STOCK TITAN
  1. Home
  2. News
  3. TRMK

Trustmark Corporation Announces First Quarter 2023 Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
earnings
Rhea-AI Summary

Trustmark Corporation (NASDAQGS:TRMK) reported net income of $50.3 million for Q1 2023, equating to diluted earnings per share of $0.82. The company achieved a return on average tangible equity of 18.03% and a return on average assets of 1.10%. Loan and deposit growth were both up 2.4%, with loans held for investment totaling $12.5 billion and total deposits at $14.8 billion. Noninterest income saw a 13.7% increase linked-quarter to $51.4 million, although total revenue decreased 1.5% from the previous quarter to $189.0 million. The company remains focused on enhancing operational efficiency and managing expenses, evidenced by a 1.6% decrease in noninterest expenses.

Positive
  • Net income increased to $50.3 million, or EPS of $0.82.
  • Noninterest income rose 13.7% linked-quarter to $51.4 million.
  • Loan and deposit growth both increased by 2.4%.
  • Tangible book value per share increased by 6.2% to $19.24.
Negative
  • Net interest income decreased by 6.0% linked-quarter to $141.1 million.
  • Total revenue declined 1.5% from the prior quarter.
  • Net interest margin contracted by 27 basis points to 3.39%.

Loan and Deposit Growth Continues, Credit Quality Remains Strong,

Mortgage Banking, Insurance and Wealth Management Revenue Expands

JACKSON, Miss.--(BUSINESS WIRE)-- Trustmark Corporation (NASDAQGS:TRMK) reported net income of $50.3 million in the first quarter of 2023, representing diluted earnings per share of $0.82. Trustmark’s performance during the first quarter produced a return on average tangible equity of 18.03% and a return on average assets of 1.10%. The Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2023, to shareholders of record on June 1, 2023.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/53386997/en

First Quarter Highlights

  • Loan and deposit growth continued during the first quarter
  • Credit quality remained strong
  • Noninterest income increased linked-quarter, reflecting the strength of diversified business lines
  • Expense discipline continued, noninterest expense decreased linked-quarter

Duane A. Dewey, President and CEO, stated, “Our first quarter financial performance reflects solid loan and deposit growth, strong performance in our mortgage, insurance and wealth management businesses, and diligent expense management. Our overall strong performance was impacted by increasingly competitive deposit costs during the quarter, which compressed our net interest margin. Trustmark has a strong, diversified and proven business model that has stood the test of time. We remain well-positioned and committed to meeting our customers’ needs despite the challenging financial services environment. Our balance sheet is well-positioned for additional increases in interest rates and credit quality remains solid. We continue to focus on efficiency enhancements throughout the organization as well as investments in technology to better serve customers.”

Balance Sheet Management

  • Loans held for investment (HFI) increased $293.2 million, or 2.4%, during the quarter
  • Total deposits increased $346.0 million, or 2.4%, during the quarter
  • Maintained strong capital position with CET1 ratio of 9.76% and total risk-based capital ratio of 11.95%

Loans HFI totaled $12.5 billion at March 31, 2023, reflecting an increase of $293.2 million, or 2.4%, linked-quarter and $2.1 billion, or 20.2%, year-over-year. The linked-quarter growth was broad-based and reflected increases in all categories with the exception of state and political subdivisions and consumer loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.8 billion at March 31, 2023, up $346.0 million, or 2.4%, from the prior quarter and down $329.6 million, or 2.2%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 84.5% of total deposits at March 31, 2023. Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 25.7% of total deposits at March 31, 2023. Interest-bearing deposit costs totaled 1.53% for the first quarter, while the total cost of deposits was 1.13%. The total cost of interest-bearing liabilities was 1.98% for the first quarter of 2023.

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, 2023, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2023. At March 31, 2023, Trustmark’s tangible equity to tangible assets ratio was 6.35%, while the total risk-based capital ratio was 11.95%. Tangible book value per share was $19.24 at March 31, 2023, an increase of 6.2% from the prior quarter.

Credit Quality

  • Nonperforming assets represented 0.58% of loans HFI and loans held for sale (HFS) at March 31, 2023
  • Net charge-offs totaled 0.04% of average loans in the first quarter
  • Allowance for credit losses (ACL) represented 0.98% of loans HFI and 320.80% of nonaccrual loans, excluding individually analyzed loans at March 31, 2023

Nonaccrual loans totaled $72.4 million at March 31, 2023, up $6.4 million from the prior quarter and an increase of $8.0 million year-over-year. Other real estate totaled $1.7 million, reflecting a $302 thousand decrease from the prior quarter and a $1.5 million decline from the prior year.

The provision for credit losses for loans HFI was $3.2 million in the first quarter and was primarily attributable to loan growth. The provision for credit losses for off-balance sheet credit exposures was a negative $2.2 million primarily driven by decreases in unfunded commitments. Collectively, the provision for credit losses totaled $1.0 million in the first quarter compared to $12.1 million in the prior quarter and a negative $2.0 million in the first quarter of 2022.

Allocation of Trustmark’s $122.2 million ACL on loans HFI represented 0.80% of commercial loans and 1.54% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 0.98% at March 31, 2023. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

  • Noninterest income increased 13.7% linked-quarter to total $51.4 million, reflecting growth in mortgage banking, insurance and wealth management revenue
  • Net interest income (FTE) totaled $141.1 million in the first quarter, down 6.0% linked-quarter

Revenue in the first quarter totaled $189.0 million, a decline of 1.5% from the prior quarter and an increase of 23.1% from the same quarter in the prior year. The linked-quarter decline primarily reflects lower net interest income offset in part by higher mortgage banking, insurance and wealth management revenue while the year-over-year growth is attributed to higher net interest income offset in part by reduced mortgage banking revenue.

Net interest income (FTE) in the first quarter totaled $141.1 million, resulting in a net interest margin of 3.39%, down 27 basis points from the prior quarter. The contraction of the net interest margin was primarily due to the costs of interest-bearing deposits more than offsetting the increased yields on the loans HFI and HFS portfolio and securities portfolio. Additionally, the margin was impacted by costs associated with the approximately $300 million increase in average on-balance sheet liquidity added during the quarter due to the uncertainty in the broader banking industry.

Noninterest income in the first quarter totaled $51.4 million, an increase of $6.2 million, or 13.7%, from the prior quarter and a decrease of $2.7 million, or 5.1%, year-over-year. The linked-quarter increases in mortgage banking, insurance, and wealth management revenue were offset in part by declines in service charges on deposit accounts and bank card and other fees. The decrease in noninterest income year-over-year is principally due to lower mortgage banking revenue.

Mortgage loan production in the first quarter totaled $361.1 million, down 7.6% from the prior quarter and 33.7% year-over-year. Mortgage banking revenue totaled $7.6 million in the first quarter, an increase of $4.2 million linked-quarter and a decrease of $2.2 million year-over-year. The linked-quarter increase was principally attributable to a decrease in net negative hedge ineffectiveness as well as a decline in runoff of mortgage servicing rights while the year-over-year decline was principally due to a decrease in net hedge ineffectiveness.

Insurance revenue totaled $14.3 million in the first quarter, up $2.3 million, or 19.0%, from the prior quarter and $216 thousand, or 1.5%, 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 $8.8 million, an increase of $701 thousand, or 8.7%, from the prior quarter and a decline of $274 thousand, or 3.0%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year decline reflected reduced brokerage revenue.

Noninterest Expense

  • Salaries and employee benefits expense increased $587 thousand, or 0.8%, linked-quarter
  • Services and fees declined $2.3 million, or 8.2%, linked-quarter
  • Adjusted noninterest expense, which excludes ORE expense, amortization of intangibles, charitable contributions resulting in state tax credits, and litigation settlement expense totaled $127.5 million in the first quarter, down 1.7% from the prior quarter. Please refer to the Consolidated Financial Information, Note 7 – Non-GAAP Financial Measures

Noninterest expense in the first quarter totaled $128.3 million, a decrease of $2.2 million, or 1.6%, when compared to the prior quarter excluding the litigation settlement expense. Salaries and employee benefits increased $587 thousand linked-quarter as declines in salaries and commissions were more than offset by a seasonal increase in payroll taxes. Services and fees declined $2.3 million, or 8.2%, principally due to lower professional fees.

FIT2GROW

“In 2022 we announced FIT2GROW, a comprehensive program of Focus, Innovation and Transformation designed to enhance Trustmark’s ability to grow and serve customers. During the first quarter, we refocused our community bank efforts on commercial, small business, and consumer lines of business to provide additional expertise for our customers and enhance profitable revenue growth. We continue to rollout new technology to enhance the customer experience and improve efficiency and productivity. Additionally, our Atlanta loan production office is now fully functioning and is focused on Commercial Real Estate, Residential Real Estate, Corporate Banking, and Equipment Finance. We look forward to the contributions of these businesses to our financial results going forward,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 26, 2023, 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 10, 2023, in archived format at the same web address or by calling (877) 344-7529, passcode 2946740.

