Shareholders' Equity

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Note 16 – Shareholders’ Equity

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2023 Annual Report, which are administered by the federal bank regulatory agencies. These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments. Trustmark’s and TNB’s minimum risk-based capital requirements include a capital conservation buffer of 2.50%. Accumulated other comprehensive income (loss), net of tax, is not included in computing regulatory capital. Trustmark elected the five-year phase-in transition period (through December 31, 2024) related to adopting FASB ASU 2016-13 for regulatory capital purposes. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends. As of September 30, 2024, Trustmark and TNB exceeded all applicable minimum capital standards. In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2024. To be categorized in this manner, Trustmark and TNB maintained, as applicable, minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the accompanying table, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures. There are no significant conditions or events that have occurred since September 30, 2024, which Management believes have affected Trustmark’s or TNB’s present classification.

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2024 and December 31, 2023 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2024:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,694,769		11.30	%		7.00	%	n/a
Trustmark National Bank		1,800,019		12.00	%		7.00	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,754,769		11.70	%		8.50	%	n/a
Trustmark National Bank		1,800,019		12.00	%		8.50	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	2,057,073		13.71	%		10.50	%	n/a
Trustmark National Bank		1,978,676		13.19	%		10.50	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,754,769		9.65	%		4.00	%	n/a
Trustmark National Bank		1,800,019		9.90	%		4.00	%		5.00	%
At December 31, 2023:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,521,665		10.04	%		7.00	%	n/a
Trustmark National Bank		1,602,327		10.58	%		7.00	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,581,665		10.44	%		8.50	%	n/a
Trustmark National Bank		1,602,327		10.58	%		8.50	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,862,246		12.29	%		10.50	%	n/a
Trustmark National Bank		1,759,426		11.61	%		10.50	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,581,665		8.62	%		4.00	%	n/a
Trustmark National Bank		1,602,327		8.75	%		4.00	%		5.00	%

Stock Repurchase Program

On December 6, 2022, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2023, under which $50.0 million of Trustmark’s outstanding shares could be acquired through December 31, 2023. No shares were repurchased under this stock repurchase program.

On December 5, 2023, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2024. The repurchase program, which is subject to market conditions and management discretion, will be implemented through open market repurchases or privately negotiated transactions. During the first nine months of 2024, Trustmark did not repurchase any shares under this stock repurchase program.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following table presents the net change in the components of accumulated other comprehensive income (loss) and the related tax effects allocated to each component for the periods presented ($ in thousands). The amortization of prior service cost, recognized net loss due to lump sum settlements and change in net actuarial loss are included in the computation of net periodic benefit cost (see Note 10 – Defined Benefit and Other Postretirement Benefits for additional details). Reclassification adjustments related to pension and other postretirement benefit plans are included in salaries and employee benefits and other expense in the accompanying consolidated statements of income (loss). Reclassification adjustments related to the cash flow hedge derivatives are included in interest and fees on LHFS and LHFI in the accompanying consolidated statements of income (loss).

	Three Months Ended September 30, 2024							Three Months Ended September 30, 2023
	Before Tax Amount		Tax (Expense) Benefit			Net of Tax Amount		Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred    securities:
Net unrealized holding gains (losses) arising    during the period	$	55,892	$	(13,973	)	$	41,919	$	(26,963	)	$	6,740		$	(20,223	)
Reclassification adjustment for net (gains) losses    realized in net income		—		—			—		—			—			—
Change in net unrealized holding loss on    securities transferred to held to maturity		3,688		(922	)		2,766		4,000			(1,000	)		3,000
Total securities available for sale    and transferred securities		59,580		(14,895	)		44,685		(22,963	)		5,740			(17,223	)
Pension and other postretirement benefit plans:
Reclassification adjustments for changes    realized in net income:
Net change in prior service costs		28		(7	)		21		28			(7	)		21
Recognized net loss due to lump sum    settlements		—		—			—		—			—			—
Change in net actuarial loss		84		(21	)		63		70			(18	)		52
Total pension and other postretirement    benefit plans		112		(28	)		84		98			(25	)		73
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		18,826		(4,706	)		14,120		(11,338	)		2,834			(8,504	)
Reclassification adjustment for (gain) loss    realized in net income		4,831		(1,208	)		3,623		4,627			(1,157	)		3,470
Total cash flow hedge derivatives		23,657		(5,914	)		17,743		(6,711	)		1,677			(5,034	)
Total other comprehensive income (loss)	$	83,349	$	(20,837	)	$	62,512	$	(29,576	)	$	7,392		$	(22,184	)

	Nine Months Ended September 30, 2024									Nine Months Ended September 30, 2023
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred    securities:
Net unrealized holding gains (losses) arising    during the period	$	47,579		$	(11,895	)	$	35,684		$	(16,062	)	$	4,246		$	(11,816	)
Reclassification adjustment for net (gains) losses    realized in net income		182,792			(45,698	)		137,094			—			—			—
Change in net unrealized holding loss on    securities transferred to held to maturity		11,020			(2,755	)		8,265			11,799			(2,950	)		8,849
Total securities available for sale    and transferred securities		241,391			(60,348	)		181,043			(4,263	)		1,296			(2,967	)
Pension and other postretirement benefit plans:
Reclassification adjustments for changes    realized in net income:
Net change in prior service costs		83			(21	)		62			83			(21	)		62
Recognized net loss due to lump sum    settlements		(13	)		3			(10	)		25			(6	)		19
Change in net actuarial loss		263			(65	)		198			216			(54	)		162
Total pension and other postretirement    benefit plans		333			(83	)		250			324			(81	)		243
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		(2,007	)		502			(1,505	)		(24,569	)		6,142			(18,427	)
Reclassification adjustment for (gain) loss    realized in net income		14,520			(3,630	)		10,890			11,555			(2,889	)		8,666
Total cash flow hedge derivatives		12,513			(3,128	)		9,385			(13,014	)		3,253			(9,761	)
Total other comprehensive income (loss)	$	254,237		$	(63,559	)	$	190,678		$	(16,953	)	$	4,468		$	(12,485	)

The following table presents the changes in the balances of each component of accumulated other comprehensive income (loss) for the periods presented ($ in thousands). All amounts are presented net of tax.

	Securities Available for Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2024	$	(204,670	)	$	(6,075	)	$	(8,978	)	$	(219,723	)
Other comprehensive income (loss) before reclassification		43,949			—			(1,505	)		42,444
Amounts reclassified from accumulated other    comprehensive income (loss)		137,094			250			10,890			148,234
Net other comprehensive income (loss)		181,043			250			9,385			190,678
Balance at September 30, 2024	$	(23,627	)	$	(5,825	)	$	407		$	(29,045	)
Balance at January 1, 2023	$	(254,442	)	$	(5,792	)	$	(15,169	)	$	(275,403	)
Other comprehensive income (loss) before reclassification		(2,967	)		—			(18,427	)		(21,394	)
Amounts reclassified from accumulated other    comprehensive income (loss)		—			243			8,666			8,909
Net other comprehensive income (loss)		(2,967	)		243			(9,761	)		(12,485	)
Balance at September 30, 2023	$	(257,409	)	$	(5,549	)	$	(24,930	)	$	(287,888	)