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). 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.

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 September 30, 2026, TB had total assets of $19.106 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 2,583 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).

Current wording

Through TB and its other subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,574 full-time equivalent associates (measured at September 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 sold a portfolio of 1-4 family mortgage loans that were primarily three payments delinquent and/or nonaccrual totaling $73.8 million, which resulted in a loss of $11.3 million. Total reserves released or used due to the sale of 1-4 family mortgage loans were $15.5 million, of which $9.2 million ($6.9 million, net of taxes) were released and recorded to PCL, LHFI sale of 1-4 family mortgage loans and $6.3 million (the credit related portion of the loss) were recorded as charge-offs against the ACL, LHFI. The noncredit-related portion of the loss totaled $5.0 million ($3.8 million, net of taxes) and was recorded to noninterest income in other, net. In total, the sale of the 1-4 family mortgage loans resulted in an increase in pre-tax net income of $4.2 million ($3.2 million net of taxes).

Current wording

LHFI sale of 1-4 family mortgage loans and $6.3 million (the credit related portion of the loss) were recorded as charge-offs against the ACL, LHFI. The noncredit-related portion of the loss totaled $5.0 million ($3.8 million, net of taxes) and was recorded to noninterest income in other, net. In total, the sale of the 1-4 family mortgage loans resulted in an increase in pre-tax net income of $4.2 million ($3.2 million, net of taxes).

Previous wording

TB and Visa completed an exchange, offered by Visa to institutional holders of certain classes of its common stock, in which TB received shares of Visa Class B-3 common stock (Visa B-3 shares) and Visa Class C common stock (Visa C shares) for its outstanding shares of Visa Class B-2 common stock (Visa B-2 shares). Two-thirds of the Visa C shares received by TB were converted to Visa Class A common stock (Visa A shares) pursuant to the terms thereof and subsequently sold, resulting in a gain of $3.3 million ($2.5 million, net of taxes). The remaining one-third of the Visa C shares received by TB were recognized at fair value, which resulted in a gain of $1.7 million ($1.2 million, net of taxes). The total gain on the Visa shares was recorded to noninterest income in other, net. The Visa B-3 shares were recorded at their nominal carrying value.

Current wording

TB and Visa completed an exchange, offered by Visa to institutional holders of certain classes of its common stock, in which TB received shares of Visa Class B-3 common stock (Visa B-3 shares) and Visa Class C common stock (Visa C shares) for its outstanding shares of Visa Class B-2 common stock (Visa B-2 shares). Two-thirds of the Visa C shares received by TB were converted to Visa Class A common stock (Visa A shares) pursuant to the terms thereof and subsequently sold, resulting in a gain of $3.3 million ($2.5 million, net of taxes). The remaining one-third of the Visa C shares received by TB were recognized at fair value, which resulted in a gain of $1.7 million ($1.2 million, net of taxes). During the third quarter of 2026, TB converted the remaining one-third of Visa C shares to Visa A shares and subsequently sold them for approximately the same carrying value as of June 30, 2026. The total gain on the Visa shares was recorded to noninterest income in other, net. The Visa B-3 shares were recorded at their nominal carrying value.

Previous 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.

Current wording

In addition to these non-routine transactions, Trustmark's financial results for the three and nine months ended September 30, 2026 reflected continued growth in net interest income, 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 October 27, 2026, Trustmark’s Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable December 15, 2026, to shareholders of record on December 1, 2026.

Previous 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.

Current wording

Economic activity during the first nine months of 2026 expanded at a moderate pace, supported by continued consumer spending and business investment, including investment in artificial intelligence (AI) infrastructure. Labor market conditions remained generally stable despite uneven monthly job gains, while high mortgage rates and soft sales continued to constrain housing activity. Inflation remained elevated as higher energy and housing costs offset signs of easing in certain core measures, and historically low savings rates increased consumer vulnerability. Economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, including the conflicts in Ukraine and the Middle East, the current United States presidential administration's policies, tariffs, 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

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.