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, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state and national 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, levels of and volatility in crude oil prices, 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 performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract 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, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, 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, changes in our ability to control expenses, 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, 2023
($ in thousands)
(unaudited)
Linked Quarter Year over Year
QUARTERLY AVERAGE BALANCES 3/31/2023 12/31/2022 3/31/2022 $ Change % Change $ Change % Change
Securities AFS-taxable (1)

$

2,187,121

 

$

2,572,675

 

$

3,245,502

 

$

(385,554

)

-15.0

%

$

(1,058,381

)

-32.6

%

Securities AFS-nontaxable

 

4,812

 

 

4,828

 

 

5,127

 

 

(16

)

-0.3

%

 

(315

)

-6.1

%

Securities HTM-taxable (1)

 

1,479,283

 

 

1,268,952

 

 

410,851

 

 

210,331

 

16.6

%

 

1,068,432

 

n/m

 

Securities HTM-nontaxable

 

4,509

 

 

4,514

 

 

7,327

 

 

(5

)

-0.1

%

 

(2,818

)

-38.5

%

Total securities

 

3,675,725

 

 

3,850,969

 

 

3,668,807

 

 

(175,244

)

-4.6

%

 

6,918

 

0.2

%

Paycheck protection program loans (PPP)

 

—

 

 

3,235

 

 

29,009

 

 

(3,235

)

-100.0

%

 

(29,009

)

-100.0

%

Loans (includes loans held for sale)

 

12,530,449

 

 

12,006,661

 

 

10,550,712

 

 

523,788

 

4.4

%

 

1,979,737

 

18.8

%

Fed funds sold and reverse repurchases

 

2,379

 

 

6,566

 

 

56

 

 

(4,187

)

-63.8

%

 

2,323

 

n/m

 

Other earning assets

 

647,760

 

 

375,190

 

 

1,811,713

 

 

272,570

 

72.6

%

 

(1,163,953

)

-64.2

%

Total earning assets

 

16,856,313

 

 

16,242,621

 

 

16,060,297

 

 

613,692

 

3.8

%

 

796,016

 

5.0

%

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

 

(119,978

)

 

(114,948

)

 

(99,390

)

 

(5,030

)

-4.4

%

 

(20,588

)

-20.7

%

Other assets

 

1,762,449

 

 

1,630,085

 

 

1,550,848

 

 

132,364

 

8.1

%

 

211,601

 

13.6

%

Total assets

$

18,498,784

 

$

17,757,758

 

$

17,511,755

 

$

741,026

 

4.2

%

$

987,029

 

5.6

%

 
Interest-bearing demand deposits

$

4,751,154

 

$

4,719,303

 

$

4,429,056

 

$

31,851

 

0.7

%

$

322,098

 

7.3

%

Savings deposits

 

4,193,764

 

 

4,379,673

 

 

4,791,104

 

 

(185,909

)

-4.2

%

 

(597,340

)

-12.5

%

Time deposits

 

1,907,449

 

 

1,152,905

 

 

1,193,435

 

 

754,544

 

65.4

%

 

714,014

 

59.8

%

Total interest-bearing deposits

 

10,852,367

 

 

10,251,881

 

 

10,413,595

 

 

600,486

 

5.9

%

 

438,772

 

4.2

%

Fed funds purchased and repurchases

 

436,535

 

 

549,406

 

 

212,006

 

 

(112,871

)

-20.5

%

 

224,529

 

n/m

 

Other borrowings

 

1,110,843

 

 

530,993

 

 

91,090

 

 

579,850

 

n/m

 

 

1,019,753

 

n/m

 

Subordinated notes

 

123,281

 

 

123,226

 

 

123,061

 

 

55

 

0.0

%

 

220

 

0.2

%

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

—

 

0.0

%

 

—

 

0.0

%

Total interest-bearing liabilities

 

12,584,882

 

 

11,517,362

 

 

10,901,608

 

 

1,067,520

 

9.3

%

 

1,683,274

 

15.4

%

Noninterest-bearing deposits

 

3,813,248

 

 

4,177,113

 

 

4,601,108

 

 

(363,865

)

-8.7

%

 

(787,860

)

-17.1

%

Other liabilities

 

576,826

 

 

569,992

 

 

295,287

 

 

6,834

 

1.2

%

 

281,539

 

95.3

%

Total liabilities

 

16,974,956

 

 

16,264,467

 

 

15,798,003

 

 

710,489

 

4.4

%

 

1,176,953

 

7.5

%

Shareholders' equity

 

1,523,828

 

 

1,493,291

 

 

1,713,752

 

 

30,537

 

2.0

%

 

(189,924

)

-11.1

%

Total liabilities and equity

$

18,498,784

 

$

17,757,758

 

$

17,511,755

 

$

741,026

 

4.2

%

$

987,029

 

5.6

%

 
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
 
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, 2023
($ in thousands)
(unaudited)
 
Linked Quarter Year over Year
PERIOD END BALANCES 3/31/2023 12/31/2022 3/31/2022 $ Change % Change $ Change % Change
Cash and due from banks

$

1,297,144

 

$

734,787

 

$

1,917,564

 

$

562,357

 

76.5

%

$

(620,420

)

-32.4

%

Fed funds sold and reverse repurchases

 

—

 

 

4,000

 

 

—

 

 

(4,000

)

-100.0

%

 

—

 

n/m

 

Securities available for sale (1)

 

1,984,162

 

 

2,024,082

 

 

3,018,246

 

 

(39,920

)

-2.0

%

 

(1,034,084

)

-34.3

%

Securities held to maturity (1)

 

1,474,338

 

 

1,494,514

 

 

607,598

 

 

(20,176

)

-1.4

%

 

866,740

 

n/m

 

PPP loans

 

—

 

 

—

 

 

18,579

 

 

—

 

n/m

 

 

(18,579

)

-100.0

%

Loans held for sale (LHFS)

 

175,926

 

 

135,226

 

 

222,538

 

 

40,700

 

30.1

%

 

(46,612

)

-20.9

%

Loans held for investment (LHFI)

 

12,497,195

 

 

12,204,039

 

 

10,397,129

 

 

293,156

 

2.4

%

 

2,100,066

 

20.2

%

ACL LHFI

 

(122,239

)

 

(120,214

)

 

(98,734

)

 

(2,025

)

-1.7

%

 

(23,505

)

-23.8

%

Net LHFI

 

12,374,956

 

 

12,083,825

 

 

10,298,395

 

 

291,131

 

2.4

%

 

2,076,561

 

20.2

%

Premises and equipment, net

 

223,975

 

 

212,365

 

 

207,301

 

 

11,610

 

5.5

%

 

16,674

 

8.0

%

Mortgage servicing rights

 

127,206

 

 

129,677

 

 

111,050

 

 

(2,471

)

-1.9

%

 

16,156

 

14.5

%

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

—

 

0.0

%

 

—

 

0.0

%

Identifiable intangible assets

 

3,352

 

 

3,640

 

 

4,591

 

 

(288

)

-7.9

%

 

(1,239

)

-27.0

%

Other real estate

 

1,684

 

 

1,986

 

 

3,187

 

 

(302

)

-15.2

%

 

(1,503

)

-47.2

%

Operating lease right-of-use assets

 

35,315

 

 

36,301

 

 

34,048

 

 

(986

)

-2.7

%

 

1,267

 

3.7

%

Other assets

 

794,883

 

 

770,838

 

 

614,217

 

 

24,045

 

3.1

%

 

180,666

 

29.4

%

Total assets

$

18,877,178

 

$

18,015,478

 

$

17,441,551

 

$

861,700

 

4.8

%

$

1,435,627

 

8.2

%

 
Deposits:
Noninterest-bearing

$

3,797,055

 

$

4,093,771

 

$

4,739,102

 

$

(296,716

)

-7.2

%

$

(942,047

)

-19.9

%

Interest-bearing

 

10,986,606

 

 

10,343,877

 

 

10,374,190

 

 

642,729

 

6.2

%

 

612,416

 

5.9

%

Total deposits

 

14,783,661

 

 

14,437,648

 

 

15,113,292

 

 

346,013

 

2.4

%

 

(329,631

)

-2.2

%

Fed funds purchased and repurchases

 

477,980

 

 

449,331

 

 

170,499

 

 

28,649

 

6.4

%

 

307,481

 

n/m

 

Other borrowings

 

1,485,181

 

 

1,050,938

 

 

84,644

 

 

434,243

 

41.3

%

 

1,400,537

 

n/m

 

Subordinated notes

 

123,317

 

 

123,262

 

 

123,097

 

 

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

 

34,596

 

 

36,838

 

 

34,517

 

 

(2,242

)

-6.1

%

 

79

 

0.2

%

Operating lease liabilities

 

37,988

 

 

38,932

 

 

35,912

 

 

(944

)

-2.4

%

 

2,076

 

5.8

%

Other liabilities

 

310,500

 

 

324,405

 

 

186,352

 

 

(13,905

)

-4.3

%

 

124,148

 

66.6

%

Total liabilities

 

17,315,079

 

 

16,523,210

 

 

15,810,169

 

 

791,869

 

4.8

%

 

1,504,910

 

9.5

%

Common stock

 

12,720

 

 

12,705

 

 

12,806

 

 

15

 

0.1

%

 

(86

)

-0.7

%

Capital surplus

 

155,297

 

 

154,645

 

 

167,094

 

 

652

 

0.4

%

 

(11,797

)

-7.1

%

Retained earnings

 

1,636,463

 

 

1,600,321

 

 

1,600,138

 

 

36,142

 

2.3

%

 

36,325

 

2.3

%

Accumulated other comprehensive
income (loss), net of tax

 

(242,381

)

 

(275,403

)

 

(148,656

)

 

33,022

 

12.0

%

 

(93,725

)

-63.0

%

Total shareholders' equity

 

1,562,099

 

 

1,492,268

 

 

1,631,382

 

 

69,831

 

4.7

%

 

(69,283

)

-4.2

%

Total liabilities and equity

$

18,877,178

 

$

18,015,478

 

$

17,441,551

 

$

861,700

 

4.8

%

$

1,435,627

 

8.2

%

 
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
 
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, 2023
($ in thousands except per share data)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
INCOME STATEMENTS 3/31/2023 12/31/2022 3/31/2022 $ Change % Change $ Change % Change
Interest and fees on LHFS & LHFI-FTE

$

178,967

 

$

159,566

 

$

93,252

 

$

19,401

 

12.2

%

$

85,715

 

91.9

%

Interest and fees on PPP loans

 

—

 

 

101

 

 

168

 

 

(101

)

-100.0

%

 

(168

)

-100.0

%

Interest on securities-taxable

 

16,761

 

 

16,577

 

 

12,357

 

 

184

 

1.1

%

 

4,404

 

35.6

%

Interest on securities-tax exempt-FTE

 

92

 

 

93

 

 

122

 

 

(1

)

-1.1

%

 

(30

)

-24.6

%

Interest on fed funds sold and reverse
repurchases

 

30

 

 

71

 

 

—

 

 

(41

)

-57.7

%

 

30

 

n/m

 

Other interest income

 

6,527

 

 

3,556

 

 

817

 

 

2,971

 

83.5

%

 

5,710

 

n/m

 

Total interest income-FTE

 

202,377

 

 

179,964

 

 

106,716

 

 

22,413

 

12.5

%

 

95,661

 

89.6

%

Interest on deposits

 

40,898

 

 

18,438

 

 

2,760

 

 

