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Business Wire
22-07-2025
- Business
- Business Wire
Trustmark Corporation Announces Second Quarter 2025 Financial Results
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: 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 (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at 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 (877) 344-7529, 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
Business Wire
17-07-2025
- Business
- Business Wire
Western Alliance Bancorporation Reports Second Quarter 2025 Financial Results
PHOENIX--(BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL): CEO COMMENTARY: 'Western Alliance delivered strong second quarter results featuring robust net interest income growth, continued loan and deposit momentum, and healthy earnings generated by improving profitability,' said Kenneth A. Vecchione, President and Chief Executive Officer. 'Accelerating business momentum drove quarterly loan and deposit growth of $1.2 billion and $1.8 billion, respectively, and produced PPNR¹ of $331.2 million. Asset quality continued to perform as expected with our nonperforming loans to total funded HFI loans ratio decreasing to 0.76% and net loan charge-offs of 0.22% of average loans. Overall, we achieved net income of $237.8 million and earnings per share of $2.07 for the second quarter 2025, which resulted in a return on tangible common equity 1 of 14.9%. Tangible book value per share 1 climbed 14.5% year-over-year to $55.87 with a CET 1 ratio of 11.2%.' Expand LINKED-QUARTER BASIS YEAR-OVER-YEAR FINANCIAL HIGHLIGHTS: Net income of $237.8 million and earnings per share of $2.07, up 19.4% and 15.6%, from $199.1 million and $1.79, respectively Net revenue of $845.9 million, an increase of 8.7%, or $67.9 million, compared to an increase in non-interest expenses of 2.9%, or $14.3 million Pre-provision net revenue 1 of $331.2 million, up $53.6 million from $277.6 million Effective tax rate of 18.4%, compared to 19.2% Net income of $237.8 million and earnings per share of $2.07, up 22.8% and 18.3%, from $193.6 million and $1.75, respectively Net revenue of $845.9 million, an increase of 9.6%, or $74.1 million, compared to an increase in non-interest expenses of 5.7%, or $27.9 million Pre-provision net revenue 1 of $331.2 million, up $46.2 million from $285.0 million Effective tax rate of 18.4%, compared to 21.9% FINANCIAL POSITION RESULTS: HFI loans of $55.9 billion, up $1.2 billion, or 2.2% Total deposits of $71.1 billion, up $1.8 billion, or 2.6% HFI loan-to-deposit ratio of 78.7%, down from 79.0% Total equity of $7.4 billion, up $192 million, or 2.7% Increase in HFI loans of $3.5 billion, or 6.7% Increase in total deposits of $4.9 billion, or 7.3% HFI loan-to-deposit ratio of 78.7%, down from 79.1% Increase in total equity of $1.1 billion, or 16.9% LOANS AND ASSET QUALITY: Nonperforming (nonaccrual) loans to funded HFI loans of 0.76%, decreased from 0.82% Criticized loans of $1.5 billion, down $118 million from $1.6 billion Repossessed assets of $218 million, up $167 million from $51 million Annualized net loan charge-offs to average loans outstanding of 0.22%, compared to 0.20% Nonperforming (nonaccrual) loans to funded HFI loans of 0.76%, flat from the prior year Criticized loans of $1.5 billion, up $225 million from $1.3 billion Repossessed assets of $218 million, up $210 million from $8 million Annualized net loan charge-offs to average loans outstanding of 0.22%, compared to 0.18% KEY PERFORMANCE METRICS: Net interest margin of 3.53%, increased from 3.47% Return on average assets and on tangible common equity 1 of 1.10% and 14.9%, compared to 0.97% and 13.4%, respectively Tangible common equity ratio 1 of 7.2%, flat from the prior quarter CET 1 ratio of 11.2%, compared to 11.1% Tangible book value per share 1, net of tax, of $55.87, an increase of 3.3% from $54.10 Adjusted efficiency ratio 1 of 51.8%, compared to 55.8% Net interest margin of 3.53%, decreased from 3.63% Return on average assets and on tangible common equity 1 of 1.10% and 14.9%, compared to 0.99% and 14.3%, respectively Tangible common equity ratio 1 of 7.2%, increased from 6.7% CET 1 ratio of 11.2%, compared to 11.0% Tangible book value per share 1, net of tax, of $55.87, an increase of 14.5% from $48.79 Adjusted efficiency ratio 1 of 51.8%, compared to 51.5% Expand 1 See reconciliation of Non-GAAP Financial Measures. Expand Income Statement Net interest income totaled $697.6 million in the second quarter 2025, an increase of $47.0 million, or 7.2%, from $650.6 million in the first quarter 2025, and an increase of $41.0 million, or 6.2%, compared to the second quarter 2024. The increase in net interest income from the first quarter 2025 is primarily due to higher average interest earning asset balances in the second quarter 2025, partially offset by an increase in short-term borrowings. The increase in net interest income from the second quarter 2024 was driven by both an increase in average interest earning asset balances and lower rates on deposits, partially offset by decreased yields on interest earning assets. The Company recorded a provision for credit losses of $39.9 million in the second quarter 2025, an increase of $8.7 million from $31.2 million in the first quarter 2025, and an increase of $2.8 million from $37.1 million in the second quarter 2024. The provision for credit losses during the second quarter 2025 is primarily reflective of net charge-offs of $29.6 million and loan growth. The Company's net interest margin in the second quarter 2025 was 3.53%, an increase from 3.47% in the first quarter 2025, and a decrease from 3.63% in the second quarter 2024. The increase in net interest margin from the first quarter 2025 was driven by higher yields on investment securities coupled with lower rates on deposits. The decrease in net interest margin from the second quarter 2024 was driven primarily by a lower rate environment that reduced interest earning asset yields. Non-interest income was $148.3 million for the second quarter 2025, compared to $127.4 million for the first quarter 2025, and $115.2 million for the second quarter 2024. The $20.9 million increase in non-interest income from the first quarter 2025 was primarily due to increases in net loan servicing revenue of $16.5 million and net gain on sales of investment securities of $9.3 million, partially offset by decreases in net gain on loan origination and sale activities of $10.1 million. The increase in non-interest income of $33.1 million from the second quarter 2024 was primarily driven by increases in service charges and loan fees, income from bank owned life insurance, and gain on sales of investment securities, partially offset by decreases in net gain on loan origination and sale activities. Net revenue totaled $845.9 million for the second quarter 2025, an increase of $67.9 million, or 8.7%, compared to $778.0 million for the first quarter 2025, and an increase of $74.1 million, or 9.6%, compared to $771.8 million for the second quarter 2024. Non-interest expense was $514.7 million for the second quarter 2025, compared to $500.4 million for the first quarter 2025, and $486.8 million for the second quarter 2024. The $14.3 million increase in non-interest expense from the first quarter 2025 is due primarily to an increase of $10.6 million in deposit costs driven by higher average ECR-related deposit balances. The increase in non-interest expense of $27.9 million from the second quarter 2024 is primarily attributable to increased salaries and employee benefits of $26.9 million and data processing