NASHVILLE, Tenn., Jan. 28, 2021 (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 December 31, 2020. Fourth quarter net income attributable to common shareholders was $3.5 million or $1.23 per diluted share compared to $2.5 million or $0.88 per diluted share for the same quarter in 2019. Net income increased by 43.2% and earnings per diluted share increased by 39.7% for the quarter compared to the fourth quarter of 2019. For the twelve months ended December 31, 2020, net income increased by 14.4% to $11.1 million from $9.7 million in the comparable period in 2019. For the twelve months ended December 31, 2020, earnings per diluted share rose to $3.90 from $3.46, an increase of 12.7% from the comparable period in 2019.

During the fourth quarter, Truxton received notice from the Small Business Administration (SBA) that 134 loans totaling $22.2 million had been forgiven under the terms of the Paycheck Protection Program (PPP). Truxton recognized as income in the quarter the unamortized fees associated with these loans. In the quarter ended December 31, 2020, Truxton recognized $670 thousand of income from PPP fees. As of December 31, 2020, Truxton had $24.5 million in PPP loans outstanding with $429 thousand in unamortized fees. In addition, Truxton made loans in the quarter which qualify for tax credits under the Community Investment Tax Credit (CITC) program of the State of Tennessee. These credits reduced Truxton’s state tax provision by $325 thousand in the final quarter of 2020.

Chairman and CEO Tom Stumb remarked, “Truxton appreciates the patience and loyalty of our clients and the courage and dedication of our remarkable team of employees during a trying year. We were able to deliver a 16.1% return on our average equity capital (ROAE) for the full year, the highest in our history because Truxton performed superbly for clients throughout the year. Whether it was working nights and weekends to master the intricacies of the PPP loan program, or assisting families in managing wealth during a period of economic and political uncertainty, the Truxton team enhanced business and personal relationships with wonderful families and the businesses they own.”

Key Highlights

• Wealth management revenue rose 19.5% in the fourth quarter of 2020 compared to the fourth quarter of 2019. Wealth management services constituted 95% of non-interest income in the fourth quarter ended December 31, 2020.
• Loans rose by 15.4% to $420 million compared to December 31, 2019 and were up 1.3% compared to September 30, 2020.
• We ended the fourth quarter with $24.5 million in loans outstanding pursuant to the Paycheck Protection Program (PPP) provisions of the CARES Act. These loans assisted our small business clients in covering payrolls and other essential costs during the pandemic period.
• Total deposits grew to $624 million or 39.3% since December 31, 2019, inclusive of deposits added as a result of funding PPP loans and new business growth. 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 less than many of our peers.
• Net interest margin for the fourth quarter of 2020 was 2.95%. That represents an increase of 11 basis points from the 2.84% experienced in the quarter ended September 30, 2020, and a decline of 26 basis points from the quarter ended December 31, 2019. Cost of funds increased to 0.47% in the fourth quarter of 2020 from 0.35% for the quarter ended September 30, 2020 but declined from 0.95% for the quarter ended December 31, 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 December 31, 2020, up from $0 at December 31, 2019. A single residential mortgage comprises over 95% of our non-performing loans.
• Provision for loan losses was $228 thousand for the quarter ended December 31, 2020, an increase from no provision in the same quarter in 2019 and down from $262 thousand in the quarter ended September 30, 2020. Allowance for loan losses was $4.5 million, $4.3 million, and $3.4 million as of December 31, 2020, September 30, 2020, and December 31, 2019, respectively. For the three periods, the bank’s allowance was 1.07%, 1.03%, and 0.94%, of gross loans outstanding at period end, respectively. There is no allowance associated with the $24.5 million of PPP loans outstanding at December 31, 2020.
• The Bank’s capital position remains strong. Tier 1 leverage ratio was 9.38% at December 31, 2020, 9.43% at September 30, 2020, and 11.30% at December 31, 2019. The reduction in Tier 1 leverage ratio for the year was principally the result of the significant asset growth experienced in the year. Book value per common share was $26.77, $25.27, and $22.84 at December 31, 2020, September 30, 2020, and December 31, 2019, respectively. During the 12 months ended December 31, 2020, Truxton Corporation paid dividends of $2.12 per common share.
• With the onset of the pandemic in March 2020, Truxton began providing borrowers interest and/or principal payment deferrals for up to 180 days in an amount eventually impacting $63.6 million in loans, or 17% of non-PPP total loan balances.  As of December 31, 2020, those loans still receiving borrower payment deferrals totaled $5.8 million or 1.47% of non-PPP loans.
  

