JACKSON, Miss.--(BUSINESS WIRE)--Trustmark Corporation (NASDAQ:TRMK) reported net income available to common shareholders of $24.0 million in the first quarter of 2011, which represented basic and diluted earnings per common share of $0.38 and $0.37, respectively. Trustmark’s performance during the quarter produced a return on average tangible common equity of 11.65% and a return on average assets of 1.02%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share. The dividend is payable June 15, 2011, to shareholders of record on June 1, 2011.
Printer friendly version of earnings release with consolidated financial statements and notes: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6696360&lang=en
Gerard R. Host, President and CEO, stated, “Our first quarter results continued to reflect the strength and diversity of the Trustmark franchise. Growth in earning assets in Trustmark’s traditional banking business, coupled with lower funding costs, produced stable net interest income and a 4.30% net interest margin. Our fee-based wealth management and mortgage banking businesses also continued to perform well. Most significant, however, was the improvement in credit quality, which was reflected by reductions in nonperforming loans and net charge-offs.
“Our solid earnings, strong capital base, and dedicated associates have well-positioned Trustmark to meet the needs of our customers and take advantage of opportunities in the marketplace to build shareholder value. On April 15, we announced the acquisition of Heritage Banking Group, a 90-year old financial institution headquartered in Carthage, Mississippi, from the Federal Deposit Insurance Corporation. At year-end 2010, Heritage had approximately $224 million in assets and $196 million in deposits. The acquisition is expected to generate an estimated one-time $4 million to $6 million after-tax gain in the second quarter of 2011 and will be immediately accretive to Trustmark’s earnings per share and tangible book value per share. The determination of the actual gain will be completed in 60 to 90 days as we finalize the fair value of the acquired assets. We are pleased to welcome our new customers to Trustmark and look forward to additional opportunities to strengthen the value of our franchise.”
Credit Quality
- Nonperforming loans declined 11.3% while nonperforming assets fell 5.9%
- Net charge-offs declined 40.0% to represent 0.51% of average loans
- Allowance for loan losses represented 215.4% of nonperforming loans, excluding impaired loans
During the first quarter, nonperforming loans decreased $16.1 million, or 11.3%, relative to the prior quarter to total $126.8 million, or 2.09% of total loans, marking four consecutive quarters of improvement. Foreclosed real estate increased $2.5 million from the prior quarter to total $89.2 million. Collectively, nonperforming assets decreased $13.6 million, or 5.9%, to total $216.0 million at March 31, 2011.
Net charge-offs during the first quarter totaled $7.6 million, a decline of 40.0% relative to the prior quarter, to represent 0.51% of average loans. The provision for loan losses totaled $7.5 million, a decrease of 36.1% from the prior quarter. During the first quarter, Trustmark experienced a steady and continued reduction in criticized loans, including a $12.8 million decline in its Florida market, relative to the prior quarter.
Allocation of Trustmark’s $93.4 million allowance for loan losses represented 1.98% of commercial loans and 0.76% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.57% as of March 31, 2011. The allowance for loan losses represented 215.4% of nonperforming loans, excluding impaired loans.
Trustmark continued to make significant progress in the resolution of its construction and land development portfolio in Florida. During the last 12 months, this portfolio was reduced by 33.3% to total $122.4 million. At March 31, 2011, the associated reserve for loan losses on this portfolio totaled $14.5 million, or 11.88%. Trustmark remains focused on managing credit risks resulting from current economic and real estate market conditions.
Capital Strength
- Tangible common equity to tangible assets expanded to 9.27%
- Total risk-based capital increased to 16.25%
Trustmark’s consistent profitability and sound balance sheet management continued to be reflected in its solid capital position. Tangible common equity totaled $853.6 million and represented 9.27% of tangible assets at March 31, 2011. Total risk-based capital increased to 16.25%, significantly exceeding the 10% regulatory requirement to be classified as “well-capitalized.” Trustmark’s strong capital base provides strategic flexibility to support organic growth as well as acquisition opportunities that strengthen the value of the franchise.
Balance Sheet Management
- Average earning assets increased $118.9 million, or 1.4% from prior quarter
- Net interest income (FTE) totaled $90.0 million, resulting in a 4.30% net interest margin
- Cost of interest bearing deposits improves to 0.70%
Trustmark’s efforts to reduce exposure to construction and land development lending as well as the decision to discontinue indirect auto financing continued to be reflected in loan totals. At March 31, 2011, total loans held for investment were $6.0 billion, a decline of $96.2 million from the prior quarter. During this period, construction and land development loans declined $30.4 million while the indirect auto portfolio fell $37.8 million. While economic conditions continued to constrain demand for credit, Trustmark experienced modest growth in its commercial and industrial loan and single family mortgage portfolios.
Average earning assets during the first quarter totaled $8.5 billion, an increase of $118.9 million from the prior quarter. Growth in average investment securities more than offset a decline in average loans during the first quarter. Average deposits during the first quarter increased $203.0 million to $7.2 billion.
Noninterest Income
- Noninterest income totaled $36.4 million and represented 28.8% of total revenue
- Wealth Management income represented the best quarterly performance in two years
Service charges on deposit accounts during the first quarter totaled $11.9 million, a decline of $1.6 million from the prior quarter principally due to seasonality. When compared to figures one year earlier, services charges were down $1.1 million, with approximately $942 thousand of the decline attributable to a reduction in NSF fees resulting from the impact of regulatory changes. Bank cards and other fees totaled $6.5 million during the first quarter, in line with the prior quarter and up $595 thousand from figures one year earlier as a result of increased debit card usage.
Trustmark continued to achieve solid financial performance from its diverse financial services businesses. Wealth management income totaled $6.0 million during the first quarter of 2011, the best quarterly performance in more than two years. Results reflected improved market conditions as well as growth in retirement planning services and brokerage activities. In addition, insurance revenue totaled $6.5 million, reflecting a seasonal increase relative to the prior quarter. Mortgage banking income totaled $4.7 million during the first quarter, reflecting stable mortgage servicing income, solid secondary marketing gains and successful hedging initiatives.
Noninterest Expense
- Noninterest expense remained well-controlled
- Foreclosure expense declined to $3.2 million
During the first quarter of 2011, noninterest expense totaled $80.0 million, a decrease of $419 thousand from the prior quarter. Salary and employee benefits expense totaled $44.0 million during the first quarter, a reduction of $376 thousand from the prior quarter. Other expense declined $654 thousand during the quarter principally due to reductions in operational losses and other expenses. Equipment expense increased $915 thousand during the quarter due in part to enhanced disaster recovery capabilities as well as nonrecurring implementation costs related to enhancements to Trustmark’s data communications network.
ADDITIONAL INFORMATION
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 27, 2011 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)317-6789, passcode 446676, 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 Thursday, May 5, 2011, in archived format at the same web address or by calling (877)344-7529, passcode 446676.
