Trustmark(US:TRMK)2025-10-28 20:40Financial Performance - Trustmark Corporation reported net income of $56.8 million for Q3 2025, with diluted earnings per share of $0.94, reflecting a return on average tangible equity of 12.84% and a return on average assets of 1.21%[2]. - Total revenue grew to $202.4 million, an increase of 1.9% linked-quarter and 5.3% year-over-year, driven by net interest income growth[8]. - Net income for Q3 2025 was $55,841,000, reflecting a 10.6% increase from $51,330,000 in Q3 2024[35]. - Basic earnings per share from continuing operations increased by 11.9% year-over-year to $0.92 from $0.84[35]. - Net income from continuing operations for Q3 2025 was $56,787,000, an increase from $51,330,000 in Q3 2024, representing a year-over-year growth of 10.4%[70]. Loans and Deposits - Loans held for investment (HFI) totaled $13.5 billion, increasing by $83.4 million, or 0.6%, linked-quarter and $448.0 million, or 3.4%, year-over-year[5]. - Total deposits reached $15.6 billion, up $515.1 million, or 3.4%, from the prior quarter and $390.0 million, or 2.6%, year-over-year; noninterest-bearing deposits increased by 5.9% linked-quarter[6]. - Loans past due over 90 days rose to $4,853,000, marking a 25.9% increase from the previous quarter and a 9.3% decrease year-over-year[37]. - The total amount of loans secured by 1-4 family residential properties was $3.055 billion as of September 30, 2025[54]. Interest Income and Expenses - Net interest income (FTE) was $165.2 million, up 2.4% linked-quarter and 4.6% year-over-year, with a net interest margin of 3.83%[19]. - Total interest income-FTE for Q3 2025 was $240,080,000, a decrease of 3.7% year-over-year from $254,897,000[35]. - Total noninterest expense rose by 6.2% year-over-year to $125,114,000 from $123,270,000[35]. - Total noninterest expense (GAAP) for Q3 2025 was $130,933,000, compared to $123,270,000 in Q3 2024, showing an increase of 6.2%[71]. Asset Quality - Nonperforming assets totaled $92.3 million, representing 0.67% of loans HFI and loans held for sale at September 30, 2025[11]. - The provision for credit losses was $1.7 million in Q3 2025, a decrease from $4.7 million in the prior quarter[12]. - The allowance for credit losses (ACL) on loans held for investment decreased to $165,242,000, a 1.8% decline from the previous quarter but a 4.6% increase year-over-year[39]. - Total nonperforming assets increased to $92,280,000, a 2.6% increase from the previous quarter and an 18.7% increase year-over-year[37]. Shareholder Equity and Dividends - Shareholders' equity increased by $43,479 thousand, or 2.1%, from $2,070,789 thousand in the previous quarter to $2,114,268 thousand[33]. - Dividends per share remained stable at $0.24, a 4.3% increase from $0.23 year-over-year[35]. - The tangible book value per share increased to $29.60, reflecting a 3.0% increase from the prior quarter and 10.1% from the prior year[10]. Capital Ratios and Efficiency - Total risk-based capital ratio stands at 14.33% as of September 30, 2025, up from 13.71% in Q3 2024[48]. - Efficiency ratio for Q3 2025 is 61.98%, an improvement from 63.79% in Q3 2024[48]. - Common equity tier 1 capital ratio improved to 11.88% as of September 30, 2025, compared to 11.70% in the previous quarter[66]. Investment Activities - Trustmark recognized a gain of $228.3 million ($171.2 million net of taxes) from the sale of its subsidiary, Fisher Brown Bottrell Insurance, Inc.[53]. - 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)[53]. - Trustmark's investment strategy focuses on asset quality, with 100% of the securities portfolio in U.S. Treasury and government agency obligations[52].