Trustmark Corporation (NASDAQ:TRMK) Q4 2024 Results Conference Call January 24, 2024 9:30 AM ET Company Participants Joey Rein - Director of Corporate Strategy Duane Dewey - President and CEO Barry Harvey - Chief Credit and Operations Officer Tom Owens - Chief Financial Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Graham Dick - Piper Sandler Gary Tenner - D.A. Davidson Catherine Mealor - KBW Operator Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's F ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details Trustmark Corporation's unaudited financial statements, management's analysis, market risk, and internal controls [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Trustmark Corporation's unaudited condensed consolidated financial statements and detailed notes for the period ended September 30, 2023 [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Trustmark's total assets grew to **$18.39 billion** as of September 30, 2023, from **$18.02 billion** at year-end 2022, driven by a **5.0%** increase in net loans held for investment, while total deposits increased by **4.6%** to **$15.10 billion** Consolidated Balance Sheet Highlights ($ in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $18,390,839 | $18,015,478 | | Net Loans Held for Investment (LHFI) | $12,676,228 | $12,083,825 | | Total Deposits | $15,101,923 | $14,437,648 | | Total Liabilities | $16,820,488 | $16,523,210 | | Total Shareholders' Equity | $1,570,351 | $1,492,268 | Consolidated Income Statement Highlights ($ in thousands) | Account | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net Interest Income | $416,136 | $348,125 | | Provision for Credit Losses, LHFI | $19,777 | $14,775 | | Noninterest Income | $157,154 | $159,974 | | Noninterest Expense | $401,490 | $371,984 | | Net Income | $129,366 | $105,950 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on Trustmark's accounting policies and financial components, including securities, loans, ACL methodology, legal contingencies, derivatives, and segment performance - The financial statements are prepared in conformity with U.S. GAAP for interim information and should be read with the 2022 Annual Report on Form 10-K[29](index=29&type=chunk) - Management makes estimates and assumptions that affect reported amounts; actual results could differ[30](index=30&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=61&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Trustmark's financial performance, covering loan and deposit growth, net interest income, credit quality, and a **$6.5 million** litigation settlement - Q3 2023 results reflected solid growth in loans held for investment (LHFI) and deposits, stable net interest income, and continued credit quality strength[223](index=223&type=chunk) - A **$6.5 million** litigation settlement expense related to Adams/Madison Timber was recognized in Q3 2023[223](index=223&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.23 per share**, payable December 15, 2023[224](index=224&type=chunk) [Results of Operations](index=70&type=section&id=MD%26A_Results_of_Operations) For the nine months ended September 30, 2023, total revenue increased **12.8%** to **$573.3 million**, driven by a **19.5%** rise in net interest income to **$416.1 million**, while noninterest income decreased slightly by **1.8%** to **$157.2 million**, and noninterest expense rose **7.9%** to **$401.5 million** due to a **$6.5 million** litigation settlement Key Performance Metrics (Nine Months Ended Sep 30, $ in Millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Interest Income-FTE | $426.3M | $357.0M | | Net Interest Margin-FTE | 3.34% | 3.00% | | Noninterest Income | $157.2M | $160.0M | | Noninterest Expense | $401.5M | $372.0M | | Net Income | $129.4M | $106.0M | - The provision for credit losses on LHFI for the nine months of 2023 was **$19.8 million**, an increase from **$14.8 million** in the prior year, reflecting loan growth and a weakening macroeconomic forecast[276](index=276&type=chunk) - Noninterest expense for the nine months of 2023 included a **$6.5 million** litigation settlement expense; excluding this, noninterest expense increased **6.2%** YoY[239](index=239&type=chunk) [Financial Condition](index=79&type=section&id=MD%26A_Financial_Condition) As of September 30, 2023, total assets were **$18.39 billion**, with loans held for investment (LHFI) growing **5.0%** to **$12.81 billion**, while nonperforming assets increased to **$96.4 million**, and deposits grew **4.6%** to **$15.10 billion** with a shift towards interest-bearing accounts - LHFI increased by **$606.2 million (5.0%)** since Dec 31, 2022, primarily from net growth in loans secured by real estate[315](index=315&type=chunk) - Nonperforming assets rose to **$96.4 million** at Q3 2023 from **$68.0 million** at year-end 2022, mainly due to an increase in nonaccrual LHFI[242](index=242&type=chunk)[339](index=339&type=chunk) - Deposits increased by **$664.3 million (4.6%)** since year-end 2022, with a shift from noninterest-bearing deposits (**-$773.6 million**) to interest-bearing deposits (**+$1.44 billion**), including **$727.3 million** in new brokered CDs[346](index=346&type=chunk) - The