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Jun 30, 2023
Trustmark Q2 2023 Earnings Report
Trustmark reported solid financial results driven by loan and deposit growth, increased net interest income, and expansion in fee-based businesses.
Key Takeaways
Trustmark Corporation reported a net income of $45.0 million for Q2 2023, with diluted earnings per share of $0.74. The corporation saw growth in loans and deposits, alongside expansion in net interest income and noninterest income.
Loans held for investment increased by $116.8 million, or 0.9%, to $12.6 billion.
Deposits expanded by $130.2 million, or 0.9%, to $14.9 billion.
Total revenue increased by $4.5 million, or 2.4%, to $193.5 million.
Net interest income increased by $2.2 million to $143.3 million, with a net interest margin of 3.33%.
Trustmark
Trustmark
Trustmark Revenue by Segment
Revenue by Segment
Wealth management Revenue
CapyFin.com Forward Guidance
Trustmark is focused on improving efficiency, enhancing its ability to grow and serve customers, and building long-term value for shareholders.
Positive Outlook
- Implementation of technology plans continued with conversion of credit card platform.
- Advancements in loan underwriting system were implemented.
- Plans for conversion of deposit system continued.
- Work continued on the design of sales through service process for retail branch network.
- Atlanta-based Equipment Finance division continues to gain traction.
Challenges Ahead
- Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 23.2% of total deposits at June 30, 2023.
- Decrease in the net interest margin was due to increased costs of interest-bearing deposits which were partially offset by increased yields on the loans HFI and HFS portfolio and securities portfolio.
- Mortgage banking revenue totaled $6.6 million in the second quarter, a decrease of $1.0 million linked-quarter and $1.5 million year-over-year.
- Noninterest expense totaled $132.2 million in the second quarter, up 3.0%, from the prior quarter
- Fifth Circuit Court of Appeals may not approve the Settlement Agreement.