Le Lézard
Classified in: Business
Subjects: EARNINGS, Photo/Multimedia, Dividend, Conference Call, Webcast

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2023 Financial Results


Trustmark Corporation (NASDAQGS:TRMK) reported net income of $36.1 million in the fourth quarter of 2023, representing diluted earnings per share of $0.59. For the full year, Trustmark's net income totaled $165.5 million, representing diluted earnings per share of $2.70. Trustmark's net income in 2023 produced a return on average tangible equity of 14.04% and a return on average assets of 0.89%. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2024, to shareholders of record on March 1, 2024.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/53886436/en

2023 Highlights

Duane A. Dewey, President and CEO, commented, "We continued to make significant progress across the organization. Our performance reflected solid loan production and credit quality, and continued deposit growth in an increasingly competitive marketplace. We achieved double-digit growth in net interest income in 2023 while noninterest income continued to expand thanks in part to another record year in our insurance business and commendable results in our banking, mortgage banking and wealth management businesses. We have a tremendous team of associates focused on expanding customer relationships and demonstrating the value Trustmark can provide as their trusted financial partner. Looking forward, we will continue to pursue opportunities to redesign workflows and restructure the organization to further leverage investments in technology that will broaden our reach, enhance the customer experience, and improve efficiency. We remain focused on providing the financial services and advice our customers have come to expect while building long-term value for our shareholders."

Balance Sheet Management

Loans HFI totaled $13.0 billion at December 31, 2023, reflecting an increase of $140.3 million, or 1.1%, linked-quarter and $746.5 million, or 6.1%, year-over-year. The linked-quarter growth reflected increases in commercial and industrial loans, other real estate secured loans, other loans and leases, and state and other political subdivision loans offset in part by declines in construction, land development and other land loans, and loans secured by nonfarm, nonresidential properties. Trustmark's loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.6 billion at December 31, 2023, up $467.8 million, or 3.1%, from the prior quarter and up $1.1 billion, or 7.8%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 83.2% of total deposits at year-end 2023. Noninterest-bearing deposits represented 20.5% of total deposits at December 31, 2023. Interest-bearing deposit costs totaled 2.67% for the fourth quarter, an increase of 28 basis points linked-quarter. The total cost of interest-bearing liabilities was 2.89% for the fourth quarter of 2023, an increase of 17 basis points from the prior quarter.

Trustmark did not repurchase any of its common shares in 2023. 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. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At December 31, 2023, Trustmark's tangible equity to tangible assets ratio was 6.95%, while the total risk-based capital ratio was 12.29%. Tangible book value per share was $20.87 at December 31, 2023, up 7.7% from the prior quarter and 15.2% from the prior year.

Credit Quality

Nonaccrual loans totaled $100.0 million at December 31, 2023, an increase of $9.1 million from the prior quarter and $34.0 million year-over-year. Other real estate totaled $6.9 million, reflecting increases of $1.4 million and $4.9 million from the prior quarter and prior year, respectively. Collectively, nonperforming assets totaled $106.9 million, representing 0.81% of loans HFI and held for sale (HFS) at December 31, 2023.

The provision for credit losses for loans HFI was $7.6 million in the fourth quarter and was primarily attributable to loan growth, net adjustments to the qualitative factors, and changes in the macroeconomic forecast. The provision for credit losses for off-balance sheet credit exposures was a negative $888 thousand in the fourth quarter. Collectively, the provision for credit losses totaled $6.7 million in the fourth quarter compared to $8.4 million in the prior quarter and $12.1 million in the fourth quarter of 2022.

Allocation of Trustmark's $139.4 million ACL on loans HFI represented 0.85% of commercial loans and 1.81% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.08% at December 31, 2023. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

Revenue in the fourth quarter totaled $186.5 million, a decrease of 2.3% from the prior quarter and 2.7% from the same quarter in the prior year. The linked-quarter decrease reflects lower noninterest income and net interest income while the year-over-year decline reflects growth in noninterest income being more than offset by lower net interest income. In 2023, revenue totaled $759.8 million, an increase of 8.6% from the prior year.

Net interest income (FTE) in the fourth quarter totaled $140.0 million, resulting in a net interest margin of 3.25%, 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, which was offset in part by higher yields on the loans HFI and HFS portfolio.

Noninterest income in the fourth quarter totaled $49.8 million, a decrease of $2.4 million from the prior quarter and an increase of $4.6 million from the prior year. The linked-quarter change reflects a seasonal decline in insurance revenue, as well as lower mortgage banking and wealth management revenue. The increase in noninterest income year-over-year was well diversified across all fee-based categories.

Mortgage loan production in the fourth quarter totaled $271.9 million, a decline of 30.3% linked-quarter and 30.4% year-over-year. Mortgage banking revenue totaled $5.5 million in the fourth quarter, a decrease of $939 thousand from the prior quarter and an increase of $2.1 million year-over-year. The linked-quarter decline is attributable to an increase in net negative hedge ineffectiveness. In 2023, mortgage loan production totaled $1.5 billion, down 31.6% from the prior year. Mortgage banking revenue totaled $26.2 million in 2023, down $2.1 million from the prior year.

Insurance revenue in the fourth quarter totaled $13.2 million, a seasonal decline of $2.1 million from the prior quarter and an increase of $1.2 million from the prior year. Insurance revenue in 2023 totaled $57.6 million, up $3.8 million, or 7.2%, from the prior year. The solid performance during the year reflects an expanded producer workforce, a hardening of the insurance market, and the realization of operational efficiencies from investments in technology and improved processes.

Wealth management revenue totaled $8.7 million in the fourth quarter, down 1.3% from the prior quarter and up 7.2% from the prior year. The linked-quarter decline is principally due to reduced trust management revenue offset in part by increased brokerage revenue while the year-over-year change is attributable to increased investment services revenue. In 2023, wealth management revenue totaled $35.1 million, in line with the prior year. During 2023, Trustmark selectively expanded its salesforce in the Houston, Mobile, Jackson, and Florida Panhandle markets.

