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Mortgage Banking | 12 Months Ended
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Dec. 31, 2025
Mortgage Banking [Abstract] |
Mortgage Banking | Note 6 – Mortgage Banking MSR The activity in the MSR is detailed in the table below for the periods presented ($ in thousands):
|  | Years Ended December 31, |
|  | 2025 |  |  | 2024 |
Balance at beginning of period |  | $ | 139,317 |  |  | $ | 131,870 |
Origination of servicing assets |  |  | 15,052 |  |  |  | 13,291 |
Change in fair value: |  |  |  |  |  |
Due to market changes |  |  | (9,840 | ) |  |  | 5,801 |
Due to runoff |  |  | (13,240 | ) |  |  | (11,645 | )
Balance at end of period |  | $ | 131,289 |  |  | $ | 139,317 |
Trustmark determines the fair value of the MSR using a valuation model administered by a third party that calculates the present value of estimated future net servicing income. Trustmark considers the conditional prepayment rate (CPR), which is an estimated loan prepayment rate that uses historical prepayment rates for previous loans similar to the loans being evaluated, the float rate, which is the interest rate earned on escrow balances, and the discount rate as some of the primary assumptions used in determining the fair value of the MSR. An increase in either the CPR or discount rate assumption will result in a decrease in the fair value of the MSR, while a decrease in either assumption will result in an increase in the fair value of the MSR. An increase in the float rate will result in an increase in the fair value of the MSR, while a decrease in the float rate will result in a decrease in the fair value of the MSR. At December 31, 2025, the fair value of the MSR included an assumed average prepayment speed of 9 CPR and an average discount rate of 10.66% compared to an assumed average prepayment speed of 8 CPR and an average discount rate of 10.65% at December 31, 2024. Mortgage Loans Sold/Serviced During 2025, 2024 and 2023, Trustmark sold $1.158 billion, $1.141 billion and $1.136 billion, respectively, of residential mortgage loans. Gain on sales of loans, net totaled $20.0 million in 2025, $19.3 million in 2024 and $15.3 million in 2023. Trustmark receives annual servicing fee income approximating 0.32% of the outstanding balance of the underlying loans, which totaled $28.7 million in 2025, $28.0 million in 2024 and $26.9 million in 2023. The gains on the sale of residential mortgage loans and the annual servicing fee are both recorded to noninterest income in mortgage banking, net in the accompanying consolidated statements of income. The investors and the securitization trusts have no recourse to the assets of Trustmark for failure of debtors to pay when due. The table below details the mortgage loans sold and serviced for others at December 31, 2025 and 2024 ($ in thousands):
|  | December 31, |
|  | 2025 |  |  | 2024 |
Federal National Mortgage Association |  | $ | 4,745,556 |  |  | $ | 4,821,246 |
Government National Mortgage Association |  |  | 3,872,151 |  |  |  | 3,695,419 |
Federal Home Loan Mortgage Corporation |  |  | 314,383 |  |  |  | 213,358 |
Other |  |  | 23,872 |  |  |  | 32,686 |
Total mortgage loans sold and serviced for others |  | $ | 8,955,962 |  |  | $ | 8,762,709 |
Trustmark is subject to losses in its loan servicing portfolio due to loan foreclosures. Trustmark has obligations to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the economic benefits of a loan if it is determined that the loan sold was in violation of representations or warranties made by Trustmark at the time of the sale, herein referred to as mortgage loan servicing putback expenses. Such representations and warranties typically include those made regarding loans that had missing or insufficient file documentation, loans that do not meet investor guidelines, loans in which the appraisal does not support the value and/or loans obtained through fraud by the borrowers or other third parties. Generally, putback requests may be made until the loan is paid in full. However, mortgage loans delivered to Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) on or after January 1, 2013 are subject to the Representations and Warranties Framework, which provides certain instances in which FNMA and FHLMC will not exercise their remedies, including a putback request, for breaches of certain selling representations and warranties, such as payment history and quality control review. When a putback request is received, Trustmark evaluates the request and takes appropriate actions based on the nature of the request. Trustmark is required by FNMA and FHLMC to provide a response to putback requests within 60 days of the date of receipt. The total mortgage loan servicing putback expense is included in other expense. Trustmark had no mortgage loan servicing putback expense during 2025, 2024 or 2023. At both December 31, 2025 and 2024, Trustmark had a reserve for mortgage loan servicing putback expenses of $500 thousand. There is inherent uncertainty in reasonably estimating the requirement for reserves against potential future mortgage loan servicing putback expenses. Future putback expenses are dependent on many subjective factors, including the review procedures of the purchasers and the potential refinance activity on loans sold with servicing released and the subsequent consequences under the representations and warranties. Trustmark believes that it has appropriately reserved for potential mortgage loan servicing putback requests.

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- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI 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