Trustmark in Jackson, Miss., has joined a growing list of banks that are eliminating nonsufficient funds fees.
The $17.6 billion-asset company disclosed in a Tuesday regulatory filing that it plans to do away with NSF fees by the end of this year.
Trustmark said the move could reduce annual revenue by about $2 million in 2023.
“Trustmark intends to establish a de minimis transaction amount for consumer checking accounts to eliminate overdraft charges for small dollar transactions,” the filing said. “The de minimis transaction amount and related impact on revenue in 2023 have not yet been determined.”
Overdraft “has a range of outcomes given the undetermined transaction threshold, but we model an additional $8 million reduction in service charges,” Keefe, Bruyette & Woods analysts wrote in a note to clients.
Several larger financial institutions, including Ally Financial, Cullen/Frost Bankers, Huntington Bancshares and PNC Financial Services, have announced programs that will likely reduce revenue from overdraft fees.