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 for most of 2026. In September 2026, the FRB increased the target federal funds rate to a range of 3.75% to 4.00%, and increased the rate it pays on reserves to 3.90%. The FRB stated that economic activity was expanding at a solid pace, supported by resilient domestic spending, strong productivity growth and robust capital investment; job gains had kept pace with the workforce and unemployment had changed little, while inflation remained elevated. The FRB indicated that the rate increase was intended to support a timelier return of inflation to its 2% objective and continued its policy of maintaining ample reserves in the banking system. Rate increases generally increase the competitive pressures on Trustmark's deposit cost of funds. While rate cuts potentially reduce those competitive pressures, they increase 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 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:

Current wording

In the August and October 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 July 7, 2026 through August 24, 2026 and August 25, 2026 through October 5, 2026) overall economic activity increased at a slight to moderate pace in most Districts. The August report indicated that economic activity increased at a slight to moderate pace in ten of the twelve Districts, while two Districts reported no change. The October report indicated moderate growth in economic activity in two Districts, modest growth in three Districts, slight growth in four Districts and no significant change in three Districts. Manufacturing was a principal source of strength, particularly activity related to defense, energy, semiconductors and data centers, while activity in many other sectors showed little growth. Reports by the twelve Districts noted the following during the reporting periods:

Previous 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.

Current wording

Trustmark is continuing to monitor the effects of modest and uneven economic growth, elevated energy and transportation costs, tariffs, inflationary pressures, geopolitical developments, changing consumer behavior and other administrative policies on its customer base, interest rates, loan demand and credit-related conditions. Recent Federal Reserve District reports indicate that consumer activity remains sensitive to affordability and financing costs, labor markets are broadly stable but hiring is cautious, and businesses continue to face elevated input costs and uncertainty. Economic uncertainty or market disruptions arising from these 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 in government policy, interest rates, geopolitical conditions or broader economic trends, or the effects such developments could have on Trustmark’s customer base, credit quality, financial condition or results of operations.

Previous 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.

Current wording

Trustmark reported net income of $58.1 million, or basic and diluted earnings per share (EPS) of $1.00, in the third quarter of 2026, compared to $56.8 million, or basic and diluted EPS of $0.94, in the third quarter of 2025. Trustmark’s reported performance during the quarter ended September 30, 2026 produced a return on average tangible equity of 12.72%, a return on average assets of 1.21%, an average equity to average assets ratio of 11.24% and a dividend payout ratio of 25.00%, compared to 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% during the quarter ended September 30, 2025.

Previous wording

Trustmark reported net income of $119.6 million, or basic and diluted EPS of $2.04 and $2.03, respectively, for the six months ended June 30, 2026, compared to $109.5 million, or basic and diluted EPS of $1.81 and $1.80, respectively, for the same time period in 2025. Trustmark's reported performance during the first six months of 2026 produced a return on average tangible equity of 13.34%, a return on average assets of 1.27%, an average equity to average assets ratio of 11.28% and a dividend payout ratio of 24.51%, compared to a return on average tangible equity of 13.13%, a return on average assets of 1.20%, an average equity to average assets ratio of 11.00% and a dividend payout ratio of 26.52% for the first six months of 2025.

Current wording

Trustmark reported net income of $177.7 million, or basic and diluted EPS of $3.04 and $3.03, respectively, for the nine months ended September 30, 2026, compared to $166.3 million, or basic and diluted EPS of $2.75 and $2.74, respectively, for the same time period in 2025. Trustmark's reported performance during the first nine months of 2026 produced a return on average tangible equity of 13.13%, a return on average assets of 1.25%, an average equity to average assets ratio of 11.26% and a dividend payout ratio of 24.67%, compared to a return on average tangible equity of 13.03%, a return on average assets of 1.21%, an average equity to average assets ratio of 11.09% and a dividend payout ratio of 26.18% for the first nine months of 2025.

Previous 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.

Current wording

Total revenue, which is defined as net interest income plus noninterest income, for the three months ended September 30, 2026 was $207.1 million, an increase of $4.8 million, or 2.4%, when compared to the same time period in 2025. Total revenue for the nine months ended September 30, 2026 was $618.3 million, an increase of $22.6 million, or 3.8%, when compared to the same time period in 2025. The increase in total revenue when the three and nine months ended September 30, 2026 are compared to the same time periods in 2025, was principally due to an increase in net interest income.

Previous 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.

