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LHFI and ACL, LHFI | 6 Months Ended
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Jun. 30, 2025
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
LHFI and ACL, LHFI | Note 4 – LHFI and ACL, LHFI At June 30, 2025 and December 31, 2024, LHFI consisted of the following ($ in thousands):
|  | June 30, 2025 |  |  | December 31, 2024 |
Loans secured by real estate: |  |  |  |  |  |
Construction, land development and other land |  | $ | 560,913 |  |  | $ | 587,244 |
Other secured by 1-4 family residential properties |  |  | 689,089 |  |  |  | 650,550 |
Secured by nonfarm, nonresidential properties |  |  | 3,478,932 |  |  |  | 3,533,282 |
Other real estate secured |  |  | 1,918,341 |  |  |  | 1,633,830 |
Other loans secured by real estate: |  |  |  |  |  |
Other construction |  |  | 794,310 |  |  |  | 829,904 |
Secured by 1-4 family residential properties |  |  | 2,368,273 |  |  |  | 2,298,993 |
Commercial and industrial loans |  |  | 1,832,295 |  |  |  | 1,840,722 |
Consumer loans |  |  | 152,921 |  |  |  | 156,569 |
State and other political subdivision loans |  |  | 961,251 |  |  |  | 969,836 |
Other commercial loans and leases |  |  | 708,455 |  |  |  | 589,012 |
LHFI |  |  | 13,464,780 |  |  |  | 13,089,942 |
Less ACL |  |  | 168,237 |  |  |  | 160,270 |
Net LHFI |  | $ | 13,296,543 |  |  | $ | 12,929,672 |
Accrued interest receivable is not included in the amortized cost basis of Trustmark’s LHFI. At June 30, 2025 and December 31, 2024, accrued interest receivable for LHFI totaled $63.6 million and $64.7 million, respectively, with no related ACL and was reported in other assets on the accompanying consolidated balance sheets. Loan Concentrations Trustmark does not have any loan concentrations other than those reflected in the preceding table, which exceed 10% of total LHFI. At June 30, 2025, Trustmark’s geographic loan distribution was concentrated primarily in its six key market regions: Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions in these areas. Nonaccrual and Past Due LHFI No material interest income was recognized in the income statement on nonaccrual LHFI for each of the periods ended June 30, 2025 and 2024. The following tables provide the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more still accruing interest at June 30, 2025 and December 31, 2024 ($ in thousands):
|  | June 30, 2025 |
|  | Nonaccrual With No ACL |  |  | Total Nonaccrual |  |  | Loans Past Due 90 Days or More Still Accruing |
Loans secured by real estate: |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | — |  |  | $ | 289 |  |  | $ | — |
Other secured by 1-4 family residential properties |  |  | 481 |  |  |  | 7,682 |  |  |  | 303 |
Secured by nonfarm, nonresidential properties |  |  | — |  |  |  | 3,283 |  |  |  | — |
Other real estate secured |  |  | 234 |  |  |  | 333 |  |  |  | — |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | 1,503 |  |  |  | 45,944 |  |  |  | 3,181 |
Commercial and industrial loans |  |  | 9 |  |  |  | 22,342 |  |  |  | — |
Consumer loans |  |  | — |  |  |  | 350 |  |  |  | 370 |
Other commercial loans and leases |  |  | — |  |  |  | 777 |  |  |  | — |
Total |  | $ | 2,227 |  |  | $ | 81,000 |  |  | $ | 3,854 |
|  | December 31, 2024 |
|  | Nonaccrual With No ACL |  |  | Total Nonaccrual |  |  | Loans Past Due 90 Days or More Still Accruing |
Loans secured by real estate: |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | — |  |  | $ | 366 |  |  | $ | 159 |
Other secured by 1-4 family residential properties |  |  | 521 |  |  |  | 7,275 |  |  |  | 266 |
Secured by nonfarm, nonresidential properties |  |  | 426 |  |  |  | 13,061 |  |  |  | — |
Other real estate secured |  |  | 1,904 |  |  |  | 1,984 |  |  |  | — |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | 1,533 |  |  |  | 31,583 |  |  |  | 3,253 |
Commercial and industrial loans |  |  | 16 |  |  |  | 24,525 |  |  |  | — |
Consumer loans |  |  | — |  |  |  | 236 |  |  |  | 414 |
Other commercial loans and leases |  |  | — |  |  |  | 1,079 |  |  |  | — |
Total |  | $ | 4,400 |  |  | $ | 80,109 |  |  | $ | 4,092 |
The following tables provide an aging analysis of the amortized cost basis of past due LHFI (including nonaccrual LHFI) at June 30, 2025 and December 31, 2024 ($ in thousands):
|  | June 30, 2025 |
|  | Past Due |  |  |  |  |  |  |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90 Days or More |  |  | Total Past Due |  |  | Current Loans |  |  | Total LHFI |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | 888 |  |  | $ | 30 |  |  | $ | 105 |  |  | $ | 1,023 |  |  | $ | 559,890 |  |  | $ | 560,913 |
Other secured by 1-4 family residential properties |  |  | 5,515 |  |  |  | 3,025 |  |  |  | 2,991 |  |  |  | 11,531 |  |  |  | 677,558 |  |  |  | 689,089 |
Secured by nonfarm, nonresidential properties |  |  | 732 |  |  |  | 105 |  |  |  | 3,029 |  |  |  | 3,866 |  |  |  | 3,475,066 |  |  |  | 3,478,932 |
Other real estate secured |  |  | 221 |  |  |  | 64 |  |  |  | 298 |  |  |  | 583 |  |  |  | 1,917,758 |  |  |  | 1,918,341 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 794,310 |  |  |  | 794,310 |
Secured by 1-4 family residential properties |  |  | 17,853 |  |  |  | 6,654 |  |  |  | 28,671 |  |  |  | 53,178 |  |  |  | 2,315,095 |  |  |  | 2,368,273 |
Commercial and industrial loans |  |  | 1,146 |  |  |  | 317 |  |  |  | 19,944 |  |  |  | 21,407 |  |  |  | 1,810,888 |  |  |  | 1,832,295 |
Consumer loans |  |  | 1,202 |  |  |  | 486 |  |  |  | 397 |  |  |  | 2,085 |  |  |  | 150,836 |  |  |  | 152,921 |
State and other political subdivision loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 961,251 |  |  |  | 961,251 |
Other commercial loans and leases |  |  | 90 |  |  |  | 19 |  |  |  | — |  |  |  | 109 |  |  |  | 708,346 |  |  |  | 708,455 |
Total |  | $ | 27,647 |  |  | $ | 10,700 |  |  | $ | 55,435 |  |  | $ | 93,782 |  |  | $ | 13,370,998 |  |  | $ | 13,464,780 |
|  | December 31, 2024 |
|  | Past Due |  |  |  |  |  |  |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90 Days or More |  |  | Total Past Due |  |  | Current Loans |  |  | Total LHFI |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | 199 |  |  | $ | — |  |  | $ | 324 |  |  | $ | 523 |  |  | $ | 586,721 |  |  | $ | 587,244 |
Other secured by 1-4 family residential properties |  |  | 5,656 |  |  |  | 1,821 |  |  |  | 3,223 |  |  |  | 10,700 |  |  |  | 639,850 |  |  |  | 650,550 |
Secured by nonfarm, nonresidential properties |  |  | 1,488 |  |  |  | 380 |  |  |  | 3,111 |  |  |  | 4,979 |  |  |  | 3,528,303 |  |  |  | 3,533,282 |
Other real estate secured |  |  | 1,979 |  |  |  | — |  |  |  | 28 |  |  |  | 2,007 |  |  |  | 1,631,823 |  |  |  | 1,633,830 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 829,904 |  |  |  | 829,904 |
Secured by 1-4 family residential properties |  |  | 17,898 |  |  |  | 7,111 |  |  |  | 21,524 |  |  |  | 46,533 |  |  |  | 2,252,460 |  |  |  | 2,298,993 |
Commercial and industrial loans |  |  | 1,114 |  |  |  | 13,300 |  |  |  | 8,835 |  |  |  | 23,249 |  |  |  | 1,817,473 |  |  |  | 1,840,722 |
Consumer loans |  |  | 1,930 |  |  |  | 600 |  |  |  | 414 |  |  |  | 2,944 |  |  |  | 153,625 |  |  |  | 156,569 |
State and other political subdivision loans |  |  | 24 |  |  |  | — |  |  |  | — |  |  |  | 24 |  |  |  | 969,812 |  |  |  | 969,836 |
Other commercial loans and leases |  |  | 168 |  |  |  | 67 |  |  |  | 69 |  |  |  | 304 |  |  |  | 588,708 |  |  |  | 589,012 |
Total |  | $ | 30,456 |  |  | $ | 23,279 |  |  | $ | 37,528 |  |  | $ | 91,263 |  |  | $ | 12,998,679 |  |  | $ | 13,089,942 |
Modified LHFI Occasionally, Trustmark modifies loans for borrowers experiencing financial difficulties by providing payment delays, interest-only payments for an extended period of time, maturity extensions or interest rate reductions. Other concessions may arise from court proceedings or may be imposed by law. In some cases, Trustmark provides multiple types of concessions on one loan. The following tables present the amortized cost of LHFI of loans modified to borrowers experiencing financial difficulty disaggregated by class of loan and type of modification at the end of each of the periods presented ($ in thousands). The percentage of the amortized cost basis of LHFI that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of LHFI is also presented below:
|  | Three Months Ended June 30, 2025 |
|  | Payment Delay |  |  | Term Extension |  |  | Total |  |  | % of Total Class of Loan |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | — |  |  | $ | 873 |  |  | $ | 873 |  |  |  | 0.13 | %
Other real estate secured |  |  | — |  |  |  | 14,744 |  |  |  | 14,744 |  |  |  | 0.77 | %
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | — |  |  |  | 3,643 |  |  |  | 3,643 |  |  |  | 0.15 | %
Commercial and industrial loans |  |  | 570 |  |  |  | — |  |  |  | 570 |  |  |  | 0.03 | %
Total |  | $ | 570 |  |  | $ | 19,260 |  |  | $ | 19,830 |  |  |  | 0.15 | %
|  | Three Months Ended June 30, 2024 |
|  | Term Extension |  |  | % of Total Class of Loan |
Loans secured by real estate: |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | 493 |  |  |  | 0.08 | %
Total |  | $ | 493 |  |  |  | 0.00 | %
|  | Six Months Ended June 30, 2025 |
|  | Payment Delay |  |  | Term Extension |  |  | Total |  |  | % of Total Class of Loan |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | — |  |  | $ | 1,616 |  |  | $ | 1,616 |  |  |  | 0.23 | %
Other real estate secured |  |  | — |  |  |  | 14,744 |  |  |  | 14,744 |  |  |  | 0.77 | %
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | — |  |  |  | 5,751 |  |  |  | 5,751 |  |  |  | 0.24 | %
Commercial and industrial loans |  |  | 12,847 |  |  |  | — |  |  |  | 12,847 |  |  |  | 0.70 | %
Total |  | $ | 12,847 |  |  | $ | 22,111 |  |  | $ | 34,958 |  |  |  | 0.26 | %
|  | Six Months Ended June 30, 2024 |
|  | Term Extension |  |  | % of Total Class of Loan |
Loans secured by real estate: |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | 1,891 |  |  |  | 0.29 | %
Total |  | $ | 1,891 |  |  |  | 0.01 | %
The following tables detail the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods presented:
|  | Three Months Ended June 30, 2025
|  | Financial Effect
|  | Payment Delay |  | Term Extension
Loans secured by real estate: |  |  |  |
Other secured by 1-4 family residential properties |  |  |  | Modified one loan and thirteen lines of credit to amortize over twenty-four month terms
Other real estate secured |  |  |  | Extended maturity of one loan by twelve months
Other loans secured by real estate: |  |  |  |
Secured by 1-4 family residential properties |  |  |  | Re-amortized twenty-one loans with term adjusted by weighted average of forty-four months
Commercial and industrial loans |  | Three interest-only payments on four loans |  |
|  | Three Months Ended June 30, 2024
|  | Financial Effect
|  | Term Extension
Loans secured by real estate: |  |
Other secured by 1-4 family residential properties |  | Modified two loans and lines of credit to amortize over 24 month terms
|  | Six Months Ended June 30, 2025
|  | Financial Effect
|  | Payment Delay |  | Term Extension
Loans secured by real estate: |  |  |  |
Other secured by 1-4 family residential properties |  |  |  | Modified two loans and twenty-four lines of credit to amortize over a twenty-four month term
Other real estate secured |  |  |  | Extended maturity of one loan by twelve months
Other loans secured by real estate: |  |  |  |
Secured by 1-4 family residential properties |  |  |  | Re-amortized thirty-three loans with term adjusted by weighted-average of thirty-eight months
Commercial and industrial loans |  | One loan with eight monthly interest payments deferred and four loans with three interest-only monthly payments |  |
|  | Six Months Ended June 30, 2024
|  | Financial Effect
|  | Term Extension
Loans secured by real estate: |  |
Other secured by 1-4 family residential properties |  | Modified three loans and lines of credit to amortize over 24 month terms.
