Trustmark (TRMK) Q4 2024 earnings summary

Executive summary

• 2024 was a transformational year, marked by the sale of the insurance agency, balance sheet restructuring, and expanded sales and service initiatives, resulting in significantly improved earnings and profitability.

• Enhanced financial performance led to higher capital levels, increased dividends, and renewed share repurchase activity.

• Q4 net income was $56.3 million, up 9.7% sequentially, with diluted EPS of $0.92; full-year adjusted net income was $186.3 million, up 17% year-over-year.

• Board increased quarterly dividend by 4.3% to $0.24 per share and resumed share repurchases, buying back $7.5 million in Q4.

Financial highlights

• Q4 revenue was $196.8 million, up 2.4% sequentially; full-year adjusted revenue was $740.5 million, up 5.6% year-over-year.

• Net interest income for Q4 was $158.4 million, with a net interest margin of 3.76%, up 7 basis points sequentially; 2024 NIM was 3.51%, up 19 bps year-over-year.

• Noninterest income in Q4 was $41 million, up 9% sequentially; full-year noninterest income rose 5.2% to $156.1 million.

• Noninterest expense in Q4 was $124.4 million, up 0.9% sequentially; full-year noninterest expense declined 0.4% to $485.7 million.

• Loans held for investment increased 1.1% year-over-year to $13.1 billion; deposits decreased 3.0% to $15.1 billion, reflecting intentional reductions in brokered and public fund deposits.

Outlook and guidance

• 2025 guidance projects low single-digit growth in loans and deposits (excluding brokered), stable securities, and mid-to-high single-digit growth in net interest income.

• Net interest margin expected in the 3.75%–3.85% range; noninterest income and expense both expected to rise mid-single digits.

• Provision for credit losses expected to remain stable relative to 2024.

• Continued disciplined capital deployment, with a focus on organic loan growth, technology investments, and potential market expansion.