NASHVILLE, Tenn., July 16, 2020 (GLOBE NEWSWIRE) -- Truxton Corporation (OTCPK: TRUX), the parent company for Truxton Trust Company (“Truxton” or “the Bank”) and subsidiaries, announced its operating results for the quarter ended June 30, 2020.  Second quarter net income attributable to common shareholders was $2.6 million or $0.92 per diluted share compared to $2.5 million or $0.90 per diluted share for the same quarter in 2019.  Net income rose by 4% for the quarter while diluted earnings per share rose by 2%.  For the six months ended June 30, 2020, net income increased by 8% to $5.1 million from $4.7 million in the comparable period in 2019.  For the six months ended June 30, 2020, earnings per diluted share rose to $1.81 from $1.69, an increase of 7%.

Chairman and CEO Tom Stumb remarked, “Truxton continued to perform well as we strove to serve our customers while protecting them and our tireless staff from COVID-19. There remains significant uncertainty about the strength of the economy and the potential risks in our loan portfolio, so we have added meaningfully to our allowance for loan and lease losses.”

Key Highlights

• Non-interest income experienced a slight decline to $2.9 million from $3.0 million in the second quarter of 2020, a decrease of 2% from the same period of 2019.  Wealth management services contributed 95% of non-interest income in the quarter ended June 30, 2020. 
• Loans increased by 25% to $420 million compared to June 30, 2019, and were up 15% compared to December 31, 2019.
• We ended the second quarter with $46 million in loans made pursuant to the Paycheck Protection Program (PPP) provisions of the CARES Act, assisting our small business clients to cover payrolls and other essential costs during this pandemic period.
• In the second quarter, our allowance for loan and lease losses (ALLL) increased by $411 thousand, a 12% increase from quarter ended March 31, 2020, and a 17% increase from the same quarter in 2019.
• Total deposits grew 28% since June 30, 2019, inclusive of deposits added as a result of funding PPP loans.  Truxton continues to fund its growth from a single banking location through superior deposit operations service and technology.  As a result, occupancy expenditures and fixed asset investments are significantly smaller than typical peers.
• Net interest margin for the second quarter of 2020 was 3.13%.  That represents a decrease of 25 basis points from the 3.38% experienced in the quarter ended March 31, 2020, and a decline of 22 basis points from the quarter ended June 30, 2019.  Cost of funds decreased to 0.36% in the second quarter of 2020 from 0.71% for the quarter ended March 31, 2020, and 1.08% for the quarter ended June 30, 2019.  Net interest margin was negatively impacted by the PPP loans, which carry a 1% interest rate. 
• Asset quality remains sound at Truxton.  Truxton had $2.0 million in non-performing assets at June 30, 2020, up from $0 in the same quarter a year ago. A single residential mortgage comprises over 95% of our non-performing loans.  Truxton had $8 thousand of charge-offs in the quarter and $2 thousand in the first quarter of 2020. 
• Allowance for loan losses was $4.0 million, $3.6 million, and $3.4 million as of June 30, 2020, March 31, 2020, and June 30, 2019, respectively.  For the three periods, the bank’s allowance was 0.95%, 0.95%, and 1.02%, of gross loans outstanding at period end, respectively. There is no allowance associated with the $46 million of PPP loans.
• Tax expense increased by 11% from the March 31, 2020 quarter but decreased by 9% from the June 30, 2019 quarter. 
• The Bank’s capital position remains strong.  Tier 1 leverage ratio was 9.82% at June 30, 2020, 11.21% at March 31, 2020, and 11.44% at June 30, 2019.  The reduction in Tier 1 leverage ratio for the quarter was principally the result of the significant asset growth experienced in the quarter, which was largely driven by the PPP loans.  Book value per common share was $24.41, $23.19, and $22.47 for June 30, 2020, March 31, 2020, and June 30, 2019, respectively.  During the 12 months ended June 30, 2020, Truxton Corporation paid dividends of $2.06 per common share.

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. 

