Equibles

8-K

TRUSTMARK CORP (TRMK)

8-K 2025-01-28 For: 2025-01-28
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Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

January 28, 2025

Date of Report (Date of earliest event reported)

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TRUSTMARK CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi 000-03683 64-0471500
(State or other jurisdiction<br><br>of incorporation) (Commission<br><br>File Number) (IRS Employer<br><br>Identification No.)
248 East Capitol Street, Jackson, Mississippi 39201
--- ---
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (601) 208-5111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered Pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, no par value TRMK Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On January 28, 2025, Trustmark Corporation issued a press release announcing its financial results for the period ended December 31, 2024. A copy of this press release and the accompanying financial statements and slide presentation are attached hereto as Exhibits 99.1 and 99.2 to this report and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number Description of Exhibits
99.1 Press release announcing financial results for the period ended December 31, 2024
99.2 Investor slide presentation for the period ended December 31, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRUSTMARK CORPORATION

BY: /s/ Thomas C. Owens
Thomas C. Owens
Treasurer and Principal Financial Officer
DATE: January 28, 2025

EX-99.1

Exhibit 99.1

News Release

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Earnings and profitability significantly enhanced, share repurchase activity resumed,

quarterly cash dividend increased

JACKSON, Miss. – January 28, 2025 – Trustmark Corporation (NASDAQGS:TRMK) reported net income of $56.3 million in the fourth quarter of 2024, representing diluted earnings per share of $0.92. Net income increased $5.0 million, or 9.7%, from the prior quarter while diluted EPS increased $0.08. In the fourth quarter, Trustmark’s net income produced a return on average tangible equity of 13.68% and a return on average assets of 1.23%.

Financial results in 2024, which included the sale of Fisher Brown Bottrell Insurance, Inc. (FBBI) in the second quarter, consisted of both continuing operations and discontinued operations. The discontinued operations included the financial results of FBBI prior to the sale as well as the gain on sale in the second quarter. The discontinued operations results are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented. Financial results from adjusted continuing operations(1) exclude significant non-routine transactions.

For the full year, Trustmark reported net income from continuing operations of $45.2 million, representing diluted earnings per share of $0.74 and net income from adjusted continuing operations(1) of $186.3 million, or $3.04 per diluted share. Net income from adjusted continuing operations(1) in 2024 increased $27.1 million, or 17.0%, compared to the prior year.

Trustmark’s net income from continuing operations in 2024 produced a return on average tangible equity of 3.04% and a return on average assets of 0.24% while net income from adjusted continuing operations(1)generated a return on average tangible equity of 12.71% and a return on average assets of 1.01%.

Trustmark’s Board of Directors announced a 4.3% increase in its regular quarterly dividend to $0.24 per share from $0.23 per share. The Board declared the dividend payable March 15, 2025, to shareholders of record on March 1, 2025. This action raises the indicated annual dividend rate to $0.96 per share from $0.92 per share. During the fourth quarter Trustmark repurchased $7.5 million, or approximately 203 thousand of its common shares. The increase in Trustmark's quarterly dividend and resumption of activity in the share repurchase program have been made possible by continued improvement in profitability and accretion of capital.

2024 Highlights

  • Total revenue from continuing operations in 2024 was $561.0 million while total revenue from adjusted continuing operations(1) was $740.5 million, an increase of $39.2 million, or 5.6%, from the prior year
  • Net interest income (FTE) totaled $597.0 million, up 5.4% in 2024 to produce a net interest margin of 3.51%, up 19 basis points from 2023
  • Wealth management revenue totaled $37.3 million, up 6.2% in 2024
  • Noninterest income from continuing operations was a negative $23.4 million in 2024 while noninterest income from adjusted continuing operations(1) totaled $156.1million, up $7.7 million, or 5.2%, from the prior year
  • Noninterest expense from continuing operations totaled $485.7 million in 2024, a decline of $10.0 million compared to the prior year; noninterest expense from adjusted continuing operations(1) declined $2.1 million in 2024
  • Efficiency ratio improved 400 basis points to 63.26% in 2024
  • Loans held for investment (HFI) increased $139.4 million, or 1.1%, in 2024
  • Net charge-offs represented 0.12% of average loans in 2024, excluding portfolio sale of 1-4 family mortgage loans in the second quarter
  • Deposits decreased $461.6 million, or 3.0%, in 2024 driven largely by intentional declines in public funds and brokered deposits of $397.9 million and $328.9 million, respectively
  • Capital ratios materially increased during 2024; repurchased $7.5 million, or approximately 203 thousand shares, of common stock
  • Continued technology investments to enhance efficiency and productivity

Duane A. Dewey, President and CEO, commented, “2024 was a transformational year for Trustmark, reflecting the sale of our insurance agency, the restructuring of our balance sheet, and expanded sales and service initiatives designed to meet the needs of our customers. These actions, along with other initiatives in prior years, have significantly enhanced financial performance and Trustmark’s forward earnings profile. Our capital levels rose meaningfully, which led to the Board’s decision to increase the quarterly cash dividend

along with our renewed activity in the share repurchase program. Thanks to the dedicated efforts of our associates, Trustmark is well-positioned for 2025 and beyond.”

Balance Sheet Management

  • Loans HFI totaled $13.1 billion at December 31, 2024, down 0.1% from the prior quarter and up 1.1% year over year
  • Deposits totaled $15.1 billion at December 31, 2024, down 0.9% from the previous quarter and 3.0% year-over-year
  • Maintained strong capital position with CET1 ratio of 11.54% and total risk-based capital ratio of 13.97%

Loans HFI totaled $13.1 billion at December 31, 2024, reflecting a decrease of $10.2 million, or 0.1%, linked-quarter and an increase of $139.4 million, or 1.1%, year-over-year. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.1 billion at December 31, 2024, down $132.8 million, or 0.9%, from the prior quarter driven by the intentional decline in brokered deposits of $150.0 million. Year-over-year, deposits declined $461.6 million, or 3.0%, driven by intentional declines in public funds and brokered deposits of $397.9 million and $328.9 million, respectively. Trustmark continues to maintain a strong liquidity position as loans HFI represented 86.6% of total deposits at year-end 2024. Noninterest-bearing deposits represented 20.3% of total deposits at December 31, 2024. Interest-bearing deposit costs totaled 2.51% for the fourth quarter, a decrease of 30 basis points linked-quarter. The total cost of interest-bearing liabilities was 2.61% for the fourth quarter of 2024, a decrease of 33 basis points from the prior quarter.

During the fourth quarter, and for the twelve months ended December 31, 2024, Trustmark repurchased $7.5 million, or approximately 203 thousand of its common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2025, under which $100.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2025. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At December 31, 2024, Trustmark’s tangible equity to tangible assets ratio was 9.13%, while the total risk-based capital ratio was 13.97%. Tangible book value per share was $26.68 at December 31, 2024, up 22.8% from the prior year.

Credit Quality

  • Net charge-offs totaled $4.6 million, representing 0.14% of average loans in the fourth quarter
  • Net provision for credit losses totaled $7.5 million in the fourth quarter
  • Allowance for credit losses (ACL) represented 1.22% of loans HFI and 341.20% of nonperforming loans, excluding individually analyzed loans at year-end

Nonaccrual loans totaled $80.1 million at December 31, 2024, an increase of $6.3 million from the prior quarter and a decline of $19.9 million year-over-year. Other real estate totaled $5.9 million, reflecting an increase of $2.0 million from the prior quarter and a decrease of $1.0 million from the prior year. Collectively, nonperforming assets totaled $86.0 million, representing 0.65% of loans HFI and held for sale (HFS) at December 31, 2024.

The net provision for credit losses totaled $7.5 million in the fourth quarter compared to $6.5 million in the third quarter and $6.7 million in the fourth quarter of 2023. The provision for credit losses for loans HFI was $7.0 million in the fourth quarter and was primarily attributable to changes to the economic forecast and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was $502 thousand, primarily driven by net adjustments to the qualitative factors and increases in unfunded commitments.

Allocation of Trustmark’s $160.3 million ACL on loans HFI represented 1.10% of commercial loans and 1.62% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.22% at December 31, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

  • Total revenue expanded to $196.8 million in the fourth quarter
  • Net interest income (FTE) totaled $158.4 million in the fourth quarter, up 0.3% linked-quarter
  • Net interest margin totaled 3.76% in the fourth quarter, up 7 basis points from the prior quarter
  • Noninterest income totaled $41.0 million, up 9.0% from the prior quarter, representing 20.8% of total revenue in the fourth quarter

Revenue in the fourth quarter totaled $196.8 million, an increase of 2.4% from the prior quarter, reflecting growth in net interest income and noninterest income. In 2024, total revenue from continuing operations was $561.0 million while total revenue from adjusted continuing operations(1) was $740.5 million, an increase of $39.2 million, or 5.6%, from the prior year.

