Trustmark Corp. in Jackson, Miss., said late Tuesday that fourth-quarter net income fell 10% from a quarter earlier, to $24.3 million.

The company said noninterest income fell 26% from a quarter earlier, due to lower mortgage banking revenues and insurance commissions. The $9.7 billion-asset company said quarterly earnings fell 3.6% from a year earlier despite a reduction in its loan-loss provision.

Trustmark said it was able to recover $3.8 million from improved cash flows of acquired loans, which contributed to a net interest margin of 4.28%. Excluding the recovery, the margin would have been 4.10%.

Net chargeoffs fell almost 53% from a year earlier, to $6 million. Nonperforming assets rose slightly from the third quarter but fell 17.5% from a year earlier, to $189.5 million.

As part of the credit clean-up process, Trustmark reduced its construction and land development portfolio in Florida by nearly 28% last year, to $95.5 million.

Full-year net income rose 5.7% from 2010, to $106.8 million.

Trustmark has announced two acquisitions in the last eight months. The first was for the failed Heritage Banking Group in April. In November, the company said it would buy Bay Bank & Trust in Panama City, Fla., in a deal expected to close this quarter.

The company remains well-capitalized with a total risk-based capital ratio of 16.7%. Trustmark said it would continue to use capital for both organic and acquisition growth.

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