Trustmark Corporation Announces Third Quarter 2009 Financial Results and Declares $0.23 Quarterly Cash Dividend
- Press Release
- Source: Trustmark Corporation
- On 4:45 pm EDT, Tuesday October 27, 2009
JACKSON, Miss.--(BUSINESS WIRE)--Trustmark Corporation (NASDAQ:TRMK - News) announced net income available to common shareholders of $22.4 million in the third quarter of 2009, which represented basic earnings per common share of $0.39. Trustmark’s third quarter 2009 net income produced a return on average tangible common equity of 13.06%. During the first nine months of 2009, Trustmark’s net income available to common shareholders totaled $59.2 million, which represented basic earnings per common share of $1.03. Trustmark’s performance during the first nine months of 2009 resulted in a return on average tangible common equity of 11.89%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share. The dividend is payable December 15, 2009, to shareholders of record on December 1, 2009.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| TRMK | 18.71 | -0.65 |
Printer friendly version of earnings release with consolidated financial statements and notes: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6083265&lang=en
Richard G. Hickson, Chairman and CEO, stated, “Trustmark’s performance in the third quarter reflected the diversified revenue strengths of the organization. Robust net interest income, coupled with revenue growth in our general banking, mortgage banking, insurance and wealth management businesses, resulted in pre-tax, pre-provision earnings of $53.8 million during the third quarter. We remain focused upon revenue generation, credit quality, and disciplined expense management. Trustmark’s solid financial performance is reflected in internally generated growth in tangible common equity of $70.0 million during the last four quarters, resulting in capital ratios that significantly exceed well-capitalized levels. As such, we remain well-positioned to meet the financial needs of our customers and take advantage of opportunities in the marketplace.”
Credit Quality
- Continued reduction in Florida construction and land development portfolio
- Nonperforming loans increased $5.5 million to 2.09% of total loans
Trustmark has made significant progress in the resolution of its construction and land development portfolio in Florida. Over the last 24 months, this portfolio has been reduced by $171.5 million, or 45%, to $212.0 million. At September 30, 2009, Florida non-impaired construction and land development loans totaled $177.1 million with an associated reserve for loan losses of $22.2 million, or 12.52%.
During the third quarter, nonperforming loans increased $5.5 million relative to the prior quarter to $138.5 million, or 2.09% of total loans. Following the natural progression in the resolution of nonperforming loans, foreclosed real estate increased $16.5 million during the quarter. At September 30, 2009, nonperforming assets totaled $210.2 million, representing 3.14% of total loans and other real estate.
Trustmark’s provision for loan losses totaled $15.8 million during the third quarter, exceeding net charge-offs of $14.5 million. Allocation of Trustmark’s $103.0 million allowance for loan losses represented 2.08% of commercial loans and 0.76% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.61% as of September 30, 2009.
Capital Strength
- Tangible common equity to tangible assets increased to 7.76%
- Total risk-based capital increased to 16.09%
Consistent profitability, sound balance sheet management and a prudent capital philosophy continue to be reflected in Trustmark’s solid capital base. As of the third quarter of 2009, internally generated tangible common equity increased $70.0 million relative to the comparable period one year earlier to total $703.0 million and represented 7.76% of tangible assets at September 30, 2009. Total risk-based capital expanded to 16.09% as of September 30, 2009. Excluding the $215 million in Senior Preferred stock issued under the Capital Purchase Program, Trustmark’s total risk-based capital ratio is an estimated 12.80%, substantially exceeding guidelines to be classified as “well-capitalized” at September 30, 2009.
The fundamental strengths of Trustmark’s business, as reflected by pre-tax, pre-provision earnings, remain solid despite the challenging economic environment. Based upon the existing capital base and the expectation of the level of profitability going forward, Trustmark believes at this time in the sustainability of its cash dividend to common shareholders.
Asset Liability Management
- Net interest income totaled $91.3 million
- Net interest margin expanded to 4.28%
Loans held for investment totaled $6.4 billion at September 30, 2009, down $188.1 million relative to the prior quarter. This reduction reflects Trustmark’s continued efforts to reduce exposure to construction and land development lending and to its decision to discontinue indirect auto financing. Current economic conditions have also resulted in reduced loan demand.
Trustmark continued to benefit from its capital strength and strong liquidity as deposit and funding costs were lowered during the third quarter. Disciplined loan pricing and required minimum loan rates helped sustain loan yields. As a result, net interest income totaled $91.3 million during the third quarter, resulting in expansion of the net interest margin to 4.28%.
Noninterest Income
- Mortgage banking income increased to $8.9 million
- Service charges expanded to $14.2 million
Noninterest income excluding security gains during the third quarter of 2009 totaled $43.1 million, an increase of $6.7 million relative to the prior quarter. Mortgage banking income during the quarter was $8.9 million, up $6.3 million from the prior quarter, and reflected the Corporation’s successful mortgage servicing rights hedge strategy as well as continued secondary marketing gains. Service charges on deposit accounts increased $913 thousand relative to the prior quarter to total $14.2 million while insurance revenue totaled $7.9 million, an increase of $522 thousand from the prior quarter. Despite challenging market conditions, wealth management revenue remained stable at $5.6 million when compared to the prior quarter.
During the third quarter of 2009, Trustmark capitalized upon advantageous market conditions and sold approximately $30 million of longer duration mortgage securities, which resulted in a gain of $1.0 million.
Noninterest Expense
- Core salary and benefit expense declined
- Foreclosure expense increased $3.1 million
During the third quarter of 2009, noninterest expense totaled $79.2 million, an increase of $263 thousand from the prior quarter. Salary and benefit expense totaled $42.6 million during the third quarter. Excluding the one time benefit resulting from the decision to freeze benefits under the Corporation’s defined benefit pension plan in the second quarter of 2009, salary and benefit expense declined $253 thousand. Services and fees, net occupancy expense, and equipment expense declined in the third quarter of 2009 relative to the prior quarter. Other expense in the third quarter totaled $17.5 million, a decrease of $1.2 million from the prior quarter as lower FDIC expense of $4.3 million was partially offset by increased real estate foreclosure expense of $3.1 million.
ADDITIONAL INFORMATION
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 28 at 10:00 a.m. Central Time to discuss the Corporation's financial results. Interested parties may listen to the conference call by dialing (877) 627-6580, passcode 4074008 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, November 4, 2009 in archived format at the same web address or by calling (888) 203-1112, passcode 4074008.
Trustmark is a financial services company providing banking and financial solutions through over 150 offices and 2,600 associates in Florida, Mississippi, Tennessee and Texas.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.
Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including the extent and duration of the current volatility in the credit and financial markets, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other markets, the enactment of legislation and changes in existing regulations, or enforcement practices, or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that effect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of Trustmark’s borrowers, changes in Trustmark’s ability to control expenses, changes in Trustmark’s compensation and benefit plans, greater than expected costs or difficulties related to the integration of new products and lines of business, natural disasters, acts of war or terrorism and other risks described in Trustmark’s filings with the Securities and Exchange Commission.
