NASHVILLE, Tenn., July 18, 2024 (GLOBE NEWSWIRE) -- Truxton Corporation, the parent company for Truxton Trust Company ("Truxton" or "the Bank") and subsidiaries, announced its operating results for the quarter ended June 30, 2024. Second quarter net income attributable to common shareholders was $4.51 million, or $1.55 per diluted share, compared to $4.45 million, or $1.53 per diluted share, for the same quarter in 2023. Net income and fully diluted earnings per share for the quarter both rose by 1% compared to the second quarter of 2023. "Truxton's second quarter performance was strong in our core businesses, especially our wealth management component," said Chairman and CEO Tom Stumb. "The durability of our model and the value of our service to clients were again emphasized as we grew earnings despite a number of one-time items that were a net negative to our bottom line."   Key Highlights Non-interest income grew to $5.5 million in the second quarter of 2024, which was up $395 thousand over the first quarter of 2024 and $763 thousand over the second quarter of 2023. Wealth management constituted 94% of non-interest income in the second quarter of 2024, compared to 96% and 93%, for the first quarter of 2024 and second quarter of 2023, respectively. Non-interest income for the quarter included hedge termination fees received by the bank that more than offset the loss on the sale of the hedged security. Non-interest expense in the second quarter of 2024 increased by $712 thousand compared to the prior quarter, driven by fraud losses of $733 thousand. Almost all this expense was related to a wire fraud incident for which the Bank is pursuing recovery. Our headquarters relocation in late May drove occupancy and professional services higher for the second quarter, while the depreciation of leasehold improvements, furniture and equipment will remain higher going forward. Loans declined by 2% to $648 million at quarter end compared to $660 million on March 31, 2024, and were up 3% compared to $628 million on June 30, 2023. Total deposits declined by 1% from $850 million at March 31, 2024, to $840 million at June 30, 2024, but were 6% higher in comparison to $790 million at June 30, 2023. Truxton continues to fund its growth from a single banking location led by its commitment to provide what it believes is superior deposit operations service and technology. Net interest margin for the second quarter of 2024 was 2.75%, an increase of 13 basis points from the 2.62% experienced in the quarter ended March 31, 2024, and an increase of 21 basis points from the 2.54% recorded in the quarter ended June 30, 2023. Cost of funds was 3.32% in the second quarter of 2024, down from 3.33% for the quarter ended March 31, 2024, and up from 2.80% for the quarter ended June 30, 2023. Allowance for credit losses, excluding that for unfunded commitments, was $6.2 million at quarter end June 30, 2024, compared to $6.3 million at March 31, 2024, and $6.0 million at June 30, 2023. For those three periods, such allowance amounts were 0.96%, 0.96%, and 0.95%, respectively, of gross loans outstanding at period end. For the same three periods, the Bank's allowance for unfunded commitments was $438 thousand, $374 thousand, and $511 thousand, respectively. The Bank's capital position remains strong. Its Tier 1 leverage ratio was 10.45% at June 30, 2024, compared to 10.40% at March 31, 2024, and 10.39% at June 30, 2023. Book value per common share was $31.85, $30.62, and $27.01 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively. During the six months ended June 30, 2024, Truxton Corporation paid dividends of $1.86 per common share, inclusive of a $1.00 special cash dividend, and repurchased 15 thousand shares of its common stock for $964 thousand, an average price of $63.79 per share. About Truxton Truxton is a premier provider of wealth, banking, 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 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 RelationsAustin Media RelationsSwan       Truxton Corporation Consolidated Balance Sheets (000's) (Unaudited)           June 30,2024* March 31,2024* June 30,2023* ASSETS       Cash and due from financial institutions $ 8,494   $ 4,909   $ 30,617   Interest bearing deposits in other financial institutions   3,851     34,361     2,848   Federal funds sold   -     6,733     1,705   Cash and cash equivalents   12,345     46,003     35,171           Time deposits in other financial institutions   490     490     250   Securities available for sale   286,977     256,517     272,474           Gross loans, excluding Paycheck Protection Program   648,300     659,622     627,576   Allowance for credit losses   (6,234 )   (6,324 )   (5,982 ) Paycheck Protection Program Loans   38     48     80   Net loans   642,104     653,346     621,674           Bank owned life insurance   11,512     10,865     10,698   Restricted equity securities   1,802     1,822     5,011   Premises and equipment, net   3,406     2,089     575   Accrued interest receivable   4,744     4,522     11,782   Deferred tax asset, net   5,386     5,576     6,623   Other assets   16,633     16,484     1,387           Total assets $ 985,399   $ 997,714   $ 965,644                   LIABILITIES AND SHAREHOLDERS' EQUITY       Deposits       Non-interest bearing $ 115,699   $ 126,838   $ 152,071   Interest bearing   724,251     723,645     637,595   Total deposits   839,950     850,483     789,665           Federal funds purchased   283     -     -   Swap counterparty cash collateral   5,000     5,570     3,780   Federal Home Loan Bank advances   2,250     3,250     16,500   Federal Reserve Bank Term Funding Program advances   20,000     22,700     55,000   Subordinated debt   14,213     14,514     14,946   Other liabilities   10,919     11,712     7,083   Total liabilities   892,615     908,229     886,974           SHAREHOLDERS' EQUITY       Common stock, $0.10 par value $ 290   $ 290   $ 289   Additional paid-in capital   31,381     31,881     31,743   Retained earnings   63,782     65,035     53,884   Accumulated other comprehensive income (loss)   (11,517 )   (12,055 )   (15,989 ) Net Income $ 8,848   $ 4,334   $ 8,743   Total shareholders' equity   92,784     89,485     78,670           Total liabilities and shareholders' equity $ 985,399   $ 997,714   $ 965,644           *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 30,2024*   March 31,2024*   June 30,2023*   June 30,2024*   June 30,2023* Non-interest income                   Wealth management services $ 5,206     $ 4,907     $ 4,442     $ 10,113     $ 8,613   Service charges on deposit accounts   91       91       139       182       276   Securities gains (losses), net   (213 )     0       0       (213 )     58   Bank owned life insurance income   62       58       54       120       106   Other   387       81       133       468       228   Total non-interest income   5,532       5,137       4,769       10,670       9,281                       Interest income                   Loans, including fees $ 10,459     $ 10,357     $ 9,107     $ 20,816     $ 17,594   Taxable securities   2,933       2,599       2,267       5,532       4,221   Tax-exempt securities   207       188       217       395       450   Interest bearing deposits   408       231       55       639       117   Federal funds sold   60       41       18       101       29   Other interest income   52       27       134       79       195   Total interest income   14,119       13,441       11,798       27,559       22,606                       Interest expense                   Deposits   6,939       6,450       4,938       13,389       9,155   Short-term borrowings   327       618       52       945       110   Long-term borrowings   13       15       817       28       1,054   Subordinated debentures   188       188       194       376       388   Total interest expense   7,467       7,270       6,001       14,737       10,706                       Net interest income   6,652       6,171       5,797       12,822       11,900                       Provision for credit losses   (27 )     (6 )     15       (33 )     74