Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2025 Financial Results
JACKSON, Miss.--( BUSINESS WIRE)--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $57.9 million in the fourth quarter of 2025, representing diluted earnings per share of $0.97. For the full year, Trustmark’s net income totaled $224.1 million, representing diluted earnings per share of $3.70. Trustmark’s net income in 2025 produced a return on average tangible equity of 12.97% and a return on average assets of 1.21%.
Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/20260127663647/en
Trustmark’s Board of Directors announced a 4.2% increase in its regular quarterly dividend to $0.25 per share from $0.24 per share. The Board declared the dividend payable March 15, 2026, to shareholders of record on March 1, 2026. This action, which reflects Trustmark’s profitability and financial strength, raises the indicated annual dividend rate to $1.00 per share from $0.96 per share.
2025 Highlights
Duane A. Dewey, President and CEO, commented, “Trustmark achieved record earnings in 2025, reflecting significant achievement across our diverse financial services businesses. Our traditional banking business drove continued loan and deposit growth, a strong net interest margin and solid credit quality. Mortgage banking achieved increased production and significant improvement in profitability while revenue in our wealth management business reached an all-time high.
“We have a tremendous team of associates focused on expanding customer relationships and demonstrating the value Trustmark can provide as their trusted financial partner. Looking forward, we will continue to build upon this momentum and pursue opportunities to leverage investments in technology that will broaden our reach, enhance customer experience, and improve efficiency. Trustmark is well-positioned to meet the needs of our customers and build long-term value for our shareholders.”
Balance Sheet Management
Loans HFI totaled $13.7 billion at December 31, 2025, reflecting an increase of $126.1 million, or 0.9%, linked-quarter and an increase of $584.3 million, or 4.5%, year-over-year. Trustmark’s loan portfolio remains well-diversified by loan type and geography.
Deposits totaled $15.5 billion at December 31, 2025, down $131.2 million, or 0.8%, from the prior quarter driven in part by a decrease in public fund deposits of $219.1 million. Year-over-year, deposits increased $391.6 million, or 2.6%, driven by growth in commercial and personal balances of $567.8 million, or 4.4%. Trustmark continues to maintain a strong liquidity position as loans HFI represented 88.2% of total deposits at year-end 2025. Noninterest-bearing deposits represented 19.6% of total deposits at December 31, 2025. Interest-bearing deposit costs totaled 2.16% for the fourth quarter, a decrease of 16 basis points linked-quarter, while the cost of total deposits was 1.72%, a decrease of 12 basis points from the prior quarter.
Trustmark’s capital position remained strong, reflecting the strength and diversity of its financial services businesses. During the fourth quarter of 2025, Trustmark Corporation issued $175.0 million of 6.00% fixed-to-floating rate subordinated notes due in 2035, the proceeds of which were used to repay $125.0 million of existing subordinated debt and for general corporate purposes, further strengthening its regulatory capital position. At December 31, 2025, Trustmark’s tangible equity to tangible assets ratio was 9.61%, while the total risk-based capital ratio was 14.41%.
During the fourth quarter, Trustmark repurchased $43.0 million, or approximately 1.1 million of its common shares. During the twelve months ended December 31, 2025, Trustmark repurchased $80.0 million, or approximately 2.2 million of its common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2026, under which $100.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2026. 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. Tangible book value per share was $30.28 at December 31, 2025, an increase of 2.3% from the prior quarter and 13.5% from the prior year.
Credit Quality
Nonaccrual loans totaled $84.4 million at December 31, 2025, an increase of $436 thousand from the prior quarter and $4.3 million year-over-year. Other real estate totaled $7.0 million, reflecting a decrease of $1.4 million from the prior quarter and an increase of $1.0 million from the prior year. Collectively, nonperforming assets totaled $91.3 million, representing 0.65% of loans HFI and held for sale at December 31, 2025.
The total provision for credit losses (loans HFI and off-balance sheet credit exposures) was $1.2 million in the fourth quarter compared to $1.7 million in the third quarter and $7.5 million in the fourth quarter of 2024. The provision for credit losses for loans HFI was a negative $550 thousand in the fourth quarter and was primarily attributable to positive credit migration partially offset by loan growth and changes in the macroeconomic forecast. The provision for credit losses for off-balance sheet credit exposures was $1.8 million in the fourth quarter, primarily driven by changes in the macroeconomic forecast and an increase in unfunded commitments partially offset by positive credit migration.
Allocation of Trustmark’s $157.1 million ACL on loans HFI represented 0.91% of commercial loans and 1.94% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.15% at December 31, 2025. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.
Revenue Generation
Revenue in the fourth quarter totaled $204.1 million, an increase of $1.7 million, or 0.9%, from the prior quarter, reflecting growth in net interest income and noninterest income. In 2025, total revenue was $799.8 million, an increase of $238.8 million, or 42.6%, compared to revenue from continuing operations in 2024 and $59.2 million, or 8.0%, relative to revenue from adjusted continuing operations (1) in the prior year.
Net interest income (FTE) in the fourth quarter totaled $165.8 million, resulting in a net interest margin of 3.81%, down 2 basis points from the prior quarter reflecting the accelerated amortization of capitalized costs related to the 2020 subordinated debt issue refinanced during the quarter. Noninterest income in the fourth quarter totaled $41.2 million, an increase of $1.3 million, or 3.3%, from the prior quarter. The linked-quarter change reflected growth in wealth management, bank card and other fees, and other, net, offset in part by declines in mortgage banking and service charges on deposit accounts revenue.