Net interest income (FTE) in the fourth quarter totaled $158.4 million, resulting in a net interest margin of 3.76%, up 7 basis points from the prior quarter. The increase in the net interest margin was primarily due to lower costs of interest-bearing liabilities which were offset in part by lower yields on the loans HFI and HFS portfolio.

Noninterest income in the fourth quarter totaled $41.0 million, an increase of $3.4 million from the prior quarter. The linked-quarter change was broad-based and reflected growth in virtually all fee-based businesses.

Mortgage loan production in the fourth quarter totaled $372.2 million, a decrease of 5.1% linked-quarter and an increase of 36.9% year-over-year. Mortgage banking revenue totaled $7.4 million in the fourth quarter, an increase of $1.3 million from the prior quarter and $1.9 million year-over-year. The linked-quarter increase is attributable to a decrease in negative net hedge ineffectiveness. In 2024, mortgage loan production totaled $1.4 billion, down 2.5% from the prior year. Mortgage banking revenue totaled $26.6 million in 2024, up $410 thousand from the prior year.

Wealth management revenue totaled $9.3 million in the fourth quarter, up 0.3% from the prior quarter and 7.6% from the prior year. The year-over-year change is attributable to increased trust management and brokerage revenue. In 2024, wealth management revenue totaled $37.3 million, up $2.2 million, or 6.2%, from the prior year, reflecting expanded investment services revenue driven by growth in assets under management.

Noninterest Expense

  • Noninterest expense increased $1.2 million, or 0.9%, linked-quarter
  • Salaries and employee benefits expense increased $2.5 million, or 3.8%, linked-quarter
  • Total other expense decreased $2.2 million, or 12.7%, linked-quarter

Salaries and employee benefits expense in the fourth quarter totaled $69.2 million, an increase of $2.5 million, or 3.8%, from the prior quarter. The increase was driven principally by year-end incentives. Total services and fees in the fourth quarter totaled $26.7 million, up $1.0 million from the prior quarter reflecting increased professional fees. Total other expense decreased $2.2 million, or 12.7%, linked-quarter to $15.1 million principally due to reduced other real estate expense, net.

(1) Please refer to Consolidated Financial Information, Note 1 – Significant Non-Routine Transactions and Note 7 – Non-GAAP Financial Measures.

Significant Non-Routine Transactions in the Second Quarter

  • Completed sale of FBBI, producing a gain on sale of $228.3 million ($171.2 million, net of taxes)
  • Restructured investment securities portfolio; sold available for sale securities of $1.6 billion with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes); purchased $1.4 billion of available for sale securities with an average yield of 4.85%
  • Sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at time of selection totaling $56.2 million (Mortgage Loan Sale) which generated a loss of $13.4 million ($10.1 million, net of taxes); sale drove a $54.1 million reduction in nonperforming loans
  • Exchanged Visa Class B-1 shares for Visa Class B-2 shares and Visa Class C common stock; Visa Class C stock exchange resulted in a gain of $8.1 million ($6.0 million, net of taxes)

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 29, 2025, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 12, 2025, in archived format at the same web address or by calling (877) 344-7529, passcode 2478325.

Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Visit trustmark.com for more information.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations or financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, changes in our ability to measure the fair value of assets in our portfolio, changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

Trustmark Investor Contacts: Trustmark Media Contact:
Thomas C. Owens Melanie A. Morgan
Treasurer and Executive Vice President
Principal Financial Officer 601-208-2979
601-208-7853

