Truxton Corporation Reports Third Quarter 2024 Results

Rhea-AI Summary

Truxton reported strong Q3 2024 results with net income of $4.57 million, or $1.57 per diluted share, matching the same quarter in 2023. Highlights include:

- 10% increase in net interest income
- 14% growth in Wealth Management revenue
- Non-interest income of $5.5 million, up $643,000 from Q3 2023
- Loans increased 2.5% to $665 million
- Total deposits up 6% to $889 million
- Net interest margin at 2.69%
- Strong capital position with Tier 1 leverage ratio of 10.46%

The company faced some non-recurring expenses, including those related to a core system conversion. Truxton paid dividends of $2.29 per common share and repurchased 59,717 shares for $3.99 million during the first nine months of 2024.

Positive

• Net income remained stable at $4.57 million, or $1.57 per diluted share
• Net interest income increased by 10% year-over-year
• Wealth Management revenue grew by 14% compared to Q3 2023
• Non-interest income rose by $643,000 from Q3 2023 to $5.5 million
• Loans increased by 2.5% to $665 million quarter-over-quarter
• Total deposits grew by 6% to $889 million quarter-over-quarter and 14% year-over-year
• Net interest margin improved to 2.69%, up 8 basis points year-over-year
• Strong capital position with Tier 1 leverage ratio of 10.46%
• Book value per common share increased to $33.30 from $27.43 year-over-year

Negative

• Non-recurring expenses related to core system conversion, totaling approximately $400,000
• Net interest margin declined by 6 basis points from Q2 2024
• Cost of funds increased to 3.48%, up from 3.32% in Q2 2024 and 3.05% in Q3 2023

NASHVILLE, Tenn., Oct. 17, 2024 (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 September 30, 2024. Third quarter net income attributable to common shareholders was $4.57 million, or $1.57 per diluted share, compared to $4.56 million, or $1.57 per diluted share, for the same quarter in 2023.

“Truxton once again produced strong performance in the third quarter despite some significant non-recurring expenses including those related to the conversion of our core system that should engender improved operations in the coming years,” said Truxton Chairman Tom Stumb. “With net interest income up 10% and Wealth Management revenue up 14% from a year ago, we believe we are poised for excellent performance during the rest of the year and into 2025. Truxton thrives because our professional staff is distinctively capable, experienced and dedicated to service.”

