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Mar 31, 2023
Trustmark Q1 2023 Earnings Report
Reported solid loan and deposit growth, strong diversified business lines performance, and diligent expense management.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- Challenging financial services environment.
- Increasingly competitive deposit costs during the quarter.
- Compressed net interest margin.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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