costs of $9.3 million. These increases were partially offset by decreased deposit costs of $26.3 million driven by lower interest rates. The Company's efficiency ratio, adjusted for deposit costs 1, was 51.8% for the second quarter 2025, compared to 55.8% in the first quarter 2025, and 51.5% for the second quarter 2024. Income tax expense was $53.5 million for the second quarter 2025, compared to $47.3 million for the first quarter 2025, and $54.3 million for the second quarter 2024. The increase in income tax expense from the first quarter 2025 is primarily related to an increase in pre-tax income, partially offset by increased investment tax credit benefits. The decrease in income tax expense from the second quarter 2024 is primarily related to a lower effective tax rate driven by increased investment tax credit benefits and a lower state blended tax rate. Net income was $237.8 million for the second quarter 2025, an increase of $38.7 million from $199.1 million for the first quarter 2025, and an increase of $44.2 million from $193.6 million for the second quarter 2024. Earnings per share totaled $2.07 for the second quarter 2025, compared to $1.79 for the first quarter 2025, and $1.75 for the second quarter 2024. The Company views its pre-provision net revenue 1 ("PPNR") as a key metric for assessing the Company's earnings power, which it defines as net revenue less non-interest expense. For the second quarter 2025, the Company's PPNR 1 was $331.2 million, up $53.6 million from $277.6 million in the first quarter 2025, and up $46.2 million from $285.0 million in the second quarter 2024. The Company had 3,655 full-time equivalent employees and 56 offices at June 30, 2025, compared to 3,562 full-time equivalent employees and 56 offices at March 31, 2025, and 3,310 full-time equivalent employees and 56 offices at June 30, 2024. Balance Sheet HFI loans, net of deferred fees, totaled $55.9 billion at June 30, 2025, compared to $54.8 billion at March 31, 2025, and $52.4 billion at June 30, 2024. The increase in HFI loans of $1.2 billion from the prior quarter was primarily driven by increases of $803 million, $215 million, and $190 million in commercial and industrial, commercial real estate non-owner occupied, and residential real estate loans, respectively. The increase in HFI loans of $3.5 billion from June 30, 2024 was primarily driven by increases of $3.2 billion and $608 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively, partially offset by decreases of $186 million and $137 million in construction and land development and commercial real estate owner occupied loans, respectively. HFS loans totaled $3.0 billion at June 30, 2025, compared to $3.2 billion at March 31, 2025, and $2.0 billion at June 30, 2024. The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.71%, 0.71%, and 0.67% at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.78% at June 30, 2025, 0.77% at March 31, 2025, and 0.74% at June 30, 2024. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $8.4 billion, $8.5 billion, and $8.9 billion as of June 30, 2025, March 31, 2025, and June 30, 2024, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.8 million as of June 30, 2025, $11.9 million as of March 31, 2025, and $11.7 million as of June 30, 2024. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 0.91% at June 30, 2025, 0.92% at March 31, 2025, and 0.89% at June 30, 2024. Deposits totaled $71.1 billion at June 30, 2025, an increase of $1.8 billion from $69.3 billion at March 31, 2025, and an increase of $4.9 billion from $66.2 billion at June 30, 2024. By deposit type, the increase from the prior quarter is attributable to increases of $988 million, $503 million, $167 million, and $127 million from non-interest bearing deposits, savings and money market deposits, interest-bearing demand deposits, and certificates of deposit, respectively. From June 30, 2024, savings and money market deposits increased $5.1 billion and non-interest bearing deposits increased $1.5 billion, while interest-bearing demand deposits decreased $1.6 billion and certificates of deposit decreased $163 million. Non-interest bearing deposits were $23.0 billion at June 30, 2025, compared to $22.0 billion at March 31, 2025, and $21.5 billion at June 30, 2024. The table below shows the Company's deposit types as a percentage of total deposits: The Company's ratio of HFI loans to deposits was 78.7% at June 30, 2025, compared to 79.0% at March 31, 2025, and 79.1% at June 30, 2024. Borrowings totaled $6.1 billion at June 30, 2025, $4.2 billion at March 31, 2025, and $5.6 billion at June 30, 2024. Borrowings increased $1.9 billion from March 31, 2025 primarily due to increases of $1.3 billion and $608 million in long-term and short-term borrowings, respectively, driven by higher average HFS loans and investment securities balances, which exceeded deposits.. The increase in borrowings from June 30, 2024 is primarily due to an increase in long-term borrowings of $2.5 billion, partially offset by a decrease in short-term borrowings of $2.0 billion. Qualifying debt totaled $678 million at June 30, 2025, compared to $898 million and $897 million at March 31, 2025 and June 30, 2024, respectively. The decrease in qualifying debt from March 31, 2025 and June 30, 2024 is primarily due to repayment of $225 million of subordinated debt during the quarter ended June 30, 2025. Total equity was $7.4 billion at June 30, 2025, compared to $7.2 billion at March 31, 2025, and $6.3 billion at June 30, 2024. The increase in total equity from the prior quarter was due primarily to net income of $237.8 million. This increase was offset in part by cash dividends paid to common and preferred shareholders of $42.3 million ($0.38 per common share) and $3.2 million ($0.27 per depository share), respectively, coupled with $7.4 million of cash dividends paid on preferred stock of the Company's REIT subsidiary during the second quarter 2025. The increase in equity from June 30, 2024 was primarily driven by the issuance of preferred stock from the Company's REIT subsidiary, net income, and net unrealized fair value gains on available-for-sale securities recorded in other comprehensive loss, net of tax, partially offset by dividends to stockholders. The Company's common equity tier 1 capital ratio was 11.2% at June 30, 2025, compared to 11.1%, and 11.0% at March 31, 2025 and June 30, 2024, respectively. At June 30, 2025, tangible common equity, net of tax 1, was 7.2% of tangible assets 1 and total capital was 14.1% of risk-weighted assets. The Company's tangible book value per share 1 was $55.87 at June 30, 2025, an increase of 3.3% from $54.10 at March 31, 2025, and an increase of 14.5% from $48.79 at June 30, 2024. The increase in tangible book value per share from March 31, 2025 and June 30, 2024 is primarily attributable to net income. Total assets increased $3.7 billion, or 4.4%, to $86.7 billion at June 30, 2025 from $83.0 billion at March 31, 2025, and increased 7.6% from $80.6 billion at June 30, 2024. The increase in total assets from March 31, 2025 was primarily driven by increases in HFI loans and investment securities, partially offset by a decrease in cash and due from banks. The increase in total assets from June 30, 2024 was primarily driven by increases in HFI and HFS loans and bank owned life insurance. Asset Quality Provision for credit losses totaled $39.9 million for the second quarter 2025, compared to $31.2 million for the first quarter 2025, and $37.1 million for the second quarter 2024. Net loan charge-offs in the second quarter 2025 totaled $29.6 million, or 0.22% of average