Trustmark is a financial services company providing banking and financial solutions through over 150 offices 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 affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, changes in our compensation and benefit plans, greater than expected costs or difficulties related to the integration of new products and lines of business, natural disasters, environmental disasters, acts of war or terrorism and other risks described in our filings with the Securities and Exchange Commission.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake 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 | |||||||||||||||||||||||||||||||
| March 31, 2011 | |||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||
| Linked Quarter | Year over Year | ||||||||||||||||||||||||||||||
|
QUARTERLY AVERAGE BALANCES |
3/31/2011 | 12/31/2010 | 3/31/2010 | $ | Change | % Change | $ | Change | % Change | ||||||||||||||||||||||
| Securities AFS-taxable | $ | 2,050,502 | $ | 1,817,996 | $ | 1,514,029 | $ | 232,506 | 12.8 | % | $ | 536,473 | 35.4 | % | |||||||||||||||||
| Securities AFS-nontaxable | 144,921 | 140,139 | 105,067 | 4,782 | 3.4 | % | 39,854 | 37.9 | % | ||||||||||||||||||||||
| Securities HTM-taxable | 97,710 | 121,278 | 179,076 | (23,568 | ) | -19.4 | % | (81,366 | ) | -45.4 | % | ||||||||||||||||||||
| Securities HTM-nontaxable | 27,099 | 33,138 | 46,852 | (6,039 | ) | -18.2 | % | (19,753 | ) | -42.2 | % | ||||||||||||||||||||
| Total securities | 2,320,232 | 2,112,551 | 1,845,024 | 207,681 | 9.8 | % | 475,208 | 25.8 | % | ||||||||||||||||||||||
| Loans (including loans held for sale) | 6,107,025 | 6,199,875 | 6,412,671 | (92,850 | ) | -1.5 | % | (305,646 | ) | -4.8 | % | ||||||||||||||||||||
| Fed funds sold and rev repos | 8,359 | 10,766 | 10,438 | (2,407 | ) | -22.4 | % | (2,079 | ) | -19.9 | % | ||||||||||||||||||||
| Other earning assets | 47,851 | 41,359 | 46,199 | 6,492 | 15.7 | % | 1,652 | 3.6 | % | ||||||||||||||||||||||
| Total earning assets | 8,483,467 | 8,364,551 | 8,314,332 | 118,916 | 1.4 | % | 169,135 | 2.0 | % | ||||||||||||||||||||||
| Allowance for loan losses | (96,065 | ) | (96,559 | ) | (106,200 | ) | 494 | -0.5 | % | 10,135 | -9.5 | % | |||||||||||||||||||
| Cash and due from banks | 222,380 | 207,874 | 216,305 | 14,506 | 7.0 | % | 6,075 | 2.8 | % | ||||||||||||||||||||||
| Other assets | 899,524 | 888,666 | 910,401 | 10,858 | 1.2 | % | (10,877 | ) | -1.2 | % | |||||||||||||||||||||
| Total assets | $ | 9,509,306 | $ | 9,364,532 | $ | 9,334,838 | $ | 144,774 | 1.5 | % | $ | 174,468 | 1.9 | % | |||||||||||||||||
| Interest-bearing demand deposits | $ | 1,465,390 | $ | 1,347,252 | $ | 1,270,827 | $ | 118,138 | 8.8 | % | $ | 194,563 | 15.3 | % | |||||||||||||||||
| Savings deposits | 2,045,874 | 1,794,352 | 1,953,711 | 251,522 | 14.0 | % | 92,163 | 4.7 | % | ||||||||||||||||||||||
| Time deposits less than $100,000 | 1,210,219 | 1,235,529 | 1,356,469 | (25,310 | ) | -2.0 | % | (146,250 | ) | -10.8 | % | ||||||||||||||||||||
| Time deposits of $100,000 or more | 876,975 | 932,744 | 1,014,027 | (55,769 | ) | -6.0 | % | (137,052 | ) | -13.5 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 5,598,458 | 5,309,877 | 5,595,034 | 288,581 | 5.4 | % | 3,424 | 0.1 | % | ||||||||||||||||||||||
| Fed funds purchased and repos | 647,881 | 701,978 | 600,826 | (54,097 | ) | -7.7 | % | 47,055 | 7.8 | % | |||||||||||||||||||||
| Short-term borrowings | 254,451 | 254,442 | 199,550 | 9 | 0.0 | % | 54,901 | 27.5 | % | ||||||||||||||||||||||
| Long-term FHLB advances | - | - | 75,000 | - | n/m | (75,000 | ) | -100.0 | % | ||||||||||||||||||||||
| Subordinated notes | 49,809 | 49,801 | 49,777 | 8 | 0.0 | % | 32 | 0.1 | % | ||||||||||||||||||||||
| Junior subordinated debt securities | 61,856 | 64,546 | 70,104 | (2,690 | ) | -4.2 | % | (8,248 | ) | -11.8 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 6,612,455 | 6,380,644 | 6,590,291 | 231,811 | 3.6 | % | 22,164 | 0.3 | % | ||||||||||||||||||||||
| Noninterest-bearing deposits | 1,620,554 | 1,706,089 | 1,535,209 | (85,535 | ) | -5.0 | % | 85,345 | 5.6 | % | |||||||||||||||||||||
| Other liabilities | 116,399 | 117,741 | 85,982 | (1,342 | ) | -1.1 | % | 30,417 | 35.4 | % | |||||||||||||||||||||
| Total liabilities | 8,349,408 | 8,204,474 | 8,211,482 | 144,934 | 1.8 | % | 137,926 | 1.7 | % | ||||||||||||||||||||||
| Shareholders' equity | 1,159,898 | 1,160,058 | 1,123,356 | (160 | ) | 0.0 | % | 36,542 | 3.3 | % | |||||||||||||||||||||
| Total liabilities and equity | $ | 9,509,306 | $ | 9,364,532 | $ | 9,334,838 | $ | 144,774 | 1.5 | % | $ | 174,468 | 1.9 | % | |||||||||||||||||
| Linked Quarter | Year over Year | ||||||||||||||||||||||||||||||
|
PERIOD END BALANCES |
3/31/2011 | 12/31/2010 | 3/31/2010 | $ | Change | % Change | $ | Change | % Change | ||||||||||||||||||||||
| Cash and due from banks | $ | 193,087 | $ | 161,544 | $ | 191,973 | $ | 31,543 | 19.5 | % | $ | 1,114 | 0.6 | % | |||||||||||||||||
| Fed funds sold and rev repos | 1,726 | 11,773 | 11,599 | (10,047 | ) | -85.3 | % | (9,873 | ) | -85.1 | % | ||||||||||||||||||||
| Securities available for sale | 2,309,704 | 2,177,249 | 1,706,565 | 132,455 | 6.1 | % | 603,139 | 35.3 | % | ||||||||||||||||||||||
| Securities held to maturity | 110,054 | 140,847 | 215,888 | (30,793 | ) | -21.9 | % | (105,834 | ) | -49.0 | % | ||||||||||||||||||||
| Loans held for sale | 112,981 | 153,044 | 176,682 | (40,063 | ) | -26.2 | % | (63,701 | ) | -36.1 | % | ||||||||||||||||||||
| Loans | 5,964,089 | 6,060,242 | 6,170,878 | (96,153 | ) | -1.6 | % | (206,789 | ) | -3.4 | % | ||||||||||||||||||||
| Allowance for loan losses | (93,398 | ) | (93,510 | ) | (101,643 | ) | 112 | -0.1 | % | 8,245 | -8.1 | % | |||||||||||||||||||
| Net Loans | 5,870,691 | 5,966,732 | 6,069,235 | (96,041 | ) | -1.6 | % | (198,544 | ) | -3.3 | % | ||||||||||||||||||||
| Premises and equipment, net | 141,524 | 142,289 | 145,113 | (765 | ) | -0.5 | % | (3,589 | ) | -2.5 | % | ||||||||||||||||||||
| Mortgage servicing rights | 53,598 | 51,151 | 50,037 | 2,447 | 4.8 | % | 3,561 | 7.1 | % | ||||||||||||||||||||||
| Goodwill | 291,104 | 291,104 | 291,104 | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||||||
| Identifiable intangible assets | 15,532 | 16,306 | 18,944 | (774 | ) | -4.7 | % | (3,412 | ) | -18.0 | % | ||||||||||||||||||||
| Other real estate | 89,198 | 86,704 | 91,176 | 2,494 | 2.9 | % | (1,978 | ) | -2.2 | % | |||||||||||||||||||||
| Other assets | 325,263 | 355,159 | 324,899 | (29,896 | ) | -8.4 | % | 364 | 0.1 | % | |||||||||||||||||||||
| Total assets | $ | 9,514,462 | $ | 9,553,902 | $ | 9,293,215 | $ | (39,440 | ) | -0.4 | % | $ | 221,247 | 2.4 | % | ||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||
| Noninterest-bearing | $ | 1,668,104 | $ | 1,636,625 | $ | 1,511,080 | $ | 31,479 | 1.9 | % | $ | 157,024 | 10.4 | % | |||||||||||||||||
| Interest-bearing | 5,758,170 | 5,407,942 | 5,635,973 | 350,228 | 6.5 | % | 122,197 | 2.2 | % | ||||||||||||||||||||||
| Total deposits | 7,426,274 | 7,044,567 | 7,147,053 | 381,707 | 5.4 | % | 279,221 | 3.9 | % | ||||||||||||||||||||||
| Fed funds purchased and repos | 550,919 | 700,138 | 571,711 | (149,219 | ) | -21.3 | % | (20,792 | ) | -3.6 | % | ||||||||||||||||||||
| Short-term borrowings | 154,585 | 425,343 | 132,784 | (270,758 | ) | -63.7 | % | 21,801 | 16.4 | % | |||||||||||||||||||||
| Long-term FHLB advances | - | - | 75,000 | - | n/m | (75,000 | ) | n/m | |||||||||||||||||||||||
| Subordinated notes | 49,814 | 49,806 | 49,782 | 8 | 0.0 | % | 32 | 0.1 | % | ||||||||||||||||||||||
| Junior subordinated debt securities | 61,856 | 61,856 | 70,104 | - | 0.0 | % | (8,248 | ) | -11.8 | % | |||||||||||||||||||||
| Other liabilities | 110,785 | 122,708 | 118,252 | (11,923 | ) | -9.7 | % | (7,467 | ) | -6.3 | % | ||||||||||||||||||||
| Total liabilities | 8,354,233 | 8,404,418 | 8,164,686 | (50,185 | ) | -0.6 | % | 189,547 | 2.3 | % | |||||||||||||||||||||
| Common stock | 13,333 | 13,318 | 13,302 | 15 | 0.1 | % | 31 | 0.2 | % | ||||||||||||||||||||||
| Capital surplus | 260,297 | 256,675 | 250,365 | 3,622 | 1.4 | % | 9,932 | 4.0 | % | ||||||||||||||||||||||
| Retained earnings | 898,222 | 890,917 | 860,398 | 7,305 | 0.8 | % | 37,824 | 4.4 | % | ||||||||||||||||||||||
| Accum other comprehensive | |||||||||||||||||||||||||||||||
| (loss) income, net of tax | (11,623 | ) | (11,426 | ) | 4,464 | (197 | ) | 1.7 | % | (16,087 | ) | n/m | |||||||||||||||||||
| Total shareholders' equity | 1,160,229 | 1,149,484 | 1,128,529 | 10,745 | 0.9 | % | 31,700 | 2.8 | % | ||||||||||||||||||||||
| Total liabilities and equity | $ | 9,514,462 | $ | 9,553,902 | $ | 9,293,215 | $ | (39,440 | ) | -0.4 | % | $ | 221,247 | 2.4 | % | ||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||
| March 31, 2011 | |||||||||||||||||||||||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||||||||||||||||||||||||
|
INCOME STATEMENTS |
