Trustmark Corporation Announces Third Quarter 2025 Financial Results
JACKSON, Miss.--( BUSINESS WIRE)--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $56.8 million in the third quarter of 2025, representing diluted earnings per share of $0.94. Trustmark’s performance during the third quarter produced a return on average tangible equity of 12.84% and a return on average assets of 1.21%. The Board of Directors declared a quarterly cash dividend of $0.24 per share payable December 15, 2025, to shareholders of record on December 1, 2025.
Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/20251028256695/en
Third Quarter Highlights
Duane A. Dewey, President and CEO, stated, “Our momentum continues to build as reflected in Trustmark’s solid financial performance in the third quarter. Diversified loan growth and stable credit quality continued along with cost-effective core deposit growth. Our wealth management business performed well while our mortgage business continued to execute well in a challenging operating environment. We continued to implement organic growth initiatives and make investments to capitalize on opportunities in our marketplace. During the quarter, we added established relationship managers and production talent to accelerate profitable growth in key markets across our franchise. We will continue to add seasoned professionals with proven performance records to supplement our teams and expand and deepen customer relationships. These investments are designed to further enhance our financial performance and create long-term value for our shareholders.”
Balance Sheet Management
Loans HFI totaled $13.5 billion at September 30, 2025, reflecting an increase of $83.4 million, or 0.6%, linked-quarter and $448.0 million, or 3.4%, year-over-year. The linked-quarter growth was driven by other real estate secured loans, other loans and leases, commercial and industrial loans, and state and other political subdivision loans, which were offset in part by declines in nonfarm, nonresidential loans and construction, land development and other land loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.
Deposits totaled $15.6 billion at September 30, 2025, up $515.1 million, or 3.4%, from the prior quarter and $390.0 million, or 2.6%, year-over-year. The linked-quarter increase reflected interest-bearing deposit growth of $329.4 million, or 2.7%, and noninterest-bearing deposit growth of $185.7 million, or 5.9%. Noninterest-bearing deposits represented 21.2% of total deposits at September 30, 2025. Trustmark continued to maintain a strong liquidity position as loans HFI represented 86.7% of total deposits at the end of the third quarter. Interest-bearing deposit costs totaled 2.32% for the third quarter, an increase of 4 basis points linked-quarter while the cost of total deposits was 1.84%, an increase of 4 basis points from the prior quarter.
During the third quarter, Trustmark repurchased $11.0 million, or approximately 280 thousand of its common shares. During the first nine months of 2025, Trustmark repurchased $37.1 million, or approximately 1.0 million 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 September 30, 2025, Trustmark’s tangible equity to tangible assets ratio was 9.64%, while the total risk-based capital ratio was 14.33%. Tangible book value per share was $29.60 at September 30, 2025, an increase of 3.0% from the prior quarter and 10.1% from the prior year.
Credit Quality
Nonaccrual loans totaled $84.0 million at September 30, 2025, reflecting an increase of $3.0 million from the prior quarter. Other real estate totaled $8.3 million, reflecting a decrease of $647 thousand from the prior quarter. Collectively, nonperforming assets totaled $92.3 million at September 30, 2025, up $2.3 million from the prior quarter. Nonperforming assets represented 0.67% of loans HFI and loans held for sale (HFS) at September 30, 2025.
The provision for credit losses for loans HFI was $1.4 million in the third quarter and was primarily attributable to loan and lease growth and changes in the macroeconomic forecast partially offset by net changes in the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was $295 thousand in the third quarter, primarily driven by changes in the macroeconomic forecast and an increase in unfunded commitments partially offset by net changes in the qualitative factors. Collectively, the provision for credit losses totaled $1.7 million in the third quarter compared to $4.7 million in the prior quarter and $6.5 million in the third quarter of 2024.
Allocation of Trustmark’s $165.2 million ACL on loans HFI represented 1.00% of commercial loans and 1.95% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.22% at September 30, 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 third quarter totaled $202.4 million, an increase of 1.9% from the prior quarter and 5.3% year-over-year. The linked-quarter increase reflects growth in net interest income while noninterest income remained stable. The year-over-year increase reflects higher net interest income and noninterest income. Net interest income (FTE) in the third quarter totaled $165.2 million, resulting in a net interest margin of 3.83%, up 2 basis points from the prior quarter. The increase in the net interest margin was primarily due to increases in the yields for the loans HFI and HFS and the securities portfolios partially offset by the increase in the cost of interest-bearing deposits.
Noninterest income in the third quarter totaled $39.9 million, an increase of 0.1%, from the prior quarter and 6.3% year-over-year. Excluding a $272 thousand net loss on sale of bank facilities in the second quarter, noninterest income declined $231 thousand linked-quarter. Linked-quarter increases in service charges on deposit accounts and wealth management were offset in part by declines in bank card and other fees and mortgage banking, net. The year-over-year increase was principally attributable to growth in mortgage banking, wealth management and bank card revenue offset in part by lower other, net and service charges on deposit accounts revenue.
Mortgage loan production in the third quarter totaled $389.4 million, down 8.7% from the prior quarter and 0.7% year-over-year. Mortgage banking revenue totaled $8.2 million in the third quarter, a decrease of $420 thousand, or 4.9%, linked-quarter and an increase of $2.1 million, or 33.7%, year-over-year. The linked-quarter decrease was principally due to lower gain on sales of loans, net and increased net negative hedge ineffectiveness, which was offset in part by increased mortgage servicing income, net. The year-over-year increase was principally attributable to increased gain on sales of loans, net, mortgage servicing revenue and improved net hedge ineffectiveness.
Wealth management revenue in the third quarter totaled $9.8 million, an increase of $160 thousand, or 1.7%, from the prior quarter and $510 thousand, or 5.5%, year-over-year. The linked-quarter growth reflected increased investment services revenue offset in part by lower trust management revenue. The year-over-year growth reflected increased trust management and investment services revenue.
Service charges on deposit accounts totaled $11.3 million in the third quarter, a seasonal increase of $666 thousand, or 6.3%, from the prior quarter and relatively unchanged year-over-year. Bank card and other fees totaled $8.3 million in the third quarter, down $436 thousand, or 5.0%, from the prior quarter and up $387 thousand, or 4.9%, year-over-year. The linked-quarter change is principally due to a seasonal reduction in miscellaneous other fees and along with a decline in customer derivative revenue while the year-over-year increase reflects increased customer derivative revenue.
