Earnings and profitability significantly
enhanced, share repurchase activity resumed, quarterly cash
dividend increased
Trustmark Corporation (NASDAQGS:TRMK) reported net income of
$56.3 million in the fourth quarter of 2024, representing diluted
earnings per share of $0.92. Net income increased $5.0 million, or
9.7%, from the prior quarter while diluted EPS increased $0.08. In
the fourth quarter, Trustmark’s net income produced a return on
average tangible equity of 13.68% and a return on average assets of
1.23%.
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Financial results in 2024, which included the sale of Fisher
Brown Bottrell Insurance, Inc. (FBBI) in the second quarter,
consisted of both continuing operations and discontinued
operations. The discontinued operations included the financial
results of FBBI prior to the sale as well as the gain on sale in
the second quarter. The discontinued operations results are
presented as a single line item below income from continuing
operations and as separate lines in the balance sheet in the
accompanying tables for all periods presented. Financial results
from adjusted continuing operations(1) exclude significant
non-routine transactions.
For the full year, Trustmark reported net income from continuing
operations of $45.2 million, representing diluted earnings per
share of $0.74 and net income from adjusted continuing
operations(1) of $186.3 million, or $3.04 per diluted share. Net
income from adjusted continuing operations(1) in 2024 increased
$27.1 million, or 17.0%, compared to the prior year.
Trustmark’s net income from continuing operations in 2024
produced a return on average tangible equity of 3.04% and a return
on average assets of 0.24% while net income from adjusted
continuing operations(1) generated a return on average tangible
equity of 12.71% and a return on average assets of 1.01%.
Trustmark’s Board of Directors announced a 4.3% increase in its
regular quarterly dividend to $0.24 per share from $0.23 per share.
The Board declared the dividend payable March 15, 2025, to
shareholders of record on March 1, 2025. This action raises the
indicated annual dividend rate to $0.96 per share from $0.92 per
share. During the fourth quarter Trustmark repurchased $7.5
million, or approximately 203 thousand of its common shares. The
increase in Trustmark's quarterly dividend and resumption of
activity in the share repurchase program have been made possible by
continued improvement in profitability and accretion of
capital.
2024 Highlights
- Total revenue from continuing operations in 2024 was $561.0
million while total revenue from adjusted continuing operations(1)
was $740.5 million, an increase of $39.2 million, or 5.6%, from the
prior year
- Net interest income (FTE) totaled $597.0 million, up 5.4% in
2024 to produce a net interest margin of 3.51%, up 19 basis points
from 2023
- Wealth management revenue totaled $37.3 million, up 6.2% in
2024
- Noninterest income from continuing operations was a negative
$23.4 million in 2024 while noninterest income from adjusted
continuing operations(1) totaled $156.1 million, up $7.7 million,
or 5.2%, from the prior year
- Noninterest expense from continuing operations totaled $485.7
million in 2024, a decline of $10.0 million compared to the prior
year; noninterest expense from adjusted continuing operations(1)
declined $2.1 million in 2024
- Efficiency ratio improved 400 basis points to 63.26% in
2024
- Loans held for investment (HFI) increased $139.4 million, or
1.1%, in 2024
- Net charge-offs represented 0.12% of average loans in 2024,
excluding portfolio sale of 1-4 family mortgage loans in the second
quarter
- Deposits decreased $461.6 million, or 3.0%, in 2024 driven
largely by intentional declines in public funds and brokered
deposits of $397.9 million and $328.9 million, respectively
- Capital ratios materially increased during 2024; repurchased
$7.5 million, or approximately 203 thousand shares, of common
stock
- Continued technology investments to enhance efficiency and
productivity
Duane A. Dewey, President and CEO, commented, “2024 was a
transformational year for Trustmark, reflecting the sale of our
insurance agency, the restructuring of our balance sheet, and
expanded sales and service initiatives designed to meet the needs
of our customers. These actions, along with other initiatives in
prior years, have significantly enhanced financial performance and
Trustmark’s forward earnings profile. Our capital levels rose
meaningfully, which led to the Board’s decision to increase the
quarterly cash dividend along with our renewed activity in the
share repurchase program. Thanks to the dedicated efforts of our
associates, Trustmark is well-positioned for 2025 and beyond.”
Balance Sheet Management
- Loans HFI totaled $13.1 billion at December 31, 2024, down 0.1%
from the prior quarter and up 1.1% year over year
- Deposits totaled $15.1 billion at December 31, 2024, down 0.9%
from the previous quarter and 3.0% year-over-year
- Maintained strong capital position with CET1 ratio of 11.54%
and total risk-based capital ratio of 13.97%
Loans HFI totaled $13.1 billion at December 31, 2024, reflecting
a decrease of $10.2 million, or 0.1%, linked-quarter and an
increase of $139.4 million, or 1.1%, year-over-year. Trustmark’s
loan portfolio remains well-diversified by loan type and
geography.
Deposits totaled $15.1 billion at December 31, 2024, down $132.8
million, or 0.9%, from the prior quarter driven by the intentional
decline in brokered deposits of $150.0 million. Year-over-year,
deposits declined $461.6 million, or 3.0%, driven by intentional
declines in public funds and brokered deposits of $397.9 million
and $328.9 million, respectively. Trustmark continues to maintain a
strong liquidity position as loans HFI represented 86.6% of total
deposits at year-end 2024. Noninterest-bearing deposits represented
20.3% of total deposits at December 31, 2024. Interest-bearing
deposit costs totaled 2.51% for the fourth quarter, a decrease of
30 basis points linked-quarter. The total cost of interest-bearing
liabilities was 2.61% for the fourth quarter of 2024, a decrease of
33 basis points from the prior quarter.
During the fourth quarter, and for the twelve months ended
December 31, 2024, Trustmark repurchased $7.5 million, or
approximately 203 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 December 31, 2024, Trustmark’s tangible equity to
tangible assets ratio was 9.13%, while the total risk-based capital
ratio was 13.97%. Tangible book value per share was $26.68 at
December 31, 2024, up 22.8% from the prior year.
Credit Quality
- Net charge-offs totaled $4.6 million, representing 0.14% of
average loans in the fourth quarter
- Net provision for credit losses totaled $7.5 million in the
fourth quarter
- Allowance for credit losses (ACL) represented 1.22% of loans
HFI and 341.20% of nonperforming loans, excluding individually
analyzed loans at year-end
Nonaccrual loans totaled $80.1 million at December 31, 2024, an
increase of $6.3 million from the prior quarter and a decline of
$19.9 million year-over-year. Other real estate totaled $5.9
million, reflecting an increase of $2.0 million from the prior
quarter and a decrease of $1.0 million from the prior year.
Collectively, nonperforming assets totaled $86.0 million,
representing 0.65% of loans HFI and held for sale (HFS) at December
31, 2024.
The net provision for credit losses totaled $7.5 million in the
fourth quarter compared to $6.5 million in the third quarter and
$6.7 million in the fourth quarter of 2023. The provision for
credit losses for loans HFI was $7.0 million in the fourth quarter
and was primarily attributable to changes to the economic forecast
and net adjustments to the qualitative factors. The provision for
credit losses for off-balance sheet credit exposures was $502
thousand, primarily driven by net adjustments to the qualitative
factors and increases in unfunded commitments.
Allocation of Trustmark’s $160.3 million ACL on loans HFI
represented 1.10% of commercial loans and 1.62% of consumer and
home mortgage loans, resulting in an ACL to total loans HFI of
1.22% at December 31, 2024. Management believes the level of the
ACL is commensurate with the credit losses currently expected in
the loan portfolio.
Revenue Generation
- Total revenue expanded to $196.8 million in the fourth
quarter
- Net interest income (FTE) totaled $158.4 million in the fourth
quarter, up 0.3% linked-quarter
- Net interest margin totaled 3.76% in the fourth quarter, up 7
basis points from the prior quarter
- Noninterest income totaled $41.0 million, up 9.0% from the
prior quarter, representing 20.8% of total revenue in the fourth
quarter
Revenue in the fourth quarter totaled $196.8 million, an
increase of 2.4% from the prior quarter, reflecting growth in net
interest income and noninterest income. In 2024, total revenue from
continuing operations was $561.0 million while total revenue from
adjusted continuing operations(1) was $740.5 million, an increase
of $39.2 million, or 5.6%, from the prior year.
Net interest income (FTE) in the fourth quarter totaled $158.4
million, resulting in a net interest margin of 3.76%, up 7 basis
points from the prior quarter. The increase in the net interest
margin was primarily due to lower costs of interest-bearing
liabilities which were offset in part by lower yields on the loans
HFI and HFS portfolio.
Noninterest income in the fourth quarter totaled $41.0 million,
an increase of $3.4 million from the prior quarter. The
linked-quarter change was broad-based and reflected growth in
virtually all fee-based businesses.
Mortgage loan production in the fourth quarter totaled $372.2
million, a decrease of 5.1% linked-quarter and an increase of 36.9%
year-over-year. Mortgage banking revenue totaled $7.4 million in
the fourth quarter, an increase of $1.3 million from the prior
quarter and $1.9 million year-over-year. The linked-quarter
increase is attributable to a decrease in negative net hedge
ineffectiveness. In 2024, mortgage loan production totaled $1.4
billion, down 2.5% from the prior year. Mortgage banking revenue
totaled $26.6 million in 2024, up $410 thousand from the prior
year.
Wealth management revenue totaled $9.3 million in the fourth
quarter, up 0.3% from the prior quarter and 7.6% from the prior
year. The year-over-year change is attributable to increased trust
management and brokerage revenue. In 2024, wealth management
revenue totaled $37.3 million, up $2.2 million, or 6.2%, from the
prior year, reflecting expanded investment services revenue driven
by growth in assets under management.
Noninterest Expense
- Noninterest expense increased $1.2 million, or 0.9%,
linked-quarter
- Salaries and employee benefits expense increased $2.5 million,
or 3.8%, linked-quarter
- Total other expense decreased $2.2 million, or 12.7%,
linked-quarter
Salaries and employee benefits expense in the fourth quarter
totaled $69.2 million, an increase of $2.5 million, or 3.8%, from
the prior quarter. The increase was driven principally by year-end
incentives. Total services and fees in the fourth quarter totaled
$26.7 million, up $1.0 million from the prior quarter reflecting
increased professional fees. Total other expense decreased $2.2
million, or 12.7%, linked-quarter to $15.1 million principally due
to reduced other real estate expense, net.
(1) Please refer to Consolidated Financial Information, Note 1 –
Significant Non-Routine Transactions and Note 7 – Non-GAAP
Financial Measures.
Significant Non-Routine Transactions in the Second
Quarter
- Completed sale of FBBI, producing a gain on sale of $228.3
million ($171.2 million, net of taxes)
- Restructured investment securities portfolio; sold available
for sale securities of $1.6 billion with an average yield of 1.36%,
which generated a loss of $182.8 million ($137.1 million, net of
taxes); purchased $1.4 billion of available for sale securities
with an average yield of 4.85%
- Sold a portfolio of 1-4 family mortgage loans that were three
payments delinquent and/or nonaccrual at time of selection totaling
$56.2 million (Mortgage Loan Sale) which generated a loss of $13.4
million ($10.1 million, net of taxes); sale drove a $54.1 million
reduction in nonperforming loans
- Exchanged Visa Class B-1 shares for Visa Class B-2 shares and
Visa Class C common stock; Visa Class C stock exchange resulted in
a gain of $8.1 million ($6.0 million, net of taxes)
Additional Information
As previously announced, Trustmark will conduct a conference
call with analysts on Wednesday, January 29, 2025, at 8:30 a.m.
Central Time to discuss the Corporation’s financial results.
Interested parties may listen to the conference call by dialing
(877) 317-3051 or by clicking on the link provided under the
Investor Relations section of our website at www.trustmark.com. A
replay of the conference call will also be available through
Wednesday, February 12, 2025, in archived format at the same web
address or by calling (877) 344-7529, passcode 2478325.
Trustmark is a financial services company providing banking and
financial solutions through offices in Alabama, Florida, Georgia,
Mississippi, Tennessee and Texas. Visit trustmark.com for more
information.
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, and other risks described in our
filings with the SEC.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, we can give no assurance
that such expectations will prove to be correct. Except as required
by law, we undertake no obligation to update or revise any of this
information, whether as the result of new information, future
events or developments or otherwise.
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION December 31, 2024 ($ in
thousands) (unaudited) Linked Quarter Year
over Year QUARTERLY AVERAGE
BALANCES 12/31/2024 9/30/2024
12/31/2023 $ Change % Change $ Change
% Change Securities AFS-taxable
$
1,708,226
$
1,658,999
$
1,986,825
$
49,227
3.0
%
$
(278,599
)
-14.0
%
Securities AFS-nontaxable
—
—
4,246
—
n/m
(4,246
)
-100.0
%
Securities HTM-taxable
1,346,141
1,368,943
1,430,169
(22,802
)
-1.7
%
(84,028
)
-5.9
%
Securities HTM-nontaxable
—
—
340
—
n/m
(340
)
-100.0
%
Total securities
3,054,367
3,027,942
3,421,580
26,425
0.9
%
(367,213
)
-10.7
%
Loans (includes loans held for sale)
13,275,762
13,379,658
13,010,028
(103,896
)
-0.8
%
265,734
2.0
%
Other earning assets
422,083
607,928
670,598
(185,845
)
-30.6
%
(248,515
)
-37.1
%
Total earning assets
16,752,212
17,015,528
17,102,206
(263,316
)
-1.5
%
(349,994
)
-2.0
%
Allowance for credit losses (ACL), loans
held
for investment (LHFI)
(157,659
)
(154,476
)
(133,742
)
(3,183
)
-2.1
%
(23,917
)
-17.9
%
Other assets
1,627,890
1,646,241
1,749,069
(18,351
)
-1.1
%
(121,179
)
-6.9
%
Total assets
$
18,222,443
$
18,507,293
$
18,717,533
$
(284,850
)
-1.5
%
$
(495,090
)
-2.6
%
Interest-bearing demand deposits
$
5,493,700
$
5,382,346
$
5,053,935
$
111,354
2.1
%
$
439,765
8.7
%
Savings deposits
3,278,910
3,411,961
3,526,600
(133,051
)
-3.9
%
(247,690
)
-7.0
%
Time deposits
3,265,358
3,393,216
3,427,384
(127,858
)
-3.8
%
(162,026
)
-4.7
%
Total interest-bearing deposits
12,037,968
12,187,523
12,007,919
(149,555
)
-1.2
%
30,049
0.3
%
Fed funds purchased and repurchases
357,798
375,559
403,041
(17,761
)
-4.7
%
(45,243
)
-11.2
%
Other borrowings
218,244
339,417
590,765
(121,173
)
-35.7
%
(372,521
)
-63.1
%
Subordinated notes
123,666
123,611
123,446
55
0.0
%
220
0.2
%
Junior subordinated debt securities
61,856
61,856
61,856
—
0.0
%
—
0.0
%
Total interest-bearing liabilities
12,799,532
13,087,966
13,187,027
(288,434
)
-2.2
%
(387,495
)
-2.9
%
Noninterest-bearing deposits
3,192,358
3,221,516
3,296,351
(29,158
)
-0.9
%
(103,993
)
-3.2
%
Other liabilities
257,990
274,563
641,662
(16,573
)
-6.0
%
(383,672
)
-59.8
%
Total liabilities
16,249,880
16,584,045
17,125,040
(334,165
)
-2.0
%
(875,160
)
-5.1
%
Shareholders' equity
1,972,563
1,923,248
1,592,493
49,315
2.6
%
380,070
23.9
%
Total liabilities and equity
$
18,222,443
$
18,507,293
$
18,717,533
$
(284,850
)
-1.5
%
$
(495,090
)
-2.6
%
n/m - percentage changes greater than +/- 100% are
considered not meaningful
See Notes to Consolidated
Financial
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION December
31, 2024 ($ in thousands)
(unaudited) Linked
Quarter Year over Year PERIOD
END BALANCES 12/31/2024 9/30/2024
12/31/2023 $ Change % Change $
Change % Change Cash and due from banks
$
567,251
$
805,436
$
975,343
$
(238,185
)
-29.6
%
$
(408,092
)
-41.8
%
Fed funds sold and reverse repurchases
—
10,000
—
(10,000
)
-100.0
%
—
n/m
Securities available for sale
1,692,534
1,725,795
1,762,878
(33,261
)
-1.9
%
(70,344
)
-4.0
%
Securities held to maturity
1,335,385
1,358,358
1,426,279
(22,973
)
-1.7
%
(90,894
)
-6.4
%
Loans held for sale (LHFS)
200,307
216,454
184,812
(16,147
)
-7.5
%
15,495
8.4
%
Loans held for investment (LHFI)
13,089,942
13,100,111
12,950,524
(10,169
)
-0.1
%
139,418
1.1
%
ACL LHFI
(160,270
)
(157,929
)
(139,367
)
(2,341
)
-1.5
%
(20,903
)
-15.0
%
Net LHFI
12,929,672
12,942,182
12,811,157
(12,510
)
-0.1
%
118,515
0.9
%
Premises and equipment, net
235,410
236,151
232,229
(741
)
-0.3
%
3,181
1.4
%
Mortgage servicing rights
139,317
125,853
131,870
13,464
10.7
%
7,447
5.6
%
Goodwill
334,605
334,605
334,605
—
0.0
%
—
0.0
%
Identifiable intangible assets
126
153
236
(27
)
-17.6
%
(110
)
-46.6
%
Other real estate
5,917
3,920
6,867
1,997
50.9
%
(950
)
-13.8
%
Operating lease right-of-use assets
34,668
36,034
35,711
(1,366
)
-3.8
%
(1,043
)
-2.9
%
Other assets
677,230
685,431
752,568
(8,201
)
-1.2
%
(75,338
)
-10.0
%
Assets of discontinued operations
—
—
67,634
—
n/m
(67,634
)
-100.0
%
Total assets
$
18,152,422
$
18,480,372
$
18,722,189
$
(327,950
)
-1.8
%
$
(569,767
)
-3.0
%
Deposits: Noninterest-bearing
$
3,073,565
$
3,142,792
$
3,197,620
$
(69,227
)
-2.2
%
$
(124,055
)
-3.9
%
Interest-bearing
12,034,610
12,098,143
12,372,143
(63,533
)
-0.5
%
(337,533
)
-2.7
%
Total deposits
15,108,175
15,240,935
15,569,763
(132,760
)
-0.9
%
(461,588
)
-3.0
%
Fed funds purchased and repurchases
324,008
365,643
405,745
(41,635
)
-11.4
%
(81,737
)
