Slide 1: Q3 2023 Financial Results
Q3 2023 Financial Results Financial Update and Quarterly Reports October 19, 2023
Slide 2: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights ($000s) Income Summary 3Q 2023 3Q 2022 % Change Net Interest Income $6,059 $6,564 -7.7% Provision for Loan Losses $6 $284 -97.9% Non-Interest Income $4,931 $4,267 15.6% Non-Interest Expense $5,314 $5,206 2.1% Earnings Before Taxes $5,670 $5,341 6.2% Income Tax Expense $1
Slide 3: 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 Reserves / Loans $6,500 ($000s) 0.98% $6,000 $5,500 0.97% $5,000 $4,500 0.96% $4,000 $3,500 0.95% $3,000 0.94% $2,500 $2,000 0.93% $1,500
Slide 4: Loan Yield & Concentrations
Loan Yield & Concentrations ▪ Commercial Real Estate concentration was 236% of capital at quarter end ▪ Acquisition, Construction, and Development loans was 46% of capital at quarter end ▪ Average loan yields excluding fees rose 29bps to 6.01% in 3Q23 compared to 5.72% in 2Q23 Average Loan Yields Co
Slide 5: Deposit Costs Rising
Deposit Costs Rising ▪ Non-interest-bearing account (NIBA) balances declined as a percentage of total deposits, driven by clients establishing interest-bearing sweep accounts for their excess operational funds ▪ Deposit costs continued to rise but at a slowing rate NIBA / Total Deposits Cost of Fund
Slide 6: Net Interest Margin
Net Interest Margin ▪ NIM increased 7bps in Q3 2023 compared to Q2 2023 as the increased yields on earning assets outpaced growing funding costs, driven by large loans repricing at the beginning of the 3rd quarter and end of the prior quarter NIM vs. Cost of Funds NIM vs. Fed Funds 6.00% 3.5% 3.9% 3
Slide 7: ROAE and Efficiency Ratio
ROAE and Efficiency Ratio ROAE vs. Efficiency Ratio 25% 45% 47% 20% 49% 51% Efficiency Ratio 15% 53% ROAE 55% 10% 57% 59% 5% 61% 63% 0% 65% 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD ROAE Efficiency Ratio 7
Slide 8: Pre-Tax, Pre-Provision Net Revenue (PPNR)
Pre-Tax, Pre-Provision Net Revenue (PPNR) Net Interest Income (+) Non-Interest Expense (-) Q3 2023 vs. Non-Interest Income (+) Pre-Tax, Pre-Provision Net Revenue(=) Q3 2022: +1.0% Q3 2022 Q2 2023 Q3 2023 11,000 11,000 11,000 10,000 10,000 10,000 9,000 9,000 9,000 $4,267 $4,931 $5,206 $4,769 $5,314 8
Slide 9: Wealth Management Growth Continues
Wealth Management Growth Continues ▪ Wealth management services represented 42% of net revenue in Q3 2023 ▪ Wealth management services represented 93% of total non-interest income in Q3 2023 ▪ Wealth management revenue increased 14.8% in Q3 2023 compared to Q3 2022 Wealth Management Revenue (000s) W
Slide 10: TRUX Financial Returns
TRUX Financial Returns ▪ Efficiency Ratio down 20 basis points compared to Q3 2022 ▪ Net interest margin (NIM) down 34 basis points compared to Q3 2022 ▪ Return on average assets (ROAA) up 2 basis points from Q3 2022 ▪ Return on average equity (ROAE) down 113 basis points from Q3 2022 ▪ Tier 1 Lever
Slide 11: Truxton Trust
I TRUXTON TRUST A PRIVATE BANK