Noninterest Expense
Noninterest expense totaled $130.9 million in the third quarter, an increase of $5.8 million, or 4.7%, from the prior quarter and $7.7 million, or 6.2%, year-over-year. Salaries and employee benefits expense totaled $71.5 million in the third quarter, an increase of $3.2 million, or 4.7%, linked-quarter and $4.8 million, or 7.2%, year-over-year. The linked-quarter change is principally due to annual salary merit increases effective as of July 1, increased annual incentive accruals, and the cost of additional customer relationship managers and production talent in key markets associated with corporate strategic initiatives.
Services and fees totaled $28.8 million in the third quarter, an increase of $1.8 million, or 6.6%, linked-quarter and $3.1 million, or 11.9%, year-over-year. Services and fees in the third quarter include approximately $900 thousand in nonroutine items including professional fees related to the conversion to a state banking charter and other corporate strategic initiatives. Net occupancy expense totaled $7.8 million, up $267 thousand, or 3.6%, linked-quarter and $376 thousand, or 5.1%, year-over-year. Total other expense in the third quarter was $16.5 million, an increase of $359 thousand, or 2.2%, linked-quarter and a decrease of $852 thousand, or 4.9%, year-over-year. The linked-quarter change is attributable to increased other real estate expense, net offset in part by lower other miscellaneous expense, FDIC assessment expense and loan expense. The year-over-year decline is attributable to lower FDIC assessment expense and other real estate expense, net offset in part by higher loan expense and other miscellaneous expense.
Additional Information
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 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, November 12, 2025, in archived format at the same web address or by calling (877) 344-7529, passcode 5434793.
Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas.
Forward-Looking Statements
Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations or financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.
Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels, a slowdown in economic growth, changes in our ability to measure the fair value of assets in our portfolio, changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, potential market or regulatory effects of the current United States presidential administration’s policies, 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.
$
1,740,647
$
1,745,924
$
1,658,999
$
(5,277
)
-0.3
%
$
81,648
4.9
%
1,279,020
1,303,195
1,368,943
(24,175
)
-1.9
%
(89,923
)
-6.6
%
—
—
—
—
n/m
—
n/m
3,019,667
3,049,119
3,027,942
(29,452
)
-1.0
%
(8,275
)
-0.3
%
13,702,038
13,543,505
13,379,658
158,533
1.2
%
322,380
2.4
%
389,021
414,733
607,928
(25,712
)
-6.2
%
(218,907
)
-36.0
%
17,110,726
17,007,357
17,015,528
103,369
0.6
%
95,198
0.6
%
(167,775
)
(166,430
)
(154,476
)
(1,345
)
-0.8
%
(13,299
)
-8.6
%
1,627,362
1,605,786
1,646,241
21,576
1.3
%
(18,879
)
-1.1
%
$
18,570,313
$
18,446,713
$
18,507,293
$
123,600
0.7
%
$
63,020
0.3
%
$
7,747,480
$
7,682,684
$
7,787,639
$
64,796
0.8
%
$
(40,159
)
-0.5
%
976,664
989,689
1,006,668
(13,025
)
-1.3
%
(30,004
)
-3.0
%
3,439,180
3,313,420
3,393,216
125,760
3.8
%
45,964
1.4
%
12,163,324
11,985,793
12,187,523
177,531
1.5
%
(24,199
)
-0.2
%
419,802
416,104
375,559
3,698
0.9
%
44,243
11.8
%
283,629
431,861
339,417
(148,232
)
-34.3
%
(55,788
)
-16.4
%
123,831
123,779
123,611
52
0.0
%
220
0.2
%
61,856
61,856
61,856
—
0.0
%
—
0.0
%
13,052,442
13,019,393
13,087,966
33,049
0.3
%
(35,524
)
-0.3
%
3,194,587
3,171,796
3,221,516
22,791
0.7
%
(26,929
)
-0.8
%
232,911
214,315
274,563
18,596
8.7
%
(41,652
)
-15.2
%
16,479,940
16,405,504
16,584,045
74,436
0.5
%
(104,105
)
-0.6
%
2,090,373
2,041,209
1,923,248
49,164
2.4
%
167,125
8.7
%
$
18,570,313
$
18,446,713
$
18,507,293
$
123,600
0.7
%
$
63,020
0.3
%
See Notes to Consolidated Financials
$
732,826
$
634,402
$
805,436
$
98,424
15.5
%
$
(72,610
)
-9.0
%
—
—
10,000
—
n/m
(10,000
)
n/m
1,814,245
1,782,092
1,725,795
32,153
1.8
%
88,450
5.1
%
1,268,459
1,290,572
1,358,358
(22,113
)
-1.7
%
(89,899
)
-6.6
%
228,141
219,649
216,454
8,492
3.9
%
11,687
5.4
%
13,548,156
13,464,780
13,100,111
83,376
0.6
%
448,045
3.4
%
(165,242
)
(168,237
)
(157,929
)
2,995
1.8
%
(7,313
)
-4.6
%
13,382,914
13,296,543
12,942,182
86,371
0.6
%
440,732
3.4
%
227,805
228,964
236,151
(1,159
)
-0.5
%
(8,346
)
-3.5
%
131,676
132,702
125,853
(1,026
)
-0.8
%
5,823
4.6
%
334,605
334,605
334,605
—
0.0
%
—
0.0
%
8,325
8,972
3,920
(647
)
-7.2
%
4,405
n/m
33,012
34,016
36,034
(1,004
)
-3.0
%
(3,022
)
-8.4
%
639,502
653,142
685,584
(13,640
)
-2.1