Noninterest Expense

Salaries and employee benefits expense in the fourth quarter totaled $78.0 million, an increase of $1.3 million, or 1.7% from the prior quarter. Excluding reduction in force expense related to restructuring initiatives of $1.4 million, salaries and benefits expense totaled $76.6 million, a decline of $69 thousand from the prior quarter. Total services and fees in the fourth quarter totaled $27.9 million, unchanged from the prior quarter. Net occupancy ? premises expense during the fourth quarter totaled $7.4 million, unchanged from the prior quarter. Equipment expense declined 4.4% linked-quarter to total $6.5 million. Other expense increased $943 thousand, or 6.0%, linked-quarter principally due to increased FDIC assessment expense.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 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, February 7, 2024, in archived format at the same web address or by calling (877) 344-7529, passcode 6776577.

Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Visit trustmark.com for more information.

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 impacts related to or resulting from recent bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions, 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
December 31, 2023
($ in thousands)
(unaudited)
Linked Quarter Year over Year
QUARTERLY AVERAGE BALANCES 12/31/2023 9/30/2023 12/31/2022 $ Change % Change $ Change % Change
Securities AFS-taxable

$

1,986,825

 

$

2,049,006

 

$

2,572,675

 

$

(62,181

)

-3.0

%

$

(585,850

)

-22.8

%

Securities AFS-nontaxable

 

4,246

 

 

4,779

 

 

4,828

 

 

(533

)

-11.2

%

 

(582

)

-12.1

%

Securities HTM-taxable

 

1,430,169

 

 

1,445,895

 

 

1,268,952

 

 

(15,726

)

-1.1

%

 

161,217

 

12.7

%

Securities HTM-nontaxable

 

340

 

 

907

 

 

4,514

 

 

(567

)

-62.5

%

 

(4,174

)

-92.5

%

Total securities

 

3,421,580

 

 

3,500,587

 

 

3,850,969

 

 

(79,007

)

-2.3

%

 

(429,389

)

-11.2

%

Paycheck protection program loans (PPP)

 

?

 

 

?

 

 

3,235

 

 

?

 

n/m

 

 

(3,235

)

-100.0

%

Loans (includes loans held for sale)

 

13,010,028

 

 

12,926,942

 

 

12,006,661

 

 

83,086

 

0.6

%

 

1,003,367

 

8.4

%

Fed funds sold and reverse repurchases

 

121

 

 

230

 

 

6,566

 

 

(109

)

-47.4

%

 

(6,445

)

-98.2

%

Other earning assets

 

670,477

 

 

682,644

 

 

375,190

 

 

(12,167

)

-1.8

%

 

295,287

 

78.7

%

Total earning assets

 

17,102,206

 

 

17,110,403

 

 

16,242,621

 

 

(8,197

)

0.0

%

 

859,585

 

5.3

%

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

 

(133,742

)

 

(127,915

)

 

(114,948

)

 

(5,827

)

-4.6

%

 

(18,794

)

-16.4

%

Other assets

 

1,749,069

 

 

1,721,310

 

 

1,630,085

 

 

27,759

 

1.6

%

 

118,984

 

7.3

%

Total assets

$

18,717,533

 

$

18,703,798

 

$

17,757,758

 

$

13,735

 

0.1

%

$

959,775

 

5.4

%

 
Interest-bearing demand deposits

$

5,053,935

 

$

4,875,714

 

$

4,719,303

 

$

178,221

 

3.7

%

$

334,632

 

7.1

%

Savings deposits

 

3,526,600

 

 

3,642,158

 

 

4,379,673

 

 

(115,558

)

-3.2

%

 

(853,073

)

-19.5

%

Time deposits

 

3,427,384

 

 

3,075,224

 

 

1,152,905

 

 

352,160

 

11.5

%

 

2,274,479

 

n/m

 

Total interest-bearing deposits

 

12,007,919

 

 

11,593,096

 

 

10,251,881

 

 

414,823

 

3.6

%

 

1,756,038

 

17.1

%

Fed funds purchased and repurchases

 

403,041

 

 

414,696

 

 

549,406

 

 

(11,655

)

-2.8

%

 

(146,365

)

-26.6

%

Other borrowings

 

590,765

 

 

912,151

 

 

530,993

 

 

(321,386

)

-35.2

%

 

59,772

 

11.3

%

Subordinated notes

 

123,446

 

 

123,391

 

 

123,226

 

 

55

 

0.0

%

 

220

 

0.2

%

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

?

 

0.0

%

 

?

 

0.0

%

Total interest-bearing liabilities

 

13,187,027

 

 

13,105,190

 

 

11,517,362

 

 

81,837

 

0.6

%

 

1,669,665

 

14.5

%

Noninterest-bearing deposits

 

3,296,351

 

 

3,429,815

 

 

4,177,113

 

 

(133,464

)

-3.9

%

 

(880,762

)

-21.1

%

Other liabilities

 

641,662

 

 

585,908

 

 

569,992

 

 

55,754

 

9.5

%

 

71,670

 

12.6

%

Total liabilities

 

17,125,040

 

 

17,120,913

 

 

16,264,467

 

 

4,127

 

0.0

%

 

860,573

 

5.3

%

Shareholders' equity

 

1,592,493

 

 

1,582,885

 

 

1,493,291

 

 

9,608

 

0.6

%

 

99,202

 

6.6

%

Total liabilities and equity

$

18,717,533

 

$

18,703,798

 

$

17,757,758

 

$

13,735

 

0.1

%

$

959,775

 

5.4

%

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2023
($ in thousands)
(unaudited)
 
Linked Quarter Year over Year
PERIOD END BALANCES 12/31/2023 9/30/2023 12/31/2022 $ Change % Change $ Change % Change
Cash and due from banks

$

975,543

 

$

750,492

 

$

734,787

 

$

225,051

 

30.0

%

$

240,756

 

32.8

%

Fed funds sold and reverse repurchases

 

?

 

 

?

 

 

4,000

 

 

?

 

n/m

 

 

(4,000

)

-100.0

%

Securities available for sale

 

1,762,878

 

 

1,766,174

 

 

2,024,082

 

 

(3,296

)

-0.2

%

 

(261,204

)

-12.9

%

Securities held to maturity

 

1,426,279

 

 

1,438,287

 

 

1,494,514

 

 

(12,008

)

-0.8

%

 

(68,235

)

-4.6

%

PPP loans

 

?