Although Management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Trustmark undertakes no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||
| September 30, 2009 | |||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||
| Linked Quarter | Year over Year | ||||||||||||||||||||||||||||||||
|
QUARTERLY AVERAGE BALANCES |
9/30/2009 | 6/30/2009 | 9/30/2008 |
$ Change |
% Change |
$ Change |
% Change | ||||||||||||||||||||||||||
| Securities AFS-taxable | $ | 1,377,318 | $ | 1,395,303 | $ | 822,995 | $ | (17,985 | ) | -1.3 | % | $ | 554,323 | 67.4 | % | ||||||||||||||||||
| Securities AFS-nontaxable | 89,259 | 70,165 | 39,886 | 19,094 | 27.2 | % | 49,373 | n/m | |||||||||||||||||||||||||
| Securities HTM-taxable | 191,934 | 194,079 | 184,001 | (2,145 | ) | -1.1 | % | 7,933 | 4.3 | % | |||||||||||||||||||||||
| Securities HTM-nontaxable | 55,440 | 61,166 | 74,937 | (5,726 | ) | -9.4 | % | (19,497 | ) | -26.0 | % | ||||||||||||||||||||||
| Total securities | 1,713,951 | 1,720,713 | 1,121,819 | (6,762 | ) | -0.4 | % | 592,132 | 52.8 | % | |||||||||||||||||||||||
| Loans (including loans held for sale) | 6,693,482 | 6,880,909 | 6,927,270 | (187,427 | ) | -2.7 | % | (233,788 | ) | -3.4 | % | ||||||||||||||||||||||
| Fed funds sold and rev repos | 12,821 | 20,973 | 17,401 | (8,152 | ) | -38.9 | % | (4,580 | ) | -26.3 | % | ||||||||||||||||||||||
| Other earning assets | 43,894 | 47,084 | 37,323 | (3,190 | ) | -6.8 | % | 6,571 | 17.6 | % | |||||||||||||||||||||||
| Total earning assets | 8,464,148 | 8,669,679 | 8,103,813 | (205,531 | ) | -2.4 | % | 360,335 | 4.4 | % | |||||||||||||||||||||||
| Allowance for loan losses | (102,545 | ) | (106,491 | ) | (88,643 | ) | 3,946 | -3.7 | % | (13,902 | ) | 15.7 | % | ||||||||||||||||||||
| Cash and due from banks | 205,361 | 214,633 | 246,515 | (9,272 | ) | -4.3 | % | (41,154 | ) | -16.7 | % | ||||||||||||||||||||||
| Other assets | 871,477 | 824,724 | 810,449 | 46,753 | 5.7 | % | 61,028 | 7.5 | % | ||||||||||||||||||||||||
| Total assets | $ | 9,438,441 | $ | 9,602,545 | $ | 9,072,134 | $ | (164,104 | ) | -1.7 | % | $ | 366,307 | 4.0 | % | ||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,148,537 | $ | 1,131,765 | $ | 1,222,087 | $ | 16,772 | 1.5 | % | $ | (73,550 | ) | -6.0 | % | ||||||||||||||||||
| Savings deposits | 1,797,421 | 1,869,794 | 1,774,188 | (72,373 | ) | -3.9 | % | 23,233 | 1.3 | % | |||||||||||||||||||||||
| Time deposits less than $100,000 | 1,434,097 | 1,493,172 | 1,532,630 | (59,075 | ) | -4.0 | % | (98,533 | ) | -6.4 | % | ||||||||||||||||||||||
| Time deposits of $100,000 or more | 1,095,431 | 1,096,170 | 1,108,677 | (739 | ) | -0.1 | % | (13,246 | ) | -1.2 | % | ||||||||||||||||||||||
| Total interest-bearing deposits | 5,475,486 | 5,590,901 | 5,637,582 | (115,415 | ) | -2.1 | % | (162,096 | ) | -2.9 | % | ||||||||||||||||||||||
| Fed funds purchased and repos | 644,012 | 589,542 | 659,312 | 54,470 | 9.2 | % | (15,300 | ) | -2.3 | % | |||||||||||||||||||||||
| Short-term borrowings | 263,891 | 340,816 | 156,880 | (76,925 | ) | -22.6 | % | 107,011 | 68.2 | % | |||||||||||||||||||||||
| Long-term FHLB advances | 75,000 | 75,000 | - | - | 0.0 | % | 75,000 | n/m | |||||||||||||||||||||||||
| Subordinated notes | 49,760 | 49,752 | 49,728 | 8 | 0.0 | % | 32 | 0.1 | % | ||||||||||||||||||||||||
| Junior subordinated debt securities | 70,104 | 70,104 | 70,104 | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 6,578,253 | 6,716,115 | 6,573,606 | (137,862 | ) | -2.1 | % | 4,647 | 0.1 | % | |||||||||||||||||||||||
| Noninterest-bearing deposits | 1,529,381 | 1,554,642 | 1,415,402 | (25,261 | ) | -1.6 | % | 113,979 | 8.1 | % | |||||||||||||||||||||||
| Other liabilities | 113,820 | 124,586 | 136,229 | (10,766 | ) | -8.6 | % | (22,409 | ) | -16.4 | % | ||||||||||||||||||||||
| Total liabilities | 8,221,454 | 8,395,343 | 8,125,237 | (173,889 | ) | -2.1 | % | 96,217 | 1.2 | % | |||||||||||||||||||||||
| Preferred equity | 206,308 | 205,860 | - | 448 | 0.2 | % | 206,308 | n/m | |||||||||||||||||||||||||
| Common equity | 1,010,679 | 1,001,342 | 946,897 | 9,337 | 0.9 | % | 63,782 | 6.7 | % | ||||||||||||||||||||||||
| Total shareholders' equity | 1,216,987 | 1,207,202 | 946,897 | 9,785 | 0.8 | % | 270,090 | 28.5 | % | ||||||||||||||||||||||||
| Total liabilities and equity | $ | 9,438,441 | $ | 9,602,545 | $ | 9,072,134 | $ | (164,104 | ) | -1.7 | % | $ | 366,307 | 4.0 | % | ||||||||||||||||||
| Linked Quarter | Year over Year | ||||||||||||||||||||||||||||||||
|
PERIOD END BALANCES |
9/30/2009 | 6/30/2009 | 9/30/2008 |
$ Change |
% Change |
$ Change |
% Change | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 191,449 | $ | 220,706 | $ | 235,016 | $ | (29,257 | ) | -13.3 | % | $ | (43,567 | ) | -18.5 | % | |||||||||||||||||
| Fed funds sold and rev repos | 8,551 | 16,367 | 14,782 | (7,816 | ) | -47.8 | % | (6,231 | ) | -42.2 | % | ||||||||||||||||||||||
| Securities available for sale | 1,528,625 | 1,488,428 | 907,629 | 40,197 | 2.7 | % | 620,996 | 68.4 | % | ||||||||||||||||||||||||
| Securities held to maturity | 242,603 | 254,380 | 256,323 | (11,777 | ) | -4.6 | % | (13,720 | ) | -5.4 | % | ||||||||||||||||||||||
| Loans held for sale | 237,152 | 280,975 | 154,162 | (43,823 | ) | -15.6 | % | 82,990 | 53.8 | % | |||||||||||||||||||||||
| Loans | 6,382,440 | 6,570,582 | 6,740,730 | (188,142 | ) | -2.9 | % | (358,290 | ) | -5.3 | % | ||||||||||||||||||||||
| Allowance for loan losses | (103,016 | ) | (101,751 | ) | (90,888 | ) | (1,265 | ) | 1.2 | % | (12,128 | ) | 13.3 | % | |||||||||||||||||||
| Net Loans | 6,279,424 | 6,468,831 | 6,649,842 | (189,407 | ) | -2.9 | % | (370,418 | ) | -5.6 | % | ||||||||||||||||||||||
| Premises and equipment, net | 151,828 | 156,541 | 156,298 | (4,713 | ) | -3.0 | % | (4,470 | ) | -2.9 | % | ||||||||||||||||||||||
| Mortgage servicing rights | 56,042 | 63,316 | 78,550 | (7,274 | ) | -11.5 | % | (22,508 | ) | -28.7 | % | ||||||||||||||||||||||
| Goodwill | 291,104 | 291,104 | 291,145 | - | 0.0 | % | (41 | ) | 0.0 | % | |||||||||||||||||||||||
| Identifiable intangible assets | 20,819 | 21,820 | 24,887 | (1,001 | ) | -4.6 | % | (4,068 | ) | -16.3 | % | ||||||||||||||||||||||
| Other assets | 360,901 | 364,402 | 317,639 | (3,501 | ) | -1.0 | % | 43,262 | 13.6 | % | |||||||||||||||||||||||
| Total assets | $ | 9,368,498 | $ | 9,626,870 | $ | 9,086,273 | $ | (258,372 | ) | -2.7 | % | $ | 282,225 | 3.1 | % | ||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||
| Noninterest-bearing | $ | 1,493,424 | $ | 1,558,934 | $ | 1,526,374 | $ | (65,510 | ) | -4.2 | % | $ | (32,950 | ) | -2.2 | % | |||||||||||||||||
| Interest-bearing | 5,377,011 | 5,588,955 | 5,411,304 | (211,944 | ) | -3.8 | % | (34,293 | ) | -0.6 | % | ||||||||||||||||||||||
| Total deposits | 6,870,435 | 7,147,889 | 6,937,678 | (277,454 | ) | -3.9 | % | (67,243 | ) | -1.0 | % | ||||||||||||||||||||||
| Fed funds purchased and repos | 645,057 | 627,616 | 592,818 | 17,441 | 2.8 | % | 52,239 | 8.8 | % | ||||||||||||||||||||||||
| Short-term borrowings | 315,105 | 314,751 | 369,037 | 354 | 0.1 | % | (53,932 | ) | -14.6 | % | |||||||||||||||||||||||
| Long-term FHLB advances | 75,000 | 75,000 | - | - | n/m | 75,000 | n/m | ||||||||||||||||||||||||||
