Trustmark Corporation (TRMK) | Investment Case

1. Company Snapshot

1.a. Company Description

Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States.The company operates through three segments: General Banking, Wealth Management, and Insurance.It offers checking, savings, and money market accounts; certificates of deposits and individual retirement accounts; financing for commercial and industrial projects, income-producing commercial real estate, owner-occupied real estate, and construction and land development; and installment and real estate loans, and lines of credit, as well as treasury management services.

The company also provides mortgage banking services, including construction financing, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing.In addition, it provides wealth management and trust services, such as administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services.Further, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; and life and health insurance, and personal line policies for individual customers.

As of December 31, 2021, it operated 167 full-service branches and 13 limited service branches; and 198 automated teller machines and 69 interactive teller machines.The company was founded in 1889 and is headquartered in Jackson, Mississippi.

Show Full description

1.b. Last Insights on TRMK

Trustmark Corporation's recent performance was driven by strong Q2 earnings, with the company reporting $0.92 per share, surpassing estimates. A strategic shift away from brokered deposits and securities aims to boost profitability and net interest margin. Healthy loan growth, limited exposure to riskier assets, and high asset quality also contributed positively. Additionally, the company's returns on assets and equity exceed industry benchmarks. Management's efforts to improve financial performance have earned Trustmark a Zacks Rank #1 (Strong Buy) rating, indicating a promising outlook.

1.c. Company Highlights

Last Price	39.4
Change Percentage	-0.78%
Open	39.52
Previous Close	39.71
Market Cap ( Millions)	2362
Volume	99382
Year High	41.34
Year Low	29.77
M A 50	38.55
M A 200	36.82

FCF Yield	11.91%
Dividend Yield	2.44%
ROE	10.90%
Debt / Equity	24.55%
Net Debt / EBIDTA	-68.48%
Price To Book	1.13
Price Earnings Ratio	10.71
Price To FCF	8.4
Price To sales	2.09
EV / EBITDA	6.88

2. Trustmark Corporation Delivers Solid Quarterly Earnings

Trustmark Corporation reported a net income of $56.8 million, representing fully diluted EPS of $0.94 a share, up 2.2% from the prior quarter and 11.9% from the prior year. The EPS figure came in slightly below estimates of $0.95. Loans held for investment increased $83 million or 0.6% linked quarter and $448 million or 3.4% year-over-year, indicating a steady growth trajectory. The total cost of deposits in the quarter were up 1.84% or 4 basis points linked quarter, a factor that could impact the net interest margin.

Publication Date: Nov -30

                                    📋 Highlights
                                    Net Income Growth::
                                                Increased to $56.8M, with EPS rising to $0.94 (+11.9% YoY, +2.2% QoQ).
Loan Portfolio Expansion::
                                                Loans rose $448M YoY (3.4%) and $83M QoQ (0.6%), driven by CRE and commercial banking growth.
Deposit Cost Management::
                                                Total cost of deposits up 1.84% QoQ, but expected to drop to 1.72% in Q4 due to rate cuts and promotional campaigns.
Capital Deployment::
                                                $11M stock repurchase and $0.24/share dividend, alongside M&A and organic growth in key markets like Houston and Atlanta.

                                

Net Interest Margin Guidance Tightened

The company tightened the range of its guidance for net interest margin to 3.78% to 3.82% for the year and affirmed its expectations for net interest income to increase in the high single digits for 2025. This guidance suggests a stable outlook for the company's core earnings driver. The net interest margin is expected to remain around 3.80% to 3.83%, with potential short-term headwinds due to the asset-sensitive balance sheet. Analysts estimate next year's revenue growth at 4.6%, indicating a positive outlook for the company's top-line performance.

Capital Deployment and Shareholder Returns

The company repurchased $11 million of Trustmark common stock and declared a quarterly cash dividend of $0.24 per share, demonstrating its commitment to returning capital to shareholders. With a dividend yield of 2.44%, the stock offers an attractive income stream for investors. The company's Price-to-Tangible Book Value (P/TBV) is around 1.11, indicating a relatively reasonable valuation.

Loan Portfolio and Deposit Growth

The company is focused on growing its loan portfolio, while maintaining a stable loan-to-deposit ratio in the mid- to high-80s. New loan pricing varies by category, but has become more competitive in the CRE category. The company has added producers in various business lines, including equipment finance, CRE, corporate banking, and commercial banking, with a focus on specific growth markets. The deposit cost ratio is expected to decrease from 1.84% to 1.72% in the fourth quarter, reflecting the intended price cut or deposit rate cuts as the Fed cuts rates.

Outlook and Valuation

The company's guidance suggests a positive outlook for EPS growth, with expectations for high single-digit growth. With a P/E Ratio of 10.58, the stock appears to be reasonably valued. The ROE of 10.9% indicates a decent return on equity, while the ROIC of 6.25% suggests a relatively efficient use of capital. Overall, Trustmark Corporation's solid quarterly earnings, stable net interest margin guidance, and commitment to shareholder returns make a compelling case for investors.

3. NewsRoom

Fisher Asset Management LLC Purchases 49,540 Shares of Trustmark Corporation $TRMK

Dec -04

Source: defenseworld.net

Edgestream Partners L.P. Decreases Stake in Trustmark Corporation $TRMK

Dec -03

Source: defenseworld.net

American Century Companies Inc. Has $15.76 Million Position in Trustmark Corporation $TRMK

Dec -03

Source: defenseworld.net

Barnes Pettey Financial Advisors LLC Increases Stock Position in Trustmark Corporation $TRMK

Nov -23

Source: defenseworld.net

Trustmark Corporation (TRMK) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

Trustmark (TRMK) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Oct -29

Source: zacks.com

Trustmark (TRMK) Misses Q3 Earnings and Revenue Estimates

Oct -28

Source: zacks.com

Trustmark Corporation Announces Third Quarter 2025 Financial Results

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.56%)

6. Segments

General Banking

Expected Growth: 3.5%

Trustmark Corporation's General Banking segment growth of 3.5% is driven by a combination of factors, including a strong loan portfolio growth, increased deposit generation, and a favorable interest rate environment. Additionally, the segment has benefited from effective cost management, improved operational efficiency, and strategic investments in digital banking capabilities.

Insurance

Expected Growth: 3.8%

Trustmark Corporation's 3.8% growth in insurance is driven by increasing demand for voluntary benefits, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved customer experience, and competitive pricing have contributed to its growth. Furthermore, the rising need for employee benefits and retirement plans among small and medium-sized businesses has also fueled growth in this segment.

Wealth Management

Expected Growth: 4.2%

Wealth Management at Trustmark Corporation grew 4.2% driven by increasing demand for investment services, strategic partnerships, and expansion into new markets. Additionally, the segment benefited from a rise in assets under management, fueled by a strong market performance and effective cross-selling of financial products.

7. Detailed Products

Voluntary Benefits

Trustmark Corporation offers a range of voluntary benefits, including accident insurance, critical illness insurance, and hospital indemnity insurance, which provide financial protection to employees in the event of unexpected medical expenses.

Payroll Deduction Insurance

Trustmark Corporation offers payroll deduction insurance, which allows employees to purchase insurance products through payroll deductions, making it easy to budget for insurance premiums.

Group Life Insurance

Trustmark Corporation offers group life insurance, which provides a death benefit to beneficiaries in the event of an employee's death.

Disability Insurance

Trustmark Corporation offers disability insurance, which provides income replacement benefits to employees who become unable to work due to illness or injury.

Dental Insurance

Trustmark Corporation offers dental insurance, which provides coverage for dental care, including routine cleanings, fillings, and major dental work.

Vision Insurance

Trustmark Corporation offers vision insurance, which provides coverage for eye exams, glasses, and contact lenses.

8. Trustmark Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Trustmark Corporation is moderate due to the presence of alternative insurance providers and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers is low for Trustmark Corporation as customers have limited negotiating power due to the company's strong brand presence and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Trustmark Corporation as the company relies on a network of agents, brokers, and other intermediaries to distribute its products, giving them some negotiating power.

Threat Of New Entrants

The threat of new entrants is low for Trustmark Corporation due to the high barriers to entry in the insurance industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Trustmark Corporation due to the competitive nature of the insurance industry, with many established players vying for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.29%
Debt Cost	6.37%
Equity Weight	60.71%
Equity Cost	7.82%
WACC	7.25%
Leverage	64.72%

11. Quality Control: Trustmark Corporation passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

United Bancshares

A-Score: 7.5/10

Value: 8.3

Growth: 4.3

Quality: 7.8

Yield: 6.0

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

Richmond Mutual Bancorporation

A-Score: 7.2/10

Value: 7.6

Growth: 8.1

Quality: 5.1

Yield: 8.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

Univest Financial

A-Score: 6.3/10

Value: 7.2

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Trustmark

A-Score: 6.2/10

Value: 6.3

Growth: 4.8

Quality: 5.9

Yield: 5.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

First US Bancshares

A-Score: 5.1/10

Value: 6.9

Growth: 5.3

Quality: 4.2

Yield: 4.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

Codorus Valley

A-Score: 5.1/10

Value: 7.1

Growth: 6.0

Quality: 7.4

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.67%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.25%

Trustmark Corporation - US8984021027

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TRMK

1.c. Company Highlights

Stable Momentum

Average Growth

Average Yield

Earnings Beats

Revenues Beats

Fairly Valued

Revenues Miss

Lower Growth

Strong Momentum

Expensive

Average Quality

Medium Volatility

Earnings Miss

2. Trustmark Corporation Delivers Solid Quarterly Earnings

Net Interest Margin Guidance Tightened

Capital Deployment and Shareholder Returns

Loan Portfolio and Deposit Growth

Outlook and Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.56%)

6. Segments

General Banking

Expected Growth: 3.5%

Insurance

Expected Growth: 3.8%

Wealth Management

Expected Growth: 4.2%

7. Detailed Products

Voluntary Benefits

Payroll Deduction Insurance

Group Life Insurance

Disability Insurance

Dental Insurance

Vision Insurance

8. Trustmark Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Trustmark Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.4$

Current Price

39.4$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA