8-K
TRUSTMARK CORP (TRMK)
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
April 22, 2025
Date of Report (Date of earliest event reported)
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 April 22, 2025, Trustmark Corporation issued a press release announcing its financial results for the period ended March 31, 2025. 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 March 31, 2025 |
| 99.2 | Investor slide presentation for the period ended March 31, 2025 |
| 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: | April 22, 2025 |
EX-99.1
Exhibit 99.1
| News Release |
|---|
Trustmark Corporation Announces First Quarter 2025 Financial Results
Strong Performance reflects Continued Loan Growth, Stable Credit Quality,
Expanded Fee Income, and Lower Noninterest Expense
JACKSON, Miss. – April 22, 2025 – Trustmark Corporation (NASDAQGS:TRMK) reported net income of $53.6 million in the first quarter of 2025, representing diluted earnings per share of $0.88. Trustmark’s performance during the first quarter produced a return on average tangible equity of 13.13% and a return on average assets of 1.19%. The Board of Directors declared a quarterly cash dividend of $0.24 per share payable June 15, 2025, to shareholders of record on June 1, 2025.
First Quarter Highlights
- Loans held for investment (HFI) increased 1.2% linked-quarter and represented 87.8% of total deposits at March 31, 2025
- Credit quality remained stable, ACL coverage ratios expanded, net charge-offs represented 0.04% of average loans
- Deposits remained stable at $15.1 billion while cost of total deposits declined 15 basis points
- Noninterest income increased 4.0% linked-quarter, reflecting the strength of diversified business lines
- Noninterest expense decreased 0.3% linked-quarter, reflecting on-going expense management priorities
Duane A. Dewey, President and CEO, stated, “We continued to build upon the strong momentum from 2024 and are pleased with our solid performance in the first quarter of 2025. Our results reflect continued loan growth, stable credit quality, and an attractive core deposit base. In addition, we experienced continued growth in noninterest income while noninterest expense decreased. These accomplishments are the results of our continued efforts to expand customer relationships and diligently manage expenses. We are particularly pleased to have received a Community Reinvestment Act (CRA) rating of Outstanding, the highest rating possible. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as a trusted financial partner.”
“We are operating in a dynamic and challenging economic environment that is ever-changing. With robust capital, liquidity, and profitability, Trustmark is well-positioned to help customers navigate this evolving landscape,” said Dewey.
Balance Sheet Management
- Loans HFI increased $151.5 million, or 1.2%, during the quarter and $183.5 million, or 1.4%, year-over-year
- Personal and commercial deposits totaled $12.9 billion at March 31, 2025, up $7.1 million, or 0.1%, from the prior quarter and $394.4 million, or 3.2%, year-over-year
- Maintained strong capital position with CET1 ratio of 11.63% and total risk-based capital ratio of 14.10%
Loans HFI totaled $13.2 billion at March 31, 2025, reflecting an increase of $151.5 million, or 1.2%, linked-quarter and $183.5 million, or 1.4%, year-over-year. The linked-quarter growth reflected increases in commercial real estate (CRE), other commercial loans and leases, and 1-4 family mortgage loans offset in part by a decrease in commercial and industrial loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.
Deposits totaled $15.1 billion at March 31, 2025, down $27.5 million, or 0.2%, from the prior quarter, driven by the decline in public deposits of $61.8 million. Year-over-year, deposits declined $257.9 million, or 1.7%, driven by targeted declines in public funds and brokered deposits of $343.2 million and $309.5 million, respectively. Trustmark continues to maintain a strong liquidity position as loans HFI represented 87.8% of total deposits at the end of the first quarter. Noninterest-bearing deposits represented 20.4% of total deposits at March 31, 2025. Interest-bearing deposit costs totaled 2.30% for the first quarter, a decrease of 21 basis points linked-quarter. The total cost of interest-bearing liabilities was 2.43% in the first quarter of 2025, a decrease of 18 basis points from the prior quarter.
During the first quarter, Trustmark repurchased $15.0 million, or approximately 423 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 March 31, 2025, Trustmark’s tangible equity to tangible assets ratio was 9.39%, while the total risk-based capital ratio was 14.10%. Tangible book value per share was $27.78 at March 31, 2025, an increase of 4.1% from the prior quarter and 26.1% from the prior year.
Credit Quality
- Net charge-offs totaled $1.4 million, representing 0.04% of average loans in the first quarter
- Net provision for credit losses was $5.3 million in the first quarter
- Allowance for credit losses (ACL) represented 1.26% of loans HFI, up 4 basis points linked-quarter, and 296.41% of nonaccrual loans, excluding individually analyzed loans at March 31, 2025
Nonaccrual loans totaled $86.6 million at March 31, 2025, up $6.5 million from the prior quarter and a decrease of $11.7 million year-over-year. Other real estate totaled $8.3 million, reflecting increases of $2.4 million and $728 thousand from the prior quarter and prior year, respectively. Collectively, nonperforming assets totaled $95.0 million, representing 0.71% of loans HFI and held for sale (HFS) at March 31, 2025.
The provision for credit losses for loans HFI was $8.1 million in the first quarter and was primarily attributable to loan growth, changes in the macroeconomic forecast, and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was a negative $2.8 million in the first quarter, primarily driven by a reduction in unfunded CRE commitments and changes in the macroeconomic forecast. Collectively, the provision for credit losses totaled $5.3 million in the first quarter compared to $7.5 million in the prior quarter and $7.5 million in the first quarter of 2024.
Allocation of Trustmark’s $167.0 million ACL on loans HFI represented 1.11% of commercial loans and 1.76% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.26% at March 31, 2025, up 4 basis points from the prior quarter. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.
Revenue Generation
- Net interest income (FTE) totaled $154.7 million in the first quarter, down 2.3% linked-quarter
- Net interest margin totaled 3.75% in the first quarter, down 1 basis point from the prior quarter
- Noninterest income totaled $42.6 million, up 4.0% from the prior quarter, representing 21.9% of total revenue in the first quarter
Revenue in the first quarter totaled $194.6 million, a decrease of 1.1% from the prior quarter and an increase of 13.0% from the same quarter in the prior year. The linked-quarter decrease primarily reflects lower net interest income offset in part by higher noninterest income while the year-over-year increase is attributed to higher net interest income and noninterest income.
Net interest income (FTE) in the first quarter totaled $154.7 million, resulting in a net interest margin of 3.75%, down 1 basis point from the prior quarter. The net interest margin was relatively flat as the decrease in the cost of interest-bearing liabilities was offset by the decrease in yield for the loans HFI and held for sale portfolio.
Noninterest income in the first quarter totaled $42.6 million, an increase of $1.6 million, or 4.0%, from the prior quarter and $3.2 million, or 8.2%, year-over-year. The linked-quarter increases in other income net, mortgage banking, net, and wealth management revenue were offset in part by seasonal declines in bank card and other fees and service charges on deposit accounts. The growth in noninterest income year-over-year reflects increases in other income, net, wealth management revenue, and bank card and other fees, which were offset in part by declines in service charges on deposit accounts and mortgage banking, net.
Mortgage loan production in the first quarter totaled $318.8 million, down 14.4% from the prior quarter and up 16.4% year-over-year. Mortgage banking revenue totaled $8.8 million in the first quarter, an increase of $1.4 million, or 18.7%, linked-quarter and a decline of $144 thousand, or 1.6%, year-over-year. The linked-quarter increase was principally attributable to reduced servicing asset amortization and improvement in net hedge ineffectiveness. The year-over-year decrease was principally due to lower gain on sale of mortgage loans offset in part by improvement in net hedge ineffectiveness.
Wealth management revenue in the first quarter totaled $9.5 million, an increase of $224 thousand, or 2.4%, from the prior quarter and $591 thousand, or 6.6%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year growth reflected increased trust management revenue and brokerage revenue.
Other income, net totaled $6.0 million in the first quarter, up $1.7 million from the prior quarter and $2.9 million year-over-year. The linked-quarter increase includes a $2.4 million gain on the sale of a bank office facility. Service charges on deposit accounts totaled $10.6 million in the first quarter, reflecting a seasonal decrease of $592 thousand, or 5.3%, from the prior quarter and a decrease of $322 thousand, or 2.9%, year-over-year. Bank card and other fees totaled $7.7 million in the first quarter, down $1.1 million from the prior quarter due principally to lower customer derivative revenue and a seasonal decline in interchange income. Year-over-year, bank card and other fees increased $236 thousand.
Noninterest Expense
- Total noninterest expense declined $419 thousand, or 0.3%, linked-quarter
- Salaries and employee benefits expense declined $731 thousand, or 1.1%, linked-quarter
- Total services and fees declined $445 thousand, or 1.7%, linked-quarter
Noninterest expense in the first quarter totaled $124.0 million, a decrease of $419 thousand, or 0.3%, from the prior quarter and an increase of $4.3 million, or 3.6%, year-over-year. Salaries and employee benefits expense totaled $68.5 million in the first quarter, a decline of $731 thousand, or 1.1%, linked-quarter and an increase of $3.0 million, or 4.6%, year-over-year. The linked-quarter decline reflected reductions in incentives, commissions and employee benefits which were offset in part by a seasonal increase in payroll taxes. Services and fees in the first quarter totaled $26.2 million, a decrease of $445 thousand, or 1.7%, from the prior quarter and an increase of $1.8 million, or 7.4%, year-over-year. The linked-quarter decline is attributable principally to lower professional fees and data processing expense. Total other expense was $15.6 million, an increase of $467 thousand, or 3.1%, linked-quarter and a decrease of $572 thousand, or 3.5%, year-over-year. The linked-quarter increase is attributable to other real estate expense, a valuation adjustment on branch property held for sale, and other miscellaneous expense offset in part by a decrease in FDIC assessment expense.
Additional Information
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 23, 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, May 7, 2025, in archived format at the same web address or by calling (877)344-7529, passcode 6656565.
Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas.
