Trustmark Corporation (NASDAQ:TRMK) Q3 2024 Earnings Conference Call October 23, 2024 9:30 AM ET

Company Participants

Joey Rein - Investor Relations
Duane Dewey - President and Chief Executive Officer
Tom Owens - Chief Financial Officer
Barry Harvey - Chief Credit and Operations Officer
Tom Chambers - Chief Accounting Officer

Conference Call Participants

Will Jones - KBW
Tim Mitchell - Raymond James
Gary Tenner - D.A. Davidson
Christopher Marinac - Janney

Operator

Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, there will be a question-and-answer session. [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.

Joey Rein

Thank you. Good morning. I'd like to remind everyone that our third quarter earnings release and the slide presentation that will be discussed on our call this morning are available on the Investor Relations section of our website at trustmark.com.

During our call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and we'd 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 as well as our other filings with the Securities and Exchange Commission. At this time, I'll turn the call over to 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 are Tom Owens, our Chief Financial Officer; Barry Harvey, our Chief Credit and Operations Officer; and Tom Chambers, our Chief Accounting Officer. The third quarter was a very active and productive quarter for Trustmark.

Our third quarter results reflect significant progress across the organization. Net income totaled $51.3 million, representing diluted earnings per share of $0.84. Profitability, meaningfully increased as evidenced by 26.7% growth in net income from adjusted continuing operations and a 282 basis point improvement in the efficiency ratio. The restructuring of the investment securities portfolio was a major contributor to the 9.5% increase in net interest income in the third quarter. These accomplishments are the result of focused efforts to enhance Trustmark's long-term performance.

Now let's turn to Slide 3 for a recap of the strong fundamental accomplishments during the quarter. Loans held for investment were relatively flat, decreasing $55 million linked quarter and increasing $290 million year-over-year. Deposits declined $222 million linked quarter, excluding targeted reductions in public and brokered deposits of approximately $530 million deposits increased over $300 million linked-quarter. A significant contributor to our performance in the quarter was the growth in net interest income, which increased $13.7 million or 9.5% linked-quarter to $158 million. The net interest margin expanded 31 basis points during the quarter to 3.69%.