At June 30, 2025, Trustmark had $256 thousand of unused commitments on modified loans to borrowers experiencing financial difficulty compared to none at June 30, 2024. For all loans modified in the previous twelve months to borrowers experiencing financial difficulty, Trustmark had payment defaults during the three months ended June 30, 2025 on $18.4 million of loans in the commercial and industrial portfolio that had received payment delay modifications. For all loans modified in the previous twelve months to borrowers experiencing financial difficulty, Trustmark had payment defaults during the six months ended June 30, 2025 on $18.4 million of loans in the commercial & industrial portfolio that had received payment delay modifications and $38 thousand of loans in the other secured by 1-4 family residential properties that had received a term extension modification. During the three and six months ended June 30, 2024, payment defaults of LHFI that were modified within the twelve months prior to borrowers experiencing financial difficulty were immaterial. Trustmark has utilized loans 90 days or more past due to define payment default in determining modified loans that have subsequently defaulted. If Trustmark determines that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off against the ACL, LHFI. Trustmark closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables provide details of the performance of such LHFI that have been modified in the preceding twelve months as of June 30, 2025 and 2024 ($ in thousands):
|  | June 30, 2025 |
|  | Past Due |  |  |  |  |  |  |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90 Days or More |  |  | Total Past Due |  |  | Current Loans |  |  | Total |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | 128 |  |  | $ | 644 |  |  | $ | — |  |  | $ | 772 |  |  | $ | 2,360 |  |  | $ | 3,132 |
Other real estate secured |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 14,744 |  |  | $ | 14,744 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | 642 |  |  |  | — |  |  |  | — |  |  |  | 642 |  |  |  | 5,233 |  |  |  | 5,875 |
Commercial and industrial loans |  |  | — |  |  |  | — |  |  |  | 18,372 |  |  |  | 18,372 |  |  |  | 570 |  |  |  | 18,942 |
Total |  | $ | 770 |  |  | $ | 644 |  |  | $ | 18,372 |  |  | $ | 19,786 |  |  | $ | 22,907 |  |  | $ | 42,693 |
|  | June 30, 2024 |
|  | Past Due |  |  |  |  |  |  |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90 Days or More |  |  | Total Past Due |  |  | Current Loans |  |  | Total |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | 540 |  |  | $ | — |  |  | $ | — |  |  | $ | 540 |  |  | $ | 1,351 |  |  | $ | 1,891 |
Collateral-Dependent Loans The following tables present the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of June 30, 2025 and December 31, 2024 ($ in thousands):
|  | June 30, 2025 |
|  | Real Estate |  |  | Vehicles |  |  | Miscellaneous |  |  | Total |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | 481 |  |  | $ | — |  |  | $ | — |  |  | $ | 481 |
Secured by nonfarm, nonresidential properties |  |  | 426 |  |  |  | — |  |  |  | — |  |  |  | 426 |
Other real estate secured |  |  | 14,978 |  |  |  | — |  |  |  | — |  |  |  | 14,978 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | 1,503 |  |  |  | — |  |  |  | — |  |  |  | 1,503 |
Commercial and industrial loans |  |  | — |  |  |  | 1,971 |  |  |  | 19,377 |  |  |  | 21,348 |
Other commercial loans and leases |  |  | — |  |  |  | — |  |  |  | 764 |  |  |  | 764 |
Total |  | $ | 17,388 |  |  | $ | 1,971 |  |  | $ | 20,141 |  |  | $ | 39,500 |
|  | December 31, 2024 |
|  | Real Estate |  |  | Vehicles |  |  | Miscellaneous |  |  | Total |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Other secured by 1-4 family residential properties |  | $ | 521 |  |  | $ | — |  |  | $ | — |  |  | $ | 521 |
Secured by nonfarm, nonresidential properties |  |  | 9,783 |  |  |  | — |  |  |  | — |  |  |  | 9,783 |
Other real estate secured |  |  | 1,904 |  |  |  | — |  |  |  | — |  |  |  | 1,904 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  | 1,533 |  |  |  | — |  |  |  | — |  |  |  | 1,533 |
Commercial and industrial loans |  |  | — |  |  |  | 1,818 |  |  |  | 20,685 |  |  |  | 22,503 |
Other commercial loans and leases |  |  | — |  |  |  | — |  |  |  | 896 |  |  |  | 896 |
Total |  | $ | 13,741 |  |  | $ | 1,818 |  |  | $ | 21,581 |  |  | $ | 37,140 |
A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The following provides a qualitative description by class of loan of the collateral that secures Trustmark’s collateral-dependent LHFI: • Loans secured by real estate – Loans within these loan classes are secured by liens on real estate properties. During the second quarter of 2025, one relationship had a decrease in collateral value that secures the credit. There have been no other significant changes to the collateral that secures these financial assets during the period. • Other loans secured by real estate – Loans within these loan classes are secured by liens on real estate properties. There have been no significant changes to the collateral that secures these financial assets during the period. • Commercial and industrial loans – Loans within this loan class are primarily secured by inventory, accounts receivables, equipment and other non-real estate collateral. During the second quarter of 2025, one relationship had a decrease in collateral value that secures the credit. There have been no other significant changes to the collateral that secures these financial assets during the period. • State and other political subdivision loans – Loans within this loan class are secured by liens on real estate properties or other non-real estate collateral. There have been no significant changes to the collateral that secures these financial assets during the period. • Other commercial loans and leases – Loans and leases within this loan class are secured by non-real estate collateral. There have been no significant changes to the collateral that secures these financial assets during the period. Credit Quality Indicators Trustmark’s LHFI portfolio credit quality indicators focus on six key quality ratios that are compared against bank tolerances. The loan indicators are total classified outstanding, total criticized outstanding, nonperforming loans, nonperforming assets, delinquencies and net loan losses. Due to the homogeneous nature of consumer loans, Trustmark does not assign a formal internal risk rating to each credit and therefore the criticized and classified measures are primarily composed of commercial loans. In addition to monitoring portfolio credit quality indicators, Trustmark also measures how effectively the lending process is being managed and risks are being identified. As part of an ongoing monitoring process, Trustmark grades the commercial portfolio segment as it relates to credit file completion and financial statement exceptions, underwriting, collateral documentation and compliance with law as shown below: • Credit File Completeness and Financial Statement Exceptions – evaluates the quality and condition of credit files in terms of content and completeness and focuses on efforts to obtain and document sufficient information to determine the quality and status of credits. Also included is an evaluation of the systems/procedures used to ensure compliance with policy. • Underwriting – evaluates whether credits are adequately analyzed, appropriately structured and properly approved within loan policy requirements. A properly approved credit is approved by an adequate authority in a timely manner with all conditions of approval fulfilled. Total policy exceptions measure the level of underwriting and other policy exceptions within a portfolio segment. • Collateral Documentation – focuses on the adequacy of documentation to perfect Trustmark’s collateral position and substantiate collateral value. Collateral exceptions measure the level of documentation exceptions within a portfolio segment. Collateral exceptions occur when certain collateral documentation is either not present or not current. • Compliance with Law – focuses on underwriting, documentation, approval and reporting in compliance with banking laws and regulations. Primary emphasis is directed to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Regulation O requirements and regulations governing appraisals. Commercial Credits Trustmark has established a loan grading system that consists of ten individual credit risk grades (risk ratings) that encompass a range from loans where the expectation of loss is negligible to loans where loss has been established. The model is based on the risk of default for an individual credit and establishes certain criteria to delineate the level of risk across the ten unique credit risk grades. Credit risk grade definitions are as follows: • Risk Rate (RR) 1 through RR 6 – Grades one through six represent groups of loans that are not subject to criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risk measured by using a variety of credit risk criteria such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties. • Other Assets Especially Mentioned (Special Mention) (RR 7) – a loan that has a potential weakness that if not corrected will lead to a more severe rating. This rating is for credits that are currently protected but potentially weak because of an adverse feature or condition that if not corrected will lead to a further downgrade. • Substandard (RR 8) – a loan that has at least one identified weakness that is well defined. This rating is for credits where the primary sources of repayment are not viable at the time of evaluation or where either the capital or collateral is not adequate to support the loan and the secondary means of repayment do not provide a sufficient level of support to offset the identified weakness. Loss potential exists in the aggregate amount of substandard loans but does not necessarily exist in individual loans. • Doubtful (RR 9) – a loan with an identified weakness that does not have a valid secondary source of repayment. Generally, these credits have an impaired primary source of repayment and secondary sources are not sufficient to prevent a loss in the credit. The exact amount of the loss has not been determined at this time. • Loss (RR 10) – a loan or a portion of a loan that is deemed to be uncollectible. By definition, credit risk grades special mention (RR 7), substandard (RR 8), doubtful (RR 9) and loss (RR 10) are criticized loans while substandard (RR 8), doubtful (RR 9) and loss (RR 10) are classified loans. These definitions are standardized by all bank regulatory agencies and are generally equally applied to each individual lending institution. The remaining