XML 29 R14.htm IDEA: XBRL DOCUMENT
v3.25.4

Securities Available for Sale and Held to Maturity | 12 Months Ended
--- | ---
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
Securities Available for Sale and Held to Maturity | Note 3 – Securities Available for Sale and Held to Maturity The following tables are a summary of the amortized cost and estimated fair value of securities available for sale and held to maturity at December 31, 2025 and 2024 ($ in thousands):
|  | Securities Available for Sale |  |  | Securities Held to Maturity |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |  |  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |  |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
December 31, 2025 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |  |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Treasury securities |  | $ | 205,282 |  |  | $ | 3,666 |  |  | $ | — |  |  | $ | 208,948 |  |  | $ | 30,615 |  |  | $ | 185 |  |  | $ | — |  |  | $ | 30,800 |
U.S. Government agency obligations |  |  | 70,924 |  |  |  | 609 |  |  |  | (684 | ) |  |  | 70,849 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage pass-through securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Guaranteed by GNMA |  |  | 40,425 |  |  |  | 106 |  |  |  | (1,996 | ) |  |  | 38,535 |  |  |  | 13,154 |  |  |  | 22 |  |  |  | (393 | ) |  |  | 12,783 |
Issued by FNMA and FHLMC |  |  | 1,165,292 |  |  |  | 33,836 |  |  |  | (11,369 | ) |  |  | 1,187,759 |  |  |  | 372,311 |  |  |  | 2,070 |  |  |  | (7,812 | ) |  |  | 366,569 |
Other residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 96,667 |  |  |  | — |  |  |  | (4,233 | ) |  |  | 92,434 |
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | 360,521 |  |  |  | 10,698 |  |  |  | (480 | ) |  |  | 370,739 |  |  |  | 694,707 |  |  |  | 73 |  |  |  | (16,797 | ) |  |  | 677,983 |
Total |  | $ | 1,842,444 |  |  | $ | 48,915 |  |  | $ | (14,529 | ) |  | $ | 1,876,830 |  |  | $ | 1,207,454 |  |  | $ | 2,350 |  |  | $ | (29,235 | ) |  | $ | 1,180,569 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 203,524 |  |  | $ | 548 |  |  | $ | (1,403 | ) |  | $ | 202,669 |  |  | $ | 29,842 |  |  | $ | 1 |  |  | $ | (522 | ) |  | $ | 29,321 |
U.S. Government agency obligations |  |  | 41,194 |  |  |  | — |  |  |  | (2,387 | ) |  |  | 38,807 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage pass-through securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Guaranteed by GNMA |  |  | 31,365 |  |  |  | 3 |  |  |  | (2,957 | ) |  |  | 28,411 |  |  |  | 16,218 |  |  |  | — |  |  |  | (844 | ) |  |  | 15,374 |
Issued by FNMA and FHLMC |  |  | 1,091,122 |  |  |  | 1,610 |  |  |  | (22,194 | ) |  |  | 1,070,538 |  |  |  | 423,372 |  |  |  | 94 |  |  |  | (23,853 | ) |  |  | 399,613 |
Other residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 123,685 |  |  |  | — |  |  |  | (8,004 | ) |  |  | 115,681 |
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | 352,332 |  |  |  | 827 |  |  |  | (1,050 | ) |  |  | 352,109 |  |  |  | 742,268 |  |  |  | 3 |  |  |  | (43,153 | ) |  |  | 699,118 |
Total |  | $ | 1,719,537 |  |  | $ | 2,988 |  |  | $ | (29,991 | ) |  | $ | 1,692,534 |  |  | $ | 1,335,385 |  |  | $ | 98 |  |  | $ | (76,376 | ) |  | $ | 1,259,107 |
During 2022, Trustmark reclassified a total of $766.0 million of securities available for sale to securities held to maturity. On the date of these transfers, the net unrealized holding loss on the available for sale securities totaled approximately $91.9 million ($68.9 million, net of tax). The securities were transferred at fair value, which became the cost basis for the securities held to maturity. The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of these transfers. At December 31, 2025, the net unamortized, unrealized loss on transferred securities included in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets totaled $36.3 million compared to $46.6 million at December 31, 2024. ACL on Securities Securities Available for Sale Quarterly, Trustmark evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, Trustmark performs further analysis. If Trustmark determines that a credit