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What changed in TRUSTMARK CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of TRUSTMARK CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+512 added−529 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-19)

Top changes in TRUSTMARK CORP's 2025 10-K

512 paragraphs added · 529 removed · 420 edited across 10 sections

Item 1. Business

Business — how the company describes what it does

75 edited+27 added−41 removed96 unchanged
Biggest changeTrustmark’s products and services are designed to strengthen and expand customer relationships and enhance the organization’s competitive advantages in its markets as well as to provide cross-selling opportunities that will enable Trustmark to continue to diversify its revenue and earnings streams. 4 The following table sets forth summary data regarding Trustmark’s securities, loans, assets, deposits, equity and revenue over the past three years ($ in thousands): December 31, 2024 2023 2022 Securities $ 3,027,919 $ 3,189,157 $ 3,518,596 Total securities growth (decline) $ (161,238 ) $ (329,439 ) $ (62,818 ) Total securities growth (decline) -5.1 % -9.4 % -1.8 % Loans held for investment (LHFI) $ 13,089,942 $ 12,950,524 $ 12,204,039 Total loans growth (decline) $ 139,418 $ 746,485 $ 1,956,210 Total loans growth (decline) 1.1 % 6.1 % 19.1 % Assets $ 18,152,422 $ 18,722,189 $ 18,015,478 Total assets growth (decline) $ (569,767 ) $ 706,711 $ 419,842 Total assets growth (decline) -3.0 % 3.9 % 2.4 % Deposits $ 15,108,175 $ 15,569,763 $ 14,437,648 Total deposits growth (decline) $ (461,588 ) $ 1,132,115 $ (649,512 ) Total deposits growth (decline) -3.0 % 7.8 % -4.3 % Equity $ 1,962,327 $ 1,661,847 $ 1,492,268 Total equity growth (decline) $ 300,480 $ 169,579 $ (249,043 ) Total equity growth (decline) 18.1 % 11.4 % -14.3 % Years Ended December 31, Revenue * $ 561,002 $ 701,311 $ 646,130 Total revenue growth (decline) $ (140,309 ) $ 55,181 $ 54,485 Total revenue growth (decline) -20.0 % 8.5 % 9.2 % * Consistent with Trustmark’s audited financial statements, revenue is defined as net interest income plus noninterest income (loss).
Biggest changeTrustmark’s products and services are designed to strengthen and expand customer relationships and enhance the organization’s competitive advantages in its markets as well as to provide cross-selling opportunities that will enable Trustmark to continue to diversify its revenue and earnings streams. 4 The following table sets forth summary data regarding Trustmark’s securities, loans, assets, deposits, equity and revenue over the past three years ($ in thousands): December 31, 2025 2024 2023 Securities $ 3,084,284 $ 3,027,919 $ 3,189,157 Total securities growth (decline) $ 56,365 $ (161,238 ) $ (329,439 ) Total securities growth (decline) 1.9 % -5.1 % -9.4 % Loans held for investment (LHFI) $ 13,674,233 $ 13,089,942 $ 12,950,524 Total loans growth (decline) $ 584,291 $ 139,418 $ 746,485 Total loans growth (decline) 4.5 % 1.1 % 6.1 % Assets $ 18,925,211 $ 18,152,422 $ 18,722,189 Total assets growth (decline) $ 772,789 $ (569,767 ) $ 706,711 Total assets growth (decline) 4.3 % -3.0 % 3.9 % Deposits $ 15,499,784 $ 15,108,175 $ 15,569,763 Total deposits growth (decline) $ 391,609 $ (461,588 ) $ 1,132,115 Total deposits growth (decline) 2.6 % -3.0 % 7.8 % Equity $ 2,121,677 $ 1,962,327 $ 1,661,847 Total equity growth (decline) $ 159,350 $ 300,480 $ 169,579 Total equity growth (decline) 8.1 % 18.1 % 11.4 % Years Ended December 31, Revenue (1) $ 799,778 $ 561,002 $ 701,311 Total revenue growth (decline) $ 238,776 $ (140,309 ) $ 55,181 Total revenue growth (decline) 42.6 % -20.0 % 8.5 % (1) Revenue is defined as net interest income plus noninterest income (loss).
Federal Oversight Over Mergers and Acquisitions, Investments and Branching The BHC Act requires every bank holding company to obtain the prior approval of the FRB before: (i) it may acquire direct or indirect ownership or control of any voting shares of any bank if, after such acquisition, the bank holding company will directly or indirectly own or control 5.0% or more of the voting shares of the bank; (ii) it or any of its subsidiaries, other than a bank, may acquire all or 9 substantially all of the assets of any bank; or (iii) it may merge or consolidate with any other bank holding company.
Federal Oversight Over Mergers and Acquisitions, Investments and Branching The BHC Act requires every bank holding company to obtain the prior approval of the FRB before: (i) it may acquire direct or indirect ownership or control of any voting shares of any bank if, after such acquisition, the bank holding company will directly or indirectly own or control 5.0% or more of the voting shares of the bank; (ii) it or any of its subsidiaries, other than a bank, may acquire all or substantially all of the assets of any bank; or (iii) it may merge or consolidate with any other bank holding company.
The CAMELS rating system is a supervisory rating system developed to classify a bank’s overall condition by taking into account capital adequacy, assets, management capability, earnings, liquidity and sensitivity to market and interest rate risk. The methodology that the FDIC uses to calculate assessment amounts is also based on the FDIC’s designated reserve ratio, which is currently 2.0%.
The CAMELS rating system is a supervisory rating system developed to classify a bank’s overall condition by taking into account capital adequacy, assets, management capability, earnings, liquidity and sensitivity to market and interest rate risk. The methodology that the FDIC uses to calculate 14 assessment amounts is also based on the FDIC’s designated reserve ratio, which is currently 2.0%.
These consumer protection laws apply to a broad range of TNB’s activities and to various aspects of its business, and include laws relating to interest rates, fair lending, disclosures of credit terms and estimated transaction costs to consumer borrowers, debt collection practices, the use of and the provision of information to consumer reporting agencies and the prohibition of unfair, deceptive or abusive acts or practices in connection with the offer, sale or provision of consumer financial products and services.
These consumer protection laws apply to a broad range of TB’s activities and to various aspects of its business, and include laws relating to interest rates, fair lending, disclosures of credit terms and estimated transaction costs to consumer borrowers, debt collection practices, the use of and the provision of information to consumer reporting agencies and the prohibition of unfair, deceptive or abusive acts or practices in connection with the offer, sale or provision of consumer financial products and services.
Additionally, a provision of the BHC Act known as the Volcker Rule places limits on the ability of Trustmark and TNB to acquire or retain ownership interests in, or act as sponsor to, certain investment funds, including hedge funds and private equity funds, or to engage in proprietary trading ( i.e. , engaging as principal in any purchase or sale of one or more financial instruments for a trading account).
Additionally, a provision of the BHC Act known as the Volcker Rule places limits on the ability of Trustmark and TB to acquire or retain ownership interests in, or act as sponsor to, certain investment funds, including hedge funds and private equity funds, or to engage in proprietary trading ( i.e. , engaging as principal in any purchase or sale of one or more financial instruments for a trading account).
In addition, as a result of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) enacted on March 27, 2020 in response to the COVID-19 pandemic, the 11 federal bank regulatory agencies issued rules that allow banking organizations that implemented CECL in 2020 to elect to mitigate the effects of the CECL accounting standard on their regulatory capital for two years.
In addition, as a result of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) enacted on March 27, 2020 in response to the COVID-19 pandemic, the federal bank regulatory agencies issued rules that allowed banking organizations that implemented CECL in 2020 to elect to mitigate 11 the effects of the CECL accounting standard on their regulatory capital for two years.
If finalized as proposed, the proposal could reduce interchange revenue for banks with $10 billion or more in assets, such as TNB. The FRB also has established rules governing routing and exclusivity that require debt card issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product.
If finalized as proposed, the proposal could reduce interchange revenue for banks with $10 billion or more in assets, such as TB. The FRB also has established rules governing routing and exclusivity that require debt card issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product.
New Market Tax Credits (NMTC) – TNB provides an intermediary vehicle for the provision of loans or investments in Low-Income Communities (LICs) through its subsidiary Southern Community Capital, LLC (SCC). SCC is a Mississippi single member limited liability company, a certified Community Development Entity (CDE) and a wholly-owned subsidiary of TNB.
New Market Tax Credits (NMTC) – TB provides an intermediary vehicle for the provision of loans or investments in Low-Income Communities (LICs) through its subsidiary Southern Community Capital, LLC (SCC). SCC is a Mississippi single member limited liability company, a certified Community Development Entity (CDE) and a wholly-owned subsidiary of TB.
The FDIC may terminate the deposit insurance of any insured depository institution, including the TNB, if the FDIC determines after a hearing that the institution has engaged or is engaging in unsafe or unsound banking practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, order or any condition imposed by an agreement with the FDIC.
The FDIC may terminate the deposit insurance of any insured depository institution, including the TB, if the FDIC determines after a hearing that the institution has engaged or is engaging in unsafe or unsound banking practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, order or any condition imposed by an agreement with the FDIC.
Doubts surrounding the near-term direction of global markets and the potential impact on the United States economy are expected to persist for the near term. While Trustmark's customer base is wholly domestic, international economic conditions affect domestic economic conditions, and thus may have an impact upon Trustmark's financial condition or results of operations.
Concerns surrounding the direction of global markets and the potential impact on the United States economy are expected to persist for the near term. While Trustmark's customer base is wholly domestic, international economic conditions affect domestic economic conditions, and thus may have an impact upon Trustmark's financial condition or results of operations.
In addition, an insured bank’s loans to affiliates must be fully collateralized. The term “covered transaction” includes the making of loans to the affiliate, purchase of assets from the affiliate, issuance of a guarantee on behalf of the affiliate and several other types of transactions. Payment of Dividends The principal source of Trustmark’s cash revenue is dividends from TNB.
In addition, an insured bank’s loans to affiliates must be fully collateralized. The term “covered transaction” includes the making of loans to the affiliate, purchase of assets from the affiliate, issuance of a guarantee on behalf of the affiliate and several other types of transactions. Payment of Dividends The principal source of Trustmark’s cash revenue is dividends from TB.
Debit Interchange Regulation The FRB has issued rules under the Electronic Fund Transfer Act (EFTA), as amended by the Dodd-Frank Act, to limit interchange fees that an issuer with $10.0 billion or more in assets, such as TNB, may receive or charge for an electronic debit card transaction.
Debit Interchange Regulation The FRB has issued rules under the Electronic Fund Transfer Act (EFTA), as amended by the Dodd-Frank Act, to limit interchange fees that an issuer with $10.0 billion or more in assets, such as TB, may receive or charge for an electronic debit card transaction.
Loans are provided for a variety of general corporate purposes, including financing for commercial and industrial projects, income producing commercial real estate, owner-occupied real estate and construction and land development. TNB also provides deposit services, including checking, savings and money market accounts and certificates of deposit as well as treasury management services.
Loans are provided for a variety of general corporate purposes, including financing for commercial and industrial projects, income producing commercial real estate, owner-occupied real estate and construction and land development. TB also provides deposit services, including checking, savings and money market accounts and certificates of deposit as well as treasury management services.
This two-year delay is in addition to the three-year transition period that the agencies had already made available. Trustmark elected to defer the regulatory capital effects of CECL in accordance with these rules, which largely delayed the effects of the adoption of CECL on its regulatory capital through December 31, 2021.
This two-year delay was in addition to the three-year transition period that the agencies had already made available. Trustmark elected to defer the regulatory capital effects of CECL in accordance with these rules, which largely delayed the effects of the adoption of CECL on its regulatory capital through December 31, 2021.
Almost every area of the operations and financial condition of TNB is subject to extensive regulation and supervision and to various requirements and restrictions under federal and state law including loans, reserves, investments, issuance of securities, establishment of branches, capital adequacy, liquidity, earnings, dividends, management practices and the provision of services.
Almost every area of the operations and financial condition of TB is subject to extensive regulation and supervision and to various requirements and restrictions under federal and state law including loans, reserves, investments, issuance of securities, establishment of branches, capital adequacy, liquidity, earnings, dividends, management practices and the provision of services.
Mortgage Banking – TNB provides mortgage banking services, including construction financing, production of conventional and government insured mortgages, secondary marketing and mortgage servicing. Wealth Management – TNB offers specialized fiduciary services and expertise in the areas of wealth management, trust, investment, brokerage, qualified and non-qualified retirement plan services and custodial services for corporate and individual customers.
Mortgage Banking – TB provides mortgage banking services, including construction financing, production of conventional and government insured mortgages, secondary marketing and mortgage servicing. Wealth Management – TB offers specialized fiduciary services and expertise in the areas of wealth management, trust, investment, brokerage, qualified and non-qualified retirement plan services and custodial services for corporate and individual customers.
Under capital requirements applicable to Trustmark and TNB, Trustmark and TNB are required to meet a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.0% (a minimum of 4.5% plus a capital conservation buffer of 2.5%), a Tier 1 capital to risk-weighted assets ratio of at least 8.5% (a minimum of 6.0% plus a capital conservation buffer of 2.5%), a total capital to risk-weighted assets ratio of at least 10.5% (a minimum of 8.0% plus a capital conservation buffer of 2.5%), and a leverage ratio of Tier 1 capital to total consolidated assets of at least 4.0%.
Under capital requirements applicable to Trustmark and TB, Trustmark and TB are required to meet a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.0% (a minimum of 4.5% plus a capital conservation buffer of 2.5%), a Tier 1 capital to risk-weighted assets ratio of at least 8.5% (a minimum of 6.0% plus a capital conservation buffer of 2.5%), a total capital to risk-weighted assets ratio of at least 10.5% (a minimum of 8.0% plus a capital conservation buffer of 2.5%), and a leverage ratio of Tier 1 capital to total consolidated assets of at least 4.0%.
These services include the administration of personal trusts and estates as well as the management of investment and individual retirement accounts for individuals, employee benefit plans and charitable foundations. TNB also provides institutional custody for large governmental entities and foundations, financial and estate planning and retirement plan services.
These services include the administration of personal trusts and estates as well as the management of investment and individual retirement accounts for individuals, employee benefit plans and charitable foundations. TB also provides institutional custody for large governmental entities and foundations, financial and estate planning and retirement plan services.
On October 18, 2022, the FDIC adopted a final rule to increase initial base deposit insurance assessment rates for insured depository institutions by 2 basis points, which began with the first quarterly assessment period of 2023. The increased assessment rate schedules will remain in effect unless and until the DIF reserve ratio meets or exceeds 2.00%.
On October 18, 2022, the FDIC adopted a final rule to increase initial base deposit insurance assessment rates for insured depository institutions by 2 basis points, which began with the first quarterly assessment period of 2023 and will remain in effect unless and until the DIF reserve ratio meets or exceeds 2.00%.
Consumer Banking – TNB provides banking services to consumers, including checking, savings, and money market accounts as well as certificates of deposit and individual retirement accounts. In addition, TNB provides consumer customers with installment and real estate loans and lines of credit.
Consumer Banking – TB provides banking services to consumers, including checking, savings, and money market accounts as well as certificates of deposit and individual retirement accounts. In addition, TB provides consumer customers with installment and real estate loans and lines of credit.
Anti-Money Laundering (AML) Initiatives and Sanctions Compliance Trustmark and TNB are subject to extensive laws and regulations aimed at combating money laundering and terrorist financing, including the USA Patriot Act of 2001 (USA Patriot Act) and the Bank Secrecy Act.
Anti-Money Laundering (AML) Initiatives and Sanctions Compliance Trustmark and TB are subject to extensive laws and regulations aimed at combating money laundering and terrorist financing, including the USA Patriot Act of 2001 (USA Patriot Act) and the Bank Secrecy Act.
These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act and their state law counterparts. At 13 the federal level, most consumer financial protection laws are administered by the CFPB, which supervises TNB.
These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act and their state law counterparts. At the federal level, most consumer financial protection laws are administered by the CFPB, which supervises TB.
Trustmark’s operations are managed along two operating segments: General Banking Segment and Wealth Management Segment. The principal products produced and services rendered by TNB and Trustmark’s other subsidiaries are as follows: 3 Trustmark National Bank Commercial Banking – TNB provides a full range of commercial banking services to corporations and other business customers.
Trustmark’s operations are managed along two operating segments: General Banking 3 Segment and Wealth Management Segment. The principal products produced and services rendered by TB and Trustmark’s other subsidiaries are as follows: Trustmark Bank Commercial Banking – TB provides a full range of commercial banking services to corporations and other business customers.
FDIC Deposit Insurance Assessments The deposits of TNB are insured by the Deposit Insurance Fund (DIF), as administered by the FDIC, and, accordingly, are subject to deposit insurance assessments to maintain the DIF at minimum levels required by statute.
FDIC Deposit Insurance Assessments The deposits of TB are insured by the Deposit Insurance Fund (DIF), as administered by the FDIC, and, accordingly, are subject to deposit insurance assessments to maintain the DIF at minimum levels required by statute.
In addition, the OCC has the authority to approve applications by national banks to establish de novo branches, including, under the Riegle-Neal Act, in states other than the bank’s home state if the law of the state in which the branch is located, or is to be located, would permit establishment of the branch if the bank were a state bank chartered by such state.
In addition, the FRB has the authority to approve applications by state member banks to establish de novo branches, including, under the Riegle-Neal Act, in states other than the bank’s home state if the law of the state in which the branch is located, or is to be located, would permit establishment of the branch if the bank were a state bank chartered by such state.
The FRB is also required to take into account in evaluating such a transaction the effectiveness of the parties in combating money laundering activities. Provisions of the FDI Act known as the Bank Merger Act impose similar approval standards for an insured depository institution to merge with another insured depository institution.
The FRB is also required to take into account in evaluating such a transaction the effectiveness of the parties in combating money laundering activities. Provisions of the FDI Act known as the Bank Merger Act impose similar approval standards for an insured depository institution to merge with another insured depository institution. In September 2024, the U.S.
Day, 64 Trustmark National Bank President – Institutional Banking since April 2019 Robert Barry Harvey, 65 Trustmark National Bank Chief Credit and Operations Officer since June 2021 Chief Credit Officer from March 2010 to May 2021 Executive Vice President since March 2010 Thomas C.
