Trustmark Corporation Announces Second Quarter 2025 Financial Results

Business Wire

12 hours ago

JACKSON, Miss.--(BUSINESS WIRE)--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $55.8 million in the second quarter of 2025, representing diluted earnings per share of $0.92. Trustmark's performance during the second quarter produced a return on average tangible equity of 13.13% and a return on average assets of 1.21%. The Board of Directors declared a quarterly cash dividend of $0.24 per share payable September 15, 2025, to shareholders of record on September 1, 2025.
Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/20250722679369/en
Second Quarter Highlights
Loans held for investment (HFI) increased to $13.5 billion, reflecting diversified growth of 1.7% linked-quarter
Credit quality remained stable, nonperforming assets declined linked-quarter, and net charge-offs represented 0.12% of average loans
Deposits increased to $15.1 billion while cost of total deposits declined 3 basis points to 1.80%
Total revenue expanded $4.0 million, or 2.1%, linked-quarter to $198.6 million
Net interest income (FTE) increased $6.7 million, or 4.3%, linked-quarter, producing a net interest margin of 3.81%
Noninterest expense increased $1.1 million, or 0.9%, linked-quarter to $125.1 million
Duane A. Dewey, President and CEO, stated, 'Our momentum continues to build as reflected in our solid financial performance in the second quarter of 2025. Diversified loan growth and solid credit quality continued. We were also successful in building and expanding attractive, cost-effective core deposit relationships. Our mortgage banking and wealth management businesses also performed well. These accomplishments are the results of our focused efforts to expand customer relationships and diligently manage expenses. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as their financial partner. We are well-positioned to create long-term value for our shareholders.'
Balance Sheet Management
Loans HFI increased $223.3 million, or 1.7%, during the quarter and $309.4 million, or 2.4%, year-over-year
Personal and commercial deposits totaled $13.0 billion at June 30, 2025, up $103.8 million, or 0.8%, from the prior quarter and $361.7 million, or 2.9%, year-over-year
Maintained strong capital position with CET1 ratio of 11.70% and total risk-based capital ratio of 14.15%
Repurchased $26.0 million, or approximately 764 thousand shares, of common stock during first six months of 2025
Loans HFI totaled $13.5 billion at June 30, 2025, reflecting an increase of $223.3 million, or 1.7%, linked-quarter and $309.4 million, or 2.4%, year-over-year. The linked-quarter growth was driven by 1-4 family mortgage loans, other loans and leases, commercial and industrial loans, other real estate secured loans, and construction, land development and other land loans. Trustmark's loan portfolio remains well-diversified by loan type and geography.
Deposits totaled $15.1 billion at June 30, 2025, up $35.2 million, or 0.2%, from the prior quarter as growth in noninterest-bearing deposits of $65.5 million was offset in part by a decline in interest-bearing deposits of $30.3 million. Year-over-year, deposits declined $347.0 million, or 2.2%, driven by targeted declines in public funds and brokered deposits of $408.2 million and $300.5 million, respectively. Trustmark continues to maintain a strong liquidity position as loans HFI represented 89.1% of total deposits at the end of the second quarter. Noninterest-bearing deposits represented 20.7% of total deposits at June 30, 2025. Interest-bearing deposit costs totaled 2.28% for the second quarter, a decrease of 2 basis points linked-quarter while the cost of total deposits was 1.80%, a decrease of 3 basis points from the prior quarter.
During the second quarter, Trustmark repurchased $11.0 million, or approximately 341 thousand of its common shares. During the first six months of 2025, Trustmark repurchased $26.0 million, or approximately 764 thousand 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 June 30, 2025, Trustmark's tangible equity to tangible assets ratio was 9.50%, while the total risk-based capital ratio was 14.15%. Tangible book value per share was $28.74 at June 30, 2025, an increase of 3.5% from the prior quarter and 13.9% from the prior year.
Credit Quality
Nonperforming assets declined 5.3% linked-quarter
Net provision for credit losses was $4.7 million in the second quarter
Net charge-offs (NCOs) totaled $4.1 million, including three individually analyzed credits totaling $2.7 million which were reserved for in prior periods; NCOs represented 0.12% of average loans in the second quarter
Allowance for credit losses (ACL) represented 1.25% of loans HFI and 272.20% of nonaccrual loans, excluding individually analyzed loans at June 30, 2025
Nonaccrual loans totaled $81.0 million at June 30, 2025, down $5.6 million from the prior quarter. Other real estate totaled $9.0 million, reflecting an increase of $624 thousand from the prior quarter. Collectively, nonperforming assets totaled $90.0 million at June 30, 2025, down $5.0 million, or 5.3%, from the prior quarter and represented 0.66% of loans HFI and held for sale (HFS).
The provision for credit losses for loans HFI was $5.3 million in the second quarter and was primarily attributable to loan growth and changes in the macroeconomic forecast partially offset by net adjustments to the qualitative factors due to positive credit migration. The provision for credit losses for off-balance sheet credit exposures was a negative $670 thousand in the second quarter, primarily driven by positive credit migration partially offset by changes in the macroeconomic forecast. Collectively, the provision for credit losses totaled $4.7 million in the second quarter compared to $5.3 million in the prior quarter and $11.1 million (excluding the provision associated with the mortgage loan sale) in the second quarter of 2024.
Allocation of Trustmark's $168.2 million ACL on loans HFI represented 1.07% of commercial loans and 1.83% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.25% at June 30, 2025. 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 $161.4 million in the second quarter, up $6.7 million, or 4.3%, linked-quarter
Net interest margin totaled 3.81% in the second quarter, up 6 basis points from the prior quarter
Noninterest income totaled $39.9 million, down $2.7 million, or 6.3%, from the prior quarter
Revenue in the second quarter totaled $198.6 million, an increase of 2.1% from the prior quarter. The linked-quarter increase reflects growth in net interest income offset in part by a reduction in noninterest income.
Net interest income (FTE) in the second quarter expanded to $161.4 million, resulting in a net interest margin of 3.81%, up 6 basis points from the prior quarter. The expansion of the net interest margin was primarily due to the increase in the yield of loans HFI and held for sale portfolio as well as the decrease in the cost of interest-bearing liabilities.
Noninterest income in the second quarter totaled $39.9 million, a decrease of $2.7 million, or 6.3%, from the prior quarter. Excluding a $2.4 million gain on sale of a bank facility in the first quarter and a $272 thousand net loss on sale of bank facilities in the second quarter, noninterest income was unchanged linked-quarter. Linked-quarter increases in bank card and other fees and wealth management were more than offset by declines in other income, net, mortgage banking, net, and service charges on deposit accounts.
Mortgage loan production in the second quarter totaled $426.3 million, up 33.7% from the prior quarter and up 12.3% year-over-year. Mortgage banking revenue totaled $8.6 million in the second quarter, a decrease of $169 thousand, or 1.9%, linked-quarter and an increase of $4.4 million year-over-year. The linked-quarter decrease was principally due to increased servicing asset amortization offset in part by increased gain on sale of mortgage loans. The year-over-year increase was principally attributable to increased mortgage servicing revenue, gain on sale of loans, and improved net hedge ineffectiveness.
Wealth management revenue in the second quarter totaled $9.6 million, an increase of $95 thousand, or 1.0%, from the prior quarter and a decline of $54 thousand, or 0.6%, year-over-year. The linked-quarter growth reflected increased investment services revenue offset in part by lower trust management revenue.
Other income, net, totaled $2.3 million in the second quarter, down $3.7 million from the prior quarter. Excluding the aforementioned gain on sale of a bank facility in the first quarter and net loss on sale of bank facilities in the second quarter, other income, net, declined $952 thousand linked-quarter. Service charges on deposit accounts totaled $10.6 million in the second quarter, largely in-line with the prior quarter and a decrease of $339 thousand, or 3.1% year-over-year. Bank card and other fees totaled $8.8 million in the second quarter, up $1.1 million from the prior quarter principally due to increased customer derivative and interchange revenue. Year-over-year, bank card and other fees decreased $471 thousand.
