Trustmark Corporation Announces First Quarter 2024 Financial Results

Loan Growth Moderates, Credit Quality Remains Stable

Solid Growth in Fee Income and Disciplined Expense Management Reflected in Financial Results

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Trustmark Corporation Announces First Quarter 2024 Financial Results

JACKSON, Miss.--()--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $41.5 million in the first quarter of 2024, representing diluted earnings per share of $0.68. Trustmark’s performance during the first quarter produced a return on average tangible equity of 12.98% and a return on average assets of 0.89%. The Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2024, to shareholders of record on June 1, 2024.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/53946039/en

First Quarter Highlights

  • Loans held for investment increased 0.8% linked-quarter and represented 85.1% of total deposits at March 31, 2024
  • Credit quality remained solid
  • Revenue totaled $188.2 million, up 0.9% linked-quarter
  • Noninterest income increased 11.1% linked-quarter, reflecting seasonal increases and the strength of diversified business lines
  • Noninterest expense decreased 3.9% linked-quarter, reflecting on-going expense management priorities

Duane A. Dewey, President and CEO, stated, “We are off to a great start in 2024. Our first quarter results reflect continued loan growth, solid credit quality, and double-digit increases in noninterest income. In addition, we experienced a meaningful decrease in noninterest expense. These accomplishments are the results of our focused efforts to expand customer relationships and diligently manage expenses. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as our customers’ financial partner. We are well positioned to serve and expand our customer base and create long-term value for shareholders.”

Balance Sheet Management

  • Loans held for investment (HFI) increased $107.4 million, or 0.8%, during the quarter
  • Total deposits decreased $231.2 million, or 1.5%, during the quarter
  • Maintained strong capital position with CET1 ratio of 10.12% and total risk-based capital ratio of 12.42%

Loans HFI totaled $13.1 billion at March 31, 2024, reflecting an increase of $107.4 million, or 0.8%, linked-quarter and $560.7 million, or 4.5%, year-over-year. The linked-quarter growth reflected increases in commercial real estate and equipment finance loans offset in part by reductions in state and other political subdivision loans and consumer loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.3 billion at March 31, 2024, down $231.2 million, or 1.5%, from the prior quarter and up $554.9 million, or 3.8%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 85.1% of total deposits at March 31, 2024. Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 19.8% of total deposits at March 31, 2024. Interest-bearing deposit costs totaled 2.74% for the first quarter, an increase of 7 basis points linked-quarter, while the total cost of deposits was 2.18%, an increase of 8 basis points linked-quarter. The total cost of interest-bearing liabilities in the first quarter was 2.92%, up 3 basis points from the prior quarter.

During the first quarter, Trustmark did not repurchase any of its outstanding common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2024. At March 31, 2024, Trustmark’s tangible equity to tangible assets ratio was 7.20%, while the total risk-based capital ratio was 12.42%. Tangible book value per share was $21.18 at March 31, 2024, an increase of 1.5% from the prior quarter and 10.1% from the prior year.

Credit Quality

  • Net charge-offs totaled $4.1 million, representing 0.12% of average loans in the first quarter
  • Provision for credit losses for loans HFI was $7.7 million in the first quarter
  • Allowance for credit losses (ACL) represented 1.10% of loans HFI and 235.29% of nonaccrual loans, excluding individually analyzed loans at March 31, 2024

Nonaccrual loans totaled $98.4 million at March 31, 2024, down $1.7 million from the prior quarter and an increase of $26.0 million year-over-year. Other real estate totaled $7.6 million, reflecting increases of $753 thousand and $5.9 million from the prior quarter and prior year, respectively. Collectively, nonperforming assets totaled $106.0 million, representing 0.80% of loans HFI and held for sale (HFS) at March 31, 2024.

The provision for credit losses for loans HFI was $7.7 million in the first quarter and was primarily attributable to loan growth, changes in the macroeconomic forecast, and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was a negative $192 thousand in the first quarter. Collectively, the provision for credit losses totaled $7.5 million in the first quarter compared to $6.7 million in the prior quarter and $1.0 million in the first quarter of 2023.

Allocation of Trustmark’s $143.0 million ACL on loans HFI represented 0.93% of commercial loans and 1.63% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.10% at March 31, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

  • Net interest income (FTE) totaled $136.2 million in the first quarter, down 2.8% linked-quarter
  • Net interest margin totaled 3.21% in the first quarter, down 4 basis points from the prior quarter
  • Noninterest income increased 11.1% linked-quarter to total $55.3 million, reflecting growth in mortgage banking, insurance, other income, and wealth management revenue

Revenue in the first quarter totaled $188.2 million, an increase of 0.9% from the prior quarter and a decrease of 0.4% from the same quarter in the prior year. The linked-quarter increase primarily reflects higher noninterest income offset in part by lower net interest income while the year-over-year decrease is attributed to lower net interest income offset in part by growth in noninterest income.

Net interest income (FTE) in the first quarter totaled $136.2 million, resulting in a net interest margin of 3.21%, down 4 basis points from the prior quarter. The decrease in the net interest margin was primarily due to increased costs of interest-bearing liabilities.

Noninterest income in the first quarter totaled $55.3 million, an increase of $5.5 million, or 11.1%, from the prior quarter and $4.0 million, or 7.7%, year-over-year. The linked-quarter increases in mortgage banking, insurance, other income, and wealth management revenue were offset in part by declines in bank card and other fees and service charges on deposit accounts. The increase in noninterest income year-over-year is broad-based, reflecting increases in mortgage banking, insurance, other income, service charges of deposit accounts and wealth management revenue which were offset in part by declines in bank card and other fees.

Mortgage loan production in the first quarter totaled $274.0 million, up 0.8% from the prior quarter and down 24.1% year-over-year. Mortgage banking revenue totaled $8.9 million in the first quarter, an increase of $3.4 million linked-quarter and $1.3 million year-over-year. The linked-quarter increase was principally attributable to increased gain on sales of mortgage loans, improvement in net negative hedge ineffectiveness, and reduced servicing asset amortization. The year-over-year increase was principally due to increased gain on sales of mortgage loans.

Insurance revenue totaled $15.5 million in the first quarter, up $2.3 million, or 17.2%, from the prior quarter and $1.2 million, or 8.1%, year-over-year. The linked-quarter and year-over-year increases primarily reflected growth in commercial property and casualty commissions. Wealth management revenue in the first quarter totaled $9.0 million, an increase of $295 thousand, or 3.4%, from the prior quarter and $172 thousand, or 2.0%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year growth reflected increased brokerage revenue.