Wealth management revenue totaled $11.1 million in the fourth quarter, up 13.6% from the prior quarter and 19.5% from the prior year. The linked-quarter change is attributable to increased trust and investment management and brokerage revenue. In 2025, wealth management revenue totaled $40.1 million, up $2.9 million, or 7.7%, from the prior year, reflecting expanded brokerage and trust and investment management revenue.
Mortgage loan production in the fourth quarter totaled $393.3 million, an increase of 1.0% linked-quarter and 5.7% year-over-year. Mortgage banking revenue totaled $7.5 million in the fourth quarter, a decrease of $655 thousand from the prior quarter and an increase of $139 thousand year-over-year. The linked-quarter decrease is primarily attributable to mortgage servicing asset valuation. In 2025, mortgage loan production totaled $1.5 billion, an increase of 7.8% from the prior year. Mortgage banking revenue totaled $33.1 million in 2025, up $6.5 million, or 24.2% from the prior year.
Service charges on deposit accounts totaled $11.2 million in the fourth quarter, relatively unchanged from the prior quarter and year-over-year. In 2025, service charges on deposit accounts totaled $43.7 million, down $726 thousand, or 1.6%, from the prior year. Bank card and other fees totaled $8.6 million in the fourth quarter, an increase of $328 thousand, or 3.9%, from the prior quarter and a decrease of $71 thousand, or 0.8%, year-over-year. The linked-quarter change is principally due to increased customer derivative revenue. In 2025, bank card and other fees totaled $33.4 million and were relatively unchanged from the prior year.
Noninterest Expense
Noninterest expense totaled $132.2 million in the fourth quarter, an increase of $1.2 million, or 0.9%, from the prior quarter and $7.7 million, or 6.2%, year-over-year. Salaries and employee benefits expense in the fourth quarter totaled $75.1 million, an increase of $3.6 million, or 5.0%, from the prior quarter and $5.9 million, or 8.5%, year-over-year. The linked-quarter increase was driven principally by year-end incentives and brokerage commissions. Services and fees in the fourth quarter totaled $27.4 million, down $1.4 million, or 4.9%, from the prior quarter reflecting lower business process outsourcing costs and professional fees. Year-over-year, services and fees increased $677 thousand, or 2.5%. Other expense decreased $1.5 million, or 8.8%, linked-quarter to $15.0 million principally due to reduced other real estate expense, net. Year-over-year, other expense decreased $101 thousand, or 0.7%.
(1) Please refer to Consolidated Financial Information, Note 1 – Significant Non-Routine Transactions and Note 8 – Non-GAAP Financial Measures.
Additional Information
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 28, 2026, 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 11, 2026, in archived format at the same web address or by calling (877) 344-7529, passcode 6669479.
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, conditions and changes, including volatility, in the credit and financial markets, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels, a slowdown in economic growth, changes in our ability to measure the fair value of assets in our portfolio, changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, potential market or regulatory effects of the current United States presidential administration’s policies, changes to the credit rating of U.S. Government securities 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.
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(222
)
-3.8
%
3,214
n/m
927
927
1,079
—
0.0
%
(152
)
-14.1
%
—
899
2,261
(899
)
-100.0
%
(2,261
)
-100.0
%
6,957
8,325
5,917
(1,368
)
-16.4
%
1,040
17.6
%
$
91,348
$
92,280
$
86,026
$
(932
)
-1.0
%
$
5,322
6.2
%
$
5,097
$
4,853
$
4,092
$
244
5.0
%
$
1,005
24.6
%
$
98,939
$
77,859
$
71,255
$
21,080
27.1
%
$
27,684
38.9
%
$
165,242
$
168,237
$
157,929
$
(2,995
)
-1.8
%
$
7,313
4.6
%
(550
)
1,390
6,960
(1,940
)
n/m
(7,510
)
n/m
—
—
—
—
n/m
—
n/m
—
—
—
—
n/m
—
n/m
(9,892
)
(6,775
)
(7,730
)
(3,117
)
-46.0
%
(2,162
)
-28.0
%
2,271
2,390
3,111
(119
)
-5.0
%
(840
)
-27.0
%
(7,621
)
(4,385
)
(4,619
)
(3,236
)
-73.8
%
(3,002
)
-65.0
%
$
157,071
$
165,242
$
160,270
$
(8,171
)
-4.9
%
$
(3,199
)
-2.0
%
$
(426
)
$
(3,069
)
$
(3,608
)
$
2,643
86.1
%
$
3,182
88.2
%
204
2
8
202
n/m
196
n/m
(1,468
)
(1,520
)
(1,319
)
52
3.4
%
(149
)
-11.3
%
(82
)
(182
)
(208
)
100
