Trustmark Corporation Announces First Quarter 2025 Financial Results

Business Wire

22-04-2025

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: https://www.businesswire.com/news/home/20250422704139/en
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 [phone] or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, May 7, 2025, in archived format at the same web address or by calling [phone], 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