3/31/2011 | 12/31/2010 | 3/31/2010 | $ | Change | % Change | $ | Change | % Change | ||||||||||||||||||||||||||||||||
| Interest and fees on loans-FTE | $ | 79,116 | $ | 82,664 | $ | 84,127 | $ | (3,548 | ) | -4.3 | % | $ | (5,011 | ) | -6.0 | % | |||||||||||||||||||||||||
| Interest on securities-taxable | 19,992 | 19,076 | 19,735 | 916 | 4.8 | % | 257 | 1.3 | % | ||||||||||||||||||||||||||||||||
| Interest on securities-tax exempt-FTE | 2,128 | 2,169 | 2,180 | (41 | ) | -1.9 | % | (52 | ) | -2.4 | % | ||||||||||||||||||||||||||||||
| Interest on fed funds sold and rev repos | 8 | 12 | 8 | (4 | ) | -33.3 | % | - | 0.0 | % | |||||||||||||||||||||||||||||||
| Other interest income | 332 | 328 | 383 | 4 | 1.2 | % | (51 | ) | -13.3 | % | |||||||||||||||||||||||||||||||
| Total interest income-FTE | 101,576 | 104,249 | 106,433 | (2,673 | ) | -2.6 | % | (4,857 | ) | -4.6 | % | ||||||||||||||||||||||||||||||
| Interest on deposits | 9,719 | 10,359 | 13,904 | (640 | ) | -6.2 | % | (4,185 | ) | -30.1 | % | ||||||||||||||||||||||||||||||
| Interest on fed funds pch and repos | 338 | 403 | 226 | (65 | ) | -16.1 | % | 112 | 49.6 | % | |||||||||||||||||||||||||||||||
| Other interest expense | 1,553 | 1,535 | 1,592 | 18 | 1.2 | % | (39 | ) | -2.4 | % | |||||||||||||||||||||||||||||||
| Total interest expense | 11,610 | 12,297 | 15,722 | (687 | ) | -5.6 | % | (4,112 | ) | -26.2 | % | ||||||||||||||||||||||||||||||
| Net interest income-FTE | 89,966 | 91,952 | 90,711 | (1,986 | ) | -2.2 | % | (745 | ) | -0.8 | % | ||||||||||||||||||||||||||||||
| Provision for loan losses | 7,537 | 11,794 | 15,095 | (4,257 | ) | -36.1 | % | (7,558 | ) | -50.1 | % | ||||||||||||||||||||||||||||||
| Net interest income after provision-FTE | 82,429 | 80,158 | 75,616 | 2,271 | 2.8 | % | 6,813 | 9.0 | % | ||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 11,907 | 13,493 | 12,977 | (1,586 | ) | -11.8 | % | (1,070 | ) | -8.2 | % | ||||||||||||||||||||||||||||||
| Insurance commissions | 6,512 | 6,224 | 6,837 | 288 | 4.6 | % | (325 | ) | -4.8 | % | |||||||||||||||||||||||||||||||
| Wealth management | 5,986 | 5,760 | 5,355 | 226 | 3.9 | % | 631 | 11.8 | % | ||||||||||||||||||||||||||||||||
| Bank card and other fees | 6,475 | 6,482 | 5,880 | (7 | ) | -0.1 | % | 595 | 10.1 | % | |||||||||||||||||||||||||||||||
| Mortgage banking, net | 4,722 | 4,502 | 6,072 | 220 | 4.9 | % | (1,350 | ) | -22.2 | % | |||||||||||||||||||||||||||||||
| Other, net | 762 | 2,070 | 879 | (1,308 | ) | -63.2 | % | (117 | ) | -13.3 | % | ||||||||||||||||||||||||||||||
| Nonint inc-excl sec gains, net | 36,364 | 38,531 | 38,000 | (2,167 | ) | -5.6 | % | (1,636 | ) | -4.3 | % | ||||||||||||||||||||||||||||||
| Security gains, net | 7 | 101 | 369 | (94 | ) | -93.1 | % | (362 | ) | -98.1 | % | ||||||||||||||||||||||||||||||
| Total noninterest income | 36,371 | 38,632 | 38,369 | (2,261 | ) | -5.9 | % | (1,998 | ) | -5.2 | % | ||||||||||||||||||||||||||||||
| Salaries and employee benefits | 44,036 | 44,412 | 42,854 | (376 | ) | -0.8 | % | 1,182 | 2.8 | % | |||||||||||||||||||||||||||||||
| Services and fees | 10,270 | 10,462 | 10,255 | (192 | ) | -1.8 | % | 15 | 0.1 | % | |||||||||||||||||||||||||||||||
| Net occupancy-premises | 5,073 | 4,896 | 5,034 | 177 | 3.6 | % | 39 | 0.8 | % | ||||||||||||||||||||||||||||||||
| Equipment expense | 5,144 | 4,229 | 4,303 | 915 | 21.6 | % | 841 | 19.5 | % | ||||||||||||||||||||||||||||||||
| FDIC assessment expense | 2,750 | 2,942 | 3,147 | (192 | ) | -6.5 | % | (397 | ) | -12.6 | % | ||||||||||||||||||||||||||||||
| ORE/Foreclosure expense | 3,213 | 3,310 | 3,061 | (97 | ) | -2.9 | % | 152 | 5.0 | % | |||||||||||||||||||||||||||||||
| Other expense | 9,532 | 10,186 | 7,707 | (654 | ) | -6.4 | % | 1,825 | 23.7 | % | |||||||||||||||||||||||||||||||
| Total noninterest expense | 80,018 | 80,437 | 76,361 | (419 | ) | -0.5 | % | 3,657 | 4.8 | % | |||||||||||||||||||||||||||||||
| Income before income taxes and tax eq adj | 38,782 | 38,353 | 37,624 | 429 | 1.1 | % | 1,158 | 3.1 | % | ||||||||||||||||||||||||||||||||
| Tax equivalent adjustment | 3,591 | 3,400 | 3,293 | 191 | 5.6 | % | 298 | 9.0 | % | ||||||||||||||||||||||||||||||||
| Income before income taxes | 35,191 | 34,953 | 34,331 | 238 | 0.7 | % | 860 | 2.5 | % | ||||||||||||||||||||||||||||||||
| Income taxes | 11,178 | 9,793 | 10,876 | 1,385 | 14.1 | % | 302 | 2.8 | % | ||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 24,013 | $ | 25,160 | $ | 23,455 | $ | (1,147 | ) | -4.6 | % | $ | 558 | 2.4 | % | ||||||||||||||||||||||||||
| Per common share data | |||||||||||||||||||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.38 | $ | 0.39 | $ | 0.37 | $ | (0.01 | ) | -2.6 | % | $ | 0.01 | 2.7 | % | ||||||||||||||||||||||||||
| Earnings per share - diluted | $ | 0.37 | $ | 0.39 | $ | 0.37 | $ | (0.02 | ) | -5.1 | % | $ | - | 0.0 | % | ||||||||||||||||||||||||||
| Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | - | 0.0 | % | $ | - | 0.0 | % | |||||||||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||||||
| Basic | 63,950,461 | 63,892,362 | 63,743,302 | ||||||||||||||||||||||||||||||||||||||
| Diluted | 64,181,752 | 64,105,064 | 63,933,333 | ||||||||||||||||||||||||||||||||||||||
| Period end common shares outstanding | 63,987,064 | 63,917,591 | 63,844,500 | ||||||||||||||||||||||||||||||||||||||
|
OTHER FINANCIAL DATA |
|||||||||||||||||||||||||||||||||||||||||
| Return on common equity | 8.40 | % | 8.60 | % | 8.47 | % | |||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 11.65 | % | 11.96 | % | 11.98 | % | |||||||||||||||||||||||||||||||||||
| Return on equity | 8.40 | % | 8.60 | % | 8.47 | % | |||||||||||||||||||||||||||||||||||
| Return on assets | 1.02 | % | 1.07 | % | 1.02 | % | |||||||||||||||||||||||||||||||||||
| Interest margin - Yield - FTE | 4.86 | % | 4.94 | % | 5.19 | % | |||||||||||||||||||||||||||||||||||
| Interest margin - Cost | 0.56 | % | 0.58 | % | 0.77 | % | |||||||||||||||||||||||||||||||||||
| Net interest margin - FTE | 4.30 | % | 4.36 | % | 4.42 | % | |||||||||||||||||||||||||||||||||||
| Efficiency ratio | 63.34 | % | 61.65 | % | 59.33 | % | |||||||||||||||||||||||||||||||||||
| Full-time equivalent employees | 2,489 | 2,490 | 2,506 | ||||||||||||||||||||||||||||||||||||||
|
COMMON STOCK PERFORMANCE |
|||||||||||||||||||||||||||||||||||||||||
| Market value-Close | $ | 23.42 | $ | 24.84 | $ | 24.43 | |||||||||||||||||||||||||||||||||||
| Common book value | $ | 18.13 | $ | 17.98 | $ | 17.68 | |||||||||||||||||||||||||||||||||||
| Tangible common book value | $ | 13.34 | $ | 13.17 | $ | 12.82 | |||||||||||||||||||||||||||||||||||
| n/m - percentage changes greater than +/- 100% are considered not meaningful | |||||||||||||||||||||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||||||||
| March 31, 2011 | |||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||||||||||||||||||||||||
|
NONPERFORMING ASSETS |
3/31/2011 | 12/31/2010 | 3/31/2010 | $ | Change | % Change | $ | Change | % Change | ||||||||||||||||||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||||||||||||||||||||
| Florida | $ | 44,548 | $ | 53,773 | $ | 79,687 | $ | (9,225 | ) | -17.2 | % | $ | (35,139 | ) | -44.1 | % | |||||||||||||||||||||||||
| Mississippi (1) | 40,226 | 39,803 | 41,795 | 423 | 1.1 | % | (1,569 | ) | -3.8 | % | |||||||||||||||||||||||||||||||
| Tennessee (2) | 13,886 | 14,703 | 12,673 | (817 | ) | -5.6 | % | 1,213 | 9.6 | % | |||||||||||||||||||||||||||||||
| Texas | 28,130 | 34,644 | 31,354 | (6,514 | ) | -18.8 | % | (3,224 | ) | -10.3 | % | ||||||||||||||||||||||||||||||
| Total nonaccrual loans | 126,790 | 142,923 | 165,509 | (16,133 | ) | -11.3 | % | (38,719 | ) | -23.4 | % | ||||||||||||||||||||||||||||||
| Other real estate | |||||||||||||||||||||||||||||||||||||||||
| Florida | 31,339 | 32,370 | 40,145 | (1,031 | ) | -3.2 | % | (8,806 | ) | -21.9 | % | ||||||||||||||||||||||||||||||
| Mississippi (1) | 22,084 | 24,181 | 23,082 | (2,097 | ) | -8.7 | % | (998 | ) | -4.3 | % | ||||||||||||||||||||||||||||||
| Tennessee (2) | 16,920 | 16,407 | 9,769 | 513 | 3.1 | % | 7,151 | 73.2 | % | ||||||||||||||||||||||||||||||||
| Texas | 18,855 | 13,746 | 18,180 | 5,109 | 37.2 | % | 675 | 3.7 | % | ||||||||||||||||||||||||||||||||
| Total other real estate | 89,198 | 86,704 | 91,176 | 2,494 | 2.9 | % | (1,978 | ) | -2.2 | % | |||||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 215,988 | $ | 229,627 | $ | 256,685 | $ | (13,639 | ) | -5.9 | % | $ | (40,697 | ) | -15.9 | % | |||||||||||||||||||||||||
|
LOANS PAST DUE OVER 90 DAYS |
|||||||||||||||||||||||||||||||||||||||||
| Loans held for investment | $ | 5,010 | $ | 3,608 | $ | 8,411 | $ | 1,402 | 38.9 | % | $ | (3,401 | ) | -40.4 | % | ||||||||||||||||||||||||||
