Solid revenue growth and a continued decline in problem loans helped boost Trustmark's first-quarter profit by 27% over the same period last year, to $30.3 million.
The $9.7 billion-asset company reported earnings per share of 47 cents, 8 cents better than consensus estimates of analysts polled by Thomson Reuters.
Trustmark (TRMK), of Jackson, Miss., reported its earnings after the markets closed Tuesday. Its shares were up 4.5% late Wednesday, to $25.36.
President and Chief Executive Gerard R. Host attributed the results to a 7.3% increase in revenues that he said was driven by increased mortgage banking activity and growth in its fee-based businesses, particularly insurance. Overall, fee revenues accounted for roughly one-third of total revenues in the quarter.
A 17% drop in nonperforming loans year over year also aided the results. At $181.5 million, nonperformers are at their lowest levels since the second quarter of 2009.
Net interest income was up 6.2% year over year, though that was due primarily to a decline in deposit costs and a shrinking provision for loan losses. Loans held for investment declined 3% year over year as Trustmark continued to intentionally shrink its construction loan portfolio.
The company acquired Bay Bank & Trust Co. in Panama City, Fla., during in mid-March, but the deal closed too late for it to have a material impact on its quarterly performance. In a conference call with analysts Wednesday, Host said that Trustmark continues to eye potential acquisitions and that it is armed with plenty of capital should opportunities arise. Trustmark operates in Missippi, Florida, Tennessee and Texas.
Still, reiterating the comments of many CEOs these days, Host said that
