TRMK 10-K & 10-Q changes, risk factors and insider trading

Trustmark’s profitability depends to a large extent on net interest income, which is the difference between income on interest-earning assets, such as loans and investment securities, and expense on interest-bearing liabilities, such as deposits and borrowings. Trustmark is exposed to interest rate risk in its core banking activities of lending and deposit taking, since assets and liabilities reprice at different times and by different amounts as interest rates change. Trustmark is unable to predict changes in market interest rates, which are affected by many factors beyond Trustmark’s control, including inflation, recession, unemployment, money supply, domestic and international events and changes in the United States and other financial markets. Market interest rates remained elevated duringFor most of 2024.2025, Thethe FRB maintainedleft the target federal funds rate unchanged at a range of 5.25%4.25% to 5.50%4.50% fromand Julymaintained 2023the throughrate it pays on reserves at 4.40%. However, beginning with the September 2024.2025 Inmeeting Septemberof 2024,the FRB's Federal Open Market Committee, the FRB begannoted increases in unemployment and inflation shifting the balance of risks to achieving its goals. As a result, the FRB decreased the target federal funds rate and the rate it pays on reserves multiple times during the fourth quarter of 2025, lowering the target federal funds rate making multiple decreases during the fourth quarter of 2024 to a range of 4.25%3.50% to 4.50% as of December 2024, based on its confidence that inflation was moving substantially toward 2.00%3.75% and that the risks to achieving the FRB's employment and inflation goals were roughly balanced. In addition, the FRB maintained the rate it paid on reserves at 5.40% from July 2023 through September 2024. In September 2024, the FRB made the first of multiple declines in the rate it pays on reserves, lowering the ratereserves to 4.40%3.65% as of December 2024.2025. Prior period rate increases increased the competitive pressures on the deposit cost of funds. While rate cuts potentially reducereduced those competitive pressures, they increaseincreased pressure on Trustmark's net interest margin, a key component to its financial results. It is not possible to predict the direction, pace andor magnitude of changesfurther changes, if any, in interest rates, or the impact any such rate changes will have on Trustmark's results of operations.

Financial simulation models are the primary tools used by Trustmark to measure interest rate exposure. Using a wide range of scenarios, Management is provided with extensive information on the potential impact to net interest income caused by changes in interest rates. Models are structured to simulate cash flows and accrual characteristics of Trustmark’s balance sheet. Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve and the changing composition of Trustmark’s balance sheet, resulting from both strategic plans and customer behavior. In addition, the model incorporates Management’s assumptions and expectations regarding such factors as loan and deposit growth, pricing, prepayment speeds and spreads between interest rates. Trustmark’s simulation model using static balances at December 31, 2024,2025 estimated that in the event of a hypothetical 200 basis point increase in interest rates, net interest income may increase 0.8%,3.1%, while a hypothetical 100 basis point increase in interest rates,rates may increase net interest income 0.4%.1.5%. In the event of a hypothetical 100 basis point decrease in interest rates using static balances at December 31, 2024,2025, it is estimated net interest income may decrease by 1.2%,2.1%, while a hypothetical 200 basis point decrease in interest rates,rates may decrease net interest income 3.0%.4.8%.

There are inherent risks associated with Trustmark’s lending activities. If trends in the housing and real estate markets were to revert to or decline below recession levels,appreciably, Trustmark may experience higher than normal delinquencies and credit losses. Moreover, if the United States economy returnswere to enter into a recessionary state,recession, Management expects that itthis scenario could severely affect economic conditions in Trustmark’s market areas and that Trustmark could experience significantly higher delinquencies and credit losses. In addition, bank regulatory agencies periodically review Trustmark’s allowance for credit losses and may require an increase in the provision for credit losses or the recognition of further charge-offs, based on judgments different from those of Management. As a result, Trustmark may elect, or be required, to make further increases in its provision for credit losses in the future, particularly if economic conditions deteriorate.

Additionally, Trustmark may also rely on information furnished by or on behalf of customers and counterparties in deciding whether to extend credit or enter into other transactions. This information could include financial statements, credit reports, business plans, and other information. Trustmark may also rely on representations of those customers, counterparties or other third parties, such as independent auditors, as to the accuracy and completeness of that information. Reliance on inaccurate or misleading financial statements, credit reports or other information could have a material adverse impact on Trustmark’s business, financial condition and results of operations.

Trustmark attempts to quantify such credit event risk by modeling bank specific and systemic scenarios that estimate the liquidity impact. Trustmark estimates such impact by attempting to measure the effect on available unsecured lines of credit, available capacity from secured borrowing sources and securitizable assets. To mitigate such risk, Trustmark maintains available lines of credit with the Federal Reserve Bank of Atlanta (FRBA) and the FHLB of Dallas that are secured by loans and investment securities. Management continuously monitors Trustmark’s liquidity position for compliance with internal policies.

Economic activity improved moderatelyslightly during 2024;2025, however,but was characterized by mixed signals, notably, strong equity market performance, continued consumer spending and FRB rate cuts, but also a softening labor market and persistent inflationary pressures, driven partly by new tariffs. United States stocks performed strongly during the second half of 2025, supported by optimistic sentiment around lower interest rates, better-than-expected corporate earnings and strong performance in the technology and AI sectors. However, economic concerns remain as a result of the cumulative weight of uncertainty regarding the potential economic impact of geopolitical developments, such as the conflicts in Ukraine and the Middle East, inflation, other economic and industry volatility, the current United States presidential administration's policies, higher energy pricesinflationary and broader pricepricing pressures.pressures Doubtsand other economic and industry volatility. Concerns surrounding the near-term direction of global markets,markets and the potential impact of these trends on the United States economy,economy are expected to persist for the near term. While Trustmark’sTrustmark's customer base is wholly domestic, international economic conditions affect domestic economic conditions, and thus may have an impact upon Trustmark’sTrustmark's financial condition or results of operations. Strategic risk, including threats to business models from increasing pressures on net interest margins and modest economic growth, remains high. Management’s ability to plan, prioritize and allocate resources in this environment will be critical to Trustmark’s ability to sustain earnings that will attract capital. Because of the complexities presented by current economic conditions, Management will continue to be challenged in identifying alternative sources of revenue, prudently diversifying assets, liabilities and revenue and effectively managing the costs of compliance.

TheWhile risingthe interestbanking rateindustry environmenthas duringstabilized 2022since andthe disruptions associated with bank failures in Spring 2023, thethere resulting industry-wide reduction in the fair value of securities portfolios and the bank runs that led to the failures of some financial institutions in March 2023, among other events, resulted in a state of volatility and uncertainty with respect to the health of the United States banking system. There isremains heightened awareness around liquidity, uninsured deposits, deposit composition, unrecognized investment losses and capital.capital among counterparties, customers and regulators. It is difficult to predict the extent to which these challenging economic conditions will persist or whether recent progress in the economic recovery will instead shift to the potential for further decline. If the economy does weaken in the future, it is uncertain how Trustmark’s business would be affected and whether Trustmark would be able to successfully mitigate any such effects on its business. Accordingly, these factors in the United States (and, indirectly, global) economy could have a material adverse effect on Trustmark’s financial condition and results of operations.

Trustmark, primarily through TNBTB and certain nonbank subsidiaries, is subject to extensive federal and state regulation and supervision, which vests a significant amount of discretion in the various regulatory authorities. Banking regulations are primarily intended to protect depositors’ funds, federal deposit insurance funds and the banking system as a whole, not security holders. These regulations and supervisory guidance affect Trustmark’s lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal and state regulatory agencies continually review banking laws, regulations and policies for possible changes. Changes to statutes, regulations or regulatory policies or supervisory guidance, including changes in interpretation or implementation or statutes, regulations, policies and supervisory guidance, could affect Trustmark in substantial and unpredictable ways. Such changes could subject Trustmark to additional costs, limit the types of financial services and products Trustmark may offer and/or increase the ability of nonbanks to offer competing financial services and products, among other things. Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by Federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, the revocation of a banking charter, civil money penalties, other sanctions by regulatory agencies and/or reputational damage. In this regard, government authorities, including bank regulatory agencies, continuehave the authority to pursue enforcement agendas with respect to compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived compliance failures. Any of the foregoing could have a material adverse effect on Trustmark’s financial condition or results of operations.

The Equal Credit Opportunity Act, the Fair Housing Act and other fair lending laws and regulations impose nondiscriminatory lending requirements on financial institutions. The DOJ and other federal agencies are responsible for enforcing these laws and regulations. A successful regulatory challenge to an institution’s performance under fair lending laws and regulations could result in a wide variety of direct or indirect negative consequences, including damages and civil money penalties, injunctive relief, restrictions on mergers and acquisitions activity, restrictions on geographic expansion and restrictions on entering new business lines. Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation. Such actions could have a material adverse effect on Trustmark’s business, financial condition or results of operations. In 2021, TNB settled a fair lending enforcement action with the DOJ, the OCC and the CFPB and incurred a one-time settlement expense of $5.0 million and made other commitments to enhance credit opportunities to residents of majority-Black and Hispanic neighborhoods in the Memphis metropolitan statistical area. Trustmark and TNB could be subject to other enforcement actions in the future.

The performance of a bank under the CRA in meeting the credit needs of its community is a factor that must be taken into consideration when the federal banking agencies evaluate applications related to mergers and acquisitions, as well as branch opening and relocations. As of its last examination, TNBTB received a CRA rating of “Outstanding,” which represented an improvement from its previous CRA rating of “Needs to Improve.” TNB’sTB’s failure to maintain at least a “Satisfactory” CRA rating in the future could adversely affect its ability to complete the acquisition of another financial institution or open a new branch. If TNBTB receiveswere to receive an overall CRA rating of less than “Satisfactory” in the future, the OCCFRB would not re-evaluate itsthe CRA rating until TNB’sTB’s next CRA examination, which may not occur for several moreyears. years, and itIt is possible that a low CRA rating would not improve in the future.