Day, 65 Trustmark Bank President – Institutional Banking since April 2019 Robert Barry Harvey, 66 Trustmark Bank Chief Credit and Operations Officer since June 2021 Chief Credit Officer from March 2010 to May 2021 Executive Vice President since March 2010 Thomas C.
Through TNB and its subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,500 full-time equivalent associates (measured at December 31, 2024) located in the states of Alabama, Florida (primarily in the northwest or “Panhandle” region of that state, which is referred to herein as Trustmark’s Florida market), Georgia (primarily in Atlanta, which is referred to herein as Trustmark's Georgia market), Mississippi, Tennessee (in the Memphis and Northern Mississippi regions, which are collectively referred to herein as Trustmark’s Tennessee market), and Texas (primarily in Houston, which is referred to herein as Trustmark’s Texas market).
Through TB and its subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,543 full-time equivalent associates (measured at December 31, 2025) located in the states of Alabama, Florida (primarily in the northwest or “Panhandle” region of that state, which is referred to herein as Trustmark’s Florida market), Georgia (primarily in Atlanta, which is referred to herein as Trustmark's Georgia market), Mississippi, Tennessee (in the Memphis and Northern Mississippi regions, which are collectively referred to herein as Trustmark’s Tennessee market), and Texas (primarily in Houston, which is referred to herein as Trustmark’s Texas market).
Similar to commercial and industrial loans, inherent risk in other commercial loans and leases can arise due to fluctuations in borrowers’ or lessee's financial condition, deterioration in collateral values and changes in market and economic conditions.
Similar to commercial and industrial loans, inherent risk in other commercial loans and leases can arise due to fluctuations in the borrower's or lessee's financial condition, deterioration in collateral values and changes in market and economic conditions.
Source of Strength Under the FDI Act, Trustmark is expected to act as a source of financial and managerial strength to TNB.
Source of Strength Under the FDI Act, Trustmark is expected to act as a source of financial and managerial strength to TB.
At December 31, 2024, TNB was well-capitalized based on the ratios and guidelines described above. In December 2018, the federal banking agencies issued a final rule that allows institutions to elect to phase in the regulatory capital effects of the Current Expected Credit Losses (CECL) accounting standard over three years.
At December 31, 2025, TB was well-capitalized based on the ratios and guidelines described above. In December 2018, the federal banking agencies issued a final rule that allowed institutions to elect to phase in the regulatory capital effects of the Current Expected Credit Losses (CECL) accounting standard over three years.
Employees At December 31, 2024, Trustmark employed 2,500 full-time equivalent associates, none of which are represented by a collective bargaining agreement. Trustmark believes its employee relations to be satisfactory.
Employees At December 31, 2025, Trustmark employed 2,543 full-time equivalent associates, none of which are represented by a collective bargaining agreement. Trustmark believes its employee relations to be satisfactory.
Chambers, Jr., 65 Trustmark Corporation Principal Accounting Officer since March 2021 Trustmark National Bank Executive Vice President and Chief Accounting Officer since March 2021 Senior Vice President and Controller from March 2009 to February 2021 Monica A.
Chambers, Jr., 66 Trustmark Corporation Principal Accounting Officer since March 2021 Trustmark Bank Executive Vice President and Chief Accounting Officer since March 2021 Senior Vice President and Controller from March 2009 to February 2021 15 Monica A.
Under section 22 of the Federal Reserve Act, as implemented by the FRB’s Regulation O, restrictions also apply to extensions of credit by a bank to its executive officers, directors, principal shareholders and their related interests, and to similar individuals at the holding company or affiliates.
Section 22 of the Federal Reserve Act, as implemented by the FRB’s Regulation O, similarly limits extensions of credit by a bank to its executive officers, directors, principal shareholders and their related interests, and to similar individuals at the holding company or affiliates.
At June 30, 2024, Trustmark’s deposit market share ranked within the top three positions in 55.0% of the 56 counties served and within the top five positions in 68.0% of the counties served. The following table presents Federal Deposit Insurance Corporation (FDIC) deposit data regarding TNB’s deposit market share by state as of June 30, 2024.
At June 30, 2025, Trustmark’s deposit market share ranked within the top three positions in 52.0% of the 56 counties served and within the top five positions in 68.0% of the counties served. The following table presents Federal Deposit Insurance Corporation (FDIC) deposit data regarding TB’s deposit market share by state as of June 30, 2025.
Owens, 60 Trustmark Corporation Treasurer and Principal Financial Officer since March 2021 Trustmark National Bank Chief Financial Officer since March 2021 16 Bank Treasurer from September 2013 to February 2021 Executive Vice President since 2013 W.
Owens, 61 Trustmark Corporation Treasurer and Principal Financial Officer since March 2021 Trustmark Bank Chief Financial Officer since March 2021 Bank Treasurer from September 2013 to February 2021 Executive Vice President since 2013 W.
While rate cuts potentially reduce those competitive pressures, they increase pressure on Trustmark's net interest margin, a key component to its financial results.
While rate cuts potentially reduced those competitive pressures, they increased pressure on Trustmark's net interest margin, a key component to its financial results.
Information about Executive Officers of Trustmark As of the filing date, the executive officers of Trustmark and its primary bank subsidiary, TNB, including their ages, positions and principal occupations for the last five years are as follows: Gerard R.
Information about Executive Officers of Trustmark As of the filing date, the executive officers of Trustmark and its primary bank subsidiary, TB, including their ages, positions and principal occupations for the last five years are as follows: Duane A.
State Deposit Market Share Alabama 1.91 % Florida 0.17 % Mississippi 13.05 % Tennessee 0.32 % Texas 0.04 % Services provided by the Wealth Management Segment face competition from many national, regional and local financial institutions.
State Deposit Market Share Alabama 1.87 % Florida 0.17 % Mississippi 12.17 % Tennessee 0.30 % Texas 0.04 % Services provided by the Wealth Management Segment face competition from many national, regional and local financial institutions.
It is not possible to predict the direction, pace or magnitude of further changes, if any, in interest rates, or the impact any such rate changes will have on Trustmark's results of operations. 7 In the January 2025 “Summary of Commentary on Current Economic Conditions by Federal Reserve District,” the twelve Federal Reserve Districts’ reports suggested that during the reporting period (covering the period from November 22, 2024 through January 6, 2025) economic activity increased slightly to moderately.
It is not possible to predict the direction, pace or magnitude of further changes, if any, in interest rates, or the impact any such rate changes will have on Trustmark's results of operations. 7 In the November 2025 and January 2026 “Summary of Commentary on Current Economic Conditions by Federal Reserve District,” the twelve Federal Reserve Districts’ reports suggested that during the reporting periods (covering the period from October 6, 2025 through November 17, 2025 and November 18, 2025 through January 5, 2026) economic activity increased at a slight to modest pace.
TNB is subject to supervision, examination, enforcement and reporting requirements under the National Bank Act, the Federal Reserve Act, the FDI Act, regulations of the OCC and certain of the requirements imposed by the Dodd-Frank Act.
TB is subject to supervision, examination, enforcement and reporting requirements under the Federal Reserve Act, the FDI Act, regulations of the FRB and certain of the requirements imposed by the Dodd-Frank Act.
Arthur Stevens, 60 Trustmark National Bank President – Retail Banking since September 2011 Maria Luisa "Ria" Sugay, 43 Trustmark National Bank Bank Treasurer since March 2021 Bank Co-Treasurer from July 2020 to February 2021 Executive Vice President since July 2020 USAA Director, Asset Liability Management from June 2016 to June 2020 Granville Tate, Jr., 68 Trustmark Corporation Secretary since December 2015 Trustmark National Bank Chief Administrative Officer since January 2021 Chief Risk Officer from June 2016 to November 2021 General Counsel from December 2015 to November 2021 Executive Vice President and Secretary since December 2015
Arthur Stevens, 61 Trustmark Bank President – Retail Banking since September 2011 Maria Luisa "Ria" Sugay, 44 Trustmark Bank Bank Treasurer since March 2021 Bank Co-Treasurer from July 2020 to February 2021 Executive Vice President since July 2020 Granville Tate, Jr., 69 Trustmark Corporation Secretary since December 2015 Trustmark Bank Chief Administrative Officer since January 2021 Chief Risk Officer from June 2016 to November 2021 General Counsel from December 2015 to November 2021 Executive Vice President and Secretary since December 2015
Under the final rule, financial institutions are required, upon request, to make available to a consumer or third party authorized by the consumer certain information TNB has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account.
Under the final rule, a financial institution would be required, upon request, to make available to a consumer or third party authorized by the consumer certain information the institution has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account. Industry organizations challenged the final rule in court.
Recent Economic and Industry Developments Economic activity improved moderately during 2024; however, economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as the conflicts in Ukraine and the Middle East, inflation, other economic and industry volatility, the current United States presidential administration's policies, higher energy prices and broader price pressures.
However, economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as conflicts in Ukraine and the Middle East, the current United States presidential administration's policies, inflationary and broader pricing pressures and other economic and industry volatility.
At December 31, 2024, TNB also exceeded these requirements with common equity Tier 1 capital, Tier 1 capital and total capital equal to 12.20%, 12.20% and 13.41% of its total risk-weighted assets, respectively. At December 31, 2024, the leverage ratios for Trustmark and TNB were 9.99% and 10.21%, respectively.
At December 31, 2025, TB also exceeded these requirements with common equity Tier 1 capital, Tier 1 capital and total capital equal to 12.33%, 12.33% and 13.52% of its total risk-weighted assets, respectively. At December 31, 2025, the leverage ratios for Trustmark and TB were 10.18% and 10.37%, respectively.
At December 31, 2024, Trustmark exceeded its minimum capital requirements with common equity Tier 1 capital, Tier 1 capital and total capital equal to 11.54%, 11.94% and 13.97% of its total risk-weighted assets, respectively.
At December 31, 2025, Trustmark exceeded its minimum capital requirements with common equity Tier 1 capital, Tier 1 capital and total capital equal to 11.72%, 12.11% and 14.41% of its total risk-weighted assets, respectively.
Capital adequacy regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors.
Capital adequacy regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The FRB has established substantially similar minimum risk-based capital ratio and leverage ratio requirements for bank holding companies and banks.
Trustmark and TNB are also subject to a wide range of consumer protection laws and regulations. 12 Restrictions on Lending, Insider Transactions and Affiliate Transactions National banks are limited in the amounts they may lend to one borrower and the amount they may lend to insiders.
Trustmark and TB are also subject to a wide range of consumer protection laws and regulations. 12 Restrictions on Lending, Insider Transactions and Affiliate Transactions TB is limited by state and/or federal law in the amounts it may lend to one borrower, to insiders and to affiliates.
Regulation of TNB TNB is a national bank and, as such, is subject to extensive regulation by the OCC and, to a lesser extent, by the FDIC. In addition, as a large provider of consumer financial services, TNB is subject to regulation, supervision, enforcement and examination by the CFPB.
In addition, as a large provider of consumer financial services, TB is subject to regulation, supervision, enforcement and examination by the CFPB.
ITEM 1. BUSINESS The Corporation Description of Business Trustmark Corporation (Trustmark), a Mississippi business corporation incorporated in 1968, is a bank holding company headquartered in Jackson, Mississippi. Trustmark’s principal subsidiary is Trustmark National Bank (TNB), initially chartered by the State of Mississippi in 1889.
ITEM 1. BUSINESS The Corporation Description of Business Trustmark Corporation (Trustmark), a Mississippi business corporation incorporated in 1968, is a bank holding company headquartered in Jackson, Mississippi.
Trustmark has numerous local, regional and national nonbank competitors, including savings and loan associations, credit unions, mortgage companies, finance companies, financial service operations of major retailers, investment brokerage and financial advisory firms and mutual fund companies.
Trustmark and its subsidiaries compete with national and state-chartered banking institutions of comparable or larger size and resources and with smaller community banking organizations. Trustmark has numerous local, regional and national nonbank competitors, including savings and loan associations, credit unions, mortgage companies, finance companies, financial service operations of major retailers, investment brokerage and financial advisory firms and mutual fund companies.
Dewey, 66 Trustmark Corporation President and Chief Executive Officer since January 2021 Trustmark National Bank Chief Executive Officer since January 2021 President since January 2020 Chief Operating Officer from January 2019 to December 2020 George T.
Dewey, 67 Trustmark Corporation President and Chief Executive Officer since January 2021 Trustmark Bank Chief Executive Officer since January 2021 President since January 2020 George T.
In addition, the FRB’s rules allow for an upward adjustment of no more than one cent to an issuer’s debit card interchange fee if the issuer develops and implements policies and procedures reasonably designed to achieve the fraud-prevention standards set out in the rule. 14 In October 2023, the FRB proposed changes to its EFTA rules that would decrease the maximum interchange fees that an issuer may receive for an electronic debit transaction to the sum of 14.4 cents and four basis points multiplied by the value of the transaction and increase the fraud prevention adjustment to 1.3 cents.
In October 2023, the FRB proposed changes to its EFTA rules that would decrease the maximum interchange fees that an issuer may receive for an electronic debit transaction to the sum of 14.4 cents and four basis points multiplied by the value of the transaction and increase the fraud prevention adjustment to 1.3 cents.
Competition There is significant competition within the banking and financial services industry in the markets in which Trustmark operates. Changes in regulation, technology and product delivery systems have resulted in an increasingly competitive environment.
Competition There is significant competition within the banking and financial services industry in the markets in which Trustmark operates. Changes in regulation, technology and product delivery systems have resulted in an increasingly competitive environment. Trustmark expects to continue to face increasing competition from online and traditional financial institutions seeking to attract customers by providing access to similar services and products.
Such statutes, regulations and policies are continually under the review of the United States Congress and state legislatures as well as federal and state regulatory agencies. A change in statutes, regulations or policies could have a material impact on the business of Trustmark and its subsidiaries.
Such statutes, regulations and policies are continually under the review of the United States Congress and state legislatures as well as federal and state regulatory agencies.
In accordance with the GLB Act, federal bank regulators adopted rules that limit the ability of banks and other financial institutions to disclose nonpublic information about consumers to nonaffiliated third parties. The GLB Act also requires disclosure of privacy policies to consumers and, in some circumstances, allows consumers to prevent disclosure of certain personal information to a nonaffiliated third party.
Financial Privacy Laws and Cybersecurity The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 (GLB Act) imposed requirements related to the privacy of customer financial information. In accordance with the GLB Act, federal bank regulators adopted rules that limit the ability of banks and other financial institutions to disclose nonpublic information about consumers to nonaffiliated third parties.
Consumer Protection Laws TNB is subject to a number of federal and state laws designed to protect customers and promote lending to various sectors of the economy and population.
TB's most recent performance evaluation was conducted using the CRA framework that existed prior to the October 2023 final rule. Consumer Protection Laws TB is subject to a number of federal and state laws designed to protect customers and promote lending to various sectors of the economy and population.
At the most recent meeting of the FRB's Federal Open Market Committee (in January 2025), the FRB determined to leave the target federal funds rate unchanged. In addition, the FRB maintained the rate it paid on reserves at 5.40% from July 2023 through September 2024.
At the most recent meeting of the FRB's Federal Open Market Committee (in January 2026), the FRB determined to leave the target federal funds rate and the rate it pays on reserves unchanged. Prior period rate increases increased the competitive pressures on the deposit cost of funds.
In addition, the federal banking agencies pay close attention to the cybersecurity practices of banks, and the agencies include review of an institution’s information technology and its ability to thwart cyberattacks in their examinations. An institution’s failure to have adequate cybersecurity safeguards in place can result in supervisory criticism, monetary penalties and/or reputational harm.
Trustmark recognizes the need to comply with legal and regulatory requirements that affect its customers’ privacy. In addition, the federal banking agencies pay close attention to the cybersecurity practices of banks, and the agencies include review of an institution’s information technology and its ability to thwart cyberattacks in their examinations.
On October 24, 2023, the federal banking agencies released a final rule significantly revising the framework that the agencies use to evaluate banks’ records of meeting the credit needs of their entire communities under the CRA.
On October 24, 2023, the federal banking agencies released a final rule revising their framework for evaluating banks’ records of community reinvestment under the CRA. On July 16, 2025, the agencies issued a notice of proposed rulemaking to rescind the October 2023 final rule and restore the CRA framework that existed prior to the October 2023 final rule.
During 2024, the FDIC updated its estimate of the DIF’s losses and projected that the special assessment would be collected for an additional two quarters beyond the initial eight-quarter collection periods, at a lower rate. The special assessment is not expected to be material to Trustmark's financial condition or results of operations.
In December 2025, the FDIC updated its estimate of the DIF’s losses and reduced the final assessment rate for the eighth collection quarter. The special assessment was not material to Trustmark's financial condition or results of operations.
Regulation of Trustmark Trustmark is a registered bank holding company under the Bank Holding Company Act of 1956 (BHC Act).
A change in statutes, regulations or policies could have a material impact on the business of Trustmark and its subsidiaries. 9 Regulation of Trustmark Trustmark is a registered bank holding company under the Bank Holding Company Act of 1956 (BHC Act).
Reports by the Federal Reserve’s Sixth District, Atlanta (which includes Trustmark’s Alabama, Florida, Georgia and Mississippi market regions), Eighth District, St. Louis (which includes Trustmark’s Tennessee market region), and Eleventh District, Dallas (which includes Trustmark’s Texas market region), noted similar findings for the reporting period as those discussed above.
Louis (which includes Trustmark’s Tennessee market region), and Eleventh District, Dallas (which includes Trustmark’s Texas market region), noted similar findings for the reporting periods as those discussed above. The Federal Reserve’s Sixth District also noted modest loan growth, with the largest increases in the credit card segment, and declines in auto and other consumer loans reflecting consumer uncertainty.
As of its last examination from the OCC, TNB received a CRA rating of “Outstanding.” The evaluation covered activities in the period from January 1, 2022 through December 31, 2023.
A rating of less than “Satisfactory” may provide a basis for denial of such an application. TB received a rating of “Outstanding” in its most recent CRA performance evaluation, which covered activities in the period from January 1, 2022 through December 31, 2023.
In 2024, TNB’s expenses related to deposit insurance premiums totaled $19.2 million. TNB Subsidiaries TNB’s nonbanking subsidiaries are subject to a variety of state and federal laws and regulations. SCC is subject to the supervision and regulation of the CDFI Fund and the State of Mississippi. 15 Available Information Trustmark’s internet address is www.trustmark.com.