| Loans HFS-Guaranteed GNMA serviced loans | |||||||||||||||||||||||||||||||||||||||||
| (no obligation to repurchase) | $ | 19,808 | $ | 15,777 | $ | 48,571 | $ | 4,031 | 25.5 | % | $ | (28,763 | ) | -59.2 | % | ||||||||||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||||||||||||||||||||||||
|
ALLOWANCE FOR LOAN LOSSES |
3/31/2011 | 12/31/2010 | 3/31/2010 | $ | Change | % Change | $ | Change | % Change | ||||||||||||||||||||||||||||||||
| Beginning Balance | $ | 93,510 | $ | 94,458 | $ | 103,662 | $ | (948 | ) | -1.0 | % | $ | (10,152 | ) | -9.8 | % | |||||||||||||||||||||||||
| Provision for loan losses | 7,537 | 11,794 | 15,095 | (4,257 | ) | -36.1 | % | (7,558 | ) | -50.1 | % | ||||||||||||||||||||||||||||||
| Charge-offs | (11,132 | ) | (15,883 | ) | (19,775 | ) | 4,751 | -29.9 | % | 8,643 | -43.7 | % | |||||||||||||||||||||||||||||
| Recoveries | 3,483 | 3,141 | 2,661 | 342 | 10.9 | % | 822 | 30.9 | % | ||||||||||||||||||||||||||||||||
| Net charge-offs | (7,649 | ) | (12,742 | ) | (17,114 | ) | 5,093 | -40.0 | % | 9,465 | -55.3 | % | |||||||||||||||||||||||||||||
| Ending Balance | $ | 93,398 | $ | 93,510 | $ | 101,643 | $ | (112 | ) | -0.1 | % | $ | (8,245 | ) | -8.1 | % | |||||||||||||||||||||||||
|
PROVISION FOR LOAN LOSSES |
` | ||||||||||||||||||||||||||||||||||||||||
| Florida | $ | 3,024 | $ | 7,473 | $ | 5,501 | $ | (4,449 | ) | -59.5 | % | $ | (2,477 | ) | -45.0 | % | |||||||||||||||||||||||||
| Mississippi (1) | 1,071 | 2,673 | 3,748 | (1,602 | ) | -59.9 | % | (2,677 | ) | -71.4 | % | ||||||||||||||||||||||||||||||
| Tennessee (2) | 1,619 | 910 | 1,314 | 709 | 77.9 | % | 305 | 23.2 | % | ||||||||||||||||||||||||||||||||
| Texas | 1,823 | 738 | 4,532 | 1,085 | n/m | (2,709 | ) | -59.8 | % | ||||||||||||||||||||||||||||||||
| Total provision for loan losses | $ | 7,537 | $ | 11,794 | $ | 15,095 | $ | (4,257 | ) | -36.1 | % | $ | (7,558 | ) | -50.1 | % | |||||||||||||||||||||||||
|
NET CHARGE-OFFS |
|||||||||||||||||||||||||||||||||||||||||
| Florida | $ | 5,478 | $ | 4,830 | $ | 8,989 | $ | 648 | 13.4 | % | $ | (3,511 | ) | -39.1 | % | ||||||||||||||||||||||||||
| Mississippi (1) | 410 | 4,422 | 6,777 | (4,012 | ) | -90.7 | % | (6,367 | ) | -94.0 | % | ||||||||||||||||||||||||||||||
| Tennessee (2) | 979 | 1,646 | 426 | (667 | ) | -40.5 | % | 553 | n/m | ||||||||||||||||||||||||||||||||
| Texas | 782 | 1,844 | 922 | (1,062 | ) | -57.6 | % | (140 | ) | -15.2 | % | ||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 7,649 | $ | 12,742 | $ | 17,114 | $ | (5,093 | ) | -40.0 | % | $ | (9,465 | ) | -55.3 | % | |||||||||||||||||||||||||
|
CREDIT QUALITY RATIOS |
|||||||||||||||||||||||||||||||||||||||||
| Net charge offs/average loans | 0.51 | % | 0.82 | % | 1.08 | % | |||||||||||||||||||||||||||||||||||
| Provision for loan losses/average loans | 0.50 | % | 0.75 | % | 0.95 | % | |||||||||||||||||||||||||||||||||||
| Nonperforming loans/total loans (incl LHFS) | 2.09 | % | 2.30 | % | 2.61 | % | |||||||||||||||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) | 3.55 | % | 3.70 | % | 4.04 | % | |||||||||||||||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) +ORE | 3.50 | % | 3.64 | % | 3.99 | % | |||||||||||||||||||||||||||||||||||
| ALL/total loans (excl LHFS) | 1.57 | % | 1.54 | % | 1.65 | % | |||||||||||||||||||||||||||||||||||
| ALL-commercial/total commercial loans | 1.98 | % | 1.94 | % | 2.10 | % | |||||||||||||||||||||||||||||||||||
| ALL-consumer/total consumer and home mortgage loans | 0.76 | % | 0.78 | % | 0.80 | % | |||||||||||||||||||||||||||||||||||
| ALL/nonperforming loans | 73.66 | % | 65.43 | % | 61.41 | % | |||||||||||||||||||||||||||||||||||
| ALL/nonperforming loans - | |||||||||||||||||||||||||||||||||||||||||
| (excl impaired loans with no specific reserves) | 215.40 | % | 188.11 | % | 131.36 | % | |||||||||||||||||||||||||||||||||||
|
CAPITAL RATIOS |
|||||||||||||||||||||||||||||||||||||||||
| Total equity/total assets | 12.19 | % | 12.03 | % | 12.14 | % | |||||||||||||||||||||||||||||||||||
| Common equity/total assets | 12.19 | % | 12.03 | % | 12.14 | % | |||||||||||||||||||||||||||||||||||
| Tangible common equity/tangible assets | 9.27 | % | 9.11 | % | 9.11 | % | |||||||||||||||||||||||||||||||||||
| Tangible common equity/risk-weighted assets | 13.06 | % | 12.62 | % | 12.15 | % | |||||||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.10 | % | 10.14 | % | 9.81 | % | |||||||||||||||||||||||||||||||||||
| Tier 1 common risk-based capital ratio | 13.32 | % | 12.87 | % | 12.14 | % | |||||||||||||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 14.24 | % | 13.77 | % | 13.15 | % | |||||||||||||||||||||||||||||||||||
| Total risk-based capital ratio | 16.25 | % | 15.77 | % | 15.15 | % | |||||||||||||||||||||||||||||||||||
| (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 | ||||||||||||||||||||||||||||||||
| March 31, 2011 | ||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||
|
AVERAGE BALANCES |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||||||||||||||
| Securities AFS-taxable | $ | 2,050,502 | $ | 1,817,996 | $ | 1,654,335 | $ | 1,586,165 | $ | 1,514,029 | ||||||||||||||||||||||
| Securities AFS-nontaxable | 144,921 | 140,139 | 111,959 | 110,969 | 105,067 | |||||||||||||||||||||||||||
| Securities HTM-taxable | 97,710 | 121,278 | 143,124 | 162,691 | 179,076 | |||||||||||||||||||||||||||
| Securities HTM-nontaxable | 27,099 | 33,138 | 37,703 | 41,628 | 46,852 | |||||||||||||||||||||||||||
| Total securities | 2,320,232 | 2,112,551 | 1,947,121 | 1,901,453 | 1,845,024 | |||||||||||||||||||||||||||
| Loans (including loans held for sale) | 6,107,025 | 6,199,875 | 6,230,961 | 6,301,201 | 6,412,671 | |||||||||||||||||||||||||||
| Fed funds sold and rev repos | 8,359 | 10,766 | 8,418 | 7,478 | 10,438 | |||||||||||||||||||||||||||
| Other earning assets | 47,851 | 41,359 | 33,615 | 38,764 | 46,199 | |||||||||||||||||||||||||||
| Total earning assets | 8,483,467 | 8,364,551 | 8,220,115 | 8,248,896 | 8,314,332 | |||||||||||||||||||||||||||
| Allowance for loan losses | (96,065 | ) | (96,559 | ) | (102,528 | ) | (104,814 | ) | (106,200 | ) | ||||||||||||||||||||||
| Cash and due from banks | 222,380 | 207,874 | 214,736 | 207,670 | 216,305 | |||||||||||||||||||||||||||
| Other assets | 899,524 | 888,666 | 885,600 | 898,749 | 910,401 | |||||||||||||||||||||||||||
| Total assets | $ | 9,509,306 | $ | 9,364,532 | $ | 9,217,923 | $ | 9,250,501 | $ | 9,334,838 | ||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,465,390 | $ | 1,347,252 | $ | 1,363,377 | $ | 1,306,783 | $ | 1,270,827 | ||||||||||||||||||||||
| Savings deposits | 2,045,874 | 1,794,352 | 1,888,121 | 2,066,612 | 1,953,711 | |||||||||||||||||||||||||||
| Time deposits less than $100,000 | 1,210,219 | 1,235,529 | 1,276,088 | 1,307,611 | 1,356,469 | |||||||||||||||||||||||||||
| Time deposits of $100,000 or more | 876,975 | 932,744 | 957,148 | 989,397 | 1,014,027 | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 5,598,458 | 5,309,877 | 5,484,734 | 5,670,403 | 5,595,034 | |||||||||||||||||||||||||||
| Fed funds purchased and repos | 647,881 | 701,978 | 522,523 | 495,904 | 600,826 | |||||||||||||||||||||||||||
| Short-term borrowings | 254,451 | 254,442 | 202,017 | 181,669 | 199,550 | |||||||||||||||||||||||||||
| Long-term FHLB advances | - | - | - | 15,833 | 75,000 | |||||||||||||||||||||||||||
| Subordinated notes | 49,809 | 49,801 | 49,793 | 49,785 | 49,777 | |||||||||||||||||||||||||||
| Junior subordinated debt securities | 61,856 | 64,546 | 70,104 | 70,104 | 70,104 | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 6,612,455 | 6,380,644 | 6,329,171 | 6,483,698 | 6,590,291 | |||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,620,554 | 1,706,089 | 1,629,122 | 1,536,153 | 1,535,209 | |||||||||||||||||||||||||||
| Other liabilities | 116,399 | 117,741 | 104,576 | 91,715 | 85,982 | |||||||||||||||||||||||||||
| Total liabilities | 8,349,408 | 8,204,474 | 8,062,869 | 8,111,566 | 8,211,482 | |||||||||||||||||||||||||||
| Shareholders' equity | 1,159,898 | 1,160,058 | 1,155,054 | 1,138,935 | 1,123,356 | |||||||||||||||||||||||||||
| Total liabilities and equity | $ | 9,509,306 | $ | 9,364,532 | $ | 9,217,923 | $ | 9,250,501 | $ | 9,334,838 | ||||||||||||||||||||||
|
PERIOD END BALANCES |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||||||||||||||
| Cash and due from banks | $ | 193,087 | $ | 161,544 | $ | 196,136 | $ | 186,365 | $ | 191,973 | ||||||||||||||||||||||
| Fed funds sold and rev repos | 1,726 | 11,773 | 6,655 | 5,713 | 11,599 | |||||||||||||||||||||||||||
| Securities available for sale | 2,309,704 | 2,177,249 | 1,968,624 | 1,786,710 | 1,706,565 | |||||||||||||||||||||||||||
| Securities held to maturity | 110,054 | 140,847 | 168,849 | 192,860 | 215,888 | |||||||||||||||||||||||||||
| Loans held for sale | 112,981 | 153,044 | 268,137 | 218,369 | 176,682 | |||||||||||||||||||||||||||
| Loans | 5,964,089 | 6,060,242 | 5,998,704 | 6,054,995 | 6,170,878 | |||||||||||||||||||||||||||
| Allowance for loan losses | (93,398 | ) | (93,510 | ) | (94,458 | ) | (100,656 | ) | (101,643 | ) | ||||||||||||||||||||||
| Net Loans | 5,870,691 | 5,966,732 | 5,904,246 | 5,954,339 | 6,069,235 | |||||||||||||||||||||||||||
| Premises and equipment, net | 141,524 | 142,289 | 143,393 | 143,536 | 145,113 | |||||||||||||||||||||||||||
| Mortgage servicing rights | 53,598 | 51,151 | 41,972 | 43,044 | 50,037 | |||||||||||||||||||||||||||
| Goodwill | 291,104 | 291,104 | 291,104 | 291,104 | 291,104 | |||||||||||||||||||||||||||
| Identifiable intangible assets | 15,532 | 16,306 | 17,181 | 18,062 | 18,944 | |||||||||||||||||||||||||||
| Other real estate | 89,198 | 86,704 | 84,722 | 91,400 | 91,176 | |||||||||||||||||||||||||||
| Other assets | 325,263 | 355,159 | 325,886 | 313,043 | 324,899 | |||||||||||||||||||||||||||
| Total assets | $ | 9,514,462 | $ | 9,553,902 | $ | 9,416,905 | $ | 9,244,545 | $ | 9,293,215 | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||
| Noninterest-bearing | $ | 1,668,104 | $ | 1,636,625 | $ | 1,709,311 | $ | 1,539,598 | $ | 1,511,080 | ||||||||||||||||||||||
| Interest-bearing | 5,758,170 | 5,407,942 | 5,316,025 | 5,599,796 | 5,635,973 | |||||||||||||||||||||||||||
| Total deposits | 7,426,274 | 7,044,567 | 7,025,336 | 7,139,394 | 7,147,053 | |||||||||||||||||||||||||||
| Fed funds purchased and repos | 550,919 | 700,138 | 633,065 | 492,367 | 571,711 | |||||||||||||||||||||||||||
| Short-term borrowings | 154,585 | 425,343 | 318,457 | 208,136 | 132,784 | |||||||||||||||||||||||||||
| Long-term FHLB advances | - | - | - | - | 75,000 | |||||||||||||||||||||||||||
| Subordinated notes | 49,814 | 49,806 | 49,798 | 49,790 | 49,782 | |||||||||||||||||||||||||||
| Junior subordinated debt securities | 61,856 | 61,856 | 70,104 | 70,104 | 70,104 | |||||||||||||||||||||||||||
| Other liabilities | 110,785 | 122,708 | 161,353 | 142,374 | 118,252 | |||||||||||||||||||||||||||
| Total liabilities | 8,354,233 | 8,404,418 | 8,258,113 | 8,102,165 | 8,164,686 | |||||||||||||||||||||||||||
| Common stock | 13,333 | 13,318 | 13,311 | 13,311 | 13,302 | |||||||||||||||||||||||||||
| Capital surplus | 260,297 | 256,675 | 254,288 | 253,133 | 250,365 | |||||||||||||||||||||||||||
| Retained earnings | 898,222 | 890,917 | 881,545 | 870,532 | 860,398 | |||||||||||||||||||||||||||
| Accum other comprehensive | ||||||||||||||||||||||||||||||||
| (loss) income, net of tax | (11,623 | ) | (11,426 | ) | 9,648 | 5,404 | 4,464 | |||||||||||||||||||||||||
| Total shareholders' equity | 1,160,229 | 1,149,484 | 1,158,792 | 1,142,380 | 1,128,529 | |||||||||||||||||||||||||||
| Total liabilities and equity | $ | 9,514,462 | $ | 9,553,902 | $ | 9,416,905 | $ | 9,244,545 | $ | 9,293,215 | ||||||||||||||||||||||
|
See Notes to Consolidated Financials |
||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||
| March 31, 2011 | |||||||||||||||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||
|
INCOME STATEMENTS |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | ||||||||||||||||||||||||||||
| Interest and fees on loans-FTE | $ | 79,116 | $ | 82,664 | $ | 83,374 | $ | 84,362 | $ | 84,127 | |||||||||||||||||||||||
| Interest on securities-taxable | 19,992 | 19,076 | 18,641 | 19,626 | 19,735 | ||||||||||||||||||||||||||||
| Interest on securities-tax exempt-FTE | 2,128 | 2,169 | 2,080 | 2,151 | 2,180 | ||||||||||||||||||||||||||||
| Interest on fed funds sold and rev repos | 8 | 12 | 9 | 7 | 8 | ||||||||||||||||||||||||||||
| Other interest income | 332 | 328 | 332 | 366 | 383 | ||||||||||||||||||||||||||||
| Total interest income-FTE | 101,576 | 104,249 | 104,436 | 106,512 | 106,433 | ||||||||||||||||||||||||||||
| Interest on deposits | 9,719 | 10,359 | 11,609 | 12,785 | 13,904 | ||||||||||||||||||||||||||||
| Interest on fed funds pch and repos | 338 | 403 | 294 | 260 | 226 | ||||||||||||||||||||||||||||
| Other interest expense | 1,553 | 1,535 | 1,631 | 1,597 | 1,592 | ||||||||||||||||||||||||||||
| Total interest expense | 11,610 | 12,297 | 13,534 | 14,642 | 15,722 | ||||||||||||||||||||||||||||
| Net interest income-FTE | 89,966 | 91,952 | 90,902 | 91,870 | 90,711 | ||||||||||||||||||||||||||||
| Provision for loan losses | 7,537 | 11,794 | 12,259 | 10,398 | 15,095 | ||||||||||||||||||||||||||||
| Net interest income after provision-FTE | 82,429 | 80,158 | 78,643 | 81,472 | 75,616 | ||||||||||||||||||||||||||||
| Service charges on deposit accounts | 11,907 | 13,493 | 14,493 | 14,220 | 12,977 | ||||||||||||||||||||||||||||
| Insurance commissions | 6,512 | 6,224 | 7,746 | 6,884 | 6,837 | ||||||||||||||||||||||||||||
| Wealth management | 5,986 | 5,760 | 5,199 | 5,558 | 5,355 | ||||||||||||||||||||||||||||
| Bank card and other fees | 6,475 | 6,482 | 6,235 | 6,417 | 5,880 | ||||||||||||||||||||||||||||
| Mortgage banking, net | 4,722 | 4,502 | 9,861 | 8,910 | 6,072 | ||||||||||||||||||||||||||||
| Other, net | 762 | 2,070 | 441 | 1,103 | 879 | ||||||||||||||||||||||||||||
| Nonint inc-excl sec gains, net | 36,364 | 38,531 | 43,975 | 43,092 | 38,000 | ||||||||||||||||||||||||||||
| Security gains, net | 7 | 101 | 4 | 1,855 | 369 | ||||||||||||||||||||||||||||
| Total noninterest income | 36,371 | 38,632 | 43,979 | 44,947 | 38,369 | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 44,036 | 44,412 | 44,034 | 43,282 | 42,854 | ||||||||||||||||||||||||||||
| Services and fees | 10,270 | 10,462 | 10,709 | 10,523 | 10,255 | ||||||||||||||||||||||||||||
| Net occupancy-premises | 5,073 | 4,896 | 4,961 | 4,917 | 5,034 | ||||||||||||||||||||||||||||
| Equipment expense | 5,144 | 4,229 | 4,356 | 4,247 | 4,303 | ||||||||||||||||||||||||||||
| FDIC assessment expense | 2,750 | 2,942 | 3,037 | 3,035 | 3,147 | ||||||||||||||||||||||||||||
| ORE/Foreclosure expense | 3,213 | 3,310 | 8,728 | 9,278 | 3,061 | ||||||||||||||||||||||||||||
| Other expense | 9,532 | 10,186 | 8,598 | 9,146 | 7,707 | ||||||||||||||||||||||||||||
| Total noninterest expense | 80,018 | 80,437 | 84,423 | 84,428 | 76,361 | ||||||||||||||||||||||||||||
| Income before income taxes and tax eq adj | 38,782 | 38,353 | 38,199 | 41,991 | 37,624 | ||||||||||||||||||||||||||||
| Tax equivalent adjustment | 3,591 | 3,400 | 3,335 | 3,384 | 3,293 | ||||||||||||||||||||||||||||
| Income before income taxes | 35,191 | 34,953 | 34,864 | 38,607 | 34,331 | ||||||||||||||||||||||||||||
| Income taxes | 11,178 | 9,793 | 9,004 | 12,446 | 10,876 | ||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 24,013 | $ | 25,160 | $ | 25,860 | $ | 26,161 | $ | 23,455 | |||||||||||||||||||||||
| Per common share data | |||||||||||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.38 | $ | 0.39 | $ | 0.40 | $ | 0.41 | $ | 0.37 | |||||||||||||||||||||||
| Earnings per share - diluted | $ | 0.37 | $ | 0.39 | $ | 0.40 | $ | 0.41 | $ | 0.37 | |||||||||||||||||||||||
| Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | |||||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||
| Basic | 63,950,461 | 63,892,362 | 63,885,647 | 63,872,879 | 63,743,302 | ||||||||||||||||||||||||||||
| Diluted | 64,181,752 | 64,105,064 | 64,066,798 | 64,054,171 | 63,933,333 | ||||||||||||||||||||||||||||
| Period end common shares outstanding | 63,987,064 | 63,917,591 | 63,885,959 | 63,885,403 | 63,844,500 | ||||||||||||||||||||||||||||
|
OTHER FINANCIAL DATA |
|||||||||||||||||||||||||||||||||
| Return on common equity | 8.40 | % | 8.60 | % | 8.88 | % | 9.21 | % | 8.47 | % | |||||||||||||||||||||||
| Return on average tangible common equity | 11.65 | % | 11.96 | % | 12.38 | % | 12.92 | % | 11.98 | % | |||||||||||||||||||||||
| Return on equity | 8.40 | % | 8.60 | % | 8.88 | % | 9.21 | % | 8.47 | % | |||||||||||||||||||||||
| Return on assets | 1.02 | % | 1.07 | % | 1.11 | % | 1.13 | % | 1.02 | % | |||||||||||||||||||||||
| Interest margin - Yield - FTE | 4.86 | % | 4.94 | % | 5.04 | % | 5.18 | % | 5.19 | % | |||||||||||||||||||||||
| Interest margin - Cost | 0.56 | % | 0.58 | % | 0.65 | % | 0.71 | % | 0.77 | % | |||||||||||||||||||||||
| Net interest margin - FTE | 4.30 | % | 4.36 | % | 4.39 | % | 4.47 | % | 4.42 | % | |||||||||||||||||||||||
| Efficiency ratio | 63.34 | % | 61.65 | % | 62.59 | % | 62.56 | % | 59.33 | % | |||||||||||||||||||||||
| Full-time equivalent employees | 2,489 | 2,490 | 2,501 | 2,527 | 2,506 | ||||||||||||||||||||||||||||
| COMMON STOCK PERFORMANCE | |||||||||||||||||||||||||||||||||
| Market value-Close | $ | 23.42 | $ | 24.84 | $ | 21.74 | $ | 20.82 | $ | 24.43 | |||||||||||||||||||||||
