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 ...

Financial Data and Key Metrics Changes - For Q1 2023, Trustmark reported net income of $50.3 million or $0.82 per diluted share, with a return on average tangible common equity of 18.03% and a return on average assets of 1.1% [3][4] - Loans held for investment totaled $12.5 billion, an increase of $293 million linked quarter, while deposits totaled $14.8 billion, an increase of $346 million linked quarter [4][10] - Revenue in Q1 totaled $189 million, a decline of 1.5% linked quarter but an increase of 23.1% year-over-year [4] - Net interest income was $141.1 million, a decrease of $8.9 million or 6% linked quarter [4][14] - Noninterest income totaled $51.4 million, an increase of $6.2 million or 13.7% from the prior quarter [5][16] Business Line Data and Key Metrics Changes - The mortgage banking revenue increased by $4.2 million linked quarter to $7.6 million, while mortgage loan production decreased by 7.6% linked quarter and 33.7% year-over-year [17][18] - Noninterest expense was $128.3 million, a decline of $2.2 million or 1.6% compared to the prior quarter [5][19] - The allowance for credit losses for loans held for investment was $122.2 million, representing 0.98% of loans held for investment [8][19] Market Data and Key Metrics Changes - The commercial loan portfolio is well diversified across numerous industry segments, with no single category exceeding 13% [7] - Nonperforming assets represented 0.58% of total loans held for investment and loans held for sale [6] Company Strategy and Development Direction - The company expects loans held for investment to grow mid-to-high single digits for the year, with deposit balances expected to grow mid-single digits driven by promotional campaign activity [20][22] - Trustmark is focused on its "Fit to Grow" initiatives, expanding its team and investing in technology to enhance customer service and efficiency [22][23] - The company maintains a disciplined approach to capital deployment, prioritizing organic loan growth and potential M&A opportunities [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted solid loan and deposit growth, strong performance in mortgage insurance and wealth management, and diligent expense management [3] - The outlook for net interest income is expected to grow mid-single digits, reflecting flat full-year net interest margin based on current market implied forward interest rates [21] - Management acknowledged some slowing in production opportunities, particularly in commercial real estate (CRE) and construction loans, while still seeing funding of existing deals [30][31] Other Important Information - The Board declared a quarterly cash dividend of $0.23 per share payable on June 15 to shareholders of record on June 1 [6] - The company has a $50 million authority for share repurchase but is unlikely to engage in significant repurchases [19] Q&A Session Summary Question: Margin outlook and deposit beta - The cumulative beta at the end of Q1 was 22%, expected to reach 43% by year-end, with total deposit beta being discussed [24][25] Question: Loan growth expectations - Management indicated a slowing in production opportunities, particularly in CRE, while still seeing funding of existing deals [29][30] Question: Credit quality and collateral adjustments - No need for additional collateral or adjustments in underwriting for projects taking extension options, as they are performing well [33][34] Question: Deposit dynamics post-bank failures - No unusual attrition or deposit dynamics observed despite recent bank pressures, indicating the quality of the deposit base [39]