-20.1
%
Other borrowings
301,541
443,458
483,230
(141,917
)
-32.0
%
(181,689
)
-37.6
%
Subordinated notes
123,702
123,647
123,482
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
29,392
28,890
34,057
502
1.7
%
(4,665
)
-13.7
%
Operating lease liabilities
38,698
39,689
39,097
(991
)
-2.5
%
(399
)
-1.0
%
Other liabilities
202,723
196,158
331,085
6,565
3.3
%
(128,362
)
-38.8
%
Liabilities of discontinued operations
—
—
12,027
—
n/m
(12,027
)
-100.0
%
Total liabilities
16,190,095
16,500,276
17,060,342
(310,181
)
-1.9
%
(870,247
)
-5.1
%
Common stock
12,711
12,753
12,725
(42
)
-0.3
%
(14
)
-0.1
%
Capital surplus
157,899
163,156
159,688
(5,257
)
-3.2
%
(1,789
)
-1.1
%
Retained earnings
1,875,376
1,833,232
1,709,157
42,144
2.3
%
166,219
9.7
%
Accumulated other comprehensive
income (loss), net of tax
(83,659
)
(29,045
)
(219,723
)
(54,614
)
n/m
136,064
61.9
%
Total shareholders' equity
1,962,327
1,980,096
1,661,847
(17,769
)
-0.9
%
300,480
18.1
%
Total liabilities and equity
$
18,152,422
$
18,480,372
$
18,722,189
$
(327,950
)
-1.8
%
$
(569,767
)
-3.0
%
n/m - percentage changes greater than +/- 100%
are considered not meaningful
See Notes to Consolidated
Financial
TRUSTMARK CORPORATION AND
SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION December
31, 2024 ($ in thousands except
per share data) (unaudited)
Quarter Ended Linked Quarter Year over
Year INCOME STATEMENTS
12/31/2024 9/30/2024 12/31/2023 $
Change % Change $ Change %
Change Interest and fees on LHFS & LHFI-FTE
$
211,019
$
220,433
$
210,288
$
(9,414
)
-4.3
%
$
731
0.3
%
Interest on securities-taxable
26,196
26,162
15,936
34
0.1
%
10,260
64.4
%
Interest on securities-tax exempt-FTE
—
—
44
—
n/m
(44
)
-100.0
%
Other interest income
5,128
8,302
9,920
(3,174
)
-38.2
%
(4,792
)
-48.3
%
Total interest income-FTE
242,343
254,897
236,188
(12,554
)
-4.9
%
6,155
2.6
%
Interest on deposits
75,941
86,043
80,847
(10,102
)
-11.7
%
(4,906
)
-6.1
%
Interest on fed funds purchased and repurchases
4,036
4,864
5,347
(828
)
-17.0
%
(1,311
)
-24.5
%
Other interest expense
3,922
5,971
9,946
(2,049
)
-34.3
%
(6,024
)
-60.6
%
Total interest expense
83,899
96,878
96,140
(12,979
)
-13.4
%
(12,241
)
-12.7
%
Net interest income-FTE
158,444
158,019
140,048
425
0.3
%
18,396
13.1
%
Provision for credit losses (PCL), LHFI
6,960
7,923
7,585
(963
)
-12.2
%
(625
)
-8.2
%
PCL, off-balance sheet credit exposures
502
(1,375
)
(888
)
1,877
n/m
1,390
n/m
PCL, LHFI sale of 1-4 family mortgage loans
—
—
—
—
n/m
—
n/m
Net interest income after provision-FTE
150,982
151,471
133,351
(489
)
-0.3
%
17,631
13.2
%
Service charges on deposit accounts
11,228
11,272
11,311
(44
)
-0.4
%
(83
)
-0.7
%
Bank card and other fees
8,717
7,931
8,502
786
9.9
%
215
2.5
%
Mortgage banking, net
7,388
6,119
5,519
1,269
20.7
%
1,869
33.9
%
Wealth management
9,319
9,288
8,657
31
0.3
%
662
7.6
%
Other, net
4,298
2,952
2,577
1,346
45.6
%
1,721
66.8
%
Securities gains (losses), net
—
—
39
—
n/m
(39
)
-100.0
%
Total noninterest income (loss)
40,950
37,562
36,605
3,388
9.0
%
4,345
11.9
%
Salaries and employee benefits
69,223
66,691
69,326
2,532
3.8
%
(103
)
-0.1
%
Services and fees
26,692
25,724
27,478
968
3.8
%
(786
)
-2.9
%
Net occupancy-premises
7,195
7,398
7,144
(203
)
-2.7
%
51
0.7
%
Equipment expense
6,208
6,141
6,457
67
1.1
%
(249
)
-3.9
%
Litigation settlement expense
—
—
—
—
n/m
—
n/m
Other expense
15,112
17,316
15,790
(2,204
)
-12.7
%
(678
)
-4.3
%
Total noninterest expense
124,430
123,270
126,195
1,160
0.9
%
(1,765
)
-1.4
%
Income (loss) from continuing
operations
(cont. ops) before income taxes and tax
eq adj
67,502
65,763
43,761
1,739
2.6
%
23,741
54.3
%
Tax equivalent adjustment
2,596
3,305
3,306
(709
)
-21.5
%
(710
)
-21.5
%
Income (loss) from cont. ops before income taxes
64,906
62,458
40,455
2,448
3.9
%
24,451
60.4
%
Income taxes from cont. ops
8,594
11,128
6,567
(2,534
)
-22.8
%
2,027
30.9
%
Income (loss) from cont. ops
56,312
51,330
33,888
4,982
9.7
%
22,424
66.2
%
Income from discontinued
operations
(discont. ops) before income
taxes
—
—
2,965
—
n/m
(2,965
)
-100.0
%
Income taxes from discont. ops
—
—
730
—
n/m
(730
)
-100.0
%
Income from discont. ops
—
—
2,235
—
n/m
(2,235
)
-100.0
%
Net income
$
56,312
$
51,330
$
36,123
$
4,982
9.7
%
$
20,189
55.9
%
Per share data (1)
Basic earnings (loss) per share from cont.
ops
$
0.92
$
0.84
$
0.55
$
0.08
9.5
%
$
0.37
67.3
%
Basic earnings per share from discont. ops
$
—
$
—
$
0.04
$
—
n/m
$
(0.04
)
-100.0
%
Basic earnings per share - total
$
0.92
$
0.84
$
0.59
$
0.08
9.5
%
$
0.33
55.9
%
Diluted earnings (loss) per
share from cont. ops
$
0.92
$
0.84
$
0.55
$
0.08
9.5
%
$
0.37
67.3
%
Diluted earnings per share from discont. ops
$
—
$
—
$
0.04
$
—
n/m
$
(0.04
)
-100.0
%
Diluted earnings per share - total
$
0.92
$
0.84
$
0.59
$
0.08
9.5
%
$
0.33
55.9
%
Dividends per share
$
0.23
$
0.23
$
0.23
$
—
0.0
%
$
—
0.0
%
Weighted average shares
outstanding Basic
61,101,954
61,206,599
61,070,481
Diluted
61,367,825
61,448,410
61,296,840
Period end shares outstanding
61,008,023
61,206,606
61,071,173
(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
Financial
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION December 31, 2024
($ in thousands) (unaudited) Quarter
Ended Linked Quarter Year over Year
NONPERFORMING ASSETS
12/31/2024 9/30/2024 12/31/2023 $
Change % Change $ Change % Change
Nonaccrual LHFI Alabama
$
18,601
$
25,835
$
23,271
$
(7,234
)
-28.0
%
$
(4,670
)
-20.1
%
Florida
305
111
170
194
n/m
135
79.4
%
Mississippi (1)
42,203
31,536
54,615
10,667
33.8
%
(12,412
)
-22.7
%
Tennessee (2)
2,431
3,180
1,802
(749
)
-23.6
%
629
34.9
%
Texas
16,569
13,163
20,150
3,406
25.9
%
(3,581
)
-17.8
%
Total nonaccrual LHFI
80,109
73,825
100,008
6,284
8.5
%
(19,899
)
-19.9
%
Other real estate Alabama
170
170
1,397
—
0.0
%
(1,227
)
-87.8
%
Florida
—
—
—
—
n/m
—
n/m
Mississippi (1)
2,407
1,772
1,242
635
35.8
%
1,165
93.8
%
Tennessee (2)
1,079
—
—
1,079
n/m
1,079
n/m
Texas
2,261
1,978
4,228
283
14.3
%
(1,967
)
-46.5
%
Total other real estate
5,917
3,920
6,867
1,997
50.9
%
(950
)
-13.8
%
Total nonperforming assets
$
86,026
$
77,745
$
106,875
$
8,281
10.7
%
$
(20,849
)
-19.5
%
LOANS PAST DUE OVER 90
DAYS LHFI
$
4,092
$
5,352
$
5,790
$
(1,260
)
-23.5
%
$
(1,698
)
-29.3
%
LHFS-Guaranteed GNMA serviced loans (no obligation to
repurchase)
$
71,255
$
63,703
$
51,243
$
7,552
11.9
%
$
20,012
39.1
%
Quarter Ended Linked Quarter Year over
Year ACL LHFI
12/31/2024 9/30/2024 12/31/2023 $
Change % Change $ Change % Change
Beginning Balance
$
157,929
$
154,685
$
134,031
$
3,244
2.1
%
$
23,898
17.8
%
PCL, LHFI
6,960
7,923
7,585
(963
)
-12.2
%
(625
)
-8.2
%
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
(7,730
)
(7,142
)
(4,250
)
(588
)
-8.2
%
(3,480
)
-81.9
%
Recoveries
3,111
2,463
2,001
648
26.3
%
1,110
55.5
%
Net (charge-offs) recoveries
(4,619
)
(4,679
)
(2,249
)
60
1.3
%
(2,370
)
n/m
Ending Balance
$
160,270
$
157,929
$
139,367
$
2,341
1.5
%
$
20,903
15.0
%
NET (CHARGE-OFFS)
RECOVERIES Alabama
$
(3,608
)
$
(3,098
)
$
(299
)
$
(510
)
-16.5
%
$
(3,309
)
n/m
Florida
8
595
180
(587
)
-98.7
%
(172
)
-95.6
%
Mississippi (1)
(1,319
)
(1,881
)
(1,943
)
562
29.9
%
624
32.1
%
Tennessee (2)
(208
)
(296
)
(193
)
88
29.7
%
(15
)
-7.8
%
Texas
508
1
6
507
n/m
502
n/m
Total net (charge-offs) recoveries
$
(4,619
)
$
(4,679
)
$
(2,249
)
$
60
1.3
%
$
(2,370
)
n/m
(1) Mississippi includes Central and Southern Mississippi
Regions. (2) Tennessee includes Memphis, Tennessee and Northern
Mississippi Regions. n/m - percentage changes greater than
