TRUSTMARK CORP

Previous wording

Trustmark, a Mississippi business corporation incorporated in 1968, is a bank holding company headquartered in Jackson, Mississippi. As previously disclosed, on August 4, 2025, Trustmark’s principal subsidiary, Trustmark National Bank, initially chartered by the State of Mississippi in 1889, converted from a national banking association to a Mississippi-chartered banking corporation and changed its name to Trustmark Bank (TB). TB is a member bank of the Federal Reserve System and is supervised by the Federal Reserve Bank of Atlanta (FRBA) and the Mississippi Department of Banking and Consumer Finance (MDBCF). In addition, as a large provider of consumer financial services, TB remains subject to regulation, supervision, enforcement and examination by the Consumer Financial Protection Bureau (CFPB). As a Mississippi state-chartered banking corporation, TB must obtain the approval of the MDBCF prior to declaring or paying a dividend on its common stock. Dividends from TB are Trustmark’s principal source of cash. At September 30, 2025, TB had total assets of $18.799 billion, which represented 99.99% of the consolidated assets of Trustmark.

Current wording

Trustmark, a Mississippi business corporation incorporated in 1968, is a bank holding company headquartered in Jackson, Mississippi. Trustmark’s principal subsidiary is Trustmark Bank (TB), a Mississippi-chartered banking corporation. TB is a member bank of the Federal Reserve System and is supervised by the Federal Reserve Bank of Atlanta (FRBA) and the Mississippi Department of Banking and Consumer Finance (MDBCF). In addition, as a large provider of consumer financial services, TB remains subject to regulation, supervision, enforcement and examination by the Consumer Financial Protection Bureau (CFPB). As a Mississippi state-chartered banking corporation, TB must obtain the approval of the MDBCF prior to declaring or paying a dividend on its common stock. Dividends from TB are Trustmark’s principal source of cash. At March 31, 2026, TB had total assets of $18.985 billion, which represented 99.99% of the consolidated assets of Trustmark.

Previous wording

Through TB and its other subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,539 full-time equivalent associates (measured at September 30, 2025) located in the states of Alabama, Florida (primarily in the northwest or “Panhandle” region of that state, which is referred to herein as Trustmark’s Florida market), Georgia (primarily in Atlanta, which is referred to herein as Trustmark's Georgia market), Mississippi, Tennessee (in the Memphis and Northern Mississippi regions, which are collectively referred to herein as Trustmark’s Tennessee market), and Texas (primarily in Houston, which is referred to herein as Trustmark’s Texas market). Trustmark’s operations are managed along two operating segments: General Banking Segment and Wealth Management Segment. For a complete overview of Trustmark’s business, see the section captioned “The Corporation” included in Part I. Item 1. – Business of Trustmark’s Annual Report on Form 10-K for its fiscal year ended December 31, 2024 (2024 Annual Report).

Current wording

Through TB and its other subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,530 full-time equivalent associates (measured at March 31, 2026) located in the states of Alabama, Florida (primarily in the northwest or “Panhandle” region of that state, which is referred to herein as Trustmark’s Florida market), Georgia (primarily in Atlanta, which is referred to herein as Trustmark's Georgia market), Mississippi, Tennessee (in the Memphis and Northern Mississippi regions, which are collectively referred to herein as Trustmark’s Tennessee market), and Texas (primarily in Houston, which is referred to herein as Trustmark’s Texas market). Trustmark’s operations are managed along two operating segments: General Banking Segment and Wealth Management Segment. For a complete overview of Trustmark’s business, see the section captioned “The Corporation” included in Part I. Item 1. – Business of Trustmark’s Annual Report on Form 10-K for its fiscal year ended December 31, 2025 (2025 Annual Report).

Previous wording

Trustmark's financial results for the first nine months of 2025 reflected diversified growth in loans held for investment (LHFI), stable credit quality and cost-effective core deposit growth. Trustmark's capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. Trustmark continued to implement organic growth initiatives and make investments to capitalize on opportunities in its marketplace. With robust capital, liquidity and profitability, Trustmark is well-positioned to compete in changing economic conditions and create long-term value for its shareholders. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.24 per share. The dividend is payable December 15, 2025, to shareholders of record on December 1, 2025. Trustmark’s payment of the dividend will be fully funded by a dividend from TB to Trustmark, which the MDBCF approved on October 30, 2025.

Current wording

Trustmark's financial results for the first three months of 2026 reflected diversified growth in loans held for investment (LHFI), stable credit quality and cost-effective core deposit growth. Trustmark's capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. Trustmark continued to implement organic growth initiatives and make investments to capitalize on opportunities in its marketplace. With robust capital, liquidity and profitability, Trustmark is well-positioned to continue to compete in changing economic conditions and create long-term value for its shareholders. On April 28, 2026, Trustmark’s Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable June 15, 2026, to shareholders of record on June 1, 2026. Trustmark’s payment of the dividend will be fully funded by a dividend from TB to Trustmark, which the MDBCF approved on April 28, 2026.

Previous wording

Economic activity improved slightly during the third quarter of 2025, but was characterized by mixed signals, notably, strong equity market performance, continued consumer spending and a Federal Reserve Board (FRB) rate cut, but also a softening labor market and persistent inflationary pressures, driven partly by new tariffs. United States stocks performed strongly during the third quarter of 2025, supported by optimistic sentiment around lower interest rates, better-than-expected corporate earnings and strong performance in the technology and artificial intelligence (AI) sectors. However, economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as the conflicts in Ukraine and the Middle East, the current United States presidential administration's policies, the United States government shutdown, inflationary and broader pricing pressures and other economic and industry volatility. Concerns surrounding the near-term direction of global markets and the potential impact on the United States economy are expected to persist for the near term. While Trustmark's customer base is wholly domestic, international economic conditions affect domestic economic conditions, and thus may have an impact upon Trustmark's financial condition or results of operations.

