Executive Summary

Trustmark delivered a solid quarter: diluted EPS of $0.92 rose 4.5% q/q and beat S&P Global consensus by ~$0.05; revenue of $198.6m grew 2.1% q/q but was modestly below consensus as noninterest income softened sequentially . EPS est: $0.868*; Rev est: $200.633m*.
Profitability expanded: net interest margin increased 6 bps to 3.81% on higher loan yields and lower funding costs; efficiency improved to 61.24% .
Guidance was broadly constructive: loan growth raised to mid‑single digits (from low‑single), NIM range tightened to 3.77%–3.83%, and NII outlook raised to high‑single‑digit growth; provision expected to trend lower vs 2024; tax rate guided to ~18.3%–18.5% .
Credit trends improved with reductions in criticized/classified loans; CET1 rose to 11.70%, TBVPS to $28.74; buybacks continued with $26m repurchased YTD and $74m remaining authorization—supportive for the stock narrative into 2H25 .

What Went Well and What Went Wrong

What Went Well

EPS beat driven by NII growth and lower provision; NIM expanded to 3.81% as asset yields rose and liability costs fell (“increase in the yield of loans… and the decrease in the cost of interest‑bearing liabilities”) .
Credit quality: NPAs fell 5.3% q/q; criticized loans −$71m and classified −$40m with ~$75m upgraded to pass, lowering provisioning pressure; NCOs ran at 12 bps of average loans .
Positive forward tone and guidance: “We are making positive revisions… Loans HFI to increase mid single digits… NIM range now 3.77%–3.83%… NII to increase high single digits” .

What Went Wrong

Revenue modestly missed S&P consensus as noninterest income declined $2.7m q/q on lower other income and facility sale comp; mortgage was strong y/y but slightly down q/q due to higher servicing amortization . Rev est: $200.633m* vs reported $198.6m .
Noninterest expense ticked up $1.1m q/q largely on professional fees within services & fees (+$0.8m q/q) .
Deposit balances were essentially flat q/q (+$35m), and total deposits remain down y/y (-2.2%) given deliberate mix pruning in public/brokered funds; interest‑bearing deposit costs, while down 2 bps q/q, remain elevated vs pre‑rate‑hike levels .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025	Q2 2025 vs S&P Est.
Revenue ($m)	196.8	194.6	198.6	200.6*
Diluted EPS ($)	0.92	0.88	0.92	0.87*
Net Interest Margin (%)	3.76	3.75	3.81
Efficiency Ratio (%)	61.77	61.77	61.24

Company “revenue” aligns to GAAP net interest income + noninterest income; adjusted pre‑provision revenue was $198.65m in Q2 (for reference) .
S&P Global consensus values marked with * (Values retrieved from S&P Global).

Segment/fee mix (Noninterest income details)

Category ($m)	Q4 2024	Q1 2025	Q2 2025
Mortgage banking, net	7.39	8.77	8.60
Wealth management	9.32	9.54	9.64
Service charges on deposit accounts	11.23	10.64	10.59
Bank card & other fees	8.72	7.66	8.75
Other, net	4.30	5.97	2.31
Total Noninterest Income	40.95	42.58	39.89

Key KPIs and balance sheet

KPI	Q4 2024	Q1 2025	Q2 2025
Loans HFI ($bn, end)	13.09	13.24	13.46
Deposits ($bn, end)	15.11	15.08	15.12
Cost of total deposits (%)	1.98	1.83	1.80
NPAs ($m)	86.03	94.97	89.97
NCOs / Avg Loans (%)	0.14	0.04	0.12
CET1 Ratio (%)	11.54	11.63	11.70
Tangible BVPS ($)	26.68	27.78	28.74
Dividend per share ($)	0.23	0.24	0.24

YoY note: Q2 2024 results were distorted by a $182.8m securities loss and discontinued operations from the 2024 insurance sale; on a non‑GAAP basis, adjusted revenue in Q2 2024 was $184.4m vs $198.6m Q2 2025 (+7.7% y/y) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loans HFI growth	FY 2025	Low single digits	Mid single digits	Raised
Deposits (ex‑brokered)	FY 2025	Low single‑digit growth	Low single‑digit growth	Maintained
NIM (reported)	FY 2025	3.75%–3.85%	3.77%–3.83%	Tightened
Net interest income	FY 2025	Mid‑to‑high single‑digit growth	High single‑digit growth	Raised
Provision for credit losses	FY 2025	Stable vs 2024	Trending lower vs 2024	Lower
Noninterest income/expense	FY 2025	Unchanged	Unchanged	Maintained
Tax rate (effective)	FY 2025	n/a	~18.3%–18.5%	Set
Securities portfolio	FY 2025	Stable	Stable	Maintained
Capital return	2025	Opportunistic buybacks	~$10–$15m per quarter contemplated	Clarified
Dividend	Ongoing	$0.24/qtr run‑rate	$0.24/qtr declared (Sep 15 pay)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Net interest margin	Q4’24: 3.76%, benefit from lower funding costs ; Q1’25: 3.75% flat as lower costs offset lower loan yields	3.81%, tailwind from loan yield repricing and slight funding cost declines; modest asset sensitivity if Fed delays cuts	Improving
Loan growth	Q4’24: Stable to modest; CRE pressures	Raised FY guide to mid‑single; strength outside CRE; maturities pushing out lower paydowns	Strengthening
Deposits/costs	Q4’24: IB deposit cost fell 30 bps q/q ; Q1’25: −21 bps q/q	Cost of total deposits down 3 bps to 1.80%; mix stable	Improving
Credit quality	Q4’24: ACL 1.22% LHFI; NPAs up modestly	Criticized −$71m, classified −$40m; ~$75m upgraded to pass; NCOs 12 bps	Improving
Fee businesses	Q4’24: broad‑based growth; mortgage up on hedge dynamics	Mortgage up y/y; wealth stable; other income lower without one‑time gains	Mixed
Macro/rates	Q1’25 NIM stable with falling funding costs	Baseline includes Sep/Dec Fed cuts; modest asset sensitivity; deposit price actions planned if cuts occur	Balanced
M&A/expansion	Limited specifics prior	Active evaluation; focus on contiguous SE/TX, $1–$5bn targets; talent hiring continues	Increasing focus
Regulatory/tax	n/a	Full‑year ETR ~18.3–18.5%	Set

Management Commentary

CEO tone on momentum and drivers: “We continue to build momentum… profitability metrics expanded fueled by loan and deposit growth, solid credit quality, diversified fee income and disciplined expense management” .
On NIM mechanics: “The net interest margin increased six basis points… primarily due to the increase in the yield for the loans… as well as the decrease in the cost of interest‑bearing liabilities” .
On loan growth guide: “We expect loans held for investment to increase mid single digits… revised upward from our previous guidance of low single digit growth” .
On capital returns: “Reasonable to assume… $10–$15 million a quarter in share repurchase here in 2025” .

Q&A Highlights

NIM and rate path: Baseline assumes Fed cuts in September and December; TRMK is slightly asset sensitive and would reduce deposit rates to defend NIM if cuts occur; otherwise, ongoing fixed‑rate asset repricing supports modest NIM expansion .
Loan growth composition: Stronger non‑CRE production; in CRE, many scheduled maturities extended into 2H25–2026/27, smoothing payoffs and aiding balances .
Credit provisioning: Lower q/q provision driven by positive credit migration and fewer criticized/classified balances; reserve ~1.25% of LHFI (down 1 bp q/q) .
M&A posture: Evaluating contiguous high‑growth SE/TX markets with target size ~$1–$5bn; concurrently recruiting talent in core metros (Houston, Birmingham, Atlanta, FL Panhandle, Jackson) .
Tax rate: Expect FY effective tax rate ~18.3%–18.5% .

Estimates Context

Q2 2025 vs S&P Global consensus: TRMK reported $0.92 EPS vs $0.87* (+$0.05 beat) and revenue of $198.6m vs $200.6m* (≈$2.0m miss). Company revenue is GAAP NII + noninterest income .
Forward consensus (next two quarters):
- Q3 2025: EPS 0.932*, Revenue $206.1m*; Q4 2025: EPS 0.913*, Revenue $207.1m*. Primary EPS estimates (# est. 6); revenue (# est. 4).
  Values marked with * retrieved from S&P Global.

Period	EPS Consensus*	Revenue Consensus*
Q3 2025	0.9317	$206.125m
Q4 2025	0.9133	$207.050m

Key Takeaways for Investors

EPS beat with constructive guide raises (loan growth, NIM range tightened upward mid‑point, NII to high‑single‑digit) should support estimate revisions higher on EPS and NII despite a small revenue miss tied to fee line volatility .
Margin resilience is underpinned by ongoing asset repricing and the ability to reprice deposits if the Fed cuts; modest asset sensitivity suggests downside protection to NIM if cuts are delayed .
Credit normalization remains benign with improving risk ratings and contained losses (12 bps NCOs), supporting lower provisioning vs 2024 guide and capital accretion .
Capital return optionality (buybacks pacing $10–$15m/qtr, dividend $0.24) plus TBVPS growth to $28.74 provide tangible support to valuation .
Mortgage and wealth remain healthy contributors; near‑term fee volatility (other income) should be monitored but is not thesis‑defining .
M&A optionality in attractive contiguous markets offers a potential medium‑term growth catalyst; management emphasizes disciplined approach .
Near‑term trading: positive skew given beat/guide raises and credit tone; medium‑term thesis: continued operating leverage, NIM defense, and capital returns drive ROA/ROTCE progression .

References: Earnings 8‑K and press release package for Q2 2025 ; Earnings call transcript Q2 2025 ; Q1 2025 press release ; Q4 2024 press release .
Values marked with * retrieved from S&P Global.

TRUSTMARK CORP (TRMK)·Q2 2025 Earnings Summary