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, potential market or regulatory effects of the new presidential administration’s policies 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 | |||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Linked Quarter | Year over Year | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| QUARTERLY AVERAGE BALANCES | 3/31/2025 | 12/31/2024 | 3/31/2024 | Change | % Change | Change | % Change | ||||||||||||
| Securities AFS-taxable | $ | 1,726,291 | $ | 1,708,226 | $ | 1,927,619 | 1.1 | % | ) | -10.4 | % | ||||||||
| Securities AFS-nontaxable | — | — | — | n/m | n/m | ||||||||||||||
| Securities HTM-taxable | 1,325,185 | 1,346,141 | 1,418,476 | ) | -1.6 | % | ) | -6.6 | % | ||||||||||
| Securities HTM-nontaxable | — | — | 340 | n/m | ) | -100.0 | % | ||||||||||||
| Total securities | 3,051,476 | 3,054,367 | 3,346,435 | ) | -0.1 | % | ) | -8.8 | % | ||||||||||
| Loans (includes loans held for sale) | 13,320,276 | 13,275,762 | 13,169,805 | 0.3 | % | 1.1 | % | ||||||||||||
| Other earning assets | 365,505 | 422,083 | 571,329 | ) | -13.4 | % | ) | -36.0 | % | ||||||||||
| Total earning assets | 16,737,257 | 16,752,212 | 17,087,569 | ) | -0.1 | % | ) | -2.1 | % | ||||||||||
| Allowance for credit losses (ACL), loans held <br> for investment (LHFI) | (159,893 | ) | (157,659 | ) | (138,711 | ) | ) | -1.4 | % | ) | -15.3 | % | |||||||
| Other assets | 1,624,581 | 1,627,890 | 1,730,521 | ) | -0.2 | % | ) | -6.1 | % | ||||||||||
| Total assets | $ | 18,201,945 | $ | 18,222,443 | $ | 18,679,379 | ) | -0.1 | % | ) | -2.6 | % | |||||||
| Interest-bearing demand deposits (1) | $ | 7,789,239 | $ | 7,789,318 | $ | 7,932,943 | ) | 0.0 | % | ) | -1.8 | % | |||||||
| Savings deposits (1) | 993,232 | 983,292 | 1,044,863 | 1.0 | % | ) | -4.9 | % | |||||||||||
| Time deposits | 3,160,134 | 3,265,358 | 3,321,601 | ) | -3.2 | % | ) | -4.9 | % | ||||||||||
| Total interest-bearing deposits | 11,942,605 | 12,037,968 | 12,299,407 | ) | -0.8 | % | ) | -2.9 | % | ||||||||||
| Fed funds purchased and repurchases | 405,189 | 357,798 | 428,127 | 13.2 | % | ) | -5.4 | % | |||||||||||
| Other borrowings | 344,040 | 218,244 | 463,459 | 57.6 | % | ) | -25.8 | % | |||||||||||
| Subordinated notes | 123,721 | 123,666 | 123,501 | 0.0 | % | 0.2 | % | ||||||||||||
| Junior subordinated debt securities | 61,856 | 61,856 | 61,856 | 0.0 | % | 0.0 | % | ||||||||||||
| Total interest-bearing liabilities | 12,877,411 | 12,799,532 | 13,376,350 | 0.6 | % | ) | -3.7 | % | |||||||||||
| Noninterest-bearing deposits | 3,055,333 | 3,192,358 | 3,120,566 | ) | -4.3 | % | ) | -2.1 | % | ||||||||||
| Other liabilities | 277,647 | 257,990 | 505,942 | 7.6 | % | ) | -45.1 | % | |||||||||||
| Total liabilities | 16,210,391 | 16,249,880 | 17,002,858 | ) | -0.2 | % | ) | -4.7 | % | ||||||||||
| Shareholders' equity | 1,991,554 | 1,972,563 | 1,676,521 | 1.0 | % | 18.8 | % | ||||||||||||
| Total liabilities and equity | $ | 18,201,945 | $ | 18,222,443 | $ | 18,679,379 | ) | -0.1 | % | ) | -2.6 | % | |||||||
| (1) During the first quarter of 2025, Trustmark ceased the daily sweep between low transaction interest-bearing demand deposits to savings deposits. Prior periods have been reclassified accordingly. | |||||||||||||||||||
| 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 | |||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Linked Quarter | Year over Year | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| PERIOD END BALANCES | 3/31/2025 | 12/31/2024 | 3/31/2024 | Change | % Change | Change | % Change | ||||||||||||
| Cash and due from banks | $ | 587,362 | $ | 567,251 | $ | 606,061 | 3.5 | % | ) | -3.1 | % | ||||||||
| Fed funds sold and reverse repurchases | — | — | — | n/m | n/m | ||||||||||||||
| Securities available for sale | 1,737,462 | 1,692,534 | 1,702,299 | 2.7 | % | 2.1 | % | ||||||||||||
| Securities held to maturity | 1,315,053 | 1,335,385 | 1,415,025 | ) | -1.5 | % | ) | -7.1 | % | ||||||||||
| Loans held for sale (LHFS) | 188,689 | 200,307 | 172,937 | ) | -5.8 | % | 9.1 | % | |||||||||||
| Loans held for investment (LHFI) | 13,241,469 | 13,089,942 | 13,057,943 | 1.2 | % | 1.4 | % | ||||||||||||
| ACL LHFI | (167,010 | ) | (160,270 | ) | (142,998 | ) | ) | -4.2 | % | ) | -16.8 | % | |||||||
| Net LHFI | 13,074,459 | 12,929,672 | 12,914,945 | 1.1 | % | 1.2 | % | ||||||||||||
| Premises and equipment, net | 231,202 | 235,410 | 232,630 | ) | -1.8 | % | ) | -0.6 | % | ||||||||||
| Mortgage servicing rights | 134,395 | 139,317 | 138,044 | ) | -3.5 | % | ) | -2.6 | % | ||||||||||
| Goodwill | 334,605 | 334,605 | 334,605 | 0.0 | % | 0.0 | % | ||||||||||||
| Identifiable intangible assets | 95 | 126 | 208 | ) | -24.6 | % | ) | -54.3 | % | ||||||||||
| Other real estate | 8,348 | 5,917 | 7,620 | 41.1 | % | 9.6 | % | ||||||||||||
| Operating lease right-of-use assets | 33,861 | 34,668 | 34,324 | ) | -2.3 | % | ) | -1.3 | % | ||||||||||
| Other assets | 650,672 | 677,230 | 744,821 | ) | -3.9 | % | ) | -12.6 | % | ||||||||||
| Assets of discontinued operations | — | — | 73,093 | n/m | ) | -100.0 | % | ||||||||||||
| Total assets | $ | 18,296,203 | $ | 18,152,422 | $ | 18,376,612 | 0.8 | % | ) | -0.4 | % | ||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | $ | 3,069,929 | $ | 3,073,565 | $ | 3,039,652 | ) | -0.1 | % | 1.0 | % | ||||||||
| Interest-bearing | 12,010,775 | 12,034,610 | 12,298,905 | ) | -0.2 | % | ) | -2.3 | % | ||||||||||
| Total deposits | 15,080,704 | 15,108,175 | 15,338,557 | ) | -0.2 | % | ) | -1.7 | % | ||||||||||
| Fed funds purchased and repurchases | 360,080 | 324,008 | 393,215 | 11.1 | % | ) | -8.4 | % | |||||||||||
| Other borrowings | 404,815 | 301,541 | 482,027 | 34.2 | % | ) | -16.0 | % | |||||||||||
| Subordinated notes | 123,757 | 123,702 | 123,537 | 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 | 26,561 | 29,392 | 33,865 | ) | -9.6 | % | ) | -21.6 | % | ||||||||||
| Operating lease liabilities | 37,917 | 38,698 | 37,792 | ) | -2.0 | % | 0.3 | % | |||||||||||
| Other liabilities | 179,286 | 202,723 | 207,583 | ) | -11.6 | % | ) | -13.6 | % | ||||||||||
| Liabilities of discontinued operations | — | — | 15,581 | n/m | ) | -100.0 | % | ||||||||||||
| Total liabilities | 16,274,976 | 16,190,095 | 16,694,013 | 0.5 | % | ) | -2.5 | % | |||||||||||
| Common stock | 12,651 | 12,711 | 12,747 | ) | -0.5 | % | ) | -0.8 | % | ||||||||||
| Capital surplus | 143,001 | 157,899 | 160,521 | ) | -9.4 | % | ) | -10.9 | % | ||||||||||
| Retained earnings | 1,914,277 | 1,875,376 | 1,736,485 | 2.1 | % | 10.2 | % | ||||||||||||
| Accumulated other comprehensive <br> income (loss), net of tax | (48,702 | ) | (83,659 | ) | (227,154 | ) | 41.8 | % | 78.6 | % | |||||||||
| Total shareholders' equity | 2,021,227 | 1,962,327 | 1,682,599 | 3.0 | % | 20.1 | % | ||||||||||||
| Total liabilities and equity | $ | 18,296,203 | $ | 18,152,422 | $ | 18,376,612 | 0.8 | % | ) | -0.4 | % | ||||||||
| 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 | ||||||||||||||||||
| March 31, 2025 | ||||||||||||||||||
| ($ in thousands except per share data) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| INCOME STATEMENTS | 3/31/2025 | 12/31/2024 | 3/31/2024 | Change | % Change | Change | % Change | |||||||||||
| Interest and fees on LHFS & LHFI-FTE | $ | 201,929 | $ | 211,019 | $ | 209,456 | ) | -4.3 | % | ) | -3.6 | % | ||||||
| Interest on securities-taxable | 26,056 | 26,196 | 15,634 | ) | -0.5 | % | 66.7 | % | ||||||||||
| Interest on securities-tax exempt-FTE | — | — | 4 | n/m | ) | -100.0 | % | |||||||||||
| Other interest income | 3,846 | 5,128 | 8,111 | ) | -25.0 | % | ) | -52.6 | % | |||||||||