Current wording

Economic activity during the first quarter of 2026 was characterized by a rebound in growth following a weak end to 2025, driven by robust artificial intelligence (AI) related business investments and consumer spending, though this was tempered by a significant geopolitical shock at the end of the quarter. While labor markets remained tight, escalating energy prices and geopolitical volatility, particularly in the Middle East, slowed momentum late in the quarter, forcing the Federal Reserve Board (FRB) to pause rate cuts it might have otherwise approved. Economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as the conflicts in Ukraine and the Middle East, the current United States presidential administration's policies, inflationary and broader pricing pressures, volatility in energy prices and other economic and industry volatility. Concerns surrounding the direction of global markets and the potential impact on the United States economy are expected to persist for the near term. While Trustmark's customer base is wholly domestic, international economic conditions affect domestic economic conditions, and thus may have an impact upon Trustmark's financial condition or results of operations.

Previous wording

In September 2024, the FRB began lowering the target federal funds rate, making multiple decreases during the fourth quarter of 2024 to a range of 4.25% to 4.50% as of December 2024, based on its confidence that inflation was moving substantially toward 2.00% and that the risks to achieving the FRB's employment and inflation goals were roughly balanced. In addition, in September 2024, the FRB made the first of multiple reductions in the rate it pays on reserves, lowering the rate to 4.40% as of December 2024. The FRB left the target federal funds rate unchanged at a range of 4.25% to 4.50% and maintained the rate it pays on reserves at 4.40% until the September 2025 meeting of the FRB's Federal Open Market Committee, at which time the FRB lowered the target federal funds rate to a range of 4.00% to 4.25% and lowered the rate it pays on reserves to 4.15%. Prior period rate increases increased the competitive pressures on the deposit cost of funds. While rate cuts potentially reduced those competitive pressures, they increased pressure on Trustmark's net interest margin, a key component to its financial results. It is not possible to predict the direction, pace or magnitude of further changes, if any, in interest rates, or the impact any such rate changes will have on Trustmark's results of operations.

Current wording

Beginning with the September 2025 meeting of the FRB's Federal Open Market Committee, the FRB noted increases in unemployment and inflation shifting the balance of risks to achieving its goals. As a result, the FRB decreased the target federal funds rate and the rate it pays on reserves multiple times during the fourth quarter of 2025, lowering the target federal funds rate to a range of 3.50% to 3.75% and the rate it pays on reserves to 3.65% as of December 2025. The FRB determined to leave the target federal funds rate and the rate it pays on reserves unchanged during the first three months of 2026, noting that while economic activity expanded at a solid pace and there was little change in the unemployment rate, inflationary concerns and implications of developments in the Middle East for the U.S. economy are uncertain. Prior period rate increases increased the competitive pressures on Trustmark's deposit cost of funds. While rate cuts potentially reduced those competitive pressures, they increased pressure on Trustmark's net interest margin, a key component to its financial results. It is not possible to predict the direction, pace or magnitude of further changes, if any, in interest rates, or the impact any such rate changes will have on Trustmark's results of operations.

Previous wording

In the August 2025 and October 2025 “Summary of Commentary on Current Economic Conditions by Federal Reserve District,” the twelve Federal Reserve Districts’ reports suggested that during the reporting periods (covering the periods from July 8, 2025 through August 25, 2025 and August 26, 2025 through October 6, 2025) there was little to no change in the level of economic activity. Reports by the twelve Federal Reserve Districts (Districts) noted the following during the reporting periods:

Current wording

In the February and April 2026 “Summary of Commentary on Current Economic Conditions by Federal Reserve District,” the twelve Federal Reserve Districts’ (Districts) reports suggested that during the reporting periods (covering the periods from January 6, 2026 through February 23, 2026 and February 24, 2026 through April 6, 2026) overall economic activity increased at a slight to modest pace in eight of the twelve Districts, while the remaining Districts reported economic activity was flat or declining. Reports by the twelve Districts noted the following during the reporting periods:

Previous wording

Reports by the Federal Reserve’s Sixth District, Atlanta (which includes Trustmark’s Alabama, Florida, Georgia and Mississippi market regions), Eighth District, St. Louis (which includes Trustmark’s Tennessee market region), and Eleventh District, Dallas (which includes Trustmark’s Texas market region), noted similar findings for the reporting period as those discussed above. The Federal Reserve's Sixth District reported overall loan growth was flat, loan demand from both corporate and consumer borrowers was muted amid persistent economic uncertainty, consumer lending contracted further, and while banks reported healthy credit quality, delinquencies ticked up. The Federal Reserve's Sixth District also reported that multiple bank mergers were announced, affecting the banking landscape across the southeast. The Federal Reserve’s Eighth District reported that banking activity remained unchanged, with moderate loan demand and overall credit conditions remaining strong. The Federal Reserve’s Eighth District also reported bankers tightening their lending standards with higher equity requirements, more scrutiny of small business loans and limited access to credit for smaller investors. The Federal Reserve’s Eleventh District reported that loan volume and loan demand increased in September 2025, credit tightening continued and loan pricing declined. The Federal Reserve’s Eleventh District also noted that overall loan performance deteriorated slightly, though performance for commercial real estate sharply improved, bankers reported stable general business activity and mixed outlooks.