F. Joseph Rein, Jr.

Executive Vice President

601-208-6898

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
QUARTERLY AVERAGE BALANCES 12/31/2024 9/30/2024 12/31/2023 Change % Change Change % Change
Securities AFS-taxable $ 1,708,226 $ 1,658,999 $ 1,986,825 3.0 % ) -14.0 %
Securities AFS-nontaxable — — 4,246 n/m ) -100.0 %
Securities HTM-taxable 1,346,141 1,368,943 1,430,169 ) -1.7 % ) -5.9 %
Securities HTM-nontaxable — — 340 n/m ) -100.0 %
Total securities 3,054,367 3,027,942 3,421,580 0.9 % ) -10.7 %
Loans (includes loans held for sale) 13,275,762 13,379,658 13,010,028 ) -0.8 % 2.0 %
Other earning assets 422,083 607,928 670,598 ) -30.6 % ) -37.1 %
Total earning assets 16,752,212 17,015,528 17,102,206 ) -1.5 % ) -2.0 %
Allowance for credit losses (ACL), loans held <br>   for investment (LHFI) (157,659 ) (154,476 ) (133,742 ) ) -2.1 % ) -17.9 %
Other assets 1,627,890 1,646,241 1,749,069 ) -1.1 % ) -6.9 %
Total assets $ 18,222,443 $ 18,507,293 $ 18,717,533 ) -1.5 % ) -2.6 %
Interest-bearing demand deposits $ 5,493,700 $ 5,382,346 $ 5,053,935 2.1 % 8.7 %
Savings deposits 3,278,910 3,411,961 3,526,600 ) -3.9 % ) -7.0 %
Time deposits 3,265,358 3,393,216 3,427,384 ) -3.8 % ) -4.7 %
Total interest-bearing deposits 12,037,968 12,187,523 12,007,919 ) -1.2 % 0.3 %
Fed funds purchased and repurchases 357,798 375,559 403,041 ) -4.7 % ) -11.2 %
Other borrowings 218,244 339,417 590,765 ) -35.7 % ) -63.1 %
Subordinated notes 123,666 123,611 123,446 0.0 % 0.2 %
Junior subordinated debt securities 61,856 61,856 61,856 0.0 % 0.0 %
Total interest-bearing liabilities 12,799,532 13,087,966 13,187,027 ) -2.2 % ) -2.9 %
Noninterest-bearing deposits 3,192,358 3,221,516 3,296,351 ) -0.9 % ) -3.2 %
Other liabilities 257,990 274,563 641,662 ) -6.0 % ) -59.8 %
Total liabilities 16,249,880 16,584,045 17,125,040 ) -2.0 % ) -5.1 %
Shareholders' equity 1,972,563 1,923,248 1,592,493 2.6 % 23.9 %
Total liabilities and equity $ 18,222,443 $ 18,507,293 $ 18,717,533 ) -1.5 % ) -2.6 %
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
PERIOD END BALANCES 12/31/2024 9/30/2024 12/31/2023 Change % Change Change % Change
Cash and due from banks $ 567,251 $ 805,436 $ 975,343 ) -29.6 % ) -41.8 %
Fed funds sold and reverse repurchases — 10,000 — ) -100.0 % n/m
Securities available for sale 1,692,534 1,725,795 1,762,878 ) -1.9 % ) -4.0 %
Securities held to maturity 1,335,385 1,358,358 1,426,279 ) -1.7 % ) -6.4 %
Loans held for sale (LHFS) 200,307 216,454 184,812 ) -7.5 % 8.4 %
Loans held for investment (LHFI) 13,089,942 13,100,111 12,950,524 ) -0.1 % 1.1 %
ACL LHFI (160,270 ) (157,929 ) (139,367 ) ) -1.5 % ) -15.0 %
Net LHFI 12,929,672 12,942,182 12,811,157 ) -0.1 % 0.9 %
Premises and equipment, net 235,410 236,151 232,229 ) -0.3 % 1.4 %
Mortgage servicing rights 139,317 125,853 131,870 10.7 % 5.6 %
Goodwill 334,605 334,605 334,605 0.0 % 0.0 %
Identifiable intangible assets 126 153 236 ) -17.6 % ) -46.6 %
Other real estate 5,917 3,920 6,867 50.9 % ) -13.8 %
Operating lease right-of-use assets 34,668 36,034 35,711 ) -3.8 % ) -2.9 %
Other assets 677,230 685,431 752,568 ) -1.2 % ) -10.0 %
Assets of discontinued operations — — 67,634 n/m ) -100.0 %
Total assets $ 18,152,422 $ 18,480,372 $ 18,722,189 ) -1.8 % ) -3.0 %
Deposits:
Noninterest-bearing $ 3,073,565 $ 3,142,792 $ 3,197,620 ) -2.2 % ) -3.9 %
Interest-bearing 12,034,610 12,098,143 12,372,143 ) -0.5 % ) -2.7 %
Total deposits 15,108,175 15,240,935 15,569,763 ) -0.9 % ) -3.0 %
Fed funds purchased and repurchases 324,008 365,643 405,745 ) -11.4 % ) -20.1 %
Other borrowings 301,541 443,458 483,230 ) -32.0 % ) -37.6 %
Subordinated notes 123,702 123,647 123,482 0.0 % 0.2 %
Junior subordinated debt securities 61,856 61,856 61,856 0.0 % 0.0 %
ACL on off-balance sheet credit exposures 29,392 28,890 34,057 1.7 % ) -13.7 %
Operating lease liabilities 38,698 39,689 39,097 ) -2.5 % ) -1.0 %
Other liabilities 202,723 196,158 331,085 3.3 % ) -38.8 %
Liabilities of discontinued operations — — 12,027 n/m ) -100.0 %
Total liabilities 16,190,095 16,500,276 17,060,342 ) -1.9 % ) -5.1 %
Common stock 12,711 12,753 12,725 ) -0.3 % ) -0.1 %
Capital surplus 157,899 163,156 159,688 ) -3.2 % ) -1.1 %
Retained earnings 1,875,376 1,833,232 1,709,157 2.3 % 9.7 %
Accumulated other comprehensive <br>   income (loss), net of tax (83,659 ) (29,045 ) (219,723 ) ) n/m 61.9 %
Total shareholders' equity 1,962,327 1,980,096 1,661,847 ) -0.9 % 18.1 %
Total liabilities and equity $ 18,152,422 $ 18,480,372 $ 18,722,189 ) -1.8 % ) -3.0 %
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands except per share data)
(unaudited)
Quarter Ended Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
INCOME STATEMENTS 12/31/2024 9/30/2024 12/31/2023 Change % Change Change % Change
Interest and fees on LHFS & LHFI-FTE $ 211,019 $ 220,433 $ 210,288 ) -4.3 % 0.3 %
Interest on securities-taxable 26,196 26,162 15,936 0.1 % 64.4 %
Interest on securities-tax exempt-FTE — — 44 n/m ) -100.0 %
Other interest income 5,128 8,302 9,920 ) -38.2 % ) -48.3 %
Total interest income-FTE 242,343 254,897 236,188 ) -4.9 % 2.6 %
Interest on deposits 75,941 86,043 80,847 ) -11.7 % ) -6.1 %
Interest on fed funds purchased and repurchases 4,036 4,864 5,347 ) -17.0 % ) -24.5 %
Other interest expense 3,922 5,971 9,946 ) -34.3 % ) -60.6 %
Total interest expense 83,899 96,878 96,140 ) -13.4 % ) -12.7 %
Net interest income-FTE 158,444 158,019 140,048 0.3 % 13.1 %
Provision for credit losses (PCL), LHFI 6,960 7,923 7,585 ) -12.2 % ) -8.2 %
PCL, off-balance sheet credit exposures 502 (1,375 ) (888 ) n/m n/m
PCL, LHFI sale of 1-4 family mortgage loans — — — n/m n/m
Net interest income after provision-FTE 150,982 151,471 133,351 ) -0.3 % 13.2 %
Service charges on deposit accounts 11,228 11,272 11,311 ) -0.4 % ) -0.7 %
Bank card and other fees 8,717 7,931 8,502 9.9 % 2.5 %
Mortgage banking, net 7,388 6,119 5,519 20.7 % 33.9 %
Wealth management 9,319 9,288 8,657 0.3 % 7.6 %
Other, net 4,298 2,952 2,577 45.6 % 66.8 %
Securities gains (losses), net — — 39 n/m ) -100.0 %
Total noninterest income (loss) 40,950 37,562 36,605 9.0 % 11.9 %
Salaries and employee benefits 69,223 66,691 69,326 3.8 % ) -0.1 %
Services and fees 26,692 25,724 27,478 3.8 % ) -2.9 %
Net occupancy-premises 7,195 7,398 7,144 ) -2.7 % 0.7 %
Equipment expense 6,208 6,141 6,457 1.1 % ) -3.9 %
Litigation settlement expense — — — n/m n/m
Other expense 15,112 17,316 15,790 ) -12.7 % ) -4.3 %
Total noninterest expense 124,430 123,270 126,195 0.9 % ) -1.4 %
Income (loss) from continuing operations <br>   (cont. ops) before income taxes and tax eq adj 67,502 65,763 43,761 2.6 % 54.3 %
Tax equivalent adjustment 2,596 3,305 3,306 ) -21.5 % ) -21.5 %
Income (loss) from cont. ops before income taxes 64,906 62,458 40,455 3.9 % 60.4 %
Income taxes from cont. ops 8,594 11,128 6,567 ) -22.8 % 30.9 %
Income (loss) from cont. ops 56,312 51,330 33,888 9.7 % 66.2 %
Income from discontinued operations <br>   (discont. ops) before income taxes — — 2,965 n/m ) -100.0 %
Income taxes from discont. ops — — 730 n/m ) -100.0 %
Income from discont. ops — — 2,235 n/m ) -100.0 %
Net income $ 56,312 $ 51,330 $ 36,123 9.7 % 55.9 %
Per share data (1)
Basic earnings (loss) per share from cont. ops $ 0.92 $ 0.84 $ 0.55 9.5 % 67.3 %
Basic earnings per share from discont. ops $ — $ — $ 0.04 n/m ) -100.0 %
Basic earnings per share - total $ 0.92 $ 0.84 $ 0.59 9.5 % 55.9 %
Diluted earnings (loss) per share from cont. ops $ 0.92 $ 0.84 $ 0.55 9.5 % 67.3 %
Diluted earnings per share from discont. ops $ — $ — $ 0.04 n/m ) -100.0 %
Diluted earnings per share - total $ 0.92 $ 0.84 $ 0.59 9.5 % 55.9 %
Dividends per share $ 0.23 $ 0.23 $ 0.23 0.0 % 0.0 %
Weighted average shares outstanding
Basic 61,101,954 61,206,599 61,070,481
Diluted 61,367,825 61,448,410 61,296,840
Period end shares outstanding 61,008,023 61,206,606 61,071,173
(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
Quarter Ended Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NONPERFORMING ASSETS 12/31/2024 9/30/2024 12/31/2023 Change % Change Change % Change
Nonaccrual LHFI
Alabama $ 18,601 $ 25,835 $ 23,271 ) -28.0 % ) -20.1 %
Florida 305 111 170 n/m 79.4 %
Mississippi (1) 42,203 31,536 54,615 33.8 % ) -22.7 %
Tennessee (2) 2,431 3,180 1,802 ) -23.6 % 34.9 %
Texas 16,569 13,163 20,150 25.9 % ) -17.8 %
Total nonaccrual LHFI 80,109 73,825 100,008 8.5 % ) -19.9 %
Other real estate
Alabama 170 170 1,397 0.0 % ) -87.8 %
Florida — — — n/m n/m
Mississippi (1) 2,407 1,772 1,242 35.8 % 93.8 %
Tennessee (2) 1,079 — — n/m n/m
Texas 2,261 1,978 4,228 14.3 % ) -46.5 %
Total other real estate 5,917 3,920 6,867 50.9 % ) -13.8 %
Total nonperforming assets $ 86,026 $ 77,745 $ 106,875 10.7 % ) -19.5 %
LOANS PAST DUE OVER 90 DAYS
LHFI $ 4,092 $ 5,352 $ 5,790 ) -23.5 % ) -29.3 %
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase) $ 71,255 $ 63,703 $ 51,243 11.9 % 39.1 %
Quarter Ended Linked Quarter Year over Year
ACL LHFI 12/31/2024 9/30/2024 12/31/2023 Change % Change Change % Change
Beginning Balance $ 157,929 $ 154,685 $ 134,031 2.1 % 17.8 %
PCL, LHFI 6,960 7,923 7,585 ) -12.2 % ) -8.2 %
PCL, LHFI sale of 1-4 family mortgage loans — — — n/m n/m
Charge-offs, sale of 1-4 family mortgage loans — — — n/m n/m
Charge-offs (7,730 ) (7,142 ) (4,250 ) ) -8.2 % ) -81.9 %
Recoveries 3,111 2,463 2,001 26.3 % 55.5 %
Net (charge-offs) recoveries (4,619 ) (4,679 ) (2,249 ) 1.3 % ) n/m
Ending Balance $ 160,270 $ 157,929 $ 139,367 1.5 % 15.0 %
NET (CHARGE-OFFS) RECOVERIES
Alabama $ (3,608 ) $ (3,098 ) $ (299 ) ) -16.5 % ) n/m
Florida 8 595 180 ) -98.7 % ) -95.6 %
Mississippi (1) (1,319 ) (1,881 ) (1,943 ) 29.9 % 32.1 %
Tennessee (2) (208 ) (296 ) (193 ) 29.7 % ) -7.8 %
Texas 508 1 6 n/m n/m
Total net (charge-offs) recoveries $ (4,619 ) $ (4,679 ) $ (2,249 ) 1.3 % ) n/m
(1) Mississippi includes Central and Southern Mississippi Regions.
(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
Quarter Ended Year Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AVERAGE BALANCES 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Securities AFS-taxable $ 1,708,226 $ 1,658,999 $ 1,866,227 $ 1,927,619 $ 1,986,825 $ 1,789,685 $ 2,090,201
Securities AFS-nontaxable — — — — 4,246 — 4,657
Securities HTM-taxable 1,346,141 1,368,943 1,421,246 1,418,476 1,430,169 1,388,531 1,454,450
Securities HTM-nontaxable — — 112 340 340 112 1,854
Total securities 3,054,367 3,027,942 3,287,585 3,346,435 3,421,580 3,178,328 3,551,162
Loans (includes loans held for sale) 13,275,762 13,379,658 13,309,127 13,169,805 13,010,028 13,283,829 12,801,531
Other earning assets 422,083 607,928 592,735 571,329 670,598 548,336 729,673
Total earning assets 16,752,212 17,015,528 17,189,447 17,087,569 17,102,206 17,010,493 17,082,366
ACL LHFI (157,659 ) (154,476 ) (143,245 ) (138,711 ) (133,742 ) (148,564 ) (125,942 )
Other assets 1,627,890 1,646,241 1,740,307 1,730,521 1,749,069 1,685,971 1,718,058
Total assets $ 18,222,443 $ 18,507,293 $ 18,786,509 $ 18,679,379 $ 18,717,533 $ 18,547,900 $ 18,674,482
Interest-bearing demand deposits $ 5,493,700 $ 5,382,346 $ 5,222,369 $ 5,291,779 $ 5,053,935 $ 5,348,043 $ 4,871,977
Savings deposits 3,278,910 3,411,961 3,653,966 3,686,027 3,526,600 3,506,829 3,838,791
Time deposits 3,265,358 3,393,216 3,346,046 3,321,601 3,427,384 3,331,543 2,691,682
Total interest-bearing deposits 12,037,968 12,187,523 12,222,381 12,299,407 12,007,919 12,186,415 11,402,450
Fed funds purchased and repurchases 357,798 375,559 434,760 428,127 403,041 398,884 410,945
Other borrowings 218,244 339,417 534,350 463,459 590,765 388,266 984,315
Subordinated notes 123,666 123,611 123,556 123,501 123,446 123,584 123,364
Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 61,856 61,856
Total interest-bearing liabilities 12,799,532 13,087,966 13,376,903 13,376,350 13,187,027 13,159,005 12,982,930
Noninterest-bearing deposits 3,192,358 3,221,516 3,183,524 3,120,566 3,296,351 3,179,641 3,532,134
Other liabilities 257,990 274,563 498,593 505,942 641,662 383,627 589,320
Total liabilities 16,249,880 16,584,045 17,059,020 17,002,858 17,125,040 16,722,273 17,104,384
Shareholders' equity 1,972,563 1,923,248 1,727,489 1,676,521 1,592,493 1,825,627 1,570,098
Total liabilities and equity $ 18,222,443 $ 18,507,293 $ 18,786,509 $ 18,679,379 $ 18,717,533 $ 18,547,900 $ 18,674,482