| Subordinated notes | 49,766 | 49,758 | 49,733 | 8 | 0.0 | % | 33 | 0.1 | % | ||||||||||||||||||||||||
| Junior subordinated debt securities | 70,104 | 70,104 | 70,104 | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||||
| Other liabilities | 121,670 | 139,638 | 117,905 | (17,968 | ) | -12.9 | % | 3,765 | 3.2 | % | |||||||||||||||||||||||
| Total liabilities | 8,147,137 | 8,424,756 | 8,137,275 | (277,619 | ) | -3.3 | % | 9,862 | 0.1 | % | |||||||||||||||||||||||
| Preferred stock | 206,461 | 206,009 | - | 452 | 0.2 | % | 206,461 | n/m | |||||||||||||||||||||||||
| Common stock | 11,968 | 11,964 | 11,944 | 4 | 0.0 | % | 24 | 0.2 | % | ||||||||||||||||||||||||
| Capital surplus | 145,352 | 143,654 | 128,617 | 1,698 | 1.2 | % | 16,735 | 13.0 | % | ||||||||||||||||||||||||
| Retained earnings | 854,508 | 845,882 | 824,768 | 8,626 | 1.0 | % | 29,740 | 3.6 | % | ||||||||||||||||||||||||
|
Accum other comprehensive income (loss), net of tax |
3,072 | (5,395 | ) | (16,331 | ) | 8,467 | n/m | 19,403 | n/m | ||||||||||||||||||||||||
| Total shareholders' equity | 1,221,361 | 1,202,114 | 948,998 | 19,247 | 1.6 | % | 272,363 | 28.7 | % | ||||||||||||||||||||||||
| Total liabilities and equity | $ | 9,368,498 | $ | 9,626,870 | $ | 9,086,273 | $ | (258,372 | ) | -2.7 | % | $ | 282,225 | 3.1 | % | ||||||||||||||||||
| n/m - percentage changes greater than +/- 100% are considered not meaningful | |||||||||||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
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| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||
| September 30, 2009 | |||||||||||||||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||||||||||||||||
|
INCOME STATEMENTS |
9/30/2009 | 6/30/2009 | 9/30/2008 |
$ Change |
% Change |
$ Change |
% Change | ||||||||||||||||||||||||||
| Interest and fees on loans-FTE | $ | 89,672 | $ | 91,652 | $ | 105,706 | $ | (1,980 | ) | -2.2 | % | $ | (16,034 | ) | -15.2 | % | |||||||||||||||||
| Interest on securities-taxable | 19,524 | 20,444 | 12,117 | (920 | ) | -4.5 | % | 7,407 | 61.1 | % | |||||||||||||||||||||||
| Interest on securities-tax exempt-FTE | 2,172 | 2,040 | 1,946 | 132 | 6.5 | % | 226 | 11.6 | % | ||||||||||||||||||||||||
| Interest on fed funds sold and rev repos | 16 | 19 | 98 | (3 | ) | -15.8 | % | (82 | ) | -83.7 | % | ||||||||||||||||||||||
| Other interest income | 381 | 343 | 407 | 38 | 11.1 | % | (26 | ) | -6.4 | % | |||||||||||||||||||||||
| Total interest income-FTE | 111,765 | 114,498 | 120,274 | (2,733 | ) | -2.4 | % | (8,509 | ) | -7.1 | % | ||||||||||||||||||||||
| Interest on deposits | 18,403 | 21,430 | 32,860 | (3,027 | ) | -14.1 | % | (14,457 | ) | -44.0 | % | ||||||||||||||||||||||
| Interest on fed funds pch and repos | 282 | 272 | 3,123 | 10 | 3.7 | % | (2,841 | ) | -91.0 | % | |||||||||||||||||||||||
| Other interest expense | 1,786 | 1,980 | 2,653 | (194 | ) | -9.8 | % | (867 | ) | -32.7 | % | ||||||||||||||||||||||
| Total interest expense | 20,471 | 23,682 | 38,636 | (3,211 | ) | -13.6 | % | (18,165 | ) | -47.0 | % | ||||||||||||||||||||||
| Net interest income-FTE | 91,294 | 90,816 | 81,638 | 478 | 0.5 | % | 9,656 | 11.8 | % | ||||||||||||||||||||||||
| Provision for loan losses | 15,770 | 26,767 | 14,473 | (10,997 | ) | -41.1 | % | 1,297 | 9.0 | % | |||||||||||||||||||||||
| Net interest income after provision-FTE | 75,524 | 64,049 | 67,165 | 11,475 | 17.9 | % | 8,359 | 12.4 | % | ||||||||||||||||||||||||
| Service charges on deposit accounts | 14,157 | 13,244 | 13,886 | 913 | 6.9 | % | 271 | 2.0 | % | ||||||||||||||||||||||||
| Insurance commissions | 7,894 | 7,372 | 9,007 | 522 | 7.1 | % | (1,113 | ) | -12.4 | % | |||||||||||||||||||||||
| Wealth management | 5,589 | 5,497 | 6,788 | 92 | 1.7 | % | (1,199 | ) | -17.7 | % | |||||||||||||||||||||||
| General banking - other | 5,620 | 6,063 | 5,813 | (443 | ) | -7.3 | % | (193 | ) | -3.3 | % | ||||||||||||||||||||||
| Mortgage banking, net | 8,871 | 2,543 | 4,323 | 6,328 | n/m | 4,548 | n/m | ||||||||||||||||||||||||||
| Other, net | 994 | 1,693 | 2,131 | (699 | ) | -41.3 | % | (1,137 | ) | -53.4 | % | ||||||||||||||||||||||
| Nonint inc-excl sec gains, net | 43,125 | 36,412 | 41,948 | 6,713 | 18.4 | % | 1,177 | 2.8 | % | ||||||||||||||||||||||||
| Security gains, net | 1,014 | 4,404 | 2 | (3,390 | ) | -77.0 | % | 1,012 | n/m | ||||||||||||||||||||||||
| Total noninterest income | 44,139 | 40,816 | 41,950 | 3,323 | 8.1 | % | 2,189 | 5.2 | % | ||||||||||||||||||||||||
| Salaries and employee benefits | 42,629 | 40,989 | 42,859 | 1,640 | 4.0 | % | (230 | ) | -0.5 | % | |||||||||||||||||||||||
| Services and fees | 10,124 | 10,249 | 9,785 | (125 | ) | -1.2 | % | 339 | 3.5 | % | |||||||||||||||||||||||
| Net occupancy-premises | 4,862 | 4,948 | 5,153 | (86 | ) | -1.7 | % | (291 | ) | -5.6 | % | ||||||||||||||||||||||
| Equipment expense | 4,104 | 4,108 | 4,231 | (4 | ) | -0.1 | % | (127 | ) | -3.0 | % | ||||||||||||||||||||||
| Other expense | 17,515 | 18,677 | 10,706 | (1,162 | ) | -6.2 | % | 6,809 | 63.6 | % | |||||||||||||||||||||||
| Total noninterest expense | 79,234 | 78,971 | 72,734 | 263 | 0.3 | % | 6,500 | 8.9 | % | ||||||||||||||||||||||||
| Income before income taxes and tax eq adj | 40,429 | 25,894 | 36,381 | 14,535 | 56.1 | % | 4,048 | 11.1 | % | ||||||||||||||||||||||||
| Tax equivalent adjustment | 2,417 | 2,325 | 2,242 | 92 | 4.0 | % | 175 | 7.8 | % | ||||||||||||||||||||||||
| Income before income taxes | 38,012 | 23,569 | 34,139 | 14,443 | 61.3 | % | 3,873 | 11.3 | % | ||||||||||||||||||||||||
| Income taxes | 12,502 | 6,994 | 10,785 | 5,508 | 78.8 | % | 1,717 | 15.9 | % | ||||||||||||||||||||||||
| Net income | 25,510 | 16,575 | 23,354 | 8,935 | 53.9 | % | 2,156 | 9.2 | % | ||||||||||||||||||||||||
| Preferred stock dividends | 2,688 | 2,687 | - | 1 | 0.0 | % | 2,688 | n/m | |||||||||||||||||||||||||
| Accretion of preferred stock discount | 452 | 445 | - | 7 | 1.6 | % | 452 | n/m | |||||||||||||||||||||||||
| Net income available to common shareholders | $ | 22,370 | $ | 13,443 | $ | 23,354 | $ | 8,927 | 66.4 | % | $ | (984 | ) | -4.2 | % | ||||||||||||||||||
| Per common share data | |||||||||||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.39 | $ | 0.23 | $ | 0.41 | $ | 0.16 | 69.6 | % | $ | (0.02 | ) | -4.9 | % | ||||||||||||||||||
| Earnings per share - diluted | $ | 0.39 | $ | 0.23 | $ | 0.41 | $ | 0.16 | 69.6 | % | $ | (0.02 | ) | -4.9 | % | ||||||||||||||||||
| Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | - | 0.0 | % | $ | - | 0.0 | % | |||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||
| Basic | 57,431,128 | 57,406,499 | 57,298,710 | ||||||||||||||||||||||||||||||
| Diluted | 57,559,492 | 57,546,928 | 57,337,342 | ||||||||||||||||||||||||||||||
| Period end common shares outstanding | 57,440,047 | 57,423,841 | 57,324,627 | ||||||||||||||||||||||||||||||
|
OTHER FINANCIAL DATA |
|||||||||||||||||||||||||||||||||
| Return on common equity | 8.78 | % | 5.38 | % | 9.81 | % | |||||||||||||||||||||||||||
| Return on average tangible common equity | 13.06 | % | 8.20 | % | 15.16 | % | |||||||||||||||||||||||||||
