TRUX - Truxton Corporation Reports Fourth Quarter and Full Year 2022 Results
NASHVILLE, Tenn., Jan. 26, 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 and year ended December 31, 2022. Fourth quarter net income attributable to common shareholders was $4.1 million, or $1.40 earnings per diluted share, compared to $4.0 million, or $1.39 earnings per diluted share, for the same quarter in 2021.
For the year ended December 31, 2022, net income increased by 15% to $16.7 million from $14.5 million in 2021. For the year ended December 31, 2022, earnings per diluted share rose to $5.75 from $5.02, an increase of 15% from 2021.
“The year just completed was challenging, but Truxton grew more and earned more than ever before,” said Chairman and CEO Tom Stumb. “Net loan growth of more than $120 million represents a tremendous effort by our lenders and the managers and teams who support them. Our wealth management revenue grew 8% in a year when both stock and bond prices fell precipitously, reflecting both relatively strong investment performance and the addition of many new client relationships.”
Key Highlights
- Truxton partially restructured the bond portfolio in December and realized $588 thousand of losses on the sale of $20 million in securities. This allowed us to improve our interest rate risk profile and should contribute to an increase in our future earnings compared to what we would have achieved on these bonds had we not sold them. The after-tax cost of these losses lowered earnings per share by approximately $0.16. Excluding these losses, earnings per diluted share for the quarter would have been approximately $1.56, which is 5% higher than $1.49 in the third quarter of 2022 and 12% higher than $1.39 in the fourth quarter of 2021.
- Non-interest income, excluding bond losses, grew to $4.4 million in the fourth quarter of 2022, an increase of 2% from the third quarter of 2022 and 2% in comparison to the fourth quarter of 2021. Wealth management services constituted 95% of non-interest income, excluding bond losses, in the fourth quarter of 2022.
- Loans rose 1% to $619 million at year end compared to $612 million on September 30, 2022 and were up 25% compared to $495 million on December 31, 2021.
- Total deposits increased 2% from September 30, 2022, to $808 million at December 31, 2022, and increased less than 1% in comparison to December 31, 2021. 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 fourth quarter of 2022 was 2.83%, a decrease of 12 basis points from the 2.95% experienced in the third quarter of 2022, but an increase of 35 basis points from the fourth quarter of 2021. Cost of funds was 1.73% in the fourth quarter of 2022, up from 1.02% for the quarter ended September 30, 2022, and an increase from 0.47% in the quarter ended December 31, 2021.
- Asset quality remains sound at Truxton. Truxton had no non-performing assets at December 31, 2022. Truxton had $2 thousand of recoveries in the fourth quarter of 2022, $0 in the trailing quarter, and $5 thousand of charge-offs in the fourth quarter of 2021.
- Allowance for loan losses was $5.8 million, $5.8 million, and $4.8 million at quarter end December 31, 2022, September 30, 2022, and December 31, 2021, respectively. For the same three periods, the Bank’s allowance was 0.93%, 0.94%, and 0.97%, respectively, of gross loans (including PPP loans) outstanding at period end. Truxton will adopt the Current Expected Credit Loss accounting methodology for purposes of calculating its allowance for credit losses effective January 1, 2023.
- Truxton has several sources of lightly taxed income including the yield on bank-owned life insurance, the earnings of the bank’s captive insurance company, and the interest income from the bank’s tax-exempt bond portfolio that cause its effective rate to be below the combined statutory rates, but the effective tax rate for 2022 increased to 18.4% from 16.5% in 2021 as the proportion of fully taxable income grew.
- The Bank’s capital position remains strong. The Tier 1 leverage ratio was 9.78% at December 31, 2022, 9.78% at September 30, 2022, and 8.95% at December 31, 2021. Book value per common share was $25.39, $23.84, and $29.19 at December 31, 2022, September 30, 2022, and December 31, 2021, respectively. The decline in book value per share at December 31, 2022, when compared to December 31, 2021, was the result of accumulated other comprehensive losses associated with declining values in the Company’s bond portfolio caused by the rising interest rate environment.