SCC is subject to the supervision and regulation of the CDFI Fund and the State of Mississippi. Available Information Trustmark’s internet address is www.trustmark.com. Information contained on this website is not a part of this report.
The privacy provisions of the GLB Act affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors. Trustmark recognizes the need to comply with legal and regulatory requirements that affect its customers’ privacy.
The GLB Act also requires disclosure of privacy policies to consumers and, in some circumstances, allows consumers to prevent disclosure of certain personal information to a nonaffiliated third party. The privacy provisions of the GLB Act affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors.
As a result, State Attorneys General may enforce in a court action “an applicable law” against federally-chartered depository institutions like TNB. In addition, under the Dodd-Frank Act, state attorneys general are authorized to bring civil actions against federally-chartered institutions, like TNB, to enforce regulations prescribed by the CFPB or to secure other remedies.
While TB’s activities are governed primarily by federal law, states may adopt their own consumer protection laws that exceed the requirements of 13 federal law. In addition, under the Dodd-Frank Act, state attorneys general are authorized to bring civil actions to enforce regulations prescribed by the CFPB or to secure other remedies.
Additionally, banking organizations are required to notify their primary federal regulator of significant computer security incidents within 36 hours of determining that such an incident has occurred. On October 22, 2024, the CFPB released a final rule to implement Section 1033 of the Dodd-Frank Act.
An institution’s failure to have adequate cybersecurity safeguards in place can result in supervisory criticism, monetary penalties and/or reputational harm. Additionally, banking organizations are required to notify their primary federal regulator of significant computer security incidents within 36 hours of determining that such an incident has occurred.
At December 31, 2024, TNB had total assets of $18.150 billion, which represented approximately 99.99% of the consolidated assets of Trustmark.
TB is a member bank of the Federal Reserve System and is supervised by the Federal Reserve Bank of Atlanta (FRBA) and the Mississippi Department of Banking and Consumer Finance (MDBCF). At December 31, 2025, TB had total assets of $18.923 billion, which represented approximately 99.99% of the consolidated assets of Trustmark.
The FDIC also may suspend deposit insurance temporarily during the hearing process for the permanent termination of insurance if the institution has no tangible capital. On July 30, 2024, the FDIC issued a proposed rule that would revise the FDIC’s regulations governing the classification and treatment of brokered deposits.
The FDIC also may suspend deposit insurance temporarily during the hearing process for the permanent termination of insurance if the institution has no tangible capital. In 2025, TB’s expenses related to deposit insurance premiums totaled $15.7 million. TB Subsidiaries TB’s nonbanking subsidiaries are subject to a variety of state and federal laws and regulations.
Market interest rates remained elevated during most of 2024. The FRB maintained the target federal funds rate at a range of 5.25% to 5.50% from July 2023 through September 2024.
For most of 2025, the FRB left the target federal funds rate unchanged at a range of 4.25% to 4.50% and maintained the rate it pays on reserves at 4.40%.
Management is monitoring the status of the litigation and evaluating the impact of this rule.
On October 29, 2025, the district court issued a preliminary injunction preventing the CFPB from enforcing the final rule until the CFPB has completed its reconsideration of the rule. Management is monitoring the status of the litigation and evaluating the impact of this rule.
On November 16, 2023, the FDIC adopted a final rule implementing a special assessment to recover the loss to the FDIC’s DIF incurred in the receiverships of Silicon Valley Bank and Signature Bank.
In November 2023, the FDIC adopted a final rule to implement a special deposit insurance assessment for eight quarters starting with the first quarter of 2024, to recover losses to the DIF arising from the bank failures of Spring 2023.
These single counterparty and insider lending limits extend to loans, derivative transactions, repurchase agreements, reverse repurchase agreements and securities lending or borrowing transactions. In addition, the FDI Act imposes restrictions on insured depository institutions’ purchases of assets from insiders.
In addition, the FDI Act imposes restrictions on TB's purchases of assets from insiders.
In September 2024, the FRB began lowering the target federal funds rate making multiple decreases during the fourth quarter of 2024 to a range of 4.25% to 4.50% as of December 2024, based on its confidence that inflation was moving substantially toward 2.00% and that the risks to achieving the FRB's employment and inflation goals were roughly balanced.
As a result, the FRB decreased the target federal funds rate and the rate it pays on reserves multiple times during the fourth quarter of 2025, lowering the target federal funds rate to a range of 3.50% to 3.75% and the rate it pays on reserves to 3.65% as of December 2025.
Removed
In September 2024, the FRB made the first of multiple declines in the rate it pays on reserves, lowering the rate to 4.40% as of December 2024. Prior period rate increases increased the competitive pressures on the deposit cost of funds.
Added
As previously disclosed, on August 4, 2025, Trustmark’s principal subsidiary, Trustmark National Bank, initially chartered by the State of Mississippi in 1889, converted from a national banking association to a Mississippi-chartered banking corporation and changed its name to Trustmark Bank (TB).
Removed
Reports by the twelve Federal Reserve Districts (Districts) noted the following during the reporting period: • Consumer spending increased moderately, with most Districts reporting strong holiday sales that exceeded expectations. Vehicle sales grew modestly. Construction activity decreased overall, with several Districts indicating that high costs for materials and financing were weighing on growth.
Added
Recent Economic and Industry Developments Economic activity improved slightly during 2025, but was characterized by mixed signals, notably, strong equity market performance, continued consumer spending and FRB rate cuts, but also a softening labor market and persistent inflationary pressures, driven partly by new tariffs.
Removed
Manufacturing decreased slightly on net, with a number of Districts noting manufacturers were stockpiling inventories in anticipation of higher tariffs. Residential real estate activity was unchanged on balance, as high mortgage rates continued to hold back demand. Commercial real estate sales edged up. Nonfinancial services sector grew slightly overall, with Districts highlighting growth in leisure and hospitality and transportation.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

54 edited+12 added−19 removed125 unchanged
Biggest changeTrustmark will continue to count $60.0 million in outstanding trust preferred securities issued by the Trust as Tier 1 capital up to the regulatory limit, as permitted by a grandfather provision in the capital rules, but this grandfather provision may cease to apply if Trustmark consummates an acquisition of a depository institution holding company and the resulting organization has $15 billion of more in total assets. 22 Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 326, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ,” requires Trustmark to recognize all expected credit losses over the life of a loan based on historical experience, current conditions and reasonable and supportable forecasts.
Biggest changeTrustmark will continue to count $60.0 million in outstanding trust preferred securities issued by the Trust as Tier 1 capital up to the regulatory limit, as permitted by a grandfather provision in the capital rules, but this grandfather provision may cease to apply if Trustmark consummates an acquisition of a depository institution holding company.
In particular, Trustmark may face the following risks in connection with these events: • Market developments and the resulting economic pressure on consumers may affect consumer confidence levels and may cause increases in delinquencies and default rates, which, among other effects, could further affect Trustmark’s charge-offs and provision for credit losses. • Loan performance could experience a significantly extended deterioration or loan default levels could accelerate, foreclosure activity could significantly increase, or Trustmark’s assets (including loans and investment securities) could materially decline in value, any one of which, or any combination of more than one of which, could have a material adverse effect on Trustmark’s financial condition or results of operations. 20 • Management’s ability to measure the fair value of Trustmark’s assets could be adversely affected by market disruptions that could make valuation of assets more difficult and subjective.
In particular, Trustmark may face the following risks in connection with these events: • Market developments and the resulting economic pressure on consumers may affect consumer confidence levels and may cause increases in delinquencies and default rates, which, among other effects, could further affect Trustmark’s charge-offs and provision for credit losses. • Loan performance could experience a significantly extended deterioration or loan default levels could accelerate, foreclosure activity could significantly increase, or Trustmark’s assets (including loans and investment securities) could materially decline in value, any one of which, or any combination of more than one of which, could have a material adverse effect on Trustmark’s financial condition or results of operations. • Management’s ability to measure the fair value of Trustmark’s assets could be adversely affected by market disruptions that could make valuation of assets more difficult and subjective.
Acquiring other banks, businesses, or branches involves various risks commonly associated with acquisitions, including: potential exposure to unknown or contingent liabilities of the target company, exposure to potential asset quality issues of the target company, difficulty and expense of integrating the operations and personnel of the target company, potential disruption to Trustmark’s business, potential diversion of Trustmark’s Management’s time and attention, the possible loss of key employees and customers of the target company, difficulty in estimating the value of the target company and potential changes in banking or tax laws or regulations that may affect the target company.
Acquiring other banks, businesses, 25 or branches involves various risks commonly associated with acquisitions, including: potential exposure to unknown or contingent liabilities of the target company, exposure to potential asset quality issues of the target company, difficulty and expense of integrating the operations and personnel of the target company, potential disruption to Trustmark’s business, potential diversion of Trustmark’s Management’s time and attention, the possible loss of key employees and customers of the target company, difficulty in estimating the value of the target company and potential changes in banking or tax laws or regulations that may affect the target company.
If Management determines that a significant portion of its assets have values that are significantly below their recorded carrying value, Trustmark could recognize a material charge to earnings in the quarter during which such determination was made, Trustmark’s capital ratios would be adversely affected by any such charge, and a rating agency might downgrade Trustmark’s credit rating or put Trustmark on credit watch.
If Management determines that a significant portion of its assets have values that are significantly below their recorded carrying value, Trustmark could recognize a material charge 19 to earnings in the quarter during which such determination was made, Trustmark’s capital ratios would be adversely affected by any such charge, and a rating agency might downgrade Trustmark’s credit rating or put Trustmark on credit watch.
While Trustmark invests significantly in the training and development of its employees, it is possible that Trustmark may not be able to retain key employees. If Trustmark were unable to retain its most qualified employees, its performance and competitive positioning could be materially adversely affected. Natural disasters, such as hurricanes, could have a significant negative impact on Trustmark’s business.
While Trustmark invests significantly in the training and development of its employees, it is possible that Trustmark may not be able to retain key employees. If Trustmark were unable to retain its most qualified employees, its performance and competitive positioning could be materially adversely affected. 26 Natural disasters, such as hurricanes, could have a significant negative impact on Trustmark’s business.
Banking regulations are primarily intended to protect depositors’ funds, federal deposit insurance funds and the banking system as a whole, not security holders. These regulations and supervisory guidance affect Trustmark’s lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes.
Banking regulations are primarily intended to protect depositors’ funds, federal deposit insurance funds and the banking system as a whole, not security holders. These regulations and supervisory guidance affect Trustmark’s lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal and state regulatory agencies continually review banking laws, regulations and policies for possible changes.
Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve and the changing composition of Trustmark’s balance sheet, resulting 17 from both strategic plans and customer behavior. In addition, the model incorporates Management’s assumptions and expectations regarding such factors as loan and deposit growth, pricing, prepayment speeds and spreads between interest rates.
Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve and the changing composition of Trustmark’s balance sheet, resulting from both strategic plans and customer behavior. In addition, the model incorporates Management’s assumptions and expectations regarding such factors as loan and deposit growth, pricing, prepayment speeds and spreads between interest rates.
A security breach or other significant disruption of Trustmark's information systems or those related to its customers, merchants or third-party vendors, including as a result of cyber-attacks, could (i) disrupt the proper functioning of its networks and systems and therefore its operations and/or those of its customers; (ii) result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of confidential, sensitive or otherwise valuable information of Trustmark or its customers; (iii) result in a violation of applicable privacy, data breach and other laws, subjecting Trustmark to additional regulatory scrutiny and exposing it to civil litigation, enforcement actions, governmental fines and possible financial liability; (iv) require significant management attention and resources to remedy the damages that result; or (v) harm Trustmark's reputation or cause a decrease in the number of customers that choose to do business with 25 Trustmark.
A security breach or other significant disruption of Trustmark's information systems or those related to its customers, merchants or third-party vendors, including as a result of cyber-attacks, could (i) disrupt the proper functioning of its networks and systems and therefore 24 its operations and/or those of its customers; (ii) result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of confidential, sensitive or otherwise valuable information of Trustmark or its customers; (iii) result in a violation of applicable privacy, data breach and other laws, subjecting Trustmark to additional regulatory scrutiny and exposing it to civil litigation, enforcement actions, governmental fines and possible financial liability; (iv) require significant management attention and resources to remedy the damages that result; or (v) harm Trustmark's reputation or cause a decrease in the number of customers that choose to do business with Trustmark.
Although Management has established disaster recovery policies and procedures, the occurrence of a natural disaster, especially if any applicable insurance coverage is not adequate to 27 enable Trustmark’s borrowers to recover from the effects of the event, could have a material adverse effect on Trustmark’s financial condition or results of operations.
Although Management has established disaster recovery policies and procedures, the occurrence of a natural disaster, especially if any applicable insurance coverage is not adequate to enable Trustmark’s borrowers to recover from the effects of the event, could have a material adverse effect on Trustmark’s financial condition or results of operations.
Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by Federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, the revocation of a banking charter, civil money penalties, other sanctions by regulatory agencies and/or reputational damage.
Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by Federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, the revocation of a banking charter, civil money penalties, other sanctions by 20 regulatory agencies and/or reputational damage.
Certain decisions that the regulators make, including those related to capital distributions and dividends to Trustmark’s shareholders, could be adversely affected due to the regulator’s perception that the quality of Trustmark’s models used to generate the relevant information is insufficient. Trustmark could be required to write down goodwill and other intangible assets.
Certain decisions that the regulators make, including those related to capital distributions and dividends to Trustmark’s shareholders, could be adversely affected due to the regulator’s perception that the quality of Trustmark’s models used to generate the relevant information is insufficient. 22 Trustmark could be required to write down goodwill and other intangible assets.
Acquisitions 26 may involve the payment of a premium over book and market values, and, therefore, some dilution of Trustmark’s tangible book value and net income per share of common stock may occur in connection with any future transaction.
Acquisitions may involve the payment of a premium over book and market values, and, therefore, some dilution of Trustmark’s tangible book value and net income per share of common stock may occur in connection with any future transaction.
Trustmark and its customers will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. Trustmark and its customers may face cost increases, asset value reductions, operating process changes and the like.
Trustmark and its customers may need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. Trustmark and its customers may face cost increases, asset value reductions, operating process changes and the like.
It is not possible to predict the timing or magnitude of changes in macroeconomic conditions or the impact such changes could have on Trustmark’s allowance for credit losses; however, material changes in the allowance for credit losses could have a material impact on Trustmark’s reserves and capital.
It is not possible to predict the timing or magnitude of changes in macroeconomic conditions or the impact such changes could have on Trustmark’s 21 allowance for credit losses; however, material changes in the allowance for credit losses could have a material impact on Trustmark’s reserves and capital.
Trustmark obtains funding through deposits and various short-term and long-term wholesale borrowings, including federal funds purchased and securities sold under repurchase agreements, the Federal Reserve Discount Window (Discount Window) and Federal Home Loan Bank (FHLB) advances.
Trustmark obtains funding through deposits and various short-term and long-term wholesale borrowings, including federal funds purchased and securities sold under repurchase agreements, the Federal Reserve Discount Window 18 (Discount Window) and Federal Home Loan Bank (FHLB) advances.
If Trustmark 19 determines that a credit loss exists, the credit portion of the allowance would be measured using a discounted cash flow (DCF) analysis using the effective interest rate as of the security’s purchase date.
If Trustmark determines that a credit loss exists, the credit portion of the allowance would be measured using a discounted cash flow (DCF) analysis using the effective interest rate as of the security’s purchase date.
Under the regulatory capital rules of the FRB, OCC, and FDIC that implement a set of capital requirements issued by the Basel Committee on Banking Supervision known as Basel III, Trustmark and TNB are required to maintain a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.0% (a minimum of 4.5% plus a capital conservation buffer of 2.5%), a Tier 1 capital to risk-weighted assets ratio of at least 8.5% (a minimum of 6.0% plus a capital conservation buffer of 2.5%), a total capital to risk-weighted assets ratio of at least 10.5% (a minimum of 8.0% plus a capital conservation buffer of 2.5%) and a leverage ratio of Tier 1 capital to total consolidated assets of at least 4.0%.
Under the regulatory capital rules of the FRB, OCC, and FDIC that implement a set of capital requirements issued by the Basel Committee on Banking Supervision known as Basel III, Trustmark and TB are required to maintain a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.0% (a minimum of 4.5% plus a capital conservation buffer of 2.5%), a Tier 1 capital to risk-weighted assets ratio of at least 8.5% (a minimum of 6.0% plus a capital conservation buffer of 2.5%), a total capital to risk-weighted assets ratio of at least 10.5% (a minimum of 8.0% plus a capital conservation buffer of 2.5%) and a leverage ratio of Tier 1 capital to total consolidated assets of at least 4.0%.
In addition, for TNB to be “well-capitalized” under the banking agencies’ prompt corrective action framework, it must have a common equity Tier 1 capital ratio of at least 6.5%, a Tier 1 capital ratio of at least 8.0%, a total capital ratio of at least 10.0% and a leverage ratio of at least 5.0%, and must not be subject to any written agreement, order or capital directive, or prompt corrective action directive issued by its primary federal regulator to meet and maintain a specific capital level for any capital measure.
In addition, for TB to be “well-capitalized” under the banking agencies’ prompt corrective action framework, it must have a common equity Tier 1 capital ratio of at least 6.5%, a Tier 1 capital ratio of at least 8.0%, a total capital ratio of at least 10.0% and a leverage ratio of at least 5.0%, and must not be subject to any written agreement, order or capital directive, or prompt corrective action directive issued by its primary federal regulator to meet and maintain a specific capital level for any capital measure.
Such changes 21 could subject Trustmark to additional costs, limit the types of financial services and products Trustmark may offer and/or increase the ability of nonbanks to offer competing financial services and products, among other things.
Such changes could subject Trustmark to additional costs, limit the types of financial services and products Trustmark may offer and/or increase the ability of nonbanks to offer competing financial services and products, among other things.
In this regard, government authorities, including bank regulatory agencies, continue to pursue enforcement agendas with respect to compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived compliance failures. Any of the foregoing could have a material adverse effect on Trustmark’s financial condition or results of operations.
In this regard, government authorities, including bank regulatory agencies, have the authority to pursue enforcement agendas with respect to compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived compliance failures. Any of the foregoing could have a material adverse effect on Trustmark’s financial condition or results of operations.
As a result, Trustmark may elect, or be required, to make further increases in its provision for credit losses in the future, particularly if economic conditions deteriorate. Additionally, Trustmark may rely on information furnished by or on behalf of customers and counterparties in deciding whether to extend credit or enter into other transactions.
As a result, Trustmark may elect, or be required, to make further increases in its provision for credit losses in the future, particularly if economic conditions deteriorate. Trustmark may also rely on information furnished by or on behalf of customers and counterparties in deciding whether to extend credit or enter into other transactions.
The regulatory capital rules applicable to Trustmark and TNB may continue to evolve as a result of new requirements established by the Basel Committee on Banking Supervision or legislative, regulatory or accounting changes in the United States. Management cannot predict the effect that any changes to current capital requirements would have on Trustmark and TNB.
The regulatory capital rules applicable to Trustmark and TB may continue to evolve as a result of new requirements established by the Basel Committee on Banking Supervision or legislative, regulatory or accounting changes in the United States. Management cannot predict the effect that any changes to current capital requirements would have on Trustmark and TB.
Compliance and Regulatory Risks Trustmark is subject to extensive government regulation and supervision and possible enforcement and other legal actions. Trustmark, primarily through TNB and certain nonbank subsidiaries, is subject to extensive federal and state regulation and supervision, which vests a significant amount of discretion in the various regulatory authorities.
Compliance and Regulatory Risks Trustmark is subject to extensive government regulation and supervision and possible enforcement and other legal actions. Trustmark, primarily through TB and certain nonbank subsidiaries, is subject to extensive federal and state regulation and supervision, which vests a significant amount of discretion in the various regulatory authorities.
Trustmark’s annual goodwill impairment evaluation performed during the fourth quarter of 2024 indicated no impairment of goodwill for any reporting segment. Management cannot provide assurance, however, that Trustmark will not be required to take an impairment charge in the future.
Trustmark’s annual goodwill impairment evaluation performed during the fourth quarter of 2025 indicated no impairment of goodwill for any reporting segment. Management cannot provide assurance, however, that Trustmark will not be required to take an impairment charge in the future.
Any failure, interruption or breach in security of these systems could result in significant disruption to Trustmark's operations.
Any failure, interruption or breach in security of these systems could result 23 in significant disruption to Trustmark's operations.
Trustmark’s stock price can fluctuate significantly in response to a variety of factors, including factors affecting the financial industry as a whole, such as the bank failures in March 2023.
Trustmark’s stock price can fluctuate significantly in response to a variety of factors, including factors affecting the financial industry as a whole, such as the bank failures in Spring 2023.
Doubts surrounding the near-term direction of global markets, and the potential impact of these trends on the United States economy, are expected to persist for the near term. While Trustmark’s customer base is wholly domestic, international economic conditions affect domestic conditions, and thus may have an impact upon Trustmark’s financial condition or results of operations.
Concerns surrounding the direction of global markets and the potential impact on the United States economy are expected to persist for the near term. While Trustmark's customer base is wholly domestic, international economic conditions affect domestic economic conditions, and thus may have an impact upon Trustmark's financial condition or results of operations.
As of its last examination, TNB received a CRA rating of “Outstanding,” which represented an improvement from its previous CRA rating of “Needs to Improve.” TNB’s failure to maintain at least a “Satisfactory” CRA rating in the future could adversely affect its ability to complete the acquisition of another financial institution or open a new branch.
As of its last examination, TB received a CRA rating of “Outstanding,” which represented an improvement from its previous CRA rating of “Needs to Improve.” TB’s failure to maintain at least a “Satisfactory” CRA rating in the future could adversely affect its ability to complete the acquisition of another financial institution or open a new branch.
Prior period rate increases increased the competitive pressures on the deposit cost of funds. While rate cuts potentially reduce those competitive pressures, they increase pressure on Trustmark's net interest margin, a key component to its financial results.
Prior period rate increases increased the competitive pressures on the deposit cost of funds. While rate cuts potentially reduced those competitive pressures, they increased pressure on Trustmark's net interest margin, a key component to its financial results.
Trustmark’s efforts to take these risks into account may not be effective in protecting it from the negative impact of new laws and regulations or changes in consumer or business behavior and could have a material adverse effect on Trustmark’s financial condition and results of operations. ITEM 1B. UNRESOLV ED STAFF COMMENTS None
Trustmark’s efforts to take these risks into account may not be effective in protecting it from the negative impact of regulatory initiatives or changes in consumer or business behavior and could have a material adverse effect on Trustmark’s financial condition and results of operations. ITEM 1B. UNRESOLV ED STAFF COMMENTS None.
At December 31, 2024, gross unrealized losses on securities for which an allowance for credit losses has not been recorded totaled $30.0 million. Trustmark may be required to record credit loss expense if these investments suffer a decline in value that is the result of a credit loss.
At December 31, 2025, gross unrealized losses on securities for which an allowance for credit losses has not been recorded totaled $14.5 million. Trustmark may be required to record credit loss expense if these investments suffer a decline in value that is the result of a credit loss.
Trustmark is unable to predict changes in market interest rates, which are affected by many factors beyond Trustmark’s control, including inflation, recession, unemployment, money supply, domestic and international events and changes in the United States and other financial markets. Market interest rates remained elevated during most of 2024.
Trustmark is unable to predict changes in market interest rates, which are affected by many factors beyond Trustmark’s control, including inflation, recession, unemployment, money supply, domestic and international events and changes in the United States and other financial markets.
Financial simulation models are the primary tools used by Trustmark to measure interest rate exposure. Using a wide range of scenarios, Management is provided with extensive information on the potential impact to net interest income caused by changes in interest rates. Models are structured to simulate cash flows and accrual characteristics of Trustmark’s balance sheet.
Using a wide range of scenarios, Management is provided with extensive information on the potential impact to net interest income caused by changes in interest rates. Models are structured to simulate cash flows and accrual characteristics of Trustmark’s balance sheet.
In the event of a hypothetical 100 basis point decrease in interest rates using static balances at December 31, 2024, it is estimated net interest income may decrease by 1.2%, while a hypothetical 200 basis point decrease in interest rates, may decrease net interest income 3.0%.
In the event of a hypothetical 100 basis point decrease in interest rates using static balances at December 31, 2025, it is estimated net interest income may decrease 2.1%, while a hypothetical 200 basis point decrease in interest rates may decrease net interest income 4.8%.
If Trustmark consummates an acquisition, a portion of the purchase price would generally be allocated to goodwill and other identifiable intangible assets. The amount of the purchase price that is allocated to goodwill and other intangible assets is determined by the excess of the purchase price over the net identifiable assets acquired.
If Trustmark consummates an acquisition, a portion of the purchase price would generally be allocated to goodwill and other identifiable intangible assets. The amount of the purchase price that is allocated to goodwill and other intangible assets is determined by the excess of the purchase price over the net identifiable assets acquired. At December 31, 2025, goodwill was $334.6 million.
As business necessitates, Trustmark forecloses on and takes title to real estate serving as collateral for loans. At December 31, 2024, Trustmark held $5.9 million of other real estate.
As business necessitates, Trustmark forecloses on and takes title to real estate serving as collateral for loans. At December 31, 2025, Trustmark held $7.0 million of other real estate.
Trustmark’s simulation model using static balances at December 31, 2024, estimated that in the event of a hypothetical 200 basis point increase in interest rates, net interest income may increase 0.8%, while a hypothetical 100 basis point increase in interest rates, may increase net interest income 0.4%.
Trustmark’s simulation model using static balances at December 31, 2025 estimated that in the event of a hypothetical 200 basis point increase in interest rates, net interest income may increase 3.1%, while a hypothetical 100 basis point increase in interest rates may increase net interest income 1.5%.
If TNB receives an overall CRA rating of less than “Satisfactory” in the future, the OCC would not re-evaluate its rating until TNB’s next CRA examination, which may not occur for several more years, and it is possible that a low CRA rating would not improve in the future. Trustmark is subject to stringent capital requirements.
If TB were to receive an overall CRA rating of less than “Satisfactory” in the future, the FRB would not re-evaluate the CRA rating until TB’s next CRA examination, which may not occur for several years. It is possible that a low CRA rating would not improve in the future. Trustmark is subject to stringent capital requirements.
Economic activity improved moderately during 2024; however, economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as the conflicts in Ukraine and the Middle East, inflation, other economic and industry volatility, the current United States presidential administration's policies, higher energy prices and broader price pressures.
However, economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as the conflicts in Ukraine and the Middle East, the current United States presidential administration's policies, inflationary and broader pricing pressures and other economic and industry volatility.
Consumers and businesses also may change their behavior on their own as a result of these concerns. It is not possible to predict how climate change may impact Trustmark’s financial condition and operations; however, Trustmark operates in areas where its business and the activities of its customers could be impacted by the effects of climate change.
It is not possible to predict how climate change may impact Trustmark’s financial condition and operations; however, Trustmark operates in areas where its business and the activities of its customers could be impacted by the effects of climate change.
At December 31, 2024, goodwill and other identifiable intangible assets, 23 net were $334.7 million. Under current accounting standards, if Trustmark determines goodwill or intangible assets are impaired, Trustmark would be required to write down the carrying value of these assets.
Trustmark's other identifiable intangible assets, net were fully amortized as of December 31, 2025. Under current accounting standards, if Trustmark determines goodwill or other intangible assets are impaired, Trustmark would be required to write down the carrying value of these assets.
There could be sudden increases in customer transaction volume; electrical, telecommunications or other major physical infrastructure outages; natural disasters; and events arising from local or larger scale political or social matters, including terrorist acts. 24 Further, Trustmark’s operational and security systems and infrastructure may be vulnerable to breaches and cybersecurity-related incidents including, but not limited to, attempts to access information, including customer and company information, malicious code, computer viruses and denial of service attacks that could result in unauthorized access, theft, misuse, loss, release or destruction of data (including confidential customer information), account takeovers, unavailability of service or other events.
Further, Trustmark’s operational and security systems and infrastructure may be vulnerable to breaches and cybersecurity-related incidents including, but not limited to, attempts to access information, including customer and company information, malicious code, computer viruses and denial of service attacks that could result in unauthorized access, theft, misuse, loss, release or destruction of data (including confidential customer information), account takeovers, unavailability of service or other events.
Under regulatory guidance, Trustmark is required to apply stringent due diligence, conduct ongoing monitoring and maintain effective control over third-party service providers and subcontractors and other ongoing third-party business relationships.
Under interagency regulatory guidance issued in 2023, Trustmark is required to apply stringent due diligence, conduct ongoing monitoring and maintain effective control over third-party service providers and subcontractors and other ongoing third-party business relationships. These regulatory expectations may continue to evolve and become more rigorous over time.
Expectations around Environmental, Social and Governance (ESG) practices as well as climate change and related legislative and regulatory initiatives could adversely affect Trustmark’s business and results of operations, including indirectly through impact to its customers. Companies are facing increased scrutiny from customers, regulators and other stakeholders with respect to their ESG practices and disclosures.
Expectations around Environmental, Social and Governance (ESG) practices as well as climate change and related regulatory initiatives could adversely affect Trustmark’s business and results of operations, including indirectly through impact to its customers. Stakeholders' expectations regarding ESG practices, as well as climate-related legislative and regulatory initiatives, continue to evolve.
To mitigate such risk, Trustmark maintains available lines of credit with the Federal Reserve Bank of Atlanta (FRBA) and the FHLB of Dallas that are secured by loans and investment securities. Management continuously monitors Trustmark’s liquidity position for compliance with internal policies.
To mitigate such risk, Trustmark maintains available lines of credit with the FRBA and the FHLB of Dallas that are secured by loans and investment securities. Management continuously monitors Trustmark’s liquidity position for compliance with internal policies. External and Market-Related Risks Trustmark’s business may be adversely affected by conditions in the financial markets and economic conditions in general.
There is heightened awareness around liquidity, uninsured deposits, deposit composition, unrecognized investment losses and capital. It is difficult to predict the extent to which these challenging economic conditions will persist or whether recent progress in the economic recovery will instead shift to the potential for further decline.
It is difficult to predict the extent to which these conditions will persist or whether recent progress in the economic recovery will instead shift to the potential for further decline.
Moreover, if the United States economy returns to a recessionary state, Management expects that it could severely affect economic conditions in Trustmark’s market areas and that Trustmark could experience significantly higher delinquencies and credit losses.
If trends in the housing and real estate markets were to decline appreciably, Trustmark may experience higher than normal delinquencies and credit losses. Moreover, if the United States economy were to enter into a recession, Management expects that this scenario could severely affect economic conditions in Trustmark’s market areas and that Trustmark could experience significantly higher delinquencies and credit losses.
It is not possible to predict the pace and magnitude of changes to interest rates, or the impact rate changes will have on Trustmark’s results of operations. Trustmark does not assume that current uncertain conditions in the economy will improve significantly in the near future. A weakened economy could affect Trustmark in a variety of substantial and unpredictable ways.
It is not possible to predict the timing or magnitude of changes to policies by the current United States presidential administration, if any, or the impact any such policy changes could have on Trustmark's customer base, credit quality or results of operations. Trustmark does not assume that current uncertain conditions in the economy will improve significantly in the near future.
Because of the complexities presented by current economic conditions, Management will continue to be challenged in identifying alternative sources of revenue, prudently diversifying assets, liabilities and revenue and effectively managing the costs of compliance. Market interest rates remained elevated until September 2024, at which time interest rates began to decline.
Because of the complexities presented by current economic conditions, Management will continue to be challenged in identifying alternative sources of revenue, prudently diversifying assets, liabilities and revenue and effectively managing the costs of compliance. Trustmark is intently monitoring the impact of tariffs and other administrative policies on its customer base, interest rates and credit-related issues.
New government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence and disclosure. In addition to regulatory and investor expectations on environmental matters in general, the current and anticipated effects of climate change are creating an increasing level of concern for the state of the global environment.
New government regulations (including at the state level) could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence and disclosure. Consumers and businesses also may change their behavior on their own as a result of these concerns.
While rate cuts potentially reduce those competitive pressures, they increase pressure on Trustmark's net interest margin, a key component to its financial results. It is not possible to predict the pace and magnitude of changes in interest rates, or the impact rate changes will have on Trustmark's results of operations.
It is not possible to predict the direction, pace or magnitude of further changes, if any, in interest rates, or the impact any such rate changes will have on Trustmark's results of operations. Financial simulation models are the primary tools used by Trustmark to measure interest rate exposure.
The FRB maintained the target federal funds rate at a range of 5.25% to 5.50% from July 2023 through September 2024.
For most of 2025, the FRB left the target federal funds rate unchanged at a range of 4.25% to 4.50% and maintained the rate it pays on reserves at 4.40%.
Trustmark cannot predict what the ultimate impact of the transition from LIBOR will be; however, Trustmark has implemented various measures to manage the transition and mitigate risks. Credit and Lending Risks Trustmark is subject to lending risk, which could impact the adequacy of the allowance for credit losses and results of operations.
Trustmark makes use of both on- and off-balance sheet financial instruments to mitigate exposure to interest rate risk. 17 Credit and Lending Risks Trustmark is subject to lending risk, which could impact the adequacy of the allowance for credit losses and results of operations. There are inherent risks associated with Trustmark’s lending activities.
In September 2024, the FRB began lowering the target federal funds rate making multiple decreases during the fourth quarter of 2024 to a range of 4.25% to 4.50% as of December 2024, based on its confidence that inflation was moving substantially toward 2.00% and that the risks to achieving the FRB's employment and inflation goals were roughly balanced.
As a result, the FRB decreased the target federal funds rate and the rate it pays on reserves multiple times during the fourth quarter of 2025, lowering the target federal funds rate to a range of 3.50% to 3.75% and the rate it pays on reserves to 3.65% as of December 2025.
Removed
In addition, the FRB maintained the rate it paid on reserves at 5.40% from July 2023 through September 2024. In September 2024, the FRB made the first of multiple declines in the rate it pays on reserves, lowering the rate to 4.40% as of December 2024. Prior period rate increases increased the competitive pressures on the deposit cost of funds.
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However, beginning with the 16 September 2025 meeting of the FRB's Federal Open Market Committee, the FRB noted increases in unemployment and inflation shifting the balance of risks to achieving its goals.
Removed
Trustmark makes use of both on- and off-balance sheet financial instruments to mitigate exposure to interest rate risk. Trustmark may be adversely affected by the transition from the London Interbank Offered Rate (LIBOR) as a reference rate.
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Economic activity improved slightly during 2025, but was characterized by mixed signals, notably, strong equity market performance, continued consumer spending and FRB rate cuts, but also a softening labor market and persistent inflationary pressures, driven partly by new tariffs.
Removed
In 2017, the United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced that after the end of 2021 it would no longer compel banks to submit the rates required to calculate LIBOR. On March 5, 2021, the FCA confirmed that the publication of most LIBOR term rates would end on June 30, 2023 (excluding one-week U.S.
Added
United States stocks performed strongly during the second half of 2025, supported by optimistic sentiment around lower interest rates, better-than-expected corporate earnings and strong performance in the technology and AI sectors.
Removed
LIBOR and two-month U.S. LIBOR, the publication of which ended on December 31, 2021).
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Economic uncertainty or disruptions in the marketplace as a result of such policies could reduce loan demand or increase loan nonperformance.
Removed
The Alternative Reference Rates Committee (ARRC), a committee of U.S. financial market participants, identified the Secured Overnight Financing Rate (SOFR) as the reference rate that represents best practice as the alternative to LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. However, there are conceptual and technical differences between LIBOR and SOFR.
Added
A weakened economy could affect Trustmark in a variety of substantial and unpredictable ways.
Removed
The federal banking agencies encouraged banking organizations to cease entering into new contracts that use US$ LIBOR as a reference rate by no later than December 31, 2021, and to ensure existing contracts have robust fallback language that includes a clearly defined alternative reference rate.
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While the banking industry has stabilized since the disruptions associated with bank failures in Spring 2023, there remains heightened awareness around liquidity, uninsured deposits, deposit composition, unrecognized investment losses and capital among counterparties, customers and regulators.
Removed
On December 16, 2022, the FRB adopted a final rule that implemented the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023.
Added
Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 326, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ,” requires Trustmark to recognize all expected credit losses over the life of a loan based on historical experience, current conditions and reasonable and supportable forecasts.
