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Trustmark Corp. (TRMK)
NASDAQ:TRMK
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Trustmark
(NASDAQ:TRMK)
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Rating:73Outperform
Price Target:
$45.00
▲(12.05% Upside)
Trustmark's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a stable outlook, while the valuation is attractive with a reasonable P/E ratio and a solid dividend yield. The absence of notable corporate events does not impact the overall assessment.
Trustmark (TRMK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.44B
Dividend Yield2.37%
Average Volume (3M)286.53K
Price to Earnings (P/E)11.4
Beta (1Y)1.09
Revenue Growth17.17%
EPS GrowthN/A
CountryUS
Employees2,506
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.92
Shares Outstanding60,366,573
10 Day Avg. Volume345,883
30 Day Avg. Volume286,533
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)1.10
Price to Sales (P/S)2.60
P/FCF Ratio24.49
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit4.34
Enterprise Value/Ebitda9.41
Forecast
1Y Price Target
$44.00Price Target Upside9.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Trustmark Business Overview & Revenue Model
Company DescriptionTrustmark 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.
How the Company Makes MoneyTrustmark generates revenue through multiple channels. Its primary revenue streams include net interest income from loans and deposits, as well as non-interest income from service charges, fees, and investment management services. The company earns interest from commercial loans, residential mortgages, and consumer loans, while also benefiting from the interest spread between the rates it pays on deposits and the rates it charges on loans. Additionally, Trustmark's wealth management division contributes to its earnings through advisory fees and asset management. The bank also enhances its revenue through strategic partnerships with local businesses and community organizations, which help to expand its customer base and service offerings.
Trustmark Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong loan and deposit growth, improved profitability metrics, and solid credit quality, alongside positive revisions in guidance. However, challenges included stagnant noninterest income and an increase in noninterest expenses. Overall, the highlights significantly outweighed the lowlights, indicating a strong performance.Q2-2025 Updates
Positive Updates
Loan and Deposit Growth
Loans held for investment increased by $223 million or 1.7% quarter-over-quarter and $374.8 million or 2.9% year-to-date. Deposits grew by $35 million during the quarter, with personal and commercial deposits totaling $13 billion, an increase of $103.8 million or 0.8% from the prior quarter.
Profitability Metrics
Net income for the second quarter was $55.8 million, representing fully diluted EPS of $0.92, up 4.5% from the prior quarter. Return on average assets was 1.21% and return on average tangible equity was 13.13%.
Net Interest Margin and Income
Net interest income expanded by 4.3% to $161.4 million, producing a net interest margin of 3.81%, an increase of 6 basis points from the prior quarter.
Credit Quality Improvement
Nonperforming assets declined by $5 million or 5.3% quarter-over-quarter. Net charge-offs were $4.1 million, representing 12 basis points of average loans.
Capital Management
CET1 ratio expanded 7 basis points to 11.7%. The total risk-based capital ratio increased 5 basis points to 14.15%. The company repurchased $11 million of Trustmark common stock during the quarter.
Guidance and Forecast
Positive revisions in guidance, expecting loans held for investment to increase mid-single digits for the full year, revised upward from low single-digit growth. Net interest margin range tightened to 3.77% to 3.83% for full year 2025.
Negative Updates
Noninterest Income Stagnation
Noninterest income totaled $39.9 million, unchanged from the previous quarter, excluding certain gains and losses from the sale of bank facilities.
Expense Increase
Noninterest expense increased by $1.1 million or 0.9% from the previous quarter, reflecting higher professional fees.
Interest-Bearing Deposit Decline
Growth in noninterest-bearing deposits was partially offset by a decline in interest-bearing deposits.