+/- 100% are considered not meaningful
See Notes to Consolidated
Financial
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION December 31, 2024
($ in thousands) (unaudited) Quarter Ended
Year Ended AVERAGE
BALANCES 12/31/2024 9/30/2024
6/30/2024 3/31/2024 12/31/2023
12/31/2024 12/31/2023 Securities AFS-taxable
$
1,708,226
$
1,658,999
$
1,866,227
$
1,927,619
$
1,986,825
$
1,789,685
$
2,090,201
Securities AFS-nontaxable
—
—
—
—
4,246
—
4,657
Securities HTM-taxable
1,346,141
1,368,943
1,421,246
1,418,476
1,430,169
1,388,531
1,454,450
Securities HTM-nontaxable
—
—
112
340
340
112
1,854
Total securities
3,054,367
3,027,942
3,287,585
3,346,435
3,421,580
3,178,328
3,551,162
Loans (includes loans held for sale)
13,275,762
13,379,658
13,309,127
13,169,805
13,010,028
13,283,829
12,801,531
Other earning assets
422,083
607,928
592,735
571,329
670,598
548,336
729,673
Total earning assets
16,752,212
17,015,528
17,189,447
17,087,569
17,102,206
17,010,493
17,082,366
ACL LHFI
(157,659
)
(154,476
)
(143,245
)
(138,711
)
(133,742
)
(148,564
)
(125,942
)
Other assets
1,627,890
1,646,241
1,740,307
1,730,521
1,749,069
1,685,971
1,718,058
Total assets
$
18,222,443
$
18,507,293
$
18,786,509
$
18,679,379
$
18,717,533
$
18,547,900
$
18,674,482
Interest-bearing demand deposits
$
5,493,700
$
5,382,346
$
5,222,369
$
5,291,779
$
5,053,935
$
5,348,043
$
4,871,977
Savings deposits
3,278,910
3,411,961
3,653,966
3,686,027
3,526,600
3,506,829
3,838,791
Time deposits
3,265,358
3,393,216
3,346,046
3,321,601
3,427,384
3,331,543
2,691,682
Total interest-bearing deposits
12,037,968
12,187,523
12,222,381
12,299,407
12,007,919
12,186,415
11,402,450
Fed funds purchased and repurchases
357,798
375,559
434,760
428,127
403,041
398,884
410,945
Other borrowings
218,244
339,417
534,350
463,459
590,765
388,266
984,315
Subordinated notes
123,666
123,611
123,556
123,501
123,446
123,584
123,364
Junior subordinated debt securities
61,856
61,856
61,856
61,856
61,856
61,856
61,856
Total interest-bearing liabilities
12,799,532
13,087,966
13,376,903
13,376,350
13,187,027
13,159,005
12,982,930
Noninterest-bearing deposits
3,192,358
3,221,516
3,183,524
3,120,566
3,296,351
3,179,641
3,532,134
Other liabilities
257,990
274,563
498,593
505,942
641,662
383,627
589,320
Total liabilities
16,249,880
16,584,045
17,059,020
17,002,858
17,125,040
16,722,273
17,104,384
Shareholders' equity
1,972,563
1,923,248
1,727,489
1,676,521
1,592,493
1,825,627
1,570,098
Total liabilities and equity
$
18,222,443
$
18,507,293
$
18,786,509
$
18,679,379
$
18,717,533
$
18,547,900
$
18,674,482
See Notes to Consolidated
Financial
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION December 31, 2024
($ in thousands) (unaudited)
PERIOD END BALANCES
12/31/2024 9/30/2024 6/30/2024
3/31/2024 12/31/2023 Cash and due from banks
$
567,251
$
805,436
$
822,141
$
606,061
$
975,343
Fed funds sold and reverse repurchases
—
10,000
—
—
—
Securities available for sale
1,692,534
1,725,795
1,621,659
1,702,299
1,762,878
Securities held to maturity
1,335,385
1,358,358
1,380,487
1,415,025
1,426,279
LHFS
200,307
216,454
185,698
172,937
184,812
LHFI
13,089,942
13,100,111
13,155,418
13,057,943
12,950,524
ACL LHFI
(160,270
)
(157,929
)
(154,685
)
(142,998
)
(139,367
)
Net LHFI
12,929,672
12,942,182
13,000,733
12,914,945
12,811,157
Premises and equipment, net
235,410
236,151
232,681
232,630
232,229
Mortgage servicing rights
139,317
125,853
136,658
138,044
131,870
Goodwill
334,605
334,605
334,605
334,605
334,605
Identifiable intangible assets
126
153
181
208
236
Other real estate
5,917
3,920
6,586
7,620
6,867
Operating lease right-of-use assets
34,668
36,034
36,925
34,324
35,711
Other assets
677,230
685,431
694,133
744,821
752,568
Assets of discontinued operations
—
—
—
73,093
67,634
Total assets
$
18,152,422
$
18,480,372
$
18,452,487
$
18,376,612
$
18,722,189
Deposits: Noninterest-bearing
$
3,073,565
$
3,142,792
$
3,153,506
$
3,039,652
$
3,197,620
Interest-bearing
12,034,610
12,098,143
12,309,382
12,298,905
12,372,143
Total deposits
15,108,175
15,240,935
15,462,888
15,338,557
15,569,763
Fed funds purchased and repurchases
324,008
365,643
314,121
393,215
405,745
Other borrowings
301,541
443,458
336,687
482,027
483,230
Subordinated notes
123,702
123,647
123,592
123,537
123,482
Junior subordinated debt securities
61,856
61,856
61,856
61,856
61,856
ACL on off-balance sheet credit exposures
29,392
28,890
30,265
33,865
34,057
Operating lease liabilities
38,698
39,689
40,517
37,792
39,097
Other liabilities
202,723
196,158
203,420
207,583
331,085
Liabilities of discontinued operations
—
—
—
15,581
12,027
Total liabilities
16,190,095
16,500,276
16,573,346
16,694,013
17,060,342
Common stock
12,711
12,753
12,753
12,747
12,725
Capital surplus
157,899
163,156
161,834
160,521
159,688
Retained earnings
1,875,376
1,833,232
1,796,111
1,736,485
1,709,157
Accumulated other comprehensive income (loss), net of tax
(83,659
)
(29,045
)
(91,557
)
(227,154
)
(219,723
)
Total shareholders' equity
1,962,327
1,980,096
1,879,141
1,682,599
1,661,847
Total liabilities and equity
$
18,152,422
$
18,480,372
$
18,452,487
$
18,376,612
$
18,722,189
See Notes to Consolidated
Financial
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION December 31, 2024
($ in thousands except per share data)
(unaudited) Quarter Ended
Year Ended INCOME
STATEMENTS 12/31/2024 9/30/2024
6/30/2024 3/31/2024 12/31/2023
12/31/2024 12/31/2023 Interest and fees on LHFS &
LHFI-FTE
$
211,019
$
220,433
$
216,399
$
209,456
$
210,288
$
857,307
$
788,719
Interest on securities-taxable
26,196
26,162
17,929
15,634
15,936
85,921
66,100
Interest on securities-tax exempt-FTE
—
—
1
4
44
5
263
Other interest income
5,128
8,302
8,126
8,111
9,920
29,667
37,215
Total interest income-FTE
242,343
254,897
242,455
233,205
236,188
972,900
892,297
Interest on deposits
75,941
86,043
83,681
83,716
80,847
329,381
245,951
Interest on fed funds purchased and repurchases
4,036
4,864
5,663
5,591
5,347
20,154
20,419
Other interest expense
3,922
5,971
8,778
7,703
9,946
26,374
59,584
Total interest expense
83,899
96,878
98,122
97,010
96,140
375,909
325,954
Net interest income-FTE
158,444
158,019
144,333
136,195
140,048
596,991
566,343
PCL, LHFI
6,960
7,923
14,696
7,708
7,585
37,287
27,362
PCL, off-balance sheet credit exposures
502
(1,375
)
(3,600
)
(192
)
(888
)
(4,665
)
(2,781
)
PCL, LHFI sale of 1-4 family mortgage loans
—
—
8,633
—
—
8,633
—
Net interest income after provision-FTE
150,982
151,471
124,604
128,679
133,351
555,736
541,762
Service charges on deposit accounts
11,228
11,272
10,924
10,958
11,311
44,382
43,416
Bank card and other fees
8,717
7,931
9,225
7,428
8,502
33,301
33,439
Mortgage banking, net
7,388
6,119
4,204
8,915
5,519
26,626
26,216
Wealth management
9,319
9,288
9,692
8,952
8,657
37,251
35,092
Other, net
4,298
2,952
7,461
3,102
2,577
17,813
10,231
Securities gains (losses), net
—
—
(182,792
)
—
39
(182,792
)
39
Total noninterest income (loss)
40,950
37,562
(141,286
)
39,355
36,605
(23,419
)
148,433
Salaries and employee benefits
69,223
66,691
64,838
65,487
69,326
266,239
268,270
Services and fees
26,692
25,724
24,743
24,431
27,478
101,590
107,805
Net occupancy-premises
7,195
7,398
7,265
7,270
7,144
29,128
28,507
Equipment expense
6,208
6,141
6,241
6,325
6,457
24,915
25,844
Litigation settlement expense
—
—
—
—
—
—
6,500
Other expense
15,112
17,316
15,239
16,151
15,790
63,818
58,770
Total noninterest expense
124,430
123,270
118,326
119,664
126,195
485,690
495,696
Income (loss) from continuing operations (cont.
