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	42.56
Change Percentage	-1.57%
Open	42.7
Previous Close	43.24
Market Cap ( Millions)	2552
Volume	49069
Year High	45.43
Year Low	29.77
M A 50	42.06
M A 200	39.08

FCF Yield	9.01%
Dividend Yield	2.28%
ROE	10.77%
Debt / Equity	52.60%
Net Debt / EBIDTA	138.65%
Price To Book	1.2
Price Earnings Ratio	11.33
Price To FCF	11.1
Price To sales	2.2
EV / EBITDA	9.28

2. Trustmark Corporation's 2025 Earnings Report: A Strong Finish with Promising Outlook

Trustmark Corporation reported a net income of $57.9 million for the fourth quarter, with diluted EPS of $0.97, exceeding analyst estimates of $0.91. This represents a 3.2% linked-quarter and 5.4% year-over-year increase. For the full year, the company achieved a record net income of $224.1 million, with diluted earnings per share of $3.70. The net interest margin was 3.81% in the fourth quarter, a 2 basis point decline from the third quarter. Loans held for investment increased $126 million or 0.9% linked-quarter and $584 million or 4.5% year-over-year.

Publication Date: Feb -26

                                    📋 Highlights
                                    Quarterly and Annual Net Income Growth:
                                                Q4 net income rose to $57.9M (+3.2% QoQ, +5.4% YoY), with full-year net income reaching record $224.1M.
Adjusted Continuing Operations Performance:
                                                2025 adjusted net income surged 20.3% to $37.8M, with ROAA of 1.21% and ROATE of 12.97%.
Shareholder Returns:
                                                2025 net income deployed 61.8% to shareholders via $80M buybacks and dividends, including a 4.2% dividend hike to $0.25/share.
2026 Guidance:
                                                Loans, deposits, and net interest income projected to grow mid-single digits, with NIM expected between 3.80%–3.85%.
Capital and Deposit Management:
                                                CET1 ratio to remain above 12% in 2026, while deposit costs decline to 1.61% in Q1 2026 and CD book repricing continues.

                                

Balance Sheet Growth and Capital Management

The company's balance sheet showed signs of growth, with loans held for investment increasing $584 million or 4.5% year-over-year. Deposits declined $131 million or 0.8% linked-quarter but increased $392 million or 2.6% year-over-year. Trustmark repurchased $43 million or 1.1 million shares of its common stock in the fourth quarter and $80 million or 2.2 million shares for the year. The Board announced a 4.2% increase in Trustmark's regular quarterly dividend to $0.25 per share, demonstrating the company's commitment to returning capital to shareholders.

Outlook and Guidance

For 2026, Trustmark expects loans held for investment to increase mid-single digits, deposits to increase mid-single digits, and the net interest margin to be in the range of 3.8% to 3.85%. The company anticipates net interest income to increase mid-single digits and noninterest income to increase mid-single digits. Noninterest expense is also expected to increase mid-single digits, with a slight increase in the second half due to merit increases and potential bonuses.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) of approximately 1.24, Trustmark's valuation appears reasonable. The company's Dividend Yield stands at 2.18%, providing a relatively attractive return for income-seeking investors. Considering the company's guidance and growth prospects, the current valuation metrics seem to be in line with expectations.

Credit Costs and Asset Quality

Trustmark expects net charge-offs to be around 13 to 15 basis points of average loans in 2026, with the provision for credit losses expected to be between 14 to 18 basis points of average loans. The company's CD book continues to reprice, and deposit costs are expected to decline from 1.72% to 1.61% in the first quarter, which should help maintain a stable net interest margin.

3. NewsRoom

Trustmark (NASDAQ:TRMK) Stock Price Passes Above 200-Day Moving Average – Time to Sell?

Feb -25

Source: defenseworld.net

Thrivent Financial for Lutherans Sells 68,761 Shares of Trustmark Corporation $TRMK

Feb -08

Source: defenseworld.net

Trustmark Q4 Earnings Call Highlights

Jan -30

Source: defenseworld.net

Buy These 4 Stocks That Recently Announced Dividend Hikes

Jan -29

Source: zacks.com

Trustmark Corporation (TRMK) Q4 2025 Earnings Call Transcript

Jan -28

Source: seekingalpha.com

Compared to Estimates, Trustmark (TRMK) Q4 Earnings: A Look at Key Metrics

Jan -28

Source: zacks.com

Trustmark (TRMK) Tops Q4 Earnings and Revenue Estimates

Jan -27

Source: zacks.com

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Jan -27

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

Trustmark

A-Score: 6.4/10

Value: 7.2

Growth: 4.8

Quality: 7.7

Yield: 5.0

Momentum: 5.5

Volatility: 8.3

1-Year Total Return ->

Richmond Mutual Bancorporation

A-Score: 6.4/10

Value: 7.6

Growth: 8.1

Quality: 4.9

Yield: 8.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

United Bancshares

A-Score: 6.3/10

Value: 7.3

Growth: 4.2

Quality: 7.6

Yield: 6.0

Momentum: 4.5

Volatility: 8.0

1-Year Total Return ->

Univest Financial

A-Score: 6.1/10

Value: 6.7

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

First US Bancshares

A-Score: 5.6/10

Value: 7.5

Growth: 5.3

Quality: 4.9

Yield: 4.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

Codorus Valley

A-Score: 5.6/10

Value: 7.6

Growth: 6.0

Quality: 7.4

Yield: 3.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.50%

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's 2025 Earnings Report: A Strong Finish with Promising Outlook

Balance Sheet Growth and Capital Management

Outlook and Guidance

Valuation and Dividend Yield

Credit Costs and Asset Quality

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

42.56$

Current Price

42.56$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA