Trustmark in Jackson, Miss., reported a dip in second-quarter earnings on shrinking profit margins and declining yields on earning assets.
The $12.2 billion-asset company's net income decreased 7% from the second quarter of 2014, to $30.6 million. Earnings per share of 45 cents beat the average estimate of analysts polled by Bloomberg by four cents.
Net interest income fell 7.6% to $100.9 million, on a 46% decline in interest and fees on acquired loans. Loans held for investment rose 4.2% to $6.2 billion. Yields on total earning assets slipped 43 basis points to 3.99%. The net interest margin tightened 40 basis points to 3.81%
Fee income rose 3.2% to $45.5 million, on higher profits from mortgage banking and insurance commissions.
Noninterest expense fell 2.4% to $100.3 million, mainly on a decline in other real estate and foreclosure expenses. The efficiency ratio worsened to 66%.