loans (annualized), compared to $25.8 million, or 0.20%, in the first quarter 2025, and $22.8 million, or 0.18%, in the second quarter 2024. Nonaccrual loans decreased $24 million to $427 million during the quarter and increased $26 million from June 30, 2024. Loans past due 90 days and still accruing interest totaled $51 million at June 30, 2025, $44 million at March 31, 2025, and zero at June 30, 2024 (excluding government guaranteed loans of $326 million, $275 million, and $330 million, respectively). Loans past due 30-89 days and still accruing interest totaled $175 million at June 30, 2025, a decrease from $182 million at March 31, 2025, and an increase from $83 million at June 30, 2024 (excluding government guaranteed loans of $168 million, $161 million, and $221 million, respectively). Criticized loans decreased $118 million to $1.5 billion during the quarter and increased $225 million from June 30, 2024. Repossessed assets totaled $218 million at June 30, 2025, compared to $51 million at March 31, 2025, and $8 million at June 30, 2024. Classified assets totaled $1.3 billion at June 30, 2025, an increase of $66 million from $1.2 billion at March 31, 2025, and an increase of $513 million from $748 million at June 30, 2024. The ratio of classified assets to Tier 1 capital plus the allowance for credit losses 2, a common regulatory measure of asset quality, was 16.4% at June 30, 2025, compared to 15.9% at March 31, 2025, and 11.2% at June 30, 2024. 2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules. Expand Conference Call and Webcast Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2025 financial results at 12:00 p.m. ET on Friday, July 18, 2025. Participants may access the call by dialing 1-833-470-1428 and using access code 863006 or via live audio webcast using the website link The webcast is also available via the Company's website at Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET July 18th through 11:59 p.m. ET July 25th by dialing 1-866-813-9403, using access code 760564. Reclassifications Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders' equity as previously reported. Use of Non-GAAP Financial Information This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Cautionary Note Regarding Forward-Looking Statements This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management's estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management's estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements. About Western Alliance Bancorporation With more than $80 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country's top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, clients benefit from a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2024 by American Banker and Bank Director and receiving #1 rankings on Extel's (formerly Institutional Investor's) All-America Executive Team Midcap Banks 2024 for Best CEO, Best CFO and Best Company Board of Directors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit (1) See Reconciliation of Non-GAAP Financial Measures. NM Changes +/- 100% are not meaningful. Expand Western Alliance Bancorporation and Subsidiaries Summary Consolidated Financial Data Unaudited Common Share Data: At or For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 Change % 2025 2024 Change % Diluted earnings per common share $ 2.07 $ 1.75 18.3 % $ 3.86 $ 3.34 15.6 % Book value per common share 61.77 54.80 12.7 Tangible book value per common share, net of tax (1) 55.87 48.79 14.5 Average common shares outstanding (in millions): Basic 109.0 108.6 0.3 108.9 108.6 0.3 Diluted 109.6 109.1 0.4 109.6 109.1 0.5 Common shares outstanding 110.4 110.2 0.2 Selected Performance Ratios: Return on average assets (2) 1.10 % 0.99 % 11.1 % 1.04 % 0.99 % 5.1 % Return on average tangible common equity (1, 2) 14.9 14.3 4.2 14.2 13.8 2.9 Net interest margin (2) 3.53 3.63 (2.8 ) 3.50 3.61 (3.0 ) Efficiency ratio 60.1 62.3 (3.5 ) 61.7 63.7 (3.1 ) Efficiency ratio, adjusted for deposit costs (1) 51.8 51.5 0.6 53.7 54.4 (1.3 ) HFI loan to deposit ratio 78.7 79.1 (0.5 ) Asset Quality Ratios: Net charge-offs to average loans outstanding (2) 0.22 % 0.18 % 22.2 % 0.21 % 0.13 % 61.5 % Nonaccrual loans to funded HFI loans 0.76 0.76 — Nonaccrual loans and repossessed assets to total assets 0.74 0.51 45.1 Allowance for loan losses to funded HFI loans 0.71 0.67 6.0 Allowance for loan losses to nonaccrual HFI loans 92 88 5.7 Capital Ratios: Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Tangible common equity (1) 7.2 % 7.2 % 6.7 % Common Equity Tier 1 (3) 11.2 11.1 11.0 Tier 1 Leverage ratio (3) 8.4 8.6 8.0 Tier 1 Capital (3) 12.3 12.3 11.7 Total Capital (3) 14.1 14.5 13.9 Expand (1) See Reconciliation of Non-GAAP Financial Measures. (2) Annualized on an actual/actual basis for periods less than 12 months. (3) Capital ratios for June 30, 2025 are preliminary. NM Changes +/- 100% are not meaningful. Expand Western Alliance Bancorporation and Subsidiaries Condensed Consolidated Income Statements Unaudited Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) Interest income: Loans $ 914.3 $ 896.7 $ 1,795.3 $ 1,768.6 Investment securities 201.5 190.5 369.5 334.5 Other 38.6 60.3 85.2 99.4 Total interest income 1,154.4 1,147.5 2,250.0 2,202.5 Interest expense: Deposits 377.8 410.3 756.1 790.9 Qualifying debt 8.2 9.6 17.5 19.1 Borrowings 70.8 71.0 128.2 137.0 Total interest expense 456.8 490.9 901.8 947.0 Net interest income 697.6 656.6 1,348.2 1,255.5 Provision for credit losses 39.9 37.1 71.1 52.3 Net interest income after provision for credit losses 657.7 619.5 1,277.1 1,203.2 Non-interest income: Service charges and loan fees 36.9 17.8 74.1 34.2 Net gain on loan origination and sale activities 39.4 46.8 88.9 92.1 Net loan servicing revenue 38.3 38.1 60.1 84.5 Income from bank owned life insurance 11.0 1.7 22.4 2.7 Gain on sales of investment securities 11.4 2.3 13.5 1.4 Fair value gain adjustments, net 0.1 0.7 1.1 1.0 Income (loss) from equity investments 2.9 4.2 (1.9 ) 21.3 Other 8.3 3.6 17.5 7.9 Total non-interest income 148.3 115.2 275.7 245.1 Non-interest expenses: Salaries and employee benefits 179.9 153.0 362.3 307.9 Deposit costs 147.4 173.7 284.2 310.7 Data processing 45.0 35.7 90.2 71.7 Insurance 37.4 33.8 75.3 92.7 Legal, professional, and directors' fees 25.3 25.8 54.2 55.9 Loan servicing expenses 20.1 16.6 36.5 31.6 Occupancy 16.9 18.4 34.1 35.9 Business development and marketing 6.1 6.4 12.0 11.9 Loan acquisition and origination expenses 5.8 5.1 11.0 9.9 Other 30.8 18.3 55.3 40.4 Total non-interest expense 514.7 486.8 1,015.1 968.6 Income before income taxes 291.3 247.9 537.7 479.7 Income tax expense 53.5 54.3 100.8 108.7 Net income 237.8 193.6 436.9 371.0 Net income attributable to noncontrolling interest 7.4 — 7.4 — Net income attributable to Western Alliance 230.4 193.6 429.5 371.0 Dividends on preferred stock 3.2 3.2 6.4 6.4 Net income available to common stockholders $ 227.2 $ 190.4 $ 423.1 $ 364.6 Earnings per common share: Diluted shares 109.6 109.1 109.6 109.1 Diluted earnings per share $ 2.07 $ 1.75 $ 3.86 $ 3.34 Expand Western Alliance Bancorporation and Subsidiaries Five Quarter Condensed Consolidated Income Statements Unaudited Three Months Ended Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 (in millions, except per share data) Loans $ 914.3 $ 881.0 $ 915.2 $ 945.3 $ 896.7 Investment securities 201.5 168.0 179.4 197.1 190.5 Other 38.6 46.6 44.0 57.6 60.3 Total interest income 1,154.4 1,095.6 1,138.6 1,200.0 1,147.5 Interest expense: Deposits 377.8 378.3 387.2 422.1 410.3 Qualifying debt 8.2 9.3 9.4 9.5 9.6 Borrowings 70.8 57.4 75.5 71.5 71.0 Total