Noninterest Expense
Total noninterest expense increased $1.1 million, or 0.9%, linked-quarter
Salaries and employee benefits expense declined $194 thousand, or 0.3%, linked-quarter
Equipment expense declined $102 thousand, or 1.6%, linked-quarter
Noninterest expense in the second quarter totaled $125.1 million, an increase of $1.1 million, or 0.9%, from the prior quarter and $6.8 million, or 5.7%, year-over-year. Salaries and employee benefits expense totaled $68.3 million in the second quarter, a decline of $194 thousand, or 0.3%, linked-quarter and an increase of $3.5 million, or 5.3%, year-over-year. The linked-quarter decline reflected a seasonal decrease in payroll taxes and stock compensation expense, which were offset in part by increased commissions and compensation expense. Services and fees in the second quarter totaled $27.0 million, an increase of $751 thousand, or 2.9%, from the prior quarter and $2.3 million, or 9.1%, year-over-year. The linked-quarter increase is attributable principally to professional fees. Total other expense in the second quarter was $16.1 million, an increase of $526 thousand, or 3.4%, linked-quarter and $866 thousand, or 5.7%, year-over-year. The linked-quarter change is attributable to increased loan expense and other miscellaneous expense offset in part by lower other real estate expense and a decrease in FDIC assessment expense.
Additional Information
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 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 [phone] 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, August 6, 2025, in archived format at the same web address or by calling [phone], passcode 1200603.
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, a slowdown 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 current United States 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 CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands) (unaudited) Linked Quarter Year over Year
QUARTERLY AVERAGE BALANCES 6/30/2025 3/31/2025 6/30/2024 $ Change % Change $ Change % Change Securities AFS-taxable
$
1,745,924
$
1,726,291
$
1,866,227
$
19,633
1.1
%
$
(120,303
)
-6.4
% Securities HTM-taxable
1,303,195
1,325,185
1,421,246
(21,990
)
-1.7
%
(118,051
)
-8.3
% Securities HTM-nontaxable
—
—
112
—
n/m
(112
)
-100.0
% Total securities
3,049,119
3,051,476
3,287,585
(2,357
)
-0.1
%
(238,466
)
-7.3
% Loans (includes loans held for sale)
13,543,505
13,320,276
13,309,127
223,229
1.7
%
234,378
1.8
% Other earning assets
414,733
365,505
592,735
49,228
13.5
%
(178,002
)
-30.0
% Total earning assets
17,007,357
16,737,257
17,189,447
270,100
1.6
%
(182,090
)
-1.1
% Allowance for credit losses (ACL), loans held for investment (LHFI)
(166,430
)
(159,893
)
(143,245
)
(6,537
)
-4.1
%
(23,185
)
-16.2
% Other assets
1,605,786
1,624,581
1,740,307
(18,795
)
-1.2
%
(134,521
)
-7.7
% Total assets
$
18,446,713
$
18,201,945
$
18,786,509
$
244,768
1.3
%
$
(339,796
)
-1.8
% Interest-bearing demand deposits (1)
$
7,682,684
$
7,789,239
$
7,845,195
$
(106,555
)
-1.4
%
$
(162,511
)
-2.1
% Savings deposits (1)
989,689
993,232
1,031,140
(3,543
)
-0.4
%
(41,451
)
-4.0
% Time deposits
3,313,420
3,160,134
3,346,046
153,286
4.9
%
(32,626
)
-1.0
% Total interest-bearing deposits
11,985,793
11,942,605
12,222,381
43,188
0.4
%
(236,588
)
-1.9
% Fed funds purchased and repurchases
416,104
405,189
434,760
10,915
2.7
%
(18,656
)
-4.3
% Other borrowings
431,861
344,040
534,350
87,821
25.5
%
(102,489
)
-19.2
% Subordinated notes
123,779
123,721
123,556
58
0.0
%
223
0.2
% Junior subordinated debt securities
61,856
61,856
61,856
—
0.0
%
—
0.0
% Total interest-bearing liabilities
13,019,393
12,877,411
13,376,903
141,982
1.1
%
(357,510
)
-2.7
% Noninterest-bearing deposits
3,171,796
3,055,333
3,183,524
116,463
3.8
%
(11,728
)
-0.4
% Other liabilities
214,315
277,647
498,593
(63,332
)
-22.8
%
(284,278
)
-57.0
% Total liabilities
16,405,504
16,210,391
17,059,020
195,113
1.2
%
(653,516
)
-3.8
% Shareholders' equity
2,041,209
1,991,554
1,727,489
49,655
2.5
%
313,720
18.2
% Total liabilities and equity
$
18,446,713
$
18,201,945
$
18,786,509
$
244,768
1.3
%
$
(339,796
)
-1.8
% (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 See Notes to Consolidated Financials
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands) (unaudited) Linked Quarter Year over Year
PERIOD END BALANCES 6/30/2025 3/31/2025 6/30/2024 $ Change % Change $ Change % Change Cash and due from banks
$
634,402
$
587,362
$
822,141
$
47,040
8.0
%
$
(187,739
)
-22.8
% Fed funds sold and reverse repurchases
—
—
—
—
n/m
—
n/m
Securities available for sale
1,782,092
1,737,462
1,621,659
44,630
2.6
%
160,433
9.9
% Securities held to maturity
1,290,572
1,315,053
1,380,487
(24,481
)
-1.9
%
(89,915
)
-6.5
% Loans held for sale (LHFS)
219,649
188,689
185,698
30,960
16.4
%
33,951
18.3
% Loans held for investment (LHFI)
13,464,780
13,241,469
13,155,418
223,311
1.7
%
309,362
2.4
% ACL LHFI
(168,237
)
(167,010
)
(154,685
)
(1,227
)
-0.7
%
(13,552
)
-8.8
% Net LHFI
13,296,543
13,074,459
13,000,733
222,084
1.7
%
295,810
2.3
% Premises and equipment, net
228,964
231,202
232,681
(2,238
)
-1.0
%
(3,717
)
-1.6
% Mortgage servicing rights
132,702
134,395
136,658
(1,693
)
-1.3
%
(3,956
)
-2.9
% Goodwill
334,605
334,605
334,605
—
0.0
%
—
0.0
% Other real estate
8,972
8,348
6,586
624
7.5
%
2,386
36.2
% Operating lease right-of-use assets
34,016
33,861
36,925
155
0.5
%
(2,909
)
-7.9
% Other assets (1)
653,142
650,767
694,314
2,375
0.4
%
(41,172
)
-5.9
% Total assets
$
18,615,659
$
18,296,203
$
18,452,487
$
319,456
1.7
%
$
163,172
0.9
% Deposits: Noninterest-bearing
$
3,135,435
$
3,069,929
$
3,153,506
$
65,506
2.1
%
$
(18,071
)
-0.6
% Interest-bearing
11,980,426
12,010,775
12,309,382
(30,349
)
-0.3
%
(328,956
)
-2.7
% Total deposits
15,115,861
15,080,704
15,462,888
35,157
0.2
%
(347,027
)
-2.2
% Fed funds purchased and repurchases
456,326
360,080
314,121
96,246
26.7
%
142,205
45.3
% Other borrowings
558,654
404,815
336,687
153,839
38.0
%
221,967
65.9
% Subordinated notes
123,812
123,757
123,592
55
0.0
%
220
0.2
% Junior subordinated debt securities
61,856
61,856
61,856
—
0.0
%
—
0.0
% ACL on off-balance sheet credit exposures
25,891
26,561
30,265
(670
)
-2.5
%
(4,374
)
-14.5
% Operating lease liabilities
38,091
37,917
40,517
174
0.5
%
(2,426
)
-6.0
% Other liabilities
164,379
179,286
203,420
(14,907
)
-8.3
%
(39,041
)
-19.2
% Total liabilities
16,544,870
16,274,976
16,573,346
269,894
1.7
%
(28,476
)
-0.2
% Common stock
12,585
12,651
12,753
(66
)
-0.5
%
(168
)
-1.3
% Capital surplus
133,195
143,001
161,834
(9,806
)
-6.9
%
(28,639
)
-17.7
% Retained earnings
1,955,498
1,914,277
1,796,111
41,221
2.2
%
159,387
8.9
% Accumulated other comprehensive income (loss), net of tax
(30,489
)
(48,702
)
(91,557
)
18,213
37.4
%
61,068
66.7
% Total shareholders' equity
2,070,789
2,021,227
1,879,141
49,562
2.5
%
191,648
10.2
% Total liabilities and equity
$
18,615,659
$
18,296,203
$
18,452,487
$
319,456
1.7
%
$
163,172
0.9
% (1) Trustmark reclassified its identifiable intangible assets, net to other assets. The prior periods has been reclassified accordingly.
