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

Jan 24, 2018 • 09:30 am ET


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


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Thomas Owens

basis points during the quarter while our cost of interest-bearing deposits rose five basis points representing a cumulative beta for the year of 27% relative to the Fed rate hikes.

Turning our attention to Slide 8, net interest income totaled FTE totaled $109 million during the quarter relatively flat from the prior quarter which resulted in a net interest margin of 3.48, an increase of one basis point from the prior quarter and excluding acquired loans was 3.35 core net interest margin at 3.35 up one basis point from the prior quarter and up four basis points from the prior year.

And now Louis will provide an update on non-interest income.

Louis Greer

Thanks, Tom. As you can see on the table on Page 8, non-interest income totaled about $44 million in fourth quarter and about $185 million for 2017. For '17 that represents an annual increase of 6%. For the linked-quarter non-interest income was slightly down principally due to seasonal declines in insurance for the quarter and was offset by increased mortgage revenues due primarily to lower hedge an ineffectiveness for the quarter. I'll remind you Trustmark's non-interest income remains very diversified and it continues to represent 30% of total revenues.

Let's turn to Page 9 and talk about expenses as Gerry mentioned earlier. Our core non-interest expenses remain very control with routine non-interest expenses totaling about little less than $101 million in the fourth quarter and was in line with our prior quarter and with our previous estimates we gave you.

While we are pleased with the progress to-date we remain focused on expense management. We will continue to realign branches and delivery channels and make investments to enhance our customer experiences.

As for taxes, I'd like to point you to Note 8 of our financial stat sheet for the impact of tax reform that occurred in the fourth quarter. In addition, the elimination of a prelease previously tagged as deferred tax valuation allowance.

I'll remind you that as you can see on Slide 9 that our future effective tax rate beginning in 2018, we'd expect to be 12% to 14%.

And on Slide 10, I will mention capital from a capital perspective we have amplest capital to support organic growth and are focused on the most attractive methods of deploying capital. So Gerry?

Gerard Host

Thank you, Louis. I trust that this brief discussion of our fourth quarter financial results along with our press release and stat sheet that we released yesterday afternoon has proven helpful to you.

And at this time I would be glad to address any questions that you have.