Current wording

Reports by the Federal Reserve’s Sixth District, Atlanta (which includes Trustmark’s Alabama, Florida, Georgia and Mississippi market regions), Eighth District, St. Louis (which includes Trustmark’s Tennessee market region), and Eleventh District, Dallas (which includes Trustmark’s Texas market region), noted similar findings for the reporting period as those discussed above. The Federal Reserve's Sixth District reported overall loan growth was moderate, most types of lending expanded with the exception of credit card lending, auto lending posted the largest percentage increase as higher vehicle prices prompted consumers to seek extended loan terms and commercial lending declined driven by a pullback in small business lending amid tighter lending standards, increased concerns over credit quality and new U.S. citizenship requirements for Small Business Administration (SBA) loans. The Federal Reserve’s Eighth District noted that banking activity remained unchanged, with some banking contacts reporting signs of improvement in the commercial loan pipeline largely fueled by opportunities in commercial real estate and ongoing business transactions, stable credit quality overall, though some early-stage weaknesses had emerged, particularly for small business borrowers whose risk is closely tied to input costs and fuel prices, and an uptick in overdraft frequency signaling that many households are facing tighter budgets and reduced discretionary spending. The Federal Reserve’s Eleventh District reported that loan volume and loan demand increased in March 2026, driven by commercial real estate loans, credit standards and terms tightened slightly, loan pricing continued to decline and loan performance ticked down. The Federal Reserve’s Eleventh District also noted that bankers reported general business activity declined and outlooks were less optimistic, expressing concerns about the impact of higher fuel prices on the economy if sustained and noting that the Middle East conflict had created more uncertainty around future interest rates and that rate cuts may now be less likely.

Previous wording

Trustmark is intently monitoring the impact of tariffs, the United States government shutdown and other administrative policies on its customer base, interest rates and credit-related issues. Economic uncertainty or disruptions in the marketplace as a result of such policies could reduce loan demand or increase loan nonperformance. It is not possible to predict the timing or magnitude of changes to policies by the current United States presidential administration, if any, or the impact any such policy changes could have on Trustmark's customer base, credit quality or results of operations.

Current wording

Trustmark is monitoring the impact of geopolitical conflicts, tariffs and other administrative policies on its customer base, interest rates and credit-related issues. Economic uncertainty or disruptions in the marketplace as a result of such policies could reduce loan demand or increase loan nonperformance. It is not possible to predict the timing or magnitude of changes to policies by the current United States presidential administration, if any, or the impact any such policy changes could have on Trustmark's customer base, credit quality or results of operations.

Previous wording

Trustmark reported net income of $56.8 million, or basic and diluted earnings per share (EPS) of $0.94, in the third quarter of 2025, compared to $51.3 million, or basic and diluted EPS of $0.84, in the third quarter of 2024. Trustmark’s reported performance during the quarter ended September 30, 2025 produced a return on average tangible equity of 12.84%, a return on average assets of 1.21%, an average equity to average assets ratio of 11.26% and a dividend payout ratio of 25.53%, compared to a return on average tangible equity of 12.86%, a return on average assets of 1.10%, an average equity to average assets ratio of 10.39% and a dividend payout ratio of 27.38% during the quarter ended September 30, 2024.

Current wording

Trustmark reported net income of $56.1 million, or basic and diluted earnings per share (EPS) of $0.95, in the first quarter of 2026, compared to $53.6 million, or basic and diluted EPS of $0.88, in the first quarter of 2025. Trustmark’s reported performance during the quarter ended March 31, 2026 produced a return on average tangible equity of 12.58%, a return on average assets of 1.20%, an average equity to average assets ratio of 11.33% and a dividend payout ratio of 26.32%, compared to a return on average tangible equity of 13.13%, a return on average assets of 1.19%, an average equity to average assets ratio of 10.94% and a dividend payout ratio of 27.27% during the quarter ended March 31, 2025.

Previous wording

For further information regarding the calculation of return on average tangible equity, which is not a measure prepared in accordance with U.S. generally accepted accounting principles (GAAP), see “Non-GAAP Financial Measures.

Current wording

For further information regarding the calculation of return on average tangible equity, which is not a measure prepared in accordance with U.S. generally accepted accounting principles (GAAP), see the section captioned "Non-GAAP Financial Measures."

Previous wording

Total revenue, which is defined as net interest income plus noninterest income (loss), for the three months ended September 30, 2025 was $202.4 million, an increase of $10.1 million, or 5.3%, when compared to the same time period in 2024. Total revenue for the nine months ended September 30, 2025 was $595.7 million, an increase of $231.5 million, or 63.6%, when compared to the same time period in 2024. The increase in total revenue when the three months ended September 30, 2025 is compared to the same time period in 2024, was principally due to increases in net interest income, primarily due to a decrease in interest on deposits partially offset by declines in interest and fees on loans held for sale (LHFS) and LHFI and other interest income, and noninterest income, primarily due to an increase in mortgage banking, net. The increase in total revenue when the nine months ended September 30, 2025 is compared to the same time period in 2024, was principally due to an increase in noninterest income, principally due to the significant non-routine transactions that occurred during the second quarter of 2024, and an increase in net interest income, primarily due to declines in all categories of interest expense and an increase in interest on securities partially offset by declines in interest and fees on LHFS and LHFI and other interest income.

Current wording

Total revenue, which is defined as net interest income plus noninterest income, for the three months ended March 31, 2026 was $202.9 million, an increase of $8.3 million, or 4.2%, when compared to the same time period in 2025. The increase in total revenue when the three months ended March 31, 2026 is compared to the same time period in 2025, was principally due to an increase in net interest income, primarily as a result of a decrease in interest on deposits and an increase in interest and fees on loans held for sale (LHFS) and LHFI.

Previous wording

Noninterest expense for the three and nine months ended September 30, 2025 totaled $130.9 million and $380.1 million, respectively, an increase of $7.7 million, or 6.2%, and $18.8 million, or 5.2%, respectively, when compared to the same time periods in 2024, principally due to increases in salaries and employee benefits and services and fees. Salaries and employee benefits totaled $71.5 million and $208.3 million for the three and nine months ended September 30, 2025, respectively, an increase of $4.8 million, or 7.2%, and $11.3 million, or 5.7%, respectively, when compared to the same time periods in 2024. The increase in salaries and employee benefits when the three months ended September 30, 2025 is compared to the same time period in 2024 was principally due to increase in salaries expense primarily due to general merit increases, management annual performance incentives and other salaries expense. The increase in salaries and employee benefits when the nine months ended September 30, 2025 is compared to the same time period in 2024 was principally due to increases in salaries expense primarily due to general merit increases, management annual performance incentives, medical insurance expense, commissions related to mortgage originations and other salaries expense. Services and fees totaled $28.8 million and $82.0 million for the three and nine months ended September 30, 2025, respectively, an increase of $3.1 million, or 11.9%, and $7.1 million, or 9.5%, respectively, when compared to the same time periods in 2024, principally due to increases in data processing expenses related to software, business process operations outsourcing expense, legal expense and advertising expense.

Current wording

Noninterest expense for the three months ended March 31, 2026 totaled $132.2 million, an increase of $8.1 million, or 6.6%, when compared to the same time period in 2025, principally due to increases in salaries and employee benefits and services and fees. Salaries and employee benefits totaled $74.2 million for the three months ended March 31, 2026, an increase of $5.8 million, or 8.4%, when compared to the same time period in 2025. The increase in salaries and employee benefits when the three months ended March 31, 2026 is compared to the same time period in 2025 was principally due to increases in salaries expense primarily due to general merit increases and employees added during 2025, commission expense related to mortgage origination production and brokerage activity, management annual performance incentives, payroll taxes and incentive stock compensation expense. Services and fees totaled $27.9 million for the three months ended March 31, 2026, an increase of $1.7 million, or 6.5%, when compared to the same time period in 2025, principally due to increases in data processing expenses related to software.

Previous wording

At September 30, 2025, nonperforming assets totaled $92.3 million, an increase of $6.3 million, or 7.3%, compared to December 31, 2024, reflecting increases in both nonaccrual LHFI and other real estate. Nonaccrual LHFI totaled $84.0 million at September 30, 2025, an increase of $3.8 million, or 4.8%, relative to December 31, 2024, primarily as a result of 1-4 family mortgage loans placed on nonaccrual status in the Mississippi market region largely offset by the resolution of nonaccrual credits in the Alabama and Mississippi market regions. Other real estate totaled $8.3 million at September 30, 2025, an increase of $2.4 million, or 40.7%, when compared to December 31, 2024, principally due to properties foreclosed in the Mississippi market region partially offset by properties sold in the Mississippi and Alabama market regions and a reserve for other real estate write-down for a property in the Texas market region recorded during the third quarter of 2025.

Current wording

At March 31, 2026, nonperforming assets totaled $104.0 million, an increase of $12.7 million, or 13.9%, compared to December 31, 2025, reflecting increases in both nonaccrual LHFI and other real estate. Nonaccrual LHFI totaled $96.7 million at March 31, 2026, an increase of $12.3 million, or 14.6%, relative to December 31, 2025, primarily as a result of 1-4 family mortgage loans placed on nonaccrual status in the Mississippi market region and a large commercial credit placed on nonaccrual status in the Alabama market region, partially offset by the resolution of certain nonaccrual credits in the Mississippi market region. Other real estate totaled $7.3 million at March 31, 2026, a slight increase of $359 thousand, or 5.2%, when compared to December 31, 2025, principally due to properties foreclosed in the Mississippi and Alabama market regions partially offset by properties sold in the Mississippi market region.

Previous wording

LHFI totaled $13.548 billion at September 30, 2025, an increase of $458.2 million, or 3.5%, compared to December 31, 2024. The increase in LHFI during the first nine months of 2025 was primarily due to net growth in other commercial loans and leases, loans secured by real estate, commercial and industrial loans and state and other political subdivision loans. For additional information regarding changes in LHFI and comparative balances by loan category, see the section captioned “LHFI.”

Current wording

LHFI totaled $13.878 billion at March 31, 2026, an increase of $203.7 million, or 1.5%, compared to December 31, 2025. The increase in LHFI during the first three months of 2026 was primarily due to net growth in commercial and industrial loans, other commercial loans and leases and loans secured by real estate. For additional information regarding changes in LHFI and comparative balances by loan category, see the section captioned “LHFI.”

Previous wording

Total deposits were $15.631 billion at September 30, 2025, an increase of $522.8 million, or 3.5%, compared to December 31, 2024. During the first nine months of 2025, noninterest-bearing deposits increased $247.6 million, or 8.1%, principally due to growth in commercial and public noninterest-bearing demand deposit accounts. Interest-bearing deposits increased $275.2 million, or 2.3%, during the first nine months of 2025, primarily due to growth in all categories of certificates of deposits (CDs) and money market deposit accounts (MMDA), partially offset by declines in all categories of interest checking accounts and savings accounts.

Current wording

Total deposits were $15.713 billion at March 31, 2026, an increase of $212.7 million, or 1.4%, compared to December 31, 2025. During the first three months of 2026, noninterest-bearing deposits increased $59.2 million, or 1.9%, principally due to growth in commercial and consumer noninterest-bearing demand deposit accounts. Interest-bearing deposits increased $153.5 million, or 1.2%, during the first three months of 2026, primarily due to growth in public interest checking accounts, commercial money market deposit accounts (MMDA), consumer savings accounts and brokered certificates of deposits (CDs), partially offset by declines in commercial interest checking accounts, consumer MMDA and consumer CDs.

Previous wording

On October 22, 2024, the CFPB released a final rule to implement Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the final rule, financial institutions are required, upon request, to make available to a consumer or third party authorized by the consumer certain information TB has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account. Industry organizations challenged the final rule in court. On July 29, 2025, the district court granted a motion by the CFPB to stay the proceedings while the CFPB conducts a rulemaking to revise the final rule substantially. On August 22, 2025, the CFPB issued an advance notice of proposed rulemaking to solicit comments and data on several issues relating to the final rule. On October 29, 2025, the district court issued a preliminary injunction preventing the CFPB from enforcing the final rule until the CFPB has completed its reconsideration of the rule.