Current wording

Noninterest expense for the three and nine months ended September 30, 2026 totaled $134.4 million and $400.3 million, respectively, an increase of $3.5 million, or 2.7%, and $20.2 million, or 5.3%, respectively, when compared to the same time periods in 2025. The increase in noninterest expense when the three months ended September 30, 2026 is compared to the same time period in 2025 was principally due to increases in salaries and employee benefits and services and fees, partially offset by a decline in other expense. The increase in noninterest expense when the first nine months of 2026 is compared to the same time period in 2025, was principally due to increases in salaries and employee benefits, services and fees and equipment expense, partially offset by a decline in other expense. Salaries and employee benefits totaled $74.7 million for the three months ended September 30, 2026, an increase of $3.2 million, or 4.4%, when compared to the same time period in 2025, principally due to increases in salaries expense primarily due to general merit increases, commission expense related to mortgage origination production and brokerage activity and incentive stock compensation expense, partially offset by a decline in annual management performance incentives. Salaries and employee benefits totaled $221.9 million for the nine months ended September 30, 2026, an increase of $13.6 million, or 6.5%, when compared to the same time period in 2025, principally due to increases in salaries expense primarily due to general merit increases, commission expense related to mortgage origination production and brokerage activity, incentive stock compensation expense, payroll taxes, contributions to employee retirement funds and medical insurance expense. Services and fees totaled $29.9 million for the three months ended September 30, 2026, an increase of $1.2 million, or 4.1%, when compared to the same time period in 2025, principally due to increases in data processing expenses related to software, partially offset by declines in business process outsourcing expenses and outside services and fees. Services and fees totaled $87.6 million for the nine months ended September 30, 2026, an increase of $5.6 million, or 6.8%, when compared to the same time period in 2025, principally due to increases in data processing expenses related to software and advertising expense, partially offset by a decline in outside services and fees. Equipment expense totaled $7.0 million and $21.2 million, respectively, for the three and nine months ended September 30, 2026, an increase of $548 thousand, or 8.5%, and $2.3 million, or 12.1%, respectively, when compared to the same time periods in 2025, principally due to an increase in data processing equipment expense. Other expense totaled $14.3 million for the three months ended September 30, 2026, a decrease of $2.2 million, or 13.2%, when compared to the same time period in 2025, principally due to declines in other real estate expense…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Trustmark’s 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.

Current wording

Trustmark’s total PCL, LHFI for the three and nine months ended September 30, 2026 totaled $1.2 million and $1.1 million, respectively. The PCL, LHFI for the nine months ended September 30, 2026 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 $1.2 million and $10.3 million, respectively, for the three and nine months ended September 30, 2026, compared to a PCL, LHFI of $1.4 million and $14.9 million, respectively, for the same time periods in 2025, a decrease of $211 thousand, or 15.2%, and $4.5 million, or 30.6%, respectively. The decrease in the PCL, LHFI excluding the sale of 1-4 family mortgage loans when the three months ended September 30, 2026 is compared to the same time period in 2025 was principally due to a decline in required reserves as a result of updates to various factors, positive credit migration, a decline in loan growth and changes in the macroeconomic forecast, partially offset by an increase in required reserves on individually analyzed credits and reserves released as a result of the resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025. The decrease in the PCL, LHFI excluding the sale of 1-4 family mortgage loans when the nine months ended September 30, 2026 is compared to the same time period in 2025 was principally due to a decline in required reserves as a result of positive credit migration, a decline in loan growth and changes in the macroeconomic forecast, partially offset by an increase in required reserves on individually analyzed credits and reserves released as a result of the resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025.

Previous 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.

Current wording

For the three months ended September 30, 2026, the PCL, off-balance sheet credit exposures was primarily attributable to an increase in unfunded commitment balances and an increase in the quantitative reserve rates due to changes in the macroeconomic forecast. For the nine months ended September 30, 2026, the PCL, off-balance sheet credit exposures was primarily attributable to an increase in the quantitative reserve rates due to changes in the macroeconomic forecast and an increase in the utilization rates for unfunded commitments, partially offset by a decrease in commercial construction unfunded commitment balances and positive credit migration. 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 $13.913 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.”

Current wording

LHFI totaled $13.869 billion at September 30, 2026, an increase of $194.9 million, or 1.4%, compared to December 31, 2025. The increase in LHFI during the first nine 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 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.”

Previous 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.

Current wording

At September 30, 2026, nonperforming assets totaled $57.0 million, a decrease of $34.3 million, or 37.6%, 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 $54.3 million at September 30, 2026, a decrease of $30.0 million, or 35.6%, relative to December 31, 2025, primarily due to the sale of nonaccrual 1-4 family mortgage loans in the Mississippi market region during the second quarter of 2026, pay-offs of nonaccrual loans in the Mississippi and Texas market regions as well as nonaccrual loans foreclosed in the Mississippi and Alabama market regions, partially offset by 1-4 family mortgage loans placed on nonaccrual status in the Mississippi market region as well as 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 $2.7 million at September 30, 2026, a decrease of $4.3 million, or 61.2%, when compared to December 31, 2025, principally due to properties sold in the Mississippi, Alabama and Tennessee market regions, partially offset by properties foreclosed in the Mississippi and Alabama market regions.

Previous 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.

Current wording

Total deposits were $16.058 billion at September 30, 2026, an increase of $558.3 million, or 3.6%, compared to December 31, 2025. During the first nine months of 2026, noninterest-bearing deposits increased $226.4 million, or 7.5%, principally due to growth in commercial and consumer noninterest-bearing demand deposit accounts. Interest-bearing deposits increased $331.9 million, or 2.7%, during the first nine months of 2026, primarily due to growth in commercial and public interest checking accounts, commercial money market deposit accounts (MMDA) and consumer, commercial and public certificates of deposit (CDs), partially offset by declines in brokered CDs and consumer interest checking and MMDA accounts.

Previous 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.

Current wording

Federal funds purchased totaled $205.0 million at September 30, 2026, a decrease of $240.0 million, or 53.9%, compared to December 31, 2025. Other borrowings totaled $136.3 million at September 30, 2026, a decrease of $228.5 million, or 62.6%, 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 nine months of 2026 reflected changes in funding needs principally due to deposit growth exceeding loan growth.

Previous wording

On July 18, 2025, President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) into law, establishing a federal licensing and supervisory framework for payment stablecoins and their issuers. The GENIUS Act may accelerate and increase the competition that non-traditional financial institutions pose to banks’ payment services but may also create opportunities for banks to hold stablecoin reserve assets, custody stablecoins or issue stablecoins. Several key provisions of the GENIUS Act require federal regulatory agencies to adopt implementing regulations, and the Act will take effect the earlier of 18 months after its enactment or 120 days after the agencies issue final implementing regulations.

Current wording

On July 18, 2025, President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) into law, establishing a federal licensing and supervisory framework for payment stablecoins and their issuers. The GENIUS Act may accelerate and increase the competition that non-traditional financial institutions pose to banks’ payment services but may also create opportunities for banks to hold stablecoin reserve assets, custody stablecoins or issue stablecoins. The GENIUS Act will take effect on January 18, 2027, and requires federal and state regulatory agencies to adopt regulations implementing several of the Act’s key provisions.

Previous wording

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

Current wording

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

Previous 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).

Current wording

Net interest income-FTE for the three and nine months ended September 30, 2026 increased $5.4 million, or 3.2%, and $21.3 million, or 4.4%, respectively, when compared with the same time periods in 2025. The increase in net interest income-FTE when the three months ended September 30, 2026 is compared to the same time period in 2025 was principally 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-FTE. The increase in net interest income-FTE when the nine months ended September 30, 2026 is compared to the same time period in 2025 was principally due to a decline in all categories of interest expense and increases in interest on securities and interest and fees on LHFS and LHFI-FTE, partially offset by a decline in other interest income. The net interest margin-FTE for the three and nine months ended September 30, 2026 increased 1 basis point to 3.84% and 3 basis points to 3.83%, respectively, when compared to the same time periods in 2025, principally due to a decrease in the cost of interest-bearing liabilities and an increase in the yield on securities, partially offset by a decline in the yield on loans (LHFS and LHFI).

Previous 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.

Current wording

Average interest-earning assets for the three and nine months ended September 30, 2026 totaled $17.615 billion and $17.556 billion, respectively, compared to $17.111 billion and $16.953 billion, respectively, for the same time periods in 2025, an increase of $504.0 million, or 2.9%, and $603.1 million, or 3.6%, respectively, reflecting increases in all categories of average earning assets. Average LHFI increased $332.7 million, or 2.5%, and $495.2 million, or 3.7%, respectively, when the three and nine months ended September 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 $62.5 million, or 28.9%, and $82.3 million, or 40.8%, respectively, when the three and nine months ended September 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. Average securities increased $58.6 million, or 1.9%, and $22.4 million, or 0.7%, respectively, when the three and nine months ended September 30, 2026 are compared to the same time periods in 2025, principally due to securities purchased net of sales, calls, prepayments and maturities of securities. Average other earning assets increased $50.2 million, or 12.9%, and $3.2 million, or 0.8%, respectively, when the three and nine months ended September 30, 2026 are compared to the same time periods in 2025, principally due to increases in the average balances held at the FRBA and the FHLB and average margin futures-options, partially offset by a decline in the average balance of FHLB equity stock held by Trustmark.