54.9
%
126
60.6
%
(5,849
)
384
508
(6,233
)
n/m
(6,357
)
n/m
$
(7,621
)
$
(4,385
)
$
(4,619
)
$
(3,236
)
-73.8
%
$
(3,002
)
-65.0
%
$
1,815,943
$
1,740,647
$
1,745,924
$
1,726,291
$
1,708,226
$
1,757,402
$
1,789,685
1,236,827
1,279,020
1,303,195
1,325,185
1,346,141
1,285,795
1,388,531
—
—
—
—
—
—
112
3,052,770
3,019,667
3,049,119
3,051,476
3,054,367
3,043,197
3,178,328
13,861,953
13,702,038
13,543,505
13,320,276
13,275,762
13,608,688
13,283,829
369,748
389,021
414,733
365,505
422,083
384,775
548,336
17,284,471
17,110,726
17,007,357
16,737,257
16,752,212
17,036,660
17,010,493
(161,147
)
(167,775
)
(166,430
)
(159,893
)
(157,659
)
(163,826
)
(148,564
)
1,609,123
1,627,362
1,605,786
1,624,581
1,627,890
1,616,700
1,685,971
$
18,732,447
$
18,570,313
$
18,446,713
$
18,201,945
$
18,222,443
$
18,489,534
$
18,547,900
$
8,000,614
$
7,747,480
$
7,682,684
$
7,789,239
$
7,789,318
$
7,805,426
$
7,838,499
963,759
976,664
989,689
993,232
983,292
980,744
1,016,373
3,447,188
3,439,180
3,313,420
3,160,134
3,265,358
3,341,039
3,331,543
12,411,561
12,163,324
11,985,793
11,942,605
12,037,968
12,127,209
12,186,415
402,772
419,802
416,104
405,189
357,798
410,984
398,884
178,487
283,629
431,861
344,040
218,244
308,980
388,266
160,786
123,831
123,779
123,721
123,666
133,106
123,584
61,856
61,856
61,856
61,856
61,856
61,856
61,856
13,215,462
13,052,442
13,019,393
12,877,411
12,799,532
13,042,135
13,159,005
3,185,575
3,194,587
3,171,796
3,055,333
3,192,358
3,152,297
3,179,641
204,636
232,911
214,315
277,647
257,990
232,178
383,627
16,605,673
16,479,940
16,405,504
16,210,391
16,249,880
16,426,610
16,722,273
2,126,774
2,090,373
2,041,209
1,991,554
1,972,563
2,062,924
1,825,627
$
18,732,447
$
18,570,313
$
18,446,713
$
18,201,945
$
18,222,443
$
18,489,534
$
18,547,900
$
668,007
$
732,826
$
634,402
$
587,362
$
567,251
1,876,830
1,814,245
1,782,092
1,737,462
1,692,534
1,207,454
1,268,459
1,290,572
1,315,053
1,335,385
278,789
228,141
219,649
188,689
200,307
13,674,233
13,548,156
13,464,780
13,241,469
13,089,942
(157,071
)
(165,242
)
(168,237
)
(167,010
)
(160,270
)
13,517,162
13,382,914
13,296,543
13,074,459
12,929,672
225,658
227,805
228,964
231,202
235,410
131,289
131,676
132,702
134,395
139,317
334,605
334,605
334,605
334,605
334,605
6,957
8,325
8,972
8,348
5,917
32,152
33,012
34,016
33,861
34,668
646,308
639,502
653,142
650,767
677,356
$
18,925,211
$
18,801,510
$
18,615,659
$
18,296,203
$
18,152,422
$
3,036,504
$
3,321,132
$
3,135,435
$
3,069,929
$
3,073,565
12,463,280
12,309,842
11,980,426
12,010,775
12,034,610
15,499,784
15,630,974
15,115,861
15,080,704
15,108,175
445,000
420,000
456,326
360,080
324,008
364,762
208,366
558,654
404,815
301,541
171,966
123,867
123,812
123,757
123,702
61,856
61,856
61,856
61,856
61,856
27,951
26,186
25,891
26,561
29,392
36,250
37,100
38,091
37,917
38,698
195,965
178,893
164,379
179,286
202,723
16,803,534
16,687,242
16,544,870
16,274,976
16,190,095
12,296
12,528
12,585
12,651
12,711
81,951
123,435
133,195
143,001
157,899
2,041,055
1,997,685
1,955,498
1,914,277
1,875,376
(13,625
)
(19,380
)
(30,489
)
(48,702
)
(83,659
)
2,121,677
2,114,268
2,070,789
2,021,227
1,962,327
$
18,925,211
$
18,801,510
$
18,615,659
$
18,296,203
$
18,152,422
$
211,716
$
214,636
$
209,077
$
201,929
$
211,019
$
837,358
$
857,307
26,587
26,625
26,269
26,056
26,196
105,537
85,921
—
—
—
—
—
—
5
3,967
4,233
4,734
3,846
5,128
16,780
29,667
242,270
245,494
240,080
231,831
242,343
959,675
972,900
67,696
71,065
68,177
67,718
75,941
274,656
329,381
4,089
4,626
4,513
4,298
4,036
17,526
20,154
4,659
4,585
5,982
5,076
3,922
20,302
26,374
76,444
80,276
78,672
77,092
83,899
312,484
375,909
165,826
165,218
161,408
154,739
158,444
647,191
596,991
(550
)
1,390
5,346
8,125
6,960
14,311
37,287
1,765
295
(670
)
(2,831
)
502
(1,441
)
(4,665
)
—
—
—
—
—
—
8,633
164,611
163,533
156,732
149,445
150,982
634,321
555,736
11,184
11,251
10,585
10,636
11,228
43,656
44,382
8,646
8,318
8,754
7,664
8,717
33,382
33,301
7,527
8,182
8,602
8,771
7,388
33,082
26,626
11,133
9,798
9,638
9,543
9,319
40,112
37,251
2,745
2,382
2,311
5,970
4,298
13,408
17,813
—
—
—
—
—
—
(182,792
)
41,235
39,931
39,890
42,584
40,950
163,640
(23,419
)
75,079
71,508
68,298
68,492
69,223
283,377
266,239
27,369
28,777
26,998
26,247
26,692
109,391
101,590
7,835
7,774
7,507
7,385
7,195
30,501
29,128
6,878
6,410
6,206
6,308
6,208
25,802
24,915
15,011
16,464
16,105
15,579
15,112
63,159
63,818
132,172
130,933
125,114
124,011
124,430
512,230
485,690
73,674
72,531
71,508
68,018
67,502
285,731
46,627
2,940
2,777
2,652
2,684
2,596
11,053
12,570
70,734
69,754
68,856
65,334
64,906
274,678
34,057
12,860
12,967
13,015
11,701
8,594
50,543
(11,153
)
57,874
56,787
55,841
53,633
56,312
224,135
45,210
—
—
—
—
—
—
237,152
—
—
—
—
—
—
59,353
—
—
—
—
—
—
177,799
$
57,874
$
56,787
$
55,841
$
53,633
$
56,312
$
224,135
$
223,009
$
0.97
$
0.94
$
0.92
$
0.88
$
0.92
$
3.72
$
0.74
$
—
$
—
$
—
$
—
$
—
$
—
$
2.91
$
0.97
$
0.94
$
0.92
$
0.88
$
0.92
$
3.72
$
3.65
$
0.97
$
0.94
$
0.92
$
0.88
$
0.92
$
3.70
$
0.74
$
—
$
—
$
—
$
—
$
—
$
—
$
2.90
$
0.97
$
0.94
$
0.92
$
0.88
$
0.92
$
3.70
$
3.63
$
0.24
$
0.24
$
0.24
$
0.24
$
0.23
$
0.96
$
0.92
59,691,343
60,299,193
60,462,578
60,799,984
61,101,954
60,310,198
61,158,427
59,950,488
60,540,158
60,693,515
61,049,120
61,367,825
60,542,187
61,384,221
59,012,423
60,126,376
60,401,684
60,718,411
61,008,023
59,012,423
61,008,023
$
4,638
$
3,475
$
8,422
$
18,633
$
18,601
442
460
437
391
305
73,045
62,502
54,015
49,107
42,203
2,396
2,293
2,232
2,339
2,431
3,870
15,225
15,894
16,150
16,569
84,391
83,955
81,000
86,620
80,109
409
656
772
271
170
5,621
5,843
4,860
4,837
2,407
927
927
1,079
979
1,079
—
899
2,261
2,261
2,261
6,957
8,325
8,972
8,348
5,917
$
91,348
$
92,280
$
89,972
$
94,968
$
86,026
$
5,097
$
4,853
$
3,854
$
4,355
$
4,092
$
98,939
$
77,859
$
75,564
$
71,720
$
71,255
$
165,242
$
168,237
$
167,010
$
160,270
$
157,929
$
160,270
$
139,367
(550
)
1,390
5,346
8,125
6,960
14,311
37,287
—
—
—
—
—
—
8,633
—
—
—
—
—
—
(8,633
)
(9,892
)
(6,775
)
(6,380
)
(3,701
)
(7,730
)
(26,748
)
(26,316
)
2,271
2,390
2,261
2,316
3,111
9,238
9,932
(7,621
)
(4,385
)
(4,119
)
(1,385
)
(4,619
)
(17,510
)
(25,017
)
$
157,071
$
165,242
$
168,237
$
167,010
$
160,270
$
157,071
$
160,270
$
(426
)
$
(3,069
)
$
(2,331
)
$
(207
)
$
(3,608
)
$
(6,033
)
$
(6,988
)
204
2
151
(17
)
8
340
884
(1,468
)
(1,520
)
(1,647
)
(755
)
(1,319
)
(5,390
)
(13,801
)
(82
)
(182
)
(258
)
(301
)
(208
)
(823
)
(805
)
(5,849
)
384
(34
)
(105
)
508
(5,604
)
(4,307
)
$
(7,621
)
$
(4,385
)
$
(4,119
)
$
(1,385
)
$
(4,619
)
$
(17,510
)
$
(25,017
)
10.80
%
10.78
%
10.97
%
10.92
%
11.36
%
10.86
%
2.48
%
n/a
n/a
n/a
n/a
n/a
n/a
10.34
%
10.80
%
10.78
%
10.97
%
10.92
%
11.36
%
10.86
%
12.22
%
12.82
%
12.84
%
13.13
%
13.13
%
13.68
%
12.97
%
3.04
%
n/a
n/a
n/a
n/a
n/a
n/a
12.71
%
12.82
%
12.84
%
13.13
%
13.13
%
13.68
%
12.97
%
15.20
%
1.23
%
1.21
%
1.21
%
1.19
%
1.23
%
1.21
%
0.24
%
n/a
n/a
n/a
n/a
n/a
n/a
1.01
%
1.23
%
1.21
%
1.21
%
1.19
%
1.23
%
1.21
%
1.20
%
5.56
%
5.69
%
5.66
%
5.62
%
5.76
%
5.63
%
5.72
%
1.75
%
1.86
%
1.86
%
1.87
%
1.99
%
1.83
%
2.21
%
3.81
%
3.83
%
3.81
%
3.75
%
3.76
%
3.80
%
3.51
%
62.69
%
61.98
%
61.24
%
61.77
%
61.77
%
61.93
%
63.26
%
2,543
2,539
2,510
2,506
2,500
0.22
%
0.13
%
0.12
%
0.04
%
0.14
%
0.13
%
0.12
%
-0.02
%
0.04
%
0.16
%
0.25
%
0.21
%
0.11
%
0.28
%
0.60
%
0.61
%
0.59
%
0.64
%
0.60
%
0.65
%
0.67
%
0.66
%
0.71
%
0.65
%
0.65
%
0.67
%
0.66
%
0.71
%
0.65
%
1.15
%
1.22
%
1.25
%
1.26
%
1.22
%
0.91
%
1.00
%
1.07
%
1.11
%
1.10
%
1.94
%
1.95
%
1.83
%
1.76
%
1.62
%
186.12
%
196.82
%
207.70
%
192.81
%
200.06
%
209.18
%
239.69
%
272.20
%
296.41
%
341.20
%
11.21
%
11.25
%
11.12
%
11.05
%
10.81
%
9.61
%
9.64
%
9.50
%
9.39
%
9.13
%
11.54
%
11.66
%
11.41
%
11.23
%
10.86
%
10.18
%
10.26
%
10.15
%
10.11
%
9.99
%
11.72
%
11.88
%
11.70
%
11.63
%
11.54
%
12.11
%
12.27
%
12.09
%
12.03
%
11.94
%
14.41
%
14.33
%
14.15
%
14.10
%
13.97
%
$
38.95
$
39.60
$
36.46
$
34.49
$
35.37
$
35.95
$
35.16
$
34.28
$
33.29
$
32.17
$
30.28
$
29.60
$
28.74
$
27.78
$
26.68
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 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. The gains and losses described below are reflected in the year ended December 31, 2024 in the Consolidated Financial Information as well as the relevant tables in the Notes to Consolidated Financials:
Note 2 – Subordinated Notes Payable
During the fourth quarter of 2025, Trustmark agreed to issue and sell $175.0 million aggregate principal amount of its 6.00% Fixed-to-Floating Rate Subordinated Notes (the Notes) due December 1, 2035. The Notes were sold at an underwriting discount of 1.1%, resulting in net proceeds to Trustmark of $173.1 million before deducting offering expenses. Trustmark used the net proceeds from the offering, after the payment of offering expenses, to repay the existing $125.0 million of aggregate principal amount of its outstanding 3.625% Fixed-to-Floating Rate Subordinated Notes due December 1, 2030 plus accrued interest, and for general corporate purposes.