%
(46,082
)
-6.7
%
$
18,801,510
$
18,615,659
$
18,480,372
$
185,851
1.0
%
$
321,138
1.7
%
$
3,321,132
$
3,135,435
$
3,142,792
$
185,697
5.9
%
$
178,340
5.7
%
12,309,842
11,980,426
12,098,143
329,416
2.7
%
211,699
1.7
%
15,630,974
15,115,861
15,240,935
515,113
3.4
%
390,039
2.6
%
420,000
456,326
365,643
(36,326
)
-8.0
%
54,357
14.9
%
208,366
558,654
443,458
(350,288
)
-62.7
%
(235,092
)
-53.0
%
123,867
123,812
123,647
55
0.0
%
220
0.2
%
61,856
61,856
61,856
—
0.0
%
—
0.0
%
26,186
25,891
28,890
295
1.1
%
(2,704
)
-9.4
%
37,100
38,091
39,689
(991
)
-2.6
%
(2,589
)
-6.5
%
178,893
164,379
196,158
14,514
8.8
%
(17,265
)
-8.8
%
16,687,242
16,544,870
16,500,276
142,372
0.9
%
186,966
1.1
%
12,528
12,585
12,753
(57
)
-0.5
%
(225
)
-1.8
%
123,435
133,195
163,156
(9,760
)
-7.3
%
(39,721
)
-24.3
%
1,997,685
1,955,498
1,833,232
42,187
2.2
%
164,453
9.0
%
(19,380
)
(30,489
)
(29,045
)
11,109
36.4
%
9,665
33.3
%
2,114,268
2,070,789
1,980,096
43,479
2.1
%
134,172
6.8
%
$
18,801,510
$
18,615,659
$
18,480,372
$
185,851
1.0
%
$
321,138
1.7
%
See Notes to Consolidated Financials
$
214,636
$
209,077
$
220,433
$
5,559
2.7
%
$
(5,797
)
-2.6
%
26,625
26,269
26,162
356
1.4
%
463
1.8
%
—
—
—
—
n/m
—
n/m
4,233
4,734
8,302
(501
)
-10.6
%
(4,069
)
-49.0
%
245,494
240,080
254,897
5,414
2.3
%
(9,403
)
-3.7
%
71,065
68,177
86,043
2,888
4.2
%
(14,978
)
-17.4
%
4,626
4,513
4,864
113
2.5
%
(238
)
-4.9
%
4,585
5,982
5,971
(1,397
)
-23.4
%
(1,386
)
-23.2
%
80,276
78,672
96,878
1,604
2.0
%
(16,602
)
-17.1
%
165,218
161,408
158,019
3,810
2.4
%
7,199
4.6
%
1,390
5,346
7,923
(3,956
)
-74.0
%
(6,533
)
-82.5
%
295
(670
)
(1,375
)
965
n/m
1,670
n/m
—
—
—
—
n/m
—
n/m
163,533
156,732
151,471
6,801
4.3
%
12,062
8.0
%
11,251
10,585
11,272
666
6.3
%
(21
)
-0.2
%
8,318
8,754
7,931
(436
)
-5.0
%
387
4.9
%
8,182
8,602
6,119
(420
)
-4.9
%
2,063
33.7
%
9,798
9,638
9,288
160
1.7
%
510
5.5
%
2,382
2,311
2,952
71
3.1
%
(570
)
-19.3
%
—
—
—
—
n/m
—
n/m
39,931
39,890
37,562
41
0.1
%
2,369
6.3
%
71,508
68,298
66,691
3,210
4.7
%
4,817
7.2
%
28,777
26,998
25,724
1,779
6.6
%
3,053
11.9
%
7,774
7,507
7,398
267
3.6
%
376
5.1
%
6,410
6,206
6,141
204
3.3
%
269
4.4
%
16,464
16,105
17,316
359
2.2
%
(852
)
-4.9
%
130,933
125,114
123,270
5,819
4.7
%
7,663
6.2
%
72,531
71,508
65,763
1,023
1.4
%
6,768
10.3
%
2,777
2,652
3,305
125
4.7
%
(528
)
-16.0
%
69,754
68,856
62,458
898
1.3
%
7,296
11.7
%
12,967
13,015
11,128
(48
)
-0.4
%
1,839
16.5
%
56,787
55,841
51,330
946
1.7
%
5,457
10.6
%
—
—
—
—
n/m
—
n/m
—
—
—
—
n/m
—
n/m
—
—
—
—
n/m
—
n/m
$
56,787
$
55,841
$
51,330
$
946
1.7
%
$
5,457
10.6
%
$
0.94
$
0.92
$
0.84
$
0.02
2.2
%
$
0.10
11.9
%
$
—
$
—
$
—
$
—
n/m
$
—
n/m
$
0.94
$
0.92
$
0.84
$
0.02
2.2
%
$
0.10
11.9
%
$
0.94
$
0.92
$
0.84
$
0.02
2.2
%
$
0.10
11.9
%
$
—
$
—
$
—
$
—
n/m
$
—
n/m
$
0.94
$
0.92
$
0.84
$
0.02
2.2
%
$
0.10
11.9
%
$
0.24
$
0.24
$
0.23
$
—
0.0
%
$
0.01
4.3
%
60,299,193
60,462,578
61,206,599
60,540,158
60,693,515
61,448,410
60,126,376
60,401,684
61,206,606
See Notes to Consolidated Financials
$
3,475
$
8,422
$
25,835
$
(4,947
)
-58.7
%
$
(22,360
)
-86.5
%
460
437
111
23
5.3
%
349
n/m
62,502
54,015
31,536
8,487
15.7
%
30,966
98.2
%
2,293
2,232
3,180
61
2.7
%
(887
)
-27.9
%
15,225
15,894
13,163
(669
)
-4.2
%
2,062
15.7
%
83,955
81,000
73,825
2,955
3.6
%
10,130
13.7
%
656
772
170
(116
)
-15.0
%
486
n/m
5,843
4,860
1,772
983
20.2
%
4,071
n/m
927
1,079
—
(152
)
-14.1
%
927
n/m
899
2,261
1,978
(1,362
)
-60.2
%
(1,079
)
-54.6
%
8,325
8,972
3,920
(647
)
-7.2
%
4,405
n/m
$
92,280
$
89,972
$
77,745
$
2,308
2.6
%
$
14,535
18.7
%
$
4,853
$
3,854
$
5,352
$
999
25.9
%
$
(499
)
-9.3
%
$
77,859
$
75,564
$
63,703
$
2,295
3.0
%
$
14,156
22.2
%
$
168,237
$
167,010
$
154,685
$
1,227
0.7
%
$
13,552
8.8
%
1,390
5,346
7,923
(3,956
)
-74.0
%
(6,533
)
-82.5
%
—
—
—
—
n/m
—
n/m
—
—
—
—
n/m
—
n/m
(6,775
)
(6,380
)
(7,142
)
(395
)
-6.2
%
367
5.1
%
2,390
2,261
2,463
129
5.7
%
(73
)
-3.0
%
(4,385
)
(4,119
)
(4,679
)
(266
)
-6.5
%
294
6.3
%
$
165,242
$
168,237
$
157,929
$
(2,995
)
-1.8
%
$
7,313
4.6
%
$
(3,069
)
$
(2,331
)
$
(3,098
)
$
(738
)
-31.7
%
$
29
0.9
%
2
151
595
(149
)
-98.7
%
(593
)
-99.7
%
(1,520
)
(1,647
)
(1,881
)
127
7.7
%
361
19.2
%
(182
)
(258
)
(296
)
76
29.5
%
114
38.5
%
384
(34
)
1
418
n/m
383
n/m
$
(4,385
)
$
(4,119
)
$
(4,679
)
$
(266
)
-6.5
%
$
294
6.3
%
See Notes to Consolidated Financials
$
1,740,647
$
1,745,924
$
1,726,291
$
1,708,226
$
1,658,999
$
1,737,673
$
1,817,036
1,279,020
1,303,195
1,325,185
1,346,141
1,368,943
1,302,298
1,402,764
—
—
—
—
—
—
150
3,019,667
3,049,119
3,051,476
3,054,367
3,027,942
3,039,971
3,219,950
13,702,038
13,543,505
13,320,276
13,275,762
13,379,658
13,523,338
13,286,538
389,021
414,733
365,505
422,083
607,928
389,839
590,727
17,110,726
17,007,357
