NASDAQ$TRMK

Trustmark Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Performance reflected continued loan and deposit growth, solid credit quality, and diversified fee income.

Trustmark Corporation reported a net income of $34.0 million, or $0.56 per diluted share, for Q3 2023. Excluding a litigation settlement expense, net income totaled $38.9 million, or $0.64 per diluted share. Loans held for investment increased by 1.6% from the prior quarter, and deposits expanded by 1.3%.

  • Loans held for investment increased 1.6% from the prior quarter to $12.8 billion.
  • Deposits expanded 1.3% linked-quarter to $15.1 billion.
  • Net interest income totaled $141.9 million, resulting in a net interest margin of 3.29%.
  • Credit quality remained solid with net charge-offs totaling $3.6 million, or 0.11% of average loans.

Headline financials

Total Revenue

$191M

Previous: $189M+1.1%
EPS (adj)

$0.64

Previous: $0.69-7.2%
Net Interest Margin

3.3%

Previous: 3.5%-6.0%
Total Capital Ratio

12.1%

Previous: 12.8%-5.8%
CET1 Ratio

9.9%

Previous: 10.6%-7.0%
Capital Expenditures

-$33.1M

Previous: -$20.7M-60.3%
Free Cash Flow

$924K

Previous: $21.8M-95.8%
Net Income

$34M

Previous: $42.5M-19.8%
Operating Income

$91.7M

Previous: $160M-42.6%
Gross Profit

$183M

Previous: $176M+3.8%
Cash & Equivalents

$750M

Previous: $480M+56.5%
Total Assets

$18.4B

Previous: $17.2B+7.0%
Stock-Based Comp

$1.49M

Previous: $1.23M+21.6%

Revenue & EPS history

Trustmark · Revenue · Quarterly

$191M

Q3 2023+1.1%vs Q3 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 implementing cost savings initiatives and technology enhancements to improve efficiency and customer service, positioning the company to respond to changing economic conditions and create long-term value for shareholders.

Tailwinds

  • Continued loan and deposit growth.
  • Stable net interest income.
  • Strong performance in the insurance business.
  • Solid credit quality.
  • Implementation of technology plans for conversion of deposit/teller/customer information system.

Headwinds

  • Changes in the level of nonperforming assets and charge-offs.
  • Actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates.
  • Material changes in the level and/or volatility of market interest rates.
  • The impacts related to or resulting from recent bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions.
  • Changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements.

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 Q3 2023

Historical avgQ3 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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