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Truxton Corporation

trux · OTC Financial Services
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Ticker trux
Exchange OTC
Sector Financial Services
Industry Banks - Regional
Employees 82
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FY2024 Annual Report · Truxton Corporation
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Annual Meeting of 
Shareholders
May 15, 2024
Thomas S. Stumb
Chairman & Chief Executive Officer
Austin S. Branstetter
Chief Financial Officer
Derrick A. Jones
President

2
Net Income 
CAGR since 2005
EPS CAGR 
since 2005
Cumulative 
dividends paid 
per share
($41.4 MM total)
Revenue CAGR 
since 2005
Since inception, 
our shareholders have been 
rewarded by differentiated success
16.6%
19.2%
$15.23
18.3%

Truxton returns have been exceptional
3
0
40,000
80,000
120,000
160,000
200,000
240,000
Market Value of Equity
BV Plus Cumulative Distributions
Book Value of Equity
Capital Raised
Annualized Total Return through 2023
3-year
5-year
10-year
TRUX
Truxton
17.8% 
16.7% 
18.0% 
KBWR
Regional Bank ETF
7.8% 
7.1% 
5.8% 
IYG
Financial Services ETF
8.0% 
11.9% 
9.7% 
SML
S&P 600 Small Cap
5.6% 
9.3% 
7.1% 
SPX
S&P 500
8.3% 
13.7% 
9.9% 
TFC
Truist 
(4.1%)
1.1% 
3.5% 
RF
Regions
10.4% 
12.0% 
10.3% 
PNFP
Pinnacle
11.8% 
14.9% 
11.5% 
FBK
FirstBank
6.2% 
3.9% 
N/A
CSTR
CapStar
10.5% 
6.8% 
N/A
Source: FactSet

Treasury 
Management
Commercial 
Banking
Personal 
Banking
Retirement 
Planning
Tax 
Strategy
Investment 
Management
Capital 
Advisory
Trust, Estate 
& Legacy 
Planning
Family 
Office 
New Wealth Client
Sale of Business/Retirement
New Banking Client
Generational Wealth Transfer
Wealth
Banking

Intentional focus on higher 
revenue opportunity clients

Balanced approach to our 
revenue mix

Not just banking, not just 
investment management

Banking acts as UHNW funnel 
for new business development 
vs merely a resource for 
private and commercial 
banking needs

Risks associated with Banking 
are significantly mitigated 
through the Wealth business, 
allowing for conservative 
growth
Results enhanced by holistic focus on the UHNW market
4

Client service and profitable growth powers our business
5
WHO WE ARE
We have a culture focused on 
client service and profitable 
growth which drives efficiency.
experienced  credentialed  
attentive  multi-disciplined
HOW WE DO IT
WHY WE’RE SUCCESSFUL
2023 Revenue/FTE
$656,000
2023 Net Income/FTE
$270,000
2023 Efficiency Ratio
(expenses as a % of revenue)
49.0%
We provide comprehensive 
services:
We know our clientele:
Multiple revenue streams for 
consistent earnings growth
Full-service model creates 
loyal clients who become 
advocates
Comprehensive service allows 
for appropriate pricing
strategic wealth & tax planning 
 investment management  
fiduciary services  banking   
capital advisory services
Wealthy business owners 
and their families
We focus on higher revenue 
opportunity clients:
Discretionary wealth revenue as 
a percentage of AUM has ranged 
between 100 - 110 bps.
We are selective with our wealth and 
credit clients, which has afforded 
higher margins and exceptional credit 
quality performance since 2004.

2023 Financial Highlights
6

Fully diluted EPS increased 5% in 2023

ROAE remained high at 22.3% in 2023

Loans grew 6.3% and assets by 4%

Dividends paid $2.52 per share in 2023, inclusive of $1.00 special dividend

“Bank” Tier 1 Leverage Ratio was 10.53% at year end 2023

Efficiency Ratio for 2023 was 49.0%
$40,471 
$42,706 
 $39,000
 $39,500
 $40,000
 $40,500
 $41,000
 $41,500
 $42,000
 $42,500
 $43,000
2022
2023
Revenue (000's)
$5.75 
$6.02 
 $5.60
 $5.65
 $5.70
 $5.75
 $5.80
 $5.85
 $5.90
 $5.95
 $6.00
 $6.05
2022
2023
Fully Diluted EPS
$917,280 
$955,270 
 $890,000
 $900,000
 $910,000
 $920,000
 $930,000
 $940,000
 $950,000
 $960,000
2022
2023
Assets

7
($000s)
Income Summary
YE 2023
YE 2022
% Change
Net Interest Income
$24,746 
$24,843 
-0.4%
Provision for Credit Losses
$296 
$984 
-69.9%
Non-Interest Income
$18,256 
$16,612 
9.9%
Non-Interest Expense
$21,053 
$19,965 
5.4%
Earnings Before Taxes
$21,653 
$20,506 
5.6%
Income Tax Expense
$4,117 
$3,780 
8.9%
Net Income
$17,536 
$16,726 
4.8%
Balance Sheet
Assets
$955,270 
$917,280 
4.1%
Loans
$657,840 
$618,948 
6.3%
Deposits
$781,979 
$807,750 
-3.2%
Stockholders' Equity
$87,682 
$73,376 
19.5%
Asset Quality
Allowance for Credit Losses*
$6,304 
$5,761 
9.4%
Allowance to Gross Loans
0.96%
0.93%
3.2%
2023 Financial Highlights
*Converted to CECL allowance methodology in January 2023

Success is Continuing in 2024
8
($000s)
Quarter Ended March 31
Income Summary
2024
2023
% Change
Net Interest Income
$6,171 
$6,107 
1.0%
Provision for Credit Losses
($6)
$59 
-110.2%
Non-Interest Income
$5,137 
$4,508 
14.0%
Non-Interest Expense
$5,877 
$5,314 
10.6%
Earnings Before Taxes
$5,438 
$5,242 
3.7%
Income Tax Expense
$1,104 
$951 
16.1%
Net Income
$4,334 
$4,291 
1.0%
Balance Sheet
Assets
$997,714 
$921,894 
8.2%
Loans
$659,622 
$625,626 
5.4%
Deposits
$850,483 
$771,499 
10.2%
Stockholders' Equity
$89,485 
$74,788 
19.7%
Asset Quality
Allowance for Credit Losses
$6,324 
$5,961 
6.1%
Allowance to Gross Loans
0.96%
0.95%
1.1%

NIM Challenged by Dynamic Environment
9
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
NIM
Cost of Funds
Fed Funds (Upper Bound)

Safe and Reliable Credit Quality
10

No 30 days+ past due loans

Non-performing assets (NPAs): $0

No other real estate owned (OREO)
Allowance vs. Non-Performing ($000s)
Reserves / Loans
 $-
 $500
 $1,000
 $1,500
 $2,000
 $2,500
 $3,000
 $3,500
 $4,000
 $4,500
 $5,000
 $5,500
 $6,000
 $6,500
2018
2019
2020
2021
2022
2023
1Q2024
Allowance
Non-Performing Loans
0.91%
0.92%
0.93%
0.94%
0.95%
0.96%
0.97%
0.98%
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024

Diversified Loan Portfolio, Conservatively Underwritten
11
Commercial Real Estate and Acquisition, 
Construction, & Development loans well 
below regulatory thresholds
Average Loan Yield
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Avg. Loan Yield
Avg. Loan Yield, ex. Fees
0%
75%
150%
225%
300%
0%
25%
50%
75%
100%
2018
2019
2020
2021
2022
2023
Q1
2024
ACD
CRE
CRE vs Capital
Loan yields continue to rise due to 
loan growth and repricing

Diversified Loan Portfolio, Conservatively Underwritten
12
Loans as of 3/31/24 (excluding PPP & Cash Secured, in MM) 
Closed-end, 1-4 
family, $206.2 
Commercial Real 
Estate , $156.3 
Spec Construction / 
Land Dev, $35.4 
Commercial Real 
Estate (Owner Occ), 
$53.8 
Consumer Loans, 
$54.3 
Commercial Loans, 
$53.6 
Home Equity Loans, 
$53.5 
Multifamily, $33.7 
Owner Occupied 
Construction, $13.5 

Healthy Deposit Mix
13

Non-interest-bearing account (NIBA) 
balances seem to have stabilized but 
remain under pressure as commercial 
clients establish interest bearing accounts 
for excess funds to be swept into

Wholesale and brokered deposits have 
become a larger part of the funding mix, 
increasing overall deposit cost and beta

