Truxton Corporation Reports Second Quarter 2023 Results
FOR IMMEDIATE RELEASE
NASHVILLE, TN, July 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 June 30, 2023. Second quarter net income attributable to common shareholders was $4.5 million or $1.53 per diluted share compared to $4.1 million or $1.41 per diluted share for the same quarter in 2022. Net income and fully diluted earnings per share for the quarter rose by 8% and 9%, respectively, compared to the second quarter of 2022.
“Truxton had another great quarter despite the challenges facing financial institutions,” said Chairman and CEO Tom Stumb. “Net interest margin compressed but our resilient business model with significant non-interest income allowed for continued earnings growth. Our home market of Nashville continues to experience exceptional strength, supporting our growth and credit quality.”
- Non-interest income grew to $4.8 million in the second quarter, an increase of 6% from the first quarter of 2023 and 13% higher in comparison to the second quarter of 2022. Wealth management services constituted 93% of non-interest income in the second quarter of 2023 compared to 94% in the first quarter of 2023 and 95% in the second quarter of 2022.
- Gross loans rose by less than 1% to $628 million at quarter end compared to $626 million on March 31, 2023 and were up 10% compared to $570 million on June 30, 2022.
- Total deposits increased by 2% from $771 million at March 31, 2023, to $790 million at June 30, 2023, and were 1% higher in comparison to $782 million at June 30, 2022. Truxton continues to principally 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 remain a fraction of typical peers.
- Net interest margin for the second quarter of 2023 was 2.54%, a decrease of 21 basis points from the 2.75% experienced in the quarter ended March 31, 2023, and 29 basis points lower than 2.83% in the quarter ended June 30, 2022. Cost of funds was 2.80% in the second quarter of 2023, up from 2.27% for the quarter ended March 31, 2023, and up from 0.50% for the quarter ended June 30, 2022.
- Asset quality remains sound at Truxton. Truxton had $0 in non-performing assets on June 30, 2023. Truxton had $0 of net charge-offs in the second quarter of 2023, $2 thousand in recoveries in the trailing quarter, and $0 of net charge-offs in the second 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 $6.0 million at quarter end June 30, 2023, and at quarter end March 31, 2023, each excluding $0.5 million in allowance for unfunded commitments, compared to Allowance for Loan and Lease Losses of $5.5 million at June 30, 2022. For the same three periods, the Bank’s allowance was 0.95%, 0.95%, and 0.96%, respectively, of gross loans outstanding at period end.
- The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.39% at June 30, 2023, compared to 10.29% at March 31, 2023, and 9.63% at June 30, 2022. Book value per common share was $27.01, $25.71, and $24.49 at June 30, 2023, March 31, 2023, and June 30, 2022, respectively. During the six months ended June 30, 2023, Truxton Corporation paid dividends of $1.76 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, 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.