Group 1 - Trustmark (TRMK) has reached a significant support level and is considered a good pick for investors from a technical perspective, having recently broken through the 200-day moving average, indicating a long-term bullish trend [1] - TRMK has moved 12.9% higher over the last four weeks, suggesting potential for further gains, and is currently rated as a Zacks Rank 1 (Strong Buy) stock [2] - Positive earnings estimate revisions strengthen the bullish case for TRMK, with three upward revisions compared to none lower for the current fiscal year, and the consensus estimate has also increased [3]

Core Viewpoint - Trustmark (TRMK) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects analysts' growing optimism regarding Trustmark's earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Consensus Estimate for the current quarter has increased by 5.56% over the last 30 days, with the current earnings estimate at $0.81 per share, representing a year-over-year change of +19.12% [4]. - For the full year, Trustmark is projected to earn $3.40 per share, reflecting an increase of +11.84% from the previous year, with a 6.77% rise in consensus estimates over the past month [5]. Zacks Rank - Trustmark currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock price outperformance [3][6]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [6]. Recent Performance - Trustmark shares have appreciated by 6.9% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [7].

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, chang ...

Core Insights - Trustmark (TRMK) reported revenue of $199.39 million for Q4 2024, a 5% year-over-year increase, with an EPS of $0.92 compared to $0.61 a year ago, indicating strong financial performance [1] - The revenue exceeded the Zacks Consensus Estimate by 1.54%, while the EPS surprised by 10.84% over the consensus estimate [1] Financial Performance Metrics - Total nonperforming assets were reported at $86.03 million, above the average estimate of $81.30 million from two analysts [4] - The efficiency ratio stood at 61.8%, slightly better than the average estimate of 62.6% [4] - Net interest margin was reported at 3.8%, surpassing the average estimate of 3.7% [4] - Total nonaccrual loans held for investment (LHFI) were $80.11 million, compared to the estimated $76.86 million [4] - Net recoveries charge-offs to average loans were 0.1%, better than the average estimate of 0.2% [4] - Average balances of total earning assets were $16.75 billion, below the estimated $17.04 billion [4] - Net interest income (FTE) was $158.44 million, exceeding the average estimate of $157.11 million [4] - Total noninterest income reached $40.95 million, above the average estimate of $39.24 million [4] - Net interest income was reported at $155.85 million, higher than the average estimate of $153.86 million [4] Stock Performance - Trustmark shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Trustmark reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing an increase from $0.61 per share a year ago, resulting in an earnings surprise of 10.84% [1] - The company achieved revenues of $199.39 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.54%, and up from $189.85 million year-over-year [2] - Trustmark has outperformed the S&P 500 with a 2.4% increase in shares since the beginning of the year, compared to the S&P 500's gain of 2.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $193.03 million, and for the current fiscal year, it is $3.20 on revenues of $790.47 million [7] - The Zacks Industry Rank for Banks - Southeast is in the top 15% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Trustmark Corporation reported net income of $56.3 million in Q4 2024, with diluted earnings per share of $0.92, a 9.7% increase from the prior quarter [2]. - For the full year 2024, net income from adjusted continuing operations was $186.3 million, or $3.04 per diluted share, reflecting a 17.0% increase compared to the prior year [4]. - Net income for Q4 2024 reached $56,312,000, representing a 9.7% increase from Q3 2024 and a 55.9% increase compared to Q4 2023 [37]. - Basic earnings per share from continuing operations for Q4 2024 was $0.92, up 9.5% from the previous quarter and up 67.3% year-over-year [37]. - Net income for the year ended December 31, 2024, was $223,009,000, compared to $165,489,000 in 2023, marking an increase of about 34.8% [46]. - The diluted EPS from adjusted continuing operations for the year ended December 31, 2024, was $3.04, an increase from $2.60 in the previous year, reflecting a growth of approximately 