NASHVILLE, Tenn., Jan. 28, 2021 (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 December 31, 2020. Fourth quarter net income attributable to common shareholders was $3.5 million or $1.23 per diluted share compared to $2.5 million or $0.88 per diluted share for the same quarter in 2019. Net income increased by 43.2% and earnings per diluted share increased by 39.7% for the quarter compared to the fourth quarter of 2019. For the twelve months ended December 31, 2020, net income increased by 14.4% to $11.1 million from $9.7 million in the comparable period in 2019. For the twelve months ended December 31, 2020, earnings per diluted share rose to $3.90 from $3.46, an increase of 12.7% from the comparable period in 2019.

During the fourth quarter, Truxton received notice from the Small Business Administration (SBA) that 134 loans totaling $22.2 million had been forgiven under the terms of the Paycheck Protection Program (PPP). Truxton recognized as income in the quarter the unamortized fees associated with these loans. In the quarter ended December 31, 2020, Truxton recognized $670 thousand of income from PPP fees. As of December 31, 2020, Truxton had $24.5 million in PPP loans outstanding with $429 thousand in unamortized fees. In addition, Truxton made loans in the quarter which qualify for tax credits under the Community Investment Tax Credit (CITC) program of the State of Tennessee. These credits reduced Truxton’s state tax provision by $325 thousand in the final quarter of 2020.

Chairman and CEO Tom Stumb remarked, “Truxton appreciates the patience and loyalty of our clients and the courage and dedication of our remarkable team of employees during a trying year. We were able to deliver a 16.1% return on our average equity capital (ROAE) for the full year, the highest in our history because Truxton performed superbly for clients throughout the year. Whether it was working nights and weekends to master the intricacies of the PPP loan program, or assisting families in managing wealth during a period of economic and political uncertainty, the Truxton team enhanced business and personal relationships with wonderful families and the businesses they own.”

Key Highlights

  • Wealth management revenue rose 19.5% in the fourth quarter of 2020 compared to the fourth quarter of 2019. Wealth management services constituted 95% of non-interest income in the fourth quarter ended December 31, 2020.
  • Loans rose by 15.4% to $420 million compared to December 31, 2019 and were up 1.3% compared to September 30, 2020.
  • We ended the fourth quarter with $24.5 million in loans outstanding pursuant to the Paycheck Protection Program (PPP) provisions of the CARES Act. These loans assisted our small business clients in covering payrolls and other essential costs during the pandemic period.
  • Total deposits grew to $624 million or 39.3% since December 31, 2019, inclusive of deposits added as a result of funding PPP loans and new business growth. 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 significantly less than many of our peers.
  • Net interest margin for the fourth quarter of 2020 was 2.95%. That represents an increase of 11 basis points from the 2.84% experienced in the quarter ended September 30, 2020, and a decline of 26 basis points from the quarter ended December 31, 2019. Cost of funds increased to 0.47% in the fourth quarter of 2020 from 0.35% for the quarter ended September 30, 2020 but declined from 0.95% for the quarter ended December 31, 2019. Net interest margin was negatively impacted by the PPP loans, which carry a 1% interest rate.
  • Asset quality remains sound at Truxton. Truxton had $2.0 million in non-performing assets at December 31, 2020, up from $0 at December 31, 2019. A single residential mortgage comprises over 95% of our non-performing loans.
  • Provision for loan losses was $228 thousand for the quarter ended December 31, 2020, an increase from no provision in the same quarter in 2019 and down from $262 thousand in the quarter ended September 30, 2020. Allowance for loan losses was $4.5 million, $4.3 million, and $3.4 million as of December 31, 2020, September 30, 2020, and December 31, 2019, respectively. For the three periods, the bank’s allowance was 1.07%, 1.03%, and 0.94%, of gross loans outstanding at period end, respectively. There is no allowance associated with the $24.5 million of PPP loans outstanding at December 31, 2020.
  • The Bank’s capital position remains strong. Tier 1 leverage ratio was 9.38% at December 31, 2020, 9.43% at September 30, 2020, and 11.30% at December 31, 2019. The reduction in Tier 1 leverage ratio for the year was principally the result of the significant asset growth experienced in the year. Book value per common share was $26.77, $25.27, and $22.84 at December 31, 2020, September 30, 2020, and December 31, 2019, respectively. During the 12 months ended December 31, 2020, Truxton Corporation paid dividends of $2.12 per common share.
  • With the onset of the pandemic in March 2020, Truxton began providing borrowers interest and/or principal payment deferrals for up to 180 days in an amount eventually impacting $63.6 million in loans, or 17% of non-PPP total loan balances.  As of December 31, 2020, those loans still receiving borrower payment deferrals totaled $5.8 million or 1.47% of non-PPP loans.

