JACKSON, Mississippi — The wealth management and insurance businesses of $11.7 billion Trustmark Corp. turned in a solid financial performance in the second quarter, the Jackson.-based financial services company announced Wednesday.
The website Bank Investment Consultant reports that wealth management services generated $6.9 million in revenue for Trustmark, up 20.4 percent year-over-year. Revenue from insurance commissions rose 11.6% to $8.0 million over the same time period.
BancTrust Financial Group, a Mobile, Ala.-based company that Trustmark acquired in February, contributed approximately $1.1 million to the $6.9 million generated in wealth management income, Gerard Host, president & CEO of Trustmark, said during the earnings call on Wednesday.
Expanded commercial insurance sales as well as the continued firming of insurance rates drove the increase in insurance revenue, Host said.
For the first six months of 2013, revenue from wealth management services totaled $13.8 million, while insurance commissions totaled $15.3 million, up 22.7 percent and 10.7 percent, respectively, from the mid-year mark last year.
Overall, Trustmark earned $31.1 million in profit in the second quarter of 2013, or 46 cents per diluted share.
“Trustmark’s momentum continued to build during the second quarter as total revenue increased 7.2 percent to $142.9 million. Our banking, mortgage banking, wealth management, and insurance businesses continued to perform well while credit quality continued to experience significant improvements,” Host said.
The credit quality side showed a 4.8 percent decline in nonperforming assets in the second quarter, Trustmark said in its earnings report, putting its total of non-performing assets at $192 million.
Nonperforming loans accounted for $74.3 million of the total, a decline of 10.8 percent from the prior quarter, while foreclosed other real estate accounted for $117.7 million, a decline of 0.6 percent from the prior quarter.
Trustmark anticipates completing its previously announced plans to purchase two branch offices and assume selected deposit accounts of about $11.7 million from SOUTHBank, F.S.B. in the Oxford market at the close of business on Friday.