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Trustmark (TRMK)
:TRMK
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Trustmark
(NASDAQ:TRMK)
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Rating:68Neutral
Price Target:
$42.00
▲(8.53% Upside)
Trustmark's strong financial performance, characterized by robust revenue growth and improved leverage, is a major positive factor. The stock's valuation is attractive with a low P/E ratio and decent dividend yield. However, technical indicators suggest a neutral trend, which tempers the overall score.
Trustmark (TRMK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend Yield2.5%
Average Volume (3M)284.07K
Price to Earnings (P/E)10.5
Beta (1Y)0.99
Revenue Growth17.95%
EPS GrowthN/A
CountryUS
Employees2,506
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.94
Shares Outstanding60,366,573
10 Day Avg. Volume258,747
30 Day Avg. Volume284,071
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)1.10
Price to Sales (P/S)2.60
P/FCF Ratio24.49
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Trustmark Business Overview & Revenue Model
Company DescriptionTrustmark (TRMK) is a financial services company headquartered in Jackson, Mississippi, primarily operating in the banking sector. The company offers a range of products and services including commercial and consumer banking, wealth management, and insurance services. Trustmark serves various customer segments, from individuals to businesses, providing tailored financial solutions to meet their diverse needs.
How the Company Makes MoneyTrustmark generates revenue through multiple channels. Its primary revenue streams include net interest income from loans and deposits, as well as non-interest income from service charges, fees, and investment management services. The company earns interest from commercial loans, residential mortgages, and consumer loans, while also benefiting from the interest spread between the rates it pays on deposits and the rates it charges on loans. Additionally, Trustmark's wealth management division contributes to its earnings through advisory fees and asset management. The bank also enhances its revenue through strategic partnerships with local businesses and community organizations, which help to expand its customer base and service offerings.
Trustmark Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Positive
The earnings call reflected a solid performance with diversified loan growth, deposit growth, and improved credit quality. However, there were challenges with increasing noninterest expenses and competitive pressures on loan pricing. Overall, the positive aspects of growth and earnings outweighed the challenges.Q3-2025 Updates
Positive Updates
Diversified Loan Growth
Loans held for investment increased by $83 million or 0.6% linked quarter and $448 million or 3.4% year-over-year.
Deposit Growth
The deposit base grew by $550 million or 3.4% linked quarter, with noninterest-bearing deposits growing at 5.9% linked quarter.
Earnings Performance
Net income in the third quarter was $56.8 million, with a 2.2% increase from the prior quarter and an 11.9% increase from the prior year.
Net Interest Income and Margin
Net interest income expanded by 2.4% to $165.2 million, producing a net interest margin of 3.83%, an increase of 2 basis points.
Share Repurchase Program
Trustmark repurchased $11 million of common stock in the quarter, with $63 million remaining in repurchase authority for the year.
Improved Credit Quality
Criticized loans decreased by $49 million in the quarter, continuing a positive trend with a total decrease of $123 million for the first three quarters of the year.
Strong Capital Ratios
CET1 ratio expanded by 18 basis points to 11.88%, while the total risk-based capital ratio increased by 18 basis points to 14.33%.
Negative Updates
Noninterest Expenses
Noninterest expense increased by $5.8 million or 4.7% linked quarter, including $2.3 million in nonroutine items.
Increased Deposit Costs
The total cost of deposits increased by 4 basis points linked quarter to 1.84%.
Competitive Loan Pricing
CRE loan pricing became more competitive, with thinner spreads and fees due to increased competition in the market.
