Truxton Corporation Reports Third Quarter 2019 Results
NASHVILLE, Tenn., Oct. 24, 2019 (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 quarter ended September 30, 2019. Third quarter net income attributable to common shareholders was $2.6 million or $0.91 per diluted share compared to $2.3 million or $0.82 per diluted share for the same quarter in 2018. Net income rose by 12% and earnings per diluted share rose by 11% for the quarter. For the nine months ended September 30, 2019, net income increased by 19% to $7.3 million from $6.1 million in the comparable period in 2018. For the nine months ended September 30, 2019, earnings per diluted share rose from $2.20 to $2.59, an increase of 18%.
“Truxton experienced record EPS in the quarter,” said Truxton Trust Chairman and CEO Tom Stumb. “Our returns to equity capital are very strong for the banking industry despite our conservative capital structure. This performance reflects the discipline of our experienced team, the attractiveness of our lines of business, and the strength of Nashville, our core market.”Key HighlightsNon-interest income grew to $3.0 million in the third quarter, an increase of 9% from the same period of 2018. Wealth management services constituted 89% of non-interest income in the quarter ended September 30, 2019. Loans rose by 10% to $336 million compared to September 30, 2018, and were up 2% compared to December 31, 2018. Average deposits increased 4% compared to September 30, 2018. 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 third quarter of 2019 was 3.26%. That represents a decline of 9 basis points from the 3.35% experienced in the quarter ended June 30, 2019, but an increase of 8 basis points from the quarter ended September 30, 2018. Cost of funds decreased to 0.98% in the third quarter of 2019 from 1.08% for the quarter ended June 30, 2019, but rose from 0.75% for the quarter ended September 30, 2018. Asset quality remains sound at Truxton. Truxton had no non-performing assets at September 30, 2019. Truxton had no charge-offs in the quarter and none in the trailing quarter, nor in the same quarter a year ago. Allowance for loan losses was $3.4 million, $3.4 million, and $3.1 million as of September 30, 2019, June 30, 2019, and September 30, 2018, respectively. At those same dates, the bank’s allowance was 1.01%, 1.02%, and 1.02%, respectively, of gross loans outstanding at period end.The Bank’s capital position remains strong. Tier 1 leverage ratio was 11.31% for September 30, 2019, 11.44% for June 30, 2019, and 10.55% for September 30, 2018. Book value per common share was $23.28, $22.47, and $19.27 at September 30, 2019, June 30, 2019, and September 30, 2018, respectively. During the 12 months ended September 30, 2019, Truxton Corporation paid dividends of $0.97 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.