Trustmark Corporation Announces Third Quarter 2026 Financial Results

Earnings Performance Supported by Net Interest Income Growth, Strong Credit Quality and Strategic Actions to Enhance Future Profitability

JACKSON, Miss.--(BUSINESS WIRE)--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $58.1 million in the third quarter of 2026, representing diluted earnings per share of $1.00. Trustmark’s performance during the third quarter produced a return on average tangible equity (ROATE) of 12.72% and a return on average assets (ROAA) of 1.21%. The Board of Directors declared a quarterly cash dividend of $0.25 per share payable December 15, 2026, to shareholders of record on December 1, 2026.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/20261027496475/en

Third Quarter Highlights

• As previously disclosed, Trustmark sold 34 bank branch properties in the third quarter and simultaneously entered into triple net lease agreements for each of the branches sold (“sale-leaseback transaction”). The sale-leaseback transaction resulted in a pre-tax gain of $61.5 million after transaction-related expenses. Following the completion of the sale-leaseback transaction, Trustmark executed a restructuring of its investment securities portfolio by reclassifying its securities held to maturity to securities available for sale. Trustmark then sold $629.5 million of lower-yielding investment securities with a weighted-average yield of approximately 1.4% and purchased $628.0 million of investment securities with a weighted-average yield of approximately 5.0%, which resulted in a pre-tax loss of $61.5 million. This pre-tax loss offset the pre-tax gain generated by the sale-leaseback transaction.
• Loans held for investment (HFI) totaled $13.9 billion, down 0.3% from the prior quarter and up 2.4% year-over-year
• Credit quality remained strong; nonperforming assets totaled $57.0 million, representing 0.40% of loans HFI and loans held for sale (HFS)
• Deposits totaled $16.1 billion, a decrease of 0.1% from the prior quarter and an increase of 2.7% year-over-year; excluding the intentional decline in brokered deposits, deposits increased 1.2% linked-quarter
• Revenue totaled $207.1 million, down 0.5% from the prior quarter and up 2.4% year-over-year
• Net interest income (FTE) totaled $170.6 million, an increase of 1.2% linked-quarter and 3.2% year-over-year; the net interest margin totaled 3.84%, unchanged from the prior quarter
• Noninterest expense totaled $134.4 million, up 0.6% linked-quarter and 2.7% year-over-year
• Repurchased $60.9 million, or approximately 1.4 million shares, of common stock during the first nine months of 2026, including $20.1 million, or approximately 428 thousand shares, in the third quarter

Duane A. Dewey, President and CEO, stated, “Our third quarter results demonstrated the strength of our core franchise. Net interest income continued to grow, credit quality remained excellent, and excluding non-core deposit runoff, deposit growth was solid. During the quarter, we completed strategic actions that improve the flexibility and future earnings capacity of our balance sheet while continuing to return capital to shareholders through dividends and share repurchases. We believe Trustmark is well-positioned to deliver sustainable long-term value creation.”

Balance Sheet Management

• Loans HFI decreased $43.9 million, or 0.3%, during the quarter and increased $321.0 million, or 2.4%, year-over-year
• Deposits were stable linked-quarter and up $427.1 million, or 2.7%, year-over-year
• Maintained strong capital position with CET1 ratio of 11.98% and total risk-based capital ratio of 14.57%

Despite elevated payoff activity and a highly competitive lending environment, loans HFI increased $321.0 million, or 2.4%, year-over-year supported by growth in the commercial and industrial, 1-4 family mortgage, construction, land development, consumer, and other loans and leases. Loans HFI totaled $13.9 billion at September 30, 2026, reflecting a decrease of $43.9 million, or 0.3%, linked-quarter. Production trends remained solid during the quarter, although growth was offset by continued elevated commercial loan payoffs. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $16.1 billion at September 30, 2026, down $13.2 million, or 0.1%, from the prior quarter, and up $427.1 million, or 2.7%, year-over-year. Excluding the intentional decline in brokered deposits of $197.5 million in the third quarter, deposits increased $184.3 million, or 1.2%, linked-quarter, reflecting growth in personal, nonpersonal and public fund balances. Trustmark continues to maintain a strong liquidity position as loans HFI represented 86.4% of total deposits at the end of the third quarter. Noninterest-bearing deposits represented 20.3% of total deposits at September 30, 2026. The average balance of total deposits in the third quarter was $16.1 billion, an increase of $309.1 million, or 2.0%, linked-quarter and $716.2 million, or 4.7%, year-over-year. Interest-bearing deposit costs totaled 2.09% for the third quarter, an increase of 9 basis points linked-quarter, while the cost of total deposits was 1.67%, an increase of 8 basis points from the prior quarter.

During the third quarter, Trustmark repurchased $20.1 million, or approximately 428 thousand of its common shares. During the first nine months of 2026, Trustmark repurchased $60.9 million, or approximately 1.4 million of its common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2026, under which $100.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2026. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At September 30, 2026, Trustmark’s tangible equity to tangible assets ratio was 9.37%, while the total risk-based capital ratio was 14.57%. Tangible book value per share was $30.42 at September 30, 2026, a decrease of 2.1% from the prior quarter and an increase of 2.8% from the prior year, reflecting the impact of higher market interest rates on accumulated other comprehensive income (loss), net of tax, related to the investment securities portfolio.