17% [74]. Revenue and Income - Total revenue from continuing operations in 2024 was $561.0 million, while total revenue from adjusted continuing operations was $740.5 million, an increase of $39.2 million, or 5.6%, from the prior year [9]. - Noninterest income from adjusted continuing operations totaled $156.1 million, up $7.7 million, or 5.2%, from the prior year [9]. - Total noninterest income for Q4 2024 was $40,950,000, an increase of 9.0% from Q3 2024 and an 11.9% increase year-over-year [37]. - Noninterest income for the year ended December 31, 2024, totaled $148,433,000, compared to $37,419,000 in 2023, indicating a significant increase [46]. Expenses and Efficiency - The efficiency ratio improved by 400 basis points to 63.26% in 2024, indicating enhanced operational efficiency [9]. - Total noninterest expense for Q4 2024 was $124,430,000, a slight increase of 0.9% from Q3 2024 but a decrease of 1.4% year-over-year [37]. - Noninterest expense (GAAP) for the year ended December 31, 2024, was $495,696 thousand, slightly down from $487,790 thousand in the previous year [75]. - The efficiency ratio (Non-GAAP) improved to 61.77% for the quarter ended December 31, 2024, compared to 66.90% in the previous quarter, indicating enhanced operational efficiency [75]. Assets and Liabilities - Total assets decreased by $327,950 thousand, or 1.8%, from the previous quarter and by $569,767 thousand, or 3.0%, year over year [36]. - Total liabilities decreased by $310,181 thousand, or 1.9%, from the previous quarter and by $870,247 thousand, or 5.1%, year over year [36]. - Total assets as of December 31, 2024, were $18,152,422,000, a decrease from $18,480,372,000 in the previous quarter [70]. - Total liabilities were reported at $16,249,800,000, reflecting a decrease from $16,584,000,000 in the previous quarter [42]. Loans and Deposits - Loans held for investment (HFI) totaled $13.1 billion at year-end 2024, reflecting a year-over-year increase of $139.4 million, or 1.1% [10]. - Total deposits decreased by $461.6 million, or 3.0%, in 2024, primarily due to intentional declines in public funds and brokered deposits [11]. - Total deposits as of December 31, 2024, were $15,108,100,000, a slight decrease from $15,569,760,000 as of December 31, 2023, representing a decline of about 3.0% [45]. - Total interest-bearing deposits reached $12,799,500,000, a decrease from $13,087,900,000 in the previous quarter [42]. Dividends and Shareholder Equity - Trustmark's Board of Directors announced a 4.3% increase in the quarterly dividend to $0.24 per share, raising the indicated annual dividend rate to $0.96 per share [6]. - Shareholders' equity increased by $42,144 thousand, or 2.3%, from the previous quarter and by $166,219 thousand, or 9.7%, year over year [36]. - Total shareholders' equity as of December 31, 2024, was $1,962,327,000, a slight decrease from $1,980,096,000 in the previous quarter [70]. Credit Quality - The allowance for credit losses (ACL) on loans held for investment increased by $2,341 thousand, or 1.5%, from the previous quarter and by $20,903 thousand, or 15.0%, year over year [36]. - Total nonperforming assets increased to $86,026,000, a 10.7% increase from the previous quarter and a 19.5% decrease year-over-year [39]. - Nonaccrual loans held for investment (LHFI) totaled $80,109,000, reflecting an 8.5% increase from the prior quarter and a 19.9% decrease from the same quarter last year [39]. - Loans past due over 90 days decreased to $4,092,000, down 23.5% from the previous quarter and 29.3% year-over-year [39]. Investment and Securities - Trustmark National Bank recognized a gain of $228.3 million ($171.2 million net of taxes) from the sale of its subsidiary Fisher Brown Bottrell Insurance, Inc. on May 31, 2024 [56]. - Trustmark restructured its investment securities portfolio, selling $1.561 billion of available for sale securities at an average yield of 1.36%, resulting in a loss of $182.8 million ($137.1 million net of taxes) [56]. - Total securities available for sale amounted to $1,692.534 million as of December 31, 2024, a decrease from $1,762.878 million a year earlier [54]. Market Performance - The market value of the stock closed at $35.37 on December 31, 2024, up from $27.88 a year earlier [51]. - Return on average equity from continuing operations increased to 11.36% for the quarter ended December 31, 2024, compared to 8.44% for the same period in 2023 [51]. - The return on average tangible equity from continuing operations was 13.68% for the quarter ended December 31, 2024, compared to 12.43% in the previous year [51].

