Trustmark Corp. (NASDAQ:TRMK) filed Quarterly Report for the period ended 2010-09-30.
Trustmark Corp. has a market cap of $1.5 billion; its shares were traded at around $23.1 with a P/E ratio of 16.9 and P/S ratio of 2.4. The dividend yield of Trustmark Corp. stocks is 3.9%.TRMK is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:Mortgage Banking – TNB provides mortgage banking services, including construction financing, production of conventional and government insured mortgages, secondary marketing and mortgage servicing. At September 30, 2010, TNB s mortgage loan portfolio totaled approximately $1.1 billion, while its portfolio of mortgage loans serviced for others, including, FNMA, FHLMC and GNMA, totaled approximately $4.3 billion.
On December 7, 2009, Trustmark completed a public offering of 6,216,216 shares of its common stock, including 810,810 shares issued pursuant to the exercise of the underwriters over-allotment option, at a price of $18.50 per share. Trustmark received net proceeds of approximately $109.3 million after deducting underwriting discounts, commissions and offering expenses. Proceeds from this offering were used in the redemption of Senior Preferred Stock discussed below.
In the fourth quarter of 2009, Trustmark exited the TARP CPP. Following discussions with its federal banking regulators and the completion of the public offering of common stock discussed above, Trustmark redeemed all the Senior Preferred Stock from the Treasury on December 9, 2009. The amount paid by Trustmark to redeem the Senior Preferred Stock consisted of $215.0 million, which was equivalent to both the original issuance price and the liquidation value of the Senior Preferred Stock, plus a final accrued dividend of approximately $716.7 thousand. As a result of the redemption of the Senior Preferred Stock, in the fourth quarter of 2009, Trustmark incurred a one-time, non-cash charge of $8.2 million to net income available to common shareholders for the unaccreted discount recorded at the date of issuance of the Senior Preferred Stock. On December 30, 2009, Trustmark repurchased the Warrant from the Treasury for its fair value of $10.0 million.
Trustmark s net income available to common shareholders totaled $25.9 million in the third quarter of 2010, which represented basic earnings per common share of $0.40. Trustmark s third quarter net income produced a return on average tangible common equity of 12.38%. During the first nine months of 2010, Trustmark s net income available to common shareholders totaled $75.5 million, which represented basic earnings per common share of $1.18. Trustmark s performance during the first nine months of 2010 resulted in a return on average tangible common equity of 12.43%. During the third quarter, Trustmark s Board of Directors declared a quarterly cash dividend of $0.23 per common share payable December 15, 2010, to shareholders of record on December 1, 2010.
Net income available to common shareholders for the nine months ended September 30, 2010, increased $16.3 million, or 27.6% compared to the same period in 2009. The increase was primarily the result of a decline in the loan loss provision of $21.7 million and the elimination of preferred stock dividends and the accretion of preferred stock discount during the first nine months of 2010, which increased net income available to common shareholders by approximately $9.4 million. These increases in net income available to common shareholders were partially offset by growth in noninterest expense of $12.6 million primarily resulting from increased real estate/foreclosure expenses of $11.8 million. For additional information on the changes in noninterest income and noninterest expense, please see accompanying sections included in Results of Operations.
At September 30, 2010, nonperforming assets totaled $244.0 million, an increase of $12.8 million, or 5.5%, compared to December 31, 2009, and total nonaccrual loans were $159.3 million, representing an increase of $18.2 million relative to December 31, 2009. Total net charge-offs for the nine months ended September 30, 2010 were $47.0 million compared to total net charge-offs for the nine months ended September 30, 2009 of $51.3 million.
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