Other income, net totaled $3.6 million in the first quarter, up $1.1 million from both the prior quarter and year-over-year. Service charges on deposit accounts totaled $11.0 million in the first quarter, reflecting a seasonal decrease of $353 thousand, or 3.1%, from the prior quarter and an increase of $622 thousand, or 6.0%, year-over-year. Bank card and other fees totaled $7.4 million in the first quarter, down $1.1 million from the prior quarter due principally to lower customer derivative revenue. Year-over-year, bank card and other fees declined $375 thousand.

Noninterest Expense

  • Total noninterest expense declined $5.3 million, or 3.9%, linked-quarter
  • Salary and employee benefit expense declined $2.5 million, or 3.3%, linked-quarter
  • Total services and fees declined $3.1 million, or 11.0%, linked-quarter

Noninterest expense in the first quarter totaled $131.1 million, a decrease of $5.3 million, or 3.9%, from the prior quarter and an increase of $2.8 million, or 2.2%, year-over-year. Salary and employee benefit expense totaled $75.5 million in the first quarter, a decline of $2.5 million, or 3.3%, linked-quarter and an increase of $1.4 million, or 1.9%, year-over-year. The linked-quarter decline reflected reductions in incentives, severance, medical insurance, and salary expense, which were offset in part by a seasonal increase in payroll taxes and restricted stock compensation expense. Services and fees in the first quarter totaled $24.8 million, a decrease of $3.1 million, or 11.0%, from the prior quarter and $587 thousand, or 2.3%, year-over-year. The linked-quarter decline is attributable principally to lower professional fees and data processing software expense.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 24, 2024, 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, May 8, 2024, in archived format at the same web address or by calling (877) 344-7529, passcode 4820621.

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 and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands)
(unaudited)
Linked Quarter Year over Year
QUARTERLY AVERAGE BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change
Securities AFS-taxable

$

1,927,619

 

$

1,986,825

 

$

2,187,121

 

$

(59,206

)

-3.0

%

$

(259,502

)

-11.9

%

Securities AFS-nontaxable

 

 

 

4,246

 

 

4,812

 

 

(4,246

)

-100.0

%

 

(4,812

)

-100.0

%

Securities HTM-taxable

 

1,418,476

 

 

1,430,169

 

 

1,479,283

 

 

(11,693

)

-0.8

%

 

(60,807

)

-4.1

%

Securities HTM-nontaxable

 

340

 

 

340

 

 

4,509

 

 

 

0.0

%

 

(4,169

)

-92.5

%

Total securities

 

3,346,435

 

 

3,421,580

 

 

3,675,725

 

 

(75,145

)

-2.2

%

 

(329,290

)

-9.0

%

Loans (includes loans held for sale)

 

13,169,805

 

 

13,010,028

 

 

12,530,449

 

 

159,777

 

1.2

%

 

639,356

 

5.1

%

Fed funds sold and reverse repurchases

 

114

 

 

121

 

 

2,379

 

 

(7

)

-5.8

%

 

(2,265

)

-95.2

%

Other earning assets

 

571,215

 

 

670,477

 

 

647,760

 

 

(99,262

)

-14.8

%

 

(76,545

)

-11.8

%

Total earning assets

 

17,087,569

 

 

17,102,206

 

 

16,856,313

 

 

(14,637

)

-0.1

%

 

231,256

 

1.4

%

Allowance for credit losses (ACL), loans held for investment (LHFI)

 

(138,711

)

 

(133,742

)

 

(119,978

)

 

(4,969

)

-3.7

%

 

(18,733

)

-15.6

%

Other assets

 

1,730,521

 

 

1,749,069

 

 

1,762,449

 

 

(18,548

)

-1.1

%

 

(31,928

)

-1.8

%

Total assets

$

18,679,379

 

$

18,717,533

 

$

18,498,784

 

$

(38,154

)

-0.2

%

$

180,595

 

1.0

%

 
Interest-bearing demand deposits

$

5,291,779

 

$

5,053,935

 

$

4,751,154

 

$

237,844

 

4.7

%

$

540,625

 

11.4

%

Savings deposits

 

3,686,027

 

 

3,526,600

 

 

4,193,764

 

 

159,427

 

4.5

%

 

(507,737

)

-12.1

%

Time deposits

 

3,321,601

 

 

3,427,384

 

 

1,907,449

 

 

(105,783

)

-3.1

%

 

1,414,152

 

74.1

%

Total interest-bearing deposits

 

12,299,407

 

 

12,007,919

 

 

10,852,367

 

 

291,488

 

2.4

%

 

1,447,040

 

13.3

%

Fed funds purchased and repurchases

 

428,127

 

 

403,041

 

 

436,535

 

 

25,086

 

6.2

%

 

(8,408

)

-1.9

%

Other borrowings

 

463,459

 

 

590,765

 

 

1,110,843

 

 

(127,306

)

-21.5

%

 

(647,384

)

-58.3

%

Subordinated notes

 

123,501

 

 

123,446

 

 

123,281

 

 

55

 

0.0

%

 

220

 

0.2

%

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

 

0.0

%

 

 

0.0

%

Total interest-bearing liabilities

 

13,376,350

 

 

13,187,027

 

 

12,584,882

 

 

189,323

 

1.4

%

 

791,468

 

6.3

%

Noninterest-bearing deposits

 

3,120,566

 

 

3,296,351

 

 

3,813,248

 

 

(175,785

)

-5.3

%

 

(692,682

)

-18.2

%

Other liabilities

 

505,942

 

 

641,662

 

 

576,826

 

 

(135,720

)

-21.2

%

 

(70,884

)

-12.3

%

Total liabilities

 

17,002,858

 

 

17,125,040

 

 

16,974,956

 

 

(122,182

)

-0.7

%

 

27,902

 

0.2

%

Shareholders' equity

 

1,676,521

 

 

1,592,493

 

 

1,523,828

 

 

84,028

 

5.3

%

 

152,693

 

10.0

%

Total liabilities and equity

$

18,679,379

 

$

18,717,533

 

$

18,498,784

 

$

(38,154

)

-0.2

%

$

180,595

 

1.0

%

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands)
(unaudited)
 
Linked Quarter Year over Year
PERIOD END BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change
Cash and due from banks