| Common book value | $ | 18.13 | $ | 17.98 | $ | 18.14 | $ | 17.88 | $ | 17.68 | |||||||||||||||||||||||
| Tangible common book value | $ | 13.34 | $ | 13.17 | $ | 13.31 | $ | 13.04 | $ | 12.82 | |||||||||||||||||||||||
|
See Notes to Consolidated Financials |
|||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||
| March 31, 2011 | ||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||
|
NONPERFORMING ASSETS |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||||||||||||||
| Nonaccrual loans | ||||||||||||||||||||||||||||||||
| Florida | $ | 44,548 | $ | 53,773 | $ | 65,759 | $ | 74,954 | $ | 79,687 | ||||||||||||||||||||||
| Mississippi (1) | 40,226 | 39,803 | 48,962 | 39,924 | 41,795 | |||||||||||||||||||||||||||
| Tennessee (2) | 13,886 | 14,703 | 9,207 | 9,778 | 12,673 | |||||||||||||||||||||||||||
| Texas | 28,130 | 34,644 | 35,388 | 35,222 | 31,354 | |||||||||||||||||||||||||||
| Total nonaccrual loans | 126,790 | 142,923 | 159,316 | 159,878 | 165,509 | |||||||||||||||||||||||||||
| Other real estate | ||||||||||||||||||||||||||||||||
| Florida | 31,339 | 32,370 | 31,665 | 31,814 | 40,145 | |||||||||||||||||||||||||||
| Mississippi (1) | 22,084 | 24,181 | 24,548 | 28,020 | 23,082 | |||||||||||||||||||||||||||
| Tennessee (2) | 16,920 | 16,407 | 16,456 | 12,493 | 9,769 | |||||||||||||||||||||||||||
| Texas | 18,855 | 13,746 | 12,053 | 19,073 | 18,180 | |||||||||||||||||||||||||||
| Total other real estate | 89,198 | 86,704 | 84,722 | 91,400 | 91,176 | |||||||||||||||||||||||||||
| Total nonperforming assets | $ | 215,988 | $ | 229,627 | $ | 244,038 | $ | 251,278 | $ | 256,685 | ||||||||||||||||||||||
|
LOANS PAST DUE OVER 90 DAYS |
||||||||||||||||||||||||||||||||
| Loans held for investment | $ | 5,010 | $ | 3,608 | $ | 5,795 | $ | 6,057 | $ | 8,411 | ||||||||||||||||||||||
| Loans HFS-Guaranteed GNMA serviced loans | ||||||||||||||||||||||||||||||||
| (no obligation to repurchase) | $ | 19,808 | $ | 15,777 | $ | 50,246 | $ | 49,712 | $ | 48,571 | ||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||
|
ALLOWANCE FOR LOAN LOSSES |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||||||||||||||
| Beginning Balance | $ | 93,510 | $ | 94,458 | $ | 100,656 | $ | 101,643 | $ | 103,662 | ||||||||||||||||||||||
| Provision for loan losses | 7,537 | 11,794 | 12,259 | 10,398 | 15,095 | |||||||||||||||||||||||||||
| Charge-offs | (11,132 | ) | (15,883 | ) | (21,942 | ) | (14,297 | ) | (19,775 | ) | ||||||||||||||||||||||
| Recoveries | 3,483 | 3,141 | 3,485 | 2,912 | 2,661 | |||||||||||||||||||||||||||
| Net charge-offs | (7,649 | ) | (12,742 | ) | (18,457 | ) | (11,385 | ) | (17,114 | ) | ||||||||||||||||||||||
| Ending Balance | $ | 93,398 | $ | 93,510 | $ | 94,458 | $ | 100,656 | $ | 101,643 | ||||||||||||||||||||||
|
PROVISION FOR LOAN LOSSES |
||||||||||||||||||||||||||||||||
| Florida | $ | 3,024 | $ | 7,473 | $ | 4,520 | $ | 2,432 | $ | 5,501 | ||||||||||||||||||||||
| Mississippi (1) | 1,071 | 2,673 | 4,398 | 3,430 | 3,748 | |||||||||||||||||||||||||||
| Tennessee (2) | 1,619 | 910 | (172 | ) | 3,560 | 1,314 | ||||||||||||||||||||||||||
| Texas | 1,823 | 738 | 3,513 | 976 | 4,532 | |||||||||||||||||||||||||||
| Total provision for loan losses | $ | 7,537 | $ | 11,794 | $ | 12,259 | $ | 10,398 | $ | 15,095 | ||||||||||||||||||||||
|
NET CHARGE-OFFS |
||||||||||||||||||||||||||||||||
| Florida | $ | 5,478 | $ | 4,830 | $ | 8,951 | $ | 5,880 | $ | 8,989 | ||||||||||||||||||||||
| Mississippi (1) | 410 | 4,422 | 3,879 | 3,885 | 6,777 | |||||||||||||||||||||||||||
| Tennessee (2) | 979 | 1,646 | 3,475 | 1,031 | 426 | |||||||||||||||||||||||||||
| Texas | 782 | 1,844 | 2,152 | 589 | 922 | |||||||||||||||||||||||||||
| Total net charge-offs | $ | 7,649 | $ | 12,742 | $ | 18,457 | $ | 11,385 | $ | 17,114 | ||||||||||||||||||||||
|
CREDIT QUALITY RATIOS |
||||||||||||||||||||||||||||||||
| Net charge offs/average loans | 0.51 | % | 0.82 | % | 1.18 | % | 0.72 | % | 1.08 | % | ||||||||||||||||||||||
| Provision for loan losses/average loans | 0.50 | % | 0.75 | % | 0.78 | % | 0.66 | % | 0.95 | % | ||||||||||||||||||||||
| Nonperforming loans/total loans (incl LHFS) | 2.09 | % | 2.30 | % | 2.54 | % | 2.55 | % | 2.61 | % | ||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) | 3.55 | % | 3.70 | % | 3.89 | % | 4.01 | % | 4.04 | % | ||||||||||||||||||||||
| Nonperforming assets/total loans (incl LHFS) +ORE | 3.50 | % | 3.64 | % | 3.84 | % | 3.95 | % | 3.99 | % | ||||||||||||||||||||||
| ALL/total loans (excl LHFS) | 1.57 | % | 1.54 | % | 1.57 | % | 1.66 | % | 1.65 | % | ||||||||||||||||||||||
| ALL-commercial/total commercial loans | 1.98 | % | 1.94 | % | 1.97 | % | 2.10 | % | 2.10 | % | ||||||||||||||||||||||
| ALL-consumer/total consumer and home mortgage loans | 0.76 | % | 0.78 | % | 0.81 | % | 0.82 | % | 0.80 | % | ||||||||||||||||||||||
| ALL/nonperforming loans | 73.66 | % | 65.43 | % | 59.29 | % | 62.96 | % | 61.41 | % | ||||||||||||||||||||||
| ALL/nonperforming loans - | ||||||||||||||||||||||||||||||||
| (excl impaired loans with no specific reserves) | 215.40 | % | 188.11 | % | 140.94 | % | 148.86 | % | 131.36 | % | ||||||||||||||||||||||
|
CAPITAL RATIOS |
||||||||||||||||||||||||||||||||
| Total equity/total assets | 12.19 | % | 12.03 | % | 12.31 | % | 12.36 | % | 12.14 | % | ||||||||||||||||||||||
| Common equity/total assets | 12.19 | % | 12.03 | % | 12.31 | % | 12.36 | % | 12.14 | % | ||||||||||||||||||||||
| Tangible common equity/tangible assets | 9.27 | % | 9.11 | % | 9.34 | % | 9.32 | % | 9.11 | % | ||||||||||||||||||||||
| Tangible common equity/risk-weighted assets | 13.06 | % | 12.62 | % | 12.78 | % | 12.51 | % | 12.15 | % | ||||||||||||||||||||||
| Tier 1 leverage ratio | 10.10 | % | 10.14 | % | 10.26 | % | 10.07 | % | 9.81 | % | ||||||||||||||||||||||
| Tier 1 common risk-based capital ratio | 13.32 | % | 12.87 | % | 12.72 | % | 12.51 | % | 12.14 | % | ||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 14.24 | % | 13.77 | % | 13.75 | % | 13.53 | % | 13.15 | % | ||||||||||||||||||||||
| Total risk-based capital ratio | 16.25 | % | 15.77 | % | 15.75 | % | 15.53 | % | 15.15 | % | ||||||||||||||||||||||
| (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 |
|||||||||||||||||
| March 31, 2011 | |||||||||||||||||
| ($ 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): |
|||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||
|
SECURITIES AVAILABLE FOR SALE |
|||||||||||||||||
| U.S. Government agency obligations | |||||||||||||||||
| Issued by U.S. Government agencies | $ | 10 | $ | 12 | $ | 14 | $ | 16 | $ | 18 | |||||||
| Issued by U.S. Government sponsored agencies | 136,168 | 122,023 | 149,588 | 124,566 | 68,574 | ||||||||||||
| Obligations of states and political subdivisions | 161,909 | 159,637 | 148,772 | 125,234 | 123,292 | ||||||||||||
| Mortgage-backed securities | |||||||||||||||||
| Residential mortgage pass-through securities | |||||||||||||||||
| Guaranteed by GNMA | 12,079 | 12,442 | 13,273 | 13,390 | 11,986 | ||||||||||||
| Issued by FNMA and FHLMC | 417,022 | 426,504 | 243,220 | 142,900 | 51,292 | ||||||||||||
| Other residential mortgage-backed securities | |||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 1,486,872 | 1,400,816 | 1,366,373 | 1,333,725 | 1,387,752 | ||||||||||||
| Commercial mortgage-backed securities | |||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 95,644 | 55,815 | 41,359 | 40,789 | 57,485 | ||||||||||||
| Corporate debt securities | - | - | 6,025 | 6,090 | 6,166 | ||||||||||||
|
Total securities available for sale |
$ | 2,309,704 | $ | 2,177,249 | $ | 1,968,624 | $ | 1,786,710 | $ | 1,706,565 | |||||||
|
SECURITIES HELD TO MATURITY |
|||||||||||||||||
| Obligations of states and political subdivisions | $ | 49,129 | $ | 53,246 | $ | 61,139 | $ | 64,517 | $ | 69,975 | |||||||
| Mortgage-backed securities | |||||||||||||||||
| Residential mortgage pass-through securities | |||||||||||||||||
| Guaranteed by GNMA | 5,650 | 6,058 | 6,462 | 6,591 | 6,801 | ||||||||||||
| Other residential mortgage-backed securities | |||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 52,272 | 78,526 | 98,217 | 118,708 | 136,054 | ||||||||||||
| Commercial mortgage-backed securities | |||||||||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 3,003 | 3,017 | 3,031 | 3,044 | 3,058 | ||||||||||||
| Total securities held to maturity | $ | 110,054 | $ | 140,847 | $ | 168,849 | $ | 192,860 | $ | 215,888 | |||||||
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 91% of the portfolio in U.S. Government agency-backed obligations and other AAA rated securities. None of the securities owned by Trustmark are collateralized by assets which are considered 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.