Current wording

On October 22, 2024, the CFPB released a final rule to implement Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the final rule, financial institutions are required, upon request, to make available to a consumer or third party authorized by the consumer certain information TB has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account. Industry organizations challenged the final rule in court. On July 29, 2025, the district court granted a motion by the CFPB to stay the proceedings while the CFPB conducts a rulemaking to revise the final rule substantially. On August 22, 2025, the CFPB issued an advance notice of proposed rulemaking to solicit comments and data on several issues relating to the final rule. On October 29, 2025, the district court issued a preliminary injunction preventing the CFPB from enforcing the final rule until the CFPB has completed its reconsideration of the rule. Management is monitoring the status of the litigation and evaluating the impact of this rule.

Previous wording

Consistent with Trustmark’s annual financial statements, total revenue is defined as net interest income plus noninterest income (loss).

Current wording

Consistent with Trustmark’s annual financial statements, total revenue is defined as net interest income plus noninterest income.

Previous wording

Calculated using annualized net income (loss) from continuing operations adjusted for intangible amortization divided by total average tangible equity.

Current wording

Calculated using net income adjusted for intangible amortization divided by total average tangible equity.

Previous wording

Net interest income is the principal component of Trustmark’s income stream and represents the difference, or spread, between interest and fee income generated from earning assets and the interest expense paid on deposits and borrowed funds. Fluctuations in interest rates, as well as volume and mix changes in earning assets and interest-bearing liabilities, can materially impact net interest income. The net interest margin is computed by dividing fully taxable equivalent (FTE) net interest income by average interest-earning assets and measures how effectively Trustmark utilizes its interest-earning assets in relationship to the interest cost of funding them. The accompanying yield/rate analysis tables show the average balances for all assets and liabilities of Trustmark and the interest income or expense associated with earning assets and interest-bearing liabilities. The yields and rates have been computed based upon interest income and expense adjusted to a FTE basis using the federal statutory corporate tax rate in effect for each of the periods shown. Loans on nonaccrual have been included in the average loan balances, and interest collected prior to these loans having been placed on nonaccrual has been included in interest income. Loan fees included in interest associated with the average LHFS and LHFI balances were immaterial.

Current wording

Net interest income is the principal component of Trustmark’s income stream and represents the difference, or spread, between interest and fee income generated from earning assets and the interest expense paid on deposits and borrowed funds. Fluctuations in interest rates, as well as volume and mix changes in earning assets and interest-bearing liabilities, can materially impact net interest income. The net interest margin is computed by dividing fully taxable equivalent (FTE) net interest income by average interest-earning assets and measures how effectively Trustmark utilizes its interest-earning assets in relationship to the interest cost of funding them. The accompanying yield/rate analysis table shows the average balances for all assets and liabilities of Trustmark and the interest income or expense associated with earning assets and interest-bearing liabilities. The yields and rates have been computed based upon interest income and expense adjusted to an FTE basis using the federal statutory corporate tax rate in effect for each of the periods shown. Loans on nonaccrual have been included in the average loan balances, and interest collected prior to these loans having been placed on nonaccrual has been included in interest income. Loan fees included in interest associated with the average LHFS and LHFI balances were immaterial.

Previous wording

Net interest income-FTE for the three and nine months ended September 30, 2025 increased $7.2 million, or 4.6%, and $42.8 million, or 9.8%, respectively, when compared with the same time periods in 2024. The increase in net interest income-FTE when the three months ended September 30, 2025 is compared to the same time period in 2024 was principally due to a decline in interest on deposits partially offset by declines in interest and fees on LHFS and LHFI-FTE and other interest income. The increase in net interest income-FTE when the nine months ended September 30, 2025 is compared to the same time period in 2024 was principally due to declines in all categories of interest expense as well as an increase in interest on securities, partially offset by declines in interest and fees on LHFS and LHFI-FTE and other interest income. The net interest margin-FTE for the three and nine months ended September 30, 2025 increased 14 basis points and 37 basis points to 3.83% and 3.80%, respectively, when compared to the same time periods in 2024, principally due to an increase in the yield on the securities portfolio, primarily due to the restructuring of the available for sale securities portfolio during the second quarter of 2024, as well as decreases in the cost of interest-bearing liabilities, partially offset by declines in the yield on loan (LHFS and LHFI) and other earning assets.

Current wording

Net interest income-FTE for the three months ended March 31, 2026 increased $8.8 million, or 5.7%, when compared with the same time period in 2025. The increase in net interest income-FTE when the three months ended March 31, 2026 is compared to the same time period in 2025 was principally due to a decline in interest on deposits and an increase in interest and fees on LHFS and LHFI-FTE. The net interest margin-FTE for the three months ended March 31, 2026 increased 6 basis points to 3.81%, when compared to the same time period in 2025, principally due to a decrease in the cost of interest-bearing liabilities, partially offset by a decline in the yield on loan (LHFS and LHFI).

Previous wording

Average interest-bearing liabilities for the three months ended September 30, 2025 totaled $13.052 billion compared to $13.088 billion for the three months ended September 30, 2024, a decrease of $35.5 million, or 0.3%, reflecting declines in average other borrowings and average interest-bearing deposits partially offset by an increase in average federal funds purchased and securities sold under repurchase agreements. Average interest-bearing liabilities for the nine months ended September 30, 2025 totaled $12.984 billion compared to $13.280 billion for the nine months ended September 30, 2024, a decrease of $296.0 million, or 2.2%, principally due to declines in average interest-bearing deposits and average other borrowings. Average interest-bearing deposits for the three months ended September 30, 2025 decreased $24.2 million, or 0.2%, when compared to the same time period in 2024, reflecting declines in average interest-bearing demand deposits and average savings deposits partially offset by an increase in average time deposits. Average interest-bearing deposits for the nine months ended September 30, 2025 decreased $204.9 million, or 1.7%, when compared to the same time period in 2024, reflecting declines in all categories of average interest-bearing deposits. Average other borrowings for the three and nine months ended September 30, 2025 decreased $55.6 million, or 10.6%, and $92.2 million, or 14.6%, respectively, when compared to the same time periods in 2024, principally due to the decrease in average short-term FHLB advances outstanding with the FHLB of Dallas as a result of changes in funding needs. Average federal funds purchased and securities sold under repurchase agreements for the three and nine months ended September 30, 2025 increased $44.2 million, or 11.8%, and $1.1 million, or 0.3%, respectively, when compared to the same time periods in 2024. The increase in average federal funds purchased and securities sold under repurchase agreements when the three months ended September 30, 2025 is compared to the same time period in 2024, was principally due to an increase in average upstream federal funds purchased.