$

606,261

 

$

975,543

 

$

1,297,144

 

$

(369,282

)

-37.9

%

$

(690,883

)

-53.3

%

Securities available for sale

 

1,702,299

 

 

1,762,878

 

 

1,984,162

 

 

(60,579

)

-3.4

%

 

(281,863

)

-14.2

%

Securities held to maturity

 

1,415,025

 

 

1,426,279

 

 

1,474,338

 

 

(11,254

)

-0.8

%

 

(59,313

)

-4.0

%

Loans held for sale (LHFS)

 

172,937

 

 

184,812

 

 

175,926

 

 

(11,875

)

-6.4

%

 

(2,989

)

-1.7

%

Loans held for investment (LHFI)

 

13,057,943

 

 

12,950,524

 

 

12,497,195

 

 

107,419

 

0.8

%

 

560,748

 

4.5

%

ACL LHFI

 

(142,998

)

 

(139,367

)

 

(122,239

)

 

(3,631

)

-2.6

%

 

(20,759

)

-17.0

%

Net LHFI

 

12,914,945

 

 

12,811,157

 

 

12,374,956

 

 

103,788

 

0.8

%

 

539,989

 

4.4

%

Premises and equipment, net

 

232,924

 

 

232,537

 

 

223,975

 

 

387

 

0.2

%

 

8,949

 

4.0

%

Mortgage servicing rights

 

138,044

 

 

131,870

 

 

127,206

 

 

6,174

 

4.7

%

 

10,838

 

8.5

%

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

 

0.0

%

 

 

0.0

%

Identifiable intangible assets

 

2,845

 

 

2,965

 

 

3,352

 

 

(120

)

-4.0

%

 

(507

)

-15.1

%

Other real estate

 

7,620

 

 

6,867

 

 

1,684

 

 

753

 

11.0

%

 

5,936

 

n/m

 

Operating lease right-of-use assets

 

36,659

 

 

38,142

 

 

35,315

 

 

(1,483

)

-3.9

%

 

1,344

 

3.8

%

Other assets

 

762,816

 

 

764,902

 

 

794,883

 

 

(2,086

)

-0.3

%

 

(32,067

)

-4.0

%

Total assets

$

18,376,612

 

$

18,722,189

 

$

18,877,178

 

$

(345,577

)

-1.8

%

$

(500,566

)

-2.7

%

 
Deposits:
Noninterest-bearing

$

3,039,652

 

$

3,197,620

 

$

3,797,055

 

$

(157,968

)

-4.9

%

$

(757,403

)

-19.9

%

Interest-bearing

 

12,298,905

 

 

12,372,143

 

 

10,986,606

 

 

(73,238

)

-0.6

%

 

1,312,299

 

11.9

%

Total deposits

 

15,338,557

 

 

15,569,763

 

 

14,783,661

 

 

(231,206

)

-1.5

%

 

554,896

 

3.8

%

Fed funds purchased and repurchases

 

393,215

 

 

405,745

 

 

477,980

 

 

(12,530

)

-3.1

%

 

(84,765

)

-17.7

%

Other borrowings

 

482,027

 

 

483,230

 

 

1,485,181

 

 

(1,203

)

-0.2

%

 

(1,003,154

)

-67.5

%

Subordinated notes

 

123,537

 

 

123,482

 

 

123,317

 

 

55

 

0.0

%

 

220

 

0.2

%

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

 

0.0

%

 

 

0.0

%

ACL on off-balance sheet credit exposures

 

33,865

 

 

34,057

 

 

34,596

 

 

(192

)

-0.6

%

 

(731

)

-2.1

%

Operating lease liabilities

 

40,185

 

 

41,584

 

 

37,988

 

 

(1,399

)

-3.4

%

 

2,197

 

5.8

%

Other liabilities

 

220,771

 

 

340,625

 

 

310,500

 

 

(119,854

)

-35.2

%

 

(89,729

)

-28.9

%

Total liabilities

 

16,694,013

 

 

17,060,342

 

 

17,315,079

 

 

(366,329

)

-2.1

%

 

(621,066

)

-3.6

%

Common stock

 

12,747

 

 

12,725

 

 

12,720

 

 

22

 

0.2

%

 

27

 

0.2

%

Capital surplus

 

160,521

 

 

159,688

 

 

155,297

 

 

833

 

0.5

%

 

5,224

 

3.4

%

Retained earnings

 

1,736,485

 

 

1,709,157

 

 

1,636,463

 

 

27,328

 

1.6

%

 

100,022

 

6.1

%

Accumulated other comprehensive
income (loss), net of tax

 

(227,154

)

 

(219,723

)

 

(242,381

)

 

(7,431

)

-3.4

%

 

15,227

 

6.3

%

Total shareholders' equity

 

1,682,599

 

 

1,661,847

 

 

1,562,099

 

 

20,752

 

1.2

%

 

120,500

 

7.7

%

Total liabilities and equity

$

18,376,612

 

$

18,722,189

 

$

18,877,178

 

$

(345,577

)

-1.8

%

$

(500,566

)

-2.7

%

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands except per share data)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
INCOME STATEMENTS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change
Interest and fees on LHFS & LHFI-FTE

$

209,456

 

$

210,288

 

$

178,967

 

$

(832

)

-0.4

%

$

30,489

 

17.0

%

Interest on securities-taxable

 

15,634

 

 

15,936

 

 

16,761

 

 

(302

)

-1.9

%

 

(1,127

)

-6.7

%

Interest on securities-tax exempt-FTE

 

4

 

 

44

 

 

92

 

 

(40

)

-90.9

%

 

(88

)

-95.7

%

Interest on fed funds sold and reverse repurchases

 

1

 

 

2

 

 

30

 

 

(1

)

-50.0

%

 

(29

)

-96.7

%

Other interest income

 

8,110

 

 

9,918

 

 

6,527

 

 

(1,808

)

-18.2

%

 

1,583

 

24.3

%

Total interest income-FTE

 

233,205

 

 

236,188

 

 

202,377

 

 

(2,983

)

-1.3

%

 

30,828

 

15.2

%

Interest on deposits

 

83,716

 

 

80,847

 

 

40,898

 

 

2,869

 

3.5

%

 

42,818

 

n/m

 

Interest on fed funds purchased and repurchases

 

5,591

 

 

5,347

 

 

4,832

 

 

244

 

