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
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 Ended | Three Months Ended | ||||||||||||||||||||||
December 31, 2020* | September 30, 2020* | December 31, 2019* | ||||||||||||||||||||||
Average Balances | Rates/ Yields (%) | Interest Income/ Expense | Average Balances | Rates/ Yields (%) | Interest Income/ Expense | Average Balances | Rates/ 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 Balances | Rates/ Yields (%) | Interest Income/ Expense | Average Balances | Rates/ 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. |