TRUSTMARK CORP

Previous 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.

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). Dividends from TB are Trustmark’s principal source of cash. Effective July 1, 2026, TB was no longer required to obtain approval from the MDBCF, except under certain enumerated supervisory circumstances, prior to the declaration and payment of its quarterly dividend as a result of the enactment of Mississippi Senate Bill 2383, which amended the Mississippi banking code. At June 30, 2026, TB had total assets of $19.190 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 2,530 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).

Current wording

Through TB and its other subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,583 full-time equivalent associates (measured at June 30, 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 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.

Current wording

In addition to these non-routine transactions, Trustmark's financial results for the three and six months ended June 30, 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 July 28, 2026, Trustmark’s Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable September 15, 2026, to shareholders of record on September 1, 2026.

Previous 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.

Current wording

Economic activity during the first six months of 2026 expanded at a moderate pace, supported by continued consumer spending and business investment, including investment in artificial intelligence (AI) infrastructure, while inflationary pressures, elevated energy prices, tariffs and geopolitical uncertainty weighed on the outlook. Labor market conditions remained relatively stable, with unemployment little changed, but inflation remained above the FRB’s longer-run objective and contributed to a more cautious monetary policy posture. 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

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.

Current wording

The FRB decreased 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 left the target federal funds rate and the rate it pays on reserves unchanged during the first six months of 2026 as policymakers assessed the competing risks of persistent inflation, slowing growth and heightened global uncertainty. 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 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:

Current wording

In the May and July 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 April 6, 2026 through May 27, 2026 and May 28, 2026 through July 6, 2026) overall economic activity increased at a slight to moderate pace in most Districts. The May report indicated that economic activity increased at a slight to moderate pace in ten of the twelve Districts, while one District reported a slight decline and one reported no change. The July report indicated that economic activity increased at a slight to moderate pace in eleven of the twelve Districts, while one District reported no change. 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 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.

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 findings for the reporting periods that were generally consistent with the national observations discussed above. The Federal Reserve’s Sixth District reported that economic activity continued to expand at a modest pace, with consumer spending and travel and tourism increasing modestly, transportation and manufacturing demand continuing to improve, and agricultural conditions deteriorating. Loan growth in the Sixth District was driven by consumer and specialized lending, while residential and commercial real estate conditions were little changed, on balance. The Federal Reserve’s Eighth District noted that economic activity increased slightly, banking conditions were largely unchanged, consumer spending was stable and manufacturing softened slightly, although firms tied to energy and defense reported stronger demand. Eighth District contacts also reported stable credit quality overall, with some early-stage weakness among small business borrowers whose risks were more closely tied to input costs and fuel prices, and an uptick in overdraft frequency that signaled tighter household budgets and reduced discretionary spending. The Federal Reserve’s Eleventh District reported modest economic growth, with loan volume and loan demand increasing, driven in part by commercial real estate lending, while credit standards and terms tightened slightly, loan pricing continued to decline and loan performance weakened modestly. Eleventh District bankers also reported less optimistic outlooks and continued to express concern regarding the impact of higher fuel prices, geopolitical developments, tariffs and uncertainty regarding the future path of interest rates.

Previous 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.

Current wording

Trustmark is continuing to monitor the impact of geopolitical conflicts, tariffs, higher fuel and transportation costs, inflationary pressures, changing consumer behavior and other administrative policies on its customer base, interest rates, loan demand and credit-related issues. Economic uncertainty or disruptions in the marketplace as a result of such factors could reduce loan demand, increase funding costs, pressure net interest margin 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, geopolitical developments or broader economic conditions could have on Trustmark’s customer base, credit quality, financial condition or results of operations.

Previous 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.

Current wording

Trustmark reported net income of $63.5 million, or basic and diluted earnings per share (EPS) of $1.09 and $1.08, respectively, in the second quarter of 2026, compared to $55.8 million, or basic and diluted EPS of $0.92, in the second quarter of 2025. Trustmark’s reported performance during the quarter ended June 30, 2026 produced a return on average tangible equity of 14.08%, a return on average assets of 1.33%, an average equity to average assets ratio of 11.23% and a dividend payout ratio of 22.94%, compared to a return on average tangible equity of 13.13%, a return on average assets of 1.21%, an average equity to average assets ratio of 11.07% and a dividend payout ratio of 26.09% during the quarter ended June 30, 2025.