| Total interest income-FTE | 231,831 | 242,343 | 233,205 | ) | -4.3 | % | ) | -0.6 | % | |||||||||
| Interest on deposits | 67,718 | 75,941 | 83,716 | ) | -10.8 | % | ) | -19.1 | % | |||||||||
| Interest on fed funds purchased and repurchases | 4,298 | 4,036 | 5,591 | 6.5 | % | ) | -23.1 | % | ||||||||||
| Other interest expense | 5,076 | 3,922 | 7,703 | 29.4 | % | ) | -34.1 | % | ||||||||||
| Total interest expense | 77,092 | 83,899 | 97,010 | ) | -8.1 | % | ) | -20.5 | % | |||||||||
| Net interest income-FTE | 154,739 | 158,444 | 136,195 | ) | -2.3 | % | 13.6 | % | ||||||||||
| Provision for credit losses (PCL), LHFI | 8,125 | 6,960 | 7,708 | 16.7 | % | 5.4 | % | |||||||||||
| PCL, off-balance sheet credit exposures | (2,831 | ) | 502 | (192 | ) | ) | n/m | ) | n/m | |||||||||
| PCL, LHFI sale of 1-4 family mortgage loans | — | — | — | n/m | n/m | |||||||||||||
| Net interest income after provision-FTE | 149,445 | 150,982 | 128,679 | ) | -1.0 | % | 16.1 | % | ||||||||||
| Service charges on deposit accounts | 10,636 | 11,228 | 10,958 | ) | -5.3 | % | ) | -2.9 | % | |||||||||
| Bank card and other fees | 7,664 | 8,717 | 7,428 | ) | -12.1 | % | 3.2 | % | ||||||||||
| Mortgage banking, net | 8,771 | 7,388 | 8,915 | 18.7 | % | ) | -1.6 | % | ||||||||||
| Wealth management | 9,543 | 9,319 | 8,952 | 2.4 | % | 6.6 | % | |||||||||||
| Other, net | 5,970 | 4,298 | 3,102 | 38.9 | % | 92.5 | % | |||||||||||
| Securities gains (losses), net | — | — | — | n/m | n/m | |||||||||||||
| Total noninterest income (loss) | 42,584 | 40,950 | 39,355 | 4.0 | % | 8.2 | % | |||||||||||
| Salaries and employee benefits | 68,492 | 69,223 | 65,487 | ) | -1.1 | % | 4.6 | % | ||||||||||
| Services and fees | 26,247 | 26,692 | 24,431 | ) | -1.7 | % | 7.4 | % | ||||||||||
| Net occupancy-premises | 7,385 | 7,195 | 7,270 | 2.6 | % | 1.6 | % | |||||||||||
| Equipment expense | 6,308 | 6,208 | 6,325 | 1.6 | % | ) | -0.3 | % | ||||||||||
| Other expense | 15,579 | 15,112 | 16,151 | 3.1 | % | ) | -3.5 | % | ||||||||||
| Total noninterest expense | 124,011 | 124,430 | 119,664 | ) | -0.3 | % | 3.6 | % | ||||||||||
| Income (loss) from continuing operations <br> (cont. ops) before income taxes and tax eq adj | 68,018 | 67,502 | 48,370 | 0.8 | % | 40.6 | % | |||||||||||
| Tax equivalent adjustment | 2,684 | 2,596 | 3,365 | 3.4 | % | ) | -20.2 | % | ||||||||||
| Income (loss) from cont. ops before income taxes | 65,334 | 64,906 | 45,005 | 0.7 | % | 45.2 | % | |||||||||||
| Income taxes from cont. ops | 11,701 | 8,594 | 6,832 | 36.2 | % | 71.3 | % | |||||||||||
| Income (loss) from cont. ops | 53,633 | 56,312 | 38,173 | ) | -4.8 | % | 40.5 | % | ||||||||||
| Income from discontinued operations <br> (discont. ops) before income taxes | — | — | 4,512 | n/m | ) | -100.0 | % | |||||||||||
| Income taxes from discont. ops | — | — | 1,150 | n/m | ) | -100.0 | % | |||||||||||
| Income from discont. ops | — | — | 3,362 | n/m | ) | -100.0 | % | |||||||||||
| Net income | $ | 53,633 | $ | 56,312 | $ | 41,535 | ) | -4.8 | % | 29.1 | % | |||||||
| Per share data (1) | ||||||||||||||||||
| Basic earnings (loss) per share from cont. ops | $ | 0.88 | $ | 0.92 | $ | 0.62 | ) | -4.3 | % | 41.9 | % | |||||||
| Basic earnings per share from discont. ops | $ | — | $ | — | $ | 0.05 | n/m | ) | -100.0 | % | ||||||||
| Basic earnings per share - total | $ | 0.88 | $ | 0.92 | $ | 0.68 | ) | -4.3 | % | 29.4 | % | |||||||
| Diluted earnings (loss) per share from cont. ops | $ | 0.88 | $ | 0.92 | $ | 0.62 | ) | -4.3 | % | 41.9 | % | |||||||
| Diluted earnings per share from discont. ops | $ | — | $ | — | $ | 0.05 | n/m | ) | -100.0 | % | ||||||||
| Diluted earnings per share - total | $ | 0.88 | $ | 0.92 | $ | 0.68 | ) | -4.3 | % | 29.4 | % | |||||||
| Dividends per share | $ | 0.24 | $ | 0.23 | $ | 0.23 | 4.3 | % | 4.3 | % | ||||||||
| Weighted average shares outstanding | ||||||||||||||||||
| Basic | 60,799,984 | 61,101,954 | 61,128,425 | |||||||||||||||
| Diluted | 61,049,120 | 61,367,825 | 61,348,364 | |||||||||||||||
| Period end shares outstanding | 60,718,411 | 61,008,023 | 61,178,366 | |||||||||||||||
| (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 | |||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| NONPERFORMING ASSETS | 3/31/2025 | 12/31/2024 | 3/31/2024 | Change | % Change | Change | % Change | ||||||||||||
| Nonaccrual LHFI | |||||||||||||||||||
| Alabama | $ | 18,633 | $ | 18,601 | $ | 23,261 | 0.2 | % | ) | -19.9 | % | ||||||||
| Florida | 391 | 305 | 585 | 28.2 | % | ) | -33.2 | % | |||||||||||
| Mississippi (1) | 49,107 | 42,203 | 59,059 | 16.4 | % | ) | -16.9 | % | |||||||||||
| Tennessee (2) | 2,339 | 2,431 | 1,800 | ) | -3.8 | % | 29.9 | % | |||||||||||
| Texas | 16,150 | 16,569 | 13,646 | ) | -2.5 | % | 18.3 | % | |||||||||||
| Total nonaccrual LHFI | 86,620 | 80,109 | 98,351 | 8.1 | % | ) | -11.9 | % | |||||||||||
| Other real estate | |||||||||||||||||||
| Alabama | 271 | 170 | 1,050 | 59.4 | % | ) | -74.2 | % | |||||||||||
| Florida | — | — | 71 | n/m | ) | -100.0 | % | ||||||||||||
| Mississippi (1) | 4,837 | 2,407 | 2,870 | n/m | 68.5 | % | |||||||||||||
| Tennessee (2) | 979 | 1,079 | 86 | ) | -9.3 | % | n/m | ||||||||||||
| Texas | 2,261 | 2,261 | 3,543 | 0.0 | % | ) | -36.2 | % | |||||||||||
| Total other real estate | 8,348 | 5,917 | 7,620 | 41.1 | % | 9.6 | % | ||||||||||||
| Total nonperforming assets | $ | 94,968 | $ | 86,026 | $ | 105,971 | 10.4 | % | ) | -10.4 | % | ||||||||
| LOANS PAST DUE OVER 90 DAYS | |||||||||||||||||||
| LHFI | $ | 4,355 | $ | 4,092 | $ | 5,243 | 6.4 | % | ) | -16.9 | % | ||||||||
| LHFS-Guaranteed GNMA serviced loans | |||||||||||||||||||
| (no obligation to repurchase) | $ | 71,720 | $ | 71,255 | $ | 56,530 | 0.7 | % | 26.9 | % | |||||||||
| Quarter Ended | Linked Quarter | Year over Year | |||||||||||||||||
| ACL LHFI | 3/31/2025 | 12/31/2024 | 3/31/2024 | Change | % Change | Change | % Change | ||||||||||||
| Beginning Balance | $ | 160,270 | $ | 157,929 | $ | 139,367 | 1.5 | % | 15.0 | % | |||||||||
| PCL, LHFI | 8,125 | 6,960 | 7,708 | 16.7 | % | 5.4 | % | ||||||||||||
| 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 | (3,701 | ) | (7,730 | ) | (6,324 | ) | 52.1 | % | 41.5 | % | |||||||||
| Recoveries | 2,316 | 3,111 | 2,247 | ) | -25.6 | % | 3.1 | % | |||||||||||
| Net (charge-offs) recoveries | (1,385 | ) | (4,619 | ) | (4,077 | ) | 70.0 | % | 66.0 | % | |||||||||
| Ending Balance | $ | 167,010 | $ | 160,270 | $ | 142,998 | 4.2 | % | 16.8 | % | |||||||||
| NET (CHARGE-OFFS) RECOVERIES | |||||||||||||||||||
| Alabama | $ | (207 | ) | $ | (3,608 | ) | $ | (341 | ) | 94.3 | % | 39.3 | % | ||||||
| Florida | (17 | ) | 8 | 277 | ) | n/m | ) | n/m | |||||||||||
| Mississippi (1) | (755 | ) | (1,319 | ) | (1,489 | ) | 42.8 | % | 49.3 | % | |||||||||
| Tennessee (2) | (301 | ) | (208 | ) | (179 | ) | ) | -44.7 | % | ) | -68.2 | % | |||||||
| Texas | (105 | ) | 508 | (2,345 | ) | ) | n/m | 95.5 | % | ||||||||||
| Total net (charge-offs) recoveries | $ | (1,385 | ) | $ | (4,619 | ) | $ | (4,077 | ) | 70.0 | % | 66.0 | % | ||||||
| (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 | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Quarter Ended | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| AVERAGE BALANCES | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| Securities AFS-taxable | $ | 1,726,291 | $ | 1,708,226 | $ | 1,658,999 | $ | 1,866,227 | $ | 1,927,619 | |||||
| Securities AFS-nontaxable | — | — | — | — | — | ||||||||||
| Securities HTM-taxable | 1,325,185 | 1,346,141 | 1,368,943 | 1,421,246 | 1,418,476 | ||||||||||
| Securities HTM-nontaxable | — | — | — | 112 | 340 | ||||||||||
