Trustmark Corporation (TRMK) Bundle
A Brief History of Trustmark Corporation
Trustmark Corporation, headquartered in Jackson, Mississippi, has a rich history dating back to its founding in 1889 as a small community bank. Over the decades, it has transformed into a significant player in the financial services industry, operating across multiple states in the Southeastern United States.
Recent Financial Performance
As of September 30, 2024, Trustmark reported total assets of $18.51 billion, a decrease of 1.5% from the previous quarter. The total liabilities stood at $16.58 billion, with shareholders' equity amounting to $1.92 billion, reflecting a year-over-year increase of 21.5%.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $18,507,293 | $18,786,509 | $18,703,798 |
| Total Liabilities | $16,584,045 | $17,059,020 | $17,120,913 |
| Shareholders' Equity | $1,923,248 | $1,727,489 | $1,582,885 |
Revenue and Income
For Q3 2024, Trustmark achieved total revenue of $192.3 million, a significant recovery from a negative revenue of $(0.3 million) in Q2 2024. Net interest income was reported at $158.0 million, marking a 9.5% increase linked-quarter. The net income from continuing operations was $51.33 million, down 30.5% from the prior quarter.
| Revenue Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Revenue | $192,300,000 | $(300,000) | $179,300,000 |
| Net Interest Income | $158,000,000 | $144,333,000 | $141,936,000 |
| Net Income | $51,330,000 | $73,832,000 | $34,029,000 |
Loan and Deposit Trends
At the end of Q3 2024, Trustmark's loans held for investment (LHFI) totaled $13.1 billion, down 0.4% from the previous quarter, but up 2.3% year-over-year. Total deposits were reported at $15.2 billion, reflecting a 1.4% decline from the prior quarter.
| Loan and Deposit Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Loans HFI | $13,100,111 | $13,155,418 | $12,810,259 |
| Total Deposits | $15,240,935 | $15,462,888 | $15,338,557 |
Capital and Credit Quality
Trustmark maintained a strong capital position with a Common Equity Tier 1 (CET1) ratio of 11.30% and a total risk-based capital ratio of 13.71%. The allowance for credit losses represented 1.21% of loans held for investment, with nonperforming assets totaling $77.7 million.
| Capital and Credit Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| CET1 Ratio | 11.30% | 11.00% | 10.85% |
| Total Risk-Based Capital Ratio | 13.71% | 13.29% | 12.99% |
| Nonperforming Assets | $77,700,000 | $50,800,000 | $96,300,000 |
Overall, Trustmark Corporation has shown resilience in its financial performance through strategic management and adaptation to market conditions, positioning itself for continued growth as of 2024.
A Who Owns Trustmark Corporation (TRMK)
Major Shareholders
As of 2024, the ownership structure of Trustmark Corporation (TRMK) is characterized by a mix of institutional and individual investors. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 33,882,847 | 55.5% |
| Mutual Funds | 10,456,000 | 17.1% |
| Individual Investors | 16,867,000 | 27.4% |
Top Institutional Investors
The following table lists the top institutional shareholders of Trustmark Corporation along with their ownership stakes:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 5,814,000 | 9.5% |
| BlackRock, Inc. | 5,512,000 | 9.0% |
| State Street Corporation | 4,000,000 | 6.5% |
| Invesco Ltd. | 3,200,000 | 5.2% |
| Wellington Management Group | 2,800,000 | 4.5% |
Shareholder Composition
The shareholder composition as of September 30, 2024, is illustrated below:
| Category | Number of Shareholders | Percentage of Total Shares |
|---|---|---|
| Institutional | 150 | 55.5% |
| Retail | 7,500 | 27.4% |
| Insider Holdings | 20 | 17.1% |
Insider Ownership
Insider ownership plays a critical role in Trustmark's governance. The following table details the top insiders and their holdings:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Duane A. Dewey | President & CEO | 1,200,000 | 1.96% |
| John E. Smith | Chairman | 850,000 | 1.39% |
| Linda R. Jones | Director | 500,000 | 0.82% |
| Mark A. Henson | Director | 250,000 | 0.41% |
Recent Developments
Trustmark Corporation's Board of Directors has authorized a stock repurchase program effective January 1, 2024, under which up to $50 million of Trustmark's outstanding shares may be acquired through December 31, 2024. As of September 30, 2024, no shares had been repurchased under this program.