22,460

 

n/m

 

 

38,138

 

n/m

 

Interest on fed funds purchased and repurchases

 

4,832

 

 

4,762

 

 

70

 

 

70

 

1.5

%

 

4,762

 

n/m

 

Other interest expense

 

15,575

 

 

6,730

 

 

1,539

 

 

8,845

 

n/m

 

 

14,036

 

n/m

 

Total interest expense

 

61,305

 

 

29,930

 

 

4,369

 

 

31,375

 

n/m

 

 

56,936

 

n/m

 

Net interest income-FTE

 

141,072

 

 

150,034

 

 

102,347

 

 

(8,962

)

-6.0

%

 

38,725

 

37.8

%

Provision for credit losses, LHFI

 

3,244

 

 

6,902

 

 

(860

)

 

(3,658

)

-53.0

%

 

4,104

 

n/m

 

Provision for credit losses, off-balance sheet
credit exposures

 

(2,242

)

 

5,215

 

 

(1,106

)

 

(7,457

)

n/m

 

 

(1,136

)

n/m

 

Net interest income after provision-FTE

 

140,070

 

 

137,917

 

 

104,313

 

 

2,153

 

1.6

%

 

35,757

 

34.3

%

Service charges on deposit accounts

 

10,336

 

 

11,162

 

 

9,451

 

 

(826

)

-7.4

%

 

885

 

9.4

%

Bank card and other fees

 

7,803

 

 

8,191

 

 

8,442

 

 

(388

)

-4.7

%

 

(639

)

-7.6

%

Mortgage banking, net

 

7,639

 

 

3,408

 

 

9,873

 

 

4,231

 

n/m

 

 

(2,234

)

-22.6

%

Insurance commissions

 

14,305

 

 

12,019

 

 

14,089

 

 

2,286

 

19.0

%

 

216

 

1.5

%

Wealth management

 

8,780

 

 

8,079

 

 

9,054

 

 

701

 

8.7

%

 

(274

)

-3.0

%

Other, net

 

2,514

 

 

2,311

 

 

3,206

 

 

203

 

8.8

%

 

(692

)

-21.6

%

Total noninterest income

 

51,377

 

 

45,170

 

 

54,115

 

 

6,207

 

13.7

%

 

(2,738

)

-5.1

%

Salaries and employee benefits

 

74,056

 

 

73,469

 

 

69,585

 

 

587

 

0.8

%

 

4,471

 

6.4

%

Services and fees (2)

 

25,426

 

 

27,709

 

 

25,314

 

 

(2,283

)

-8.2

%

 

112

 

0.4

%

Net occupancy-premises

 

7,629

 

 

7,898

 

 

7,079

 

 

(269

)

-3.4

%

 

550

 

7.8

%

Equipment expense

 

6,405

 

 

6,268

 

 

6,061

 

 

137

 

2.2

%

 

344

 

5.7

%

Litigation settlement expense (1)

 

—

 

 

100,750

 

 

—

 

 

(100,750

)

-100.0

%

 

—

 

n/m

 

Other expense (2)

 

14,811

 

 

15,135

 

 

13,480

 

 

(324

)

-2.1

%

 

1,331

 

9.9

%

Total noninterest expense

 

128,327

 

 

231,229

 

 

121,519

 

 

(102,902

)

-44.5

%

 

6,808

 

5.6

%

Income (loss) before income taxes and tax eq adj

 

63,120

 

 

(48,142

)

 

36,909

 

 

111,262

 

n/m

 

 

26,211

 

71.0

%

Tax equivalent adjustment

 

3,477

 

 

3,451

 

 

3,003

 

 

26

 

0.8

%

 

474

 

15.8

%

Income (loss) before income taxes

 

59,643

 

 

(51,593

)

 

33,906

 

 

111,236

 

n/m

 

 

25,737

 

75.9

%

Income taxes

 

9,343

 

 

(17,530

)

 

4,695

 

 

26,873

 

n/m

 

 

4,648

 

99.0

%

Net income (loss)

$

50,300

 

$

(34,063

)

$

29,211

 

$

84,363

 

n/m

 

$

21,089

 

72.2

%

 
Per share data
Earnings (loss) per share - basic

$

0.82

 

$

(0.56

)

$

0.47

 

$

1.38

 

n/m

 

$

0.35

 

74.5

%

 
Earnings (loss) per share - diluted

$

0.82

 

$

(0.56

)

$

0.47

 

$

1.38

 

n/m

 

$

0.35

 

74.5

%

 
Dividends per share

$

0.23

 

$

0.23

 

$

0.23

 

 

—

 

0.0

%

 

—

 

0.0

%

 
Weighted average shares outstanding
Basic

 

61,011,059

 

 

60,969,400

 

 

61,514,395

 

 
Diluted

 

61,193,275

 

 

61,173,249

 

 

61,709,797

 

 
Period end shares outstanding

 

61,048,516

 

 

60,977,686

 

 

61,463,392

 

 
(1) See Note 1 - Litigation Settlement in the Notes to Consolidated Financials for additional information.
(2) During the first quarter of 2023, Trustmark reclassified its debit card transaction fees from other expense to services and fees. Prior periods have been reclassified accordingly.
 
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, 2023
($ in thousands)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
NONPERFORMING ASSETS (1) 3/31/2023 12/31/2022 3/31/2022 $ Change % Change $ Change % Change
Nonaccrual LHFI
Alabama

$

10,919

 

$

12,300

 

$

7,506

 

$

(1,381

)

-11.2

%

$

3,413

 

45.5

%

Florida

 

256

 

 

227

 

 

310

 

 

29

 

12.8

%

 

(54

)

-17.4

%

Mississippi (2)

 

32,560

 

 

24,683

 

 

21,318

 

 

7,877

 

31.9

%

 

11,242

 

52.7

%

Tennessee (3)

 

5,416

 

 

5,566

 

 

9,266

 

 

(150

)

-2.7

%

 

(3,850

)

-41.5

%

Texas

 

23,224

 

 

23,196

 

 

25,999

 

 

28

 

0.1

%

 

(2,775

)

-10.7

%

Total nonaccrual LHFI

 

72,375

 

 

65,972

 

 

64,399

 

 

6,403

 

9.7

%

 

7,976

 

12.4

%

Other real estate
Alabama

 

—

 

 

194

 

 

—

 

 

(194

)

-100.0

%

 

—

 

n/m

 

Mississippi (2)

 

1,495

 

 

1,769

 

 

3,187

 

 

(274

)

-15.5

%

 

(1,692

)

-53.1

%

Tennessee (3)

 

189

 

 

23

 

 

—

 

 

166

 

n/m

 

 

189

 

n/m

 

Total other real estate

 

1,684

 

 

1,986

 

 

3,187

 

 

(302

)

-15.2

%

 

(1,503

)

-47.2

%

Total nonperforming assets

$

74,059

 

$

67,958

 

$

67,586

 

$

6,101

 

9.0

%

$

6,473

 

9.6

%

 
LOANS PAST DUE OVER 90 DAYS (1)
LHFI

$

2,255

 

$

3,929

 

$

1,503

 

$

(1,674

)

-42.6

%

$

752

 

50.0

%

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

$

41,468

 

$

49,320

 

$

62,078

 

$

(7,852

)

-15.9

%

$

(20,610

)

-33.2

%

 
Quarter Ended Linked Quarter Year over Year
ACL LHFI (1) 3/31/2023 12/31/2022 3/31/2022 $ Change % Change $ Change % Change
Beginning Balance

$

120,214

 

$

115,050

 

$

99,457

 

$

5,164

 

4.5

%

$

20,757

 

20.9

%

Provision for credit losses, LHFI

 

3,244

 

 

6,902

 

 

(860

)

 

(3,658

)

-53.0

%

 

4,104

 

n/m

 

Charge-offs

 

(2,996

)

 

(3,893

)

 

(2,242

)

 

897

 

23.0

%

 

(754

)

-33.6

%

Recoveries

 

1,777

 

 

2,155

 

 

2,379

 

 

(378

)

-17.5

%

 

(602

)

-25.3

%

Net (charge-offs) recoveries

 

(1,219

)

 

(1,738

)

 

137

 

 

519

 

29.9

%

 

(1,356

)

n/m

 

Ending Balance

$

122,239

 

$

120,214

 

$

98,734

 

$

2,025

 

1.7

%

$

23,505

 

23.8

%

 
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama

$

(268

)

$

98

 

$

699

 

$

(366

)

n/m

 

$

(967

)

n/m

 

Florida

 

(36

)

 

(60

)

 

(26

)

 

24

 

40.0

%

 

(10

)

-38.5

%

Mississippi (2)

 

(775

)

 

(1,657

)

 

(88

)

 

882

 

53.2

%

 

(687

)

n/m

 

Tennessee (3)

 

(124

)

 

(195

)

 

(424

)

 

71

 

36.4

%

 

300

 

70.8

%

Texas

 

(16

)

 

76

 

 

(24

)

 

(92

)

n/m

 

 

8

 

33.3

%

Total net (charge-offs) recoveries

$

(1,219

)

$

(1,738

)

$

137

 

$

519

 

29.9

%

$

(1,356

)

n/m

 

 
(1) Excludes PPP loans.
(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, 2023
($ in thousands)
(unaudited)
Quarter Ended
AVERAGE BALANCES 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Securities AFS-taxable (1)

$

2,187,121

 

$

2,572,675

 

$

2,824,254

 

$

3,094,364

 

$

3,245,502

 

Securities AFS-nontaxable

 

4,812

 

 

4,828

 

 

4,928

 

 

5,110

 

 

5,127

 

Securities HTM-taxable (1)

 

1,479,283

 

 

1,268,952

 

 

1,140,685

 

 

811,599

 

 

410,851

 

Securities HTM-nontaxable

 

4,509

 

 

4,514

 

 

5,057

 

 

5,630

 

 

7,327

 

Total securities

 

3,675,725

 

 

3,850,969

 

 

3,974,924

 

 

3,916,703

 

 

3,668,807

 

PPP loans

 

—

 

 

3,235

 

 

9,821

 

 

17,746

 

 

29,009

 

Loans (includes loans held for sale)

 

12,530,449

 

 

12,006,661

 

 

11,459,551

 

 

10,910,178

 

 

10,550,712

 

Fed funds sold and reverse repurchases

 

2,379

 

 

6,566

 

 

226

 

 

110

 

 

56

 

Other earning assets

 

647,760

 

 

375,190

 

 

325,620

 

 

1,139,312

 

 

1,811,713

 

Total earning assets

 

16,856,313

 

 

16,242,621

 

 

15,770,142

 

 

15,984,049

 

 

16,060,297

 

ACL LHFI

 

(119,978

)

 

(114,948

)

 

(102,951

)

 

(99,106

)

 

(99,390

)

Other assets

 

1,762,449

 

 

1,630,085

 

 

1,576,653

 

 

1,513,127

 

 

1,550,848

 

Total assets

$

18,498,784

 

$

17,757,758

 

$

17,243,844

 

$

17,398,070

 

$

17,511,755

 

 
Interest-bearing demand deposits

$

4,751,154

 

$

4,719,303

 

$

4,613,733

 

$

4,578,235

 

$

4,429,056

 

Savings deposits

 

4,193,764

 

 

4,379,673

 

 

4,514,579

 

 

4,638,849

 

 

4,791,104

 

Time deposits

 

1,907,449

 

 

1,152,905

 

 

1,111,440

 

 

1,159,065

 

 

1,193,435

 

Total interest-bearing deposits

 

10,852,367

 

 

10,251,881

 

 

10,239,752

 

 

10,376,149

 

 

10,413,595

 

Fed funds purchased and repurchases

 

436,535

 

 

549,406

 

 

249,809

 

 

118,753

 

 

212,006

 

Other borrowings

 

1,110,843

 

 

530,993

 

 

88,697

 

 

80,283

 

 

91,090

 

Subordinated notes

 

123,281

 

 

123,226

 

 

123,171

 

 

123,116

 

 

123,061

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

Total interest-bearing liabilities

 

12,584,882

 

 

11,517,362

 

 

10,763,285

 

 

10,760,157

 

 

10,901,608

 

Noninterest-bearing deposits

 

3,813,248

 

 

4,177,113

 

 

4,444,370

 

 

4,590,338

 

 

4,601,108

 

Other liabilities

 

576,826

 

 

569,992

 

 

429,720

 

 

439,266

 

 

295,287

 

Total liabilities

 

16,974,956

 

 

16,264,467

 

 

15,637,375

 

 

15,789,761

 

 

15,798,003

 

Shareholders' equity

 

1,523,828

 

 

1,493,291

 

 

1,606,469

 

 

1,608,309

 

 

1,713,752

 

Total liabilities and equity

$

18,498,784

 

$

17,757,758

 

$

17,243,844

 

$

17,398,070

 

$

17,511,755

 

 
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
 
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
 
 
PERIOD END BALANCES 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Cash and due from banks

$

1,297,144

 

$

734,787

 

$

479,637

 

$

742,461

 

$

1,917,564

 

Fed funds sold and reverse repurchases

 

—

 

 

4,000

 

 

10,098

 

 

—

 

 

—

 

Securities available for sale (1)

 

1,984,162

 

 

2,024,082

 

 

2,444,486

 

 

2,644,364

 

 

3,018,246

 

Securities held to maturity (1)

 

1,474,338

 

 

1,494,514

 

 

1,156,985

 

 

1,137,754

 

 

607,598

 

PPP loans

 

—

 

 

—

 

 

4,798

 

 

12,549

 

 

18,579

 

LHFS

 

175,926

 

 

135,226

 

 

165,213

 

 

190,186

 

 

222,538

 

LHFI

 

12,497,195

 

 

12,204,039

 

 

11,586,064

 

 

10,944,840

 

 

10,397,129

 

ACL LHFI

 

(122,239

)

 

(120,214

)

 

(115,050

)

 

(103,140

)

 

(98,734

)

Net LHFI

 

12,374,956

 

 

12,083,825

 

 

11,471,014

 

 

10,841,700

 

 

10,298,395

 

Premises and equipment, net

 

223,975

 

 

212,365

 

 

210,761

 

 

207,914

 

 

207,301

 

Mortgage servicing rights

 

127,206

 

 

129,677

 

 

132,615

 

 

121,014

 

 

111,050

 

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

Identifiable intangible assets

 

3,352

 

 

3,640

 

 

3,952

 

 

4,264

 

 

4,591

 

Other real estate

 

1,684

 

 

1,986

 

 

2,971

 

 

3,034

 

 

3,187

 

Operating lease right-of-use assets

 

35,315

 

 

36,301

 

 

37,282

 

 

34,684

 

 

34,048

 

Other assets

 

794,883

 

 

770,838

 

 

686,585

 

 

627,349

 

 

614,217

 

Total assets

$

18,877,178

 

$

18,015,478

 

$

17,190,634

 

$

16,951,510

 

$

17,441,551

 

 
Deposits:
Noninterest-bearing

$

3,797,055

 

$

4,093,771

 

$

4,358,805

 

$

4,509,472

 

$

4,739,102

 

Interest-bearing

 

10,986,606

 

 

10,343,877

 

 

10,066,375

 

 

10,260,696

 

 

10,374,190

 

Total deposits

 

14,783,661

 

 

14,437,648

 

 

14,425,180

 

 

14,770,168

 

 

15,113,292

 

Fed funds purchased and repurchases

 

477,980

 

 

449,331

 

 

544,068

 

 

70,157

 

 

170,499

 

Other borrowings

 

1,485,181

 

 

1,050,938

 

 

223,172

 

 

72,553

 

 

84,644

 

Subordinated notes

 

123,317

 

 

123,262

 

 

123,207

 

 

123,152

 

 

123,097

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

ACL on off-balance sheet credit exposures

 

34,596

 

 

36,838

 

 

31,623

 

 

32,949

 

 

34,517

 

Operating lease liabilities

 

37,988

 

 

38,932

 

 

39,797

 

 

37,108

 

 

35,912

 

Other liabilities

 

310,500

 

 

324,405

 

 

232,786

 

 

196,871

 

 

186,352

 

Total liabilities

 

17,315,079

 

 

16,523,210

 

 

15,681,689

 

 

15,364,814

 

 

15,810,169

 

Common stock

 

12,720

 

 

12,705

 

 

12,700

 

 

12,752

 

 

12,806

 

Capital surplus

 

155,297

 

 

154,645

 

 

154,150

 

 

160,876

 

 

167,094

 

Retained earnings

 

1,636,463

 

 

1,600,321

 

 

1,648,507

 

 

1,620,210

 

 

1,600,138

 

Accumulated other comprehensive income (loss),
net of tax

 

(242,381

)

 

(275,403

)

 

(306,412

)

 

(207,142

)

 

(148,656

)

Total shareholders' equity

 

1,562,099

 

 

1,492,268

 

 

1,508,945

 

 

1,586,696

 

 

1,631,382

 

Total liabilities and equity

$

18,877,178

 

$

18,015,478

 

$

17,190,634

 

$

16,951,510

 

$

17,441,551

 

 
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
 
See Notes to Consolidated Financials
 
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands except per share data)
(unaudited)
 
Quarter Ended
INCOME STATEMENTS 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Interest and fees on LHFS & LHFI-FTE

$

178,967

 

$

159,566

 

$

129,395

 

$

103,033

 

$

93,252

 

Interest and fees on PPP loans

 

—

 

 

101

 

 

186

 

 

184

 

 

168

 

Interest on securities-taxable

 

16,761

 

 

16,577

 

 

16,222

 

 

14,561

 

 

12,357

 

Interest on securities-tax exempt-FTE

 

92

 

 

93

 

 

100

 

 

107

 

 

122

 

Interest on fed funds sold and reverse repurchases

 

30

 

 

71

 

 

2

 

 

1

 

 

—

 

Other interest income

 

6,527

 

 

3,556

 

 

1,493

 

 

2,214

 

 

817

 

Total interest income-FTE

 

202,377

 

 

179,964

 

 

147,398

 

 

120,100

 

 

106,716

 

Interest on deposits

 

40,898

 

 

18,438

 

 

5,097

 

 

2,774

 

 

2,760

 

Interest on fed funds purchased and repurchases

 

4,832

 

 

4,762

 

 

1,225

 

 

70

 

 

70

 

Other interest expense

 

15,575

 

 

6,730

 

 

1,996

 

 

1,664

 

 

1,539

 

Total interest expense

 

61,305

 

 

29,930

 

 

8,318

 

 

4,508

 

 

4,369

 

Net interest income-FTE

 

141,072

 

 

150,034

 

 

139,080

 

 

115,592

 

 

102,347

 

Provision for credit losses, LHFI

 

3,244

 

 

6,902

 

 

12,919

 

 

2,716

 

 

(860

)

Provision for credit losses, off-balance sheet
credit exposures

 

(2,242

)

 

5,215

 

 

(1,326

)

 

(1,568

)

 

(1,106

)

Net interest income after provision-FTE

 

140,070

 

 

137,917

 

 

127,487

 

 

114,444

 

 

104,313

 

Service charges on deposit accounts

 

10,336

 

 

11,162

 

 

11,318

 

 

10,226

 

 

9,451

 

Bank card and other fees

 

7,803

 

 

8,191

 

 

9,305

 

 

10,167

 

 

8,442

 

Mortgage banking, net

 

7,639

 

 

3,408

 

 

6,876

 

 

8,149

 

 

9,873

 

Insurance commissions

 

14,305

 

 

12,019

 

 

13,911

 

 

13,702

 

 

14,089

 

Wealth management

 

8,780

 

 

8,079

 

 

8,778

 

 

9,102

 

 

9,054

 

Other, net

 

2,514

 

 

2,311

 

 

2,418

 

 

1,907

 

 

3,206

 

Total noninterest income

 

51,377

 

 

45,170

 

 

52,606

 

 

53,253

 

 

54,115

 

Salaries and employee benefits

 

74,056

 

 

73,469

 

 

72,707

 

 

71,679

 

 

69,585

 

Services and fees (2)

 

25,426

 

 

27,709

 

 

26,787

 

 

25,659

 

 

25,314

 

Net occupancy-premises

 

7,629

 

 

7,898

 

 

7,395

 

 

6,892

 

 

7,079

 

Equipment expense

 

