TRMK

Trustmark is a 130-year-old, $18.9B-asset regional bank that delivered record 2025 earnings of $224M and diluted EPS of $3.70, and the stock trades at just 12.4x those earnings. The quality is solid if unspectacular: ROE is 10.6% and Q4 return on average tangible equity was 12.82% with a 1.23% return on average assets — respectable for a community bank but not elite. The balance sheet is sound, with stockholders' equity up 8.1% to $2.12B and retained earnings up 8.8%; the 7.92x liabilities/equity ratio is normal leverage for a deposit-funded bank, not a stress signal. The MD&A's claim of 'record earnings' is backed by the numbers, though headline growth was flat (net income +0.5%, EPS +1.9% YoY) — EPS outpaced net income only because the share count fell 3.2%.

The most important forward signal is in the margin mechanics. In Q4, net interest income rose 4.5% to $162.9M while interest expense fell 8.9% — deposit costs dropped 10.9% as rates declined, and that repricing tailwind should continue to widen the net interest margin into 2026. Credit is clean: the Q4 provision was a negative $550K (a release) on positive credit migration, versus a $7.0M build a year earlier. The mortgage and wealth-management lines are also contributing — wealth revenue hit an all-time high and grew 19.5% in Q4 — giving some diversification beyond spread income.