Company Guidance
During the Trustmark Corporation's third-quarter earnings call, CEO Duane Dewey highlighted strong financial performance with diverse loan growth and stable credit quality. The company reported a $56.8 million net income, equating to $0.94 EPS, up 2.2% from the previous quarter and 11.9% year-over-year. Loans held for investment rose by $83 million or 0.6% linked quarter and $448 million or 3.4% year-over-year. Deposits grew by $550 million or 3.4% linked quarter, with noninterest-bearing deposits increasing by 5.9%. The net interest margin improved by 2 basis points to 3.83%, while net interest income grew by 2.4% to $165.2 million. Despite a 4.7% increase in noninterest expenses, a strong focus was on organic growth, with 29 new hires in key markets. Capital ratios saw an 18-basis-point increase, and the company repurchased $11 million of common stock. Looking forward, Trustmark narrowed its net interest margin guidance to 3.78%-3.82% and affirmed expectations for mid-single-digit loan growth and low single-digit deposit growth for fiscal year '25. The provision for credit losses is anticipated to trend lower compared to the previous year, while noninterest income and expenses are expected to increase mid-single digits.Trustmark Financial Statement Overview
Summary
Trustmark demonstrates a robust financial position with strong revenue growth and improved leverage. Profitability margins are solid, though there is room for operational efficiency improvements. Cash flow generation is positive, supporting the company's financial health.Income Statement
Trustmark shows strong revenue growth with a TTM increase of 11.96%, indicating a positive trajectory. The gross profit margin is healthy at 62.59%, and the net profit margin is solid at 19.69%. However, the EBIT margin of 24.03% and EBITDA margin of 27.63% suggest room for improvement in operational efficiency.75
Positive
Balance Sheet
The debt-to-equity ratio has improved to 0.25 in the TTM, indicating better leverage management compared to previous years. Return on equity is stable at 10.90%, reflecting consistent profitability. The equity ratio is not explicitly calculated, but the balance sheet shows a solid equity base.70
Positive
Cash Flow
Free cash flow growth is positive at 10.50% in the TTM, showing improved cash generation. The free cash flow to net income ratio is strong at 91.34%, indicating efficient cash conversion. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.13B | 831.37M | 916.33M | 583.32M | 567.82M | 649.63M |
| Gross Profit | 707.42M | 414.20M | 565.80M | 513.31M | 568.11M | 562.79M |
| EBITDA | 312.29M | 72.12M | 216.79M | 98.99M | 221.23M | 231.11M |
| Net Income | 222.57M | 223.01M | 165.49M | 71.89M | 147.37M | 160.03M |
Balance Sheet | ||||||
| Total Assets | 18.80B | 18.15B | 18.72B | 18.02B | 17.60B | 16.55B |
| Cash, Cash Equivalents and Short-Term Investments | 2.55B | 2.26B | 2.74B | 2.76B | 5.51B | 3.94B |
| Total Debt | 518.96M | 849.80M | 1.11B | 1.72B | 550.97M | 549.84M |
| Total Liabilities | 16.69B | 16.19B | 17.06B | 16.52B | 15.85B | 14.81B |
| Stockholders Equity | 2.11B | 1.96B | 1.66B | 1.49B | 1.74B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | 281.38M | 88.34M | 148.23M | 262.50M | 317.57M | 34.52M |
| Operating Cash Flow | 285.53M | 116.93M | 196.89M | 296.52M | 348.77M | 65.35M |
| Investing Cash Flow | -446.80M | 284.59M | -411.17M | -2.28B | -1.01B | -1.22B |
| Financing Cash Flow | 88.66M | -809.62M | 455.04M | 451.84M | 970.57M | 2.75B |
Trustmark Technical Analysis
Positive
38.70
Price Trends
39.15
Negative
38.46
Negative
36.46
Positive
Market Momentum
-0.30
Negative
49.96
Neutral
64.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRMK, the sentiment is Positive. The current price of 38.7 is above the 20-day moving average (MA) of 38.05, below the 50-day MA of 39.15, and above the 200-day MA of 36.46, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRMK.
Trustmark Risk Analysis
Trustmark disclosed 30 risk factors in its most recent earnings report. Trustmark reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trustmark Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.37B | 8.90 | 10.16% | 4.12% | 5.15% | 16.42% | |
70 Outperform | $2.12B | 21.41 | 6.39% | 1.76% | -5.72% | -3.86% | |
70 Outperform | $2.29B | 13.87 | 8.99% | ― | -0.37% | -20.30% | |
68 Neutral | $2.31B | 10.45 | 10.87% | 2.50% | 17.95% | ― | |
68 Neutral | $2.08B | 9.02 | 9.90% | 3.94% | -1.76% | 32.44% | |
68 Neutral | $2.36B | 11.39 | 7.49% | 3.54% | -1.58% | 6.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TRMK
Trustmark
38.32
-0.54
-1.39%
FBNC
First Bancorp
50.97
5.00
10.88%
FFBC
First Financial Bancorp
24.17
-4.42
-15.46%
FRME
First Merchants
36.21
-6.72
-15.65%
WAFD
Washington Federal
30.38
-5.99
-16.47%
CUBI
Customers Bancorp
68.45
11.90
21.04%
Trustmark Corporate Events
Trustmark Corporation Reports Strong Q3 2025 Financial Results
Oct 30, 2025
Trustmark Corporation is a financial services company that provides banking and financial solutions across several states in the southeastern United States, including Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas.
Trustmark’s Earnings Call Highlights Growth Amid Challenges
Oct 30, 2025
Trustmark’s recent earnings call painted a picture of robust financial health, marked by diversified loan and deposit growth, alongside improved credit quality. Despite facing challenges such as rising noninterest expenses and competitive pressures on loan pricing, the overall sentiment was positive, with growth and earnings performance overshadowing these hurdles.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.