Previous 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.

Current wording

Total revenue, which is defined as net interest income plus noninterest income, for the three months ended June 30, 2026 was $208.2 million, an increase of $9.6 million, or 4.8%, when compared to the same time period in 2025. The increase in total revenue when the three months ended June 30, 2026 is compared to the same time period in 2025, reflecting an increase in both net interest income and noninterest income. Total revenue for the six months ended June 30, 2026 was $411.1 million, an increase of $17.8 million, or 4.5%, when compared to the same time period in 2025, principally due to an increase in net interest income.

Previous 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.

Current wording

Noninterest expense for the three and six months ended June 30, 2026 totaled $133.7 million and $265.8 million, respectively, an increase of $8.6 million, or 6.8%, and $16.7 million, or 6.7%, respectively, when compared to the same time periods in 2025, principally due to increases in salaries and employee benefits, services and fees and equipment expense. Salaries and employee benefits totaled $73.0 million and $147.2 million, respectively, for the three and six months ended June 30, 2026, an increase of $4.7 million, or 6.9%, and $10.4 million, or 7.6%, respectively, when compared to the same time periods in 2025, principally due to increases in salaries expense primarily due to general merit increases and employees, commission expense related to mortgage origination production and brokerage activity, management annual performance incentives, incentive stock compensation expense, payroll taxes, contributions to employee retirement funds and medical insurance expense. Services and fees totaled $29.7 million for the three months ended June 30, 2026, an increase of $2.8 million, or 10.2%, when compared to the same time period in 2025, principally due to increases in data processing expenses related to software. Services and fees totaled $57.7 million for the six months ended June 30, 2026, an increase of $4.4 million, or 8.4%, when compared to the same time period in 2025, principally due to increases in data processing expenses related to software, business process outsourcing expense and advertising expense. Equipment expense totaled $7.3 million and $14.3 million, respectively for the three and six months ended June 30, 2026, an increase of $1.1 million, or 17.1%, and $1.8 million, or 14.0%, respectively, when compared to the same time periods in 2025, principally due to an increase in data processing equipment expense.

Previous wording

Trustmark’s PCL, LHFI for the three months ended March 31, 2026 totaled $4.7 million 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. 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. Please see the section captioned “Provision for Credit Losses” for additional information regarding the PCL on LHFI and off-balance sheet credit exposures.

Current wording

The PCL, off-balance sheet credit exposures totaled $1.5 million and a negative $417 thousand, respectively, for the three and six months ended June 30, 2026, compared to a negative $670 thousand and a negative $3.5 million, respectively, for the same time periods in 2025, an increase in provision expense of $2.2 million and $3.1 million, respectively, primarily due to reserves released during the second quarter of 2025 due to positive credit migration as well as increases in the quantitative reserve rates due to changes in the macroeconomic forecast and the historical utilization rates. The PCL, off-balance sheet credit exposures for the three months ended June 30, 2026, was primarily attributable to an increase in the quantitative reserve rate due to changes in the macroeconomic forecast and an increase in the utilization rates for unfunded commitments. The release in the PCL, off-balance sheet credit exposures for the six months ended June 30, 2026, was primarily attributable to a decrease in unfunded commitment balances partially offset by an increase in the quantitative reserve rate due to changes in the macroeconomic forecast and an increase in the utilization rates for unfunded commitments. Please see the section captioned “Provision for Credit Losses” for additional information regarding the PCL on LHFI and off-balance sheet credit exposures.

Previous 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.”

Current wording

LHFI totaled $13.913 billion at June 30, 2026, an increase of $238.8 million, or 1.7%, compared to December 31, 2025. The increase in LHFI during the first six months of 2026 was primarily due to net growth in commercial and industrial loans and other commercial loans and leases, partially offset by net declines in 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

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.