Under the regulatory capital rules of the FRB, OCC, and FDIC that implement a set of capital requirements issued by the Basel Committee on Banking Supervision known as Basel III, Trustmark and TNBTB are required to maintain a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.0% (a minimum of 4.5% plus a capital conservation buffer of 2.5%), a Tier 1 capital to risk-weighted assets ratio of at least 8.5% (a minimum of 6.0% plus a capital conservation buffer of 2.5%), a total capital to risk-weighted assets ratio of at least 10.5% (a minimum of 8.0% plus a capital conservation buffer of 2.5%) and a leverage ratio of Tier 1 capital to total consolidated assets of at least 4.0%. In addition, for TNBTB to be “well-capitalized” under the banking agencies’ prompt corrective action framework, it must have a common equity Tier 1 capital ratio of at least 6.5%, a Tier 1 capital ratio of at least 8.0%, a total capital ratio of at least 10.0% and a leverage ratio of at least 5.0%, and must not be subject to any written agreement, order or capital directive, or prompt corrective action directive issued by its primary federal regulator to meet and maintain a specific capital level for any capital measure.

The capital rules also include stringent criteria for capital instruments to qualify as Tier 1 or Tier 2 capital. For instance, the rules effectively disallow newly issued trust preferred securities to be a component of a holding company’s Tier 1 capital. Trustmark will continue to count $60.0 million in outstanding trust preferred securities issued by the Trust as Tier 1 capital up to the regulatory limit, as permitted by a grandfather provision in the capital rules, but this grandfather provision may cease to apply if Trustmark consummates an acquisition of a depository institution holding company and the resulting organization has $15 billion of more in total assets.company.

The regulatory capital rules applicable to Trustmark and TNBTB may continue to evolve as a result of new requirements established by the Basel Committee on Banking Supervision or legislative, regulatory or accounting changes in the United States. Management cannot predict the effect that any changes to current capital requirements would have on Trustmark and TNB.TB.

Trustmark regularly uses third-party service providers and subcontractors as part of its business. Trustmark also has substantial ongoing business relationships with partners and other third-parties and relies on certain third-parties to provide products and services necessary to maintain day-to-day operations. These types of third-party relationships are subject to increasingly demanding regulatory requirements and attention by regulators, including the FRB, OCC, CFPB and FDIC. Under interagency regulatory guidance,guidance issued in 2023, Trustmark is required to apply stringent due diligence, conduct ongoing monitoring and maintain effective control over third-party service providers and subcontractors and other ongoing third-party business relationships. These regulatory expectations may change,continue to evolve and potentially become more rigorous inover certain ways, due to an interagency effort to replace existing guidance on the risk management of third-party relationships with new guidance.time. Trustmark expects that the regulators will hold Trustmark responsible for deficiencies in its oversight and control of its third-party relationships and in the performance of the parties with which Trustmark has these relationships. Trustmark maintains a system of policies and procedures designed to ensure adequate due diligence is performed and to monitor vendor risks. While Trustmark believes these policies and procedures effectively mitigate risk, if the regulators conclude that Trustmark has not exercised adequate oversight and control over third-party service providers and subcontractors or other ongoing third-party business relationships or that such third-parties have not performed appropriately, Trustmark could be subject to enforcement actions, including civil monetary penalties or other administrative or judicial penalties or fines as well as requirements for customer remediation.

If Trustmark consummates an acquisition, a portion of the purchase price would generally be allocated to goodwill and other identifiable intangible assets. The amount of the purchase price that is allocated to goodwill and other intangible assets is determined by the excess of the purchase price over the net identifiable assets acquired. At December 31, 2024,2025, goodwill andwas $334.6 million. Trustmark's other identifiable intangible assets, net were $334.7fully million.amortized as of December 31, 2025. Under current accounting standards, if Trustmark determines goodwill or other intangible assets are impaired, Trustmark would be required to write down the carrying value of these assets. Trustmark’s annual goodwill impairment evaluation performed during the fourth quarter of 20242025 indicated no impairment of goodwill for any reporting segment. Management cannot provide assurance, however, that Trustmark will not be required to take an impairment charge in the future. Any impairment charge would have an adverse effect on Trustmark’s shareholders’ equity and financial condition and could cause a decline in Trustmark’s stock price.

One of Trustmark’s primary business operations is mortgage bankingbanking, under which residential mortgage loans are sold in the secondary market under agreements that contain representations and warranties related to, among other things, the origination and characteristics of the mortgage loans. Trustmark may be required to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the anticipated economic benefits of a loan if it is determined that the loan sold was in violation of representations or warranties made by Trustmark at the time of the sale, herein referred to as mortgage loan servicing putback expenses. Such representations and warranties typically include those made regarding loans that had missing or insufficient file documentation, loans that do not meet investor guidelines, loans in which the appraisal does not support the value and/or loans obtained through fraud by the borrowers or other third parties. Generally, putback requests may be made until the loan is paid in full. However, mortgage loans delivered to the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC) on or after January 1, 2013 are subject to the Representations and Warranties Framework, which provides that FNMA and FHLMC will not exercise their remedies, including a putback request, for breaches of certain selling representations and warranties if the mortgage loans satisfy certain criteria, such as payment history or quality control review.

The volatility in the stock prices of companies in the financial services industry, such as Trustmark, may make it more difficult for shareholders to resell Trustmark common stock at attractive prices in a timely manner. Trustmark’s stock price can fluctuate significantly in response to a variety of factors, including factors affecting the financial industry as a whole, such as the bank failures in MarchSpring 2023. The factors affecting financial stocks generally and Trustmark’s stock price in particular include:

Trustmark’s accounting policies and methods are fundamental to how Trustmark records and reports its financial condition and results of operations. From time to time, the FASB changes the financial accounting and reporting standards that govern the preparation of Trustmark’s financial statements. The most recent economic recession resulted in increased scrutiny of accounting standards by regulators and legislators, particularly as they relate to fair value accounting principles. In addition, ongoing efforts to achieve convergence between generally accepted accounting principles (GAAP) and International Financial Reporting Standards may result in changes to GAAP. Any such changes can be difficult to predict and can materially affect how Trustmark records and reports its financial condition or results of operations. For additional details regarding recently adopted and pending accounting pronouncements, see Note 1 – Significant Accounting Policies included in Part II. Item 8. -– Financial Statements and Supplementary Data of this report.

Expectations around Environmental, Social and Governance (ESG) practices as well as climate change and related legislative and regulatory initiatives could adversely affect Trustmark’s business and results of operations, including indirectly through impact to its customers.

Stakeholders' expectations regarding ESG practices, as well as climate-related legislative and regulatory initiatives, continue to evolve. Institutional investors, and investor advocacy groups, in particular, are increasingly focused on these matters and expectations in many of these areas can vary widely. In addition, increased ESG related compliance costs could result in increases to Trustmark’s overall operational costs. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards, and fluctuations in these standards, could negatively impact Trustmark’s reputation, ability to do business with certain partners and its stock price. New government regulations (including at the state level) could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence and disclosure. Consumers and businesses also may change their behavior on their own as a result of these concerns. It is not possible to predict how climate change may impact Trustmark’s financial condition and operations; however, Trustmark operates in areas where its business and the activities of its customers could be impacted by the effects of climate change. The effects of climate change may include increased frequency or severity of weather-related events, such as severe storms, hurricanes, flooding and droughts and rising sea levels. These effects can disrupt business operations, damage property, devalue assets and change customer and business preferences, which may adversely affect borrowers, increase credit risk and reduce demand for Trustmark’s products and services. Trustmark and its customers willmay need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. Trustmark and its customers may face cost increases, asset value reductions, operating process changes and the like. The impact to Trustmark’s customers will likely vary depending on their specific attributes, including reliance on or role in carbon intensive activities. In addition, Trustmark could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans. Trustmark’s efforts to take these risks into account may not be effective in protecting it from the negative impact of newregulatory laws and regulationsinitiatives or changes in consumer or business behavior and could have a material adverse effect on Trustmark’s financial condition and results of operations.

The following provides a narrative discussion and analysis of Trustmark’s financial condition and results of operations. This discussion should be read in conjunction with the consolidated financial statements and the supplemental financial data included in Part II. Item 8. – Financial Statements and Supplementary Data of this report. DiscussionFurther discussion and analysis of Trustmark’s financial condition and results of operations for the years ended December 31, 20232024 and 20222023 are included in the respective sections within Part II. Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of Trustmark’s Annual Report filed on Form 10-K for the year ended December 31, 2023.2024.

Trustmark has been committed to meeting the banking and financial needs of its customers and communities for over 130 years and remains focused on providing support, advice and solutions to its customers' unique needs. Trustmark completedachieved therecord followingearnings in 2025, reflecting significant non-routineachievement transactionsacross its diverse financial services businesses. During 2025, Trustmark's traditional banking business drove continued loan and deposit growth, a strong net interest margin and solid credit quality. Trustmark's mortgage banking business increased production and achieved significant improvement in profitability during the2025, secondwhile quarterrevenue offrom 2024:its wealth management business reached an all-time high.

These accomplishments are the result of focused efforts to enhance Trustmark's long-term performance and competitiveness. Trustmark continues to implement technology and streamline processes to enhance its ability to grow and serve customers. Trustmark is well-positioned to compete in changing economic conditions and create long-term value for its shareholders. The Board of Directors of Trustmark announced a 4.3%4.2% increase in its regular quarterly cash dividend to $0.24$0.25 per share from $0.23$0.24 per share.share, reflecting Trustmark's profitability and financial strength. The dividend is payable March 15, 2025,2026, to shareholders of record on March 1, 2025.2026. Trustmark’s payment of the dividend will be funded fully by a dividend from TB to Trustmark, which the MDBCF approved on January 28, 2026.

Trustmark reported net income of $57.9 million, or basic and diluted EPS of $0.97, for the fourth quarter of 2025, compared to net income of $56.3 million, or basic and diluted EPS of $0.92, for the fourth quarter of 2024, compared to a net income of $36.1 million, or basic and diluted EPS of $0.59, in the fourth quarter of 2023.2024. Trustmark’s reported performance during the quarter ended December 31, 2024,2025, produced a return on average tangible equity of 12.82%, a return on average assets of 1.23%, an average equity to average assets ratio of 11.35% and a dividend payout ratio of 24.74%, compared to a return on average tangible equity of 13.68%, a return on average assets of 1.23%, an average equity to average assets ratio of 10.82% and a dividend payout ratio of 25.00%, compared to a return on average tangible equity of 11.92%, a return on average assets of 0.77%, an average equity to average assets ratio of 8.51% and a dividend payout ratio of 38.98%25.00% during the quarter ended December 31, 2023.2024.