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)
    
 December 31,
2020*
September 30,
2020*
December 31,
2019*
ASSETS   
Cash and due from financial institutions$9,742 $12,772 $8,868 
Interest bearing deposits in other financial institutions 84,429  90,836  19,519 
Federal funds sold 169  2,223  8,808 
Cash and cash equivalents 94,340  105,831  37,195 
    
Time deposits in other financial institutions 2,687  2,938  5,157 
Securities available for sale 206,318  156,558  116,032 
    
Gross loans, excluding Paycheck Protection Program (PPP) Loans 395,106  367,689  363,784 
PPP Loans 24,522  46,684  - 
Allowance for loan losses (4,490) (4,257) (3,409)
Net loans 415,138  410,116  360,375 
    
Mortgage loans held for sale, net -  -  350 
Bank owned life insurance 10,185  10,132  9,973 
Restricted equity securities 3,214  3,206  2,599 
Premises and equipment, net 507  538  273 
Accrued interest receivable 2,653  2,850  1,842 
Deferred tax asset, net -  106  520 
Other assets 6,576  7,044  4,448 
    
Total assets$741,618 $699,319 $538,764 
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Deposits   
Non-interest bearing$170,251 $150,083 $119,999 
Interest bearing 453,774  388,959  328,077 
Total deposits 624,025  539,042  448,076 
    
Federal Home Loan Bank advances 17,673  17,867  18,411 
Paycheck Protection Program Liquidity Facility advances -  46,639  - 
    
Subordinated debt 14,529  14,574  - 
Deferred tax liability, net 479  -  - 
Other liabilities 8,254  9,527  8,914 
Total liabilities 664,960  627,649  475,401 
    
SHAREHOLDERS' EQUITY   
Additional paid-in capital 31,651  30,832  29,770 
Retained earnings 41,433  38,696  33,511 
Accumulated other comprehensive income 3,574  2,142  82 
    
Total shareholders' equity 76,658  71,670  63,363 
    
Total liabilities and shareholders' equity$741,618 $699,319 $538,764 
    
    
*The information is unaudited and based on company data available at the time of presentation. 
    



Truxton Corporation
Consolidated Statements of Net Income
(000's)
          
 Three Months Ended Year Ended
 December 31,
2020*
 September 30,
2020*
 December 31,
2019*
 December 31,
2020
 December 31,
2019
Non-interest income         
Wealth management services$3,101 $2,832 $2,596  $11,469 $10,746
Service charges on deposit accounts 59  59  82   256  303
Securities gains, net -  -  -   -  131
Bank owned life insurance income 53  53  54   212  218
Other 65  15  57   262  271
Total non-interest income 3,278  2,959  2,789   12,199  11,669
          
Gross loans, excluding Paycheck Protection Program (PPP) Loans     0   
PPP Loans$4,616 $4,126 $4,062  $17,201 $16,083
Taxable securities 646  472  584   2,137  2,060
Tax-exempt securities 347  299  196   1,088  887
Interest bearing deposits 79  90  125   332  744
Federal funds sold 1  2  8   19  34
 Other interest income 35  13  45   94  153
Total interest income 5,724  5,002  5,020   20,871  19,961
          
Interest expense         
Deposits 451  389  984   1,941  4,120
Short-term borrowings -  -  1   -  17
Subordinated debentures 194  -  -   194  -
Long-term borrowings 115  134  90   468   412
Total interest expense 760  523  1,075   2,603  4,549
          
Net interest income 4,964  4,479  3,945   18,268  15,412
          
Provision for loan losses 228  262  0   1,093  55
          
Net interest income after provision for loan losses 4,736  4,217  3,945   17,175  15,357
          
Total Revenue, net 8,014  7,176  6,734   29,374  27,026
          
Non interest expense         
Salaries and employee benefits 2,872  2,781  2,671   11,380  10,699
Occupancy 219  228  200   868  808
Furniture and equipment 46  46  27   153  108
Data processing 319  296  342   1,169  1,209
Wealth management processing fees 163  102  126   520  462
Advertising and public relations 66  30  121   163  198
Professional services 112  190  211   626  596
FDIC insurance assessments 52  45  (73)  150  32
Other 168  238  195   887  879
Total non interest expense 4,017  3,956  3,820   15,916  14,991
          
