Performance reflects Continued Loan and Deposit Growth, Stable Credit Quality, Expanded Fee Income, and Disciplined Noninterest Expense Management

JACKSON, Miss.--(BUSINESS WIRE)--Apr. 28, 2026-- Trustmark Corporation (NASDAQGS:TRMK) reported net income of $56.1 million in the first quarter of 2026, representing diluted earnings per share of $0.95. Trustmark’s performance during the first quarter produced a return on average tangible equity of 12.58% and a return on average assets of 1.20%. The Board of Directors declared a quarterly cash dividend of $0.25 per share payable June 15, 2026, to shareholders of record on June 1, 2026.

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First Quarter Highlights

• Loans held for investment (HFI) increased 1.5% linked-quarter and represented 88.3% of total deposits at March 31, 2026
• Credit quality remained stable, net charge-offs represented 0.04% of average loans
• Deposits expanded to $15.7 billion while the cost of total deposits declined 9 basis points linked-quarter to 1.63%
• Noninterest income increased 2.7% linked-quarter, reflecting in part growth in mortgage banking revenue
• Noninterest expense was unchanged linked-quarter, reflecting on-going expense management priorities

Duane A. Dewey, President and CEO, stated, “We continued to build upon the strong momentum from our record earnings in 2025 and are pleased with our strong performance in the first quarter of 2026. Our results reflect continued loan growth, stable credit quality, and an attractive core deposit base. In addition, we experienced continued growth in noninterest income while noninterest expense remained unchanged, reflecting our continued focus on expense management. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as a trusted financial partner.”

Balance Sheet Management

• Loans HFI increased $203.7 million, or 1.5%, during the quarter and $636.5 million, or 4.8%, year-over-year
• Deposits expanded $212.7 million, or 1.4%, linked-quarter and $631.8 million, or 4.2%, year-over-year
• Maintained strong capital position with CET1 ratio of 11.70% and total risk-based capital ratio of 14.37%
• Repurchased $19.8 million, or approximately 477 thousand shares, of common stock during the first quarter of 2026

Loans HFI totaled $13.9 billion at March 31, 2026, reflecting an increase of $203.7 million, or 1.5%, linked-quarter and $636.5 million, or 4.8%, year-over-year. The linked-quarter growth primarily reflected increases in commercial and industrial loans, construction, land development and other land loans, and other loans and leases offset in part by declines in other real estate secured loans and nonfarm, nonresidential loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.7 billion at March 31, 2026, an increase of $212.7 million, or 1.4%, from the prior quarter, driven by seasonal increases in public deposits. Year-over-year, deposits expanded $631.8 million, or 4.2%, driven by growth in personal and commercial deposits. Trustmark continues to maintain a strong liquidity position as loans HFI represented 88.3% of total deposits at the end of the first quarter. Noninterest-bearing deposits represented 19.7% of total deposits at March 31, 2026. Interest-bearing deposit costs totaled 2.02% for the first quarter, a decrease of 14 basis points linked-quarter, while the cost of total deposits was 1.63%, a decrease of 9 basis points from the prior quarter.

During the first quarter, Trustmark repurchased $19.8 million, or approximately 477 thousand common shares, which represented 0.8% of shares outstanding at year end 2025. 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 March 31, 2026, Trustmark’s tangible equity to tangible assets ratio was 9.62%, while the total risk-based capital ratio was 14.37%. Tangible book value per share was $30.58 at March 31, 2026, an increase of 1.0% from the prior quarter and 10.1% from the prior year.

Credit Quality

• Net charge-offs totaled $1.3 million, representing 0.04% of average loans in the first quarter
• Net provision for credit losses was $2.7 million in the first quarter
• Allowance for credit losses (ACL) represented 1.16% of loans HFI and 200.69% of nonaccrual loans, excluding individually analyzed loans at March 31, 2026

Nonaccrual loans totaled $96.7 million at March 31, 2026, up $12.3 million from the prior quarter primarily attributable to one commercial credit and $10.1 million year-over-year. Other real estate totaled $7.3 million, reflecting an increase of $359 thousand from the prior quarter and a decline of $1.0 million from the prior year. Collectively, nonperforming assets totaled $104.0 million, representing 0.73% of loans HFI and held for sale (HFS) at March 31, 2026.

The provision for credit losses for loans HFI was $4.7 million in the first quarter and was primarily attributable to loan growth, credit migration, and adjustments to the qualitative factors partially offset by changes in the macroeconomic forecast. The provision for credit losses for off-balance sheet credit exposures was a negative $1.9 million in the first quarter, primarily driven by a decrease in unfunded commitments and changes in the macroeconomic forecast partially offset by credit migration. Collectively, the provision for credit losses totaled $2.7 million in the first quarter compared to $1.2 million in the prior quarter and $5.3 million in the first quarter of 2025.

