Truxton Corporation Reports First Quarter 2022 Results
FOR IMMEDIATE RELEASE
NASHVILLE, TN, April 21, 2022 – Truxton Corporation, the parent company for Truxton Trust Company (“Truxton” or “the Bank”) and subsidiaries, announced its operating results for the quarter ended March 31, 2022. First quarter net income attributable to common shareholders was $4.2 million or $1.45 per diluted share compared to $3.1 million or $1.06 per diluted share for the same quarter in 2021. Net income and fully diluted earnings per share for the quarter rose by 37% compared to the first quarter of 2021.
“Truxton has started strong in 2022 with our best quarter of earnings yet,” said Chairman and CEO Tom Stumb. “Our wealth management team’s continued success with new and existing clients overcame the headwinds of market volatility. The private banking team continues to grow the loan portfolio, helping to fund the growth of the Nashville area. Increasing interest rates have mostly benefitted the bank so far but a continued rapid rise could reduce our net interest margin (NIM) if deposit costs increase faster than our asset yields.”
- Non-interest income grew to $4.4 million in the first quarter, an increase of 3% from the fourth quarter of 2021 and 23% in comparison to the first quarter of 2021. Wealth management services constituted 96% of non-interest income in the first quarter of 2022 as it did in fourth quarter of 2021 and first quarter of 2021.
- Loans rose by 2% to $500 million compared to December 31, 2021 and were up 16% compared to March 31, 2021. Excluding loans made under the Paycheck Protection Program (PPP), loans rose by 2% compared to December 31, 2021, and 24% compared to March 31, 2021.
- Total deposits decreased by 4% from December 31, 2021, to $778 million, and increased by 19% in comparison to March 31, 2021. 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 first quarter of 2022 was 2.75%, an increase of 27 basis points from the 2.48% experienced in the quarter ended December 31, 2021, and an increase of 11 basis points from the quarter ended March 31, 2021. Cost of funds was 0.42% in the first quarter of 2022, down from 0.47% for the quarter ended December 31, 2021, and down from 0.49% for the quarter ended March 31, 2021.
- Asset quality remains sound at Truxton. Truxton had $0 in non-performing assets on March 31, 2022. Truxton had $0 of net charge-offs in the quarter, $5 thousand in the trailing quarter, and $1 thousand in the first quarter of 2021.
- Allowance for loan losses was $4.9 million, $4.8 million, and $4.6 million at quarter end March 31, 2022, December 31, 2021, and March 31, 2021, respectively. For the same three periods, the Bank’s allowance was 0.97%, 0.97%, and 1.05%, respectively, of gross loans outstanding at period end.
- The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 9.48% at March 31, 2022, 8.95% at December 31, 2021, and 9.39% at March 31, 2021. Book value per common share was $25.77, $29.19, and $25.93 at March 31, 2022, December 31, 2021, and March 31, 2021, respectively. The decline in book value from December 31, 2021, was driven by lower bond portfolio valuation due to the rapid rise in interest rates beyond the very front end of the yield curve. During the three months ended March 31, 2022, Truxton Corporation paid dividends of $1.34 per common share, inclusive of a $1.00 special cash dividend.
About Truxton Trust
Truxton Trust Company is a provider of private banking, wealth management, trust, capital markets 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.