Trustmark Corporation Reports $223M Net Income for 2024, Faces Revenue Decline

Trustmark Corporation (Trustmark), a Mississippi-based bank holding company, reported net income of $223.0 million for the year ended December 31, 2024, compared to $165.5 million in 2023 and $71.9 million in 2022. Basic and diluted earnings per share (EPS) were $3.65 and $3.63, respectively, for 2024, up from $2.71 and $2.70 in 2023. Total revenue, defined as net interest income plus noninterest income (loss), decreased to $561.0 million in 2024 from $701.3 million in 2023, but increased from $646.1 million in 2022. The decrease in 2024 was primarily due to a $182.8 million loss on the sale of available-for-sale securities, partially offset by increases in other net income and net interest income.

Significant non-routine transactions during the second quarter of 2024 included the sale of a wholly-owned subsidiary, Fisher Brown Bottrell Insurance, Inc., resulting in a net gain of $171.2 million (net of taxes); the restructuring of the investment securities portfolio, generating a net loss of $137.1 million (net of taxes); and the sale of a portfolio of delinquent 1-4 family mortgage loans, resulting in a net loss of $10.1 million (net of taxes). Additionally, Trustmark completed an exchange offer for Visa Class B-1 common stock, resulting in a net gain of $6.0 million (net of taxes). The company also repurchased approximately 203,000 shares of its common stock for $7.5 million during 2024, and a further 243,000 shares for $8.5 million in January 2025.

Trustmark operates in six geographic market regions: Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas, employing 2,500 full-time equivalent associates as of December 31, 2024. At June 30, 2024, Trustmark held a top-three deposit market share in 55% of the 56 counties served and a top-five share in 68% of the counties. Loans held for investment (LHFI) totaled $13.090 billion at December 31, 2024, a 1.1% increase from the previous year. Nonperforming assets decreased to $86.0 million, a 19.5% decline from 2023. Total deposits decreased by 3.0% to $15.108 billion at the end of 2024.

Trustmark's financial performance was significantly impacted by changes in market interest rates, which were elevated until September 2024 before declining. The Federal Reserve's actions influenced deposit costs and net interest margins. The company's outlook is subject to various risks, including interest rate risk, credit risk, liquidity risk, and economic conditions. The company's management uses financial simulation models to assess interest rate exposure and employs derivative contracts to hedge certain risks. Trustmark also faces competition from other financial institutions and is subject to extensive government regulation and supervision. The company's ability to attract and retain key employees and manage operational risks, including cybersecurity threats, are also considered key factors in its future performance. The Board of Directors declared a 4.3% increase in the regular quarterly cash dividend to $0.24 per share.