Trustmark(US:TRMK)2025-11-05 22:03Financial Performance - Trustmark reported net income of $56.8 million, or basic and diluted EPS of $0.94, for Q3 2025, compared to $51.3 million, or EPS of $0.84, in Q3 2024, reflecting a return on average tangible equity of 12.84%[232]. - For the nine months ended September 30, 2025, Trustmark reported net income of $166.3 million, or basic and diluted EPS of $2.75, compared to $166.7 million, or EPS of $2.72, for the same period in 2024[233]. - Net income for Q3 2025 was $56,787,000, up 9.54% from $51,330,000 in Q3 2024[251]. - Trustmark's net income from continuing operations for Q3 2025 was $56.787 million, compared to $51.330 million in Q3 2024[260]. - Trustmark's total shareholders' equity reached $2.114 billion at September 30, 2025, an increase of $151.9 million, or 7.7%, compared to December 31, 2024[349]. Revenue and Income Sources - Total revenue for Q3 2025 was $202.4 million, an increase of $10.1 million, or 5.3%, compared to Q3 2024, driven by increases in net interest income and noninterest income[236]. - Noninterest income for Q3 2025 totaled $39.9 million, a 6.3% increase from Q3 2024, driven by growth in mortgage banking[238]. - Noninterest income for the three months ended September 30, 2025, increased by $2,369 thousand, or 6.3%, compared to the same period in 2024, totaling $39,931 thousand[276]. - Noninterest income for the General Banking Segment increased by $185.6 million for the first nine months of 2025 compared to the same period in 2024[285]. Interest Income and Expenses - Net interest income for Q3 2025 totaled $162.4 million, an increase of $7.7 million, or 5.0%, compared to Q3 2024, while interest expense decreased by $16.6 million, or 17.1%[237]. - Total interest income for Q3 2025 was $242,717,000, a decrease of 3.47% from $251,592,000 in Q3 2024[251]. - Interest income-FTE for Q3 2025 totaled $245.5 million, a decrease of $9.4 million, or 3.7%, compared to Q3 2024[265]. - Interest expense for Q3 2025 was $80.3 million, a decrease of $16.6 million, or 17.1%, compared to Q3 2024[267]. Asset and Loan Growth - Loans held for investment (LHFI) reached $13.548 billion at September 30, 2025, marking a 3.5% increase from December 31, 2024[242]. - Total loans increased to $13,776,297,000 in 2025 from $13,316,565,000 in 2024, representing a growth of 3.47%[252]. - Loans secured by real estate rose by $118.4 million, or 1.2%, with other real estate secured loans increasing by $421.9 million, or 25.8%[306]. - Other commercial loans and leases increased by $216.5 million, or 36.8%, during the first nine months of 2025, mainly due to growth in the Mississippi and Georgia market regions[305]. Credit Quality and Loss Provisions - Provision for credit losses (PCL) on loans held for investment (LHFI) for Q3 2025 was $1.4 million, significantly lower than $7.9 million in Q3 2024, reflecting improved credit quality[240]. - The net provision for credit losses (PCL) for the General Banking Segment decreased by $22.0 million, or 65.3%, totaling $11.7 million for the nine months ended September 30, 2025[285]. - Nonperforming assets increased to $92.3 million as of September 30, 2025, a 7.3% rise compared to December 31, 2024[241]. - The Allowance for Credit Losses (ACL) on Loans Held for Investment (LHFI) was $165.2 million, an increase of $5.0 million, or 3.1%, compared to December 31, 2024[326]. Deposits and Liquidity - Total deposits were $15.631 billion at September 30, 2025, an increase of 3.5% compared to December 31, 2024[244]. - Noninterest-bearing deposits rose by $247.6 million, or 8.1%, during the first nine months of 2025, driven by growth in commercial and public accounts[340]. - Trustmark's liquidity and capital resources are deemed sufficient to meet known cash flow requirements as of September 30, 2025[371]. - Trustmark had $1.329 billion in unencumbered Treasury and agency securities available as of September 30, 2025, compared to $1.107 billion at December 31, 2024[366]. Shareholder Returns and Stock Performance - Dividends per common share for the nine months ended September 30, 2025, were $0.72, an increase from $0.69 in 2024[355]. - Trustmark repurchased 1.0 million shares of its common stock valued at $37.1 million during the first nine months of 2025[358]. - The market value per share closed at $39.60, up from $31.82 in the previous year, reflecting a growth of 24.67%[252]. Economic and Regulatory Environment - The Federal Reserve lowered the target federal funds rate to a range of 4.00% to 4.25% in September 2025, impacting Trustmark's net interest margin[226]. - Trustmark's customer base is wholly domestic, but international economic conditions may affect its financial condition and results of operations[225]. - Economic activity showed mixed signals, with strong equity market performance and consumer spending, but persistent inflationary pressures and a softening labor market[225]. - The company is actively monitoring legislative and regulatory developments that may impact its operations, including the recent changes to the Community Reinvestment Act[246].