ops) before income taxes and tax eq adj
67,502
65,763
(135,008
)
48,370
43,761
46,627
194,499
Tax equivalent adjustment
2,596
3,305
3,304
3,365
3,306
12,570
13,465
Income (loss) from cont. ops before income
taxes
64,906
62,458
(138,312
)
45,005
40,455
34,057
181,034
Income taxes from cont. ops
8,594
11,128
(37,707
)
6,832
6,567
(11,153
)
27,744
Income (loss) from cont. ops
56,312
51,330
(100,605
)
38,173
33,888
45,210
153,290
Income from discontinued operations
(discont. ops) before income taxes
—
—
232,640
4,512
2,965
237,152
16,302
Income taxes from discont. ops
—
—
58,203
1,150
730
59,353
4,103
Income from discont. ops
—
—
174,437
3,362
2,235
177,799
12,199
Net income
$
56,312
$
51,330
$
73,832
$
41,535
$
36,123
$
223,009
$
165,489
Per share data (1) Basic earnings
(loss) per share from cont. ops
$
0.92
$
0.84
$
(1.64
)
$
0.62
$
0.55
$
0.74
$
2.51
Basic earnings per share from discont. ops
$
—
$
—
$
2.85
$
0.05
$
0.04
$
2.91
$
0.20
Basic earnings per share - total
$
0.92
$
0.84
$
1.21
$
0.68
$
0.59
$
3.65
$
2.71
Diluted earnings (loss) per share from cont.
ops
$
0.92
$
0.84
$
(1.64
)
$
0.62
$
0.55
$
0.74
$
2.50
Diluted earnings per share from discont. ops
$
—
$
—
$
2.84
$
0.05
$
0.04
$
2.90
$
0.20
Diluted earnings per share - total
$
0.92
$
0.84
$
1.20
$
0.68
$
0.59
$
3.63
$
2.70
Dividends per share
$
0.23
$
0.23
$
0.23
$
0.23
$
0.23
$
0.92
$
0.92
Weighted average shares outstanding
Basic
61,101,954
61,206,599
61,196,820
61,128,425
61,070,481
61,158,427
61,053,849
Diluted
61,367,825
61,448,410
61,415,957
61,348,364
61,296,840
61,384,221
61,230,621
Period end shares outstanding
61,008,023
61,206,606
61,205,969
61,178,366
61,071,173
61,008,023
61,071,173
(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
Financial
TRUSTMARK CORPORATION AND
SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024 ($ in thousands) (unaudited)
Quarter Ended NONPERFORMING
ASSETS 12/31/2024 9/30/2024
6/30/2024 3/31/2024 12/31/2023 Nonaccrual LHFI
Alabama
$
18,601
$
25,835
$
26,222
$
23,261
$
23,271
Florida
305
111
614
585
170
Mississippi (1)
42,203
31,536
14,773
59,059
54,615
Tennessee (2)
2,431
3,180
2,084
1,800
1,802
Texas
16,569
13,163
599
13,646
20,150
Total nonaccrual LHFI
80,109
73,825
44,292
98,351
100,008
Other real estate Alabama
170
170
485
1,050
1,397
Florida
—
—
—
71
—
Mississippi (1)
2,407
1,772
1,787
2,870
1,242
Tennessee (2)
1,079
—
86
86
—
Texas
2,261
1,978
4,228
3,543
4,228
Total other real estate
5,917
3,920
6,586
7,620
6,867
Total nonperforming assets
$
86,026
$
77,745
$
50,878
$
105,971
$
106,875
LOANS PAST DUE OVER 90
DAYS LHFI
$
4,092
$
5,352
$
5,413
$
5,243
$
5,790
LHFS-Guaranteed GNMA serviced loans (no obligation to
repurchase)
$
71,255
$
63,703
$
58,079
$
56,530
$
51,243
Quarter Ended Year Ended
ACL LHFI 12/31/2024
9/30/2024 6/30/2024 3/31/2024
12/31/2023 12/31/2024 12/31/2023 Beginning
Balance
$
157,929
$
154,685
$
142,998
$
139,367
$
134,031
$
139,367
$
120,214
PCL, LHFI
6,960
7,923
14,696
7,708
7,585
37,287
27,362
PCL, LHFI sale of 1-4 family mortgage loans
—
—
8,633
—
—
8,633
—
Charge-offs, sale of 1-4 family mortgage loans
—
—
(8,633
)
—
—
(8,633
)
—
Charge-offs
(7,730
)
(7,142
)
(5,120
)
(6,324
)
(4,250
)
(26,316
)
(17,515
)
Recoveries
3,111
2,463
2,111
2,247
2,001
9,932
9,306
Net (charge-offs) recoveries
(4,619
)
(4,679
)
(11,642
)
(4,077
)
(2,249
)
(25,017
)
(8,209
)
Ending Balance
$
160,270
$
157,929
$
154,685
$
142,998
$
139,367
$
160,270
$
139,367
NET (CHARGE-OFFS)
RECOVERIES Alabama
$
(3,608
)
$
(3,098
)
$
59
$
(341
)
$
(299
)
$
(6,988
)
$
(873
)
Florida
8
595
4
277
180
884
130
Mississippi (1)
(1,319
)
(1,881
)
(9,112
)
(1,489
)
(1,943
)
(13,801
)
(5,347
)
Tennessee (2)
(208
)
(296
)
(122
)
(179
)
(193
)
(805
)
1,644
Texas
508
1
(2,471
)
(2,345
)
6
(4,307
)
(3,763
)
Total net (charge-offs) recoveries
$
(4,619
)
$
(4,679
)
$
(11,642
)
$
(4,077
)
$
(2,249
)
$
(25,017
)
$
(8,209
)
(1) Mississippi includes Central and Southern Mississippi
Regions. (2) Tennessee includes Memphis, Tennessee and Northern
Mississippi Regions.
See Notes to Consolidated
Financial
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION December 31, 2024
(unaudited) Quarter Ended Year Ended
FINANCIAL RATIOS AND OTHER DATA
12/31/2024 9/30/2024 6/30/2024
3/31/2024 12/31/2023 12/31/2024
12/31/2023 Return on average equity from continuing
operations
11.36
%
10.62
%
-23.42
%
9.16
%
8.44
%
2.48
%
9.76
%
Return on average equity from adjusted continuing operations (1)
11.36
%
10.62
%
9.06
%
9.16
%
8.68
%
10.34
%
10.17
%
Return on average equity - total
11.36
%
10.62
%
17.19
%
9.96
%
9.00
%
12.22
%
10.54
%
Return on average tangible equity from continuing operations
13.68
%
12.86
%
-29.05
%
11.45
%
10.70
%
3.04
%
12.43
%
Return on average tangible equity from adjusted continuing
operations (1)
13.68
%
12.86
%
11.14
%
11.45
%
10.98
%
12.71
%
12.95
%
Return on average tangible equity - total
13.68
%
12.86
%
21.91
%
12.98
%
11.92
%
15.20
%
14.04
%
Return on average assets from continuing operations
1.23
%
1.10
%
-2.16
%
0.83
%
0.72
%
0.24
%
0.82
%
Return on average assets from adjusted continuing operations (1)
1.23
%
1.10
%
0.87
%
0.83
%
0.74
%
1.01
%
0.86
%
Return on average assets - total
1.23
%
1.10
%
1.58
%
0.89
%
0.77
%
1.20
%
0.89
%
Interest margin - Yield - FTE
5.76
%
5.96
%
5.67
%
5.49
%
5.48
%
5.72
%
5.22
%
Interest margin - Cost
1.99
%
2.27
%
2.30
%
2.28
%
2.23
%
2.21
%
1.91
%
Net interest margin - FTE
3.76
%
3.69
%
3.38
%
3.21
%
3.25
%
3.51
%
3.32
%
Efficiency ratio (2)
61.77
%
60.99
%
63.81
%
66.90
%
69.76
%
63.26
%
67.26
%
Full-time equivalent employees
2,500
2,500
2,515
2,712
2,757
CREDIT QUALITY RATIOS
Net (recoveries) charge-offs (excl sale of 1-4 family mortgage
loans) / average loans
0.14
%
0.14
%
0.09
%
0.12
%
0.07
%
0.12
%
0.06
%
PCL, LHFI (excl PCL, LHFI sale of 1-4 family mortgage loans) /
average loans
0.21
%
0.24
%
0.44
%
0.24
%
0.23
%
0.28
%
0.21
%
Nonaccrual LHFI / (LHFI + LHFS)
0.60
%
0.55
%
0.33
%
0.74
%
0.76
%
Nonperforming assets / (LHFI + LHFS)
0.65
%
0.58
%
0.38
%
0.80
%
0.81
%
Nonperforming assets / (LHFI + LHFS + other real estate)
0.65
%
0.58
%
0.38
%
0.80
%
0.81
%
ACL LHFI / LHFI
1.22
%
1.21
%
1.18
%
1.10
%
1.08
%
ACL LHFI-commercial / commercial LHFI
1.10
%
1.08
%
1.05
%
0.93
%
0.85
%
ACL LHFI-consumer / consumer and home mortgage LHFI
1.62
%
1.64
%
1.59
%
1.63
%
1.81
%
ACL LHFI / nonaccrual LHFI
200.06
%
213.92
%
349.24
%
145.39
%
139.36
%
ACL LHFI / nonaccrual LHFI (excl individually analyzed loans)
341.20
%
497.27
%
840.20
%
235.29
%
249.31
%
CAPITAL RATIOS Total
equity / total assets
10.81
%
10.71
%
10.18
%
9.16
%
8.88
%
Tangible equity / tangible assets
9.13
%
9.07
%
8.52
%
7.47
%
7.22
%
Tangible equity / risk-weighted assets
10.86
%
10.97
%
10.18
%
8.83
%
8.76
%
Tier 1 leverage ratio
9.99
%
9.65
%
9.29
%
8.76
%
8.62
%
Common equity tier 1 capital ratio
11.54
%
11.30
%
10.92
%
10.12
%
10.04
%
Tier 1 risk-based capital ratio
11.94
%
11.70
%
11.31
%
10.51
%
10.44
%
Total risk-based capital ratio
13.97
%
13.71
%
13.29
%
12.42
%
12.29
%
STOCK PERFORMANCE Market
value-Close
$
35.37
$
31.82
$
30.04
$
28.11
$
27.88
Book value
$
32.17
$
32.35
$
30.70
$
27.50
$
27.21
Tangible book value
$
26.68
$
26.88
$
25.23
$
22.03
$
21.73
(1) Adjusted continuing operations excludes significant
non-routine transactions. See Note 7 - Non-GAAP Financials 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
Financial
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 1 - Significant Non-Routine
Transactions
Trustmark completed the following
significant non-routine transactions during the second quarter of
2024:
- On May 31, 2024, Trustmark National Bank closed the sale of its
wholly owned subsidiary, Fisher Brown Bottrell Insurance, Inc.,
(FBBI) to Marsh & McLennan Agency LLC, consistent with the
terms as previously announced on April 23, 2024. Trustmark National
Bank is a wholly owned subsidiary of Trustmark Corporation.