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		Media Relations
Andrew May		Tamara Schoeplein
615-515-1707		615-515-1714
andrew.may@truxtontrust.com		tamara.schoeplein@truxtontrust.com

Truxton Corporation
Consolidated Balance Sheets
(000's)
	December 31, 2020*			September 30, 2020*			December 31, 2019*
ASSETS
Cash and due from financial institutions	$	9,742		$	12,772		$	8,868
Interest bearing deposits in other financial institutions		84,429			90,836			19,519
Federal funds sold		169			2,223			8,808
Cash and cash equivalents		94,340			105,831			37,195
Time deposits in other financial institutions		2,687			2,938			5,157
Securities available for sale		206,318			156,558			116,032
Gross loans, excluding Paycheck Protection Program (PPP) Loans		395,106			367,689			363,784
PPP Loans		24,522			46,684			-
Allowance for loan losses		(4,490	)		(4,257	)		(3,409	)
Net loans		415,138			410,116			360,375
Mortgage loans held for sale, net		-			-			350
Bank owned life insurance		10,185			10,132			9,973
Restricted equity securities		3,214			3,206			2,599
Premises and equipment, net		507			538			273
Accrued interest receivable		2,653			2,850			1,842
Deferred tax asset, net		-			106			520
Other assets		6,576			7,044			4,448
Total assets	$	741,618		$	699,319		$	538,764
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$	170,251		$	150,083		$	119,999
Interest bearing		453,774			388,959			328,077
Total deposits		624,025			539,042			448,076
Federal Home Loan Bank advances		17,673			17,867			18,411
Paycheck Protection Program Liquidity Facility advances		-			46,639			-
Subordinated debt		14,529			14,574			-
Deferred tax liability, net		479			-			-
Other liabilities		8,254			9,527			8,914
Total liabilities		664,960			627,649			475,401
SHAREHOLDERS' EQUITY
Additional paid-in capital		31,651			30,832			29,770
Retained earnings		41,433			38,696			33,511
Accumulated other comprehensive income		3,574			2,142			82
Total shareholders' equity		76,658			71,670			63,363
Total liabilities and shareholders' equity	$	741,618		$	699,319		$	538,764
*The information is unaudited and based on company data available at the time of presentation.