4.6

%

 

759

 

15.7

%

Other interest expense

 

7,703

 

 

9,946

 

 

15,575

 

 

(2,243

)

-22.6

%

 

(7,872

)

-50.5

%

Total interest expense

 

97,010

 

 

96,140

 

 

61,305

 

 

870

 

0.9

%

 

35,705

 

58.2

%

Net interest income-FTE

 

136,195

 

 

140,048

 

 

141,072

 

 

(3,853

)

-2.8

%

 

(4,877

)

-3.5

%

Provision for credit losses, LHFI

 

7,708

 

 

7,585

 

 

3,244

 

 

123

 

1.6

%

 

4,464

 

n/m

 

Provision for credit losses, off-balance sheet credit exposures

 

(192

)

 

(888

)

 

(2,242

)

 

696

 

78.4

%

 

2,050

 

91.4

%

Net interest income after provision-FTE

 

128,679

 

 

133,351

 

 

140,070

 

 

(4,672

)

-3.5

%

 

(11,391

)

-8.1

%

Service charges on deposit accounts

 

10,958

 

 

11,311

 

 

10,336

 

 

(353

)

-3.1

%

 

622

 

6.0

%

Bank card and other fees

 

7,428

 

 

8,502

 

 

7,803

 

 

(1,074

)

-12.6

%

 

(375

)

-4.8

%

Mortgage banking, net

 

8,915

 

 

5,519

 

 

7,639

 

 

3,396

 

61.5

%

 

1,276

 

16.7

%

Insurance commissions

 

15,464

 

 

13,197

 

 

14,305

 

 

2,267

 

17.2

%

 

1,159

 

8.1

%

Wealth management

 

8,952

 

 

8,657

 

 

8,780

 

 

295

 

3.4

%

 

172

 

2.0

%

Other, net

 

3,632

 

 

2,579

 

 

2,514

 

 

1,053

 

40.8

%

 

1,118

 

44.5

%

Securities gains (losses), net

 

 

 

39

 

 

 

 

(39

)

-100.0

%

 

 

n/m

 

Total noninterest income

 

55,349

 

 

49,804

 

 

51,377

 

 

5,545

 

11.1

%

 

3,972

 

7.7

%

Salaries and employee benefits

 

75,458

 

 

78,003

 

 

74,056

 

 

(2,545

)

-3.3

%

 

1,402

 

1.9

%

Services and fees

 

24,839

 

 

27,906

 

 

25,426

 

 

(3,067

)

-11.0

%

 

(587

)

-2.3

%

Net occupancy-premises

 

7,496

 

 

7,362

 

 

7,629

 

 

134

 

1.8

%

 

(133

)

-1.7

%

Equipment expense

 

6,385

 

 

6,517

 

 

6,405

 

 

(132

)

-2.0

%

 

(20

)

-0.3

%

Other expense

 

16,968

 

 

16,641

 

 

14,811

 

 

327

 

2.0

%

 

2,157

 

14.6

%

Total noninterest expense

 

131,146

 

 

136,429

 

 

128,327

 

 

(5,283

)

-3.9

%

 

2,819

 

2.2

%

Income before income taxes and tax eq adj

 

52,882

 

 

46,726

 

 

63,120

 

 

6,156

 

13.2

%

 

(10,238

)

-16.2

%

Tax equivalent adjustment

 

3,365

 

 

3,306

 

 

3,477

 

 

59

 

1.8

%

 

(112

)

-3.2

%

Income before income taxes

 

49,517

 

 

43,420

 

 

59,643

 

 

6,097

 

14.0

%

 

(10,126

)

-17.0

%

Income taxes

 

7,982

 

 

7,297

 

 

9,343

 

 

685

 

9.4

%

 

(1,361

)

-14.6

%

Net income

$

41,535

 

$

36,123

 

$

50,300

 

$

5,412

 

15.0

%

$

(8,765

)

-17.4

%

 
Per share data
Earnings per share - basic

$

0.68

 

$

0.59

 

$

0.82

 

$

0.09

 

15.3

%

$

(0.14

)

-17.1

%

 
Earnings per share - diluted

$

0.68

 

$

0.59

 

$

0.82

 

$

0.09

 

15.3

%

$

(0.14

)

-17.1

%

 
Dividends per share

$

0.23

 

$

0.23

 

$

0.23

 

 

 

0.0

%

 

 

0.0

%

 
Weighted average shares outstanding
Basic

 

61,128,425

 

 

61,070,481

 

 

61,011,059

 

 
Diluted

 

61,348,364

 

 

61,296,840

 

 

61,193,275

 

 
Period end shares outstanding

 

61,178,366

 

 

61,071,173

 

 

61,048,516

 

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
NONPERFORMING ASSETS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change
Nonaccrual LHFI
Alabama (1)

$

23,261

 

$

23,271

 

$

10,919

 

$

(10

)

0.0

%

$

12,342

 

n/m

 

Florida

 

585

 

 

170

 

 

256

 

 

415

 

n/m

 

 

329

 

n/m

 

Mississippi (2)

 

59,059

 

 

54,615

 

 

32,560

 

 

4,444

 

8.1

%

 

26,499

 

81.4

%

Tennessee (3)

 

1,800

 

 

1,802

 

 

5,416

 

 

(2

)

-0.1

%

 

(3,616

)

-66.8

%

Texas

 

13,646

 

 

20,150

 

 

23,224

 

 

(6,504

)

-32.3

%

 

(9,578

)

-41.2

%

Total nonaccrual LHFI

 

98,351

 

 

100,008

 

 

72,375

 

 

(1,657

)

-1.7

%

 

25,976

 

35.9

%

Other real estate
Alabama (1)

 

1,050

 

 

1,397

 

 

 

 

(347

)

-24.8

%

 

1,050

 

n/m

 

Florida

 

71

 

 

 

 

 

 

71

 

n/m

 

 

71

 

n/m

 

Mississippi (2)

 

2,870

 

 

1,242

 

 

1,495

 

 

1,628

 

n/m

 

 

1,375

 

92.0

%

Tennessee (3)

 

86

 

 

 

 

189

 

 

86

 

n/m

 

 

(103

)

-54.5

%

Texas

 

3,543

 

 

4,228

 

 

 

 

(685

)

-16.2

%

 

3,543

 

n/m

 

Total other real estate

 

7,620

 

 

6,867

 

 

1,684

 

 

753

 

11.0

%

 

5,936

 

n/m

 

Total nonperforming assets

$

105,971

 

$

106,875

 

$

74,059

 

$

(904

)

-0.8

%

$

31,912

 

43.1

%

 
LOANS PAST DUE OVER 90 DAYS
LHFI

$

5,243

 

$

5,790

 

$

2,255

 

$

(547

)

-9.4

%

$

2,988

 

n/m

 

 
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)

$

56,530

 

$

51,243

 

$

41,468

 

$

5,287

 

10.3

%

$

15,062

 

36.3

%

 
Quarter Ended Linked Quarter Year over Year
ACL LHFI 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change
Beginning Balance

$

139,367

 

$

134,031

 

$

120,214

 

$

5,336

 

4.0

%

$

19,153

 

15.9

%

Provision for credit losses, LHFI

 

7,708

 

 

7,585

 

 

3,244

 

 

123

 

1.6

%

 

4,464

 

n/m

 

Charge-offs

 

(6,324

)

 

(4,250

)

 

(2,996

)

 

(2,074

)

-48.8

%

 

(3,328

)

n/m

 

Recoveries

 

2,247

 

 

2,001

 

 

1,777

 

 

246

 

12.3

%

 

470

 

26.4

%

Net (charge-offs) recoveries

 

(4,077

)

 

(2,249

)

 

(1,219

)

 

(1,828

)

-81.3

%

 

(2,858

)

n/m

 

Ending Balance

$

142,998

 

$

139,367

 

$

122,239

 

$

3,631

 

2.6

%

$

20,759

 

17.0

%

 
NET (CHARGE-OFFS) RECOVERIES
Alabama (1)

$

(341

)

$

(299

)

$

(268

)

$

(42

)

-14.0

%

$

(73

)

-27.2

%

Florida

 

277

 

 

180

 

 

(36

)

 

97

 

53.9

%

 

313

 

n/m

 

Mississippi (2)

 

(1,489

)

 

(1,943

)

 

(775

)

 

454

 

23.4

%

 

(714

)

-92.1

%

Tennessee (3)

 

(179

)

 

(193

)

 

(124

)

 

14

 

7.3

%

 

(55

)

-44.4

%

Texas

 

(2,345

)

 

6

 

 

(16

)

 

(2,351

)

n/m

 

 

(2,329

)

n/m

 

Total net (charge-offs) recoveries

$

(4,077

)

$

(2,249

)

$

(1,219

)

$

(1,828

)

-81.3

%

$

(2,858

)

n/m

 

(1) Alabama includes the Georgia Loan Production Office.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
 
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands)
(unaudited)
Quarter Ended
AVERAGE BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
Securities AFS-taxable

$

1,927,619

 

$

1,986,825

 

$

2,049,006

 

$

2,140,505

 

$

2,187,121

 

Securities AFS-nontaxable

 

 

 

4,246

 

 

4,779

 

 

4,796

 

 

4,812

 

Securities HTM-taxable

 

1,418,476

 

 

1,430,169

 

 

1,445,895

 

 

1,463,086

 

 

1,479,283

 

Securities HTM-nontaxable

 

340

 

 

340

 

 

907

 

 

1,718

 

 

4,509

 

Total securities

 

3,346,435

 

 

3,421,580

 

 

3,500,587

 

 

3,610,105

 

 

3,675,725

 

Loans (includes loans held for sale)

 

13,169,805

 

 

13,010,028

 

 

12,926,942

 

 

12,732,057

 

 

12,530,449

 

Fed funds sold and reverse repurchases

 

114

 

 

121

 

 

230

 

 

3,275

 

 

2,379

 

Other earning assets

 

571,215

 

 

670,477

 

 

682,644

 

 

903,027

 

 

647,760

 

Total earning assets

 

17,087,569

 

 

17,102,206

 

 

17,110,403

 

 

17,248,464

 

 

16,856,313

 

ACL LHFI

 

(138,711

)

 

(133,742

)

 

(127,915

)

 

(121,960

)

 

(119,978

)

Other assets

 

1,730,521

 

 

1,749,069

 

 

1,721,310

 

 

1,648,583

 

 

1,762,449

 

Total assets

$

18,679,379

 

$

18,717,533

 

$

18,703,798

 

$

18,775,087

 

$

18,498,784

 

 
Interest-bearing demand deposits

$

5,291,779

 

$

5,053,935

 

$

4,875,714

 

$

4,803,737

 

$

4,751,154

 

Savings deposits

 

3,686,027

 

 

3,526,600

 

 

3,642,158

 

 

4,002,134

 

 

4,193,764

 

Time deposits

 

3,321,601

 

 

3,427,384

 

 

3,075,224

 

 

2,335,752

 

 

1,907,449

 

Total interest-bearing deposits

 

12,299,407

 

 

12,007,919

 

 

11,593,096

 

 

11,141,623

 

 

10,852,367

 

Fed funds purchased and repurchases

 

428,127

 

 

403,041

 

 

414,696

 

 

389,834

 

 

436,535

 

Other borrowings

 

463,459

 

 

590,765

 

 

912,151

 

 

1,330,010

 

 

1,110,843

 

Subordinated notes

 

123,501

 

 

123,446

 

 

123,391

 

 

123,337

 

 

123,281

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

Total interest-bearing liabilities

 

13,376,350

 

 

13,187,027

 

 

13,105,190

 

 

13,046,660

 

 

12,584,882

 

Noninterest-bearing deposits

 

3,120,566

 

 

3,296,351

 

 

3,429,815

 

 

3,595,927

 

 

3,813,248

 

Other liabilities

 

505,942

 

 

641,662

 

 

585,908

 

 

552,209

 

 

576,826

 

Total liabilities

 

17,002,858

 

 

17,125,040

 

 

17,120,913

 

 

17,194,796

 

 

16,974,956

 

Shareholders' equity

 

1,676,521

 

 

1,592,493

 

 

1,582,885

 

 

1,580,291

 

 

1,523,828

 

Total liabilities and equity

$

18,679,379

 

$

18,717,533

 

$

18,703,798

 

$

18,775,087

 

$

18,498,784

 

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands)
(unaudited)
 
 
PERIOD END BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
Cash and due from banks

$

606,261

 

$

975,543

 

$

750,492

 

$

832,052

 

$

1,297,144

 

Securities available for sale

 

1,702,299

 

 

1,762,878

 