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
PERIOD END BALANCES 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Cash and due from banks $ 567,251 $ 805,436 $ 822,141 $ 606,061 $ 975,343
Fed funds sold and reverse repurchases — 10,000 — — —
Securities available for sale 1,692,534 1,725,795 1,621,659 1,702,299 1,762,878
Securities held to maturity 1,335,385 1,358,358 1,380,487 1,415,025 1,426,279
LHFS 200,307 216,454 185,698 172,937 184,812
LHFI 13,089,942 13,100,111 13,155,418 13,057,943 12,950,524
ACL LHFI (160,270 ) (157,929 ) (154,685 ) (142,998 ) (139,367 )
Net LHFI 12,929,672 12,942,182 13,000,733 12,914,945 12,811,157
Premises and equipment, net 235,410 236,151 232,681 232,630 232,229
Mortgage servicing rights 139,317 125,853 136,658 138,044 131,870
Goodwill 334,605 334,605 334,605 334,605 334,605
Identifiable intangible assets 126 153 181 208 236
Other real estate 5,917 3,920 6,586 7,620 6,867
Operating lease right-of-use assets 34,668 36,034 36,925 34,324 35,711
Other assets 677,230 685,431 694,133 744,821 752,568
Assets of discontinued operations — — — 73,093 67,634
Total assets $ 18,152,422 $ 18,480,372 $ 18,452,487 $ 18,376,612 $ 18,722,189
Deposits:
Noninterest-bearing $ 3,073,565 $ 3,142,792 $ 3,153,506 $ 3,039,652 $ 3,197,620
Interest-bearing 12,034,610 12,098,143 12,309,382 12,298,905 12,372,143
Total deposits 15,108,175 15,240,935 15,462,888 15,338,557 15,569,763
Fed funds purchased and repurchases 324,008 365,643 314,121 393,215 405,745
Other borrowings 301,541 443,458 336,687 482,027 483,230
Subordinated notes 123,702 123,647 123,592 123,537 123,482
Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856
ACL on off-balance sheet credit exposures 29,392 28,890 30,265 33,865 34,057
Operating lease liabilities 38,698 39,689 40,517 37,792 39,097
Other liabilities 202,723 196,158 203,420 207,583 331,085
Liabilities of discontinued operations — — — 15,581 12,027
Total liabilities 16,190,095 16,500,276 16,573,346 16,694,013 17,060,342
Common stock 12,711 12,753 12,753 12,747 12,725
Capital surplus 157,899 163,156 161,834 160,521 159,688
Retained earnings 1,875,376 1,833,232 1,796,111 1,736,485 1,709,157
Accumulated other comprehensive income (loss), <br>   net of tax (83,659 ) (29,045 ) (91,557 ) (227,154 ) (219,723 )
Total shareholders' equity 1,962,327 1,980,096 1,879,141 1,682,599 1,661,847
Total liabilities and equity $ 18,152,422 $ 18,480,372 $ 18,452,487 $ 18,376,612 $ 18,722,189

