Trustmark Corporation (NASDAQ:TRMK) Q3 2021 Earnings Conference Call October 27, 2021 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 Jennifer Demba - SunTrust Operator Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's Third Quarter earnings ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 transition period from to For the quarterly period ended June 30, 2021 or Trustmark Corporation (Exact name of registrant as specified in its charter) Mississippi 64-0471500 (State or other jurisdiction of incorporation or organization) (I.R ...

Trustmark Corporation (NASDAQ:TRMK) Q2 2021 Earnings Conference Call July 28, 2021 9:30 AM ET Company Participants Joey Rein - Director, Investor Relations Duane Dewey - President & Chief Executive Officer Tom Owens - Chief Financial Officer Barry Harvey - Chief Credit & Operations Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Graham Dick - Piper Sandler Brandon King - Truist Securities Carl Doirin - Raymond James Catherine Mealor - KBW Operator Good morning ladies and gentle ...

Financial Performance - Net income was $52 million, with diluted earnings per share (EPS) of $0.76[9] - Pre-provision net revenue (PPNR) totaled $57.2 million, up 38.2% linked-quarter[6] - Net interest income (FTE) expanded $17.2 million, or 16.3%, linked-quarter[6] - Noninterest income totaled $56.4 million, representing 32.1% of total revenue[6] Loan Portfolio - Loans Held for Investment (HFI) increased $169.2 million, or 1.7%, linked-quarter and $493.1 million, or 5.1%, year-over-year[5] - Total LHFI was $10.153 billion[11] - Energy-related sector exposure was $301 million with outstanding balances of $93 million, representing 0.92% of total LHFI[15] Deposits - Deposits totaled $14.6 billion, up $248.6 million, or 1.7%, linked-quarter, and up $1.1 billion, or 8.3%, year-over-year[38] - Noninterest-bearing deposits accounted for 30% of the deposit mix[37] Capital Management - CET1 ratio was 11.76% and total risk-based capital ratio was 14.10%[8] - $20.8 million, or approximately 630 thousand shares of common stock, were repurchased in the second quarter[8]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Trustmark Corporation's unaudited consolidated financial statements for the period ending March 31, 2021, including key statements and accompanying notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2021 ($ in thousands) | December 31, 2020 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **16,878,313** | **16,551,840** | | Net Loans Held for Investment (LHFI) | 9,874,513 | 9,707,218 | | Paycheck Protection Program (PPP) loans | 679,725 | 610,134 | | Total Deposits | 14,383,440 | 14,048,764 | | **Total Liabilities** | **15,118,608** | **14,810,723** | | **Total Shareholders' Equity** | **1,759,705** | **1,741,117** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (Unaudited) | Account | Three Months Ended Mar 31, 2021 ($ in thousands) | Three Months Ended Mar 31, 2020 ($ in thousands) | | :--- | :--- | :--- | | Net Interest Income | 102,336 | 103,952 | | Provision for credit losses (PCL) | (10,501) | 20,581 | | Total Noninterest Income | 60,583 | 65,264 | | Total Noninterest Expense | 112,181 | 123,810 | | **Net Income** | **51,962** | **22,218** | | **Diluted EPS** | **$0.82** | **$0.35** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income was **$36.5 million** for the three months ended March 31, 2021, a decrease from **$53.5 million** in the prior year period, primarily due to a **$15.5 million** other comprehensive loss from net unrealized losses on available-for-sale securities[15](index=15&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) - Total shareholders' equity increased from **$1.741 billion** at January 1, 2021, to **$1.760 billion** at March 31, 2021, driven by **$52.0 million** net income, partially offset by **$15.5 million** other comprehensive loss and **$14.7 million** common stock dividends[18](index=18&type=chunk) - The company repurchased and retired **144,981 shares** of common stock for **$4.2 million** during the