The costs to extend buyouts to employees cut into Trustmark's second-quarter profit, as did a drop in mortgage banking.
Net income at the $13 billion-asset company fell 30% to $21.5 million from a year earlier. Total revenue rose 2% to $132.6 million. Deposits fell 3% to $9.5 billion.
The results included a $9.3 million charge to cover severance payments for employees who accepted buyout offers. The charge reduced quarterly earnings by 8.5 cents, to 32 cents per share. Trustmark, based in Jackson, Miss., estimated the buyouts will generate $4.2 million in savings in the second half of this year and $8.5 million of savings in 2017.
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Trustmark in Jackson, Miss., reduced its workforce by more than 6% by offering early retirement packages.
June 8 -
Hancock Holding in Gulfport, Miss., got a breather from oil issues that have plagued its bottom line in recent quarters.
July 20 -
Regional banks like BB&T, Huntington Bancshares and Citizens Financial are growing through acquisition and targeted business-line initiatives, but they are having to contain spending simultaneously.
July 21
Net interest income after the loan-loss provision fell 1.4% to $97.7 million on lower yields on earnings assets. The provision more than doubled to $2.6 million. Total loans held for investment rose 15% to $7.4 billion.
Noninterest income fell 2.9% to $44.2 million. Two of the major reasons were a 29% decline in mortgage banking income to $6.7 million, and a 7.3% drop in deposit service charges to $11.1 million.
Noninterest expense rose 9.9% to $110.2 million on higher employee benefits and compensation and on higher foreclosure-related expenses.
Trustmark also disclosed that it will terminate its employee pension plan on Dec. 31. Trustmark will record $12 million of expenses in the second quarter of 2017 to terminate the plan, but it said the termination will generate between $3 million and $4 million in yearly savings.
