Trustmark Corporation Reports Q2 2025 Financial Results with $55.8 Million Net Income

Trustmark Corporation reported its financial results for the second quarter and first half of 2025, revealing a net income of $55.8 million, or $0.92 per share, compared to $73.8 million, or $1.21 per share, in the same period of 2024. For the first six months of 2025, net income totaled $109.5 million, or $1.81 per share, down from $115.4 million, or $1.89 per share, in the prior year. The decline in earnings was attributed to a significant loss on the sale of available-for-sale securities in the previous year, which did not recur in 2025. Trustmark's return on average tangible equity was 13.13% for the first half of 2025, down from 17.56% in the same period of 2024.

Total revenue for the second quarter of 2025 was $198.6 million, a substantial increase from the previous year's $36.4 million loss, primarily due to the absence of the prior year's significant securities loss. Net interest income rose to $158.8 million for the quarter, a 12.6% increase year-over-year, driven by higher interest on securities and a decrease in interest expenses on deposits. However, total interest income slightly decreased to $237.4 million, reflecting lower yields on loans held for sale and loans held for investment. Trustmark's interest expense also fell significantly, down 19.8% to $78.7 million, due to a decline in interest-bearing deposits.

In terms of operational metrics, Trustmark's loans held for investment (LHFI) increased by $374.8 million, or 2.9%, to $13.465 billion as of June 30, 2025. The growth was primarily in real estate-secured loans and other commercial loans. The allowance for credit losses (ACL) on LHFI rose to $168.2 million, representing 1.25% of total LHFI, reflecting increased reserves due to loan growth and macroeconomic changes. Nonperforming assets totaled $90 million, a slight increase from the previous year, with nonaccrual loans at $81 million.

Trustmark's deposit base remained stable, totaling $15.116 billion, with a slight increase in noninterest-bearing deposits. The company continues to maintain a strong capital position, with total shareholders' equity rising to $2.071 billion. Trustmark's capital ratios exceeded regulatory requirements, indicating a well-capitalized status. The company also announced a quarterly cash dividend of $0.24 per share, payable in September 2025, reflecting its commitment to returning value to shareholders. Looking ahead, Trustmark remains focused on managing expenses and expanding customer relationships amid ongoing economic uncertainties.