Truxton Corporation Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Truxton reported strong financial results for Q4 and full-year 2024. Fourth quarter net income reached $4.99 million ($1.74 per diluted share), up from $4.23 million ($1.46 per diluted share) in Q4 2023. Full-year 2024 net income increased 5% to $18.4 million, with earnings per diluted share rising to $6.34.

Key performance indicators include a 7% growth in Net Interest Income and a 17% increase in Wealth revenue year-over-year. The company maintained strong asset quality with minimal non-performing assets of $11,000. Loans grew 2% year-over-year to $670 million, while deposits increased 11% to $866 million. The net interest margin for Q4 2024 was 2.79%, showing slight improvement from previous quarters.

During 2024, Truxton paid dividends of $2.72 per common share, including a $1.00 special dividend, and repurchased 62,382 shares for $4.2 million at an average price of $66.97 per share.

Positive

• Net income increased 5% YoY to $18.4 million
• Net Interest Income grew 7% YoY
• Wealth revenue increased 17% YoY
• Deposits grew 11% YoY to $866 million
• Strong asset quality with minimal non-performing assets ($11,000)
• Tier 1 leverage ratio remained strong at 10.63%

Negative

• Non-interest expense impacted by technology and office upgrade costs
• Deposits decreased 3% QoQ from $889M to $866M

NASHVILLE, Tenn., Jan. 30, 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 December 31, 2024. Fourth quarter net income attributable to common shareholders was $4.99 million, or $1.74 per diluted share, compared to $4.23 million, or $1.46 per diluted share, for the same quarter in 2023.

For the year ended December 31, 2024, net income increased by 5% to $18.4 million from $17.5 million in 2023. For the year ended December 31, 2024, earnings per diluted share rose to $6.34 from $6.02, an increase of 5% from 2023.

“Truxton grew earnings again in 2024, despite the headwinds of mostly one-time expenses related to our technology and physical office upgrades,” said Truxton Chairman Tom Stumb. “Net Interest Income grew 7% and Wealth revenue increased 17% year-over-year, and we believe we are positioned well for 2025. Truxton continues to succeed as we drive successful outcomes for our clients through our dedication to service and sophisticated, sage advice.”

Key Highlights

• Non-interest income was $5.7 million in the fourth quarter of 2024, which was $173 thousand higher than the third quarter of 2024 and $1.4 million over the fourth quarter of 2023. Excluding gains and losses on the sale of securities, Wealth revenue constituted 90% of non-interest income in the fourth quarter of 2024, compared to 95% for the third quarter of 2024 and to 94% for fourth quarter of 2023. Other non-interest income was elevated due to a large non-recurring payment from an SBIC fund in which we are invested.
• Non-interest expense was $230 thousand lower in the fourth quarter of 2024 compared to the third, driven largely by the timing of certain expense accruals and a refund of some costs related to our bank technology upgrade recognized in the third quarter.
• Loans increased 1% to $670 million at quarter end compared to $665 million at September 30, 2024, and were up 2% compared to $658 million at December 31, 2023.
• Total deposits decreased by 3% from $889 million at September 30, 2024, to $866 million at December 31, 2024, and were 11% higher in comparison to $782 million at December 31, 2023. 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.
• Asset quality remains sound at Truxton. The Bank had $11 thousand of non-performing assets at December 31, 2024. Truxton had $4 thousand in charge-offs in the fourth quarter of 2024, $9 thousand in the trailing quarter, and $8 thousand of recoveries in the fourth quarter of 2023.
• Net interest margin for the fourth quarter of 2024 was 2.79%, an increase of 10 basis points from the 2.69% experienced in the quarter ended September 30, 2024, and an increase of 1 basis point from the 2.78% recorded in the quarter ended December 31, 2023. Cost of funds was 3.08% in the fourth quarter of 2024, down from 3.48% in the third quarter of 2024, and 3.15% in the fourth quarter of 2023.
• Allowance for credit losses, excluding that for unfunded commitments, was $6.4 million at quarter end December 31, 2024, compared to $6.4 million at September 30, 2024, and $6.3 million at December 31, 2023. For those three periods, such allowance amounts were each 0.96% of gross loans outstanding at each period end. For the same three periods, the Bank’s allowance for unfunded commitments was $483 thousand, $409 thousand, and $412 thousand, respectively.
• The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.63% at December 31, 2024, compared to 10.46% at September 30, 2024, and 10.53% at December 31, 2023. Book value per common share was $34.42, $33.30, and $30.31 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
• During the twelve months ended December 31, 2024, Truxton Corporation paid dividends of $2.72 per common share, inclusive of a $1.00 special cash dividend, and repurchased 62,382 shares of its common stock for $4.2 million in the aggregate, or an average price of $66.97 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		Media Relations
Austin Branstetter		Swan Burrus
615-250-0783		615-250-0773
austin.branstetter@truxtontrust.com		swan.burrus@truxtontrust.com

Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
	December 31, 2024*			September 30, 2024*			December 31, 2023*
ASSETS
Cash and due from financial institutions	$	4,225		$	5,499		$	4,272
Interest bearing deposits in other financial institutions		25,698			24,678			3,417
Federal funds sold		4,054			4,816			1,537
Cash and cash equivalents		33,977			34,993			9,226
Time deposits in other financial institutions		245			245			490
Securities available for sale		258,322			295,905			259,926
Gross loans, excluding Paycheck Protection Program		669,962			664,630			657,811
Allowance for credit losses		(6,433	)		(6,358	)		(6,304	)
Paycheck Protection Program Loans		20			27			29
Net loans		663,549			658,299			651,536
Bank owned life insurance		16,722			16,602			10,808
Restricted equity securities		2,272			2,261			1,858
Premises and equipment, net		3,293			3,328			189
Accrued interest receivable		4,567			4,954			4,388
Deferred tax asset, net		5,257			4,649			6,010
Other assets		15,577			14,017			10,839
Total assets	$	1,003,781		$	1,035,253		$	955,270
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$	126,016		$	116,149		$	123,918
Interest bearing	$	740,406		$	772,612		$	658,061
Total deposits		866,422			888,761			781,979
Federal funds purchased		-			-			-
Swap counterparty cash collateral		4,230			1,890			4,060
Federal Home Loan Bank advances		8,250			13,250			4,500
Federal Reserve Bank Term Funding Program advances		-			10,000			53,800
Subordinated debt		14,426			14,401			14,327
Other liabilities		11,747			11,405			8,922
Total liabilities		905,075			939,707			867,588
SHAREHOLDERS' EQUITY
Common stock, $0.10 par value	$	286		$	285		$	289
Additional paid-in capital		28,945			28,729			31,457
Retained earnings		61,316			62,548			51,679
Accumulated other comprehensive income (loss)		(10,252	)		(9,434	)		(13,279	)
Net Income	$	18,411		$	13,418		$	17,536
Total shareholders' equity		98,706			95,546			87,682
Total liabilities and shareholders' equity	$	1,003,781		$	1,035,253		$	955,270
*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
	December 31, 2024*					September 30, 2024*				December 31, 2023*					December 31, 2024*					December 31, 2023*
Non-interest income
Wealth management services	$	5,242				$	5,267			$	4,435				$	20,597				$	17,657
Service charges on deposit accounts		85					92				111					360					461
Securities gains (losses), net		(122	)				0				(445	)				(335	)				(386	)
Bank owned life insurance income		124					90				56					333					216
Other		391					98				115					1,164					524
Total non-interest income		5,720					5,547				4,272					22,119					18,472
Interest income
Loans, including fees	$	10,354				$	10,654			$	10,495				$	41,721				$	37,804
Taxable securities		3,039					3,361				2,554					11,932					9,350
Tax-exempt securities		217					222				210					834					876
Interest bearing deposits		348					488				198					1,475					695
Federal funds sold		75					113				41					288					101
Total interest income		14,033					14,838				13,498					56,250					48,826
Interest expense
Deposits		6,798					7,667				6,048					27,854					20,881
Short-term borrowings		90					260				685					1,294					2,154
Long-term borrowings		85					51				23					164					490
Subordinated debentures		188					188				187					752					771
Total interest expense		7,161					8,166				6,943					30,064					24,296
Net interest income		6,872					6,672				6,555					26,186					24,530
Provision for credit losses		145					105				215					217					296
Net interest income after provision for loan losses		6,727					6,567				6,340					25,969					24,234
Total revenue, net		12,447					12,114				10,612					48,088					42,706
Non interest expense
Salaries and employee benefits		4,635					4,044				3,563					16,652					14,810
Occupancy		326					315				272					1,578					1,185
Furniture and equipment		107					115				24					300					76
Data processing		282					625				389					1,763					1,703
Wealth management processing fees		195					221				166					838					729
Advertising and public relations		96					27				109					206					248
Professional services		247					609				285					1,337					941
FDIC insurance assessments		33					80				225					423					460
Other		291					406				322					2,024					901
Total non interest expense		6,212					6,442				5,355					25,121					21,053
Income before income taxes		6,235					5,672				5,257					22,967					21,653
Income tax expense		1,242					1,102				1,028					4,556					4,117
Net income	$	4,993				$	4,570			$	4,229				$	18,411				$	17,536
Earnings per share:
Basic	$	1.74				$	1.58			$	1.46				$	6.35				$	6.04
Diluted	$	1.74				$	1.57			$	1.46				$	6.34				$	6.02
*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)
