| Leases |
Note 6 – Leases Lessor Arrangements Trustmark leases certain types of machinery and equipment to its customers through sales-type and direct financing leases as part of its equipment financing portfolio. At March 31, 2026, these leases have remaining lease terms of two to nine years, some of which include renewal options and/or options for the lessee to purchase the leased property near or at the end of the lease term. Trustmark recognized interest income from its sales-type and direct financing leases of $5.6 million for the three months ended March 31, 2026, compared to $3.6 million for the three months ended March 31, 2025. Trustmark does not have any significant operating leases in which it is the lessor. The table below summarizes the components of Trustmark's net investment in its sales-type and direct financing leases for the periods presented ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
Leases receivable |
|
$ |
470,944 |
|
|
$ |
442,096 |
|
Unearned income |
|
|
(69,647 |
) |
|
|
(68,283 |
) |
Initial direct costs |
|
|
3,488 |
|
|
|
3,236 |
|
Unguaranteed lease residual |
|
|
29,729 |
|
|
|
24,360 |
|
Total net investment |
|
$ |
434,514 |
|
|
$ |
401,409 |
|
The table below details the minimum future lease payments for Trustmark's leases receivable at March 31, 2026 ($ in thousands):
|
|
|
|
|
|
|
March 31, 2026 |
|
2026 (excluding the three months ended March 31, 2026) |
|
$ |
69,396 |
|
2027 |
|
|
106,258 |
|
2028 |
|
|
95,855 |
|
2029 |
|
|
77,865 |
|
2030 |
|
|
53,375 |
|
Thereafter |
|
|
68,195 |
|
Lease receivable |
|
$ |
470,944 |
|
Lessee Arrangements The following table details the components of net lease cost for the periods presented ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
Finance leases: |
|
|
|
|
|
|
Amortization of right-of-use assets |
|
$ |
113 |
|
|
$ |
113 |
|
Interest on lease liabilities |
|
|
30 |
|
|
|
34 |
|
Operating lease cost |
|
|
1,352 |
|
|
|
1,341 |
|
Short-term lease cost |
|
|
159 |
|
|
|
165 |
|
Variable lease cost |
|
|
233 |
|
|
|
219 |
|
Sublease income |
|
|
(68 |
) |
|
|
(59 |
) |
Net lease cost |
|
$ |
1,819 |
|
|
$ |
1,813 |
|
The following table details the cash payments included in the measurement of lease liabilities during the periods presented ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
Finance leases: |
|
|
|
|
|
|
Operating cash flows included in operating activities |
|
$ |
30 |
|
|
$ |
34 |
|
Financing cash flows included in payments under finance lease obligations |
|
|
117 |
|
|
|
112 |
|
|
|
|
|
|
|
|
Operating leases: |
|
|
|
|
|
|
Operating cash flows (fixed payments) included in other operating activities, net |
|
|
1,333 |
|
|
|
1,315 |
|
Operating cash flows (liability reduction) included in other operating activities, net |
|
|
979 |
|
|
|
976 |
|
The following table details balance sheet information, as well as weighted-average lease terms and discount rates, related to leases at March 31, 2026 and December 31, 2025 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
Finance lease right-of-use assets, net of accumulated depreciation |
|
$ |
2,733 |
|
|
$ |
2,847 |
|
Finance lease liabilities |
|
|
3,341 |
|
|
|
3,458 |
|
Operating lease right-of-use assets |
|
|
32,702 |
|
|
|
32,152 |
|
Operating lease liabilities |
|
|
36,819 |
|
|
|
36,250 |
|
|
|
|
|
|
|
|
Weighted-average lease term: |
|
|
|
|
|
|
Finance leases |
|
6.11 years |
|
|
6.36 years |
|
Operating leases |
|
8.70 years |
|
|
8.69 years |
|
|
|
|
|
|
|
|
Weighted-average discount rate: |
|
|
|
|
|
|
Finance leases |
|
|
3.61 |
% |
|
|
3.61 |
% |
Operating leases |
|
|
4.07 |
% |
|
|
4.04 |
% |
At March 31, 2026, future minimum rental commitments under finance and operating leases were as follows ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
Finance Leases |
|
|
Operating Leases |
|
2026 (excluding the three months ended March 31, 2026) |
|
$ |
442 |
|
|
$ |
3,992 |
|
2027 |
|
|
594 |
|
|
|
5,301 |
|
2028 |
|
|
599 |
|
|
|
5,061 |
|
2029 |
|
|
633 |
|
|
|
4,900 |
|
2030 |
|
|
644 |
|
|
|
4,881 |
|
Thereafter |
|
|
810 |
|
|
|
20,284 |
|
Total minimum lease payments |
|
|
3,722 |
|
|
|
44,419 |
|
Less imputed interest |
|
|
(381 |
) |
|
|
(7,600 |
) |
Lease liabilities |
|
$ |
3,341 |
|
|
$ |
36,819 |
|
|