Trustmark in Jackson, Miss., said its profit declined in the third quarter because of lower loan yields and higher expenses.
The $12.4 billion-asset company's net income fell 15.4%, to $28.4 million, from a year earlier. Earnings per share were unchanged at 23 cents.
Net interest income, before the loan-loss provision, fell 7.7%, to $101.7 million. Total loans rose 3.3%, to $6.8 billion, but the net interest margin narrowed to 3.72% from 4.14% in last year's third quarter.
Yields on total earning assets shrank to 3.91% from 4.34%.
Trustmark reported its total energy sector exposure was $424.5 million as of Sept. 30. Its outstanding balances related to energy totaled $207 million.
Noninterest income rose 7.2%, to $46 million, as higher mortgage banking volume offset declines in the other major categories.
Noninterest expense rose 3.4%, to $103.6 million. Salaries, occupancy and equipment expenses all increased. Additionally, Trustmark's foreclosure expenses rose to $3.4 million from $930,000. The efficiency ratio climbed to 67.87% from 62.80% a year earlier.