Posted: Oct 23, 2013 5:36 PM
Updated: Oct 23, 2013 5:38 PM
JACKSON, Miss. (AP) Regional bank Trustmark Corp. says profit in 2013's third quarter rose 10 percent from the same three months of 2012, as the company continued to benefit from its takeover of the former BancTrust Financial Group.
Trustmark posted quarterly profit of $33 million or 49 cents per share Tuesday. That's up from $29.9 million or 46 cents per share in 2012's third quarter.
Analysts polled by FactSet had estimated 47 cents per share, on average.
"We had another quarter of solid financial results," CEO Gerald Host told analysts in a conference call Wednesday. "Revenue is increased, credit quality continues to improve and we continue to be optimistic about our opportunities going forward in all our markets."
The bank set aside $569,000 in anticipation of future bad loans. The company actually recovered more than it charged off in the second quarter, but the number was down from last year.
BancTrust, of Mobile, Ala., merged into Trustmark Feb. 15. Those operations added $4.9 million to Trustmark profit during the quarter.
The company said loans increased by $119.3 million. Most lending areas grew, but commercial and industrial loans to business fell. Fees from making mortgages fell, but less than at many other banks, while fees on deposit accounts rose.
Trustmark's return on assets was 1.11 percent. That key measure of profitability is down from 1.22 percent a year ago, but still exceeds many other banks nationwide.
The amount that the company collected in interest from borrowers, net of what it paid out to savers, fell to $102 million. The net interest margin, a measure of that spread divided by all loans, was 3.94 percent, down from 4.02 percent in the second quarter. Low interest rates have generally caused that spread, which is a cornerstone of bank profits, to narrow.
Jackson-based Trustmark has $11.8 billion in assets with offices in Mississippi, Alabama, Florida, Tennessee and Texas.