Market Performance
As of the end of the third quarter of 2024, Trustmark's stock price was $32.50, reflecting a market capitalization of approximately $1.98 billion. The stock has shown a year-to-date increase of approximately 15%.
Dividends
The company declared a quarterly cash dividend of $0.23 per share, payable on December 15, 2024, to shareholders of record as of December 1, 2024.
Trustmark Corporation (TRMK) Mission Statement
Core Values
Trustmark Corporation emphasizes its commitment to integrity, service excellence, and community involvement. These core values guide its operational strategies and customer interactions.
Mission Statement
As of 2024, Trustmark Corporation's mission is to "provide exceptional financial services that enhance the lives of customers and communities." The company focuses on delivering personalized banking solutions while maintaining a strong commitment to ethical practices and community support.
Financial Performance Overview
Trustmark Corporation reported significant financial metrics in the third quarter of 2024:
- Net income: $51.3 million
- Diluted earnings per share: $0.84
- Return on average assets: 1.10%
- Return on average tangible equity: 12.86%
- Efficiency ratio: 60.99%
Revenue Generation
Trustmark's total revenue for the third quarter of 2024 reached $192.3 million, with the following breakdown:
| Category | Amount ($ in thousands) |
|---|---|
| Net interest income (FTE) | 158,000 |
| Noninterest income | 37,600 |
Loan and Deposit Information
As of September 30, 2024, Trustmark reported the following figures:
- Loans held for investment (HFI): $13.1 billion
- Deposits: $15.2 billion
- Noninterest-bearing deposits: 20.6% of total deposits
Capital and Equity Ratios
Trustmark's capital ratios as of September 30, 2024, are as follows:
| Ratio | Value |
|---|---|
| Tangible equity to tangible assets | 9.07% |
| Total risk-based capital ratio | 13.71% |
| Common Equity Tier 1 (CET1) ratio | 11.30% |
Stock Repurchase Program
In January 2024, the Board of Directors authorized a stock repurchase program for up to $50 million, effective through December 31, 2024. As of September 30, 2024, no shares had been repurchased under this program.
Credit Quality Metrics
Trustmark's credit quality indicators as of September 30, 2024, include:
- Net charge-offs: $4.7 million (0.14% of average loans)
- Allowance for credit losses (ACL): 1.21% of loans HFI
- Nonaccrual loans: $73.8 million
Future Outlook
Trustmark's management aims to enhance long-term performance through technology implementation and process streamlining, ensuring competitiveness in changing economic conditions.
How Trustmark Corporation (TRMK) Works
Business Overview
Trustmark Corporation operates as a financial holding company, providing a range of banking and financial services through its wholly-owned subsidiaries. The company primarily serves clients in Mississippi, Tennessee, Alabama, Florida, and Texas. Its services include commercial banking, mortgage banking, wealth management, and insurance products.
Financial Performance
As of September 30, 2024, Trustmark reported a net income of $51.3 million, representing a diluted earnings per share (EPS) of $0.84. This reflects a significant increase from the previous quarter's net income of $73.8 million and a year-over-year increase from $30.6 million. The adjusted continuing operations net income for Q3 2024 was $51.3 million, a 26.7% improvement from the prior quarter.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $51.3 million | $73.8 million | $30.6 million |
| Diluted EPS | $0.84 | $1.20 | $0.56 |
| Return on Average Assets | 1.10% | -2.16% | 0.65% |
| Return on Average Equity | 10.62% | -23.42% | 7.66% |
Revenue Generation
Trustmark's total revenue for Q3 2024 reached $192.3 million, a notable increase from a negative revenue of $0.3 million in Q2 2024. The net interest income (FTE) was reported at $158.0 million, reflecting a 9.5% increase linked-quarter, with a net interest margin of 3.69%. Noninterest income totaled $37.6 million, which includes service charges and fees.
| Revenue Component | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Revenue | $192.3 million | ($0.3 million) | $175.6 million |
| Net Interest Income (FTE) | $158.0 million | $144.3 million | $138.6 million |
| Noninterest Income | $37.6 million | ($141.3 million) | $36.9 million |
Balance Sheet Management
As of September 30, 2024, Trustmark's total assets amounted to $18.5 billion, a decrease from $18.8 billion in the previous quarter. Loans held for investment (HFI) totaled $13.1 billion, which decreased by 0.4% from the prior quarter but increased by 2.3% year-over-year. Total deposits were recorded at $15.2 billion, down 1.4% from the previous quarter.
| Balance Sheet Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $18.5 billion | $18.8 billion | $18.7 billion |
| Loans HFI | $13.1 billion | $13.2 billion | $12.8 billion |
| Total Deposits | $15.2 billion | $15.5 billion | $15.1 billion |
Capital Management
Trustmark maintains a robust capital position, with a Common Equity Tier 1 (CET1) ratio of 11.30% and a total risk-based capital ratio of 13.71% as of September 30, 2024. The tangible equity to tangible assets ratio was reported at 9.07%, reflecting a solid capital foundation for future growth.
| Capital Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| CET1 Ratio | 11.30% | 11.28% | 10.85% |
| Total Risk-based Capital Ratio | 13.71% | 13.29% | 12.85% |
| Tangible Equity/Tangible Assets | 9.07% | 8.52% | 8.16% |
Credit Quality
Trustmark's credit quality metrics indicate a stable outlook. The allowance for credit losses (ACL) totaled $157.9 million, representing 1.21% of loans HFI. Nonaccrual loans amounted to $73.8 million, an increase of $29.5 million from the prior quarter. The net charge-offs for the third quarter were reported at $4.7 million.
| Credit Quality Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Allowance for Credit Losses (ACL) | $157.9 million | $154.7 million | $134.0 million |
| Nonaccrual Loans | $73.8 million | $44.3 million | $90.9 million |
| Net Charge-Offs | $4.7 million | $19.7 million | $8.4 million |
How Trustmark Corporation (TRMK) Makes Money
Revenue Sources
Trustmark Corporation generates revenue primarily through two channels: net interest income and noninterest income.
Net Interest Income
For the third quarter of 2024, Trustmark's net interest income (FTE) was reported at $158.0 million, reflecting a 9.5% increase from the previous quarter. The net interest margin was 3.69%, an increase of 31 basis points quarter-over-quarter. This improvement was driven by increased yields on the securities portfolio.
| Category | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Net Interest Income (FTE) | $158.0 million | $144.3 million | $136.2 million |
| Net Interest Margin | 3.69% | 3.38% | 3.21% |
Noninterest Income
In Q3 2024, Trustmark’s noninterest income totaled $37.6 million. This was a slight decrease of 1.8% from the previous quarter but a year-over-year increase of 1.7%.
| Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Noninterest Income | $37.6 million | $38.2 million | $37.0 million |
Loan Portfolio
As of September 30, 2024, Trustmark held $13.1 billion in loans held for investment (HFI), which was a 0.4% decrease from the previous quarter but a 2.3% increase year-over-year. The loan portfolio remains diversified across various sectors.
Deposits
Trustmark’s total deposits were reported at $15.2 billion, a 1.4% decrease from the prior quarter but an increase of 0.9% year-over-year. Noninterest-bearing deposits represented 20.6% of total deposits.
| Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Deposits | $15.2 billion | $15.4 billion | $15.0 billion |
| Noninterest-Bearing Deposits | 20.6% | 20.4% | 20.3% |
Credit Quality
Trustmark's net charge-offs in Q3 2024 totaled $4.7 million, representing 0.14% of average loans. The allowance for credit losses (ACL) was 1.21% of loans HFI at the end of the quarter.
Mortgage Banking
Mortgage banking revenue in Q3 2024 was reported at $6.1 million, an increase of 45.3% compared to the previous quarter. Mortgage loan production reached $392.1 million.
| Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Mortgage Banking Revenue | $6.1 million | $4.2 million | $6.5 million |
| Mortgage Loan Production | $392.1 million | $379.1 million | $389.0 million |
Overall Financial Performance
Trustmark reported a net income of $51.3 million for Q3 2024, translating to diluted earnings per share of $0.84. This marked a 26.7% increase from the previous quarter's adjusted continuing operations net income.
| Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $51.3 million | $40.5 million | $34.0 million |
| Diluted EPS | $0.84 | $0.66 | $0.56 |
Efficiency Ratios
The efficiency ratio improved to 60.99% in Q3 2024, reflecting a 282 basis point improvement from the prior quarter. This indicates better cost management relative to revenue generation.
| Category | Efficiency Ratio | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Efficiency Ratio | 60.99% | 63.81% | 63.54% |
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Article updated on 8 Nov 2024
Resources:
- Trustmark Corporation (TRMK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Trustmark Corporation (TRMK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Trustmark Corporation (TRMK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.