Key Highlights

• Non-interest income was $5.5 million in the third quarter of 2024, which was $12 thousand lower than the second quarter of 2024 and $643 thousand over the third quarter of 2023. Wealth management constituted 95% of non-interest income in the third quarter of 2024, compared to 94% for both the second quarter of 2024 and third quarter of 2023.
• Non-interest expense in the third quarter of 2024 declined by $147 thousand compared to the prior quarter. One-time expenses in the third quarter related to the bank’s core system conversion totaled approximately $400 thousand.
• Loans increased 2.5% to $665 million at quarter end compared to $648 million at June 30, 2024, and were up 3.6% compared to $642 million at September 30, 2023.
• Total deposits increased by 6% from $840 million at June 30, 2024, to $889 million at September 30, 2024, and were 14% higher in comparison to $781 million at September 30, 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.
• Net interest margin for the third quarter of 2024 was 2.69%, a decline of 6 basis points from the 2.75% experienced in the quarter ended June 30, 2024, and an increase of 8 basis points from the 2.61% recorded in the quarter ended September 30, 2023. Cost of funds was 3.48% in the third quarter of 2024, up from 3.32% the second quarter of 2024, and 3.05% over the third quarter of 2023.
• Allowance for credit losses, excluding that for unfunded commitments, was $6.4 million at quarter end September 30, 2024, compared to $6.2 million at June 30, 2024, and $6.0 million at September 30, 2023. For those three periods, such allowance amounts were 0.96%, 0.96%, and 0.94%, respectively, of gross loans outstanding at period end. For the same three periods, the Bank’s allowance for unfunded commitments was $409 thousand, $438 thousand, and $460 thousand, respectively.
• The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.46% at September 30, 2024, compared to 10.45% at June 30, 2024, and 10.36% at September 30, 2023. Book value per common share was $33.30, $31.85, and $27.43 at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
• During the nine months ended September 30, 2024, Truxton Corporation paid dividends of $2.29 per common share, inclusive of a $1.00 special cash dividend, and repurchased 59,717 shares of its common stock for $3.99 million in the aggregate, or an average price of $66.73 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)
	September 30, 2024*			June 30, 2024*			September 30, 2023*
ASSETS
Cash and due from financial institutions	$	5,499		$	8,494		$	5,040
Interest bearing deposits in other financial institutions		24,678			3,851			7,589
Federal funds sold		4,816			-			956
Cash and cash equivalents		34,993			12,345			13,585
Time deposits in other financial institutions		245			490			740
Securities available for sale		295,905			286,977			259,543
Gross loans, excluding Paycheck Protection Program		664,630			648,300			641,697
Allowance for credit losses		(6,358	)		(6,234	)		(6,031	)
Paycheck Protection Program Loans		27			38			69
Net loans		658,299			642,104			635,735
Bank owned life insurance		16,602			11,512			10,751
Restricted equity securities		2,261			1,802			1,940
Premises and equipment, net		3,328			3,406			129
Accrued interest receivable		4,954			4,744			4,310
Deferred tax asset, net		4,649			5,386			7,910
Other assets		14,017			16,633			13,922
Total assets	$	1,035,253		$	985,399		$	948,566
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$	116,149		$	115,699		$	116,918
Interest bearing	$	772,612			724,251		$	663,950
Total deposits		888,761			839,950			780,868
Federal funds purchased		-			283			-
Swap counterparty cash collateral		1,890			5,000			4,820
Federal Home Loan Bank advances		13,250			2,250			4,500
Federal Reserve Bank Term Funding Program advances		10,000			20,000			55,000
Subordinated debt		14,401			14,213			14,291
Other liabilities		11,405			10,919			9,544
Total liabilities		939,707			892,615			869,023
SHAREHOLDERS' EQUITY
Common stock, $0.10 par value	$	285		$	290		$	288
Additional paid-in capital		28,729			31,381			31,335
Retained earnings		62,548			63,782			52,780
Accumulated other comprehensive income (loss)		(9,434	)		(11,517	)		(18,167	)
Net Income	$	13,418		$	8,848		$	13,307
Total shareholders' equity		95,546			92,784			79,543
Total liabilities and shareholders' equity	$	1,035,253		$	985,399		$	948,566
*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, 2024*				June 30, 2024*					September 30, 2023*			September 30, 2024*				September 30, 2023*
Non-interest income
Wealth management services	$	5,267			$	5,206				$	4,608		$	15,380			$	13,222
Service charges on deposit accounts		92				90					117			275				398
Securities gains (losses), net		0				(213	)				0			(213	)			58
Bank owned life insurance income		90				62					54			209				159