Loan Portfolio and Credit Risk Management - Trustmark's Loans Held for Investment (LHFI) and Loans Held for Sale (LHFS) are categorized into various segments, including construction, residential, and commercial real estate, with a focus on maintaining credit quality through conservative underwriting practices[29][30][34]. - Trustmark's credit risk management includes adherence to internal controls, collateral monitoring, and regular financial performance reviews of borrowers[30][38]. - The company has observed a steady increase in nonperforming loans, indicating a need for ongoing monitoring and risk management strategies[49]. - Trustmark's consumer loan portfolio is subject to heightened risks due to economic factors affecting employment and household income, which may impact loan collectability[42]. - Trustmark is subject to credit and lending risks, particularly if economic conditions deteriorate, which could lead to higher delinquencies and credit losses[113]. - The allowance for credit losses may be materially impacted by changes in macroeconomic conditions, affecting Trustmark's reserves and capital[140]. Economic and Market Conditions - Economic activity showed mixed results across Federal Reserve Districts, with consumer spending slightly increasing but housing markets continuing to weaken, indicating potential challenges for Trustmark's loan portfolios[47][48]. - Rising interest rates and inflation are expected to continue affecting the financial landscape, potentially impacting Trustmark's borrowers' repayment capabilities[45][46]. - Economic uncertainties, including inflation and geopolitical developments, may adversely affect Trustmark's business and financial condition[122]. - Trustmark's management does not anticipate significant improvement in current uncertain economic conditions, which may lead to increased delinquencies and default rates[124]. - Trustmark's profitability is under pressure due to prolonged low interest rates, which have adversely affected net interest margins[123]. Regulatory and Capital Requirements - Trustmark's common equity Tier 1 capital ratio at December 31, 2022, was 9.74%, exceeding the minimum requirement of 7.0%[73]. - Trustmark's Tier 1 capital ratio at December 31, 2022, was 10.15%, above the minimum requirement of 8.5%[73]. - Trustmark's total capital ratio at December 31, 2022, was 11.91%, surpassing the minimum requirement of 10.5%[73]. - Trustmark's leverage ratio at December 31, 2022, was 8.47%, well above the minimum requirement of 4.0%[73]. - Trustmark is subject to various regulatory capital requirements, including a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.0%[68]. - Trustmark's ability to pay dividends is limited by the Federal Reserve Board, ensuring that net income covers cash dividends[75]. Competition and Market Position - Trustmark's deposit market share ranked within the top three positions in 55.0% of the counties served as of June 30, 2022, reflecting a strong competitive position in its geographic markets[53]. - The company faces significant competition from both traditional and nonbank financial institutions, which may affect its market share and profitability[51][52]. - Trustmark's insurance subsidiary faces competition from local, regional, and national insurance companies[56]. - Trustmark faces substantial competition from larger financial institutions and fintech developments, which could impact its market position[127]. - Trustmark's ability to compete depends on maintaining long-term customer relationships and introducing new products relative to competitors[129]. Interest Rate and Liquidity Risks - Trustmark's net interest income is significantly impacted by interest rate risks, with a potential increase of 3.3% in net interest income estimated for a hypothetical 200 basis point increase in interest rates[107]. - Trustmark's liquidity risk is heightened by potential disruptions in funding sources, which could materially affect its financial condition[119]. - Management continuously monitors the sensitivity of net interest income to interest rate changes and adjusts strategies accordingly[110]. - Trustmark's strategies aim to maximize net interest income performance under varying interest rate environments while adhering to specific liquidity and interest rate risk guidelines[378]. Operational and Technological Considerations - Trustmark is investing in new technologies to enhance customer experience, but this may require significant resources and expose the company to additional cybersecurity risks[153]. - Changes in consumer behavior and retail distribution strategies may lead to increased expenditures for Trustmark to adapt its branch network and technology investments[148]. - Trustmark's reliance on third-party vendors exposes it to risks that could disrupt operations and adversely affect financial condition if vendors fail to perform as expected[152]. - Trustmark's reliance on third-party service providers is subject to increasing regulatory scrutiny, which could lead to enforcement actions if not managed properly[142]. Environmental and Social Risks - The company faces risks related to climate change and regulatory responses, which could impose additional operational costs and affect customer behavior[167]. - Trustmark's ability to attract and retain key employees is critical for its success, with intense competition for skilled personnel in the financial services sector[165]. - Natural disasters, particularly hurricanes, could significantly impact Trustmark's business by affecting loan repayment stability and collateral values[166]. - The company faces potential adverse effects from climate change, which may impact borrowers and increase credit risk, although specific financial impacts are unpredictable[168]. Miscellaneous - Trustmark employed 2,738 full-time equivalent associates as of December 31, 2022[102]. - TNB's expenses related to deposit insurance premiums totaled $7.4 million in 2022[98]. - TNB received a CRA rating of "Satisfactory" in its last examination from the OCC[85]. - Trustmark's goodwill and identifiable intangible assets amounted to $387.9 million as of December 31, 2022, with no impairment indicated during the last evaluation[145]. - Trustmark incurred a one-time settlement expense of $5.0 million related to a fair lending enforcement action in 2021[133]. - Trustmark's stock price is subject to volatility due to general market fluctuations and economic conditions, which may affect shareholder returns[161].

Trustmark Corporation (NASDAQ:TRMK) Q4 2022 Earnings Conference Call January 25, 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 Catherine Mealor - KBW Kevin Fitzsimmons - D.A. Davidson Dave Bishop - Hovde Group Carl Doirin - Raymond James Operator Good morning, l ...

Fourth Quarter & Fiscal Year 2022 Financial Results January 24, 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 ...

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 September 30, 2022 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 ...

Trustmark Corporation (NASDAQ:TRMK) Q3 2022 Earnings Conference Call October 26, 2022 9:30 AM ET Company Participants Joey Rein - Director of 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 Graham Dick - Piper Sandler Jennifer Demba - Truist Securities Catherine Mealor - KBW Joe Yanchunis - Raymond James Operator Good morning, ladies a ...

Third Quarter 2022 Financial Results October 25, 2022 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 ...

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, 2022 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 organiza ...