Loading...
•
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%.
Revenue by Segment
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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...