TRMK · Trustmark Corporation

Trustmark Corporation reported solid first quarter 2026 results, with net income of $56.1 million ($0.95 per diluted share) reflecting continued loan and deposit growth, stable credit quality, expanded fee income, and disciplined expense management. Net interest income (FTE) was $163.5 million, down 1.4% linked-quarter, but net interest margin held steady at 3.81% as lower loan yields were offset by higher securities yields and lower deposit costs. Noninterest income rose 2.7% sequentially to $42.3 million, driven by a $1.4 million increase in mortgage banking revenue (to $8.9 million) and higher partnership investment revenue, partially offset by seasonal declines in service charges and bank card fees. Noninterest expense was unchanged at $132.2 million, reflecting a decline in salaries and benefits offset by higher services and fees. Credit quality remained stable: net charge-offs were only 0.04% of average loans, and the allowance for credit losses stood at 1.16% of loans HFI. Nonaccrual loans increased $12.3 million to $96.7 million, primarily due to one commercial credit. The provision for credit losses was $2.7 million, up from $1.2 million in the prior quarter but down from $5.3 million a year ago. Balance sheet growth continued: loans HFI increased 1.5% linked-quarter to $13.9 billion, and deposits grew 1.4% to $15.7 billion, with the cost of total deposits declining 9 basis points to 1.63%. The company maintained strong capital ratios (CET1 11.70%, total risk-based capital 14.37%) and returned capital to shareholders via a $0.25 quarterly dividend and $19.8 million in share repurchases (477,000 shares). Management expressed optimism about the momentum, citing strong core deposit base and expense discipline. No forward guidance was provided.