Trustmark(US:TRMK)2026-01-27 21:40Financial Performance - Trustmark Corporation reported net income of $57.9 million for Q4 2025, with diluted earnings per share of $0.97, and total net income for the year at $224.1 million, or $3.70 per share [2]. - Total revenue reached a record $799.8 million in 2025, an increase of $238.8 million, or 42.6%, compared to the previous year [16]. - Net income for Q4 2025 was $57,874,000, reflecting a 1.9% increase from Q3 2025 and a 2.8% increase year-over-year [36]. - Income from continuing operations before income taxes was $70,734,000, a 1.4% increase from Q3 2025 and a 9.0% increase year-over-year [36]. - Net income from continuing operations for the quarter ended December 31, 2025, was $57,874 thousand, an increase from $56,312 thousand in Q4 2024, reflecting a growth of 2.8% [71]. Revenue and Income Sources - Wealth management revenue reached $40.1 million in 2025, up 7.7% from the previous year, while mortgage banking revenue totaled $33.1 million, an increase of 24.2% [8]. - Total noninterest income rose to $41,235,000, up 3.3% from Q3 2025 and 0.7% year-over-year [36]. - Total noninterest income for the year ended December 31, 2025, was $163,640, a significant recovery from a loss of $23,419 in the previous year [44]. Assets and Liabilities - Total assets increased to $18,925,211 thousand, a 0.7% increase from the previous quarter and a 4.3% increase year-over-year [34]. - Total liabilities increased to $16,803,534 thousand, a 0.7% increase from the previous quarter and a 3.8% increase year-over-year [34]. - Total deposits reached $15,499,780,000, a slight decrease from $15,630,970,000 in the prior quarter, indicating a reduction of approximately 0.84% [42]. Loans and Credit Quality - Loans held for investment (HFI) totaled $13.7 billion at year-end 2025, reflecting a year-over-year increase of $584.3 million, or 4.5% [7]. - Nonaccrual loans totaled $84.4 million at December 31, 2025, representing 0.65% of loans HFI [13]. - The allowance for credit losses (ACL) on loans held for investment improved by 4.9% quarter-over-quarter to $(157,071) thousand [34]. - The company reported net charge-offs of $7,621,000, a significant increase of 73.8% from the previous quarter [38]. Shareholder Equity and Capital Ratios - The capital position remained strong with a CET1 ratio of 11.72% and a total risk-based capital ratio of 14.41% at year-end 2025 [9]. - Shareholders' equity reached $2,121,677 thousand, a 0.4% increase from the previous quarter and an 8.1% increase year-over-year [34]. - Tangible common equity as of December 31, 2025, was $1,787,072 thousand, compared to $1,627,596 thousand at the end of 2024, indicating a growth of 9.8% [71]. Stock and Dividends - Trustmark repurchased approximately 2.2 million shares of common stock, or 3.5% of shares outstanding, during the year [9]. - Dividends per share remained stable at $0.24, with a 0.0% change from Q3 2025 and a 4.3% increase year-over-year [36]. Efficiency and Ratios - Trustmark's efficiency ratio improved to 62.69% in Q4 2025, compared to 63.26% in Q4 2024 [49]. - The return on average equity from continuing operations for the quarter ended December 31, 2025, was 10.80%, slightly up from 10.86% in 2024 [75]. - The efficiency ratio (Non-GAAP) for the quarter ended December 31, 2025, was 62.69%, compared to 63.26% for the year ended December 31, 2024 [76]. Investment Strategy - Trustmark's investment strategy focuses on asset quality, with 100% of the securities portfolio invested in U.S. Treasury securities and government agency obligations, ensuring no exposure to sub-prime collateral [58]. - The total securities held to maturity decreased to $1,207,454,000 as of December 31, 2025, down from $1,268,459,000 at the end of September 2025, representing a decline of 4.8% [57].