interest expense 456.8 445.0 472.1 503.1 490.9 Net interest income 697.6 650.6 666.5 696.9 656.6 Provision for credit losses 39.9 31.2 60.0 33.6 37.1 Net interest income after provision for credit losses 657.7 619.4 606.5 663.3 619.5 Non-interest income: Service charges and loan fees 36.9 37.2 31.7 30.1 17.8 Net gain on loan origination and sale activities 39.4 49.5 67.9 46.3 46.8 Net loan servicing revenue 38.3 21.8 24.7 12.3 38.1 Income from bank owned life insurance 11.0 11.4 12.1 13.0 1.7 Gain on sales of investment securities 11.4 2.1 7.2 8.8 2.3 Fair value gain adjustments, net 0.1 1.0 2.4 4.1 0.7 Income (loss) from equity investments 2.9 (4.8 ) 11.1 5.8 4.2 Other 8.3 9.2 14.8 5.8 3.6 Total non-interest income 148.3 127.4 171.9 126.2 115.2 Non-interest expenses: Salaries and employee benefits 179.9 182.4 165.4 157.8 153.0 Deposit costs 147.4 136.8 174.5 208.0 173.7 Data processing 45.0 45.2 39.3 38.7 35.7 Insurance 37.4 37.9 36.7 35.4 33.8 Legal, professional, and directors' fees 25.3 28.9 28.7 24.8 25.8 Loan servicing expenses 20.1 16.4 17.8 18.7 16.6 Occupancy 16.9 17.2 19.6 17.6 18.4 Business development and marketing 6.1 5.9 11.1 9.7 6.4 Loan acquisition and origination expenses 5.8 5.2 5.7 5.9 5.1 Other 30.8 24.5 20.2 20.8 18.3 Total non-interest expense 514.7 500.4 519.0 537.4 486.8 Income before income taxes 291.3 246.4 259.4 252.1 247.9 Income tax expense 53.5 47.3 42.5 52.3 54.3 Net income 237.8 199.1 216.9 199.8 193.6 Net income attributable to noncontrolling interest 7.4 — — — — Net income attributable to Western Alliance 230.4 199.1 216.9 199.8 193.6 Dividends on preferred stock 3.2 3.2 3.2 3.2 3.2 Net income available to common stockholders $ 227.2 $ 195.9 $ 213.7 $ 196.6 $ 190.4 Earnings per common share: Diluted shares 109.6 109.6 109.6 109.5 109.1 Diluted earnings per share $ 2.07 $ 1.79 $ 1.95 $ 1.80 $ 1.75 Expand Western Alliance Bancorporation and Subsidiaries Five Quarter Condensed Consolidated Balance Sheets Unaudited Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Cash and due from banks $ 2,767 $ 3,279 $ 4,096 $ 2,592 $ 4,077 Investment securities 18,601 15,868 15,095 16,382 17,268 Loans held for sale 3,022 3,238 2,286 2,327 2,007 Loans held for investment: Commercial and industrial 24,920 24,117 23,128 22,551 21,690 Commercial real estate - non-owner occupied 10,255 10,040 9,868 9,801 9,647 Commercial real estate - owner occupied 1,749 1,787 1,825 1,817 1,886 Construction and land development 4,526 4,504 4,479 4,727 4,712 Residential real estate 14,465 14,275 14,326 14,395 14,445 Consumer 24 38 50 55 50 Loans HFI, net of deferred fees 55,939 54,761 53,676 53,346 52,430 Allowance for loan losses (395 ) (389 ) (374 ) (357 ) (352 ) Loans HFI, net of deferred fees and allowance 55,544 54,372 53,302 52,989 52,078 Mortgage servicing rights 1,044 1,241 1,127 1,011 1,145 Premises and equipment, net 365 361 361 354 351 Operating lease right-of-use asset 130 125 128 127 133 Other assets acquired through foreclosure, net 218 51 52 8 8 Bank owned life insurance 1,033 1,022 1,011 1,000 187 Goodwill and other intangibles, net 653 656 659 661 664 Other assets 3,348 2,830 2,817 2,629 2,663 Total assets $ 86,725 $ 83,043 $ 80,934 $ 80,080 $ 80,581 Liabilities and stockholders' equity: Liabilities: Deposits Non-interest bearing deposits $ 22,997 $ 22,009 $ 18,846 $ 24,965 $ 21,522 Interest bearing: Demand 15,674 15,507 15,878 13,846 17,267 Savings and money market 22,231 21,728 21,208 19,575 17,087 Certificates of deposit 10,205 10,078 10,409 9,654 10,368 Total deposits 71,107 69,322 66,341 68,040 66,244 Borrowings 6,052 4,151 5,573 2,995 5,587 Qualifying debt 678 898 899 898 897 Operating lease liability 160 154 159 159 165 Accrued interest payable and other liabilities 1,321 1,303 1,255 1,311 1,354 Total liabilities 79,318 75,828 74,227 73,403 74,247 Equity: Preferred stock 295 295 295 295 295 Common stock and additional paid-in capital 2,136 2,125 2,120 2,110 2,099 Retained earnings 5,165 4,980 4,826 4,654 4,498 Accumulated other comprehensive loss (482 ) (478 ) (534 ) (382 ) (558 ) Total Western Alliance stockholders' equity 7,114 6,922 6,707 6,677 6,334 Noncontrolling interest in subsidiary 293 293 — — — Total equity 7,407 7,215 6,707 6,677 6,334 Total liabilities and equity $ 86,725 $ 83,043 $ 80,934 $ 80,080 $ 80,581 Expand Western Alliance Bancorporation and Subsidiaries Changes in the Allowance For Credit Losses on Loans Unaudited Three Months Ended Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Allowance for loan losses Balance, beginning of period $ 388.6 $ 373.8 $ 356.6 $ 351.8 $ 340.3 Provision for credit losses (1) 35.7 40.6 51.3 31.4 34.3 Recoveries of loans previously charged-off: Commercial and industrial 0.6 1.0 0.1 0.5 0.1 Commercial real estate - non-owner occupied 5.1 0.6 — 0.7 — Commercial real estate - owner occupied — 0.1 0.2 — — Construction and land development — — — — — Residential real estate — — — — — Consumer — — — — — Total recoveries 5.7 1.7 0.3 1.2 0.1 Loans charged-off: Commercial and industrial 17.0 13.0 24.8 4.3 5.3 Commercial real estate - non-owner occupied 17.4 14.5 9.6 21.7 17.6 Commercial real estate - owner occupied 0.2 — — 0.3 — Construction and land development 0.6 — — 1.5 — Residential real estate 0.1 — — — — Consumer — — — — — Total loans charged-off 35.3 27.5 34.4 27.8 22.9 Net loan charge-offs 29.6 25.8 34.1 26.6 22.8 Balance, end of period $ 394.7 $ 388.6 $ 373.8 $ 356.6 $ 351.8 Allowance for unfunded loan commitments Balance, beginning of period $ 35.1 $ 39.5 $ 37.6 $ 35.9 $ 33.1 Provision for (recovery of) credit losses (1) 4.1 (4.4 ) 1.9 1.7 2.8 Balance, end of period (2) $ 39.2 $ 35.1 $ 39.5 $ 37.6 $ 35.9 Components of the allowance for credit losses on loans Allowance for loan losses $ 394.7 $ 388.6 $ 373.8 $ 356.6 $ 351.8 Allowance for unfunded loan commitments 39.2 35.1 39.5 37.6 35.9 Total allowance for credit losses on loans $ 433.9 $ 423.7 $ 413.3 $ 394.2 $ 387.7 Net charge-offs to average loans - annualized 0.22 % 0.20 % 0.25 % 0.20 % 0.18 % Allowance ratios Allowance for loan losses to funded HFI loans (3) 0.71 % 0.71 % 0.70 % 0.67 % 0.67 % Allowance for credit losses to funded HFI loans (3) 0.78 0.77 0.77 0.74 0.74 Allowance for loan losses to nonaccrual HFI loans 92 86 79 102 88 Allowance for credit losses to nonaccrual HFI loans 102 94 87 113 97 Expand (1) The above tables reflect the provision for credit losses on funded and unfunded loans. For the three months ended June 30, 2025, provision for credit losses totaled $0.1 million for AFS investment securities and zero for HTM investment securities. The allowance for credit losses on AFS and HTM investment securities totaled $0.3 million and $11.6 million, respectively, as of June 30, 2025. (2) The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet. (3) Ratio includes an allowance for credit losses of $11.8 million as of June 30, 2025 related to a pool of loans covered under three separate credit linked note transactions. Expand (1) Excludes government guaranteed residential mortgage loans of $326 million, $275 million, $326 million, $313 million, and $330 million as of each respective date in the table above. (2) Excludes government guaranteed residential mortgage loans of $168 million, $161 million, $183 million, $203 million, and $221 million as of each respective date in the table above. Expand Western Alliance Bancorporation and Subsidiaries Analysis of Average Balances, Yields and Rates Unaudited Three Months Ended June 30, 2025 March 31, 2025 Loans HFS $ 4,859 $ 74.0 6.11 % $ 4,300 $ 66.6 6.28 % Loans HFI: Commercial and industrial 24,094 392.1 6.58 22,831 365.8 6.56 CRE - non-owner occupied 10,253 181.9 7.12 10,011 175.1 7.10 CRE - owner occupied 1,788 26.7 6.11 1,880 28.7 6.30 Construction and land development 4,290 88.7 8.29 4,407 91.8 8.45 Residential real estate 14,399 150.3 4.19 14,346 152.2 4.30 Consumer 32 0.6 7.07 46 0.8 6.69 Total HFI loans (1), (2), (3) 54,856 840.3 6.17 53,521 814.4 6.20 Investment securities: Taxable 15,099 177.4 4.71 13,020 143.5 4.47 Tax-exempt 2,215 24.1 5.46 2,255 24.5 5.52 Total investment securities (1) 17,314 201.5 4.81 15,275 168.0 4.63 Cash and other 3,496 38.6 4.43 4,083 46.6 4.63 Total interest earning assets 80,525 1,154.4 5.80 77,179 1,095.6 5.81 Non-interest earning assets Cash and due from banks 346 331 Allowance for credit losses (403 ) (397 ) Bank owned life insurance 1,026 1,015 Other assets 4,905 4,720 Total assets $ 86,399 $ 82,848 Interest-bearing liabilities Interest-bearing deposits: Interest-bearing demand accounts $ 15,707 $ 97.2 2.48 % $ 15,870 $ 99.9 2.55 % Savings and money market 21,736 170.6 3.15 21,206 164.8 3.15 Certificates of deposit 10,084 110.0 4.38 10,018 113.6 4.60 Total interest-bearing deposits 47,527 377.8 3.19 47,094 378.3 3.26 Short-term borrowings 3,048 35.7 4.69 1,722 20.8 4.89 Long-term debt 2,498 35.1 5.64 2,652 36.6 5.60 Qualifying debt 826 8.2 4.01 899 9.3 4.18 Total interest-bearing liabilities 53,899 456.8 3.40 52,367 445.0 3.45 Interest cost of funding earning assets 2.28 2.34 Non-interest-bearing liabilities Non-interest-bearing deposits 23,569 22,097 Other liabilities 1,576 1,485 Equity 7,355 6,899 Total liabilities and equity $ 86,399 $ 82,848 Net interest income and margin (4) $ 697.6 3.53 % $ 650.6 3.47 % Expand (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.2 million for each of the three months ended June 30, 2025 and March 31, 2025. (2) Included in the yield computation are net loan fees of $25.5 million and $23.8 million for the three months ended June 30, 2025 and March 31, 2025, respectively. (3) Includes non-accrual loans. (4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. Expand Western Alliance Bancorporation and Subsidiaries Analysis of Average Balances, Yields and Rates Unaudited Three Months Ended June 30, 2025 June 30, 2024 Interest earning assets Loans HFI: Commercial and industrial 24,094 392.1 6.58 19,913 370.1 7.54 CRE - non-owner occupied 10,253 181.9 7.12 9,680 185.0 7.69 CRE - owner occupied 1,788 26.7 6.11 1,865 28.5 6.24 Construction and land development 4,290 88.7 8.29 4,740 112.3 9.53 Residential real estate 14,399 150.3 4.19 14,531 157.0 4.35 Consumer 32 0.6 7.07 48 0.8 6.94 Total loans HFI (1), (2), (3) 54,856 840.3 6.17 50,777 853.7 6.79 Investment securities: Taxable 15,099 177.4 4.71 14,029 166.5 4.77 Tax-exempt 2,215 24.1 5.46 2,221 24.0 5.45 Total investment securities (1) 17,314 201.5 4.81 16,250 190.5 4.87 Cash and other 3,496 38.6 4.43 3,983 60.3 6.09 Total interest earning assets 80,525 1,154.4 5.80 73,870 1,147.5 6.30 Non-interest earning assets Cash and due from banks 346 294 Allowance for credit losses (403 ) (350 ) Bank owned life insurance 1,026 187 Other assets 4,905 4,554 Total assets $ 86,399 $ 78,555 Interest bearing liabilities Interest bearing deposits: Interest bearing demand accounts $ 15,707 $ 97.2 2.48 % $ 17,276 $ 131.2 3.05 % Savings and money market accounts 21,736 170.6 3.15 16,579 146.2 3.55 Certificates of deposit 10,084 110.0 4.38 10,427 132.9 5.12 Total interest bearing deposits 47,527 377.8 3.19 44,282 410.3 3.73 Short-term borrowings 3,048 35.7 4.69 4,165 58.9 5.69 Long-term debt 2,498 35.1 5.64 437 12.1 11.19 Qualifying debt 826 8.2 4.01 896 9.6 4.28 Total interest bearing liabilities 53,899 456.8 3.40 49,780 490.9 3.97 Interest cost of funding earning assets 2.28 2.67 Non-interest bearing liabilities Non-interest bearing deposits 23,569 20,996 Other liabilities 1,576 1,449 Equity 7,355 6,330 Total liabilities and equity $ 86,399 $ 78,555 Net interest income and margin (4) $ 697.6 3.53 % $ 656.6 3.63 % Expand (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.2 million and $9.9 million for the three months ended June 30, 2025 and 2024, respectively. (2) Included in the yield computation are net loan fees of $25.5 million and $32.1 million for the three months ended June 30, 2025 and 2024, respectively. (3) Includes non-accrual loans. (4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. Expand Western Alliance Bancorporation and Subsidiaries Analysis of Average Balances, Yields and Rates Unaudited Six Months Ended June 30, 2025 June 30, 2024 Interest earning assets Loans HFS $ 4,581 $ 140.5 6.19 % $ 2,638 $ 82.1 6.26 % Loans HFI: Commercial and industrial 23,466 758.0 6.57 19,329 715.8 7.51 CRE - non-owner occupied 10,133 357.1 7.11 9,574 370.1 7.78 CRE - owner occupied 1,833 55.4 6.20 1,836 55.3 6.15 Construction and land development 4,348 180.5 8.37 4,831 229.4 9.55 Residential real estate 14,373 302.5 4.24 14,626 314.0 4.32 Consumer 39 1.3 6.85 55 1.9 7.13 Total loans HFI (1), (2), (3) 54,192 1,654.8 6.19 50,251 1,686.5 6.78 Investment securities: Taxable 14,065 320.9 4.60 12,373 287.6 4.67 Tax-exempt 2,235 48.6 5.49 2,213 46.9 5.34 Total investment securities (1) 16,300 369.5 4.72 14,586 334.5 4.78 Cash and other 3,788 85.2 4.54 3,468 99.4 5.77 Total interest earning assets 78,861 2,250.0 5.81 70,943 2,202.5 6.30 Non-interest earning assets Cash and due from banks 339 289 Allowance for credit losses (400 ) (349 ) Bank owned life insurance 1,020 187 Other assets 4,813 4,548 Total assets $ 84,633 $ 75,618 Interest bearing liabilities Interest bearing deposits: Interest bearing demand accounts $ 15,788 $ 197.1 2.52 % $ 16,812 $ 253.2 3.03 % Savings and money market accounts 21,473 335.4 3.15 15,913 276.1 3.49 Certificates of deposit 10,051 223.6 4.49 10,278 261.6 5.12 Total interest bearing deposits 47,312 756.1 3.22 43,003 790.9 3.70 Short-term borrowings 2,389 56.4 4.76 3,940 112.6 5.75 Long-term debt 2,575 71.8 5.62 441 24.4 11.13 Qualifying debt 862 17.5 4.10 895 19.1 4.28 Total interest bearing liabilities 53,138 901.8 3.42 48,279 947.0 3.94 Interest cost of funding earning assets 2.31 2.69 Non-interest bearing liabilities Non-interest bearing deposits 22,837 19,589 Other liabilities 1,530 1,493 Equity 7,128 6,257 Total liabilities and equity $ 84,633 $ 75,618 Net interest income and margin (4) $ 1,348.2 3.50 % $ 1,255.5 3.61 % Expand (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $20.3 million and $19.5 million for the six months ended June 30, 2025 and 2024, respectively. (2) Included in the yield computation are net loan fees of $49.3 million and $65.2 million for the six months ended June 30, 2025 and 2024, respectively. (3) Includes non-accrual loans. (4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. Expand Western Alliance Bancorporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures Unaudited Pre-Provision Net Revenue by Quarter: Three Months Ended Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 (in millions) Net interest income $ 697.6 $ 650.6 $ 666.5 $ 696.9 $ 656.6 Total non-interest income 148.3 127.4 171.9 126.2 115.2 Net revenue $ 845.9 $ 778.0 $ 838.4 $ 823.1 $ 771.8 Total non-interest expense 514.7 500.4 519.0 537.4 486.8 Pre-provision net revenue (1) $ 331.2 $ 277.6 $ 319.4 $ 285.7 $ 285.0 Adjusted for: Provision for credit losses 39.9 31.2 60.0 33.6 37.1 Income tax expense 53.5 47.3 42.5 52.3 54.3 Net income $ 237.8 $ 199.1 $ 216.9 $ 199.8 $ 193.6 Expand Efficiency Ratio (Tax Equivalent Basis) by Quarter: Three Months Ended Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 (dollars in millions) Total non-interest expense $ 514.7 $ 500.4 $ 519.0 $ 537.4 $ 486.8 Less: Deposit