n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year
INCOME STATEMENTS 6/30/2025 3/31/2025 6/30/2024 $ Change % Change $ Change % Change Interest and fees on LHFS & LHFI-FTE
$
209,077
$
201,929
$
216,399
$
7,148
3.5
%
$
(7,322
)
-3.4
% Interest on securities-taxable
26,269
26,056
17,929
213
0.8
%
8,340
46.5
% Interest on securities-tax exempt-FTE
—
—
1
—
n/m
(1
)
-100.0
% Other interest income
4,734
3,846
8,126
888
23.1
%
(3,392
)
-41.7
% Total interest income-FTE
240,080
231,831
242,455
8,249
3.6
%
(2,375
)
-1.0
% Interest on deposits
68,177
67,718
83,681
459
0.7
%
(15,504
)
-18.5
% Interest on fed funds purchased and repurchases
4,513
4,298
5,663
215
5.0
%
(1,150
)
-20.3
% Other interest expense
5,982
5,076
8,778
906
17.8
%
(2,796
)
-31.9
% Total interest expense
78,672
77,092
98,122
1,580
2.0
%
(19,450
)
-19.8
% Net interest income-FTE
161,408
154,739
144,333
6,669
4.3
%
17,075
11.8
% Provision for credit losses (PCL), LHFI
5,346
8,125
14,696
(2,779
)
-34.2
%
(9,350
)
-63.6
% PCL, off-balance sheet credit exposures
(670
)
(2,831
)
(3,600
)
2,161
76.3
%
2,930
81.4
% PCL, LHFI sale of 1-4 family mortgage loans
—
—
8,633
—
n/m
(8,633
)
-100.0
% Net interest income after provision-FTE
156,732
149,445
124,604
7,287
4.9
%
32,128
25.8
% Service charges on deposit accounts
10,585
10,636
10,924
(51
)
-0.5
%
(339
)
-3.1
% Bank card and other fees
8,754
7,664
9,225
1,090
14.2
%
(471
)
-5.1
% Mortgage banking, net
8,602
8,771
4,204
(169
)
-1.9
%
4,398
n/m
Wealth management
9,638
9,543
9,692
95
1.0
%
(54
)
-0.6
% Other, net
2,311
5,970
7,461
(3,659
)
-61.3
%
(5,150
)
-69.0
% Securities gains (losses), net
—
—
(182,792
)
—
n/m
182,792
100.0
% Total noninterest income (loss)
39,890
42,584
(141,286
)
(2,694
)
-6.3
%
181,176
n/m
Salaries and employee benefits
68,298
68,492
64,838
(194
)
-0.3
%
3,460
5.3
% Services and fees
26,998
26,247
24,743
751
2.9
%
2,255
9.1
% Net occupancy-premises
7,507
7,385
7,265
122
1.7
%
242
3.3
% Equipment expense
6,206
6,308
6,241
(102
)
-1.6
%
(35
)
-0.6
% Other expense
16,105
15,579
15,239
526
3.4
%
866
5.7
% Total noninterest expense
125,114
124,011
118,326
1,103
0.9
%
6,788
5.7
% Income (loss) from continuing operations (cont. ops) before income taxes and tax eq adj
71,508
68,018
(135,008
)
3,490
5.1
%
206,516
n/m
Tax equivalent adjustment
2,652
2,684
3,304
(32
)
-1.2
%
(652
)
-19.7
% Income (loss) from cont. ops before income taxes
68,856
65,334
(138,312
)
3,522
5.4
%
207,168
n/m
Income taxes from cont. ops
13,015
11,701
(37,707
)
1,314
11.2
%
50,722
n/m
Income (loss) from cont. ops
55,841
53,633
(100,605
)
2,208
4.1
%
156,446
n/m
Income from discontinued operations (discont. ops) before income taxes
—
—
232,640
—
n/m
(232,640
)
-100.0
% Income taxes from discont. ops
—
—
58,203
—
n/m
(58,203
)
-100.0
% Income from discont. ops
—
—
174,437
—
n/m
(174,437
)
-100.0
% Net income
$
55,841
$
53,633
$
73,832
$
2,208
4.1
%
$
(17,991
)
-24.4
% Per share data (1) Basic earnings (loss) per share from cont. ops
$
0.92
$
0.88
$
(1.64
)
$
0.04
4.5
%
$
2.56
n/m
Basic earnings per share from discont. ops
$
—
$
—
$
2.85
$
—
n/m
$
(2.85
)
-100.0
% Basic earnings per share - total
$
0.92
$
0.88
$
1.21
$
0.04
4.5
%
$
(0.29
)
-24.0
% Diluted earnings (loss) per share from cont. ops
$
0.92
$
0.88
$
(1.64
)
$
0.04
4.5
%
$
2.56
n/m
Diluted earnings per share from discont. ops
$
—
$
—
$
2.84
$
—
n/m
$
(2.84
)
-100.0
% Diluted earnings per share - total
$
0.92
$
0.88
$
1.20
$
0.04
4.5
%
$
(0.28
)
-23.3
% Dividends per share
$
0.24
$
0.24
$
0.23
$
—
0.0
%
$
0.01
4.3
% Weighted average shares outstanding Basic
60,462,578
60,799,984
61,196,820
Diluted
60,693,515
61,049,120
61,415,957
Period end shares outstanding
60,401,684
60,718,411
61,205,969
(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 See Notes to Consolidated Financials
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year
NONPERFORMING ASSETS 6/30/2025 3/31/2025 6/30/2024 $ Change % Change $ Change % Change Nonaccrual LHFI Alabama
$
8,422
$
18,633
$
26,222
$
(10,211
)
-54.8
%
$
(17,800
)
-67.9
% Florida
437
391
614
46
11.8
%
(177
)
-28.8
% Mississippi (1)
54,015
49,107
14,773
4,908
10.0
%
39,242
n/m
Tennessee (2)
2,232
2,339
2,084
(107
)
-4.6
%
148
7.1
% Texas
15,894
16,150
599
(256
)
-1.6
%
15,295
n/m
Total nonaccrual LHFI
81,000
86,620
44,292
(5,620
)
-6.5
%
36,708
82.9
% Other real estate Alabama
772
271
485
501
n/m
287
59.2
% Mississippi (1)
4,860
4,837
1,787
23
0.5
%
3,073
n/m
Tennessee (2)
1,079
979
86
100
10.2
%
993
n/m
Texas
2,261
2,261
4,228
—
0.0
%
(1,967
)
-46.5
% Total other real estate
8,972
8,348
6,586
624
7.5
%
2,386
36.2
% Total nonperforming assets
$
89,972
$
94,968
$
50,878
$
(4,996
)
-5.3
%
$
39,094
76.8
%
LOANS PAST DUE OVER 90 DAYS LHFI
$
3,854
$
4,355
$
5,413
$
(501
)
-11.5
%
$
(1,559
)
-28.8
% LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase)
$
75,564
$
71,720
$
58,079
$
3,844
5.4
%
$
17,485
30.1
% Quarter Ended Linked Quarter Year over Year
ACL LHFI 6/30/2025 3/31/2025 6/30/2024 $ Change % Change $ Change % Change Beginning Balance
$
167,010
$
160,270
$
142,998
$
6,740
4.2
%
$
24,012
16.8
% PCL, LHFI
5,346
8,125
14,696
(2,779
)
-34.2
%
(9,350
)
-63.6
% PCL, LHFI sale of 1-4 family mortgage loans
—
—
8,633
—
n/m
(8,633
)
-100.0
% Charge-offs, sale of 1-4 family mortgage loans
—
—
(8,633
)
—
n/m
8,633
-100.0
% Charge-offs
(6,380
)
(3,701
)
(5,120
)
(2,679
)
-72.4
%
(1,260
)
-24.6
% Recoveries
2,261
2,316
2,111
(55
)
-2.4
%
150
7.1
% Net (charge-offs) recoveries
(4,119
)
(1,385
)
(11,642
)
(2,734
)
n/m
7,523
64.6
% Ending Balance
$
168,237
$
167,010
$
154,685
$
1,227
0.7
%
$
13,552
8.8
%
NET (CHARGE-OFFS) RECOVERIES Alabama
$
(2,331
)
$
(207
)
$
59
$
(2,124
)
n/m
$
(2,390
)
n/m
Florida
151
(17
)
4
168
n/m
147
n/m
Mississippi (1)
(1,647
)
(755
)
(9,112
)
(892
)
n/m
7,465
81.9
% Tennessee (2)
(258
)
(301
)
(122
)
43
14.3
%
(136
)
n/m
Texas
(34
)
(105
)
(2,471
)
71
67.6
%
2,437
98.6
% Total net (charge-offs) recoveries
$
(4,119
)
$
(1,385
)
$
(11,642
)
$
(2,734
)
n/m
$
7,523
64.6
% (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 See Notes to Consolidated Financials
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands) (unaudited) Quarter Ended Six Months Ended
AVERAGE BALANCES 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Securities AFS-taxable
$
1,745,924
$
1,726,291
$
1,708,226
$
1,658,999
$
1,866,227
$
1,736,162
$
1,896,923
Securities HTM-taxable
1,303,195
1,325,185
1,346,141
1,368,943
1,421,246
1,314,129
1,419,861
Securities HTM-nontaxable
—
—
—
—
112
—
226
Total securities
3,049,119
3,051,476
3,054,367
3,027,942
3,287,585
3,050,291
3,317,010
Loans (includes loans held for sale)
13,543,505
13,320,276
13,275,762
13,379,658
13,309,127
13,432,507
13,239,466
Other earning assets
414,733
365,505
422,083
607,928
592,735
390,255
582,032
Total earning assets
17,007,357
16,737,257
16,752,212
17,015,528
17,189,447
16,873,053
17,138,508
ACL LHFI
(166,430
)
(159,893
)
(157,659
)
(154,476
)
(143,245
)
(163,180
)
(140,978
) Other assets
1,605,786
1,624,581
1,627,890
1,646,241
1,740,307
1,615,132
1,735,414
Total assets
$
18,446,713
$
18,201,945
$
18,222,443
$
18,507,293
$
18,786,509
$
18,325,005
$
18,732,944
Interest-bearing demand deposits (1)
$
7,682,684
$
7,789,239
$
7,789,318
$
7,787,639
$
7,845,195
$
7,735,667
$
7,889,069
Savings deposits (1)
989,689
993,232
983,292
1,006,668
1,031,140
991,451
1,038,002
Time deposits
3,313,420
3,160,134
3,265,358
3,393,216
3,346,046
3,237,200
3,333,824
Total interest-bearing deposits
11,985,793
11,942,605
12,037,968
12,187,523
12,222,381
11,964,318
12,260,895
Fed funds purchased and repurchases
416,104
405,189
357,798
375,559
434,760
410,677
431,444
Other borrowings
431,861
344,040
218,244
339,417
534,350
388,193
498,905
Subordinated notes
123,779
123,721
123,666
123,611
123,556
123,750
123,529
Junior subordinated debt securities
61,856
61,856
61,856
61,856
61,856
61,856
61,856
Total interest-bearing liabilities
13,019,393
12,877,411
12,799,532
13,087,966
13,376,903
12,948,794
13,376,629
Noninterest-bearing deposits
3,171,796
3,055,333
3,192,358
3,221,516
3,183,524
3,113,886
3,152,045
Other liabilities
214,315
277,647
257,990
274,563
498,593
245,806
502,265
Total liabilities
16,405,504
16,210,391
16,249,880
16,584,045
17,059,020
16,308,486
17,030,939
Shareholders' equity
2,041,209
1,991,554
1,972,563
1,923,248
1,727,489
2,016,519
1,702,005
Total liabilities and equity
$
18,446,713
$
18,201,945
$
18,222,443
$
18,507,293
$
18,786,509
$
18,325,005
$
18,732,944
(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
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands) (unaudited)
PERIOD END BALANCES 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Cash and due from banks
$
634,402
$
587,362
$
567,251
$
805,436
$
822,141
Fed funds sold and reverse repurchases
—
—
—
10,000
—
Securities available for sale
1,782,092
1,737,462
1,692,534
1,725,795
1,621,659
Securities held to maturity
1,290,572
1,315,053
1,335,385
1,358,358
1,380,487
LHFS
219,649
188,689
200,307
216,454
185,698
LHFI
13,464,780
13,241,469
13,089,942
13,100,111
13,155,418
ACL LHFI
(168,237
)
(167,010
)
(160,270
)
(157,929
)
(154,685
) Net LHFI
13,296,543
13,074,459
12,929,672
12,942,182
13,000,733
Premises and equipment, net
228,964
231,202
235,410
236,151
232,681
Mortgage servicing rights
132,702
134,395
139,317
125,853
136,658
Goodwill
334,605
334,605
334,605
334,605
334,605
Other real estate
8,972
8,348
5,917
3,920
6,586
Operating lease right-of-use assets
34,016
33,861
34,668
36,034
36,925
Other assets (1)
653,142
650,767
677,356
685,584
694,314
Total assets
$
18,615,659
$
18,296,203
$
18,152,422
$
18,480,372
$
18,452,487
Deposits: Noninterest-bearing
$
3,135,435
$
3,069,929
$
3,073,565
$
3,142,792
$
3,153,506
Interest-bearing
11,980,426
12,010,775
12,034,610
12,098,143
12,309,382
Total deposits
15,115,861
15,080,704
15,108,175
15,240,935
15,462,888
Fed funds purchased and repurchases
456,326
360,080
324,008
365,643
314,121
Other borrowings
558,654
404,815
301,541
443,458
336,687
Subordinated notes
123,812
123,757
123,702
123,647
123,592
Junior subordinated debt securities
61,856
61,856
61,856
61,856
61,856
ACL on off-balance sheet credit exposures
25,891
26,561
29,392
28,890
30,265
Operating lease liabilities
38,091
37,917
38,698
39,689
40,517
Other liabilities
164,379
179,286
202,723
196,158
203,420
Total liabilities
16,544,870
16,274,976
16,190,095
16,500,276
16,573,346
Common stock
12,585
12,651
12,711
12,753
12,753
Capital surplus
133,195
143,001
157,899
163,156
161,834
Retained earnings
1,955,498
1,914,277
1,875,376
1,833,232
1,796,111
Accumulated other comprehensive income (loss),
net of tax
(30,489
)
(48,702
)
(83,659
)
(29,045
)
(91,557
) Total shareholders' equity
2,070,789
2,021,227
1,962,327
1,980,096
1,879,141
Total liabilities and equity
$
18,615,659
$
18,296,203
$
18,152,422
$
18,480,372
$
18,452,487
(1) Trustmark reclassified its identifiable intangible assets, net to other assets. The prior periods has been reclassified accordingly.
See Notes to Consolidated Financials
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands except per share data) (unaudited) Quarter Ended Six Months Ended
INCOME STATEMENTS 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Interest and fees on LHFS & LHFI-FTE
$
209,077
$
201,929
$
211,019
$
220,433
$
216,399
$
411,006
$
425,855
Interest on securities-taxable
26,269
26,056
26,196
26,162
17,929
52,325
33,563
Interest on securities-tax exempt-FTE
—
—
—
—
1
—
5
Other interest income
4,734
3,846
5,128
8,302
8,126
8,580
16,237
Total interest income-FTE
240,080
231,831
242,343
254,897
242,455
471,911
475,660
Interest on deposits
68,177
67,718
75,941
86,043
83,681
135,895
167,397
Interest on fed funds purchased and repurchases
4,513
4,298
4,036
4,864
5,663
8,811
11,254
Other interest expense
5,982
5,076
3,922
5,971
8,778
11,058
16,481
Total interest expense
78,672
77,092
83,899
96,878
98,122
155,764
195,132
Net interest income-FTE
161,408
154,739
158,444
158,019
144,333
316,147
280,528
PCL, LHFI
5,346
8,125
6,960
7,923
14,696
13,471
22,404
PCL, off-balance sheet credit exposures
(670
)
(2,831
)
502
(1,375
)
(3,600
)
(3,501
)
(3,792
) PCL, LHFI sale of 1-4 family mortgage loans
—
—
—
—
8,633
—
8,633
Net interest income after provision-FTE
156,732
149,445
150,982
151,471
124,604
306,177
253,283
Service charges on deposit accounts
10,585
10,636
11,228
11,272
10,924
21,221
21,882
Bank card and other fees
8,754
7,664
8,717
7,931
9,225
16,418
16,653
Mortgage banking, net
8,602
8,771
7,388
6,119
4,204
17,373
13,119
Wealth management
9,638
9,543
9,319
9,288
9,692
19,181
18,644
Other, net
2,311
5,970
4,298
2,952
7,461
8,281
10,563
Securities gains (losses), net
—
—
—
—
(182,792
)
—
(182,792
) Total noninterest income (loss)
39,890
42,584
40,950
37,562
(141,286
)
82,474
(101,931
) Salaries and employee benefits
68,298
68,492
69,223
66,691
64,838
136,790
130,325
Services and fees
26,998
26,247
26,692
25,724
24,743
53,245
49,174
Net occupancy-premises
7,507
7,385
7,195
7,398
7,265
14,892
14,535
Equipment expense
6,206
6,308
6,208
6,141
6,241
12,514
12,566
Other expense
16,105
15,579
15,112
17,316
15,239
31,684
31,390
Total noninterest expense
125,114
124,011
124,430
123,270
118,326
249,125
237,990
Income (loss) from continuing operations (cont. ops) before income taxes and tax eq adj
71,508
68,018
67,502
65,763
(135,008
)
139,526
(86,638
) Tax equivalent adjustment
2,652
2,684
2,596
3,305
3,304
5,336
6,669
Income (loss) from cont. ops before income taxes
68,856
65,334
64,906
62,458
(138,312
)
134,190
(93,307
) Income taxes from cont. ops
13,015
11,701
8,594
11,128
(37,707
)
24,716
(30,875
) Income (loss) from cont. ops
55,841
53,633
56,312
51,330
(100,605
)
109,474
(62,432
) Income from discontinued operations
(discont. ops) before income taxes
—
—
—
—
232,640
—
237,152
Income taxes from discont. ops
—
—
—
—
58,203
—
59,353
Income from discont. ops
—
—
—
—
174,437
—
177,799
Net income
$
55,841
$
53,633
$
56,312
$
51,330
$
73,832
$
109,474
$
115,367
Per share data (1) Basic earnings (loss) per share from cont. ops
$
0.92
$
0.88
$
0.92
$
0.84
$
(1.64
)
$
1.81
$
(1.02
) Basic earnings per share from discont. ops
$
—
$
—
$
—
$
—
$
2.85
$
—
$
2.91
Basic earnings per share - total
$
0.92
$
0.88
$
0.92
$
0.84
$
1.21
$
1.81
$
1.89
Diluted earnings (loss) per share from cont. ops
$
0.92
$
0.88
$
0.92
$
0.84
$
(1.64
)
$
1.80
$
(1.02
) Diluted earnings per share from discont. ops
$
—
$
—
$
—
$
—
$
2.84
$
—
$
2.90
Diluted earnings per share - total
$
0.92
$
0.88
$
0.92
$
0.84
$
1.20
$
1.80
$
1.88
Dividends per share
$
0.24
$
0.24
$
0.23
$
0.23
$
0.23
$
0.48
$
0.46
Weighted average shares outstanding Basic
60,462,578
60,799,984
61,101,954
61,206,599
61,196,820
60,630,349
61,162,623
Diluted
60,693,515
61,049,120
61,367,825
61,448,410
61,415,957
60,862,773
61,373,850
Period end shares outstanding
60,401,684
60,718,411
61,008,023
61,206,606
61,205,969
60,401,684
61,205,969
(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
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 ($ in thousands) (unaudited) Quarter Ended
NONPERFORMING ASSETS 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Nonaccrual LHFI Alabama
$
8,422
$
18,633
$
18,601
$
25,835
$
26,222
Florida
437
391
305
111
614
Mississippi (1)
54,015
49,107
42,203
31,536
14,773
Tennessee (2)
2,232
2,339
2,431
3,180
2,084
Texas
15,894
16,150
16,569
13,163
599
Total nonaccrual LHFI
81,000
86,620
80,109
73,825
44,292
Other real estate Alabama
772
271
170
170
485
Mississippi (1)
4,860
4,837
2,407
1,772
1,787
Tennessee (2)
1,079
979
1,079
—
86
Texas
2,261
2,261
2,261
1,978
4,228
Total other real estate
8,972
8,348
5,917
3,920
6,586
Total nonperforming assets
$
89,972
$
94,968
$
86,026
$
77,745
$
50,878
LOANS PAST DUE OVER 90 DAYS LHFI
$
3,854
$
4,355
$
4,092
$
5,352
$
5,413
LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase)
$
75,564
$
71,720
$
71,255
$
63,703
$
58,079
Quarter Ended Six Months Ended
ACL LHFI 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Beginning Balance
$
167,010
$
160,270
$
157,929
$
154,685
$
142,998
$
160,270
$
139,367
PCL, LHFI
5,346
8,125
6,960
7,923
14,696
13,471
22,404
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
(6,380
)
(3,701
)
(7,730
)
(7,142
)
(5,120
)
(10,081
)
(11,444
) Recoveries
2,261
2,316
3,111
2,463
2,111
4,577
4,358
Net (charge-offs) recoveries
