Securities Available for Sale and Held to Maturity

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale and Held to Maturity

Note 2 – 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 March 31, 2026 and December 31, 2025 ($ in thousands):


	Securities Available for Sale									Securities Held to Maturity
March 31, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Treasury securities	$	219,987	$	1,902	$	(156	)	$	221,733	$	30,804	$	—	$	(52	)	$	30,752
U.S. Government agency obligations		71,095		328		(1,168	)		70,255		—		—		—			—
Mortgage-backed securities
Residential mortgage pass- through securities
Guaranteed by GNMA		42,232		60		(2,095	)		40,197		12,733		3		(419	)		12,317
Issued by FNMA and FHLMC		1,203,412		24,501		(12,933	)		1,214,980		359,768		337		(9,022	)		351,083
Other residential mortgage- backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		—		—		—			—		90,748		—		(4,535	)		86,213
Commercial mortgage- backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		359,409		7,798		(537	)		366,670		665,623		72		(18,984	)		646,711
Total	$	1,896,135	$	34,589	$	(16,889	)	$	1,913,835	$	1,159,676	$	412	$	(33,012	)	$	1,127,076


	Securities Available for Sale									Securities Held to Maturity
December 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair 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

During 2022, Trustmark reclassified a total of $766.0 million of securities available for sale to securities held to maturity. At the date of these transfers, the net unrealized holding loss on the available for sale securities totaled $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 March 31, 2026, the net unamortized, unrealized loss on transferred securities included in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets totaled $34.1 million compared to $36.3 million at December 31, 2025.

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 by 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 March 31, 2026 and December 31, 2025, the results of the analysis 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 March 31, 2026, accrued interest receivable totaled $6.3 million for securities available for sale compared to $5.9 million December 31, 2025 and was reported in other assets on the accompanying consolidated balance sheets.

Securities Held to Maturity

At March 31, 2026 and December 31, 2025, Trustmark identified no securities held to maturity with the potential for credit loss exposure. After applying appropriate analysis, the total amount of current expected credit losses was zero at March 31, 2026 and December 31, 2025. No reserve was recorded at either March 31, 2026 or December 31, 2025.

Accrued interest receivable is excluded from the estimate of credit losses for securities held to maturity. At both March 31, 2026 and December 31, 2025, accrued interest receivable totaled $2.1 million for securities held to maturity and was reported in other assets on the accompanying consolidated balance sheets.

At both March 31, 2026 and December 31, 2025, Trustmark had no securities held to maturity that were past due 30 days or more as to principal or interest payments or classified as nonaccrual.

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 March 31, 2026 and December 31, 2025 ($ in thousands):


	March 31, 2026		December 31, 2025
Aaa	$	51,891	$	52,405
Aa1 to Aa3		1,107,785		1,155,049
Total	$	1,159,676	$	1,207,454

The tables below include securities with gross unrealized losses for which an allowance for credit losses has not been recorded segregated by length of impairment at March 31, 2026 and December 31, 2025 ($ in thousands):


	Less than 12 Months					12 Months or More					Total
March 31, 2026	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	44,028	$	(208	)	$	—	$	—		$	44,028	$	(208	)
U.S. Government agency obligations		30,668		(592	)		15,912		(576	)		46,580		(1,168	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		13,956		(97	)		23,228		(2,417	)		37,184		(2,514	)
Issued by FNMA and FHLMC		430,506		(2,350	)		193,183		(19,605	)		623,689		(21,955	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		—		—			86,213		(4,535	)		86,213		(4,535	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		68,097		(375	)		638,408		(19,146	)		706,505		(19,521	)
Total	$	587,255	$	(3,622	)	$	956,944	$	(46,279	)	$	1,544,199	$	(49,901	)


December 31, 2025
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	)

The unrealized losses shown above are 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 as securities gains (losses), net. During the three months ended March 31, 2026 and 2025, there were no gross realized gains or losses as a result of calls and dispositions of securities.

Securities Pledged

Securities with a carrying value of $1.792 billion and $1.709 billion at March 31, 2026 and December 31, 2025, respectively, were pledged to collateralize public deposits and for other purposes as permitted by law. At both March 31, 2026 and December 31, 2025, 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 available for sale and held to maturity at March 31, 2026, 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 Available for Sale				Securities Held to Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	40,950	$	41,130	$	—	$	—
Due after one year through five years		48,844		49,423		30,804		30,752
Due after five years through ten years		201,288		201,435		—		—
		291,082		291,988		30,804		30,752
Mortgage-backed securities		1,605,053		1,621,847		1,128,872		1,096,324
Total	$	1,896,135	$	1,913,835	$	1,159,676	$	1,127,076