Truxton Corporation Reports Third Quarter 2024 Results
NASHVILLE, Tenn., Oct. 17, 2024 (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 September 30, 2024. Third quarter net income attributable to common shareholders was $4.57 million, or $1.57 per diluted share, compared to $4.56 million, or $1.57 per diluted share, for the same quarter in 2023.
"Truxton once again produced strong performance in the third quarter despite some significant non-recurring expenses including those related to the conversion of our core system that should engender improved operations in the coming years," said Truxton Chairman Tom Stumb. "With net interest income up 10% and Wealth Management revenue up 14% from a year ago, we believe we are poised for excellent performance during the rest of the year and into 2025. Truxton thrives because our professional staff is distinctively capable, experienced and dedicated to service."
Key Highlights
Non-interest income was $5.5 million in the third quarter of 2024, which was $12 thousand lower than the second quarter of 2024 and $643 thousand over the third quarter of 2023. Wealth management constituted 95% of non-interest income in the third quarter of 2024, compared to 94% for both the second quarter of 2024 and third quarter of 2023.
Non-interest expense in the third quarter of 2024 declined by $147 thousand compared to the prior quarter. One-time expenses in the third quarter related to the bank's core system conversion totaled approximately $400 thousand.
Loans increased 2.5% to $665 million at quarter end compared to $648 million at June 30, 2024, and were up 3.6% compared to $642 million at September 30, 2023.
Total deposits increased by 6% from $840 million at June 30, 2024, to $889 million at September 30, 2024, and were 14% higher in comparison to $781 million at September 30, 2023. 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.
Net interest margin for the third quarter of 2024 was 2.69%, a decline of 6 basis points from the 2.75% experienced in the quarter ended June 30, 2024, and an increase of 8 basis points from the 2.61% recorded in the quarter ended September 30, 2023. Cost of funds was 3.48% in the third quarter of 2024, up from 3.32% the second quarter of 2024, and 3.05% over the third quarter of 2023.
Allowance for credit losses, excluding that for unfunded commitments, was $6.4 million at quarter end September 30, 2024, compared to $6.2 million at June 30, 2024, and $6.0 million at September 30, 2023. For those three periods, such allowance amounts were 0.96%, 0.96%, and 0.94%, respectively, of gross loans outstanding at period end. For the same three periods, the Bank's allowance for unfunded commitments was $409 thousand, $438 thousand, and $460 thousand, respectively.
The Bank's capital position remains strong. Its Tier 1 leverage ratio was 10.46% at September 30, 2024, compared to 10.45% at June 30, 2024, and 10.36% at September 30, 2023. Book value per common share was $33.30, $31.85, and $27.43 at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
During the nine months ended September 30, 2024, Truxton Corporation paid dividends of $2.29 per common share, inclusive of a $1.00 special cash dividend, and repurchased 59,717 shares of its common stock for $3.99 million in the aggregate, or an average price of $66.73 per share.
About Truxton Truxton is a premier provider of wealth, banking, 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 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.
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Truxton Corporation
Consolidated Balance Sheets
(000's)
(Unaudited)
September 30, 2024*
June 30, 2024*
September 30, 2023*
ASSETS
Cash and due from financial institutions
$
5,499
$
8,494
$
5,040
Interest bearing deposits in other financial institutions
24,678
3,851
7,589
Federal funds sold
4,816
-
956
Cash and cash equivalents
34,993
12,345
13,585
Time deposits in other financial institutions
245
490
740
Securities available for sale
295,905
286,977
259,543
Gross loans, excluding Paycheck Protection Program
664,630
648,300
641,697
Allowance for credit losses
(6,358
)
(6,234
)
(6,031
)
Paycheck Protection Program Loans
27
38
69
Net loans
658,299
642,104
635,735
Bank owned life insurance
16,602
11,512
10,751
Restricted equity securities
2,261
1,802
1,940
Premises and equipment, net
3,328
3,406
129
Accrued interest receivable
4,954
4,744
4,310
Deferred tax asset, net
4,649
5,386
7,910
Other assets
14,017
16,633
13,922
Total assets
$
1,035,253
$
985,399
$
948,566
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing
$
116,149
$
115,699
$
116,918
Interest bearing
$
772,612
724,251
$
663,950
Total deposits
888,761
839,950
780,868
Federal funds purchased
-
283
-
Swap counterparty cash collateral
1,890
5,000
4,820
Federal Home Loan Bank advances
13,250
2,250
4,500
Federal Reserve Bank Term Funding Program advances
10,000
20,000
55,000
Subordinated debt
14,401
14,213
14,291
Other liabilities
11,405
10,919
9,544
Total liabilities
939,707
892,615
869,023
SHAREHOLDERS' EQUITY
Common stock, $0.10 par value
$
285
$
290
$
288
Additional paid-in capital
28,729
31,381
31,335
Retained earnings
62,548
63,782
52,780
Accumulated other comprehensive income (loss)
(9,434
)
(11,517
)
(18,167
)
Net Income
$
13,418
$
8,848
$
13,307
Total shareholders' equity
95,546
92,784
79,543
Total liabilities and shareholders' equity
$
1,035,253
$
985,399
$
948,566
*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
September 30, 2024*
June 30, 2024*
September 30, 2023*
September 30, 2024*
September 30, 2023*
Non-interest income
Wealth management services
$
5,267
$
5,206
$
4,608
$
15,380
$
13,222
Service charges on deposit accounts
92
90
117
275
398
Securities gains (losses), net
0
(213
)
0
(213
)
58
Bank owned life insurance income
90
62
54
209
159
Other
71
387
98
538
374
Total non-interest income
5,520
5,532
4,877
16,189
14,212
Interest income
Loans, including fees
$
10,654
$
10,459
$
9,715
$
31,470
$
27,308
Taxable securities
3,361
2,933
2,575
8,892
6,796
Tax-exempt securities
222
207
216
617
666
Interest bearing deposits
488
408
178
1,127
185
Federal funds sold
113
60
30
214
59
Other interest income
27
52
49
106
300
Total interest income
14,865
14,119
12,763