costs 147.4 136.8 174.5 208.0 173.7 Total non-interest expense, excluding deposit costs 367.3 363.6 344.5 329.4 313.1 Divided by: Total net interest income 697.6 650.6 666.5 696.9 656.6 Plus: Tax equivalent interest adjustment 10.2 10.2 10.0 10.0 9.9 Total non-interest income 148.3 127.4 171.9 126.2 115.2 Less: Deposit costs 147.4 136.8 174.5 208.0 173.7 $ 708.7 $ 651.4 $ 673.9 $ 625.1 $ 608.0 Efficiency ratio (2) 60.1 % 63.5 % 61.2 % 64.5 % 62.3 % Efficiency ratio, adjusted for deposit costs (2) 51.8 % 55.8 % 51.1 % 52.7 % 51.5 % Expand Tangible Common Equity: Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 (dollars and shares in millions, except per share data) Total equity $ 7,407 $ 7,215 $ 6,707 $ 6,677 $ 6,334 Less: Goodwill and intangible assets 653 656 659 661 664 Preferred stock 295 295 295 295 295 Noncontrolling interest in subsidiary 293 293 — — — Total tangible common equity 6,166 5,971 5,753 5,721 5,375 Plus: deferred tax - attributed to intangible assets 2 2 2 2 2 Total tangible common equity, net of tax $ 6,168 $ 5,973 $ 5,755 $ 5,723 $ 5,377 Total assets $ 86,725 $ 83,043 $ 80,934 $ 80,080 $ 80,581 Less: goodwill and intangible assets, net 653 656 659 661 664 Tangible assets 86,072 82,387 80,275 79,419 79,917 Plus: deferred tax - attributed to intangible assets 2 2 2 2 2 Total tangible assets, net of tax $ 86,074 $ 82,389 $ 80,277 $ 79,421 $ 79,919 Tangible common equity ratio (3) 7.2 % 7.2 % 7.2 % 7.2 % 6.7 % Common shares outstanding 110.4 110.4 110.1 110.1 110.2 Tangible book value per share, net of tax (3) $ 55.87 $ 54.10 $ 52.27 $ 51.98 $ 48.79 Expand Non-GAAP Financial Measures Footnotes (1) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company. (2) We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company. (3) We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company. Expand
Hans India
10-05-2025
- Politics
- Hans India
HFI chief on India-Pakistan handball clash: 'Nation comes first, but we need clear guidelines'
Following India's recent handball match against Pakistan at the Asian Beach Championships in Muscat on Friday, Anandeshwar Pandey, Executive Director of the Handball Federation of India (HFI), addressed the controversy surrounding the decision to play the fixture. The match, held as part of the league phase of an ongoing international tournament, sparked debate due to the political sensitivities involved. Pandey clarified that the tournament schedule was finalised four months in advance and that the federation had proactively sought guidance from the Indian government. 'We had written to the government, the Sports Ministry, and the Indian Olympic Association seeking clarity on whether we should play against Pakistan,' he told IANS. 'However, we received no response from any of them.' With no formal directive in place, the HFI faced pressure from the International Handball Federation (IHF), which reportedly warned of sanctions if India refused to participate. 'In the absence of clear directives, we were compelled to proceed with the match,' Pandey explained. 'The IHF even threatened us with a ban.' Pandey emphasised that the match was part of the league phase and that going forward, the federation would abide by any official stance issued by the government. 'If our Sports Ministry provides clear instructions, we will not play against Pakistan again,' he said, reaffirming the HFI's nationalistic stance. 'For us, the nation comes first. We are ready to face any consequences, including a ban, but we need proper and timely guidance from the authorities.' The statement highlights a growing concern among sports administrators about the lack of timely communication from governing bodies on sensitive geopolitical issues. As international sporting events become increasingly complex, federations like the HFI are calling for more structured policies and support from the government to navigate such challenges. India on Saturday said that Pakistan was escalating tensions along the Western border by moving troops into forward areas, suggesting an offensive intent to intensify hostilities. The Indian armed forces, while reaffirming their commitment to non-escalation, asserted that any further provocation would be met with proportionate and decisive action. At a press briefing on 'Operation Sindoor', Wing Commander Vyomika Singh, joined by Foreign Secretary Vikram Misri and Indian Army Colonel Sofiya Qureshi, said, "The Pakistan military has been observed moving its troops into forward areas, indicating an offensive intent to further escalate the situation. Indian armed forces remain in a high state of operational readiness. All hostile actions have been effectively countered and responded to appropriately." "Indian armed forces reiterate their commitment to non-escalation, provided it is reciprocated by the Pakistan military," she added.
Time of India
10-05-2025
- Sport
- Time of India
Under protest, Indian team plays Pakistan in Asian handball
Representative Image India played Pakistan in the 10th Asian Beach Handball Championships in Oman's Muscat on Friday amid a widening conflict between the two countries. The Indians wore black armbands during the league fixture, but were told by the organisers and Asian Handball Federation ( AHF ) to remove them, sources told TOI. The organisers told the Indian coaching staff that such a gesture would lead to the removal of the team from the tournament. The Indian contingent had at first considered boycotting the fixture due to fears of public backlash at home, but decided to go ahead after AHF warned it of a ban and a significant fine. Operation Sindoor India's air defence systems shoot down Pak drones in J&K, Punjab & Rajasthan India-Pakistan tensions: Delhi airport issues travel advisory Operation Sindoor: Multiple explosions heard at several Pakistan air bases 'As per the International Handball Federation's (IHF) charter, we would have to pay a fine of $10,000 if we boycotted the match. We also faced the prospect of a two-year ban from international competitions. The AHF told us categorically that if the Indian team didn't turn up for the match, it would be counted against the spirit of Olympic charter . We were left with no other option,' Anandeshwar Pandey, Executive Director of the Handball Federation of India (HFI), told TOI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Secure Your Child's Future with Strong English Fluency Planet Spark Learn More Undo India lost the pool match 0-2 at the Sultan Qaboos Sports Complex. 'Before the start of the match, the HFI had written separate letters to the sports ministry and Indian Olympic Association (IOA), seeking their guidance whether we should play Pakistan or not. They didn't immediately respond to our mail and the match was upon us. There's no clear advisory from the govt which stops the Indian teams from playing Pakistan. Had there been one, we would have pulled the team out of the competition. 'The entries for the event were sent months in advance and the Indian men's and women's teams had landed in Muscat for the tournament on May 5. We didn't know that the situation between the two nations would turn hostile. There's a possibility that the two teams might meet each other again in the same event, at the semifinal or final stage. We are awaiting the ministry and IOA's advisory on this. If it doesn't come in the coming days, we will tell our team to forfeit the next match against Pakistan, if it happens at all,' added Pandey. The final of the tournament will be played on May 15. The competition will serve as a qualification tournament for the Beach Handball World Championship in 2026.