The increase in net income when the fourth quarter of 20242025 is compared to the fourth quarter of 20232024 was principally due to an increase in revenue.revenue Revenue,and whicha isdecrease definedin asthe netPCL, interestLHFI, partially offset by increases in noninterest expense and income plustaxes. noninterest income (loss),Revenue totaled $204.1 million for the quarter ended December 31, 2025 compared to $196.8 million for the quarter ended December 31, 2024 compared to $173.3 million for the quarter ended December 31, 2023,2024, an increase of $23.5$7.3 million, or 13.5%.3.7%. The increase in total revenue for the fourth quarter of 20242025 compared to the same time period in 20232024 primarily resulted from an increase in net interest income, principally due to declines in total interest expense as well as an increase in interest on securities-taxable partially offset by a decline in other interest income,expense andon an increase in noninterest income (loss), principally due to increases in mortgage banking, net and other, net.deposits.

Net interest income for the fourth quarter of 20242025 totaled $155.8$162.9 million, an increase of $19.1$7.0 million, or 14.0%,4.5%, when compared to the fourth quarter of 2023.2024. Interest income totaled $239.7$239.3 million for the fourth quarter of 2024,2025, ana increasedecrease of $6.9$417 million,thousand, or 2.9%,0.2%, when compared to the same time period in 2023,2024, principally due to an increase in interest on securities-taxable primarily due to the restructuring of the available for sale securities portfolio during the second quarter of 2024, partially offset by a decline in other interest income primarily due to declinesa decline in boththe theaverage balance held at the FRBA and the FRB's decision to lower the rate paidit pays on reserves, partially offset by thea FRBAslight increase in interest and fees on reserves.LHFS and LHFI. Interest expense totaled $83.9$76.4 million for the fourth quarter of 2024,2025, a decrease of $12.2$7.5 million, or 12.7%,8.9%, when compared to the same time period in 2023,2024, reflectingprimarily declinesdue to a decline in interest on deposits, interest on federal funds purchased and securities sold under repurchase agreements (repurchase agreements) and other interest expense.deposits. Interest expense on deposits totaled $75.9$67.7 million for the fourth quarter of 2024,2025, a decline of $4.9$8.2 million, or 6.1%,10.9%, when compared to the fourth quarter of 20232024 primarily due to declines in interest expense on brokered and personal certificates of deposit (CDs), all categories of interest checking accounts and money market demand deposit accounts (MMDA) asand wellcommercial asinterest checking accounts, primarily reflecting a decline in interest expense on brokered certificates of deposits (CDs), partially offset by an increase in interest expense on personal CDs. Interest expense on federal funds purchased and repurchase agreements totaled $4.0 million for the fourth quarter of 2024, a decrease of $1.3 million, or 24.5%, when compared to the fourth quarter of 2023 primarily due to a decline in interest expense on federal funds purchased, reflecting a decline in the amount of upstream federal funds purchased and declines by the FRB in the target federal funds rate. Other interest expense totaled $3.9 million for the fourth quarter of 2024, a decrease of $6.0 million, or 60.6%, when compared to the same time period in 2023 primarily due to a decline in interest expense on FHLB advances as a result of a decline in the amount of outstanding short-term FHLB advances with the FHLB of Dallas.rates.

Noninterest income (loss) for the fourth quarter of 20242025 totaled $41.0$41.2 million, an increase of $4.3$285 million,thousand, or 11.9%,0.7%, when compared to the fourth quarter of 2023,2024, principally due to increasesan increase in mortgagewealth banking,management netlargely andoffset by a decline in other, net. MortgageWealth banking, netmanagement totaled $7.4$11.1 million for the fourth quarter of 2024,2025, an increase of $1.9$1.8 million, or 33.9%,19.5%, when compared to the same time period in 2023,2024, principally due to a decline in the net negative hedge ineffectiveness and an increase in theincome gainfrom onbrokerage salesand oftrust loans,management net.services. Other, net totaled $4.3$2.7 million for the fourth quarter of 2024,2025, ana increasedecrease of $1.7$1.6 million, or 66.8%,36.1%, when compared to the same time period in 2023,2024, principally due to a decrease in income from other partnership investments and an increase in otheramortization miscellaneousof income.tax credit partnerships.

Noninterest expense for the fourth quarter of 20242025 totaled $124.4$132.2 million, aan decreaseincrease of $1.8$7.7 million, or 1.4%,6.2%, when compared to the fourth quarter of 2023,2024, principally due to declinesan increase in servicessalaries and feesemployee benefits. Salaries and otheremployee expense. Services and feesbenefits totaled $26.7$75.1 million for the fourth quarter of 2024,2025, aan decreaseincrease of $786$5.9 thousand,million, or 2.9%,8.5%, when compared to the fourth quarter of 20232024 primarily due to declinesincreases in outsidesalaries services and fees partially offset by increase in data processing expenses related to software and business process outsourcing expenses. Other expense totaled $15.1 million for the fourth quarter of 2024, a decrease of $678 thousand, or 4.3%, when compared to the same time period in 2023,expense, principally due to declinesgeneral inmerit otherincreases miscellaneousand expenses.new associates added during 2025, annual management performance incentive compensation expense and broker commissions expense.

Trustmark’s PCL, LHFI for the three months ended December 31, 20242025 totaled $7.0a millionnegative $550 thousand compared to $7.6$7.0 million for the three months ended December 31, 2023,2024, a decrease of $625$7.5 thousand, or 8.2%. The PCL, LHFI for the fourth quarter of 2024million, primarily reflected an increase in required reserves as a result of net adjustmentsdue to thepositive qualitativecredit reserve factors and changes to the macroeconomic forecasts,migration partially offset by aloan declinegrowth and changes in specificthe reservesmacroeconomic for individually analyzed LHFI.forecast. The PCL, off-balance sheet credit exposures totaled $1.8 million for the three months ended December 31, 2025 compared to $502 thousand for the three months ended December 31, 2024 compared to a negative $888 thousand for the three months ended December 31, 2023,2024, an increase of $1.4$1.3 million. The PCL, off-balance sheet credit exposures for the fourth quarter of 2024million, primarily reflecteddue to increases in required reserves as a result of credit migration and implementation of the External Factor - Credit Quality Review qualitative factor as well as an increase in unfunded commitments, partially offset by a decline in required reserves as a result of changes in the total reserve rate.rate and unfunded commitments partially offset by 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.

For the year ended December 31, 2024,2025, Trustmark reported net income of $224.1 million, or basic and diluted EPS of $3.72 and $3.70, respectively, compared to $223.0 million, or basic and diluted EPS of $3.65 and $3.63, respectively, comparedfor tothe year ended December 31, 2024 and $165.5 million, or basic and diluted EPS of $2.71 and $2.70, respectively, for the year ended December 31, 2023 and $71.9 million, or basic and diluted EPS of $1.17, for the year ended December 31, 2022.2023. Trustmark’s reported performance for the year ended December 31, 2024,2025, produced a return on average tangible equity of 12.97%, a return on average assets of 1.21% and a dividend payout ratio of 25.81%, compared to a return on average tangible equity of 15.20%, a return on average assets of 1.20% and a dividend payout ratio of 25.21%,25.21% comparedfor tothe year ended December 31, 2024 and a return on average tangible equity of 14.04%, a return on average assets of 0.89% and a dividend payout ratio of 33.95% for the year ended December 31, 2023 and a return on average tangible equity of 6.00%, a return on average assets of 0.41% and a dividend payout ratio of 78.63% for the year ended December 31, 2022.2023. Trustmark’s average equity to average assets ratio was 9.84%,11.16%, 8.41%9.84% and 9.18%8.41% for the years ended December 31, 2024,2025, 20232024 and 2022,2023, respectively.

Trustmark completed the sale of FBBI during the second quarter of 2024. As such, financial results for the years ended December 31, 2024, 20232024 and 2022,2023, consist of both continuing and discontinued operations. The discontinued operations include the financial results of FBBI prior to the sale as well as the net gain on the sale. Trustmark reported net income from continuing operations of $45.2 million, $153.3 million and $60.9$153.3 million for the years ended December 31, 2024, 20232024 and 2022,2023, respectively. Trustmark's reported performance from continuing operations for the year ended December 31, 2024 produced a return on average tangible equity of 3.04%, a return on average assets of 0.24% and a dividend payout ratio of 124.32%, compared to a return on average tangible equity of 12.43%, a return on average assets of 0.82% and a dividend payout ratio of 36.65% for the year ended December 31, 2023, and a return on average tangible equity of 4.86%, a return on average assets of 0.35% and a dividend payout ratio of 92.93%, for the year ended December 31, 2022. The decrease in net income from continuing operations when 2024 is compared to 2023 was principally due to a decline in total revenue partially offset by a decrease in income taxes from continuing operations.2023. The increase in net income from continuing operations when 20232025 is compared to 20222024 was principally due to an increase in total revenue and a decline in PCL, LHFI, partially offset by increases in income taxes and noninterest expense.

Revenue totaled $561.0$799.8 million for the year ended December 31, 2024,2025, compared to $701.3$561.0 million and $646.1$701.3 million for the years ended December 31, 20232024 and 2022,2023, respectively, an increase of $238.8 million, or 42.6%, and a decrease of $140.3 million, or 20.0%, and an increase of $55.2 million, or 8.5%, respectively. The decreaseincrease in total revenue for 20242025 compared to 20232024 was principally due to decline(i) an increase in noninterest income (loss), primarily as a result of the loss on the sale of available for sale securities partiallyduring offsetthe bysecond quarter of 2024 and increases in other,mortgage banking, net and wealth management, partially offset by a decrease in other, net, and (ii) an increase in net interest income, primarily resulting from increasesa decline in total interest expense and an increase in interest on securities, partially offset by declines in interest and fees from LHFS and LHFI and interest on securities as well as a decline in other interest expense, partially offset by an increase in interest expense on deposits and a decrease in other interest income.