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 Sheets
(000's)
(Unaudited)
	June 30, 2020*			March 31, 2020*			June 30, 2019*
ASSETS
Cash and due from financial institutions	$	10,831		$	6,863		$	7,951
Interest bearing deposits in other financial institutions		69,772			7,964			12,712
Federal funds sold		8,559			2,038			253
Cash and cash equivalents		89,162			16,865			20,916
Time deposits in other financial institutions		4,683			4,659			12,288
Securities available for sale		137,372			122,112			102,304
Gross loans		373,263			378,512			335,639
Allowance for loan losses		(4,003	)		(3,592	)		(3,411	)
Paycheck Protection Program Loans		46,639			-			-
Net loans		415,899			374,920			332,228
Bank owned life insurance		10,079			10,026			9,864
Restricted equity securities		2,695			2,606			2,588
Premises and equipment, net		454			376			354
Accrued interest receivable		2,447			1,865			1,817
Deferred tax asset, net		-			802			321
Mortgage loans held for sale,et		-			560			480
Other assets		7,808			6,767			4,648
Total assets	$	670,599		$	541,558		$	487,808
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$	158,062		$	120,269		$	104,475
Interest bearing		354,346			309,031			296,549
Total deposits		512,408			429,300			401,024
Federal Home Loan Bank advances		33,036			38,262			18,833
Paycheck Protection Program Liquidity Facility advances		46,639			-			-
Federal Funds purchased		-			-			-
Other liabilities		9,303			8,648			5,988
Total liabilities		601,386			476,210			425,845
SHAREHOLDERS' EQUITY
Additional paid-in capital		30,591			30,362			29,066
Retained earnings		36,971			35,151			32,610
Accumulated other comprehensive income (loss)		1,651			(166	)		287
Total shareholders' equity		69,213			65,347			61,963
Total liabilities and shareholders' equity	$	670,599		$	541,557		$	487,808
*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
	June 30, 2020*			March 31, 2020*			June 30, 2019*			June 30, 2020*			June 30, 2019*
Non-interest income
Wealth management services	$	2,793		$	2,742		$	2,783		$	5,535		$	5,456
Service charges on deposit accounts		60			79			74			139			144
Securities gains (losses), net		0			0			70			0			72
Bank owned life insurance income		53			54			55			107			109
Other		34			148			10			182			82
Total non-interest income		2,940			3,023			2,992			5,963			5,863
Interest income
Loans, including fees	$	4,282		$	4,177		$	4,093		$	8,459		$	8,014
Taxable securities		486			534			471			1,020			970
Tax-exempt securities		245			196			237			441			484
Interest bearing deposits		54			109			161			163			317
Federal funds sold		2			14			7			16			12
Other interest income		34			12			51			46			83
Total interest income		5,103			5,042			5,020			10,145			9,880
Interest expense
Deposits		371			732			1,041			1,102			2,122
Short-term borrowings		-			-			9			-			16
Long-term borrowings		129			91			111			220			233
Total interest expense		500			823			1,161			1,322			2,371
Net interest income		4,603			4,219			3,859			8,823			7,509
Provision for loan losses		418			185			55			603			55
Net interest income after provision for loan losses		4,185			4,034			3,804			8,220			7,454
Total revenue, net		7,125			7,057			6,796			14,183			13,317
Non interest expense
Salaries and employee benefits		2,797			2,928			2,575			5,726			5,367
Occupancy		222			199			207			422			405
Furniture and equipment		30			26			27			56			55
Data processing		290			263			278			552			579
Wealth management processing fees		130			124			110			254			222
Advertising and public relations		25			43			20			68			57
Professional services		156			168			145			324			260
FDIC insurance assessments		38			15			35			53			70
Other		215			264			212			479			406
Total non interest expense		3,903			4,030			3,609			7,934			7,421
Income before income taxes		3,222			3,027			3,187			6,249			5,896
Income tax expense		608			550			668			1,159			1,191
Net income	$	2,614		$	2,477		$	2,519		$	5,090		$	4,705
Earnings per share:
Basic	$	0.93		$	0.88		$	0.92		$	1.83		$	1.72
Diluted	$	0.92		$	0.87		$	0.90		$	1.81		$	1.69
*The information is preliminary, unaudited and based on company data available at the time of presentation.