(4,119
)
(1,385
)
(4,619
)
(4,679
)
(11,642
)
(5,504
)
(15,719
) Ending Balance
$
168,237
$
167,010
$
160,270
$
157,929
$
154,685
$
168,237
$
154,685
NET (CHARGE-OFFS) RECOVERIES Alabama
$
(2,331
)
$
(207
)
$
(3,608
)
$
(3,098
)
$
59
$
(2,538
)
$
(282
) Florida
151
(17
)
8
595
4
134
281
Mississippi (1)
(1,647
)
(755
)
(1,319
)
(1,881
)
(9,112
)
(2,402
)
(10,601
) Tennessee (2)
(258
)
(301
)
(208
)
(296
)
(122
)
(559
)
(301
) Texas
(34
)
(105
)
508
1
(2,471
)
(139
)
(4,816
) Total net (charge-offs) recoveries
$
(4,119
)
$
(1,385
)
$
(4,619
)
$
(4,679
)
$
(11,642
)
$
(5,504
)
$
(15,719
) (1) Mississippi includes Central and Southern Mississippi Regions. (2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. See Notes to Consolidated Financials
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2025 (unaudited) Quarter Ended Six Months Ended
FINANCIAL RATIOS AND OTHER DATA 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Return on average equity from continuing operations
10.97
%
10.92
%
11.36
%
10.62
%
-23.42
%
10.95
%
-7.38
% Return on average equity from adjusted continuing operations (1)
10.97
%
10.92
%
11.36
%
10.62
%
9.06
%
10.95
%
9.11
% Return on average equity - total
10.97
%
10.92
%
11.36
%
10.62
%
17.19
%
10.95
%
13.63
% Return on average tangible equity from continuing operations
13.13
%
13.13
%
13.68
%
12.86
%
-29.05
%
13.13
%
-9.18
% Return on average tangible equity from adjusted continuing operations (1)
13.13
%
13.13
%
13.68
%
12.86
%
11.14
%
13.13
%
11.29
% Return on average tangible equity - total
13.13
%
13.13
%
13.68
%
12.86
%
21.91
%
13.13
%
17.56
% Return on average assets from continuing operations
1.21
%
1.19
%
1.23
%
1.10
%
-2.16
%
1.20
%
-0.67
% Return on average assets from adjusted continuing operations (1)
1.21
%
1.19
%
1.23
%
1.10
%
0.87
%
1.20
%
0.85
% Return on average assets - total
1.21
%
1.19
%
1.23
%
1.10
%
1.58
%
1.20
%
1.24
% Interest margin - Yield - FTE
5.66
%
5.62
%
5.76
%
5.96
%
5.67
%
5.64
%
5.58
% Interest margin - Cost
1.86
%
1.87
%
1.99
%
2.27
%
2.30
%
1.86
%
2.29
% Net interest margin - FTE
3.81
%
3.75
%
3.76
%
3.69
%
3.38
%
3.78
%
3.29
% Efficiency ratio (2)
61.24
%
61.77
%
61.77
%
60.99
%
63.81
%
61.50
%
65.32
% Full-time equivalent employees
2,510
2,506
2,500
2,500
2,515
CREDIT QUALITY RATIOS Net (recoveries) charge-offs (excl sale of 1-4 family mortgage loans) / average loans
0.12
%
0.04
%
0.14
%
0.14
%
0.09
%
0.08
%
0.11
% PCL, LHFI (excl PCL, LHFI sale of 1-4 family mortgage loans) / average loans
0.16
%
0.25
%
0.21
%
0.24
%
0.44
%
0.20
%
0.34
% Nonaccrual LHFI / (LHFI + LHFS)
0.59
%
0.64
%
0.60
%
0.55
%
0.33
% Nonperforming assets / (LHFI + LHFS)
0.66
%
0.71
%
0.65
%
0.58
%
0.38
% Nonperforming assets / (LHFI + LHFS + other real estate)
0.66
%
0.71
%
0.65
%
0.58
%
0.38
% ACL LHFI / LHFI
1.25
%
1.26
%
1.22
%
1.21
%
1.18
% ACL LHFI-commercial / commercial LHFI
1.07
%
1.11
%
1.10
%
1.08
%
1.05
% ACL LHFI-consumer / consumer and home mortgage LHFI
1.83
%
1.76
%
1.62
%
1.64
%
1.59
% ACL LHFI / nonaccrual LHFI
207.70
%
192.81
%
200.06
%
213.92
%
349.24
% ACL LHFI / nonaccrual LHFI (excl individually analyzed loans)
272.20
%
296.41
%
341.20
%
497.27
%
840.20
%
CAPITAL RATIOS Total equity / total assets
11.12
%
11.05
%
10.81
%
10.71
%
10.18
% Tangible equity / tangible assets
9.50
%
9.39
%
9.13
%
9.07
%
8.52
% Tangible equity / risk-weighted assets
11.41
%
11.23
%
10.86
%
10.97
%
10.18
% Tier 1 leverage ratio
10.15
%
10.11
%
9.99
%
9.65
%
9.29
% Common equity tier 1 capital ratio
11.70
%
11.63
%
11.54
%
11.30
%
10.92
% Tier 1 risk-based capital ratio
12.09
%
12.03
%
11.94
%
11.70
%
11.31
% Total risk-based capital ratio
14.15
%
14.10
%
13.97
%
13.71
%
13.29
%
STOCK PERFORMANCE Market value-Close
$
36.46
$
34.49
$
35.37
$
31.82
$
30.04
Book value
$
34.28
$
33.29
$
32.17
$
32.35
$
30.70
Tangible book value
$
28.74
$
27.78
$
26.68
$
26.88
$
25.23
(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
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 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 applicable periods presented.
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.
Expand
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:
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities
$
215,679
$
212,463
$
202,669
$
202,638
$
172,955
U.S. Government agency obligations
65,800
49,325
38,807
19,335
—
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA
34,070
28,108
28,411
25,798
23,489
Issued by FNMA and FHLMC
1,109,203
1,090,137
1,070,538
1,105,310
1,060,869
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
357,340
357,429
352,109
372,714
364,346
Total securities available for sale
$
1,782,092
$
1,737,462
$
1,692,534
$
1,725,795
$
1,621,659
SECURITIES HELD TO MATURITY
U.S. Treasury securities
$
30,226
$
30,033
$
29,842
$
29,648
$
29,455
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA
14,750
15,726
16,218
17,773
17,998
Issued by FNMA and FHLMC
398,161
411,454
423,372
436,177
449,781
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
109,697
116,969
123,685
131,348
138,951
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
737,738
740,871
742,268
743,412
744,302
Total securities held to maturity
$
1,290,572
$
1,315,053
$
1,335,385
$
1,358,358
$
1,380,487
At June 30, 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 $41.5 million.