first quarter of 2021[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (Unaudited) | Activity | Three Months Ended Mar 31, 2021 ($ in thousands) | Three Months Ended Mar 31, 2020 ($ in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 83,343 | (79,163) | | Net cash from investing activities | (567,776) | (327,553) | | Net cash from financing activities | 306,470 | 452,141 | | **Net change in cash and cash equivalents** | **(177,963)** | **45,425** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies and methodologies used to prepare the financial statements, covering business operations, COVID-19 impact, portfolio composition, and regulatory capital [Note 1 – Business and Basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%93%20Business%2C%20Basis%20of%20Financial%20Statement%20Presentation%20and%20Principles%20of%20Consolidation) Trustmark operates as a bank holding company across five states, with financial statements prepared under U.S. GAAP, detailing the impact of COVID-19 and PPP loan participation - Trustmark operates as a financial services organization with **181 offices** across Alabama, Florida, Mississippi, Tennessee, and Texas as of March 31, 2021[26](index=26&type=chunk) - The COVID-19 pandemic significantly impacted industries served by Trustmark, including restaurants, hotels, retail, and energy, potentially affecting expected credit loss estimates[30](index=30&type=chunk)[31](index=31&type=chunk) - In Q1 2021, Trustmark originated **4,774 PPP loans** totaling **$301.5 million** (net of fees), with **$679.7 million** outstanding as of March 31, 2021, for which no ACL was estimated due to SBA guarantees[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 2 – Securities](index=11&type=section&id=Note%202%20%E2%80%93%20Securities%20Available%20for%20Sale%20and%20Held%20to%20Maturity) This note details Trustmark's high-quality securities portfolio, comprising available-for-sale and held-to-maturity categories, with no credit losses recognized as of March 31, 2021 Securities Portfolio Summary (March 31, 2021) | Category | Amortized Cost ($ in thousands) | Estimated Fair Value ($ in thousands) | | :--- | :--- | :--- | | Securities Available for Sale | 2,327,434 | 2,337,676 | | Securities Held to Maturity | 493,738 | 515,296 | - No credit loss was recognized on available-for-sale or held-to-maturity securities as of March 31, 2021, as no credit loss triggers were identified or expected losses were immaterial[40](index=40&type=chunk)[42](index=42&type=chunk) - Unrealized losses of **$17.1 million** in the securities portfolio as of March 31, 2021, are due to market interest rate increases, not credit quality issues, with no intent to sell before cost recovery[46](index=46&type=chunk) [Note 3 – Loans and Allowance for Credit Losses](index=15&type=section&id=Note%203%20%E2%80%93%20LHFI%20and%20Allowance%20for%20Credit%20Losses%2C%20LHFI) This note provides a comprehensive overview of Trustmark's Loans Held for Investment (LHFI) portfolio and its Allowance for Credit Losses (ACL), totaling **$9.98 billion** and **$109.2 million** respectively as of March 31, 2021 LHFI Composition | Loan Category | March 31, 2021 ($ in thousands) | December 31, 2020 ($ in thousands) | | :--- | :--- | :--- | | Loans secured by real estate | 4,986,834 | 4,813,778 | | Other loans secured by real estate | 2,032,236 | 2,011,383 | | Commercial and industrial loans | 1,323,277 | 1,309,078 | | Consumer loans | 155,356 | 164,386 | | State and other political subdivision loans | 1,036,694 | 1,000,776 | | Other commercial loans | 449,307 | 525,123 | | **Total LHFI** | **9,983,704** | **9,824,524** | - Total nonaccrual LHFI was **$63.5 million** at March 31, 2021, a slight increase from **$63.1 million** at December 31, 2020, with **$2.6 million** in loans past due 90 days or more and still accruing interest[54](index=54&type=chunk) Allowance for Credit Losses (ACL) Roll-Forward | ACL Activity ($ in thousands) | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Balance at beginning of period | 