Trustmark Corporation (NASDAQ:TRMK) Q4 2017 Earnings Conference Call Transcript

Jan 24, 2018 • 09:30 am ET

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Trustmark Corporation (NASDAQ:TRMK) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to Trustmark Corporation's Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the presentation this morning, there will be a question-and-answer session. (Operator Instructions) As a reminder, today's call is being recorded.

It is now my pleasure to introduce Mr. Joey Rein, Director of Investor Relations at Trustmark.

Executive
Joseph Rein

Good morning. I would like to remind everyone that a copy of our fourth quarter earnings release, as well as the slide presentation that we will be discussing this morning is available on the Investor Relations section of our website at trustmark.com.

During the course of our call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We would like to caution you that these forward-looking statements may differ materially from actual results due to a number of risks and uncertainties, which are outlined in our earnings release and our other filings with the Securities and Exchange Commission.

At this time, we'll turn the call over to Gerry Host, President and CEO of Trustmark.

Executive
Gerard Host

Thank you, Joey. Good morning, everyone, thank you for joining us. With us this morning is Louis Greer, our Chief Financial Officer; Barry Harvey, our Chief Credit Officer; and Tom Owens, our Bank Treasurer.

Trustmark reported net income of $15.8 million or $0.23 per diluted share in the fourth quarter. Adjusting for one-time charges related to the deferred tax asset valuation, Trustmark earned $32.7 million or diluted earnings per share of $0.48 which represents a quarter-over-quarter increase of 11.6%.

For the full year Trustmark's net income totaled $106 million which represented diluted earnings per share of $1.56 again after adjusting for one-time and non-routine charges, we are at $131 million or diluted earnings per share of $1.92.

I'd like to briefly provide you with an update on our strategic priorities which are on Page 3 of our presentation. We continue to make advancements regarding profitable revenue generations. Loans held for investments increased $163 million or 1.9% from the prior quarter and $719 million or 9.2% year-over-year.

Revenue totaled $148 million relatively inline from the prior quarter and up 5.3% from the prior year. FTE net income totaled $109 million up 0.2% from the prior quarter. The efforts to manage expenses and improve processes were evident in quarter, as core expenses which exclude ORE expense and intangible amortization remained well controlled.

Core non-interest expense in the fourth quarter totaled $100.8 million in line with the prior quarter of $100.7 million. Credit quality continues to be a strength for Trustmark. Non-performing assets decreased $6.8 million or 5.8% compared to the prior quarter.

I briefly spoke to loan growth, but I'd like to ask Barry Harvey to add some color to both loan growth and credit quality. Barry?

Executive
Barry Harvey

Be glad to, Gerry. Looking on Page 4 of the slide-deck driven with long growth as you can see during the Q4 we had loan growth of $163 million and year-to-date $719