Business Wire
22-04-2025
- Business
- Business Wire
Trustmark Corporation Announces First Quarter 2025 Financial Results
BUSINESS WIRE)--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. Printer friendly version of earnings release with consolidated financial statements and notes: 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 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 CORPORATION AND SUBSIDIARIES 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 $ 18,065 1.1 % $ (201,328 ) -10.4 % Securities AFS-nontaxable — — — — n/m — n/m Securities HTM-taxable 1,325,185 1,346,141 1,418,476 (20,956 ) -1.6 % (93,291 ) -6.6 % Securities HTM-nontaxable — — 340 — n/m (340 ) -100.0 % Total securities 3,051,476 3,054,367 3,346,435 (2,891 ) -0.1 % (294,959 ) -8.8 % Loans (includes loans held for sale) 13,320,276 13,275,762 13,169,805 44,514 0.3 % 150,471 1.1 % Other earning assets 365,505 422,083 571,329 (56,578 ) -13.4 % (205,824 ) -36.0 % Total earning assets 16,737,257 16,752,212 17,087,569 (14,955 ) -0.1 % (350,312 ) -2.1 % Allowance for credit losses (ACL), loans held for investment (LHFI) (159,893 ) (157,659 ) (138,711 ) (2,234 ) -1.4 % (21,182 ) -15.3 % Other assets 1,624,581 1,627,890 1,730,521 (3,309 ) -0.2 % (105,940 ) -6.1 % Total assets $ 18,201,945 $ 18,222,443 $ 18,679,379 $ (20,498 ) -0.1 % $ (477,434 ) -2.6 % Interest-bearing demand deposits (1) $ 7,789,239 $ 7,789,318 $ 7,932,943 $ (79 ) 0.0 % $ (143,704 ) -1.8 % Savings deposits (1) 993,232 983,292 1,044,863 9,940 1.0 % (51,631 ) -4.9 % Time deposits 3,160,134 3,265,358 3,321,601 (105,224 ) -3.2 % (161,467 ) -4.9 % Total interest-bearing deposits 11,942,605 12,037,968 12,299,407 (95,363 ) -0.8 % (356,802 ) -2.9 % Fed funds purchased and repurchases 405,189 357,798 428,127 47,391 13.2 % (22,938 ) -5.4 % Other borrowings 344,040 218,244 463,459 125,796 57.6 % (119,419 ) -25.8 % Subordinated notes 123,721 123,666 123,501 55 0.0 % 220 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 77,879 0.6 % (498,939 ) -3.7 % Noninterest-bearing deposits 3,055,333 3,192,358 3,120,566 (137,025 ) -4.3 % (65,233 ) -2.1 % Other liabilities 277,647 257,990 505,942 19,657 7.6 % (228,295 ) -45.1 % Total liabilities 16,210,391 16,249,880 17,002,858 (39,489 ) -0.2 % (792,467 ) -4.7 % Shareholders' equity 1,991,554 1,972,563 1,676,521 18,991 1.0 % 315,033 18.8 % Total liabilities and equity $ 18,201,945 $ 18,222,443 $ 18,679,379 $ (20,498 ) -0.1 % $ (477,434 ) -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 See Notes to Consolidated Financials Expand TRUSTMARK CORPORATION AND SUBSIDIARIES 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 $ 20,111 3.5 % $ (18,699 ) -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 44,928 2.7 % 35,163 2.1 % Securities held to maturity 1,315,053 1,335,385 1,415,025 (20,332 ) -1.5 % (99,972 ) -7.1 % Loans held for sale (LHFS) 188,689 200,307 172,937 (11,618 ) -5.8 % 15,752 9.1 % Loans held for investment (LHFI) 13,241,469 13,089,942 13,057,943 151,527 1.2 % 183,526 1.4 % ACL LHFI (167,010 ) (160,270 ) (142,998 ) (6,740 ) -4.2 % (24,012 ) -16.8 % Net LHFI 13,074,459 12,929,672 12,914,945 144,787 1.1 % 159,514 1.2 % Premises and equipment, net 231,202 235,410 232,630 (4,208 ) -1.8 % (1,428 ) -0.6 % Mortgage servicing rights 134,395 139,317 138,044 (4,922 ) -3.5 % (3,649 ) -2.6 % Goodwill 334,605 334,605 334,605 — 0.0 % — 0.0 % Identifiable intangible assets 95 126 208 (31 ) -24.6 % (113 ) -54.3 % Other real estate 8,348 5,917 7,620 2,431 41.1 % 728 9.6 % Operating lease right-of-use assets 33,861 34,668 34,324 (807 ) -2.3 % (463 ) -1.3 % Other assets 650,672 677,230 744,821 (26,558 ) -3.9 % (94,149 ) -12.6 % Assets of discontinued operations — — 73,093 — n/m (73,093 ) -100.0 % Total assets $ 18,296,203 $ 18,152,422 $ 18,376,612 $ 143,781 0.8 % $ (80,409 ) -0.4 % Deposits: Noninterest-bearing $ 3,069,929 $ 3,073,565 $ 3,039,652 $ (3,636 ) -0.1 % $ 30,277 1.0 % Interest-bearing 12,010,775 12,034,610 12,298,905 (23,835 ) -0.2 % (288,130 ) -2.3 % Total deposits 15,080,704 15,108,175 15,338,557 (27,471 ) -0.2 % (257,853 ) -1.7 % Fed funds purchased and repurchases 360,080 324,008 393,215 36,072 11.1 % (33,135 ) -8.4 % Other borrowings 404,815 301,541 482,027 103,274 34.2 % (77,212 ) -16.0 % Subordinated notes 123,757 123,702 123,537 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 26,561 29,392 33,865 (2,831 ) -9.6 % (7,304 ) -21.6 % Operating lease liabilities 37,917 38,698 37,792 (781 ) -2.0 % 125 0.3 % Other liabilities 179,286 202,723 207,583 (23,437 ) -11.6 % (28,297 ) -13.6 % Liabilities of discontinued operations — — 15,581 — n/m (15,581 ) -100.0 % Total liabilities 16,274,976 16,190,095 16,694,013 84,881 0.5 % (419,037 ) -2.5 % Common stock 12,651 12,711 12,747 (60 ) -0.5 % (96 ) -0.8 % Capital surplus 143,001 157,899 160,521 (14,898 ) -9.4 % (17,520 ) -10.9 % Retained earnings 1,914,277 1,875,376 1,736,485 38,901 2.1 % 177,792 10.2 % Accumulated other comprehensive income (loss), net of tax (48,702 ) (83,659 ) (227,154 ) 34,957 41.8 % 178,452 78.6 % Total shareholders' equity 2,021,227 1,962,327 1,682,599 58,900 3.0 % 338,628 20.1 % n/m - percentage changes greater than +/- 100% are considered not meaningful Expand 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 $ (9,090 ) -4.3 % $ (7,527 ) -3.6 % Interest on securities-taxable 26,056 26,196 15,634 (140 ) -0.5 % 10,422 66.7 % Interest on securities-tax exempt-FTE — — 4 — n/m (4 ) -100.0 % Other interest income 3,846 5,128 8,111 (1,282 ) -25.0 % (4,265 ) -52.6 % Total interest income-FTE 231,831 242,343 233,205 (10,512 ) -4.3 % (1,374 ) -0.6 % Interest on deposits 67,718 75,941 83,716 (8,223 ) -10.8 % (15,998 ) -19.1 % Interest on fed funds purchased and repurchases 4,298 4,036 5,591 262 6.5 % (1,293 ) -23.1 % Other interest expense 5,076 3,922 7,703 1,154 29.4 % (2,627 ) -34.1 % Total interest expense 77,092 83,899 97,010 (6,807 ) -8.1 % (19,918 ) -20.5 % Net interest income-FTE 154,739 158,444 136,195 (3,705 ) -2.3 % 18,544 13.6 % Provision for credit losses (PCL), LHFI 8,125 6,960 7,708 1,165 16.7 % 417 5.4 % PCL, off-balance sheet credit exposures (2,831 ) 502 (192 ) (3,333 ) n/m (2,639 ) 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 (1,537 ) -1.0 % 20,766 16.1 % Service charges on deposit accounts 10,636 11,228 10,958 (592 ) -5.3 % (322 ) -2.9 % Bank card and other fees 7,664 8,717 7,428 (1,053 ) -12.1 % 236 3.2 % Mortgage banking, net 8,771 7,388 8,915 1,383 18.7 % (144 ) -1.6 % Wealth management 9,543 9,319 8,952 224 2.4 % 591 6.6 % Other, net 5,970 4,298 3,102 1,672 38.9 % 2,868 92.5 % Securities gains (losses), net — — — — n/m — n/m Total noninterest income (loss) 42,584 40,950 39,355 1,634 4.0 % 3,229 8.2 % Salaries and employee benefits 68,492 69,223 65,487 (731 ) -1.1 % 3,005 4.6 % Services and fees 26,247 26,692 24,431 (445 ) -1.7 % 1,816 7.4 % Net occupancy-premises 7,385 7,195 7,270 190 2.6 % 115 1.6 % Equipment expense 6,308 6,208 6,325 100 1.6 % (17 ) -0.3 % Other expense 15,579 15,112 16,151 467 3.1 % (572 ) -3.5 % Total noninterest expense 124,011 124,430 119,664 (419 ) -0.3 % 4,347 3.6 % Income (loss) from continuing operations (cont. ops) before income taxes and tax eq adj 68,018 67,502 48,370 516 0.8 % 19,648 40.6 % Tax equivalent adjustment 2,684 2,596 3,365 88 3.4 % (681 ) -20.2 % Income (loss) from cont. ops before income taxes 65,334 64,906 45,005 428 0.7 % 20,329 45.2 % Income taxes from cont. ops 11,701 8,594 6,832 3,107 36.2 % 4,869 71.3 % Income (loss) from cont. ops 53,633 56,312 38,173 (2,679 ) -4.8 % 15,460 40.5 % Income from discontinued operations (discont. ops) before income taxes — — 4,512 — n/m (4,512 ) -100.0 % Income taxes from discont. ops — — 1,150 — n/m (1,150 ) -100.0 % Income from discont. ops — — 3,362 — n/m (3,362 ) -100.0 % Net income $ 53,633 $ 56,312 $ 41,535 $ (2,679 ) -4.8 % $ 12,098 29.1 % Per share data (1) Basic earnings (loss) per share from cont. ops $ 0.88 $ 0.92 $ 0.62 $ (0.04 ) -4.3 % $ 0.26 41.9 % Basic earnings per share from discont. ops $ — $ — $ 0.05 $ — n/m $ (0.05 ) -100.0 % Basic earnings per share - total $ 0.88 $ 0.92 $ 0.68 $ (0.04 ) -4.3 % $ 0.20 29.4 % Diluted earnings (loss) per share from cont. ops $ 0.88 $ 0.92 $ 0.62 $ (0.04 ) -4.3 % $ 0.26 41.9 % Diluted earnings per share from discont. ops $ — $ — $ 0.05 $ — n/m $ (0.05 ) -100.0 % Diluted earnings per share - total $ 0.88 $ 0.92 $ 0.68 $ (0.04 ) -4.3 % $ 0.20 29.4 % Dividends per share $ 0.24 $ 0.23 $ 0.23 $ 0.01 4.3 % $ 0.01 4.3 % Weighted average shares outstanding Basic 60,799,984 61,101,954 61,128,425 (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 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 $ 32 0.2 % $ (4,628 ) -19.9 % Florida 391 305 585 86 28.2 % (194 ) -33.2 % Mississippi (1) 49,107 42,203 59,059 6,904 16.4 % (9,952 ) -16.9 % Tennessee (2) 2,339 2,431 1,800 (92 ) -3.8 % 539 29.9 % Texas 16,150 16,569 13,646 (419 ) -2.5 % 2,504 18.3 % Total nonaccrual LHFI 86,620 80,109 98,351 6,511 8.1 % (11,731 ) -11.9 % Other real estate Alabama 271 170 1,050 101 59.4 % (779 ) -74.2 % Florida — — 71 — n/m (71 ) -100.0 % Mississippi (1) 4,837 2,407 2,870 2,430 n/m 1,967 68.5 % Tennessee (2) 979 1,079 86 (100 ) -9.3 % 893 n/m Texas 2,261 2,261 3,543 — 0.0 % (1,282 ) -36.2 % Total other real estate 8,348 5,917 7,620 2,431 41.1 % 728 9.6 % Total nonperforming assets $ 94,968 $ 86,026 $ 105,971 $ 8,942 10.4 % $ (11,003 ) -10.4 % LOANS PAST DUE OVER 90 DAYS LHFI $ 4,355 $ 4,092 $ 5,243 $ 263 6.4 % $ (888 ) -16.9 % LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 71,720 $ 71,255 $ 56,530 $ 465 0.7 % $ 15,190 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 $ 2,341 1.5 % $ 20,903 15.0 % PCL, LHFI 8,125 6,960 7,708 1,165 16.7 % 417 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 ) 4,029 52.1 % 2,623 41.5 % Recoveries 2,316 3,111 2,247 (795 ) -25.6 % 69 3.1 % Net (charge-offs) recoveries (1,385 ) (4,619 ) (4,077 ) 3,234 70.0 % 2,692 66.0 % Ending Balance $ 167,010 $ 160,270 $ 142,998 $ 6,740 4.2 % $ 24,012 16.8 % NET (CHARGE-OFFS) RECOVERIES Alabama $ (207 ) $ (3,608 ) $ (341 ) $ 3,401 94.3 % $ 134 39.3 % Florida (17 ) 8 277 (25 ) n/m (294 ) n/m Mississippi (1) (755 ) (1,319 ) (1,489 ) 564 42.8 % 734 49.3 % Tennessee (2) (301 ) (208 ) (179 ) (93 ) -44.7 % (122 ) -68.2 % Texas (105 ) 508 (2,345 ) (613 ) n/m 2,240 95.5 % Total net (charge-offs) recoveries $ (1,385 ) $ (4,619 ) $ (4,077 ) $ 3,234 70.0 % $ 2,692 66.0 % (1) Mississippi includes Central and Southern Mississippi Regions. Expand 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 Expand 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), net of tax (48,702 ) (83,659 ) (29,045 ) (91,557 ) (227,154 ) See Notes to Consolidated Financials Expand 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 (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 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 (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 Expand TRUSTMARK CORPORATION AND SUBSIDIARIES 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. Expand TRUSTMARK CORPORATION AND SUBSIDIARIES 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 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 continuing operations 13.13 % 13.68 % 12.86 % -29.05 % 11.45 % Return on average tangible equity from adjusted 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 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 1-4 family mortgage loans) / average loans 0.04 % 0.14 % 0.14 % 0.09 % 0.12 % PCL, LHFI (excl PCL, LHFI sale of 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 + 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 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 (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 Expand 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. 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: 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 $44.1 million. Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, GSE-backed obligations and other Aaa rated securities as determined by Moody's. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE. Expand TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2025 ($ 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 Expand