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities and GSE-backed obligations. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2025
($ in thousands)
(unaudited)
Note 3 – Loan Composition
LHFI consisted of the following during the periods presented:
LHFI BY TYPE
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Loans secured by real estate:
Construction, land development and other land loans
$
1,355,223
$
1,321,631
$
1,417,148
$
1,588,256
$
1,638,972
Secured by 1-4 family residential properties
3,057,362
2,973,978
2,949,543
2,895,006
2,878,295
Secured by nonfarm, nonresidential properties
3,478,932
3,532,842
3,533,282
3,582,552
3,598,647
Other real estate secured
1,918,341
1,876,459
1,633,830
1,475,798
1,344,968
Commercial and industrial loans
1,832,295
1,765,893
1,840,722
1,767,079
1,880,607
Consumer loans
149,395
154,623
151,443
149,436
153,316
State and other political subdivision loans
961,251
974,300
969,836
996,002
1,053,015
Other loans and leases
711,981
641,743
594,138
645,982
607,598
LHFI
13,464,780
13,241,469
13,089,942
13,100,111
13,155,418
ACL LHFI
(168,237
)
(167,010
)
(160,270
)
(157,929
)
(154,685
)
Net LHFI
$
13,296,543
$
13,074,459
$
12,929,672
$
12,942,182
$
13,000,733
Expand
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:
June 30, 2025
LHFI - COMPOSITION BY REGION
Total
Alabama
Florida
Georgia
Mississippi
(Central and
Southern
Regions)
Tennessee
(Memphis, TN
and
Northern MS
Regions)
Texas
Loans secured by real estate:
Construction, land development and other land loans
$
1,355,223
$
459,413
$
35,806
$
208,288
$
312,756
$
45,907
$
293,053
Secured by 1-4 family residential properties
3,057,362
159,166
62,104
—
2,705,119
89,226
41,747
Secured by nonfarm, nonresidential properties
3,478,932
958,454
179,528
88,022
1,519,616
127,731
605,581
Other real estate secured
1,918,341
923,639
1,682
79,823
516,430
935
395,832
Commercial and industrial loans
1,832,295
472,371
19,649
284,845
669,509
123,349
262,572
Consumer loans
149,395
20,191
7,411
—
90,727
14,126
16,940
State and other political subdivision loans
961,251
55,704
65,965
13,032
712,260
24,228
90,062
Other loans and leases
711,981
26,763
3,654
306,942
269,585
56,280
48,757
Loans
$
13,464,780
$
3,075,701
$
375,799
$
980,952
$
6,796,002
$
481,782
$
1,754,544
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots
$
59,410
$
27,229
$
6,919
$
—
$
15,732
$
1,089
$
8,441
Development
100,941
47,362
264
—
17,903
14,197
21,215
Unimproved land
98,549
18,004
8,648
—
22,689
8,457
40,751
1-4 family construction
302,013
154,676
9,631
12,335
79,438
22,016
23,917
Other construction
794,310
212,142
10,344
195,953
176,994
148
198,729
Construction, land development
and other land loans
$
1,355,223
$
459,413
$
35,806
$
208,288
$
312,756
$
45,907
$
293,053
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2025 ($ in thousands) (unaudited)
Note 3 – Loan Composition (continued)
June 30, 2025
Total
Alabama
Florida
Georgia
Mississippi
(Central and
Southern
Regions)
Tennessee
(Memphis, TN
and
Northern MS
Regions)
Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail
$
274,281
$
73,703
$
15,224
$
—
$
98,635
$
19,837
$
66,882
Office
233,501
82,433
18,266
—
91,611
2,713
38,478
Hotel/motel
277,749
143,283
43,238
—
68,172
23,056
—
Mini-storage
159,599
40,004
1,371
30,531
86,638
593
462
Industrial
521,155
100,337
16,256
57,491
199,356
2,483
145,232
Health care
149,551
123,342
664
—
23,158
317
2,070
Convenience stores
20,209
2,130
386
—
11,509
184
6,000
Nursing homes/senior living
351,436
110,473
—
—
145,089
3,822
92,052
Other
113,964
27,944
8,413
—
61,507
7,280
8,820
Total non-owner occupied loans
2,101,445
703,649
103,818
88,022
785,675
60,285
359,996
Owner-occupied:
Office
138,427
47,951
31,876
—
32,190
8,351
18,059
Churches
46,705
10,721
3,588
—
27,137
2,940
2,319
Industrial warehouses
198,471
14,427
7,936
—
51,542
12,614
111,952
Health care
119,133
11,243
7,685
—
91,726
2,155
6,324
Convenience stores
105,414
10,091
2,053
—
57,497
—
35,773
Retail
77,442
7,914
12,589
—
43,239
6,847
6,853
Restaurants
59,179
2,706
2,620
—
27,646
19,997
6,210
Auto dealerships
38,342
3,552
160
—
20,310
14,320
—
Nursing homes/senior living
471,731
129,518
—
—
316,320
—
25,893
Other
122,643
16,682
7,203
—
66,334
222
32,202
Total owner-occupied loans
1,377,487
254,805
75,710
—
733,941
67,446
245,585
Loans secured by nonfarm, nonresidential properties
$
3,478,932
$
958,454
$
179,528
$
88,022
$
1,519,616
$
127,731
$
605,581
Expand
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
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Securities – taxable
3.46
%
3.46
%
3.41
%
3.44
%
2.19
%
3.46
%
2.03
%
Securities – nontaxable
—
—
—
—
3.59
%
—
4.45
%
Securities – total
3.46
%
3.46
%
3.41
%
3.44
%
2.19
%
3.46
%
2.04
%
LHFI & LHFS
6.19
%
6.15
%
6.32
%
6.55
%
6.54
%
6.17
%
6.47
%
Other earning assets
4.58
%
4.27
%
4.83
%
5.43
%
5.51
%
4.43
%
5.61
%
Total earning assets
5.66
%
5.62
%
5.76
%
5.96
%
5.67
%
5.64
%
5.58
%
Interest-bearing deposits
2.28
%
2.30
%
2.51
%
2.81
%
2.75
%
2.29
%
2.75
%
Fed funds purchased & repurchases
4.35
%
4.30
%
4.49
%
5.15
%
5.24
%
4.33
%
5.25
%
Other borrowings
3.89
%
3.89
%
3.86
%
4.53
%
4.91
%
3.89
%
4.84
%
Total interest-bearing liabilities
2.42
%
2.43
%
2.61
%
2.94
%
2.95
%
2.43
%
2.93
%
Total Deposits
1.80
%
1.83
%
1.98
%
2.22
%
2.18
%
1.82
%
2.18
%
Net interest margin
3.81
%
3.75
%
3.76
%
3.69
%
3.38
%
3.78
%
3.29
%
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 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 increased six basis points when compared to the first quarter of 2025, totaling 3.81% for the second quarter of 2025, primarily due to the increase in the yield for the loans held for investment and held for sale portfolio as well as the decrease in the cost of interest-bearing liabilities.
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 $541 thousand during the second quarter of 2025.
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
Expand
Quarter Ended
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Mortgage servicing income, net
$
7,142
$
7,161
$
7,161
$
7,127
$
6,993
$
14,303
$
13,927
Change in fair value-MSR from runoff
(3,596
)
(2,062
)
(3,118
)
(3,154
)
(3,447
)
(5,658
)
(5,373
)
Gain on sales of loans, net
5,597
4,253
4,470
4,648
5,151
9,850
10,160
Mortgage banking income before hedge
ineffectiveness
9,143
9,352
8,513
8,621
8,697
18,495
18,714
Change in fair value-MSR from market changes
(1,946
)
(5,928
)
12,710
(10,406
)
(1,626
)
(7,874
)
3,497
Change in fair value of derivatives
1,405
5,347
(13,835
)
7,904
(2,867
)
6,752
(9,092
)
Net positive (negative) hedge ineffectiveness
(541
)
(581
)
(1,125
)
(2,502
)
(4,493
)
(1,122
)
(5,595
)
Mortgage banking, net
$
8,602
$
8,771
$
7,388
$
6,119
$
4,204
$
17,373
$
13,119
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2025
($ in thousands)
(unaudited)
Note 6 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the periods presented:
Quarter Ended
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Partnership amortization for tax credit purposes
$
(2,137
)
$
(2,124
)
$
(1,992
)
$
(1,977
)
$
(1,824
)
$
(4,261
)
$
(3,658
)
Increase in life insurance cash surrender value
1,911
1,867
1,891
1,883
1,860
3,778
3,704
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
2,537
6,227
4,399
3,046
4,167
8,764
7,259
Total other, net
$
2,311
$
5,970
$
4,298
$
2,952
$
7,461
$
8,281
$
10,563
Expand
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
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Loan expense
$
3,377
$
2,792
$
2,921
$
2,824
$
2,880
$
6,169
$
5,835
Amortization of intangibles
32
31
27
28
27
63
55
FDIC assessment expense
4,064
4,160
4,815
5,071
4,816
8,224
9,325
Other real estate expense, net
159
452
(286
)
2,452
327
611
998
Other miscellaneous expense
8,473
8,144
7,635
6,941
7,189
16,617
15,177
Total other expense
$
16,105
$
15,579
$
15,112
$
17,316
$
15,239
$
31,684
$
31,390
Expand
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.