 

1,766,174

 

 

1,871,883

 

 

1,984,162

 

Securities held to maturity

 

1,415,025

 

 

1,426,279

 

 

1,438,287

 

 

1,458,665

 

 

1,474,338

 

LHFS

 

172,937

 

 

184,812

 

 

169,244

 

 

181,094

 

 

175,926

 

LHFI

 

13,057,943

 

 

12,950,524

 

 

12,810,259

 

 

12,613,967

 

 

12,497,195

 

ACL LHFI

 

(142,998

)

 

(139,367

)

 

(134,031

)

 

(129,298

)

 

(122,239

)

Net LHFI

 

12,914,945

 

 

12,811,157

 

 

12,676,228

 

 

12,484,669

 

 

12,374,956

 

Premises and equipment, net

 

232,924

 

 

232,537

 

 

230,718

 

 

227,630

 

 

223,975

 

Mortgage servicing rights

 

138,044

 

 

131,870

 

 

142,379

 

 

134,350

 

 

127,206

 

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

Identifiable intangible assets

 

2,845

 

 

2,965

 

 

3,093

 

 

3,222

 

 

3,352

 

Other real estate

 

7,620

 

 

6,867

 

 

5,485

 

 

1,137

 

 

1,684

 

Operating lease right-of-use assets

 

36,659

 

 

38,142

 

 

39,639

 

 

38,179

 

 

35,315

 

Other assets

 

762,816

 

 

764,902

 

 

784,863

 

 

805,508

 

 

794,883

 

Total assets

$

18,376,612

 

$

18,722,189

 

$

18,390,839

 

$

18,422,626

 

$

18,877,178

 

 
Deposits:
Noninterest-bearing

$

3,039,652

 

$

3,197,620

 

$

3,320,124

 

$

3,461,073

 

$

3,797,055

 

Interest-bearing

 

12,298,905

 

 

12,372,143

 

 

11,781,799

 

 

11,452,827

 

 

10,986,606

 

Total deposits

 

15,338,557

 

 

15,569,763

 

 

15,101,923

 

 

14,913,900

 

 

14,783,661

 

Fed funds purchased and repurchases

 

393,215

 

 

405,745

 

 

321,799

 

 

311,179

 

 

477,980

 

Other borrowings

 

482,027

 

 

483,230

 

 

793,193

 

 

1,056,714

 

 

1,485,181

 

Subordinated notes

 

123,537

 

 

123,482

 

 

123,427

 

 

123,372

 

 

123,317

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

ACL on off-balance sheet credit exposures

 

33,865

 

 

34,057

 

 

34,945

 

 

34,841

 

 

34,596

 

Operating lease liabilities

 

40,185

 

 

41,584

 

 

42,730

 

 

40,845

 

 

37,988

 

Other liabilities

 

220,771

 

 

340,625

 

 

340,615

 

 

308,726

 

 

310,500

 

Total liabilities

 

16,694,013

 

 

17,060,342

 

 

16,820,488

 

 

16,851,433

 

 

17,315,079

 

Common stock

 

12,747

 

 

12,725

 

 

12,724

 

 

12,724

 

 

12,720

 

Capital surplus

 

160,521

 

 

159,688

 

 

158,316

 

 

156,834

 

 

155,297

 

Retained earnings

 

1,736,485

 

 

1,709,157

 

 

1,687,199

 

 

1,667,339

 

 

1,636,463

 

Accumulated other comprehensive income (loss),
net of tax

 

(227,154

)

 

(219,723

)

 

(287,888

)

 

(265,704

)

 

(242,381

)

Total shareholders' equity

 

1,682,599

 

 

1,661,847

 

 

1,570,351

 

 

1,571,193

 

 

1,562,099

 

Total liabilities and equity

$

18,376,612

 

$

18,722,189

 

$

18,390,839

 

$

18,422,626

 

$

18,877,178

 

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands except per share data)
(unaudited)
 
Quarter Ended
INCOME STATEMENTS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
Interest and fees on LHFS & LHFI-FTE

$

209,456

 

$

210,288

 

$

206,523

$

192,941

$

178,967

 

Interest on securities-taxable

 

15,634

 

 

15,936

 

 

16,624

 

16,779

 

16,761

 

Interest on securities-tax exempt-FTE

 

4

 

 

44

 

 

58

 

69

 

92

 

Interest on fed funds sold and reverse repurchases

 

1

 

 

2

 

 

3

 

45

 

30

 

Other interest income

 

8,110

 

 

9,918

 

 

8,613

 

12,077

 

6,527

 

Total interest income-FTE

 

233,205

 

 

236,188

 

 

231,821

 

221,911

 

202,377

 

Interest on deposits

 

83,716

 

 

80,847

 

 

69,797

 

54,409

 

40,898

 

Interest on fed funds purchased and repurchases

 

5,591

 

 

5,347

 

 

5,375

 

4,865

 

4,832

 

Other interest expense

 

7,703

 

 

9,946

 

 

14,713

 

19,350

 

15,575

 

Total interest expense

 

97,010

 

 

96,140

 

 

89,885

 

78,624

 

61,305

 

Net interest income-FTE

 

136,195

 

 

140,048

 

 

141,936

 

143,287

 

141,072

 

Provision for credit losses, LHFI

 

7,708

 

 

7,585

 

 

8,322

 

8,211

 

3,244

 

Provision for credit losses, off-balance sheet credit exposures

 

(192

)

 

(888

)

 

104

 

245

 

(2,242

)

Net interest income after provision-FTE

 

128,679

 

 

133,351

 

 

133,510

 

134,831

 

140,070

 

Service charges on deposit accounts

 

10,958

 

 

11,311

 

 

11,074

 

10,695

 

10,336

 

Bank card and other fees

 

7,428

 

 

8,502

 

 

8,217

 

8,917

 

7,803

 

Mortgage banking, net

 

8,915

 

 

5,519

 

 

6,458

 

6,600

 

7,639

 

Insurance commissions

 

15,464

 

 

13,197

 

 

15,303

 

14,764

 

14,305

 

Wealth management

 

8,952

 

 

8,657

 

 

8,773

 

8,882

 

8,780

 

Other, net

 

3,632

 

 

2,579

 

 

2,399

 

3,695

 

2,514

 

Securities gains (losses), net

 

 

 

39

 

 

 

 

 

Total noninterest income

 

55,349

 

 

49,804

 