Truxton Corporation
Selected Quarterly Financial data
At Or For The Three Months Ended
(000's)
(Unaudited)
	June 30, 2020*	March 31, 2020*	June 30, 2019*
Per Common Share Data
Net income attributable to shareholders, per share
Basic	$0.93	$0.88	$0.92
Diluted	$0.92	$0.87	$0.90
Book value per common share	$24.41	$23.19	$22.47
Tangible book value per common share	$24.41	$23.19	$22.47
Basic weighted average comm shares	2,740,504	2,729,167	2,675,283
Diluted weighted average common shares	2,768,173	2,761,639	2,727,375
Common shares outstanding at period end	2,834,951	2,817,354	2,758,109
Selected Balance Sheet Data
Tangible common equity (TEC) ratio	10.32%	12.07%	12.70%
Average Loans	$419,360	$368,017	$339,174
Average earning assets (1)	$599,030	$510,649	$470,691
Average total assets	$629,800	$538,336	$493,510
Average stockholders' equity	$67,204	$65,434	$60,524
Selected Asset Quality Measures
Nonaccrual loans	2059	0	0
90+ days past due still accruing	0	0	0
Total nonperforming loans	2059	0	0
Total nonperforming assets	2059	0	0
Net charge offs (recoveries)	8	2	(2)
Nonperforming loans to assets	0.31%	0.00%	0.00%
Nonperforming assets to total assets	0.31%	0.00%	0.00%
Nonperforming assets to total loans and other real estate	0.55%	0.00%	0.00%
Allowance for loan losses to total loans	0.95%	0.95%	1.02%
Allowance for loan losses to nonperforming loans	0.49%	NA	NA
Net charge offs (recoveries) to average loans	0.00%	0.00%	0.00%
Capital Ratios (Bank Subsidiary Only)
Tier 1 leverage	9.82%	11.21%	11.44%
Common equity tier 1	13.61%	13.41%	15.06%
Total risk-based capital	14.49%	14.21%	15.97%
Selected Performance Ratios
Efficiency ratio	54.22%	65.74%	54.31%
Return on average assets (ROA)	1.67%	1.85%	2.05%
Return on average stockholders' equity (ROE)	15.64%	15.22%	16.69%
Return on tangible common equity (ROTCE)	15.64%	15.22%	16.69%
Net interest margin	3.13%	3.38%	3.35%
*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, investment securities and restricted equity 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
	June 30, 2020*						March 31, 2020*						June 30, 2019*
	Average Balances		Rates/ Yields (%)	Interest Income/ Expense			Average Balances		Rates/ Yields (%)	Interest Income/ Expense			Average Balances		Rates/ Yields (%)	Interest Income/ Expense
Earning Assets
Loans	$419,360		3.92	$4,092			$368,017		4.55	$4,159			$339,175		4.81	$4,070
Loan fees	$0		0.19	$194			$0		0.04	$34			$0		0.04	$30
Loans with fees	$419,360		4.11	$4,286			$368,017		4.58	$4,193			$339,175		4.85	$4,100
Mortgage loans held for sale	$87		5.20	$1			$122		3.23	$1			$71		2.99	$1
Federal funds sold	$5,372		0.12	$2			$3,143		1.75	$14			$1,042		2.58	$7
Deposits with banks	$49,551		0.44	$54			$24,224		1.82	$109			$24,747		2.61	$161
Investment securities - taxable	$90,256		2.15	$486			$87,665		2.44	$534			$72,520		2.60	$471
Investment securities - tax-exempt	$34,403		3.86	$245			$26,939		3.93	$196			$33,136		4.27	$237
Total Earning Assets	$599,030		3.46	$5,074			$510,110		4.03	$5,048			$470,691		4.34	$4,977
Non interest earning assets
Allowance for loan losses	(3,702	)					(3,411	)					(3,394	)
Cash and due from banks	$9,025						$9,399						$6,381
Premises and equipment	$400						$1,728						$1,901
Accrued interest receivable	$1,989						$1,651						$1,630
Other real estate	$0						$0						$0
Other assets	$20,726						$16,829						$16,075
Unrealized gain (loss) on inv. securities	2,332						2,028						226
Total Assets	$629,800						$538,334						$493,510
Interest bearing liabilities
Interest bearing demand	$33,084		0.22	$18			$32,868		0.69	$56			$25,935		0.71	$46
Savings and Money Market	$408,757		0.30	$300			$368,211		0.66	$605			$331,800		1.15	$951
Time deposits - Retail	$10,977		1.24	$34			$10,497		1.46	$38			$11,368		1.35	$38
Time Deposits - Wholesale	$2,087		3.72	$19			$5,488		2.38	$32			$7,880		0.31	$6
Total interest bearing deposits	$454,905		0.33	$371			$417,075		0.71	$732			$376,983		1.11	$1,041
Federal home Loan Bank advances	$35,720		1.13	$102			$20,950		1.72	$91			$22,339		1.97	$111
Other borrowings	$32,931		0.33	$27			$1,456		0.04	$0			$2,924		1.27	$9
Total borrowed funds	$68,651		0.74	$129			$22,405		1.61	$91			$25,263		1.89	$120
Total interest bearing liabilities	$523,556		0.38	$500			$439,480		0.75	$823			$402,246		1.16	$1,161
Net interest rate spread			3.08	$4,574					3.28	$4,225					3.18	$3,816
Non-interest bearing deposits	$31,315						$27,470						$27,424
Other liabilities	$7,725						$5,938						$3,315
Stockholder's equity	$67,204						$64,434						$60,524
Total Liabilities and Stockholder's Equity	$629,800						$538,323						$493,509
Cost of funds			0.36						0.71						1.08
Net interest margin			3.13						3.38						3.35
*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.