credit risk grades are considered pass credits and are solely defined by Trustmark. To enhance this process, Trustmark has determined that certain loans will be individually assessed, and a formal analysis will be performed and based upon the analysis the loan will be written down to the net realizable value. Trustmark will individually assess and remove loans from the pool in the following circumstances: • Commercial nonaccrual loans with total exposure of $500 thousand (excluding those portions of the debt that are government guaranteed or are secured by Trustmark deposits or marketable securities) or more. • Any loan that is believed to not share similar risk characteristics with the rest of the pool will be individually assessed. Otherwise, the loan will be left within the pool based on the results of the assessment. • Commercial accruing loans deemed to be a modified loan to a borrower experiencing financial difficulty with total exposure of $500 thousand (excluding those portions of the debt that are government guaranteed or are secured by Trustmark deposits or marketable securities) or more. If the loan is believed to not share similar risk characteristics with the rest of the loan pool, the loan will be individually assessed. Otherwise, the loan will be left within the pool and monitored on an ongoing basis. Each loan officer assesses the appropriateness of the internal risk rating assigned to their credits on an ongoing basis. Trustmark’s Asset Review area conducts independent credit quality reviews of the majority of Trustmark’s commercial loan portfolio both on the underlying credit quality of each individual loan class as well as the adherence to Trustmark’s loan policy and the loan administration process. In addition to the ongoing internal risk rate monitoring described above, Trustmark’s Credit Quality Review Committee meets monthly and performs a review of all loans of $100 thousand or more that are either delinquent 30 days or more or on nonaccrual. This review includes recommendations regarding risk ratings, accrual status, charge-offs and appropriate servicing officer as well as evaluation of problem credits for determination of modified status. Quarterly, the Credit Quality Review Committee reviews and modifies continuous action plans for all credits risk rated seven or worse for relationships of $250 thousand or more. In addition, periodic reviews of significant development, construction, multi-family, nonowner-occupied and other commercial credits are performed. These reviews assess each particular project with respect to location, project valuations, progress of completion, leasing status, current financial information, rents, operating expenses, cash flow, adherence to budget and projections and other information that is pertinent to the particular type of credit as applicable. Summary results are reviewed by Senior and Regional Credit Officers in addition to the Chief Credit and Operations Officer with a determination made as to the appropriateness of existing risk ratings and accrual status. Consumer Credits The Retail Credit Review Committee, Management Credit Policy Committee and the Enterprise Risk Committee review the volume and percentage of consumer loan delinquencies and losses to monitor the overall quality of the consumer portfolio. Trustmark monitors the levels and severity of past due consumer LHFI on a daily basis through its collection activities. A detailed assessment of consumer LHFI delinquencies is performed monthly at both a product and market level. The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on analyses performed at June 30, 2025 and December 31, 2024 ($ in thousands):
|  | Term Loans by Origination Year |  |  |  |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
As of June 30, 2025 |  | Commercial LHFI |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 165,715 |  |  | $ | 196,937 |  |  | $ | 36,550 |  |  | $ | 25,622 |  |  | $ | 16,326 |  |  | $ | 7,018 |  |  | $ | 46,605 |  |  | $ | 494,773 |
Special Mention - RR 7 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,115 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,115 |
Substandard - RR 8 |  |  | 824 |  |  |  | 1,538 |  |  |  | — |  |  |  | 749 |  |  |  | 87 |  |  |  | — |  |  |  | 167 |  |  |  | 3,365 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 166,539 |  |  |  | 198,475 |  |  |  | 36,550 |  |  |  | 29,486 |  |  |  | 16,413 |  |  |  | 7,018 |  |  |  | 46,772 |  |  |  | 501,253 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other secured by 1-4 family residential properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 23,706 |  |  | $ | 27,709 |  |  | $ | 21,090 |  |  | $ | 20,705 |  |  | $ | 21,758 |  |  | $ | 9,719 |  |  | $ | 8,812 |  |  | $ | 133,499 |
Special Mention - RR 7 |  |  | — |  |  |  | 26 |  |  |  | — |  |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 49 |
Substandard - RR 8 |  |  | 128 |  |  |  | 130 |  |  |  | 642 |  |  |  | 1,131 |  |  |  | 542 |  |  |  | 338 |  |  |  | 22 |  |  |  | 2,933 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 23,834 |  |  |  | 27,865 |  |  |  | 21,732 |  |  |  | 21,836 |  |  |  | 22,323 |  |  |  | 10,057 |  |  |  | 8,834 |  |  |  | 136,481 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Secured by nonfarm, nonresidential properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 348,760 |  |  | $ | 444,860 |  |  | $ | 433,096 |  |  | $ | 803,777 |  |  | $ | 397,113 |  |  | $ | 685,602 |  |  | $ | 148,351 |  |  | $ | 3,261,559 |
Special Mention - RR 7 |  |  | 17,343 |  |  |  | 23,412 |  |  |  | — |  |  |  | 43,488 |  |  |  | 6,038 |  |  |  | 1,155 |  |  |  | 778 |  |  |  | 92,214 |
Substandard - RR 8 |  |  | 6,612 |  |  |  | 2,904 |  |  |  | 1,210 |  |  |  | 44,006 |  |  |  | 34,134 |  |  |  | 36,248 |  |  |  | 38 |  |  |  | 125,152 |
Doubtful - RR 9 |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 7 |
Total |  |  | 372,718 |  |  |  | 471,176 |  |  |  | 434,306 |  |  |  | 891,271 |  |  |  | 437,285 |  |  |  | 723,009 |  |  |  | 149,167 |  |  |  | 3,478,932 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,005 | ) |  |  | — |  |  |  | (2,005 | )
Other real estate secured: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 159,377 |  |  | $ | 93,323 |  |  | $ | 292,157 |  |  | $ | 810,477 |  |  | $ | 230,947 |  |  | $ | 120,494 |  |  | $ | 17,372 |  |  | $ | 1,724,147 |
Special Mention - RR 7 |  |  | 10,596 |  |  |  | — |  |  |  | 21,500 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 11 |  |  |  | 32,107 |
Substandard - RR 8 |  |  | 2 |  |  |  | 14,571 |  |  |  | 22,180 |  |  |  | 51,844 |  |  |  | 27,796 |  |  |  | 44,863 |  |  |  | 186 |  |  |  | 161,442 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 169,975 |  |  |  | 107,894 |  |  |  | 335,837 |  |  |  | 862,321 |  |  |  | 258,743 |  |  |  | 165,357 |  |  |  | 17,569 |  |  |  | 1,917,696 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Term Loans by Origination Year |  |  |  |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
As of June 30, 2025 |  | Commercial LHFI |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 39,096 |  |  | $ | 215,417 |  |  | $ | 398,533 |  |  | $ | 89,820 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,503 |  |  | $ | 771,369 |
Special Mention - RR 7 |  |  | — |  |  |  | — |  |  |  | 5,121 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,121 |
Substandard - RR 8 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,820 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,820 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 39,096 |  |  |  | 215,417 |  |  |  | 403,654 |  |  |  | 107,640 |  |  |  | — |  |  |  | — |  |  |  | 28,503 |  |  |  | 794,310 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 350,258 |  |  | $ | 367,355 |  |  | $ | 291,524 |  |  | $ | 156,844 |  |  | $ | 66,457 |  |  | $ | 40,575 |  |  | $ | 494,288 |  |  | $ | 1,767,301 |
Special Mention - RR 7 |  |  | — |  |  |  | 257 |  |  |  | 3,685 |  |  |  | 11,315 |  |  |  | 14 |  |  |  | — |  |  |  | 12,219 |  |  |  | 27,490 |
Substandard - RR 8 |  |  | 967 |  |  |  | 2,095 |  |  |  | 951 |  |  |  | 9,834 |  |  |  | 3,512 |  |  |  | 12,854 |  |  |  | 7,134 |  |  |  | 37,347 |
Doubtful - RR 9 |  |  | — |  |  |  | 51 |  |  |  | 20 |  |  |  | 9 |  |  |  | — |  |  |  | 2 |  |  |  | 75 |  |  |  | 157 |
Total |  |  | 351,225 |  |  |  | 369,758 |  |  |  | 296,180 |  |  |  | 178,002 |  |  |  | 69,983 |  |  |  | 53,431 |  |  |  | 513,716 |  |  |  | 1,832,295 |
Current period gross charge-offs |  |  | — |  |  |  | (330 | ) |  |  | (610 | ) |  |  | (558 | ) |  |  | (214 | ) |  |  | (455 | ) |  |  | (263 | ) |  |  | (2,430 | )
State and other political subdivision loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 52,497 |  |  | $ | 136,932 |  |  | $ | 78,121 |  |  | $ | 208,961 |  |  | $ | 124,068 |  |  | $ | 353,150 |  |  | $ | 7,522 |  |  | $ | 961,251 |
Special Mention - RR 7 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard - RR 8 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 52,497 |  |  |  | 136,932 |  |  |  | 78,121 |  |  |  | 208,961 |  |  |  | 124,068 |  |  |  | 353,150 |  |  |  | 7,522 |  |  |  | 961,251 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other commercial loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 98,587 |  |  | $ | 158,850 |  |  | $ | 134,105 |  |  | $ | 5,319 |  |  | $ | 5,778 |  |  | $ | 56,311 |  |  | $ | 242,443 |  |  | $ | 701,393 |
Special Mention - RR 7 |  |  | — |  |  |  | 438 |  |  |  | 394 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 832 |
Substandard - RR 8 |  |  | 18 |  |  |  | 1,979 |  |  |  | 2,128 |  |  |  | 362 |  |  |  | 515 |  |  |  | 296 |  |  |  | 928 |  |  |  | 6,226 |
Doubtful - RR 9 |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |
Total |  |  | 98,605 |  |  |  | 161,271 |  |  |  | 136,627 |  |  |  | 5,681 |  |  |  | 6,293 |  |  |  | 56,607 |  |  |  | 243,371 |  |  |  | 708,455 |
Current period gross charge-offs |  |  | — |  |  |  | (54 | ) |  |  | — |  |  |  | (30 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (84 | )
Total commercial LHFI |  | $ | 1,274,489 |  |  | $ | 1,688,788 |  |  | $ | 1,743,007 |  |  | $ | 2,305,198 |  |  | $ | 935,108 |  |  | $ | 1,368,629 |  |  | $ | 1,015,454 |  |  | $ | 10,330,673 |
Total commercial LHFI gross charge-offs |  | $ | — |  |  | $ | (384 | ) |  | $ | (610 | ) |  | $ | (588 | ) |  | $ | (214 | ) |  | $ | (2,460 | ) |  | $ | (263 | ) |  | $ | (4,519 | )
|  | Term Loans by Origination Year |  |  |  |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
As of June 30, 2025 |  | Consumer LHFI |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 13,451 |  |  | $ | 26,547 |  |  | $ | 12,853 |  |  | $ | 3,117 |  |  | $ | 1,361 |  |  | $ | 2,109 |  |  | $ | — |  |  | $ | 59,438 |
