Trustmark Corporation

Business and latest results

Trustmark provides banking and financial services to consumers and businesses in the Southern United States through Trustmark Bank. Its deposit franchise, loan quality and capital position underpin the proposed combination with Hancock Whitney.

Deposits, loans and capital

At September 30, assets were $19.11 billion, deposits $16.06 billion and loans held for investment $13.87 billion. The common equity tier 1 capital ratio was 11.98%. Nonperforming assets were $57.0 million, down from year-end, partly because of a sale of residential mortgage loans in Q2.

Hancock Whitney transaction

The November 11 agreement, announced November 12, would exchange each Trustmark share for 0.7463 Hancock Whitney shares. Using the buyer's November 11 closing price, that was $54.02 per Trustmark share and approximately $3.2 billion in total. The exchange ratio is fixed; the dollar value is not. Legacy Trustmark holders would own about 35% of the combined company.

The transaction is pending, with closing expected in late Q1 2027 after both shareholder votes and regulatory approvals. Systems and brand conversion are expected in late 2027.

The model behind the offer

The banks expect $205.5 million in annual pretax net expense savings, or 35% of Trustmark's noninterest expense base in the model. They project 37.5% of the savings in 2027 and full savings thereafter. Estimated pretax merger expenses are $250 million; extra revenue opportunities are not included in the model.

The model estimates Trustmark standalone 2028 earnings at $254 million. Combined earnings after transaction adjustments are projected at $1.009 billion. These are forecasts, rather than reported quarterly results. The projected earnings-per-share benefit and tangible-book-value earnback depend on integration and the savings schedule.