Net interest income for the year ended December 31, 20242025 totaled $584.4$636.1 million, an increase of $31.5$51.7 million, or 5.7%,8.8%, when compared to the year ended December 31, 2023.2024. Interest income totaled $960.3$948.6 million for the year ended December 31, 2024,2025, ana increasedecrease of $81.5$11.7 million, or 9.3%,1.2%, when compared to the year ended December 31, 2023,2024, principallyreflecting due to increasesdeclines in interest and fees on LHFS and LHFI, primarily asdue to a resultdecrease of the higherin interest rate environmentrates, and loan growth, and interest on securities, primarily as a result of restructuring the securities portfolio during the second quarter of 2024, partially offset by a decline in other interest income, primarily due to a decline in the average balance held at the FRBA asand wellthe FRB's decision to lower the rate it pays on reserves, partially offset by an increase in interest on securities, primarily as a declineresult inof dividendhigher incomeyielding fromsecurities FHLBpurchased stock.during 2025 and the restructuring of the available for sale securities portfolio during the second quarter of 2024. Interest expense totaled $375.9$312.5 million for the year ended December 31, 2024,2025, ana increasedecrease of $50.0$63.4 million, or 15.3%,16.9%, when compared to the year ended December 31, 2023.2024, Thereflecting increasedeclines in all categories of interest expense. Interest on deposits totaled $274.7 million for 2025, a decrease of $54.7 million, or 16.6%, when compared to 2024, primarily reflecting declines in interest expenseon whenbrokered 2024and ispersonal comparedCDs, topersonal 2023and wascommercial MMDA and public and commercial interest checking accounts, principally due to an increasedeclines in interest onrates. deposits primarily due to risingOther interest rates, increased competitionexpense for deposits2025 andtotaled higher$20.3 average balances, partially offset bymillion, a decrease inof other$6.1 interestmillion, expenseor 23.0%, when compared to 2024, primarily due to a decline in interest expense on FHLB advances, principally due to a decline in rates on short-term FHLB advances, partially offset by an increase in subordinated debt issuance cost as a result of the $175.0 million of subordinated notes issued during the fourth quarter of 2025. Interest on federal funds purchased and securities purchased under repurchase agreements totaled $17.5 million for 2025, a decrease of $2.6 million, or 13.0%, when compared to 2024, primarily reflecting declines in the amounttarget offederal short-termfunds FHLBrate advancesby heldthe throughout 2024.FRB.

Noninterest income (loss) for 20242025 totaled a negative $23.4$163.6 million, aan decreaseincrease of $171.9$187.1 million when compared to 2023,2024, principally due to the $182.8 million loss on the sale of the available for sale securities during the second quarter of 2024, partially offset byand increases in other,mortgage banking, net and wealth management.management, partially offset by a decrease in other, net. Mortgage banking, net totaled $33.1 million for 2025, an increase of $6.5 million, or 24.2%, when compared to 2024, primarily reflecting a decrease in the net negative hedge ineffectiveness and increases in the gain on sales of loans, net and mortgage servicing income, net, partially offset by an increase in the run-off of the MSR. Wealth management totaled $40.1 million for 2025, an increase of $2.9 million, or 7.7%, when compared to 2024, primarily due to increases in income from brokerage and trust management services. Other, net totaled $17.8$13.4 million for 2024,2025, ana increasedecrease of $7.6$4.4 million, or 74.1%,24.7%, when compared to 2023,2024, principally due to the $8.1 million Visa C shares fair value adjustment during the second quarter of 2024 as well as an increase in cashamortization managementof servicetax feescredit and other miscellaneous income,partnerships, partially offset by the $4.8 million noncredit-related loss on the sale of 1-4 family mortgage loans recorded during the second quarter of 2024. Wealth management totaled $37.3 million for 2024, an increase of $2.2 million, or 6.2%, when compared to 2023, principally due to increases in brokerage asset management fees and commissions as well as income from annuity services.

Noninterest expense totaled $485.7$512.2 million for 2024,2025, aan decreaseincrease of $10.0$26.5 million, or 2.0%,5.5%, when compared to 2023,2024, principally due to the $6.5 million of litigation settlement expense recorded during 2023 as well as declinesincreases in services and fees and salaries and employee benefits, partially offset by an increase in other expense. Servicesbenefits and fees totaled $101.6 million for 2024, a decrease of $6.2 million, or 5.8%, when compared to 2023, principally due to declines in outside services and fees, telephone expense and advertising expense, partially offset by increases in data processing charges related to software and business process outsourcing fees. Salaries and employee benefits totaled $266.2$283.4 million for the year ended December 31, 2024,2025, aan decreaseincrease of $2.0$17.1 million, or 0.8%,6.4%, when compared to the year ended December 31, 2023,2024, principally due to decreases in commission expense due to the decline in mortgage originations, severance expense and medical insurance expense, partially offset by increases in salaries expense, primarily due to general merit increases,increases accruedand new associates added during 2025, annual management performance incentivesincentives, medical insurance expense, commission expense due to the increase in mortgage originations and stockother compensationsalaries expenseexpense. relatedServices toand performance awards. Other expensefees totaled $63.8$109.4 million for 2024,2025, an increase of $5.0$7.8 million, or 8.6%,7.7%, when compared to 2023,2024, principally due to increases in FDICdata assessmentprocessing expense,charges primarily duerelated to ansoftware, increasebusiness inprocess theoutsourcing assessmentfees, rate,advertising expense and otherlegal real estate write-downs, partially offset by declines in stationary and supplies and other miscellaneous expenses.expense.

The PCL, LHFI for 2025 totaled $14.3 million compared to a total PCL, LHFI of $45.9 million for 2024. The PCL, LHFI for 2024 totaled $45.9 million and included an $8.6 million PCL, LHFI sale of 1-4 family mortgage loans for the credit-related portion of the loss on the sale of the 1-4 family mortgage loans. The PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, for 2024 totaled $37.3 million compared to $27.4 million for 2023, an increase of $9.9 million, or 36.3%.million. The PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, fordecreased 2024$23.0 million, or 61.6%, when 2025 is compared to 2024, primarily reflecteddue anto increasepositive credit migration, the resolution of the External Factor – Credit Quality Review qualitative reserve factor and changes to specific reserves associated with individually analyzed credits, partially offset by increases in required reserves asrelated a result of credit migrations and other net changes in the qualitative reserve factors,to loan growth, changes in the macroeconomic forecastforecasts and anupdates increaseto inother specificqualitative reservesreserve for individually analyzed credits.factors. The PCL, off-balance sheet credit exposures totaled a negative $4.7$1.4 million for 20242025 compared to a negative $2.8$4.7 million for 2023, a decrease of $1.9 million, or 67.7%. The release in PCL, off-balance sheet credit exposures for 2024 primarily reflected2024, a decrease in requiredthe reservesnegative as a resultprovision of changes$3.2 million, or 69.1%, primarily due to increases in the total reserve rate coupled with a decrease inand unfunded commitments which wascommitments, partially offset by anpositive increasecredit in required reserves as a result of implementing the Performance Trendmigration and the resolution of the External Factor-CreditFactor – Credit Quality Review qualitative reserve factors.factor. Please see the section captioned “Provision for Credit Losses” for additional information regarding the PCL on LHFI and off-balance sheet credit exposures.

LHFI totaled $13.090$13.674 billion at December 31, 2024,2025, an increase of $139.4$584.3 million, or 1.1%,4.5%, compared to December 31, 2023.2024. The increase in LHFI during 20242025 was primarily due to net growth in other commercial loans and leases, commercial and industrial LHFI, LHFI secured by real estate and other commercial loans and leases partially offset by net declines in commercial and industrial LHFI and state and other political subdivision LHFI. For additional information regarding changes in LHFI and comparative balances by loan category, see the section captioned “LHFI.”

At December 31, 2024,2025, nonperforming assets totaled $86.0$91.3 million, aan decreaseincrease of $20.8$5.3 million, or 19.5%,6.2%, compared to December 31, 20232024, principallyreflecting due to a decreaseincreases in both nonaccrual LHFI.LHFI and other real estate. Total nonaccrual LHFI were $80.1$84.4 million at December 31, 2024,2025, aan decreaseincrease of $19.9$4.3 million, or 19.9%,5.3%, relative to December 31, 2023,2024, primarily as a result of the sale of 1-4 family mortgage loans duringplaced on nonaccrual in the secondMississippi quartermarket ofregion, 2024largely asoffset well asby the resolution of three large nonaccrual commercial credits in the Texas and Alabama market regions, partially offset by mortgage loans placed on nonaccrual in the Mississippi market region and three large commercial credits placed on nonaccrual in the Alabama and Texas market regions.regions which were reserved for in a prior period. Trustmark's mortgage loans are primarily included in the Mississippi market region because these loans are centrally analyzed and approved as part of the mortgage line of business, which is located in Jackson, Mississippi. The percentage of total loans (LHFS and LHFI) that are 30 days or more past due andor classified as nonaccrual LHFI decreasedincreased in 20242025 to 1.85% compared to 1.62% in 2024. Other real estate totaled $7.0 million at December 31, 2025, an increase of $1.0 million, or 17.6%, when compared to 1.69%December 31, 2024, primarily reflecting property foreclosed in 2023.the Mississippi and Alabama market regions, largely offset by foreclosed properties sold in the Mississippi, Texas and Alabama market regions.

Total deposits were $15.108$15.500 billion at December 31, 2024,2025, aan decreaseincrease of $461.6$391.6 million, or 3.0%,2.6%, compared to December 31, 2023.2024. During 2024,2025, noninterest-bearing deposits decreased $124.1$37.1 million, or 3.9%,1.2%, primarily due to a decline in public demand deposit accounts partially offset by increases in commercial and personal demand deposit accounts. Interest-bearing deposits decreasedincreased $337.5$428.7 million, or 2.7%,3.6%, during 2024,2025, primarily due to intentional declinesgrowth in publicall interestcategories checkingof accountsCDs and brokered depositsMMDA as well as a decline in consumercommercial interest checking accounts, partially offset by growthdeclines in consumer MMDAspublic and commercialconsumer interest checking accounts and consumer CDs.accounts.

Federal funds purchased and securities sold under repurchase agreements totaled $445.0 million at December 31, 2025 compared to $324.0 million at December 31, 20242024, comparedan to $405.7 million at December 31, 2023, a decreaseincrease of $81.7$121.0 million, or 20.1%,37.3%, principally due to aan decreaseincrease in upstream federal funds purchased. Trustmark had $285.0$445.0 million of upstream federal funds purchased at December 31, 2024,2025, compared to $370.0$285.0 million at December 31, 2023.2024. Other borrowings totaled $364.8 million at December 31, 2025, an increase of $63.2 million, or 21.0%, when compared with $301.5 million at December 31, 2024, a decrease of $181.7 million, or 37.6%, when compared with $483.2 million at December 31, 2023, principally due to a declineincreases in Government National Mortgage Association (GNMA) loans eligible for repurchase and outstanding short-term FHLB advances obtained from the FHLB of Dallas.

The credit loss estimation process involves procedures to appropriately consider the unique characteristics of Trustmark’s LHFI portfolio segments. These segments are further disaggregated into loan classes, the level at which credit risk is estimated. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Trustmark’s overall ACL methodology incorporates various qualitative factors, including economic conditions and concentrations of credit, nature and volume of the portfolio, performance trends and external factors. The economic conditions and concentrations of credit qualitative factor was created for the loans secured by NFNR properties and the loans secured by other real estate loan class, two of Trustmark’s largest loan classes, to address changes in the economic conditions of metropolitan areas and apply additional pool level reserves based on third-party market data and forecast trends. The performance trend qualitative reserve factor is utilized to incorporate changes in credit quality and is based on migration analyses that allocate additional ACL to non-pass/delinquent loans within each loan pool. The nature and volume of the portfolio qualitative factor applies to a sub-pool of the LHFI secured by 1-4 family residential properties and utilizes a weighted average remaining maturity (WARM) methodology that uses industry data for the PD and LGD assumptions to support the qualitative adjustment. During the first quarter of 2025, Management elected to utilize Trustmark's historical data to develop a PD based on the credit score ranges initially established as well as the same LGD value from the mortgage sale that occurred in the second quarter of 2024 along with the same weighted average life assumption utilized to determine the credit mark on this portfolio. The external factors qualitative factor is Management’s best judgment on the loan or pool level impact of all factors that affect the portfolio that are not accounted for using any other part of the ACL methodology. During the third quarter of 2024, Trustmark activated the External Factor – Credit Quality Review qualitative factor. This qualitative factor ensures reserve adequacy for collectively evaluated commercial loans that may not have been identified and downgraded timely for various reasons. This qualitative factor population is all commercial loans risk rated 1-5. These loans are then applied to the historical average of the Watch/Special Mention rated percentage. Then the balance of these loans are applied additional reserves based on the same reserve rates utilized in the performance trends qualitative factor for Watch/Special Mention rated loans. During the third quarter of 2025, Management determined that the risk related to delayed identification and downgrading of commercial loans had sufficiently diminished and, as a result, resolved the External Factor – Credit Quality Review qualitative factor and released the associated reserves.

Expected credit losses for off-balance sheet credit exposures are estimated by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by Trustmark. Trustmark calculates a loan pool level unfunded amount for the period. In addition to the unfunded balances, Trustmark uses a funding rate for loan pools that are considered open-ended. In order to mitigate volatility and incorporate historical experience in the funding rate, Trustmark uses a twelve-quarter moving average. For the closed-ended loan pools, Trustmark takes a conservative approach and uses a 100% funding rate. The expected funding rate is applied to each pool’s unfunded commitment balances to ensure that reserves will be applied to each pool based upon balances expected to be funded based upon historical levels. In addition to the funding rate being applied to the unfunded commitment balance, a reserve rate is applied that is loan pool specific and is applied to the unfunded amount, which includes both quantitative and a majority of the qualitative aspects of the current period's expected credit loss rate. During 2024, Management implemented a performance trends qualitative factor for unfunded commitments and an External Factor -– Credit Quality Review qualitative factor for unfunded commitments. For both qualitative factors, the same assumptions are applied in the unfunded commitment calculation that are used in the funded balance calculation with the only difference being the unfunded commitment calculation includes the funding rates for the unfunded commitments. The reserves for these two qualitative factors are added to the other calculated reserve to get a total reserve for off-balance sheet credit exposures. During the third quarter of 2025, Management determined that the risk related to delayed identification and downgrading of commercial loans had sufficiently diminished and, as a result, resolved the External Factor – Credit Quality Review qualitative factor and released the associated reserves.

For a complete description of Trustmark’s ACL methodology for off-balance sheet credit exposures, please see the section captioned “LendingACL Relatedon Off-Balance Sheet Credit Exposures” in Note 1716 – Commitments and Contingencies included in Part II. Item 8. – Financial Statements and Supplementary Data of this report.

During the second quarter of 2024, Trustmark sold a portfolio of 1-4 family mortgage loans that were at least three payments delinquent and/or nonaccrual at the time of selection totaling $56.2 million, which resulted in a loss of $13.4 million ($10.1 million, net of taxes). The portion of the loss related to credit totaled $8.6 million ($6.5 million, net of taxes) and was recorded as adjustments to charge-offs and the PCL, LHFI. The noncredit-related portion of the loss totaled $4.8 million ($3.6 million, net of taxes) and was recorded to noninterest income (loss) in other, net.

On April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for any and all outstanding shares of Visa Class B-1 common stock (Visa B-1 shares). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that were validly tendered and accepted for exchange by Visa. TNBTB tendered its 38.7 thousand Visa B-1 shares, which were accepted by Visa. In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TNBTB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share. The Visa C shares that were received by TNBTB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and was recorded to noninterest income (loss) in other, net during the second quarter of 2024. During the third quarter of 2024, TNBTB sold all of the Visa C shares for approximately the same carrying value as of June 30, 2024. The Visa B-2 shares were recorded at their nominal carrying value.

During the second quarter of 2024, Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income (loss) in securities gains (losses), net. Trustmark also purchased $1.378 billion of available for sale securities with an average yield of 4.85%.

On January 13, 2023, TNBTB entered into a settlement agreement relating to the litigation involving the Stanford Financial Group. As a result of this settlement, Trustmark recognized a one-time charge of $100.0 million of litigation settlement expense as well as an additional $750 thousand of legal fees during the fourth quarter of 2022.

Net interest income-FTE for the year ended December 31, 20242025 increased $30.6$50.2 million, or 5.4%,8.4%, when compared with the year ended December 31, 2023.2024. The increase in net interest income-FTE when 20242025 is compared to 20232024 was principally dueattributable to increasesdeclines in all categories of interest expense, with the exception of interest on subordinated notes, and an increase in interest on securities available for sale-taxable partially offset by declines in interest and fees on LHFS and LHFI-FTE and interest on securities-taxable as well as a decline in other interest expense, partially offset by an increase in total interest on deposits and a decline in other interest income. The net interest margin-FTE for 20242025 increased 1929 basis points to 3.51%3.80% when compared to 2023.2024. The increase in the net interest margin-FTE for 20242025 was principally due to increasesdeclines in the costs of interest-bearing deposits and other short-term borrowings as well as an increase in the yield on securities available for sale, partially offset by declines in yields on the LHFS and LHFI and securitiesother portfoliosearning reflecting the higher interest rate environment and the restructuring of the securities portfolio during 2024, partially offset by higher costs of interest-bearing liabilities.assets.

Average interest-earning assets for 20242025 were $17.010$17.037 billion compared to $17.082$17.010 billion for 2023,2024, aan decreaseincrease of $71.9$26.2 million, or 0.4%,0.2%, reflecting growth in average loans (LHFS and LHFI) partially offset by declines in average securities and average other earning assets partially offset by growth in average loans (LHFS and LHFI). Average total securities declined $372.8 million, or 10.5%, when 2024 is compared to 2023, principally due to available for sale securities sold net of available for sale securities purchased as part of the restructuring of the available for sale securities portfolio during the second quarter of 2024 as well as calls, maturities and pay-downs of the loans underlying GSE guaranteed securities. Average other earning assets decreased $181.3 million, or 24.9%, when 2024 is compared to 2023, primarily due to decreases in reserves held at the FRBA and investments in FHLB stock.assets. Average loans (LHFS and LHFI) increased $482.3$324.9 million, or 3.8%,2.4%, when 20242025 is compared to 2023,2024, primarily attributable to an increase in the average balance of the LHFI portfolio of $458.5$302.9 million, or 3.6%.2.3%. The increase in the average LHFI portfolio when the balances at December 31, 20242025 are compared to December 31, 20232024 was principally due to net growth in average LHFI secured by real estate and average other commercial loans and leases partially offset by declines in average state and other political subdivision loans.leases. See the sections captioned "LHFS" and "LHFI" for additional information regarding changes in the LHFS and LHFI portfolios. Average total securities declined $135.1 million, or 4.3%, when 2025 is compared to 2024, principally due to calls, maturities and pay-downs of the loans underlying GSE guaranteed securities partially offset by purchases of available for sale securities. Average other earning assets decreased $163.6 million, or 29.8%, when 2025 is compared to 2024, primarily due to a decrease in the average balance held at the FRBA.

Interest income-FTE totaled $972.9$959.7 million for 2024,2025, ana increasedecrease of $80.6$13.2 million, or 9.0%,1.4%, while the yield on total earning assets increaseddecreased 509 basis points to 5.72%5.63% when compared to 2023.2024. The increasedecrease in interest income-FTE in 20242025 primarily reflectsreflected increasesdeclines in interest and fees on LHFS and LHFI-FTE and other interest on securities-taxableincome, partially offset by aan declineincrease in other interest income.on securities available for sale-taxable. During 2024,2025, interest and fees on LHFS and LHFI-FTE increaseddecreased $68.6$19.9 million, or 8.7%,2.3%, when compared to 2023,2024, while the yield on loans (LHFS and LHFI) increaseddecreased to 6.15% compared to 6.45% compared to 6.16% reflecting the higherlower interest raterates environmentpartially andoffset by the increase in the average balance of the LHFI portfolio. During 2024, interest on securities-taxable increased $19.8 million, or 30.0%, when compared to 2023, while the yield on taxable securities increased to 2.70% compared to 1.86% principally due to the restructuring of the securities portfolio. During 2024,2025, other interest income decreased $7.5$12.9 million, or 20.3%,43.4%, when compared to 2023,2024, while the yield on other earning assets increaseddecreased to 5.41%4.36% compared to 5.10%,5.41%, primarily due to declinesa decline in the average balance held at the FRBA andas dividendwell incomeas fromthe FHLBFRB's stock.decision to lower the rate it pays on reserves. During 2025, interest on securities available for sale-taxable increased $22.1 million, or 39.5%, when compared to 2024, while the yield on taxable securities available for sale increased to 4.44% compared to 3.13% principally due to higher yielding securities purchased in 2025 as well as the restructuring of the available for sale securities portfolio during the second quarter of 2024.