Trustmark recognized a gain on the sale of $228.3 million ($171.2
million, net of taxes) in income from discontinued operations. The
operations of FBBI are also included in discontinued operations for
the current and prior periods.
- Trustmark restructured its investment securities portfolio by
selling $1.561 billion of available for sale securities with an
average yield of 1.36%, which generated a loss of $182.8 million
($137.1 million, net of taxes) and was recorded to noninterest
income in securities gains (losses), net. Trustmark purchased
$1.378 billion of available for sale securities with an average
yield of 4.85%.
- Trustmark sold a portfolio of 1-4 family mortgage loans that
were three payments delinquent and/or nonaccrual at the time of
selection totaling $56.2 million, which resulted in a loss of $13.4
million ($10.1 million, net of taxes). The portion of the loss
related to credit totaled $8.6 million and was recorded as
adjustments to charge-offs and the provision for credit losses. The
noncredit-related portion of the loss totaled $4.8 million and was
recorded to noninterest income in other, net.
- On April 8, 2024, Visa commenced an initial exchange offer
expiring on May 3, 2024, for any and all outstanding shares of Visa
Class B-1 common stock (Visa B-1 shares). Holders participating in
the exchange offer would receive a combination of Visa Class B-2
common stock (Visa B-2 shares) and Visa Class C common stock (Visa
C shares) in exchange for Visa B-1 shares that are validly tendered
and accepted for exchange by Visa. TNB tendered its 38.7 thousand
Visa B-1 shares, which was accepted by Visa. In exchange for each
Visa B-1 share that was validly tendered and accepted for exchange
by Visa, TNB received 50.0% of a newly issued Visa B-2 share and
newly issued Visa C shares equivalent in value to 50.0% of a Visa
B-1 share. The Visa C shares that were received by TNB were
recognized at fair value, which resulted in a gain of $8.1 million
($6.0 million, net of taxes) and recorded to noninterest income in
other, net during the second quarter of 2024. During the third
quarter of 2024, TNB sold all of the Visa C shares for
approximately the same carrying value at June 30, 2024. The Visa
B-2 shares were recorded at their nominal carrying value.
Note 2 - Securities Available for Sale
and Held to Maturity
The following table is a summary of the
estimated fair value of securities available for sale and the
amortized cost of securities held to maturity:
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
SECURITIES
AVAILABLE FOR SALE
U.S. Treasury securities
$
202,669
$
202,638
$
172,955
$
372,424
$
372,368
U.S. Government agency obligations
38,807
19,335
—
5,594
5,792
Mortgage-backed securities
Residential mortgage pass-through
securities
Guaranteed by GNMA
28,411
25,798
23,489
22,232
23,135
Issued by FNMA and FHLMC
1,070,538
1,105,310
1,060,869
1,129,521
1,176,798
Other residential mortgage-backed
securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
—
—
—
79,099
86,074
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
352,109
372,714
364,346
93,429
98,711
Total securities available for sale
$
1,692,534
$
1,725,795
$
1,621,659
$
1,702,299
$
1,762,878
SECURITIES HELD
TO MATURITY
U.S. Treasury securities
$
29,842
$
29,648
$
29,455
$
29,261
$
29,068
Obligations of states and political
subdivisions
—
—
—
340
340
Mortgage-backed securities
Residential mortgage pass-through
securities
Guaranteed by GNMA
16,218
17,773
17,998
18,387
13,005
Issued by FNMA and FHLMC
423,372
436,177
449,781
461,457
469,593
Other residential mortgage-backed
securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
123,685
131,348
138,951
146,447
154,466
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
742,268
743,412
744,302
759,133
759,807
Total securities held to maturity
$
1,335,385
$
1,358,358
$
1,380,487
$
1,415,025
$
1,426,279
At December 31, 2024, 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
$46.6 million.
Management continues to focus on asset
quality as one of the strategic goals of the securities portfolio,
which is evidenced by the investment of 100.0% of the portfolio in
U.S. Treasury securities, GSE-backed obligations and other Aaa
rated securities as determined by Moody’s. None of the securities
owned by Trustmark are collateralized by assets which are
considered sub-prime. Furthermore, outside of stock ownership in
the Federal Home Loan Bank of Dallas and Federal Reserve Bank,
Trustmark does not hold any other equity investment in a GSE.
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 3 – Loan Composition
LHFI consisted of the following during the
periods presented:
LHFI BY
TYPE
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Loans secured by real estate:
Construction, land development and other
land loans
$
1,417,148
$
1,588,256
$
1,638,972
$
1,539,461
$
1,510,679
Secured by 1-4 family residential
properties
2,949,543
2,895,006
2,878,295
2,891,481
2,904,715
Secured by nonfarm, nonresidential
properties
3,533,282
3,582,552
3,598,647
3,543,235
3,489,434
Other real estate secured
1,633,830
1,475,798
1,344,968
1,384,610
1,312,551
Commercial and industrial loans
1,840,722
1,767,079
1,880,607
1,922,711
1,922,910
Consumer loans
151,443
149,436
153,316
156,430
161,725
State and other political subdivision
loans
969,836
996,002
1,053,015
1,052,844
1,088,466
Other loans and leases
594,138
645,982
607,598
567,171
560,044
LHFI
13,089,942
13,100,111
13,155,418
13,057,943
12,950,524
ACL LHFI
(160,270
)
(157,929
)
(154,685
)
(142,998
)
(139,367
)
Net LHFI
$
12,929,672
$
12,942,182
$
13,000,733
$
12,914,945
$
12,811,157
The following table presents the LHFI
composition based upon the region where the loan was originated and
reflects each region’s diversified mix of loans:
December 31, 2024
LHFI -
COMPOSITION BY REGION
Total
Alabama
Florida
Georgia
Mississippi (Central and
Southern Regions)
Tennessee (Memphis, TN and
Northern MS Regions)
Texas
Loans secured by real estate:
Construction, land development and other
land loans
$
1,417,148
$
584,880
$
34,666
$
102,765
$
322,924
$
42,571
$
329,342
Secured by 1-4 family residential
properties
2,949,543
153,836
59,418
—
2,610,722
85,913
39,654
Secured by nonfarm, nonresidential
properties
3,533,282
1,023,992
192,212
74,794
1,481,810
126,296
634,178
Other real estate secured
1,633,830
815,394
1,646
—
387,663
1,144
427,983
Commercial and industrial loans
1,840,722
521,451
20,165
219,243
702,108
135,090
242,665
Consumer loans
151,443
21,663
7,926
—
94,973
14,782
12,099
State and other political subdivision
loans
969,836
70,447
67,563
—
731,179
22,766
77,881
Other loans and leases
594,138
38,001
5,281
245,635
200,825
64,397
39,999
Loans
$
13,089,942
$
3,229,664
$
388,877
$
642,437
$
6,532,204
$
492,959
$
1,803,801
CONSTRUCTION,
LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots
$
60,977
$
24,292
$
6,498
$
94
$
20,100
$
2,799
$
7,194
Development
104,694
54,968
—
—
18,008
12,275
19,443
Unimproved land
102,857
17,206
12,074
—
25,343
9,892
38,342
1-4 family construction
318,716
156,679
8,397
15,140
84,260
17,057
37,183
Other construction
829,904
331,735
7,697
87,531
175,213
548
227,180
Construction, land development and other
land loans
$
1,417,148
$
584,880
$
34,666
$
102,765
$
322,924
$
42,571
$
329,342
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 3 – Loan Composition
(continued)
December 31, 2024
Total
Alabama
Florida
Georgia
Mississippi (Central and
Southern Regions)
Tennessee (Memphis, TN and
Northern MS Regions)
Texas
LOANS SECURED BY
NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail
$
309,752
$
99,486
$
21,718
$
—
$
93,786
$
18,743
$
76,019
Office
242,741
92,612
18,965
—
96,541
1,330
33,293
Hotel/motel
281,946
145,483
43,816
—
68,604
24,043
—
Mini-storage
145,027
33,789
1,598
6,537
90,748
616
11,739
Industrial
522,204
98,101
17,814
68,257
176,775
2,523
158,734
Health care
152,396
124,873
674
—
24,342
323
2,184
Convenience stores
23,627
2,658
399
—
12,693
207
7,670
Nursing homes/senior living
384,232
140,569
—
—
143,539
4,186
95,938
Other
100,983
28,242
7,613
—
49,094
7,699
8,335
Total non-owner occupied loans
2,162,908
765,813
112,597
74,794
756,122
59,670
393,912
Owner-occupied:
Office
150,115
49,734
34,049
—
38,489
10,216
17,627
Churches
50,304
11,726
3,844
—
29,223
3,130
2,381
Industrial warehouses
176,506
12,582
8,323
—
48,821
12,489
94,291
Health care
121,319
10,786
8,064
—
83,381
2,195
16,893
Convenience stores
109,568
10,907
2,092
—
56,605
—
39,964
Retail
67,668
8,449
12,992
—
31,750
6,399
8,078
Restaurants
52,385
3,466
2,745
—
25,491
16,413
4,270
Auto dealerships
40,377
4,113
174
—
21,105
14,985
—
Nursing homes/senior living
480,393
130,474
—
—
323,911
—
26,008
Other
121,739
15,942
7,332
—
66,912
799
30,754
Total owner-occupied loans
1,370,374
258,179
79,615
—
725,688
66,626
240,266
Loans secured by nonfarm, nonresidential
properties
$
3,533,282
$
1,023,992
$
192,212
$
74,794
$
1,481,810
$
126,296
$
634,178
Note 4 – Yields on Earning Assets and
Interest-Bearing Liabilities
The following table illustrates the yields
on earning assets by category as well as the rates paid on
interest-bearing liabilities on a tax equivalent basis:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Securities – taxable
3.41
%
3.44
%
2.19
%
1.88
%
1.85
%
2.70
%
1.86
%
Securities – nontaxable
—
—
3.59
%
4.73
%
3.81
%
4.46
%
4.04
%
Securities – total
3.41
%
3.44
%
2.19
%
1.88
%
1.85
%
2.70
%
1.87
%
LHFI & LHFS
6.32
%
6.55
%
6.54
%
6.40
%
6.41
%
6.45
%
6.16
%
Other earning assets
4.83
%
5.43
%
5.51
%
5.71
%
5.87
%
5.41
%
5.10
%
Total earning assets
5.76
%
5.96
%
5.67
%
5.49
%
5.48
%
5.72
%
5.22
%
Interest-bearing deposits
2.51
%
2.81
%
2.75
%
2.74
%
2.67
%
2.70
%
2.16
%
Fed funds purchased & repurchases
4.49
%
5.15
%
5.24
%
5.25
%
5.26
%
5.05
%
4.97
%
Other borrowings
3.86
%
4.53
%
4.91
%
4.78
%
5.08
%
4.60
%
5.09
%
Total interest-bearing liabilities
2.61
%
2.94
%
2.95
%
2.92
%
2.89
%
2.86
%
2.51
%
Total Deposits
1.98
%
2.22
%
2.18
%
2.18
%
2.10
%
2.14
%
1.65
%
Net interest margin
3.76
%
3.69
%
3.38
%
3.21
%
3.25
%
3.51
%
3.32
%
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 4 – Yields on Earning Assets and
Interest-Bearing Liabilities (continued)
Reflected in the table above are yields on
earning assets and liabilities, along with the net interest margin
which equals reported net interest income-FTE, annualized, as a
percent of average earning assets.
