NASDAQ$TRMK

Trustmark Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced second quarter financial results reflecting the sale of Fisher Brown Bottrell Insurance, Inc. (FBBI) and balance sheet restructuring actions to improve operating performance.

Trustmark reported net income of $73.8 million in the second quarter of 2024, with diluted earnings per share of $1.20. Adjusted continuing operations net income was $40.5 million, or $0.66 per diluted share. The company completed significant balance sheet restructuring to position the company for improved operating performance.

  • Completed sale of FBBI, producing a gain on sale of $228.3 million ($171.2 million, net of taxes).
  • Loans held for investment (HFI) increased $97.5 million, or 0.7%, from the prior quarter to $13.2 billion.
  • Deposits expanded $124.3 million, or 0.8%, linked-quarter to $15.5 billion.
  • Net interest income (FTE) increased $8.1 million, or 6.0%, linked-quarter to $144.3 million, resulting in a net interest margin of 3.38%, up 17 basis points from the prior quarter.

Headline financials

Total Revenue

-$257K

Previous: $193M-100.1%
EPS

$1.20

Previous: $0.74+62.2%
ROATE

13.7%

No prior period
ROAA

1.2%

No prior period
Net Interest Margin

3.8%

Previous: 3.3%+12.9%
Tangible Equity Ratio

9.1%

No prior period
Total Capital Ratio

14.0%

Previous: 12.1%+15.6%
CET1 Ratio

11.5%

Previous: 9.9%+16.9%
Capital Expenditures

-$11.3M

Previous: -$25.6M+56.0%
Free Cash Flow

$62.6M

Previous: $19.4M+221.8%
Net Income

$73.8M

Previous: $45M+63.9%
Operating Income

-$123M

Previous: $99.3M-223.9%
Gross Profit

-$257K

Previous: $185M-100.1%
Cash & Equivalents

$822M

Previous: $832M-1.2%
Total Assets

$18.5B

Previous: $18.4B+0.2%
Stock-Based Comp

$1.38M

Previous: $1.56M-11.8%

Revenue & EPS history

Trustmark · Revenue · Quarterly

-$257K

Q2 2024-100.1%vs Q2 2023
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

The company expects improved operating performance into the second half of the year and beyond, driven by balance sheet restructuring and solid performance in the core banking franchise.

Tailwinds

  • Completed sale of insurance agency.
  • Completed significant balance sheet restructuring.
  • Continued loan growth.
  • Continued deposit growth.
  • Disciplined expense management.

Headwinds

  • Non-recurring events impacted GAAP results.
  • Mortgage banking revenue decreased linked-quarter.
  • GAAP noninterest income was negative.
  • GAAP revenue was negative.
  • Securities gains (losses), net was negative.

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 Q2 2024

Historical avgQ2 2024

-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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