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News Release |
Trustmark Corporation Announces 2014 Financial Results
JACKSON, Miss. – January 27, 2015 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $28.1 million in the fourth quarter of 2014, which represented diluted earnings per share of $0.42. For the full year 2014, net income totaled $123.6 million, which resulted in diluted earnings per share of $1.83, an increase of 4.6% from the prior year. Trustmark’s performance during 2014 produced a return on average tangible equity of 12.97% and a return on average assets of 1.03%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2015, to shareholders of record on March 1, 2015.
Gerard R. Host, President and CEO, stated, “2014 was a year of significant accomplishments for Trustmark. We continued to build upon and expand customer relationships, as reflected by growth in our diversified banking, wealth management and insurance businesses. Over the course of the year, total revenue expanded to $578.5 million, the highest level in Trustmark’s 125-year history. Credit quality continued to improve and remained an important contributor to our financial success. We continued investing in technology to increase revenue, improve efficiency, and ensure compliance with regulatory mandates. We have the necessary infrastructure in place to support a significantly larger organization and are well-positioned to meet the financial needs of our customers and create value for our shareholders.”
Balance Sheet Management
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Loans held for investment increased $650.6 million, or 11.2%, in 2014 |
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Average noninterest-bearing deposits represented 29.0% of average total deposits in the fourth quarter |
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Capital base provides opportunity to support additional growth |
Loans held for investment totaled $6.4 billion at December 31, 2014, an increase of $115.8 million, or 7.2% annualized, from the prior quarter and $650.6 million, or 11.2%, from one year earlier. The sequential quarter increase reflected diversified loan growth across Trustmark’s five-state franchise. Construction, land development and other land loans increased $39.1 million during the fourth quarter driven by commercial and residential construction in Trustmark’s Texas, Alabama and Tennessee markets, which was offset in part by reductions in Mississippi. Other loans, which include lending to states and municipalities, nonprofits and real estate investment trusts, increased $38.8 million during the fourth quarter as a result of growth in Trustmark’s Mississippi, Texas and Alabama markets. Commercial and industrial loans increased $23.6 million during the quarter principally due to growth in the Mississippi and Alabama markets. Other real estate secured loans, which include multifamily projects, increased $14.0 million during the quarter as growth in Trustmark’s Mississippi and Alabama markets was offset in part by reductions in Texas. The single-family mortgage portfolio increased $8.9 million during the fourth quarter, reflecting growth in Trustmark’s Alabama and Mississippi markets. Loans secured by nonfarm and nonresidential real estate decreased $7.7 million during the quarter as growth in owner-occupied real estate was more than offset by declines in income producing loans.
Acquired loans totaled $549.4 million at December 31, 2014, down $42.7 million from the prior quarter. Collectively, loans held for investment and acquired loans totaled $7.0 billion at December 31, 2014, up $73.1 million, or 4.2% annualized, from the prior quarter.
Average earning assets during the fourth quarter increased $58.2 million relative to the prior quarter principally due to increased balances of loans held for investment. Average deposits in the fourth quarter declined $163.3 million, reflecting a $150.9 million decrease in average interest-bearing deposits and $12.4 million decline in average noninterest-bearing deposits.