Truxton Times-Summer 2013 Vol. 10 No. 2
Transcription
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?