Income before income taxes 3,997  3,220  2,914   13,458  12,035
          
Income tax expense 457  693  441   2,309  2,293
          
Net income$3,540 $2,527 $2,473  $11,149 $9,742
          
Earnings per share:         
Basic$1.25 $0.89 $0.89  $3.94 $3.53
Diluted$1.23 $0.88 $0.88  $3.90 $3.46
*The information is 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)
    
 December 31, 2020*September 30, 2020*December 31, 2019*
    
Per Common Share Data   
Net income attributable to shareholders, per share   
Basic$1.25 $0.89 $0.89 
Diluted$1.23 $0.88 $0.88 
Book value per common share$26.77 $25.27 $22.84 
Tangible book value per common share$26.77 $25.27 $22.84 
Basic weighted average common shares 2,768,270  2,758,375  2,699,777 
Gross loans, excluding Paycheck Protection Program (PPP) Loans 2,794,461  2,789,562  2,754,101 
PPP Loans 2,863,671  2,836,451  2,774,655 
    
    
Selected Balance Sheet Data   
Tangible common equity (TEC) ratio 10.34%  10.32%  11.76% 
Average loans$420,106 $413,716 $348,635 
Average earning assets (1)$683,594 $642,326 $492,829 
Average total assets$719,206 $677,985 $518,902 
Average stockholders' equity$73,764 $71,183 $65,457 
    
    
Selected Asset Quality Measures   
Nonaccrual loans$2,017 $2,044  0 
90+ days past due still accruing$11 $0  0 
Total nonperforming loans$2,017 $2,044  0 
Total nonperforming assets$2,017 $2,044  0 
Net charge offs (recoveries)$12 $0 $1 
Nonperforming loans to assets 0.27%  0.29%  0.00% 
Nonperforming assets to total assets 0.27%  0.29%  0.00% 
Nonperforming assets to total loans and other real estate 0.48%  0.49%  0.00% 
Allowance for loan losses to gross loans 1.07%  1.03%  0.94% 
Net charge offs (recoveries) to average loans 0.00%  0.00%  0.00% 
    
    
Capital Ratios (Bank Subsidiary Only)   
Tier 1 leverage 9.38%  9.43%  11.30% 
Common equity tier 1 14.10%  14.60%  13.70% 
Total risk-based capital 15.05%  15.58%  14.51% 
    
Selected Performance Ratios    
Efficiency ratio 46.95%  53.01%  55.67% 
Return on average assets (ROA) 1.96%  1.48%  1.89% 
Return on average stockholders' equity (ROE) 19.09%  14.12%  15.77% 
Return on tangible common equity (ROTCE) 19.09%  14.12%  15.77% 
Net interest margin 2.95%  2.84%  3.21% 
    
*The information is 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) 
            
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 EndedThree Months Ended 
 December 31, 2020* September 30, 2020*December 31, 2019* 
            
 Average BalancesRates/ Yields (%)Interest Income/ Expense Average BalancesRates/ Yields (%)Interest Income/ ExpenseAverage BalancesRates/ Yields (%)Interest Income/ Expense 
            
