Trustmark(TRMK) - 2024 Q4 - Annual Results

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].