Current wording

At June 30, 2026, nonperforming assets totaled $54.9 million, a decrease of $36.5 million, or 39.9%, compared to December 31, 2025, primarily due to the sale of 1-4 family mortgage loans during the second quarter of 2026. Nonaccrual LHFI totaled $49.7 million at June 30, 2026, a decrease of $34.7 million, or 41.2%, relative to December 31, 2025, primarily as a result of the sale of nonaccrual 1-4 family mortgage loans in the Mississippi market region, partially offset by one large commercial credit in the Mississippi market region and one large commercial credit in the Alabama market region placed on nonaccrual status. Other real estate totaled $5.2 million at June 30, 2026, a decrease of $1.7 million, or 25.1%, when compared to December 31, 2025, principally due to properties sold in the Mississippi market region partially offset by properties foreclosed in the Mississippi and Alabama market regions.

Previous 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.

Current wording

Total deposits were $16.071 billion at June 30, 2026, an increase of $571.4 million, or 3.7%, compared to December 31, 2025. During the first six months of 2026, noninterest-bearing deposits increased $337.0 million, or 11.1%, principally due to growth in commercial and consumer noninterest-bearing demand deposit accounts. Interest-bearing deposits increased $234.4 million, or 1.9%, during the first six months of 2026, primarily due to growth in public and commercial interest checking accounts, commercial money market deposit accounts (MMDA), brokered certificates of deposits (CDs), commercial and public CDs and consumer savings accounts, partially offset by declines in consumer interest checking accounts, MMDA and CDs.

Previous wording

Federal funds purchased totaled $385.0 million at March 31, 2026, a decrease of $60.0 million, or 13.5%, compared to December 31, 2025. Other borrowings totaled $292.5 million at March 31, 2026, a decrease of $72.2 million, or 19.8%, compared to December 31, 2025, principally due to a decrease in outstanding short-term FHLB advances with the FHLB of Dallas. The decrease in federal funds purchased and short-term FHLB advances during the first three months of 2026 reflected changes in funding needs principally due to a decline in the balance held at the FRBA included in other earning assets.

Current wording

Federal funds purchased totaled $360.0 million at June 30, 2026, a decrease of $85.0 million, or 19.1%, compared to December 31, 2025. Other borrowings totaled $137.9 million at June 30, 2026, a decrease of $226.9 million, or 62.2%, compared to December 31, 2025, principally due to a decrease in outstanding short-term FHLB advances with the FHLB of Dallas. The decrease in federal funds purchased and short-term FHLB advances during the first six months of 2026 reflected changes in funding needs principally due to deposit growth and a decline in the balance held at the FRBA included in other earning assets.

Previous wording

In March 2026, Mississippi enacted Senate Bill 2383, which amended the Mississippi banking code to, among other things, require prior approval from the MDBCF for the declaration and payment of dividends by a Mississippi-chartered bank only under the following conditions: (i) the bank is subject to a corrective plan or enforcement action; (ii) after making the dividend, the bank would be undercapitalized; or (iii) the Commissioner of MDBCF has determined that conditions exist at the bank that pose a risk to its safety and soundness. Senate Bill 2383 will take effect on July 1, 2026.

Current wording

In March 2026, Mississippi enacted Senate Bill 2383, which amended the Mississippi banking code to, among other things, require prior approval from the MDBCF for the declaration and payment of dividends by a Mississippi-chartered bank only under the following conditions: (i) the bank is subject to a corrective plan or enforcement action; (ii) after making the dividend, the bank would be undercapitalized; or (iii) the Commissioner of MDBCF has determined that conditions exist at the bank that pose a risk to its safety and soundness. Senate Bill 2383 became effective on July 1, 2026.

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 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.

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 annualized 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 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 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).

Current wording

Net interest income-FTE for the three and six months ended June 30, 2026 increased $7.2 million, or 4.4%, and $15.9 million, or 5.0%, respectively, when compared with the same time periods in 2025. The increase in net interest income-FTE when the three months ended June 30, 2026 is compared to the same time period in 2025 was principally due to declines in interest on deposits and interest on federal funds purchased and securities sold under repurchase agreements. The increase in net interest income-FTE when the six months ended June 30, 2026 is compared to the same time period in 2025 was principally due to a decline in interest on deposits and interest on federal funds purchased and securities sold under repurchase agreements and increases in interest and fees on LHFS and LHFI-FTE and interest on securities, partially offset by a decline in other interest income. The net interest margin-FTE for the three and six months ended June 30, 2026 increased 3 basis points to 3.84% and 4 basis points to 3.82%, respectively, when compared to the same time periods in 2025, principally due to a decrease in the cost of interest-bearing liabilities, partially offset by a decline in the yield on loans (LHFS and LHFI).

Previous wording

Average interest-earning assets for the three months ended March 31, 2026 totaled $17.427 billion compared to $16.737 billion for the same time period in 2025, an increase of $689.9 million, or 4.1%, primarily reflecting increases in average LHFI, average securities available for sale and average LHFS, partially offset by declines in average securities held to maturity. Average LHFI increased $602.1 million, or 4.6%, when the three months ended March 31, 2026 is compared to the same time period in 2025, principally due to net growth in average balances of commercial and industrial loans, other commercial loans and leases and state and other political subdivision loans, partially offset by net declines in average LHFI secured by real estate. Average securities available for sale increased $127.0 million, or 7.4%, when the three months ended March 31, 2026 is compared to the same time period in 2025, principally due to available for sale securities purchased partially offset by calls, maturities and pay-downs of the loans underlying GSE guaranteed securities. Average LHFS increased $96.4 million, or 52.7%, when the three months ended March 31, 2026 is compared to the same time period in 2025, reflecting increases in average balances of loans in the process of being sold and GNMA loans eligible for repurchase. Average securities held to maturity declined $139.2 million, or 10.5%, when the three months ended March 31, 2026 is compared to the same time period in 2025, principally due to calls, maturities and pay-downs of the loans underlying GSE guaranteed securities.

Current wording

Average interest-earning assets for the three and six months ended June 30, 2026 totaled $17.625 billion and $17.526 billion, respectively, compared to $17.007 billion and $16.873 billion, respectively, for the same time periods in 2025, an increase of $617.4 million, or 3.6%, and $653.4 million, or 3.9%, respectively, primarily reflecting increases in average LHFI and average LHFS. Average LHFI increased $553.7 million, or 4.2%, and $577.8 million, or 4.4%, respectively, when the three and six months ended June 30, 2026 are compared to the same time periods in 2025, principally due to net growth in average balances of commercial and industrial loans, other commercial loans and leases and state and other political subdivision loans, partially offset by net declines in average LHFI secured by real estate. Average LHFS increased $88.3 million, or 43.1%, and $92.4 million, or 47.6%, respectively, when the three and six months ended June 30, 2026 are compared to the same time periods in 2025, reflecting increases in average balances of loans in the process of being sold and GNMA loans eligible for repurchase.

Previous wording

Interest income-FTE for the three months ended March 31, 2026 totaled $235.0 million, an increase of $3.2 million, or 1.4%, when compared to the same time period in 2025. The yield on total interest-earning assets for the three months ended March 31, 2026 decreased 15 basis points to 5.47%, when compared to the same time period in 2025. The increase in interest income-FTE for the three months ended March 31, 2026 was primarily due to an increase in interest and fees on LHFS and LHFI-FTE. During the three months ended March 31, 2026, interest and fees on LHFS and LHFI-FTE increased $3.2 million, or 1.6%, while the yield on LHFS and LHFI decreased 22 basis points to 5.93%, when compared to the same time period in 2025, primarily due to loan growth partially offset by a decline in interest rates.

