Truxton Corporation Reports First Quarter 2023 Results
FOR IMMEDIATE RELEASE
NASHVILLE, TN, April 20, 2023 – 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, 2023. First quarter net income attributable to common shareholders was $4.3 million or $1.47 per diluted share compared to $4.2 million or $1.45 per diluted share for the same quarter in 2022. Net income and fully diluted earnings per share for the quarter rose by 2% and 1%, respectively, compared to the first quarter of 2022.
“Truxton performed well in the first quarter of 2023 despite continued financial market turbulence,” said Chairman and CEO Tom Stumb. “In light of recent banking industry turmoil, it is important to highlight that our conservative asset liability management has always been a key pillar of strength for our business. Volatility in stock and bond markets also continues to be a headwind. Wealth Management Services revenue was down only $10 thousand for the quarter compared to first quarter 2022 while many market indices were down more than 10% over the same period. Net interest margin for the quarter held steady year-over-year despite a dramatic shift in the interest rate environment during the same period. The market environment remains challenging, but we continue to seek to serve our shareholders well by striving to serve our clients well.”
- 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 on December 31, 2022 and were up 24% compared to $505 million on March 31, 2022.
- Total deposits decreased by 4% from $808 million at December 31, 2022, to $771 million at March 31, 2023, and were less than 1% lower in comparison to $778 million at March 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 ended March 31, 2022. Cost of funds was 2.27% in the first quarter of 2023, up from 1.73% for the quarter ended December 31, 2022, and up from 0.42% for the quarter ended March 31, 2022.
- Asset quality remains sound at Truxton. Truxton had $0 in non-performing assets on March 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 end March 31, 2023, compared to Allowance for loans losses of $5.8 million at December 31, 2022, and $4.9 million at March 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% at December 31, 2022, and 9.48% at March 31, 2022. Book value per common share was $25.71, $25.39, and $25.77 at March 31, 2023, December 31, 2022, and March 31, 2022, respectively. During the three months ended March 31, 2023, Truxton Corporation paid dividends of $1.38 per common share, inclusive of a $1.00 special cash dividend paid on March 25, 2023.
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.