Past due 30-89 days |  |  | — |  |  |  | — |  |  |  | 50 |  |  |  | — |  |  |  | — |  |  |  | 42 |  |  |  | — |  |  |  | 92 |
Past due 90 days or more |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual |  |  | — |  |  |  | — |  |  |  | 30 |  |  |  | 19 |  |  |  | 62 |  |  |  | 19 |  |  |  | — |  |  |  | 130 |
Total |  |  | 13,451 |  |  |  | 26,547 |  |  |  | 12,933 |  |  |  | 3,136 |  |  |  | 1,423 |  |  |  | 2,170 |  |  |  | — |  |  |  | 59,660 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other secured by 1-4 family residential properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 13,757 |  |  | $ | 21,103 |  |  | $ | 16,158 |  |  | $ | 5,892 |  |  | $ | 4,896 |  |  | $ | 10,517 |  |  | $ | 467,922 |  |  | $ | 540,245 |
Past due 30-89 days |  |  | — |  |  |  | 193 |  |  |  | 8 |  |  |  | 33 |  |  |  | 2 |  |  |  | 611 |  |  |  | 4,284 |  |  |  | 5,131 |
Past due 90 days or more |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 303 |  |  |  | 303 |
Nonaccrual |  |  | 22 |  |  |  | 39 |  |  |  | 11 |  |  |  | 62 |  |  |  | 91 |  |  |  | 715 |  |  |  | 5,989 |  |  |  | 6,929 |
Total |  |  | 13,779 |  |  |  | 21,335 |  |  |  | 16,177 |  |  |  | 5,987 |  |  |  | 4,989 |  |  |  | 11,843 |  |  |  | 478,498 |  |  |  | 552,608 |
Current period gross charge-offs |  |  | — |  |  |  | (5 | ) |  |  | — |  |  |  | (41 | ) |  |  | — |  |  |  | (2 | ) |  |  | (259 | ) |  |  | (307 | )
Other real estate secured: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 338 |  |  | $ | 223 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 84 |  |  | $ | — |  |  | $ | 645 |
Past due 30-89 days |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Past due 90 days or more |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 338 |  |  |  | 223 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 84 |  |  |  | — |  |  |  | 645 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 176,599 |  |  | $ | 280,549 |  |  | $ | 209,477 |  |  | $ | 764,662 |  |  | $ | 434,865 |  |  | $ | 431,490 |  |  | $ | — |  |  | $ | 2,297,642 |
Past due 30-89 days |  |  | 7 |  |  |  | 589 |  |  |  | 5,559 |  |  |  | 7,958 |  |  |  | 3,873 |  |  |  | 3,520 |  |  |  | — |  |  |  | 21,506 |
Past due 90 days or more |  |  | — |  |  |  | 7 |  |  |  | 992 |  |  |  | 1,074 |  |  |  | 650 |  |  |  | 458 |  |  |  | — |  |  |  | 3,181 |
Nonaccrual |  |  | — |  |  |  | 291 |  |  |  | 6,544 |  |  |  | 24,905 |  |  |  | 7,758 |  |  |  | 6,446 |  |  |  | — |  |  |  | 45,944 |
Total |  |  | 176,606 |  |  |  | 281,436 |  |  |  | 222,572 |  |  |  | 798,599 |  |  |  | 447,146 |  |  |  | 441,914 |  |  |  | — |  |  |  | 2,368,273 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | (297 | ) |  |  | (564 | ) |  |  | (53 | ) |  |  | (16 | ) |  |  | — |  |  |  | (930 | )
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 31,111 |  |  | $ | 37,860 |  |  | $ | 14,745 |  |  | $ | 10,059 |  |  | $ | 3,373 |  |  | $ | 512 |  |  | $ | 52,860 |  |  | $ | 150,520 |
Past due 30-89 days |  |  | 426 |  |  |  | 126 |  |  |  | 150 |  |  |  | 30 |  |  |  | — |  |  |  | — |  |  |  | 949 |  |  |  | 1,681 |
Past due 90 days or more |  |  | 48 |  |  |  | 29 |  |  |  | 14 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 277 |  |  |  | 370 |
Nonaccrual |  |  | — |  |  |  | 47 |  |  |  | 175 |  |  |  | 50 |  |  |  | 53 |  |  |  | 5 |  |  |  | 20 |  |  |  | 350 |
Total |  |  | 31,585 |  |  |  | 38,062 |  |  |  | 15,084 |  |  |  | 10,141 |  |  |  | 3,426 |  |  |  | 517 |  |  |  | 54,106 |  |  |  | 152,921 |
Current period gross charge-offs |  |  | (2,132 | ) |  |  | (310 | ) |  |  | (325 | ) |  |  | (93 | ) |  |  | (5 | ) |  |  | (26 | ) |  |  | (1,434 | ) |  |  | (4,325 | )
Total consumer LHFI |  | $ | 235,759 |  |  | $ | 367,603 |  |  | $ | 266,766 |  |  | $ | 817,863 |  |  | $ | 456,984 |  |  | $ | 456,528 |  |  | $ | 532,604 |  |  | $ | 3,134,107 |
Total consumer LHFI gross charge-offs |  | $ | (2,132 | ) |  | $ | (315 | ) |  | $ | (622 | ) |  | $ | (698 | ) |  | $ | (58 | ) |  | $ | (44 | ) |  | $ | (1,693 | ) |  | $ | (5,562 | )
Total LHFI |  | $ | 1,510,248 |  |  | $ | 2,056,391 |  |  | $ | 2,009,773 |  |  | $ | 3,123,061 |  |  | $ | 1,392,092 |  |  | $ | 1,825,157 |  |  | $ | 1,548,058 |  |  | $ | 13,464,780 |
Total current period gross charge-offs |  | $ | (2,132 | ) |  | $ | (699 | ) |  | $ | (1,232 | ) |  | $ | (1,286 | ) |  | $ | (272 | ) |  | $ | (2,504 | ) |  | $ | (1,956 | ) |  | $ | (10,081 | )
|  | Term Loans by Origination Year |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
As of December 31, 2024 |  | Commercial LHFI |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 324,775 |  |  | $ | 83,503 |  |  | $ | 33,580 |  |  | $ | 23,124 |  |  | $ | 8,145 |  |  | $ | 1,587 |  |  | $ | 42,469 |  |  | $ | 517,183 |
Special Mention - RR 7 |  |  | 2,165 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,002 |  |  |  | 4,167 |
Substandard - RR 8 |  |  | 17 |  |  |  | 62 |  |  |  | 226 |  |  |  | 983 |  |  |  | — |  |  |  | — |  |  |  | 176 |  |  |  | 1,464 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 326,957 |  |  |  | 83,565 |  |  |  | 33,806 |  |  |  | 24,107 |  |  |  | 8,145 |  |  |  | 1,587 |  |  |  | 44,647 |  |  |  | 522,814 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (24 | ) |  |  | — |  |  |  | (24 | )
Other secured by 1-4 family residential properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 31,013 |  |  | $ | 24,339 |  |  | $ | 22,693 |  |  | $ | 24,090 |  |  | $ | 11,635 |  |  | $ | 2,106 |  |  | $ | 7,742 |  |  | $ | 123,618 |
Special Mention - RR 7 |  |  | 27 |  |  |  | — |  |  |  | — |  |  |  | 32 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 59 |
Substandard - RR 8 |  |  | 125 |  |  |  | 375 |  |  |  | 555 |  |  |  | 328 |  |  |  | — |  |  |  | 191 |  |  |  | 27 |  |  |  | 1,601 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 31,165 |  |  |  | 24,714 |  |  |  | 23,248 |  |  |  | 24,450 |  |  |  | 11,635 |  |  |  | 2,297 |  |  |  | 7,769 |  |  |  | 125,278 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (16 | ) |  |  | — |  |  |  | (16 | )
Secured by nonfarm, nonresidential properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 542,747 |  |  | $ | 441,159 |  |  | $ | 880,511 |  |  | $ | 429,929 |  |  | $ | 464,504 |  |  | $ | 392,802 |  |  | $ | 127,812 |  |  | $ | 3,279,464 |
Special Mention - RR 7 |  |  | 16,266 |  |  |  | — |  |  |  | 52,093 |  |  |  | — |  |  |  | 17,978 |  |  |  | 3,335 |  |  |  | — |  |  |  | 89,672 |
Substandard - RR 8 |  |  | 10,007 |  |  |  | 7,321 |  |  |  | 41,686 |  |  |  | 37,915 |  |  |  | 25,601 |  |  |  | 41,598 |  |  |  | — |  |  |  | 164,128 |
Doubtful - RR 9 |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | — |  |  |  | 18 |
Total |  |  | 569,031 |  |  |  | 448,480 |  |  |  | 974,290 |  |  |  | 467,844 |  |  |  | 508,083 |  |  |  | 437,742 |  |  |  | 127,812 |  |  |  | 3,533,282 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,529 | ) |  |  | — |  |  |  | (16 | ) |  |  | — |  |  |  | (2,545 | )
Other real estate secured: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 152,314 |  |  | $ | 157,827 |  |  | $ | 726,814 |  |  | $ | 233,861 |  |  | $ | 137,786 |  |  | $ | 43,478 |  |  | $ | 7,434 |  |  | $ | 1,459,514 |
Special Mention - RR 7 |  |  | — |  |  |  | 7,450 |  |  |  | 15,481 |  |  |  | 41,019 |  |  |  | — |  |  |  | — |  |  |  | 263 |  |  |  | 64,213 |
Substandard - RR 8 |  |  | 14,610 |  |  |  | — |  |  |  | 26,685 |  |  |  | 42,636 |  |  |  | 252 |  |  |  | 25,419 |  |  |  | 244 |  |  |  | 109,846 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 166,924 |  |  |  | 165,277 |  |  |  | 768,980 |  |  |  | 317,516 |  |  |  | 138,038 |  |  |  | 68,897 |  |  |  | 7,941 |  |  |  | 1,633,573 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | (89 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (89 | )
|  | Term Loans by Origination Year |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
As of December 31, 2024 |  | Commercial LHFI |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 115,221 |  |  | $ | 410,064 |  |  | $ | 201,526 |  |  | $ | 20,647 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,400 |  |  | $ | 765,858 |
Special Mention - RR 7 |  |  | — |  |  |  | 2,250 |  |  |  | 24,557 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 26,807 |
Substandard - RR 8 |  |  | — |  |  |  | — |  |  |  | 17,820 |  |  |  | — |  |  |  | 19,419 |  |  |  | — |  |  |  | — |  |  |  | 37,239 |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 115,221 |  |  |  | 412,314 |  |  |  | 243,903 |  |  |  | 20,647 |  |  |  | 19,419 |  |  |  | — |  |  |  | 18,400 |  |  |  | 829,904 |
Current period gross charge-offs |  |  | — |  |  |  | (14 | ) |  |  | (2,493 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,507 | )
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 505,557 |  |  | $ | 365,724 |  |  | $ | 231,875 |  |  | $ | 98,318 |  |  | $ | 45,551 |  |  | $ | 27,456 |  |  | $ | 462,740 |  |  | $ | 1,737,221 |
Special Mention - RR 7 |  |  | — |  |  |  | 564 |  |  |  | 14,066 |  |  |  | 15 |  |  |  | — |  |  |  | — |  |  |  | 13,836 |  |  |  | 28,481 |
Substandard - RR 8 |  |  | 7,204 |  |  |  | 1,113 |  |  |  | 39,698 |  |  |  | 5,091 |  |  |  | 891 |  |  |  | 12,905 |  |  |  | 7,598 |  |  |  | 74,500 |
Doubtful - RR 9 |  |  | 227 |  |  |  | — |  |  |  | 35 |  |  |  | 145 |  |  |  | 1 |  |  |  | 2 |  |  |  | 110 |  |  |  | 520 |
Total |  |  | 512,988 |  |  |  | 367,401 |  |  |  | 285,674 |  |  |  | 103,569 |  |  |  | 46,443 |  |  |  | 40,363 |  |  |  | 484,284 |  |  |  | 1,840,722 |
Current period gross charge-offs |  |  | (341 | ) |  |  | (1,211 | ) |  |  | (640 | ) |  |  | (3,251 | ) |  |  | (158 | ) |  |  | (3,132 | ) |  |  | (315 | ) |  |  | (9,048 | )
State and other political subdivision loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 156,130 |  |  | $ | 82,532 |  |  | $ | 212,528 |  |  | $ | 135,251 |  |  | $ | 78,543 |  |  | $ | 302,709 |  |  | $ | 2,143 |  |  | $ | 969,836 |
Special Mention - RR 7 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard - RR 8 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful - RR 9 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 156,130 |  |  |  | 82,532 |  |  |  | 212,528 |  |  |  | 135,251 |  |  |  | 78,543 |  |  |  | 302,709 |  |  |  | 2,143 |  |  |  | 969,836 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other commercial loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass - RR 1 through RR 6 |  | $ | 157,619 |  |  | $ | 148,099 |  |  | $ | 7,371 |  |  | $ | 9,800 |  |  | $ | 15,606 |  |  | $ | 45,227 |  |  | $ | 203,345 |  |  | $ | 587,067 |
Special Mention - RR 7 |  |  | — |  |  |  | — |  |  |  | 116 |  |  |  | 48 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 164 |
Substandard - RR 8 |  |  | 55 |  |  |  | 682 |  |  |  | 116 |  |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | 901 |  |  |  | 1,766 |
Doubtful - RR 9 |  |  | 9 |  |  |  | — |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15 |
Total |  |  | 157,683 |  |  |  | 148,781 |  |  |  | 7,609 |  |  |  | 9,860 |  |  |  | 15,606 |  |  |  | 45,227 |  |  |  | 204,246 |  |  |  | 589,012 |
Current period gross charge-offs |  |  | (25 | ) |  |  | — |  |  |  | (38 | ) |  |  | — |  |  |  | — |  |  |  | (32 | ) |  |  | — |  |  |  | (95 | )
Total commercial LHFI |  | $ | 2,036,099 |  |  | $ | 1,733,064 |  |  | $ | 2,550,038 |  |  | $ | 1,103,244 |  |  | $ | 825,912 |  |  | $ | 898,822 |  |  | $ | 897,242 |  |  | $ | 10,044,421 |
Total commercial LHFI gross charge-offs |  | $ | (366 | ) |  | $ | (1,225 | ) |  | $ | (3,260 | ) |  | $ | (5,780 | ) |  | $ | (158 | ) |  | $ | (3,220 | ) |  | $ | (315 | ) |  | $ | (14,324 | )
|  | Term Loans by Origination Year |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
As of December 31, 2024 |  | Consumer LHFI |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 31,478 |  |  | $ | 22,752 |  |  | $ | 4,302 |  |  | $ | 2,762 |  |  | $ | 930 |  |  | $ | 1,804 |  |  | $ | — |  |  | $ | 64,028 |
Past due 30-89 days |  |  | — |  |  |  | 47 |  |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | 106 |  |  |  | — |  |  |  | 164 |
Past due 90 days or more |  |  | 91 |  |  |  | — |  |  |  | — |  |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 159 |
Nonaccrual |  |  | — |  |  |  | 31 |  |  |  | 21 |  |  |  | 4 |  |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | 79 |
Total |  |  | 31,569 |  |  |  | 22,830 |  |  |  | 4,334 |  |  |  | 2,834 |  |  |  | 930 |  |  |  | 1,933 |  |  |  | — |  |  |  | 64,430 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (8 | ) |  |  | — |  |  |  | (8 | )
Other secured by 1-4 family residential properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 24,756 |  |  | $ | 17,202 |  |  | $ | 6,733 |  |  | $ | 5,260 |  |  | $ | 3,651 |  |  | $ | 9,563 |  |  | $ | 445,598 |  |  | $ | 512,763 |
Past due 30-89 days |  |  | 569 |  |  |  | 38 |  |  |  | 67 |  |  |  | 66 |  |  |  | 3 |  |  |  | 579 |  |  |  | 4,524 |  |  |  | 5,846 |
Past due 90 days or more |  |  | 21 |  |  |  | — |  |  |  | 8 |  |  |  | — |  |  |  | — |  |  |  | 17 |  |  |  | 219 |  |  |  | 265 |
Nonaccrual |  |  | 71 |  |  |  | 5 |  |  |  | 69 |  |  |  | 44 |  |  |  | 103 |  |  |  | 593 |  |  |  | 5,513 |  |  |  | 6,398 |
Total |  |  | 25,417 |  |  |  | 17,245 |  |  |  | 6,877 |  |  |  | 5,370 |  |  |  | 3,757 |  |  |  | 10,752 |  |  |  | 455,854 |  |  |  | 525,272 |
Current period gross charge-offs |  |  | (29 | ) |  |  | (87 | ) |  |  | (233 | ) |  |  | (40 | ) |  |  | (31 | ) |  |  | (76 | ) |  |  | — |  |  |  | (496 | )
Other real estate secured: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 161 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 68 |  |  | $ | 28 |  |  | $ | — |  |  | $ | 257 |
Past due 30-89 days |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Past due 90 days or more |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 161 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 68 |  |  |  | 28 |  |  |  | — |  |  |  | 257 |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 274,500 |  |  | $ | 224,266 |  |  | $ | 808,527 |  |  | $ | 459,191 |  |  | $ | 161,856 |  |  | $ | 314,906 |  |  | $ | — |  |  | $ | 2,243,246 |
Past due 30-89 days |  |  | 169 |  |  |  | 4,405 |  |  |  | 9,883 |  |  |  | 4,082 |  |  |  | 814 |  |  |  | 1,558 |  |  |  | — |  |  |  | 20,911 |
Past due 90 days or more |  |  | 4 |  |  |  | 1,263 |  |  |  | 1,098 |  |  |  | 461 |  |  |  | 170 |  |  |  | 257 |  |  |  | — |  |  |  | 3,253 |
Nonaccrual |  |  | 568 |  |  |  | 3,744 |  |  |  | 17,306 |  |  |  | 5,009 |  |  |  | 1,394 |  |  |  | 3,562 |  |  |  | — |  |  |  | 31,583 |
Total |  |  | 275,241 |  |  |  | 233,678 |  |  |  | 836,814 |  |  |  | 468,743 |  |  |  | 164,234 |  |  |  | 320,283 |  |  |  | — |  |  |  | 2,298,993 |
Current period gross charge-offs |  |  | — |  |  |  | (228 | ) |  |  | (9,910 | ) |  |  | (143 | ) |  |  | (6 | ) |  |  | (17 | ) |  |  | — |  |  |  | (10,304 | )
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 55,908 |  |  | $ | 22,226 |  |  | $ | 12,922 |  |  | $ | 4,654 |  |  | $ | 1,188 |  |  | $ | 105 |  |  | $ | 56,423 |  |  | $ | 153,426 |
Past due 30-89 days |  |  | 844 |  |  |  | 396 |  |  |  | 323 |  |  |  | 4 |  |  |  | — |  |  |  | 13 |  |  |  | 913 |  |  |  | 2,493 |
Past due 90 days or more |  |  | 38 |  |  |  | 67 |  |  |  | 17 |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 288 |  |  |  | 414 |
Nonaccrual |  |  | 25 |  |  |  | 49 |  |  |  | 63 |  |  |  | 61 |  |  |  | 19 |  |  |  | — |  |  |  | 19 |  |  |  | 236 |
Total |  |  | 56,815 |  |  |  | 22,738 |  |  |  | 13,325 |  |  |  | 4,723 |  |  |  | 1,207 |  |  |  | 118 |  |  |  | 57,643 |  |  |  | 156,569 |
Current period gross charge-offs |  |  | (5,929 | ) |  |  | (785 | ) |  |  | (470 | ) |  |  | (131 | ) |  |  | (100 | ) |  |  | (337 | ) |  |  | (2,065 | ) |  |  | (9,817 | )
Total consumer LHFI |  | $ | 389,203 |  |  | $ | 296,491 |  |  | $ | 861,350 |  |  | $ | 481,670 |  |  | $ | 170,196 |  |  | $ | 333,114 |  |  | $ | 513,497 |  |  | $ | 3,045,521 |
Total consumer LHFI gross charge-offs |  | $ | (5,958 | ) |  | $ | (1,100 | ) |  | $ | (10,613 | ) |  | $ | (314 | ) |  | $ | (137 | ) |  | $ | (438 | ) |  | $ | (2,065 | ) |  | $ | (20,625 | )
Total LHFI |  | $ | 2,425,302 |  |  | $ | 2,029,555 |  |  | $ | 3,411,388 |  |  | $ | 1,584,914 |  |  | $ | 996,108 |  |  | $ | 1,231,936 |  |  | $ | 1,410,739 |  |  | $ | 13,089,942 |
Total current period gross charge-offs |  | $ | (6,324 | ) |  | $ | (2,325 | ) |  | $ | (13,873 | ) |  | $ | (6,094 | ) |  | $ | (295 | ) |  | $ | (3,658 | ) |  | $ | (2,380 | ) |  | $ | (34,949 | )
Past Due LHFS LHFS past due 90 days or more totaled $75.6 million and $71.3 million at June 30, 2025 and December 31, 2024, respectively. LHFS past due 90 days or more are serviced loans eligible for repurchase, which are fully guaranteed by the Government National Mortgage Association (GNMA). GNMA optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100% of the remaining principal balance of the loan. This buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When Trustmark is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans held for sale, regardless of whether Trustmark intends to exercise the buy-back option. These loans are reported as held for sale with the offsetting liability being reported as short-term borrowings. Trustmark did not exercise its buy-back option on any delinquent loans serviced for GNMA during the first six months of 2025 or 2024. ACL on LHFI Trustmark’s ACL methodology for LHFI is based upon guidance within the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 326-20, “Financial Instruments-Credit Losses-Measured at Amortized Cost,” as well as applicable regulatory guidance. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the LHFI portfolio is continuously monitored by Management and is reflected within the ACL for LHFI. The ACL is an estimate of expected losses inherent within Trustmark’s existing LHFI portfolio. The ACL for LHFI is adjusted through the PCL, LHFI and reduced by the charge off of loan amounts, net of recoveries. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan product types and similar risk characteristics. The loans secured by real estate and other loans secured by real estate portfolio segments include loans for both commercial and residential properties. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loans portfolio segment includes loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory and term financing for equipment and fixed asset purchases that are secured by those assets. Trustmark’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information and evaluation of underlying collateral to support the credit. The consumer loans portfolio segment is comprised of loans that are centrally underwritten based on the borrower's credit bureau score as well as an evaluation of the borrower’s repayment capacity, credit, and collateral. Property appraisals are obtained to assist in evaluating collateral. Loan-to-value and debt-to-income ratios, loan amount, and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends such as conditions that negatively affect housing prices and demand and levels of unemployment. The state and other political subdivision loans and the other commercial loans and leases portfolio segments primarily consist of loans to non-depository financial institutions, such as mortgage companies, finance companies and other financial intermediaries, loans to state and political subdivisions, and loans to non-profit and charitable organizations. These loans are underwritten based on the specific nature or purpose of the loan and underlying collateral with special consideration given to the specific source of repayment for the loan. The lease segment primarily consists of commercial equipment finance leases. Trustmark’s credit underwriting process for equipment finance leases includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information and evaluation of underlying collateral to support the credit. During the first quarter of 2025, as part of Trustmark's ongoing model monitoring procedures, the annual loss driver analysis was performed. The analysis resulted in changes in the loss drivers for four discounted cash-flow models. These changes were a result of incorporating data through 2024 which led to more intuitive loss drivers. All models were validated by a third party before implementation. During the first quarter of 2024, as part of Trustmark's ongoing model monitoring procedures, the annual loss driver analysis was performed. The analysis resulted in changes in the loss drivers for all discounted cash-flow models along with changes in the loss drivers for the equipment and finance loans and leases model. These changes were a result of updating Trustmark's peer group and incorporating data through 2022 which led to more intuitive loss drivers. All models were validated by a third party before implementation. The following table provides a description of each of Trustmark’s portfolio segments, loan classes, loan pools and the ACL methodology and loss drivers at June 30, 2025 and December 31, 2024:
Portfolio Segment |  | Loan Class |  | Loan Pool |  | Methodology |  | Loss Drivers
Loans secured by real estate |  | Construction, land development and other land |  | 1-4 family residential construction |  | DCF |  | BBB 7-10 US CBI (1), National Unemployment
|  |  |  | Lots and development |  | DCF |  | National HPI, National Unemployment
|  |  |  | Unimproved land |  | DCF |  | National HPI, National Unemployment
|  |  |  | All other consumer |  | DCF |  | National HPI, National Unemployment
|  | Other secured by 1-4 family residential properties |  | Consumer 1-4 family - 1st liens |  | DCF |  | National HPI, Southern Unemployment (2)
|  |  |  | All other consumer |  | DCF |  | National HPI, National Unemployment
|  |  |  | Nonresidential owner-occupied |  | DCF |  | Southern Unemployment, National CRE Price Index
|  | Secured by nonfarm, nonresidential properties |  | Nonowner-occupied - hotel/motel |  | DCF |  | National CRE Price Index, Southern Unemployment
|  |  |  | Nonowner-occupied - office |  | DCF |  | National CRE Price Index, Southern Unemployment
|  |  |  | Nonowner-occupied- Retail |  | DCF |  | National CRE Price Index, Southern Unemployment
|  |  |  | Nonowner-occupied - senior living/nursing homes |  | DCF |  | National CRE Price Index, Southern Unemployment
|  |  |  | Nonowner-occupied - all other |  | DCF |  | National CRE Price Index, Southern Unemployment
|  |  |  | Nonresidential owner-occupied |  | DCF |  | Southern Unemployment, National CRE Price Index
|  | Other real estate secured |  | Nonresidential nonowner -occupied - apartments |  | DCF |  | National CRE Price Index, Southern Unemployment
|  |  |  | Nonresidential owner-occupied |  | DCF |  | Southern Unemployment, National CRE Price Index
|  |  |  | Nonowner-occupied - all other |  | DCF |  | National CRE Price Index, Southern Unemployment
Other loans secured by real estate |  | Other construction |  | Other construction |  | DCF |  | National CRE Price Index, National Unemployment, BBB 7-10 US CBI
|  | Secured by 1-4 family residential properties |  | Trustmark mortgage |  | WARM |  | Southern Unemployment
Commercial and industrial loans |  | Commercial and industrial loans |  | Commercial and industrial - non-working capital |  | DCF |  | Trustmark historical data
|  |  |  | Commercial and industrial - working capital |  | DCF |  | Trustmark historical data
|  |  |  | Equipment finance loans |  | WARM |  | Southern Unemployment, National GDP
|  |  |  | Credit cards |  | WARM |  | Trustmark call report data
Consumer loans |  | Consumer loans |  | Credit cards |  | WARM |  | Trustmark call report data
|  |  |  | Overdrafts |  | Loss Rate |  | Trustmark historical data
|  |  |  | All other consumer |  | DCF |  | National HPI, National Unemployment
State and other political subdivision loans |  | State and other political subdivision loans |  | Obligations of state and political subdivisions |  | DCF |  | Moody's Bond Default Study
Other commercial loans and leases |  | Other commercial loans and leases |  | Other loans |  | DCF |  | BBB 7-10 US CBI, Southern Unemployment
|  |  |  | Commercial and industrial - non-working capital |  | DCF |  | Trustmark historical data
|  |  |  | Commercial and industrial - working capital |  | DCF |  | Trustmark historical data
|  |  |  | Equipment finance leases |  | WARM |  | Southern Unemployment, National GDP
(1) Loss driver was National HPI at December 31, 2024. (2) Loss driver was National Unemployement at December 31, 2024. In general, Trustmark utilizes a DCF method to estimate the quantitative portion of the ACL for loan pools. The DCF model consists of two key components, a loss driver analysis (LDA) and a cash flow analysis. For loan pools utilizing the DCF methodology, multiple assumptions are in place, depending on the loan pool. A reasonable and supportable forecast is utilized for each loan pool by developing a LDA for each loan class. The LDA uses charge off data from Federal Financial Institutions Examination Council (FFIEC) reports to construct a periodic default rate (PDR). The PDR is decomposed into a PD. Regressions are run using the data for various macroeconomic variables in order to determine which ones correlate to Trustmark’s losses. These variables are then incorporated into the application to calculate a quarterly PD using a third-party baseline forecast. In addition to the PD, a LGD is derived using a method referred to as Frye-Jacobs. The Frye-Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the levels of PD forecasts. This model approach is applicable to all pools within the construction, land development and other land, other secured by 1-4 family residential properties, secured by nonfarm, nonresidential properties and other real estate secured loan classes as well as consumer loans and other commercial loans. An alternative LDA is utilized to support the PD and LGD assumptions necessary to apply a DCF methodology to the other construction pool. Fundamentally, this approach utilizes publicly reported default balances and leverages a generalized linear model (GLM) framework to estimate PD. Taken together, these differences allow for results to be scaled to be specific and directly applicable to the other construction segment. LGD is assumed to be a through-the-cycle constant based on the actual performance of Trustmark’s other construction segment. These assumptions are then input into the DCF model and used in conjunction with prepayment data to calculate the cash flows at the individual loan level. Management believes this methodology is commensurate with the level of risk in the pool. For the commercial and industrial loans related pools, Trustmark uses its own PD and LGD data, instead of the macroeconomic variables and the Frye-Jacobs method described above, to calculate the PD and LGD as there were no defensible macroeconomic variables that correlated to Trustmark’s losses. Trustmark utilizes a third-party Bond Default Study to derive the PD and LGD for the obligations of state and political subdivisions pool. Due to the lack of losses within this pool, no defensible macroeconomic factors were identified to correlate. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. An alternate method of estimating the ACL is used for certain loan pools due to specific characteristics of these loans. For the non-DCF pools, specifically, those using the weighted average remaining maturity (WARM) method, the remaining life is incorporated into the ACL quantitative calculation. During the second quarter of 2024, Trustmark executed a sale on a portfolio of 1-4 family mortgage loans that were at least three payments delinquent and/or nonaccrual at the time of selection. As a result of this sale, a credit mark was established for a sub-pool of the loans in the sale. Due to the lack of historical experience and the use of industry data for this sub-pool, management elected to use the credit mark for reserving purposes on a go forward basis for this sub-pool that meets the same credit criteria of being three payments delinquent and/or nonaccrual. All loans of the sub-pool that meet the above credit criteria will be removed from the 1-4 family residential properties pool and placed into a separate pool with the credit mark reserve applied to the total balance. Trustmark determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the LHFI portfolio extend beyond this forecast period, Trustmark uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. The econometric models currently in production reflect segment or pool level sensitivities of PD to changes in macroeconomic variables. By measuring the relationship between defaults and changes in the economy, the quantitative reserve incorporates reasonable and supportable forecasts of future conditions that will affect the value of Trustmark’s assets, as required by FASB ASC Topic 326. Under stable forecasts, these linear regressions will reasonably predict a pool’s PD. However, upon the occurrence of events that generate significant economic instability (such as the COVID-19 pandemic), the macroeconomic variables used for reasonable and supportable forecasting can change rapidly. At the macroeconomic levels experienced during the COVID-19 pandemic, it was not clear that the models in production at that time would produce reasonably representative results since the models at that time were originally estimated using data beginning in 2004 through 2019. During this period, a traditional, albeit severe, economic recession occurred. Thus, econometric models are sensitive to similar future levels of PD. In order to prevent the econometric models from extrapolating beyond reasonable boundaries of their input variables, Trustmark chose to establish an upper and lower limit process when applying the periodic forecasts. In this way, Management will not rely upon unobserved and untested relationships in the setting of the quantitative reserve. This approach applies to all input variables, including: Southern Unemployment, National Unemployment, National Gross Domestic Product (GDP), National Home Price Index (HPI), National Commercial Real Estate (CRE) Price Index and the BBB 7-10 Year US Corporate Bond Index (CBI). The upper and lower limits are based on the distribution of the macroeconomic variable by selecting extreme percentiles at the upper and lower limits of the distribution, the 1 st and 99 th percentiles, respectively. These upper and lower limits are then used to calculate the PD for the forecast time period in which the forecasted values are outside of the upper and lower limit range. Additionally, when periods have a PD or LGD at or near zero as a result of the improving macroeconomic forecasts, Management implemented PD and LGD floors to account for the risk associated with each portfolio. The PD and LGD floors are based on Trustmark’s historical loss experience and applied at a portfolio level. Qualitative factors used in the ACL methodology include the following: • Lending policies and procedures • Economic conditions and concentrations of credit • Nature and volume of the portfolio • Performance trends • External factors While all these factors are incorporated into the overall methodology, only four are currently considered active at June 30, 2025: (i) economic conditions and concentrations of credit, (ii) nature and volume of the portfolio, (iii) performance trends and (iv) external factors. Two of Trustmark’s largest loan classes are the loans secured by nonfarm, nonresidential properties and the loans secured by other real estate. Trustmark elected to create a qualitative factor specifically for these loan classes which addresses changes in the economic conditions of metropolitan areas and applies additional pool level reserves. This qualitative factor is based on third-party market data and forecast trends and is updated quarterly as information is available, by market and by loan pool. Trustmark's current quantitative methodologies do not completely incorporate changes in credit quality. As a result, Trustmark utilizes the performance trends qualitative factor. This factor is