Truxton Corporation Reports Third Quarter 2024 Results

Investor Relations
Austin Branstetter
615-250-0783
[email protected]

Media Relations
Swan Burrus
615-250-0773
[email protected]

Truxton Corporation

Consolidated Balance Sheets

(000’s)

(Unaudited)

September 30,
2024*

June 30,
2024*

September 30,
2023*

ASSETS

Cash and due from financial institutions

$

5,499

$

8,494

$

5,040

Interest bearing deposits in other financial institutions

24,678

3,851

7,589

Federal funds sold

4,816

–

956

Cash and cash equivalents

34,993

12,345

13,585

Time deposits in other financial institutions

245

490

740

Securities available for sale

295,905

286,977

259,543

Gross loans, excluding Paycheck Protection Program

664,630

648,300

641,697

Allowance for credit losses

(6,358

)

(6,234

)

(6,031

)

Paycheck Protection Program Loans

27

38

69

Net loans

658,299

642,104

635,735

Bank owned life insurance

16,602

11,512

10,751

Restricted equity securities

2,261

1,802

1,940

Premises and equipment, net

3,328

3,406

129

Accrued interest receivable

4,954

4,744

4,310

Deferred tax asset, net

4,649

5,386

7,910

Other assets

14,017

16,633

13,922

Total assets

$

1,035,253

$

985,399

$

948,566

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

Non-interest bearing

$

116,149

$

115,699

$

116,918

Interest bearing

$

772,612

724,251

$

663,950

Total deposits

888,761

839,950

780,868

Federal funds purchased

–

283

–

Swap counterparty cash collateral

1,890

5,000

4,820

Federal Home Loan Bank advances

13,250

2,250

4,500

Federal Reserve Bank Term Funding Program advances

10,000

20,000

55,000

Subordinated debt

14,401

14,213

14,291

Other liabilities

11,405

10,919

9,544

Total liabilities

939,707

892,615

869,023

SHAREHOLDERS’ EQUITY

Common stock, $0.10 par value

$

285

$

290

$

288

Additional paid-in capital

28,729

31,381

31,335

Retained earnings

62,548

63,782

52,780

Accumulated other comprehensive income (loss)

(9,434

)

(11,517

)

(18,167

)

Net Income

$

13,418

$

8,848

$

13,307

Total shareholders’ equity

95,546

92,784

79,543

Total liabilities and shareholders’ equity

$

1,035,253

$

985,399

$

948,566

*The information is preliminary, unaudited and based on company data available at the time of presentation.

Truxton Corporation

Consolidated Statements of Net Income

(000’s)

(Unaudited)

Three Months Ended

Year To Date

September 30,
2024*

June 30,
2024*

September 30,
2023*

September 30,
2024*

September 30,
2023*

Non-interest income

Wealth management services

$

5,267

$

5,206

$

4,608

$

15,380

$

13,222

Service charges on deposit accounts

92

90

117

275

398

Securities gains (losses), net

0

(213

)

0

(213

)

58

Bank owned life insurance income

90

62

54

209

159

Other

71

387

98

538

374

Total non-interest income

5,520

5,532

4,877

16,189

14,212

Interest income

Loans, including fees

$

10,654

$

10,459

$

9,715

$

31,470

$

27,308

Taxable securities

3,361

2,933

2,575

8,892

6,796

Tax-exempt securities

222

207

216

617

666

Interest bearing deposits

488

408

178

1,127

185

Federal funds sold

113

60

30

214

59

Other interest income

27

52

49

106

300

Total interest income

14,865

14,119

12,763

42,426

35,315

Interest expense

Deposits

7,667

6,939

5,679

21,056

14,833

Short-term borrowings

260

327

682

1,204

167

Long-term borrowings

51

13

90

79

1,769

Subordinated debentures

188

188

195

564

583

Total interest expense

8,166

7,467

6,646

22,903

17,353

Net interest income

6,699

6,652

6,117

19,523

17,962

Provision for credit losses

105

(27

)

6

72

81

Net interest income after provision for loan losses

6,594

6,679

6,111

19,451

17,881

Total revenue, net

12,114

12,211

10,988

35,640

32,093

Non interest expense

Salaries and employee benefits

4,044

3,897

3,819

12,017

11,247

Occupancy

315

484

313

1,252

913

Furniture and equipment

115

73

7

192

52

Data processing

625

439

470

1,482

1,352

Wealth management processing fees

221

208

188

643

530

Advertising and public relations

27

48

58

110

139

Professional services

609

272

263

1,091

297

FDIC insurance assessments

80

120

85

390

235

Other

406

1,048

111

1,732

932

Total non interest expense

6,442

6,589

5,314

18,909

15,698

Income before income taxes

5,672

5,622

5,674

16,731

16,395

Income tax expense

1,102

1,107

1,109

3,313

3,089

Net income

$

4,570

$

4,515

$

4,564

$

13,418

$

13,307

Earnings per share:

Basic

$

1.58

$

1.55

$

1.57

$

4.61

$

4.58

Diluted

$

1.57

$

1.55

$

1.57

$

4.60

$

4.57

*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.