 

 

?

 

 

?

 

 

?

 

n/m

 

 

?

 

n/m

 

Loans held for sale (LHFS)

 

184,812

 

 

169,244

 

 

135,226

 

 

15,568

 

9.2

%

 

49,586

 

36.7

%

Loans held for investment (LHFI)

 

12,950,524

 

 

12,810,259

 

 

12,204,039

 

 

140,265

 

1.1

%

 

746,485

 

6.1

%

ACL LHFI

 

(139,367

)

 

(134,031

)

 

(120,214

)

 

(5,336

)

-4.0

%

 

(19,153

)

-15.9

%

Net LHFI

 

12,811,157

 

 

12,676,228

 

 

12,083,825

 

 

134,929

 

1.1

%

 

727,332

 

6.0

%

Premises and equipment, net

 

232,537

 

 

230,718

 

 

212,365

 

 

1,819

 

0.8

%

 

20,172

 

9.5

%

Mortgage servicing rights

 

131,870

 

 

142,379

 

 

129,677

 

 

(10,509

)

-7.4

%

 

2,193

 

1.7

%

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

?

 

0.0

%

 

?

 

0.0

%

Identifiable intangible assets

 

2,965

 

 

3,093

 

 

3,640

 

 

(128

)

-4.1

%

 

(675

)

-18.5

%

Other real estate

 

6,867

 

 

5,485

 

 

1,986

 

 

1,382

 

25.2

%

 

4,881

 

n/m

 

Operating lease right-of-use assets

 

38,142

 

 

39,639

 

 

36,301

 

 

(1,497

)

-3.8

%

 

1,841

 

5.1

%

Other assets

 

764,902

 

 

784,863

 

 

770,838

 

 

(19,961

)

-2.5

%

 

(5,936

)

-0.8

%

Total assets

$

18,722,189

 

$

18,390,839

 

$

18,015,478

 

$

331,350

 

1.8

%

$

706,711

 

3.9

%

 
Deposits:
Noninterest-bearing

$

3,197,620

 

$

3,320,124

 

$

4,093,771

 

$

(122,504

)

-3.7

%

$

(896,151

)

-21.9

%

Interest-bearing

 

12,372,143

 

 

11,781,799

 

 

10,343,877

 

 

590,344

 

5.0

%

 

2,028,266

 

19.6

%

Total deposits

 

15,569,763

 

 

15,101,923

 

 

14,437,648

 

 

467,840

 

3.1

%

 

1,132,115

 

7.8

%

Fed funds purchased and repurchases

 

405,745

 

 

321,799

 

 

449,331

 

 

83,946

 

26.1

%

 

(43,586

)

-9.7

%

Other borrowings

 

483,230

 

 

793,193

 

 

1,050,938

 

 

(309,963

)

-39.1

%

 

(567,708

)

-54.0

%

Subordinated notes

 

123,482

 

 

123,427

 

 

123,262

 

 

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

 

34,057

 

 

34,945

 

 

36,838

 

 

(888

)

-2.5

%

 

(2,781

)

-7.5

%

Operating lease liabilities

 

41,584

 

 

42,730

 

 

38,932

 

 

(1,146

)

-2.7

%

 

2,652

 

6.8

%

Other liabilities

 

340,625

 

 

340,615

 

 

324,405

 

 

10

 

0.0

%

 

16,220

 

5.0

%

Total liabilities

 

17,060,342

 

 

16,820,488

 

 

16,523,210

 

 

239,854

 

1.4

%

 

537,132

 

3.3

%

Common stock

 

12,725

 

 

12,724

 

 

12,705

 

 

1

 

0.0

%

 

20

 

0.2

%

Capital surplus

 

159,688

 

 

158,316

 

 

154,645

 

 

1,372

 

0.9

%

 

5,043

 

3.3

%

Retained earnings

 

1,709,157

 

 

1,687,199

 

 

1,600,321

 

 

21,958

 

1.3

%

 

108,836

 

6.8

%

Accumulated other comprehensive
income (loss), net of tax

 

(219,723

)

 

(287,888

)

 

(275,403

)

 

68,165

 

23.7

%

 

55,680

 

20.2

%

Total shareholders' equity

 

1,661,847

 

 

1,570,351

 

 

1,492,268

 

 

91,496

 

5.8

%

 

169,579

 

11.4

%

Total liabilities and equity

$

18,722,189

 

$

18,390,839

 

$

18,015,478

 

$

331,350

 

1.8

%

$

706,711

 

3.9

%

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2023
($ in thousands except per share data)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
INCOME STATEMENTS 12/31/2023 9/30/2023 12/31/2022 $ Change % Change $ Change % Change
Interest and fees on LHFS & LHFI-FTE

$

210,288

 

$

206,523

$

159,566

 

$

3,765

 

1.8

%

$

50,722

 

31.8

%

Interest and fees on PPP loans

 

?

 

 

?

 

101

 

 

?

 

n/m

 

 

(101

)

-100.0

%

Interest on securities-taxable

 

15,936

 

 

16,624

 

16,577

 

 

(688

)

-4.1

%

 

(641

)

-3.9

%

Interest on securities-tax exempt-FTE

 

44

 

 

58

 

93

 

 

(14

)

-24.1

%

 

(49

)

-52.7

%

Interest on fed funds sold and reverse
repurchases

 

2

 

 

3

 

71

 

 

(1

)

-33.3

%

 

(69

)

-97.2

%

Other interest income

 

9,918

 

 

8,613

 

3,556

 

 

1,305

 

15.2

%

 

6,362

 

n/m

 

Total interest income-FTE

 

236,188

 

 

231,821

 

179,964

 

 

4,367

 

1.9

%

 

56,224

 

31.2

%

Interest on deposits

 

80,847

 

 

69,797

 

18,438

 

 

11,050

 

15.8

%

 

62,409

 

n/m

 

Interest on fed funds purchased and repurchases

 

5,347

 

 

5,375

 

4,762

 

 

(28

)

-0.5

%

 

585

 

12.3

%

Other interest expense

 

9,946

 

 

14,713

 

6,730

 

 