Current wording

Average interest-bearing liabilities for the three months ended March 31, 2026 totaled $13.507 billion compared to $12.877 billion for the three months ended March 31, 2025, an increase of $630.1 million, or 4.9%, reflecting increases in average interest-bearing deposits, average subordinated notes and average federal funds purchased and securities sold under repurchase agreements, partially offset by declines in average other borrowings. Average interest-bearing deposits for the three months ended March 31, 2026 increased $620.6 million, or 5.2%, when compared to the same time period in 2025, reflecting increases in average interest-bearing demand deposits and average time deposits partially offset by a decrease in average savings deposits. Average subordinated notes for the three months ended March 31, 2026 increased $48.3 million, or 39.0%, when compared to the same time period in 2025 due to the $175.0 million aggregate principal amount of subordinated notes (the 2025 Notes) that were issued and sold by Trustmark during the fourth quarter of 2025, partially offset by the pay-off of the $125.0 million aggregate principle amount of the notes issued and sold in 2020. Average federal funds purchased and securities sold under repurchase agreements for the three months ended March 31, 2026 increased $24.6 million, or 6.1%, when compared to the same time period in 2025, principally due to an increase in average upstream federal funds purchased partially offset by a decline in securities sold under repurchase agreements. The securities sold under repurchase agreements represented customer related transactions, such as commercial sweep repurchase balances. Trustmark discontinued the customer sweep product during the third quarter of 2025. Average other borrowings for the three months ended March 31, 2026 decreased $63.4 million, or 18.4%, when compared to the same time period in 2025, principally due to the decrease in average short-term FHLB advances outstanding with the FHLB of Dallas partially offset by an increase in average balances of GNMA loans eligible for repurchase.

Previous wording

The following tables provide the tax equivalent basis yield or rate for each component of the tax equivalent net interest margin for the periods presented ($ in thousands):

Current wording

The following table provides the tax equivalent basis yield or rate for each component of the tax equivalent net interest margin for the periods presented ($ in thousands):

Previous wording

The PCL, LHFI is the amount necessary to maintain the ACL for LHFI at the amount of expected credit losses inherent within the LHFI portfolio. The amount of PCL and the related ACL for LHFI are based on Trustmark’s ACL methodology. The PCL, LHFI totaled $1.4 million and $14.9 million for the three and nine months ended September 30, 2025, respectively, compared to a PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, of $7.9 million and $30.3 million, respectively, for the same time periods in 2024. The PCL, LHFI for the three months ended September 30, 2025 primarily reflected increases in required reserves as a result of loan growth, changes in macroeconomic forecasts and updates to various reserve factors, partially offset by declines in required reserves as a result of positive credit migration and reserves released associated with the resolution of the External Factor-Credit Quality Review qualitative factor. The PCL, LHFI for the nine months ended September 30, 2025 primarily reflected increases in required reserves as a result of loan growth and changes in macroeconomic forecasts partially offset by reserves released associated with the resolution of the External Factor-Credit Quality Review qualitative factor.

Current wording

The PCL, LHFI is the amount necessary to maintain the ACL for LHFI at the amount of expected credit losses inherent within the LHFI portfolio. The amount of PCL and the related ACL for LHFI are based on Trustmark’s ACL methodology. The PCL, LHFI totaled $4.7 million for the three months ended March 31, 2026, compared to a PCL, LHFI of $8.1 million for the same time period in 2025, a decrease of $3.4 million, or 42.3%, primarily due to a decline in reserves required related to macroeconomic forecasts and net changes in qualitative reserve factors partially offset by higher loan growth. The PCL, LHFI for the three months ended March 31, 2026 was principally attributable to loan growth, credit migration and updates to other qualitative reserve factors, partially offset by changes in the macroeconomic forecasts.

Previous wording

FASB ASC Topic 326 requires Trustmark to estimate expected credit losses for off-balance sheet credit exposures which are not unconditionally cancellable by Trustmark. Trustmark maintains a separate ACL for off-balance sheet credit exposures, including unfunded commitments and letters of credit. Adjustments to the ACL on off-balance sheet credit exposures are recorded to the PCL, off-balance sheet credit exposures. The PCL, off-balance sheet credit exposures totaled $295 thousand and a negative $3.2 million for the three and nine months ended September 30, 2025, respectively, compared to a negative $1.4 million and a negative $5.2 million, respectively, for the same time periods in 2024. The PCL, off-balance sheet credit exposures for the three months ended September 30,

Current wording

FASB ASC Topic 326 requires Trustmark to estimate expected credit losses for off-balance sheet credit exposures which are not unconditionally cancellable by Trustmark. Trustmark maintains a separate ACL for off-balance sheet credit exposures, including unfunded commitments and letters of credit. Adjustments to the ACL on off-balance sheet credit exposures are recorded to the PCL, off-balance sheet credit exposures. The PCL, off-balance sheet credit exposures totaled a negative $1.9 million for the three months ended March 31, 2026, compared to a negative $2.8 million for the same time period in 2025, a decrease in the negative PCL, off-balance sheet credit exposures of $883 thousand, or 31.2%, primarily due to changes in the total reserve rate. The release in the PCL, off-balance sheet credit exposures for the three months ended March 31, 2026, was primarily attributable to a decrease in unfunded commitments.

Previous wording

The following table provides the comparative components of noninterest income (loss) for the periods presented ($ in thousands):

Current wording

The following table provides the comparative components of noninterest income for the periods presented ($ in thousands):

Previous wording

Changes in various components of noninterest income (loss) are discussed in further detail below. For analysis of Trustmark’s wealth management income, please see the section captioned “Results of Segment Operations.”