| Total securities | 3,051,476 | 3,054,367 | 3,027,942 | 3,287,585 | 3,346,435 | ||||||||||
| Loans (includes loans held for sale) | 13,320,276 | 13,275,762 | 13,379,658 | 13,309,127 | 13,169,805 | ||||||||||
| Other earning assets | 365,505 | 422,083 | 607,928 | 592,735 | 571,329 | ||||||||||
| Total earning assets | 16,737,257 | 16,752,212 | 17,015,528 | 17,189,447 | 17,087,569 | ||||||||||
| ACL LHFI | (159,893 | ) | (157,659 | ) | (154,476 | ) | (143,245 | ) | (138,711 | ) | |||||
| Other assets | 1,624,581 | 1,627,890 | 1,646,241 | 1,740,307 | 1,730,521 | ||||||||||
| Total assets | $ | 18,201,945 | $ | 18,222,443 | $ | 18,507,293 | $ | 18,786,509 | $ | 18,679,379 | |||||
| Interest-bearing demand deposits (1) | $ | 7,789,239 | $ | 7,789,318 | $ | 7,787,639 | $ | 7,845,195 | $ | 7,932,943 | |||||
| Savings deposits (1) | 993,232 | 983,292 | 1,006,668 | 1,031,140 | 1,044,863 | ||||||||||
| Time deposits | 3,160,134 | 3,265,358 | 3,393,216 | 3,346,046 | 3,321,601 | ||||||||||
| Total interest-bearing deposits | 11,942,605 | 12,037,968 | 12,187,523 | 12,222,381 | 12,299,407 | ||||||||||
| Fed funds purchased and repurchases | 405,189 | 357,798 | 375,559 | 434,760 | 428,127 | ||||||||||
| Other borrowings | 344,040 | 218,244 | 339,417 | 534,350 | 463,459 | ||||||||||
| Subordinated notes | 123,721 | 123,666 | 123,611 | 123,556 | 123,501 | ||||||||||
| Junior subordinated debt securities | 61,856 | 61,856 | 61,856 | 61,856 | 61,856 | ||||||||||
| Total interest-bearing liabilities | 12,877,411 | 12,799,532 | 13,087,966 | 13,376,903 | 13,376,350 | ||||||||||
| Noninterest-bearing deposits | 3,055,333 | 3,192,358 | 3,221,516 | 3,183,524 | 3,120,566 | ||||||||||
| Other liabilities | 277,647 | 257,990 | 274,563 | 498,593 | 505,942 | ||||||||||
| Total liabilities | 16,210,391 | 16,249,880 | 16,584,045 | 17,059,020 | 17,002,858 | ||||||||||
| Shareholders' equity | 1,991,554 | 1,972,563 | 1,923,248 | 1,727,489 | 1,676,521 | ||||||||||
| Total liabilities and equity | $ | 18,201,945 | $ | 18,222,443 | $ | 18,507,293 | $ | 18,786,509 | $ | 18,679,379 | |||||
| (1) During the first quarter of 2025, Trustmark ceased the daily sweep between low transaction interest-bearing demand deposits to savings deposits. Prior periods have been reclassified accordingly. |
See Notes to Consolidated Financials
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| PERIOD END BALANCES | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Cash and due from banks | $ | 587,362 | $ | 567,251 | $ | 805,436 | $ | 822,141 | $ | 606,061 | |||||
| Fed funds sold and reverse repurchases | — | — | 10,000 | — | — | ||||||||||
| Securities available for sale | 1,737,462 | 1,692,534 | 1,725,795 | 1,621,659 | 1,702,299 | ||||||||||
| Securities held to maturity | 1,315,053 | 1,335,385 | 1,358,358 | 1,380,487 | 1,415,025 | ||||||||||
| LHFS | 188,689 | 200,307 | 216,454 | 185,698 | 172,937 | ||||||||||
| LHFI | 13,241,469 | 13,089,942 | 13,100,111 | 13,155,418 | 13,057,943 | ||||||||||
| ACL LHFI | (167,010 | ) | (160,270 | ) | (157,929 | ) | (154,685 | ) | (142,998 | ) | |||||
| Net LHFI | 13,074,459 | 12,929,672 | 12,942,182 | 13,000,733 | 12,914,945 | ||||||||||
| Premises and equipment, net | 231,202 | 235,410 | 236,151 | 232,681 | 232,630 | ||||||||||
| Mortgage servicing rights | 134,395 | 139,317 | 125,853 | 136,658 | 138,044 | ||||||||||
| Goodwill | 334,605 | 334,605 | 334,605 | 334,605 | 334,605 | ||||||||||
| Identifiable intangible assets | 95 | 126 | 153 | 181 | 208 | ||||||||||
| Other real estate | 8,348 | 5,917 | 3,920 | 6,586 | 7,620 | ||||||||||
| Operating lease right-of-use assets | 33,861 | 34,668 | 36,034 | 36,925 | 34,324 | ||||||||||
| Other assets | 650,672 | 677,230 | 685,431 | 694,133 | 744,821 | ||||||||||
| Assets of discontinued operations | — | — | — | — | 73,093 | ||||||||||
| Total assets | $ | 18,296,203 | $ | 18,152,422 | $ | 18,480,372 | $ | 18,452,487 | $ | 18,376,612 | |||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 3,069,929 | $ | 3,073,565 | $ | 3,142,792 | $ | 3,153,506 | $ | 3,039,652 | |||||
| Interest-bearing | 12,010,775 | 12,034,610 | 12,098,143 | 12,309,382 | 12,298,905 | ||||||||||
| Total deposits | 15,080,704 | 15,108,175 | 15,240,935 | 15,462,888 | 15,338,557 | ||||||||||
| Fed funds purchased and repurchases | 360,080 | 324,008 | 365,643 | 314,121 | 393,215 | ||||||||||
| Other borrowings | 404,815 | 301,541 | 443,458 | 336,687 | 482,027 | ||||||||||
| Subordinated notes | 123,757 | 123,702 | 123,647 | 123,592 | 123,537 | ||||||||||
| Junior subordinated debt securities | 61,856 | 61,856 | 61,856 | 61,856 | 61,856 | ||||||||||
| ACL on off-balance sheet credit exposures | 26,561 | 29,392 | 28,890 | 30,265 | 33,865 | ||||||||||
| Operating lease liabilities | 37,917 | 38,698 | 39,689 | 40,517 | 37,792 | ||||||||||
| Other liabilities | 179,286 | 202,723 | 196,158 | 203,420 | 207,583 | ||||||||||
| Liabilities of discontinued operations | — | — | — | — | 15,581 | ||||||||||
| Total liabilities | 16,274,976 | 16,190,095 | 16,500,276 | 16,573,346 | 16,694,013 | ||||||||||
| Common stock | 12,651 | 12,711 | 12,753 | 12,753 | 12,747 | ||||||||||
| Capital surplus | 143,001 | 157,899 | 163,156 | 161,834 | 160,521 | ||||||||||
| Retained earnings | 1,914,277 | 1,875,376 | 1,833,232 | 1,796,111 | 1,736,485 | ||||||||||
| Accumulated other comprehensive income (loss), <br> net of tax | (48,702 | ) | (83,659 | ) | (29,045 | ) | (91,557 | ) | (227,154 | ) | |||||
| Total shareholders' equity | 2,021,227 | 1,962,327 | 1,980,096 | 1,879,141 | 1,682,599 | ||||||||||
| Total liabilities and equity | $ | 18,296,203 | $ | 18,152,422 | $ | 18,480,372 | $ | 18,452,487 | $ | 18,376,612 |
See Notes to Consolidated Financials
| TRUSTMARK CORPORATION AND SUBSIDIARIES | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||
| March 31, 2025 | ||||||||||||||
| ($ in thousands except per share data) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Quarter Ended | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| INCOME STATEMENTS | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||
| Interest and fees on LHFS & LHFI-FTE | $ | 201,929 | $ | 211,019 | $ | 220,433 | $ | 216,399 | $ | 209,456 | ||||
| Interest on securities-taxable | 26,056 | 26,196 | 26,162 | 17,929 | 15,634 | |||||||||
| Interest on securities-tax exempt-FTE | — | — | — | 1 | 4 | |||||||||
| Other interest income | 3,846 | 5,128 | 8,302 | 8,126 | 8,111 | |||||||||
| Total interest income-FTE | 231,831 | 242,343 | 254,897 | 242,455 | 233,205 | |||||||||
| Interest on deposits | 67,718 | 75,941 | 86,043 | 83,681 | 83,716 | |||||||||
| Interest on fed funds purchased and repurchases | 4,298 | 4,036 | 4,864 | 5,663 | 5,591 | |||||||||
| Other interest expense | 5,076 | 3,922 | 5,971 | 8,778 | 7,703 | |||||||||
| Total interest expense | 77,092 | 83,899 | 96,878 | 98,122 | 97,010 | |||||||||
| Net interest income-FTE | 154,739 | 158,444 | 158,019 | 144,333 | 136,195 | |||||||||
| PCL, LHFI | 8,125 | 6,960 | 7,923 | 14,696 | 7,708 | |||||||||
| PCL, off-balance sheet credit exposures | (2,831 | ) | 502 | (1,375 | ) | (3,600 | ) | (192 | ) | |||||
| PCL, LHFI sale of 1-4 family mortgage loans | — | — | — | 8,633 | — | |||||||||
| Net interest income after provision-FTE | 149,445 | 150,982 | 151,471 | 124,604 | 128,679 | |||||||||
| Service charges on deposit accounts | 10,636 | 11,228 | 11,272 | 10,924 | 10,958 | |||||||||
| Bank card and other fees | 7,664 | 8,717 | 7,931 | 9,225 | 7,428 | |||||||||
| Mortgage banking, net | 8,771 | 7,388 | 6,119 | 4,204 | 8,915 | |||||||||
| Wealth management | 9,543 | 9,319 | 9,288 | 9,692 | 8,952 | |||||||||
| Other, net | 5,970 | 4,298 | 2,952 | 7,461 | 3,102 | |||||||||