6,405

 

 

6,268

 

 

6,072

 

 

6,047

 

 

6,061

 

Litigation settlement expense (1)

 

—

 

 

100,750

 

 

—

 

 

—

 

 

—

 

Other expense (2)

 

14,811

 

 

15,135

 

 

13,737

 

 

13,490

 

 

13,480

 

Total noninterest expense

 

128,327

 

 

231,229

 

 

126,698

 

 

123,767

 

 

121,519

 

Income (loss) before income taxes and tax eq adj

 

63,120

 

 

(48,142

)

 

53,395

 

 

43,930

 

 

36,909

 

Tax equivalent adjustment

 

3,477

 

 

3,451

 

 

2,975

 

 

2,916

 

 

3,003

 

Income (loss) before income taxes

 

59,643

 

 

(51,593

)

 

50,420

 

 

41,014

 

 

33,906

 

Income taxes

 

9,343

 

 

(17,530

)

 

7,965

 

 

6,730

 

 

4,695

 

Net income (loss)

$

50,300

 

$

(34,063

)

$

42,455

 

$

34,284

 

$

29,211

 

 
Per share data
Earnings (loss) per share - basic

$

0.82

 

$

(0.56

)

$

0.69

 

$

0.56

 

$

0.47

 

 
Earnings (loss) per share - diluted

$

0.82

 

$

(0.56

)

$

0.69

 

$

0.56

 

$

0.47

 

 
Dividends per share

$

0.23

 

$

0.23

 

$

0.23

 

$

0.23

 

$

0.23

 

 
Weighted average shares outstanding
Basic

 

61,011,059

 

 

60,969,400

 

 

61,114,804

 

 

61,378,226

 

 

61,514,395

 

 
Diluted

 

61,193,275

 

 

61,173,249

 

 

61,318,715

 

 

61,546,285

 

 

61,709,797

 

 
Period end shares outstanding

 

61,048,516

 

 

60,977,686

 

 

60,953,864

 

 

61,201,123

 

 

61,463,392

 

 
(1) See Note 1 - Litigation Settlement in the Notes to Consolidated Financials for additional information.
(2) During the first quarter of 2023, Trustmark reclassified its debit card transaction fees from other expense to services and fees. Prior periods have been reclassified accordingly.
 
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
 
 
Quarter Ended
NONPERFORMING ASSETS (1) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Nonaccrual LHFI
Alabama

$

10,919

 

$

12,300

 

$

12,710

 

$

2,698

 

$

7,506

 

Florida

 

256

 

 

227

 

 

227

 

 

233

 

 

310

 

Mississippi (2)

 

32,560

 

 

24,683

 

 

23,517

 

 

23,039

 

 

21,318

 

Tennessee (3)

 

5,416

 

 

5,566

 

 

5,120

 

 

9,500

 

 

9,266

 

Texas

 

23,224

 

 

23,196

 

 

26,353

 

 

26,582

 

 

25,999

 

Total nonaccrual LHFI

 

72,375

 

 

65,972

 

 

67,927

 

 

62,052

 

 

64,399

 

Other real estate
Alabama

 

—

 

 

194

 

 

217

 

 

84

 

 

—

 

Mississippi (2)

 

1,495

 

 

1,769

 

 

2,754

 

 

2,950

 

 

3,187

 

Tennessee (3)

 

189

 

 

23

 

 

—

 

 

—

 

 

—

 

Total other real estate

 

1,684

 

 

1,986

 

 

2,971

 

 

3,034

 

 

3,187

 

Total nonperforming assets

$

74,059

 

$

67,958

 

$

70,898

 

$

65,086

 

$

67,586

 

 
LOANS PAST DUE OVER 90 DAYS (1)
LHFI

$

2,255

 

$

3,929

 

$

1,842

 

$

1,347

 

$

1,503

 

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

$

41,468

 

$

49,320

 

$

48,313

 

$

51,164

 

$

62,078

 

 
 
Quarter Ended
ACL LHFI (1) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Beginning Balance

$

120,214

 

$

115,050

 

$

103,140

 

$

98,734

 

$

99,457

 

Provision for credit losses, LHFI

 

3,244

 

 

6,902

 

 

12,919

 

 

2,716

 

 

(860

)

Charge-offs

 

(2,996

)

 

(3,893

)

 

(2,920

)

 

(2,277

)

 

(2,242

)

Recoveries

 

1,777

 

 

2,155

 

 

1,911

 

 

3,967

 

 

2,379

 

Net (charge-offs) recoveries

 

(1,219

)

 

(1,738

)

 

(1,009

)

 

1,690

 

 

137

 

Ending Balance

$

122,239

 

$

120,214

 

$

115,050

 

$

103,140

 

$

98,734

 

 
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama

$

(268

)

$

98

 

$

93

 

$

1,129

 

$

699

 

Florida

 

(36

)

 

(60

)

 

(23

)

 

761

 

 

(26

)

Mississippi (2)

 

(775

)

 

(1,657

)

 

(702

)

 

(266

)

 

(88

)

Tennessee (3)

 

(124

)

 

(195

)

 

(202

)

 

31

 

 

(424

)

Texas

 

(16

)

 

76

 

 

(175

)

 

35

 

 

(24

)

Total net (charge-offs) recoveries

$

(1,219

)

$

(1,738

)

$

(1,009

)

$

1,690

 

$

137

 

 
(1) Excludes PPP loans.
(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, 2023
($ in thousands)
(unaudited)
Quarter Ended
FINANCIAL RATIOS AND OTHER DATA 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Return on average equity

 

13.39

%

 

-9.05

%

 

10.48

%

 

8.55

%

 

6.91

%

Return on average tangible equity

 

18.03

%

 

-12.14

%

 

13.90

%

 

11.36

%

 

9.05

%

Return on average assets

 

1.10

%

 

-0.76

%

 

0.98

%

 

0.79

%

 

0.68

%

Interest margin - Yield - FTE

 

4.87

%

 

4.40

%

 

3.71

%

 

3.01

%

 

2.69

%

Interest margin - Cost

 

1.47

%

 

0.73

%

 

0.21

%

 

0.11

%

 

0.11

%

Net interest margin - FTE

 

3.39

%

 

3.66

%

 

3.50

%

 

2.90

%

 

2.58

%

Efficiency ratio (1)

 

65.60

%

 

65.85

%

 

64.96

%

 

71.89

%

 

76.44

%

Full-time equivalent employees

 

2,758

 

 

2,738

 

 

2,717

 

 

2,727

 

 

2,725

 

 
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans

 

0.04

%

 

0.06

%

 

0.03

%

 

-0.06

%

 

-0.01

%

Provision for credit losses, LHFI / average loans

 

0.10

%

 

0.23

%

 

0.45

%

 

0.10

%

 

-0.03

%

Nonaccrual LHFI / (LHFI + LHFS)

 

0.57

%

 

0.53

%

 

0.58

%

 

0.56

%

 

0.61

%

Nonperforming assets / (LHFI + LHFS)

 

0.58

%

 

0.55

%

 

0.60

%

 

0.58

%

 

0.64

%

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

 

0.58

%

 

0.55

%

 

0.60

%

 

0.58

%

 

0.64

%

ACL LHFI / LHFI

 

0.98

%

 

0.99

%

 

0.99

%

 

0.94

%

 

0.95

%

ACL LHFI-commercial / commercial LHFI

 

0.80

%

 

0.85

%

 

0.93

%

 

0.88

%

 

0.95

%

ACL LHFI-consumer / consumer and
home mortgage LHFI

 

1.54

%

 

1.41

%

 

1.20

%

 

1.14

%

 

0.96

%

ACL LHFI / nonaccrual LHFI

 

168.90

%

 

182.22

%

 

169.37

%

 

166.22

%

 

153.32

%

ACL LHFI / nonaccrual LHFI
(excl individually analyzed loans)

 

320.80

%

 

399.19

%

 

466.03

%

 

475.27

%

 

484.01

%

 
CAPITAL RATIOS
Total equity / total assets

 

8.28

%

 

8.28

%

 

8.78

%

 

9.36

%

 

9.35

%

Tangible equity / tangible assets

 

6.35

%

 

6.27

%

 

6.67

%

 

7.23

%

 

7.29

%

Tangible equity / risk-weighted assets

 

7.94

%

 

7.61

%

 

8.15

%

 

9.16

%

 

9.79

%

Tier 1 leverage ratio

 

8.29

%

 

8.47

%

 

9.01

%

 

8.80

%

 

8.66

%

Common equity tier 1 capital ratio

 

9.76

%

 

9.74

%

 

10.63

%

 

11.01

%

 

11.23

%

Tier 1 risk-based capital ratio

 

10.17

%

 

10.15

%

 

11.06

%

 

11.47

%

 

11.70

%

Total risk-based capital ratio

 

11.95

%

 

11.91

%

 

12.85

%

 

13.26

%

 

13.53

%

 
STOCK PERFORMANCE
Market value-Close

$

24.70

 

$

34.91

 

$

30.63

 

$

29.19

 

$

30.39

 

Book value

$

25.59

 

$

24.47

 

$

24.76

 

$

25.93

 

$

26.54

 

Tangible book value

$

19.24

 

$

18.11

 

$

18.39

 

$

19.58

 

$

20.22

 

 
(1) See Note 7 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2) Excludes PPP loans.
 
See Notes to Consolidated Financials
 

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2023
($ in thousands)
(unaudited)

Note 1 - Litigation Settlement

As previously announced, on December 31, 2022, Trustmark National Bank (“Trustmark”) agreed to a settlement in principle (the “Settlement”) relating to litigation involving the Stanford Financial Group that includes a lawsuit initially filed in the District Court of Harris County, Texas on August 23, 2009 and also includes other subsequently-filed Stanford-related lawsuits. Trustmark Corporation, the parent company of Trustmark, has provided disclosure relating to these matters in its current report on Form 8-K filed on January 3, 2023, and in its periodic reports on Forms 10-K and 10-Q throughout the pendency of these actions.

The parties to the Settlement are, on the one hand, (i) Ralph S. Janvey, solely in his capacity as the court-appointed receiver (the “Receiver”) for the Stanford Receivership Estate; (ii) the Official Stanford Investors Committee; (iii) each of the plaintiffs in the Rotstain and Smith Actions (as defined below); and, on the other hand, (iv) Trustmark.

