Latest news with #Trustmark
Yahoo
28-05-2025
- Business
- Yahoo
DOJ, CFPB seek to end Trustmark redlining consent order early
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. The Justice Department and the Consumer Financial Protection Bureau filed a motion last week to terminate a consent order against Trustmark Bank over allegations the Jackson, Mississippi-based lender engaged in redlining between 2014 and 2018. The 2021 consent order marked the launch of a concerted effort by the DOJ, CFPB and Office of the Comptroller of the Currency during the Biden administration to root out racial discrimination in mortgage lending. Throughout three years, the agencies agreed to 15 settlements that brought $150 million in relief, the DOJ said last October. Trustmark has paid a $5 million penalty in connection with the order and disbursed $3.85 million into a loan subsidy program meant to increase the bank's lending presence in majority-Black and majority-Hispanic neighborhoods in the Memphis, Tennessee, area, and took steps to implement improved fair lending procedures, the DOJ and CFPB argued last week. Trustmark's consent order was to remain in effect for five years. Terminating the order now would free the bank 17 months early. The DOJ and CFPB seek to have it dismissed with prejudice, too, so future iterations of the agencies can't file claims later on the same allegations. 'Trustmark has demonstrated a commitment to remediation, and … [the bank] is substantially in compliance with the other monetary and injunctive terms of the Consent Order,' the agencies wrote in paperwork filed in the U.S. District Court for the Western District of Tennessee. The bank likewise referenced its 'commitment to remediation' and 'substantial compliance' with the consent order in a filing Wednesday with the Securities and Exchange Commission disclosing the matter. The CFPB alleged in 2021 that Trustmark failed to adequately market, offer or originate home loans to consumers in majority-Black and Hispanic neighborhoods in and around Memphis. Specifically, just four of the bank's 25 Memphis-area branches were in majority-nonwhite neighborhoods at the time, and none of the four had an assigned mortgage loan officer, the bureau said at the time. Further, Trustmark did not establish internal committees to oversee fair lending until August 2018, after the OCC launched an exam of the bank's fair-lending practices. 'The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms,' the CFPB's then-director, Rohit Chopra, said, noting the launch of the anti-redlining effort. Despite being used as a benchmark, the Trustmark settlement was hardly the first of the Biden era. The DOJ had reached an $8.5 million settlement with Cadence Bank just two months earlier over allegations the lender engaged in redlining in Houston from 2013 to 2017. But the Trustmark order signaled a lock-step among regulators. Observers might argue Trump administration regulators are aligning in a similar lock-step now, with different priorities. The CFPB, for example, dismissed 18 lawsuits and three civil investigative demands against various firms between February and early May, American Banker reported. So last week's Trustmark motion is in character. The DOJ and CFPB noted in their motion that 'modifications' to the 2021 consent order 'may be made upon approval of the Court, by motion by any Party, and that the Parties will work cooperatively to propose modifications if there are changes in material factual circumstances.' Trustmark's $5 million penalty was far from the highest from the cooperative anti-redlining effort. That distinction belongs to Royal Bank of Canada subsidiary City National Bank, which was ordered to pay $31 million in 2023. Recommended Reading Shared zeal for CRA reform leads OCC chief, entrepreneur to rare rapport
Business Wire
08-05-2025
- Business
- Business Wire
Trustmark Introduces Healthcare Highways to Enhance Network Offerings
LAKE FOREST, Ill.--(BUSINESS WIRE)--Trustmark Small Business Benefits ®, a division of national employee benefits provider Trustmark ®, is pleased to expand its network offerings with the addition of Healthcare Highways ®, a high-performance provider network serving Texas, Louisiana and Oklahoma. This strategic addition reinforces Trustmark's commitment to delivering flexible, cost-effective health benefit solutions to businesses. "We are committed to continuously enhancing our network offerings to provide the best possible healthcare solutions for our clients,' said Randy Weinstock, President of Small Business Benefits. 'The introduction of Healthcare Highways is a testament to our dedication to affordability, quality, and comprehensive coverage. We believe this new option will significantly benefit our clients and strengthen our position in the market." Healthcare Highways brings a curated network model designed to improve access to quality care while driving meaningful savings. By providing employers and their employees with access to top-tier providers and robust regional coverage, it caters to those seeking high-quality, cost-effective healthcare solutions. "Offered with Trustmark's level-funded plan designs, Healthcare Highways represents a unique opportunity for our brokers to offer an innovative and cost-effective employee benefit solution,' said Tim Cremin, VP of Sales and Client Management, Small Business Benefits. 'With its competitive pricing and high-performance provider networks, we are confident that this new addition will drive client satisfaction and open new growth opportunities. We are excited to support our brokers in leveraging this fantastic offering." Learn More For further inquiries, please contact Dan Mueller at dmueller@ About Trustmark Small Business Benefits Trustmark Small Business Benefits ®, a division of national employee benefits provider Trustmark ®, offers level-funded benefit solutions to businesses with five or more employees, often providing solutions typically reserved for larger groups. For more than three decades, we've been going beyond to meet the needs of our customers. To learn more, visit Self-funded plans are administered by Star Marketing and Administration, Inc., and stop-loss insurance is provided by Trustmark Life Insurance Company. Trustmark ® and Trustmark Small Business Benefits ® are trademarks of Trustmark Insurance Company. About Healthcare Highways Healthcare Highways is a company specializing in medical provider network services. We partner with high-quality healthcare providers, third-party administrators, payors, consultants, and employers to deliver tailored network solutions that reduce healthcare costs while optimizing health plan benefits. Our approach provides substantial savings, increased value, and a broader range of healthcare options while driving better outcomes for employers and their employees. For more information about Healthcare Highways, please visit Any other trademarks are the property of their respective owners, which are not affiliates of Star Marketing and Administration, Inc., or any other Trustmark company.