| Securities gains (losses), net | — | — | — | (182,792 | ) | — | ||||||||
| Total noninterest income (loss) | 42,584 | 40,950 | 37,562 | (141,286 | ) | 39,355 | ||||||||
| Salaries and employee benefits | 68,492 | 69,223 | 66,691 | 64,838 | 65,487 | |||||||||
| Services and fees | 26,247 | 26,692 | 25,724 | 24,743 | 24,431 | |||||||||
| Net occupancy-premises | 7,385 | 7,195 | 7,398 | 7,265 | 7,270 | |||||||||
| Equipment expense | 6,308 | 6,208 | 6,141 | 6,241 | 6,325 | |||||||||
| Other expense | 15,579 | 15,112 | 17,316 | 15,239 | 16,151 | |||||||||
| Total noninterest expense | 124,011 | 124,430 | 123,270 | 118,326 | 119,664 | |||||||||
| Income (loss) from continuing operations <br> (cont. ops) before income taxes and tax eq adj | 68,018 | 67,502 | 65,763 | (135,008 | ) | 48,370 | ||||||||
| Tax equivalent adjustment | 2,684 | 2,596 | 3,305 | 3,304 | 3,365 | |||||||||
| Income (loss) from cont. ops before <br> income taxes | 65,334 | 64,906 | 62,458 | (138,312 | ) | 45,005 | ||||||||
| Income taxes from cont. ops | 11,701 | 8,594 | 11,128 | (37,707 | ) | 6,832 | ||||||||
| Income (loss) from cont. ops | 53,633 | 56,312 | 51,330 | (100,605 | ) | 38,173 | ||||||||
| Income from discontinued operations <br> (discont. ops) before income taxes | — | — | — | 232,640 | 4,512 | |||||||||
| Income taxes from discont. ops | — | — | — | 58,203 | 1,150 | |||||||||
| Income from discont. ops | — | — | — | 174,437 | 3,362 | |||||||||
| Net income | $ | 53,633 | $ | 56,312 | $ | 51,330 | $ | 73,832 | $ | 41,535 | ||||
| Per share data (1) | ||||||||||||||
| Basic earnings (loss) per share from cont. ops | $ | 0.88 | $ | 0.92 | $ | 0.84 | $ | (1.64 | ) | $ | 0.62 | |||
| Basic earnings per share from discont. ops | $ | — | $ | — | $ | — | $ | 2.85 | $ | 0.05 | ||||
| Basic earnings per share - total | $ | 0.88 | $ | 0.92 | $ | 0.84 | $ | 1.21 | $ | 0.68 | ||||
| Diluted earnings (loss) per share from cont. ops | $ | 0.88 | $ | 0.92 | $ | 0.84 | $ | (1.64 | ) | $ | 0.62 | |||
| Diluted earnings per share from discont. ops | $ | — | $ | — | $ | — | $ | 2.84 | $ | 0.05 | ||||
| Diluted earnings per share - total | $ | 0.88 | $ | 0.92 | $ | 0.84 | $ | 1.20 | $ | 0.68 | ||||
| Dividends per share | $ | 0.24 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | ||||
| Weighted average shares outstanding | ||||||||||||||
| Basic | 60,799,984 | 61,101,954 | 61,206,599 | 61,196,820 | 61,128,425 | |||||||||
| Diluted | 61,049,120 | 61,367,825 | 61,448,410 | 61,415,957 | 61,348,364 | |||||||||
| Period end shares outstanding | 60,718,411 | 61,008,023 | 61,206,606 | 61,205,969 | 61,178,366 | |||||||||
| (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 | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Quarter Ended | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| NONPERFORMING ASSETS | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| Nonaccrual LHFI | |||||||||||||||
| Alabama | $ | 18,633 | $ | 18,601 | $ | 25,835 | $ | 26,222 | $ | 23,261 | |||||
| Florida | 391 | 305 | 111 | 614 | 585 | ||||||||||
| Mississippi (1) | 49,107 | 42,203 | 31,536 | 14,773 | 59,059 | ||||||||||
| Tennessee (2) | 2,339 | 2,431 | 3,180 | 2,084 | 1,800 | ||||||||||
| Texas | 16,150 | 16,569 | 13,163 | 599 | 13,646 | ||||||||||
| Total nonaccrual LHFI | 86,620 | 80,109 | 73,825 | 44,292 | 98,351 | ||||||||||
| Other real estate | |||||||||||||||
| Alabama | 271 | 170 | 170 | 485 | 1,050 | ||||||||||
| Florida | — | — | — | — | 71 | ||||||||||
| Mississippi (1) | 4,837 | 2,407 | 1,772 | 1,787 | 2,870 | ||||||||||
| Tennessee (2) | 979 | 1,079 | — | 86 | 86 | ||||||||||
| Texas | 2,261 | 2,261 | 1,978 | 4,228 | 3,543 | ||||||||||
| Total other real estate | 8,348 | 5,917 | 3,920 | 6,586 | 7,620 | ||||||||||
| Total nonperforming assets | $ | 94,968 | $ | 86,026 | $ | 77,745 | $ | 50,878 | $ | 105,971 | |||||
| LOANS PAST DUE OVER 90 DAYS | |||||||||||||||
| LHFI | $ | 4,355 | $ | 4,092 | $ | 5,352 | $ | 5,413 | $ | 5,243 | |||||
| LHFS-Guaranteed GNMA serviced loans | |||||||||||||||
| (no obligation to repurchase) | $ | 71,720 | $ | 71,255 | $ | 63,703 | $ | 58,079 | $ | 56,530 | |||||
| Quarter Ended | |||||||||||||||
| ACL LHFI | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| Beginning Balance | $ | 160,270 | $ | 157,929 | $ | 154,685 | $ | 142,998 | $ | 139,367 | |||||
| PCL, LHFI | 8,125 | 6,960 | 7,923 | 14,696 | 7,708 | ||||||||||
| PCL, LHFI sale of 1-4 family mortgage loans | — | — | — | 8,633 | — | ||||||||||
| Charge-offs, sale of 1-4 family mortgage loans | — | — | — | (8,633 | ) | — | |||||||||
| Charge-offs | (3,701 | ) | (7,730 | ) | (7,142 | ) | (5,120 | ) | (6,324 | ) | |||||
| Recoveries | 2,316 | 3,111 | 2,463 | 2,111 | 2,247 | ||||||||||
| Net (charge-offs) recoveries | (1,385 | ) | (4,619 | ) | (4,679 | ) | (11,642 | ) | (4,077 | ) | |||||
| Ending Balance | $ | 167,010 | $ | 160,270 | $ | 157,929 | $ | 154,685 | $ | 142,998 | |||||
| NET (CHARGE-OFFS) RECOVERIES | |||||||||||||||
| Alabama | $ | (207 | ) | $ | (3,608 | ) | $ | (3,098 | ) | $ | 59 | $ | (341 | ) | |
| Florida | (17 | ) | 8 | 595 | 4 | 277 | |||||||||
| Mississippi (1) | (755 | ) | (1,319 | ) | (1,881 | ) | (9,112 | ) | (1,489 | ) | |||||
| Tennessee (2) | (301 | ) | (208 | ) | (296 | ) | (122 | ) | (179 | ) | |||||
| Texas | (105 | ) | 508 | 1 | (2,471 | ) | (2,345 | ) | |||||||
| Total net (charge-offs) recoveries | $ | (1,385 | ) | $ | (4,619 | ) | $ | (4,679 | ) | $ | (11,642 | ) | $ | (4,077 | ) |
| (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 | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| (unaudited) | |||||||||||||||
| Quarter Ended | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL RATIOS AND OTHER DATA | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| Return on average equity from continuing operations | 10.92 | % | 11.36 | % | 10.62 | % | -23.42 | % | 9.16 | % | |||||
| Return on average equity from adjusted <br> continuing operations (1) | 10.92 | % | 11.36 | % | 10.62 | % | 9.06 | % | 9.16 | % | |||||
| Return on average equity - total | 10.92 | % | 11.36 | % | 10.62 | % | 17.19 | % | 9.96 | % | |||||
| Return on average tangible equity from <br> continuing operations | 13.13 | % | 13.68 | % | 12.86 | % | -29.05 | % | 11.45 | % | |||||
| Return on average tangible equity from adjusted <br> continuing operations (1) | 13.13 | % | 13.68 | % | 12.86 | % | 11.14 | % | 11.45 | % | |||||
| Return on average tangible equity - total | 13.13 | % | 13.68 | % | 12.86 | % | 21.91 | % | 12.98 | % | |||||
| Return on average assets from continuing operations | 1.19 | % | 1.23 | % | 1.10 | % | -2.16 | % | 0.83 | % | |||||
| Return on average assets from adjusted <br> continuing operations (1) | 1.19 | % | 1.23 | % | 1.10 | % | 0.87 | % | 0.83 | % | |||||
| Return on average assets - total | 1.19 | % | 1.23 | % | 1.10 | % | 1.58 | % | 0.89 | % | |||||
| Interest margin - Yield - FTE | 5.62 | % | 5.76 | % | 5.96 | % | 5.67 | % | 5.49 | % | |||||
| Interest margin - Cost | 1.87 | % | 1.99 | % | 2.27 | % | 2.30 | % | 2.28 | % | |||||
| Net interest margin - FTE | 3.75 | % | 3.76 | % | 3.69 | % | 3.38 | % | 3.21 | % | |||||
| Efficiency ratio (2) | 61.77 | % | 61.77 | % | 60.99 | % | 63.81 | % | 66.90 | % | |||||
| Full-time equivalent employees | 2,506 | 2,500 | 2,500 | 2,515 | 2,712 | ||||||||||
| CREDIT QUALITY RATIOS | |||||||||||||||
| Net (recoveries) charge-offs (excl sale of <br> 1-4 family mortgage loans) / average loans | 0.04 | % | 0.14 | % | 0.14 | % | 0.09 | % | 0.12 | % | |||||
| PCL, LHFI (excl PCL, LHFI sale of <br> 1-4 family mortgage loans) / average loans | 0.25 | % | 0.21 | % | 0.24 | % | 0.44 | % | 0.24 | % | |||||