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands except per share data)
(unaudited)
Quarter Ended Year Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
INCOME STATEMENTS 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Interest and fees on LHFS & LHFI-FTE $ 211,019 $ 220,433 $ 216,399 $ 209,456 $ 210,288 $ 857,307 $ 788,719
Interest on securities-taxable 26,196 26,162 17,929 15,634 15,936 85,921 66,100
Interest on securities-tax exempt-FTE — — 1 4 44 5 263
Other interest income 5,128 8,302 8,126 8,111 9,920 29,667 37,215
Total interest income-FTE 242,343 254,897 242,455 233,205 236,188 972,900 892,297
Interest on deposits 75,941 86,043 83,681 83,716 80,847 329,381 245,951
Interest on fed funds purchased and repurchases 4,036 4,864 5,663 5,591 5,347 20,154 20,419
Other interest expense 3,922 5,971 8,778 7,703 9,946 26,374 59,584
Total interest expense 83,899 96,878 98,122 97,010 96,140 375,909 325,954
Net interest income-FTE 158,444 158,019 144,333 136,195 140,048 596,991 566,343
PCL, LHFI 6,960 7,923 14,696 7,708 7,585 37,287 27,362
PCL, off-balance sheet credit exposures 502 (1,375 ) (3,600 ) (192 ) (888 ) (4,665 ) (2,781 )
PCL, LHFI sale of 1-4 family mortgage loans — — 8,633 — — 8,633 —
Net interest income after provision-FTE 150,982 151,471 124,604 128,679 133,351 555,736 541,762
Service charges on deposit accounts 11,228 11,272 10,924 10,958 11,311 44,382 43,416
Bank card and other fees 8,717 7,931 9,225 7,428 8,502 33,301 33,439
Mortgage banking, net 7,388 6,119 4,204 8,915 5,519 26,626 26,216
Wealth management 9,319 9,288 9,692 8,952 8,657 37,251 35,092
Other, net 4,298 2,952 7,461 3,102 2,577 17,813 10,231
Securities gains (losses), net — — (182,792 ) — 39 (182,792 ) 39
Total noninterest income (loss) 40,950 37,562 (141,286 ) 39,355 36,605 (23,419 ) 148,433
Salaries and employee benefits 69,223 66,691 64,838 65,487 69,326 266,239 268,270
Services and fees 26,692 25,724 24,743 24,431 27,478 101,590 107,805
Net occupancy-premises 7,195 7,398 7,265 7,270 7,144 29,128 28,507
Equipment expense 6,208 6,141 6,241 6,325 6,457 24,915 25,844
Litigation settlement expense — — — — — — 6,500
Other expense 15,112 17,316 15,239 16,151 15,790 63,818 58,770
Total noninterest expense 124,430 123,270 118,326 119,664 126,195 485,690 495,696
Income (loss) from continuing operations <br>   (cont. ops) before income taxes and tax eq adj 67,502 65,763 (135,008 ) 48,370 43,761 46,627 194,499
Tax equivalent adjustment 2,596 3,305 3,304 3,365 3,306 12,570 13,465
Income (loss) from cont. ops before <br>   income taxes 64,906 62,458 (138,312 ) 45,005 40,455 34,057 181,034
Income taxes from cont. ops 8,594 11,128 (37,707 ) 6,832 6,567 (11,153 ) 27,744
Income (loss) from cont. ops 56,312 51,330 (100,605 ) 38,173 33,888 45,210 153,290
Income from discontinued operations <br>   (discont. ops) before income taxes — — 232,640 4,512 2,965 237,152 16,302
Income taxes from discont. ops — — 58,203 1,150 730 59,353 4,103
Income from discont. ops — — 174,437 3,362 2,235 177,799 12,199
Net income $ 56,312 $ 51,330 $ 73,832 $ 41,535 $ 36,123 $ 223,009 $ 165,489
Per share data (1)
Basic earnings (loss) per share from cont. ops $ 0.92 $ 0.84 $ (1.64 ) $ 0.62 $ 0.55 $ 0.74 $ 2.51
Basic earnings per share from discont. ops $ — $ — $ 2.85 $ 0.05 $ 0.04 $ 2.91 $ 0.20
Basic earnings per share - total $ 0.92 $ 0.84 $ 1.21 $ 0.68 $ 0.59 $ 3.65 $ 2.71
Diluted earnings (loss) per share from cont. ops $ 0.92 $ 0.84 $ (1.64 ) $ 0.62 $ 0.55 $ 0.74 $ 2.50
Diluted earnings per share from discont. ops $ — $ — $ 2.84 $ 0.05 $ 0.04 $ 2.90 $ 0.20
Diluted earnings per share - total $ 0.92 $ 0.84 $ 1.20 $ 0.68 $ 0.59 $ 3.63 $ 2.70
Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 $ 0.92
Weighted average shares outstanding
Basic 61,101,954 61,206,599 61,196,820 61,128,425 61,070,481 61,158,427 61,053,849
Diluted 61,367,825 61,448,410 61,415,957 61,348,364 61,296,840 61,384,221 61,230,621
Period end shares outstanding 61,008,023 61,206,606 61,205,969 61,178,366 61,071,173 61,008,023 61,071,173
(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
Quarter Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NONPERFORMING ASSETS 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023
Nonaccrual LHFI
Alabama $ 18,601 $ 25,835 $ 26,222 $ 23,261 $ 23,271
Florida 305 111 614 585 170
Mississippi (1) 42,203 31,536 14,773 59,059 54,615
Tennessee (2) 2,431 3,180 2,084 1,800 1,802
Texas 16,569 13,163 599 13,646 20,150
Total nonaccrual LHFI 80,109 73,825 44,292 98,351 100,008
Other real estate
Alabama 170 170 485 1,050 1,397
Florida — — — 71 —
Mississippi (1) 2,407 1,772 1,787 2,870 1,242
Tennessee (2) 1,079 — 86 86 —
Texas 2,261 1,978 4,228 3,543 4,228
Total other real estate 5,917 3,920 6,586 7,620 6,867
Total nonperforming assets $ 86,026 $ 77,745 $ 50,878 $ 105,971 $ 106,875
LOANS PAST DUE OVER 90 DAYS
LHFI $ 4,092 $ 5,352 $ 5,413 $ 5,243 $ 5,790
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase) $ 71,255 $ 63,703 $ 58,079 $ 56,530 $ 51,243
Quarter Ended Year Ended
ACL LHFI 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Beginning Balance $ 157,929 $ 154,685 $ 142,998 $ 139,367 $ 134,031 $ 139,367 $ 120,214
PCL, LHFI 6,960 7,923 14,696 7,708 7,585 37,287 27,362
PCL, LHFI sale of 1-4 family mortgage loans — — 8,633 — — 8,633 —
Charge-offs, sale of 1-4 family mortgage loans — — (8,633 ) — — (8,633 ) —
Charge-offs (7,730 ) (7,142 ) (5,120 ) (6,324 ) (4,250 ) (26,316 ) (17,515 )
Recoveries 3,111 2,463 2,111 2,247 2,001 9,932 9,306
Net (charge-offs) recoveries (4,619 ) (4,679 ) (11,642 ) (4,077 ) (2,249 ) (25,017 ) (8,209 )
Ending Balance $ 160,270 $ 157,929 $ 154,685 $ 142,998 $ 139,367 $ 160,270 $ 139,367
NET (CHARGE-OFFS) RECOVERIES
Alabama $ (3,608 ) $ (3,098 ) $ 59 $ (341 ) $ (299 ) $ (6,988 ) $ (873 )
Florida 8 595 4 277 180 884 130
Mississippi (1) (1,319 ) (1,881 ) (9,112 ) (1,489 ) (1,943 ) (13,801 ) (5,347 )
Tennessee (2) (208 ) (296 ) (122 ) (179 ) (193 ) (805 ) 1,644
Texas 508 1 (2,471 ) (2,345 ) 6 (4,307 ) (3,763 )
Total net (charge-offs) recoveries $ (4,619 ) $ (4,679 ) $ (11,642 ) $ (4,077 ) $ (2,249 ) $ (25,017 ) $ (8,209 )
(1) Mississippi includes Central and Southern Mississippi Regions.
(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
(unaudited)
Quarter Ended Year Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
FINANCIAL RATIOS AND OTHER DATA 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Return on average equity from continuing operations 11.36 % 10.62 % -23.42 % 9.16 % 8.44 % 2.48 % 9.76 %
Return on average equity from adjusted <br>   continuing operations (1) 11.36 % 10.62 % 9.06 % 9.16 % 8.68 % 10.34 % 10.17 %
Return on average equity - total 11.36 % 10.62 % 17.19 % 9.96 % 9.00 % 12.22 % 10.54 %
Return on average tangible equity from <br>   continuing operations 13.68 % 12.86 % -29.05 % 11.45 % 10.70 % 3.04 % 12.43 %
Return on average tangible equity from adjusted <br>   continuing operations (1) 13.68 % 12.86 % 11.14 % 11.45 % 10.98 % 12.71 % 12.95 %
Return on average tangible equity - total 13.68 % 12.86 % 21.91 % 12.98 % 11.92 % 15.20 % 14.04 %
Return on average assets from continuing operations 1.23 % 1.10 % -2.16 % 0.83 % 0.72 % 0.24 % 0.82 %
Return on average assets from adjusted <br>   continuing operations (1) 1.23 % 1.10 % 0.87 % 0.83 % 0.74 % 1.01 % 0.86 %
Return on average assets - total 1.23 % 1.10 % 1.58 % 0.89 % 0.77 % 1.20 % 0.89 %
Interest margin - Yield - FTE 5.76 % 5.96 % 5.67 % 5.49 % 5.48 % 5.72 % 5.22 %
Interest margin - Cost 1.99 % 2.27 % 2.30 % 2.28 % 2.23 % 2.21 % 1.91 %
Net interest margin - FTE 3.76 % 3.69 % 3.38 % 3.21 % 3.25 % 3.51 % 3.32 %
Efficiency ratio (2) 61.77 % 60.99 % 63.81 % 66.90 % 69.76 % 63.26 % 67.26 %
Full-time equivalent employees 2,500 2,500 2,515 2,712 2,757
CREDIT QUALITY RATIOS
Net (recoveries) charge-offs (excl sale of <br>   1-4 family mortgage loans) / average loans 0.14 % 0.14 % 0.09 % 0.12 % 0.07 % 0.12 % 0.06 %
PCL, LHFI (excl PCL, LHFI sale of <br>    1-4 family mortgage loans) / average loans 0.21 % 0.24 % 0.44 % 0.24 % 0.23 % 0.28 % 0.21 %
Nonaccrual LHFI / (LHFI + LHFS) 0.60 % 0.55 % 0.33 % 0.74 % 0.76 %
Nonperforming assets / (LHFI + LHFS) 0.65 % 0.58 % 0.38 % 0.80 % 0.81 %
Nonperforming assets / (LHFI + LHFS <br>   + other real estate) 0.65 % 0.58 % 0.38 % 0.80 % 0.81 %
ACL LHFI / LHFI 1.22 % 1.21 % 1.18 % 1.10 % 1.08 %
ACL LHFI-commercial / commercial LHFI 1.10 % 1.08 % 1.05 % 0.93 % 0.85 %
ACL LHFI-consumer / consumer and <br>   home mortgage LHFI 1.62 % 1.64 % 1.59 % 1.63 % 1.81 %
ACL LHFI / nonaccrual LHFI 200.06 % 213.92 % 349.24 % 145.39 % 139.36 %
ACL LHFI / nonaccrual LHFI <br>   (excl individually analyzed loans) 341.20 % 497.27 % 840.20 % 235.29 % 249.31 %
CAPITAL RATIOS
Total equity / total assets 10.81 % 10.71 % 10.18 % 9.16 % 8.88 %
Tangible equity / tangible assets 9.13 % 9.07 % 8.52 % 7.47 % 7.22 %
Tangible equity / risk-weighted assets 10.86 % 10.97 % 10.18 % 8.83 % 8.76 %
Tier 1 leverage ratio 9.99 % 9.65 % 9.29 % 8.76 % 8.62 %
Common equity tier 1 capital ratio 11.54 % 11.30 % 10.92 % 10.12 % 10.04 %
Tier 1 risk-based capital ratio 11.94 % 11.70 % 11.31 % 10.51 % 10.44 %
Total risk-based capital ratio 13.97 % 13.71 % 13.29 % 12.42 % 12.29 %
STOCK PERFORMANCE
Market value-Close $ 35.37 $ 31.82 $ 30.04 $ 28.11 $ 27.88
Book value $ 32.17 $ 32.35 $ 30.70 $ 27.50 $ 27.21
Tangible book value $ 26.68 $ 26.88 $ 25.23 $ 22.03 $ 21.73
(1) Adjusted continuing operations excludes significant non-routine transactions. See Note 7 - Non-GAAP Financials Measures
in the Notes to the Consolidated Financials.
(2) See Note 7 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 1 - Significant Non-Routine Transactions