Previous 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.

Current wording

Interest income-FTE for the three and nine months ended September 30, 2026 totaled $243.8 million and $719.2 million, respectively, a decrease of $1.7 million, or 0.7%, and an increase of $1.8 million, or 0.3%, respectively, when the three and nine months ended September 30, 2026 are compared to the same time periods in 2025. The yield on total interest-earning assets for the three and nine months ended September 30, 2026 decreased 20 basis points to 5.49% and 18 basis points to 5.48%, respectively, when compared to the same time periods in 2025. The decrease in interest income-FTE when the three months ended September 30, 2026 is compared to the same time period in 2025, was primarily due to a decrease in interest and fees on LHFS and LHFI-FTE, partially offset by an increase in interest on securities. The increase in interest income-FTE when the nine months ended September 30, 2026 is compared to the same time period in 2025, was primarily due to increases in interest on securities and interest and fees on LHFS and LHFI-FTE, partially offset by a decline in other interest income. Interest and fees on LHFS and LHFI-FTE declined $2.6 million, or 1.2%, when the three months ended September 30, 2026 is compared to the same time period in 2025, while the yield on LHFS and LHFI decreased 24 basis points to 5.97%, primarily reflecting a decline in interest rates. During the nine months ended September 30, 2026, interest and fees on LHFS and LHFI-FTE increased $1.0 million, or 0.2%, while the yield on LHFS and LHFI decreased 25 basis points to 5.94%, 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 $1.3 million, or 4.8%, and $2.7 million, or 3.4%, when the three and nine months ended September 30, 2026 are compared to the same time periods in 2025, while the yield on securities increased 10 basis points to 3.60% and 9 basis points to 3.56%, respectively, principally due to the restructuring of the investment securities portfolio during the third quarter of 2026. In September 2026, Trustmark restructured its investment securities portfolio by selling securities available for sale with an amortized cost of $629.5 million that had a weighted-average yield of approximately 1.4% and reinvesting the proceeds with the purchase of $628.0 million of available for sale securities with a weighted-average yield of approximately 5.0%. Other interest income declined $1.9 million, or 14.7%, when the nine months ended September 30, 2026 is compared to the same time period in 2025, while the yield on other earning assets declined 67 basis points to 3.72%, 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 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.

Current wording

Average interest-bearing liabilities for the three and nine months ended September 30, 2026 totaled $13.392 billion and $13.467 billion, respectively, compared to $13.052 billion and $12.984 billion, respectively, for the same time periods in 2025, an increase of $339.4 million, or 2.6%, and $482.8 million, or 3.7%, respectively, primarily due to an increase in average interest-bearing deposits, partially offset by declines in average federal funds purchased and securities sold under repurchase agreements and average other borrowings. Average interest-bearing deposits for the three and nine months ended September 30, 2026 increased $664.1 million, or 5.5%, and $618.0 million, or 5.1%, respectively, when compared to the same time periods in 2025, primarily reflecting increases in average interest-bearing demand deposits and average time deposits. Average federal funds purchased and securities sold under repurchase agreements for the three and nine months ended September 30, 2026 decreased $225.7 million, or 53.8%, and $73.2 million, or 17.7%, respectively, when compared to the same time periods in 2025, principally due to a decline in upstream federal funds purchased and the elimination of the customer sweep product during the third quarter of 2025. Average other borrowings for the three and nine months ended September 30, 2026 decreased $99.0 million, or 21.1%, and $62.1 million, or 11.5%, 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 nine months ended September 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 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.