The net interest margin increased 7 basis
points when compared to the third quarter of 2024, totaling 3.76%
for the fourth quarter of 2024, primarily due to decreased costs of
interest-bearing liabilities which were partially offset by the
decrease in the yield for the loans held for investment and held
for sale portfolio.
Note 5 – Mortgage Banking
Trustmark utilizes a portfolio of
exchange-traded derivative instruments, such as Treasury note
futures contracts and option contracts, to achieve a fair value
return that offsets the changes in fair value of mortgage servicing
rights (MSR) attributable to interest rates. These transactions are
considered freestanding derivatives that do not otherwise qualify
for hedge accounting under generally accepted accounting principles
(GAAP). Changes in the fair value of these exchange-traded
derivative instruments, including administrative costs, are
recorded in noninterest income in mortgage banking, net and are
offset by the changes in the fair value of the MSR. The MSR fair
value represents the present value of future cash flows, which
among other things includes decay and the effect of changes in
interest rates. Ineffectiveness of hedging the MSR fair value is
measured by comparing the change in value of hedge instruments to
the change in the fair value of the MSR asset attributable to
changes in interest rates and other market driven changes in
valuation inputs and assumptions. The impact of this strategy
resulted in a net negative hedge ineffectiveness of $1.1 million
during the fourth quarter of 2024.
The following table illustrates the
components of mortgage banking revenues included in noninterest
income in the accompanying income statements:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Mortgage servicing income, net
$
7,161
$
7,127
$
6,993
$
6,934
$
6,731
$
28,215
$
27,196
Change in fair value-MSR from runoff
(3,118
)
(3,154
)
(3,447
)
(1,926
)
(2,972
)
(11,645
)
(10,030
)
Gain on sales of loans, net
4,470
4,648
5,151
5,009
3,913
19,278
15,345
Mortgage banking income before hedge
ineffectiveness
8,513
8,621
8,697
10,017
7,672
35,848
32,511
Change in fair value-MSR from market
changes
12,710
(10,406
)
(1,626
)
5,123
(10,224
)
5,801
(1,489
)
Change in fair value of derivatives
(13,835
)
7,904
(2,867
)
(6,225
)
8,071
(15,023
)
(4,806
)
Net positive (negative) hedge
ineffectiveness
(1,125
)
(2,502
)
(4,493
)
(1,102
)
(2,153
)
(9,222
)
(6,295
)
Mortgage banking, net
$
7,388
$
6,119
$
4,204
$
8,915
$
5,519
$
26,626
$
26,216
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 6 – Other Noninterest Income and
Expense
Other noninterest income consisted of the
following for the periods presented:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Partnership amortization for tax credit
purposes
$
(1,992
)
$
(1,977
)
$
(1,824
)
$
(1,834
)
$
(2,013
)
$
(7,627
)
$
(7,988
)
Increase in life insurance cash surrender
value
1,891
1,883
1,860
1,844
1,825
7,478
7,018
Loss on sale of 1-4 family mortgage
loans
—
—
(4,798
)
—
—
(4,798
)
—
Visa C shares fair value adjustment
—
—
8,056
—
—
8,056
—
Other miscellaneous income
4,399
3,046
4,167
3,092
2,765
14,704
11,201
Total other, net
$
4,298
$
2,952
$
7,461
$
3,102
$
2,577
$
17,813
$
10,231
Trustmark invests in partnerships that
provide income tax credits on a Federal and/or State basis (i.e.,
new market tax credits, low-income housing tax credits and
historical tax credits). The income tax credits related to these
partnerships are utilized as specifically allowed by income tax law
and are recorded as a reduction in income tax expense.
Other noninterest expense consisted of the
following for the periods presented:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Loan expense
$
2,921
$
2,824
$
2,880
$
2,955
$
2,380
$
11,580
$
11,114
Amortization of intangibles
27
28
27
28
33
110
290
FDIC assessment expense
4,815
5,071
4,816
4,509
4,844
19,211
13,529
Other real estate expense, net
(286
)
2,452
327
671
(184
)
3,164
119
Other miscellaneous expense
7,635
6,941
7,189
7,988
8,717
29,753
33,718
Total other expense
$
15,112
$
17,316
$
15,239
$
16,151
$
15,790
$
63,818
$
58,770
Note 7 – Non-GAAP Financial
Measures
In addition to capital ratios defined by
GAAP and banking regulators, Trustmark utilizes various tangible
common equity measures when evaluating capital utilization and
adequacy. Tangible common equity, as defined by Trustmark,
represents common equity less goodwill and identifiable intangible
assets. Trustmark’s Common Equity Tier 1 capital includes common
stock, capital surplus and retained earnings, and is reduced by
goodwill and other intangible assets, net of associated net
deferred tax liabilities as well as disallowed deferred tax assets
and threshold deductions as applicable.
Trustmark believes these measures are
important because they reflect the level of capital available to
withstand unexpected market conditions. Additionally, presentation
of these measures allows readers to compare certain aspects of
Trustmark’s capitalization to other organizations. These ratios
differ from capital measures defined by banking regulators
principally in that the numerator excludes shareholders’ equity
associated with preferred securities, the nature and extent of
which varies across organizations. In Management’s experience, many
stock analysts use tangible common equity measures in conjunction
with more traditional bank capital ratios to compare capital
adequacy of banking organizations with significant amounts of
goodwill or other intangible assets, typically stemming from the
use of the purchase accounting method in accounting for mergers and
acquisitions.
These calculations are intended to
complement the capital ratios defined by GAAP and banking
regulators. Because GAAP does not include these capital ratio
measures, Trustmark believes there are no comparable GAAP financial
measures to these tangible common equity ratios. Despite the
importance of these measures to Trustmark, there are no
standardized definitions for them and, as a result, Trustmark’s
calculations may not be comparable with other organizations. Also,
there may be limits in the usefulness of these measures to
investors. As a result, Trustmark encourages readers to consider
its audited consolidated financial statements and the notes related
thereto in their entirety and not to rely on any single financial
measure.