| Nonaccrual LHFI / (LHFI + LHFS) | 0.64 | % | 0.60 | % | 0.55 | % | 0.33 | % | 0.74 | % | |||||
| Nonperforming assets / (LHFI + LHFS) | 0.71 | % | 0.65 | % | 0.58 | % | 0.38 | % | 0.80 | % | |||||
| Nonperforming assets / (LHFI + LHFS <br> + other real estate) | 0.71 | % | 0.65 | % | 0.58 | % | 0.38 | % | 0.80 | % | |||||
| ACL LHFI / LHFI | 1.26 | % | 1.22 | % | 1.21 | % | 1.18 | % | 1.10 | % | |||||
| ACL LHFI-commercial / commercial LHFI | 1.11 | % | 1.10 | % | 1.08 | % | 1.05 | % | 0.93 | % | |||||
| ACL LHFI-consumer / consumer and <br> home mortgage LHFI | 1.76 | % | 1.62 | % | 1.64 | % | 1.59 | % | 1.63 | % | |||||
| ACL LHFI / nonaccrual LHFI | 192.81 | % | 200.06 | % | 213.92 | % | 349.24 | % | 145.39 | % | |||||
| ACL LHFI / nonaccrual LHFI <br> (excl individually analyzed loans) | 296.41 | % | 341.20 | % | 497.27 | % | 840.20 | % | 235.29 | % | |||||
| CAPITAL RATIOS | |||||||||||||||
| Total equity / total assets | 11.05 | % | 10.81 | % | 10.71 | % | 10.18 | % | 9.16 | % | |||||
| Tangible equity / tangible assets | 9.39 | % | 9.13 | % | 9.07 | % | 8.52 | % | 7.47 | % | |||||
| Tangible equity / risk-weighted assets | 11.23 | % | 10.86 | % | 10.97 | % | 10.18 | % | 8.83 | % | |||||
| Tier 1 leverage ratio | 10.11 | % | 9.99 | % | 9.65 | % | 9.29 | % | 8.76 | % | |||||
| Common equity tier 1 capital ratio | 11.63 | % | 11.54 | % | 11.30 | % | 10.92 | % | 10.12 | % | |||||
| Tier 1 risk-based capital ratio | 12.03 | % | 11.94 | % | 11.70 | % | 11.31 | % | 10.51 | % | |||||
| Total risk-based capital ratio | 14.10 | % | 13.97 | % | 13.71 | % | 13.29 | % | 12.42 | % | |||||
| STOCK PERFORMANCE | |||||||||||||||
| Market value-Close | $ | 34.49 | $ | 35.37 | $ | 31.82 | $ | 30.04 | $ | 28.11 | |||||
| Book value | $ | 33.29 | $ | 32.17 | $ | 32.35 | $ | 30.70 | $ | 27.50 | |||||
| Tangible book value | $ | 27.78 | $ | 26.68 | $ | 26.88 | $ | 25.23 | $ | 22.03 | |||||
| (1) Adjusted continuing operations excludes significant non-routine transactions. See Note 7 - Non-GAAP Financial 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 |
| March 31, 2025 |
| ($ 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:
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SECURITIES AVAILABLE FOR SALE | ||||||||||
| U.S. Treasury securities | $ | 212,463 | $ | 202,669 | $ | 202,638 | $ | 172,955 | $ | 372,424 |
| U.S. Government agency obligations | 49,325 | 38,807 | 19,335 | — | 5,594 | |||||
| Mortgage-backed securities | ||||||||||
| Residential mortgage pass-through securities | ||||||||||
| Guaranteed by GNMA | 28,108 | 28,411 | 25,798 | 23,489 | 22,232 | |||||
| Issued by FNMA and FHLMC | 1,090,137 | 1,070,538 | 1,105,310 | 1,060,869 | 1,129,521 | |||||
| Other residential mortgage-backed securities | ||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | — | — | — | — | 79,099 | |||||
| Commercial mortgage-backed securities | ||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 357,429 | 352,109 | 372,714 | 364,346 | 93,429 | |||||
| Total securities available for sale | $ | 1,737,462 | $ | 1,692,534 | $ | 1,725,795 | $ | 1,621,659 | $ | 1,702,299 |
| SECURITIES HELD TO MATURITY | ||||||||||
| U.S. Treasury securities | $ | 30,033 | $ | 29,842 | $ | 29,648 | $ | 29,455 | $ | 29,261 |
| Obligations of states and political subdivisions | — | — | — | — | 340 | |||||
| Mortgage-backed securities | ||||||||||
| Residential mortgage pass-through securities | ||||||||||
| Guaranteed by GNMA | 15,726 | 16,218 | 17,773 | 17,998 | 18,387 | |||||
| Issued by FNMA and FHLMC | 411,454 | 423,372 | 436,177 | 449,781 | 461,457 | |||||
| Other residential mortgage-backed securities | ||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 116,969 | 123,685 | 131,348 | 138,951 | 146,447 | |||||
| Commercial mortgage-backed securities | ||||||||||
| Issued or guaranteed by FNMA, FHLMC, or GNMA | 740,871 | 742,268 | 743,412 | 744,302 | 759,133 | |||||
| Total securities held to maturity | $ | 1,315,053 | $ | 1,335,385 | $ | 1,358,358 | $ | 1,380,487 | $ | 1,415,025 |
At March 31, 2025, 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 $44.1 million.
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
|---|
| NOTES TO CONSOLIDATED FINANCIALS |
| March 31, 2025 |
| ($ in thousands) |
| (unaudited) |
Note 3 – Loan Composition
LHFI consisted of the following during the periods presented:
| LHFI BY TYPE | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans secured by real estate: | |||||||||||||||
| Construction, land development and other land loans | $ | 1,321,631 | $ | 1,417,148 | $ | 1,588,256 | $ | 1,638,972 | $ | 1,539,461 | |||||
| Secured by 1-4 family residential properties | 2,973,978 | 2,949,543 | 2,895,006 | 2,878,295 | 2,891,481 | ||||||||||
| Secured by nonfarm, nonresidential properties | 3,532,842 | 3,533,282 | 3,582,552 | 3,598,647 | 3,543,235 | ||||||||||
| Other real estate secured | 1,876,459 | 1,633,830 | 1,475,798 | 1,344,968 | 1,384,610 | ||||||||||
| Commercial and industrial loans | 1,765,893 | 1,840,722 | 1,767,079 | 1,880,607 | 1,922,711 | ||||||||||
| Consumer loans | 154,623 | 151,443 | 149,436 | 153,316 | 156,430 | ||||||||||
| State and other political subdivision loans | 974,300 | 969,836 | 996,002 | 1,053,015 | 1,052,844 | ||||||||||
| Other loans and leases | 641,743 | 594,138 | 645,982 | 607,598 | 567,171 | ||||||||||
| LHFI | 13,241,469 | 13,089,942 | 13,100,111 | 13,155,418 | 13,057,943 | ||||||||||
| ACL LHFI | (167,010 | ) | (160,270 | ) | (157,929 | ) | (154,685 | ) | (142,998 | ) | |||||
| Net LHFI | $ | 13,074,459 | $ | 12,929,672 | $ | 12,942,182 | $ | 13,000,733 | $ | 12,914,945 |
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:
| March 31, 2025 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | $ | 1,321,631 | $ | 513,367 | $ | 34,589 | $ | 155,936 | $ | 276,514 | $ | 46,857 | $ | 294,368 |
| Secured by 1-4 family residential properties | 2,973,978 | 156,707 | 62,267 | — | 2,627,767 | 86,791 | 40,446 | |||||||
| Secured by nonfarm, nonresidential properties | 3,532,842 | 968,991 | 188,318 | 86,682 | 1,518,669 | 127,092 | 643,090 | |||||||
| Other real estate secured | 1,876,459 | 896,353 | 1,472 | — | 477,674 | 930 | 500,030 | |||||||
| Commercial and industrial loans | 1,765,893 | 468,732 | 19,112 | 252,863 | 683,689 | 118,541 | 222,956 | |||||||
| Consumer loans | 154,623 | 23,671 | 7,863 | — | 91,336 | 14,115 | 17,638 | |||||||
| State and other political subdivision loans | 974,300 | 57,295 | 67,563 | 12,416 | 724,817 | 26,184 | 86,025 | |||||||
| Other loans and leases | 641,743 | 28,085 | 3,547 | 259,390 | 251,592 | 50,918 | 48,211 | |||||||
| Loans | $ | 13,241,469 | $ | 3,113,201 | $ | 384,731 | $ | 767,287 | $ | 6,652,058 | $ | 471,428 | $ | 1,852,764 |
| CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION | ||||||||||||||
| Lots | $ | 61,516 | $ | 26,578 | $ | 5,792 | $ | — | $ | 17,386 | $ | 1,903 | $ | 9,857 |
| Development | 107,402 | 58,256 | — | — | 19,108 | 13,232 | 16,806 | |||||||
| Unimproved land | 106,221 | 18,116 | 10,662 | — | 26,205 | 8,947 | 42,291 | |||||||
| 1-4 family construction | 324,186 | 162,699 | 8,264 | 17,289 | 78,225 | 21,842 | 35,867 | |||||||
| Other construction | 722,306 | 247,718 | 9,871 | 138,647 | 135,590 | 933 | 189,547 | |||||||
| Construction, land development and other land loans | $ | 1,321,631 | $ | 513,367 | $ | 34,589 | $ | 155,936 | $ | 276,514 | $ | 46,857 | $ | 294,368 |
| TRUSTMARK CORPORATION AND SUBSIDIARIES | ||||||||||||||
| --- | ||||||||||||||
| NOTES TO CONSOLIDATED FINANCIALS | ||||||||||||||
| March 31, 2025 | ||||||||||||||
| ($ in thousands) | ||||||||||||||
| (unaudited) |