allowance for credit losses (ACL) on LHFI stood at **$134.0 million**, or **1.05%** of total LHFI, up from **0.99%** at year-end 2022[333](index=333&type=chunk) [Capital Resources and Liquidity](index=91&type=section&id=MD%26A_Capital%20Resources%20and%20Liquidity) Trustmark maintained a strong capital position with all regulatory capital ratios exceeding 'well-capitalized' standards, including a Common Equity Tier 1 (CET1) ratio of **9.89%**, and robust liquidity supported by a strong deposit base and **$3.60 billion** in additional FHLB borrowing capacity Regulatory Capital Ratios (Trustmark Corporation) | Ratio | Sep 30, 2023 | Minimum Requirement | | :--- | :--- | :--- | | Common Equity Tier 1 | 9.89% | 7.00% | | Tier 1 Capital | 10.29% | 8.50% | | Total Capital | 12.11% | 10.50% | | Tier 1 Leverage | 8.49% | 4.00% | - Trustmark had access to **$3.60 billion** in additional FHLB advances and **$1.38 billion** in Discount Window capacity as of September 30, 2023[371](index=371&type=chunk)[374](index=374&type=chunk) - No shares were repurchased during the first nine months of 2023 under the **$50.0 million** stock repurchase program authorized for 2023[363](index=363&type=chunk) [Asset/Liability Management](index=94&type=section&id=MD%26A_Asset%2FLiability%20Management) Trustmark actively manages interest rate risk using financial simulation models and derivatives, including a **$1.0 billion** notional cash flow hedging program, with Mortgage Servicing Rights (MSR) valued at **$142.4 million** Estimated Change in Net Interest Income (1-Year Horizon) | Rate Change | Estimated % Change | | :--- | :--- | | +200 bps | 2.0% | | +100 bps | 1.0% | | -100 bps | -1.2% | | -200 bps | -2.8% | - Trustmark initiated a cash flow hedging program with an aggregate notional value of **$1.0 billion** as of September 30, 2023, to manage exposure to interest rate movements[386](index=386&type=chunk) - The fair value of Mortgage Servicing Rights (MSR) was **$142.4 million**; a **10%** adverse change in prepayment speed would decrease fair value by approximately **$5.0 million**[403](index=403&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=98&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to the 'Market/Interest Rate Risk Management' discussion within the Management's Discussion and Analysis (MD&A) for information on the company's market risk exposures - Information required by this item is included in the discussion of Market/Interest Rate Risk Management found in the MD&A section[407](index=407&type=chunk) [Controls and Procedures](index=98&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and Principal Financial Officer, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the third quarter - Based on an evaluation as of the end of the reporting period, the CEO and Principal Financial Officer concluded that Trustmark's disclosure controls and procedures were effective[408](index=408&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[409](index=409&type=chunk) [PART II. OTHER INFORMATION](index=98&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information on Trustmark's legal proceedings, risk factors, equity security sales, and other relevant disclosures [Legal Proceedings](index=98&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Trustmark's subsidiary, TNB, has reached settlement agreements in two major litigations: a **$100.0 million** settlement for the Stanford Financial Group litigation and a **$6.5 million** settlement for the Adams/Madison Timber litigation, both pending final court approval - Trustmark recognized a **$100.0 million** litigation settlement expense in Q4 2022 related to the Stanford Financial Group litigation[173](index=173&type=chunk) - Trustmark recognized a **$6.5 million** litigation settlement expense in Q3 2023 related to the Adams/Madison Timber litigation[173](index=173&type=chunk) - For other pending legal proceedings, Trustmark believes a loss is not probable and a reasonable estimate cannot be made at this time[173](index=173&type=chunk)[411](index=411&type=chunk) [Risk Factors](index=98&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in Trustmark's 2022 Annual Report on Form 10-K - There has been no material change in the risk factors previously disclosed in Trustmark's 2022 Annual Report[412](index=412&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=98&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Trustmark has a stock repurchase program authorizing the acquisition of up to **$50.0 million** of its common stock through December 31, 2023, with no shares repurchased during the third quarter of 2023 - A stock repurchase program for up to **$50.0 million** is effective through December 31, 2023[413](index=413&type=chunk) - No shares of common stock were repurchased by the company during the three months ended September 30, 2023[414](index=414&type=chunk) [Other Information](index=99&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the third quarter of 2023, none of Trustmark's directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement - During Q3 2023, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements[417](index=417&type=chunk)