Other		71				387					98			538				374
Total non-interest income		5,520				5,532					4,877			16,189				14,212
Interest income
Loans, including fees	$	10,654			$	10,459				$	9,715		$	31,470			$	27,308
Taxable securities		3,361				2,933					2,575			8,892				6,796
Tax-exempt securities		222				207					216			617				666
Interest bearing deposits		488				408					178			1,127				185
Federal funds sold		113				60					30			214				59
Other interest income		27				52					49			106				300
Total interest income		14,865				14,119					12,763			42,426				35,315
Interest expense
Deposits		7,667				6,939					5,679			21,056				14,833
Short-term borrowings		260				327					682			1,204				167
Long-term borrowings		51				13					90			79				1,769
Subordinated debentures		188				188					195			564				583
Total interest expense		8,166				7,467					6,646			22,903				17,353
Net interest income		6,699				6,652					6,117			19,523				17,962
Provision for credit losses		105				(27	)				6			72				81
Net interest income after provision for loan losses		6,594				6,679					6,111			19,451				17,881
Total revenue, net		12,114				12,211					10,988			35,640				32,093
Non interest expense
Salaries and employee benefits		4,044				3,897					3,819			12,017				11,247
Occupancy		315				484					313			1,252				913
Furniture and equipment		115				73					7			192				52
Data processing		625				439					470			1,482				1,352
Wealth management processing fees		221				208					188			643				530
Advertising and public relations		27				48					58			110				139
Professional services		609				272					263			1,091				297
FDIC insurance assessments		80				120					85			390				235
Other		406				1,048					111			1,732				932
Total non interest expense		6,442				6,589					5,314			18,909				15,698
Income before income taxes		5,672				5,622					5,674			16,731				16,395
Income tax expense		1,102				1,107					1,109			3,313				3,089
Net income	$	4,570			$	4,515				$	4,564		$	13,418			$	13,307
Earnings per share:
Basic	$	1.58			$	1.55				$	1.57		$	4.61			$	4.58
Diluted	$	1.57			$	1.55				$	1.57		$	4.60			$	4.57
*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)
	September 30, 2024*	June 30, 2024*	September 30, 2023*
Per Common Share Data
Net income attributable to common shareholders, per share
Basic	$1.58	$1.55	$1.57
Diluted	$1.57	$1.55	$1.57
Book value per common share	$33.30	$31.85	$27.43
Tangible book value per common share	$33.30	$31.85	$27.43
Basic weighted average common shares	2,819,035	2,830,894	2,829,139
Diluted weighted average common shares	2,823,728	2,838,321	2,836,187
Common shares outstanding at period end	2,869,015	2,912,781	2,900,171
Selected Balance Sheet Data
Tangible common equity (TCE) ratio	9.23%	9.42%	8.39%
Average Loans	$652,624	$655,486	$634,180
Average earning assets (1)	$1,006,370	$980,123	$943,585
Average total assets	$1,029,802	$998,799	$949,755
Average shareholders' equity	$94,225	$90,929	$80,535
Selected Asset Quality Measures
Nonaccrual loans	$0	$0	$0
90+ days past due still accruing	$11	$0	$0
Total nonperforming loans	$11	$0	$0
Total nonperforming assets	$11	$0	$0
Net charge offs (recoveries)	$9	$0	($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 credit losses to total loans	0.96%	0.96%	0.94%
Net charge offs to average loans	0.00%	0.00%	0.00%
Capital Ratios (Bank Subsidiary Only)
Tier 1 leverage	10.46%	10.45%	10.36%
Common equity tier 1	15.17%	14.62%	14.11%
Total risk-based capital	16.11%	15.54%	15.04%
Selected Performance Ratios
Efficiency ratio	52.72%	52.72%	47.87%
Return on average assets (ROA)	1.77%	1.82%	1.91%
Return on average shareholders' equity (ROE)	19.29%	19.97%	22.48%
Return on average tangible common equity (ROTCE)	19.29%	19.97%	22.48%
Net interest margin	2.69%	2.75%	2.61%
*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
	September, 30 2024*							June 30, 2024*							September, 30 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	$652,624			6.41	$10,520			$655,486			6.34	$10,332			$634,179			6.01	$9,602
Loan fees	$0			0.08	$134			$0			0.08	$127			$0			0.07	$112
Loans with fees		652,624		6.49	$10,654			$655,486			6.42	$10,459				634,180		6.08	$9,714
Mortgage loans held for sale	$0			0.00	$0			$0			0.00	$0			$0			0.00	$0
Federal funds sold	$8,367			5.28	$113			$4,476			5.32	$60			$2,293			5.20	$30
Deposits with banks	$35,784			5.43	$488			$27,887			5.88	$408			$13,213			5.34	$178
Investment securities - taxable	$273,488			4.92	$3,361			$257,470			4.56	$2,933			$255,822			4.03	$2,575
Investment securities - tax-exempt	$36,107			3.67	$222			$34,804			3.56	$207			$38,077			3.38	$216
Total Earning Assets	$1,006,370			5.92	$14,838			$980,123			5.81	$14,067			$943,585			5.40	$12,713
Non interest earning assets
Allowance for loan losses		(6,224	)						(6,306	)						(5,989	)
Cash and due from banks	$6,529							$6,856							$5,814
