Truxton Times-Summer 2013 Vol. 10 No. 2

Truxton Times
MANAGEMENT
CHARLES W. COOK, JR.
Chairman
THOMAS S. STUMB
President & Chief Executive Officer
J. OVERTON COLTON
Chief Administrative & Risk Officer
ANDREW L. MAY
Chief Financial Officer
DERRICK A. JONES
Managing Director,
Wealth Management Services
THOMAS R. SNYDER
Managing Director, Private Banking
JULIE MARR
Senior Vice President & Controller
BOARD OF DIRECTORS
WILLIAM F. BLAUFUSS, JR.
BRUCE DOBIE
STANLEY M. EZELL
DECOSTA E. JENKINS
MATTHEW A. KING
DEBORAH A. MCDERMOTT
GUSTAVUS A. PURYEAR, IV
CHRISTOPHER C. WHITSON
ADDITIONAL ORGANIZERS
H. LEE BARFIELD, II
RITA BENNETT
JOHN R. BURCH, JR.
WILLIAM T. COAKLEY
JAMES S. D’AGOTINO, JR.
W. LIPSCOMB DAVIS, JR.
E. WILLIAM EWERS, M.D.
AUBREY B. HARWELL, JR.
LYNN H. MAY
R. CLAYTON MCWHORTER
W. BRIAN REAMES
DOUGLAS A. SMALL
HOWARD L. STRINGER
DONALD W. THURMOND
W. FRED WILLIAMS, JR.
WILLIAM S. WIRE, II
https://truxtontrust.com
VOLUME 10, NO. 2
SUMMER 2013
TRUXTON REPORTS SECOND
QUARTER 2013 RESULTS
T
ruxton Corporation (OTC Markets: NBTH), a bank holding company
and the parent of Truxton Trust Company, reported consolidated
net income of $782,000 for the second quarter of 2013, a 24 percent
increase compared with $630,000 for the second quarter of 2012. Earnings
per fully diluted share for the quarter ended June 30, 2013 totaled $0.33 versus
$0.27 for the same period in 2012.
For the six months ended June 30, 2013, net income was $1,523,000 compared
to $1,210,000 for the comparable period in 2012, a 26 percent increase. Earnings
per fully diluted share rose to $0.65 for the six-month period compared to $0.52
for the same period in 2012.
At June 30, 2013, the company reported total assets of $299.6 million, a 10
percent increase from June 30, 2012. Over the same period, deposits increased 11
percent to $252.3 million, while total loans grew 9% to $193.6 million. At June
30, 2013, the Bank’s Tier 1 leverage ratio was 9.69%.
Non-interest income for the second quarter of 2013 was $1,344,000, compared
to $1,147,000 for the same period in 2012, an increase of 17 percent. Year-todate ended June 30, 2013, non-interest income totaled $2,712,000 compared to
$2,221,000 for the first six months of 2012, representing a 22% increase.
Tangible Book Value per share at June 30, 2013 was $12.80 compared to
$12.05 at the same time a year ago.
On June 28, 2013, Truxton paid its initial semi-annual dividend of $0.10 per
common share to shareholders of record on June 3, 2013.
“We delivered solid earnings growth in the first half of 2013.” said CEO Tom
Stumb. “We have continued to grow earnings at over 25% versus a year ago
despite a difficult interest rate environment. We are controlling expenses and
adding assets in our wealth management business. Asset quality remains a core
strength.” ■
CHAIRMAN’S CORNER:
WHY TRUXTON?
By Charles W. Cook, Jr., Chairman
O
n May 15, the shareholders of NBT Holdings, Inc.,
parent company of Nashville
Bank and Trust Co., voted
overwhelmingly in support of
changing the company’s name to
Truxton Corporation. Following
the annual meeting, the directors
of Nashville Bank and Trust voted
to change the name of the bank to
Truxton Trust Company. In the
days following these important
procedural actions, the signs
were changed. Nothing else has
changed. The personnel are the
same, the bank’s routing symbol
on checks remains the same, and
the services offered are all the same.
So, you might ask, why did we make the change? We made
the change for two reasons. First, many people in Nashville
confused Nashville Bank and Trust with other banks who
have “Nashville” or “& Trust” in their name. Second, we
already have clients in 14 states and prospects in several
more. We have found that a name containing a geographical
location can be a deterrent to business development,
recruitment of talented associates, and overall expansion
outside the city. Even those in some of our adjacent counties
would prefer doing business with a company that was not
labelled with Nashville.
