Slide 1: Q2 2023 Financial Results
Q2 2023 Financial Results Financial Update and Quarterly Reports July 25, 2023
Slide 2: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights ($000s) Income Summary 2Q 2023 2Q 2022 % Change Net Interest Income $5,797 $6,083 -4.7% Provision for Loan Losses $15 $586 -97.4% Non-Interest Income $4,988 $4,221 18.2% Non-Interest Expense $5,289 $4,725 11.9% Earnings Before Taxes $5,481 $4,993 9.8% Income Tax Expense
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) 1.20% $6,000 $5,500 1.00% $5,000 $4,500 0.80% $4,000 $3,500 0.60% $3,000 $2,500 0.40% $2,000 $1,500 $1,000
Slide 4: Loan Yield & Concentrations
Loan Yield & Concentrations Commercial Real Estate concentration was 232% of capital at quarter end Acquisition, Construction, and Development loans was 41% of capital at quarter end Average Loan Yields Commercial Real Estate Avg. Loan Yield Avg. Loan Yield, ex. Fees ACD regulatory guideline = 1
Slide 5: Deposit Costs Rising
Deposit Costs Rising An uptick in Non-interest bearing account (NIBA) balances at quarter end belied a decline during the quarter but NIBA contribution to NIM continues to increase Deposit costs lagged the increase in short-term interest rates but catching up NIBA / Total Deposits Cost of Funds
Slide 6: Net Interest Margin
Net Interest Margin NIM decreased 21bps in Q2 2023 compared to Q1 2023 as Cost of funds increased more than twice as fast as the yield on earning assets increased Banking sector headlines led to more customer demand for higher deposit rates and movement of balances from NIBA to interest-bearing
Slide 7: ROAE and Efficiency Ratio
ROAE and Efficiency Ratio ROAE vs. Efficiency Ratio 25% 44% 46% 20% 48% 50% Efficiency Ratio 15% 52% ROAE 54% 10% 56% 58% 5% 60% 62% 0% 64% 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD ROAE Efficiency Ratio Truxton Trust 7
Slide 8: Pre-Tax, Pre-Provision Net Revenue (PPNR)
Pre-Tax, Pre-Provision Net Revenue (PPNR) Net Interest Income (+) Non-Interest Expense (-) Q2 2023 vs. Q2 Non-Interest Income (+) Pre-Tax, Pre-Provision Net Revenue(=) 2022 -1.49% Q2 2023 Q1 2023 Q2 2022 11,000 10,000 9,000 $3,763 8,000 $4,769 $5,070 $4,221 $5,211 $4,725 7,000 6,000 5,000 4,000 $6,6
Slide 9: Wealth Management Growth Continues
Wealth Management Growth Continues Wealth management services represented 42% of net revenue in Q2 2023 Wealth management services represented 93% of total non-interest income in Q2 2023 Wealth management revenue increased 9.5% in Q2 2023 compared to Q2 2022 Wealth Management Revenue ($000’s)
Slide 10: TRUX Financial Returns
TRUX Financial Returns Efficiency Ratio up 270 basis points compared to Q2 2022 Net interest margin (NIM) down 29 basis points Q2 2022 Return on average assets (ROAA) up 5 basis points from Q2 2022 Return on average equity (ROAE) up 81 basis points from Q2 2022 Tier 1 Leverage Ratio for th
Slide 11: Truxton Trust
I TRUXTON TRUST A PRIVATE BANK