	December 31, 2024*			September 30, 2024*			December 31, 2023*
Per Common Share Data
Net income attributable to common shareholders, per share
Basic	$1.74			$1.58			$1.46
Diluted	$1.74			$1.57			$1.46
Book value per common share	$34.42			$33.30			$30.31
Tangible book value per common share	$34.42			$33.30			$30.31
Basic weighted average common shares	2,787,805			2,819,035			2,821,846
Diluted weighted average common shares	2,792,363			2,823,728			2,828,274
Common shares outstanding at period end	2,867,850			2,869,015			2,893,064
Selected Balance Sheet Data
Tangible common equity (TCE) ratio	9.83%			9.23%			9.18%
Average Loans	$667,957			$652,624			$653,804
Average earning assets (1)	$998,861			$1,006,370			$956,793
Average total assets	$1,025,415			$1,029,802			$960,852
Average shareholders' equity	$97,026			$94,225			$81,759
Selected Asset Quality Measures
Nonaccrual loans	$0			$0			$0
90+ days past due still accruing	$11			$11			$0
Total nonperforming loans	$11			$11			$0
Total nonperforming assets	$11			$11			$0
Net charge offs (recoveries)	$4			$9			($8)
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	10.63%			10.46%			10.53%
Common equity tier 1	15.19%			15.17%			14.58%
Total risk-based capital	16.15%			16.11%			15.53%
Selected Performance Ratios
Efficiency ratio	48.45%			52.72%			47.07%
Return on average assets (ROA)	1.94%			1.77%			1.75%
Return on average shareholders' equity (ROE)	20.47%			19.29%			20.52%
Return on average tangible common equity (ROTCE)	20.47%			19.29%			20.52%
Net interest margin	2.79%			2.69%			2.78%
*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
	December 31, 2024*								September 30, 2024*								December 31, 2023*
	Average Balances			Rates/ Yields (%)		Interest Income/ Expense			Average Balances			Rates/ Yields (%)		Interest Income/ Expense			Average Balances			Rates/ Yields (%)		Interest Income/ Expense
Earning Assets
Loans	$667,957			6.08		$10,215			$652,624			6.41		$10,520			$653,804			6.18		$10,183
Loan fees	$0			0.09		$146			$0			0.08		$134			$0			0.19		$312
Loans with fees		667,957		6.17		$10,361				652,624		6.49		$10,654			$653,804			6.37		$10,495
Mortgage loans held for sale	$0			0.00		$0			$0			0.00		$0			$0			0.00		$0
Federal funds sold	$6,232			4.71		$75			$8,367			5.28		$113			$2,985			5.41		$41
Deposits with banks	$28,570			4.85		$348			$35,784			5.43		$488			$14,240			5.51		$198
Investment securities - taxable	$260,605			4.66		$3,039			$273,488			4.92		$3,361			$248,778			4.11		$2,554
Investment securities - tax-exempt	$35,497			3.65		$217			$36,107			3.67		$222			$36,986			3.39		$210
Total Earning Assets	$998,861			5.64		$14,040			$1,006,370			5.92		$14,838			$956,793			5.65		$13,498
Non interest earning assets
Allowance for loan losses		(6,359)								(6,224)								(6,123)
Cash and due from banks	$5,985								$6,529								$5,402
Premises and equipment	$3,305								$3,370								$119
Accrued interest receivable	$3,721								$3,746								$3,575
Other real estate	$0								$0								$0
Other assets	$36,453								$34,150								$30,404
Unrealized gain (loss) on inv. securities		(16,551)								(18,139)								(29,318)
Total Assets	$1,025,415								$1,029,802								$960,852
Interest bearing liabilities
Interest bearing demand	$329,625			3.26		$2,703			$333,177			3.60		$3,018			$345,966			3.42		$2,984
Savings and money market	$200,257			2.83		$1,427			$195,751			3.60		$1,773			$138,244			2.95		$1,027
Time deposits - retail	$13,170			3.39		$112			$13,505			3.40		$115			$16,343			3.18		$131
Time deposits - wholesale	$228,144			4.46		$2,556			$226,673			4.85		$2,761			$165,756			4.56		$1,906
Total interest bearing deposits	$771,196			3.51		$6,798			$769,106			3.97		$7,667			$666,309			3.6		$6,048
Federal Home Loan Bank advances	$9,554			3.48		$85			$5,728			3.50		$51			$4,500			1.98		$23
Subordinated debt	$14,520			5.08		$188			$14,656			4.53		$188			$14,422			5.08		$187
Other borrowings	$12,369			4.04		$90			$24,011			4.22		$259			$60,859			4.39		$685
Total borrowed funds	$36,443			3.90		$363			$44,395			4.40		$499			$79,781			4.39		$895
Total interest bearing liabilities	$807,639			3.52		$7,161			$813,501			3.99		$8,166			$746,090			3.69		$6,943
Net interest rate spread				2.12		$6,879						1.93		$6,672						1.96		$6,555
Non-interest bearing deposits	$115,593								$118,216								$126,534
Other liabilities	$5,157								$3,860								$6,469
Shareholder's equity	$97,026								$94,225								$81,759
Total Liabilities and Shareholder's Equity	$1,025,415								$1,029,802								$960,852
Cost of funds				3.08								3.48								3.15
Net interest margin				2.79								2.69								2.78
*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.

