Truxton Corporation Reports Fourth Quarter And Full Year 2023 Results

FOR IMMEDIATE RELEASE                                                                       

NASHVILLE, TN, January 25, 2024 – Truxton Corporation, the parent company for Truxton Trust Company (“Truxton” or “the Bank”) and subsidiaries, announced its operating results for the quarter and year ended December 31, 2023.  Fourth quarter net income attributable to common shareholders was $4.2 million, or $1.46 earnings per diluted share, compared with $4.1 million, or $1.40 earnings per diluted share, for the same quarter in 2022. 

For the year ended December 31, 2023, net income increased by 4% to $17.5 million from $16.7 million in 2022. For the year ended December 31, 2023, earnings per diluted share rose to $6.02 from $5.75, an increase of 5% from 2022.

“In what was a very challenging year for all banks, we are pleased with our financial results,” said Chairman and CEO Tom Stumb.  “The strength of our business model and value to our customers was once again on display as Wealth Management revenue grew 8%, helping to offset Net Interest Margin compression.  We earned a return on average equity for the year of 22.3% - an outstanding achievement in any environment.” 

Key Highlights

  • Truxton partially restructured its fixed income investment portfolio in December and realized $445 thousand in losses on the sale of $8 million of investments. This restructuring allowed Truxton to improve its interest rate risk profile and should contribute to an increase in its future earnings. The after-tax cost of these losses lowered earnings per share by approximately $0.12 per share in the fourth quarter of 2023.  Excluding these losses, earnings per diluted share for the quarter would have been approximately $1.58, up from $1.57 in the third quarter of 2023 and $1.56 in the fourth quarter of 2022, excluding approximately $0.16 per share of securities restructuring realized losses in that quarter.
  • Non-interest income, excluding the restructuring losses, was $4.7 million in the fourth quarter of 2023, a decline of 4% from the third quarter of 2023 and up 8% in comparison to the fourth quarter of 2022. Wealth management services constituted 94% of non-interest income, excluding restructuring losses, in the fourth quarter of 2023. 
  • Loans rose 2.5% to $658 million at year end compared to $642 million on September 30, 2023, and were up 6% compared to $619 million on December 31, 2022.
  • Total deposits increased less than 1% from September 30, 2023, to $782 million at December 31, 2023, and declined 3% in comparison to December 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 (NIM) for the fourth quarter of 2023 was 2.78%, an increase of 17 basis points from the 2.61% experienced in the third quarter of 2023, but a decline of 5 basis points from the fourth quarter of 2022. Approximately half of the increase in quarter-over-quarter NIM was driven by a one-time loan prepayment fee.  Cost of funds was 3.15% in the fourth quarter of 2023, up from 3.05% for the quarter ended September 30, 2023, and an increase from 1.73% in the quarter ended December 31, 2022.   
  • Asset quality remains sound at Truxton. The Bank had no non-performing assets at December 31, 2023.  Truxton had $8 thousand of recoveries in the fourth quarter of 2023, $1 thousand in the trailing quarter, and $2 thousand in the fourth quarter of 2022. 
  • Truxton adopted the mandated Current Expected Credit Loss accounting methodology for calculating its allowance for credit losses effective January 1, 2023. The Allowance for Credit Losses was $6.3 million at quarter end December 31, 2023, and $6.0 million at quarter end September 30, 2023, excluding $0.4 million and $0.5 million in allowance for unfunded commitments, respectively, compared to Allowance for Loan and Lease Losses of $5.8 million at December 31, 2022. For the same three periods, the Bank’s loan-related allowance was 0.96%, 0.94%, and 0.93%, respectively, of gross loans outstanding at period end.
  • The Bank’s capital position remains strong. The Tier 1 leverage ratio was 10.53% at December 31, 2023, 10.36% at September 30, 2023, and 9.78% at December 31, 2022.  Book value per common share was $30.31, $27.43, and $25.39 at December 31, 2023, September 30, 2023, and December 31, 2022, respectively. 
  • During the twelve months ended December 31, 2023, Truxton Corporation paid dividends of $2.52 per common share, inclusive of a $1 special cash dividend, and repurchased 18 thousand shares of its common stock for $1.1 million, an average price of $59.95 per share.

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About Truxton
Truxton Trust Company is a 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