Truxton Corporation Reports Fourth Quarter and Full Year 2015 Results

NASHVILLE, Tenn., Jan. 28, 2016 -- Truxton Corporation (OTCQB:TRUX), a financial holding company and the parent of Truxton Trust Company (the “Bank”) reported consolidated net income of $1,496,000 for the fourth quarter of 2015, a 32 percent increase compared with $1,132,000 for the fourth quarter of 2014. Earnings per fully diluted share for the quarter ended December 31, 2015 totaled $0.57 versus $0.45 for the same period in 2014.

For the year ended December 31, 2015, net income was $5,031,000 compared to $4,202,000 for the comparable period in 2014, a 20 percent increase. Earnings per fully diluted share rose to $1.92 for 2015 compared to $1.66 in 2014, a 16 percent increase.

At December 31, 2015, the company reported total assets of $405.5 million, a 17 percent increase from December 31, 2014. Over the same period, deposits increased 20 percent to $339 million, while total loans grew 12 percent to $257.2 million. At December 31, 2015, the Bank’s Tier 1 leverage ratio was 9.66%.

Non-interest income for the fourth quarter of 2015 was $2,489,000, compared to $1,796,000 for the same period in 2014, an increase of 39 percent. For 2015, non-interest income totaled $8,370,000 compared to $6,887,000 for 2014, representing a 22 percent increase. Wealth Management Services provide over 72% of our non-interest income.

Tangible Book Value per share at December 31, 2015, was $16.14 compared to $14.85 at the same time a year ago.

The company experienced unusual gains in the fourth quarter because of a sale of other real estate owned and life insurance death benefit. This increased our diluted EPS by $.08 for the fourth quarter after relevant taxes and other related accruals.

“Our performance this year was excellent,” said CEO Tom Stumb. “We saw double-digit loan growth. Non-interest income, mostly from wealth management, rose by more than 20% again. We delivered return on average equity (ROAE) above 12%. Truxton’s great professionals and loyal clients deserve the deep gratitude of the shareholders for another superb year.”

A full-service bank and wealth management firm organized in 2003, Truxton Trust services include personal and business loans, depository accounts, wealth management and trust services. Personal, expert service is the bank’s hallmark. Customers benefit from direct contact with senior-level, experienced bank executives who have decision-making authority and a full understanding of the local community and the client’s relationship with the bank.



Truxton Corporation
Consolidated Balance Sheets
(000's)


	2015*				2014
ASSETS
Cash and due from financial institutions	$	5,699		$	4,119
Interest bearing deposits in other financial institutions		17,340			1,658
Federal funds sold		9,815			6,284
Cash and cash equivalents		32,854			12,061

Time deposits in other financial institutions		19,995			6,874
Securities available for sale		82,482			85,560

Gross loans		257,159			229,293
Allowance for loan losses		(2,754	)		(2,733	)
Net loans		254,405			226,560

Bank owned life insurance		9,060			8,059
Restricted equity securities		2,527			2,297
Premises and equipment, net		1,175			700
Accrued interest receivable		1,107			1,057
Prepaid long-term compensation		245			131
Other real estate owned		-			641
Deferred tax asset, net		805			875
Other assets		797			378

Total assets	$	405,452		$	345,193


LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$	75,561		$	65,117
Interest bearing		263,453			216,713
Total deposits		339,014			281,830

Federal Home Loan Bank advances		22,479			23,353
Accrued interest payable		6			8
Other liabilities		1,679			1,850
Total liabilities		363,178			307,041

Shareholders' equity
Preferred stock, $0.10 par value; 5,000,000 shares authorized;
no shares issued		-			-
Common stock, $0.10 par value; 40,000,000 shares authorized;
2,618,964 shares issued in 2015 and 2,569,051 shares
issued in 2014		262			257
Additional paid-in capital		25,928			25,247
Retained earnings		15,919			12,450
Accumulated other comprehensive income (loss)		165			198

Total shareholders' equity		42,274			38,152

Total liabilities and shareholders' equity	$	405,452		$	345,193

*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)


	Three Months Ended				Twelve Months Ended
	December 31, 2015*		December 31, 2014*		December 31, 2015*		December 31, 2014
Non-interest income
Wealth management services	$	1,809	$	1,626	$	7,204	$	6,245
Service charges on deposit accounts		88		55		278		228
Gain (loss) on securities		-		7		-		33
Gain on other real estate sold		221		-		221		-
Bank owned life insurance income		60		56		226		230
Life insurance death benefit income		247		-		247		-
Other		64		52		194		151
Total non-interest income		2,489		1,796		8,370		6,887

Interest income
Loans, including fees	$	2,656	$	2,428	$	10,286	$	9,231
Taxable securities		240		230		913		1,074
Tax-exempt securities		192		153		730		634
Interest bearing deposits		62		27		142		91
Federal funds sold		4		5		10		10
Total interest income		3,154		2,843		12,081		11,040

Interest expense
Deposits		244		251		1,006		995
Short-term borrowings		2		-		4		3
Long-term borrowings		67		57		275		214
Total interest expense		313		308		1,285		1,212

Net interest income		2,841		2,535		10,796		9,828

Provision (credit) for loan losses		21		-		21		(43	)

Net interest income after provision (credit) for loan losses		2,820		2,535		10,775		9,871

Total revenue, net		5,309		4,331		19,145		16,758

Non-interest expense
Salaries and employee benefits		2,143		1,778		7,713		7,040
Occupancy		198		211		655		628
Other		872		707		3,543		3,011
Total non-interest expense		3,213		2,696		11,911		10,679

Income before income taxes		2,096		1,635		7,234		6,079

Income tax expense		600		503		2,203		1,877

Net income	$	1,496	$	1,132	$	5,031	$	4,202

Earnings per share:
Basic	$	0.57	$	0.45	$	1.94	$	1.72
Diluted	$	0.57	$	0.45	$	1.92	$	1.66

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

Truxton Corporation
Operating Statistics


	Three Months Ended						Twelve Months Ended
		December 31, 2015*			December 31, 2014*			December 31, 2015*			December 31, 2014
Performance Ratios
Efficiency Ratio		58.74	%		61.13	%		60.77	%		62.41	%
Net Interest Margin		3.01	%		3.12	%		3.17	%		3.16	%

Capital Ratios
Return on Average Assets		1.46	%		1.28	%		1.35	%		1.24	%
Return on Average Equity		14.06	%		11.94	%		12.46	%		12.08	%
Tier 1 Leverage Ratio (Bank)								9.66	%		10.11	%

Asset Quality Data
Net Loan Charge-Offs	$	-		$	135		$	-		$	135
Non-Performing Loans	$	-		$	-		$	-		$	-

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

CONTACT: Andrew L. May 
615.515.1707
[email protected]

Truxton Corporation Reports Fourth Quarter and Full Year 2015 Results

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