Please wait while we load the requested 10-Q report or click the link below:
https://last10k.com/sec-filings/report/36146/000095017022014767/trmk-20220630.htm
April 2024
April 2024
January 2024
December 2023
October 2023
September 2023
July 2023
April 2023
April 2023
February 2023
Exhibit 99.1
|
News Release |
Trustmark Corporation Announces Second Quarter 2022 Financial Results
Performance Reflects Strong Loan Growth, Solid Credit Quality and
Expanding Net Interest Margin
JACKSON, Miss. – July 26, 2022 – Trustmark Corporation (NASDAQGS: TRMK) reported net income of $34.3 million in the second quarter of 2022, representing diluted earnings per share of $0.56. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2022, to shareholders of record on September 1, 2022.
Second Quarter Highlights
Duane A. Dewey, President and CEO, stated, “Our company produced strong second quarter results with significant loan growth, expansion of the net interest margin, consistent performance from our fee businesses and solid credit quality. Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner. Our continued implementation of enhanced technology, coupled with a comprehensive program to improve efficiency, enhances Trustmark’s ability to grow and serve customers and build long-term value for our shareholders.”
Balance Sheet Management
Loans HFI totaled $10.9 billion at June 30, 2022, reflecting an increase of $547.7 million, or 5.3%, linked-quarter and $792.0 million, or 7.8%, year-over-year. Linked-quarter growth was broad-based, with increases in virtually all categories with the exception of loans secured by other real estate and state and other political subdivision loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.
Deposits totaled $14.8 billion at June 30, 2022, down $343.1 million, or 2.3%, from the prior quarter and up $138.1 million, or 0.9%, year-over-year. The linked-quarter change was principally attributable to a decline in public funds. Trustmark continues to maintain a strong liquidity position as loans HFI represented 74.1% of total deposits at June 30, 2022. Noninterest-bearing deposits represented 30.5% of total deposits at the end of the second quarter. Interest-bearing deposit costs totaled 0.11% in the second quarter, unchanged from the prior quarter. The total cost of interest-bearing liabilities was 0.17% in the second quarter of 2022, an increase of 1 basis point from the prior quarter.
During the second quarter, Trustmark repurchased $7.5 million, or approximately 263 thousand of its common shares. During the first six months of 2022, Trustmark repurchased $16.6 million, or approximately 542 thousand of its common shares. At June 30, 2022, Trustmark had $83.4 million in remaining authority under its existing stock repurchase program, which expires on December 31, 2022. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At June 30, 2022, Trustmark’s tangible equity-to-tangible assets ratio was 7.23% while its total risk-based capital ratio was 13.26%. Tangible book value per share was $19.58 at June 30, 2022, down 3.2% from the prior quarter reflecting a decline in accumulated other comprehensive income due to mark-to-market adjustments on securities available for sale resulting from the increase in market interest rates during the second quarter.
Credit Quality
Nonaccrual loans totaled $62.1 million at June 30, 2022, down $2.3 million from the prior quarter and up $10.6 million year-over-year. Other real estate totaled $3.0 million, reflecting a $153 thousand decrease from the prior quarter and decline of $6.4 million year-over-year. Collectively, nonperforming assets totaled $65.1 million at June 30, 2022, reflecting a linked-quarter decrease of $2.5 million and year-over-year increase of $4.2 million.
The provision for credit losses for loans HFI was $2.7 million in the second quarter. This provisioning was primarily driven by reserves related to loan growth and the nature and volume of the portfolio offset by improvements in macroeconomic forecasts. The provision for credit losses for off-balance sheet credit exposures was a negative $1.6 million in the second quarter. Off-balance sheet negative provision expense was primarily driven by improvements in macroeconomic forecasts. Collectively, the provision for credit losses totaled $1.1 million in the second quarter compared to a negative $2.0 million in the prior quarter and an expense of $537 thousand in the second quarter of 2021.
Allocation of Trustmark’s $103.1 million allowance for credit losses on loans HFI represented 0.88% of commercial loans and 1.14% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 0.94% at June 30, 2022. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.
Please wait while we load the requested 10-Q report or click the link below:
https://last10k.com/sec-filings/report/36146/000095017022014767/trmk-20220630.htm
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Trustmark Corp.
Trustmark Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:
Rating
Learn More
62 Net interest income-FTE for the three and six months ended June 30, 2022 decreased $6.8 million, or 5.5%, and $9.7 million, or 4.2%, respectively, when compared with the same time periods in 2021, principally due to declines in interest and fees on PPP loans, partially offset by increases in interest and fees on LHFS and LHFI, taxable interest on securities and other interest income as well as a decline in interest on deposits.
Interest income-FTE for the three and six months ended June 30, 2022 totaled $120.1 million and $226.8 million, respectively, a decrease of $8.8 million, or 6.8%, and $14.4 million, or 6.0%, respectively, while the yield on total earning assets declined 32 basis points to 3.01% and 2.85%, respectively, when compared to the same time periods in 2021.
The decrease in net interest income was principally due to the decrease in interest and fees on PPP loans, partially offset by increases in interest and fees on LHFS and LHFI, interest on securities and other interest income as well as the decrease in interest on deposits.
Interest income totaled $117.2 million and $220.9 million for the three and six months ended June 20, 2022, respectively, a decrease of $8.7 million, or 6.9%, and $14.5 million, or 6.2%, respectively, when compared to the same time periods in 2021, principally due to a decline in interest and fees on PPP loans, primarily due to PPP loans forgiven by the U.S. Small Business Administration (SBA) as well as the PPP loans sold during the second quarter of 2021, partially offset by increases in interest and fees on loans held for sale (LHFS) and LHFI primarily due to loan growth and rising interest rates, interest on securities primarily due to securities purchased and other interest income primarily due to an increase in the rate paid by the Federal Reserve Bank of Atlanta (FRBA) on reserves.
Borrowings Trustmark uses short-term borrowings, such as federal funds purchased, securities sold under repurchase agreements and short-term FHLB advances, to fund growth of earning assets in excess of deposit growth.
Average earning assets totaled $16.022...Read more
Interest on deposits for the...Read more
Failure to meet minimum capital...Read more
Total revenue, which is defined...Read more
Accounting Policies Recently Adopted and...Read more
The decrease in other real...Read more
Interest expense for the three...Read more
Trustmark's capital position remained solid,...Read more
Loans rated acceptable with risk...Read more
On December 7, 2021, the...Read more
In the July 2022 ?Summary...Read more
Trustmark is committed to managing...Read more
The Federal Reserve?s Eleventh District...Read more
While the impact of negative...Read more
Increases in food, commodities and...Read more
The decrease in total revenue...Read more
The yield on the FRBA...Read more
During the first six months...Read more
The Federal Reserve's Sixth District...Read more
The Board of Directors of...Read more
73 The following table presents...Read more
During the second quarter of...Read more
The net interest margin excluding...Read more
Noninterest Expense The following table...Read more
Other Expense The following table...Read more
Average other earning assets decreased...Read more
However, the increased federal regulation...Read more
New auto sales remained sluggish...Read more
In this regard, Trustmark benefits...Read more
Net interest income for the...Read more
Noninterest income for the Insurance...Read more
The model incorporates assumptions that...Read more
The negative PCL on off-balance...Read more
The negative PCL on off-balance...Read more
Recent Economic and Industry Developments...Read more
Management considers disciplined expense management...Read more
The following table presents changes...Read more
Trustmark cannot predict what the...Read more
As a general matter, the...Read more
61 The following table reconciles...Read more
During the pandemic, extraordinary measures...Read more
The decrease in the gain...Read more
General Banking Net interest income...Read more
These scenarios are incorporated into...Read more
Liquidity Liquidity is the ability...Read more
Noninterest expense for the three...Read more
These ratios differ from capital...Read more
64 The following table provides...Read more
At June 30, 2022, there...Read more
Off-Balance Sheet Credit Exposures Trustmark...Read more
Credit risk participation agreements arise...Read more
At June 30, 2022, available...Read more
Bank Card and Other Fees...Read more
Average deposits totaled to $14.990...Read more
Other construction loans increased $63.4...Read more
In addition, the FRB increased...Read more
Additionally, as interest rates increase,...Read more
Noninterest income for the Wealth...Read more
The Adjustable Interest Rate (LIBOR)...Read more
Representing a significant component of...Read more
During the second quarter of...Read more
The dividend is payable September...Read more
Mortgage Banking, Net The following...Read more
At June 30, 2022, available...Read more
In the following tables, LHFI...Read more
Trustmark maintains a separate ACL...Read more
Under this authority, Trustmark repurchased...Read more
Under this authority, Trustmark repurchased...Read more
During the first six months...Read more
81 Trustmark maintains a relationship...Read more
Loan sales totaled $337.4 million...Read more
Tangible common equity, as defined...Read more
Because GAAP does not include...Read more
During the first six months...Read more
This approach applies to all...Read more
Other Income, Net The following...Read more
The economic value-at-risk may indicate...Read more
Increased federal regulation of the...Read more
Nearly all Districts noted modest...Read more
Liquidity strategy also includes the...Read more
In 2006, Trustmark enhanced its...Read more
The trust preferred securities mature...Read more
Trustmark believes these measures are...Read more
Despite the importance of these...Read more
Also, there may be limits...Read more
Consistent cash flows from operations...Read more
To be categorized in this...Read more
The estimates provided do not...Read more
Based upon quarter-end current and...Read more
The PCL on off-balance sheet...Read more
Trustmark produced strong financial results...Read more
Adjustments to the ACL on...Read more
Adjustments to the ACL on...Read more
77 Nonperforming Assets The table...Read more
Available for sale securities are...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Trustmark Corp provided additional information to their SEC Filing as exhibits
Ticker: TRMK
CIK: 36146
Form Type: 10-Q Quarterly Report
Accession Number: 0000950170-22-014767
Submitted to the SEC: Thu Aug 04 2022 4:20:52 PM EST
Accepted by the SEC: Thu Aug 04 2022
Period: Thursday, June 30, 2022
Industry: National Commercial Banks