Trustmark Q2 net earnings rises on higher net interest income

Overview

• US regional bank's Q2 net income rose 13% yr/yr, with EPS at $1.08

• Company's net interest income grew to $168.6 mln

• Trustmark repurchased $21.1 mln of shares in Q2 under existing buyback program

Outlook

• Trustmark did not provide specific guidance for the current quarter or full year in the press release

Result Drivers

• MORTGAGE LOAN SALE - Sale of delinquent and nonaccrual mortgage loans reduced nonperforming assets and increased pre-tax income by $4.2 mln

• DEPOSIT GROWTH - Deposits increased $358.7 mln, or 2.3%, from the prior quarter, supporting net interest margin expansion

• TECHNOLOGY INVESTMENTS - Core deposit and related systems were converted to new platforms, increasing efficiency and contributing to higher services and fees expense

Company press release: ID:nBw2qyNS9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Trustmark Corp is $46.50, about 0.4% above its July 27 closing price of $46.31

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)