Current wording

Changes in various components of noninterest income are discussed in further detail below. For analysis of Trustmark’s wealth management income, please see the section captioned “Results of Segment Operations.”

Previous wording

The following table illustrates the components of mortgage banking, net included in noninterest income (loss) for the periods presented ($ in thousands):

Current wording

The following table illustrates the components of mortgage banking, net included in noninterest income for the periods presented ($ in thousands):

Previous wording

Representing a significant component of mortgage banking income is the gain on sales of loans, net. The increase in the gain on sale of loans, net when the three months ended September 30, 2025 is compared to the same time period in 2024 was principally due to an increase in the volume of loans sold and higher profit margins in secondary marketing activities. The increase in the gain on sales of loans, net when the nine months ended September 30, 2025 is compared to the same time period in 2024, was primarily the result of an increase in the mortgage valuation adjustment partially offset by lower profit margins in secondary marketing activities. Loan sales totaled $327.7 million and $858.3 million for the three and nine months ended September 30, 2025, respectively, an increase of $39.1 million, or 13.6%, and $14.7 million, or 1.7%, respectively, when compared with the same time periods in 2024.

Current wording

Representing a significant component of mortgage banking income is the gain on sales of loans, net. The increase in the gain on sales of loans, net when the three months ended March 31, 2026 is compared to the same time period in 2025, was primarily the result of an increase in the volume of loans sold. Loan sales totaled $290.1 million for the three months ended March 31, 2026, an increase of $34.3 million, or 13.4%, when compared with the same time period in 2025.

Previous wording

The following table illustrates the components of other, net included in noninterest income (loss) for the periods presented ($ in thousands):

Current wording

The following table illustrates the components of other, net included in noninterest income for the periods presented ($ in thousands):

Previous wording

The increase in salaries and employee benefits when the three months ended September 30, 2025 is compared to the same time period in 2024 was principally due to increase in salaries expense primarily due to general merit increases, management annual performance incentives and other salaries expense. The increase in salaries and employee benefits when the nine months ended September 30, 2025 is compared to the same time period in 2024 was principally due to increases in salaries expense primarily due to general merit increases, management annual performance incentives, medical insurance expense, commissions related to mortgage originations and other salaries expense.

Current wording

The increase in salaries and employee benefits when the three months ended March 31, 2026 is compared to the same time period in 2025 was principally due to increases in salaries expense primarily due to general merit increases and employees added during 2025, commission expense related to mortgage origination production and brokerage activity, management annual performance incentives, payroll taxes and incentive stock compensation expense.

Previous wording

The increases in services and fees when the three and nine months ended September 30, 2025 are compared to the same time periods in 2024 were principally due to increases in data processing expenses related to software, business process operations outsourcing expense, legal expense and advertising expense.

Current wording

The increase in services and fees when the three months ended March 31, 2026 is compared to the same time period in 2025 was principally due to increases in data processing expenses related to software.

Previous wording

For a description of the methodologies used to measure financial performance and financial information by reportable segment, please see Note 19 – Segment Information included in Part I. Item 1. – Financial Statements of this report. The Insurance Segment is included in discontinued operations for the nine months ended September 30, 2024. For additional information about discontinued operations, please see Note 2 - Discontinued Operations included in Part I. Item 1. – Financial Statements of this report. The following discusses changes in the results of operations of each reportable segment for the nine months ended September 30, 2025 and 2024.

Current wording

For a description of the methodologies used to measure financial performance and financial information by reportable segment, please see Note 17 – Segment Information included in Part I. Item 1. – Financial Statements of this report. The following discusses changes in the results of operations of each reportable segment for the three months ended March 31, 2026 and 2025.

Previous wording

Net interest income for the General Banking Segment increased $42.4 million, or 10.0%, when the nine months ended September 30, 2025 is compared with the same time period in 2024. The increase in net interest income was primarily due to declines in all categories of interest expense and an increase in interest on securities partially offset by a decline in interest and fees on LHFS and LHFI and other interest income. The net PCL (LHFI and off-balance sheet credit exposures) for the General Banking Segment for the nine months ended September 30, 2025 totaled $11.7 million compared to a net PCL of $33.6 million for the same time period in 2024, a decrease of $22.0 million, or 65.3%. Excluding the $8.6 million PCL, LHFI sale of 1-4 family mortgage loans recorded in the second quarter of 2024, the net PCL for the General Banking Segment decreased $13.3 million, or 53.3%, when the nine months ended September 30, 2025 is compared to the same time period in 2024. For more information on these net interest income and PCL items, please see the sections captioned “Financial Highlights” and “Results of Operations.”

Current wording

Net interest income for the General Banking Segment increased $7.3 million, or 4.9%, when the three months ended March 31, 2026 is compared with the same time period in 2025. The increase in net interest income was primarily due to a decline in interest on deposits and an increase in interest and fees on LHFS and LHFI. The net PCL (LHFI and off-balance sheet credit exposures) for the General Banking Segment for the three months ended March 31, 2026 totaled $2.5 million compared to a net PCL of $5.3 million for the same time period in 2025, a decrease of $2.8 million, or 52.6%. For more information on these net interest income and PCL items, please see the sections captioned “Financial Highlights” and “Results of Operations.”

Previous wording

Noninterest income (loss) for the General Banking Segment increased $185.6 million when the first nine months of 2025 is compared to the same time period in 2024, principally due to the $182.8 million loss on the sale of the available for sale securities and the $4.8 million noncredit-related loss on the sale of 1-4 family mortgage loans during the second quarter of 2024 and an increase in mortgage banking, net, partially offset by the $8.1 million fair value adjustment for the Visa C shares during the second quarter of 2024. Noninterest income (loss) for the General Banking Segment includes service charges on deposit accounts; wealth management; bank card and other fees; mortgage banking, net; other, net and securities gains (losses), net. For more information on these noninterest income (loss) items, please see the analysis included in the section captioned “Noninterest Income (Loss).”

