“Truxton performed well in the first quarter of 2023 despite continued financial market turbulence,” said Chairman and CEO
Key Highlights
- Non-interest income, excluding gains and losses on the sale of securities, grew to
$4.5 million in the first quarter, an increase of 2% from the fourth quarter of 2022 and 2% higher in comparison to the first quarter of 2022. Wealth management services constituted 94% of non-interest income, excluding those same gains and losses, in the first quarter of 2023 compared to 95% in the fourth quarter of 2022 and 96% in the first quarter of 2022. - Loans rose by 1% to
$626 million at quarter end compared to$619 million onDecember 31, 2022 and were up 24% compared to$505 million onMarch 31, 2022 . - Total deposits decreased by 4% from
$808 million atDecember 31, 2022 , to$771 million atMarch 31, 2023 , and were less than 1% lower in comparison to$778 million atMarch 31, 2022 . 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. As a result, occupancy expenditures and fixed asset investments are a fraction of typical peers. - Net interest margin for the first quarter of 2023 was 2.75%, a decrease of 8 basis points from the 2.83% experienced in the quarter ended
December 31, 2022 , and the same as in the quarter endedMarch 31, 2022 . Cost of funds was 2.27% in the first quarter of 2023, up from 1.73% for the quarter endedDecember 31, 2022 , and up from 0.42% for the quarter endedMarch 31, 2022 . - Asset quality remains sound at Truxton. Truxton had
$0 in non-performing assets onMarch 31, 2023 . Truxton had$12 thousand of net charge-offs in the first quarter of 2023,$2 thousand in recoveries in the trailing quarter, and$0 in the first quarter of 2022. - Truxton adopted the mandated Current Expected Credit Loss accounting methodology for calculating its allowance for credit losses effective
January 1, 2023 . Allowance for credit losses, excluding$507 thousand for unfunded commitments, was$6.0 million at quarter endMarch 31, 2023 , compared to Allowance for loans losses of$5.8 million atDecember 31, 2022 , and$4.9 million atMarch 31, 2022 . For the same three periods, the Bank’s allowance was 0.95%, 0.93%, and 0.97%, respectively, of gross loans outstanding at period end. - The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.29% at
March 31, 2023 , compared to 9.78% atDecember 31, 2022 , and 9.48% atMarch 31, 2022 . Book value per common share was$25.71 ,$25.39 , and$25.77 atMarch 31, 2023 ,December 31, 2022 , andMarch 31, 2022 , respectively. During the three months endedMarch 31, 2023 ,Truxton Corporation paid dividends of$1.38 per common share, inclusive of a$1.00 special cash dividend paid onMarch 25, 2023 .
About
Investor Relations | Media Relations |
Swan Burrus | |
615-250-0783 | 615-250-0773 |
austin.branstetter@truxtontrust.com | swan.burrus@truxtontrust.com |
Consolidated Balance Sheets | |||||||||
(000's) | |||||||||
(Unaudited) | |||||||||
ASSETS | |||||||||
Cash and due from financial institutions | $ | 8,955 | $ | 5,405 | $ | 8,837 | |||
Interest bearing deposits in other financial institutions | 4,322 | 1,094 | 42,375 | ||||||
Federal funds sold | 10 | - | 2,985 | ||||||
Cash and cash equivalents | 13,288 | 6,499 | 54,197 | ||||||
Time deposits in other financial institutions | 1,260 | 3,833 | 2,284 | ||||||
Securities available for sale | 253,372 | 257,257 | 293,588 | ||||||
Gross loans, excluding Paycheck Protection Program | 625,626 | 618,847 | 504,235 | ||||||
Allowance for credit losses** | (5,961 | ) | (5,761 | ) | (4,881 | ) | |||
Paycheck Protection Program Loans | 90 | 101 | 409 | ||||||
Net loans | 619,754 | 613,187 | 499,763 | ||||||
Bank owned life insurance | 10,644 | 10,592 | 10,439 | ||||||
Restricted equity securities | 5,391 | 3,227 | 3,250 | ||||||
Premises and equipment, net | 222 | 209 | 267 | ||||||
Accrued interest receivable | 9,752 | 3,512 | 2,479 | ||||||
Deferred tax asset, net | 6,842 | 7,161 | 3,107 | ||||||
Other assets | 1,369 | 11,803 | 5,790 | ||||||
Total assets | $ | 921,894 | $ | 917,280 | $ | 875,164 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Deposits | |||||||||
Non-interest bearing | $ | 151,956 | $ | 153,870 | $ | 180,743 | |||
