FOR IMMEDIATE RELEASE                                                                       

NASHVILLE, TN, July 18, 2024 – 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, 2024.  Second quarter net income attributable to common shareholders was $4.51 million, or $1.55 per diluted share, compared to $4.45 million, or $1.53 per diluted share, for the same quarter in 2023.  Net income and fully diluted earnings per share for the quarter both rose by 1% compared to the second quarter of 2023.

“Truxton’s second quarter performance was strong in our core businesses, especially our wealth management component,” said Chairman and CEO Tom Stumb.  “The durability of our model and the value of our service to clients were again emphasized as we grew earnings despite a number of one-time items that were a net negative to our bottom line.” 

Key Highlights

• Non-interest income grew to $5.5 million in the second quarter of 2024, which was up $395 thousand over the first quarter of 2024 and $763 thousand over the second quarter of 2023. Wealth management constituted 94% of non-interest income in the second quarter of 2024, compared to 96% and 93%, for the first quarter of 2024 and second quarter of 2023, respectively.  Non-interest income for the quarter included hedge termination fees received by the bank that more than offset the loss on the sale of the hedged security.
• Non-interest expense in the second quarter of 2024 increased by $712 thousand compared to the prior quarter, driven by fraud losses of $733 thousand. Almost all this expense was related to a wire fraud incident for which the Bank is pursuing recovery.
• Our headquarters relocation in late May drove occupancy and professional services higher for the second quarter, while the depreciation of leasehold improvements, furniture and equipment will remain higher going forward.
• Loans declined by 2% to $648 million at quarter end compared to $660 million on March 31, 2024, and were up 3% compared to $628 million on June 30, 2023.
• Total deposits declined by 1% from $850 million at March 31, 2024, to $840 million at June 30, 2024, but were 6% higher in comparison to $790 million at June 30, 2023. 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.
• Net interest margin for the second quarter of 2024 was 2.75%, an increase of 13 basis points from the 2.62% experienced in the quarter ended March 31, 2024, and an increase of 21 basis points from the 2.54% recorded in the quarter ended June 30, 2023. Cost of funds was 3.32% in the second quarter of 2024, down from 3.33% for the quarter ended March 31, 2024, and up from 2.80% for the quarter ended June 30, 2023. 
• Allowance for credit losses, excluding that for unfunded commitments, was $6.2 million at quarter end June 30, 2024, compared to $6.3 million at March 31, 2024, and $6.0 million at June 30, 2023. For those three periods, such allowance amounts were 0.96%, 0.96%, and 0.95%, respectively, of gross loans outstanding at period end.  For the same three periods, the Bank’s allowance for unfunded commitments was $438 thousand, $374 thousand, and $511 thousand, respectively.
• The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.45% at June 30, 2024, compared to 10.40% at March 31, 2024, and 10.39% at June 30, 2023.  Book value per common share was $31.85, $30.62, and $27.01 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively.
• During the six months ended June 30, 2024, Truxton Corporation paid dividends of $1.86 per common share, inclusive of a $1.00 special cash dividend, and repurchased 15 thousand shares of its common stock for $964 thousand, an average price of $63.79 per share.

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About Truxton

Truxton is a premier 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 truxtontrust.com.