Current wording

Noninterest income for the General Banking Segment decreased $1.2 million, or 3.6%, when the first three months of 2026 is compared to the same time period in 2025, principally due to a decrease in other, net, primarily as a result of a gain on the sale of a bank property during the first quarter of 2025, partially offset by an increase in income from other partnership investments. Noninterest income for the General Banking Segment includes service charges on deposit accounts; bank card and other fees; mortgage banking, net; wealth management; other, net and securities gains (losses), net. For more information on these noninterest income items, please see the analysis included in the section captioned “Noninterest Income.”

Previous wording

Noninterest expense for the General Banking Segment increased $18.4 million, or 5.5%, when the first nine months of 2025 is compared with the same time period in 2024, principally due to increases in salaries and employee benefits and services and fees. For more information on these noninterest expense items, please see the analysis included in the section captioned “Noninterest Expense.”

Current wording

Noninterest expense for the General Banking Segment increased $7.1 million, or 6.1%, when the first three months of 2026 is compared with the same time period in 2025, principally due to increases in salaries and employee benefits and services and fees. For more information on these noninterest expense items, please see the analysis included in the section captioned “Noninterest Expense.”

Previous wording

Net income for the Wealth Management Segment for the first nine months of 2025 increased $2.4 million, or 41.2%, when compared to the same time period in 2024, primarily due to increases in net interest income and noninterest income. Net interest income for the Wealth Management Segment for the nine months ended September 30, 2025 increased $2.2 million, or 51.7%, when compared to the same time period in 2024, principally due to a decline in interest expense on deposits as well as an increase in interest and fees on loans generated by the Private Banking group. The net PCL for the nine months ended September 30, 2025 totaled a negative $22 thousand compared to a net PCL of $162 thousand for the same period in 2024, a decrease of $184 thousand. Noninterest income for the Wealth

Current wording

Net income for the Wealth Management Segment for the first three months of 2026 increased $631 thousand, or 26.8%, when compared to the same time period in 2025, reflecting increases in net interest income and noninterest income. Net interest income for the Wealth Management Segment for the three months ended March 31, 2026 increased $1.2 million, or 68.4%, when compared to the same time period in 2025, principally due to a decline in interest expense on deposits generated by the Private Banking group. The net PCL for the three months ended March 31, 2026 totaled $227 thousand compared to a negative net PCL of $3 thousand for the same period in 2025, an increase of $230 thousand. Noninterest income for the Wealth Management Segment, which primarily includes income related to investment management, trust and brokerage services, increased $963 thousand, or 10.1%, when the first three months of 2026 is compared to the same time period in 2025, primarily due to an increase in income from brokerage services. Noninterest expense for the Wealth Management Segment increased $1.1 million, or 13.2%, when the first three months of 2026 is compared to the same time period in 2025, principally due to an increase in salaries and employee benefits, primarily related to broker commissions.

Previous wording

At September 30, 2025 and 2024, Trustmark held assets under management and administration of $10.120 billion and $9.425 billion, respectively, and brokerage assets of $2.154 billion and $2.742 billion, respectively. The decrease in the balance of managed brokerage assets at September 30, 2025 compared to September 30, 2024 was principally due to a change in brokerage companies and assets in the process of being transitioned over.

Current wording

At March 31, 2026 and 2025, Trustmark held assets under management and administration of $11.015 billion and $9.547 billion, respectively, and brokerage assets of $2.670 billion and $2.603 billion, respectively.

Previous wording

For the three and nine months ended September 30, 2025, Trustmark’s combined effective tax rate from continuing operations was 18.6% and 18.5%, respectively, compared to 17.8% and 64.0%, respectively, for the same time periods in 2024. The elevated effective tax rate from continuing operations for the nine months ended September 30, 2024 was principally due to the significant non-routine transactions that occurred during the second quarter of 2024. Excluding the significant non-routine transactions, Trustmark’s combined effective tax rate from continuing operations for the nine months ended September 30, 2024 was 17.4%. Trustmark’s effective tax rate continues to be less than the statutory rate primarily due to various tax-exempt income items and its utilization of income tax credit programs. Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits or historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Current wording

For the three months ended March 31, 2026, Trustmark’s combined effective tax rate was 17.5%, compared to 17.9% for the same time period in 2025. Trustmark’s effective tax rate continues to be less than the statutory rate primarily due to various tax-exempt income items and its utilization of income tax credit programs. Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits or historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Previous wording

Earning assets serve as the primary revenue streams for Trustmark and are comprised of securities, loans and other earning assets. Average earning assets totaled $16.953 billion, or 92.1% of total average assets, for the nine months ended September 30, 2025, compared to $17.097 billion, or 91.6% of total average assets, for the nine months ended September 30, 2024, a decrease of $144.1 million, or 0.8%.

Current wording

Earning assets serve as the primary revenue streams for Trustmark and are comprised of securities, loans and other earning assets. Average earning assets totaled $17.427 billion, or 92.1% of total average assets, for the three months ended March 31, 2026, compared to $16.737 billion, or 92.0% of total average assets, for the three months ended March 31, 2025, an increase of $689.9 million, or 4.1%.

Previous wording

The securities portfolio is utilized by Management to manage interest rate risk, generate interest income, provide liquidity and use as collateral for public deposits and wholesale funding. Risk and return can be adjusted by altering duration, composition and/or balance of the portfolio. The weighted-average life of the portfolio was 4.4 years at September 30, 2025 compared to 4.8 years at December 31, 2024.

Current wording

The securities portfolio is utilized by Management to manage interest rate risk, generate interest income, provide liquidity and use as collateral for public deposits and wholesale funding. Risk and return can be adjusted by altering duration, composition and/or balance of the portfolio. The weighted-average life of the portfolio was 4.4 and 4.3 years at March 31, 2026 and December 31, 2025, respectively.