based on migration analyses, that allocates additional ACL to non-pass/delinquent loans within each pool. In this way, Management believes the ACL will directly reflect changes in risk, based on the performance of the loans within a pool, whether declining or improving. The performance trends qualitative factor is estimated by properly segmenting loan pools into risk levels by risk rating for commercial credits and delinquency status for consumer credits. A migration analysis is then performed quarterly using a third-party software and the results for each risk level are compiled to calculate the historical PD average for each loan portfolio based on risk levels. This average historical PD rate is updated annually. For the mortgage portfolio, Trustmark uses an internal report to incorporate a roll rate method for the calculation of the PD rate. In addition to the PD rate for each portfolio, Management incorporates the quantitative rate and the k value derived from the Frye-Jacobs method to calculate a loss estimate that includes both PD and LGD. The quantitative rate is used to eliminate any additional reserve that the quantitative reserve already includes. Finally, the loss estimate rate is then applied to the total balances for each risk level for each portfolio to calculate a qualitative reserve. Management elected to activate the nature and volume of the portfolio qualitative factor for a sub-pool of the secured by 1-4 family residential properties due to its significant size as well as the underlying nature being different. The nature and volume of the portfolio qualitative factor utilizes a WARM methodology that uses industry data for the assumptions to support the qualitative adjustment. The industry data is used to compile a PD based on credit score ranges along with using the industry data to compile an LGD. The sub-pool of credits is then aggregated into the appropriate credit score bands in which a weighted average loss rate is calculated based on the PD and LGD for each credit score range. This weighted average loss rate is then applied to the expected balance for the sub-segment of credits. This total is then used as the qualitative reserve adjustment. During the first quarter of 2025, Management elected to utilize Trustmark’s historical data to develop a PD based on the credit score ranges initially established. Additionally, Management elected to use the same LGD value from the mortgage sale that occurred in the second quarter of 2024 along with the same weighted average life assumption utilized to determine the credit mark on this portfolio. The external factors qualitative factor is Management’s best judgment on the loan or pool level impact of all factors that affect the portfolio that are not accounted for using any other part of the ACL methodology (e.g., natural disasters, changes in legislation, impacts due to technology and pandemics). During the third quarter of 2024, Trustmark activated the External Factor – Credit Quality Review qualitative factor. This qualitative factor ensures reserve adequacy for collectively evaluated commercial loans that may not have been identified and downgraded timely for various reasons. This qualitative factor population is all commercial loans risk rated 1-5. These loans are then applied to the historical average of the Watch/Special Mention rated percentage. Then the balance of these loans are applied additional reserves based on the same reserve rates utilized in the performance trends qualitative factor for Watch/Special Mention rated loans. Then the Watch/Special Mention population is applied the historical Substandard rated percentage and then subsequently applied the Substandard reserve rate utilized in the performance trends qualitative factor as well. The historical Watch/Special Mention and Substandard rated percentage averages captures the weighted average life of the commercial loan portfolio. Thus, Trustmark will allocate additional reserves to capture the proportion of potential Watch/Special Mention and Substandard rated credits that may not have been categorized as such at any given point in time through the life of the commercial loan portfolio. The following tables disaggregate the ACL and the amortized cost basis of the loans by the measurement methodology used at June 30, 2025 and December 31, 2024 ($ in thousands):
|  | June 30, 2025 |
|  | ACL |  |  | LHFI |
|  | Individually Evaluated for Credit Loss |  |  | Collectively Evaluated for Credit Loss |  |  | Total |  |  | Individually Evaluated for Credit Loss |  |  | Collectively Evaluated for Credit Loss |  |  | Total |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | — |  |  | $ | 7,349 |  |  | $ | 7,349 |  |  | $ | — |  |  |  | 560,913 |  |  | $ | 560,913 |
Other secured by 1-4 family residential properties |  |  | — |  |  |  | 12,665 |  |  |  | 12,665 |  |  |  | 481 |  |  |  | 688,608 |  |  |  | 689,089 |
Secured by nonfarm, nonresidential properties |  |  | 141 |  |  |  | 34,876 |  |  |  | 35,017 |  |  |  | 426 |  |  |  | 3,478,506 |  |  |  | 3,478,932 |
Other real estate secured |  |  | — |  |  |  | 23,505 |  |  |  | 23,505 |  |  |  | 14,978 |  |  |  | 1,903,363 |  |  |  | 1,918,341 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | — |  |  |  | 8,142 |  |  |  | 8,142 |  |  |  | — |  |  |  | 794,310 |  |  |  | 794,310 |
Secured by 1-4 family residential properties |  |  | — |  |  |  | 38,985 |  |  |  | 38,985 |  |  |  | 1,503 |  |  |  | 2,366,770 |  |  |  | 2,368,273 |
Commercial and industrial loans |  |  | 12,685 |  |  |  | 15,780 |  |  |  | 28,465 |  |  |  | 21,348 |  |  |  | 1,810,947 |  |  |  | 1,832,295 |
Consumer loans |  |  | — |  |  |  | 5,111 |  |  |  | 5,111 |  |  |  | — |  |  |  | 152,921 |  |  |  | 152,921 |
State and other political subdivision loans |  |  | — |  |  |  | 1,547 |  |  |  | 1,547 |  |  |  | — |  |  |  | 961,251 |  |  |  | 961,251 |
Other commercial loans and leases |  |  | 764 |  |  |  | 6,687 |  |  |  | 7,451 |  |  |  | 764 |  |  |  | 707,691 |  |  |  | 708,455 |
Total |  | $ | 13,590 |  |  | $ | 154,647 |  |  | $ | 168,237 |  |  | $ | 39,500 |  |  | $ | 13,425,280 |  |  | $ | 13,464,780 |
|  | December 31, 2024 |
|  | ACL |  |  | LHFI |
|  | Individually Evaluated for Credit Loss |  |  | Collectively Evaluated for Credit Loss |  |  | Total |  |  | Individually Evaluated for Credit Loss |  |  | Collectively Evaluated for Credit Loss |  |  | Total |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | — |  |  | $ | 6,452 |  |  | $ | 6,452 |  |  | $ | — |  |  | $ | 587,244 |  |  | $ | 587,244 |
Other secured by 1-4 family residential properties |  |  | — |  |  |  | 11,347 |  |  |  | 11,347 |  |  |  | 521 |  |  |  | 650,029 |  |  |  | 650,550 |
Secured by nonfarm, nonresidential properties |  |  | 2,251 |  |  |  | 35,645 |  |  |  | 37,896 |  |  |  | 9,783 |  |  |  | 3,523,499 |  |  |  | 3,533,282 |
Other real estate secured |  |  | — |  |  |  | 19,491 |  |  |  | 19,491 |  |  |  | 1,904 |  |  |  | 1,631,926 |  |  |  | 1,633,830 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | — |  |  |  | 13,297 |  |  |  | 13,297 |  |  |  | — |  |  |  | 829,904 |  |  |  | 829,904 |
Secured by 1-4 family residential properties |  |  | — |  |  |  | 32,129 |  |  |  | 32,129 |  |  |  | 1,533 |  |  |  | 2,297,460 |  |  |  | 2,298,993 |
Commercial and industrial loans |  |  | 10,518 |  |  |  | 16,502 |  |  |  | 27,020 |  |  |  | 22,503 |  |  |  | 1,818,219 |  |  |  | 1,840,722 |
Consumer loans |  |  | — |  |  |  | 5,141 |  |  |  | 5,141 |  |  |  | — |  |  |  | 156,569 |  |  |  | 156,569 |
State and other political subdivision loans |  |  | — |  |  |  | 1,250 |  |  |  | 1,250 |  |  |  | — |  |  |  | 969,836 |  |  |  | 969,836 |
Other commercial loans and leases |  |  | 892 |  |  |  | 5,355 |  |  |  | 6,247 |  |  |  | 896 |  |  |  | 588,116 |  |  |  | 589,012 |
Total |  | $ | 13,661 |  |  | $ | 146,609 |  |  | $ | 160,270 |  |  | $ | 37,140 |  |  | $ | 13,052,802 |  |  | $ | 13,089,942 |
Changes in the ACL, LHFI were as follows for the periods presented ($ in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Balance at beginning of period |  | $ | 167,010 |  |  | $ | 142,998 |  |  | $ | 160,270 |  |  | $ | 139,367 |
Loans charged-off, sale of 1-4 family mortgage loans |  |  | — |  |  |  | (8,633 | ) |  |  | — |  |  |  | (8,633 | )
Loans charged-off |  |  | (6,380 | ) |  |  | (5,120 | ) |  |  | (10,081 | ) |  |  | (11,444 | )
Recoveries |  |  | 2,261 |  |  |  | 2,111 |  |  |  | 4,577 |  |  |  | 4,358 |
Net (charge-offs) recoveries |  |  | (4,119 | ) |  |  | (11,642 | ) |  |  | (5,504 | ) |  |  | (15,719 | )
PCL, LHFI |  |  | 5,346 |  |  |  | 14,696 |  |  |  | 13,471 |  |  |  | 22,404 |
PCL, LHFI sale of 1-4 family mortgage loans |  |  | — |  |  |  | 8,633 |  |  |  | — |  |  |  | 8,633 |
Balance at end of period |  | $ | 168,237 |  |  | $ | 154,685 |  |  | $ | 168,237 |  |  | $ | 154,685 |
The following tables detail changes in the ACL, LHFI by loan class for the periods presented ($ in thousands):
|  | Three Months Ended June 30, 2025 |
|  | Balance at Beginning of Period |  |  | Charge-offs |  |  | Recoveries |  |  | PCL |  |  | Balance at End of Period |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | 6,982 |  |  | $ | — |  |  | $ | 194 |  |  | $ | 173 |  |  | $ | 7,349 |
Other secured by 1-4 family residential properties |  |  | 12,476 |  |  |  | (139 | ) |  |  | 123 |  |  |  | 205 |  |  |  | 12,665 |
Secured by nonfarm, nonresidential properties |  |  | 39,973 |  |  |  | (2,005 | ) |  |  | — |  |  |  | (2,951 | ) |  |  | 35,017 |
Other real estate secured |  |  | 23,348 |  |  |  | — |  |  |  | — |  |  |  | 157 |  |  |  | 23,505 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | 9,860 |  |  |  | — |  |  |  | 1 |  |  |  | (1,719 | ) |  |  | 8,142 |
Secured by 1-4 family residential properties |  |  | 35,602 |  |  |  | (550 | ) |  |  | 160 |  |  |  | 3,773 |  |  |  | 38,985 |
Commercial and industrial loans |  |  | 25,396 |  |  |  | (1,549 | ) |  |  | 264 |  |  |  | 4,354 |  |  |  | 28,465 |
Consumer loans |  |  | 5,238 |  |  |  | (2,121 | ) |  |  | 1,458 |  |  |  | 536 |  |  |  | 5,111 |
State and other political subdivision loans |  |  | 1,605 |  |  |  | — |  |  |  | — |  |  |  | (58 | ) |  |  | 1,547 |
Other commercial loans and leases |  |  | 6,530 |  |  |  | (16 | ) |  |  | 61 |  |  |  | 876 |  |  |  | 7,451 |
Total |  | $ | 167,010 |  |  | $ | (6,380 | ) |  | $ | 2,261 |  |  | $ | 5,346 |  |  | $ | 168,237 |
The PCL, LHFI for the three months ended June 30, 2025 was primarily due to loan growth and changes in the macroeconomic forecast. The negative PCL, LHFI for the secured by nonfarm, nonresidential properties and other construction loans portfolios for the three months ended June 30, 2025 was primarily due to positive credit migration.