Even with rate cuts forecast, deposit cost 
pressure is expected to remain a headwind
NIBA / Total Deposits 
Cost of Funds
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Cost of Funds
Average Effective Fed Funds Rate
23.2%
20.6% 19.5% 19.0% 19.7% 19.3%
15.0% 15.8% 14.9%
0%
5%
10%
15%
20%
25%
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Non-Interest 
Bearing,
$126.8
NOW 
Accounts,
$122.3
Interest-Bearing 
Demand,
$216.3
Savings ,
$9.7
Money Market,
$87.9
Money Market 
Brokered,
$68.9
Time Deposits 
Retail,
$15.7
Time Deposits 
Wholesale,
$202.8
Deposit Mix as of 3/31/24 (MM) 

Wealth Management Growth Continues
14

Truxton Wealth represented 43% of net revenue in Q1 2024

Truxton Wealth represented 96% of total non-interest income in Q1 2024

Truxton Wealth revenue increased 17.7% in Q1 2024 compared to Q1 2023
Wealth Management Revenue ($000’s)
Wealth Management Revenue ($000’s)
$7,204
$7,646
$9,108
$9,843
$10,746
$11,469
$15,102
$16,377
$17,657
Q1
$4,907
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2015 2016
2017
2018 2019 2020 2021
2022 2023 2024
3,800
4,000
4,200
4,400
4,600
4,800
5,000
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024

Wealth Management Growth Continues
15

New and existing client account additions demonstrate the appeal of our 
sophisticated, full-service wealth management

Constant bleed of distributions as clients live out of their accounts

AUM does not include brokerage platform accounts, which are an ancillary 
service we provide to fully meet client needs but are not a focus
($MM)
Q1 2023 
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Starting Trust AUM
$1,455.7 
$1,531.2 
$1,678.7 
$1,621.4 
$1,739.0 
New Account AUM
$14.3 
$108.2 
$60.9 
$75.8 
$55.7 
Account AUM Additions
$9.8 
$18.9 
$26.1 
$1.6 
$8.4 
Distributions
($23.8)
($27.9)
($24.9)
($44.6)
($29.6)
Loss of Account AUM
($12.3)
($3.7)
($8.5)
($2.0)
($44.4)
Change in Market Value
$87.6 
$52.1 
($110.9)
$86.8 
$122.3 
Ending AUM
$1,531.2 
$1,678.7 
$1,621.4 
$1,739.0 
$1,851.3 

TRUX Financial Returns – Annual Trends
16

Efficiency Ratio improved 51bps compared to 2022

Net interest margin (NIM) down 16 basis points compared to 2022

Return on average assets (ROAA) up 1 basis point from 2022

Return on average equity (ROAE) down 6 basis points from 2022

Tier 1 Leverage Ratio for the Bank up 75 basis points from Q4 2022
Key Ratios
2020
2021
2022
2023
Efficiency Ratio
52.24%
50.63%
49.47%
48.96%
Net Interest Margin
3.05%
2.62%
2.83%
2.67%
ROAA
1.74%
1.79%
1.85%
1.86%
ROAE
16.06%
18.26%
22.37%
22.31%
Tier 1 Leverage Ratio (Bank) 
9.38%
8.95%
9.78%
10.53%
Tangible Equity / Tangible Assets
10.34%
9.16%
8.00%
9.18%

TRUX Financial Returns – Quarterly Trends
17

Efficiency Ratio up 23 basis points compared to Q1 2023

Net interest margin (NIM) down 13 basis points compared to Q1 2023

Return on average assets (ROAA) down 9 basis points from Q1 2023

Return on average equity (ROAE) down 356 basis points from Q1 2023

Tier 1 Leverage Ratio for the Bank up 1 basis point from Q1 2023

While not all trending in the right direction, key financial metrics remain excellent
Key Ratios
Q1 2023 Q2 2023
Q3 2023
Q4 2023
Q1 2024
Efficiency Ratio
51.32%
48.56%
47.87%
47.07%
51.55%
Net Interest Margin
2.75%
2.54%
2.61%
2.78%
2.62%
ROAA
1.89%
1.90%
1.91%
1.75%
1.80%
ROAE
23.05%
23.33%
22.48%
20.52%
19.49%
Tier 1 Leverage Ratio (Bank) 
10.33%
10.39%
10.36%
10.53%
10.40%
Tangible Equity / Tangible Assets
8.11%
8.15%
8.39%
9.18%
8.97%

Mission
18
To do the right thing every day, 
putting our clients’ interests first, 
with distinctive, comprehensive
 financial solutions 
that protect and promote 
client prosperity and quality of life.