- During the twelve months ended December 31, 2022, Truxton Corporation paid dividends of $2.36 per common share and repurchased 32,000 shares of its common stock for $2.2 million total, an average price of $68.88 per share.
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 |
| Swan Burrus |
| 615-515-1707 |
| 615-250-0773 |
| andrew.may@truxtontrust.com |
| swan.burrus@truxtontrust.com |
| Truxton Corporation |
| Consolidated Balance Sheets |
| (000's) |
| (Unaudited) |
| December 31, 2022* |
| September 30, 2022* |
| December 31, 2021* |
| ASSETS |
| Cash and due from financial institutions |
| $ |
| 5,405 |
| $ |
| 5,101 |
| $ |
| 9,321 |
| Interest bearing deposits in other financial institutions |
| 1,094 |
| 3,906 |
| 88,743 |
| Federal funds sold |
| - |
| - |
| 1,425 |
| Cash and cash equivalents |
| 6,499 |
| 9,007 |
| 99,489 |
| Time deposits in other financial institutions |
| 3,833 |
| 1,835 |
| 2,780 |
| Securities available for sale |
| 257,257 |
| 263,144 |
| 302,502 |
| Gross loans, excluding Paycheck Protection Program |
| 618,847 |
| 611,946 |
| 494,292 |
| Allowance for loan losses |
| (5,761 |
| ) |
| (5,750 |
| ) |
| (4,775 |
| ) |
| Paycheck Protection Program Loans |
| 101 |
| 111 |
| 506 |
| Net loans |
| 613,187 |
| 606,307 |
| 490,023 |
| Bank owned life insurance |
| 10,592 |
| 10,541 |
| 10,389 |
| Restricted equity securities |
| 3,227 |
| 2,688 |
| 3,242 |
| Premises and equipment, net |
| 209 |
| 241 |
| 316 |
| Accrued interest receivable |
| 3,512 |
| 3,207 |
| 2,346 |
| Deferred tax asset, net |
| 7,161 |
| 7,371 |
| 99 |
| Other assets |
| 11,803 |
| 12,417 |
| 6,073 |
| Total assets |
| $ |
| 917,280 |
| $ |
| 916,758 |
| $ |
| 917,259 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| Deposits |
| Non-interest bearing |
| $ |
| 153,870 |
| $ |
| 154,049 |
| $ |
| 215,696 |
| Interest bearing |
| 653,880 |
| 635,503 |
| 591,779 |
| Total deposits |
| 807,750 |
| 789,552 |
| 807,475 |
| Federal funds purchased |
| 4,933 |
| 6,517 |
| - |
| Federal Home Loan Bank advances |
| 4,500 |
| 25,500 |
| 4,500 |
| Subordinated debt |
| 14,727 |
| 14,703 |
| 14,628 |
| Swap counterparty cash collateral |
| 4,090 |
| 4,000 |
| - |
| Deferred tax liability, net |
| - |
| - |
| - |
| Other liabilities |
| 7,904 |
| 7,619 |
| 6,605 |
| Total liabilities |
| 843,904 |
| 847,891 |
| 833,208 |
| SHAREHOLDERS' EQUITY |
| Common stock, $0.10 par value |
| $ |
| 289 |
| $ |
| 288 |
| $ |
| 288 |
| Additional paid-in capital |
| 31,107 |
| 30,668 |
| 31,790 |
| Retained earnings |
| 59,492 |
| 56,424 |
| 49,628 |