loss exists, the credit portion of the allowance is measured using a discounted cash flow (DCF) analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss recorded by Trustmark is limited to the amount by which the amortized cost exceeds the fair value. The DCF analysis utilizes contractual maturities, as well as third-party credit ratings and cumulative default rates published annually by Moody's Investor Service (Moody’s). At both December 31, 2025 and 2024, the results of the loss analysis performed did not identify any securities that warranted DCF analysis and no credit loss was recognized on any of the securities available for sale. Accrued interest receivable is excluded from the estimate of credit losses for securities available for sale. At December 31, 2025 and 2024, accrued interest receivable totaled $5.9 million and $5.0 million, respectively, for securities available for sale and was reported in other assets on the accompanying consolidated balance sheets. Securities Held to Maturity At both December 31, 2025 and 2024, Trustmark identified no securities held to maturity with the potential for credit loss exposure. After applying appropriate probability of default (PD) and loss given default (LGD) assumptions, the total amount of current expected credit losses was zero at both December 31, 2025 and 2024. Therefore, no reserve was recorded at either December 31, 2025 or December 31, 2024. Accrued interest receivable is excluded from the estimate of credit losses for securities held to maturity. At December 31, 2025 and 2024, accrued interest receivable totaled $2.1 million and $2.4 million, respectively, for securities held to maturity and was reported in other assets on the accompanying consolidated balance sheets. At both December 31, 2025 and 2024, Trustmark had no securities held to maturity that were past due 30 days or more as to principal or interest payments. Trustmark had no securities held to maturity classified as nonaccrual at December 31, 2025 and 2024. Trustmark monitors the credit quality of securities held to maturity on a monthly basis through credit ratings. The following table presents the amortized cost of Trustmark’s securities held to maturity by credit rating, as determined by Moody’s, at December 31, 2025 and 2024 ($ in thousands):
|  | December 31, |
|  | 2025 |  |  | 2024 |
Aaa |  | $ | 52,405 |  |  | $ | 1,335,385 |
Aa1 to Aa3 |  |  | 1,155,049 |  |  |  | — |
Total |  | $ | 1,207,454 |  |  | $ | 1,335,385 |
During 2025, a significant portion of Trustmark's investment portfolio moved from the Aaa credit rating to the Aa1 to Aa3 credit rating. The change in the credit rating of Trustmark's investment portfolio was the result of Moody's downgrade of the United States' credit rating from Aaa to Aa1 during the second quarter of 2025. The downgrade was primarily due to concerns about the rising federal debt, increasing interest costs and a perceived weakening of the government's ability to respond to future economic shocks. The tables below include securities with gross unrealized losses for which an ACL has not been recorded and segregated by length of impairment at December 31, 2025 and 2024 ($ in thousands):
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross |
|  | Estimated |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |
December 31, 2025 |  | Fair Value |  |  | Losses |  |  | Fair Value |  |  | Losses |  |  | Fair Value |  |  | Losses |
U.S. Government agency obligations |  | $ | 3,905 |  |  | $ | (14 | ) |  | $ | 40,952 |  |  | $ | (670 | ) |  | $ | 44,857 |  |  | $ | (684 | )
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage pass-through securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Guaranteed by GNMA |  |  | 5,925 |  |  |  | (18 | ) |  |  | 26,946 |  |  |  | (2,371 | ) |  |  | 32,871 |  |  |  | (2,389 | )
Issued by FNMA and FHLMC |  |  | 91,230 |  |  |  | (234 | ) |  |  | 205,163 |  |  |  | (18,947 | ) |  |  | 296,393 |  |  |  | (19,181 | )
Other residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | — |  |  |  | — |  |  |  | 92,434 |  |  |  | (4,233 | ) |  |  | 92,434 |  |  |  | (4,233 | )
