For the periods presented, the income tax provision attributable to continuing operations differs from the amount computed by applying the statutory federal income tax rate in effect for each respective period to income before income taxes as a result of the following ($ in thousands):


	Year Ended December 31, 2025
	Amount			%
Income tax computed at statutory tax rate	$	57,682			21.0	%
Nontaxable or nondeductible items:
Tax exempt interest		(5,787	)		-2.1	%
Nontaxable increase in cash surrender value of bank-owned life insurance		(1,609	)		-0.6	%
Nondeductible interest expense		1,687			0.6	%
Nondeductible executive compensation		903			0.3	%
Nondeductible FDIC premiums		693			0.2	%
Income tax credits, net:
Low income housing tax credits		(5,440	)		-2.0	%
New markets tax credits		(3,352	)		-1.2	%
Other tax credits		(2,842	)		-1.0	%
Other		770			0.3	%
State income taxes, net		7,838			2.9	%
Income tax provision	$	50,543			18.4	%

During the year ended December 31, 2025, state taxes in Alabama, Georgia and Mississippi made up the majority of the tax effect in the state income taxes, net category. Trustmark has no foreign operations and does not file income tax returns in foreign jurisdictions.


	Years Ended December 31,
	2024			2023
Income tax computed at statutory tax rate	$	7,152		$	38,018
Tax exempt interest		(5,605	)		(5,521	)
Nondeductible interest expense		2,153			2,104
State income taxes, net		(5,185	)		5,050
Income tax credits, net		(11,483	)		(11,904	)
Death benefit gains		(92	)		(80	)
Other		1,907			77
Income tax provision	$	(11,153	)	$	27,744

Deferred Tax Assets and Liabilities

Temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities gave rise to the following net deferred tax assets at December 31, 2025 and 2024, which are included in other assets on the accompanying consolidated balance sheets ($ in thousands):


	December 31,
	2025		2024
Deferred tax assets:
Other real estate	$	510	$	2,293
Accumulated credit losses		46,256		47,416
Deferred compensation		20,124		19,299
Finance and operating lease liabilities		9,927		10,652
Realized built-in losses		6,928		7,679
Securities		3,506		22,294
Pension and other postretirement benefit plans		1,722		1,574
Interest on nonaccrual loans		1,012		1,173
LHFS		150		236
Stock-based compensation		3,446		3,544
Derivatives		—		4,018
Tax credit carryforward		1,393		3,489
State basis differences		3,068		—
Other		9,519		8,745
Gross deferred tax asset		107,561		132,412

Deferred tax liabilities:
Goodwill and other identifiable intangibles		13,851		13,880
Premises and equipment		12,553		14,218
Finance and operating lease right-of-use assets		8,750		9,492
MSR		28,054		29,206
Securities		5,501		3,789
Equipment financing		30,794		8,803
Derivatives		687		—
Other		2,542		2,874
Gross deferred tax liability		102,732		82,262
Net deferred tax asset	$	4,829	$	50,150