(4,767

)

-32.4

%

 

3,216

 

47.8

%

Total interest expense

 

96,140

 

 

89,885

 

29,930

 

 

6,255

 

7.0

%

 

66,210

 

n/m

 

Net interest income-FTE

 

140,048

 

 

141,936

 

150,034

 

 

(1,888

)

-1.3

%

 

(9,986

)

-6.7

%

Provision for credit losses, LHFI

 

7,585

 

 

8,322

 

6,902

 

 

(737

)

-8.9

%

 

683

 

9.9

%

Provision for credit losses, off-balance sheet
credit exposures

 

(888

)

 

104

 

5,215

 

 

(992

)

n/m

 

 

(6,103

)

n/m

 

Net interest income after provision-FTE

 

133,351

 

 

133,510

 

137,917

 

 

(159

)

-0.1

%

 

(4,566

)

-3.3

%

Service charges on deposit accounts

 

11,311

 

 

11,074

 

11,162

 

 

237

 

2.1

%

 

149

 

1.3

%

Bank card and other fees

 

8,502

 

 

8,217

 

8,191

 

 

285

 

3.5

%

 

311

 

3.8

%

Mortgage banking, net

 

5,519

 

 

6,458

 

3,408

 

 

(939

)

-14.5

%

 

2,111

 

61.9

%

Insurance commissions

 

13,197

 

 

15,303

 

12,019

 

 

(2,106

)

-13.8

%

 

1,178

 

9.8

%

Wealth management

 

8,657

 

 

8,773

 

8,079

 

 

(116

)

-1.3

%

 

578

 

7.2

%

Other, net

 

2,579

 

 

2,399

 

2,311

 

 

180

 

7.5

%

 

268

 

11.6

%

Securities gains (losses), net

 

39

 

 

?

 

?

 

 

39

 

n/m

 

 

39

 

n/m

 

Total noninterest income

 

49,804

 

 

52,224

 

45,170

 

 

(2,420

)

-4.6

%

 

4,634

 

10.3

%

Salaries and employee benefits

 

78,003

 

 

76,666

 

73,469

 

 

1,337

 

1.7

%

 

4,534

 

6.2

%

Services and fees (2)

 

27,906

 

 

27,882

 

27,709

 

 

24

 

0.1

%

 

197

 

0.7

%

Net occupancy-premises

 

7,362

 

 

7,383

 

7,898

 

 

(21

)

-0.3

%

 

(536

)

-6.8

%

Equipment expense

 

6,517

 

 

6,816

 

6,268

 

 

(299

)

-4.4

%

 

249

 

4.0

%

Litigation settlement expense (1)

 

?

 

 

6,500

 

100,750

 

 

(6,500

)

-100.0

%

 

(100,750

)

-100.0

%

Other expense (2)

 

16,641

 

 

15,698

 

15,135

 

 

943

 

6.0

%

 

1,506

 

10.0

%

Total noninterest expense

 

136,429

 

 

140,945

 

231,229

 

 

(4,516

)

-3.2

%

 

(94,800

)

-41.0

%

Income (loss) before income taxes and tax eq adj

 

46,726

 

 

44,789

 

(48,142

)

 

1,937

 

4.3

%

 

94,868

 

n/m

 

Tax equivalent adjustment

 

3,306

 

 

3,299

 

3,451

 

 

7

 

0.2

%

 

(145

)

-4.2

%

Income (loss) before income taxes

 

43,420

 

 

41,490

 

(51,593

)

 

1,930

 

4.7

%

 

95,013

 

n/m

 

Income taxes

 

7,297

 

 

7,461

 

(17,530

)

 

(164

)

-2.2

%

 

24,827

 

n/m

 

Net income (loss)

$

36,123

 

$

34,029

$

(34,063

)

$

2,094

 

6.2

%

$

70,186

 

n/m

 

 
Per share data
Earnings (loss) per share - basic

$

0.59

 

$

0.56

$

(0.56

)

$

0.03

 

5.4

%

$

1.15

 

n/m

 

 
Earnings (loss) per share - diluted

$

0.59

 

$

0.56

$

(0.56

)

$

0.03

 

5.4

%

$

1.15

 

n/m

 

 
Dividends per share

$

0.23

 

$

0.23

$

0.23

 

 

?

 

0.0

%

 

?

 

0.0

%

 
Weighted average shares outstanding
Basic

 

61,070,481

 

 

61,069,750

 

60,969,400

 

 
Diluted

 

61,296,840

 

 

61,263,032

 

61,173,249

 

 
Period end shares outstanding

 

61,071,173

 

 

61,070,095

 

60,977,686

 

 
(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
December 31, 2023
($ in thousands)
(unaudited)
Quarter Ended Linked Quarter Year over Year
NONPERFORMING ASSETS (1) 12/31/2023 9/30/2023 12/31/2022 $ Change % Change $ Change % Change
Nonaccrual LHFI
Alabama (2)

$

23,271

 

$

23,530

 

$

12,300

 

$

(259

)

-1.1

%

$

10,971

 

89.2

%

Florida

 

170

 

 

151

 

 

227

 

 

19

 

12.6

%

 

(57

)

-25.1

%

Mississippi (3)

 

54,615

 

 

45,050

 

 

24,683

 

 

9,565

 

21.2

%

 

29,932

 

n/m

 

Tennessee (4)

 

1,802

 

 

1,841

 

 

5,566

 

 

(39

)

-2.1

%

 

(3,764

)

-67.6

%

Texas

 

20,150

 

 

20,327

 

 

23,196

 

 

(177

)

-0.9

%

 

(3,046

)

-13.1

%

Total nonaccrual LHFI

 

100,008

 

 

90,899

 

 

65,972

 

 

9,109

 

10.0

%

 

34,036

 

51.6

%

Other real estate
Alabama (2)

 

1,397

 

 

315

 

 

194

 

 

1,082

 

n/m

 

 

1,203

 

n/m

 

Mississippi (3)

 

1,242

 

 

942

 

 

1,769

 

 

300

 

31.8

%

 

(527

)

-29.8

%

Tennessee (4)

 

?

 

 

?

 

 

23

 

 

?