Company Guidance
During Trustmark Corporation's second quarter earnings call, the company provided updated guidance and highlighted key financial metrics. Trustmark reported a net income of $55.8 million, translating to a fully diluted EPS of $0.92, marking a 4.5% increase from the prior quarter. The return on average assets was 1.21%, while the return on average tangible equity reached 13.13%. Loans held for investment grew by $223 million, or 1.7% quarter-on-quarter, and $374.8 million, or 2.9% year-to-date. Deposits saw a $35 million increase, with total personal and commercial deposits amounting to $13 billion. The net interest margin improved by 6 basis points to 3.81%. Looking forward, Trustmark revised its guidance for loans held for investment to grow by mid-single digits, up from low single-digit growth expectations. The company maintained its guidance for low single-digit deposit growth, excluding brokered deposits, and adjusted its net interest margin guidance to a range of 3.77% to 3.83% for the full year. The provision for credit losses, including unfunded commitments, is anticipated to trend lower compared to the previous year. Additionally, Trustmark repurchased $11 million of common stock during the quarter, with a remaining $74 million repurchase authority for the year, and declared a quarterly cash dividend of $0.24 per share.Trustmark Financial Statement Overview
Summary
Trustmark demonstrates strong revenue growth and profitability, supported by a stable balance sheet with moderate leverage. The cash flow position is improving, though there is room for enhancing cash conversion efficiency. The company is well-positioned in the regional banking sector, but should monitor leverage and cash flow conversion to mitigate potential risks.Income Statement
Trustmark's income statement shows strong revenue growth with a 21.26% increase in TTM, indicating a positive trajectory. The gross profit margin of 68% and net profit margin of 22.75% are robust, reflecting efficient cost management and profitability. However, the EBIT margin of 27.68% and EBITDA margin of 30.61% suggest room for improvement in operational efficiency.75
Positive
Balance Sheet
The balance sheet is stable with a debt-to-equity ratio of 0.60, indicating moderate leverage. The return on equity (ROE) of 10.81% is healthy, showing effective use of equity to generate profits. However, the equity ratio of 11.12% suggests a lower proportion of equity financing, which could pose risks if debt levels increase.70
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 9.70% in TTM, indicating improved cash generation. The operating cash flow to net income ratio of 7.32 shows strong cash conversion. However, the free cash flow to net income ratio of 0.91 suggests that not all earnings are translating into free cash flow, which could impact liquidity.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.01B | 831.37M | 916.33M | 583.32M | 567.82M | 649.63M |
| Gross Profit | 649.03M | 414.20M | 565.80M | 513.31M | 568.11M | 562.79M |
| EBITDA | 299.42M | 72.12M | 216.79M | 98.99M | 221.23M | 231.11M |
| Net Income | 217.12M | 223.01M | 165.49M | 71.89M | 147.37M | 160.03M |
Balance Sheet | ||||||
| Total Assets | 18.62B | 18.15B | 18.72B | 18.02B | 17.60B | 16.55B |
| Cash, Cash Equivalents and Short-Term Investments | 668.41M | 2.26B | 2.74B | 2.76B | 5.51B | 3.94B |
| Total Debt | 1.24B | 849.80M | 1.11B | 1.72B | 550.97M | 549.84M |
| Total Liabilities | 16.54B | 16.19B | 17.06B | 16.52B | 15.85B | 14.81B |
| Stockholders Equity | 2.07B | 1.96B | 1.66B | 1.49B | 1.74B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | 254.64M | 88.34M | 148.23M | 262.50M | 317.57M | 34.52M |
| Operating Cash Flow | 278.79M | 116.93M | 196.89M | 296.52M | 348.77M | 65.35M |
| Investing Cash Flow | -367.47M | 284.59M | -411.17M | -2.28B | -1.01B | -1.22B |
| Financing Cash Flow | -99.06M | -809.62M | 455.04M | 451.84M | 970.57M | 2.75B |
Trustmark Technical Analysis
Positive
40.16
Price Trends
38.95
Positive
37.20
Positive
35.91
Positive
Market Momentum
0.39
Positive
53.86
Neutral
58.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRMK, the sentiment is Positive. The current price of 40.16 is below the 20-day moving average (MA) of 40.25, above the 50-day MA of 38.95, and above the 200-day MA of 35.91, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRMK.
Trustmark Risk Analysis
Trustmark disclosed 30 risk factors in its most recent earnings report. Trustmark reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trustmark Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 2.49B | 10.40 | 9.33% | 3.76% | 4.62% | 2.69% | |
75 Outperform | 2.21B | 22.70 | 6.25% | 1.68% | -2.04% | -14.82% | |
75 Outperform | 2.45B | 11.85 | 7.52% | 3.47% | 8.75% | 5.16% | |
74 Outperform | 2.23B | 16.53 | 7.92% | ― | -7.45% | -45.67% | |
73 Outperform | $2.44B | 11.37 | 10.99% | 2.37% | 17.17% | ― | |
70 Outperform | 2.28B | 10.27 | 9.61% | 3.64% | -1.18% | 23.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
TRMK
Trustmark
40.16
9.40
30.56%
FBNC
First Bancorp
52.91
12.47
30.84%
FFBC
First Financial Bancorp
25.81
1.89
7.90%
FRME
First Merchants
38.96
3.55
10.03%
WAFD
Washington Federal
30.81
-2.47
-7.42%
CUBI
Customers Bancorp
66.83
21.45
47.27%
Trustmark Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Trustmark Bank Completes Charter Conversion
Neutral
Aug 4, 2025
On August 4, 2025, Trustmark Corporation’s subsidiary, Trustmark National Bank, converted to a Mississippi-chartered banking corporation and changed its name to Trustmark Bank after receiving regulatory approvals. This charter conversion will not impact customers’ daily interactions with the bank, and their deposits remain insured by the Federal Deposit Insurance Corporation.
The most recent analyst rating on (TRMK) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Trustmark stock, see the TRMK Stock Forecast page.
Business Operations and StrategyRegulatory Filings and Compliance
Trustmark National Bank Joins Federal Reserve System
Neutral
Jul 28, 2025
On July 24, 2025, Trustmark Corporation’s principal subsidiary, Trustmark National Bank (TNB), received approval from the Federal Reserve to become a member of the Federal Reserve System. This approval is part of TNB’s ongoing application to convert from a national banking association to a Mississippi-chartered banking corporation, which is still pending with the Mississippi Department of Banking and Consumer Finance.
The most recent analyst rating on (TRMK) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Trustmark stock, see the TRMK Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.