Truxton Corporation Reports Second Quarter 2022 Results
FOR IMMEDIATE RELEASE
NASHVILLE, TN, July 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 June 30, 2022. Second quarter net income attributable to common shareholders was $4.1 million or $1.41 per diluted share compared to $3.6 million or $1.22 per diluted share for the same quarter in 2021. Net income and fully diluted earnings per share for the quarter rose by 16% compared to the second quarter of 2021.
“Truxton’s second quarter 2022 performance was exceptional despite market turbulence,” said Chairman and CEO Tom Stumb. “Wealth management revenue increased 9% from the same quarter last year as our team continued to earn the opportunity to serve new clients. The private banking team produced a record quarter of loan growth by finding creative lending solutions for our clients while maintaining our focus on credit quality. We expect the volatile market conditions we are currently experiencing to continue to create a challenging operating environment and to pressure earnings for the remainder of the year.”
- Pre-Provision Net Revenue (PPNR) for the second quarter was $5.58 million, an increase of 8.8% from the first quarter of 2022 and an increase of 30.3% compared to the second quarter of 2021. PPNR for the first half of 2022 was 33.4% higher than the first half of 2021.
- Non-interest income was $4.2 million in the second quarter, a decrease of 3% from the first quarter of 2022 but an 8% increase compared to the second quarter of 2021. Wealth management services constituted 96% of non-interest income in the second quarter of 2022.
- Loans rose by 11% to $565 million compared to March 31, 2022, and were up 25% compared to June 30, 2021. Excluding the $121 thousand in PPP loans on June 30, 2022, gross loans rose by 29% compared to June 30, 2021, when we had $15.1 million in PPP loans on the balance sheet.
- Total deposits increased by 0.50% from March 31, 2022, to $782 million on June 30, 2022, and increased by 11% in comparison to June 30, 2021. Wholesale and brokered deposits were a larger percentage of the funding mix in the second quarter of 2022 and contributed to increased deposit betas.
- Net interest margin for the second quarter of 2022 was 2.83%, an increase of 8 basis points from the 2.75% experienced in the first quarter of 2022, and an increase of 12 basis points from the second quarter of 2021. Cost of funds was 0.50% in the second quarter of 2022, up from 0.42% for the quarter ended March 31, 2022, and up from 0.46% for the quarter ended June 30, 2021.
- Asset quality remains sound at Truxton. Truxton had $0 in non-performing assets on June 30, 2022. Truxton also had $0 of net charge-offs in the quarter, $0 in the first quarter of 2022, and $2 thousand in the second quarter of 2021.
- Allowance for loan losses was $5.5 million, $4.8 million, and $4.6 million at quarter end June 30, 2022, March 31, 2022, and June 30, 2021, respectively. For the same three periods, the Bank’s allowance was 0.96%, 0.97%, and 1.00%, respectively, of gross loans (including PPP loans) outstanding at period end.
- The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 9.63% at June 30, 2022, 9.48% at March 31, 2022, and 9.47% at June 30, 2021. Book value per common share was $24.49, $25.77, and $27.35 at June 30, 2022, March 31, 2022, and June 30, 2021, respectively. Lower bond portfolio valuations caused largely by the rising interest rate environment continued to drive the decline in book value.
- During the second quarter of 2022, Truxton Corporation repurchased 22,000 shares of its common stock for $1.54 million, an average price of $70.05 per share. During the six months ended June 30, 2022, Truxton Corporation paid dividends of $1.68 per common share.
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.