 

n/m

 

 

(23

)

-100.0

%

Texas

 

4,228

 

 

4,228

 

 

?

 

 

?

 

0.0

%

 

4,228

 

n/m

 

Total other real estate

 

6,867

 

 

5,485

 

 

1,986

 

 

1,382

 

25.2

%

 

4,881

 

n/m

 

Total nonperforming assets

$

106,875

 

$

96,384

 

$

67,958

 

$

10,491

 

10.9

%

$

38,917

 

57.3

%

 
LOANS PAST DUE OVER 90 DAYS (1)
LHFI

$

5,790

 

$

3,804

 

$

3,929

 

$

1,986

 

52.2

%

$

1,861

 

47.4

%

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

$

51,243

 

$

42,532

 

$

49,320

 

$

8,711

 

20.5

%

$

1,923

 

3.9

%

 
Quarter Ended Linked Quarter Year over Year
ACL LHFI (1) 12/31/2023 9/30/2023 12/31/2022 $ Change % Change $ Change % Change
Beginning Balance

$

134,031

 

$

129,298

 

$

115,050

 

$

4,733

 

3.7

%

$

18,981

 

16.5

%

Provision for credit losses, LHFI

 

7,585

 

 

8,322

 

 

6,902

 

 

(737

)

-8.9

%

 

683

 

9.9

%

Charge-offs

 

(4,250

)

 

(7,496

)

 

(3,893

)

 

3,246

 

43.3

%

 

(357

)

-9.2

%

Recoveries

 

2,001

 

 

3,907

 

 

2,155

 

 

(1,906

)

-48.8

%

 

(154

)

-7.1

%

Net (charge-offs) recoveries

 

(2,249

)

 

(3,589

)

 

(1,738

)

 

1,340

 

37.3

%

 

(511

)

-29.4

%

Ending Balance

$

139,367

 

$

134,031

 

$

120,214

 

$

5,336

 

4.0

%

$

19,153

 

15.9

%

 
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama (2)

$

(299

)

$

(165

)

$

98

 

$

(134

)

-81.2

%

$

(397

)

n/m

 

Florida

 

180

 

 

21

 

 

(60

)

 

159

 

n/m

 

 

240

 

n/m

 

Mississippi (3)

 

(1,943

)

 

(1,867

)

 

(1,657

)

 

(76

)

-4.1

%

 

(286

)

-17.3

%

Tennessee (4)

 

(193

)

 

2,127

 

 

(195

)

 

(2,320

)

n/m

 

 

2

 

-1.0

%

Texas

 

6

 

 

(3,705

)

 

76

 

 

3,711

 

n/m

 

 

(70

)

-92.1

%

Total net (charge-offs) recoveries

$

(2,249

)

$

(3,589

)

$

(1,738

)

$

1,340

 

37.3

%

$

(511

)

-29.4

%

 
(1) Excludes PPP loans.
(2) Alabama includes the Georgia Loan Production Office.
(3) Mississippi includes Central and Southern Mississippi Regions.
(4) 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
December 31, 2023
($ in thousands)
(unaudited)
Quarter Ended Year Ended
AVERAGE BALANCES 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Securities AFS-taxable

$

1,986,825

 

$

2,049,006

 

$

2,140,505

 

$

2,187,121

 

$

2,572,675

 

$

2,090,201

 

$

2,932,054

 

Securities AFS-nontaxable

 

4,246

 

 

4,779

 

 

4,796

 

 

4,812

 

 

4,828

 

 

4,657

 

 

4,997

 

Securities HTM-taxable

 

1,430,169

 

 

1,445,895

 

 

1,463,086

 

 

1,479,283

 

 

1,268,952

 

 

1,454,450

 

 

911,010

 

Securities HTM-nontaxable

 

340

 

 

907

 

 

1,718

 

 

4,509

 

 

4,514

 

 

1,854

 

 

5,623

 

Total securities

 

3,421,580

 

 

3,500,587

 

 

3,610,105

 

 

3,675,725

 

 

3,850,969

 

 

3,551,162

 

 

3,853,684

 

PPP loans

 

?

 

 

?

 

 

?

 

 

?

 

 

3,235

 

 

?

 

 

14,868

 

Loans (includes loans held for sale)

 

13,010,028

 

 

12,926,942

 

 

12,732,057

 

 

12,530,449

 

 

12,006,661

 

 

12,801,531

 

 

11,236,388

 

Fed funds sold and reverse repurchases

 

121

 

 

230

 

 

3,275

 

 

2,379

 

 

6,566

 

 

1,492

 

 

1,753

 

Other earning assets

 

670,477

 

 

682,644

 

 

903,027

 

 

647,760

 

 

375,190

 

 

728,181

 

 

907,414

 

Total earning assets

 

17,102,206

 

 

17,110,403

 

 

17,248,464

 

 

16,856,313

 

 

16,242,621

 

 

17,082,366

 

 

16,014,107

 

ACL LHFI

 

(133,742

)

 

(127,915

)

 

(121,960

)

 

(119,978

)

 

(114,948

)

 

(125,942

)

 

(104,138

)

Other assets

 

1,749,069

 

 

1,721,310

 

 

1,648,583

 

 

1,762,449

 

 

1,630,085

 

 

1,718,058

 

 

1,567,921

 

Total assets

$

18,717,533

 

$

18,703,798

 

$

18,775,087

 

$

18,498,784

 

$

17,757,758

 

$

18,674,482

 

$

17,477,890

 

 
Interest-bearing demand deposits

$

5,053,935

 

$

4,875,714

 

$

4,803,737

 

$

4,751,154

 

$

4,719,303

 

$

4,871,977

 

$

4,585,955

 

Savings deposits

 

3,526,600

 

 

3,642,158

 

 

4,002,134

 

 

4,193,764

 

 

4,379,673

 

 

3,838,791

 

 

4,579,742

 

Time deposits

 

3,427,384

 

 

3,075,224

 

 

2,335,752

 

 

1,907,449

 

 

1,152,905

 

 

2,691,682

 

 

1,153,983

 

Total interest-bearing deposits

 

12,007,919

 

 

11,593,096

 

 

11,141,623

 

 

10,852,367

 

 

10,251,881

 

 