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2025
($ in thousands except per share data)
(unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
Quarter Ended
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity
$
2,041,209
$
1,991,554
$
1,972,563
$
1,923,248
$
1,727,489
$
2,016,519
$
1,702,005
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(80
)
(113
)
(141
)
(168
)
(195
)
(97
)
(210
)
Total average tangible equity
$
1,706,524
$
1,656,836
$
1,637,817
$
1,588,475
$
1,392,689
$
1,681,817
$
1,367,190
PERIOD END BALANCES
Total shareholders' equity
$
2,070,789
$
2,021,227
$
1,962,327
$
1,980,096
$
1,879,141
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(63
)
(95
)
(126
)
(153
)
(181
)
Total tangible equity
(a)
$
1,736,121
$
1,686,527
$
1,627,596
$
1,645,338
$
1,544,355
TANGIBLE ASSETS
Total assets
$
18,615,659
$
18,296,203
$
18,152,422
$
18,480,372
$
18,452,487
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(63
)
(95
)
(126
)
(153
)
(181
)
Total tangible assets
(b)
$
18,280,991
$
17,961,503
$
17,817,691
$
18,145,614
$
18,117,701
Risk-weighted assets
(c)
$
15,215,021
$
15,024,476
$
14,990,258
$
15,004,024
$
15,165,038
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing operations
$
55,841
$
53,633
$
56,312
$
51,330
$
(100,605
)
$
109,474
$
(62,432
)
Plus: Intangible amortization net of tax from
continuing operations
24
24
20
21
20
48
40
Net income (loss) adjusted for intangible amortization
$
55,865
$
53,657
$
56,332
$
51,351
$
(100,585
)
$
109,522
$
(62,392
)
Period end common shares outstanding
(d)
60,401,684
60,718,411
61,008,023
61,206,606
61,205,969
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity from
continuing operations (1)
13.13 %
13.13 %
13.68 %
12.86 %
-29.05 %
13.13 %
-9.18 %
Tangible equity/tangible assets
(a)/(b)
9.50
%
9.39
%
9.13
%
9.07
%
8.52
%
Tangible equity/risk-weighted assets
(a)/(c)
11.41
%
11.23
%
10.86
%
10.97
%
10.18
%
Tangible book value
(a)/(d)*1,000
$
28.74
$
27.78
$
26.68
$
26.88
$
25.23
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity
$
2,070,789
$
2,021,227
$
1,962,327
$
1,980,096
$
1,879,141
CECL transition adjustment
—
—
6,500
6,500
6,500
AOCI-related adjustments
30,489
48,702
83,659
29,045
91,557
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)
(320,755 )
(320,756 )
(320,756 )
(320,757 )
(320,758 )
Other adjustments and deductions
for CET1 (2)
(955 )
(2,175 )
(2,058 )
(115 )
(847 )
CET1 capital
(e)
1,779,568
1,746,998
1,729,672
1,694,769
1,655,593
Additional tier 1 capital instruments
plus related surplus
60,000
60,000
60,000
60,000
60,000
Tier 1 capital
$
1,839,568
$
1,806,998
$
1,789,672
$
1,754,769
$
1,715,593
Common equity tier 1 capital ratio
(e)/(c)
11.70
%
11.63
%
11.54
%
11.30
%
10.92
%
Expand
(1)
Calculation = ((net income (loss) adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
(2)
Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 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:
Expand
Quarter Ended
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Net interest income (GAAP)
(a)
$
158,756
$
152,055
$
155,848
$
154,714
$
141,029
$
310,811
$
273,859
Noninterest income (loss) (GAAP)
39,890
42,584
40,950
37,562
(141,286
)
82,474
(101,931
)
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
operations (Non-GAAP)
(b) $
39,890 $
42,584 $
40,950 $
37,562 $
38,248 $
82,474 $
77,603
Adjusted pre-provision revenue
(a)+(b)=(c)
$
198,646
$
194,639
$
196,798
$
192,276
$
179,277
$
393,285
$
351,462
Noninterest expense (GAAP)
(d)
$
125,114
$
124,011
$
124,430
$
123,270
$
118,326
$
249,125
$
237,990
PPNR (Non-GAAP)
(c)-(d)
$
73,532
$
70,628
$
72,368
$
69,006
$
60,951
$
144,160
$
113,472
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 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
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Net income (loss) (GAAP) from continuing operations
$
55,841
$
53,633
$
56,312
$
51,330
$
(100,605
)
$
109,474
$
(62,432
)
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
Net income adjusted for significant non-routine
transactions (Non-GAAP) $
55,841 $
53,633 $
56,312 $
51,330 $
40,520 $
109,474 $
78,693
Diluted EPS from adjusted continuing operations
$
0.92
$
0.88
$
0.92
$
0.84
$
0.66
$
1.80
$
1.28
FINANCIAL RATIOS - REPORTED (GAAP)
Return on average equity from continuing operations
10.97
%
10.92
%
11.36
%
10.62
%
-23.42
%
10.95
%
-7.38
%
Return on average tangible equity from continuing operations
13.13
%
13.13
%
13.68
%
12.86
%
-29.05
%
13.13
%
-9.18
%
Return on average assets from continuing operations
1.21
%
1.19
%
1.23
%
1.10
%
-2.16
%
1.20
%
-0.67
%
FINANCIAL RATIOS - ADJUSTED (NON-GAAP)
Return on average equity from adjusted continuing operations
10.97
%
10.92
%
11.36
%
10.62
%
9.06
%
10.95
%
9.11
%
Return on average tangible equity from adjusted
continuing operations
13.13
%
13.13
%
13.68
%
12.86
%
11.14
%
13.13
%
11.29
%
Return on average assets from adjusted continuing operations
1.21
%
1.19
%
1.23
%
1.10
%
0.87
%
1.20
%
0.85
%
Expand
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 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
Six Months Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
6/30/2025
6/30/2024
Total noninterest expense (GAAP)
$
125,114
$
124,011
$
124,430
$
123,270
$
118,326
$
249,125
$
237,990
Less:
Other real estate expense, net
(159
)
(452
)
286
(2,452
)
(327
)
(611
)
(998
)
Amortization of intangibles
(32
)
(31
)
(27
)
(28
)
(27
)
(63
)
(55
)
Charitable contributions resulting in
state tax credits
(334 )
(334 )
(300 )
(300 )
(300 )
(668 )
(600 )
Adjusted noninterest expense (Non-GAAP)
(a)
$
124,589
$
123,194
$
124,389
$
120,490
$
117,672
$
247,783
$
236,337
Net interest income (GAAP)
$
158,756
$
152,055
$
155,848
$
154,714
$
141,029
$
310,811
$
273,859
Add:
Tax equivalent adjustment
2,652
2,684
2,596
3,305
3,304
5,336
6,669
Net interest income-FTE (Non-GAAP)
(b)
$
161,408
$
154,739
$
158,444
$
158,019
$
144,333
$
316,147
$
280,528
Noninterest income (loss) (GAAP)
$
39,890
$
42,584
$
40,950
$
37,562
$
(141,286
)
$
82,474
$
(101,931
)
Add:
Partnership amortization for tax credit purposes
2,137
2,124
1,992
1,977
1,824
4,261
3,658
Loss on sale of 1-4 family mortgage loans
—
—
—
—
4,798
—
4,798
Securities (gains) losses, net
—
—
—
—
182,792
—
182,792
Less:
Visa C shares fair value adjustment
—
—
—
—
(8,056
)
—
(8,056
)
Adjusted noninterest income (Non-GAAP)
(c)
$
42,027
$
44,708
$
42,942
$
39,539
$
40,072
$
86,735
$
81,261
Adjusted revenue (Non-GAAP)
(b)+(c)
$
203,435
$
199,447
$
201,386
$
197,558
$
184,405
$
402,882
$
361,789
Efficiency ratio (Non-GAAP)
(a)/((b)+(c))
61.24
%
61.77
%
61.77
%
60.99
%
63.81
%
61.50
%
65.32
%
Expand