Interest bearing | 619,542 | 653,880 | 597,310 | ||||||
Total deposits | 771,499 | 807,750 | 778,053 | ||||||
Federal funds purchased | 2,417 | 4,933 | - | ||||||
Swap counterparty cash collateral | 2,860 | 4,090 | - | ||||||
9,500 | 4,500 | 4,500 | |||||||
Federal Reserve Bank Term Funding Program advances | 40,000 | - | - | ||||||
Subordinated debt | 14,752 | 14,727 | 14,653 | ||||||
Other liabilities | 6,078 | 7,904 | 2,789 | ||||||
Total liabilities | 847,106 | 843,904 | 799,995 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock, | $ | 289 | $ | 289 | $ | 287 | |||
Additional paid-in capital | 31,336 | 31,107 | 32,113 | ||||||
Retained earnings | 59,281 | 59,492 | 49,946 | ||||||
Accumulated other comprehensive income (loss) | (16,118 | ) | (17,512 | ) | (7,177 | ) | |||
Total shareholders' equity | 74,788 | 73,376 | 75,169 | ||||||
Total liabilities and shareholders' equity | $ | 921,894 | $ | 917,280 | $ | 875,164 | |||
*The information is preliminary, unaudited and based on company data available at the time of presentation. **Prior quarter data shows Allowance for loan losses. Truxton adopted the Current Expected Credit Loss methodology as of |
Consolidated Statements of Net Income | |||||||||||
(000's) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
Non-interest income | |||||||||||
Wealth management services | $ | 4,171 | $ | 4,126 | $ | 4,182 | |||||
Service charges on deposit accounts | 136 | 111 | 99 | ||||||||
Securities gains (losses), net | 58 | (588 | ) | (18 | ) | ||||||
Bank owned life insurance income | 52 | 51 | 50 | ||||||||
Other | 91 | 63 | 48 | ||||||||
Total non-interest income | 4,508 | 3,763 | 4,361 | ||||||||
Interest income | |||||||||||
Loans, including fees | $ | 8,487 | $ | 8,017 | $ | 4,838 | |||||
Taxable securities | 1,954 | 1,620 | 1,114 | ||||||||
Tax-exempt securities | 233 | 373 | 396 | ||||||||
Interest bearing deposits | 61 | 303 | 31 | ||||||||
Federal funds sold | 11 | 26 | 1 | ||||||||
Other interest income | 65 | 59 | 16 | ||||||||
Total interest income | 10,812 | 10,398 | 6,396 | ||||||||
Interest expense | |||||||||||
Deposits | 4,216 | 3,485 | 586 | ||||||||
Short-term borrowings | 58 | 42 | 194 | ||||||||
Long-term borrowings | 237 | 72 | 23 | ||||||||
Subordinated debentures | 194 | 194 | 1 | ||||||||
Total interest expense | 4,705 | 3,793 | 804 | ||||||||
Net interest income | 6,107 | 6,605 | 5,592 | ||||||||
Provision for credit losses | 59 | 9 | 105 | ||||||||
Net interest income after provision for loan losses | 6,048 | 6,596 | 5,487 | ||||||||
Total revenue, net | 10,556 | 0 | 10,359 | 9,848 | |||||||
Non interest expense | |||||||||||
Salaries and employee benefits | 3,766 | 3,823 | 3,511 | ||||||||
Occupancy | 286 | 278 | 252 | ||||||||
Furniture and equipment | 25 | 25 | 32 | ||||||||
Data processing | 427 | 400 | 366 | ||||||||
Wealth management processing fees | 176 | 179 | 165 | ||||||||
Advertising and public relations | 46 | 78 | 32 | ||||||||
Professional services | 116 | 177 | 166 | ||||||||
75 | 55 | 57 | |||||||||
Other | 397 | 196 | 242 | ||||||||
Total non interest expense | 5,314 | 5,211 | 4,823 | ||||||||
Income before income taxes | 5,242 | 5,148 | 5,025 | ||||||||
Income tax expense | 951 | 1,098 | 798 | ||||||||
Net income | $ | 4,291 | $ | 4,050 | $ | 4,227 | |||||
Earnings per share: | |||||||||||
Basic | $ | 1.48 | $ | 1.40 | $ | 1.46 | |||||
Diluted | $ | 1.47 | $ | 1.40 | $ | 1.45 | |||||
*The information is preliminary, unaudited and based on company data available at the time of presentation. |
Selected Quarterly Financial data | |||
At Or For The Three Months Ended | |||
(000's) | |||
(Unaudited) | |||
Per Common Share Data | |||
Net income attributable to shareholders, per share | |||
Basic | |||
Diluted | |||
Book value per common share | |||
Tangible book value per common share | |||
Basic weighted average common shares | 2,820,892 | 2,810,702 | 2,793,014 |
Diluted weighted average common shares | 2,830,504 | 2,822,538 | 2,807,866 |
Common shares outstanding at period end | 2,908,483 | 2,887,362 | 2,917,044 |
Selected Balance Sheet Data | |||
Tangible common equity (TCE) ratio | 8.11% | 8.00% | 8.59% |
Average Loans | |||
Average earning assets (1) | |||
Average total assets | |||