 

52,224

 

53,553

 

51,377

 

Salaries and employee benefits

 

75,458

 

 

78,003

 

 

76,666

 

75,940

 

74,056

 

Services and fees

 

24,839

 

 

27,906

 

 

27,882

 

28,264

 

25,426

 

Net occupancy-premises

 

7,496

 

 

7,362

 

 

7,383

 

7,108

 

7,629

 

Equipment expense

 

6,385

 

 

6,517

 

 

6,816

 

6,404

 

6,405

 

Litigation settlement expense

 

 

 

 

 

6,500

 

 

 

Other expense

 

16,968

 

 

16,641

 

 

15,698

 

14,502

 

14,811

 

Total noninterest expense

 

131,146

 

 

136,429

 

 

140,945

 

132,218

 

128,327

 

Income before income taxes and tax eq adj

 

52,882

 

 

46,726

 

 

44,789

 

56,166

 

63,120

 

Tax equivalent adjustment

 

3,365

 

 

3,306

 

 

3,299

 

3,383

 

3,477

 

Income before income taxes

 

49,517

 

 

43,420

 

 

41,490

 

52,783

 

59,643

 

Income taxes

 

7,982

 

 

7,297

 

 

7,461

 

7,746

 

9,343

 

Net income

$

41,535

 

$

36,123

 

$

34,029

$

45,037

$

50,300

 

 
Per share data
Earnings per share - basic

$

0.68

 

$

0.59

 

$

0.56

$

0.74

$

0.82

 

 
Earnings per share - diluted

$

0.68

 

$

0.59

 

$

0.56

$

0.74

$

0.82

 

 
Dividends per share

$

0.23

 

$

0.23

 

$

0.23

$

0.23

$

0.23

 

 
Weighted average shares outstanding
Basic

 

61,128,425

 

 

61,070,481

 

 

61,069,750

 

61,063,277

 

61,011,059

 

 
Diluted

 

61,348,364

 

 

61,296,840

 

 

61,263,032

 

61,230,031

 

61,193,275

 

 
Period end shares outstanding

 

61,178,366

 

 

61,071,173

 

 

61,070,095

 

61,069,036

 

61,048,516

 

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
($ in thousands)
(unaudited)
 
Quarter Ended
NONPERFORMING ASSETS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
Nonaccrual LHFI
Alabama (1)

$

23,261

 

$

23,271

 

$

23,530

 

$

11,058

 

$

10,919

 

Florida

 

585

 

 

170

 

 

151

 

 

334

 

 

256

 

Mississippi (2)

 

59,059

 

 

54,615

 

 

45,050

 

 

36,288

 

 

32,560

 

Tennessee (3)

 

1,800

 

 

1,802

 

 

1,841

 

 

5,088

 

 

5,416

 

Texas

 

13,646

 

 

20,150

 

 

20,327

 

 

22,259

 

 

23,224

 

Total nonaccrual LHFI

 

98,351

 

 

100,008

 

 

90,899

 

 

75,027

 

 

72,375

 

Other real estate
Alabama (1)

 

1,050

 

 

1,397

 

 

315

 

 

 

 

 

Florida

 

71

 

 

 

 

 

 

 

 

 

Mississippi (2)

 

2,870

 

 

1,242

 

 

942

 

 

1,137

 

 

1,495

 

Tennessee (3)

 

86

 

 

 

 

 

 

 

 

189

 

Texas

 

3,543

 

 

4,228

 

 

4,228

 

 

 

 

 

Total other real estate

 

7,620

 

 

6,867

 

 

5,485

 

 

1,137

 

 

1,684

 

Total nonperforming assets

$

105,971

 

$

106,875

 

$

96,384

 

$

76,164

 

$

74,059

 

 
LOANS PAST DUE OVER 90 DAYS
LHFI

$

5,243

 

$

5,790

 

$

3,804

 

$

3,911

 

$

2,255

 

 
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)

$

56,530

 

$

51,243

 

$

42,532

 

$

35,766

 

$

41,468

 

 
 
Quarter Ended
ACL LHFI 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
Beginning Balance

$

139,367

 

$

134,031

 

$

129,298

 

$

122,239

 

$

120,214

 

Provision for credit losses, LHFI

 

7,708

 

 

7,585

 

 

8,322

 

 

8,211

 

 

3,244

 

Charge-offs

 

(6,324

)

 

(4,250

)

 

(7,496

)

 

(2,773

)

 

(2,996

)

Recoveries

 

2,247

 

 

2,001

 

 

3,907

 

 

1,621

 

 

1,777

 

Net (charge-offs) recoveries

 

(4,077

)

 

(2,249

)

 

(3,589

)

 

(1,152

)

 

(1,219

)

Ending Balance

$

142,998

 

$

139,367

 

$

134,031

 

$

129,298

 

$

122,239

 

 
NET (CHARGE-OFFS) RECOVERIES
Alabama (1)

$

(341

)

$

(299

)

$

(165

)

$

(141

)

$

(268

)

Florida

 

277

 

 

180

 

 

21

 

 

(35

)

 

(36

)

Mississippi (2)

 

(1,489

)

 

(1,943

)

 

(1,867

)

 

(762

)

 

(775

)

Tennessee (3)

 

(179

)

 

(193

)

 

2,127

 

 

(166

)

 

(124

)

Texas

 

(2,345

)

 

6

 

 

(3,705

)

 

(48

)

 

(16

)

Total net (charge-offs) recoveries

$

(4,077

)

$

(2,249

)

$

(3,589

)

$

(1,152

)

$

(1,219

)

(1) Alabama includes the Georgia Loan Production Office.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2024
(unaudited)
 
 
Quarter Ended
FINANCIAL RATIOS AND OTHER DATA 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
Return on average equity

 

9.96

%

 

9.00

%

 

8.53

%

 

11.43

%

 

13.39

%

Return on average tangible equity

 

12.98

%

 

11.92

%

 

11.32

%

 

15.18

%

 

18.03

%

Return on average assets

 

0.89

%

 

0.77

%

 

0.72

%

 

0.96

%

 

1.10

%

Interest margin - Yield - FTE

 

5.49

%

 

5.48

%

 

5.38

%

 

5.16

%

 

4.87

%

Interest margin - Cost

 

2.28

%

 

2.23

%

 

2.08

%

 

1.83

%

 

1.47

%

Net interest margin - FTE

 

3.21

%

 