Average interest-bearing liabilities for 20242025 totaled $13.159$13.042 billion compared to $12.983$13.159 billion for 2023,2024, ana increasedecrease of $176.1$116.9 million, or 1.4%.0.9%. The increasedecrease in average interest-bearing liabilities was primarily the result of increasesdeclines in average interest-bearing deposits partially offset by a decline inand average other borrowings. Average interest-bearing deposits for 20242025 increaseddecreased $784.0$59.2 million, or 6.9%,0.5%, when compared to 2023,2024, reflecting growthdeclines in average time deposits and average interest-bearing demand deposits and average savings deposits partially offset by declinesgrowth in average savingstime deposits. Average other borrowings for 20242025 decreased $596.0$79.3 million, or 60.6%,20.4%, when compared to 2023,2024, principally due to thea decrease in average short-term FHLB advances outstanding during the year.year partially offset by an increase in average GNMA loans eligible for repurchase.

Interest expense for 20242025 totaled $375.9$312.5 million, ana increasedecrease of $50.0$63.4 million, or 15.3%,16.9%, when compared with 2023,2024, while the rate on total interest-bearing liabilities increaseddecreased to 2.86%2.40% compared to 2.51%.2.86%. The increasedecrease in interest expense for 20242025 was principally due to thedecreases in interest on deposits, interest on other borrowings and interest on federal funds purchased and securities sold under repurchase agreements, partially offset by an increase in interest on depositssubordinated partially offset by a decline in other interest expense.notes. Interest on deposits increaseddecreased $83.4$54.7 million, or 33.9%,16.6%, while the rate on interest-bearing deposits increaseddecreased to 2.26% compared to 2.70% compared to 2.16% when 20242025 is compared to 2023,2024, primarily due to increasesdeclines in interest on brokered and personal CDs, personal and commercial MMDA and public and commercial interest checking accountsaccounts, and all categories of CDs and MMDAs, primarilyprincipally due to risingdeclines in interest rates,rates. increasedInterest competitionon forother deposits and higher average balances. Other interest expenseborrowings decreased $33.2$7.4 million, or 55.7%,43.1%, while the rate on other borrowings decreased to 4.60%3.16% compared to 5.09%,4.42%, when 20242025 is compared to 2023,2024, principally due to a decrease in theinterest amountexpense ofon FHLB advances, principally due to a decline in rates on short-term FHLB advancesadvances. obtainedInterest on federal funds purchased and securities sold under repurchase agreements decreased $2.6 million, or 13.0%, while the rate on federal funds purchased and securities sold under repurchase agreements decreased to 4.26% compared to 5.05%, when 2025 is compared to 2024, principally due to a decline in interest expense on upstream federal funds purchased, reflecting declines in the federal funds target rate by the FRB. Interest on subordinated notes increased $1.9 million, or 39.9%, while the rate on subordinated notes increased to 4.99% from 3.84% when 2025 is compared to 2024, primarily due to the FHLBaccelerated amortization of Dallascapitalized costs related to the subordinated notes issued in 2020 which were repaid fully during the year.fourth quarter of 2025. See the section captioned "Subordinated Notes" for additional information regarding changes in the subordinated notes.

The PCL, LHFI is the amount necessary to maintain the ACL, LHFI at the amount of expected credit losses inherent within the LHFI portfolio. The amount of PCL and the related ACL for LHFI are based on Trustmark’s ACL methodology. The PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, totaled $37.3$14.3 million for 2024,2025, compared to a PCL, LHFI of $27.4 million for 2023 and $21.7 million for 2022. The PCL, LHFI, excluding the PCL, LHFI sale of 1-4 family mortgage loans, of $37.3 million for 2024 and a PCL, LHFI of $27.4 million for 2023. The PCL, LHFI for 2025 primarily reflected an increase in required reserves as a result of credit migrations and other net changes in the qualitative reserve factors, loan growth, changes in the macroeconomic forecast and anupdates increaseto various qualitative reserve factors, partially offset by a decrease in specific reserves for individually analyzed credits.credits, positive credit migration and reserves released associated with the resolution of the External Factor – Credit Quality Review qualitative factor.

FASB ASC Topic 326 requires Trustmark to estimate expected credit losses for off-balance sheet credit exposures which are not unconditionally cancellable by Trustmark. Trustmark maintains a separate ACL for off-balance sheet credit exposures, including unfunded commitments and letters of credit. Adjustments to the ACL on off-balance sheet credit exposures are recorded to the PCL, off-balance sheet credit exposures. The PCL, off-balance sheet credit exposures totaled a negative $1.4 million for 2025 compared to a negative $4.7 million for 20242024, compared toand a negative $2.8 million for 2023, and $1.2 million for 2022.2023. The release in PCL on off-balance sheet credit exposures for 20242025 primarily reflected a decrease in required reserves as a result of positive credit migration and reserves released associated with the resolution of the External Factor – Credit Quality Review qualitative factor, partially offset by an increase in required reserves as a result of changes in the total reserve rate coupled with a decrease in unfunded commitments which was partially offset by an increase in required reserves as a result of implementing the Performance Trend and the External Factor-Credit Quality Review qualitative reserve factors.rate.

The increase in mortgage banking, net when 20242025 is compared to 20232024 was principally due to ana increasedecrease in the net negative hedge ineffectiveness and increases in the gain on sales of loans, net and mortgage servicing income, net, partially offset by an increase in the netrun-off negativeof hedgethe ineffectiveness.MSR. Mortgage loan production totaled $1.418$1.528 billion for 2024,2025, aan decreaseincrease of $36.4$109.9 million, or 2.5%,7.8%, when compared to 2023.2024. Loans serviced for others totaled $8.956 billion at December 31, 2025, compared with $8.763 billion at December 31, 2024, compared withand $8.477 billion at December 31, 2023, and $8.116 billion at December 31, 2022.2023.

Representing a significant component of mortgage banking income is gain on sales of loans, net. The increase in the gain on sales of loans, net when 20242025 is compared to 20232024 was primarily the result of higheran profit margins in secondary marketing activities partially offset by a decreaseincrease in the mortgage valuation adjustment. Loan sales increased $16.2 million, or 1.4%, during 2025 to total $1.158 billion compared to an increase of $5.3 million, or 0.5%, during 2024 to total $1.141 billion compared to a decrease of $107.0 million, or 8.6%, during 2023 to total $1.136 billion.

The increasedecrease in other, net when 20242025 is compared to 20232024 was principally due to the $8.1 million Visa C shares fair value adjustment during the second quarter of 2024 as well as an increase in otheramortization miscellaneousof income,tax credit partnerships, partially offset by the $4.8 million noncredit-related loss on the sale of 1-4 family mortgage loans recorded during the second quarter of 2024. The increase in other miscellaneous income when 2024 is compared with 2023 was principally due to increases in cash management service charges and other partnership investments.

The decreaseincrease in salaries and employee benefits expense when 20242025 is compared to 20232024 was principally due to decreases in commission expense due to the decline in mortgage originations, severance expense and medical insurance expense, partially offset by increases in salaries expense, primarily due to general merit increases,increases accruedand new associates added during 2025, annual management performance incentivesincentives, medical insurance expense, commission expense due to the increase in mortgage originations and stockother compensationsalaries expense related to performance awards.expense.

The decreaseincrease in services and fees when 20242025 is compared to 20232024 was principally due to declines in outside services and fees, telephone expense and advertising expense, partially offset by increases in data processing charges related to software andsoftware, business process outsourcing fees.fees, advertising expense and legal expense.

The increasedecrease in other expense when 20242025 is compared to 20232024 was principally due to increasesa decrease in FDIC assessment expense, primarily due to ana increasedecrease in the assessment rate, andwhich otherwas real estate write-downs, partiallylargely offset by declinesincreases in stationaryloan and suppliesexpense and other miscellaneous expenses.

Trustmark’s operations are managed along two operating segments: General Banking and Wealth Management. A description of each segment and the methodologies used to measure financial performance and financial information by reportable segment are included in Note 2120 – Segment Information located in Part II. Item 8. – Financial Statements and Supplementary Data of this report. The Insurance Segment is included in discontinued operations for all periods presented in the accompanying consolidated balance sheets and the consolidated statements of income (loss). For additional information about discontinued operations, please see Note 2 -– Discontinued Operations included in Part I. Item 1. – Financial Statements of this report.

Net interest income for the General Banking Segment for 20242025 increased $31.5$47.9 million, or 5.8%,8.3%, when compared with 2023,2024, primarily resulting from increasesdeclines in all categories of interest expense as well as an increase in interest on securities, partially offset by decreases in interest and fees from LHFS and LHFI and interest on securities as well as a decline in other interest expense, partially offset by an increase in interest expense on deposits and a decrease in other interest income. Net interest income for the General Banking Segment for 2023 increased $57.6 million, or 11.8%, when compared with 2022, principally due to increases in interest and fees on LHFS and LHFI, other interest income and interest on securities, partially offset by an increase in total interest expense. The PCL (LHFI and off-balance sheet credit exposures) for the General Banking Segment for 20242025 totaled $41.1$12.9 million compared to a PCL of $26.7$41.1 million during 20232024 and a PCL of $22.9$26.7 million during 2022.2023. For more information on these net interest income items, please see the sections captioned “Financial Highlights” and “Results of Operations.”