Note 3 – Loan Composition (continued)
| March 31, 2025 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | $ | 283,918 | $ | 75,230 | $ | 19,803 | $ | — | $ | 100,542 | $ | 20,276 | $ | 68,067 |
| Office | 248,180 | 93,220 | 18,489 | — | 95,251 | 2,759 | 38,461 | |||||||
| Hotel/motel | 276,954 | 141,324 | 43,628 | — | 68,461 | 23,541 | — | |||||||
| Mini-storage | 158,111 | 40,410 | 1,561 | 12,882 | 91,013 | 604 | 11,641 | |||||||
| Industrial | 531,020 | 99,376 | 17,422 | 73,800 | 178,257 | 2,504 | 159,661 | |||||||
| Health care | 149,348 | 122,172 | 670 | — | 24,059 | 320 | 2,127 | |||||||
| Convenience stores | 22,040 | 2,590 | 393 | — | 12,677 | 195 | 6,185 | |||||||
| Nursing homes/senior living | 373,326 | 129,587 | — | — | 145,090 | 4,002 | 94,647 | |||||||
| Other | 108,694 | 27,792 | 8,632 | — | 56,598 | 7,529 | 8,143 | |||||||
| Total non-owner occupied loans | 2,151,591 | 731,701 | 110,598 | 86,682 | 771,948 | 61,730 | 388,932 | |||||||
| Owner-occupied: | ||||||||||||||
| Office | 139,762 | 48,209 | 33,853 | — | 32,536 | 8,549 | 16,615 | |||||||
| Churches | 48,141 | 11,055 | 3,657 | — | 28,149 | 2,931 | 2,349 | |||||||
| Industrial warehouses | 202,660 | 15,596 | 8,047 | — | 52,688 | 12,980 | 113,349 | |||||||
| Health care | 123,162 | 10,390 | 7,868 | — | 84,980 | 2,175 | 17,749 | |||||||
| Convenience stores | 104,929 | 10,439 | 2,084 | — | 56,730 | — | 35,676 | |||||||
| Retail | 79,018 | 8,257 | 12,253 | — | 43,637 | 7,085 | 7,786 | |||||||
| Restaurants | 54,385 | 3,127 | 2,682 | — | 28,033 | 16,297 | 4,246 | |||||||
| Auto dealerships | 39,289 | 3,792 | 167 | — | 20,676 | 14,654 | — | |||||||
| Nursing homes/senior living | 461,136 | 109,542 | — | — | 325,649 | — | 25,945 | |||||||
| Other | 128,769 | 16,883 | 7,109 | — | 73,643 | 691 | 30,443 | |||||||
| Total owner-occupied loans | 1,381,251 | 237,290 | 77,720 | — | 746,721 | 65,362 | 254,158 | |||||||
| Loans secured by nonfarm, nonresidential properties | $ | 3,532,842 | $ | 968,991 | $ | 188,318 | $ | 86,682 | $ | 1,518,669 | $ | 127,092 | $ | 643,090 |
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 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| Securities – taxable | 3.46 | % | 3.41 | % | 3.44 | % | 2.19 | % | 1.88 | % | |||||
| Securities – nontaxable | — | — | — | 3.59 | % | 4.73 | % | ||||||||
| Securities – total | 3.46 | % | 3.41 | % | 3.44 | % | 2.19 | % | 1.88 | % | |||||
| LHFI & LHFS | 6.15 | % | 6.32 | % | 6.55 | % | 6.54 | % | 6.40 | % | |||||
| Other earning assets | 4.27 | % | 4.83 | % | 5.43 | % | 5.51 | % | 5.71 | % | |||||
| Total earning assets | 5.62 | % | 5.76 | % | 5.96 | % | 5.67 | % | 5.49 | % | |||||
| Interest-bearing deposits | 2.30 | % | 2.51 | % | 2.81 | % | 2.75 | % | 2.74 | % | |||||
| Fed funds purchased & repurchases | 4.30 | % | 4.49 | % | 5.15 | % | 5.24 | % | 5.25 | % | |||||
| Other borrowings | 3.89 | % | 3.86 | % | 4.53 | % | 4.91 | % | 4.78 | % | |||||
| Total interest-bearing liabilities | 2.43 | % | 2.61 | % | 2.94 | % | 2.95 | % | 2.92 | % | |||||
| Total Deposits | 1.83 | % | 1.98 | % | 2.22 | % | 2.18 | % | 2.18 | % | |||||
| Net interest margin | 3.75 | % | 3.76 | % | 3.69 | % | 3.38 | % | 3.21 | % | |||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||
| --- | |||||||||||||||
| NOTES TO CONSOLIDATED FINANCIALS | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| ($ 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 remained relatively flat when compared to the fourth quarter of 2024, totaling 3.75% for the first quarter of 2025, as the decrease in the cost of interest-bearing liabilities was 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 $581 thousand during the first quarter of 2025.
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
| Quarter Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| Mortgage servicing income, net | $ | 7,161 | $ | 7,161 | $ | 7,127 | $ | 6,993 | $ | 6,934 | |||||
| Change in fair value-MSR from runoff | (2,062 | ) | (3,118 | ) | (3,154 | ) | (3,447 | ) | (1,926 | ) | |||||
| Gain on sales of loans, net | 4,253 | 4,470 | 4,648 | 5,151 | 5,009 | ||||||||||
| Mortgage banking income before hedge <br> ineffectiveness | 9,352 | 8,513 | 8,621 | 8,697 | 10,017 | ||||||||||
| Change in fair value-MSR from market changes | (5,928 | ) | 12,710 | (10,406 | ) | (1,626 | ) | 5,123 | |||||||
| Change in fair value of derivatives | 5,347 | (13,835 | ) | 7,904 | (2,867 | ) | (6,225 | ) | |||||||
| Net positive (negative) hedge ineffectiveness | (581 | ) | (1,125 | ) | (2,502 | ) | (4,493 | ) | (1,102 | ) | |||||
| Mortgage banking, net | $ | 8,771 | $ | 7,388 | $ | 6,119 | $ | 4,204 | $ | 8,915 | |||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||
| --- | |||||||||||||||
| NOTES TO CONSOLIDATED FINANCIALS | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| (unaudited) |
Note 6 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the periods presented:
| Quarter Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| Partnership amortization for tax credit purposes | $ | (2,124 | ) | $ | (1,992 | ) | $ | (1,977 | ) | $ | (1,824 | ) | $ | (1,834 | ) |
| Increase in life insurance cash surrender value | 1,867 | 1,891 | 1,883 | 1,860 | 1,844 | ||||||||||
| Loss on sale of 1-4 family mortgage loans | — | — | — | (4,798 | ) | — | |||||||||
| Visa C shares fair value adjustment | — | — | — | 8,056 | — | ||||||||||
| Other miscellaneous income | 6,227 | 4,399 | 3,046 | 4,167 | 3,092 | ||||||||||
| Total other, net | $ | 5,970 | $ | 4,298 | $ | 2,952 | $ | 7,461 | $ | 3,102 |
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 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||
| Loan expense | $ | 2,792 | $ | 2,921 | $ | 2,824 | $ | 2,880 | $ | 2,955 | |
| Amortization of intangibles | 31 | 27 | 28 | 27 | 28 | ||||||
| FDIC assessment expense | 4,160 | 4,815 | 5,071 | 4,816 | 4,509 | ||||||
| Other real estate expense, net | 452 | (286 | ) | 2,452 | 327 | 671 | |||||
| Other miscellaneous expense | 8,144 | 7,635 | 6,941 | 7,189 | 7,988 | ||||||
| Total other expense | $ | 15,579 | $ | 15,112 | $ | 17,316 | $ | 15,239 | $ | 16,151 |
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 |
| March 31, 2025 |
| ($ in thousands except per share data) |
| (unaudited) |
Note 7 – Non-GAAP Financial Measures (continued)
| Quarter Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||
| TANGIBLE EQUITY | ||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||
| Total shareholders' equity | $ | 1,991,554 | $ | 1,972,563 | $ | 1,923,248 | $ | 1,727,489 | $ | 1,676,521 | ||||||
| Less: Goodwill | (334,605 | ) | (334,605 | ) | (334,605 | ) | (334,605 | ) | (334,605 | ) | ||||||
| Identifiable intangible assets | (113 | ) | (141 | ) | (168 | ) | (195 | ) | (224 | ) | ||||||
| Total average tangible equity | $ | 1,656,836 | $ | 1,637,817 | $ | 1,588,475 | $ | 1,392,689 | $ | 1,341,692 | ||||||
| PERIOD END BALANCES | ||||||||||||||||
| Total shareholders' equity | $ | 2,021,227 | $ | 1,962,327 | $ | 1,980,096 | $ | 1,879,141 | $ | 1,682,599 | ||||||
| Less: Goodwill | (334,605 | ) | (334,605 | ) | (334,605 | ) | (334,605 | ) | (334,605 | ) | ||||||
| Identifiable intangible assets | (95 | ) | (126 | ) | (153 | ) | (181 | ) | (208 | ) | ||||||
| Total tangible equity | (a) | $ | 1,686,527 | $ | 1,627,596 | $ | 1,645,338 | $ | 1,544,355 | $ | 1,347,786 | |||||
| TANGIBLE ASSETS | ||||||||||||||||
| Total assets | $ | 18,296,203 | $ | 18,152,422 | $ | 18,480,372 | $ | 18,452,487 | $ | 18,376,612 | ||||||
| Less: Goodwill | (334,605 | ) | (334,605 | ) | (334,605 | ) | (334,605 | ) | (334,605 | ) | ||||||
| Identifiable intangible assets | (95 | ) | (126 | ) | (153 | ) | (181 | ) | (208 | ) | ||||||
