Executive Summary

Q3 delivered solid core results: EPS of $0.94 grew 2% q/q and 12% y/y on higher net interest income and disciplined credit costs; NIM edged up to 3.83% and ROA/ROTE were 1.21%/12.84% .
Mixed versus Street: EPS slightly beat consensus while revenue was below; management tightened full‑year NIM guidance to 3.78%–3.82% and affirmed other 2025 outlook items (loans mid‑single‑digit, deposits low‑single‑digit ex‑brokered, NII high‑single‑digit) .
Balance sheet momentum: loans +0.6% q/q (+3.4% y/y) to $13.55B; deposits +3.4% q/q (+2.6% y/y) to $15.63B with NIBD rising to 21.2%; CET1 improved to 11.88% .
Key near‑term stock catalysts: tightened NIM range and deposit growth resiliency; offset by a revenue miss vs consensus and higher noninterest expense from ~$2.3M non‑routine items (charter conversion/legal and an OREO reserve) .

What Went Well and What Went Wrong

What Went Well
- NIM expansion and NII growth: NIM rose 2 bps to 3.83% and net interest income (FTE) increased 2.4% q/q to $165.2M on higher loan and securities yields .
- Core funding strength: deposits +$515M q/q (+3.4%), with NIBD +5.9% q/q to 21.2% of total; cost of total deposits only 1.84% (+4 bps q/q) .
- Management tone confident on outlook and hiring to drive growth: “Our momentum continues to build… We will continue to add seasoned professionals… to further enhance our financial performance” — CEO Duane Dewey .
What Went Wrong
- Noninterest expense elevated: up 4.7% q/q to $130.9M, including ~$2.3M non‑routine items; salaries/benefits +$3.2M q/q from merit increases, incentives, and growth hires; OREO expense +$1.8M from a single‑property reserve .
- Revenue vs consensus: company “total revenue” $202.4M came in below S&P Global consensus revenue estimate; fee line items were flat overall q/q (noninterest income +0.1% q/q) .
- Credit optics: NPLs ticked up modestly (nonaccrual loans +$3.0M q/q), though NCOs remained low at 0.13% of average loans and total PCL declined to $1.7M .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025	Q3 2025 Consensus*
EPS (diluted)	$0.84	$0.92	$0.94	$0.932* (6 ests)
Total Revenue ($M, company GAAP NII + noninterest)	$192.3 (154.7+37.6)	$198.6	$202.4	$206.1* (4 ests)
Net Interest Margin (FTE)	3.69%	3.81%	3.83%	—

Notes: Q3’24 revenue shown as GAAP net interest income ($154.7M) + noninterest income ($37.6M) from company tables . Consensus values marked with * are from S&P Global; Values retrieved from S&P Global.

Revenue breakdown and fee lines

Metric ($M)	Q3 2024	Q2 2025	Q3 2025
Net Interest Income (FTE)	$158.0	$161.4	$165.2
Noninterest Income	$37.6	$39.9	$39.9
• Service Charges	$11.3	$10.6	$11.3
• Bank Card & Other Fees	$7.9	$8.8	$8.3
• Mortgage Banking, net	$6.1	$8.6	$8.2
• Wealth Management	$9.3	$9.6	$9.8
Noninterest Expense	$123.3	$125.1	$130.9

Key performance and balance sheet KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Loans HFI ($B, end)	$13.10	$13.46	$13.55
Deposits ($B, end)	$15.24	$15.12	$15.63
NIBD (% of total)	—	20.7%	21.2%
Cost of Total Deposits	2.22%	1.80%	1.84%
PCL (total, $M)	$6.5	$4.7	$1.7
NCOs ($M) / Rate	$4.68 / 0.14%	$4.12 / 0.12%	$4.39 / 0.13%
CET1	11.30%	11.70%	11.88%
Efficiency Ratio (Adj)	60.99%	61.24%	61.98%
Tangible Book Value/Share	$26.88	$28.74	$29.60

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin (FY)	FY 2025	3.77%–3.83%	3.78%–3.82%	Tightened/narrowed
Loans HFI Growth	FY 2025	Mid‑single‑digit	Mid‑single‑digit (affirmed)	Maintained
Deposits (ex‑brokered) Growth	FY 2025	Low‑single‑digit	Low‑single‑digit (affirmed)	Maintained
Net Interest Income	FY 2025	High‑single‑digit growth	High‑single‑digit (affirmed)	Maintained
Provision for Credit Losses	FY 2025	Lower vs FY24	Lower vs FY24 (affirmed)	Maintained
Noninterest Income (Adj)	FY 2025	Mid‑single‑digit growth	Mid‑single‑digit (affirmed)	Maintained
Noninterest Expense	FY 2025	Mid‑single‑digit growth	Mid‑single‑digit (affirmed)	Maintained
Deposit Cost (Company Outlook)	Q4 2025	—	1.72% in model (mgmt target)	New Q4 color