11,402,450

 

 

10,319,680

 

Fed funds purchased and repurchases

 

403,041

 

 

414,696

 

 

389,834

 

 

436,535

 

 

549,406

 

 

410,945

 

 

283,328

 

Other borrowings

 

590,765

 

 

912,151

 

 

1,330,010

 

 

1,110,843

 

 

530,993

 

 

984,315

 

 

198,672

 

Subordinated notes

 

123,446

 

 

123,391

 

 

123,337

 

 

123,281

 

 

123,226

 

 

123,364

 

 

123,144

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

Total interest-bearing liabilities

 

13,187,027

 

 

13,105,190

 

 

13,046,660

 

 

12,584,882

 

 

11,517,362

 

 

12,982,930

 

 

10,986,680

 

Noninterest-bearing deposits

 

3,296,351

 

 

3,429,815

 

 

3,595,927

 

 

3,813,248

 

 

4,177,113

 

 

3,532,134

 

 

4,452,046

 

Other liabilities

 

641,662

 

 

585,908

 

 

552,209

 

 

576,826

 

 

569,992

 

 

589,320

 

 

434,310

 

Total liabilities

 

17,125,040

 

 

17,120,913

 

 

17,194,796

 

 

16,974,956

 

 

16,264,467

 

 

17,104,384

 

 

15,873,036

 

Shareholders' equity

 

1,592,493

 

 

1,582,885

 

 

1,580,291

 

 

1,523,828

 

 

1,493,291

 

 

1,570,098

 

 

1,604,854

 

Total liabilities and equity

$

18,717,533

 

$

18,703,798

 

$

18,775,087

 

$

18,498,784

 

$

17,757,758

 

$

18,674,482

 

$

17,477,890

 

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2023
($ in thousands)
(unaudited)
 
PERIOD END BALANCES 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Cash and due from banks

$

975,543

 

$

750,492

 

$

832,052

 

$

1,297,144

 

$

734,787

 

Fed funds sold and reverse repurchases

 

?

 

 

?

 

 

?

 

 

?

 

 

4,000

 

Securities available for sale

 

1,762,878

 

 

1,766,174

 

 

1,871,883

 

 

1,984,162

 

 

2,024,082

 

Securities held to maturity

 

1,426,279

 

 

1,438,287

 

 

1,458,665

 

 

1,474,338

 

 

1,494,514

 

PPP loans

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

LHFS

 

184,812

 

 

169,244

 

 

181,094

 

 

175,926

 

 

135,226

 

LHFI

 

12,950,524

 

 

12,810,259

 

 

12,613,967

 

 

12,497,195

 

 

12,204,039

 

ACL LHFI

 

(139,367

)

 

(134,031

)

 

(129,298

)

 

(122,239

)

 

(120,214

)

Net LHFI

 

12,811,157

 

 

12,676,228

 

 

12,484,669

 

 

12,374,956

 

 

12,083,825

 

Premises and equipment, net

 

232,537

 

 

230,718

 

 

227,630

 

 

223,975

 

 

212,365

 

Mortgage servicing rights

 

131,870

 

 

142,379

 

 

134,350

 

 

127,206

 

 

129,677

 

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

Identifiable intangible assets

 

2,965

 

 

3,093

 

 

3,222

 

 

3,352

 

 

3,640

 

Other real estate

 

6,867

 

 

5,485

 

 

1,137

 

 

1,684

 

 

1,986

 

Operating lease right-of-use assets

 

38,142

 

 

39,639

 

 

38,179

 

 

35,315

 

 

36,301

 

Other assets

 

764,902

 

 

784,863

 

 

805,508

 

 

794,883

 

 

770,838

 

Total assets

$

18,722,189

 

$

18,390,839

 

$

18,422,626

 

$

18,877,178

 

$

18,015,478

 

 
Deposits:
Noninterest-bearing

$

3,197,620

 

$

3,320,124

 

$

3,461,073

 

$

3,797,055

 

$

4,093,771

 

Interest-bearing

 

12,372,143

 

 

11,781,799

 

 

11,452,827

 

 

10,986,606

 

 

10,343,877

 

Total deposits

 

15,569,763

 

 

15,101,923

 

 

14,913,900

 

 

14,783,661

 

 

14,437,648

 

Fed funds purchased and repurchases

 

405,745

 

 

321,799

 

 

311,179

 

 

477,980

 

 

449,331

 

Other borrowings

 

483,230

 

 

793,193

 

 

1,056,714

 

 

1,485,181

 

 

1,050,938

 

Subordinated notes

 

123,482

 

 

123,427

 

 

123,372

 

 

123,317

 

 

123,262

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

ACL on off-balance sheet credit exposures

 

34,057

 

 

34,945

 

 

34,841

 

 

34,596

 

 

36,838

 

Operating lease liabilities

 

41,584

 

 

42,730

 

 

40,845

 

 

37,988

 

 

38,932

 

Other liabilities

 

340,625

 

 

340,615

 

 

308,726

 

 

310,500

 

 

324,405

 

Total liabilities

 

17,060,342

 

 

16,820,488

 

 

16,851,433

 

 

17,315,079

 

 

16,523,210

 

Common stock

 

12,725

 

 

12,724

 

 

12,724

 

 

12,720

 

 

12,705

 

Capital surplus

 

159,688

 

 

158,316

 

 

156,834

 

 

155,297

 

 

154,645

 

Retained earnings

 

1,709,157

 

 

1,687,199

 

 

1,667,339

 

 

1,636,463

 

 

1,600,321

 

Accumulated other comprehensive income (loss),
net of tax

 

(219,723

)

 

(287,888

)

 

(265,704

)

 

(242,381

)

 

(275,403

)

Total shareholders' equity

 

1,661,847

 

 

1,570,351

 

 

1,571,193

 

 

1,562,099

 

 

1,492,268

 

Total liabilities and equity

$

18,722,189

 

$

18,390,839

 

$

18,422,626

 

$

18,877,178

 

$

18,015,478

 

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2023
($ in thousands except per share data)
(unaudited)
 
Quarter Ended Year Ended
INCOME STATEMENTS 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Interest and fees on LHFS & LHFI-FTE

$

210,288

 

$

206,523

$

192,941

$

178,967

 

$

159,566

 

$

788,719

 

$

485,246

Interest and fees on PPP loans

 

?

 

 

?

 

?

 

?

 

 

101

 

 

?

 

 

639

Interest on securities-taxable

 

15,936

 

 

16,624

 

16,779

 

16,761

 

 

16,577

 

 

66,100

 

 

59,717

Interest on securities-tax exempt-FTE

 

44

 

 

58

 

69

 

92

 

 

93

 

 

263

 

 

422

Interest on fed funds sold and reverse repurchases

 

2

 

 

3

 

45

 

30

 

 

71

 

 

80

 

 

74

Other interest income

 

9,918

 

 

8,613

 

12,077

 

6,527

 

 

3,556

 

 

37,135

 

 

8,080

Total interest income-FTE

 

236,188

 

 

231,821

 

221,911

 

202,377

 

 

179,964

 

 

892,297

 

 

554,178

Interest on deposits

 

80,847

 

 

69,797

 

54,409

 

40,898

 

 

18,438

 

 

245,951

 

 

29,069

Interest on fed funds purchased and repurchases

 

5,347

 

 

5,375

 

4,865

 

4,832

 

 

4,762

 

 

20,419

 

 

6,127

Other interest expense

 

9,946

 

 

14,713

 

19,350

 

15,575

 

 

6,730

 

 

59,584

 

 

11,929

Total interest expense

 

96,140

 

 

89,885

 

78,624

 

61,305

 

 

29,930

 

 

325,954

 

 

47,125

Net interest income-FTE

 

140,048

 

 

141,936

 

143,287

 

141,072

 

 

150,034

 

 

566,343

 

 

507,053

Provision for credit losses, LHFI

 

7,585

 

 

8,322

 

8,211

 

3,244

 

 

6,902

 

 

27,362

 

 

21,677

Provision for credit losses, off-balance sheet
credit exposures

 

(888

)

 

104

 

245

 

(2,242

)

 

5,215

 

 

(2,781

)

 

1,215

Net interest income after provision-FTE

 

133,351

 

 

133,510

 

134,831

 

140,070

 

 

137,917

 

 

541,762

 

 

484,161

Service charges on deposit accounts

 

11,311

 

 

11,074

 

10,695

 

10,336

 

 

11,162

 

 

43,416

 

 

42,157

Bank card and other fees

 

8,502

 

 

8,217

 

8,917

 

7,803

 

 

8,191

 

 

33,439

 

 

36,105

Mortgage banking, net

 

5,519

 

 

6,458

 

6,600

 

7,639

 

 

3,408

 

 

26,216

 

 

28,306

Insurance commissions

 

13,197

 

 

15,303

 

14,764

 

14,305

 

 

12,019

 

 

57,569

 

 

53,721

Wealth management

 

8,657

 

 

8,773

 

8,882

 

8,780

 

 

8,079

 

 

35,092

 

 

35,013

Other, net

 

2,579

 

 

2,399

 

3,695

 

2,514

 

 

2,311

 

 

11,187

 

 

9,842

Securities gains (losses), net

 

39

 

 

?

 

?

 

?

 

 

?

 

 

39

 

 

?

Total noninterest income

 

49,804

 

 

52,224

 

53,553

 

51,377

 

 

45,170

 

 

206,958

 

 

205,144

Salaries and employee benefits

 

78,003

 

 

76,666

 

75,940

 

74,056

 

 

73,469

 

 

304,665

 

 

287,440

Services and fees (2)

 

27,906

 

 

27,882

 

28,264

 

25,426

 

 

27,709

 

 

109,478

 

 

105,469

Net occupancy-premises

 

7,362

 

 

7,383

 

7,108

 

7,629

 

 

7,898

 

 

29,482

 

 

29,264

Equipment expense

 

6,517

 

 

6,816

 

6,404

 

6,405

 

 

6,268

 

 

26,142

 

 

24,448

Litigation settlement expense (1)

 

?

 

 

6,500

 

?

 

?

 

 

100,750

 

 

6,500

 

 

100,750

Other expense (2)

 

16,641

 

 

15,698

 

14,502

 

14,811

 

 

15,135

 

 

61,652

 

 

55,842

Total noninterest expense

 

136,429

 

 

140,945

 

132,218

 

128,327

 

 

231,229

 

 

537,919

 

 

603,213

Income (loss) before income taxes and tax eq adj

 

46,726

 

 

44,789

 

56,166

 

63,120

 

 

(48,142

)

 

210,801

 

 

86,092

Tax equivalent adjustment

 

3,306

 

 

3,299

 

3,383

 

3,477

 

 

3,451

 

 

13,465

 

 

12,345

Income (loss) before income taxes

 

43,420

 

 

41,490

 

52,783

 

59,643

 

 

(51,593

)

 

197,336

 

 

73,747

Income taxes

 

7,297

 

 

7,461

 

7,746

 

9,343

 

 

(17,530

)

 

31,847

 

 

1,860

Net income (loss)

$

36,123

 

$

34,029

$

45,037

$

50,300

 

$

(34,063

)

$

165,489

 

$

71,887

 
Per share data
Earnings (loss) per share - basic

$

0.59

 

$

0.56

$

0.74

$

0.82

 

$

(0.56

)

$

2.71

 

$

1.17

 
Earnings (loss) per share - diluted

$

0.59

 

$

0.56

$

0.74

$

0.82

 

$

(0.56

)

$

2.70

 

$

1.17

 
Dividends per share

$

0.23

 

$

0.23

$

0.23

$

0.23

 

$

0.23

 

$

0.92

 

$

0.92

 
Weighted average shares outstanding
Basic

 

61,070,481

 

 

61,069,750

 

61,063,277

 

61,011,059

 

 

60,969,400

 

 

61,053,849

 

 

61,242,358

 
Diluted

 

61,296,840

 

 

61,263,032

 

61,230,031

 

61,193,275

 

 

61,173,249

 

 

61,230,621

 

 

61,431,726

 
Period end shares outstanding

 

61,071,173

 

 

61,070,095

 

61,069,036

 

61,048,516

 

 

60,977,686

 

 

61,071,173

 