Removed
Following the LIBOR 18 cessation date of June 30, 2023, the nationwide process for replacing LIBOR in financial contracts that mature thereafter and that do not provide for an effective means to replace LIBOR upon its cessation took effect pursuant to the Adjustable Interest Rate (LIBOR) Act.
Added
Trustmark's ability to declare and pay dividends is subject to restriction by various laws and regulations and other factors. Trustmark is a separate and distinct legal entity from TB, and receives substantially all of its cash stream from dividends from TB.
Removed
For contracts in which a party has the discretion to identify a replacement rate, the Adjustable Interest Rate (LIBOR) Act also provides a safe harbor to parties if they choose the SOFR-based benchmark replacement rate to be identified by the FRB.
Added
These dividends are the principal source of funds to pay dividends on Trustmark's common stock and interest on its debt. Various federal and state laws and regulations limit the amount of dividends that TB may pay to Trustmark.
Removed
Trustmark transitioned to SOFR for new variable rate loans, derivative contracts, borrowings and other financial instruments as of January 1, 2022. Trustmark had a significant number of loans, derivative contracts, borrowings and other financial instruments with attributes that were either directly or indirectly dependent on LIBOR. As of December 31, 2024, all of Trustmark’s LIBOR exposure was remediated.
Added
In the event TB is unable to declare dividends, or is limited in the amount of any dividend it may be able to declare, Trustmark may not be able to declare dividends on its common stock or meet other financial obligations.
Removed
The transition from LIBOR has resulted in and could continue to result in added costs and employee efforts and could present additional risk. Since alternative reference rates are calculated differently than LIBOR, payments under contracts referencing new alternative reference rates will differ from those referencing LIBOR.
Added
Any inability to receive dividends from TB could have a material adverse effect on Trustmark's business, financial condition and results of operations. The information under the section captioned “Supervision and Regulation” included in Part I. Item 1. – Business in this report provides further discussion about the restrictions governing TB’s ability to transfer funds to Trustmark.
Removed
There are inherent risks associated with Trustmark’s lending activities. If trends in the housing and real estate markets were to revert to or decline below recession levels, Trustmark may experience higher than normal delinquencies and credit losses.
Added
There could be sudden increases in customer transaction volume; electrical, telecommunications or other major physical infrastructure outages; natural disasters; and events arising from local or larger scale political or social matters, including terrorist acts.
Removed
External and Market-Related Risks Trustmark’s business may be adversely affected by conditions in the financial markets and economic conditions in general.
Removed
The rising interest rate environment during 2022 and 2023, the resulting industry-wide reduction in the fair value of securities portfolios and the bank runs that led to the failures of some financial institutions in March 2023, among other events, resulted in a state of volatility and uncertainty with respect to the health of the United States banking system.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThese reports to the Board and its Committees address the threat environment, vulnerability assessments, specific cyber incidents and management’s efforts to monitor, detect and prevent cyber threats. 28 Trustmark’s information security program is primarily administered at the management level by the Information Security Department, which is led by Trustmark’s Chief Information Security Officer (CISO), and is supported by the Information Technology Department, which is led by Trustmark’s Chief Information Officer (CIO).
Biggest changeTrustmark’s information security program is primarily administered at the management level by the Information Security Department, which is led by Trustmark’s Chief Information Security Officer (CISO), and is supported by the Information Technology Department, which is led by Trustmark’s Chief Information Officer (CIO). The CISO reports to the CIO, who in turn reports to Trustmark’s Chief Credit and Operations Officer.
The CISO reports to the CIO, who in turn reports to Trustmark’s Chief Credit and Operations Officer. Trustmark’s Information Security Department is responsible for day-to-day management of Trustmark’s information security program, including data loss prevention, access control, threat monitoring, incident response, insider threat monitoring and employee education and training.
Trustmark’s Information Security Department is responsible for day-to-day management of Trustmark’s 27 information security program, including data loss prevention, access control, threat monitoring, incident response, insider threat monitoring and employee education and training. The Information Security Department also maintains policies related to cybersecurity and data security that provide the required governance for the information security program.
Each policy is reviewed and approved by the Enterprise Risk Committee at least every three years and is mapped to applicable regulatory guidance. The Cybersecurity Operations team within the Information Technology Department maintains and runs Trustmark’s security operations center and is responsible for cybersecurity event management and maintaining security tooling.
The Cybersecurity Operations team within the Information Technology Department maintains and runs Trustmark’s security operations center and is responsible for cybersecurity event management and maintaining security tooling.
Management provides periodic reports to the Enterprise Risk Committee and the Audit Committee, both of which provide reports of their meetings to the full Board.
Management provides periodic reports to the Enterprise Risk Committee and the Audit Committee, both of which provide reports of their meetings to the full Board. These reports to the Board and its Committees address the threat environment, vulnerability assessments, specific cyber incidents and management’s efforts to monitor, detect and prevent cyber threats.
The Information Security Department also maintains policies related to cybersecurity and data security that provide the required governance for the information security program. Additionally, Trustmark’s Information Technology Department maintains policies that govern technical aspects of Trustmark’s information security program.
Additionally, Trustmark’s Information Technology Department maintains policies that govern technical aspects of Trustmark’s information security program. Each policy is reviewed and approved by the Enterprise Risk Committee in accordance with Trustmark's Policy Framework and is mapped to applicable regulatory guidance.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAt December 31, 2024, Trustmark, through TNB, operated 163 full-service branches, 7 limited-service branches and an automated teller machine (ATM) network, which included 122 ATMs and 136 ITMs at its branches and other locations. In addition, Trustmark operated 8 offices in various locations providing mortgage banking, wealth management and/or corporate lending services.
Biggest changeAt December 31, 2025, Trustmark, through TB, operated 160 full-service branches, 7 limited-service branches and an automated teller machine (ATM) network, which included 116 ATMs and 138 ITMs at its branches and other locations. In addition, Trustmark operated 8 offices in various locations providing mortgage banking, wealth management and/or corporate lending services.
ITEM 2. PR OPERTIES Trustmark’s principal offices are housed in its main office building located in downtown Jackson, Mississippi and owned by TNB. Trustmark’s main office building is primarily allocated for bank use with a small portion available for occupancy by tenants on a lease basis, although such incidental leasing activity is not material to Trustmark’s operations.
ITEM 2. PR OPERTIES Trustmark’s principal offices are housed in its main office building located in downtown Jackson, Mississippi and owned by TB. Trustmark’s main office building is primarily allocated for bank use with a small portion available for occupancy by tenants on a lease basis, although such incidental leasing activity is not material to Trustmark’s operations.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeManagement currently believes, 29 however, based upon the advice of legal counsel and Management’s evaluation and after taking into account its current insurance coverage, that the legal proceedings currently pending should not have a material adverse effect on Trustmark’s consolidated financial condition. ITEM 4. MINE SAF ETY DISCLOSURES Not applicable. PART II
Biggest changeManagement currently believes, however, based upon the advice of legal counsel and Management’s evaluation and after taking into account its current insurance coverage, that the legal proceedings currently pending should not have a material adverse effect on Trustmark’s consolidated financial condition. 28 ITEM 4. MINE SAF ETY DISCLOSURES Not applicable. PART II
ITEM 3. LEGAL PROCEEDINGS Information required in this section is set forth under the heading “Legal Proceedings” of Note 17 – Commitments and Contingencies in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
ITEM 3. LEGAL PROCEEDINGS Information required in this section is set forth under the heading “Legal Proceedings” of Note 16 – Commitments and Contingencies in Part II. Item 8. – Financial Statements and Supplementary Data of this report.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 30 PART II Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. Selected Financial Data 31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 33 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 29 PART II Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. Selected Financial Data 30 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeStock Repurchase Program On December 7, 2021, the Board of Directors of Trustmark authorized a stock repurchase program, effective January 1, 2022, under which $100.0 million of Trustmark’s outstanding common stock could be acquired through December 31, 2022. Under this authority, Trustmark repurchased approximately 789 thousand shares of its common stock value at $24.6 million during 2022.
Biggest changeOn December 3, 2024, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2025, under which $100.0 million of Trustmark’s outstanding shares could be acquired through December 31, 2025. Under this authority, Trustmark repurchased 2.2 million shares of its common stock valued at $80.0 million during the twelve months ended December 31, 2025.
On December 6, 2022, the Board of Directors of Trustmark authorized a stock repurchase program, effective January 1, 2023, under which $50.0 million of Trustmark's outstanding common stock could be acquired through December 31, 2023. No shares were repurchased under this authority.
Stock Repurchase Program On December 6, 2022, the Board of Directors of Trustmark authorized a stock repurchase program, effective January 1, 2023, under which $50.0 million of Trustmark's outstanding common stock could be acquired through December 31, 2023. No shares were repurchased under this authority.
On December 5, 2023, the Board of Directors of Trustmark authorized a stock repurchase program, effective January 1, 2024, under which $50.0 million of Trustmark's outstanding common stock could be acquired through December 31, 2024. Under this authority, Trustmark repurchased approximately 203 thousand shares of its common stock valued at $7.5 million during the twelve months ended December 31, 2024.
On December 5, 2023, the Board of Directors of Trustmark authorized a stock repurchase program, effective January 1, 2024, under which $50.0 million of Trustmark's outstanding common stock could be acquired through December 31, 2024. Under this authority, Trustmark repurchased 203 thousand shares of its common stock valued at $7.5 million during the twelve months ended December 31, 2024.
This presentation assumes that $100 was invested in shares of the relevant issuers on December 31, 2019, and that dividends received were immediately invested in additional shares. The graph plots the value of the initial $100 investment at one-year intervals for the fiscal years shown.
This presentation assumes that $100 was invested in shares of the relevant issuers on December 31, 2020, and that dividends received were immediately invested in additional shares. The graph plots the value of the initial $100 investment at one-year intervals for the fiscal years shown.
ITEM 5. MARKET FOR THE REGISTRANT’S COMM ON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Prices and Dividends Trustmark’s common stock is listed on the Nasdaq Stock Market and is traded under the symbol “TRMK.” Trustmark paid quarterly cash dividends to shareholders of $0.23 per share, or $0.92 per share annually, in 2024.
ITEM 5. MARKET FOR THE REGISTRANT’S COMM ON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Prices and Dividends Trustmark’s common stock is listed on the Nasdaq Stock Market and is traded under the symbol “TRMK.” Trustmark paid quarterly cash dividends to shareholders of $0.24 per share, or $0.96 per share annually, in 2025.
At January 31, 2025, there were approximately 2,784 registered shareholders of record and approximately 22,642 beneficial account holders of shares in nominee name of Trustmark’s common stock. Other information required by this item can be found in Note 18 - Shareholders’ Equity included in Part II. Item 8. - Financial Statements and Supplementary Data of this report.
At January 31, 2026, there were approximately 2,767 registered shareholders of record and approximately 30,248 beneficial account holders of shares in nominee name of Trustmark’s common stock. Other information required by this item can be found in Note 17 – Shareholders’ Equity included in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
The following table sets forth information regarding purchases of shares of Trustmark common stock by Trustmark or on Trustmark’s behalf during the three months ended December 31, 2024 (amounts in thousands, except share and per share data): Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan at the End of the Period October 1, 2024 to October 31, 2024 50,831 $ 34.98 50,831 $ 48,222 November 1, 2024 to November 30, 2024 124,207 37.35 124,207 43,583 December 1, 2024 to December 31, 2024 28,115 38.46 28,115 — Total 203,153 203,153 On December 3, 2024, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2025, under which $100.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2025.
The following table sets forth information regarding purchases of shares of Trustmark common stock by Trustmark or on Trustmark’s behalf during the three months ended December 31, 2025 (amounts in thousands, except share and per share data): Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan at the End of the Period October 1, 2025 to October 31, 2025 168,121 $ 38.24 168,121 $ 56,513 November 1, 2025 to November 30, 2025 94,703 37.23 94,703 52,987 December 1, 2025 to December 31, 2025 851,129 38.80 851,129 — Total 1,113,953 1,113,953 On December 2, 2025, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2026, under which $100.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2026.
Under this authority, Trustmark repurchased approximately 243 thousand shares of its common stock valued at $8.5 million during January 2025. 30 Performance Graph The following graph compares Trustmark’s annual percentage change in cumulative total return on common shares over the past five years with the cumulative total return of companies comprising the Nasdaq market value index and the S&P 500 – Regional Banks index.
Performance Graph 29 The following graph compares Trustmark’s annual percentage change in cumulative total return on common shares over the past five years with the cumulative total return of companies comprising the Nasdaq market value index and the S&P 500 – Regional Banks index.
The repurchase program, which is subject to market conditions and management discretion, will be implemented through open market repurchases or privately negotiated transactions.
The repurchase program, which is subject to market conditions and management discretion, will be implemented through open market repurchases or privately negotiated transactions. Under this authority, Trustmark repurchased 163 thousand shares of its common stock valued at $6.5 million during January 2026.
Company 2019 2020 2021 2022 2023 2024 Trustmark $ 100.00 $ 82.09 $ 100.46 $ 111.18 $ 92.28 $ 120.51 NASDAQ Composite-Total Return 100.00 144.92 177.06 119.45 172.77 223.87 S&P 500 - Regional Banks 100.00 95.47 134.16 99.93 78.33 102.05 Prepared by Zacks Investment Research, Inc. Used with permission. All rights reserved. Copyright 1980-2025. Index Data: Copyright NASDAQ OMX, Inc.
Company 2020 2021 2022 2023 2024 2025 Trustmark $ 100.00 $ 122.37 $ 135.43 $ 112.40 $ 146.80 $ 165.82 NASDAQ Composite-Total Return 100.00 122.18 82.43 119.22 154.48 187.14 S&P 500 - Regional Banks 100.00 140.54 104.67 82.05 106.90 126.79 Prepared by Zacks Investment Research, Inc. Used with permission. All rights reserved. Copyright 1980-2026. Index Data: Copyright NASDAQ OMX, Inc.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeItem 8. – Financial Statements and Supplementary Data of this report. 31 Years Ended December 31, 2024 2023 2022 Consolidated Statements of Income (Loss) Total interest income $ 960,330 $ 878,832 $ 541,833 Total interest expense 375,909 325,954 47,125 Net interest income 584,421 552,878 494,708 Provision for credit losses (PCL), LHFI 37,287 27,362 21,677 PCL, LHFI sale of 1-4 family mortgage loans 8,633 — — PCL, off-balance sheet credit exposures (4,665 ) (2,781 ) 1,215 Noninterest income (loss) (23,419 ) 148,433 151,422 Noninterest expense 485,690 495,696 564,133 Income (loss) from continuing operations before income taxes 34,057 181,034 59,105 Income taxes from continuing operations (11,153 ) 27,744 (1,813 ) Income (loss) from continuing operations 45,210 153,290 60,918 Income from discontinued operations before income taxes 237,152 16,302 14,642 Income taxes from discontinued operations 59,353 4,103 3,673 Income from discontinued operations 177,799 12,199 10,969 Net Income $ 223,009 $ 165,489 $ 71,887 Total Revenue (1) $ 561,002 $ 701,311 $ 646,130 Per Share Data (2) Basic earnings (loss) per share (EPS) from continuing operations $ 0.74 $ 2.51 $ 0.99 Basic EPS from discontinued operations $ 2.91 $ 0.20 $ 0.18 Basic EPS - total $ 3.65 $ 2.71 $ 1.17 Diluted EPS from continuing operations $ 0.74 $ 2.50 $ 0.99 Diluted EPS from discontinued operations $ 2.90 $ 0.20 $ 0.18 Diluted EPS - total $ 3.63 $ 2.70 $ 1.17 Cash dividends per share $ 0.92 $ 0.92 $ 0.92 Performance Ratios Return on average equity 12.22 % 10.54 % 4.48 % Return on average equity from continuing operations 2.48 % 9.76 % 3.80 % Return on average tangible equity 15.20 % 14.04 % 6.00 % Return on average tangible equity from continuing operations 3.04 % 12.43 % 4.86 % Return on average assets 1.20 % 0.89 % 0.41 % Return on average assets from continuing operations 0.24 % 0.82 % 0.35 % Average equity / average assets 9.84 % 8.41 % 9.18 % Net interest margin (fully taxable equivalent) 3.51 % 3.32 % 3.17 % Dividend payout ratio 25.21 % 33.95 % 78.63 % Dividend payout ratio from continuing operations 124.32 % 36.65 % 92.93 % Credit Quality Ratios Net charge-offs (recoveries) (excl sale of 1-4 family mortgage loans) / average loans 0.12 % 0.06 % 0.01 % PCL, LHFI (excl PCL, LHFI sale of 1-4 family mortgage loans) / average loans 0.28 % 0.21 % 0.19 % Nonaccrual LHFI / (LHFI + LHFS) 0.60 % 0.76 % 0.53 % Nonperforming assets / (LHFI + LHFS) plus other real estate 0.65 % 0.81 % 0.55 % Allowance for credit losses (ACL), LHFI / LHFI 1.22 % 1.08 % 0.99 % (1) Consistent with Trustmark’s audited financial statements, total revenue is defined as net interest income plus noninterest income (loss).