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | — |  |  |  | — |  |  |  | 739,436 |  |  |  | (17,277 | ) |  |  | 739,436 |  |  |  | (17,277 | )
Total |  | $ | 101,060 |  |  | $ | (266 | ) |  | $ | 1,104,931 |  |  | $ | (43,498 | ) |  | $ | 1,205,991 |  |  | $ | (43,764 | )
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 123,277 |  |  | $ | (1,925 | ) |  | $ | — |  |  | $ | — |  |  | $ | 123,277 |  |  | $ | (1,925 | )
U.S. Government agency obligations |  |  | 38,807 |  |  |  | (2,387 | ) |  |  | — |  |  |  | — |  |  |  | 38,807 |  |  |  | (2,387 | )
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage pass-through securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Guaranteed by GNMA |  |  | 15,802 |  |  |  | (293 | ) |  |  | 27,803 |  |  |  | (3,508 | ) |  |  | 43,605 |  |  |  | (3,801 | )
Issued by FNMA and FHLMC |  |  | 981,747 |  |  |  | (13,848 | ) |  |  | 237,487 |  |  |  | (32,199 | ) |  |  | 1,219,234 |  |  |  | (46,047 | )
Other residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | — |  |  |  | — |  |  |  | 115,681 |  |  |  | (8,004 | ) |  |  | 115,681 |  |  |  | (8,004 | )
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued or guaranteed by FNMA, FHLMC or GNMA |  |  | 164,971 |  |  |  | (536 | ) |  |  | 767,566 |  |  |  | (43,667 | ) |  |  | 932,537 |  |  |  | (44,203 | )
Total |  | $ | 1,324,604 |  |  | $ | (18,989 | ) |  | $ | 1,148,537 |  |  | $ | (87,378 | ) |  | $ | 2,473,141 |  |  | $ | (106,367 | )
The unrealized losses shown above were due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Trustmark does not intend to sell these securities and it is more likely than not that Trustmark will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. Securities Gains and Losses Realized gains and losses are determined using the specific identification method and are included in noninterest income (loss) as securities gains (losses), net. For the periods presented, gross realized gains or losses as a result of calls and dispositions of securities, as well as any associated proceeds, were as follows ($ in thousands):
|  | Years Ended December 31, |
Available for Sale |  | 2025 |  |  | 2024 |  |  | 2023 |
Proceeds from calls and sales of securities |  | $ | — |  |  | $ | 1,378,272 |  |  | $ | 4,796 |
Gross realized gains |  |  | — |  |  |  | — |  |  |  | 47 |
Gross realized losses |  |  | — |  |  |  | (182,792 | ) |  |  | (8 | )
During the second quarter of 2024, Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income (loss) in securities gains (losses), net. Proceeds from the sale were used to purchase $1.378 billion of available for sale securities with an average yield of 4.85%. Securities Pledged Securities with a carrying value of $1.709 billion and $1.910 billion at December 31, 2025 and 2024, respectively, were pledged to collateralize public deposits and securities sold under repurchase agreements and for other purposes as permitted by law. At both December 31, 2025 and 2024, none of these securities were pledged under the Federal Reserve Discount Window program to provide additional contingency funding capacity. Contractual Maturities The amortized cost and estimated fair value of securities av ailable for sale and held to maturity at December 31, 2025, by contractual maturity, are shown below ($ in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Securities |  |  | Securities |
|  | Available for Sale |  |  | Held to Maturity |
|  | Amortized |  |  | Estimated |  |  | Amortized |  |  | Estimated |
|  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
Due in one year or less |  | $ | 34,943 |  |  | $ | 35,204 |  |  | $ | — |  |  | $ | — |
Due after one year through five years |  |  | 27,717 |  |  |  | 28,119 |  |  |  | 30,615 |  |  |  | 30,800 |
Due after five years through ten years |  |  | 213,546 |  |  |  | 216,474 |  |  |  | — |  |  |  | — |
|  |  | 276,206 |  |  |  | 279,797 |  |  |  | 30,615 |  |  |  | 30,800 |
Mortgage-backed securities |  |  | 1,566,238 |  |  |  | 1,597,033 |  |  |  | 1,176,839 |  |  |  | 1,149,769 |
Total |  | $ | 1,842,444 |  |  | $ | 1,876,830 |  |  | $ | 1,207,454 |  |  | $ | 1,180,569 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration