What is Trustmark Corporation Net Worth 2024: Financial Performance Overview

Trustmark Corporation net worth reflects its financial strength through key areas such as loans, deposits, and revenue growth.

By examining these elements, Ando Money provides insight into the bank’s financial performance and strategic decisions.

Quick Facts

What is the Net Worth/Market Cap of Trustmark Corporation in 2024?

As of September 2024, Trustmark Corporation has a market capitalization of $1.95 billion. This places Trustmark in the mid-range among regional banks, demonstrating steady growth and financial stability despite market fluctuations.

While Trustmark’s market cap is notable, it is smaller compared to the largest financial institutions globally. However, it continues to hold a strong presence in the regional banking sector in the southern United States.

For comparison, here are a few banks in a similar range:

• Regions Financial Corporation
• Pinnacle Financial Partners
• First Horizon National Corporation
• Synovus Financial Corp

When discussing banks’ market performance, exploring the largest banks is essential for understanding the broader landscape of financial giants.

Explore the largest banks in the world.

Financial Performance Overview

Revenue Growth and Its Role in Financial Performance

Trustmark Corporation has seen substantial revenue growth, driven by key segments of its business. Noninterest income is one of the most important contributors to this growth.

For instance, in the second quarter of 2024, Trustmark’s adjusted revenue totaled $179.3 million, marking a 4.1% increase compared to the prior quarter.

This performance reflects improvements in both interest income and noninterest income sources, which include bank card fees, wealth management services, and deposit account charges.

One significant factor that contributed to this revenue growth was Trustmark’s strategic decision to sell Fisher Brown Bottrell Insurance, generating a gain of $228.3 million.

This sale not only provided an immediate boost to net income but also allowed the bank to focus on its core banking activities, such as loans and deposits.

Loan Portfolio and Deposit Base as Key Indicators of Financial Health

Trustmark’s loan portfolio and deposit base are critical indicators of the bank’s overall financial health. As of the second quarter of 2024, loans held for investment (HFI) increased by $97.5 million, or 0.7%, bringing the total to $13.2 billion.

Excluding the sale of nonperforming loans, this figure would have increased by $152.4 million. These increases were driven by growth in construction and land development loans, which are important revenue generators.

In terms of deposits, Trustmark experienced a 0.8% increase, adding $124.3 million to reach a total of $15.5 billion.

This growth is vital as it strengthens Trustmark’s liquidity and allows it to fund its loan activities more efficiently. The bank’s loan-to-deposit ratio, a measure of how well deposits are being converted into loans, stood at 85.1% by the end of June 2024.

This ratio is an indicator of healthy bank operations and reflects Trustmark’s ability to maintain a balanced approach to lending and deposit management.

Strategic Transactions and Their Financial Implications

Trustmark’s financial performance in 2024 was shaped by several key strategic decisions. Aside from the sale of Fisher Brown Bottrell Insurance, the bank undertook a restructuring of its securities portfolio.

Trustmark sold $1.6 billion worth of securities, incurring a loss of $182.8 million, which was offset by purchasing $1.4 billion in higher-yielding securities.

This move was aimed at improving long-term returns, with the newly acquired securities offering an average yield of 4.85%, compared to 1.36% on the previous portfolio.

Additionally, Trustmark sold a portfolio of delinquent and nonperforming loans totaling $56.2 million, resulting in a loss of $13.4 million.

However, this sale significantly reduced the bank’s nonaccrual loans by 55%, down to $44.3 million, which positively impacts Trustmark’s overall credit quality.

Net Interest Income and Margin Growth

Another key aspect of Trustmark’s financial strength is its net interest income. In the second quarter of 2024, net interest income increased by 6.0% compared to the previous quarter, reaching $144.3 million.

The bank’s net interest margin, which is the difference between the interest Trustmark earns on loans and what it pays on deposits, improved by 17 basis points to 3.38%.

This growth in net interest margin can be attributed to higher yields on both securities and loans, coupled with relatively stable interest expenses on deposits. As a result, Trustmark has been able to sustain profitability while controlling costs related to its liabilities.

Credit Quality and Financial Stability

One of the most reassuring aspects of Trustmark’s 2024 performance is the improvement in credit quality. Nonaccrual loans declined significantly by 55% linked-quarter, bringing the total down to $44.3 million.

This decrease is directly linked to the bank’s strategic sale of delinquent mortgage loans, which reduced the number of nonperforming assets and improved overall loan quality.

Trustmark also increased its allowance for credit losses (ACL), which represented 1.18% of loans held for investment by the end of June 2024.

This ensures that the bank has a sufficient buffer to cover potential loan defaults, which is critical for maintaining financial stability.

Capital Ratios and Shareholder Value

Trustmark has managed to maintain strong capital ratios, ensuring its long-term financial sustainability. Its Common Equity Tier 1 (CET1) capital ratio stood at 10.92%, while the total risk-based capital ratio was 13.29%.

Both metrics exceed regulatory requirements and reflect the bank’s conservative approach to managing risk.

Trustmark’s tangible equity to tangible assets ratio also improved to 8.52%, up from the previous quarter, indicating a solid financial foundation.

Additionally, tangible book value per share increased by 14.5% from the prior quarter, reaching $25.23.

These figures not only underscore Trustmark’s financial stability but also highlight its commitment to providing value to shareholders.

The bank’s consistent dividend payouts and authorized stock repurchase program further demonstrate its focus on enhancing shareholder returns.

FAQs about Trustmark Corporation

What services does the bank offer?

The bank offers personal and business banking, wealth management, and insurance services. It includes checking, savings, loans, mortgages, and investment advice. Specialized services like trust and estate management are also available.

Where is the bank headquartered?

The bank’s headquarters is in Jackson, Mississippi. It serves states like Mississippi, Alabama, Florida, Tennessee, and Texas through its subsidiaries.

Who is the CEO of the bank?

The CEO is Duane A. Dewey. The bank focuses on growth, acquisitions, and restructuring to improve financial performance.

How long has the bank been in business?

It has been in business for over 130 years, starting in 1889 as The Jackson Bank.

What recent major transactions has the bank completed?

It sold Fisher Brown Bottrell Insurance, gaining $228.3 million. It also restructured its securities portfolio, selling $1.6 billion and reinvesting in higher-yield securities.

What is the bank’s capital ratio?

Its CET1 ratio is 10.92%, and its total risk-based capital ratio is 13.29%.

Does the bank pay dividends?

Yes, it declared a quarterly cash dividend of $0.23 per share in 2024.

How does the bank manage its loan portfolio?

It manages a $13.2 billion loan portfolio. Growth is focused on real estate and construction loans. It actively reduces nonperforming loans.

Conclusion

Trustmark Corporation stands out among the leading banks in the US. Want to know more? Share your thoughts or explore further at andomoney.com. We’d love to hear from you!