Trustmark completed the following significant non-routine transactions during the second quarter of 2024:

  • On May 31, 2024, Trustmark National Bank closed the sale of its wholly owned subsidiary, Fisher Brown Bottrell Insurance, Inc., (FBBI) to Marsh & McLennan Agency LLC, consistent with the terms as previously announced on April 23, 2024. Trustmark National Bank is a wholly owned subsidiary of Trustmark Corporation. Trustmark recognized a gain on the sale of $228.3 million ($171.2 million, net of taxes) in income from discontinued operations. The operations of FBBI are also included in discontinued operations for the current and prior periods.
  • Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income in securities gains (losses), net. Trustmark purchased $1.378 billion of available for sale securities with an average yield of 4.85%.
  • Trustmark sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at the time of selection totaling $56.2 million, which resulted in a loss of $13.4 million ($10.1 million, net of taxes). The portion of the loss related to credit totaled $8.6 million and was recorded as adjustments to charge-offs and the provision for credit losses. The noncredit-related portion of the loss totaled $4.8 million and was recorded to noninterest income in other, net.
  • On April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for any and all outstanding shares of Visa Class B-1 common stock (Visa B-1 shares). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that are validly tendered and accepted for exchange by Visa. TNB tendered its 38.7 thousand Visa B-1 shares, which was accepted by Visa. In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TNB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share. The Visa C shares that were received by TNB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and recorded to noninterest income in other, net during the second quarter of 2024. During the third quarter of 2024, TNB sold all of the Visa C shares for approximately the same carrying value at June 30, 2024. The Visa B-2 shares were recorded at their nominal carrying value.

Note 2 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities $ 202,669 $ 202,638 $ 172,955 $ 372,424 $ 372,368
U.S. Government agency obligations 38,807 19,335 — 5,594 5,792
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA 28,411 25,798 23,489 22,232 23,135
Issued by FNMA and FHLMC 1,070,538 1,105,310 1,060,869 1,129,521 1,176,798
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA — — — 79,099 86,074
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 352,109 372,714 364,346 93,429 98,711
Total securities available for sale $ 1,692,534 $ 1,725,795 $ 1,621,659 $ 1,702,299 $ 1,762,878
SECURITIES HELD TO MATURITY
U.S. Treasury securities $ 29,842 $ 29,648 $ 29,455 $ 29,261 $ 29,068
Obligations of states and political subdivisions — — — 340 340
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA 16,218 17,773 17,998 18,387 13,005
Issued by FNMA and FHLMC 423,372 436,177 449,781 461,457 469,593
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 123,685 131,348 138,951 146,447 154,466
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 742,268 743,412 744,302 759,133 759,807
Total securities held to maturity $ 1,335,385 $ 1,358,358 $ 1,380,487 $ 1,415,025 $ 1,426,279

At December 31, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $46.6 million.

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023
Loans secured by real estate:
Construction, land development and other land loans $ 1,417,148 $ 1,588,256 $ 1,638,972 $ 1,539,461 $ 1,510,679
Secured by 1-4 family residential properties 2,949,543 2,895,006 2,878,295 2,891,481 2,904,715
Secured by nonfarm, nonresidential properties 3,533,282 3,582,552 3,598,647 3,543,235 3,489,434
Other real estate secured 1,633,830 1,475,798 1,344,968 1,384,610 1,312,551
Commercial and industrial loans 1,840,722 1,767,079 1,880,607 1,922,711 1,922,910
Consumer loans 151,443 149,436 153,316 156,430 161,725
State and other political subdivision loans 969,836 996,002 1,053,015 1,052,844 1,088,466
Other loans and leases 594,138 645,982 607,598 567,171 560,044
LHFI 13,089,942 13,100,111 13,155,418 13,057,943 12,950,524
ACL LHFI (160,270 ) (157,929 ) (154,685 ) (142,998 ) (139,367 )
Net LHFI $ 12,929,672 $ 12,942,182 $ 13,000,733 $ 12,914,945 $ 12,811,157

The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region’s diversified mix of loans:

December 31, 2024
LHFI - COMPOSITION BY REGION Total Alabama Florida Georgia Mississippi <br>(Central and <br>Southern <br>Regions) Tennessee <br>(Memphis, TN and <br>Northern MS<br>Regions) Texas
Loans secured by real estate:
Construction, land development and other land loans $ 1,417,148 $ 584,880 $ 34,666 $ 102,765 $ 322,924 $ 42,571 $ 329,342
Secured by 1-4 family residential properties 2,949,543 153,836 59,418 — 2,610,722 85,913 39,654
Secured by nonfarm, nonresidential properties 3,533,282 1,023,992 192,212 74,794 1,481,810 126,296 634,178
Other real estate secured 1,633,830 815,394 1,646 — 387,663 1,144 427,983
Commercial and industrial loans 1,840,722 521,451 20,165 219,243 702,108 135,090 242,665
Consumer loans 151,443 21,663 7,926 — 94,973 14,782 12,099
State and other political subdivision loans 969,836 70,447 67,563 — 731,179 22,766 77,881
Other loans and leases 594,138 38,001 5,281 245,635 200,825 64,397 39,999
Loans $ 13,089,942 $ 3,229,664 $ 388,877 $ 642,437 $ 6,532,204 $ 492,959 $ 1,803,801
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots $ 60,977 $ 24,292 $ 6,498 $ 94 $ 20,100 $ 2,799 $ 7,194
Development 104,694 54,968 — — 18,008 12,275 19,443
Unimproved land 102,857 17,206 12,074 — 25,343 9,892 38,342
1-4 family construction 318,716 156,679 8,397 15,140 84,260 17,057 37,183
Other construction 829,904 331,735 7,697 87,531 175,213 548 227,180
Construction, land development and other land loans $ 1,417,148 $ 584,880 $ 34,666 $ 102,765 $ 322,924 $ 42,571 $ 329,342
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 3 – Loan Composition (continued)