Premises and equipment	$3,370							$2,698							$134
Accrued interest receivable	$3,746							$3,975							$3,443
Other real estate	$0							$0							$0
Other assets	$34,150							$32,919							$29,298
Unrealized gain (loss) on inv. securities		(18,139	)						(21,466	)						(26,530	)
Total Assets	$1,029,802							$998,799							$949,755
Interest bearing liabilities
Interest bearing demand	$333,177			3.60	$3,018			$340,187			3.62	$3,062			$354,018			3.43	$3,062
Savings and money market	$195,751			3.60	$1,773			$175,264			3.55	$1,546			$132,842			2.67	$895
Time deposits - retail	$13,505			3.40	$115			$14,887			3.4	$126			$17,334			2.67	$117
Time deposits - wholesale	$226,673			4.85	$2,761			$201,005			4.41	$2,205			$147,046			4.33	$1,605
Total interest bearing deposits	$769,106			3.97	$7,667			$731,343			3.82	$6,939			$651,240			3.46	$5,679
Federal Home Loan Bank advances	$5,728			3.50	$51			$3,173			1.64	$13			$9,337			3.79	$91
Subordinated debt	$14,656			4.53	$188			$14,471			5.14	$188			$15,030			5.09	$195,399
Other borrowings	$24,011			4.22	$259			$30,973			4.18	$327			$60,606			4.40	$877
Total borrowed funds	$44,395			4.40	$499			$48,617			4.30	$528			$84,973			4.46	$968
Total interest bearing liabilities	$813,501			3.99	$8,166			$779,960			3.85	$7,467			$736,213			3.57	$6,647
Net interest rate spread				1.93	$6,672						1.96	$6,600						1.83	$6,067
Non-interest bearing deposits	$118,216							$124,029							$127,389
Other liabilities	$3,860							$3,881							$5,308
Shareholder's equity	$94,225							$90,929							$80,535
Total Liabilities and Shareholder's Equity	$1,029,802							$998,799							$949,445
Cost of funds				3.48							3.32							3.05
Net interest margin				2.69							2.75							2.61
*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:
	Nine Months Ended								Nine Months Ended
	September 30, 2024*								September 30, 2023*
	Average Balances			Rates/ Yields (%)	Interest Income/ Expense				Average Balances			Rates/ Yields (%)	Interest Income/ Expense
Earning Assets
Loans	$654,958			6.35	$31,113				$628,742			5.73	$26,967
Loan fees	$0			0.07	$358				$0			0.07	$342
Loans with fees	$654,958			6.42	$31,471				$628,742			5.81	$27,309
Mortgage loans held for sale	$0			0.00	$0				$0			0.00	$0
Federal funds sold	$5,377			5.22	$214				$1,544			5.08	$59
Deposits with banks	$27,765			5.42	$1,126				$13,532			4.91	$497
Investment securities - taxable	$258,878			4.58	$8,892				$247,046			3.67	$6,796
Investment securities - tax-exempt	$34,656			3.54	$617				$38,890			3.41	$666
Total Earning Assets	$981,634			5.8	$42,320				$929,754			5.12	$35,327
Non interest earning assets
Allowance for loan losses		(6,279	)							(6,075	)
Cash and due from banks	$6,220								$6,148
Premises and equipment	$2,446								$167
Accrued interest receivable	$3,733								$3,169
Other real estate	$0								$0
Other assets	$32,526								$28,760
Unrealized gain (loss) on inv. securities		(20,560	)							(26,074	)
Total Assets	$999,720								$935,849
Interest bearing liabilities
Interest bearing demand	$334,564			3.58	$8,978				$353,974			3.12	$8,263
Savings and Money Market	$177,950			3.52	$4,694				$133,262			2.35	$2,341
Time deposits - Retail	$14,646			3.41	$374				$17,446			2.33	$304
Time Deposits - Wholesale	$200,511			4.67	$7,010				$136,564			3.84	$3,926
Total interest bearing deposits	$727,671			3.87	$21,056				$641,247			3.09	$14,833
Federal home Loan Bank advances	$4,107			2.53	$79				$15,002			4.1	$467
Subordinated debt	$14,579			5.08	$564				$14,969			5.14	$583
Other borrowings	$37,299			4.43	$1,204				$43,646			4.44	$2,052
Total borrowed funds	$55,985			4.34	$1,847				$73,617			4.51	$2,519
Total interest bearing liabilities	$783,657			3.90	$22,903				$714,864			3.24	$17,353
Net interest rate spread				1.90	$19,417							1.89	$17,975
Non-interest bearing deposits	$120,343								$139,068
Other liabilities	$4,178								$4,251
Shareholder's equity	$91,542								$77,561
Total Liabilities and Shareholder's Equity	$999,720								$935,744
Cost of funds				3.38								2.71
Net interest margin				2.68								2.63
*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 (TRUX) net income for Q3 2024?

Truxton 's net income for Q3 2024 was $4.57 million, or $1.57 per diluted share.

How much did Truxton's (TRUX) loans increase in Q3 2024?

Truxton's loans increased by 2.5% to $665 million at the end of Q3 2024, compared to $648 million at the end of Q2 2024.

What was the growth in Truxton's (TRUX) total deposits for Q3 2024?

Truxton's total deposits increased by 6% from $840 million at the end of Q2 2024 to $889 million at the end of Q3 2024.

How much did Truxton (TRUX) pay in dividends during the first nine months of 2024?

Truxton paid dividends of $2.29 per common share, including a $1.00 special cash dividend, during the first nine months of 2024.