Third-quarter net income at Trustmark Corp. in Jackson, Miss., rose 1.4% year over year, to nearly $25.9 million.
The $9.4 billion-asset Trustmark had aggressively reduced problem loans, resulting in higher chargeoffs yet a lower loan-loss provision. The results were announced late Tuesday.
Net chargeoffs rose 27.2%, to about $18.5 million from a year earlier. The company said it reduced classified loans and had fewer new classifications, resulting in a 22% drop, to $12.3 million in its loan-loss provision.
Total nonperforming assets, however, rose 16%, to $244 million, largely as a result of higher nonperforming loans within its Mississippi and Tennessee portfolios. Trustmark has spent the past 12 months lowering its exposure in Florida. Its construction and land development portfolio in the state fell 31.2%, to $145.9 million in the past year.
Trustmark was well capitalized, with a total risk-based capital ratio of 15.75% as of Sept. 30.