16,737,257
16,752,212
17,015,528
16,953,148
17,097,215
(167,775
)
(166,430
)
(159,893
)
(157,659
)
(154,476
)
(164,728
)
(145,510
)
1,627,362
1,605,786
1,624,581
1,627,890
1,646,241
1,619,253
1,705,473
$
18,570,313
$
18,446,713
$
18,201,945
$
18,222,443
$
18,507,293
$
18,407,673
$
18,657,178
$
7,747,480
$
7,682,684
$
7,789,239
$
7,789,318
$
7,787,639
$
7,739,648
$
7,855,012
976,664
989,689
993,232
983,292
1,006,668
986,468
1,027,481
3,439,180
3,313,420
3,160,134
3,265,358
3,393,216
3,305,267
3,353,766
12,163,324
11,985,793
11,942,605
12,037,968
12,187,523
12,031,383
12,236,259
419,802
416,104
405,189
357,798
375,559
413,752
412,679
283,629
431,861
344,040
218,244
339,417
352,955
445,354
123,831
123,779
123,721
123,666
123,611
123,777
123,556
61,856
61,856
61,856
61,856
61,856
61,856
61,856
13,052,442
13,019,393
12,877,411
12,799,532
13,087,966
12,983,723
13,279,704
3,194,587
3,171,796
3,055,333
3,192,358
3,221,516
3,141,082
3,175,371
232,911
214,315
277,647
257,990
274,563
241,461
425,812
16,479,940
16,405,504
16,210,391
16,249,880
16,584,045
16,366,266
16,880,887
2,090,373
2,041,209
1,991,554
1,972,563
1,923,248
2,041,407
1,776,291
$
18,570,313
$
18,446,713
$
18,201,945
$
18,222,443
$
18,507,293
$
18,407,673
$
18,657,178
See Notes to Consolidated Financials
$
732,826
$
634,402
$
587,362
$
567,251
$
805,436
—
—
—
—
10,000
1,814,245
1,782,092
1,737,462
1,692,534
1,725,795
1,268,459
1,290,572
1,315,053
1,335,385
1,358,358
228,141
219,649
188,689
200,307
216,454
13,548,156
13,464,780
13,241,469
13,089,942
13,100,111
(165,242
)
(168,237
)
(167,010
)
(160,270
)
(157,929
)
13,382,914
13,296,543
13,074,459
12,929,672
12,942,182
227,805
228,964
231,202
235,410
236,151
131,676
132,702
134,395
139,317
125,853
334,605
334,605
334,605
334,605
334,605
8,325
8,972
8,348
5,917
3,920
33,012
34,016
33,861
34,668
36,034
639,502
653,142
650,767
677,356
685,584
$
18,801,510
$
18,615,659
$
18,296,203
$
18,152,422
$
18,480,372
$
3,321,132
$
3,135,435
$
3,069,929
$
3,073,565
$
3,142,792
12,309,842
11,980,426
12,010,775
12,034,610
12,098,143
15,630,974
15,115,861
15,080,704
15,108,175
15,240,935
420,000
456,326
360,080
324,008
365,643
208,366
558,654
404,815
301,541
443,458
123,867
123,812
123,757
123,702
123,647
61,856
61,856
61,856
61,856
61,856
26,186
25,891
26,561
29,392
28,890
37,100
38,091
37,917
38,698
39,689
178,893
164,379
179,286
202,723
196,158
16,687,242
16,544,870
16,274,976
16,190,095
16,500,276
12,528
12,585
12,651
12,711
12,753
123,435
133,195
143,001
157,899
163,156
1,997,685
1,955,498
1,914,277
1,875,376
1,833,232
(19,380
(30,489
(48,702
(83,659
(29,045
2,114,268
2,070,789
2,021,227
1,962,327
1,980,096
$
18,801,510
$
18,615,659
$
18,296,203
$
18,152,422
$
18,480,372
See Notes to Consolidated Financials
$
214,636
$
209,077
$
201,929
$
211,019
$
220,433
$
625,642
$
646,288
26,625
26,269
26,056
26,196
26,162
78,950
59,725
—
—
—
—
—
—
5
4,233
4,734
3,846
5,128
8,302
12,813
24,539
245,494
240,080
231,831
242,343
254,897
717,405
730,557
71,065
68,177
67,718
75,941
86,043
206,960
253,440
4,626
4,513
4,298
4,036
4,864
13,437
16,118
4,585
5,982
5,076
3,922
5,971
15,643
22,452
80,276
78,672
77,092
83,899
96,878
236,040
292,010
165,218
161,408
154,739
158,444
158,019
481,365
438,547
1,390
5,346
8,125
6,960
7,923
14,861
30,327
295
(670
)
(2,831
)
502
(1,375
)
(3,206
)
(5,167
)
—
—
—
—
—
—
8,633
163,533
156,732
149,445
150,982
151,471
469,710
404,754
11,251
10,585
10,636
11,228
11,272
32,472
33,154
8,318
8,754
7,664
8,717
7,931
24,736
24,584
8,182
8,602
8,771
7,388
6,119
25,555
19,238
9,798
9,638
9,543
9,319
9,288
28,979
27,932
2,382
2,311
5,970
4,298
2,952
10,663
13,515
—
—
—
—
—
—
(182,792
)
39,931
39,890
42,584
40,950
37,562
122,405
(64,369
)
71,508
68,298
68,492
69,223
66,691
208,298
197,016
28,777
26,998
26,247
26,692
25,724
82,022
74,898
7,774
7,507
7,385
7,195
7,398
22,666
21,933
6,410
6,206
6,308
6,208
6,141
18,924
18,707
16,464
16,105
15,579
15,112
17,316
48,148
48,706
130,933
125,114
124,011
124,430
123,270
380,058
361,260
72,531
71,508
68,018
67,502
65,763
212,057
(20,875
)
2,777
2,652
2,684
2,596
3,305
8,113
9,974
69,754
68,856
65,334
64,906
62,458
203,944
(30,849
)
12,967
13,015
11,701
8,594
11,128
37,683
(19,747
)
56,787
55,841
53,633
56,312
51,330
166,261
(11,102
)
—
—
—
—
—
—
237,152
—
—
—
—
—
—
59,353
—
—
—
—
—
—
177,799
$
56,787
$
55,841
$
53,633
$
56,312
$
51,330
$
166,261
$
166,697
$
0.94
$
0.92
$
0.88
$
0.92
$
0.84
$
2.75
$
(0.18
)
$
—
$
—
$
—
$
—
$
—
$
—
$
2.91
$
0.94
$
0.92
$
0.88
$
0.92
$
0.84
$
2.75
$
2.72
$
0.94
$
0.92
$
0.88
$
0.92
$
0.84
$
2.74
$
(0.18
)
$
—
$
—
$
—
$
—
$
—
$
—
$
2.90
$
0.94
$
0.92
$
0.88
$
0.92
$
0.84
$
2.74
$
2.72
$
0.24
$
0.24
$
0.24
$
0.23
$
0.23
$
0.72
$
0.69
60,299,193
60,462,578
60,799,984
61,101,954
61,206,599
60,518,751
61,177,388
60,540,158
60,693,515
61,049,120
61,367,825
61,448,410
60,747,974
61,393,179
60,126,376
60,401,684
60,718,411
61,008,023
61,206,606
60,126,376
61,206,606
See Notes to Consolidated Financials
$
3,475
$
8,422
$
18,633
$
18,601
$
25,835
460
437
391
305
111
62,502
54,015
49,107
42,203
31,536
2,293
2,232
2,339
2,431
3,180
15,225
15,894
16,150
16,569
13,163
83,955
81,000
86,620
80,109
73,825
656
772
271
170
170
5,843
4,860
4,837
2,407
1,772
927
1,079
979
1,079
—
899
2,261
2,261
2,261
1,978
8,325
8,972
8,348
5,917
3,920
$
92,280
$
89,972
$
94,968
$
86,026
$
77,745
$
4,853
$
3,854
$
4,355
$
4,092
$
5,352
$
77,859
$
75,564
$
71,720
$
71,255
$
63,703
$
168,237
$
167,010
$
160,270
$
157,929
$
154,685
$
160,270
$
139,367
1,390
5,346
8,125
6,960
7,923
14,861
30,327
—
—
—
—
—
—
8,633
—
—
—
—
—
—
(8,633
)
(6,775
)
(6,380
)
(3,701
)
(7,730
)
(7,142
)
(16,856
)
(18,586
)
2,390
2,261
2,316
3,111
2,463
6,967
6,821
(4,385
)
(4,119
)
(1,385
)
(4,619
)
(4,679
)
(9,889
)
(20,398
)
$
165,242
$
168,237
$
167,010
$
160,270
$
157,929
$
165,242
$
157,929
$
(3,069
)
$
(2,331
)
$
(207
)
$
(3,608
)
$
(3,098
)
$
(5,607
)
$
(3,380
)
2
151
(17
)
8
595
136
876
(1,520
)
(1,647
)
(755
)
(1,319
)
(1,881
)
(3,922
)
(12,482
)
(182
)
(258
)
(301
)
(208
)
(296
)
(741
)
(597
)
384
(34
)
(105
)
508
1
245
(4,815
)
$
(4,385
)
$
(4,119
)
$
(1,385
)
$
(4,619
)
$
(4,679
)
$
(9,889
)
$
(20,398
)
See Notes to Consolidated Financials
10.78
%
10.97
%
10.92
%
11.36
%
10.62
%
10.89
%
-0.83
%
n/a
n/a
n/a
n/a
n/a
n/a
9.40
%
10.78
%
10.97
%
10.92
%
11.36
%
10.62
%
10.89
%
12.54
%
12.84
%
13.13
%
13.13
%
13.68
%
12.86
%
13.03
%
-1.02
%
n/a
n/a
n/a
n/a
n/a
n/a
11.49
%
12.84
%
13.13
%
13.13
%
13.68
%
12.86
%
13.03
%
15.79
%
1.21
%
1.21
%
1.19
%
1.23
%
1.10
%
1.21
%
-0.08
%
n/a
n/a
n/a
n/a
n/a
n/a
0.93
%
1.21
%
1.21
%
1.19
%
1.23
%
1.10
%
1.21
%
1.19
%
5.69
%
5.66
%
5.62
%
5.76
%
5.96
%
5.66
%
5.71
%
1.86
%
1.86
%
1.87
%
1.99
%
2.27
%
1.86
%
2.28
%
3.83
%
3.81
%
3.75
%
3.76
%
3.69
%
3.80
%
3.43
%
61.98
%
61.24
%
61.77
%
61.77
%
60.99
%
61.67
%
63.79
%
2,539
2,510
2,506
2,500
2,500
0.13
%
0.12
%
0.04
%
0.14
%
0.14
%
0.10
%
0.12
%
0.04
%
0.16
%
0.25
%
0.21
%
0.24
%
0.15
%
0.30
%
0.61
%
0.59
%
0.64
%
0.60
%
0.55
%
0.67
%
0.66
%
0.71
%
0.65
%
0.58
%
0.67
%
0.66
%
0.71
%
0.65
%
0.58
%
1.22
%
1.25
%
1.26
%
1.22
%
1.21
%
1.00
%
1.07
%
1.11
%
1.10
%
1.08
%
1.95
%
1.83
%
1.76
%
1.62
%
1.64
%
196.82
%
207.70
%
192.81
%
200.06
%
213.92
%
239.69
%
272.20
%
296.41
%
341.20
%
497.27
%
11.25
%
11.12
%
11.05
%
10.81
%
10.71
%
9.64
%
9.50
%
9.39
%
9.13
%
9.07
%
11.66
%
11.41
%
11.23
%
10.86
%
10.97
%
10.26
%
10.15
%
10.11
%
9.99
%
9.65
%
11.88
%
11.70
%
11.63
%
11.54
%
11.30
%
12.27
%
12.09
%
12.03
%
11.94
%
11.70
%
14.33
%
14.15
%
14.10
%
13.97
%
13.71
%
$
39.60
$
36.46
$
34.49
$
35.37
$
31.82
$
35.16
$
34.28
$
33.29
$
32.17
$
32.35
$
29.60
$
28.74
$
27.78
$
26.68
$
26.88
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands)
(unaudited)
Note 1 - Significant Non-Routine Transactions
Trustmark completed the following significant non-routine transactions during the second quarter of 2024. The gains and losses described below are reflected in the nine months ended September 30, 2024 in the Consolidated Financial Information as well as the relevant tables in the Notes to Consolidated Financials:
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:
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities
$
208,269
$
215,679
$
212,463
$
202,669
$
202,638
U.S. Government agency obligations
70,535
65,800
49,325
38,807
19,335
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA
35,806
34,070
28,108
28,411
25,798
Issued by FNMA and FHLMC
1,126,931
1,109,203
1,090,137
1,070,538
1,105,310
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
372,704
357,340
357,429
352,109
372,714
Total securities available for sale
$
1,814,245
$
1,782,092
$
1,737,462
$
1,692,534
$
1,725,795
SECURITIES HELD TO MATURITY
U.S. Treasury securities
$
30,421
$
30,226
$
30,033
$
29,842
$
29,648
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA
14,353
14,750
15,726
16,218
17,773
Issued by FNMA and FHLMC
384,625
398,161
411,454
423,372
436,177
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
103,041
109,697
116,969
123,685
131,348
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA
736,019
737,738
740,871
742,268
743,412
Total securities held to maturity
$
1,268,459
$
1,290,572
$
1,315,053
$
1,335,385
$
1,358,358
At September 30, 2025, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $38.9 million.
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, direct obligations of government agencies and GSE-backed obligations. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands)
(unaudited)
Note 3 – Loan Composition
LHFI consisted of the following during the periods presented:
LHFI BY TYPE
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
Loans secured by real estate:
Construction, land development and
other land loans
$
1,241,827
$
1,355,223
$
1,321,631
$
1,417,148
$
1,588,256
Secured by 1-4 family residential properties
3,054,869
3,057,362
2,973,978
2,949,543
2,895,006
Secured by nonfarm, nonresidential properties
3,299,819
3,478,932
3,532,842
3,533,282
3,582,552
Other real estate secured
2,055,712
1,918,341
1,876,459
1,633,830
1,475,798
Commercial and industrial loans
1,903,606
1,832,295
1,765,893
1,840,722
1,767,079
Consumer loans
151,287
149,395
154,623
151,443
149,436
State and other political subdivision loans
1,028,396
961,251
974,300
969,836
996,002
Other loans and leases
812,640
711,981
641,743
594,138
645,982
LHFI
13,548,156
13,464,780
13,241,469
13,089,942
13,100,111
ACL LHFI
(165,242
)
(168,237
)
(167,010
)
(160,270
)
(157,929
)
Net LHFI
$
13,382,914
$
13,296,543
$
13,074,459
$
12,929,672
$
12,942,182
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:
September 30, 2025
LHFI - COMPOSITION BY REGION
Total
Alabama
Florida
Georgia
Mississippi
(Central and
Southern
Regions)
Tennessee
(Memphis,
TN and
Northern MS
Regions)
Texas
Loans secured by real estate:
Construction, land development and
other land loans
$
1,241,827
$
467,996
$
33,374
$
176,412
$
267,580
$
43,797
$
252,668
Secured by 1-4 family residential properties
3,054,869
161,973
63,336
—
2,694,293
91,077
44,190
Secured by nonfarm, nonresidential properties
3,299,819
829,676
170,171
60,878
1,508,949
127,852
602,293
Other real estate secured
2,055,712
907,895
1,652
171,482
617,269
5,388
352,026
Commercial and industrial loans
1,903,606
457,368
18,234
327,697
699,709
131,245
269,353
Consumer loans
151,287
21,926
7,161
—
90,165
14,749
17,286
State and other political subdivision loans
1,028,396
48,096
65,965
9,135
785,311
24,232
95,657
Other loans and leases
812,640
24,849
3,559
403,541
270,581
64,151
45,959
Loans
$
13,548,156
$
2,919,779
$
363,452
$
1,149,145
$
6,933,857
$
502,491
$
1,679,432
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots
$
65,262
24,678
$
7,167
$
—
$
14,822
$
1,937
$
16,658
Development
96,504
44,542
264
—
17,716
13,177
20,805
Unimproved land
92,054
17,593
6,647
—
31,100
9,007
27,707
1-4 family construction
309,681
162,118
8,710
15,666
66,320
19,338
37,529
Other construction
678,326
219,065
10,586
160,746
137,622
338
149,969
Construction, land development and
other land loans
$
1,241,827
$
467,996
$
33,374
$
176,412
$
267,580
$
43,797
$
252,668
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands)
(unaudited)
Note 3 – Loan Composition (continued)
September 30, 2025
Total
Alabama
Florida
Georgia
Mississippi
(Central and
Southern
Regions)
Tennessee
(Memphis,
TN and
Northern MS
Regions)
Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail
$
262,194
$
89,046
$
13,612
$
—
$
74,590
$
19,438
$
65,508
Office
228,449
81,832
17,712
—
88,232
2,753
37,920
Hotel/motel
251,904
124,303
36,998
—
68,057
22,546
—
Mini-storage
166,633
38,708
1,347
39,316
86,224
581
457
Industrial
464,272
88,495
16,616
21,562
208,035
2,463
127,101
Health care
147,697
122,393
660
—
22,284
316
2,044
Convenience stores
20,326
2,076
379
—
11,758
172
5,941
Nursing homes/senior living
282,668
42,880
—
—
144,164
3,638
91,986
Other
93,765
25,378
7,491
—
44,736
7,117
9,043
Total non-owner occupied loans
1,917,908
615,111
94,815
60,878
748,080
59,024
340,000
Owner-occupied:
Office
146,481
47,026
30,979
—
42,355
7,839
18,282
Churches
47,981
10,425
4,016
—
25,940
2,783
4,817
Industrial warehouses
216,119
14,724
7,098
—
65,780
10,885
117,632
Health care
120,961
10,911
8,877
—
91,786
2,135
7,252
Convenience stores
111,386
7,945
2,022
—
57,987
—
43,432
Retail
75,275
7,541
13,021
—
41,246
6,686
6,781
Restaurants
64,616
2,567
2,301
—
29,317
24,266
6,165
Auto dealerships
37,196
3,143
152
—
19,918
13,983
—
Nursing homes/senior living
452,696
93,829
—
—
333,028
—
25,839
Other
109,200
16,454
6,890
—
53,512
251
32,093
Total owner-occupied loans
1,381,911
214,565
75,356
—
760,869
68,828
262,293
Loans secured by nonfarm, nonresidential properties
$
3,299,819
$
829,676
$
170,171
$
60,878
$
1,508,949
$
127,852
$
602,293
Note 4 – 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
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Securities – taxable
3.50
%
3.46
%
3.46
%
3.41
%
3.44
%
3.47
%
2.48
%
Securities – nontaxable
—
—
—
—
—
—
4.45
%
Securities – total
3.50
%
3.46
%
3.46
%
3.41
%
3.44
%
3.47
%
2.48
%
LHFI & LHFS
6.21
%
6.19
%
6.15
%
6.32
%
6.55
%
6.19
%
6.50
%
Other earning assets
4.32
%
4.58
%
4.27
%
4.83
%
5.43
%
4.39
%
5.55
%
Total earning assets
5.69
%
5.66
%
5.62
%
5.76
%
5.96
%
5.66
%
5.71
%
Interest-bearing deposits
2.32
%
2.28
%
2.30
%
2.51
%
2.81
%
2.30
%
2.77
%
Fed funds purchased & repurchases
4.37
%
4.35
%
4.30
%
4.49
%
5.15
%
4.34
%
5.22
%
Other borrowings
3.88
%
3.89
%
3.89
%
3.86
%
4.53
%
3.88
%
4.75
%
Total interest-bearing liabilities
2.44
%
2.42
%
2.43
%
2.61
%
2.94
%
2.43
%
2.94
%
Total Deposits
1.84
%
1.80
%
1.83
%
1.98
%
2.22
%
1.82
%
2.20
%
Net interest margin
3.83
%
3.81
%
3.75
%
3.76
%
3.69
%
3.80
%
3.43
%
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands)
(unaudited)
Note 4 – Yields on Earning Assets and Costs of Interest-Bearing Liabilities (continued)
The net interest margin increased two basis points when compared to the second quarter of 2025, totaling 3.83% for the third quarter of 2025, primarily due to increases in the yields for the loans held for investment and held for sale and the securities portfolios partially offset by the increase in the cost of interest-bearing deposits.
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 $858 thousand during the third quarter of 2025.
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Mortgage servicing income, net
$
7,251
$
7,142
$
7,161
$
7,161
$
7,127
$
21,554
$
21,054
Change in fair value-MSR from runoff
(3,441
)
(3,596
)
(2,062
)
(3,118
)
(3,154
)
(9,099
)
(8,527
)
Gain on sales of loans, net
5,230
5,597
4,253
4,470
4,648
15,080
14,808
Mortgage banking income before hedge
ineffectiveness
9,040
9,143
9,352
8,513
8,621
27,535
27,335
Change in fair value-MSR from market changes
(1,521
)
(1,946
)
(5,928
)
12,710
(10,406
)
(9,395
)
(6,909
)
Change in fair value of derivatives
663
1,405
5,347
(13,835
)
7,904
7,415
(1,188
)
Net positive (negative) hedge ineffectiveness
(858
)
(541
)
(581
)
(1,125
)
(2,502
)
(1,980
)
(8,097
)
Mortgage banking, net
$
8,182
$
8,602
$
8,771
$
7,388
$
6,119
$
25,555
$
19,238
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands)
(unaudited)
Note 6 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the periods presented:
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Partnership amortization for tax credit purposes
$
(2,385
)
$
(2,137
)
$
(2,124
)
$
(1,992
)
$
(1,977
)
$
(6,646
)
$
(5,635
)
Increase in life insurance cash surrender value
1,945
1,911
1,867
1,891
1,883
5,723
5,587
Loss on sale of 1-4 family mortgage loans
—
—
—
—
—
—
(4,798
)
Visa C shares fair value adjustment
—
—
—
—
—
—
8,056
Other miscellaneous income
2,822
2,537
6,227
4,399
3,046
11,586
10,305
Total other, net
$
2,382
$
2,311
$
5,970
$
4,298
$
2,952
$
10,663
$
13,515
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
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Loan expense
$
3,287
$
3,377
$
2,792
$
2,921
$
2,824
$
9,456
$
8,659
Amortization of intangibles
31
32
31
27
28
94
83
FDIC assessment expense
3,935
4,064
4,160
4,815
5,071
12,159
14,396
Other real estate expense, net
1,932
159
452
(286
)
2,452
2,543
3,450
Other miscellaneous expense
7,279
8,473
8,144
7,635
6,941
23,896
22,118
Total other expense
$
16,464
$
16,105
$
15,579
$
15,112
$
17,316
$
48,148
$
48,706
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
September 30, 2025
($ in thousands except per share data)
(unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity
$
2,090,373
$
2,041,209
$
1,991,554
$
1,972,563
$
1,923,248
$
2,041,407
$
1,776,291
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(49
)
(80
)
(113
)
(141
)
(168
)
(80
)
(196
)
Total average tangible equity
$
1,755,719
$
1,706,524
$
1,656,836
$
1,637,817
$
1,588,475
$
1,706,722
$
1,441,490
PERIOD END BALANCES
Total shareholders' equity
$
2,114,268
$
2,070,789
$
2,021,227
$
1,962,327
$
1,980,096
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(32
)
(63
)
(95
)
(126
)
(153
)
Total tangible equity
(a)
$
1,779,631
$
1,736,121
$
1,686,527
$
1,627,596
$
1,645,338
TANGIBLE ASSETS
Total assets
$
18,801,510
$
18,615,659
$
18,296,203
$
18,152,422
$
18,480,372
Less: Goodwill
(334,605
)
(334,605
)
(334,605
)
(334,605
)
(334,605
)
Identifiable intangible assets
(32
)
(63
)
(95
)
(126
)
(153
)
Total tangible assets
(b)
$
18,466,873
$
18,280,991
$
17,961,503
$
17,817,691
$
18,145,614
Risk-weighted assets
(c)
$
15,262,807
$
15,215,021
$
15,024,476
$
14,990,258
$
15,004,024
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing operations
$
56,787
$
55,841
$
53,633
$
56,312
$
51,330
$
166,261
$
(11,102
)
Plus: Intangible amortization net of tax
from continuing operations
24
24
24
20
21
72
61
Net income (loss) adjusted for
intangible amortization
$
56,811
$
55,865
$
53,657
$
56,332
$
51,351
$
166,333
$
(11,041
)
Period end common shares outstanding
(d)
60,126,376
60,401,684
60,718,411
61,008,023
61,206,606
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity from
continuing operations (1)
12.84
%
13.13
%
13.13
%
13.68
%
12.86
%
13.03
%
-1.02
%
Tangible equity/tangible assets
(a)/(b)
9.64
%
9.50
%
9.39
%
9.13
%
9.07
%
Tangible equity/risk-weighted assets
(a)/(c)
11.66
%
11.41
%
11.23
%
10.86
%
10.97
%
Tangible book value
(a)/(d)*1,000
$
29.60
$
28.74
$
27.78
$
26.68
$
26.88
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity
$
2,114,268
$
2,070,789
$
2,021,227
$
1,962,327
$
1,980,096
CECL transition adjustment
—
—
—
6,500
6,500
AOCI-related adjustments
19,380
30,489
48,702
83,659
29,045
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)
(320,754
)
(320,755
)
(320,756
)
(320,756
)
(320,757
)
Other adjustments and deductions
for CET1 (2)
(111
)
(955
)
(2,175
)
(2,058
)
(115
)
CET1 capital
(e)
1,812,783
1,779,568
1,746,998
1,729,672
1,694,769
Additional tier 1 capital instruments
plus related surplus
60,000
60,000
60,000
60,000
60,000
Tier 1 capital
$
1,872,783
$
1,839,568
$
1,806,998
$
1,789,672
$
1,754,769
Common equity tier 1 capital ratio
(e)/(c)
11.88
%
11.70
%
11.63
%
11.54
%
11.30
%
(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
September 30, 2025
($ in thousands)
(unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.
The following table presents pre-provision net revenue (PPNR) during the periods presented:
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Net interest income (GAAP)
(a)
$
162,441
$
158,756
$
152,055
$
155,848
$
154,714
$
473,252
$
428,573
Noninterest income (loss) (GAAP)
39,931
39,890
42,584
40,950
37,562
122,405
(64,369
)
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)
$
39,931
$
39,890
$
42,584
$
40,950
$
37,562
$
122,405
$
115,165
Adjusted pre-provision revenue
(a)+(b)=(c)
$
202,372
$
198,646
$
194,639
$
196,798
$
192,276
$
595,657
$
543,738
Noninterest expense (GAAP)
(d)
130,933
125,114
124,011
124,430
123,270
380,058
361,260
PPNR (Non-GAAP)
(c)-(d)
$
71,439
$
73,532
$
70,628
$
72,368
$
69,006
$
215,599
$
182,478
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands except per share data)
(unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
The following table presents adjustments to net income (loss) from continuing operations and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Net income (loss) (GAAP) from continuing operations
$
56,787
$
55,841
$
53,633
$
56,312
$
51,330
$
166,261
$
(11,102
)
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)
$
56,787
$
55,841
$
53,633
$
56,312
$
51,330
$
166,261
$
130,023
Diluted EPS from adjusted continuing operations
$
0.94
$
0.92
$
0.88
$
0.92
$
0.84
$
2.74
$
2.12
FINANCIAL RATIOS - REPORTED (GAAP)
Return on average equity from continuing operations
10.78
%
10.97
%
10.92
%
11.36
%
10.62
%
10.89
%
-0.83
%
Return on average tangible equity from
continuing operations
12.84
%
13.13
%
13.13
%
13.68
%
12.86
%
13.03
%
-1.02
%
Return on average assets from continuing operations
1.21
%
1.21
%
1.19
%
1.23
%
1.10
%
1.21
%
-0.08
%
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
9.40
%
Return on average tangible equity from adjusted
continuing operations
n/a
n/a
n/a
n/a
n/a
n/a
11.49
%
Return on average assets from adjusted
continuing operations
n/a
n/a
n/a
n/a
n/a
n/a
0.93
%
n/a - not applicable
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2025
($ in thousands)
(unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Total noninterest expense (GAAP)
$
130,933
$
125,114
$
124,011
$
124,430
$
123,270
$
380,058
$
361,260
Less:
Other real estate expense, net
(1,932
)
(159
)
(452
)
286
(2,452
)
(2,543
)
(3,450
)
Amortization of intangibles
(31
)
(32
)
(31
)
(27
)
(28
)
(94
)
(83
)
Charitable contributions resulting in
state tax credits
(334
)
(334
)
(334
)
(300
)
(300
)
(1,002
)
(900
)
Adjusted noninterest expense (Non-GAAP)
(a)
$
128,636
$
124,589
$
123,194
$
124,389
$
120,490
$
376,419
$
356,827
Net interest income (GAAP)
$
162,441
$
158,756
$
152,055
$
155,848
$
154,714
$
473,252
$
428,573
Add:
Tax equivalent adjustment
2,777
2,652
2,684
2,596
3,305
8,113
9,974
Net interest income-FTE (Non-GAAP)
(b)
$
165,218
$
161,408
$
154,739
$
158,444
$
158,019
$
481,365
$
438,547
Noninterest income (loss) (GAAP)
$
39,931
$
39,890
$
42,584
$
40,950
$
37,562
$
122,405
$
(64,369
)
Add:
Partnership amortization for tax
credit purposes
2,385
2,137
2,124
1,992
1,977
6,646
5,635
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)
$
42,316
$
42,027
$
44,708
$
42,942
$
39,539
$
129,051
$
120,800
Adjusted revenue (Non-GAAP)
(b)+(c)
$
207,534
$
203,435
$
199,447
$
201,386
$
197,558
$
610,416
$
559,347
Efficiency ratio (Non-GAAP)
(a)/((b)+(c))
61.98
%
61.24
%
61.77
%
61.77
%
60.99
%
61.67
%
63.79
%