Performance Reflects Continued Loan and Deposit Growth, Stable Credit Quality, Expanded Revenue and Strong Profitability Metrics

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.

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Third Quarter Highlights

• Loans held for investment (HFI) expanded to $13.5 billion, reflecting diversified growth of 0.6% linked-quarter and 3.4% year-over-year
• Deposits expanded to $15.6 billion, up 3.4% linked-quarter and 2.6% year-over-year; noninterest-bearing deposits increased 5.9% linked-quarter and 5.7% year-over-year
• Total revenue grew to $202.4 million, an increase of 1.9% linked-quarter and 5.3% year-over-year
• Net interest income (FTE) expanded to $165.2 million, up 2.4% linked-quarter and 4.6% year-over-year; net interest margin rose to 3.83% in the third quarter
• Noninterest expense totaled $130.9 million, an increase of 4.7% linked-quarter and 6.2% year-over-year
• Provision for credit losses totaled $1.7 million, a decrease of $3.0 million linked-quarter

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 increased $83.4 million, or 0.6%, during the quarter and $448.0 million, or 3.4%, year-over-year
• Deposits increased $515.1 million, or 3.4%, during the quarter and $390.0 million, or 2.6%, year-over-year
• Maintained strong capital position with CET1 ratio of 11.88% and total risk-based capital ratio of 14.33%
• Repurchased $37.1 million, or approximately 1.0 million shares, of common stock during first nine months of 2025

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

• Net charge-offs totaled $4.4 million in the third quarter, including one charge-off on an individually analyzed loan totaling $3.1 million that was reserved for in prior periods; NCOs represented 0.13% of average loans
• Provision for credit losses was $1.7 million in the third quarter
• Allowance for credit losses (ACL) represented 1.22% of loans HFI and 239.69% of nonaccrual loans, excluding individually analyzed loans, at September 30, 2025

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

• Total revenue expanded to $202.4 million in the third quarter, an increase of 1.9% linked-quarter and 5.3% year-over-year
• Net interest income (FTE) totaled $165.2 million in the third quarter, up 2.4% linked-quarter and 4.6% year-over-year
• Noninterest income totaled $39.9 million in the third quarter, up 0.1% from the prior quarter and 6.3% year-over-year

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

• Total noninterest expense increased $5.8 million, or 4.7%, linked-quarter, including approximately $2.3 million in nonroutine items
• Salaries and employee benefits expense increased $3.2 million, or 4.7%, linked-quarter principally due to annual merit increases and annual incentive accruals
• Other real estate expense, net increased $1.8 million, which reflects the establishment of a $1.4 million reserve for a single property

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.