Noninterest income (loss) for the General Banking Segment decreasedincreased $174.2$183.9 million during 2024 compared to a decrease of $2.9 million, or 2.5%, during 2023. The decrease in noninterest income (loss) for the General Banking Segment during 2024 was2025, primarily due to the net loss on the sale of available for sale securities,securities and the noncredit-related loss on the sale of 1-4 family mortgage loans andduring athe decreasesecond quarter of 2024, as well as increases in mortgage banking, net,net and gain on sale on premises and equipment, partially offset by the gain on the conversion of Visa Class B-1 shares to Visa Class C shares during the second quarter of 2024 and increasesa decrease in cash management service fees and otheran miscellaneous income. The decreaseincrease in noninterest income (loss) for the Generalamortization Bankingof Segmenttax duringcredit 2023 was primarily due to the decreases in bank card and other fees and mortgage banking, net, partially offset by increases in service charges on deposit accounts and other, net.partnerships. Noninterest income (loss) for the General Banking Segment represented a negative 11.7%16.4% of total revenue for 2024,2025, a negative 11.7% for 2024 and 17.2% for 2023 and 19.2% for 2022.2023. Noninterest income (loss) for the General Banking Segment includes service charges on deposit accounts; wealth management; bank card and other fees; mortgage banking, net; other, net and securities gains (losses), net. For more information on these noninterest income (loss) items, please see the analysis included in the section captioned “Noninterest Income (Loss).”

Trustmark, a Mississippi business corporation incorporated in 1968, is a bank holding company headquartered in Jackson, Mississippi. Trustmark’s principal subsidiary is Trustmark Bank (TB), a Mississippi-chartered banking corporation. TB is a member bank of the Federal Reserve System and is supervised by the Federal Reserve Bank of Atlanta (FRBA) and the Mississippi Department of Banking and Consumer Finance (MDBCF). In addition, as a large provider of consumer financial services, TB remains subject to regulation, supervision, enforcement and examination by the Consumer Financial Protection Bureau (CFPB). As a Mississippi state-chartered banking corporation, TB must obtain the approval of the MDBCF prior to declaring or paying a dividend on its common stock. Dividends from TB are Trustmark’s principal source of cash. 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 MarchJune 31,30, 2026, TB had total assets of $18.985$19.190 billion, which represented 99.99% of the consolidated assets of Trustmark.

Through TB and its other subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through offices and 2,5302,583 full-time equivalent associates (measured at MarchJune 31,30, 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).

In addition to these non-routine transactions, Trustmark's financial results for the firstthree threeand six months ofended 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 AprilJuly 28, 2026, Trustmark’s Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable JuneSeptember 15, 2026, to shareholders of record on JuneSeptember 1, 2026. Trustmark’s payment of the dividend will be fully funded by a dividend from TB to Trustmark, which the MDBCF approved on April 28, 2026.

Economic activity during the first quartersix months of 2026 wasexpanded characterizedat a moderate pace, supported by acontinued reboundconsumer spending and business investment, including investment in growth following a weak end to 2025, driven by robust artificial intelligence (AI) relatedinfrastructure, businesswhile investmentsinflationary andpressures, consumer spending, though this was tempered by a significant geopolitical shock at the end of the quarter. While labor markets remained tight, escalatingelevated energy pricesprices, tariffs and geopolitical volatility,uncertainty particularlyweighed inon the Middleoutlook. East,Labor slowedmarket momentumconditions lateremained inrelatively stable, with unemployment little changed, but inflation remained above the quarter,FRB’s forcinglonger-run theobjective Federaland Reserve Board (FRB)contributed to pausea ratemore cutscautious itmonetary mightpolicy have otherwise approved.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.

Beginning with the September 2025 meeting of the FRB's Federal Open Market Committee, the FRB noted increases in unemployment and inflation shifting the balance of risks to achieving its goals. As a result, theThe FRB decreased the target federal funds rate and the rate it pays on reserves multiple times during the fourth quarter of 2025, lowering the target federal funds rate to a range of 3.50% to 3.75% and the rate it pays on reserves to 3.65% as of December 2025. The FRB determined to leaveleft the target federal funds rate and the rate it pays on reserves unchanged during the first threesix months of 2026,2026 notingas thatpolicymakers whileassessed economicthe activitycompeting expandedrisks atof apersistent solidinflation, paceslowing growth and thereheightened wasglobal little change in the unemployment rate, inflationary concerns and implications of developments in the Middle East for the U.S. economy are uncertain.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.

In the FebruaryMay and AprilJuly 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 JanuaryApril 6, 2026 through FebruaryMay 23,27, 2026 and FebruaryMay 24,28, 2026 through AprilJuly 6, 2026) overall economic activity increased at a slight to modestmoderate pace in eightmost Districts. The May report indicated that economic activity increased at a slight to moderate pace in ten of the twelve Districts, while theone remaining DistrictsDistrict reported a slight decline and one reported no change. The July report indicated that economic activity wasincreased flatat ora declining.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:

Reports by the Federal Reserve’s Sixth District, Atlanta (which includes Trustmark’s Alabama, Florida, Georgia and Mississippi market regions), Eighth District, St. Louis (which includes Trustmark’s Tennessee market region), and Eleventh District, Dallas (which includes Trustmark’s Texas market region), noted similar findings for the reporting periodperiods asthat thosewere generally consistent with the national observations discussed above. The Federal Reserve'sReserve’s Sixth District reported overallthat loaneconomic activity continued to expand at a modest pace, with consumer spending and travel and tourism increasing modestly, transportation and manufacturing demand continuing to improve, and agricultural conditions deteriorating. Loan growth was moderate, most types of lending expanded within the exceptionSixth ofDistrict creditwas carddriven by consumer and specialized lending, autowhile lending posted the largest percentage increase as higher vehicle prices prompted consumers to seek extended loan termsresidential and commercial lendingreal declinedestate drivenconditions bywere alittle pullbackchanged, inon small business lending amid tighter lending standards, increased concerns over credit quality and new U.S. citizenship requirements for Small Business Administration (SBA) loans.balance. The Federal Reserve’s Eighth District noted that bankingeconomic activity remainedincreased slightly, banking conditions were largely unchanged, withconsumer somespending bankingwas stable and manufacturing softened slightly, although firms tied to energy and defense reported stronger demand. Eighth District contacts reportingalso signs of improvement in the commercial loan pipeline largely fueled by opportunities in commercial real estate and ongoing business transactions,reported stable credit quality overall, thoughwith some early-stage weaknessesweakness had emerged, particularly foramong small business borrowers whose riskrisks iswere more closely tied to input costs and fuel prices, and an uptick in overdraft frequency signaling that many households are facingsignaled tighter household budgets and reduced discretionary spending. The Federal Reserve’s Eleventh District reported thatmodest economic growth, with loan volume and loan demand increasedincreasing, driven in March 2026, drivenpart by commercial real estate loans,lending, while credit standards and terms tightened slightly, loan pricing continued to decline and loan performance tickedweakened down. The Federal Reserve’smodestly. Eleventh District bankers also noted that bankers reported generalless businessoptimistic activity declinedoutlooks and outlookscontinued wereto lessexpress optimistic,concern expressing concerns aboutregarding the impact of higher fuel pricesprices, ongeopolitical developments, tariffs and uncertainty regarding the economyfuture ifpath sustained and noting that the Middle East conflict had created more uncertainty around futureof interest rates and that rate cuts may now be less likely.rates.

Trustmark is monitoringcontinuing to monitor the impact of geopolitical conflicts, tariffstariffs, higher fuel and transportation costs, inflationary pressures, changing consumer behavior and other administrative policies on its customer base, interest ratesrates, loan demand and credit-related issues. Economic uncertainty or disruptions in the marketplace as a result of such policiesfactors could reduce loan demanddemand, 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 changeschanges, geopolitical developments or broader economic conditions could have on Trustmark'sTrustmark’s customer base, credit qualityquality, financial condition or results of operations.

Trustmark reported net income of $56.1$63.5 million, or basic and diluted earnings per share (EPS) of $0.95,$1.09 and $1.08, respectively, in the firstsecond quarter of 2026, compared to $53.6$55.8 million, or basic and diluted EPS of $0.88,$0.92, in the firstsecond quarter of 2025. Trustmark’s reported performance during the quarter ended MarchJune 31,30, 2026 produced a return on average tangible equity of 12.58%,14.08%, a return on average assets of 1.20%,1.33%, an average equity to average assets ratio of 11.33%11.23% and a dividend payout ratio of 26.32%,22.94%, compared to a return on average tangible equity of 13.13%, a return on average assets of 1.19%,1.21%, an average equity to average assets ratio of 10.94%11.07% and a dividend payout ratio of 27.27%26.09% during the quarter ended MarchJune 31,30, 2025.

Total revenue, which is defined as net interest income plus noninterest income, for the three months ended MarchJune 31,30, 2026 was $202.9$208.2 million, an increase of $8.3$9.6 million, or 4.2%,4.8%, when compared to the same time period in 2025. The increase in total revenue when the three months ended MarchJune 31,30, 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, primarily as a result of a decrease in interest on deposits and an increase in interest and fees on loans held for sale (LHFS) and LHFI.income.

Net interest income for the three and six months ended MarchJune 31,30, 2026 totaled $160.6$165.6 million and $326.2 million, respectively, an increase of $8.5$6.9 million, or 5.6%,4.3%, and $15.4 million, or 4.9%, respectively, when compared to the same time periods in 2025. Interest income totaled $237.4 million for the three months ended June 30, 2026, relatively unchanged when compared to the same time period in 2025. Interest income totaled $232.1$469.5 million for the threesix months ended MarchJune 31,30, 2026, an increase of $2.9 million, or 1.3%,0.6%, when compared to the same time period in 2025, principally due to an increaseincreases in interest and fees on LHFS and LHFI primarilyand attributableinterest toon loan growthsecurities, partially offset by a decline in other interest rates.income. Interest expense totaled $71.5$71.8 million and $143.3 million, respectively, for the three and six months ended MarchJune 31,30, 2026, a decrease of $5.6$6.9 million, or 7.2%,8.7%, and $12.5 million, or 8.0%, respectively, when compared to the same time periodperiods in 20252025, principally due to a declinedeclines in interest expenseon deposits and interest on deposits,federal primarilyfunds attributablepurchased toand asecurities declinesold inunder interestrepurchase rates paid on deposit accounts.agreements.