|  | Three Months Ended June 30, 2024 |
|  | Balance at Beginning of Period |  |  | Charge-offs |  |  | Recoveries |  |  | PCL |  |  | Balance at End of Period |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | 5,743 |  |  | $ | — |  |  | $ | 7 |  |  | $ | (649 | ) |  | $ | 5,101 |
Other secured by 1-4 family residential properties |  |  | 10,554 |  |  |  | (104 | ) |  |  | 63 |  |  |  | (140 | ) |  |  | 10,373 |
Secured by nonfarm, nonresidential properties |  |  | 33,292 |  |  |  | — |  |  |  | 17 |  |  |  | 7,827 |  |  |  | 41,136 |
Other real estate secured |  |  | 9,251 |  |  |  | — |  |  |  | — |  |  |  | 2,786 |  |  |  | 12,037 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | 12,065 |  |  |  | (2,494 | ) |  |  | 255 |  |  |  | 4,071 |  |  |  | 13,897 |
Secured by 1-4 family residential properties |  |  | 31,946 |  |  |  | (8,780 | ) |  |  | 27 |  |  |  | 7,454 |  |  |  | 30,647 |
Commercial and industrial loans |  |  | 27,930 |  |  |  | (191 | ) |  |  | 272 |  |  |  | 724 |  |  |  | 28,735 |
Consumer loans |  |  | 5,523 |  |  |  | (2,184 | ) |  |  | 1,447 |  |  |  | 859 |  |  |  | 5,645 |
State and other political subdivision loans |  |  | 638 |  |  |  | — |  |  |  | — |  |  |  | (13 | ) |  |  | 625 |
Other commercial loans and leases |  |  | 6,056 |  |  |  | — |  |  |  | 23 |  |  |  | 410 |  |  |  | 6,489 |
Total |  | $ | 142,998 |  |  | $ | (13,753 | ) |  | $ | 2,111 |  |  | $ | 23,329 |  |  | $ | 154,685 |
The PCL, LHFI for the secured by nonfarm, nonresidential properties, the secured by 1-4 family residential properties, other construction, and other real estate secured portfolios for the three months ended June 30, 2024 was primarily due to net adjustments to the qualitative factors due to credit migration coupled with loan growth. The negative PCL, LHFI for the construction, land development and other land and the other secured by 1-4 family residential properties portfolios for the three months ended June 30, 2024 was primarily due to changes in the macroeconomic forecast.
|  | Six Months Ended June 30, 2025 |
|  | Balance at Beginning of Period |  |  | Charge-offs |  |  | Recoveries |  |  | PCL |  |  | Balance at End of Period |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | 6,452 |  |  | $ | — |  |  | $ | 196 |  |  | $ | 701 |  |  | $ | 7,349 |
Other secured by 1-4 family residential properties |  |  | 11,347 |  |  |  | (307 | ) |  |  | 222 |  |  |  | 1,403 |  |  |  | 12,665 |
Secured by nonfarm, nonresidential properties |  |  | 37,896 |  |  |  | (2,005 | ) |  |  | — |  |  |  | (874 | ) |  |  | 35,017 |
Other real estate secured |  |  | 19,491 |  |  |  | — |  |  |  | 77 |  |  |  | 3,937 |  |  |  | 23,505 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | 13,297 |  |  |  | — |  |  |  | 3 |  |  |  | (5,158 | ) |  |  | 8,142 |
Secured by 1-4 family residential properties |  |  | 32,129 |  |  |  | (930 | ) |  |  | 441 |  |  |  | 7,345 |  |  |  | 38,985 |
Commercial and industrial loans |  |  | 27,020 |  |  |  | (2,430 | ) |  |  | 499 |  |  |  | 3,376 |  |  |  | 28,465 |
Consumer loans |  |  | 5,141 |  |  |  | (4,325 | ) |  |  | 3,046 |  |  |  | 1,249 |  |  |  | 5,111 |
State and other political subdivision loans |  |  | 1,250 |  |  |  | — |  |  |  | — |  |  |  | 297 |  |  |  | 1,547 |
Other commercial loans and leases |  |  | 6,247 |  |  |  | (84 | ) |  |  | 93 |  |  |  | 1,195 |  |  |  | 7,451 |
Total |  | $ | 160,270 |  |  | $ | (10,081 | ) |  | $ | 4,577 |  |  | $ | 13,471 |  |  | $ | 168,237 |
The PCL, LHFI for the six months ended June 30, 2025 was primarily due to loan growth, changes in the macroeconomic forecast, coupled with net adjustments to the qualitative factors due to credit migration and modeling assumption updates to utilize bank historical data. The negative PCL, LHFI for the other construction and secured by nonfarm, nonresidential properties portfolios for the six months ended June 30, 2025 was primarily due to segmentation migration, positive credit migration and a decline in loan balances.
|  | Six Months Ended June 30, 2024 |
|  | Balance at Beginning of Period |  |  | Charge-offs |  |  | Recoveries |  |  | PCL |  |  | Balance at End of Period |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land |  | $ | 17,192 |  |  | $ | (24 | ) |  | $ | 8 |  |  | $ | (12,075 | ) |  | $ | 5,101 |
Other secured by 1-4 family residential properties |  |  | 12,942 |  |  |  | (180 | ) |  |  | 513 |  |  |  | (2,902 | ) |  |  | 10,373 |
Secured by nonfarm, nonresidential properties |  |  | 24,043 |  |  |  | (2,428 | ) |  |  | 26 |  |  |  | 19,495 |  |  |  | 41,136 |
Other real estate secured |  |  | 4,488 |  |  |  | — |  |  |  | — |  |  |  | 7,549 |  |  |  | 12,037 |
Other loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other construction |  |  | 5,758 |  |  |  | (2,494 | ) |  |  | 272 |  |  |  | 10,361 |  |  |  | 13,897 |
Secured by 1-4 family residential properties |  |  | 34,794 |  |  |  | (9,191 | ) |  |  | 65 |  |  |  | 4,979 |  |  |  | 30,647 |
Commercial and industrial loans |  |  | 26,638 |  |  |  | (775 | ) |  |  | 470 |  |  |  | 2,402 |  |  |  | 28,735 |
Consumer loans |  |  | 5,794 |  |  |  | (4,932 | ) |  |  | 2,952 |  |  |  | 1,831 |  |  |  | 5,645 |
State and other political subdivision loans |  |  | 646 |  |  |  | — |  |  |  | — |  |  |  | (21 | ) |  |  | 625 |
Other commercial loans and leases |  |  | 7,072 |  |  |  | (53 | ) |  |  | 52 |  |  |  | (582 | ) |  |  | 6,489 |
Total |  | $ | 139,367 |  |  | $ | (20,077 | ) |  | $ | 4,358 |  |  | $ | 31,037 |  |  | $ | 154,685 |
The PCL, LHFI for the secured by nonfarm, nonresidential properties, other construction and other real estate secured portfolios for the six months ended June 30, 2024 was primarily due to changes in the macroeconomic forecast associated with these specific loss driver models as a result of the loss driver update, coupled with net adjustments to the qualitative factors due to credit migration and loan growth. The PCL, LHFI for the secured by 1-4 family residential properties portfolio for the six months ended June 30, 2024 was primarily due to adjustments to the Nature and Volume of Portfolio qualitative factor, coupled with implementing the credit mark reserve as a result of the mortgage loan sale. The PCL, LHFI for the commercial and industrial portfolio for the six months ended June 30, 2024 was primarily due to net adjustments to the qualitative factors due to credit migration. The negative PCL, LHFI for the construction, land development and other land, other secured by 1-4 family residential properties, and other commercial loans and leases portfolios for the six months ended June 30, 2024 was primarily due to changes in the macroeconomic forecast associated with these specific loss driver models as a result of the loss driver update for these loan portfolios.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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