Trustmark (TRMK) in Jackson, Miss., posted double-digit quarterly earnings growth because of increased mortgage-banking activity and higher fee income.

The $9.8 billion-asset company's earnings rose 13% from a year earlier, to $27.7 million. Per-share earnings were 43 cents, or a penny below the expectations of analysts polled by Bloomberg.

Trustmark's net interest income fell 7% from a year earlier, to $86 million, because of the company's efforts to clean up its loan portfolio. The bank's "classified" and "criticized" loans, or those that examiners rate as substandard,  fell by over $130 million from a year earlier.

Trustmark's net interest margin contracted by 34 basis points from a year earlier, to 3.94%, because of the repricing of loans and securities. The loan-loss  provision fell by 79% from a year earlier, to $1.4 million.

Noninterest income rose by 30% from a year earlier, to $43 million. Trustmark generated higher income from fees, insurance and wealth management. Mortgage banking income nearly doubled from a year earlier, to $11.3 million. The rise in mortgage revenue is due in part to the current low interest rates, Gerard Host, Trustmark's president and chief executive, said in a press release.

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