| Return on equity | 8.32 | % | 5.51 | % | 9.81 | % | |||||||||||||||||||||||||||
| Return on assets | 1.07 | % | 0.69 | % | 1.02 | % | |||||||||||||||||||||||||||
| Interest margin - Yield - FTE | 5.24 | % | 5.30 | % | 5.90 | % | |||||||||||||||||||||||||||
| Interest margin - Cost | 0.96 | % | 1.10 | % | 1.90 | % | |||||||||||||||||||||||||||
| Net interest margin - FTE | 4.28 | % | 4.20 | % | 4.01 | % | |||||||||||||||||||||||||||
| Efficiency ratio | 58.95 | % | 58.57 | % | 58.85 | % | |||||||||||||||||||||||||||
| Full-time equivalent employees | 2,550 | 2,562 | 2,623 | ||||||||||||||||||||||||||||||
|
COMMON STOCK PERFORMANCE |
|||||||||||||||||||||||||||||||||
| Market value-Close | $ | 19.05 | $ | 19.32 | $ | 20.74 | |||||||||||||||||||||||||||
| Common book value | $ | 17.67 | $ | 17.35 | $ | 16.55 | |||||||||||||||||||||||||||
| Tangible common book value | $ | 12.24 | $ | 11.90 | $ | 11.04 | |||||||||||||||||||||||||||
| n/m - percentage changes greater than +/- 100% are considered not meaningful | |||||||||||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||
| September 30, 2009 | |||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||||||||||||||||
|
NONPERFORMING ASSETS |
9/30/2009 | 6/30/2009 | 9/30/2008 |
$ Change |
% Change |
$ Change |
% Change | ||||||||||||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||||||||||||
| Florida | $ | 72,063 | $ | 72,185 | $ | 71,125 | $ | (122 | ) | -0.2 | % | $ | 938 | 1.3 | % | ||||||||||||||||||
| Mississippi (1) | 28,470 | 32,040 | 12,727 | (3,570 | ) | -11.1 | % | 15,743 | n/m | ||||||||||||||||||||||||
| Tennessee (2) | 11,481 | 2,941 | 4,012 | 8,540 | n/m | 7,469 | n/m | ||||||||||||||||||||||||||
| Texas | 26,490 | 25,824 | 17,418 | 666 | 2.6 | % | 9,072 | 52.1 | % | ||||||||||||||||||||||||
| Total nonaccrual loans | 138,504 | 132,990 | 105,282 | 5,514 | 4.1 | % | 33,222 | 31.6 | % | ||||||||||||||||||||||||
| Other real estate | |||||||||||||||||||||||||||||||||
| Florida | 34,030 | 26,387 | 18,265 | 7,643 | 29.0 | % | 15,765 | 86.3 | % | ||||||||||||||||||||||||
| Mississippi (1) | 22,932 | 15,542 | 6,062 | 7,390 | 47.5 | % | 16,870 | n/m | |||||||||||||||||||||||||
| Tennessee (2) | 9,809 | 10,234 | 7,924 | (425 | ) | -4.2 | % | 1,885 | 23.8 | % | |||||||||||||||||||||||
| Texas | 4,918 | 3,033 | 214 | 1,885 | 62.1 | % | 4,704 | n/m | |||||||||||||||||||||||||
| Total other real estate | 71,689 | 55,196 | 32,465 | 16,493 | 29.9 | % | 39,224 | n/m | |||||||||||||||||||||||||
| Total nonperforming assets | $ | 210,193 | $ | 188,186 | $ | 137,747 | $ | 22,007 | 11.7 | % | $ | 72,446 | 52.6 | % | |||||||||||||||||||
|
LOANS PAST DUE OVER 90 DAYS |
|||||||||||||||||||||||||||||||||
| Loans held for investment | $ | 6,854 | $ | 6,873 | $ | 3,622 | $ | (19 | ) | -0.3 | % | $ | 3,232 | 89.2 | % | ||||||||||||||||||
|
Loans HFS-Guaranteed GNMA serviced loans (no obligation to repurchase) |
$ | 36,686 | $ | 28,523 | $ | 20,332 | $ | 8,163 | 28.6 | % | $ | 16,354 | 80.4 | % | |||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||||||||||||||||
|
ALLOWANCE FOR LOAN LOSSES |
9/30/2009 | 6/30/2009 | 9/30/2008 |
$ Change |
% Change |
$ Change |
% Change | ||||||||||||||||||||||||||
| Beginning Balance | $ | 101,751 | $ | 100,358 | $ | 86,576 | $ | 1,393 | 1.4 | % | $ | 15,175 | 17.5 | % | |||||||||||||||||||
| Provision for loan losses | 15,770 | 26,767 | 14,473 | (10,997 | ) | -41.1 | % | 1,297 | 9.0 | % | |||||||||||||||||||||||
| Charge-offs | (18,687 | ) | (27,870 | ) | (12,732 | ) | 9,183 | -32.9 | % | (5,955 | ) | 46.8 | % | ||||||||||||||||||||
| Recoveries | 4,182 | 2,496 | 2,571 | 1,686 | 67.5 | % | 1,611 | 62.7 | % | ||||||||||||||||||||||||
| Net charge-offs | (14,505 | ) | (25,374 | ) | (10,161 | ) | 10,869 | -42.8 | % | (4,344 | ) | 42.8 | % | ||||||||||||||||||||
| Ending Balance | $ | 103,016 | $ | 101,751 | $ | 90,888 | $ | 1,265 | 1.2 | % | $ | 12,128 | 13.3 | % | |||||||||||||||||||
|
PROVISION FOR LOAN LOSSES |
|||||||||||||||||||||||||||||||||
| Florida | $ | (3,295 | ) | $ | 28,915 | $ | 3,167 | $ | (32,210 | ) | n/m | $ | (6,462 | ) | n/m | ||||||||||||||||||
| Mississippi (1) | 12,009 | (1,044 | ) | 8,476 | 13,053 | n/m | 3,533 | 41.7 | % | ||||||||||||||||||||||||
| Tennessee (2) | 159 | (659 | ) | 27 | 818 | n/m | 132 | n/m | |||||||||||||||||||||||||
| Texas | 6,897 | (445 | ) | 2,803 | 7,342 | n/m | 4,094 | n/m | |||||||||||||||||||||||||
| Total provision for loan losses | $ | 15,770 | $ | 26,767 | $ | 14,473 | $ | (10,997 | ) | -41.1 | % | $ | 1,297 | 9.0 | % | ||||||||||||||||||
|
NET CHARGE-OFFS |
|||||||||||||||||||||||||||||||||
| Florida | $ | 131 | $ | 21,167 | $ | 3,779 | $ | (21,036 | ) | -99.4 | % | $ | (3,648 | ) | -96.5 | % | |||||||||||||||||
| Mississippi (1) | 9,629 | 3,267 | 4,515 | 6,362 | n/m | 5,114 | n/m | ||||||||||||||||||||||||||
| Tennessee (2) | 872 | 897 | 1,291 | (25 | ) | -2.8 | % | (419 | ) | -32.5 | % | ||||||||||||||||||||||
| Texas | 3,873 | 43 | 576 | 3,830 | n/m | 3,297 | n/m | ||||||||||||||||||||||||||
| Total net charge-offs | $ | 14,505 | $ | 25,374 | $ | 10,161 | $ | (10,869 | ) | -42.8 | % | $ | 4,344 | 42.8 | % | ||||||||||||||||||
|
CREDIT QUALITY RATIOS |
|||||||||||||||||||||||||||||||||
| Net charge offs/average loans | 0.86 | % | 1.48 | % | 0.58 | % | |||||||||||||||||||||||||||
| Provision for loan losses/average loans | 0.93 | % | 1.56 | % | 0.83 | % | |||||||||||||||||||||||||||
| Nonperforming loans/total loans (incl LHFS) | 2.09 | % | 1.94 | % | 1.53 | % | |||||||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) | 3.18 | % | 2.75 | % | 2.00 | % | |||||||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) +ORE | 3.14 | % | 2.72 | % | 1.99 | % | |||||||||||||||||||||||||||
| ALL/total loans (excl LHFS) | 1.61 | % | 1.55 | % | 1.35 | % | |||||||||||||||||||||||||||
| ALL-commercial/total commercial loans | 2.08 | % | 2.01 | % | 1.76 | % | |||||||||||||||||||||||||||
| ALL-consumer/total consumer and home mortgage loans | 0.76 | % | 0.73 | % | 0.64 | % | |||||||||||||||||||||||||||
| ALL/nonperforming loans | 74.38 | % | 76.51 | % | 86.33 | % | |||||||||||||||||||||||||||
| ALL/nonperforming loans (excl impaired loans) | 117.93 | % | 123.15 | % | 145.21 | % | |||||||||||||||||||||||||||
|
CAPITAL RATIOS |
|||||||||||||||||||||||||||||||||
| Total equity/total assets | 13.04 | % | 12.49 | % | 10.44 | % | |||||||||||||||||||||||||||
| Common equity/total assets | 10.83 | % | 10.35 | % | 10.44 | % | |||||||||||||||||||||||||||
| Tangible equity/tangible assets | 10.04 | % | 9.55 | % | 7.22 | % | |||||||||||||||||||||||||||
| Tangible common equity/tangible assets | 7.76 | % | 7.34 | % | 7.22 | % | |||||||||||||||||||||||||||
| Tangible common equity/risk-weighted assets | 10.15 | % | 9.56 | % | 8.80 | % | |||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.70 | % | 10.38 | % | 8.11 | % | |||||||||||||||||||||||||||
| Tier 1 common risk-based capital ratio | 10.15 | % | 9.66 | % | 8.91 | % | |||||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 14.11 | % | 13.50 | % | 9.86 | % | |||||||||||||||||||||||||||
| Total risk-based capital ratio | 16.09 | % | 15.45 | % | 11.80 | % | |||||||||||||||||||||||||||
