Truxton Corporation Reports First Quarter 2020 Results

NASHVILLE, Tenn., April 16, 2020 (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, 2020.  First quarter net income attributable to common shareholders was $2.5 million or $0.87 per share compared to $2.2 million or $0.78 per share for the same quarter in 2019.  Net income rose by 13% for the quarter while earnings per share rose by 12%.
“We are very pleased with results in the first quarter, reflecting the dedication and hard work of the Truxton team,” stated Chairman and CEO Tom Stumb.  “By the end of the quarter, however, our country was facing an unprecedented public health crisis, dramatically reducing economic activity.  Truxton has taken extensive measures to protect the health of our staff and clients. We have begun efforts to work with our borrowers to give them the time to recover from the downturn, protect the assets of our shareholders.  Our wealth management clients continue to benefit from prudent asset selection and tax sensitive trading strategies.  The rest of the year will be challenging, but Truxton starts down this road with exceptionally strong capital, earnings, and credit quality.”Key HighlightsNon-interest income grew to $3 million in the first quarter, an increase of 8% from the fourth quarter of 2019 and 5% for the first quarter of 2019.  Wealth management services constituted 90% of non-interest income. Loans rose by 12% to $375 million compared to March 31, 2019, and were up 4% compared to December 31, 2019.  First quarter new loan production was $18.0 million. Total deposits decreased by 4% from December 31, 2019, and increased by 4% from March 31, 2019.  Truxton continues to fund its growth from a single banking location through 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 first quarter of 2020 was 3.38%.  That represents an increase of 17 basis points from the 3.21% experienced in the quarter ended December 31, 2019, and an increase of 15 basis points from the quarter ended March 31, 2019.  Cost of funds decreased to 0.71% in the first quarter of 2020 from 0.95% for the quarter ended December 31, 2019, and 1.14% for the quarter ended March 31, 2019. Truxton entered this period of declining rates with a strong book of fixed rate loans and investments.  Over the near term, declining rates should help our net interest margin.Asset quality remains sound at Truxton.  Truxton had no non-performing assets at March 31, 2020.  Truxton had $2 thousand of charge-offs in the quarter and none in the trailing quarter, nor in the same quarter a year ago. Allowance for loan losses was $3.6 million, $3.4 million, and $3.4 million at quarter end for March 31, 2020, December 31, 2019, and March 31, 2019, quarters, respectively.   For the three periods, the Bank’s allowance was 0.95%, 0.94%, and 0.99%, of gross loans outstanding at period end, respectively.Tax expense increased by 25% from the December 31, 2019 quarter and by 5% from the March 31, 2019 period.  Effective tax rate was low in the final quarter of 2019 because of certain loans, funded late in the year, for which Truxton receives a direct credit against state income tax based on the year-end balance of the loan.  Truxton believes that the effective tax rate of approximately 19% of pretax net income will persist under current state and federal law. Truxton has several sources of lightly taxed income including 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.The Bank’s capital position remains strong.  Its Tier 1 leverage ratio was 11.21% for March 31, 2020, 11.30% for December 31, 2019, and 11.15% for March 31, 2019.  Book value per common share was $23.19, $22.84, and $21.52 for March 31, 2020, December 31, 2019, and March 31, 2019, respectively.  During the 12 months ended March 31, 2020, Truxton Corporation paid dividends of $2.03 per common 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
Andrew May
615-515-1707
andrew.may@truxtontrust.com