Trustmark Reports Third-Quarter Net Income of $58.1 Million

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter 2026 net interest income (FTE) rose 1.2% linked-quarter to $170.6 million as the firm sold 34 branch properties and leased the locations back.

Trustmark Corporation (TRMK), a financial services company with offices across Alabama, Florida, Georgia, Mississippi, Tennessee and Texas, reported net income of $58.1 million, or $1.00 a share, and revenue of $207.1 million in the third quarter of 2026.

The quarter included two offsetting pre-tax items. The bank sold 34 bank branch properties and entered triple-net leases on each, generating a $61.5 million pre-tax gain after transaction costs. It then reclassified held-to-maturity securities to available-for-sale, sold $629.5 million of lower-yielding securities with a weighted-average yield of about 1.4%, and purchased $628.0 million of securities with a weighted-average yield of about 5.0%, producing a $61.5 million pre-tax loss that offset the sale-leaseback gain.

Revenue totaled $207.1 million, down 0.5% from the prior quarter. The linked-quarter change reflected a decline in noninterest income that was only partly offset by growth in net interest income.

Net interest income (FTE) expanded to $170.6 million, a 1.2% linked-quarter increase after a 3.1% linked-quarter increase in the second quarter. The net interest margin held at 3.84%.

Loans held for investment reversed to a 0.3% linked-quarter decline to $13.9 billion after a 0.3% increase in the second quarter. Year-over-year, loans HFI were up 2.4%. The company said production remained solid but growth was offset by elevated commercial loan payoffs.

Deposits totaled $16.1 billion, down 0.1% from the prior quarter after a 2.3% linked-quarter increase in the second quarter. Excluding an intentional $197.5 million decline in brokered deposits, deposits rose 1.2% linked-quarter. Interest-bearing deposit costs rose 9 bps to 2.09%; the cost of total deposits rose 8 bps to 1.67%. Loans HFI represented 86.4% of total deposits.

Noninterest income fell 7.2% to $39.5 million. Mortgage banking revenue declined 11.6% to $7.9 million on reduced gain on sale of loans; mortgage loan production was $421.4 million. Other, net fell 53.6% to $1.7 million. Wealth management revenue rose 2.2% to $11.2 million. Service charges on deposit accounts were $10.6 million.

Noninterest expense rose 0.6% to $134.4 million. Salaries and employee benefits rose 2.3% to $74.7 million. Net occupancy-premises expense rose 10.7% to $8.6 million after the branch sale-leaseback. Other expense declined 10.4% to $14.3 million.

The net provision for credit losses was $2.3 million, compared with $6.0 million in the second quarter excluding a $9.2 million release related to a mortgage-loan sale. Net charge-offs were $1.0 million, or 0.03% of average loans. Nonperforming assets rose 4.0% to $57.0 million, or 0.40% of loans HFI and HFS, after a 47.3% linked-quarter decline in the second quarter. Nonaccrual loans were $54.3 million. The allowance for credit losses on loans HFI was $148.3 million, or 1.07% of loans HFI.

The CET1 ratio was 11.98% and the total risk-based capital ratio 14.57%. Tangible book value per share was $30.42. The company repurchased $20.1 million of common stock in the third quarter and $60.9 million in the first nine months of 2026 under a $100.0 million authorization through December 31, 2026. The board declared a quarterly cash dividend of $0.25 a share.