Allocation of Trustmark’s $160.4 million ACL on loans HFI represented 0.88% of commercial loans and 2.09% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.16% at March 31, 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 $163.5 million in the first quarter, down 1.4% linked-quarter
• Net interest margin totaled 3.81% in the first quarter, unchanged from the prior quarter
• Noninterest income totaled $42.3 million, up 2.7% from the prior quarter, representing 20.9% of total revenue in the first quarter

Revenue in the first quarter totaled $202.9 million, a seasonal decrease of 0.6% from the prior quarter and an increase of 4.2% from the same quarter in the prior year. The linked-quarter decrease primarily reflects lower net interest income offset in part by higher noninterest income while the year-over-year increase is attributed to higher net interest income.

Net interest income (FTE) in the first quarter totaled $163.5 million, resulting in a net interest margin of 3.81%, unchanged from the prior quarter. The stable net interest margin reflected the linked-quarter decrease in the yield for the loans HFI and HFS portfolio which was offset by the increase in the yield on the securities portfolio and the decrease in the costs of interest-bearing liabilities.

Noninterest income in the first quarter totaled $42.3 million, an increase of $1.1 million, or 2.7%, from the prior quarter and a decrease of $239 thousand, or 0.6%, year-over-year. The linked-quarter increases in other, net and mortgage banking, net were offset in part by lower wealth management revenue and seasonal declines in bank card and other fees and service charges on deposit accounts.

Wealth management revenue in the first quarter totaled $10.4 million, a decrease of $740 thousand, or 6.6%, from the prior quarter and an increase of $850 thousand, or 8.9%, year-over-year. The linked-quarter decline reflected reduced brokerage revenue offset in part by increased trust and investment management revenue. The year-over-year growth reflected increased trust management revenue and brokerage revenue.

Mortgage loan production in the first quarter totaled $375.1 million, down 4.6% from the prior quarter and up 17.7% year-over-year. Mortgage banking revenue totaled $8.9 million in the first quarter, an increase of $1.4 million, or 18.7%, linked-quarter and $163 thousand, or 1.9%, year-over-year. The linked-quarter increase was principally attributable to reduced servicing asset amortization and improvement in net hedge ineffectiveness.

Service charges on deposit accounts totaled $10.7 million in the first quarter, reflecting a seasonal decrease of $530 thousand, or 4.7%, from the prior quarter. Bank card and other fees totaled $8.0 million in the first quarter, down $658 thousand from the prior quarter due principally to a seasonal decline in interchange income as well as a decline in miscellaneous other bank fees. Year-over-year, bank card and other fees increased $324 thousand, reflecting increased customer derivative revenue offset in part by lower miscellaneous other bank fees.

Other, net totaled $4.4 million in the first quarter, an increase of $1.6 million from the prior quarter primarily attributable to higher partnership investment revenue. Year-over-year other, net declined $1.6 million due to a gain on the sale of a bank office facility of $2.4 million in the first quarter of 2025 offset in part by increased partnership investment revenue.

Noninterest Expense

• Noninterest expense totaled $132.2 million, unchanged from the prior quarter
• Salaries and employee benefits expense declined $837 thousand, or 1.1%, linked-quarter
• Total services and fees increased $575 thousand, or 2.1%, linked-quarter

Noninterest expense in the first quarter totaled $132.2 million, unchanged from the prior quarter and an increase of $8.1 million, or 6.6%, year-over-year. Salaries and employee benefits expense totaled $74.2 million in the first quarter, a decline of $837 thousand, or 1.1%, linked-quarter and an increase of $5.8 million, or 8.4%, year-over-year. The linked-quarter decline reflected reductions in incentives and commissions which were offset in part by increased employee benefits expense and a seasonal increase in payroll taxes.

Services and fees in the first quarter totaled $27.9 million, an increase of $575 thousand, or 2.1%, from the prior quarter and $1.7 million, or 6.5%, year-over-year. The linked-quarter increase is attributable principally to data processing, communications, and advertising expense offset in part by reduced outsourcing and professional fees. Total other expense was $15.1 million, an increase of $138 thousand, or 0.9%, linked-quarter and a decrease of $430 thousand, or 2.8%, year-over-year. The linked-quarter increase is attributable to other miscellaneous expense offset in part by lower other real estate expense, net and loan expense.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 29, 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, May 13, 2026, in archived format at the same web address or by calling (855) 669-9658, passcode 8841534.

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 and 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.