Earning assets           
Gross loans, excluding Paycheck Protection Program (PPP) Loans$420,106 3.75 $3,957  $413,716 3.74 $3,891 $348,635 4.60$4,044 
PPP Loans$0 0.63 $665  $0 0.23 $240 $0 0.03$24 
      Loans with fees$420,106 4.38 $4,622  $413,716 3.97 $4,131 $348,635 4.63$4,068 
   Mortgage loans held for sale$78 3.33 $1  $0 0.00 $0 $13 3.55$0 
   Federal funds sold$2,581 0.14 $1  $4,340 0.17 $2 $1,944 1.66$8 
   Deposits with banks$77,539 0.41 $79  $83,360 0.43 $90 $25,747 1.93$125 
   Investment securities - taxable$127,864 2.02 $646  $96,081 1.96 $471 $89,614 2.61$584 
   Investment securities - tax-exempt$55,425 3.39 $347  $44,829 3.61 $299 $26,876 3.93$196 
      Total earning assets$683,593 3.39 $5,696  $642,326 3.16 $4,993 $492,829 4.07$4,981 
Non interest earning assets           
   Allowance for loan losses (4,359)    (4,122)   (3,411)   
   Cash and due from banks$11,611    $11,256   $8,263    
   Premises and equipment$500    $484   $1,623    
   Accrued interest receivable$2,573    $2,502   $1,600    
   Other real estate$0    $0   $0    
   Other assets$20,416    $20,485   $16,343    
   Unrealized gain (loss) on inv. securities 4,871     5,053    1,656    
      Total assets$719,205    $677,984   $518,903    
Interest bearing liabilities           
   Interest bearing demand$30,668 (0.08)($6) $31,416 (0.03)($3)$28,241 0.41$29 
   Savings and money market$487,041 0.34 $415  $454,105 0.31 $351 $349,734 0.84$737 
   Time deposits - retail$8,538 1.13 $24  $9,796 1.20 $30 $14,023 1.83$65 
   Time deposits - wholesale$22,451 0.31 $18  $15,285 0.27 $11 $8,695 6.99$153 
      Total interest bearing deposits$548,698 0.33 $451  $510,603 0.30 $389 $400,693 0.97$984 
   Federal Home Loan Bank advances$17,738 1.92 $87  $25,435 1.43 $93 $18,490 1.89$90 
   Subordinated debt$14,629 5.19 $194  $0 0.00 $0 $0 0.00$0 
   Other borrowings$31,730 1.10 $28  $48,454 0.33 $41 $1,417 0.21$1 
      Total borrowed funds$64,097 1.88 $309  $73,889 0.71 $134 $19,907 1.77$91 
      Total interest bearing liabilities$612,795 0.49 $760  $584,492 0.35 $523 $420,600 1.01$1,074 
Net interest rate spread 2.90 $4,936   2.81 $4,470  3.06$3,907 
   Non-interest bearing deposits$24,645    $14,564   $27,422    
   Other liabilities$7,787    $7,745   $5,423    
   Shareholder's equity$73,764    $71,183   $65,457    
      Total liabilities and shareholder's equity$718,991    $677,984   $518,902    
Cost of funds 0.47    0.35   0.95  
Net interest margin 2.95    2.84   3.21  
            
*The information is 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 or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. 
 
 
 
            



Truxton Corporation 
Yield Tables 
for the Periods Indicated 
(000's) 
          
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, 2020  December 31, 2019 
          
 Average BalancesRates/ Yields (%)Interest Income/ Expense  Average BalancesRates/ Yields (%)Interest Income/ Expense 
          
Earning assets         
Gross loans, excluding Paycheck Protection Program (PPP) Loans$405,363 3.97$16,099  $338,675 4.74$16,038 
PPP Loans$0 0.28$1,132  $0 0.03$87 
      Loans with fees$405,363 4.25$17,231  $338,675 4.76$16,125 
   Mortgage loans held for sale$72 3.86$3  $55 3.29$2 
   Federal funds sold$3,857 0.05$18  $1,570 2.16$34 
   Deposits with banks$59,043 0.56$332  $30,857 2.41$744 
   Investment securities - taxable$100,529 2.13$2,138  $79,071 2.61$2,060 
   Investment securities - tax-exempt$40,452 3.63$1,088  $30,856 3.89$887 
      Total earning assets$609,316 3.48$20,810  $481,084 4.19$19,852 
Non interest earning assets         
   Allowance for loan losses (3,900)     (3,393)   
   Cash and due from banks$10,074     $7,290    
   Premises and equipment$423     $1,537    
   Accrued interest receivable$2,181     $1,597    
   Other real estate$0     $0    
   Other assets$19,973     $16,111    
   Unrealized gain (loss) on inv. securities 3,579      607    
      Total assets$641,646     $504,833    
Interest bearing liabilities         
   Interest bearing demand$32,004 0.20$65  $27,131 0.69$187 
   Savings and money market$429,755 0.39$1,671  $342,244 1.05$3,584 
   Time deposits - retail$9,948 1.26$126  $12,203 1.49$181 
   Time deposits - wholesale$11,369 0.69$79  $7,131 2.35$167 
      Total interest bearing deposits$483,076 0.40$1,941  $388,709 1.06$4,119 
   Federal Home Loan Bank advances$24,942 1.47$372  $20,957 1.94$412 
   Subordinated debt$3,816 5.00$194  $0 0.00$0 
   Other borrowings$28,566 1.50$96  $1,817 0.93$17 
      Total borrowed funds$57,324 1.14$662  $22,774 1.86$429 
      Total interest bearing liabilities$540,400 0.48$2,603  $411,483 1.10$4,548 
Net interest rate spread 3.00$18,207   3.09$15,304 
   Non-interest bearing deposits$24,472     $27,400    
   Other liabilities$7,302     $4,141    
   Shareholder's equity$69,413     $61,783    
      Total liabilities and shareholder's equity$641,587     $504,807    
Cost of funds 0.46    1.04  
Net interest margin 3.05    3.25  
          
          
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 or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid.