TRUX - Truxton Corporation Reports Fourth Quarter 2019 Results

January, 30 2020 08:30 AM Truxton Corp

NASHVILLE, Tenn., Jan. 30, 2020 (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 year and quarter ended December 31, 2019. Fourth quarter net income attributable to common shareholders was $2.5 million or $0.88 per diluted share compared to $2.1 million or $0.76 per diluted share for the same quarter in 2018. Net income rose by 17% and earnings per diluted share rose by 16% for the quarter when compared to the fourth quarter of 2018. For the twelve months ended December 31, 2019, net income increased by 19% to $9.7 million from $8.2 million in 2018. For the twelve months ended December 31, 2019, earnings per diluted share rose from $2.95 to $3.46, an increase of 17%.

“Truxton had a remarkable 2019,” said Truxton Trust Chairman and CEO Tom Stumb. “We achieved double-digit loan growth for the year and returned 15.8% on our average equity capital despite very conservative capital ratios. These profitability levels allowed us to declare $2.00 per share in cash dividends in 2019 including the $1.00 special dividend payable next week. Truxton’s dedicated staff continued to attract and meet the needs of new clients with complex financial needs.”

Key Highlights

Non-interest income grew to $2.8 million in the fourth quarter of 2019, an increase of 7% from the same period of 2018. Wealth management services constituted 93% of non-interest income in the quarter ended December 31, 2019.
Net loans rose by 10% to $360 million compared to December 31, 2018, and were up 7% compared to September 30, 2019.
Average deposits increased 7% compared to December 31, 2018. Truxton continues to fund its growth from a single banking location through superior deposit operations service and technology.
Net interest margin for the fourth quarter of 2019 was 3.21%. That represents a decline of 5 basis points from the 3.26% experienced in the quarter ended September 30, 2019, and a decline of 4 basis points from the quarter ended December 31, 2018. Cost of funds decreased to 0.95% in the fourth quarter of 2019 from 0.98% for the quarter ended September 30, 2019, but rose from 0.94% for the quarter ended December 31, 2018.
Asset quality remains sound at Truxton. Truxton had no non-performing assets at December 31, 2019. Truxton had no charge-offs in the quarter ended December 31, 2019, 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 $3.4 million as of December 31, 2019, September 30, 2019, and December 31, 2018, respectively. At those same dates, the bank’s allowance was 0.94%, 1.01%, and 1.01%, respectively, of gross loans outstanding at period end.
The Bank’s capital position remains strong. Tier 1 leverage ratio was 11.3% for December 31, 2019, 11.33% for September 30, 2019, and 10.76% for December 31, 2018. Book value per common share was $22.84, $23.28, and $20.63 at December 31, 2019, September 30, 2019, and December 31, 2018, respectively. During the twelve months ended December 31, 2019, Truxton Corporation paid dividends of $1.00 per common share and declared a $1.00 per share special dividend to be paid on February 3, 2020. December 31, 2019 book value reflects the payment of the special dividend which is shown at year end as a “dividend payable” deducted from shareholder’s equity.

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)





December 31, 2019*
September 30, 2019*
December 31, 2018
ASSETS



Cash and due from financial institutions
$
8,868

$
9,038

$
7,139

Interest bearing deposits in other financial institutions

19,519


32,633


3,660

Federal funds sold

8,808


1,569


6

Cash and cash equivalents

37,195


43,240


10,805





Time deposits in other financial institutions

5,157


5,651


18,268

Securities available for sale

116,032


116,549


109,696





Gross loans

363,784


339,182


331,809

Allowance for loan losses

(3,409
)

(3,411
)

(3,356
)
Net loans

360,375


335,771


328,453





Mortgage loans held for sale, net

350


300


-

Bank owned life insurance

9,973


9,918


9,755

Restricted equity securities

2,599


2,593


2,578

Premises and equipment, net

273


311


429

Accrued interest receivable

1,842


1,704


1,804

Deferred tax asset, net

520


348


1,022

Other assets

4,448


4,626


2,322





Total assets
$
538,764

$
521,011

$
485,132









LIABILITIES AND SHAREHOLDERS' EQUITY



Deposits



Non-interest bearing
$
119,999

$
125,985

$
93,464

Interest bearing

328,077


304,966


311,218

Total deposits

448,076


430,951


404,682





Federal Home Loan Bank advances

18,411


18,647


19,249

Federal funds purchased

-


-


1,282

Other liabilities

8,914


7,075


3,525

Total liabilities

475,401


456,673


428,738





SHAREHOLDERS' EQUITY



Additional paid-in capital

29,770


29,366


28,527

Retained earnings

33,511


34,483


29,283

Accumulated other comprehensive income (loss)

82


489


(1,415
)




Total shareholders' equity

63,363


64,338


56,395





Total liabilities and shareholders' equity
$
538,764

$
521,011

$
485,133









*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 Ended

December 31, 2019*

September 30, 2019*

December 31, 2018

December 31, 2019*

December 31, 2018
Non-interest income









Wealth management services
$
2,596


$
2,694

$
2,476


$
10,746

$
9,843

Service charges on deposit accounts

82



78


86



303


344

Securities gains (losses), net

0



149


(86
)


131


(74
)
Bank owned life insurance income

54



55


55



218


220

Other

57



40


74



271


220

Total non-interest income

2,789



3,016


2,605



11,669


10,553











Interest income









Loans, including fees
$
4,062


$
4,007

$
3,819


$
16,083

$
13,828

Taxable securities

584



506


494



2,060


1,672

Tax-exempt securities

196



208


232



887


982

Interest bearing deposits

125



302


231



744


656

Federal funds sold

8



14


16



34


54

Other interest income

45



25


51



153


156

Total interest income

5,020



5,062


4,843



19,961


17,348











Interest expense









Deposits

984



1,013


940



4,120


2,596

Short-term borrowings

1



-


2



17


11

Long-term borrowings

90



90


87



412


374

Total interest expense

1,075



1,103


1,029



4,549


2,981











Net interest income

3,945



3,959


3,814



15,412


14,367











Provision for loan losses

0



0


226



55


283











Net interest income after provision

3,945



3,959


3,588



15,357


14,084

for loan losses



























Total Revenue, net

6,734



6,975


6,193



27,026


24,637











Non-interest expense









Salaries and employee benefits

2,671



2,661


2,683



10,699


10,339

Occupancy

200



200


202



808


764

Furniture and equipment

27



27


28



108


157

Data processing

342



290


295



1,209


1,135

Wealth management processing fees

126



114


92



462


442

Advertising and public relations

121



20


43



198


111

Professional services

211



125


142



596


602

FDIC insurance assessments

(73
)


35


19



32


124

Other

195



279


207



879


942

Total non-interest expense

3,820



3,751


3,711



14,991


14,616











Income before income taxes

2,914



3,224


2,482



12,035


10,021











Income tax expense

441



661


373



2,293


1,827











Net income
$
2,473


$
2,563

$
2,109


$
9,742

$
8,194











Earnings per share:









Basic
$
0.89


$
0.93

$
0.78


$
3.53

$
3.02

Diluted
$
0.88


$
0.91

$
0.76


$
3.46

$
2.95

*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)





December 31, 2019*
September 30, 2019*
December 31, 2018




Per Common Share Data



Net income attributable to shareholders, per share



Basic
$0.89
$0.93
$0.78
Diluted
$0.88
$0.91
$0.76
Book value per common share
$22.84
$23.28
$20.63
Tangible book value per common share
$22.84
$23.28
$20.63
Basic weighted average common shares
2,699,777
2,690,981
2,644,318
Diluted weighted average common shares
2,754,101
2,746,171
2,703,971
Common shares outstanding at period end, including



participating shares
2,774,655
2,763,407
2,728,975




Selected Balance Sheet Data



Tangible common equity (TEC) ratio
11.76%
12.35%
11.62%
Average loans
$348,635
$333,950
$323,421
Average earning assets (1)
$492,829
$490,536
$475,145
Average total assets
$518,902
$516,252
$492,767
Average stockholders' equity
$65,457
$63,455
$54,756








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)
1
(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%
Allowance for loan losses to total loans
0.94%
1.01%
1.01%
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
11.30%
11.33%
10.76%
Common equity tier 1
13.70%
14.93%
14.20%
Total risk-based capital
14.51%
15.81%
15.07%




Selected Performance Ratios



Efficiency ratio
55.67%
57.97%
56.73%
Return on average assets (ROA)
1.89%
1.97%
1.70%
Return on average stockholders' equity (ROE)
15.77%
16.02%
15.53%
Return on tangible common equity (ROTCE)
15.77%
16.02%
15.53%
Net interest margin
3.21%
3.26%
3.25%




*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


December 31, 2019*

September 30, 2019*

December 31, 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
$348,635
4.60
$4,044

$333,950
4.76
$4,007

$323,421
4.69
$3,811

Loan fees
$0
0.03
$24

$0
0.02
$15

$0
0.01
$10

Loans with fees
$348,635
4.63
$4,068

$333,950
4.78
$4,022

$323,421
4.70
$3,821

Mortgage loans held for sale
$13
3.55
$0

$70
5.30
$1

$19
3.84
$0

Federal funds sold
$1,944
1.66
$8

$2,423
2.26
$14

$2,464
2.46
$15

Deposits with banks
$25,747
1.93
$125

$48,513
2.47
$302

$38,160
2.41
$231

Investment securities - taxable
$89,614
2.61
$584

$76,620
2.64
$506

$77,923
2.54
$494

Investment securities - tax-exempt
$26,876
3.93
$196

$28,961
3.88
$208

$33,158
4.18
$232

Total earning assets
$492,829
4.07
$4,981

$490,537
4.15
$5,053

$475,145
4.11
$4,793

Non-interest earning assets












Allowance for loan losses
(3,411)