The Notes are unsecured obligations and are subordinated in right of payment to all of Trustmark’s existing and future senior indebtedness, whether secured or unsecured. The Notes are obligations of Trustmark only and are not obligations of, and are not guaranteed by, any of its subsidiaries, including TB. The Notes qualify as Tier 2 capital for Trustmark. The Notes may be redeemed at Trustmark’s option under certain circumstances.
From and including the date of issuance to, but excluding, December 1, 2030 (unless redeemed prior to such date), the Notes bear interest at a rate of 6.00% per year, payable semiannually in arrears on June 1 and December 1 of each year, commencing on June 1, 2026. From and including December 1, 2030 to, but excluding, the maturity date (unless redeemed prior to such date), the Notes will bear interest at a floating rate per year equal to the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 260 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, commencing on March 1, 2031.
At December 31, 2025, the carrying amount of the Notes was $172.0 million.
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands)
(unaudited)
Note 3 - 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:
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities
$
208,948
$
208,269
$
215,679
$
212,463
$
202,669
U.S. Government agency obligations
70,849
70,535
65,800
49,325
38,807
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA
38,535
35,806
34,070
28,108
28,411
Issued by FNMA and FHLMC
1,187,759
1,126,931
1,109,203
1,090,137
1,070,538
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
370,739
372,704
357,340
357,429
352,109
Total securities available for sale
$
1,876,830
$
1,814,245
$
1,782,092
$
1,737,462
$
1,692,534
SECURITIES HELD TO MATURITY
U.S. Treasury securities
$
30,615
$
30,421
$
30,226
$
30,033
$
29,842
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA
13,154
14,353
14,750
15,726
16,218
Issued by FNMA and FHLMC
372,311
384,625
398,161
411,454
423,372
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
96,667
103,041
109,697
116,969
123,685
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
694,707
736,019
737,738
740,871
742,268
Total securities held to maturity
$
1,207,454
$
1,268,459
$
1,290,572
$
1,315,053
$
1,335,385
At December 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 $36.3 million.
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, direct obligations of government agencies and GSE-backed obligations. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands)
(unaudited)
Note 4 – Loan Composition
LHFI consisted of the following during the periods presented:
LHFI BY TYPE
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
Loans secured by real estate:
Construction, land development and
other land loans
$
1,144,591
$
1,241,827
$
1,355,223
$
1,321,631
$
1,417,148
Secured by 1-4 family residential properties
3,056,189
3,054,869
3,057,362
2,973,978
2,949,543
Secured by nonfarm, nonresidential properties
3,304,523
3,299,819
3,478,932
3,532,842
3,533,282
Other real estate secured
2,124,272
2,055,712
1,918,341
1,876,459
1,633,830
Commercial and industrial loans
1,999,464
1,903,606
1,832,295
1,765,893
1,840,722
Consumer loans
159,158
151,287
149,395
154,623
151,443
State and other political subdivision loans
1,061,584
1,028,396
961,251
974,300
969,836
Other loans and leases
824,452
812,640
711,981
641,743
594,138
LHFI
13,674,233
13,548,156
13,464,780
13,241,469
13,089,942
ACL LHFI
(157,071
)
(165,242
)
(168,237
)
(167,010
)
(160,270
)
Net LHFI
$
13,517,162
$
13,382,914
$
13,296,543
$
13,074,459
$
12,929,672
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, 2025
LHFI - COMPOSITION BY REGION
Total
Alabama
Florida
Georgia
Mississippi
(Central and
Southern
Regions)
Tennessee
(Memphis, TN
and
Northern MS
Regions)
Texas
Loans secured by real estate:
Construction, land development and
other land loans
$
1,144,591
$
437,797
$
25,280
$
175,644
$
251,055
$
36,569
$
218,246
Secured by 1-4 family residential properties
3,056,189
167,686
66,790
—
2,688,718
90,574
42,421
Secured by nonfarm, nonresidential properties
3,304,523
800,973
179,726
58,886
1,527,022
127,681
610,235
Other real estate secured
2,124,272
861,247
1,621
222,998
613,766
7,231
417,409
Commercial and industrial loans
1,999,464
545,831
21,092
352,448
697,450
139,002
243,641
Consumer loans
159,158
21,085
7,262
—
91,170
13,418
26,223
State and other political subdivision loans
1,061,584
48,938
56,720
4,690
826,565
26,563
98,108
Other loans and leases
824,452
22,510
4,320
440,254
249,691
50,813
56,864
Loans
$
13,674,233
$
2,906,067
$
362,811
$
1,254,920
$
6,945,437
$
491,851
$
1,713,147
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots
$
74,904
$
33,841
$
7,462
$
—
$
14,027
$
2,437
$
17,137
Development
84,030
37,633
264
—
18,518
11,600
16,015
Unimproved land
82,353
20,122
7,654
—
19,775
5,770
29,032
1-4 family construction
308,066
161,093
9,900
17,360
68,252
16,424
35,037
Other construction
595,238
185,108
—
158,284
130,483
338
121,025
Construction, land development
and other land loans
$
1,144,591
$
437,797
$
25,280
$
175,644
$
251,055
$
36,569
$
218,246
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands)
(unaudited)
Note 4 – Loan Composition (continued)
December 31, 2025
Total
Alabama
Florida
Georgia
Mississippi
(Central and
Southern
Regions)
Tennessee
(Memphis, TN
and
Northern MS
Regions)
Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail
$
243,503
$
88,620
$
12,965
$
—
$
58,166
$
19,036
$
64,716
Office
225,849
82,704
17,475
—
85,278
2,704
37,688
Hotel/motel
234,897
120,008
40,827
—
52,033
22,029
—
Mini-storage
176,575
46,991
1,325
40,886
86,352
569
452
Industrial & warehouses
508,016
88,654
17,670
18,000
246,846
2,442
134,404
Health care
122,128
97,895
655
—
21,249
311
2,018
Convenience stores
19,803
2,012
372
—
11,378
160
5,881
Nursing homes/senior living
233,004
13,948
—
—
142,465
3,452
73,139
Other
107,145
25,212
8,111
—
57,375
6,899
9,548
Total non-owner occupied loans
1,870,920
566,044
99,400
58,886
761,142
57,602
327,846
Owner-occupied:
Office
149,500
46,947
29,863
—
37,653
10,382
24,655
Churches
47,039
9,824
3,661
—
25,619
2,676
5,259
Industrial & warehouses
239,567
16,480
7,044
—
70,279
10,079
135,685
Health care
118,783
4,732
14,528
—
90,210
2,114
7,199
Convenience stores
101,177
7,107
2,748
—
55,207
—
36,115
Retail
77,138
10,424
13,318
—
39,525
7,070
6,801
Restaurants
66,834
2,482
2,254
—
32,102
24,011
5,985
Auto dealerships
30,680
2,614
145
—
14,239
13,682
—
Nursing homes/senior living
482,783
118,407
—
—
338,597
—
25,779
Other
120,102
15,912
6,765
—
62,449
65
34,911
Total owner-occupied loans
1,433,603
234,929
80,326
—
765,880
70,079
282,389
Loans secured by nonfarm, nonresidential properties
$
3,304,523
$
800,973
$
179,726
$
58,886
$
1,527,022
$
127,681
$
610,235
Note 5 – Yields on Earning Assets and Costs of Interest-Bearing Liabilities
The following table illustrates the yields on earning assets by category as well as the costs of interest-bearing liabilities on a tax equivalent basis. The cost of total deposits includes both interest-bearing deposits and noninterest-bearing deposits. The net interest margin, which equals reported net interest income-FTE, annualized, as a percent of average earning assets, is also presented in the table below.
Quarter Ended
Year Ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Securities – taxable
3.46
%
3.50
%
3.46
%
3.46
%
3.41
%
3.47
%
2.70
%
Securities – nontaxable
—
—
—
—
—
—
4.46
%
Securities – total
3.46
%
3.50
%
3.46
%
3.46
%
3.41
%
3.47
%
2.70
%
LHFI & LHFS
6.06
%
6.21
%
6.19
%
6.15
%
6.32
%
6.15
%
6.45
%
Other earning assets
4.26
%
4.32
%
4.58
%
4.27
%
4.83
%
4.36
%
5.41
%
Total earning assets
5.56
%
5.69
%
5.66
%
5.62
%
5.76
%
5.63
%
5.72
%
Interest-bearing deposits
2.16
%
2.32
%
2.28
%
2.30
%
2.51
%
2.26
%
2.70
%
Fed funds purchased & repurchases
4.03
%
4.37
%
4.35
%
4.30
%
4.49
%
4.26
%
5.05
%
Other borrowings
4.61
%
3.88
%
3.89
%
3.89
%
3.86
%
4.03
%
4.60
%
Total interest-bearing liabilities
2.29
%
2.44
%
2.42
%
2.43
%
2.61
%
2.40
%
2.86
%
Total Deposits
1.72
%
1.84
%
1.80
%
1.83
%
1.98
%
1.80
%
2.14
%
Net interest margin
3.81
%
3.83
%
3.81
%
3.75
%
3.76
%
3.80
%
3.51
%
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands)
(unaudited)
Note 5 – Yields on Earning Assets and Costs of Interest-Bearing Liabilities (continued)
The net interest margin decreased two basis points when compared to the third quarter of 2025, totaling 3.81% for the fourth quarter of 2025, primarily due to the accelerated amortization of capitalized costs related to the 2020 subordinated debt issue refinanced during the quarter while decreases in the yields for the loans held for investment and held for sale and the securities portfolios were largely offset by the decrease in the costs of interest-bearing deposits.
Note 6 – 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 $582 thousand during the fourth quarter of 2025.