Truxton Corporation
Consolidated Statements of Net Income
(000's)
	Three Months Ended										Year Ended
	December 31, 2020*			September 30, 2020*			December 31, 2019*				December 31, 2020				December 31, 2019
Non-interest income
Wealth management services	$	3,101		$	2,832		$	2,596			$	11,469			$	10,746
Service charges on deposit accounts		59			59			82				256				303
Securities gains, net		-			-			-				-				131
Bank owned life insurance income		53			53			54				212				218
Other		65			15			57				262				271
Total non-interest income		3,278			2,959			2,789				12,199				11,669
Gross loans, excluding Paycheck Protection Program (PPP) Loans										0
PPP Loans	$	4,616		$	4,126		$	4,062			$	17,201			$	16,083
Taxable securities		646			472			584				2,137				2,060
Tax-exempt securities		347			299			196				1,088				887
Interest bearing deposits		79			90			125				332				744
Federal funds sold		1			2			8				19				34
Other interest income		35			13			45				94				153
Total interest income		5,724			5,002			5,020				20,871				19,961
Interest expense
Deposits		451			389			984				1,941				4,120
Short-term borrowings		-			-			1				-				17
Subordinated debentures		194			-			-				194				-
Long-term borrowings		115			134			90				468				412
Total interest expense		760			523			1,075				2,603				4,549
Net interest income		4,964			4,479			3,945				18,268				15,412
Provision for loan losses		228			262			0				1,093				55
Net interest income after provision for loan losses		4,736			4,217			3,945				17,175				15,357
Total Revenue, net		8,014			7,176			6,734				29,374				27,026
Non interest expense
Salaries and employee benefits		2,872			2,781			2,671				11,380				10,699
Occupancy		219			228			200				868				808
Furniture and equipment		46			46			27				153				108
Data processing		319			296			342				1,169				1,209
Wealth management processing fees		163			102			126				520				462
Advertising and public relations		66			30			121				163				198
Professional services		112			190			211				626				596
FDIC insurance assessments		52			45			(73	)			150				32
Other		168			238			195				887				879
Total non interest expense		4,017			3,956			3,820				15,916				14,991
Income before income taxes		3,997			3,220			2,914				13,458				12,035
Income tax expense		457			693			441				2,309				2,293
Net income	$	3,540		$	2,527		$	2,473			$	11,149			$	9,742
Earnings per share:
Basic	$	1.25		$	0.89		$	0.89			$	3.94			$	3.53
Diluted	$	1.23		$	0.88		$	0.88			$	3.90			$	3.46
*The information is 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)
	December 31, 2020*			September 30, 2020*			December 31, 2019*
Per Common Share Data
Net income attributable to shareholders, per share
Basic	$1.25			$0.89			$0.89
Diluted	$1.23			$0.88			$0.88
Book value per common share	$26.77			$25.27			$22.84
Tangible book value per common share	$26.77			$25.27			$22.84
Basic weighted average common shares		2,768,270			2,758,375			2,699,777
Gross loans, excluding Paycheck Protection Program (PPP) Loans		2,794,461			2,789,562			2,754,101
PPP Loans		2,863,671			2,836,451			2,774,655
Selected Balance Sheet Data
Tangible common equity (TEC) ratio		10.34%			10.32%			11.76%
Average loans	$420,106			$413,716			$348,635
Average earning assets (1)	$683,594			$642,326			$492,829
Average total assets	$719,206			$677,985			$518,902
Average stockholders' equity	$73,764			$71,183			$65,457
Selected Asset Quality Measures
Nonaccrual loans	$2,017			$2,044				0
90+ days past due still accruing	$11			$0				0
Total nonperforming loans	$2,017			$2,044				0
Total nonperforming assets	$2,017			$2,044				0
Net charge offs (recoveries)	$12			$0			$1
Nonperforming loans to assets		0.27%			0.29%			0.00%
Nonperforming assets to total assets		0.27%			0.29%			0.00%
Nonperforming assets to total loans and other real estate		0.48%			0.49%			0.00%
Allowance for loan losses to gross loans		1.07%			1.03%			0.94%
Net charge offs (recoveries) to average loans		0.00%			0.00%			0.00%
Capital Ratios (Bank Subsidiary Only)
Tier 1 leverage		9.38%			9.43%			11.30%
Common equity tier 1		14.10%			14.60%			13.70%
Total risk-based capital		15.05%			15.58%			14.51%
Selected Performance Ratios
Efficiency ratio		46.95%			53.01%			55.67%
Return on average assets (ROA)		1.96%			1.48%			1.89%
Return on average stockholders' equity (ROE)		19.09%			14.12%			15.77%
Return on tangible common equity (ROTCE)		19.09%			14.12%			15.77%
Net interest margin		2.95%			2.84%			3.21%
*The information is 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)
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
	December 31, 2020*									September 30, 2020*								December 31, 2019*
	Average Balances			Rates/ Yields (%)		Interest Income/ Expense				Average Balances			Rates/ Yields (%)		Interest Income/ Expense			Average Balances			Rates/ Yields (%)	Interest Income/ Expense
Earning assets
Gross loans, excluding Paycheck Protection Program (PPP) Loans	$420,106			3.75		$3,957				$413,716			3.74		$3,891			$348,635			4.60	$4,044
PPP Loans	$0			0.63		$665				$0			0.23		$240			$0			0.03	$24
Loans with fees	$420,106			4.38		$4,622				$413,716			3.97		$4,131			$348,635			4.63	$4,068
Mortgage loans held for sale	$78			3.33		$1				$0			0.00		$0			$13			3.55	$0
Federal funds sold	$2,581			0.14		$1				$4,340			0.17		$2			$1,944			1.66	$8
Deposits with banks	$77,539			0.41		$79				$83,360			0.43		$90			$25,747			1.93	$125
Investment securities - taxable	$127,864			2.02		$646				$96,081			1.96		$471			$89,614			2.61	$584
Investment securities - tax-exempt	$55,425			3.39		$347				$44,829			3.61		$299			$26,876			3.93	$196
Total earning assets	$683,593			3.39		$5,696				$642,326			3.16		$4,993			$492,829			4.07	$4,981
Non interest earning assets
Allowance for loan losses		(4,359	)								(4,122	)							(3,411	)
Cash and due from banks	$11,611									$11,256								$8,263
Premises and equipment	$500									$484								$1,623
Accrued interest receivable	$2,573									$2,502								$1,600
Other real estate	$0									$0								$0
Other assets	$20,416									$20,485								$16,343
Unrealized gain (loss) on inv. securities		4,871									5,053								1,656
Total assets	$719,205									$677,984								$518,903
Interest bearing liabilities
Interest bearing demand	$30,668			(0.08	)	($	6	)		$31,416			(0.03	)	($	3	)	$28,241			0.41	$29
Savings and money market	$487,041			0.34		$415				$454,105			0.31		$351			$349,734			0.84	$737
Time deposits - retail	$8,538			1.13		$24				$9,796			1.20		$30			$14,023			1.83	$65
Time deposits - wholesale	$22,451			0.31		$18				$15,285			0.27		$11			$8,695			6.99	$153
Total interest bearing deposits	$548,698			0.33		$451				$510,603			0.30		$389			$400,693			0.97	$984
Federal Home Loan Bank advances	$17,738			1.92		$87				$25,435			1.43		$93			$18,490			1.89	$90
Subordinated debt	$14,629			5.19		$194				$0			0.00		$0			$0			0.00	$0
Other borrowings	$31,730			1.10		$28				$48,454			0.33		$41			$1,417			0.21	$1
Total borrowed funds	$64,097			1.88		$309				$73,889			0.71		$134			$19,907			1.77	$91
Total interest bearing liabilities	$612,795			0.49		$760				$584,492			0.35		$523			$420,600			1.01	$1,074
Net interest rate spread				2.90		$4,936							2.81		$4,470						3.06	$3,907
Non-interest bearing deposits	$24,645									$14,564								$27,422
Other liabilities	$7,787									$7,745								$5,423
Shareholder's equity	$73,764									$71,183								$65,457
Total liabilities and shareholder's equity	$718,991									$677,984								$518,902
Cost of funds				0.47									0.35								0.95
Net interest margin				2.95									2.84								3.21
*The information is 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 or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid.

