Trustmark Corporation (NASDAQ:TRMK) Q1 2023 Earnings Conference Call April 26, 2023 9:30 AM ET

Company Participants

Joey Rein - Senior Vice President & Director Corporate Strategy

Duane Dewey - President & Chief Executive Officer

Barry Harvey - Chief Commercial Officer

Tom Owens - Chief Financial Officer

Tom Chambers - Chief Accounting Officer

Conference Call Participants

Kevin Fitzsimmons - D.A. Davidson

Catherine Mealor - KBW

Operator

Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's First Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

Now, it’s my pleasure to introduce Mr. Joey Rein, Director of Corporate Strategy at Trustmark.

Joey Rein

Good morning. I'd like to remind everyone that a copy of our first 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 course of our call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and 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 Duane Dewey, President and CEO of Trustmark.

Duane Dewey

Thank you, Joey, and good morning, everyone. Thank you for joining us this morning. With me this morning are Tom Owens, our Chief Financial Officer; Barry Harvey, our Chief Credit and Operations Officer; and Tom Chambers, our Chief Accounting Officer.

Our first quarter financial performance reflects solid loan and deposit growth, strong performance in our mortgage insurance and wealth management businesses and diligent expense management. For the fourth quarter, Trustmark reported net income of $50.3 million or $0.82 per diluted share. This level of profitability resulted in a return on average tangible common equity of 18.03% and a return on average assets of 1.1%.

Let's look at our financial highlights in a little more detail by turning to Slide 3. We -- at March 31, 2023, loans held for investment totaled $12.5 billion, an increase of $293 million linked quarter, while deposits totaled $14.8 billion, an increase of $346 million linked quarter. Revenue in the first quarter totaled $189 million, a decline of 1.5% linked quarter and an increase of 23.1% from the same quarter in the prior year. Net interest income totaled $141.1 million in the first quarter, a decrease of $8.9 million or 6% linked quarter.