 

60,977,686

 
(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
December 31, 2023
($ in thousands)
(unaudited)
 
 
Quarter Ended
NONPERFORMING ASSETS (1) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Nonaccrual LHFI
Alabama (2)

$

23,271

 

$

23,530

 

$

11,058

 

$

10,919

 

$

12,300

 

Florida

 

170

 

 

151

 

 

334

 

 

256

 

 

227

 

Mississippi (3)

 

54,615

 

 

45,050

 

 

36,288

 

 

32,560

 

 

24,683

 

Tennessee (4)

 

1,802

 

 

1,841

 

 

5,088

 

 

5,416

 

 

5,566

 

Texas

 

20,150

 

 

20,327

 

 

22,259

 

 

23,224

 

 

23,196

 

Total nonaccrual LHFI

 

100,008

 

 

90,899

 

 

75,027

 

 

72,375

 

 

65,972

 

Other real estate
Alabama (2)

 

1,397

 

 

315

 

 

?

 

 

?

 

 

194

 

Mississippi (3)

 

1,242

 

 

942

 

 

1,137

 

 

1,495

 

 

1,769

 

Tennessee (4)

 

?

 

 

?

 

 

?

 

 

189

 

 

23

 

Texas

 

4,228

 

 

4,228

 

 

?

 

 

?

 

 

?

 

Total other real estate

 

6,867

 

 

5,485

 

 

1,137

 

 

1,684

 

 

1,986

 

Total nonperforming assets

$

106,875

 

$

96,384

 

$

76,164

 

$

74,059

 

$

67,958

 

 
LOANS PAST DUE OVER 90 DAYS (1)
LHFI

$

5,790

 

$

3,804

 

$

3,911

 

$

2,255

 

$

3,929

 

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

$

51,243

 

$

42,532

 

$

35,766

 

$

41,468

 

$

49,320

 

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

$

134,031

 

$

129,298

 

$

122,239

 

$

120,214

 

$

115,050

 

$

120,214

 

$

99,457

 

Provision for credit losses, LHFI

 

7,585

 

 

8,322

 

 

8,211

 

 

3,244

 

 

6,902

 

 

27,362

 

 

21,677

 

Charge-offs

 

(4,250

)

 

(7,496

)

 

(2,773

)

 

(2,996

)

 

(3,893

)

 

(17,515

)

 

(11,332

)

Recoveries

 

2,001

 

 

3,907

 

 

1,621

 

 

1,777

 

 

2,155

 

 

9,306

 

 

10,412

 

Net (charge-offs) recoveries

 

(2,249

)

 

(3,589

)

 

(1,152

)

 

(1,219

)

 

(1,738

)

 

(8,209

)

 

(920

)

Ending Balance

$

139,367

 

$

134,031

 

$

129,298

 

$

122,239

 

$

120,214

 

$

139,367

 

$

120,214

 

 
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama (2)

$

(299

)

$

(165

)

$

(141

)

$

(268

)

$

98

 

$

(873

)

$

2,019

 

Florida

 

180

 

 

21

 

 

(35

)

 

(36

)

 

(60

)

 

130

 

 

652

 

Mississippi (3)

 

(1,943

)

 

(1,867

)

 

(762

)

 

(775

)

 

(1,657

)

 

(5,347

)

 

(2,713

)

Tennessee (4)

 

(193

)

 

2,127

 

 

(166

)

 

(124

)

 

(195

)

 

1,644

 

 

(790

)

Texas

 

6

 

 

(3,705

)

 

(48

)

 

(16

)

 

76

 

 

(3,763

)

 

(88

)

Total net (charge-offs) recoveries

$

(2,249

)

$

(3,589

)

$

(1,152

)

$

(1,219

)

$

(1,738

)

$

(8,209

)

$

(920

)

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2023
($ in thousands)
(unaudited)
 
Quarter Ended Year Ended
FINANCIAL RATIOS AND OTHER DATA 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Return on average equity

 

9.00

%

 

8.53

%

 

11.43

%

 

13.39

%

 

-9.05

%

10.54

%

4.48

%

Return on average tangible equity

 

11.92

%

 

11.32

%

 

15.18

%

 

18.03

%

 

-12.14

%

14.04

%

6.00

%

Return on average assets

 

0.77

%

 

0.72

%

 

0.96

%

 

1.10

%

 

-0.76

%

0.89

%

0.41

%

Interest margin - Yield - FTE

 

5.48

%

 

5.38

%

 

5.16

%

 

4.87

%

 

4.40

%

5.22

%

3.46

%

Interest margin - Cost

 

2.23

%

 

2.08

%

 

1.83

%

 

1.47

%

 

0.73

%

1.91

%

0.29

%

Net interest margin - FTE

 

3.25

%

 

3.29

%

 

3.33

%

 

3.39

%

 

3.66

%

3.32

%

3.17

%

Efficiency ratio (1)

 

70.25

%

 

68.33

%

 

66.17

%

 

65.60

%

 

65.85

%

67.57

%

69.37

%

Full-time equivalent employees

 

2,757

 

 

2,756

 

 

2,761

 

 

2,758

 

 

2,738

 

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

 

0.07

%

 

0.11

%

 

0.04

%

 

0.04

%

 

0.06

%

0.06

%

0.01

%

Provision for credit losses, LHFI / average loans

 

0.23

%

 

0.26

%

 

0.26

%

 

0.10

%

 

0.23

%

0.21

%

0.19

%

Nonaccrual LHFI / (LHFI + LHFS)

 

0.76

%

 

0.70

%

 

0.59

%

 

0.57

%

 

0.53

%

Nonperforming assets / (LHFI + LHFS)

 

0.81

%

 

0.74

%

 

0.60

%

 

0.58

%

 

0.55

%

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

 

0.81

%

 

0.74

%

 

0.60

%

 

0.58

%

 

0.55

%

ACL LHFI / LHFI

 

1.08

%

 

1.05

%

 

1.03

%

 

0.98

%

 

0.99

%

ACL LHFI-commercial / commercial LHFI

 

0.85

%

 

0.86

%

 

0.84

%

 

0.80

%

 

0.85

%

ACL LHFI-consumer / consumer and