Truxton Corporation
Yield Tables
for the Periods Indicated
(000's)
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:
	Twelve Months Ended								Twelve Months Ended
	December 31, 2020								December 31, 2019
	Average Balances			Rates/ Yields (%)	Interest Income/ Expense				Average Balances			Rates/ Yields (%)	Interest Income/ Expense
Earning assets
Gross loans, excluding Paycheck Protection Program (PPP) Loans	$405,363			3.97	$16,099				$338,675			4.74	$16,038
PPP Loans	$0			0.28	$1,132				$0			0.03	$87
Loans with fees	$405,363			4.25	$17,231				$338,675			4.76	$16,125
Mortgage loans held for sale	$72			3.86	$3				$55			3.29	$2
Federal funds sold	$3,857			0.05	$18				$1,570			2.16	$34
Deposits with banks	$59,043			0.56	$332				$30,857			2.41	$744
Investment securities - taxable	$100,529			2.13	$2,138				$79,071			2.61	$2,060
Investment securities - tax-exempt	$40,452			3.63	$1,088				$30,856			3.89	$887
Total earning assets	$609,316			3.48	$20,810				$481,084			4.19	$19,852
Non interest earning assets
Allowance for loan losses		(3,900	)							(3,393	)
Cash and due from banks	$10,074								$7,290
Premises and equipment	$423								$1,537
Accrued interest receivable	$2,181								$1,597
Other real estate	$0								$0
Other assets	$19,973								$16,111
Unrealized gain (loss) on inv. securities		3,579								607
Total assets	$641,646								$504,833
Interest bearing liabilities
Interest bearing demand	$32,004			0.20	$65				$27,131			0.69	$187
Savings and money market	$429,755			0.39	$1,671				$342,244			1.05	$3,584
Time deposits - retail	$9,948			1.26	$126				$12,203			1.49	$181
Time deposits - wholesale	$11,369			0.69	$79				$7,131			2.35	$167
Total interest bearing deposits	$483,076			0.40	$1,941				$388,709			1.06	$4,119
Federal Home Loan Bank advances	$24,942			1.47	$372				$20,957			1.94	$412
Subordinated debt	$3,816			5.00	$194				$0			0.00	$0
Other borrowings	$28,566			1.50	$96				$1,817			0.93	$17
Total borrowed funds	$57,324			1.14	$662				$22,774			1.86	$429
Total interest bearing liabilities	$540,400			0.48	$2,603				$411,483			1.10	$4,548
Net interest rate spread				3.00	$18,207							3.09	$15,304
Non-interest bearing deposits	$24,472								$27,400
Other liabilities	$7,302								$4,141
Shareholder's equity	$69,413								$61,783
Total liabilities and shareholder's equity	$641,587								$504,807
Cost of funds				0.46								1.04
Net interest margin				3.05								3.25
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 or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid.

 

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