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
Quarter Ended
Year Ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Mortgage servicing income, net
$
7,342
$
7,251
$
7,142
$
7,161
$
7,161
$
28,896
$
28,215
Change in fair value-MSR from runoff
(4,141
)
(3,441
)
(3,596
)
(2,062
)
(3,118
)
(13,240
)
(11,645
)
Gain on sales of loans, net
4,908
5,230
5,597
4,253
4,470
19,988
19,278
Mortgage banking income before hedge
ineffectiveness
8,109
9,040
9,143
9,352
8,513
35,644
35,848
Change in fair value-MSR from market changes
(445
)
(1,521
)
(1,946
)
(5,928
)
12,710
(9,840
)
5,801
Change in fair value of derivatives
(137
)
663
1,405
5,347
(13,835
)
7,278
(15,023
)
Net positive (negative) hedge ineffectiveness
(582
)
(858
)
(541
)
(581
)
(1,125
)
(2,562
)
(9,222
)
Mortgage banking, net
$
7,527
$
8,182
$
8,602
$
8,771
$
7,388
$
33,082
$
26,626
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands)
(unaudited)
Note 7 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the periods presented:
Quarter Ended
Year Ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Partnership amortization for tax credit purposes
$
(2,380
)
$
(2,385
)
$
(2,137
)
$
(2,124
)
$
(1,992
)
$
(9,026
)
$
(7,627
)
Increase in life insurance cash surrender value
1,940
1,945
1,911
1,867
1,891
7,663
7,478
Loss on sale of 1-4 family mortgage loans
—
—
—
—
—
—
(4,798
)
Visa C shares fair value adjustment
—
—
—
—
—
—
8,056
Other miscellaneous income
3,185
2,822
2,537
6,227
4,399
14,771
14,704
Total other, net
$
2,745
$
2,382
$
2,311
$
5,970
$
4,298
$
13,408
$
17,813
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
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Loan expense
$
3,425
$
3,287
$
3,377
$
2,792
$
2,921
$
12,881
$
11,580
Amortization of intangibles
32
31
32
31
27
126
110
FDIC assessment expense
3,546
3,935
4,064
4,160
4,815
15,705
19,211
Other real estate expense, net
501
1,932
159
452
(286
)
3,044
3,164
Other miscellaneous expense
7,507
7,279
8,473
8,144
7,635
31,403
29,753
Total other expense
$
15,011
$
16,464
$
16,105
$
15,579
$
15,112
$
63,159
$
63,818
Note 8 – 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, 2025
($ in thousands except per share data)
(unaudited)
Note 8 – Non-GAAP Financial Measures (continued)
Quarter Ended
Year Ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity
$
2,126,774
$
2,090,373
$
2,041,209
$
1,991,554
$
1,972,563
$
2,062,924
$
1,825,627
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(9
)
(49
)
(80
)
(113
)
(141
)
(62
)
(182
)
Total average tangible equity
$
1,792,160
$
1,755,719
$
1,706,524
$
1,656,836
$
1,637,817
$
1,728,257
$
1,490,840
PERIOD END BALANCES
Total shareholders' equity
$
2,121,677
$
2,114,268
$
2,070,789
$
2,021,227
$
1,962,327
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
—
(32
)
(63
)
(95
)
(126
)
Total tangible equity
(a)
$
1,787,072
$
1,779,631
$
1,736,121
$
1,686,527
$
1,627,596
TANGIBLE ASSETS
Total assets
$
18,925,211
$
18,801,510
$
18,615,659
$
18,296,203
$
18,152,422
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
—
(32
)
(63
)
(95
)
(126
)
Total tangible assets
(b)
$
18,590,606
$
18,466,873
$
18,280,991
$
17,961,503
$
17,817,691
Risk-weighted assets
(c)
$
15,483,472
$
15,262,807
$
15,215,021
$
15,024,476
$
14,990,258
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing operations
$
57,874
$
56,787
$
55,841
$
53,633
$
56,312
$
224,135
$
45,210
Plus: Intangible amortization net of tax
from continuing operations
24
24
24
24
20
96
81
Net income (loss) adjusted for
intangible amortization
$
57,898
$
56,811
$
55,865
$
53,657
$
56,332
$
224,231
$
45,291
Period end common shares outstanding
(d)
59,012,423
60,126,376
60,401,684
60,718,411
61,008,023
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity from
continuing operations (1)
12.82
%
12.84
%
13.13
%
13.13
%
13.68
%
12.97
%
3.04
%
Tangible equity/tangible assets
(a)/(b)
9.61
%
9.64
%
9.50
%
9.39
%
9.13
%
Tangible equity/risk-weighted assets
(a)/(c)
11.54
%
11.66
%
11.41
%
11.23
%
10.86
%
Tangible book value
(a)/(d)*1,000
$
30.28
$
29.60
$
28.74
$
27.78
$
26.68
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity
$
2,121,677
$
2,114,268
$
2,070,789
$
2,021,227
$
1,962,327
CECL transition adjustment
—
—
—
—
6,500
AOCI-related adjustments
13,625
19,380
30,489
48,702
83,659
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)
(320,754
(320,754
(320,755
(320,756
(320,756
Other adjustments and deductions
for CET1 (2)
(253
)
(111
)
(955
)
(2,175
)
(2,058
)
CET1 capital
(e)
1,814,295
1,812,783
1,779,568
1,746,998
1,729,672