Financial Performance - Trustmark reported net income of $51.3 million, or basic and diluted EPS of $0.84, for Q3 2024, compared to $34.0 million, or EPS of $0.56, in Q3 2023, reflecting a 50.9% increase in net income [264]. - For the nine months ended September 30, 2024, Trustmark's net income was $166.7 million, or EPS of $2.72, compared to $129.4 million, or EPS of $2.12, for the same period in 2023, representing a 28.9% increase in net income [265]. - Trustmark's return on average tangible equity for Q3 2024 was 12.86%, up from 11.32% in Q3 2023, indicating improved profitability [264]. - The return on average equity for the three months ended September 30, 2024, was 10.62%, an increase from 8.53% in the same period of 2023 [285]. - Net income from continuing operations for the three months ended September 30, 2024, was $51,330, compared to $30,553 for the same period in 2023, reflecting a 67.9% increase [295]. Revenue and Income Sources - Total revenue for Q3 2024 was $192.3 million, an increase of $16.7 million, or 9.5%, compared to Q3 2023, primarily due to increased net interest income [267]. - Net interest income for Q3 2024 totaled $154.7 million, an increase of $16.1 million, or 11.6%, compared to Q3 2023, driven by higher interest and fees from loans [270]. - Noninterest income for Q3 2024 was $37.6 million, an increase of $641 thousand, or 1.7%, compared to Q3 2023, while for the nine months ended September 30, 2024, it decreased by $176.2 million due to a loss on the sale of available for sale securities [271]. - Total interest income for the three months ended September 30, 2024, was $251,592, an increase of 10.1% compared to $228,522 for the same period in 2023 [285]. - Noninterest income (loss) for the three months ended September 30, 2024, was $(1,375), a decline from a positive $104 in the same quarter of 2023 [285]. Expenses and Cost Management - Noninterest expense for Q3 2024 decreased by $7.0 million, or 5.4%, totaling $123.3 million compared to Q3 2023 [272]. - Services and fees for the nine months ended September 30, 2024 totaled $74.9 million, a decrease of $5.4 million, or 6.8%, compared to the same period in 2023 [272]. - The total noninterest expense decreased by 5.4% to $123.270 million for the three months ended September 30, 2024, primarily due to a reduction in salaries and employee benefits [315]. Asset and Loan Management - Total assets increased to $18,480,372 as of September 30, 2024, compared to $18,390,839 a year earlier, reflecting a growth of 0.5% [286]. - Loans Held for Investment (LHFI) increased by $149.6 million, or 1.2%, totaling $13.100 billion compared to December 31, 2023 [277]. - Total loans (LHFI + LHFS) rose to $13,316,565, up 2.6% from $12,979,503 in the previous year [286]. - Nonperforming assets decreased by $29.1 million, or 27.3%, totaling $77.7 million compared to December 31, 2023 [276]. - The allowance for credit losses (ACL) on loans held for investment (LHFI) increased to $157.9 million at the end of September 2024, compared to $134.0 million at the end of September 2023, reflecting a year-over-year increase of 17.8% [364]. Capital and Dividends - The company declared a quarterly cash dividend of $0.23 per share, payable on December 15, 2024, to shareholders of record on December 1, 2024 [258]. - Trustmark's total shareholders' equity increased to $1,980,096, up from $1,570,351, representing a growth of 25.9% year-over-year [291]. - Trustmark's indicated dividend for 2024 is $0.92 per common share, the same as dividends per common share declared in 2023 [390]. Regulatory and Economic Environment - The Federal Reserve maintained the target federal funds rate at 5.25% to 5.50% from July 2023 through September 2024, impacting Trustmark's net interest margin [260]. - The FDIC finalized changes to its Statement of Policy on Bank Merger Transactions, which may complicate regulatory approval for bank mergers [280]. - Trustmark is evaluating the potential impact of a proposed FDIC rule that could classify more deposits as brokered deposits, potentially increasing deposit insurance assessment costs [282]. Liquidity and Funding - Trustmark's liquidity strategy includes the use of wholesale funding sources to address seasonal fluctuations in deposit and loan demand [394]. - Trustmark's total uninsured deposits were $5.402 billion, or 35.4% of total deposits, at September 30, 2024, compared to $5.601 billion, or 36.0%, at December 31, 2023 [378]. - Trustmark had $540.0 million held in an interest-bearing account at the FRBA as of September 30, 2024, down from $712.0 million at December 31, 2023 [398]. Interest Rate Risk Management - Trustmark uses financial simulation models to measure interest rate exposure and assess the impact on net interest income under various scenarios [426]. - Management's Asset/Liability Committee utilizes simulation models to provide extensive information on potential impacts of interest rate changes on net interest income [426]. - The significant increase in short-term market interest rates is expected to affect the balance sheet composition and rates [426].

