Truxton Corporation Reports Fourth Quarter 2017 Results

NASHVILLE, Tenn., Jan. 25, 2018 -- 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
[email protected]

Media Relations
Tamara Schoeplein
615-515-1714
[email protected]

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 2017			December 2016			December 2017			December 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.

Truxton Corporation Reports Fourth Quarter 2017 Results

Editor's Picks

Welcome to EconoTimes