|
Note 2 – Loan Composition |
||||||||||||||||||||||||||||||||||||
|
LOANS BY TYPE |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 |
|
||||||||||||||||||||||||||||||
| Loans secured by real estate: | ||||||||||||||||||||||||||||||||||||
| Construction, land development and other land loans | $ | 552,956 | $ | 583,316 | $ | 615,554 | $ | 737,015 | $ | 803,942 |
|
|
||||||||||||||||||||||||
| Secured by 1-4 family residential properties | 1,737,018 | 1,732,056 | 1,672,199 | 1,630,353 | 1,637,121 |
|
||||||||||||||||||||||||||||||
| Secured by nonfarm, nonresidential properties | 1,488,711 | 1,498,108 | 1,531,953 | 1,463,657 | 1,466,296 |
|
||||||||||||||||||||||||||||||
| Other real estate secured | 216,986 | 231,963 | 203,931 | 189,118 | 194,641 |
|
||||||||||||||||||||||||||||||
| Commercial and industrial loans | 1,082,258 | 1,068,369 | 1,016,292 | 1,040,152 | 1,041,580 |
|
||||||||||||||||||||||||||||||
| Consumer loans | 357,870 | 402,165 | 444,927 | 492,262 | 542,488 |
|
||||||||||||||||||||||||||||||
| Other loans | 528,290 | 544,265 | 513,848 | 502,438 | 484,810 |
|
||||||||||||||||||||||||||||||
| Loans | 5,964,089 | 6,060,242 | 5,998,704 | 6,054,995 | 6,170,878 |
|
||||||||||||||||||||||||||||||
| Allowance for loan losses | (93,398 | ) | (93,510 | ) | (94,458 | ) | (100,656 | ) | (101,643 | ) |
|
|
||||||||||||||||||||||||
| Net Loans | $ | 5,870,691 | $ | 5,966,732 | $ | 5,904,246 | $ | 5,954,339 | $ | 6,069,235 |
|
|
||||||||||||||||||||||||
| Note 2 – Loan Composition (continued) | |||||||||||||||||||||||||
| March 31, 2011 | |||||||||||||||||||||||||
|
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 | $ | 552,956 | $ | 122,445 | $ | 239,164 | $ | 42,381 | $ | 148,966 | |||||||||||||||
| Secured by 1-4 family residential properties | 1,737,018 | 69,552 | 1,485,170 | 150,327 | 31,969 | ||||||||||||||||||||
| Secured by nonfarm, nonresidential properties | 1,488,711 | 177,943 | 793,863 | 195,171 | 321,734 | ||||||||||||||||||||
| Other real estate secured | 216,986 | 13,472 | 158,578 | 8,422 | 36,514 | ||||||||||||||||||||
| Commercial and industrial loans | 1,082,258 | 14,774 | 782,451 | 80,253 | 204,780 | ||||||||||||||||||||
| Consumer loans | 357,870 | 1,476 | 326,795 | 23,794 | 5,805 | ||||||||||||||||||||
| Other loans | 528,290 | 27,694 | 446,732 | 20,089 | 33,775 | ||||||||||||||||||||
| Loans | $ | 5,964,089 | $ | 427,356 | $ | 4,232,753 | $ | 520,437 | $ | 783,543 | |||||||||||||||
|
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION |
|||||||||||||||||||||||||
| Lots | $ | 80,875 | $ | 44,742 | $ | 23,017 | $ | 1,885 | $ | 11,231 | |||||||||||||||
| Development | 145,358 | 20,524 | 57,436 | 6,115 | 61,283 | ||||||||||||||||||||
| Unimproved land | 195,198 | 52,177 | 84,370 | 23,866 | 34,785 | ||||||||||||||||||||
| 1-4 family construction | 89,096 | 1,078 | 64,309 | 4,216 | 19,493 | ||||||||||||||||||||
| Other construction | 42,429 | 3,924 | 10,032 | 6,299 | 22,174 | ||||||||||||||||||||
| Construction, land development and other land loans | $ | 552,956 | $ | 122,445 | $ | 239,164 | $ | 42,381 | $ | 148,966 | |||||||||||||||
|
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION |
|
||||||||||||||||||||||||
| Income producing: | |||||||||||||||||||||||||
| Retail | $ | 171,922 | $ | 48,259 | $ | 69,487 | $ | 24,467 | $ | 29,709 | |||||||||||||||
| Office | 157,427 | 47,233 | 78,719 | 13,140 | 18,335 | ||||||||||||||||||||
| Nursing homes/assisted living | 121,284 | - | 111,424 | 4,485 | 5,375 | ||||||||||||||||||||
| Hotel/motel | 65,575 | 11,104 | 29,405 | 11,008 | 14,058 | ||||||||||||||||||||
| Industrial | 32,658 | 9,220 | 4,914 | 1,228 | 17,296 | ||||||||||||||||||||
| Health care | 13,559 | - | 12,441 | 56 | 1,062 | ||||||||||||||||||||
| Convenience stores | 11,407 | 438 | 6,092 | 2,433 | 2,444 | ||||||||||||||||||||
| Other | 170,327 | 13,081 | 66,098 | 12,756 | 78,392 | ||||||||||||||||||||
| Total income producing loans | 744,159 | 129,335 | 378,580 | 69,573 | 166,671 | ||||||||||||||||||||
| Owner-occupied: | |||||||||||||||||||||||||
| Office | 122,926 | 17,687 | 64,174 | 17,780 | 23,285 | ||||||||||||||||||||
| Churches | 115,235 | 2,157 | 53,242 | 54,662 | 5,174 | ||||||||||||||||||||
| Industrial warehouses | 95,026 | 2,418 | 54,855 | 521 | 37,232 | ||||||||||||||||||||
| Health care | 79,964 | 10,956 | 54,607 | 6,950 | 7,451 | ||||||||||||||||||||
| Convenience stores | 65,870 | 1,266 | 38,990 | 2,824 | 22,790 | ||||||||||||||||||||
| Retail | 36,348 | 5,574 | 21,774 | 2,295 | 6,705 | ||||||||||||||||||||
| Restaurants | 29,238 | 778 | 22,885 | 3,942 | 1,633 | ||||||||||||||||||||
| Auto dealerships | 19,982 | 596 | 15,190 | 1,488 | 2,708 | ||||||||||||||||||||
| Other | 179,963 | 7,176 | 89,566 | 35,136 | 48,085 | ||||||||||||||||||||
| Total owner-occupied loans | 744,552 | 48,608 | 415,283 | 125,598 | 155,063 | ||||||||||||||||||||
| Loans secured by nonfarm, nonresidential properties | $ | 1,488,711 | $ | 177,943 | $ | 793,863 | $ | 195,171 | $ | 321,734 | |||||||||||||||
| Note 2 – Loan Composition (continued) | ||||||||||||||||||||||||||||||||
| March 31, 2011 | ||||||||||||||||||||||||||||||||
| Classified (3) | ||||||||||||||||||||||||||||||||
|
FLORIDA CREDIT QUALITY |
Total Loans |
Criticized Loans (1) |
Special Mention (2) |
Accruing | Nonimpaired Nonaccrual |
Impaired Nonaccrual (4) |
||||||||||||||||||||||||||
| Construction, land development and other land loans: | ||||||||||||||||||||||||||||||||
| Lots | $ | 44,742 | $ | 14,620 | $ | 664 | $ | 9,947 | $ | 1,946 | $ | 2,063 | ||||||||||||||||||||
| Development | 20,524 | 10,760 | - | 3,553 | 83 | 7,124 | ||||||||||||||||||||||||||
| Unimproved land | 52,177 | 31,518 | 21,233 | 2,148 | 817 | 7,320 | ||||||||||||||||||||||||||
| 1-4 family construction | 1,078 | - | - | - | - | - | ||||||||||||||||||||||||||
| Other construction | 3,924 | 299 | - | 299 | - | - | ||||||||||||||||||||||||||
| Construction, land development and other land loans | 122,445 | 57,197 | 21,897 | 15,947 | 2,846 | 16,507 | ||||||||||||||||||||||||||
| Commercial, commercial real estate and consumer | 304,911 | 69,547 | 12,509 | 31,843 | 5,402 | 19,793 | ||||||||||||||||||||||||||
| Total Florida loans | $ | 427,356 | $ | 126,744 | $ | 34,406 | $ | 47,790 | $ | 8,248 | $ | 36,300 | ||||||||||||||||||||
|
FLORIDA LOAN LOSS RESERVES BY LOAN TYPE |
Total Loans |
Loan Loss Reserves |
Loan Loss Reserve % of Total Loans |
|||||||||||||||||||||||||||||
| Construction, land development and other land loans: | ||||||||||||||||||||||||||||||||
| Lots | $ | 44,742 | $ | 4,212 | 9.41 | % | ||||||||||||||||||||||||||
| Development | 20,524 | 4,047 | 19.72 | % | ||||||||||||||||||||||||||||
| Unimproved land | 52,177 | 5,976 | 11.45 | % | ||||||||||||||||||||||||||||
| 1-4 family construction | 1,078 | 34 | 3.15 | % | ||||||||||||||||||||||||||||
| Other construction | 3,924 | 277 | 7.06 | % | ||||||||||||||||||||||||||||
| Construction, land development and other land loans | 122,445 | 14,546 | 11.88 | % | ||||||||||||||||||||||||||||
| Commercial, commercial real estate and consumer | 304,911 | 6,660 | 2.18 | % | ||||||||||||||||||||||||||||
| Total Florida loans | $ | 427,356 | $ | 21,206 | 4.96 | % | ||||||||||||||||||||||||||
| (1) Criticized loans equal all special mention and classified loans. | ||||||||||||||||||||||||||||||||
| (2) Special mention loans exhibit potential credit weaknesses that, if not resolved, may ultimately result in a more severe classification. | ||||||||||||||||||||||||||||||||
| (3) Classified loans include those loans identified by management as exhibiting well-defined credit weaknesses that may jeopardize repayment in full of the debt. | ||||||||||||||||||||||||||||||||
| (4) All nonaccrual loans over $500 thousand are individually assessed for impairment. Impaired loans have been determined to be collateral dependent and assessed using a fair value approach. Fair value estimates begin with appraised values, normally from recently received and reviewed appraisals. Appraised values are adjusted down for costs associated with asset disposal. At the time a loan is deemed to be impaired, the full difference between book value and the most likely estimate of the asset’s net realizable value is charged off. However, as subsequent events dictate and estimated net realizable values decline, required reserves are established. | ||||||||||||||||||||||||||||||||
|
LOAN COMPOSITION -FLORIDA |
3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||
| Loans secured by real estate: | ||||||||||||||||||||
| Construction, land development and other land loans | $ | 122,445 | $ | 132,021 | $ | 145,907 | $ | 173,932 | $ | 183,670 | ||||||||||
| Secured by 1-4 family residential properties | 69,552 | 72,114 | 73,738 | 77,680 | 81,297 | |||||||||||||||
| Secured by nonfarm, nonresidential properties | 177,943 | 183,250 | 184,992 | 178,297 | 179,637 | |||||||||||||||
| Other real estate secured | 13,472 | 14,038 | 12,223 | 8,062 | 5,195 | |||||||||||||||
| Commercial and industrial loans | 14,774 | 16,053 | 17,512 | 25,254 | 22,100 | |||||||||||||||
| Consumer loans | 1,476 | 1,487 | 1,636 | 1,756 | 2,077 | |||||||||||||||
| Other loans | 27,694 | 25,488 | 28,194 | 29,354 | 29,480 | |||||||||||||||
| Loans | $ | 427,356 | $ | 444,451 | $ | 464,202 | $ | 494,335 | $ | 503,456 | ||||||||||
|
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS - FLORIDA |
||||||||||||||||||||
| Lots | $ | 44,742 | $ | 46,907 | $ | 48,700 | $ | 54,406 | $ | 57,436 | ||||||||||
| Development | 20,524 | 21,144 | 24,060 | 24,632 | 27,381 | |||||||||||||||
| Unimproved land | 52,177 | 57,811 | 61,676 | 69,003 | 71,271 | |||||||||||||||
| 1-4 family construction | 1,078 | 2,277 | 7,864 | 9,148 | 10,247 | |||||||||||||||
| Other construction | 3,924 | 3,882 | 3,607 | 16,743 | 17,335 | |||||||||||||||
| Construction, land development and other land loans | $ | 122,445 | $ | 132,021 | $ | 145,907 | $ | 173,932 | $ | 183,670 | ||||||||||
|
Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities |
||||||||||||||||||||||||||
|
The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis: |
||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | ||||||||||||||||||||||
| Securities – Taxable | 3.77 | % | 3.90 | % | 4.11 | % | 4.50 | % | 4.73 | % | ||||||||||||||||
| Securities – Nontaxable | 5.02 | % | 4.97 | % | 5.51 | % | 5.65 | % | 5.82 | % | ||||||||||||||||
| Securities – Total | 3.87 | % | 3.99 | % | 4.22 | % | 4.59 | % | 4.82 | % | ||||||||||||||||
| Loans | 5.25 | % | 5.29 | % | 5.31 | % | 5.37 | % | 5.32 | % | ||||||||||||||||
| FF Sold & Rev Repo | 0.39 | % | 0.44 | % | 0.42 | % | 0.38 | % | 0.31 | % | ||||||||||||||||
| Other Earning Assets | 2.81 | % | 3.15 | % | 3.92 | % | 3.79 | % | 3.36 | % | ||||||||||||||||
| Total Earning Assets | 4.86 | % | 4.94 | % | 5.04 | % | 5.18 | % | 5.19 | % | ||||||||||||||||
| Interest-bearing Deposits | 0.70 | % | 0.77 | % | 0.84 | % | 0.90 | % | 1.01 | % | ||||||||||||||||
| FF Pch & Repo | 0.21 | % | 0.23 | % | 0.22 | % | 0.21 | % | 0.15 | % | ||||||||||||||||
| Other Borrowings | 1.72 | % | 1.65 | % | 2.01 | % | 2.02 | % | 1.64 | % | ||||||||||||||||
| Total Interest-bearing Liabilities | 0.71 | % | 0.76 | % | 0.85 | % | 0.91 | % | 0.97 | % | ||||||||||||||||
| Net interest margin | 4.30 | % | 4.36 | % | 4.39 | % | 4.47 | % | 4.42 | % | ||||||||||||||||
During the first quarter of 2011, the net interest margin decreased 6 basis points to 4.30%, from 4.36% for the fourth quarter of 2010. The decrease is primarily a result of the downward repricing of fixed-rate assets, mostly within Trustmark's investment securities portfolio, which was partially offset by declines in interest-bearing deposit costs.