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:
	Six Months Ended							Six Months Ended
	June 30, 2020*							June 30, 2019*
	Average Balances		Rates/ Yields (%)	Interest Income/ Expense				Average Balances		Rates/ Yields (%)	Interest Income/ Expense
Earning Assets
Loans	$393,688		4.21	$8,251				$336,014		4.79	$7,987
Loan fees	$0		0.12	$228				$0		0.03	$48
Loans with fees	$393,688		4.33	$8,479				$336,014		4.82	$8,035
Mortgage loans held for sale	$105		4.05	$2				$69		2.24	$1
Federal funds sold	$4,258		0.73	$16				$947		2.53	$12
Deposits with banks	$37,157		0.88	$163				$24,480		2.61	$317
Investment securities - taxable	$88,960		2.29	$1,020				$74,959		2.59	$969
Investment securities - tax-exempt	$30,671		3.89	$441				$33,843		3.86	$484
Total Earning Assets	$554,839		3.72	$10,121				$470,312		4.28	$9,818
Non interest earning assets
Allowance for loan losses	(3,557	)						(3,375	)
Cash and due from banks	$8,943							$6,536
Premises and equipment	$353							$1,396
Accrued interest receivable	$1,820							$1,609
Other real estate	$0							$0
Other assets	$19,489							$15,973
Unrealized gain (loss) on inv. securities	2,180							(572	)
Total Assets	$584,068							$491,879
Interest bearing liabilities
Interest bearing demand	$32,976		0.45	$74				$26,238		0.83	$108
Savings and Money Market	$388,489		0.05	$905				$335,438		1.16	$1,932
Time deposits - Retail	$10,737		1.35	$72				$11,416		1.24	$70
Time Deposits - Wholesale	$3,788		2.75	$52				$4,580		0.56	$13
Total interest bearing deposits	$435,990		0.51	$1,103				$377,672		1.13	$2,123
Federal home Loan Bank advances	$28,335		1.34	$193				$23,353		1.98	$233
Other borrowings	$17,193		0.32	$27				$2,201		1.47	$16
Total borrowed funds	$45,528		0.96	$220				$25,554		1.94	$249
Total interest bearing liabilities	$481,518		0.55	$1,323				$403,226		1.18	$2,372
Net interest rate spread			3.17	$8,799						3.09	$7,446
Non-interest bearing deposits	$29,393							$26,439
Other liabilities	$6,833							$3,146
Stockholder's equity	$66,319							$59,067
Total Liabilities and Stockholder's Equity	$584,063							$491,878
Cost of funds			0.52							1.11
Net interest margin			3.24							3.26
*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.

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