December 31, 2024
Total Alabama Florida Georgia Mississippi <br>(Central and <br>Southern <br>Regions) Tennessee <br>(Memphis, TN and <br>Northern MS<br>Regions) Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail $ 309,752 $ 99,486 $ 21,718 $ — $ 93,786 $ 18,743 $ 76,019
Office 242,741 92,612 18,965 — 96,541 1,330 33,293
Hotel/motel 281,946 145,483 43,816 — 68,604 24,043 —
Mini-storage 145,027 33,789 1,598 6,537 90,748 616 11,739
Industrial 522,204 98,101 17,814 68,257 176,775 2,523 158,734
Health care 152,396 124,873 674 — 24,342 323 2,184
Convenience stores 23,627 2,658 399 — 12,693 207 7,670
Nursing homes/senior living 384,232 140,569 — — 143,539 4,186 95,938
Other 100,983 28,242 7,613 — 49,094 7,699 8,335
Total non-owner occupied loans 2,162,908 765,813 112,597 74,794 756,122 59,670 393,912
Owner-occupied:
Office 150,115 49,734 34,049 — 38,489 10,216 17,627
Churches 50,304 11,726 3,844 — 29,223 3,130 2,381
Industrial warehouses 176,506 12,582 8,323 — 48,821 12,489 94,291
Health care 121,319 10,786 8,064 — 83,381 2,195 16,893
Convenience stores 109,568 10,907 2,092 — 56,605 — 39,964
Retail 67,668 8,449 12,992 — 31,750 6,399 8,078
Restaurants 52,385 3,466 2,745 — 25,491 16,413 4,270
Auto dealerships 40,377 4,113 174 — 21,105 14,985 —
Nursing homes/senior living 480,393 130,474 — — 323,911 — 26,008
Other 121,739 15,942 7,332 — 66,912 799 30,754
Total owner-occupied loans 1,370,374 258,179 79,615 — 725,688 66,626 240,266
Loans secured by nonfarm, nonresidential properties $ 3,533,282 $ 1,023,992 $ 192,212 $ 74,794 $ 1,481,810 $ 126,296 $ 634,178

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Securities – taxable 3.41 % 3.44 % 2.19 % 1.88 % 1.85 % 2.70 % 1.86 %
Securities – nontaxable — — 3.59 % 4.73 % 3.81 % 4.46 % 4.04 %
Securities – total 3.41 % 3.44 % 2.19 % 1.88 % 1.85 % 2.70 % 1.87 %
LHFI & LHFS 6.32 % 6.55 % 6.54 % 6.40 % 6.41 % 6.45 % 6.16 %
Other earning assets 4.83 % 5.43 % 5.51 % 5.71 % 5.87 % 5.41 % 5.10 %
Total earning assets 5.76 % 5.96 % 5.67 % 5.49 % 5.48 % 5.72 % 5.22 %
Interest-bearing deposits 2.51 % 2.81 % 2.75 % 2.74 % 2.67 % 2.70 % 2.16 %
Fed funds purchased & repurchases 4.49 % 5.15 % 5.24 % 5.25 % 5.26 % 5.05 % 4.97 %
Other borrowings 3.86 % 4.53 % 4.91 % 4.78 % 5.08 % 4.60 % 5.09 %
Total interest-bearing liabilities 2.61 % 2.94 % 2.95 % 2.92 % 2.89 % 2.86 % 2.51 %
Total Deposits 1.98 % 2.22 % 2.18 % 2.18 % 2.10 % 2.14 % 1.65 %
Net interest margin 3.76 % 3.69 % 3.38 % 3.21 % 3.25 % 3.51 % 3.32 %
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities (continued)

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets.

The net interest margin increased 7 basis points when compared to the third quarter of 2024, totaling 3.76% for the fourth quarter of 2024, primarily due to decreased costs of interest-bearing liabilities which were partially offset by the decrease in the yield for the loans held for investment and held for sale portfolio.

Note 5 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $1.1 million during the fourth quarter of 2024.

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Mortgage servicing income, net $ 7,161 $ 7,127 $ 6,993 $ 6,934 $ 6,731 $ 28,215 $ 27,196
Change in fair value-MSR from runoff (3,118 ) (3,154 ) (3,447 ) (1,926 ) (2,972 ) (11,645 ) (10,030 )
Gain on sales of loans, net 4,470 4,648 5,151 5,009 3,913 19,278 15,345
Mortgage banking income before hedge <br>   ineffectiveness 8,513 8,621 8,697 10,017 7,672 35,848 32,511
Change in fair value-MSR from market changes 12,710 (10,406 ) (1,626 ) 5,123 (10,224 ) 5,801 (1,489 )
Change in fair value of derivatives (13,835 ) 7,904 (2,867 ) (6,225 ) 8,071 (15,023 ) (4,806 )
Net positive (negative) hedge ineffectiveness (1,125 ) (2,502 ) (4,493 ) (1,102 ) (2,153 ) (9,222 ) (6,295 )
Mortgage banking, net $ 7,388 $ 6,119 $ 4,204 $ 8,915 $ 5,519 $ 26,626 $ 26,216
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 6 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Partnership amortization for tax credit purposes $ (1,992 ) $ (1,977 ) $ (1,824 ) $ (1,834 ) $ (2,013 ) $ (7,627 ) $ (7,988 )
Increase in life insurance cash surrender value 1,891 1,883 1,860 1,844 1,825 7,478 7,018
Loss on sale of 1-4 family mortgage loans — — (4,798 ) — — (4,798 ) —
Visa C shares fair value adjustment — — 8,056 — — 8,056 —
Other miscellaneous income 4,399 3,046 4,167 3,092 2,765 14,704 11,201
Total other, net $ 4,298 $ 2,952 $ 7,461 $ 3,102 $ 2,577 $ 17,813 $ 10,231

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Other noninterest expense consisted of the following for the periods presented:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Loan expense $ 2,921 $ 2,824 $ 2,880 $ 2,955 $ 2,380 $ 11,580 $ 11,114
Amortization of intangibles 27 28 27 28 33 110 290
FDIC assessment expense 4,815 5,071 4,816 4,509 4,844 19,211 13,529
Other real estate expense, net (286 ) 2,452 327 671 (184 ) 3,164 119
Other miscellaneous expense 7,635 6,941 7,189 7,988 8,717 29,753 33,718
Total other expense $ 15,112 $ 17,316 $ 15,239 $ 16,151 $ 15,790 $ 63,818 $ 58,770