Current wording

Interest expense for the three and nine months ended September 30, 2026 totaled $73.3 million and $216.6 million, respectively, a decrease of $7.0 million, or 8.7%, and $19.5 million, or 8.2%, respectively, when compared with the same time periods in 2025, while the rate on total interest-bearing liabilities decreased 27 basis points to 2.17% and 28 basis points to 2.15%, respectively, primarily reflecting declines in all categories of interest expense. Interest on deposits for the three and nine months ended September 30, 2026 decreased $3.5 million, or 4.9%, and $14.0 million, or 6.8%, while the rate on interest-bearing deposits decreased 23 basis points to 2.09% and 26 basis points to 2.04%, 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 nine months ended September 30, 2026 declined $2.8 million, or 60.2%, and $3.9 million, or 28.8%, respectively, while the rate on federal funds purchased and securities sold under repurchase agreements decreased 60 basis points to 3.77% and 58 basis points to 3.76%, 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. Other interest expense for the three and nine months ended September 30, 2026 declined $742 thousand, or 16.2%, and $1.6 million, or 10.0%, respectively, when compared to the same time periods in 2025, while the rate on other borrowings increased 24 basis points to 4.12% and 7 basis points to 3.95%, respectively, primarily due to the declines in the average balance of outstanding FHLB advances with the FHLB of Dallas, partially offset by an increase in interest expense on the 2025 Notes.

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 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.

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 nine months ended September 30, 2026 totaled $1.2 million and $1.1 million, respectively. The total PCL, LHFI for the nine months ended September 30, 2026 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 $1.2 million and $10.3 million, respectively, for the three and nine months ended September 30, 2026, compared to a PCL, LHFI of $1.4 million and $14.9 million, respectively, for the same time periods in 2025, a decrease of $211 thousand, or 15.2%, and $4.5 million, or 30.6%, respectively. The decrease in the PCL, LHFI excluding the sale of 1-4 family mortgage loans when the three months ended September 30, 2026 is compared to the same time period in 2025 was principally due to a decline in required reserves as a result of updates to various factors, positive credit migration, a decline in loan growth and changes in the macroeconomic forecast, partially offset by an increase in required reserves on individually analyzed credits and reserves released as a result of the resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025. The decrease in the PCL, LHFI excluding the sale of 1-4 family mortgage loans when the nine months ended September 30, 2026 is compared to the same time period in 2025 was principally due to a decline in required reserves as a result of positive credit migration, a decline in loan growth and changes in the macroeconomic forecast, partially offset by an increase in required reserves on individually analyzed credits and reserves released as a result of the resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025.

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 $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.

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 $1.1 million and $668 thousand, respectively, for the three and nine months ended September 30, 2026, compared to $295 thousand and a negative $3.2 million, respectively, for the same time periods in 2025, an increase in provision expense of $790 thousand and $3.9 million, respectively. The increase in the PCL, off-balance sheet credit exposures when the three months ended September 30, 2026 is compared to the same time period in 2025, was primarily due to an increase in unfunded commitment balances and reserves released as a result of the resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025, partially offset by positive credit migration and a decrease in reserves resulting from changes in the quantitative reserve rates due to changes in the macroeconomic forecast. The increase in the PCL, off-balance sheet credit exposures when the nine months ended September 30, 2026 is compared to the same time period in 2025, was primarily due to increases in the quantitative reserve rates due to changes in the macroeconomic forecast and the historical utilization rates, reserves released as a result of the resolution of the Credit Quality Review Qualitative Factor during the third quarter of 2025 and increases in unfunded commitment balances.

Previous wording

See the section captioned “Allowance for Credit Losses” for information regarding Trustmark’s ACL methodology as well as further analysis of the PCL.

Current wording

See the section captioned “ACL on LHFI and Off-Balance Sheet Credit Exposures” for information regarding Trustmark’s ACL methodology as well as further analysis of the PCL.

Previous 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.

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 nine months ended September 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 $340.5 million and $937.3 million, respectively, for the three and nine months ended September 30, 2026, an increase of $12.9 million, or 3.9%, and $79.0 million, or 9.2%, respectively, when compared with the same time periods in 2025.

Previous wording

Noninterest income for the three months ended June 30, 2026 totaled $42.6 million, an increase of $2.7 million, or 6.7%, when compared to the same time period in 2025, principally due to increases in other, net and wealth management. Noninterest income for the six months ended June 30, 2026 totaled $84.9 million, an increase of $2.4 million, or 3.0%, when compared to the same time period in 2025, principally due to an increase in wealth management. Other, net totaled $3.6 million for the three months ended June 30, 2026, an increase of $1.3 million, or 56.5%, when compared to the same time period in 2025, 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. Wealth management totaled $10.9 million and $21.3 million, respectively, for the three and six months ended June 30, 2026, an increase of $1.3 million, or 13.3%, and $2.1 million, or 11.1%, respectively, when compared to the same time periods in 2025, principally due to increases in income from brokerage and trust management services.

