Truxton Corp · OTC:TRUX
Truxton — Shareholder Meeting (May 2024)
19 slides from Truxton's shareholder meeting presentation, May 15, 2024
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Thomas S. Stumb Chairman & Chief Executive Officer Derrick A. Jones President Austin S. Branstetter Chief Financial Officer May 15, 2024
Slide 2: Since inception, our shareholders have been rewarded by differentiated success
Since inception, our shareholders have been rewarded by differentiated success 19.2% 16.6% $15.23 18.3% Cumulative Net Income EPS CAGR dividends paid Revenue CAGR CAGR since 2005 since 2005 per share since 2005 ($41.4 MM total) 2
Slide 3: Truxton returns have been exceptional
Truxton returns have been exceptional 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
Slide 4: Results enhanced by holistic focus on the UHNW market
Results enhanced by holistic focus on the UHNW market Intentional focus on higher New Banking Client revenue opportunity clients Generational Wealth Transfer Balanced approach to our revenue mix Trust, Estate Personal & Legacy Banking Planning Not just banking, not just investment management T
Slide 5: Client service and profitable growth powers our business
Client service and profitable growth powers our business WHO WE ARE HOW WE DO IT WHY WE’RE SUCCESSFUL We have a culture focused on We provide comprehensive We know our clientele: client service and profitable services: growth which drives efficiency. Wealthy business owners strategic wealth & tax pl
Slide 6: 2023 Financial Highlights
2023 Financial Highlights Revenue (000's) Fully Diluted EPS Assets $43,000 $42,706 $6.05 $6.02 $960,000 $955,270 $42,500 $6.00 $950,000 $42,000 $5.95 $940,000 $5.90 $41,500 $5.85 $930,000 $41,000 $40,471 $5.80 $920,000 $917,280 $40,500 $5.75 $5.75 $910,000 $40,000 $5.70 $39,500 $5.65 $900,000 $39,00
Slide 7: 2023 Financial Highlights
2023 Financial Highlights ($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 Ex
Slide 8: Success is Continuing in 2024
Success is Continuing in 2024 ($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%
Slide 9: NIM Challenged by Dynamic Environment
NIM Challenged by Dynamic Environment 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 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) 9
Slide 10: Safe and Reliable Credit Quality
Safe and Reliable Credit Quality No 30 days+ past due loans Non-performing assets (NPAs): $0 No other real estate owned (OREO) Allowance vs. Non-Performing ($000s) Reserves / Loans $6,500 0.98% $6,000 $5,500 0.97% $5,000 $4,500 0.96% $4,000 $3,500 0.95% $3,000 $2,500 0.94% $2,000 0.93% $1,500
Slide 11: Diversified Loan Portfolio, Conservatively Underwritten
Diversified Loan Portfolio, Conservatively Underwritten CRE vs Capital Average Loan Yield ACD CRE Avg. Loan Yield Avg. Loan Yield, ex. Fees 100% 300% 7.00% 6.50% 75% 225% 6.00% 5.50% 50% 150% 5.00% 4.50% 25% 75% 4.00% 3.50% 0% 0% 3.00% 2018 2019 2020 2021 2022 2023 Q1 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2
Slide 12: Diversified Loan Portfolio, Conservatively Underwritten
Diversified Loan Portfolio, Conservatively Underwritten Loans as of 3/31/24 (excluding PPP & Cash Secured, in MM) Owner Occupied Multifamily, $33.7 Construction, $13.5 Home Equity Loans, $53.5 Closed-end, 1-4 family, $206.2 Commercial Loans, $53.6 Consumer Loans, $54.3 Commercial Real Estate (Owner
Slide 13: Healthy Deposit Mix
Healthy Deposit Mix Deposit Mix as of 3/31/24 (MM) Time Deposits Wholesale, Non-interest-bearing account (NIBA) $202.8 Non-Interest balances seem to have stabilized but Bearing, remain under pressure as commercial Time Deposits $126.8 Retail, clients establish interest bearing accounts $15.7 for e
Slide 14: Wealth Management Growth Continues
Wealth Management Growth Continues 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 ($000’s) Wealth Management Revenue
Slide 15: Wealth Management Growth Continues
Wealth Management Growth Continues ($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
Slide 16: TRUX Financial Returns – Annual Trends
TRUX Financial Returns – Annual Trends 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 R
Slide 17: TRUX Financial Returns – Quarterly Trends
TRUX Financial Returns – Quarterly Trends 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
Slide 18: Mission
Mission 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. 18
Slide 19: TRUXTON
I TRUXTON EALTH = FAMILY OFFICE + BANKING