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, 2024*									December 31, 2023*
	Average Balances			Rates/ Yields (%)		Interest Income/ Expense				Average Balances			Rates/ Yields (%)		Interest Income/ Expense
Earning Assets
Loans	$658,226			6.28		$41,328				$635,059			5.85		$37,150
Loan fees	$0			0.08		$504				$0			0.10		$654
Loans with fees	$658,226			6.36		$41,832				$635,059			5.95		$37,804
Mortgage loans held for sale	$0			0.00		$0				$0			0.00		$0
Federal funds sold	$5,592			5.08		$289				$1,907			5.21		$101
Deposits with banks	$27,967			5.27		$1,475				$13,711			5.07		$695
Investment securities - taxable	$259,313			4.6		$11,931				$247,483			3.78		$9,350
Investment securities - tax-exempt	$34,867			3.57		$834				$38,410			3.40		$876
Total Earning Assets	$985,965			5.76		$56,361				$936,570			5.26		$48,826
Non interest earning assets
Allowance for loan losses		(6,299)									(6,087)
Cash and due from banks	$6,161										5,960
Premises and equipment	$2,662									$154
Accrued interest receivable	$3,730									$3,271
Other real estate	$0									$0
Other assets	$33,513									$29,175
Unrealized gain (loss) on inv. securities		(19,553)									(26,891)
Total Assets	$1,006,179									$942,152
Interest bearing liabilities
Interest bearing demand	$333,322			3.5		$11,681				$351,956			3.20		$11,247
Savings and Money Market	$183,557			3.33		$6,121				$134,518			2.50		$3,368
Time deposits - Retail	$14,275			3.41		$486				$17,168			2.53		$435
Time Deposits - Wholesale	$207,457			4.61		$9,566				$143,922			4.05		$5,832
Total interest bearing deposits	$738,611			3.77		$27,854				$647,564			3.22		$20,882
Federal home Loan Bank advances	$5,476			2.95		$164				$12,355			3.91		$490
Subordinated debt	$14,565			5.08		$752				$14,831			5.12		$771
Other borrowings	$31,032			4.41		$1,294				$47,985			4.42		$2,153
Total borrowed funds	$51,073			4.26		$2,210				$75,171			4.48		$3,414
Total interest bearing liabilities	$789,685			3.80		$30,064				$722,735			3.36		$24,296
Net interest rate spread				1.95		$26,297							1.90		$24,530
Non-interest bearing deposits	$119,150									$135,909
Other liabilities	$4,424									$4,810
Shareholder's equity	$92,920									$78,619
Total Liabilities and Shareholder's Equity	$1,006,179									$942,073
Cost of funds				3.30									2.82
Net interest margin				2.71									2.67
*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.

FAQ

What was Truxton 's earnings per share in Q4 2024?

Truxton reported earnings of $1.74 per diluted share in Q4 2024, compared to $1.46 per diluted share in Q4 2023.

How much did Truxton's net income grow in 2024?

Truxton's net income grew 5% in 2024, reaching $18.4 million compared to $17.5 million in 2023.

What was Truxton's deposit growth in 2024?

Truxton's deposits grew 11% year-over-year, reaching $866 million at the end of 2024 compared to $782 million at the end of 2023.

How much did Truxton spend on share repurchases in 2024?

Truxton spent $4.2 million to repurchase 62,382 shares at an average price of $66.97 per share in 2024.

What dividends did Truxton pay in 2024?

Truxton paid total dividends of $2.72 per common share in 2024, which included a $1.00 special cash dividend.