So, how did we choose Truxton? First, we employed The
Buntin Group to help us find a name that would endure
into the future. After extensive interviews with shareholders,
clients, prospects, and employees, Buntin agreed with
management that we should change, and an effort began to
research names that would be most effective and that would
truly differentiate us from all
others. After much research
and testing, Truxton Trust was
chosen.
The name first appeared in
Middle Tennessee when Andrew
Jackson bought his favourite and
fastest horse Truxton. The horse
was a winner. He never lost a
race under Jackson’s ownership.
Jackson’s horse was named
for one of the first six Navy
captains appointed by President
Washington. Thomas Truxton
(Truxtun) commanded the USS
Constellation and USS President, considered to be the fastest
sailing ship of its time. As a retired Navy Captain, I am
delighted that our bank has a name with a naval heritage!
We have been delighted with the reception our new name
has received. Our clients, shareholders, employees, and other
key constituents have applauded the change. We remain
dedicated to continuing the high level of service we have
been known for in the Nashville area, and we appreciate
the enthusiastic support we have received toward our
ambition to expand our business into other markets. To all
our constituents, please allow me to express my gratitude
for your support during this pivotal time in our company’s
history. Thank you all. ■
MILES KIRKLAND STRENGTHENS
WEALTH MANAGEMENT STAFF
T
ruxton Trust has added top talent to its Wealth Management Services division,
naming Miles Kirkland Vice President & Portfolio Manager.
Prior to joining Truxton Trust, Kirkland served as Principal and Portfolio Manager for
Mastrapasqua Asset Management in Nashville. During his tenure he focused on stock
selection and portfolio management for style-based portfolios including: Large Cap
Growth Equity, Large Cap Core Equity, Small/Mid Cap Core Equity and Equity Income.
“In addition to Miles’ extraordinary qualifications as a portfolio manager, he has a
genuine desire to serve the clients of Truxton Trust,” said Derrick Jones, Managing
Director, Truxton Trust. “We are excited to have him join our team of client-centered
wealth management professionals.” Kirkland received his MBA from Vanderbilt University’s Owen Graduate School of Management and his B.A. from
the University of the South. He is a member of the Nashville Society of Financial Analysts and a Director at Kirkland’s
Inc. ■
MOBILE BANKING IS HERE!!!!
By Julie Marr, Senior Vice President & Controller
B
anking with Truxton Trust just got easier and more
accessible by going beyond the bank walls; it goes with
you everywhere you go!
Start banking everywhere you are with Truxton Trust
Mobile Banking! The Mobile Banking APP is available to all
current online banking clients.
With Truxton Trust mobile banking services you can use
your iPhone or Android smart phone to:
• Check your latest balance and search recent
transaction history.
• Easily transfer between your accounts.
• Review Online Activity
• Send and receive secure messages through our Message
Center.
Additional Commercial Functionality:
• Create and submit Wires & ACH Transactions (single
payment or single receipt)
• Approve or cancel ACH or Wire transfers that require
dual approval.
HOW TO REGISTER:
Truxton Trust Mobile Banking is available to all Truxton
Trust account holders. IF you are currently enrolled in our
standard mobile banking services, you can begin using the
App immediately: simply access your accounts using your
existing Truxton Trust Online Banking user name and
password.
If you are an existing online banking user but have
not registered for mobile banking, log-in to your online
account and select the MOBILE option located under
PREFERENCES on the left-hand side of the menu,
and check the box next to “YES, enable my User ID and
Password for use on my mobile device” and click SUBMIT.
If you are not currently using our Truxton Trust online
account services call your Private Banker at 615-515-1700.
Don’t forget to install the App on your eligible smart phone
and you are ready to begin using Truxton Trust Mobile.
Truxton Trust Mobile Banking protects your financial
information from unauthorized access:
• All data is transmitted over HTTPS(Secure HTTP)
and is encrypted at all times over the network.
• The customer’s information is not stored on the mobile
device at any time. Users are required to authenticate
to access their information and account numbers are
masked as nicknames (if customer has configured in
their online banking preferences).
