Trustmark Corporation Reports 9.5% Revenue Growth, Net Income Increase in Q3 2024

Trustmark Corporation, headquartered in Jackson, Mississippi, reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For Q3 2024, Trustmark achieved a net income of $51.3 million, an increase from $34.0 million in Q3 2023. Basic and diluted earnings per share (EPS) rose to $0.84 from $0.56 year-over-year. The company’s total revenue for the quarter was $192.3 million, reflecting a 9.5% increase from $175.6 million in Q3 2023, primarily driven by higher net interest income, which reached $154.7 million, up 11.6% from the prior year. For the nine months ended September 30, 2024, net income totaled $166.7 million, compared to $129.4 million in the same period of 2023, although the net income from continuing operations showed a loss of $11.1 million, down from a profit of $119.4 million in 2023, largely due to a significant loss on the sale of available-for-sale securities.

Trustmark's total assets increased to $18.48 billion as of September 30, 2024, from $18.32 billion a year earlier. Loans held for investment (LHFI) rose to $13.1 billion, marking a 1.2% increase from $12.95 billion at the end of 2023. However, total deposits decreased by 2.1% to $15.24 billion, down from $15.57 billion at year-end 2023.

The company executed a strategic sale of its subsidiary, Fisher Brown Bottrell Insurance, Inc., for approximately $336.9 million, resulting in a pre-tax net gain of $228.3 million recognized in discontinued operations. This transaction significantly bolstered Trustmark's financial position, contributing to a 19.2% increase in total shareholders' equity to $1.98 billion.

Noninterest income for the nine months ended September 30, 2024, was negative $64.4 million, a decrease of $176.2 million compared to the same period in 2023, primarily due to a $182.8 million loss on the sale of available-for-sale securities. Conversely, noninterest expenses decreased by 2.2% to $361.3 million, reflecting cost management efforts.

Trustmark's capital ratios remained strong, with a common equity Tier 1 capital ratio of 11.30% as of September 30, 2024, exceeding regulatory requirements. The company also maintained a robust allowance for credit losses (ACL) of $157.9 million, reflecting an increase due to adjustments in qualitative factors and specific reserves.

Overall, Trustmark's performance in Q3 2024 demonstrated resilience amid challenging market conditions, with strategic decisions contributing to its financial stability and growth trajectory.