| Total tangible assets | (b) | $ | 17,961,503 | $ | 17,817,691 | $ | 18,145,614 | $ | 18,117,701 | $ | 18,041,799 | |||||
| Risk-weighted assets | (c) | $ | 15,024,476 | $ | 14,990,258 | $ | 15,004,024 | $ | 15,165,038 | $ | 15,257,385 | |||||
| NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION | ||||||||||||||||
| Net income (loss) from continuing operations | $ | 53,633 | $ | 56,312 | $ | 51,330 | $ | (100,605 | ) | $ | 38,173 | |||||
| Plus: Intangible amortization net of tax from <br> continuing operations | 24 | 20 | 21 | 20 | 20 | |||||||||||
| Net income (loss) adjusted for intangible amortization | $ | 53,657 | $ | 56,332 | $ | 51,351 | $ | (100,585 | ) | $ | 38,193 | |||||
| Period end common shares outstanding | (d) | 60,718,411 | 61,008,023 | 61,206,606 | 61,205,969 | 61,178,366 | ||||||||||
| TANGIBLE COMMON EQUITY MEASUREMENTS | ||||||||||||||||
| Return on average tangible equity from <br> continuing operations (1) | 13.13 | % | 13.68 | % | 12.86 | % | -29.05 | % | 11.45 | % | ||||||
| Tangible equity/tangible assets | (a)/(b) | 9.39 | % | 9.13 | % | 9.07 | % | 8.52 | % | 7.47 | % | |||||
| Tangible equity/risk-weighted assets | (a)/(c) | 11.23 | % | 10.86 | % | 10.97 | % | 10.18 | % | 8.83 | % | |||||
| Tangible book value | (a)/(d)*1,000 | $ | 27.78 | $ | 26.68 | $ | 26.88 | $ | 25.23 | $ | 22.03 | |||||
| COMMON EQUITY TIER 1 CAPITAL (CET1) | ||||||||||||||||
| Total shareholders' equity | $ | 2,021,227 | $ | 1,962,327 | $ | 1,980,096 | $ | 1,879,141 | $ | 1,682,599 | ||||||
| CECL transition adjustment | — | 6,500 | 6,500 | 6,500 | 6,500 | |||||||||||
| AOCI-related adjustments | 48,702 | 83,659 | 29,045 | 91,557 | 227,154 | |||||||||||
| CET1 adjustments and deductions: | ||||||||||||||||
| Goodwill net of associated deferred <br> tax liabilities (DTLs) | (320,756 | ) | (320,756 | ) | (320,757 | ) | (320,758 | ) | (370,205 | ) | ||||||
| Other adjustments and deductions <br> for CET1 (2) | (2,175 | ) | (2,058 | ) | (115 | ) | (847 | ) | (2,588 | ) | ||||||
| CET1 capital | (e) | 1,746,998 | 1,729,672 | 1,694,769 | 1,655,593 | 1,543,460 | ||||||||||
| Additional tier 1 capital instruments <br> plus related surplus | 60,000 | 60,000 | 60,000 | 60,000 | 60,000 | |||||||||||
| Tier 1 capital | $ | 1,806,998 | $ | 1,789,672 | $ | 1,754,769 | $ | 1,715,593 | $ | 1,603,460 | ||||||
| Common equity tier 1 capital ratio | (e)/(c) | 11.63 | % | 11.54 | % | 11.30 | % | 10.92 | % | 10.12 | % |
- 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 |
| March 31, 2025 |
| ($ in thousands) |
| (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 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||
| Net interest income (GAAP) | (a) | $ | 152,055 | $ | 155,848 | $ | 154,714 | $ | 141,029 | $ | 132,830 | ||
| Noninterest income (loss) (GAAP) | 42,584 | 40,950 | 37,562 | (141,286 | ) | 39,355 | |||||||
| Add: | Loss on sale of 1-4 family mortgage loans (incl in Other, net) | — | — | — | 4,798 | — | |||||||
| Visa C shares fair value adjustment (incl in Other, net) | — | — | — | (8,056 | ) | — | |||||||
| Securities (gains) losses, net | — | — | — | 182,792 | — | ||||||||
| Noninterest income from adjusted continuing<br> operations (Non-GAAP) | (b) | $ | 42,584 | $ | 40,950 | $ | 37,562 | $ | 38,248 | $ | 39,355 | ||
| Adjusted pre-provision revenue | (a)+(b)=(c) | $ | 194,639 | $ | 196,798 | $ | 192,276 | $ | 179,277 | $ | 172,185 | ||
| Noninterest expense (GAAP) | (d) | $ | 124,011 | $ | 124,430 | $ | 123,270 | $ | 118,326 | $ | 119,664 | ||
| PPNR (Non-GAAP) | (c)-(d) | $ | 70,628 | $ | 72,368 | $ | 69,006 | $ | 60,951 | $ | 52,521 | ||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||
| --- | |||||||||||||
| NOTES TO CONSOLIDATED FINANCIALS | |||||||||||||
| March 31, 2025 | |||||||||||||
| ($ in thousands except per share data) | |||||||||||||
| (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 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| Net income (loss) (GAAP) from continuing operations | $ | 53,633 | $ | 56,312 | $ | 51,330 | $ | (100,605 | ) | $ | 38,173 | ||||
| Significant non-routine transactions (net of taxes): | |||||||||||||||
| PCL, LHFI sale of nonperforming 1-4 family | — | — | — | 6,475 | — | ||||||||||
| Loss on sale of 1-4 family mortgage loans | — | — | — | 3,598 | — | ||||||||||
| Visa C shares fair value adjustment | — | — | — | (6,042 | ) | — | |||||||||
| Securities gains (losses), net | — | — | — | 137,094 | — | ||||||||||
| Net income adjusted for significant non-routine <br> transactions (Non-GAAP) | $ | 53,633 | $ | 56,312 | $ | 51,330 | $ | 40,520 | $ | 38,173 | |||||
| Diluted EPS from adjusted continuing operations | $ | 0.88 | $ | 0.92 | $ | 0.84 | $ | 0.66 | $ | 0.62 | |||||
| FINANCIAL RATIOS - REPORTED (GAAP) | |||||||||||||||
| Return on average equity from continuing operations | 10.92 | % | 11.36 | % | 10.62 | % | -23.42 | % | 9.16 | % | |||||
| Return on average tangible equity from continuing operations | 13.13 | % | 13.68 | % | 12.86 | % | -29.05 | % | 11.45 | % | |||||
| Return on average assets from continuing operations | 1.19 | % | 1.23 | % | 1.10 | % | -2.16 | % | 0.83 | % | |||||
| FINANCIAL RATIOS - ADJUSTED (NON-GAAP) | |||||||||||||||
| Return on average equity from adjusted continuing operations | 10.92 | % | 11.36 | % | 10.62 | % | 9.06 | % | 9.16 | % | |||||
| Return on average tangible equity from adjusted <br> continuing operations | 13.13 | % | 13.68 | % | 12.86 | % | 11.14 | % | 11.45 | % | |||||
| Return on average assets from adjusted continuing operations | 1.19 | % | 1.23 | % | 1.10 | % | 0.87 | % | 0.83 | % | |||||
| TRUSTMARK CORPORATION AND SUBSIDIARIES | |||||||||||||||
| --- | |||||||||||||||
| NOTES TO CONSOLIDATED FINANCIALS | |||||||||||||||
| March 31, 2025 | |||||||||||||||
| ($ 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 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||||
| Total noninterest expense (GAAP) | $ | 124,011 | $ | 124,430 | $ | 123,270 | $ | 118,326 | $ | 119,664 | |||||||
| Less: | Other real estate expense, net | (452 | ) | 286 | (2,452 | ) | (327 | ) | (671 | ) | |||||||
| Amortization of intangibles | (31 | ) | (27 | ) | (28 | ) | (27 | ) | (28 | ) | |||||||
| Charitable contributions resulting in <br> state tax credits | (334 | ) | (300 | ) | (300 | ) | (300 | ) | (300 | ) | |||||||
| Adjusted noninterest expense (Non-GAAP) | (a) | $ | 123,194 | $ | 124,389 | $ | 120,490 | $ | 117,672 | $ | 118,665 | ||||||
| Net interest income (GAAP) | $ | 152,055 | $ | 155,848 | $ | 154,714 | $ | 141,029 | $ | 132,830 | |||||||
| Add: | Tax equivalent adjustment | 2,684 | 2,596 | 3,305 | 3,304 | 3,365 | |||||||||||
| Net interest income-FTE (Non-GAAP) | (b) | $ | 154,739 | $ | 158,444 | $ | 158,019 | $ | 144,333 | $ | 136,195 | ||||||
| Noninterest income (loss) (GAAP) | $ | 42,584 | $ | 40,950 | $ | 37,562 | $ | (141,286 | ) | $ | 39,355 | ||||||
| Add: | Partnership amortization for tax credit purposes | 2,124 | 1,992 | 1,977 | 1,824 | 1,834 | |||||||||||
| Loss on sale of 1-4 family mortgage loans | — | — | — | 4,798 | — | ||||||||||||
| Securities (gains) losses, net | — | — | — | 182,792 | — | ||||||||||||
| Less: | Visa C shares fair value adjustment | — | — | — | (8,056 | ) | — | ||||||||||
| Adjusted noninterest income (Non-GAAP) | (c) | $ | 44,708 | $ | 42,942 | $ | 39,539 | $ | 40,072 | $ | 41,189 | ||||||
| Adjusted revenue (Non-GAAP) | (b)+(c) | $ | 199,447 | $ | 201,386 | $ | 197,558 | $ | 184,405 | $ | 177,384 | ||||||
| Efficiency ratio (Non-GAAP) | (a)/((b)+(c)) | 61.77 | % | 61.77 | % | 60.99 | % | 63.81 | % | 66.90 | % |
Exhibit 99.2
(1)
(1)
(1) (2) (2) (2)
(2)