| Accumulated other comprehensive income (loss) |
| (17,512 |
| ) |
| (18,513 |
| ) |
| 2,345 |
| Total shareholders' equity |
| 73,376 |
| 68,867 |
| 84,051 |
| Total liabilities and shareholders' equity |
| $ |
| 917,280 |
| $ |
| 916,758 |
| $ |
| 917,259 |
| *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, 2022* |
| September 30, 2022* |
| December 31, 2021* |
| December 31, 2022* |
| December 31, 2021* |
| Non-interest income |
| Wealth management services |
| $ |
| 4,126 |
| $ |
| 4,014 |
| $ |
| 4,072 |
| $ |
| 16,377 |
| $ |
| 15,102 |
| Service charges on deposit accounts |
| 111 |
| 99 |
| 95 |
| 415 |
| 334 |
| Securities gains (losses), net |
| (588 |
| ) |
| 0 |
| 0 |
| (636 |
| ) |
| 0 |
| Bank owned life insurance income |
| 51 |
| 51 |
| 51 |
| 203 |
| 204 |
| Other |
| 63 |
| 103 |
| 28 |
| 253 |
| 281 |
| Total non-interest income |
| 3,763 |
| 4,267 |
| 4,246 |
| 16,612 |
| 15,921 |
| Interest income |
| Loans, including fees |
| $ |
| 8,017 |
| $ |
| 6,797 |
| $ |
| 4,762 |
| $ |
| 25,125 |
| $ |
| 18,325 |
| Taxable securities |
| 1,620 |
| 1,370 |
| 928 |
| 5,247 |
| 3,031 |
| Tax-exempt securities |
| 373 |
| 403 |
| 399 |
| 1,568 |
| 1,565 |
| Interest bearing deposits |
| 303 |
| 87 |
| 54 |
| 469 |
| 236 |
| Federal funds sold |
| 26 |
| 10 |
| 1 |
| 39 |
| 2 |
| Other interest income |
| 59 |
| 34 |
| 40 |
| 156 |
| 124 |
| Total interest income |
| 10,398 |
| 8,701 |
| 6,184 |
| 32,604 |
| 23,283 |
| Interest expense |
| Deposits |
| 3,485 |
| 1,914 |
| 617 |
| 6,792 |
| 2,247 |
| Subordinated debentures |
| 194 |
| 194 |
| 194 |
| 776 |
| 780 |
| Short-term borrowings |
| 42 |
| 6 |
| - |
| 52 |
| - |
| Long-term borrowings |
| 72 |
| 23 |
| 101 |
| 141 |
| 310 |
| Total interest expense |
| 3,793 |
| 2,137 |
| 912 |
| 7,761 |
| 3,337 |
| Net interest income |
| 6,605 |
| 6,564 |
| 5,272 |
| 24,843 |
| 19,946 |
| Provision for loan losses |
| 9 |
| 284 |
| 0 |
| 984 |
| 291 |
| Net interest income after provision for loan losses |
| 6,596 |
| 6,280 |
| 5,272 |
| 23,859 |
| 19,655 |
| Total revenue, net |
| 10,359 |
| 10,547 |
| 9,518 |
| 40,471 |
| 35,576 |
| Non interest expense |
| Salaries and employee benefits |
| 3,823 |
| 3,784 |
| 3,595 |
| 14,587 |
| 13,247 |
| Occupancy |
| 278 |
| 261 |
| 253 |
| 1,034 |
| 967 |
| Furniture and equipment |
| 25 |
| 25 |
| 33 |
| 112 |
| 154 |
| Data processing |
| 400 |
| 367 |
| 281 |
| 1,486 |
| 1,291 |
| Wealth management processing fees |
| 179 |
| 163 |
| 133 |
| 666 |
| 644 |
| Advertising and public relations |
| 78 |
| 30 |
| 116 |
| 162 |
| 215 |
| Professional services |
| 177 |
| 271 |