Credit Quality

• Net provision for credit losses was $2.3 million in the third quarter
• Net charge-offs totaled $1.0 million for the third quarter and represented 0.03% of average loans
• Allowance for credit losses (ACL) represented 1.07% of loans HFI and 560.10% of nonaccrual loans, excluding individually analyzed loans, at September 30, 2026

Nonaccrual loans totaled $54.3 million at September 30, 2026, up $4.7 million from the prior quarter. Other real estate totaled $2.7 million, reflecting a decrease of $2.5 million from the prior quarter. Collectively, nonperforming assets totaled $57.0 million at September 30, 2026, an increase of $2.2 million, or 4.0%, from the prior quarter and represented 0.40% of loans HFI and HFS.

The provision for credit losses for loans HFI was $1.2 million in the third quarter. The provision for credit losses for off-balance sheet credit exposures was $1.1 million in the third quarter, primarily driven by a $203.0 million increase in unfunded commitments. Collectively, the provision for credit losses totaled $2.3 million in the third quarter compared to a provision of $6.0 million (excluding the $9.2 million release in provision related to the mortgage loan sale) in the prior quarter and $1.7 million in the third quarter of 2025.

Allocation of Trustmark’s $148.3 million ACL on loans HFI represented 0.90% of commercial loans and 1.61% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.07% at September 30, 2026. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Net interest income (FTE) totaled $170.6 million in the third quarter, up $2.0 million, or 1.2%, linked-quarter
• Net interest margin totaled 3.84% in the third quarter, unchanged from the prior quarter
• Wealth management revenue expanded 2.2% linked-quarter to $11.2 million

Revenue in the third quarter totaled $207.1 million, a decrease of 0.5% from the prior quarter. The linked-quarter change reflects a decline in noninterest income offset in part by growth in net interest income. Net interest income (FTE) in the third quarter expanded to $170.6 million, resulting in a net interest margin of 3.84%, unchanged from the prior quarter. Fee income reflected normal quarterly variability, including lower mortgage banking revenue and cash management fees, partly offset by continued growth in wealth management revenue. Noninterest income in the third quarter totaled $39.5 million, a decrease of $3.1 million, or 7.2%, from the prior quarter.

Wealth management revenue in the third quarter totaled $11.2 million, an increase of $239 thousand, or 2.2%, from the prior quarter and $1.4 million, or 13.9%, year-over-year. The growth linked-quarter reflected increased brokerage services revenue offset in part by lower trust management revenue while the year-over-year growth reflected higher trust management and brokerage services revenue.

Service charges on deposit accounts totaled $10.6 million in the third quarter, up $251 thousand, or 2.4%, linked-quarter and down $625 thousand, or 5.6%, year-over-year. Bank card and other fees totaled $8.1 million in the third quarter, down $594 thousand from the prior quarter principally due to reduced customer derivative revenue and miscellaneous other fees. Year-over-year, bank card and other fees declined $169 thousand primarily due to lower interchange income and miscellaneous other fees.

Mortgage loan production in the third quarter totaled $421.4 million, down 11.7% from the prior quarter and up 8.2% year-over-year. Mortgage banking revenue totaled $7.9 million in the third quarter, down $1.0 million, or 11.6%, linked-quarter and $302 thousand, or 3.7%, year-over-year. The linked-quarter decline was principally attributable to reduced gain on sale of loans, net.

Other, net totaled $1.7 million in the third quarter, a decline of $1.9 million from the prior quarter reflecting lower investment partnership and cash management revenue. Year-over-year other, net decreased $705 thousand, reflecting decreased cash management revenue.

The gain on the sale-leaseback transaction of $61.5 million offset the securities losses of $61.5 million resulting from the restructuring of the investment securities portfolio.

Noninterest Expense

• Total noninterest expense increased $753 thousand, or 0.6%, linked-quarter
• Salaries and employee benefits expense increased $1.7 million, or 2.3%, linked-quarter
• Other expense declined $1.7 million, or 10.4%, linked-quarter

Expenses remained generally stable during the quarter. Higher occupancy costs associated with the branch sale-leaseback transaction were substantially offset by disciplined management of personnel and discretionary expenses. Noninterest expense in the third quarter totaled $134.4 million, an increase of $753 thousand, or 0.6%, from the prior quarter and $3.5 million, or 2.7%, year-over-year. Salaries and employee benefits expense totaled $74.7 million in the third quarter, an increase of $1.7 million, or 2.3%, linked-quarter and $3.2 million, or 4.4%, year-over-year. Net occupancy-premises expense totaled $8.6 million, an increase of $827 thousand, or 10.7%, linked-quarter and $781 thousand, or 10.0%, year-over-year. The increases were driven by increased lease, maintenance and utility expense. Total other expense in the third quarter was $14.3 million, a decrease of $1.7 million, or 10.4%, linked-quarter and $2.2 million, or 13.2%, year-over-year. The linked-quarter change is attributable to decreased other real estate expense, other miscellaneous expense, and loan expense.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 28, 2026, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, November 11, 2026, in archived format at the same web address or by calling (855) 669-9658, passcode 6657939.

Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations or financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

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, conditions and changes, including volatility, in the credit and financial markets, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels, a slowdown in economic growth, changes in our ability to measure the fair value of assets in our portfolio, changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, potential market or regulatory effects of the current United States presidential administration’s policies, changes to the credit rating of U.S. Government securities and other risks described in our filings with the SEC.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

Trustmark Investor Contacts:
Joseph E. Bond
Treasurer and Principal Financial Officer
601-208-7298

F. Joseph Rein, Jr.
Executive Vice President
601-208-6898

Trustmark Media Contact:
Melanie A. Morgan
Executive Vice President
601-208-2979