| (1) - Mississippi includes Central and Southern Mississippi Regions | |||||||||||||||||||||||||||||||||
| (2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions | |||||||||||||||||||||||||||||||||
| n/m - percentage changes greater than +/- 100% are considered not meaningful | |||||||||||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||
| September 30, 2009 | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
|
QUARTERLY AVERAGE BALANCES |
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||||||
| Securities AFS-taxable | $ | 1,377,318 | $ | 1,395,303 | $ | 1,505,328 | $ | 1,226,843 | $ | 822,995 | $ | 1,425,514 | $ | 649,258 | |||||||||||||||||||||
| Securities AFS-nontaxable | 89,259 | 70,165 | 43,429 | 40,708 | 39,886 | 67,786 | 37,341 | ||||||||||||||||||||||||||||
| Securities HTM-taxable | 191,934 | 194,079 | 178,417 | 169,958 | 184,001 | 188,193 | 186,542 | ||||||||||||||||||||||||||||
| Securities HTM-nontaxable | 55,440 | 61,166 | 67,308 | 71,843 | 74,937 | 61,261 | 77,802 | ||||||||||||||||||||||||||||
| Total securities | 1,713,951 | 1,720,713 | 1,794,482 | 1,509,352 | 1,121,819 | 1,742,754 | 950,943 | ||||||||||||||||||||||||||||
| Loans (including loans held for sale) | 6,693,482 | 6,880,909 | 6,981,921 | 6,908,296 | 6,927,270 | 6,851,047 | 7,061,176 | ||||||||||||||||||||||||||||
| Fed funds sold and rev repos | 12,821 | 20,973 | 15,988 | 22,871 | 17,401 | 16,582 | 23,607 | ||||||||||||||||||||||||||||
| Other earning assets | 43,894 | 47,084 | 40,485 | 49,197 | 37,323 | 43,833 | 38,583 | ||||||||||||||||||||||||||||
| Total earning assets | 8,464,148 | 8,669,679 | 8,832,876 | 8,489,716 | 8,103,813 | 8,654,216 | 8,074,309 | ||||||||||||||||||||||||||||
| Allowance for loan losses | (102,545 | ) | (106,491 | ) | (97,986 | ) | (91,802 | ) | (88,643 | ) | (102,357 | ) | (84,217 | ) | |||||||||||||||||||||
| Cash and due from banks | 205,361 | 214,633 | 239,508 | 223,774 | 246,515 | 219,709 | 253,127 | ||||||||||||||||||||||||||||
| Other assets | 871,477 | 824,724 | 803,416 | 801,890 | 810,449 | 833,456 | 789,792 | ||||||||||||||||||||||||||||
| Total assets | $ | 9,438,441 | $ | 9,602,545 | $ | 9,777,814 | $ | 9,423,578 | $ | 9,072,134 | $ | 9,605,024 | $ | 9,033,011 | |||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,148,537 | $ | 1,131,765 | $ | 1,118,347 | $ | 1,149,071 | $ | 1,222,087 | $ | 1,132,994 | $ | 1,238,029 | |||||||||||||||||||||
| Savings deposits | 1,797,421 | 1,869,794 | 1,815,672 | 1,709,670 | 1,774,188 | 1,827,562 | 1,798,801 | ||||||||||||||||||||||||||||
| Time deposits less than $100,000 | 1,434,097 | 1,493,172 | 1,485,680 | 1,478,753 | 1,532,630 | 1,470,794 | 1,559,629 | ||||||||||||||||||||||||||||
| Time deposits of $100,000 or more | 1,095,431 | 1,096,170 | 1,074,873 | 1,045,377 | 1,108,677 | 1,088,900 | 1,063,805 | ||||||||||||||||||||||||||||
| Total interest-bearing deposits | 5,475,486 | 5,590,901 | 5,494,572 | 5,382,871 | 5,637,582 | 5,520,250 | 5,660,264 | ||||||||||||||||||||||||||||
| Fed funds purchased and repos | 644,012 | 589,542 | 674,175 | 809,822 | 659,312 | 635,799 | 565,304 | ||||||||||||||||||||||||||||
| Short-term borrowings | 263,891 | 340,816 | 647,604 | 494,928 | 156,880 | 416,031 | 203,792 | ||||||||||||||||||||||||||||
| Long-term FHLB advances | 75,000 | 75,000 | 58,333 | - | - | 69,505 | - | ||||||||||||||||||||||||||||
| Subordinated notes | 49,760 | 49,752 | 49,744 | 49,736 | 49,728 | 49,752 | 49,720 | ||||||||||||||||||||||||||||
| Junior subordinated debt securities | 70,104 | 70,104 | 70,104 | 70,104 | 70,104 | 70,104 | 70,104 | ||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 6,578,253 | 6,716,115 | 6,994,532 | 6,807,461 | 6,573,606 | 6,761,441 | 6,549,184 | ||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,529,381 | 1,554,642 | 1,470,822 | 1,433,361 | 1,415,402 | 1,518,496 | 1,405,244 | ||||||||||||||||||||||||||||
| Other liabilities | 113,820 | 124,586 | 120,062 | 126,704 | 136,229 | 119,468 | 137,395 | ||||||||||||||||||||||||||||
| Total liabilities | 8,221,454 | 8,395,343 | 8,585,416 | 8,367,526 | 8,125,237 | 8,399,405 | 8,091,823 | ||||||||||||||||||||||||||||
| Preferred equity | 206,308 | 205,860 | 205,417 | 91,385 | - | 205,865 | - | ||||||||||||||||||||||||||||
| Common equity | 1,010,679 | 1,001,342 | 986,981 | 964,667 | 946,897 | 999,754 | 941,188 | ||||||||||||||||||||||||||||
| Total shareholders' equity | 1,216,987 | 1,207,202 | 1,192,398 | 1,056,052 | 946,897 | 1,205,619 | 941,188 | ||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 9,438,441 | $ | 9,602,545 | $ | 9,777,814 | $ | 9,423,578 | $ | 9,072,134 | $ | 9,605,024 | $ | 9,033,011 | |||||||||||||||||||||
|
PERIOD END BALANCES |
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 191,449 | $ | 220,706 | $ | 231,211 | $ | 257,930 | $ | 235,016 | |||||||||||||||||||||||||
| Fed funds sold and rev repos | 8,551 | 16,367 | 8,014 | 23,401 | 14,782 | ||||||||||||||||||||||||||||||
| Securities available for sale | 1,528,625 | 1,488,428 | 1,613,047 | 1,542,841 | 907,629 | ||||||||||||||||||||||||||||||
| Securities held to maturity | 242,603 | 254,380 | 256,677 | 259,629 | 256,323 | ||||||||||||||||||||||||||||||
| Loans held for sale | 237,152 | 280,975 | 301,691 | 238,265 | 154,162 | ||||||||||||||||||||||||||||||
| Loans | 6,382,440 | 6,570,582 | 6,640,597 | 6,722,403 | 6,740,730 | ||||||||||||||||||||||||||||||
| Allowance for loan losses | (103,016 | ) | (101,751 | ) | (100,358 | ) | (94,922 | ) | (90,888 | ) | |||||||||||||||||||||||||
| Net Loans | 6,279,424 | 6,468,831 | 6,540,239 | 6,627,481 | 6,649,842 | ||||||||||||||||||||||||||||||
| Premises and equipment, net | 151,828 | 156,541 | 157,068 | 156,811 | 156,298 | ||||||||||||||||||||||||||||||
| Mortgage servicing rights | 56,042 | 63,316 | 45,256 | 42,882 | 78,550 | ||||||||||||||||||||||||||||||
| Goodwill | 291,104 | 291,104 | 291,104 | 291,104 | 291,145 | ||||||||||||||||||||||||||||||
| Identifiable intangible assets | 20,819 | 21,820 | 22,820 | 23,821 | 24,887 | ||||||||||||||||||||||||||||||
| Other assets | 360,901 | 364,402 | 308,587 | 326,744 | 317,639 | ||||||||||||||||||||||||||||||
| Total assets | $ | 9,368,498 | $ | 9,626,870 | $ | 9,775,714 | $ | 9,790,909 | $ | 9,086,273 | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing | $ | 1,493,424 | $ | 1,558,934 | $ | 1,504,032 | $ | 1,496,166 | $ | 1,526,374 | |||||||||||||||||||||||||
| Interest-bearing | 5,377,011 | 5,588,955 | 5,652,908 | 5,327,704 | 5,411,304 | ||||||||||||||||||||||||||||||
| Total deposits | 6,870,435 | 7,147,889 | 7,156,940 | 6,823,870 | 6,937,678 | ||||||||||||||||||||||||||||||
| Fed funds purchased and repos | 645,057 | 627,616 | 607,083 | 811,129 | 592,818 | ||||||||||||||||||||||||||||||
| Short-term borrowings | 315,105 | 314,751 | 448,380 | 730,958 | 369,037 | ||||||||||||||||||||||||||||||
| Long-term FHLB advances | 75,000 | 75,000 | 75,000 | - | - | ||||||||||||||||||||||||||||||
| Subordinated notes | 49,766 | 49,758 | 49,750 | 49,741 | 49,733 | ||||||||||||||||||||||||||||||
| Junior subordinated debt securities | 70,104 | 70,104 | 70,104 | 70,104 | 70,104 | ||||||||||||||||||||||||||||||