Under the terms of the Settlement, the parties agreed to settle and dismiss Rotstain, et al. v. Trustmark National Bank, et al., CA No. 4-22-CV-00800 (S.D. Tex.) (the “Rotstain Action”), Smith et al. v. Independent Bank, et al., CA No. 4-20-CV-00675 (S.D. Tex.) (the “Smith Action”), and all current or future claims arising from or related to Stanford. In addition, the Settlement provides that the parties will request dismissal of Jackson, et al., v. Cox, et al., CA No. 3:10-CV-0328 (N.D. Tex.) (the “Jackson Action” and, collectively with the Rotstain Action and the Smith Action, the “Actions”) pursuant to the terms of the bar orders described below. If the Settlement, including the bar orders described below, is approved by the Court and is not subject to further appeal, Trustmark will make a one-time cash payment of $100.0 million to the Receiver. Trustmark was relieved of pre-trial deadlines and the February 27, 2023 trial setting in the Rotstain Action pending final Court approval of a Settlement Agreement reflecting the terms of the Settlement and pending entry of the bar orders. The Smith and Jackson Actions are currently stayed.

The Settlement included the parties’ agreement to seek the Northern District of Texas District Court’s entry of bar orders prohibiting any continued or future claims against Trustmark and its related parties relating to Stanford, whether asserted to date or not. The bar orders therefore would prohibit all litigation relating to Stanford described in Trustmark Corporation’s SEC periodic reports, including the Actions and any pending matters, as well as any actions relating to Stanford that may be brought in the future. Final Court approval of these bar orders is a condition of the Settlement.

The Settlement was also subject to the execution and delivery of a definitive Settlement Agreement reflecting the terms of the Settlement, which was fully executed by the parties on January 13, 2023, and notice to Stanford’s investor claimants, which the Receiver has effectuated. The Settlement is also subject to final, non-appealable approval by the U.S. District Court for the Northern District of Texas. That Court has scheduled a hearing to approve the Settlement for May 3, 2023, but the timing of any final decision by the Court is subject to the discretion of the Court and any appeal. Robert Allen Stanford (founder of the Stanford Financial Group) is the only person or entity who filed an objection to the Settlement. The Court has previously overruled objections filed by Mr. Stanford in connection with prior Stanford-related settlements. While Trustmark believes that the Settlement is consistent with the terms of prior Stanford-related settlements that have been approved by the Court and were not successfully appealed, it is possible that the Court may decide not to approve the Settlement Agreement or that the Fifth Circuit Court of Appeals could decide to accept an appeal thereof.

The Settlement Agreement provides that Trustmark makes no admission of liability or wrongdoing in connection with any Stanford matter. As has been the case throughout the pendency of the Actions, Trustmark expressly denies any liability or wrongdoing with respect to any matter alleged in regard of the multi-billion-dollar Ponzi scheme operated by Stanford for almost 20 years. Trustmark’s relationship with Stanford consisted of ordinary banking services provided to business deposit customers.

Trustmark and Trustmark Corporation determined that it was in the best interest of Trustmark, Trustmark Corporation and the shareholders of Trustmark Corporation to enter into the Settlement and the Settlement Agreement to eliminate the risk, ongoing expense, uncertainty as to ultimate outcome, and imposition on management and the business of Trustmark of further litigation of the Actions and related Stanford claims.

As the time of the entry into the Settlement, Trustmark Corporation recognized $100.0 million of litigation settlement expense, as well as an additional $750 thousand in legal fees, which were included in noninterest expense related to the Stanford litigation during the fourth quarter of 2022. Trustmark Corporation expects that the Settlement will be tax deductible. Trustmark remains substantially above levels considered to be well-capitalized under all relevant standards.

The foregoing description of the Settlement Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Settlement Agreement, a copy of which was filed as an exhibit to Trustmark Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed on February 16, 2023.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2023
($ in thousands)
(unaudited)

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:

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

SECURITIES AVAILABLE FOR SALE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

386,903

 

 

$

391,513

 

 

$

416,278

 

 

$

419,696

 

 

$

361,822

 

U.S. Government agency obligations

 

 

7,254

 

 

 

7,766

 

 

 

9,116

 

 

 

11,947

 

 

 

12,623

 

Obligations of states and political subdivisions

 

 

4,907

 

 

 

4,862

 

 

 

4,763

 

 

 

5,179

 

 

 

5,359

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

26,851

 

 

 

27,097

 

 

 

28,164

 

 

 

32,240

 

 

 

35,117

 

Issued by FNMA and FHLMC

 

 

1,317,848

 

 

 

1,345,463

 

 

 

1,718,057

 

 

 

1,888,546

 

 

 

2,038,331

 

Other residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

108,192

 

 

 

115,140

 

 

 

126,138

 

 

 

144,158

 

 

 

164,506

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

132,207

 

 

 

132,241

 

 

 

141,970

 

 

 

142,598

 

 

 

400,488

 

Total securities available for sale

 

$

1,984,162

 

 

$

2,024,082

 

 

$

2,444,486

 

 

$

2,644,364

 

 

$

3,018,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SECURITIES HELD TO MATURITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

28,486

 

 

$

28,295

 

 

$

—

 

 

$

—

 

 

$

—

 

Obligations of states and political subdivisions

 

 

4,507

 

 

 

4,510

 

 

 

4,512

 

 

 

5,320

 

 

 

7,324

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

4,336

 

 

 

4,442

 

 

 

4,527

 

 

 

4,624

 

 

 

4,831

 

Issued by FNMA and FHLMC

 

 

497,854

 

 

 

509,311

 

 

 

179,375

 

 

 

185,554

 

 

 

192,373

 

Other residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

179,334

 

 

 

188,201

 

 

 

197,923

 

 

 

210,479

 

 

 

224,012

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC, or GNMA

 

 

759,821

 

 

 

759,755

 

 

 

770,648

 

 

 

731,777

 

 

 

179,058

 

Total securities held to maturity

 

$

1,474,338

 

 

$

1,494,514

 

 

$

1,156,985

 

 

$

1,137,754

 

 

$

607,598

 

During the fourth quarter of 2022, Trustmark reclassified $422.9 million of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $57.1 million ($42.8 million, net of tax). The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.

During the second quarter of 2022, Trustmark reclassified $343.1 million of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $34.8 million ($26.1 million, net of tax). The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.

At March 31, 2023, 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 approximately $88.5 million ($66.3 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.8% 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, 2023
($ in thousands)
(unaudited)

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

1,723,772

 

 

$

1,719,542

 

 

$

1,647,395

 

 

$

1,440,058

 

 

$

1,273,959

 

Secured by 1-4 family residential properties

 

 

2,822,048

 

 

 

2,775,847

 

 

 

2,597,112

 

 

 

2,424,962

 

 

 

2,106,998

 

Secured by nonfarm, nonresidential properties

 

 

3,375,579

 

 

 

3,278,830

 

 

 

3,206,946

 

 

 

3,178,079

 

 

 

2,975,039

 

Other real estate secured

 

 

847,527

 

 

 

742,538

 

 

 

593,119

 

 

 

555,311

 

 

 

715,939

 

Commercial and industrial loans

 

 

1,882,360

 

 

 

1,821,259

 

 

 

1,689,532

 

 

 

1,551,001

 

 

 

1,495,060

 

Consumer loans

 

 

162,911

 

 

 

166,425

 

 

 

163,412

 

 

 

160,716

 

 

 

154,215

 

State and other political subdivision loans

 

 

1,193,727

 

 

 

1,223,863

 

 

 

1,188,703

 

 

 

1,110,795

 

 

 

1,215,023

 

Other loans

 

 

489,271

 

 

 

475,735

 

 

 

499,845

 

 

 

523,918

 

 

 

460,896

 

LHFI

 

 

12,497,195

 

 

 

12,204,039

 

 

 

11,586,064

 

 

 

10,944,840

 

 

 

10,397,129

 

ACL LHFI

 

 

(122,239

)

 

 

(120,214

)

 

 

(115,050

)

 

 

(103,140

)

 

 

(98,734

)

Net LHFI

 

$

12,374,956

 

 

$

12,083,825

 

 

$

11,471,014

 

 

$

10,841,700

 

 

$

10,298,395

 

The following table presents the LHFI composition by region and reflects each region’s diversified mix of loans:

 

March 31, 2023

 

LHFI - COMPOSITION BY REGION

Total

 

 

Alabama

 

 

Florida

 

 

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

$

1,723,772

 

 

$

909,783

 

 

$

74,625

 

 

$

333,986

 

 

$

25,741

 

 

$

379,637

 

Secured by 1-4 family residential properties

 

2,822,048

 

 

 

135,830

 

 

 

52,395

 

 

 

2,522,951

 

 

 

81,540

 

 

 

29,332

 

Secured by nonfarm, nonresidential properties

 

3,375,579

 

 

 

901,613

 

 

 

204,533

 

 

 

1,462,426

 

 

 

161,899

 

 

 

645,108

 

Other real estate secured

 

847,527

 

 

 

264,170

 

 

 

1,985

 

 

 

334,758

 

 

 

7,018

 

 

 

239,596

 

Commercial and industrial loans

 

1,882,360

 

 

 

557,088

 

 

 

28,068

 

 

 

768,940

 

 

 

272,153

 

 

 

256,111

 

Consumer loans

 

162,911

 

 

 

23,109

 

 

 

9,401

 

 

 

99,817

 

 

 

19,172

 

 

 

11,412

 

State and other political subdivision loans

 

1,193,727

 

 

 

74,925

 

 

 

62,353

 

 

 

845,902

 

 

 

27,380

 

 

 

183,167

 

Other loans

 

489,271

 

 

 

101,083

 

 

 

9,165

 

 

 

262,889

 

 

 

53,156

 

 

 

62,978

 

Loans

$

12,497,195

 

 

$

2,967,601

 

 

$

442,525

 

 

$

6,631,669

 

 

$

648,059

 

 

$

1,807,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

 

 

 

 

 

 

 

Lots

$

66,925

 

 

$

31,642

 

 

$

10,281

 

 

$

15,010

 

 

$

2,220

 