Note 7 – Non-GAAP Financial Measures

In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands except per share data)
(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity $ 1,972,563 $ 1,923,248 $ 1,727,489 $ 1,676,521 $ 1,592,493 $ 1,825,627 $ 1,570,098
Less: Goodwill (334,605 ) (334,605 ) (334,605 ) (334,605 ) (334,605 ) (334,605 ) (334,605 )
Identifiable intangible assets (141 ) (168 ) (195 ) (224 ) (253 ) (182 ) (325 )
Total average tangible equity $ 1,637,817 $ 1,588,475 $ 1,392,689 $ 1,341,692 $ 1,257,635 $ 1,490,840 $ 1,235,168
PERIOD END BALANCES
Total shareholders' equity $ 1,962,327 $ 1,980,096 $ 1,879,141 $ 1,682,599 $ 1,661,847
Less: Goodwill (334,605 ) (334,605 ) (334,605 ) (334,605 ) (334,605 )
Identifiable intangible assets (126 ) (153 ) (181 ) (208 ) (236 )
Total tangible equity (a) $ 1,627,596 $ 1,645,338 $ 1,544,355 $ 1,347,786 $ 1,327,006
TANGIBLE ASSETS
Total assets $ 18,152,422 $ 18,480,372 $ 18,452,487 $ 18,376,612 $ 18,722,189
Less: Goodwill (334,605 ) (334,605 ) (334,605 ) (334,605 ) (334,605 )
Identifiable intangible assets (126 ) (153 ) (181 ) (208 ) (236 )
Total tangible assets (b) $ 17,817,691 $ 18,145,614 $ 18,117,701 $ 18,041,799 $ 18,387,348
Risk-weighted assets (c) $ 14,990,258 $ 15,004,024 $ 15,165,038 $ 15,257,385 $ 15,153,263
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing operations $ 56,312 $ 51,330 $ (100,605 ) $ 38,173 $ 33,888 $ 45,210 $ 153,290
Plus: Intangible amortization net of tax from <br>   continuing operations 20 21 20 20 25 81 217
Net income (loss) adjusted for intangible amortization $ 56,332 $ 51,351 $ (100,585 ) $ 38,193 $ 33,913 $ 45,291 $ 153,507
Period end common shares outstanding (d) 61,008,023 61,206,606 61,205,969 61,178,366 61,071,173
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity from <br>   continuing operations (1) 13.68 % 12.86 % -29.05 % 11.45 % 10.70 % 3.04 % 12.43 %
Tangible equity/tangible assets (a)/(b) 9.13 % 9.07 % 8.52 % 7.47 % 7.22 %
Tangible equity/risk-weighted assets (a)/(c) 10.86 % 10.97 % 10.18 % 8.83 % 8.76 %
Tangible book value (a)/(d)*1,000 $ 26.68 $ 26.88 $ 25.23 $ 22.03 $ 21.73
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity $ 1,962,327 $ 1,980,096 $ 1,879,141 $ 1,682,599 $ 1,661,847
CECL transition adjustment 6,500 6,500 6,500 6,500 13,000
AOCI-related adjustments 83,659 29,045 91,557 227,154 219,723
CET1 adjustments and deductions:
Goodwill net of associated deferred <br>   tax liabilities (DTLs) (320,756 ) (320,757 ) (320,758 ) (370,205 ) (370,212 )
Other adjustments and deductions <br>   for CET1 (2) (2,058 ) (115 ) (847 ) (2,588 ) (2,693 )
CET1 capital (e) 1,729,672 1,694,769 1,655,593 1,543,460 1,521,665
Additional tier 1 capital instruments <br>   plus related surplus 60,000 60,000 60,000 60,000 60,000
Tier 1 capital $ 1,789,672 $ 1,754,769 $ 1,715,593 $ 1,603,460 $ 1,581,665
Common equity tier 1 capital ratio (e)/(c) 11.54 % 11.30 % 10.92 % 10.12 % 10.04 %
  • Calculation = ((net income (loss) adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
  • Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands except per share data)
(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents pre-provision net revenue (PPNR) during the periods presented:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Net interest income (GAAP) (a) $ 155,848 $ 154,714 $ 141,029 $ 132,830 $ 136,742 $ 584,421 $ 552,878
Noninterest income (loss) (GAAP) 40,950 37,562 (141,286 ) 39,355 36,605 (23,419 ) 148,433
Add: Loss on sale of 1-4 family mortgage loans (incl in Other, net) — — 4,798 — — 4,798 —
Visa C shares fair value adjustment (incl in Other, net) — — (8,056 ) — — (8,056 ) —
Securities (gains) losses, net — — 182,792 — — 182,792 —
Noninterest income from adjusted continuing<br>   operations (Non-GAAP) (b) $ 40,950 $ 37,562 $ 38,248 $ 39,355 $ 36,605 $ 156,115 $ 148,433
Adjusted pre-provision revenue (a)+(b)=(c) $ 196,798 $ 192,276 $ 179,277 $ 172,185 $ 173,347 $ 740,536 $ 701,311
Noninterest expense (GAAP) $ 124,430 $ 123,270 $ 118,326 $ 119,664 $ 126,195 $ 485,690 $ 495,696
Less: Reduction in force expense (incl in Salaries and employee benefits) — — — — (1,406 ) — (1,406 )
Litigation settlement expense — — — — — — (6,500 )
Noninterest expense from adjusted continuing <br>   operations (Non-GAAP) (d) $ 124,430 $ 123,270 $ 118,326 $ 119,664 $ 124,789 $ 485,690 $ 487,790
PPNR (Non-GAAP) (c)-(d) $ 72,368 $ 69,006 $ 60,951 $ 52,521 $ 48,558 $ 254,846 $ 213,521
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

The following table presents adjustments to net income (loss) from continuing operations and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Net income (loss) (GAAP) from continuing operations $ 56,312 $ 51,330 $ (100,605 ) $ 38,173 $ 33,888 $ 45,210 $ 153,290
Significant non-routine transactions (net of taxes):
PCL, LHFI sale of nonperforming 1-4 family — — 6,475 — — 6,475 —
Loss on sale of 1-4 family mortgage loans — — 3,598 — — 3,598 —
Visa C shares fair value adjustment — — (6,042 ) — — (6,042 ) —
Securities gains (losses), net — — 137,094 — — 137,094 —
Reduction in force expense — — — — 1,055 — 1,055
Litigation settlement expense — — — — — — 4,875
Net income adjusted for significant non-routine <br>   transactions (Non-GAAP) $ 56,312 $ 51,330 $ 40,520 $ 38,173 $ 34,943 $ 186,335 $ 159,220
Diluted EPS from adjusted continuing operations $ 0.92 $ 0.84 $ 0.66 $ 0.62 $ 0.57 $ 3.04 $ 2.60
FINANCIAL RATIOS - REPORTED (GAAP)
Return on average equity from continuing operations 11.36 % 10.62 % -23.42 % 9.16 % 8.44 % 2.48 % 9.76 %
Return on average tangible equity from continuing operations 13.68 % 12.86 % -29.05 % 11.45 % 10.70 % 3.04 % 12.43 %
Return on average assets from continuing operations 1.23 % 1.10 % -2.16 % 0.83 % 0.72 % 0.24 % 0.82 %
FINANCIAL RATIOS - ADJUSTED (NON-GAAP)
Return on average equity from adjusted continuing operations 11.36 % 10.62 % 9.06 % 9.16 % 8.68 % 10.34 % 10.17 %
Return on average tangible equity from adjusted <br>   continuing operations 13.68 % 12.86 % 11.14 % 11.45 % 10.98 % 12.71 % 12.95 %
Return on average assets from adjusted continuing operations 1.23 % 1.10 % 0.87 % 0.83 % 0.74 % 1.01 % 0.86 %
TRUSTMARK CORPORATION AND SUBSIDIARIES
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NOTES TO CONSOLIDATED FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:

Quarter Ended Year Ended
12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023
Total noninterest expense (GAAP) $ 124,430 $ 123,270 $ 118,326 $ 119,664 $ 126,195 $ 485,690 $ 495,696
Less: Other real estate expense, net 286 (2,452 ) (327 ) (671 ) 184 (3,164 ) (119 )
Amortization of intangibles (27 ) (28 ) (27 ) (28 ) (33 ) (110 ) (290 )
Charitable contributions resulting in <br>   state tax credits (300 ) (300 ) (300 ) (300 ) (325 ) (1,200 ) (1,300 )
Reduction in force expense — — — — (1,406 ) — (1,406 )
Litigation settlement expense — — — — — — (6,500 )
Adjusted noninterest expense (Non-GAAP) (c) $ 124,389 $ 120,490 $ 117,672 $ 118,665 $ 124,615 $ 481,216 $ 486,081
Net interest income (GAAP) $ 155,848 $ 154,714 $ 141,029 $ 132,830 $ 136,742 $ 584,421 $ 552,878
Add: Tax equivalent adjustment 2,596 3,305 3,304 3,365 3,306 12,570 13,465
Net interest income-FTE (Non-GAAP) (a) $ 158,444 $ 158,019 $ 144,333 $ 136,195 $ 140,048 $ 596,991 $ 566,343
Noninterest income (loss) (GAAP) $ 40,950 $ 37,562 $ (141,286 ) $ 39,355 $ 36,605 $ (23,419 ) $ 148,433
Add: Partnership amortization for tax credit purposes 1,992 1,977 1,824 1,834 2,013 7,627 7,988
Loss on sale of 1-4 family mortgage loans — — 4,798 — — 4,798 —
Securities (gains) losses, net — — 182,792 — (39 ) 182,792 (39 )
Less: Visa C shares fair value adjustment — — (8,056 ) — — (8,056 ) —
Adjusted noninterest income (Non-GAAP) (b) $ 42,942 $ 39,539 $ 40,072 $ 41,189 $ 38,579 $ 163,742 $ 156,382
Adjusted revenue (Non-GAAP) (a)+(b) $ 201,386 $ 197,558 $ 184,405 $ 177,384 $ 178,627 $ 760,733 $ 722,725
Efficiency ratio (Non-GAAP) (c)/((a)+(b)) 61.77 % 60.99 % 63.81 % 66.90 % 69.76 % 63.26 % 67.26 %

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