Truxton Corporation

Selected Quarterly Financial data

At Or For The Three Months Ended

(000’s)

(Unaudited)

September 30, 2024*

June 30, 2024*

September 30, 2023*

Per Common Share Data

Net income attributable to common shareholders, per share

Basic

$1.58

$1.55

$1.57

Diluted

$1.57

$1.55

$1.57

Book value per common share

$33.30

$31.85

$27.43

Tangible book value per common share

$33.30

$31.85

$27.43

Basic weighted average common shares

2,819,035

2,830,894

2,829,139

Diluted weighted average common shares

2,823,728

2,838,321

2,836,187

Common shares outstanding at period end

2,869,015

2,912,781

2,900,171

Selected Balance Sheet Data

Tangible common equity (TCE) ratio

9.23%

9.42%

8.39%

Average Loans

$652,624

$655,486

$634,180

Average earning assets (1)

$1,006,370

$980,123

$943,585

Average total assets

$1,029,802

$998,799

$949,755

Average shareholders’ equity

$94,225

$90,929

$80,535

Selected Asset Quality Measures

Nonaccrual loans

$0

$0

$0

90+ days past due still accruing

$11

$0

$0

Total nonperforming loans

$11

$0

$0

Total nonperforming assets

$11

$0

$0

Net charge offs (recoveries)

$9

$0

($1)

Nonperforming loans to assets

0.00%

0.00%

0.00%

Nonperforming assets to total assets

0.00%

0.00%

0.00%

Nonperforming assets to total loans and other real estate

0.00%

0.00%

0.00%

Allowance for credit losses to total loans

0.96%

0.96%

0.94%

Net charge offs to average loans

0.00%

0.00%

0.00%

Capital Ratios (Bank Subsidiary Only)

Tier 1 leverage

10.46%

10.45%

10.36%

Common equity tier 1

15.17%

14.62%

14.11%

Total risk-based capital

16.11%

15.54%

15.04%

Selected Performance Ratios

Efficiency ratio

52.72%

52.72%

47.87%

Return on average assets (ROA)

1.77%

1.82%

1.91%

Return on average shareholders’ equity (ROE)

19.29%

19.97%

22.48%

Return on average tangible common equity (ROTCE)

19.29%

19.97%

22.48%

Net interest margin

2.69%

2.75%

2.61%

*The information is preliminary, unaudited and based on company data available at the time of presentation.

(1) Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, and investment securities.

Truxton Corporation

Yield Tables

For The Periods Indicated

(000’s)

(Unaudited)

The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest earning assets and interest bearing liabilities and the average interest rate for interest earning assets and interest bearing liabilities, net interest spread and net interest margin for the periods indicated below:

Three Months Ended

Three Months Ended

Three Months Ended

September, 30 2024*

June 30, 2024*

September, 30 2023*

Average
Balances

Rates/
Yields (%)

Interest
Income/
Expense

Average
Balances

Rates/
Yields (%)

Interest
Income/
Expense

Average
Balances

Rates/
Yields (%)

Interest
Income/
Expense

Earning Assets

Loans

$652,624

6.41

$10,520

$655,486

6.34

$10,332

$634,179

6.01

$9,602

Loan fees

$0

0.08

$134

$0

0.08

$127

$0

0.07

$112

Loans with fees

652,624

6.49

$10,654

$655,486

6.42

$10,459

634,180

6.08

$9,714

Mortgage loans held for sale

$0

0.00

$0

$0

0.00

$0

$0

0.00

$0

Federal funds sold

$8,367

5.28

$113

$4,476

5.32

$60

$2,293

5.20

$30

Deposits with banks

$35,784

5.43

$488

$27,887

5.88

$408

$13,213

5.34

$178

Investment securities – taxable

$273,488

4.92

$3,361

$257,470

4.56

$2,933

$255,822

4.03

$2,575

Investment securities – tax-exempt

$36,107

3.67

$222

$34,804

3.56

$207

$38,077

3.38

$216

      Total Earning Assets

$1,006,370

5.92

$14,838

$980,123

5.81

$14,067

$943,585

5.40

$12,713

Non interest earning assets

Allowance for loan losses

(6,224

)

(6,306

)

(5,989

)

Cash and due from banks

$6,529

$6,856

$5,814

Premises and equipment

$3,370

$2,698

$134

Accrued interest receivable

$3,746

$3,975

$3,443

Other real estate

$0

$0

$0

Other assets

$34,150

$32,919

$29,298

Unrealized gain (loss) on inv. securities

(18,139

)

(21,466

)

(26,530

)

