Truxton Corporation Reports Fourth Quarter 2017 Results

NASHVILLE, Tenn., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Truxton Corporation (OTCPK:TRUX), a financial holding company and the parent of Truxton Trust Company (the “Bank”), reported consolidated net income of $1,453,000 for the fourth quarter of 2017, a 13.6 percent decrease compared with $1,682,000 for the fourth quarter of 2016. Earnings per fully diluted share for the quarter ended December 31, 2017, totaled $0.54 versus $0.62 for the same period in 2016.

For the twelve months ended December 31, 2017, the company reported net income of $6,178,000 compared to $5,505,000 for the comparable 2016 period, an increase of 12.2 percent. Earnings per fully diluted share for the twelve months ended December 31, 2017, totaled $2.28 versus $2.06 for the same period in 2016.

As seen industry wide, there were two items negatively impacting the firm’s most recent quarter and annual results for 2017:

  • Strategic, pre-tax investment securities losses of $210,000 for the three months and $189,000 for twelve months ended December 31, 2017
  • Resulting from the new corporate tax rate, after-tax charges related to the revaluation of the company’s deferred tax assets of $164,000 for the three months and twelve months ended December 31, 2017

Excluding these two items, earnings per fully diluted share were $0.64 and $2.39 for the three months and twelve months ended December 31, 2017, respectively.

At December 31, 2017, the company reported total assets of $437.7 million, a 7.5 percent increase from December 31, 2016. Over the same period, total loans increased 1.7 percent to $293.1 million, while deposits increased 7.1 percent at $363.0 million. At December 31, 2017, the Bank’s estimated Tier 1 leverage ratio was 10.54 percent.

Non-interest income for 2017 was $9,730,000 compared to $8,508,000 for 2016, an increase of 14.4 percent.

Tangible Book Value per share at December 31, 2017, was $18.92 compared to $17.41 at the same time a year ago, an 8.7 percent increase after paying $0.80 per share in dividends in the trailing twelve months.

“We had an excellent year in 2017, increasing fully diluted, adjusted EPS by 17 percent. Truxton Trust benefits from long-term relationships with our clients who value our remarkable professionals’ advice and guidance. We believe the tax law passed at year end 2017 will be very positive for Truxton Trust and our shareholders,” said Tom Stumb, Chairman and Chief Executive Officer.

About Truxton Trust
Truxton Trust is a full-service private bank and trust company founded in 2004. Since its inception, Truxton Trust has been focused on a singular guiding principle: do the right thing. Truxton Trust delivers the highest level of personal service through its vastly experienced and credentialed team of professionals who provide comprehensive and customized financial solutions to individuals, their families and their business interests.

Investor Relations
Andrew May
615-515-1707
andrew.may@truxtontrust.com

Media Relations
Tamara Schoeplein
615-515-1714
tamara.schoeplein@truxtontrust.com