Current wording

Interest income-FTE for the three and six months ended June 30, 2026 totaled $240.4 million and $475.4 million, respectively, relatively unchanged when the second quarter of 2026 is compared to the second quarter of 2025, and an increase of $3.5 million, or 0.7%, when the first six months of 2026 is compared to the same time period in 2025. The yield on total interest-earning assets for the three and six months ended June 30, 2026 decreased 19 basis points and 17 basis points, respectively, to 5.47%, when compared to the same time periods in 2025. The increase in interest income-FTE for the six months ended June 30, 2026 was primarily due to increases in interest and fees on LHFS and LHFI-FTE and interest on securities partially offset by a decline in other interest income. During the six months ended June 30, 2026, interest and fees on LHFS and LHFI-FTE increased $3.7 million, or 0.9%, while the yield on LHFS and LHFI decreased 24 basis points to 5.93%, when compared to the same time period in 2025, primarily due to loan growth partially offset by a decline in interest rates. Interest on securities increased $1.4 million, or 2.7%, when the six months ended June 30, 2026 is compared to the same time period in 2025, while the yield on securities increased 9 basis points to 3.55%, principally due to purchases of securities available for sale net of calls, pay-downs and maturities of securities available for sale. Other interest income declined $1.6 million, or 18.4%, when the six months ended June 30, 2026 is compared to the same time period in 2025, while the rate on other earning assets declined 61 basis points to 3.82%, principally due to a decline in the interest earned on balances held at the FRBA which was primarily attributable to the FRB’s decision to reduce the rate paid on balances held at the FRBA during the fourth quarter of 2025.

Previous 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.

Current wording

Average interest-bearing liabilities for the three and six months ended June 30, 2026 totaled $13.501 billion and $13.504 billion, respectively, compared to $13.019 billion and $12.949 billion, respectively, for the same time periods in 2025, an increase of $482.1 million, or 3.7%, and $555.7 million, or 4.3%, respectively, primarily due to an increase in average interest-bearing deposits, partially offset by a decline in average other borrowings. Average interest-bearing deposits for the three and six months ended June 30, 2026 increased $568.9 million, or 4.7%, and $594.6 million, or 5.0%, respectively, when compared to the same time periods in 2025, reflecting increases in average interest-bearing demand deposits and average time deposits partially offset by a decrease in average savings deposits. Average other borrowings for the three and six months ended June 30, 2026 decreased $71.1 million, or 11.5%, and $43.3 million, or 7.5%, respectively, when compared to the same time periods in 2025, principally due to the decrease in average short-term FHLB advances outstanding with the FHLB of Dallas partially offset by increases in average balances of GNMA loans eligible for repurchase and average subordinated notes. The increase in the average subordinated notes for the three and six months ended June 30, 2026 when compared to the same time periods in 2025 was 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 principal amount of the notes issued and sold in 2020.

Previous wording

Interest expense for the three months ended March 31, 2026 totaled $71.5 million, a decrease of $5.6 million, or 7.2%, when compared with the same time period in 2025, while the rate on total interest-bearing liabilities decreased 28 basis points to 2.15%, primarily reflecting declines in interest on deposits. Interest on deposits for the three months ended March 31, 2026 decreased $5.0 million, or 7.4%, while the rate on interest-bearing deposits decreased 28 basis points to 2.02%, when compared to the same time period in 2025, primarily due to declines in interest rates paid on interest-bearing deposit accounts.

Current wording

Interest expense for the three and six months ended June 30, 2026 totaled $71.8 million and $143.3 million, respectively, a decrease of $6.9 million, or 8.7%, and $12.5 million, or 8.0%, respectively, when compared with the same time periods in 2025, while the rate on total interest-bearing liabilities decreased 29 basis points to 2.13% and 2.14%, respectively, primarily reflecting declines in interest on deposits and interest on federal funds purchased and securities sold under repurchase agreements. Interest on deposits for the three and six months ended June 30, 2026 decreased $5.5 million, or 8.1%, and $10.5 million, or 7.8%, while the rate on interest-bearing deposits decreased 28 basis points to 2.00% and 2.01%, respectively, when compared to the same time periods in 2025, primarily due to declines in interest rates paid on interest-bearing deposit accounts. Interest on federal funds purchased and securities sold under repurchase agreements for the three and six ended June 30, 2026 declined $765 thousand, or 17.0%, and $1.1 million, or 12.3%, respectively, while the rate on federal funds purchased and securities sold under repurchase agreements decreased 60 basis points and 58 basis points to 3.75%, respectively, when compared to the same time periods in 2025, primarily reflecting declines in the target federal funds rate by the FRB during the fourth quarter of 2025.