• Transactions that move money require a Mobile
Authorization code (established within online
banking).
• Session timeouts will log the user off after a period of
inactivity.
• Switching to other applications will log user out of
their session.
HAVE QUESTIONS?
Truxton Trust customer service is available to answer
any questions you might have. Please contact our team at
615-515-1700 or email us at [email protected].
Although Truxton Trust does not charge fees to download
or use Truxton Trust Mobile, your mobile carrier may charge
fees for data, text, messages, and other web access services.
Check with your carrier for information about their fees. ■
LENDERS:
OPEN FOR BUSINESS!
E
xperienced private bankers understand clients
with complex asset and liability mixes and income
that doesn’t always flow through a W-2. These clients
and their businesses need a bank that is accustomed to
sophisticated borrowers—so they create a relationship
at Truxton Trust.
Long term rates have risen sharply in the last several
weeks but are still extremely low by historical standards.
Since the middle of last year, loans have grown 9.3%
and overall deposits increased 11% at Truxton Trust.
Of special note is the 23% growth of business deposits.
Substantial growth also occurred in the bank’s mortgage
loan portfolio from clients taking advantage of the
low interest rate environment for home purchases and
refinancing.
Truxton Trust’s loan portfolio remains well diversified
with its continued focus on commercial real estate,
and its emphasis on business lending for lines of credit
and loans for fixed assets. Truxton Trust’s asset quality
remains among the best in the nation.
This strong performance is a product of the
professional efforts of Truxton Trust’s team of
experienced bankers. Paul Budslick, Peggy Craig, Bill
Farris, Don Shiver, Rod Spann, and Bryant Tirrill
collectively average 35 years of banking experience
within the Nashville community. It is a point of pride
for Truxton Trust that these established bankers have
the professional expertise and concern that serves the
wide variety of commercial and personal banking needs
of our clients. ■
Inside
4525 Harding Road, Suite 300
Nashville, TN 37205
hysical precious metals have weaknesses as investments.
They produce no income. They require storage. Their
valuation cannot be confirmed by measures like a free cash
flow yield or a P/E ratio—sources of support for underlying
value. Still, they meet the basic requirements of a stable
currency—they resist debasement through expanding supply.
No central bank can print more silver and the miners, despite
herculean effort, can only increase supply modestly.
Metals prices have dropped dramatically in recent months,
but the 10-year performance is still pretty good—gold was
$400 an ounce in 2003, $1,300 today. Gold and silver serve
as inflation hedges and protection against catastrophe. The
expanding wealth of India and China, places where skepticism
about fiat currency is likely well-founded, have been important
contributors to the longer-term rise. We have no firm view
on the outlook for gold and silver prices—they produce no
streams of earnings, interest or dividends—the soul of our
valuation approach. They’re worth what people think they’re
worth—a Rorschach test of investor psychology.
■ Truxton Corporation Reports Second Quarter 2013 Results
P
■ Miles Kirkland Strengthens Wealth Management Staff
By Andrew L May, CFO
We have occasionally included a “gold ETF” in our asset
allocation but do not at this time. We believe that common
stocks provide some inflation protection by their nature.
Earnings have generally kept pace with inflation since World
War II, though multiples paid for those earnings have
contracted. We use laddered portfolios of high quality bonds
ten years and shorter in our fixed income portfolios. These
ladders are not an explicit inflation hedge, but create the
opportunity to reinvest principal at the market rate over a
relatively short period. The half of the bond portfolio that is
always due to mature in 5 years or less is modestly affected by
rising rates given an imminent return of principal.
Personally, I hold about 1% of my net worth in physical
precious metals as part of an emergency preparedness regime.
I make sure these coins are where I can access them at any
time—unimpeded by the vagaries of weather, earthquake
or government action. The chance that this hoard will ever
help me is small, but not zero. My great aunts and uncles who
were in Germany until 1938 could attest to the occasional
usefulness of ready specie.
Gold will hold some value in almost any set on human
circumstances. It is the final line of defense, short of hoarded
food, water, and ammo, against chaos and ruin. But we
do not view it as an essential part of a typical investment
portfolio. ■
■ Personal Online and Mobile Banking Security Tips
DEFICITS, DEVALUATIONS, AND
DISASTERS—WHY NOT JUST
OWN GOLD?