Trustmark (TRMK, Financial) released its financial results for the second quarter of 2025, showing revenues of $198.6 million, which fell slightly short of the anticipated $200.35 million. The company's President and CEO, Duane A. Dewey, conveyed optimism about the ongoing positive trends in their operations.
The quarter witnessed continued strength in diversified loan growth and robust credit quality. Trustmark also succeeded in enhancing and expanding cost-effective core deposit relationships. Additionally, their mortgage banking and wealth management divisions reported strong performances.
These achievements reflect the company's concentrated efforts to grow customer relationships and effectively control expenses. Trustmark's team has excelled in serving customers and nurturing connections, showcasing the value that the firm offers as a financial partner. The company believes it is well-positioned to deliver long-term value to its shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Trustmark Corp (TRMK, Financial) is $41.90 with a high estimate of $45.50 and a low estimate of $37.00. The average target implies an upside of 8.21% from the current price of $38.72. More detailed estimate data can be found on the Trustmark Corp (TRMK) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Trustmark Corp's (TRMK, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Trustmark Corp (TRMK, Financial) in one year is $44.97, suggesting a upside of 16.14% from the current price of $38.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Trustmark Corp (TRMK) Summary page.
TRMK Key Business Developments
Release Date: April 23, 2025
- Loan Growth: Loans held for investment increased by $151 million or 1.2% linked quarter.
- Deposit Costs: Cost of total deposits decreased 15 basis points to 1.83%.
- Net Income: Reported net income of $53.6 million, with EPS of $0.88 per share.
- Return on Average Assets: 1.19%.
- Return on Average Tangible Equity: 13.13%.
- Net Interest Income: $155 million, with a net interest margin of 3.75%.
- Non-Interest Income: Approximately $43 million, up 4% linked quarter.
- Non-Interest Expense: Declined by $419,000 linked quarter.
- Net Charge-Offs: Totaled $1.4 million, representing 4 basis points of average loans.
- Provision for Credit Losses: $5.3 million, with allowance for credit losses at 1.2% of loans.
- CET1 Ratio: Increased to 11.63%.
- Risk-Based Capital Ratio: Increased 13 basis points to 14.1%.
- Stock Repurchase: $15 million repurchased, with $85 million remaining authority.
- Tangible Book Value Per Share: $27.78, up 4.1% during the quarter.
- Quarterly Cash Dividend: $0.24 per share, payable June 15th.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Trustmark Corp (TRMK, Financial) reported solid loan growth with an increase of $151 million or 1.2% linked quarter.
- The company experienced a decrease in the cost of total deposits by 15 basis points to 1.83%.
- Net income for the first quarter was $53.6 million, with a return on average assets of 1.19% and a return on average tangible equity of 13.13%.
- Non-interest income increased by 4% linked quarter, driven by growth in mortgage banking, wealth management, and other income.
- Trustmark Corp (TRMK) successfully managed expenses, with non-interest expense declining by $419,000 linked quarter.
Negative Points
- There is uncertainty in the market due to tariffs and administrative policies, which could impact client behavior and loan growth.
- The company anticipates meaningful maturing CRE loans during 2025, which could affect future loan growth.
- There is potential for a slowdown in new origination volume due to market volatility and client uncertainty.
- The net provision for credit losses was $5.3 million, indicating some concerns about credit quality.
- The company faces competitive pressure in loan pricing, which could impact profitability.