Noninterest expense for the three and six months ended MarchJune 31,30, 2026 totaled $132.2$133.7 million and $265.8 million, respectively, an increase of $8.1$8.6 million, or 6.6%,6.8%, and $16.7 million, or 6.7%, respectively, when compared to the same time periodperiods in 2025, principally due to increases in salaries and employee benefits andbenefits, services and fees.fees and equipment expense. Salaries and employee benefits totaled $74.2$73.0 million and $147.2 million, respectively, for the three and six months ended MarchJune 31,30, 2026, an increase of $5.8$4.7 million, or 8.4%,6.9%, and $10.4 million, or 7.6%, respectively, when compared to the same time periodperiods in 2025. The increase in salaries and employee benefits when the three months ended March 31, 2026 is compared to the same time period in 2025 was2025, principally due to increases in salaries expense primarily due to general merit increases and employees added during 2025,employees, commission expense related to mortgage origination production and brokerage activity, management annual performance incentives, payroll taxes and incentive stock compensation expense, payroll taxes, contributions to employee retirement funds and medical insurance expense. Services and fees totaled $27.9$29.7 million for the three months ended MarchJune 31,30, 2026, an increase of $1.7$2.8 million, or 6.5%,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.

LHFI totaled $13.878$13.913 billion at MarchJune 31,30, 2026, an increase of $203.7$238.8 million, or 1.5%,1.7%, compared to December 31, 2025. The increase in LHFI during the first threesix months of 2026 was primarily due to net growth in commercial and industrial loans,loans and other commercial loans and leasesleases, andpartially 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.”

Total deposits were $15.713$16.071 billion at MarchJune 31,30, 2026, an increase of $212.7$571.4 million, or 1.4%,3.7%, compared to December 31, 2025. During the first threesix months of 2026, noninterest-bearing deposits increased $59.2$337.0 million, or 1.9%,11.1%, principally due to growth in commercial and consumer noninterest-bearing demand deposit accounts. Interest-bearing deposits increased $153.5$234.4 million, or 1.2%,1.9%, during the first threesix months of 2026, primarily due to growth in public and commercial interest checking accounts, commercial money market deposit accounts (MMDA), consumer savings accounts and brokered certificates of deposits (CDs), commercial and public CDs and consumer savings accounts, partially offset by declines in commercialconsumer interest checking accounts, consumer MMDA and consumer CDs.

Federal funds purchased totaled $385.0$360.0 million at MarchJune 31,30, 2026, a decrease of $60.0$85.0 million, or 13.5%,19.1%, compared to December 31, 2025. Other borrowings totaled $292.5$137.9 million at MarchJune 31,30, 2026, a decrease of $72.2$226.9 million, or 19.8%,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 threesix 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.

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

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

Net interest income-FTE for the three and six months ended MarchJune 31,30, 2026 increased $8.8$7.2 million, or 5.7%,4.4%, and $15.9 million, or 5.0%, respectively, when compared with the same time periodperiods in 2025. The increase in net interest income-FTE when the three months ended MarchJune 31,30, 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 aninterest increaseon federal funds purchased and securities sold under repurchase agreements and increases in interest and fees on LHFS and LHFI-FTE.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 MarchJune 31,30, 2026 increased 63 basis points to 3.81%,3.84% and 4 basis points to 3.82%, respectively, when compared to the same time periodperiods in 2025, principally due to a decrease in the cost of interest-bearing liabilities, partially offset by a decline in the yield on loanloans (LHFS and LHFI).

Average interest-earning assets for the three and six months ended MarchJune 31,30, 2026 totaled $17.427$17.625 billion and $17.526 billion, respectively, compared to $16.737$17.007 billion and $16.873 billion, respectively, for the same time periodperiods in 2025, an increase of $689.9$617.4 million, or 4.1%,3.6%, and $653.4 million, or 3.9%, respectively, primarily reflecting increases in average LHFI, average securities available for saleLHFI and average LHFS, partially offset by declines in average securities held to maturity.LHFS. Average LHFI increased $602.1$553.7 million, or 4.6%,4.2%, and $577.8 million, or 4.4%, respectively, when the three and six months ended MarchJune 31,30, 2026 isare compared to the same time periodperiods in 2025, principally due to net growth in average balances of commercial and industrial loans, other commercial loans and leases and state and other political subdivision loans, partially offset by net declines in average LHFI secured by real estate. Average securities available for saleLHFS increased $127.0$88.3 million, or 7.4%,43.1%, and $92.4 million, or 47.6%, respectively, when the three and six months ended MarchJune 31,30, 2026 isare compared to the same time period in 2025, principally due to available for sale securities purchased partially offset by calls, maturities and pay-downs of the loans underlying GSE guaranteed securities. Average LHFS increased $96.4 million, or 52.7%, when the three months ended March 31, 2026 is compared to the same time periodperiods in 2025, reflecting increases in average balances of loans in the process of being sold and GNMA loans eligible for repurchase. Average securities held to maturity declined $139.2 million, or 10.5%, when the three months ended March 31, 2026 is compared to the same time period in 2025, principally due to calls, maturities and pay-downs of the loans underlying GSE guaranteed securities.

Interest income-FTE for the three and six months ended MarchJune 31,30, 2026 totaled $235.0$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 $3.2$3.5 million, or 1.4%,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 MarchJune 31,30, 2026 decreased 1519 basis points and 17 basis points, respectively, to 5.47%, when compared to the same time periodperiods in 2025. The increase in interest income-FTE for the threesix months ended MarchJune 31,30, 2026 was primarily due to an increaseincreases in interest and fees on LHFS and LHFI-FTE.LHFI-FTE and interest on securities partially offset by a decline in other interest income. During the threesix months ended MarchJune 31,30, 2026, interest and fees on LHFS and LHFI-FTE increased $3.2$3.7 million, or 1.6%,0.9%, while the yield on LHFS and LHFI decreased 2224 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.

Average interest-bearing liabilities for the three and six months ended MarchJune 31,30, 2026 totaled $13.507$13.501 billion and $13.504 billion, respectively, compared to $12.877$13.019 billion and $12.949 billion, respectively, for the threesame monthstime endedperiods March 31,in 2025, an increase of $630.1$482.1 million, or 4.9%,3.7%, reflectingand increases$555.7 million, or 4.3%, respectively, primarily due to an increase in average interest-bearing deposits, average subordinated notes and average federal funds purchased and securities sold under repurchase agreements, partially offset by declinesa decline in average other borrowings. Average interest-bearing deposits for the three and six months ended MarchJune 31,30, 2026 increased $620.6$568.9 million, or 5.2%,4.7%, and $594.6 million, or 5.0%, respectively, when compared to the same time periodperiods in 2025, reflecting increases in average interest-bearing demand deposits and average time deposits partially offset by a decrease in average savings deposits. Average subordinatedother notesborrowings for the three and six months ended MarchJune 31,30, 2026 increaseddecreased $48.3$71.1 million, or 39.0%,11.5%, and $43.3 million, or 7.5%, respectively, when compared to the same time periodperiods 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 principleprincipal amount of the notes issued and sold in 2020. Average federal funds purchased and securities sold under repurchase agreements for the three months ended March 31, 2026 increased $24.6 million, or 6.1%, when compared to the same time period in 2025, principally due to an increase in average upstream federal funds purchased partially offset by a decline in securities sold under repurchase agreements. The securities sold under repurchase agreements represented customer related transactions, such as commercial sweep repurchase balances. Trustmark discontinued the customer sweep product during the third quarter of 2025. Average other borrowings for the three months ended March 31, 2026 decreased $63.4 million, or 18.4%, when compared to the same time period in 2025, principally due to the decrease in average short-term FHLB advances outstanding with the FHLB of Dallas partially offset by an increase in average balances of GNMA loans eligible for repurchase.

Interest expense for the three and six months ended MarchJune 31,30, 2026 totaled $71.5$71.8 million and $143.3 million, respectively, a decrease of $5.6$6.9 million, or 7.2%,8.7%, and $12.5 million, or 8.0%, respectively, when compared with the same time periodperiods in 2025, while the rate on total interest-bearing liabilities decreased 2829 basis points to 2.15%,2.13% and 2.14%, respectively, primarily reflecting declines in interest on deposits.deposits and interest on federal funds purchased and securities sold under repurchase agreements. Interest on deposits for the three and six months ended MarchJune 31,30, 2026 decreased $5.0$5.5 million, or 7.4%,8.1%, and $10.5 million, or 7.8%, while the rate on interest-bearing deposits decreased 28 basis points to 2.02%,2.00% and 2.01%, respectively, when compared to the same time periodperiods 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.

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

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 $1.9$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 MarchJune 31,30, 2026, comparedwas primarily attributable to aan negative $2.8 million for the same time period in 2025, a decreaseincrease in the negativequantitative PCL,reserve off-balance sheet credit exposures of $883 thousand, or 31.2%, primarilyrate due to changes in the totalmacroeconomic reserveforecast rate.and an increase in the utilization rates for unfunded commitments. The release in the PCL, off-balance sheet credit exposures for the threesix months ended MarchJune 31,30, 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.

Mortgage loan production for the three and six months ended MarchJune 31,30, 2026 was $375.1$477.0 million and $852.1 million, respectively, an increase of $56.3$50.8 million, or 17.7%,11.9%, and $107.0 million, or 14.4%, respectively, when compared to the same time periodperiods in 2025. Loans serviced for others totaled $9.004 billion at March 31, 2026, compared with $8.811 billion at March 31, 2025, an increase of $192.3 million, or 2.2%.

Representing a significant component of mortgage banking income is the gain on sales of loans, net. The increasedecrease in the gain on sales of loans, net when the three and six months ended MarchJune 31,30, 2026 isare compared to the same time periodperiods 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 $290.1$306.7 million and $596.8 million, respectively, for the three and six months ended MarchJune 31,30, 2026, an increase of $34.3$31.8 million, or 13.4%,11.6%, and $66.1 million, or 12.5%, respectively, when compared with the same time period in 2025.