Trustmark Corporation (TRMK) has reported a 3.82 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $28.92 million, or $0.43 a share in the quarter, compared with $27.86 million, or $0.41 a share for the same period last year.
Revenue during the quarter went up marginally by 2.11 percent to $142.32 million from $139.38 million in the previous year period. Net interest income for the quarter dropped 0.55 percent over the prior year period to $103.58 million. Non-interest income for the quarter rose 6.25 percent over the last year period to $41.72 million.
Trustmark Corporation has made provision of $2.98 million for loan losses during the quarter, down 26.14 percent from $4.04 million in the same period last year.
Net interest margin contracted 22 basis points to 3.52 percent in the quarter from 3.74 percent in the last year period. Efficiency ratio for the quarter deteriorated to 66.08 percent from 66.03 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Gerard R. Host, president and chief executive officer, stated, "2016 was another year of significant achievement for Trustmark. We continued to provide customers with the products and services they desired as evidenced by our third consecutive year of double-digit loan growth and solid performance across our financial services businesses. We made investments in technology designed to enhance our customers' experience and strengthen security. In addition, we continued to realign delivery channels in response to changing customer preferences and embraced opportunities to enhance efficiency and profitability. As we look forward in 2017, we will continue to manage the franchise for the long term by expanding and building sustainable relationships. Thanks to our associates, solid profitability and strong capital base, Trustmark remains well-positioned to continue meeting the needs of our customers and creating long-term value for our shareholders."
Liabilities outpace assets growth
Total assets stood at $13,352.33 million as on Dec. 31, 2016, up 5.31 percent compared with $12,678.90 million on Dec. 31, 2015. On the other hand, total liabilities stood at $11,832.12 million as on Dec. 31, 2016, up 5.59 percent from $11,205.84 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $8,040.80 million as on Dec. 31, 2016. Deposits stood at $10,056.01 million as on Dec. 31, 2016, up 4.88 percent compared with $9,588.23 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $2,973.24 million or 29.57 percent of total deposits on Dec. 31, 2016, compared with $2,998.69 million or 31.27 percent of total deposits on Dec. 31, 2015.
Investments stood at $3,515.32 million as on Dec. 31, 2016, down 0.51 percent or $17.91 million from year-ago. Shareholders equity stood at $1,520.21 million as on Dec. 31, 2016, up 3.20 percent or $47.15 million from year-ago.
Return on assets moved down 1 basis points to 0.87 percent in the quarter from 0.88 percent in the last year period.
Nonperforming assets moved down 16 percent or $21.20 million to $111.28 million on Dec. 31, 2016 from $132.49 million on Dec. 31, 2015.
Capital ratios deteriorate
Trustmark Corp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.90 percent for the quarter, down from 10.03 percent for the previous year quarter. Equity to assets ratio was 11.39 percent for the quarter, down from 11.62 percent for the previous year quarter. Book value per share was $22.48 for the quarter, up 3.12 percent or $0.68 compared to $21.80 for the same period last year.
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