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.

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.

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 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

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.

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):

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:

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:

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:

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:

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.

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	)

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.

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 1st and 99th 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.

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.

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.

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.

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.