Truxton Corporation
Consolidated Balance Sheet
(000's)
(Unaudited)
December 2017*December 2016
ASSETS
Cash and due from financial institutions$ 6,425 $ 6,547
Interest bearing deposits in other financial institutions 3,750 3,467
Federal funds sold 6 294
Cash and cash equivalents 10,181 10,308
Time deposits in other financial institutions 11,544 16,628
Securities available for sale 109,295 78,988
Gross loans 293,117 288,096
Allowance for loan losses (3,074) (2,998)
Net loans 290,043 285,098
Bank owned life insurance 9,535 9,304
Restricted equity securities 2,556 2,543
Premises and equipment, net 731 817
Accrued interest receivable 1,444 1,261
Other real estate owned - -
Deferred tax asset, net 363 830
Other assets 1,991 1,448
Total assets$ 437,683 $ 407,225
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing$ 87,049 $ 76,035
Interest bearing 275,906 262,896
Total deposits 362,955 338,931
Federal Home Loan Bank advances 20,198 20,522
Federal Funds purchased 1,071 -
Other liabilities 2,681 1,644
Total liabilities 386,905 361,097
SHAREHOLDERS' EQUITY
Common Stock & Additional paid-in capital 27,253 26,734
Retained earnings 23,570 19,519
Accumulated other comprehensive income (loss) (45) (125)
Total shareholders' equity 50,778 46,128
Total liabilities and shareholders' equity $ 437,683 $ 407,225
*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 Twelve Months Ended
December 2017* December 2016 December 2017* December 2016
Non-interest income
Wealth management services$ 2,406 $ 1,972 $ 9,108 $ 7,646
Service charges on deposit accounts 87 88 341 325
Bank owned life insurance income 56 61 231 244
Other (146) 91 50 293
Total non-interest income 2,403 2,212 9,730 8,508
Interest income
Loans, including fees$ 3,138 $ 2,921 $ 12,531 $ 11,310
Taxable securities 294 224 1,140 954
Tax-exempt securities 250 177 795 745
Interest bearing deposits 131 73 313 287
Federal funds sold 11 4 22 21
Total interest income 3,824 3,399 14,801 13,317
Interest expense
Deposits 411 285 1,451 1,046
Short-term borrowings - 62 332 266
Long-term borrowings 85 0 3 12
Total interest expense 496 347 1,786 1,324
Net interest income 3,328 3,052 13,015 11,993
Provision for loan losses 0 7 75 248
Net interest income after provision for loan losses 3,328 3,045 12,940 11,745
Total revenue, net 5,731 5,257 22,670 20,253
Non-interest expense
Salaries and employee benefits 2,607 2,007 9,557 8,192
Occupancy 180 159 718 664
Furniture and equipment 61 42 217 171
Data processing 328 375 1,218 1,158
Wealth management processing fees 99 178 475 523
Advertising and public relations 54 23 172 166
Professional services 55 126 617 663
FDIC insurance assessments 35 9 140 171
Other 194 93 801 876
Total non-interest expense 3,613 3,012 13,915 12,584
Income before income taxes 2,118 2,245 8,755 7,669
Income tax expense 665 563 2,577 2,164
Net income$ 1,453 $ 1,682 $ 6,178 $ 5,505
Earnings per share:
Basic$ 0.55 $ 0.63 $ 2.32 $ 2.09
Basic: Excluding gains and losses on sales of investment securities and revaluation of deferred tax assets$ 0.65 $ 0.63 $ 2.42 $ 2.07
Diluted$ 0.54 $ 0.62 $ 2.28 $ 2.06
Diluted: Excluding gains and losses on sales of investment securities and revaluation of deferred tax assets$ 0.64 $ 0.62 $ 2.39 $ 2.04
*The information is preliminary, unaudited and based on company data available at the time of presentation.


Truxton Corporation
Operating Statistics
(000's)
(Unaudited)
Three Months Ended Twelve Months Ended
December 2017December 2016 December 2017December 2016
Performance Ratios
Efficiency Ratio 61.46% 58.99% 60.93% 62.07%
Net Interest Margin 3.22% 3.21% 3.31% 3.15%
Capital Ratios
Return on Average Assets 1.31% 1.63% 1.46% 1.33%
ROAA excluding gains and losses on sales of investment securities and revaluation of deferred tax assets 1.55% 1.63% 1.52% 1.31%
Return on Average Equity 11.51% 14.36% 12.67% 12.22%
ROAE excluding gains and losses on sales of investment securities and revaluation of deferred tax assets 13.67% 14.36% 13.23% 12.09%
Tier 1 Leverage Ratio (Bank) 10.54% 10.50%
Asset Quality Data
Net Loan Charge-Offs $ - $ - $ - $ 4
Non-Performing Loans $ - $ 786 $ - $ 786
*The information is preliminary unaudited and based on company data available at the time of presentation.

Source:Truxton Trust Company