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
NIM & Rate Path	NIM rose to 3.75% in Q1; to 3.81% in Q2 on higher loan yields and lower interest‑bearing liability costs .	NIM 3.83%; mgmt tightened FY NIM range; aims to hold ~3.80%–3.83% through cuts with proactive deposit pricing .	Improving/stabilizing
Deposit Growth & Betas	Q1 deposits stable ($15.1B); cost of total deposits fell 15 bps q/q . Q2 deposits $15.1B; cost 1.80% .	Q3 deposits +3.4% q/q; cost 1.84%; plan to reduce in Q4; competitive market acknowledged .	Positive balances; disciplined pricing
Credit Quality	Q1 PCL $5.3M; NCOs 0.04% . Q2 PCL $4.7M; NCOs 0.12% .	PCL $1.7M; NCOs 0.13%; criticized loans down ~$49M in Q3 (mgmt Q&A) .	Improving criticized/benign losses
Operating Expense	Q1 opex down 0.3% q/q . Q2 opex +0.9% q/q .	Q3 opex +4.7% q/q with ~$2.3M non‑routine items; growth hires add run‑rate .	Higher near‑term from growth/one‑time
Growth Investments/Hiring	— (run‑rate)	29 new associates in Q3; 21 producers/support; targeted growth markets (Houston, Birmingham, Huntsville, FL Panhandle, South AL, Atlanta) .	Accelerating producer adds
Capital Return	Repurchased $15M in Q1; $11M in Q2 .	Repurchased $11M in Q3; $37M YTD; $63M remaining for 2025; openness to increase in 2026 .	Ongoing buybacks; potential increase

Management Commentary

CEO on momentum and strategy: “Our momentum continues to build… We will continue to add seasoned professionals with proven performance records to supplement our teams and expand and deepen customer relationships.”
CFO on NIM outlook and rate cuts: “We are optimistic about maintaining NIM in this general area of 3.80% to 3.83%… there might be some choppiness quarter to quarter.”
CFO on deposit pricing path: “Our outlook for fourth quarter deposit cost dropping from 1.84% to 1.72% reflects the intended price cuts… subject to competitive response and depositor pushback.”
Credit update: “We did have a nice trend down of about $49 million in criticized loans this quarter… very encouraged by that positive trend.” — Barry Harvey, Chief Credit & Operations Officer

Q&A Highlights

Expense trajectory and hiring: ~29 hires in Q3 (21 producers/support); ~$0.4M hit in Q3 with higher Q4 run‑rate; some non‑routine recruiting/signing costs embedded .
Capital return: ~$11M repurchased in Q3; $63M authorization remaining; potential to lean more into buybacks in 2026 as capital builds, balanced with loan growth .
Deposit strategy and betas: Competitive deposit market; proactive rate cuts planned with exception pricing for profitable clients; targeted promotional campaigns used to manage L/D ratio .
CRE competitiveness: More deal flow industry‑wide but thinner spreads/fees; pricing more competitive in CRE while other categories stable .

Estimates Context

EPS: Actual $0.94 vs consensus $0.932*, a slight beat (6 estimates) . Values retrieved from S&P Global.
Revenue: Company “total revenue” $202.4M; S&P Global revenue “actual” recorded at $200.7M* vs consensus $206.1M* (4 estimates), implying a miss; definitional differences (GAAP NII vs FTE, tax‑equivalent adjustments) can cause variance between company presentation and data provider’s “revenue” field . Values retrieved from S&P Global.

Consensus vs actual (Q3 2025)

Metric	Consensus*	Actual	Variance
EPS (diluted)	$0.932*	$0.94	+$0.01
Revenue ($M)	$206.1*	$200.7*	-$5.4

Values retrieved from S&P Global.

Where estimates may adjust: modest upward bias to EPS run‑rate from tighter NIM range and deposit cost actions; offset by higher opex run‑rate from producer hiring and competitive CRE pricing discussed on the call .

Key Takeaways for Investors

Core profitability is resilient: NIM stable to slightly expanding, with management guiding to hold ~3.80%–3.82% despite expected Fed cuts via proactive deposit pricing .
Funding strength is a differentiator: balanced personal/commercial deposit growth, rising NIBD mix, and CET1 at 11.88% support growth and buybacks .
Expense cadence: expect a higher Q4 run‑rate from growth hires, with non‑routine costs in Q3 rolling off; watch efficiency ratio near term .
Credit is benign and trending better: criticized loans down and NCOs low; PCL lower sequentially; watch nonaccruals which ticked up modestly .
Capital returns ongoing: $11M repurchased in Q3; $63M remaining authorization for 2025; potential for more proactive repurchases in 2026 .
Trading setup: Slight EPS beat vs a revenue shortfall; tightened NIM guidance and strong deposit trends are supports, while higher opex and competitive CRE pricing are watch‑items .

Appendix: Additional Data Points

Loans and deposits: Loans HFI +$83M q/q to $13.55B; deposits +$515M q/q to $15.63B; loans/deposits ~86.7% .
Fee highlights: Wealth management $9.8M (+1.7% q/q); mortgage banking $8.2M (‑4.9% q/q, +33.7% y/y); service charges $11.3M (+6.3% q/q) .
One‑time items: ~$900K professional fees tied to state charter conversion/strategic initiatives; $1.4M OREO reserve on a single property .
Dividend: $0.24 per share declared, payable Dec 15, 2025 .

Citations: All company figures and quotations are from Trustmark’s Q3 2025 8‑K/press release and transcript as cited above - - -. Prior‑quarter comparisons use Q1/Q2 2025 8‑Ks/press releases - -. Consensus figures marked with * are from S&P Global; Values retrieved from S&P Global.

TRUSTMARK CORP (TRMK)·Q3 2025 Earnings Summary