Trustmark boosts revenue on higher net interest income
Total revenue rose 2.6% linked-quarter to $208.2 million
Trustmark (TRMK), the regional bank, reported total revenue of $208.2 million, an increase of $5.3 million or 2.6% from the prior quarter.
The result was driven by a rise in net interest income, which grew 3.1% linked-quarter to $168.6 million. The company's net interest margin expanded 3 basis points to 3.84% due to a decrease in the cost of interest-bearing liabilities. Specifically, the cost of total deposits declined 4 basis points linked-quarter to 1.59%.
Non-interest revenue saw contributions from the wealth management segment, where revenue grew 5.1% linked-quarter to $10.9 million and 13.3% year-over-year. This growth reflected higher brokerage services and trust management revenue.
Credit quality metrics shifted following the sale of a $73.8 million portfolio of 1-4 family mortgage loans. Nonaccrual loans declined 48.7% linked-quarter to $49.7 million, while nonperforming assets fell 47.3% linked-quarter to $54.9 million. These assets represented 0.39% of loans held for investment and sale, compared to 0.73% in the previous quarter.
Despite the decline in nonperforming assets, the provision for credit losses, excluding the mortgage loan sale, increased to $6.0 million from $2.7 million in the prior quarter. Mortgage loan production rose 27.2% linked-quarter and 11.9% year-over-year to $477.0 million.
Loans held for investment increased $35.1 million linked-quarter to $13.9 billion. Excluding the mortgage loan sale, growth in that category was $108.9 million. Deposits grew $358.7 million linked-quarter to $16.1 billion, a 6.3% increase year-over-year.
Total noninterest expense rose 1.2% linked-quarter to $133.7 million. Net income included $6.9 million from non-routine transactions, which included a $4.9 million gain from a Visa stock exchange and a $4.2 million pre-tax gain from a mortgage loan sale.
Tangible book value per share rose 1.6% linked-quarter to $31.07. Trustmark repurchased $21.1 million of common shares during the quarter as part of a $100 million program authorized on January 1, 2026.