 

$

7,772

 

Development

 

142,477

 

 

 

74,820

 

 

 

1,379

 

 

 

30,507

 

 

 

6,773

 

 

 

28,998

 

Unimproved land

 

103,649

 

 

 

22,480

 

 

 

14,148

 

 

 

31,056

 

 

 

4,754

 

 

 

31,211

 

1-4 family construction

 

369,163

 

 

 

212,970

 

 

 

19,447

 

 

 

91,177

 

 

 

11,994

 

 

 

33,575

 

Other construction

 

1,041,558

 

 

 

567,871

 

 

 

29,370

 

 

 

166,236

 

 

 

—

 

 

 

278,081

 

Construction, land development and other land loans

$

1,723,772

 

 

$

909,783

 

 

$

74,625

 

 

$

333,986

 

 

$

25,741

 

 

$

379,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2023
($ in thousands)
(unaudited)

Note 3 – Loan Composition (continued)

 

 

March 31, 2023

 

 

 

Total

 

 

Alabama

 

 

Florida

 

 

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

 

$

347,775

 

 

$

124,551

 

 

$

26,625

 

 

$

113,299

 

 

$

21,143

 

 

$

62,157

 

Office

 

 

292,032

 

 

 

102,166

 

 

 

16,905

 

 

 

105,561

 

 

 

10,255

 

 

 

57,145

 

Hotel/motel

 

 

290,681

 

 

 

168,832

 

 

 

40,506

 

 

 

53,942

 

 

 

27,401

 

 

 

—

 

Mini-storage

 

 

154,053

 

 

 

28,261

 

 

 

2,058

 

 

 

104,063

 

 

 

481

 

 

 

19,190

 

Industrial

 

 

333,132

 

 

 

69,107

 

 

 

17,524

 

 

 

105,769

 

 

 

2,774

 

 

 

137,958

 

Health care

 

 

70,317

 

 

 

40,435

 

 

 

—

 

 

 

27,002

 

 

 

340

 

 

 

2,540

 

Convenience stores

 

 

33,226

 

 

 

7,318

 

 

 

592

 

 

 

14,709

 

 

 

582

 

 

 

10,025

 

Nursing homes/senior living

 

 

449,014

 

 

 

152,155

 

 

 

—

 

 

 

202,163

 

 

 

5,423

 

 

 

89,273

 

Other

 

 

125,798

 

 

 

40,814

 

 

 

9,840

 

 

 

53,248

 

 

 

8,696

 

 

 

13,200

 

Total non-owner occupied loans

 

 

2,096,028

 

 

 

733,639

 

 

 

114,050

 

 

 

779,756

 

 

 

77,095

 

 

 

391,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

167,317

 

 

 

43,797

 

 

 

36,759

 

 

 

49,046

 

 

 

10,104

 

 

 

27,611

 

Churches

 

 

68,028

 

 

 

15,531

 

 

 

4,592

 

 

 

38,625

 

 

 

6,697

 

 

 

2,583

 

Industrial warehouses

 

 

168,429

 

 

 

17,468

 

 

 

4,644

 

 

 

43,359

 

 

 

16,083

 

 

 

86,875

 

Health care

 

 

144,201

 

 

 

11,397

 

 

 

6,272

 

 

 

105,568

 

 

 

2,323

 

 

 

18,641

 

Convenience stores

 

 

133,875

 

 

 

12,194

 

 

 

21,451

 

 

 

63,187

 

 

 

235

 

 

 

36,808

 

Retail

 

 

94,435

 

 

 

11,194

 

 

 

9,588

 

 

 

44,745

 

 

 

18,987

 

 

 

9,921

 

Restaurants

 

 

55,190

 

 

 

4,247

 

 

 

4,105

 

 

 

31,642

 

 

 

11,931

 

 

 

3,265

 

Auto dealerships

 

 

47,930

 

 

 

6,470

 

 

 

222

 

 

 

23,688

 

 

 

17,550

 

 

 

—

 

Nursing homes/senior living

 

 

257,998

 

 

 

32,615

 

 

 

—

 

 

 

199,183

 

 

 

—

 

 

 

26,200

 

Other

 

 

142,148

 

 

 

13,061

 

 

 

2,850

 

 

 

83,627

 

 

 

894

 

 

 

41,716

 

Total owner-occupied loans

 

 

1,279,551

 

 

 

167,974

 

 

 

90,483

 

 

 

682,670

 

 

 

84,804

 

 

 

253,620

 

Loans secured by nonfarm, nonresidential properties

 

$

3,375,579

 

 

$

901,613

 

 

$

204,533

 

 

$

1,462,426

 

 

$

161,899

 

 

$

645,108

 

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

 

 

Quarter Ended

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

Securities – taxable

 

 

1.85

%

 

 

1.71

%

 

 

1.62

%

 

 

1.50

%

 

 

1.37

%

Securities – nontaxable

 

 

4.00

%

 

 

3.95

%

 

 

3.97

%

 

 

4.00

%

 

 

3.97

%

Securities – total

 

 

1.86

%

 

 

1.72

%

 

 

1.63

%

 

 

1.50

%

 

 

1.38

%

PPP loans

 

 

—

 

 

 

12.39

%

 

 

7.51

%

 

 

4.16

%

 

 

2.35

%

Loans - LHFI & LHFS

 

 

5.79

%

 

 

5.27

%

 

 

4.48

%

 

 

3.79

%

 

 

3.58

%

Loans - total

 

 

5.79

%

 

 

5.27

%

 

 

4.48

%

 

 

3.79

%

 

 

3.58

%

Fed funds sold & reverse repurchases

 

 

5.11

%

 

 

4.29

%

 

 

3.51

%

 

 

3.65

%

 

 

—

 

Other earning assets

 

 

4.09

%

 

 

3.76

%

 

 

1.82

%

 

 

0.78

%

 

 

0.18

%

Total earning assets

 

 

4.87

%

 

 

4.40

%

 

 

3.71

%

 

 

3.01

%

 

 

2.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

1.53

%

 

 

0.71

%

 

 

0.20

%

 

 

0.11

%

 

 

0.11

%

Fed funds purchased & repurchases

 

 

4.49

%

 

 

3.44

%

 

 

1.95

%

 

 

0.24

%

 

 

0.13

%

Other borrowings

 

 

4.87

%

 

 

3.73

%

 

 

2.89

%

 

 

2.52

%

 

 

2.26

%

Total interest-bearing liabilities

 

 

1.98

%

 

 

1.03

%

 

 

0.31

%

 

 

0.17

%

 

 

0.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Deposits

 

 

1.13

%

 

 

0.51

%

 

 

0.14

%

 

 

0.07

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.39

%

 

 

3.66

%

 

 

3.50

%

 

 

2.90

%

 

 

2.58

%

Net interest margin excluding PPP loans
and the FRB balance

 

 

3.36

%

 

 

3.66

%

 

 

3.53

%

 

 

3.06

%

 

 

2.88

%

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2023
($ in thousands)
(unaudited)

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities (continued)

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At March 31, 2023 and December 31, 2022, the average FRB balance totaled $555.5 million and $299.2 million, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance decreased 30 basis points when compared to the fourth quarter of 2022, totaling 3.36% for the first quarter of 2023. The decrease in the net interest margin excluding PPP loans and the FRB balance was due to increased costs of interest-bearing deposits, which was partially offset by increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio.

Note 5 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative ineffectiveness of $1.8 million during the first quarter of 2023.

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

 

 

Quarter Ended

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

Mortgage servicing income, net

 

$

6,785

 

 

$

6,636

 

 

$

6,669

 

 

$

6,557

 

 

$

6,429

 

Change in fair value-MSR from runoff

 

 

(1,145

)

 

 

(2,981

)

 

 

(3,462

)

 

 

(3,806

)

 

 

(3,785

)

Gain on sales of loans, net

 

 

3,797

 

 

 

3,328

 

 

 

4,597

 

 

 

6,030

 

 

 

6,223

 

Mortgage banking income before hedge
ineffectiveness

 

 

9,437

 

 

 

6,983

 

 

 

7,804

 

 

 

8,781

 

 

 

8,867

 

Change in fair value-MSR from market changes

 

 

(3,972

)

 

 

(3,348

)

 

 

10,770

 

 

 

8,739

 

 

 

22,020

 

Change in fair value of derivatives

 

 

2,174

 

 

 

(227

)

 

 

(11,698

)

 

 

(9,371

)

 

 

(21,014

)

Net positive (negative) hedge ineffectiveness

 

 

(1,798

)

 

 

(3,575

)

 

 

(928

)

 

 

(632

)

 

 

1,006

 

Mortgage banking, net

 

$

7,639

 

 

$

3,408

 

 

$

6,876

 

 

$

8,149

 

 

$

9,873

 

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2023
($ in thousands)
(unaudited)

Note 6 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

 

 

Quarter Ended

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

Partnership amortization for tax credit purposes

 

$

(1,961

)

 

$

(1,869

)

 

$

(1,531

)

 

$

(1,475

)

 

$

(1,336

)

Increase in life insurance cash surrender value

 

 

1,693

 

 

 

1,687

 

 

 

1,676

 

 

 

1,683

 

 

 

1,627

 

Other miscellaneous income

 

 

2,782

 

 

 

2,493

 

 

 

2,273

 

 

 

1,699

 

 

 

2,915

 

Total other, net

 

$

2,514

 

 

$

2,311

 

 

$

2,418

 

 

$

1,907

 

 

$

3,206

 

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

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

Loan expense (1)

 

$

2,538

 

 

$

2,908

 

 

$

2,866

 

 

$

2,947

 

 

$

3,528

 

Amortization of intangibles

 

 

288

 

 

 

312

 

 

 

312

 

 

 

328

 

 

 

482

 

FDIC assessment expense

 

 

2,370

 

 

 

2,130

 

 

 

1,945

 

 

 

1,810

 

 

 

1,500

 

Other real estate expense, net

 

 

172

 

 

 

18

 

 

 

497

 

 

 

623

 

 

 

35

 

Other miscellaneous expense

 

 

9,443

 

 

 

9,767

 

 

 

8,117

 

 

 

7,782

 

 

 

7,935

 

Total other expense (1)

 

$

14,811

 

 

$

15,135

 

 

$

13,737

 

 

$

13,490

 

 

$

13,480

 

 

(1) During the first quarter of 2023, Trustmark reclassified its debit card transaction fees from other expense to services and fees. Prior periods have been reclassified accordingly.