Business Wire
23-04-2025
- Business
- Business Wire
HealthFitness Announces Partnership with FitOn Health
LAKE FOREST, Ill.--(BUSINESS WIRE)--HealthFitness, a Trustmark company and a leading provider of comprehensive fitness solutions, is excited to announce its new partnership with FitOn Health, a top health and fitness digital solution. This collaboration aims to transform corporate fitness and wellness by providing employers with innovative virtual fitness solutions that enhance employee health, engagement, and overall wellbeing. 'We thoughtfully selected the ideal partner to bring our vision of delivering an exceptional fitness experience to our clients and their employees,' said HealthFitness President Sean McManamy The partnership between HealthFitness and FitOn Health leverages the strengths of both organizations to elevate corporate fitness and wellbeing. 'We thoughtfully selected the ideal partner to bring our vision of delivering an exceptional fitness experience to our clients and their employees,' said HealthFitness President Sean McManamy. 'By combining FitOn Health's best-in-class virtual fitness technology with HealthFitness' expertise in workplace fitness and wellness programs, employers now have access to a powerful, flexible, and engaging holistic solution that supports a healthier and more productive workforce.' FitOn Health delivers an industry-leading virtual fitness experience that meets the evolving needs of today's workforce. Offering expert-led fitness, nutrition, mindfulness, and sleep content via their app, FitOn Health provides companies with a scalable and cost-effective solution to support employee wellness, whether working in-office or remotely. A recent survey shows that 47% of FitOn Health members surveyed feel more balanced, take fewer sick days, and have more energy since using the benefit, which, in turn, means a happy and healthy population for employers. 'This partnership further cements our commitment to providing the most advanced tools and resources for our corporate clients and their employees,' said McManamy. 'By teaming up with FitOn Health, HealthFitness is enhancing our offerings to provide more diverse programming that engages more people in more ways. Together, we're providing strategies that support an equitable and holistic fitness and wellness approach tailored to the needs of today's hybrid workforce.' FitOn Health's features include: Workouts with world-class trainers and celebrities Meditations, mindfulness and sleep content Fitness and nutrition programs and meal planning 1,000+ easy-to-make healthy recipes Community groups and wellness challenges Premium music, offline downloads and device integration Accessibility on Web, iOS, Android and all major TV platforms 'With this partnership, we are able to reach more employers in the growing corporate fitness and wellness market. And we see immense potential in helping HealthFitness clients and their employees prioritize their wellbeing through innovative digital content, empowering them to take control of their health no matter where they work,' said FitOn CEO, Lindsay Cook. Learn more For more information about how HealthFitness and FitOn Health can transform your company's fitness and wellness program, connect with HealthFitness for a demo and no-obligation meeting. Go to: About HealthFitness HealthFitness, a Trustmark company, builds and manages comprehensive fitness solutions for leading companies and organizations. With a holistic approach that extends beyond fitness, HealthFitness is a proven leader in engaging and connecting people both on-site and online, to create a strong community of health. Parent organization Trustmark, through its subsidiaries and operating divisions, provides a full spectrum of employee benefits to protect and improve individuals' health and overall wellbeing. For more information on HealthFitness, visit To learn about Trustmark, visit About FitOn Health FitOn Health is the leading enterprise health and wellness platform. FitOn Health provides whole-health solutions such as instant access to the widest variety of workout and meditation classes from world-class trainers, experts and celebrities. FitOn Health works with the top health plans and enterprise customers to drive best-in-class engagement and provide an integrated solution through our digital platform. FitOn Health is a one-stop for preventative care, helping your employees and members get more active, connect with coworkers, friends and family–making a healthy lifestyle fun and motivating. FitOn Health has leading engagement with more than 20 million members who have completed over 1 billion workout minutes taken. Learn more at:
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
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23-02-2025
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Here's Why We're Wary Of Buying Trustmark's (NASDAQ:TRMK) For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Trustmark Corporation (NASDAQ:TRMK) is about to go ex-dividend in just four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Trustmark's shares before the 28th of February to receive the dividend, which will be paid on the 15th of March. The company's upcoming dividend is US$0.24 a share, following on from the last 12 months, when the company distributed a total of US$0.96 per share to shareholders. Looking at the last 12 months of distributions, Trustmark has a trailing yield of approximately 2.6% on its current stock price of US$36.50. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. View our latest analysis for Trustmark Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Trustmark distributed an unsustainably high 124% of its profit as dividends to shareholders last year. Without extenuating circumstances, we'd consider the dividend at risk of a cut. When the dividend payout ratio is high, as it is in this case, the dividend is usually at greater risk of being cut in the future. Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Trustmark's earnings per share have fallen at approximately 20% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. It looks like the Trustmark dividends are largely the same as they were 10 years ago. If a company's dividend stays flat while earnings are in decline, this is typically a sign that it is paying out a larger percentage of its earnings. This can become unsustainable if earnings fall far enough. Is Trustmark an attractive dividend stock, or better left on the shelf? Earnings per share are in decline and Trustmark is paying out what we feel is an uncomfortably high percentage of its profit as dividends. Generally we think dividend investors should avoid businesses in this situation, as high payout ratios and declining earnings can lead to the dividend being cut. This is not an overtly appealing combination of characteristics, and we're just not that interested in this company's dividend. With that in mind though, if the poor dividend characteristics of Trustmark don't faze you, it's worth being mindful of the risks involved with this business. For example - Trustmark has 2 warning signs we think you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
