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Trustmark (TRMK) to Remove Overdraft, NSF Fees by 2022-End

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Continuing its efforts to provide consumers more financial stability, Trustmark Corporation’s (TRMK - Free Report) wholly-owned subsidiary, Trustmark National Bank, announced modifications in consumer checking account fees. By 2022 end, Trustmark is expected to eliminate non-sufficient funds (NSF) fees for all consumer checking accounts.

Moreover, in order to eliminate overdraft charges for small dollar transactions, a minor transactional threshold will be established on consumer checking accounts.

To avoid overdraft fees, Trustmark will continue to promote extended banking hours, allowing consumers to make deposits through multiple channels, and late at night for same business-day credit.

Notably, Trustmark’s services such as mobile deposits, online banking, interactive teller machines and deposit-taking ATMs provide convenience and flexibility to consumers who need a grace period for transactions and alternatives to branch banking hours.

Duane Dewey, the CEO of Trustmark, stated, “These modifications to our fee structure are a direct reflection of our long-standing mission to provide outstanding customer satisfaction. The changes will benefit customers as they work to responsibly manage their financial wellbeing.”

Trustmark’s president of Retail Banking, Art Stevens, said, “By eliminating non-sufficient funds fees and waiving overdraft fees for small dollar transactions, our customers have more available funds to meet their immediate spending needs. This move is a strong complement to our many other products and services developed to meet the various budget needs and lifestyles of our customers.”

Dewey added, “We remain steadfast in our commitment to improve customers’ financial health and will continue to build upon these efforts.”

Notably, in order to improve the financial well-being of its customers, Trustmark provides other services as well. The BankOn certified account — Advantage Checking — does not allow overdrafts and provides incentives for customers to utilize the bank’s online financial education toolkit to enhance their financial knowledge and skills.

TRMK also limits overdraft fees to no more than five items per day and does not charge a per-day fee for accounts that remain in overdraft status.

Over the past year, shares of TRMK have lost 9.1% compared with the 0.7% decline of the industry.

 

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Currently, Trustmark carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Following the U.S. Senate hearings in May 2021 on how banks charge overdraft fees and the criticism on this practice during the pandemic, banks started removing the fees and rolling out alternatives at low costs. Banks such as Ally Financial (ALLY - Free Report) , Toronto Dominion Bank (TD - Free Report) and Regions Financial (RF - Free Report) took steps to either curb such fees or provided tools to their clients to limit the charges.

In October 2021, Regions Financial’s subsidiary Regions Bank announced a new Regions Now Checking account with no overdraft fees. The account included the convenience of modern banking, while eliminating overdraft fees.

Last June, Ally Bank, an indirect, wholly-owned banking subsidiary of ALLY, announced eliminating overdraft fees on all accounts with no requirements or restrictions.

In the same month, Toronto Dominion’s subsidiary TD Bank announced plans to introduce TD Essential Banking, offering a low-cost, no-overdraft-fee deposit account.

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