237			12,447				11,314
Non interest expense
Salaries and employee benefits		5,127			4,635				4,076
Occupancy		351			326				453
Furniture and equipment		109			107				4
Data processing		407			282				418
Wealth management processing fees		215			195				214
Advertising and public relations		53			96				34
Professional services		222			247				209
FDIC insurance assessments		108			33				190
Other		391			291				278
Total non interest expense		6,983			6,212				5,877
		0
Income before income taxes		6,254			6,235				5,438
Income tax expense		1,202			1,242				1,104
Net income	$	5,052		$	4,993			$	4,334
Earnings per share:
Basic	$	1.75		$	1.74			$	1.49
Diluted	$	1.75		$	1.74			$	1.48
*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.

Truxton Corporation
Selected Quarterly Financial data
At Or For The Three Months Ended
(000's)
(Unaudited)
	March 31, 2024*	December 31, 2024*	March 31, 2024*
Per Common Share Data
Net income attributable to shareholders, per share
Basic	$1.75	$1.74	$1.49
Diluted	$1.75	$1.74	$1.48
Book value per common share	$34.46	$34.42	$30.62
Tangible book value per common share	$34.46	$34.42	$30.62
Basic weighted average common shares	2,793,834	2,787,805	2,831,217
Diluted weighted average common shares	2,797,388	2,792,363	2,838,003
Common shares outstanding at period end	2,882,241	2,867,850	2,922,761
Selected Balance Sheet Data
Tangible common equity (TCE) ratio	8.25%	9.83%	8.97%
Average Loans	$691,360	$667,957	$656,790
Average earning assets (1)	$1,047,778	$998,861	$958,138
Average total assets	$1,085,506	$1,025,415	$970,228
Average shareholders' equity	$99,923	$97,026	$89,441
Selected Asset Quality Measures
Nonaccrual loans	$0	$0	$0
90+ days past due still accruing	$0	$11	$0
Total nonperforming loans	$0	$11	$0
Total nonperforming assets	$0	$11	$0
Net charge offs (recoveries)	$8	$4	$11
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 credit losses to total loans**	0.96%	0.96%	0.96%
Net charge offs to average loans	0.00%	0.00%	0.00%
Capital Ratios (Bank Subsidiary Only)
Tier 1 leverage	10.46%	10.63%	10.53%
Common equity tier 1	13.82%	15.19%	14.58%
Total risk-based capital	14.73%	16.15%	15.53%
Selected Performance Ratios
Efficiency ratio	51.2%	48.5%	51.5%
Return on average assets (ROA)	1.89%	1.94%	1.80%
Return on average shareholders' equity (ROE)	20.50%	20.47%	19.52%
Return on average tangible common equity (ROTCE)	20.50%	20.47%	19.52%
Net interest margin	2.90%	2.79%	2.62%
*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, 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, 2024*							December 31, 2024*							March 31, 2024*
	Average Balances			Rates/ Yields (%)	Interest Income/ Expense			Average Balances			Rates/ Yields (%)	Interest Income/ Expense			Average Balances			Rates/ Yields (%)	Interest Income/ Expense
Earning Assets
Loans	$691,360			6.04	$10,300			$667,957			6.08	$10,215			$656,790			6.28	$10,261
Loan fees	$0			0.16	$271			$0			0.09	$146			$0			0.06	$95
Loans with fees	$691,360			6.2	$10,571				667,957		6.17	$10,361			$656,790			6.34	$10,356
Mortgage loans held for sale	$0			0.00	$0			$0			0.00	$0			$0			0.00	$0
Federal funds sold	$3,308			4.15	$34			$6,232			4.71	$75			$3,255			4.93	$41
Deposits with banks	$29,756			4.51	$331			$28,570			4.85	$348			$19,536			4.75	$231
Investment securities - taxable	$291,104			4.63	$3,371			$260,605			4.66	$3,039			$245,516			4.23	$2,599
Investment securities - tax-exempt	$32,250			3.37	$182			$35,497			3.65	$217			$33,041			3.4	$188
Total Earning Assets	$1,047,778			5.62	$14,489			$998,861			5.64	$14,040			$958,138			5.66	$13,415
Non interest earning assets
Allowance for loan losses		(6,618)							(6,359)							(6,309)
Cash and due from banks	$17,307							$5,985							$5,270
Premises and equipment	$3,249							$3,305							$1,260
Accrued interest receivable	$3,608							$3,721							$3,478
Other real estate	$0							$0							$0
Other assets	$37,447							$36,453							$30,494
Unrealized gain (loss) on inv. securities		(17,265)							(16,551)							(22,103)
Total Assets	$1,085,506							$1,025,415							$970,228
Interest bearing liabilities
Interest bearing demand	$326,793			3.04	$2,448			$329,625			3.26	$2,703			$330,343			3.53	$2,898
Savings and money market	$229,304			2.63	$1,486			$200,257			2.83	$1,427			$162,640			3.4	$1,375
Time deposits - retail	$12,965			3.61	$115			$13,170			3.39	$112			$15,557			3.43	$133
Time deposits - wholesale	$241,662			4.28	$2,550			$228,144			4.46	$2,556			$173,570			4.74	$2,044
Total interest bearing deposits	$810,724			3.3	$6,599			$771,196			3.51	$6,798			$682,110			3.8	$6,450
Federal Home Loan Bank advances	$20,369			3.9	$199			$9,554			3.48	$85			$3,401			1.7	$15
Subordinated debt	$14,687			5.09	$188			$14,520			5.08	$188			$14,610			5.09	$188
Other borrowings	$9,419			4.12	$60			$12,369			4.04	$90			$57,060			4.28	$618
Total borrowed funds	$44,475			4.02	$447			$36,443			3.90	$363			$75,071			4.32	$821
Total interest bearing liabilities	$855,199			3.34	$7,046			$807,639			3.52	$7,161			$757,181			3.85	$7,271
Net interest rate spread				2.28	$7,443						2.12	$6,879						1.81	$6,144
Non-interest bearing deposits	$126,049							$115,593							$118,809
Other liabilities	$4,335							$5,157							$4,797
Shareholder's equity	$99,923							$97,026							$89,441
Total Liabilities and Shareholder's Equity	$1,085,506							$1,025,415							$970,228
Cost of funds				2.91							3.08							3.33
Net interest margin				2.90							2.79							2.62
*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 was Truxton's earnings per share (EPS) in Q1 2025?

Truxton reported earnings of $1.75 per diluted share in Q1 2025, an 18% increase from $1.48 in Q1 2024.

How much did TRUX's deposits grow in Q1 2025?

Total deposits grew by 19% from $866 million to $1.03 billion quarter-over-quarter, and increased 21% year-over-year.

What dividends did TRUX pay in Q1 2025?

Truxton paid total dividends of $1.50 per common share, including a special cash dividend of $1.00.

How did Truxton's loan portfolio perform in Q1 2025?

Loans increased 5% quarter-over-quarter to $702 million and grew 6% year-over-year from $660 million.

What was TRUX's net interest margin in Q1 2025?

Net interest margin was 2.90%, up 11 basis points from Q4 2024 and 28 basis points from Q1 2024.