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $51.3 million, with diluted earnings per share of $0.84, reflecting a 26.7% growth in net income from adjusted continuing operations and a 282 basis point improvement in the efficiency ratio [3][4] - Net interest income increased by 9.5% linked-quarter to $158 million, driven by the restructuring of the investment securities portfolio [4][14] - Non-interest income from adjusted continuing operations totaled $37.6 million, a decrease of $0.7 million linked-quarter but an increase of $0.6 million year-over-year [5][16] - Non-interest expense increased by $4.9 million during the quarter, primarily due to salary merit increases, annual incentive accruals, and an increase in ORE expense [5][17] - Capital ratios improved, with the CET1 ratio at 11.3% and total risk-based capital ratio at 13.71% [6][18] Business Line Data and Key Metrics Changes - Loans held for investment were relatively flat, decreasing by $55 million linked-quarter but increasing by $290 million year-over-year [4][7] - The commercial loan portfolio remains diversified, with no single category exceeding 14% [9] - The provision for credit losses for loans held for investment was $7.9 million, driven by specific reserves for individually analyzed credits [9][10] Market Data and Key Metrics Changes - Deposits totaled $15.2 billion, with a linked-quarter decrease of $222 million or 1.4%, but a year-over-year increase of $139 million or 0.9% [10][11] - Non-interest-bearing DDA balances remained resilient, declining by $11 million linked-quarter and remaining above 20% of the deposit base [11][12] - The cost of interest-bearing deposits increased by 6 basis points from the prior quarter to 2.81% [11][13] Company Strategy and Development Direction - The company expects loan growth of low single digits for 2024 and stable deposits, excluding brokered deposits [19] - There is a focus on organic growth and potential market expansion through M&A opportunities [20][36] - The company is actively working on expanding business lines in markets where it has a presence, such as Houston and Atlanta [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining the deposit base and net interest margin despite potential Fed rate cuts [24][25] - The company anticipates net interest income to increase in the mid-single digits in 2024, with a projected net interest margin of approximately 3.50% [19][20] - Credit quality metrics remain solid, with expectations for net charge-offs to remain below the industry average [20] Other Important Information - The Board declared a $0.23 dividend payable on December 15 to shareholders of record on December 1 [6] - Tangible book value per share increased by 6.5% from the prior quarter and 32.9% from the prior year, reaching $26.88 [6] Q&A Session Summary Question: Margin trends and deposit pricing actions - Management discussed the successful deposit pricing actions taken to mitigate the impact of Fed rate cuts and expressed confidence in maintaining the deposit base [23][24] Question: Loan yield impact and fee guidance - Management clarified that there were no unusual impacts on loan fees and provided guidance on adjusted continuing operations for non-interest income and expenses [27][28] Question: Loan balances and market expansion - Management reiterated guidance for low single-digit loan growth and discussed opportunities for market expansion through M&A and organic growth [35][36] Question: Increase in non-performing assets (NPAs) - Management provided details on the increase in NPAs, attributing it to two corporate credits that had turned troubled [42][45] Question: Interest rate moves and credit upgrades - Management indicated that while recent rate cuts are beneficial, it is still early to assess their full impact on credit upgrades [48][49]

For the quarter ended September 2024, Trustmark (TRMK) reported revenue of $195.58 million, up 0.7% over the same period last year. EPS came in at $0.84, compared to $0.64 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $191.5 million, representing a surprise of +2.13%. The company delivered an EPS surprise of +1.20%, with the consensus EPS estimate being $0.83.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

Trustmark (TRMK) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.20%. A quarter ago, it was expected that this holding company for Trustmark National Bank would post earnings of $0.61 per share when it actually produced earnings of $0.66, delivering a surprise of 8.20%.Over the last ...