Note 4 – Mortgage Banking
Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and exchange-traded option contracts, to achieve a fair value return that offsets the changes in fair value of MSR attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting. Changes in the fair value of these exchange-traded derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of MSR. The MSR fair value represents the effect of present value decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the total hedge cost to the changes in the fair value of the MSR asset attributable to interest rate changes. The impact of this strategy resulted in a net positive ineffectiveness of $263 thousand and $1.0 million for the quarters ended March 31, 2011 and 2010, respectively.
|
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements: |
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| Quarter Ended | |||||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||||
| Mortgage servicing income, net | $ | 3,614 | $ | 3,577 | $ | 3,406 | $ | 3,495 | $ | 3,449 | |||||||||||
| Change in fair value-MSR from runoff | (1,291 | ) | (2,506 | ) | (2,255 | ) | (1,374 | ) | (1,170 | ) | |||||||||||
| Gain on sales of loans, net | 3,101 | 5,754 | 3,911 | 1,897 | 3,755 | ||||||||||||||||
| Other, net | (965 | ) | (2,016 | ) | 1,919 | 1,193 | (1,002 | ) | |||||||||||||
| Mortgage banking income before hedge ineffectiveness | 4,459 | 4,809 | 6,981 | 5,211 | 5,032 | ||||||||||||||||
| Change in fair value-MSR from market changes | 257 | 5,870 | (3,115 | ) | (8,631 | ) | (3,067 | ) | |||||||||||||
| Change in fair value of derivatives | 6 | (6,177 | ) | 5,995 | 12,330 | 4,107 | |||||||||||||||
| Net positive (negative) hedge ineffectiveness | 263 | (307 | ) | 2,880 | 3,699 | 1,040 | |||||||||||||||
| Mortgage banking, net | $ | 4,722 | $ | 4,502 | $ | 9,861 | $ | 8,910 | $ | 6,072 | |||||||||||
During the first quarter of 2010, Trustmark completed the final settlement of the sale of approximately $920.9 million in mortgages serviced for others, which reduced Trustmark’s MSR by approximately $8.5 million. In addition, during December of 2010, Trustmark purchased approximately $53.9 million of GNMA serviced loans, which were subsequently sold to a third party. Trustmark will retain the servicing for these loans, which are fully guaranteed by FHA/VA. The effect of these transactions did not have a material impact on Trustmark's results of operations.
Note 5 – Non-GAAP Financial Measures
In addition to capital ratios defined by generally accepted accounting principles (GAAP) and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.
Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations.
These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure. The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.
| Note 5 - Non-GAAP Financial Measures (continued) | ||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | ||||||||||||||||||||||||||||
|
TANGIBLE COMMON EQUITY |
||||||||||||||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||||||
| Total shareholders' common equity | $ | 1,159,898 | $ | 1,160,058 | $ | 1,155,054 | $ | 1,138,935 | $ | 1,123,356 | ||||||||||||||||||||||
| Less: | Goodwill | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | |||||||||||||||||||||
| Identifiable intangible assets | (16,003 | ) | (16,835 | ) | (17,716 | ) | (18,596 | ) | (19,484 | ) | ||||||||||||||||||||||
| Total average tangible common equity | $ | 852,791 | $ | 852,119 | $ | 846,234 | $ | 829,235 | $ | 812,768 | ||||||||||||||||||||||
| PERIOD END BALANCES | ||||||||||||||||||||||||||||||||
| Total shareholders' common equity | $ | 1,160,229 | $ | 1,149,484 | $ | 1,158,792 | $ | 1,142,380 | $ | 1,128,529 | ||||||||||||||||||||||
| Less: | Goodwill | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | |||||||||||||||||||||
| Identifiable intangible assets | (15,532 | ) | (16,306 | ) | (17,181 | ) | (18,062 | ) | (18,944 | ) | ||||||||||||||||||||||
| Total tangible common equity | (a) | $ | 853,593 | $ | 842,074 | $ | 850,507 | $ | 833,214 | $ | 818,481 | |||||||||||||||||||||
|
TANGIBLE ASSETS |
||||||||||||||||||||||||||||||||
| Total assets | $ | 9,514,462 | $ | 9,553,902 | $ | 9,416,905 | $ | 9,244,545 | $ | 9,293,215 | ||||||||||||||||||||||
| Less: | Goodwill | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | |||||||||||||||||||||
| Identifiable intangible assets | (15,532 | ) | (16,306 | ) | (17,181 | ) | (18,062 | ) | (18,944 | ) | ||||||||||||||||||||||
| Total tangible assets | (b) | $ | 9,207,826 | $ | 9,246,492 | $ | 9,108,620 | $ | 8,935,379 | $ | 8,983,167 | |||||||||||||||||||||
| Risk-weighted assets | (c) | $ | 6,536,056 | $ | 6,672,174 | $ | 6,653,479 | $ | 6,658,897 | $ | 6,737,084 | |||||||||||||||||||||
|
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION |
||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 24,013 | $ | 25,160 | $ | 25,860 | $ | 26,161 | $ | 23,455 | ||||||||||||||||||||||
| Plus: | Intangible amortization net of tax | 480 | 538 | 545 | 545 | 545 | ||||||||||||||||||||||||||
| Net income adjusted for intangible amortization | $ | 24,493 | $ | 25,698 | $ | 26,405 | $ | 26,706 | $ | 24,000 | ||||||||||||||||||||||
| Period end common shares outstanding | (d) | 63,987,064 | 63,917,591 | 63,885,959 | 63,885,403 | 63,844,500 | ||||||||||||||||||||||||||
|
TANGIBLE COMMON EQUITY MEASUREMENTS |
|
|||||||||||||||||||||||||||||||
| Return on average tangible common equity 1 | 11.65 | % | 11.96 | % | 12.38 | % | 12.92 | % | 11.98 | % | ||||||||||||||||||||||
| Tangible common equity/tangible assets | (a)/(b) | 9.27 | % | 9.11 | % | 9.34 | % | 9.32 | % | 9.11 | % | |||||||||||||||||||||
| Tangible common equity/risk-weighted assets | (a)/(c) | 13.06 | % | 12.62 | % | 12.78 | % | 12.51 | % | 12.15 | % | |||||||||||||||||||||
| Tangible common book value | (a)/(d)*1,000 | $ | 13.34 | $ | 13.17 | $ | 13.31 | $ | 13.04 | $ | 12.82 | |||||||||||||||||||||
|
TIER 1 COMMON RISK-BASED CAPITAL |
|
|||||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 1,160,229 | $ | 1,149,484 | $ | 1,158,792 | $ | 1,142,380 | $ | 1,128,529 | ||||||||||||||||||||||
| Eliminate qualifying AOCI | 11,623 | 11,426 | (9,648 | ) | (5,404 | ) | (4,464 | ) | ||||||||||||||||||||||||
| Qualifying tier 1 capital | 60,000 | 60,000 | 68,000 | 68,000 | 68,000 | |||||||||||||||||||||||||||
| Disallowed goodwill | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | (291,104 | ) | ||||||||||||||||||||||
| Adj to goodwill allowed for deferred taxes | 10,568 | 10,215 | 9,863 | 9,510 | 9,158 | |||||||||||||||||||||||||||
| Other disallowed intangibles | (15,532 | ) | (16,306 | ) | (17,181 | ) | (18,062 | ) | (18,944 | ) | ||||||||||||||||||||||
| Disallowed servicing intangible | (5,360 | ) | (5,115 | ) | (4,197 | ) | (4,304 | ) | (5,004 | ) | ||||||||||||||||||||||
| Total tier 1 capital | $ | 930,424 | $ | 918,600 | $ | 914,525 | $ | 901,016 | $ | 886,171 | ||||||||||||||||||||||
| Less: | Qualifying tier 1 capital | (60,000 | ) | (60,000 | ) | (68,000 | ) | (68,000 | ) | (68,000 | ) | |||||||||||||||||||||
| Total tier 1 common capital | (e) | $ | 870,424 | $ | 858,600 | $ | 846,525 | $ | 833,016 | $ | 818,171 | |||||||||||||||||||||
| Tier 1 common risk-based capital ratio | (e)/(c) | 13.32 | % | 12.87 | % | 12.72 | % | 12.51 | % | 12.14 | % | |||||||||||||||||||||
| 1 Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible common equity | ||||||||||||||||||||||||||||||||
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