| Other liabilities | 121,670 | 139,638 | 168,089 | 126,641 | 117,905 | ||||||||||||||||||||||||||||||
| Total liabilities | 8,147,137 | 8,424,756 | 8,575,346 | 8,612,443 | 8,137,275 | ||||||||||||||||||||||||||||||
| Preferred stock | 206,461 | 206,009 | 205,564 | 205,126 | - | ||||||||||||||||||||||||||||||
| Common stock | 11,968 | 11,964 | 11,955 | 11,944 | 11,944 | ||||||||||||||||||||||||||||||
| Capital surplus | 145,352 | 143,654 | 142,167 | 139,471 | 128,617 | ||||||||||||||||||||||||||||||
| Retained earnings | 854,508 | 845,882 | 845,779 | 836,642 | 824,768 | ||||||||||||||||||||||||||||||
|
Accum other comprehensive income (loss), net of tax |
3,072 | (5,395 | ) | (5,097 | ) | (14,717 | ) | (16,331 | ) | ||||||||||||||||||||||||||
| Total shareholders' equity | 1,221,361 | 1,202,114 | 1,200,368 | 1,178,466 | 948,998 | ||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 9,368,498 | $ | 9,626,870 | $ | 9,775,714 | $ | 9,790,909 | $ | 9,086,273 | |||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||
| September 30, 2009 | |||||||||||||||||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
|
INCOME STATEMENTS |
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||||||
| Interest and fees on loans-FTE | $ | 89,672 | $ | 91,652 | $ | 92,382 | $ | 101,694 | $ | 105,706 | $ | 273,706 | $ | 334,370 | |||||||||||||||||||||
| Interest on securities-taxable | 19,524 | 20,444 | 21,654 | 17,108 | 12,117 | 61,622 | 29,053 | ||||||||||||||||||||||||||||
| Interest on securities-tax exempt-FTE | 2,172 | 2,040 | 1,834 | 1,891 | 1,946 | 6,046 | 5,975 | ||||||||||||||||||||||||||||
| Interest on fed funds sold and rev repos | 16 | 19 | 19 | 57 | 98 | 54 | 445 | ||||||||||||||||||||||||||||
| Other interest income | 381 | 343 | 313 | 368 | 407 | 1,037 | 1,454 | ||||||||||||||||||||||||||||
| Total interest income-FTE | 111,765 | 114,498 | 116,202 | 121,118 | 120,274 | 342,465 | 371,297 | ||||||||||||||||||||||||||||
| Interest on deposits | 18,403 | 21,430 | 22,540 | 26,818 | 32,860 | 62,373 | 113,104 | ||||||||||||||||||||||||||||
| Interest on fed funds pch and repos | 282 | 272 | 364 | 1,178 | 3,123 | 918 | 9,215 | ||||||||||||||||||||||||||||
| Other interest expense | 1,786 | 1,980 | 2,352 | 3,399 | 2,653 | 6,118 | 10,405 | ||||||||||||||||||||||||||||
| Total interest expense | 20,471 | 23,682 | 25,256 | 31,395 | 38,636 | 69,409 | 132,724 | ||||||||||||||||||||||||||||
| Net interest income-FTE | 91,294 | 90,816 | 90,946 | 89,723 | 81,638 | 273,056 | 238,573 | ||||||||||||||||||||||||||||
| Provision for loan losses | 15,770 | 26,767 | 16,866 | 16,684 | 14,473 | 59,403 | 59,728 | ||||||||||||||||||||||||||||
| Net interest income after provision-FTE | 75,524 | 64,049 | 74,080 | 73,039 | 67,165 | 213,653 | 178,845 | ||||||||||||||||||||||||||||
| Service charges on deposit accounts | 14,157 | 13,244 | 12,568 | 14,044 | 13,886 | 39,969 | 39,673 | ||||||||||||||||||||||||||||
| Insurance commissions | 7,894 | 7,372 | 7,422 | 6,783 | 9,007 | 22,688 | 25,657 | ||||||||||||||||||||||||||||
| Wealth management | 5,589 | 5,497 | 5,555 | 6,583 | 6,788 | 16,641 | 21,017 | ||||||||||||||||||||||||||||
| General banking - other | 5,620 | 6,063 | 5,407 | 5,576 | 5,813 | 17,090 | 17,654 | ||||||||||||||||||||||||||||
| Mortgage banking, net | 8,871 | 2,543 | 10,907 | 4,393 | 4,323 | 22,321 | 22,087 | ||||||||||||||||||||||||||||
| Other, net | 994 | 1,693 | 1,115 | 935 | 2,131 | 3,802 | 12,351 | ||||||||||||||||||||||||||||
| Nonint inc-excl sec gains, net | 43,125 | 36,412 | 42,974 | 38,314 | 41,948 | 122,511 | 138,439 | ||||||||||||||||||||||||||||
| Security gains, net | 1,014 | 4,404 | 30 | 12 | 2 | 5,448 | 493 | ||||||||||||||||||||||||||||
| Total noninterest income | 44,139 | 40,816 | 43,004 | 38,326 | 41,950 | 127,959 | 138,932 | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 42,629 | 40,989 | 43,425 | 41,923 | 42,859 | 127,043 | 129,214 | ||||||||||||||||||||||||||||
| Services and fees | 10,124 | 10,249 | 10,000 | 9,638 | 9,785 | 30,373 | 28,741 | ||||||||||||||||||||||||||||
| Net occupancy-premises | 4,862 | 4,948 | 5,178 | 4,704 | 5,153 | 14,988 | 14,804 | ||||||||||||||||||||||||||||
| Equipment expense | 4,104 | 4,108 | 4,166 | 4,183 | 4,231 | 12,378 | 12,449 | ||||||||||||||||||||||||||||
| Other expense | 17,515 | 18,677 | 11,638 | 11,097 | 10,706 | 47,830 | 26,966 | ||||||||||||||||||||||||||||
| Total noninterest expense | 79,234 | 78,971 | 74,407 | 71,545 | 72,734 | 232,612 | 212,174 | ||||||||||||||||||||||||||||
| Income before income taxes and tax eq adj | 40,429 | 25,894 | 42,677 | 39,820 | 36,381 | 109,000 | 105,603 | ||||||||||||||||||||||||||||
| Tax equivalent adjustment | 2,417 | 2,325 | 2,397 | 2,326 | 2,242 | 7,139 | 6,810 | ||||||||||||||||||||||||||||
| Income before income taxes | 38,012 | 23,569 | 40,280 | 37,494 | 34,139 | 101,861 | 98,793 | ||||||||||||||||||||||||||||
| Income taxes | 12,502 | 6,994 | 13,795 | 12,162 | 10,785 | 33,291 | 31,708 | ||||||||||||||||||||||||||||
| Net income | 25,510 | 16,575 | 26,485 | 25,332 | 23,354 | 68,570 | 67,085 | ||||||||||||||||||||||||||||
| Preferred stock dividends | 2,688 | 2,687 | 2,688 | 1,165 | - | 8,063 | - | ||||||||||||||||||||||||||||
| Accretion of preferred stock discount | 452 | 445 | 438 | 188 | - | 1,335 | - | ||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 22,370 | $ | 13,443 | $ | 23,359 | $ | 23,979 | $ | 23,354 | $ | 59,172 | $ | 67,085 | |||||||||||||||||||||
| Per common share data | |||||||||||||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.39 | $ | 0.23 | $ | 0.41 | $ | 0.42 | $ | 0.41 | $ | 1.03 | $ | 1.17 | |||||||||||||||||||||
| Earnings per share - diluted | $ | 0.39 | $ | 0.23 | $ | 0.41 | $ | 0.42 | $ | 0.41 | $ | 1.03 | $ | 1.17 | |||||||||||||||||||||
| Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.69 | $ | 0.69 | |||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||
| Basic | 57,431,128 | 57,406,499 | 57,350,874 | 57,324,710 | 57,298,710 | 57,396,461 | 57,292,821 | ||||||||||||||||||||||||||||
| Diluted | 57,559,492 | 57,546,928 | 57,398,375 | 57,375,590 | 57,337,342 | 57,496,230 | 57,326,007 | ||||||||||||||||||||||||||||
| Period end common shares outstanding | 57,440,047 | 57,423,841 | 57,378,318 | 57,324,737 | 57,324,627 | 57,440,047 | 57,324,627 | ||||||||||||||||||||||||||||
|
OTHER FINANCIAL DATA |
|||||||||||||||||||||||||||||||||||
| Return on common equity | 8.78 | % | 5.38 | % | 9.60 | % | 9.89 | % | 9.81 | % | 7.91 | % | 9.52 | % | |||||||||||||||||||||
| Return on average tangible common equity | 13.06 | % | 8.20 | % | 14.46 | % | 15.10 | % | 15.16 | % | 11.89 | % | 14.80 | % | |||||||||||||||||||||
| Return on equity | 8.32 | % | 5.51 | % | 9.01 | % | 9.54 | % | 9.81 | % | 7.60 | % | 9.52 | % | |||||||||||||||||||||
| Return on assets | 1.07 | % | 0.69 | % | 1.10 | % | 1.07 | % | 1.02 | % | 0.95 | % | 0.99 | % | |||||||||||||||||||||
| Interest margin - Yield - FTE | 5.24 | % | 5.30 | % | 5.34 | % | 5.68 | % | 5.90 | % | 5.29 | % | 6.14 | % | |||||||||||||||||||||
| Interest margin - Cost | 0.96 | % | 1.10 | % | 1.16 | % | 1.47 | % | 1.90 | % | 1.07 | % | 2.20 | % | |||||||||||||||||||||
