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Mar 31, 2020
Trustmark Q1 2020 Earnings Report
Trustmark's financial performance was impacted by the COVID-19 pandemic, with increased credit loss provisions and a voluntary early retirement program, but also benefited from positive mortgage servicing hedge ineffectiveness and growth in fee businesses.
Key Takeaways
Trustmark Corporation reported a net income of $22.2 million for Q1 2020, with diluted earnings per share of $0.35. The results were affected by a $27.4 million provision for credit losses due to the COVID-19 pandemic and a $4.4 million pre-tax charge for a voluntary early retirement program. Positive net mortgage servicing hedge ineffectiveness of $9.9 million partially offset these impacts.
Net income totaled $22.2 million, with diluted earnings per share of $0.35.
Provision and expense for credit losses totaled $27.4 million, primarily due to the COVID-19 pandemic.
A one-time, pre-tax charge of $4.4 million was incurred related to a voluntary early retirement program.
Positive net mortgage servicing hedge ineffectiveness of $9.9 million increased earnings.
Trustmark
Trustmark
Trustmark Revenue by Segment
Revenue by Segment
Wealth management Revenue
CapyFin.com Forward Guidance
While no specific forward guidance is provided, the report highlights a commitment to supporting customers and communities during the COVID-19 pandemic, maintaining a strong capital position, and focusing on profitable revenue growth.
Positive Outlook
- Proactive response to the COVID-19 pandemic to support customers, associates, and communities.
- Branches continue to offer drive-thru service, and ATM and ITM networks remain accessible.
- Approximately 45% of Trustmark associates are working remotely.
- Working with customers to provide flexibility during uncertain circumstances.
- Participating in the SBA’s Paycheck Protection Program.
Challenges Ahead
- Economic uncertainties related to the COVID-19 pandemic.
- Increased provision for credit losses due to the COVID-19 pandemic.
- Suspension of share repurchase program to maintain flexibility.
- Potential for continued volatility in the credit and financial markets.
- Potential impact of the COVID-19 pandemic on borrowers' financial performance.