Previous 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):

Current 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):

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 $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.

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 total PCL, LHFI for the three and six months ended June 30, 2026 totaled a negative $4.8 million and a negative $87 thousand, respectively, and included a provision release of $9.2 million as a result of the sale of 1-4 family mortgage loans during the second quarter of 2026. The PCL, LHFI excluding the sale of 1-4 family mortgage loans totaled $4.5 million and $9.1 million, respectively, for the three and six months ended June 30, 2026, compared to a PCL, LHFI of $5.3 million and $13.5 million, respectively, for the same time periods in 2025, a decrease of $894 thousand, or 16.7%, and $4.3 million, or 32.2%, respectively. The decrease in the PCL, LHFI excluding the sale of 1-4 family mortgage loans when the three and six months ended June 30, 2026 are compared to the same time periods in 2025 was principally due to a decline in required reserves as a result of positive credit migration, resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025, a decline in loan growth and changes in the macroeconomic forecast, partially offset by an increase in required reserves on individually analyzed credits. The PCL, LHFI excluding the sale of 1-4 family mortgage loans for the three months ended June 30, 2026 was principally attributable to specific reserves on individually analyzed loans, changes in the macroeconomic forecast and loan growth, partially offset by positive credit migration. The PCL, LHFI excluding the sale of 1-4 family mortgage loans for the six months ended June 30, 2026 was principally attributable to specific reserves on individually analyzed loans and loan growth, partially offset by positive credit migration and changes in the macroeconomic forecast.

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 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.

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 $1.5 million and a negative $417 thousand, respectively, for the three and six months ended June 30, 2026, compared to a negative $670 thousand and a negative $3.5 million, respectively, for the same time periods in 2025, an increase in provision expense of $2.2 million and $3.1 million, respectively, primarily due to reserves released during the second quarter of 2025 due to positive credit migration as well as increases in the quantitative reserve rates due to changes in the macroeconomic forecast and the historical utilization rates. The PCL, off-balance sheet credit exposures for the three months ended June 30, 2026, was primarily attributable to an increase in the quantitative reserve rate due to changes in the macroeconomic forecast and an increase in the utilization rates for unfunded commitments. The release in the PCL, off-balance sheet credit exposures for the six months ended June 30, 2026, was primarily attributable to a decrease in unfunded commitment balances partially offset by an increase in the quantitative reserve rate due to changes in the macroeconomic forecast and an increase in the utilization rates for unfunded commitments.

Previous 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.

Current wording

Representing a significant component of mortgage banking income is the gain on sales of loans, net. The decrease in the gain on sales of loans, net when the three and six months ended June 30, 2026 are compared to the same time periods in 2025, was primarily the result of a decrease in the market valuation adjustment partially offset by an increase in the volume of loans sold. Loan sales totaled $306.7 million and $596.8 million, respectively, for the three and six months ended June 30, 2026, an increase of $31.8 million, or 11.6%, and $66.1 million, or 12.5%, respectively, when compared with the same time period in 2025.

Previous wording

The decrease in other, net when the three months ended March 31, 2026 is compared to the same time period in 2025 was principally due to a decrease in other miscellaneous income, which was primarily the 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.

Current wording

The increase in other, net when the three months ended June 30, 2026 is compared to the same time period in 2025 was principally due to the total gain on the sale of the Visa A shares and fair value adjustment of the Visa C shares and an increase in income from other partnership investments, partially offset by the loss on the sale of the 1-4 family mortgage loans.

Previous 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.

Current wording

The increase in salaries and employee benefits when the three and six months ended June 30, 2026 are compared to the same time periods in 2025 was principally due to increases in salaries expense primarily due to general merit increases, commission expense related to mortgage origination production and brokerage activity, management annual performance incentives, incentive stock compensation expense, payroll taxes, contributions to employee retirement funds and medical insurance expense.

Previous 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.