| 171 |
| 793 |
| 645 |
| FDIC insurance assessments |
| 55 |
| 77 |
| 73 |
| 246 |
| 214 |
| Other |
| 196 |
| 228 |
| 203 |
| 879 |
| 789 |
| Total non interest expense |
| 5,211 |
| 5,206 |
| 4,858 |
| 19,965 |
| 18,166 |
| Income before income taxes |
| 5,148 |
| 5,341 |
| 4,660 |
| 20,506 |
| 17,410 |
| Income tax expense |
| 1,098 |
| 1,002 |
| 623 |
| 3,780 |
| 2,869 |
| Net income |
| $ |
| 4,050 |
| $ |
| 4,339 |
| $ |
| 4,037 |
| $ |
| 16,726 |
| $ |
| 14,541 |
| Earnings per share: |
| Basic |
| $ |
| 1.40 |
| $ |
| 1.50 |
| $ |
| 1.40 |
| $ |
| 5.78 |
| $ |
| 5.05 |
| Diluted |
| $ |
| 1.40 |
| $ |
| 1.49 |
| $ |
| 1.39 |
| $ |
| 5.75 |
| $ |
| 5.02 |
| *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, 2022* |
| September 30, 2022* |
| December 31, 2021 |
| Per Common Share Data |
| Net income attributable to shareholders, per share |
| Basic |
| $1.40 |
| $1.50 |
| $1.40 |
| Diluted |
| $1.40 |
| $1.49 |
| $1.39 |
| Book value per common share |
| $25.39 |
| $23.84 |
| $29.19 |
| Tangible book value per common share |
| $25.39 |
| $23.84 |
| $29.19 |
| Basic weighted average common shares |
| 2,810,702 |
| 2,811,768 |
| 2,807,863 |
| Diluted weighted average common shares |
| 2,822,538 |
| 2,825,084 |
| 2,822,942 |
| Common shares outstanding at period end |
| 2,887,362 |
| 2,888,567 |
| 2,879,284 |
| Selected Balance Sheet Data |
| Tangible common equity (TEC) ratio |
| 8.00% |
| 7.51% |
| 9.16% |
| Average Loans |
| $616,609 |
| $589,143 |
| $477,005 |
| Average earning assets (1) |
| $939,763 |
| $898,926 |
| $853,925 |
| Average total assets |
| $943,900 |
| $908,753 |
| $884,235 |
| Average stockholders' equity |
| $70,128 |
| $72,918 |
| $82,430 |
| Selected Asset Quality Measures |
| Nonaccrual loans |
| $0 |
| $0 |
| $0 |
| 90+ days past due still accruing |
| $0 |
| $0 |
| $21 |
| Total nonperforming loans |
| $0 |
| $0 |
| $21 |
| Total nonperforming assets |
| $0 |
| $0 |
| $21 |
| Net charge offs (recoveries) |
| ($2) |
| $0 |
| $5 |
| 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 |
| 0.93% |
| 0.94% |
| 0.97% |
| Net charge offs to average loans |
| 0.00% |
| 0.00% |
| 0.00% |
| Capital Ratios (Bank Subsidiary Only) |
| Tier 1 leverage |
| 9.78% |
| 9.78% |
| 8.95% |
| Common equity tier 1 |
| 13.36% |
| 12.64% |
| 13.82% |
| Total risk-based capital |
| 14.20% |
| 13.46% |
| 14.66% |
| Selected Performance Ratios |
| Efficiency ratio |
| 48.55% |
| 48.07% |
| 51.04% |
| Return on average assets (ROA) |
| 1.70% |
| 1.89% |
| 1.81% |
| Return on average stockholders' equity (ROE) |
| 22.92% |
| 23.61% |
| 19.42% |