Average stockholders' equity | |||
Selected Asset Quality Measures | |||
Nonaccrual loans | |||
90+ days past due still accruing | |||
Total nonperforming loans | |||
Total nonperforming assets | |||
Net charge offs (recoveries) | ( | ||
Nonperforming loans to assets | 0.00% | 0.00% | 0.00% |
Nonperforming assets to total assets | 0.00% | 0.00% | 0.00% |
Nonperforming assets to total loans and other real estate | 0.00% | 0.00% | 0.00% |
Allowance for credit losses to total loans** | 0.95% | 0.93% | 0.97% |
Net charge offs to average loans | 0.00% | 0.00% | 0.00% |
Capital Ratios (Bank Subsidiary Only) | |||
Tier 1 leverage | 10.29% | 9.78% | 9.48% |
Common equity tier 1 | 13.79% | 13.36% | 14.00% |
Total risk-based capital | 14.74% | 14.20% | 14.83% |
Selected Performance Ratios | |||
Efficiency ratio | 51.32% | 48.55% | 48.46% |
Return on average assets (ROA) | 1.89% | 1.70% | 1.98% |
Return on average stockholders' equity (ROE) | 23.05% | 22.92% | 20.64% |
Return on average tangible common equity (ROTCE) | 23.05% | 22.92% | 20.64% |
Net interest margin | 2.75% | 2.83% | 2.75% |
*The information is preliminary, unaudited and based on company data available at the time of presentation. | |||
**Prior quarter data shows Allowance for loan losses. Truxton adopted the Current Expected Credit Loss methodology as of | |||
(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, and investment securities. |
Yield Tables | ||||||||||||||||||||
For The Periods Indicated | ||||||||||||||||||||
(000's) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
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 | ||||||||||||||||||
Average Balances | Rates/ Yields (%) | Interest Income/ Expense | Average Balances | Rates/ Yields (%) | Interest Income/ Expense | Average Balances | Rates/ Yields (%) | Interest Income/ Expense | ||||||||||||
Earning Assets | ||||||||||||||||||||
Loans | 5.46 | 5.01 | 3.73 | |||||||||||||||||
Loan fees | 0.07 | 0.07 | 0.20 | |||||||||||||||||
Loans with fees | 5.53 | 5.16 | 3.93 | |||||||||||||||||
Mortgage loans held for sale | 0.00 | 0.00 | 3.72 | |||||||||||||||||
Federal funds sold | 5.15 | 3.76 | 0.17 | |||||||||||||||||
Deposits with banks | 4.38 | 3.82 | 0.37 | |||||||||||||||||
Investment securities - taxable | 3.29 | 2.84 | 1.86 | |||||||||||||||||
Investment securities - tax-exempt | 3.45 | 3.31 | 3.21 | |||||||||||||||||
Total Earning Assets | 4.84 | 4.43 | 3.13 | |||||||||||||||||
Non interest earning assets | ||||||||||||||||||||
Allowance for loan losses | (6,279 | ) | (5,783 | ) | (4,776 | ) | ||||||||||||||
Cash and due from banks | ||||||||||||||||||||
Premises and equipment | ||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||
Other real estate | ||||||||||||||||||||
Other assets | ||||||||||||||||||||
Unrealized gain (loss) on inv. securities | (26,077 | ) | (30,362 | ) | (630 | ) | ||||||||||||||
Total Assets | ||||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||
Interest bearing demand | 2.80 | 2.23 | 0.32 | |||||||||||||||||
Savings and money market | 1.70 | 1.44 | 0.33 | |||||||||||||||||
Time deposits - retail | 1.93 | 1.41 | 0.48 | |||||||||||||||||
Time deposits - wholesale | 3.24 | 2.29 | 0.22 | |||||||||||||||||
Total interest bearing deposits | 2.65 | 2.05 | 0.33 | |||||||||||||||||
4.09 | 2.85 | 1.48 | ||||||||||||||||||
Subordinated debt | 5.17 | 5.12 | 5.22 | |||||||||||||||||
Other borrowings | 4.29 | 4.33 | 1.23 | |||||||||||||||||
Total borrowed funds | 4.52 | 4.08 | 3.96 | |||||||||||||||||
Total interest bearing liabilities | 2.77 | 2.13 | 0.43 | |||||||||||||||||
Net interest rate spread | 2.08 | 2.30 | 2.70 | |||||||||||||||||
Non-interest bearing deposits | ||||||||||||||||||||
Other liabilities | ||||||||||||||||||||
Stockholder's equity | ||||||||||||||||||||
Total Liabilities and Stockholder's Equity | ||||||||||||||||||||
Cost of funds | 2.27 | 1.73 | 0.42 | |||||||||||||||||
Net interest margin | 2.75 | 2.83 | 2.75 | |||||||||||||||||
*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding. | ||||||||||||||||||||
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 (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category. |
Source:
2023 GlobeNewswire, Inc., source