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
March 31, 2023
($ in thousands except per share data)
(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

 

 

 

 

Quarter Ended

 

 

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

TANGIBLE EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

 

 

$

1,523,828

 

 

$

1,493,291

 

 

$

1,606,469

 

 

$

1,608,309

 

 

$

1,713,752

 

Less: Goodwill

 

 

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

Identifiable intangible assets

 

 

 

 

(3,523

)

 

 

(3,816

)

 

 

(4,131

)

 

 

(4,436

)

 

 

(4,879

)

Total average tangible equity

 

 

 

$

1,136,068

 

 

$

1,105,238

 

 

$

1,218,101

 

 

$

1,219,636

 

 

$

1,324,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERIOD END BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

 

 

$

1,562,099

 

 

$

1,492,268

 

 

$

1,508,945

 

 

$

1,586,696

 

 

$

1,631,382

 

Less: Goodwill

 

 

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

Identifiable intangible assets

 

 

 

 

(3,352

)

 

 

(3,640

)

 

 

(3,952

)

 

 

(4,264

)

 

 

(4,591

)

Total tangible equity

 

(a)

 

$

1,174,510

 

 

$

1,104,391

 

 

$

1,120,756

 

 

$

1,198,195

 

 

$

1,242,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

$

18,877,178

 

 

$

18,015,478

 

 

$

17,190,634

 

 

$

16,951,510

 

 

$

17,441,551

 

Less: Goodwill

 

 

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

 

 

(384,237

)

Identifiable intangible assets

 

 

 

 

(3,352

)

 

 

(3,640

)

 

 

(3,952

)

 

 

(4,264

)

 

 

(4,591

)

Total tangible assets

 

(b)

 

$

18,489,589

 

 

$

17,627,601

 

 

$

16,802,445

 

 

$

16,563,009

 

 

$

17,052,723

 

Risk-weighted assets

 

(c)

 

$

14,793,893

 

 

$

14,521,078

 

 

$

13,748,819

 

 

$

13,076,981

 

 

$

12,691,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION

 

Net income (loss)

 

 

 

$

50,300

 

 

$

(34,063

)

 

$

42,455

 

 

$

34,284

 

 

$

29,211

 

Plus: Intangible amortization net of tax

 

 

 

 

216

 

 

 

234

 

 

 

234

 

 

 

246

 

 

 

362

 

Net income (loss) adjusted for intangible amortization

 

$

50,516

 

 

$

(33,829

)

 

$

42,689

 

 

$

34,530

 

 

$

29,573

 

Period end common shares outstanding

 

(d)

 

 

61,048,516

 

 

 

60,977,686

 

 

 

60,953,864

 

 

 

61,201,123

 

 

 

61,463,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE COMMON EQUITY MEASUREMENTS

 

Return on average tangible equity (1)

 

 

 

 

18.03

%

 

 

-12.14

%

 

 

13.90

%

 

 

11.36

%

 

 

9.05

%

Tangible equity/tangible assets

 

(a)/(b)

 

 

6.35

%

 

 

6.27

%

 

 

6.67

%

 

 

7.23

%

 

 

7.29

%

Tangible equity/risk-weighted assets

 

(a)/(c)

 

 

7.94

%

 

 

7.61

%

 

 

8.15

%

 

 

9.16

%

 

 

9.79

%

Tangible book value

 

(a)/(d)*1,000

 

$

19.24

 

 

$

18.11

 

 

$

18.39

 

 

$

19.58

 

 

$

20.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON EQUITY TIER 1 CAPITAL (CET1)

 

Total shareholders' equity

 

 

 

$

1,562,099

 

 

$

1,492,268

 

 

$

1,508,945

 

 

$

1,586,696

 

 

$

1,631,382

 

CECL transition adjustment

 

 

 

 

13,000

 

 

 

19,500

 

 

 

19,500

 

 

 

19,500

 

 

 

19,500

 

AOCI-related adjustments

 

 

 

 

242,381

 

 

 

275,403

 

 

 

306,412

 

 

 

207,142

 

 

 

148,656

 

CET1 adjustments and deductions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill net of associated deferred
tax liabilities (DTLs)

 

 

(370,234

)

 

 

(370,241

)

 

 

(370,217

)

 

 

(370,229

)

 

 

(370,240

)

Other adjustments and deductions
for CET1 (2)

 

 

(3,275

)

 

 

(3,258

)

 

 

(3,506

)

 

 

(3,757

)

 

 

(4,015

)

CET1 capital

 

(e)

 

 

1,443,971

 

 

 

1,413,672

 

 

 

1,461,134

 

 

 

1,439,352

 

 

 

1,425,283

 

Additional tier 1 capital instruments
plus related surplus

 

 

60,000

 

 

 

60,000

 

 

 

60,000

 

 

 

60,000

 

 

 

60,000

 

Tier 1 capital

 

 

 

$

1,503,971

 

 

$

1,473,672

 

 

$

1,521,134

 

 

$

1,499,352

 

 

$

1,485,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital ratio

 

(e)/(c)

 

 

9.76

%

 

 

9.74

%

 

 

10.63

%

 

 

11.01

%

 

 

11.23

%

(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
March 31, 2023
($ 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

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

137,595

 

 

$

146,583

 

 

$

136,105

 

 

$

112,676

 

 

$

99,344

 

Noninterest income (GAAP)

 

 

51,377

 

 

 

45,170

 

 

 

52,606

 

 

 

53,253

 

 

 

54,115

 

Pre-provision revenue

(a)

$

188,972

 

 

$

191,753

 

 

$

188,711

 

 

$

165,929

 

 

$

153,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

128,327

 

 

$

231,229

 

 

$

126,698

 

 

$

123,767

 

 

$

121,519

 

Less: Litigation settlement expense

 

 

—

 

 

 

(100,750

)

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted noninterest expense - PPNR (Non-GAAP)

(b)

$

128,327

 

 

$

130,479

 

 

$

126,698

 

 

$

123,767

 

 

$

121,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPNR (Non-GAAP)

(a)-(b)

$

60,645

 

 

$

61,274

 

 

$

62,013

 

 

$

42,162

 

 

$

31,940

 

The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:

 

 

Quarter Ended

 

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense (GAAP)

 

$

128,327

 

 

$

231,229

 

 

$

126,698

 

 

$

123,767

 

 

$

121,519

 

Less: Other real estate expense, net

 

 

(172

)

 

 

(18

)

 

 

(497

)

 

 

(623

)

 

 

(35

)

Amortization of intangibles

 

 

(288

)

 

 

(312

)

 

 

(312

)

 

 

(328

)

 

 

(482

)

Charitable contributions resulting in
state tax credits

 

 

(325

)

 

 

(375

)

 

 

(375

)

 

 

(375

)

 

 

(375

)

Litigation settlement expense

 

 

—

 

 

 

(100,750

)

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted noninterest expense (Non-GAAP)

(c)

$

127,542

 

 

$

129,774

 

 

$

125,514

 

 

$

122,441

 

 

$

120,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

137,595

 

 

$

146,583

 

 

$

136,105

 

 

$

112,676

 

 

$

99,344

 

Add: Tax equivalent adjustment

 

 

3,477

 

 

 

3,451

 

 

 

2,975

 

 

 

2,916

 

 

 

3,003

 

Net interest income-FTE (Non-GAAP)

(a)

$

141,072

 

 

$

150,034

 

 

$

139,080

 

 

$

115,592

 

 

$

102,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

51,377

 

 

$

45,170

 

 

$

52,606

 

 

$

53,253

 

 

$

54,115

 

Add: Partnership amortization for tax credit purposes

 

 

1,961

 

 

 

1,869

 

 

 

1,531

 

 

 

1,475

 

 

 

1,336

 

Adjusted noninterest income (Non-GAAP)

(b)

$

53,338

 

 

$

47,039

 

 

$

54,137

 

 

$

54,728

 

 

$

55,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenue (Non-GAAP)

(a)+(b)

$

194,410

 

 

$

197,073

 

 

$

193,217

 

 

$

170,320

 

 

$

157,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (Non-GAAP)

(c)/((a)+(b))

 

65.60

%

 

 

65.85

%

 

 

64.96

%

 

 

71.89

%

 

 

76.44

%

 

Trustmark Investor Contacts:

Thomas C. Owens

Treasurer and Principal Financial Officer

601-208-7853

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

Trustmark Media Contact:

Melanie A. Morgan

Senior Vice President

601-208-2979

Source: Trustmark Corporation

FAQ

What were Trustmark's earnings for Q1 2023?

Trustmark reported net income of $50.3 million for Q1 2023.

What is Trustmark's stock symbol?

The stock symbol for Trustmark is TRMK.

How much was Trustmark's diluted earnings per share in Q1 2023?

The diluted earnings per share for Trustmark in Q1 2023 was $0.82.

What is the status of Trustmark's dividends?

Trustmark declared a quarterly cash dividend of $0.23 per share, payable June 15, 2023.

What is the trend in Trustmark's loan and deposit growth for Q1 2023?

Both loan and deposit growth increased by 2.4% in Q1 2023.

Stock TRMK logo
Trustmark Corp

NASDAQ:TRMK

TRMK Rankings

#1914 Ranked by Market Cap
#1211 Ranked by Dividends

TRMK Latest News

Oct 22, 2024
Trustmark Corporation Announces Third Quarter 2024 Financial Results
Oct 1, 2024
Trustmark Corporation to Announce Third Quarter Financial Results October 22 and Conduct Earnings Conference Call October 23
Jul 23, 2024
Trustmark Corporation Announces Second Quarter 2024 Financial Results
Jul 1, 2024
Trustmark Corporation to Announce Second Quarter Financial Results July 23 and Conduct Earnings Conference Call July 24
Apr 23, 2024
Trustmark Corporation Announces First Quarter 2024 Financial Results

TRMK Stock Data

2.15B
56.32M
7.81%
72.34%
2.32%
Banks - Regional
National Commercial Banks
Link
United States of America
JACKSON