NASDAQ$TRMK

Trustmark Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported solid loan and deposit growth, strong diversified business lines performance, and diligent expense management.

Trustmark Corporation reported a net income of $50.3 million for Q1 2023, with diluted earnings per share of $0.82. The company saw continued loan and deposit growth, strong credit quality, and an increase in noninterest income driven by mortgage banking, insurance, and wealth management revenue. However, the overall strong performance was impacted by increasingly competitive deposit costs, which compressed the net interest margin.

  • Loan and deposit growth continued during the first quarter.
  • Credit quality remained strong.
  • Noninterest income increased linked-quarter, reflecting the strength of diversified business lines.
  • Expense discipline continued, with noninterest expense decreasing linked-quarter.

Headline financials

Total Revenue

$189M

Previous: $153M+23.1%
EPS (adj)

$0.82

Previous: $0.47+74.5%
Tangible Equity Ratio

6.3%

No prior period
Total Capital Ratio

11.9%

Previous: 13.5%-11.7%
Capital Expenditures

-$17.1M

Previous: -$5.99M-185.5%
Free Cash Flow

$33.2M

Previous: $23.2M+43.0%
Net Income

$50.3M

Previous: $29.2M+72.2%
Operating Income

$116M

Previous: $141M-17.3%
Gross Profit

$186M

Previous: $153M+21.7%
Cash & Equivalents

$1.3B

Previous: $1.92B-32.4%
Total Assets

$18.9B

Previous: $17.4B+8.2%
Stock-Based Comp

$1.72M

Previous: $1.25M+37.8%

Revenue & EPS history

Trustmark · Revenue · Quarterly

$189M

Q1 2023+23.1%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Trustmark · $24.1M total across 3 segments · Q3 2020

  • Bank Card & Fees
    $8.84M+5.9%
  • Wealth Management
    $7.68M-0.2%
  • Service Charges
    $7.58M-31.5%

Forward guidance

Trustmark is focused on efficiency enhancements and technology investments to better serve customers, with a balance sheet well-positioned for additional interest rate increases and solid credit quality. The company is implementing its FIT2GROW program to enhance growth and customer service.

Tailwinds

  • Refocusing community bank efforts on commercial, small business, and consumer lines of business.
  • Rolling out new technology to enhance the customer experience.
  • Aiming to improve efficiency and productivity.
  • Atlanta loan production office is fully functioning and focused on various lending areas.
  • Balance sheet is well-positioned for additional increases in interest rates.

Headwinds

  • Challenging financial services environment.
  • Increasingly competitive deposit costs during the quarter.
  • Compressed net interest margin.
  • Uncertainty in the broader banking industry.
  • Lower net interest income.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.5%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+9.8%

Q1 2024

Best reaction

-14.1%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-2.6%-3.0%
Q4 2025+2.3%+4.5%+3.5%
Q3 2025-2.0%-3.4%+0.5%
Q2 2025-1.2%-1.6%+2.7%
Q1 2025+0.2%-0.4%+2.4%
Q4 2024+2.4%+1.1%+0.2%
Q3 2024+2.0%+0.9%+13.2%
Q2 2024-1.5%+3.9%-7.4%
Q1 2024+9.8%+12.3%+10.6%
Q4 2023-1.6%+0.4%-4.4%
Q3 2023-6.6%-5.3%+10.8%
Q2 2023+6.5%+8.5%-1.9%
Q1 2023+0.5%+0.5%-9.7%
Q4 2022-14.1%-13.8%-9.4%
Q3 2022+0.5%+5.8%+6.3%
Q2 2022+3.8%+5.9%+7.6%
Q1 2022-2.4%-4.7%-1.6%
Q4 2021-3.2%-4.2%-7.9%
Q3 2021-8.5%-6.2%-2.4%
Q2 2021-1.9%-2.0%+5.0%
Q1 2021-0.6%-2.0%+1.8%
Q4 2020-7.1%-10.2%+2.1%
Q3 2020-5.4%-3.7%+8.9%
Q2 2020+5.3%+0.0%+6.9%
Q1 2020+7.3%+0.3%-3.8%
Q4 2019-2.3%-3.7%-14.7%
Q3 2019-2.0%-1.8%-2.1%
Q2 2019+8.7%+10.6%+5.4%
Q1 2019+3.8%+5.5%-2.9%
Q4 2018+1.6%+4.1%+18.2%
Q3 2018-5.8%-3.7%+1.8%
Q2 2018+0.0%+0.6%+2.3%
Q1 2018+1.6%+1.4%+3.5%
Q4 2017-1.5%-3.6%-4.6%
Q3 2017+0.3%+1.1%-1.3%
Q2 2017+0.1%-1.1%-6.6%
Q1 2017+3.0%+1.2%-4.3%
Q4 2016+2.5%+2.1%+3.2%
Q3 2016+0.0%-1.3%+23.4%
Q2 2016+1.9%+2.2%+9.5%
Q1 2016+0.6%
Q4 2015+4.6%
Q3 2015+2.2%
Q2 2015+0.0%
Q1 2015+2.0%
Q4 2014-7.3%
Q3 2014+2.5%
Q2 2014+1.3%
Q1 2014-1.4%
Q4 2013-3.9%
Q3 2013+2.3%
Q2 2013-0.9%
Q1 2013+5.9%
Q4 2012-3.3%
Q3 2012-0.4%
Q2 2012-2.3%
Q1 2012+1.0%
Q4 2011+0.3%
Q3 2011-4.3%
Q2 2011+0.3%
Q1 2010-0.0%
Q1 2011+1.7%
Q4 2009+1.0%
Q4 2010+1.0%
Q4 2008+1.0%
Q3 2009+0.3%
Q3 2010+0.3%
Q2 2009-6.2%
Q2 2010-6.2%

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