| Return on average tangible common equity (ROTCE) |
| 22.92% |
| 23.61% |
| 19.42% |
| Net interest margin |
| 2.83% |
| 2.95% |
| 2.48% |
| *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, 2022* |
| September 30, 2022* |
| December 31, 2021 |
| Average Balances |
| Rates/ Yields (%) |
| Interest Income/ Expense |
| Average Balances |
| Rates/ Yields (%) |
| Interest Income/ Expense |
| Average Balances |
| Rates/ Yields (%) |
| Interest Income/ Expense |
| Earning Assets |
| Loans |
| $ |
| 616,609 |
| 5.01 |
| $ |
| 7,905 |
| $ |
| 589,142 |
| 4.50 |
| $ |
| 6,680 |
| $ |
| 477,005 |
| 3.75 |
| $ |
| 4,513 |
| Loan fees |
| $ |
| 0 |
| 0.07 |
| $ |
| 1,112 |
| $ |
| 0 |
| 0.08 |
| $ |
| 117 |
| $ |
| 0 |
| 0.21 |
| $ |
| 249 |
| Loans with fees |
| $ |
| 616,609 |
| 5.16 |
| $ |
| 8,017 |
| $ |
| 589,142 |
| 4.58 |
| $ |
| 6,797 |
| $ |
| 477,005 |
| 3.96 |
| $ |
| 4,762 |
| Mortgage loans held for sale |
| $ |
| 0 |
| 0.00 |
| $ |
| 0 |
| $ |
| 0 |
| 0.00 |
| $ |
| 0 |
| $ |
| 0 |
| 0.00 |
| $ |
| 0 |
| Federal funds sold |
| $ |
| 2,688 |
| 3.76 |
| $ |
| 26 |
| $ |
| 1,722 |
| 2.22 |
| $ |
| 10 |
| $ |
| 2,902 |
| 0.09 |
| $ |
| 1 |
| Deposits with banks |
| $ |
| 31,462 |
| 3.82 |
| $ |
| 303 |
| $ |
| 14,641 |
| 2.35 |
| $ |
| 87 |
| $ |
| 86,039 |
| 0.25 |
| $ |
| 54 |
| Investment securities - taxable |
| $ |
| 228,108 |
| 2.84 |
| $ |
| 1,620 |
| $ |
| 227,715 |
| 2.41 |
| $ |
| 1,370 |
| $ |
| 219,861 |
| 1.69 |
| $ |
| 928 |
| Investment securities - tax-exempt |
| $ |
| 60,897 |
| 3.31 |
| $ |
| 372 |
| $ |
| 65,706 |
| 3.31 |
| $ |
| 402 |
| $ |
| 68,118 |
| 3.17 |
| $ |
| 399 |
| Total Earning Assets |
| $ |
| 939,764 |
| 4.43 |
| $ |
| 10,338 |
| $ |
| 898,926 |
| 3.89 |
| $ |
| 8,666 |
| $ |
| 853,925 |
| 2.93 |
| $ |
| 6,144 |
| Non interest earning assets |
| Allowance for loan losses |
| (5,783 |
| ) |
| (5,592 |
| ) |
| (4,778 |
| ) |
| Cash and due from banks |
| $ |
| 6,871 |
| $ |
| 7,018 |
| $ |
| 9,528 |
| Premises and equipment |
| $ |
| 224 |
| $ |
| 236 |
| $ |
| 346 |
| Accrued interest receivable |
| $ |
| 2,935 |
| $ |
| 2,526 |
| $ |
| 2,078 |
| Other real estate |
| $ |
| 0 |
| $ |
| 0 |
| $ |
| 0 |
| Other assets |
| $ |
| 30,251 |
| $ |
| 26,238 |
| $ |
| 19,929 |
| Unrealized gain (loss) on inv. securities |
| (30,362 |
| ) |
| (20,599 |
| ) |
| 3,207 |
| Total Assets |
| $ |
| 943,900 |
| $ |
| 908,753 |
| $ |
| 884,235 |
| Interest bearing liabilities |
| Interest bearing demand |
| $ |
| 380,638 |
| 2.23 |
| $ |
| 2,140 |
| $ |
| 358,489 |
| 1.28 |
| $ |
| 1,160 |
| $ |
| 386,173 |
| 0.55 |
| $ |
| 533 |
| Savings and money market |
| $ |
| 142,369 |
| 1.44 |
| $ |
| 515 |
| $ |
| 133,119 |
| 0.96 |
| $ |
| 321 |
| $ |
| 165,479 |
| 0.13 |
| $ |
| 56 |
| Time deposits - retail |
| $ |
| 24,280 |
| 1.41 |
| $ |
| 86 |
| $ |
| 24,663 |
| 1.14 |
| $ |
| 71 |
| $ |
| 10,917 |
| 0.48 |
| $ |
| 13 |
| Time deposits - wholesale |
| $ |
| 128,619 |
| 2.29 |
| $ |
| 744 |
| $ |
| 107,704 |
| 1.34 |
| $ |
| 363 |
| $ |
| 16,466 |
| 0.37 |
| $ |
| 15 |
| Total interest bearing deposits |
| $ |
| 675,906 |
| 2.05 |
| $ |
| 3,485 |
| $ |
| 623,975 |
| 1.22 |
| $ |
| 1,915 |
| $ |
| 579,035 |
| 0.42 |
| $ |
| 617 |
| Federal Home Loan Bank advances |
| $ |
| 9,957 |
| 2.85 |
| $ |
| 72 |
| $ |
| 5,283 |
| 1.69 |
| $ |
| 23 |
| $ |
| 10,683 |
| 5.27 |
| $ |
| 144 |
| Subordinated debt |
| $ |
| 14,827 |
| 5.12 |
| $ |
| 194 |
| $ |
| 14,943 |
| 5.07 |
| $ |
| 194 |
| $ |
| 14,757 |
| 5.15 |
| $ |
| 194 |
| Other borrowings |
| $ |
| 4,760 |
| 4.33 |
| $ |
| 42 |
| $ |
| 1,213 |
| 2.70 |
| $ |
| 5 |
| $ |
| 825 |
| 0.00 |
| $ |
| 0 |
| Total borrowed funds |
| $ |
| 29,544 |
| 4.08 |
| $ |
| 308 |
| $ |
| 21,439 |
| 4.06 |
| $ |
| 222 |
| $ |
| 26,265 |
| 5.05 |
| $ |
| 338 |
| Total interest bearing liabilities |
| $ |
| 705,450 |
| 2.13 |
| $ |
| 3,793 |
| $ |
| 645,414 |
| 1.31 |
| $ |
| 2,137 |
| $ |
| 605,300 |
| 0.62 |
| $ |
| 955 |
| Net interest rate spread |
| 2.30 |
| $ |
| 6,545 |
| 2.58 |
| $ |
| 6,529 |
| 2.30 |
| $ |
| 5,189 |
| Non-interest bearing deposits |
| $ |
| 163,653 |
| $ |
| 185,567 |
| $ |
| 190,156 |
| Other liabilities |
| $ |
| 4,671 |
| $ |
| 4,854 |
| $ |
| 6,347 |
| Stockholder's equity |
| $ |
| 70,128 |
| $ |
| 72,918 |
| $ |
| 82,430 |
| Total Liabilities and Stockholder's Equity |
| $ |
| 943,902 |
| $ |
| 908,753 |
| $ |
| 884,233 |
| Cost of funds |
| 1.73 |
| 1.02 |
| 0.47 |
| Net interest margin |
| 2.83 |
| 2.95 |
| 2.48 |
| *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, 2022* |
| December 31, 2021 |
| Average Balances |
| Rates/ Yields (%) |
| Interest Income/ Expense |
| Average Balances |
| Rates/ Yields (%) |
| Interest Income/ Expense |
| Earning Assets |
| Loans |
| $ |
| 562,647 |
| 4.35 |
| $ |
| 24,470 |
| $ |
| 455,847 |
| 3.73 |
| $ |
| 17,009 |
| Loan fees |
| $ |
| 0 |
| 0.12 |
| $ |
| 654 |
| $ |
| 0 |
| 0.29 |
| $ |
| 1,314 |
| Loans with fees |
| $ |
| 562,647 |
| 4.47 |
| $ |
| 25,124 |
| $ |
| 455,847 |
| 4.02 |
| $ |
| 18,323 |
| Mortgage loans held for sale |
| $ |
| 28 |
| 4.13 |
| $ |
| 1 |
| $ |
| 56 |
| 3.02 |
| $ |
| 2 |
| Federal funds sold |
| $ |
| 2,102 |
| 1.85 |
| $ |
| 39 |
| $ |
| 2,574 |
| 0.08 |
