TRUX Truxton Corporation (PK)

Truxton Corporation (OTCQB:TRUX), a bank holding company and the parent of Truxton Trust Company, reported consolidated net income of $1,062,000 for the second quarter of 2014, a 36 percent increase compared with $782,000 for the second quarter of 2013. Earnings per fully diluted share for the quarter ended June 30, 2014 totaled $0.42 versus $0.33 for the same period in 2013, a 27 percent increase.

For the six month period ended June 30, 2014, Truxton reported net income of $2,000,000, a 31 percent increase compared to the year ago period. Earnings per fully diluted share for the six months were $0.81 for 2014 compared to $0.65 for the comparable period in 2013.

At June 30, 2014, the company reported total assets of $333.2 million, an 11 percent increase from June 30, 2013. Over the same period, deposits increased 6 percent to $266.4 million, while total loans grew 6 percent to $205.6 million. At June 30, 2013, the company's Bank subsidiary's estimated Tier 1 leverage ratio was 9.95%.

Non-interest income for the second quarter of 2014 was $1,717,000, compared to $1,344,000 for the same period in 2013, an increase of 28 percent.

Tangible Book Value per share at June 30, 2014 was $14.32 compared to $12.86 at the same time a year ago.

"We continue our steady growth in 2014" said CEO Tom Stumb. "The first half saw us open a Wealth Management office in Northeast Georgia, bring in over $1.5 million in new capital through option and warrant exercises, grow non-interest income to record levels, and continue our steady progress in traditional loan and deposit businesses."

A full-service bank and wealth management company, 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 (unaudited)
Second Quarter 2014 Earnings Release
(In Thousands)
	June 30, 2014 (unaudited)	December 31, 2013	June 30, 2013 (unaudited)
Balance Sheet Data:
Assets
Cash and due from banks	5,371	6,581	5,446
Fed funds sold & repos	180	1,714	4,545
Interest bearing deposits with banks	8,686	20,740	10,164
Investment Securities - Taxable	75,819	58,742	56,851
Investment Securities - Tax-exempt	26,962	21,271	20,453
Loans, net of unearned income	205,600	208,923	193,647
Less: Allowance for loan losses	(2,911)	(2,911)	(2,911)
Premises and equipment, net	705	786	804
Accrued interest receivable	1,014	999	908
Other assets, principally BOLI	12,086	11,869	9,655
Total Assets	333,513	328,714	299,563
Liabilities
Non-Interest Bearing Deposits	12,158	12,431	13,320
Interest bearing demand deposits	19,874	19,549	12,110
Savings and Money Market Deposits	216,271	220,713	196,423
Time Deposits - Retail	16,638	18,116	22,541
Time Deposits - Wholesale	2,347	9,794	7,941
Total Deposits	267,288	280,603	252,336
Accrued expenses and other liabilities	974	1,614	1,295
FHLB Advances	29,228	15,704	16,714
Other Borrowings	756	--	--
Total Liabilities	298,248	297,920	270,345
Equity
Common stock	246	229	227
Capital surplus	24,388	22,556	22,275
Retained earnings	8,761	5,688	5,919
Pict Accumulated other comprehensive income (loss)	(128)	(1,252)	(724)
Net Income	2,001	3,573	1,523
Total Equity	35,267	30,793	29,219
Total Liabilities & Equity	333,513	328,714	299,563

Truxton Corporation and Subsidiary
Income Statement
(In Thousands)
	Three Months Ended		Six Months Ended
	June 30,  2014	June 30,  2013	June 30,  2014	June 30,  2013
Income Statement Data:
Interest Income
Interest on Loans	2,224	2,225	4,428	4,402
Fees on Loans	21	18	36	88
Interest on federal funds sold	3	5	4	17
Interest on deposits with banks	17	38	35	69
Investment Securities - Taxable	304	230	592	421
Investment Securities - Tax-exempt	167	128	327	250
Total Interest Income	2,735	2,643	5,421	5,248
Interest Expense
Interest bearing demand deposits	187	186	380	380
Savings and Money Market Deposits	13	17	28	40
Time Deposits - Retail	32	57	65	116
Time Deposits - Wholesale	8	9	20	14
Total Interest Expense on Deposits	240	269	492	550
FHLB Advances	51	51	97	97
Interest on other borrowings	2	0	2	230
Total Interest Expense	294	320	592	647
Net Interest Income	2,441	2,323	4,829	4,601
Net In. Inc. After Prov. for Loan Losses	2,441	2,323	4,829	4,601
Non Interest Income
Service charges and fees	58	62	116	119
Securities gains (losses), net	0	2	0	26
Mortgage loan and related fees	0	3	0	5
Other noninterest income, principally Wealth Management	1,659	1,278	3,164	2,563
Total Non Interest Income	1,717	1,344	3,280	2,712
Non Interest Expense
Salaries and employee benefits	1,710	1,507	3,435	3,209
Occupancy	212	210	400	428
Other noninterest expense	688	736	1,355	1,417
Total Non Interest Expense	2,610	2,452	5,189	5,054
Income Before Taxes	1,549	1,215	2,921	2,259
Income taxes	486	433	921	736
Net Income	1,063	782	2,000	1,523
Weighted Average Shares -Basic	2,404	2,268	2,364	2,256
Weighted Average Shares -Diluted	2,498	2,355	2,465	2,325
Net Income per share - Basic	$ 0.44	$ 0.34	$ 0.85	$ 0.68
Net Income per share - Diluted	$ 0.42	$ 0.33	$ 0.81	$ 0.65

Truxton Corporation (unaudited)
Second Quarter 2014 Earnings Release
Operating Statistics
	Three Months Ended		Six Months Ended
	June 30,  2014	June 30,  2013	June 30,  2014	June 30,  2013
Performance Ratios
Efficiency Ratio	61.36%	65.54%	62.56%	67.96%
Net Interest Margin	3.16%	3.31%	3.17%	3.32%
Capital Ratios
Return on Average Assets	1.26%	1.03%	1.20%	1.02%
Return on Average Equity	12.57%	10.35%	12.30%	10.26%
Tier 1 Leverage Ratio (Bank)	9.95%	9.95%	10.01%	9.95%
Asset Quality Data
Net Loan Charge-Offs	$ --	$ --	$ --	$ --
Non-Performing Loans	$ --	$ --	$ --	$ --

CONTACT: Andrew L. May
         615.515.1707
         andrew.may@truxtontrust.com