J.P. Morgan First Look At TRMK 1Q

J.P. Morgan is providing a fist look at Trustmark Corporation's TRMK 1Q11. “Core EPS beats our estimate, in line with Street” J.P. Morgan writes. “TRMK reported core EPS of $0.37 which beat our estimate of $0.35 and was in line with consensus. Compared with our forecast, the first quarter outperformance came from provision expense coming in $2.7 million below forecast. “Although TRMK matched provision to NCOs, the level of NCOs improved materially, to 0.50% of average loans in 1Q vs. 0.82% of loans in 4Q. The credit picture looked better at TRMK in the first quarter of the year. In terms of top line, in the first quarter revenues declined at a 7.6% annualized pace, tied in large part to a 6 bps sequential contraction in the NIM, to 4.30%. While growth in average deposits was strong, increasing at a 12% annualized pace, loan growth disappointed, with average loans declining at a 6% annualized pace, worse than the 4% annualized decline posted by peer banks in 1Q. Period-end loan balances also declined at a 6% annualized pace.” Trustmark closed Tuesday at $23.37.