Additional tier 1 capital instruments
plus related surplus
60,000
60,000
60,000
60,000
60,000
Tier 1 capital
$
1,874,295
$
1,872,783
$
1,839,568
$
1,806,998
$
1,789,672
Common equity tier 1 capital ratio
(e)/(c)
11.72
%
11.88
%
11.70
%
11.63
%
11.54
%
(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, 2025
($ in thousands)
(unaudited)
Note 8 – 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
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Net interest income (GAAP)
(a)
$
162,886
$
162,441
$
158,756
$
152,055
$
155,848
$
636,138
$
584,421
Noninterest income (loss) (GAAP)
41,235
39,931
39,890
42,584
40,950
163,640
(23,419
)
Add:
Loss on sale of 1-4 family mortgage loans (incl in
Other, net)
—
—
—
—
—
—
4,798
Visa C shares fair value adjustment (incl in Other, net)
—
—
—
—
—
—
(8,056
)
Securities (gains) losses, net
—
—
—
—
—
—
182,792
Noninterest income from adjusted continuing
operations (Non-GAAP)
(b)
$
41,235
$
39,931
$
39,890
$
42,584
$
40,950
$
163,640
$
156,115
Adjusted pre-provision revenue
(a)+(b)=(c)
$
204,121
$
202,372
$
198,646
$
194,639
$
196,798
$
799,778
$
740,536
Noninterest expense (GAAP)
(d)
132,172
130,933
125,114
124,011
124,430
512,230
485,690
PPNR (Non-GAAP)
(c)-(d)
$
71,949
$
71,439
$
73,532
$
70,628
$
72,368
$
287,548
$
254,846
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands except per share data)
(unaudited)
Note 8 – 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
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Net income (loss) (GAAP) from continuing operations
$
57,874
$
56,787
$
55,841
$
53,633
$
56,312
$
224,135
$
45,210
Significant non-routine transactions (net of taxes):
PCL, LHFI sale of nonperforming 1-4 family
—
—
—
—
—
—
6,475
Loss on sale of 1-4 family mortgage loans
—
—
—
—
—
—
3,598
Visa C shares fair value adjustment
—
—
—
—
—
—
(6,042
)
Securities gains (losses), net
—
—
—
—
—
—
137,094
Net income adjusted for significant non-routine
transactions (Non-GAAP)
$
57,874
$
56,787
$
55,841
$
53,633
$
56,312
$
224,135
$
186,335
Diluted EPS from adjusted continuing operations
$
0.97
$
0.94
$
0.92
$
0.88
$
0.92
$
3.70
$
3.04
FINANCIAL RATIOS - REPORTED (GAAP)
Return on average equity from continuing operations
10.80
%
10.78
%
10.97
%
10.92
%
11.36
%
10.86
%
2.48
%
Return on average tangible equity from
continuing operations
12.82
%
12.84
%
13.13
%
13.13
%
13.68
%
12.97
%
3.04
%
Return on average assets from continuing operations
1.23
%
1.21
%
1.21
%
1.19
%
1.23
%
1.21
%
0.24
%
FINANCIAL RATIOS - ADJUSTED (NON-GAAP)
Return on average equity from adjusted
continuing operations
n/a
n/a
n/a
n/a
n/a
n/a
10.34
%
Return on average tangible equity from adjusted
continuing operations
n/a
n/a
n/a
n/a
n/a
n/a
12.71
%
Return on average assets from adjusted
continuing operations
n/a
n/a
n/a
n/a
n/a
n/a
1.01
%
n/a - not applicable
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2025
($ in thousands)
(unaudited)
Note 8 – Non-GAAP Financial Measures (continued)
The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:
Quarter Ended
Year Ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
12/31/2025
12/31/2024
Total noninterest expense (GAAP)
$
132,172
$
130,933
$
125,114
$
124,011
$
124,430
$
512,230
$
485,690
Less:
Other real estate expense, net
(501
)
(1,932
)
(159
)
(452
)
286
(3,044
)
(3,164
)
Amortization of intangibles
(32
)
(31
)
(32
)
(31
)
(27
)
(126
)
(110
)
Charitable contributions resulting in
state tax credits
(333
)
(334
)
(334
)
(334
)
(300
)
(1,335
)
(1,200
)
Adjusted noninterest expense (Non-GAAP)
(a)
$
131,306
$
128,636
$
124,589
$
123,194
$
124,389
$
507,725
$
481,216
Net interest income (GAAP)
$
162,886
$
162,441
$
158,756
$
152,055
$
155,848
$
636,138
$
584,421
Add:
Tax equivalent adjustment
2,940
2,777
2,652
2,684
2,596
11,053
12,570
Net interest income-FTE (Non-GAAP)
(b)
$
165,826
$
165,218
$
161,408
$
154,739
$
158,444
$
647,191
$
596,991
Noninterest income (loss) (GAAP)
$
41,235
$
39,931
$
39,890
$
42,584
$
40,950
$
163,640
$
(23,419
)
Add:
Partnership amortization for tax
credit purposes
2,380
2,385
2,137
2,124
1,992
9,026
7,627
Loss on sale of 1-4 family mortgage loans
—
—
—
—
—
—
4,798
Securities (gains) losses, net
—
—
—
—
—
—
182,792
Less:
Visa C shares fair value adjustment
—
—
—
—
—
—
(8,056
)
Adjusted noninterest income (Non-GAAP)
(c)
$
43,615
$
42,316
$
42,027
$
44,708
$
42,942
$
172,666
$
163,742
Adjusted revenue (Non-GAAP)
(b)+(c)
$
209,441
$
207,534
$
203,435
$
199,447
$
201,386
$
819,857
$
760,733
Efficiency ratio (Non-GAAP)
(a)/((b)+(c))
62.69
%
61.98
%
61.24
%
61.77
%
61.77
%
61.93
%
63.26
%