(3,411)



(3,261)



Cash and due from banks
$8,263



$7,799



$6,664



Premises and equipment
$1,623



$1,727



$325



Accrued interest receivable
$1,600



$1,569



$1,459



Other real estate
$0



$0



$0



Other assets
$16,343



$16,152



$15,331



Unrealized gain (loss) on inv. securities
1,656



1,879



(2,897)



Total assets
$518,903



$516,252



$492,766



Interest-bearing liabilities












Interest-bearing demand
$28,241
0.41
$29

$27,779
0.71
$50

$25,337
0.44
$28

Savings and money market
$349,734
0.84
$737

$348,146
1.04
$916

$348,923
0.99
$868

Time deposits - retail
$14,023
1.83
$65

$11,930
1.54
$46

$15,268
1.06
$41

Time deposits - wholesale
$8,695
6.99
$153

$10,585
0.05
$1

$1,243
1.16
$4

Total interest-bearing deposits
$400,693
0.97
$984

$398,440
1.01
$1,013

$390,771
0.95
$941

Federal Home Loan Bank advances
$18,490
1.89
$90

$18,711
1.89
$90

$19,345
1.75
$87

Other borrowings
$1,417
0.21
$1

$1,463
0.03
$0

$307
2.64
$2

Total borrowed funds
$19,907
1.77
$91

$20,174
1.75
$90

$19,652
1.77
$89

Total interest-bearing liabilities
$420,600
1.01
$1,074

$418,614
1.04
$1,103

$410,423
0.99
$1,029

Net interest rate spread

3.06
$3,907


3.11
$3,950


3.12
$3,765

Non-interest-bearing deposits
$27,422



$29,269



$24,842



Other liabilities
$5,423



$4,816



$2,746



Stockholder's equity
$65,457



$63,455



$54,756



Total liabilities and stockholder's equity
$518,902



$516,154



$492,767



Cost of funds

0.95



0.98



0.94


Net interest margin

3.21



3.26



3.25















*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:




Twelve Months Ended


Twelve Months Ended


December 31, 2019*


December 31, 2018












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


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











Earning assets









Loans
$338,675
4.74
$16,038


$306,900
4.52
$13,841

Loan fees
$0
0.03
$87


$0
0.00
$15

Loans with fees
$338,675
4.76
$16,125


$306,900
4.53
$13,856

Mortgage loans held for sale
$55
3.29
$2


$27
4.48
$1

Federal funds sold
$1,570
2.16
$34


$2,510
2.10
$53

Deposits with banks
$30,857
2.41
$744


$30,364
2.16
$656

Investment securities - taxable
$79,071
2.61
$2,060


$71,720
2.33
$1,672

Investment securities - tax-exempt
$30,856
3.89
$887


$35,664
4.11
$982

Total earning assets
$481,084
4.19
$19,852


$447,185
3.97
$17,220

Non-interest earning assets









Allowance for loan losses
(3,393)




(3,151)



Cash and due from banks
$7,290




$6,408



Premises and equipment
$1,537




$386



Accrued interest receivable
$1,597




$1,334



Other real estate
$0




$0



Other assets
$16,111




$14,821



Unrealized gain (loss) on inv. securities
607




(1,873)



Total assets
$504,833




$465,110



Interest-bearing liabilities









Interest bearing demand
$27,131
0.69
$187


$26,550
0.43
$113

Savings and money market
$342,244
1.05
$3,584


$321,274
0.73
$2,351

Time deposits - retail
$12,203
1.49
$181


$13,167
0.83
$109

Time deposits - wholesale
$7,131
2.35
$167


$1,718
1.32
$23

Total interest bearing deposits
$388,709
1.06
$4,119


$362,709
0.72
$2,596

Federal Home Loan Bank advances
$20,957
1.94
$412


$21,153
1.75
$374

Other borrowings
$1,817
0.93
$17


$481
2.22
$11

Total borrowed funds
$22,774
1.86
$429


$21,634
1.76
$385

Total interest-bearing liabilities
$411,483
1.10
$4,548


$384,343
0.77
$2,981

Net interest rate spread

3.09
$15,304



3.19
$14,239

Non-interest bearing deposits
$27,400




$25,963



Other liabilities
$4,141




$2,030



Stockholder's equity
$61,783




$52,759



Total liabilities and stockholder's equity
$504,807




$465,095



Cost of funds

1.04




0.73


Net interest margin

3.25




3.30












*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.

Company Name:	Truxton Corp
Stock Symbol:	TRUX
Market:	OTC
Website:	www.truxtontrust.com

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