Trustmark Corporation (NASDAQ:TRMK) Q3 2023 Earnings Conference Call October 25, 2023 9:30 AM ET Company Participants Joey Rein - Director of Corporate Strategy Duane Dewey - President and Chief Executive Officer Barry Harvey - Chief Credit and Operations Officer Tom Owens - Chief Financial Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Graham Dick - Piper Sandler Kevin Fitzsimmons - D.A. Davidson Will Jones - KBW Operator Good morning, ladies and gentlemen, and welcome to Trus ...

Interest-bearing Noninterest-bearing • Deposit cost during Q3-23 consistent with prior guidance, driven by promotional deposit campaign activity to maintain strong liquidity 11 • Insurance revenue totaled $15.3 million, up $539 thousand from the prior quarter and $1.4 million year-over-year Mortgage Loan Production (1) ($ in millions) Equipment Expense Other Expense • Capital position remained strong with a CET1 ratio of 9.89% and a total risk-based capital ratio of 12.11% at September 30, 2023 • Our missio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-03683 Trustmark Corporation (Exact name of registrant as specified in its charter) Mississippi 64-0471500 (State or other jurisdiction of in ...

Trustmark Corporation (NASDAQ:TRMK) Q2 2023 Earnings Conference Call July 26, 2023 9:30 AM ET Company Participants Joey Rein - Director, Corporate Strategy Duane Dewey - President & Chief Executive Officer Barry Harvey - Chief Credit & Operations Officer Tom Owens - Chief Financial Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Catherine Mealor - KBW Kevin Fitzsimmons - D.A. Davidson Joe Yanchunis - Raymond James Graham Dick - Piper Sandler Operator Good morning, ladies and gen ...

Second Quarter 2023 Financial Results July 25, 2023 Forward–Looking Statements Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as "may," "hope," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "project," "potential," "seek," "continue," "could," "would," "future" or the negative of those terms o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-03683 Trustmark Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...

Trustmark Corporation (NASDAQ:TRMK) Q1 2023 Earnings Conference Call April 26, 2023 9:30 AM ET Company Participants Joey Rein - Senior Vice President & Director Corporate Strategy Duane Dewey - President & Chief Executive Officer Barry Harvey - Chief Commercial Officer Tom Owens - Chief Financial Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Kevin Fitzsimmons - D.A. Davidson Catherine Mealor - KBW Operator Good morning, ladies and gentlemen, and welcome to Trustmark Corporatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-3683 TRUSTMARK CORPORATION (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 248 East Capitol Street, Jackson, ...