Current wording

The decrease in other, net when the three months ended September 30, 2026 is compared to the same time period in 2025 was principally due to a decline in other miscellaneous income, primarily due to a decline in cash management fees partially offset by an increase in gains on non-qualified benefit plans. The decrease in other, net when the nine months ended September 30, 2026 is compared to the same time period in 2025 was principally due to the loss on the sale of the 1-4 family mortgage loans and a decline in other miscellaneous income, partially offset by the total gain on the sale of the Visa A shares and fair value adjustment of the Visa C shares. The decrease in other miscellaneous income when the first nine months of 2026 is compared to the same time period in 2025, was principally due to declines in cash management fees and gains on sales of premises and equipment, partially offset by an increase in income from other partnership investments.

Previous 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.

Current wording

The increase in salaries and employee benefits when the three months ended September 30, 2026 is compared to the same time period 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 and incentive stock compensation expense, partially offset by a decline in annual management performance incentives. The increase in salaries and employee benefits when the nine months ended September 30, 2026 is compared to the same time period 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, 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 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,

Current wording

The increase in services and fees when the three months ended September 30, 2026 is compared to the same time period in 2025 was principally due to increases in data processing expenses related to software, partially offset by declines in business process outsourcing expenses and outside services and fees. The increase in services and fees when the nine months ended September 30, 2026 is compared to the same time period in 2025 was principally due to increases in data processing expenses related to software and advertising expense, partially offset by a decline in outside services and fees.

Previous wording

The increase in equipment expense when the three and six months ended June 30, 2026 are compared to the same time periods in 2025 was principally due to an increase in data processing equipment expense.

Current wording

The increase in equipment expense when the three and nine months ended September 30, 2026 are compared to the same time periods in 2025 was principally due to an increase in data processing equipment expense.

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 six months ended June 30, 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 nine months ended September 30, 2026 and 2025.

Previous 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.”

Current wording

Net interest income for the General Banking Segment increased $18.3 million, or 3.9%, when the nine months ended September 30, 2026 is compared with the same time period in 2025. The increase in net interest income was primarily due to declines in all categories of interest expense as well as an increase in 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 nine months ended September 30, 2026 totaled $1.5 million compared to a net PCL of $11.7 million for the same time period in 2025, a decrease of $10.1 million, or 86.9%, 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 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.”

Current wording

Noninterest income for the General Banking Segment decreased $1.9 million, or 2.0%, when the first nine months of 2026 is compared to the same time period in 2025, principally due to declines in other, net and service charges on deposit accounts. The decrease in other, net when the first nine months of 2026 is compared to the same time period in 2025 was primarily due to declines in cash management fees and gains on sales of premises and equipment, partially offset by an increase in income from other partnership investments. The decline in service charges on deposit accounts when the first nine months of 2026 is compared to the same time period in 2025 was primarily due to declines in service charges on consumer interest checking accounts, consumer demand deposit accounts and public interest checking accounts. 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; gain on sale-leaseback, 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 $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.”

Current wording

Noninterest expense for the General Banking Segment increased $17.9 million, or 5.0%, when the first nine months of 2026 is compared with the same time period in 2025, principally due to increases in salaries and employee benefits, data processing expense related to software, data processing equipment expense and office occupancy expense, partially offset by declines in FDIC assessment expense, other real estate expense, net and outside 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 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.

Current wording

September 30, 2026 totaled $225 thousand compared to a negative net PCL of $22 thousand for the same period in 2025, an increase of $247 thousand. Noninterest income for the Wealth Management Segment, which primarily includes income related to investment management, trust and brokerage services, increased $3.9 million, or 13.3%, when the first nine 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 $2.3 million, or 9.4%, when the first nine 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, and indirect expenses allocated to the Wealth Management Segment.

Previous 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.

Current wording

At September 30, 2026 and 2025, Trustmark held assets under management and administration of $11.408 billion and $10.120 billion, respectively, and brokerage assets of $2.976 billion and $2.154 billion, respectively.