Q2 2024 Trustmark Corp Earnings Call Transcript
Key Points
- Trustmark Corp (TRMK) completed the sale of Fisher Brown Bottrell Insurance, resulting in an after-tax gain of $171.2 million.
- The company sold $1.6 billion of AFS securities with a low yield and purchased $1.4 billion of higher-yielding AFS securities, significantly boosting net interest margin.
- Nonaccrual loans declined by 55% due to the sale of delinquent mortgage loans, improving the overall risk profile.
- Trustmark Corp (TRMK) achieved a linked-quarter increase in net interest income by $8 million, driven by higher loan yields and securities portfolio restructuring.
- Deposits grew by $124 million linked-quarter and $549 million year-over-year, demonstrating strong deposit base growth.
- The sale of AFS securities resulted in a significant loss of $182.8 million.
- The mortgage loan sale led to an after-tax loss of $10.1 million.
- Noninterest income from continuing operations decreased by $1.1 million linked-quarter due to negative net hedge ineffectiveness.
- Provision for credit losses for loans held for investment was $23.3 million, driven by loan growth and risk rate migration.
- The cost of interest-bearing deposits increased, with a projected further rise in the third quarter, impacting overall deposit costs.
Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's second-quarter earnings conference call. (Operator Instructions) As a reminder, this call is being recorded. It is now my pleasure to introduce Mr. Joey Rein, Director of Corporate Strategy at Trustmark. Please go ahead sir.
Good morning. I'd like to remind everyone that a copy of our second quarter earnings release, as well as the slide presentation that will be discussed on our call this morning, is available on the Investor Relations section of our website at trustmark.com. During the call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We would like to caution you that these forward-looking statements may differ materially from actual results due to a number of risks and uncertainties, which are outlined in our earnings release and our other filings with the Securities and Exchange Commission. At this time, I'd like to introduce
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