      Total Assets

$1,029,802

$998,799

$949,755

Interest bearing liabilities

Interest bearing demand

$333,177

3.60

$3,018

$340,187

3.62

$3,062

$354,018

3.43

$3,062

Savings and money market

$195,751

3.60

$1,773

$175,264

3.55

$1,546

$132,842

2.67

$895

Time deposits – retail

$13,505

3.40

$115

$14,887

3.4

$126

$17,334

2.67

$117

Time deposits – wholesale

$226,673

4.85

$2,761

$201,005

4.41

$2,205

$147,046

4.33

$1,605

Total interest bearing deposits

$769,106

3.97

$7,667

$731,343

3.82

$6,939

$651,240

3.46

$5,679

Federal Home Loan Bank advances

$5,728

3.50

$51

$3,173

1.64

$13

$9,337

3.79

$91

Subordinated debt

$14,656

4.53

$188

$14,471

5.14

$188

$15,030

5.09

$195,399

Other borrowings

$24,011

4.22

$259

$30,973

4.18

$327

$60,606

4.40

$877

Total borrowed funds

$44,395

4.40

$499

$48,617

4.30

$528

$84,973

4.46

$968

      Total interest bearing liabilities

$813,501

3.99

$8,166

$779,960

3.85

$7,467

$736,213

3.57

$6,647

Net interest rate spread

1.93

$6,672

1.96

$6,600

1.83

$6,067

Non-interest bearing deposits

$118,216

$124,029

$127,389

Other liabilities

$3,860

$3,881

$5,308

Shareholder’s equity

$94,225

$90,929

$80,535

      Total Liabilities and Shareholder’s Equity

$1,029,802

$998,799

$949,445

Cost of funds

3.48

3.32

3.05

Net interest margin

2.69

2.75

2.61

*The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.

Yield Table Assumptions – Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.

Truxton Corporation

Yield Tables

For The Periods Indicated

(000’s)

(Unaudited)

The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest earning assets and interest bearing liabilities and the average interest rate for interest earning assets and interest bearing liabilities, net interest spread and net interest margin for the periods indicated below:

Nine Months Ended

Nine Months Ended

September 30, 2024*

September 30, 2023*

Average
Balances

Rates/
Yields (%)

Interest
Income/
Expense

Average
Balances

Rates/
Yields (%)

Interest
Income/
Expense

Earning Assets

Loans

$654,958

6.35

$31,113

$628,742

5.73

$26,967

Loan fees

$0

0.07

$358

$0

0.07

$342

Loans with fees

$654,958

6.42

$31,471

$628,742

5.81

$27,309

Mortgage loans held for sale

$0

0.00

$0

$0

0.00

$0

Federal funds sold

$5,377

5.22

$214

$1,544

5.08

$59

Deposits with banks

$27,765

5.42

$1,126

$13,532

4.91

$497

Investment securities – taxable

$258,878

4.58

$8,892

$247,046

3.67

$6,796

Investment securities – tax-exempt

$34,656

3.54

$617

$38,890

3.41

$666

      Total Earning Assets

$981,634

5.8

$42,320

$929,754

5.12

$35,327

Non interest earning assets

Allowance for loan losses

(6,279

)

(6,075

)

Cash and due from banks

$6,220

$6,148

Premises and equipment

$2,446

$167

Accrued interest receivable

$3,733

$3,169

Other real estate

$0

$0

Other assets

$32,526

$28,760

Unrealized gain (loss) on inv. securities

(20,560

)

(26,074

)

      Total Assets

$999,720

$935,849

Interest bearing liabilities

Interest bearing demand

$334,564

3.58

$8,978

$353,974

3.12

$8,263

Savings and Money Market

$177,950

3.52

$4,694

$133,262

2.35

$2,341

Time deposits – Retail

$14,646

3.41

$374

$17,446

2.33

$304

Time Deposits – Wholesale

$200,511

4.67

$7,010

$136,564

3.84

$3,926

Total interest bearing deposits

$727,671

3.87

$21,056

$641,247

3.09

$14,833

Federal home Loan Bank advances

$4,107

2.53

$79

$15,002

4.1

$467

Subordinated debt

$14,579

5.08

$564

$14,969

5.14

$583

Other borrowings

$37,299

4.43

$1,204

$43,646

4.44

$2,052

Total borrowed funds

$55,985

4.34

$1,847

$73,617

4.51

$2,519

      Total interest bearing liabilities

$783,657

3.90

$22,903

$714,864

3.24

$17,353

Net interest rate spread

1.90

$19,417

1.89

$17,975

Non-interest bearing deposits

$120,343

$139,068

Other liabilities

$4,178

$4,251

Shareholder’s equity

$91,542

$77,561

      Total Liabilities and Shareholder’s Equity

$999,720

$935,744

Cost of funds

3.38

2.71

Net interest margin

2.68

2.63

*The information is preliminary, unaudited and based on company data available at the time of presentation.

Yield Table Assumptions – Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.