Current wording

The increase in services and fees when the three months ended June 30, 2026 is compared to the same time period in 2025 was principally due to increases in data processing expenses related to software. The increase in services and fees when the six months ended June 30,

Previous 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.

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 six months ended June 30, 2026 and 2025.

Previous 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.”

Current wording

Net interest income for the General Banking Segment increased $13.2 million, or 4.3%, when the six months ended June 30, 2026 is compared with the same time period in 2025. The increase in net interest income was primarily due to declines in interest on deposits, interest on federal funds purchased and securities sold under repurchase agreements and interest on FHLB advances as well as increases in interest and fees on LHFS and LHFI and interest on securities, partially offset by a decline in other interest income. The net PCL (LHFI and off-balance sheet credit exposures) for the General Banking Segment for the six months ended June 30, 2026 totaled a negative $727 thousand compared to a net PCL of $10.0 million for the same time period in 2025, a decrease of $10.7 million, principally due to reserves released as a result of the sale of 1-4 family mortgage loans during the second quarter of 2026. 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 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.”

Current wording

Noninterest income for the General Banking Segment was relatively unchanged when the first six months of 2026 is compared to the same time period in 2025. 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 $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.”

Current wording

Noninterest expense for the General Banking Segment increased $14.8 million, or 6.3%, when the first six months of 2026 is compared with the same time period in 2025, principally due to increases in salaries and employee benefits, services and fees and equipment expense. 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 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.

Current wording

Net income for the Wealth Management Segment for the first six months of 2026 increased $1.8 million, or 35.7%, when compared to the same time period in 2025, reflecting increases in net interest income and noninterest income, partially offset by an increase in noninterest expense. Net interest income for the Wealth Management Segment for the six months ended June 30, 2026 increased $2.2 million, or 59.4%, when compared to the same time period in 2025, principally due to an increase in the earnings credits assigned to the Wealth Management Segment related to deposits generated by the Private Banking group. The net PCL for the six months ended June 30, 2026 totaled $223 thousand compared to a negative net PCL of $20 thousand for the same period in 2025, an increase of $243 thousand. Noninterest income for the Wealth Management Segment, which primarily includes income related to investment management, trust and brokerage services, increased $2.4 million, or 12.3%, when the first six months of 2026 is compared to the same time period in 2025, primarily due to an increase in income from brokerage and trust management services. Noninterest expense for the Wealth Management Segment increased $1.9 million, or 11.9%, when the first six 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 and general merit increases.

Previous 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.

Current wording

At June 30, 2026 and 2025, Trustmark held assets under management and administration of $11.435 billion and $9.818 billion, respectively, and brokerage assets of $2.901 billion and $2.757 billion, respectively.

Previous 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.

Current wording

For the three and six months ended June 30, 2026, Trustmark’s combined effective tax rate was 18.3% and 17.9%, respectively, compared to 18.9% and 18.4%, respectively, for the same time periods 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 $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%.

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 $17.526 billion, or 92.2% of total average assets, for the six months ended June 30, 2026, compared to $16.873 billion, or 92.1% of total average assets, for the six months ended June 30, 2025, an increase of $653.4 million, or 3.9%.

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 and 4.3 years at March 31, 2026 and December 31, 2025, respectively.

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 4.3 years at both June 30, 2026 and December 31, 2025, respectively.

Previous wording

When compared to December 31, 2025, total investment securities decreased by $10.8 million, or 0.3%, during the first three months of 2026. This decrease resulted primarily from calls, maturities and pay-downs of the loans underlying GSE guaranteed securities and a decrease in the fair market value of the available for sale securities, partially offset by purchases of available for sale securities. Trustmark sold no securities during the first three months of 2026 or 2025.

Current wording

When compared to December 31, 2025, total investment securities decreased by $7.8 million, or 0.3%, during the first six months of 2026. This decrease resulted primarily from calls, maturities and pay-downs of the loans underlying GSE guaranteed securities and a decrease in the fair market value of the available for sale securities, partially offset by purchases of available for sale securities. Trustmark sold no securities during the first six months of 2026 or 2025.