Biggest changeItem 8. – Financial Statements and Supplementary Data of this report. 30 Years Ended December 31, 2025 2024 2023 Consolidated Statements of Income (Loss) Total interest income $ 948,622 $ 960,330 $ 878,832 Total interest expense 312,484 375,909 325,954 Net interest income 636,138 584,421 552,878 Provision for credit losses (PCL), LHFI 14,311 37,287 27,362 PCL, LHFI sale of 1-4 family mortgage loans — 8,633 — PCL, off-balance sheet credit exposures (1,441 ) (4,665 ) (2,781 ) Noninterest income (loss) 163,640 (23,419 ) 148,433 Noninterest expense 512,230 485,690 495,696 Income (loss) from continuing operations before income taxes 274,678 34,057 181,034 Income taxes from continuing operations 50,543 (11,153 ) 27,744 Income (loss) from continuing operations 224,135 45,210 153,290 Income from discontinued operations before income taxes — 237,152 16,302 Income taxes from discontinued operations — 59,353 4,103 Income from discontinued operations — 177,799 12,199 Net Income $ 224,135 $ 223,009 $ 165,489 Revenue (1) $ 799,778 $ 561,002 $ 701,311 Per Share Data (2) Basic earnings (loss) per share (EPS) from continuing operations $ 3.72 $ 0.74 $ 2.51 Basic EPS from discontinued operations $ — $ 2.91 $ 0.20 Basic EPS - total $ 3.72 $ 3.65 $ 2.71 Diluted EPS from continuing operations $ 3.70 $ 0.74 $ 2.50 Diluted EPS from discontinued operations $ — $ 2.90 $ 0.20 Diluted EPS - total $ 3.70 $ 3.63 $ 2.70 Cash dividends per share $ 0.96 $ 0.92 $ 0.92 Performance Ratios Return on average equity 10.86 % 12.22 % 10.54 % Return on average equity from continuing operations 10.86 % 2.48 % 9.76 % Return on average tangible equity 12.97 % 15.20 % 14.04 % Return on average tangible equity from continuing operations 12.97 % 3.04 % 12.43 % Return on average assets 1.21 % 1.20 % 0.89 % Return on average assets from continuing operations 1.21 % 0.24 % 0.82 % Average equity / average assets 11.16 % 9.84 % 8.41 % Net interest margin (fully taxable equivalent) 3.80 % 3.51 % 3.32 % Dividend payout ratio 25.81 % 25.21 % 33.95 % Dividend payout ratio from continuing operations 25.81 % 124.32 % 36.65 % Credit Quality Ratios Net charge-offs (recoveries) (excl sale of 1-4 family mortgage loans) / average loans 0.13 % 0.12 % 0.06 % PCL, LHFI (excl PCL, LHFI sale of 1-4 family mortgage loans) / average loans 0.11 % 0.28 % 0.21 % Nonaccrual LHFI / (LHFI + LHFS) 0.60 % 0.60 % 0.76 % Nonperforming assets / (LHFI + LHFS) plus other real estate 0.65 % 0.65 % 0.81 % Allowance for credit losses (ACL), LHFI / LHFI 1.15 % 1.22 % 1.08 % (1) Revenue is defined as net interest income plus noninterest income (loss).
As such, financial results presented in the table below for the years ended December 31, 2024, 2023 and 2022, consist of both continuing and discontinued operations. The discontinued operations include the financial results of FBBI prior to the sale as well as the net gain on the sale.
As such, financial results presented in the table below for the years ended December 31, 2024 and 2023, consist of both continuing and discontinued operations. The discontinued operations include the financial results of FBBI prior to the sale as well as the net gain on the sale.
Item 7. - Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8. – Financial Statements and Supplementary Data. Trustmark completed the sale of Fisher Brown Bottrell Insurance, Inc., (FBBI), a wholly owned subsidiary of TNB, during the second quarter of 2024.
Item 7. – Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8. – Financial Statements and Supplementary Data. Trustmark completed the sale of Fisher Brown Bottrell Insurance, Inc., (FBBI), a wholly owned subsidiary of TB, during the second quarter of 2024.
ITEM 6. SELECTED FINANCIAL DATA The following unaudited consolidated financial data is derived from Trustmark’s audited financial statements as of and for the three years ended December 31, 2024 ($ in thousands, except per share data). The data should be read in conjunction with Part II.
ITEM 6. SELECTED FINANCIAL DATA The following unaudited consolidated financial data is derived from Trustmark’s audited financial statements as of and for each year in the three year period ended December 31, 2025 ($ in thousands, except per share data). The data should be read in conjunction with Part II.
(2) Due to rounding, EPS from continuing operations and discontinued operations may not sum to EPS from net income. 32 December 31, 2024 2023 2022 Consolidated Balance Sheets Total assets $ 18,152,422 $ 18,722,189 $ 18,015,478 Securities 3,027,919 3,189,157 3,518,596 Total loans (LHFI + LHFS) 13,290,249 13,135,336 12,339,265 Deposits 15,108,175 15,569,763 14,437,648 Total shareholders' equity 1,962,327 1,661,847 1,492,268 Stock Performance Market value - close $ 35.37 $ 27.88 $ 34.91 Book value 32.17 27.21 24.47 Tangible book value 26.68 20.87 18.11 Capital Ratios Total equity / total assets 10.81 % 8.88 % 8.28 % Tangible equity / tangible assets 9.13 % 7.22 % 6.54 % Tangible equity / risk-weighted assets 10.86 % 8.76 % 7.97 % Tier 1 leverage ratio 9.99 % 8.62 % 8.47 % Common equity tier 1 risk-based capital ratio 11.54 % 10.04 % 9.74 % Tier 1 risk-based capital ratio 11.94 % 10.44 % 10.15 % Total risk-based capital ratio 13.97 % 12.29 % 11.91 %
(2) Due to rounding, EPS from continuing operations and discontinued operations may not sum to EPS from net income. 31 December 31, 2025 2024 2023 Consolidated Balance Sheets Total assets $ 18,925,211 $ 18,152,422 $ 18,722,189 Securities 3,084,284 3,027,919 3,189,157 Total loans (LHFI + LHFS) 13,953,022 13,290,249 13,135,336 Deposits 15,499,784 15,108,175 15,569,763 Total shareholders' equity 2,121,677 1,962,327 1,661,847 Stock Performance Market value - close $ 38.95 $ 35.37 $ 27.88 Book value 35.95 32.17 27.21 Tangible book value 30.28 26.68 20.87 Capital Ratios Total equity / total assets 11.21 % 10.81 % 8.88 % Tangible equity / tangible assets 9.61 % 9.13 % 7.22 % Tangible equity / risk-weighted assets 11.54 % 10.86 % 8.76 % Tier 1 leverage ratio 10.18 % 9.99 % 8.62 % Common equity tier 1 risk-based capital ratio 11.72 % 11.54 % 10.04 % Tier 1 risk-based capital ratio 12.11 % 11.94 % 10.44 % Total risk-based capital ratio 14.41 % 13.97 % 12.29 %

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeOther interest expense decreased $33.2 million, or 55.7%, while the rate on other borrowings decreased to 4.60% compared to 5.09%, when 2024 is compared to 2023, principally due to a decrease in the amount of short-term FHLB advances obtained from the FHLB of Dallas during the year. 43 The following table provides the tax equivalent basis yield or rate for each component of the tax equivalent net interest margin for the periods presented ($ in thousands): Years Ended December 31, 2024 2023 2022 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets Interest-earning assets: Securities available for sale: Taxable $ 1,789,685 $ 55,932 3.13 % $ 2,090,201 $ 35,359 1.69 % $ 2,932,054 $ 38,799 1.32 % Nontaxable — — — 4,657 182 3.91 % 4,997 195 3.90 % Securities held to maturity: Taxable 1,388,531 29,989 2.16 % 1,454,450 30,741 2.11 % 911,010 20,918 2.30 % Nontaxable 112 5 4.46 % 1,854 81 4.37 % 5,623 227 4.04 % PPP loans — — — — — — 14,868 639 4.30 % Loans (LHFS and LHFI) 13,283,829 857,307 6.45 % 12,801,531 788,719 6.16 % 11,236,388 485,246 4.32 % Other earning assets 548,336 29,667 5.41 % 729,673 37,215 5.10 % 909,167 8,154 0.90 % Total interest-earning assets 17,010,493 972,900 5.72 % 17,082,366 892,297 5.22 % 16,014,107 554,178 3.46 % Other assets 1,685,971 1,718,058 1,567,921 Allowance for credit losses (148,564 ) (125,942 ) (104,138 ) Total Assets $ 18,547,900 $ 18,674,482 $ 17,477,890 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 5,348,043 148,888 2.78 % $ 4,871,977 121,138 2.49 % $ 4,585,955 16,409 0.36 % Savings deposits 3,506,829 30,121 0.86 % 3,838,791 28,605 0.75 % 4,579,742 9,654 0.21 % Time deposits 3,331,543 150,372 4.51 % 2,691,682 96,208 3.57 % 1,153,983 3,006 0.26 % Federal funds purchased and securities sold under repurchase agreements 398,884 20,154 5.05 % 410,945 20,419 4.97 % 283,328 6,127 2.16 % Other borrowings 388,266 17,146 4.42 % 984,315 50,441 5.12 % 198,672 4,963 2.50 % Subordinated notes 123,584 4,751 3.84 % 123,364 4,751 3.85 % 123,144 4,751 3.86 % Junior subordinated debt securities 61,856 4,477 7.24 % 61,856 4,392 7.10 % 61,856 2,215 3.58 % Total interest-bearing liabilities 13,159,005 375,909 2.86 % 12,982,930 325,954 2.51 % 10,986,680 47,125 0.43 % Noninterest-bearing demand deposits 3,179,641 3,532,134 4,452,046 Other liabilities 383,627 589,320 434,310 Shareholders' equity 1,825,627 1,570,098 1,604,854 Total Liabilities and Shareholders' Equity $ 18,547,900 $ 18,674,482 $ 17,477,890 Net Interest Margin 596,991 3.51 % 566,343 3.32 % 507,053 3.17 % Less tax equivalent adjustments: Investments 1 55 89 Loans 12,569 13,410 12,256 Net Interest Margin per Consolidated Statements of Income $ 584,421 $ 552,878 $ 494,708 44 The table below shows the change from year to year for each component of the tax equivalent net interest margin in the amount generated by volume changes and the amount generated by changes in the yield or rate (tax equivalent basis) for the periods presented ($ in thousands): 2024 Compared to 2023 2023 Compared to 2022 Increase (Decrease) Due To: Increase (Decrease) Due To: Yield/ Yield/ Volume Rate Net Volume Rate Net Interest earned on: Securities available for sale: Taxable $ (5,721 ) $ 26,294 $ 20,573 $ (12,720 ) $ 9,280 $ (3,440 ) Nontaxable (91 ) (91 ) (182 ) (13 ) — (13 ) Securities held to maturity: Taxable (1,449 ) 697 (752 ) 11,669 (1,846 ) 9,823 Nontaxable (78 ) 2 (76 ) (164 ) 18 (146 ) PPP loans — — — (319 ) (320 ) (639 ) Loans, net of unearned income (LHFS and LHFI) 30,490 38,098 68,588 74,788 228,685 303,473 Other earning assets (9,700 ) 2,152 (7,548 ) (1,910 ) 30,971 29,061 Total interest-earning assets 13,451 67,152 80,603 71,331 266,788 338,119 Interest paid on: Interest-bearing demand deposits 12,660 15,090 27,750 1,093 103,636 104,729 Savings deposits (2,570 ) 4,086 1,516 (1,806 ) 20,757 18,951 Time deposits 25,699 28,465 54,164 8,831 84,371 93,202 Federal funds purchased and securities sold under repurchase agreements (596 ) 331 (265 ) 3,676 10,616 14,292 Other borrowings (27,163 ) (6,132 ) (33,295 ) 35,951 9,527 45,478 Subordinated notes 10 (10 ) — 10 (10 ) — Junior subordinated debt securities — 85 85 — 2,177 2,177 Total interest-bearing liabilities 8,040 41,915 49,955 47,755 231,074 278,829 Change in net interest income on a tax equivalent basis $ 5,411 $ 25,237 $ 30,648 $ 23,576 $ 35,714 $ 59,290 The change in interest due to both volume and yield or rate has been allocated to change due to volume and change due to yield or rate in proportion to the absolute value of the change in each.
Biggest changeSee the section captioned "Subordinated Notes" for additional information regarding changes in the subordinated notes. 42 The following table provides the tax equivalent basis yield or rate for each component of the tax equivalent net interest margin for the periods presented ($ in thousands): Years Ended December 31, 2025 2024 2023 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets Interest-earning assets: Securities available for sale: Taxable $ 1,757,402 $ 78,004 4.44 % $ 1,789,685 $ 55,932 3.13 % $ 2,090,201 $ 35,359 1.69 % Nontaxable — — — — — — 4,657 182 3.91 % Securities held to maturity: Taxable 1,285,795 27,533 2.14 % 1,388,531 29,989 2.16 % 1,454,450 30,741 2.11 % Nontaxable — — — 112 5 4.46 % 1,854 81 4.37 % Loans (LHFS and LHFI) 13,608,688 837,358 6.15 % 13,283,829 857,307 6.45 % 12,801,531 788,719 6.16 % Other earning assets 384,775 16,780 4.36 % 548,336 29,667 5.41 % 729,673 37,215 5.10 % Total interest-earning assets 17,036,660 959,675 5.63 % 17,010,493 972,900 5.72 % 17,082,366 892,297 5.22 % Other assets 1,616,700 1,685,971 1,718,058 Allowance for credit losses (163,826 ) (148,564 ) (125,942 ) Total Assets $ 18,489,534 $ 18,547,900 $ 18,674,482 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits (1) $ 7,805,426 146,053 1.87 % $ 7,838,499 178,470 2.28 % $ 7,565,894 149,142 1.97 % Savings deposits (1) 980,744 512 0.05 % 1,016,373 539 0.05 % 1,144,874 601 0.05 % Time deposits 3,341,039 128,091 3.83 % 3,331,543 150,372 4.51 % 2,691,682 96,208 3.57 % Federal funds purchased and securities sold under repurchase agreements 410,984 17,526 4.26 % 398,884 20,154 5.05 % 410,945 20,419 4.97 % Other borrowings 308,980 9,760 3.16 % 388,266 17,146 4.42 % 984,315 50,441 5.12 % Subordinated notes 133,106 6,647 4.99 % 123,584 4,751 3.84 % 123,364 4,751 3.85 % Junior subordinated debt securities 61,856 3,895 6.30 % 61,856 4,477 7.24 % 61,856 4,392 7.10 % Total interest-bearing liabilities 13,042,135 312,484 2.40 % 13,159,005 375,909 2.86 % 12,982,930 325,954 2.51 % Noninterest-bearing demand deposits 3,152,297 3,179,641 3,532,134 Other liabilities 232,178 383,627 589,320 Shareholders' equity 2,062,924 1,825,627 1,570,098 Total Liabilities and Shareholders' Equity $ 18,489,534 $ 18,547,900 $ 18,674,482 Net Interest Margin 647,191 3.80 % 596,991 3.51 % 566,343 3.32 % Less tax equivalent adjustments: Investments — 1 55 Loans 11,053 12,569 13,410 Net Interest Margin per Consolidated Statements of Income $ 636,138 $ 584,421 $ 552,878 (1) During the first quarter of 2025, Trustmark ceased the daily sweep from low transaction interest-bearing demand deposits to savings deposits.
Mortgage Servicing Rights Trustmark recognizes as assets the rights to service mortgage loans based on the estimated fair value of the MSR when loans are sold and the associated servicing rights are retained. Trustmark has elected to account for the MSR at fair value.
MSR Trustmark recognizes as assets the rights to service mortgage loans based on the estimated fair value of the MSR when loans are sold and the associated servicing rights are retained. Trustmark has elected to account for the MSR at fair value.
When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future.
When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future.
For both qualitative factors, the same assumptions are applied in the unfunded commitment calculation that are used in the funded balance calculation with the only difference being the unfunded commitment calculation includes the funding rates for the unfunded commitments.
For both qualitative factors, the same assumptions are applied in the unfunded commitment calculation that are used in the funded balance calculation with the only difference being the unfunded commitment calculation includes the funding rates for the unfunded commitments.
Recent Legislative and Regulatory Developments For information regarding legislation and regulation applicable to Trustmark, see the section captioned “Supervision and Regulation” included in Part I. Item 1. – Business of this report. Non-GAAP Financial Measures In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy.
Recent Legislative and Regulatory Developments For information regarding legislation and regulation applicable to Trustmark, see the section captioned “Supervision and Regulation” included in Part I. Item 1. – Business of this report. 37 Non-GAAP Financial Measures In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy.
This amount could differ due to changes in interest rates, hedge de-designations or the addition of other hedges. Derivatives Not Designated as Hedging Instruments As part of Trustmark’s risk management strategy in the mortgage banking business, various derivative instruments such as interest rate lock commitments and forward sales contracts are utilized.
This amount could differ due to changes in interest rates, hedge de-designations or the addition of other hedges. 66 Derivatives Not Designated as Hedging Instruments As part of Trustmark’s risk management strategy in the mortgage banking business, various derivative instruments such as interest rate lock commitments and forward sales contracts are utilized.
Trustmark’s effective tax rate continues to be less than the statutory rate primarily due to various tax-exempt income items and its utilization of income tax credit programs. Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis ( i.e. , new market tax credits, low income housing tax credits or historical 49 tax credits).
Trustmark’s effective tax rate continues to be less than the statutory rate primarily due to various tax-exempt income items and its utilization of income tax credit programs. Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis ( i.e. , new market tax credits, low income housing tax credits or historical tax credits).
Trustmark utilizes federal funds purchased, FHLB advances, securities sold under repurchase agreements, the Discount Window and brokered deposits to provide additional liquidity. Access to these additional sources represents Trustmark’s incremental borrowing capacity. Trustmark’s liquidity position is continuously monitored and adjustments are made to manage the balance as deemed appropriate.
Trustmark utilizes federal funds purchased, FHLB advances, securities sold under repurchase 64 agreements, the Discount Window and brokered deposits to provide additional liquidity. Access to these additional sources represents Trustmark’s incremental borrowing capacity. Trustmark’s liquidity position is continuously monitored and adjustments are made to manage the balance as deemed appropriate.
In recent years, there have been significant market-driven fluctuations in loan prepayment speeds and discount rates. These fluctuations can be rapid and may continue 38 to be significant. Therefore, estimating prepayment speeds and/or discount rates within ranges that market participants would use in determining the fair value of the MSR requires significant management judgment.
In recent years, there have been significant market-driven fluctuations in loan prepayment speeds and discount rates. These fluctuations can be rapid and may continue to be significant. Therefore, estimating prepayment speeds and/or discount rates within ranges that market participants would use in determining the fair value of the MSR requires significant management judgment.
The plan provides for retirement and/or death benefits based on a participant’s covered salary or deferred fees. Although plan benefits may be paid from Trustmark’s general assets, Trustmark has purchased life insurance contracts on the participants covered under the plan, which may be used to fund future benefit payments under the plan.
The plan provides for retirement and/or death benefits based on a participant’s covered salary or deferred fees. Although plan benefits may be paid from Trustmark’s general assets, Trustmark has purchased life insurance contracts on the participants covered under the plan, which may be used to fund future benefit payments under 62 the plan.
Derivatives transactions executed as part of this program are not designated as qualifying hedging relationships under GAAP and are, therefore, carried on Trustmark’s financial statements at fair value with the change in fair value recorded as noninterest income in bank card and other fees.
Derivatives transactions executed as part of this program are not designated as qualifying hedging relationships under GAAP and are, therefore, carried on Trustmark’s financial statements at fair value with the change in fair value recorded as noninterest income (loss) in bank card and other fees.
A key objective of the asset/liability management program is to quantify, monitor and manage interest rate risk and to assist Management in maintaining stability in the net interest margin under varying interest rate environments. 66 Derivatives Trustmark uses financial derivatives for management of interest rate risk.
A key objective of the asset/liability management program is to quantify, monitor and manage interest rate risk and to assist Management in maintaining stability in the net interest margin under varying interest rate environments. Derivatives Trustmark uses financial derivatives for management of interest rate risk.
Trustmark's commercial leases are primarily reported in the Georgia market region because these leases are centrally analyzed and approved as part of the Equipment Finance line of business which is located in Atlanta, Georgia.
Trustmark's equipment finance leases are primarily reported in the Georgia market region because these leases are centrally analyzed and approved as part of the Equipment Finance line of business which is located in Atlanta, Georgia.
The expected funding rate is applied to each pool’s unfunded commitment balances to ensure that reserves will be applied to each pool based upon balances expected to be funded based upon historical levels.
The expected funding rate is applied to each pool’s unfunded commitment balances to ensure that reserves will be applied to each pool based upon balances expected 36 to be funded based upon historical levels.
To be categorized in this manner, Trustmark and TNB maintained minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures.
To be categorized in this manner, Trustmark and TB maintained minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures.
In future periods, evaluations of the overall LHFI portfolio, in light of the factors and forecasts then prevailing, 37 may result in significant changes in the ACL and PCL for LHFI.
In future periods, evaluations of the overall LHFI portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and PCL for LHFI.
Trustmark intends to continue to utilize $60.0 million in trust preferred securities issued by the Trust as Tier 1 capital up to the regulatory limit, as permitted by the grandfather provision in the Dodd-Frank Act and the Basel III Final Rule. Refer to the section captioned “Regulatory Capital” included in Note 18 – Shareholders’ Equity in Part II.
Trustmark intends to continue to utilize $60.0 million in trust preferred securities issued by the Trust as Tier 1 capital up to the regulatory limit, as permitted by the grandfather provision in the Dodd-Frank Act and the Basel III Final Rule. Refer to the section captioned “Regulatory Capital” included in Note 17 – Shareholders’ Equity in Part II.
Supplemental Retirement Plans As disclosed in Note 15 – Defined Benefit and Other Postretirement Benefits included in Part II. Item 8. – Financial Statements and Supplementary Data of this report, Trustmark maintains a nonqualified supplemental retirement plan covering key executive officers and senior officers as well as directors who have elected to defer fees.
Supplemental Retirement Plans As disclosed in Note 14 – Defined Benefit and Other Postretirement Benefits included in Part II. Item 8. – Financial Statements and Supplementary Data of this report, Trustmark maintains a nonqualified supplemental retirement plan covering key executive officers and senior officers as well as directors who have elected to defer fees.
Trustmark's mortgage loans are primarily included in the Mississippi market region because these loans are centrally analyzed and approved as part of the mortgage line of business which is located in Jackson, Mississippi. For additional information regarding nonaccrual LHFI, see the section captioned “Nonaccrual and Past Due LHFI” in Note 5 – LHFI and ACL, LHFI included in Part II.
Trustmark's mortgage loans are primarily included in the Mississippi market region because these loans are centrally analyzed and approved as part of the mortgage line of business, which is located in Jackson, Mississippi. For additional information regarding nonaccrual LHFI, see the section captioned “Nonaccrual and Past Due LHFI” in Note 4 – LHFI and ACL, LHFI included in Part II.
Changes of equal magnitude in the opposite direction would produce similar increases in fair value in the respective amounts. See the section captioned “MSR” in Note 7 – Mortgage Banking included in Part II. Item 8. – Financial Statements and Supplementary Data of this report for additional information regarding the valuation of the MSR.
Changes of equal magnitude in the opposite direction would produce similar increases in fair value in the respective amounts. See the section captioned “MSR” in Note 6 – Mortgage Banking included in Part II. Item 8. – Financial Statements and Supplementary Data of this report for additional information regarding the valuation of the MSR.
On January 13, 2023, TNB entered into a settlement agreement relating to the litigation involving the Stanford Financial Group. As a result of this settlement, Trustmark recognized a one-time charge of $100.0 million of litigation settlement expense as well as an additional $750 thousand of legal fees during the fourth quarter of 2022.
On January 13, 2023, TB entered into a settlement agreement relating to the litigation involving the Stanford Financial Group. As a result of this settlement, Trustmark recognized a one-time charge of $100.0 million of litigation settlement expense as well as an additional $750 thousand of legal fees during the fourth quarter of 2022.
For 2024, 2023 and 2022, the process used to select the discount rate assumption under FASB ASC Topic 715, "Compensation-Retirement Benefits," takes into account the benefit cash flow and the segmented yields on high-quality corporate bonds that would be available to provide for the payment of the benefit cash flow.
For 2025, 2024 and 2023, the process used to select the discount rate assumption under FASB ASC Topic 715, "Compensation-Retirement Benefits," takes into account the benefit cash flow and the segmented yields on high-quality corporate bonds that would be available to provide for the payment of the benefit cash flow.
Given the nature of many of the factors, forecasts and assumptions in the ACL methodology for LHFI, it is not possible to provide meaningful estimates of the impact of any such potential change. For a complete description of Trustmark’s ACL methodology for the LHFI portfolio, please see Note 5 – LHFI and ACL, LHFI included in Part II.
Given the nature of many of the factors, forecasts and assumptions in the ACL methodology for LHFI, it is not possible to provide meaningful estimates of the impact of any such potential change. For a complete description of Trustmark’s ACL methodology for the LHFI portfolio, please see Note 4 – LHFI and ACL, LHFI included in Part II.
These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments. Trustmark’s and TNB’s minimum risk-based capital requirements include a capital conservation buffer of 2.5%. AOCI is not included in computing regulatory capital.
These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments. Trustmark’s and TB’s minimum risk-based capital requirements include a capital conservation buffer of 2.5%. AOCI is not included in computing regulatory capital.
The Visa C shares that were received by TNB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and was recorded to noninterest income (loss) in other, net during the second quarter of 2024.
The Visa C shares that were received by TB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and was recorded to noninterest income (loss) in other, net during the second quarter of 2024.
The nature and volume of the portfolio qualitative factor applies to a sub-pool of the LHFI secured by 1-4 family residential properties and utilizes a weighted average remaining maturity (WARM) methodology that uses industry data for the assumptions to support the qualitative adjustment.
The nature and volume of the portfolio qualitative factor applies to a sub-pool of the LHFI secured by 1-4 family residential properties and utilizes a weighted average remaining maturity (WARM) methodology that uses industry data for the PD and LGD assumptions to support the qualitative adjustment.
Regulatory Capital Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of this report, which are administered by the federal bank regulatory agencies.
Regulatory Capital Trustmark and TB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of this report, which are administered by the federal bank regulatory agencies.
Trustmark encourages readers to consider its audited consolidated financial statements and the notes related 40 thereto, included in Part II. Item 8. – Financial Statements and Supplementary Data of this report, in their entirety, and not to rely on any single financial measure.
Trustmark encourages readers to consider its audited consolidated financial statements and the notes related 39 thereto, included in Part II. Item 8. – Financial Statements and Supplementary Data of this report, in their entirety, and not to rely on any single financial measure.
Trustmark also purchased $1.378 billion of available for sale securities with an average yield of 4.85%. 41 Reduction in Force Expense During the fourth quarter 2023, Trustmark incurred reduction in force expenses of $1.4 million related to various restructuring initiatives.
Trustmark also purchased $1.378 billion of available for sale securities with an average yield of 4.85%. 40 Reduction in Force Expense During the fourth quarter 2023, Trustmark incurred reduction in force expenses of $1.4 million related to various restructuring initiatives.
Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that were validly tendered and accepted for exchange by Visa. TNB tendered its 38.7 thousand Visa B-1 shares, which were accepted by Visa.
Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that were validly tendered and accepted for exchange by Visa. TB tendered its 38.7 thousand Visa B-1 shares, which were accepted by Visa.
For additional information regarding the equipment finance leases, please see the sections captioned “Lessor Arrangements” included in Note 1 - Significant Accounting Policies and Note 10 – Leases of Part II. Item 8. – Financial Statements and Supplementary Data of this report.
For additional information regarding the equipment finance leases, please see the sections captioned “Lessor Arrangements” included in Note 1 – Significant Accounting Policies and Note 9 – Leases of Part II. Item 8. – Financial Statements and Supplementary Data of this report.
If Trustmark had breached any of these triggering provisions at December 31, 2024, it could have been required to settle its obligations under the agreements at the termination value (which is expected to approximate fair market value).
If Trustmark had breached any of these triggering provisions at December 31, 2025, it could have been required to settle its obligations under the agreements at the termination value (which is expected to approximate fair market value).
Off-Balance Sheet Arrangements Information required in this section is set forth under the heading “Lending Related” of Note 17 – Commitments and Contingencies in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
Off-Balance Sheet Arrangements Information required in this section is set forth under the heading “Lending Related” of Note 16 – Commitments and Contingencies in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
At December 31, 2024, Trustmark did not hold securities of any one issuer with a carrying value exceeding 10% of total shareholders’ equity, other than certain GSEs which are exempt from inclusion.
At December 31, 2025, Trustmark did not hold securities of any one issuer with a carrying value exceeding 10% of total shareholders’ equity, other than certain GSEs which are exempt from inclusion.
For a complete description of Trustmark’s ACL methodology and the quantitative and qualitative factors included in the calculation, please see Note 5 – LHFI and ACL, LHFI included in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
For a complete description of Trustmark’s ACL methodology and the quantitative and qualitative factors included in the calculation, please see Note 4 – LHFI and ACL, LHFI included in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TNB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share.
In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share.
During the third quarter of 2024, TNB sold all of the Visa C shares for approximately the same carrying value as of June 30, 2024. The Visa B-2 shares were recorded at their nominal carrying value.
During the third quarter of 2024, TB sold all of the Visa C shares for approximately the same carrying value as of June 30, 2024. The Visa B-2 shares were recorded at their nominal carrying value.
The aggregate fair values of these risk participation agreements were immaterial at December 31, 2024 and 2023. Trustmark’s participation in the derivatives markets is subject to increased federal regulation of these markets.
The aggregate fair values of these risk participation agreements were immaterial at December 31, 2025 and 2024. Trustmark’s participation in the derivatives markets is subject to increased federal regulation of these markets.
Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of Trustmark’s Annual Report filed on Form 10-K for the year ended December 31, 2023.
Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of Trustmark’s Annual Report filed on Form 10-K for the year ended December 31, 2024.
The discontinued operations include the financial results of FBBI prior to the sale as well as the net gain on the sale. Trustmark reported net income from continuing operations of $45.2 million, $153.3 million and $60.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The discontinued operations include the financial results of FBBI prior to the sale as well as the net gain on the sale. Trustmark reported net income from continuing operations of $45.2 million and $153.3 million for the years ended December 31, 2024 and 2023, respectively.
Trustmark offers certain interest rate derivatives products directly to qualified commercial lending clients seeking to manage their interest rate risk under loans they have entered into with TNB. Trustmark economically hedges interest rate swap transactions executed 67 with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants.
Trustmark offers certain interest rate derivatives products directly to qualified commercial lending clients seeking to manage their interest rate risk under loans they have entered into with TB. Trustmark economically hedges interest rate swap transactions executed with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants.
Securities The securities portfolio is utilized by Management to manage interest rate risk, generate interest income, provide liquidity and use as collateral for public and wholesale funding. Risk and return can be adjusted by altering duration, composition and/or balance of the portfolio. The weighted-average life of the portfolio at December 31, 2024 and 2023 was 4.8 and 4.5 years, respectively.
Securities The securities portfolio is utilized by Management to manage interest rate risk, generate interest income, provide liquidity and use as collateral for public and wholesale funding. Risk and return can be adjusted by altering duration, composition and/or balance of the portfolio. The weighted-average life of the portfolio at December 31, 2025 and 2024 was 4.3 and 4.8 years, respectively.
The PCL, off-balance sheet credit exposures totaled a negative $4.7 million for 2024, compared to a negative PCL, off-balance sheet credit exposures of $2.8 million for 2023 and a PCL, off-balance sheet credit exposures of $1.2 million for 2022.
The PCL, off-balance sheet credit exposures totaled a negative $1.4 million for 2025, compared to a negative PCL, off-balance sheet credit exposures of $4.7 million for 2024 and a negative PCL, off-balance sheet credit exposures of $2.8 million for 2023.
At December 31, 2024, unrecognized actuarial losses and unrecognized prior service costs continue to be amortized over future service periods. Legal Environment Information required in this section is set forth under the heading “Legal Proceedings” of Note 17 – Commitments and Contingencies in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
At December 31, 2025, unrecognized actuarial losses and unrecognized prior service costs continue to be amortized over future service periods. Legal Environment Information required in this section is set forth under the heading “Legal Proceedings” of Note 16 – Commitments and Contingencies in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
The PCL, off-balance sheet credit exposures totaled a negative $4.7 million for 2024 compared to a negative $2.8 million for 2023, and $1.2 million for 2022.
The PCL, off-balance sheet credit exposures totaled a negative $1.4 million for 2025 compared to a negative $4.7 million for 2024, and a negative $2.8 million for 2023.
Item 8. – Financial Statements and Supplementary Data of this report. Discussion and analysis of Trustmark’s financial condition and results of operations for the years ended December 31, 2023 and 2022 are included in the respective sections within Part II.
Item 8. – Financial Statements and Supplementary Data of this report. Further discussion and analysis of Trustmark’s financial condition and results of operations for the years ended December 31, 2024 and 2023 are included in the respective sections within Part II.
Trustmark uses such derivatives to hedge the variable cash flows associated with existing and anticipated variable-rate loan assets. At December 31, 2024, the aggregate notional value of Trustmark's interest rate swaps and floor spreads designated as cash flow hedges totaled $1.500 billion compared to $1.125 billion at December 31, 2023.
Trustmark uses such derivatives to hedge the variable cash flows associated with existing and anticipated variable-rate loan assets. At December 31, 2025, the aggregate notional value of Trustmark's interest rate swaps and floor spreads designated as cash flow hedges totaled $1.630 billion compared to $1.500 billion at December 31, 2024.
For the plan year ending December 31, 2025, Trustmark’s minimum required contribution to the Continuing Plan is expected to be $109 thousand; however, Management and the Board of Directors of Trustmark will monitor the Continuing Plan throughout 2025 to determine any additional funding requirements by the plan’s measurement date.
For the plan year ending December 31, 2026, Trustmark’s minimum required contribution to the Continuing Plan is expected to be $91 thousand; however, Management and the Board of Directors of Trustmark will monitor the Continuing Plan throughout 2026 to determine any additional funding requirements by the plan’s measurement date.
At December 31, 2024 and 2023, Trustmark had posted collateral of $1.5 million and $2.0 million, respectively, against its obligations because of negotiated thresholds and minimum transfer amounts under these agreements.
At December 31, 2025 and 2024, Trustmark had posted collateral of $2.2 million and $1.5 million, respectively, against its obligations because of negotiated thresholds and minimum transfer amounts under these agreements.
These include payments related to (i) short-term and long-term borrowings (Note 12 – Borrowings), (ii) operating and finance leases (Note 10 – Leases), (iii) time deposits with stated maturity dates (Note 11 – Deposits) and (iv) commitments to extend credit and standby letters of credit (Note 17 – Commitments and Contingencies).
These include payments related to (i) short-term and long-term borrowings (Note 11 – Borrowings), (ii) operating and finance leases (Note 9 – Leases), (iii) time deposits with stated maturity dates (Note 10 – Deposits) and (iv) commitments to extend credit and standby letters of credit (Note 16 – Commitments and Contingencies).
Securities Portfolio Restructuring Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income (loss) in securities gains (losses), net.
Securities Portfolio Restructuring During the second quarter of 2024, Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income (loss) in securities gains (losses), net.
For the years ended December 31, 2024 and 2023, Trustmark reclassified a loss, net of tax, of $13.6 million and $12.3 million, respectively, into interest and fees on LHFS and LHFI. During the next twelve months, Trustmark estimates that $8.1 million will be reclassified as a reduction to interest and fees on LHFS and LHFI.
For the years ended December 31, 2025, 2024 and 2023, Trustmark reclassified a loss, net of tax, of $7.1 million, $13.6 million and $12.3 million, respectively, into interest and fees on LHFS and LHFI. During the next twelve months, Trustmark estimates that $704 thousand will be reclassified as a reduction to interest and fees on LHFS and LHFI.
Trustmark’s average equity to average assets ratio was 9.84%, 8.41% and 9.18% for the years ended December 31, 2024, 2023 and 2022, respectively. Trustmark completed the sale of FBBI during the second quarter of 2024. As such, financial results for the years ended December 31, 2024, 2023 and 2022, consist of both continuing and discontinued operations.
Trustmark’s average equity to average assets ratio was 11.16%, 9.84% and 8.41% for the years ended December 31, 2025, 2024 and 2023, respectively. Trustmark completed the sale of FBBI during the second quarter of 2024. As such, financial results for the years ended December 31, 2024 and 2023, consist of both continuing and discontinued operations.
Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends. At December 31, 2024, Trustmark and TNB exceeded all applicable minimum capital standards.
Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TB and limit Trustmark’s and TB’s ability to pay dividends. At December 31, 2025, Trustmark and TB exceeded all applicable minimum capital standards.
At December 31, 2024, the accrued benefit obligation for the supplemental retirement plans equaled $38.2 million, while the net periodic benefit cost equaled $2.4 million in 2024, $2.5 million in 2023 and $2.4 million in 2022. The net periodic benefit cost and projected benefit obligation are determined using actuarial assumptions as of the plans’ measurement date.
At December 31, 2025, the accrued benefit obligation for the supplemental retirement plans equaled $37.1 million, while the net periodic benefit cost equaled $2.2 million in 2025, $2.4 million in 2024 and $2.5 million in 2023. The net periodic benefit cost and projected benefit obligation are determined using actuarial assumptions as of the plans’ measurement date.
The PCL (LHFI and off-balance sheet credit exposures) for the General Banking Segment for 2024 totaled $41.1 million compared to a PCL of $26.7 million during 2023 and a PCL of $22.9 million during 2022.
The PCL (LHFI and off-balance sheet credit exposures) for the General Banking Segment for 2025 totaled $12.9 million compared to a PCL of $41.1 million during 2024 and a PCL of $26.7 million during 2023.
Trustmark maintains a relationship with the FHLB of Dallas, which provided $200.0 million of outstanding short-term advances and no long-term advances at December 31, 2024, compared to $400.0 million of short-term and no long-term FHLB advances outstanding at December 31, 2023.
Trustmark maintains a relationship with the FHLB of Dallas, which provided $225.0 million of outstanding short-term advances and no long-term advances at December 31, 2025, compared to $200.0 million of outstanding short-term advances and no long-term advances at December 31, 2024.
Trustmark's reported performance from continuing operations for the year ended December 31, 2024 produced a return on average tangible equity of 3.04%, a return on average assets of 0.24% and a dividend payout ratio of 124.32%, compared to a return on average tangible equity of 12.43%, a return on average assets of 0.82% and a dividend payout ratio of 36.65% for the year ended December 31, 2023, and a return on average tangible equity of 4.86%, a return on average assets of 0.35% and a dividend payout ratio of 92.93%, for the year ended December 31, 2022.
Trustmark's reported performance from continuing operations for the year ended December 31, 2024 produced a return on average tangible equity of 3.04%, a return on average assets of 0.24% and a dividend payout ratio of 124.32%, compared to a return on average tangible equity of 12.43%, a return on average assets of 0.82% and a dividend payout ratio of 36.65% for the year ended December 31, 2023.
Noninterest income (loss) for the General Banking Segment 48 represented a negative 11.7% of total revenue for 2024, 17.2% for 2023 and 19.2% for 2022. Noninterest income (loss) for the General Banking Segment includes service charges on deposit accounts; wealth management; bank card and other fees; mortgage banking, net; other, net and securities gains (losses), net.
Noninterest income (loss) for the General Banking Segment represented 16.4% of total revenue for 2025, a negative 11.7% for 2024 and 17.2% for 2023. Noninterest income (loss) for the General Banking Segment includes service charges on deposit accounts; wealth management; bank card and other fees; mortgage banking, net; other, net and securities gains (losses), net.
The repurchase program, which is subject to market conditions and management discretion, will be implemented through open market repurchases or privately negotiated transactions. Under this authority, Trustmark repurchased approximately 243 thousand shares of its common stock valued at $8.5 million during January 2025.
The repurchase program, which is subject to market conditions and management discretion, will be implemented through open market repurchases or privately negotiated transactions. Under this authority, Trustmark repurchased 163 thousand shares of its common stock valued at $6.5 million during January 2026.
For the year ended December 31, 2024, Trustmark reported net income of $223.0 million, or basic and diluted EPS of $3.65 and $3.63, respectively, compared to $165.5 million, or basic and diluted EPS of $2.71 and $2.70, respectively, for the year ended December 31, 2023 and $71.9 million, or basic and diluted EPS of $1.17, for the year ended December 31, 2022.
Year Ended December 31, 2025 For the year ended December 31, 2025, Trustmark reported net income of $224.1 million, or basic and diluted EPS of $3.72 and $3.70, respectively, compared to $223.0 million, or basic and diluted EPS of $3.65 and $3.63, respectively, for the year ended December 31, 2024 and $165.5 million, or basic and diluted EPS of $2.71 and $2.70, respectively, for the year ended December 31, 2023.
At December 31, 2024, the termination value of interest rate swaps in a liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $568 thousand compared to $1.4 million at December 31, 2023.
At December 31, 2025, the termination value of interest rate swaps in a liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $117 thousand compared to $568 thousand at December 31, 2024.
The PCL for the Wealth Management Segment for 2024 totaled $154 thousand compared to a negative PCL of $2.1 million during 2023 and a negative PCL of $21 thousand during 2022.
The PCL for the Wealth Management Segment for 2025 totaled a negative $26 thousand compared to a PCL of $154 thousand during 2024 and a negative PCL of $2.1 million during 2023.
There are no significant conditions or events that have occurred since December 31, 2024, which Management believes have affected Trustmark’s or TNB’s present classification. In 2020, Trustmark enhanced its capital structure with the issuance of $125.0 million of subordinated notes. At December 31, 2024 and 2023, the carrying amount of the subordinated notes was $123.7 million and $123.5 million, respectively.
There are no significant conditions or events that have occurred since December 31, 2025, which Management believes have affected Trustmark’s or TB’s present classification. In 2020, Trustmark enhanced its capital structure with the issuance of $125.0 million of the 2020 Notes. At December 31, 2024, the carrying amount of the 2020 Notes was $123.7 million.
Loan sales increased $5.3 million, or 0.5%, during 2024 to total $1.141 billion compared to a decrease of $107.0 million, or 8.6%, during 2023 to total $1.136 billion. 46 Other, Net The following table illustrates the components of other, net included in noninterest income (loss) for the periods presented ($ in thousands): Years Ended December 31, 2024 2023 2022 Amount % Change Amount % Change Amount % Change Partnership amortization for tax credit purposes $ (7,627 ) -4.5 % $ (7,988 ) 28.6 % $ (6,211 ) -22.5 % Increase in life insurance cash surrender value 7,478 6.6 % 7,018 5.2 % 6,673 0.6 % Loss on sale of 1-4 family mortgage loans (4,798 ) n/m — — — — Visa C shares fair value adjustment 8,056 n/m — — — — Other miscellaneous income 14,704 31.3 % 11,201 19.4 % 9,379 18.2 % Total other, net $ 17,813 74.1 % $ 10,231 4.0 % $ 9,841 50.2 % n/m - percentage changes greater than +/- 100% are not considered meaningful The increase in other, net when 2024 is compared to 2023 was principally due to the $8.1 million Visa C shares fair value adjustment during the second quarter of 2024 as well as an increase in other miscellaneous income, partially offset by the $4.8 million noncredit-related loss on the sale of 1-4 family mortgage loans recorded during the second quarter of 2024.
Loan sales increased $16.2 million, or 1.4%, during 2025 to total $1.158 billion compared to an increase of $5.3 million, or 0.5%, during 2024 to total $1.141 billion. 45 Other, Net The following table illustrates the components of other, net included in noninterest income (loss) for the periods presented ($ in thousands): Years Ended December 31, 2025 2024 2023 Amount % Change Amount % Change Amount % Change Partnership amortization for tax credit purposes $ (9,026 ) -18.3 % $ (7,627 ) 4.5 % $ (7,988 ) -28.6 % Increase in life insurance cash surrender value 7,663 2.5 % 7,478 6.6 % 7,018 5.2 % Loss on sale of 1-4 family mortgage loans — 100.0 % (4,798 ) n/m — — Visa C shares fair value adjustment — -100.0 % 8,056 n/m — — Other miscellaneous income 14,771 0.5 % 14,704 31.3 % 11,201 19.4 % Total other, net $ 13,408 -24.7 % $ 17,813 74.1 % $ 10,231 4.0 % n/m - percentage changes greater than +/- 100% are not considered meaningful The decrease in other, net when 2025 is compared to 2024 was principally due to the $8.1 million Visa C shares fair value adjustment during the second quarter of 2024 as well as an increase in amortization of tax credit partnerships, partially offset by the $4.8 million noncredit-related loss on the sale of 1-4 family mortgage loans recorded during the second quarter of 2024.
For a complete description of Trustmark’s ACL methodology for off-balance sheet credit exposures, please see the section captioned “Lending Related” in Note 17 – Commitments and Contingencies included in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
For a complete description of Trustmark’s ACL methodology for off-balance sheet credit exposures, please see the section captioned “ACL on Off-Balance Sheet Credit Exposures” in Note 16 – Commitments and Contingencies included in Part II. Item 8. – Financial Statements and Supplementary Data of this report.
The increase in LHFI during 2024 was primarily due to net growth in LHFI secured by real estate and other commercial loans and leases partially offset by net declines in commercial and industrial LHFI and state and other political subdivision LHFI.
The increase in LHFI during 2025 was primarily due to net growth in other commercial loans and leases, commercial and industrial LHFI, LHFI secured by real estate and state and other political subdivision LHFI.
The increase in LHFI during 2024 was primarily due to net growth in LHFI secured by real estate and other commercial loans and leases partially offset by net declines in commercial and industrial LHFI and state and other political subdivision LHFI.
The increase in LHFI during 2025 was primarily due to net growth in other commercial loans and leases, commercial and industrial LHFI, LHFI secured by real estate and state and other political subdivision LHFI.
The PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, totaled $37.3 million for 2024, compared to a PCL, LHFI of $27.4 million for 2023 and $21.7 million for 2022.
The PCL, LHFI totaled $14.3 million for 2025, compared to a PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, of $37.3 million for 2024 and a PCL, LHFI of $27.4 million for 2023.
The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense. Financial Condition Earning assets serve as the primary revenue streams for Trustmark and are comprised of securities, loans, federal funds sold, securities purchased under reverse repurchase agreements and other earning assets.
The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense. Financial Condition Earning assets serve as the primary revenue streams for Trustmark and are comprised of securities, loans and other earning assets.
The impact of this strategy resulted in a net negative ineffectiveness of $9.2 million for the year ended December 31, 2024, compared to a net negative ineffectiveness of $6.3 million for the year ended December 31, 2023 and a net negative ineffectiveness of $4.1 million for the year ended December 31, 2022.
The impact of this strategy resulted in a net negative ineffectiveness of $2.6 million for the year ended December 31, 2025, compared to a net negative ineffectiveness of $9.2 million and $6.3 million for the years ended December 31, 2024 and 2023, respectively.
The following table provides information regarding Trustmark’s home equity loans and home equity lines of credit which are included in the LHFI secured by 1-4 family residential properties at December 31, 2024 and 2023 ($ in thousands): December 31, 2024 2023 Home equity loans $ 72,183 $ 58,176 Home equity lines of credit 458,327 430,933 Percentage of loans and lines for which Trustmark holds first lien 46.7 % 47.8 % Percentage of loans and lines for which Trustmark does not hold first lien 53.3 % 52.2 % Due to the increased risk associated with second liens, loan terms and underwriting guidelines differ from those used for products secured by first liens.
The following table provides information regarding Trustmark’s home equity loans and home equity lines of credit which are included in the LHFI secured by 1-4 family residential properties at December 31, 2025 and 2024 ($ in thousands): December 31, 2025 2024 Home equity loans $ 72,895 $ 72,183 Home equity lines of credit 497,937 458,327 Percentage of loans and lines for which Trustmark holds first lien 44.5 % 46.7 % Percentage of loans and lines for which Trustmark does not hold first lien 55.5 % 53.3 % Due to the increased risk associated with second liens, loan terms and underwriting guidelines differ from those used for products secured by first liens.
Trustmark had $285.0 million of upstream federal funds purchased at December 31, 2024, compared to $370.0 million at December 31, 2023.
Trustmark had $445.0 million of upstream federal funds purchased at December 31, 2025, compared to $285.0 million at December 31, 2024.
In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at December 31, 2024.
In addition, Trustmark and TB met applicable regulatory guidelines to be considered well-capitalized at December 31, 2025.
At December 31, 2024, the MSR fair value was $139.3 million. The impact on the MSR fair value of either a 10% adverse change in prepayment speeds or a 100 basis point increase in discount rates at December 31, 2024, would be a decline in fair value of approximately $4.9 million and $5.6 million, respectively.
At December 31, 2025, the MSR fair value was $131.3 million. The impact on the MSR fair value of either a 10% adverse change in prepayment speeds or a 100 basis point increase in discount rates at December 31, 2025, would be a decline in fair value of approximately $5.1 million and $5.2 million, respectively.
The PCL, LHFI for 2024 totaled $45.9 million and included an $8.6 million PCL, LHFI sale of 1-4 family mortgage loans for the credit-related portion of the loss on the sale of the 1-4 family mortgage loans.
The PCL, LHFI for 2024 included an $8.6 million PCL, LHFI sale of 1-4 family mortgage loans for the credit-related portion of the loss on the sale of the 1-4 family mortgage loans. The PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, for 2024 totaled $37.3 million.
Other LHFI secured by 1-4 family residential properties, which primarily consists of revolving home equity lines of credit, increased $28.2 million, or 4.5%, during 2024 reflecting growth in the Mississippi, Texas, Florida, Tennessee and Alabama market regions.
Other LHFI secured by 1-4 family residential properties, which primarily consists of revolving home equity lines of credit, increased $54.0 million, or 8.3%, during 2025 reflecting growth in the Mississippi, Alabama, Florida, Tennessee and Texas market regions.
Trustmark’s reported performance for the year ended December 31, 2024, produced a return on average tangible equity of 15.20%, a return on average assets of 1.20% and a dividend payout ratio of 25.21%, compared to a return on average tangible equity of 14.04%, a return on average assets of 0.89% and a dividend payout ratio of 33.95% for the year ended December 31, 2023 and a return on average tangible equity of 6.00%, a return on average assets of 0.41% and a dividend payout ratio of 78.63% for the year ended December 31, 2022.
Trustmark’s reported performance for the year ended December 31, 2025, produced a return on average tangible equity of 12.97%, a return on average assets of 1.21% and a dividend payout ratio of 25.81%, compared to a return on average tangible equity of 15.20%, a return on average assets of 1.20% and a dividend payout ratio of 25.21% for the year ended December 31, 2024 and a return on average tangible equity of 14.04%, a return on average assets of 0.89% and a dividend payout ratio of 33.95% for the year ended December 31, 2023.
The decrease in total revenue for 2024 compared to 2023 was principally due to decline in noninterest income (loss), primarily as a result of the loss on the sale of available for sale securities partially offset by increases in other, net and wealth management, and an increase in net interest income, primarily resulting from increases in interest and fees from LHFS and LHFI and interest on securities as well as a decline in other interest expense, partially offset by an increase in interest expense on deposits and a decrease in other interest income.
The increase in revenue for 2025 compared to 2024 was principally due to (i) an increase in noninterest income (loss), primarily as a result of the loss on the sale of available for sale securities during the second quarter of 2024 and increases in mortgage banking, net and wealth management, partially offset by a decrease in other, net, and (ii) an increase in net interest income, primarily resulting from a decline in total interest expense and an increase in interest on securities, partially offset by declines in interest and fees from LHFS and LHFI and other interest income.
Please see the section captioned “Provision for Credit Losses” for additional information regarding the PCL on LHFI and off-balance sheet credit exposures. LHFI totaled $13.090 billion at December 31, 2024, an increase of $139.4 million, or 1.1%, compared to December 31, 2023.
Please see the section captioned “Provision for Credit Losses” for additional information regarding the PCL on LHFI and off-balance sheet credit exposures. 34 LHFI totaled $13.674 billion at December 31, 2025, an increase of $584.3 million, or 4.5%, compared to December 31, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table summarizes the effect that various interest rate shifts would have on net portfolio value at December 31, 2024 and 2023.
Biggest changeThe resulting change in EVE in different market rate environments, from the base case scenario, is the amount of EVE at risk from those rate environments. 68 The following table summarizes the effect that various interest rate shifts would have on net portfolio value at December 31, 2025 and 2024.
Estimated % Change in Net Interest Income Change in Interest Rates 2024 2023 +200 basis points 0.8 % 0.5 % +100 basis points 0.4 % 0.3 % -100 basis points -1.2 % -0.4 % -200 basis points -3.0 % -1.0 % Management cannot provide any assurance about the actual effect of changes in interest rates on net interest income.
Estimated % Change in Net Interest Income Change in Interest Rates 2025 2024 +200 basis points 3.1 % 0.8 % +100 basis points 1.5 % 0.4 % -100 basis points -2.1 % -1.2 % -200 basis points -4.8 % -3.0 % Management cannot provide any assurance about the actual effect of changes in interest rates on net interest income.
Estimated % Change in Net Portfolio Value Change in Interest Rates 2024 2023 +200 basis points -1.3 % -2.3 % +100 basis points -0.4 % -0.9 % Trustmark determines the fair value of the MSR using a valuation model administered by a third party that calculates the present value of estimated future net servicing income.
Estimated % Change in Net Portfolio Value Change in Interest Rates 2025 2024 +200 basis points -0.3 % -1.3 % +100 basis points 0.1 % -0.4 % Trustmark determines the fair value of the MSR using a valuation model administered by a third party that calculates the present value of estimated future net servicing income.
The impact on the MSR fair value of a 10% adverse change in prepayment speeds or a 100-basis point increase in discount rates at December 31, 2024 would be a decline in fair value of approximately $4.9 million and $5.6 million, respectively, compared to a decline in fair value of approximately $4.8 million and $5.4 million, respectively, at December 31, 2023.
The impact on the MSR fair value of a 10% adverse change in prepayment speeds or a 100-basis point increase in discount rates at December 31, 2025 would be a decline in fair value of approximately $5.1 million and $5.2 million, respectively, compared to a decline in fair value of approximately $4.9 million and $5.6 million, respectively, at December 31, 2024.
At December 31, 2024, the MSR fair value was $139.3 million, compared to $131.9 million at December 31, 2023.
At December 31, 2025, the MSR fair value was $131.3 million, compared to $139.3 million at December 31, 2024.
In addition, the model incorporates Management’s assumptions and expectations regarding such factors as loan and deposit growth, pricing, prepayment speeds and spreads between interest rates. 68 Based on the results of the simulation models using static balances, the table below summarizes the effect various one-year interest rate shift scenarios would have on net interest income compared to a base case, flat scenario at December 31, 2024 and 2023.
Based on the results of the simulation models using static balances, the table below summarizes the effect various one-year interest rate shift scenarios would have on net interest income compared to a base case, flat scenario at December 31, 2025 and 2024.
Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve and the changing composition of Trustmark’s balance sheet, resulting from both strategic plans and customer behavior.
Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve and the changing composition of Trustmark’s balance sheet, resulting from both strategic plans and customer behavior. In addition, the model incorporates Management’s assumptions and expectations regarding such factors as loan and deposit growth, pricing, prepayment speeds and spreads between interest rates.
The economic value of equity (EVE), also known as net portfolio value, is defined as the difference between the present value of asset cash flows and the present value of liability cash flows. The resulting change in EVE in different market rate environments, from the base case scenario, is the amount of EVE at risk from those rate environments.
The economic value of equity (EVE), also known as net portfolio value, is defined as the difference between the present value of asset cash flows and the present value of liability cash flows.

Other TRMK 10-K year-over-year comparisons