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands except per share
data)
(unaudited)
Note 7 – Non-GAAP Financial Measures
(continued)
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
TANGIBLE
EQUITY
AVERAGE BALANCES
Total shareholders' equity
$
1,972,563
$
1,923,248
$
1,727,489
$
1,676,521
$
1,592,493
$
1,825,627
$
1,570,098
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(141
)
(168
)
(195
)
(224
)
(253
)
(182
)
(325
)
Total average tangible equity
$
1,637,817
$
1,588,475
$
1,392,689
$
1,341,692
$
1,257,635
$
1,490,840
$
1,235,168
PERIOD END BALANCES
Total shareholders' equity
$
1,962,327
$
1,980,096
$
1,879,141
$
1,682,599
$
1,661,847
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(126
)
(153
)
(181
)
(208
)
(236
)
Total tangible equity
(a)
$
1,627,596
$
1,645,338
$
1,544,355
$
1,347,786
$
1,327,006
TANGIBLE
ASSETS
Total assets
$
18,152,422
$
18,480,372
$
18,452,487
$
18,376,612
$
18,722,189
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(126
)
(153
)
(181
)
(208
)
(236
)
Total tangible assets
(b)
$
17,817,691
$
18,145,614
$
18,117,701
$
18,041,799
$
18,387,348
Risk-weighted assets
(c)
$
14,990,258
$
15,004,024
$
15,165,038
$
15,257,385
$
15,153,263
NET INCOME (LOSS)
ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing
operations
$
56,312
$
51,330
$
(100,605
)
$
38,173
$
33,888
$
45,210
$
153,290
Plus: Intangible amortization net of tax
from
continuing operations
20
21
20
20
25
81
217
Net income (loss) adjusted for intangible
amortization
$
56,332
$
51,351
$
(100,585
)
$
38,193
$
33,913
$
45,291
$
153,507
Period end common shares outstanding
(d)
61,008,023
61,206,606
61,205,969
61,178,366
61,071,173
TANGIBLE COMMON
EQUITY MEASUREMENTS
Return on average tangible equity from
continuing operations (1)
13.68
%
12.86
%
-29.05
%
11.45
%
10.70
%
3.04
%
12.43
%
Tangible equity/tangible assets
(a)/(b)
9.13
%
9.07
%
8.52
%
7.47
%
7.22
%
Tangible equity/risk-weighted assets
(a)/(c)
10.86
%
10.97
%
10.18
%
8.83
%
8.76
%
Tangible book value
(a)/(d)*1,000
$
26.68
$
26.88
$
25.23
$
22.03
$
21.73
COMMON EQUITY
TIER 1 CAPITAL (CET1)
Total shareholders' equity
$
1,962,327
$
1,980,096
$
1,879,141
$
1,682,599
$
1,661,847
CECL transition adjustment
6,500
6,500
6,500
6,500
13,000
AOCI-related adjustments
83,659
29,045
91,557
227,154
219,723
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)
(320,756
)
(320,757
)
(320,758
)
(370,205
)
(370,212
)
Other adjustments and deductions
for CET1 (2)
(2,058
)
(115
)
(847
)
(2,588
)
(2,693
)
CET1 capital
(e)
1,729,672
1,694,769
1,655,593
1,543,460
1,521,665
Additional tier 1 capital instruments
plus related surplus
60,000
60,000
60,000
60,000
60,000
Tier 1 capital
$
1,789,672
$
1,754,769
$
1,715,593
$
1,603,460
$
1,581,665
Common equity tier 1 capital ratio
(e)/(c)
11.54
%
11.30
%
10.92
%
10.12
%
10.04
%
(1) Calculation = ((net income (loss) adjusted for intangible
amortization/number of days in period)*number of days in
year)/total average tangible equity.
(2) Includes other intangible assets, net of DTLs, disallowed
deferred tax assets (DTAs), threshold deductions and transition
adjustments, as applicable.
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands except per share
data)
(unaudited)
Note 7 – Non-GAAP Financial Measures
(continued)
Trustmark discloses certain non-GAAP
financial measures because Management uses these measures for
business planning purposes, including to manage Trustmark’s
business against internal projected results of operations and to
measure Trustmark’s performance. Trustmark views these as measures
of our core operating business, which exclude the impact of the
items detailed below, as these items are generally not operational
in nature. These non-GAAP financial measures also provide another
basis for comparing period-to-period results as presented in the
accompanying selected financial data table and the audited
consolidated financial statements by excluding potential
differences caused by non-operational and unusual or non-recurring
items. Readers are cautioned that these adjustments are not
permitted under GAAP. Trustmark encourages readers to consider its
consolidated financial statements and the notes related thereto in
their entirety, and not to rely on any single financial
measure.
The following table presents pre-provision
net revenue (PPNR) during the periods presented:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Net interest income (GAAP)
(a)
$
155,848
$
154,714
$
141,029
$
132,830
$
136,742
$
584,421
$
552,878
Noninterest income (loss) (GAAP)
40,950
37,562
(141,286
)
39,355
36,605
(23,419
)
148,433
Add:
Loss on sale of 1-4 family mortgage loans
(incl in Other, net)
—
—
4,798
—
—
4,798
—
Visa C shares fair value adjustment (incl
in Other, net)
—
—
(8,056
)
—
—
(8,056
)
—
Securities (gains) losses, net
—
—
182,792
—
—
182,792
—
Noninterest income from adjusted
continuing
operations (Non-GAAP)
(b)
$
40,950
$
37,562
$
38,248
$
39,355
$
36,605
$
156,115
$
148,433
Adjusted pre-provision revenue
(a)+(b)=(c)
$
196,798
$
192,276
$
179,277
$
172,185
$
173,347
$
740,536
$
701,311
Noninterest expense (GAAP)
$
124,430
$
123,270
$
118,326
$
119,664
$
126,195
$
485,690
$
495,696
Less:
Reduction in force expense (incl in
Salaries and employee benefits)
—
—
—
—
(1,406
)
—
(1,406
)
Litigation settlement expense
—
—
—
—
—
—
(6,500
)
Noninterest expense from adjusted
continuing
operations (Non-GAAP)
(d)
$
124,430
$
123,270
$
118,326
$
119,664
$
124,789
$
485,690
$
487,790
PPNR (Non-GAAP)
(c)-(d)
$
72,368
$
69,006
$
60,951
$
52,521
$
48,558
$
254,846
$
213,521
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 7 – Non-GAAP Financial Measures
(continued)
The following table presents adjustments
to net income (loss) from continuing operations and select
financial ratios as reported in accordance with GAAP resulting from
significant non-routine items occurring during the periods
presented:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Net income (loss) (GAAP) from continuing
operations
$
56,312
$
51,330
$
(100,605
)
$
38,173
$
33,888
$
45,210
$
153,290
Significant non-routine transactions (net
of taxes):
PCL, LHFI sale of nonperforming 1-4
family
—
—
6,475
—
—
6,475
—
Loss on sale of 1-4 family mortgage
loans
—
—
3,598
—
—
3,598
—
Visa C shares fair value adjustment
—
—
(6,042
)
—
—
(6,042
)
—
Securities gains (losses), net
—
—
137,094
—
—
137,094
—
Reduction in force expense
—
—
—
—
1,055
—
1,055
Litigation settlement expense
—
—
—
—
—
—
4,875
Net income adjusted for significant
non-routine
transactions (Non-GAAP)
$
56,312
$
51,330
$
40,520
$
38,173
$
34,943
$
186,335
$
159,220
Diluted EPS from adjusted continuing
operations
$
0.92
$
0.84
$
0.66
$
0.62
$
0.57
$
3.04
$
2.60
FINANCIAL RATIOS
- REPORTED (GAAP)
Return on average equity from continuing
operations
11.36
%
10.62
%
-23.42
%
9.16
%
8.44
%
2.48
%
9.76
%
Return on average tangible equity from
continuing operations
13.68
%
12.86
%
-29.05
%
11.45
%
10.70
%
3.04
%
12.43
%
Return on average assets from continuing
operations
1.23
%
1.10
%
-2.16
%
0.83
%
0.72
%
0.24
%
0.82
%
FINANCIAL RATIOS
- ADJUSTED (NON-GAAP)
Return on average equity from adjusted
continuing operations
11.36
%
10.62
%
9.06
%
9.16
%
8.68
%
10.34
%
10.17
%
Return on average tangible equity from
adjusted
continuing operations
13.68
%
12.86
%
11.14
%
11.45
%
10.98
%
12.71
%
12.95
%
Return on average assets from adjusted
continuing operations
1.23
%
1.10
%
0.87
%
0.83
%
0.74
%
1.01
%
0.86
%
TRUSTMARK CORPORATION AND
SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIALS
December 31, 2024
($ in thousands)
(unaudited)
Note 7 – Non-GAAP Financial Measures
(continued)
The following table presents Trustmark’s
calculation of its efficiency ratio for the periods presented:
Quarter Ended
Year Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Total noninterest expense (GAAP)
$
124,430
$
123,270
$
118,326
$
119,664
$
126,195
$
485,690
$
495,696
Less:
Other real estate expense, net
286
(2,452
)
(327
)
(671
)
184
(3,164
)
(119
)
Amortization of intangibles
(27
)
(28
)
(27
)
(28
)
(33
)
(110
)
(290
)
Charitable contributions resulting in
state tax credits
(300
)
(300
)
(300
)
(300
)
(325
)
(1,200
)
(1,300
)
Reduction in force expense
—
—
—
—
(1,406
)
—
(1,406
)
Litigation settlement expense
—
—
—
—
—
—
(6,500
)
Adjusted noninterest expense
(Non-GAAP)
(c)
$
124,389
$
120,490
$
117,672
$
118,665
$
124,615
$
481,216
$
486,081
Net interest income (GAAP)
$
155,848
$
154,714
$
141,029
$
132,830
$
136,742
$
584,421
$
552,878
Add:
Tax equivalent adjustment
2,596
3,305
3,304
3,365
3,306
12,570
13,465
Net interest income-FTE (Non-GAAP)
(a)
$
158,444
$
158,019
$
144,333
$
136,195
$
140,048
$
596,991
$
566,343
Noninterest income (loss) (GAAP)
$
40,950
$
37,562
$
(141,286
)
$
39,355
$
36,605
$
(23,419
)
$
148,433
Add:
Partnership amortization for tax credit
purposes
1,992
1,977
1,824
1,834
2,013
7,627
7,988
Loss on sale of 1-4 family mortgage
loans
—
—
4,798
—
—
4,798
—
Securities (gains) losses, net
—
—
182,792
—
(39
)
182,792
(39
)
Less:
Visa C shares fair value adjustment
—
—
(8,056
)
—
—
(8,056
)
—
Adjusted noninterest income (Non-GAAP)
(b)
$
42,942
$
39,539
$
40,072
$
41,189
$
38,579
$
163,742
$
156,382
Adjusted revenue (Non-GAAP)
(a)+(b)
$
201,386
$
197,558
$
184,405
$
177,384
$
178,627
$
760,733
$
722,725
Efficiency ratio (Non-GAAP)
(c)/((a)+(b))
61.77
%
60.99
%
63.81
%
66.90
%
69.76
%
63.26
%
67.26
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128049337/en/
Trustmark Investor Contacts: Thomas C. Owens Treasurer
and Principal Financial Officer 601-208-7853
F. Joseph Rein, Jr. Executive Vice President 601-208-6898
Trustmark Media Contact: Melanie A. Morgan Executive Vice
President 601-208-2979
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