3.25

%

 

3.29

%

 

3.33

%

 

3.39

%

Efficiency ratio (1)

 

67.25

%

 

70.25

%

 

68.33

%

 

66.17

%

 

65.60

%

Full-time equivalent employees

 

2,712

 

 

2,757

 

 

2,756

 

 

2,761

 

 

2,758

 

 
CREDIT QUALITY RATIOS
Net (recoveries) charge-offs / average loans

 

0.12

%

 

0.07

%

 

0.11

%

 

0.04

%

 

0.04

%

Provision for credit losses, LHFI / average loans

 

0.24

%

 

0.23

%

 

0.26

%

 

0.26

%

 

0.10

%

Nonaccrual LHFI / (LHFI + LHFS)

 

0.74

%

 

0.76

%

 

0.70

%

 

0.59

%

 

0.57

%

Nonperforming assets / (LHFI + LHFS)

 

0.80

%

 

0.81

%

 

0.74

%

 

0.60

%

 

0.58

%

Nonperforming assets / (LHFI + LHFS
+ other real estate)

 

0.80

%

 

0.81

%

 

0.74

%

 

0.60

%

 

0.58

%

ACL LHFI / LHFI

 

1.10

%

 

1.08

%

 

1.05

%

 

1.03

%

 

0.98

%

ACL LHFI-commercial / commercial LHFI

 

0.93

%

 

0.85

%

 

0.86

%

 

0.84

%

 

0.80

%

ACL LHFI-consumer / consumer and
home mortgage LHFI

 

1.63

%

 

1.81

%

 

1.66

%

 

1.60

%

 

1.54

%

ACL LHFI / nonaccrual LHFI

 

145.39

%

 

139.36

%

 

147.45

%

 

172.34

%

 

168.90

%

ACL LHFI / nonaccrual LHFI
(excl individually analyzed loans)

 

235.29

%

 

249.31

%

 

273.60

%

 

301.44

%

 

320.80

%

 
CAPITAL RATIOS
Total equity / total assets

 

9.16

%

 

8.88

%

 

8.54

%

 

8.53

%

 

8.28

%

Tangible equity / tangible assets

 

7.20

%

 

6.95

%

 

6.57

%

 

6.56

%

 

6.35

%

Tangible equity / risk-weighted assets

 

8.49

%

 

8.41

%

 

7.81

%

 

7.91

%

 

7.94

%

Tier 1 leverage ratio

 

8.76

%

 

8.62

%

 

8.49

%

 

8.35

%

 

8.29

%

Common equity tier 1 capital ratio

 

10.12

%

 

10.04

%

 

9.89

%

 

9.87

%

 

9.76

%

Tier 1 risk-based capital ratio

 

10.51

%

 

10.44

%

 

10.29

%

 

10.27

%

 

10.17

%

Total risk-based capital ratio

 

12.42

%

 

12.29

%

 

12.11

%

 

12.08

%

 

11.95

%

 
STOCK PERFORMANCE
Market value-Close

$

28.11

 

$

27.88

 

$

21.73

 

$

21.12

 

$

24.70

 

Book value

$

27.50

 

$

27.21

 

$

25.71

 

$

25.73

 

$

25.59

 

Tangible book value

$

21.18

 

$

20.87

 

$

19.37

 

$

19.38

 

$

19.24

 

(1) See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2024
($ in thousands)
(unaudited)

Note 1 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

 

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

SECURITIES AVAILABLE FOR SALE

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

372,424

 

$

372,368

 

$

363,476

 

$

362,966

 

$

386,903

U.S. Government agency obligations

 

 

5,594

 

 

5,792

 

 

6,780

 

 

6,999

 

 

7,254

Obligations of states and political subdivisions

 

 

 

 

 

 

4,642

 

 

4,813

 

 

4,907

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through securities

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

22,232

 

 

23,135

 

 

22,881

 

 

25,336

 

 

26,851

Issued by FNMA and FHLMC

 

 

1,129,521

 

 

1,176,798

 

 

1,171,521

 

 

1,250,435

 

 

1,317,848

Other residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

79,099

 

 

86,074

 

 

90,402

 

 

98,388

 

 

108,192

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

93,429

 

 

98,711

 

 

106,472

 

 

122,946

 

 

132,207

Total securities available for sale

 

$

1,702,299

 

$

1,762,878

 

$

1,766,174

 

$

1,871,883

 

$

1,984,162

 

 

 

 

 

 

 

 

 

 

 

SECURITIES HELD TO MATURITY

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

29,261

 

$

29,068

 

$

28,872

 

$

28,679

 

$

28,486

Obligations of states and political subdivisions

 

 

340

 

 

340

 

 

341

 

 

1,180

 

 

4,507

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through securities

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

18,387

 

 

13,005

 

 

13,090

 

 

13,235

 

 

4,336

Issued by FNMA and FHLMC

 

 

461,457

 

 

469,593

 

 

474,003

 

 

484,679

 

 

497,854

Other residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

146,447

 

 

154,466

 

 

162,031

 

 

171,002

 

 

179,334

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

759,133

 

 

759,807

 

 

759,950

 

 

759,890

 

 

759,821

Total securities held to maturity

 

$

1,415,025

 

$

1,426,279

 

$

1,438,287

 

$

1,458,665

 

$

1,474,338

At March 31, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $54.8 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 99.99% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2024
($ in thousands)
(unaudited)

Note 2 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

1,539,461

 

 

$

1,510,679

 

 

$

1,609,326

 

 

$

1,722,657

 

 

$

1,723,772

 

Secured by 1-4 family residential properties

 

 

2,891,481

 

 

 

2,904,715

 

 

 

2,893,606

 

 

 

2,854,182

 

 

 

2,822,048

 

Secured by nonfarm, nonresidential properties

 

 

3,543,235

 

 

 

3,489,434

 

 

 

3,569,671

 

 

 

3,471,728

 

 

 

3,375,579

 

Other real estate secured

 

 

1,384,610

 

 

 

1,312,551

 

 

 

1,218,499

 

 

 

954,410

 

 

 

847,527

 

Commercial and industrial loans

 

 

1,922,711

 

 

 

1,922,910

 

 

 

1,828,924

 

 

 

1,883,480

 

 

 

1,882,360

 

Consumer loans

 

 

156,430

 

 

 

161,725

 

 

 

161,940

 

 

 

163,788

 

 

 

162,911