Trustmark Corporation Reports Solid Third Quarter 2025 Results with Balanced Growth, Stable Credit Quality, and Strategic Investment in Talent
Trustmark Corporation reported net income of $56.8 million for the third quarter of 2025, translating to diluted earnings per share of $0.94. The company’s performance for the period reflected continued momentum across its lending and deposit franchises, alongside disciplined credit management and ongoing investment in strategic growth initiatives. For the quarter, Trustmark generated a return on average tangible equity (ROATCE) of 12.84%, and a return on average assets (ROAA) of 1.21%, demonstrating consistent profitability and resource efficiency.
In line with its ongoing capital management priorities, Trustmark’s Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025. The dividend reinforces the company’s commitment to delivering stable shareholder returns while maintaining capacity for ongoing reinvestment in core business lines.
Third Quarter Performance Overview
The third quarter of 2025 was marked by steady balance sheet growth and solid top-line performance. Total revenue reached $202.4 million, an increase of 1.9% compared to the prior quarter and 5.3% year-over-year, reflecting increases in both net interest income and noninterest income.
Net interest income (on an FTE basis) continued to serve as the company’s primary earnings driver, totaling $165.2 million, up 2.4% linked-quarter and 4.6% year-over-year. Trustmark’s net interest margin expanded to 3.83%, supported by improving yields on loans and securities.
On the deposit side, Trustmark demonstrated strong customer engagement and franchise stability, with total deposits increasing to $15.6 billion, a 3.4% linked-quarter increase and 2.6% year-over-year. Particularly notable was the growth in noninterest-bearing deposits, which rose 5.9% quarter-over-quarter, strengthening the bank’s funding profile and liquidity position.
Meanwhile, loans held for investment (HFI) expanded to $13.5 billion, up 0.6% from the previous quarter and 3.4% from the prior year, signaling resilient credit demand across commercial and consumer categories.
Management Commentary
Duane A. Dewey, President and CEO of Trustmark, highlighted the company’s sustained momentum and balanced progress:
Our momentum continues to build as reflected in Trustmark’s solid financial performance in the third quarter. Diversified loan growth and stable credit quality continued along with cost-effective core deposit growth. Our wealth management business performed well while our mortgage business continued to execute in a challenging operating environment.
Dewey also noted that the quarter included strategic additions of experienced relationship managers in key markets:
Balance Sheet Position and Capital Management
Trustmark’s balance sheet structure remains resilient and well-capitalized. At quarter-end, the Common Equity Tier 1 (CET1) ratio was 11.88% while the total risk-based capital ratio stood at 14.33%. These levels provide meaningful flexibility to support ongoing lending, strategic investments, and shareholder returns.
Stock repurchases continued during the quarter as part of the company’s 2025 authorization. Trustmark repurchased approximately 280,000 shares for $11.0 million in the quarter and 1.0 million shares totaling $37.1 million through the first nine months of the year. The repurchase program runs through December 31, 2025 and remains subject to market conditions.
Tangible book value per share increased to $29.60, representing a 3.0% increase quarter-over-quarter and 10.1% increase compared to the prior year, reflecting both earnings retention and disciplined capital deployment.
Credit Quality and Risk Management
Credit quality remained generally stable, although the quarter included a $3.1 million charge-off related to a previously reserved nonaccrual commercial loan. Total net charge-offs were $4.4 million, representing 0.13% of average loans.
The provision for credit losses was $1.7 million, a meaningful decrease from $4.7 million in the second quarter, primarily due to improvements in economic trends and stable loan performance.
The Allowance for Credit Losses (ACL) totaled 1.22% of loans HFI, providing 239.69% coverage of nonaccrual loans, excluding individually analyzed loans. Management noted that the allowance remains aligned with currently expected credit conditions.
Nonperforming assets, including nonaccrual loans and other real estate, totaled $92.3 million, representing 0.67% of loans held for investment and loans held for sale, indicating continued asset quality discipline.
Revenue Drivers and Business Line Performance
Noninterest income totaled $39.9 million, roughly unchanged from the prior quarter, though up 6.3% year-over-year. Key business segments contributed positively:
- Mortgage Banking: $8.2 million in revenue, up significantly from last year driven by improved servicing performance and better gain-on-sale margins.
- Wealth Management: $9.8 million in revenue, up 5.5% year-over-year, reflecting stronger client engagement and higher trust and investment services revenue.
- Service Charges on Deposits: $11.3 million, up seasonally from the prior quarter.
- Bank Card and Other Fees: $8.3 million, down slightly linked-quarter but up year-over-year.
Loans originated for mortgage banking totaled $389.4 million, down slightly quarter-over-quarter due to market conditions but steady relative to the prior year.
Expense Management and Strategic Investments
Total noninterest expense for the quarter was $130.9 million, an increase of 4.7% from the prior quarter. The increase included:
- Higher employee costs due to annual merit adjustments and incentive accruals
- Costs associated with hiring additional relationship and production staff
- Approximately $2.3 million in nonroutine items, including advisory and restructuring-related expenses
Trustmark emphasized that strategic hiring and targeted spending are foundational to long-term growth and franchise expansion, especially in attractive Southeastern U.S. markets.
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