| $ |
| 2 |
| Deposits with banks |
| $ |
| 27,043 |
| 1.73 |
| $ |
| 469 |
| $ |
| 75,854 |
| 0.31 |
| $ |
| 236 |
| Investment securities - taxable |
| $ |
| 232,515 |
| 2.26 |
| $ |
| 5,247 |
| $ |
| 178,029 |
| 1.70 |
| $ |
| 3,031 |
| Investment securities - tax-exempt |
| $ |
| 64,684 |
| 3.28 |
| $ |
| 1,568 |
| $ |
| 65,444 |
| 3.23 |
| $ |
| 1,565 |
| Total Earning Assets |
| $ |
| 889,019 |
| 3.71 |
| $ |
| 32,448 |
| $ |
| 777,804 |
| 3.05 |
| $ |
| 23,159 |
| Non interest earning assets |
| Allowance for loan losses |
| (5,318 |
| ) |
| (4,625 |
| ) |
| Cash and due from banks |
| $ |
| 7,789 |
| $ |
| 10,397 |
| Premises and equipment |
| $ |
| 251 |
| $ |
| 379 |
| Accrued interest receivable |
| $ |
| 2,453 |
| $ |
| 2,091 |
| Other real estate |
| $ |
| 0 |
| $ |
| 0 |
| Other assets |
| $ |
| 25,359 |
| $ |
| 19,874 |
| Unrealized gain (loss) on inv. securities |
| (17,031 |
| ) |
| 4,878 |
| Total Assets |
| $ |
| 902,522 |
| $ |
| 810,798 |
| Interest bearing liabilities |
| Interest bearing demand |
| $ |
| 366,943 |
| 1.19 |
| $ |
| 4,350 |
| $ |
| 343,416 |
| 0.56 |
| $ |
| 1,928 |
| Savings and Money Market |
| $ |
| 143,591 |
| 0.68 |
| $ |
| 975 |
| $ |
| 151,590 |
| 0.14 |
| $ |
| 207 |
| Time deposits - retail |
| $ |
| 19,072 |
| 1.08 |
| $ |
| 205 |
| $ |
| 10,012 |
| 0.57 |
| $ |
| 57 |
| Time deposits - wholesale |
| $ |
| 89,916 |
| 1.40 |
| $ |
| 1,262 |
| $ |
| 18,493 |
| 0.30 |
| $ |
| 55 |
| Total interest bearing deposits |
| $ |
| 619,522 |
| 1.10 |
| $ |
| 6,792 |
| $ |
| 523,511 |
| 0.43 |
| $ |
| 2,247 |
| Federal Home Loan Bank advances |
| $ |
| 6,511 |
| 2.14 |
| $ |
| 141 |
| $ |
| 13,262 |
| 2.63 |
| $ |
| 354 |
| Subordinated debt |
| $ |
| 14,853 |
| 5.21 |
| $ |
| 780 |
| $ |
| 14,767 |
| 5.21 |
| $ |
| 780 |
| Other borrowings |
| $ |
| 2,124 |
| 2.54 |
| $ |
| 48 |
| $ |
| 963 |
| 0.00 |
| $ |
| 0 |
| Total borrowed funds |
| $ |
| 23,488 |
| 4.07 |
| $ |
| 969 |
| $ |
| 28,992 |
| 3.86 |
| $ |
| 1,134 |
| Total interest bearing liabilities |
| $ |
| 643,010 |
| 1.20 |
| $ |
| 7,761 |
| $ |
| 552,503 |
| 0.61 |
| $ |
| 3,381 |
| Net interest rate spread |
| 2.51 |
| $ |
| 24,687 |
| 2.44 |
| $ |
| 19,778 |
| Non-interest bearing deposits |
| $ |
| 180,665 |
| $ |
| 172,621 |
| Other liabilities |
| $ |
| 4,142 |
| $ |
| 6,010 |
| Stockholder's equity |
| $ |
| 74,771 |
| $ |
| 79,641 |
| Total Liabilities and Stockholder's Equity |
| $ |
| 902,588 |
| $ |
| 810,775 |
| Cost of funds |
| 0.94 |
| 0.46 |
| Net interest margin |
| 2.84 |
| 2.62 |
| *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. |