| Net interest margin - FTE | 4.28 | % | 4.20 | % | 4.18 | % | 4.20 | % | 4.01 | % | 4.22 | % | 3.95 | % | |||||||||||||||||||||
| Efficiency ratio | 58.95 | % | 58.57 | % | 55.56 | % | 55.86 | % | 58.85 | % | 57.70 | % | 57.38 | % | |||||||||||||||||||||
| Full-time equivalent employees | 2,550 | 2,562 | 2,589 | 2,607 | 2,623 | ||||||||||||||||||||||||||||||
|
COMMON STOCK PERFORMANCE |
|||||||||||||||||||||||||||||||||||
| Market value-Close | $ | 19.05 | $ | 19.32 | $ | 18.38 | $ | 21.59 | $ | 20.74 | |||||||||||||||||||||||||
| Common book value | $ | 17.67 | $ | 17.35 | $ | 17.34 | $ | 16.98 | $ | 16.55 | |||||||||||||||||||||||||
| Tangible common book value | $ | 12.24 | $ | 11.90 | $ | 11.87 | $ | 11.49 | $ | 11.04 | |||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||
| September 30, 2009 | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||
|
NONPERFORMING ASSETS |
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||||||||||||||
| Florida | $ | 72,063 | $ | 72,185 | $ | 83,789 | $ | 75,092 | $ | 71,125 | |||||||||||||||||||||||||
| Mississippi (1) | 28,470 | 32,040 | 21,829 | 18,703 | 12,727 | ||||||||||||||||||||||||||||||
| Tennessee (2) | 11,481 | 2,941 | 5,763 | 3,638 | 4,012 | ||||||||||||||||||||||||||||||
| Texas | 26,490 | 25,824 | 23,122 | 16,605 | 17,418 | ||||||||||||||||||||||||||||||
| Total nonaccrual loans | 138,504 | 132,990 | 134,503 | 114,038 | 105,282 | ||||||||||||||||||||||||||||||
| Other real estate | |||||||||||||||||||||||||||||||||||
| Florida | 34,030 | 26,387 | 19,830 | 21,265 | 18,265 | ||||||||||||||||||||||||||||||
| Mississippi (1) | 22,932 | 15,542 | 9,932 | 6,113 | 6,062 | ||||||||||||||||||||||||||||||
| Tennessee (2) | 9,809 | 10,234 | 9,051 | 8,862 | 7,924 | ||||||||||||||||||||||||||||||
| Texas | 4,918 | 3,033 | 3,322 | 2,326 | 214 | ||||||||||||||||||||||||||||||
| Total other real estate | 71,689 | 55,196 | 42,135 | 38,566 | 32,465 | ||||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 210,193 | $ | 188,186 | $ | 176,638 | $ | 152,604 | $ | 137,747 | |||||||||||||||||||||||||
|
LOANS PAST DUE OVER 90 DAYS |
|||||||||||||||||||||||||||||||||||
| Loans held for investment | $ | 6,854 | $ | 6,873 | $ | 10,004 | $ | 5,139 | $ | 3,622 | |||||||||||||||||||||||||
|
Loans HFS-Guaranteed GNMA serviced loans (no obligation to repurchase) |
$ | 36,686 | $ | 28,523 | $ | 21,128 | $ | 18,095 | $ | 20,332 | |||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
|
ALLOWANCE FOR LOAN LOSSES |
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 101,751 | $ | 100,358 | $ | 94,922 | $ | 90,888 | $ | 86,576 | $ | 94,922 | $ | 79,851 | |||||||||||||||||||||
| Provision for loan losses | 15,770 | 26,767 | 16,866 | 16,684 | 14,473 | 59,403 | 59,728 | ||||||||||||||||||||||||||||
| Charge-offs | (18,687 | ) | (27,870 | ) | (14,015 | ) | (15,039 | ) | (12,732 | ) | (60,572 | ) | (56,728 | ) | |||||||||||||||||||||
| Recoveries | 4,182 | 2,496 | 2,585 | 2,389 | 2,571 | 9,263 | 8,037 | ||||||||||||||||||||||||||||
| Net charge-offs | (14,505 | ) | (25,374 | ) | (11,430 | ) | (12,650 | ) | (10,161 | ) | (51,309 | ) | (48,691 | ) | |||||||||||||||||||||
| Ending Balance | $ | 103,016 | $ | 101,751 | $ | 100,358 | $ | 94,922 | $ | 90,888 | $ | 103,016 | $ | 90,888 | |||||||||||||||||||||
|
PROVISION FOR LOAN LOSSES |
|||||||||||||||||||||||||||||||||||
| Florida | $ | (3,295 | ) | $ | 28,915 | $ | 10,733 | $ | 6,491 | $ | 3,167 | $ | 36,353 | $ | 36,869 | ||||||||||||||||||||
| Mississippi (1) | 12,009 | (1,044 | ) | 4,386 | 5,756 | 8,476 | 15,351 | 14,950 | |||||||||||||||||||||||||||
| Tennessee (2) | 159 | (659 | ) | 1,621 | 1,461 | 27 | 1,121 | 3,246 | |||||||||||||||||||||||||||
| Texas | 6,897 | (445 | ) | 126 | 2,976 | 2,803 | 6,578 | 4,663 | |||||||||||||||||||||||||||
| Total provision for loan losses | $ | 15,770 | $ | 26,767 | $ | 16,866 | $ | 16,684 | $ | 14,473 | $ | 59,403 | $ | 59,728 | |||||||||||||||||||||
|
NET CHARGE-OFFS |
|||||||||||||||||||||||||||||||||||
| Florida | $ | 131 | $ | 21,167 | $ | 6,933 | $ | 7,160 | $ | 3,779 | $ | 28,231 | $ | 35,531 | |||||||||||||||||||||
| Mississippi (1) | 9,629 | 3,267 | 3,455 | 4,387 | 4,515 | 16,351 | 10,303 | ||||||||||||||||||||||||||||
| Tennessee (2) | 872 | 897 | 785 | 816 | 1,291 | 2,554 | 1,525 | ||||||||||||||||||||||||||||
| Texas | 3,873 | 43 | 257 | 287 | 576 | 4,173 | 1,332 | ||||||||||||||||||||||||||||
| Total net charge-offs | $ | 14,505 | $ | 25,374 | $ | 11,430 | $ | 12,650 | $ | 10,161 | $ | 51,309 | $ | 48,691 | |||||||||||||||||||||
|
CREDIT QUALITY RATIOS |
|||||||||||||||||||||||||||||||||||
| Net charge offs/average loans | 0.86 | % | 1.48 | % | 0.66 | % | 0.73 | % | 0.58 | % | 1.00 | % | 0.92 | % | |||||||||||||||||||||
| Provision for loan losses/average loans | 0.93 | % | 1.56 | % | 0.98 | % | 0.96 | % | 0.83 | % | 1.16 | % | 1.13 | % | |||||||||||||||||||||
| Nonperforming loans/total loans (incl LHFS) | 2.09 | % | 1.94 | % | 1.94 | % | 1.64 | % | 1.53 | % | |||||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) | 3.18 | % | 2.75 | % | 2.54 | % | 2.19 | % | 2.00 | % | |||||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) +ORE | 3.14 | % | 2.72 | % | 2.53 | % | 2.18 | % | 1.99 | % | |||||||||||||||||||||||||
| ALL/total loans (excl LHFS) | 1.61 | % | 1.55 | % | 1.51 | % | 1.41 | % | 1.35 | % | |||||||||||||||||||||||||
| ALL-commercial/total commercial loans | 2.08 | % | 2.01 | % | 1.95 | % | 1.79 | % | 1.76 | % | |||||||||||||||||||||||||
| ALL-consumer/total consumer and home mortgage loans | 0.76 | % | 0.73 | % | 0.73 | % | 0.72 | % | 0.64 | % | |||||||||||||||||||||||||
| ALL/nonperforming loans | 74.38 | % | 76.51 | % | 74.61 | % | 83.24 | % | 86.33 | % | |||||||||||||||||||||||||
| ALL/nonperforming loans (excl impaired loans) | 117.93 | % | 123.15 | % | 137.47 | % | 166.07 | % | 145.21 | % | |||||||||||||||||||||||||
|
CAPITAL RATIOS |
|||||||||||||||||||||||||||||||||||
| Total equity/total assets | 13.04 | % | 12.49 | % | 12.28 | % | 12.04 | % | 10.44 | % | |||||||||||||||||||||||||
| Common equity/total assets | 10.83 | % | 10.35 | % | 10.18 | % | 9.94 | % | 10.44 | % | |||||||||||||||||||||||||
| Tangible equity/tangible assets | 10.04 | % | 9.55 | % | 9.37 | % | 9.11 | % | 7.22 | % | |||||||||||||||||||||||||
| Tangible common equity/tangible assets | 7.76 | % | 7.34 | % | 7.20 | % | 6.95 | % | 7.22 | % | |||||||||||||||||||||||||
| Tangible common equity/risk-weighted assets | 10.15 | % | 9.56 | % | 9.43 | % | 9.03 | % | 8.80 | % | |||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.70 | % | 10.38 | % | 10.17 | % | 10.42 | % | 8.11 | % | |||||||||||||||||||||||||
| Tier 1 common risk-based capital ratio | 10.15 | % | 9.66 | % | 9.55 | % | 9.27 | % | 8.91 | % | |||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 14.11 | % | 13.50 | % | 13.34 | % | 13.01 | % | 9.86 | % | |||||||||||||||||||||||||
| Total risk-based capital ratio | 16.09 | % | 15.45 | % | 15.28 | % | 14.95 | % | 11.80 | % | |||||||||||||||||||||||||
| (1) - Mississippi includes Central and Southern Mississippi Regions | |||||||||||||||||||||||||||||||||||
| (2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions | |||||||||||||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
| NOTES TO CONSOLIDATED FINANCIALS | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Note 1 - Securities Available for Sale and Held to Maturity | ||||||||||||||||||||
|
The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity ($ in thousands): |
||||||||||||||||||||
| 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||
|
SECURITIES AVAILABLE FOR SALE |
||||||||||||||||||||
| U.S. Treasury and other U.S. Government agencies | $ | 25,013 | $ | 25,212 | $ | 26,019 | $ | 31,892 | $ | 7,547 | ||||||||||
| Obligations of states and political subdivisions | 151,427 | 137,799 | 125,366 | 98,653 | 39,132 | |||||||||||||||
| Mortgage-backed securities | ||||||||||||||||||||
| Pass-through securities | ||||||||||||||||||||
| Guaranteed by GNMA | 9,590 | 10,000 | 10,658 | 8,726 | 6,754 | |||||||||||||||
| Issued by FNMA and FHLMC | 7,229 | 7,193 | 79,007 | 19,186 | 15,821 | |||||||||||||||
| Other residential mortgage-backed securities | ||||||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 1,258,779 | 1,209,677 | 1,287,745 | 1,365,015 | 819,020 | |||||||||||||||
| Commercial mortgage-backed securities | ||||||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 70,359 | 92,395 | 76,183 | 11,499 | 8,226 | |||||||||||||||
| Corporate debt securities | 6,228 | 6,152 | 8,069 | 7,870 | 11,129 | |||||||||||||||
| Total securities available for sale | $ | 1,528,625 | $ | 1,488,428 | $ | 1,613,047 | $ | 1,542,841 | $ | 907,629 | ||||||||||
|
SECURITIES HELD TO MATURITY |
||||||||||||||||||||
| Obligations of states and political subdivisions | $ | 78,522 | $ | 89,331 | $ | 95,799 | $ | 102,901 | $ | 98,799 | ||||||||||
| Mortgage-backed securities | ||||||||||||||||||||
| Pass-through securities | ||||||||||||||||||||
| Guaranteed by GNMA | 7,269 | 7,298 | 5,325 | - | - | |||||||||||||||
| Other residential mortgage-backed securities | ||||||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 153,728 | 154,655 | 155,553 | 156,728 | 157,524 | |||||||||||||||
| Commercial mortgage-backed securities | ||||||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 3,084 | 3,096 | - | - | - | |||||||||||||||
| Total securities held to maturity | $ | 242,603 | $ | 254,380 | $ | 256,677 | $ | 259,629 | $ | 256,323 | ||||||||||
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of approximately 87% of the portfolio in U.S. Government agency-backed obligations and other AAA rated securities. None of the securities in the portfolio are considered to be sub-prime. Furthermore, outside of membership in the Federal Home Loan Bank of Dallas, Federal Reserve Bank and Depository Trust and Clearing Corporation, Trustmark does not hold any equity investment in government sponsored entities.
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Note 2 – Loan Composition |
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LOANS BY TYPE |
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||||
| Loans secured by real estate: | |||||||||||||||||||||||||
| Construction, land development and other land loans | $ | 872,367 | $ | 960,945 | $ | 1,000,020 | $ | 1,028,788 | $ | 1,062,319 | |||||||||||||||
| Secured by 1-4 family residential properties | 1,637,322 | 1,663,575 | 1,601,600 | 1,524,061 | 1,561,024 | ||||||||||||||||||||
| Secured by nonfarm, nonresidential properties | 1,472,147 | 1,472,212 | 1,425,937 | 1,422,658 | 1,345,624 | ||||||||||||||||||||
| Other real estate secured | 209,957 | 186,770 | 184,204 | 186,915 | 175,877 | ||||||||||||||||||||
| Commercial and industrial loans | 1,165,970 | 1,203,230 | 1,258,887 | 1,305,938 | 1,328,035 | ||||||||||||||||||||
| Consumer loans | 661,075 | 727,399 | 804,958 | 895,046 | 947,113 | ||||||||||||||||||||
| Other loans | 363,602 | 356,451 | 364,991 | 358,997 | 320,738 | ||||||||||||||||||||
| Loans | 6,382,440 | 6,570,582 | 6,640,597 | 6,722,403 | 6,740,730 | ||||||||||||||||||||
| Allowance for loan losses | (103,016 | ) | (101,751 | ) | (100,358 | ) | (94,922 | ) | (90,888 | ) | |||||||||||||||
| Net Loans | $ | 6,279,424 | $ | 6,468,831 | $ | 6,540,239 | $ | 6,627,481 | $ | 6,649,842 | |||||||||||||||
The allowance for loan losses is maintained at a level believed adequate by Management, based on estimated probable losses within the existing loan portfolio. Trustmark’s allowance for loan loss methodology is based on guidance provided in SEC Staff Accounting Bulletin No. 102, “Selected Loan Loss Allowance Methodology and Documentation Issues,” as well as on other regulatory guidance. Accordingly, Trustmark’s methodology is based on historical loss experience by type of loan and internal risk ratings, homogeneous risk pools and specific loss allocations, with adjustments considering environmental factors such as current economic events, industry and geographical conditions and portfolio performance indicators. The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors, in compliance with the Interagency Policy Statement on the Allowance for Loan and Lease Losses published by the governmental regulating agencies for financial services companies.
During the quarter ended June 30, 2009, Trustmark refined its allowance for loan loss methodology for commercial loans classifying them into thirteen separate homogenous loan types, while taking into consideration the uniqueness of our markets. In addition, Trustmark combined its quantitative historical loan loss factors and qualitative risk factors for each of its homogenous loan types. These enhancements were implemented based upon current regulatory guidance from Trustmark’s primary regulator and as a result, approximately $8.0 million in qualitative reserves were reallocated to specific reserves.
| Note 2 - Loan Composition (continued) | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
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LOAN COMPOSITION BY REGION |
Total | Florida |
Mississippi (Central and Southern Regions) |
Tennessee (Memphis, TN and Northern MS Regions) |
Texas | |||||||||||||||
| Loans secured by real estate: | ||||||||||||||||||||
| Construction, land development and other land loans | $ | 872,367 | $ | 211,974 | $ | 321,954 | $ | 61,780 | $ | 276,659 | ||||||||||
| Secured by 1-4 family residential properties | 1,637,322 | 92,088 | 1,345,249 | 167,852 | 32,133 | |||||||||||||||
| Secured by nonfarm, nonresidential properties | 1,472,147 | 182,548 | 830,698 | 215,714 | 243,187 | |||||||||||||||
| Other real estate secured | 209,957 | 12,891 | 168,679 | 9,869 | 18,518 | |||||||||||||||
| Commercial and industrial loans | 1,165,970 | 19,762 | 836,231 | 60,117 | 249,860 | |||||||||||||||
| Consumer loans | 661,075 | 2,276 | 619,645 | 29,362 | 9,792 | |||||||||||||||
| Other loans | 363,602 | 29,880 | 289,894 | 22,921 | 20,907 | |||||||||||||||
| Loans | $ | 6,382,440 | $ | 551,419 | $ | 4,412,350 | $ | 567,615 | $ | 851,056 | ||||||||||
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CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION |
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| Lots | $ | 104,966 | $ | 63,645 | $ | 24,816 | $ | 4,535 | $ | 11,970 | ||||||||||
| Development | 199,194 | 28,376 | 77,320 | |||||||||||||||||