117,306 | 84,277 | | Provision for credit losses (PCL) | (10,501) | 20,581 | | Net (charge-offs) recoveries | 2,386 | (3,077) | | **Balance at end of period** | **109,191** | **100,564** | - The negative provision for credit losses in Q1 2021 was primarily due to improvements in macroeconomic forecasting variables, such as unemployment rates and GDP[106](index=106&type=chunk) [Note 12 – Contingencies](index=43&type=section&id=Note%2012%20%E2%80%93%20Contingencies) This note outlines Trustmark's off-balance sheet credit exposures, including **$4.71 billion** in unused commitments, and ongoing legal proceedings related to the Stanford Financial Group, where a loss is not deemed probable - Trustmark had unused commitments to extend credit of **$4.711 billion** and letters of credit exposure of **$107.5 million** as of March 31, 2021[136](index=136&type=chunk)[137](index=137&type=chunk) - The ACL on off-balance sheet credit exposures decreased to **$29.2 million** at March 31, 2021, resulting in a negative credit loss expense of **$9.4 million** for the quarter due to improved macroeconomic factors[140](index=140&type=chunk) - Trustmark's subsidiary, TNB, is vigorously contesting lawsuits related to the Stanford Financial Group collapse, believing a loss is not probable or reasonably estimable[142](index=142&type=chunk)[158](index=158&type=chunk) [Note 15 – Shareholders' Equity](index=47&type=section&id=Note%2015%20%E2%80%93%20Shareholders%27%20Equity) This note details Trustmark's strong regulatory capital position, with all ratios exceeding well-capitalized standards, and the resumption of its stock repurchase program in Q1 2021 Trustmark Corporation Regulatory Capital Ratios (Actual) | Ratio | March 31, 2021 | Minimum Requirement | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 11.71% | 7.00% | | Tier 1 Capital | 12.20% | 8.50% | | Total Capital | 14.07% | 10.50% | | Tier 1 Leverage | 9.11% | 4.00% | - Trustmark resumed its stock repurchase program in January 2021, repurchasing approximately **145,000 shares** for **$4.2 million** in Q1 2021 under its **$100 million** authorization[165](index=165&type=chunk) [Note 18 – Segment Information](index=56&type=section&id=Note%2018%20%E2%80%93%20Segment%20Information) Trustmark operates in General Banking, Wealth Management, and Insurance segments, with General Banking being the largest net income contributor at **$48.5 million** in Q1 2021, driven by a negative provision for credit losses Net Income by Segment (Three Months Ended March 31) | Segment | 2021 ($ in thousands) | 2020 ($ in thousands) | | :--- | :--- | :--- | | General Banking | 48,539 | 20,664 | | Wealth Management | 1,126 | (527) | | Insurance | 2,297 | 2,081 | | **Consolidated Net Income** | **51,962** | **22,218** | [Management's Discussion and Analysis (MD&A)](index=59&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management provides a detailed analysis of Q1 2021 financial condition and results, highlighting loan and deposit growth, strong mortgage banking revenue, and a negative provision for credit losses due to improved economic outlook [Executive Overview](index=59&type=section&id=Executive%20Overview) Management highlights strong Q1 2021 performance with solid loan and deposit growth, robust mortgage banking revenue, and a negative provision for credit losses, while maintaining a solid capital position - Q1 2021 financial performance was strong, with LHFI growing by **$159.2 million** (**1.6%**) and deposits by **$334.7 million** (**2.4%**)[209](index=209&type=chunk) - The company has significant exposure to COVID-19 stressed industries, including Restaurants (**$105.0 million**), Hotels (**$396.0 million**), Retail CRE (**$453.0 million**), and Energy (**$106.4 million**) as of March 31, 2021[217](index=217&type=chunk)[222](index=222&type=chunk) - As of March 31, 2021, Trustmark had **7,456 outstanding PPP loans** totaling **$679.7 million** (net of fees), with **$239.2 million** in PPP loans forgiven by the SBA during Q1 2021[221](index=221&type=chunk) [Results of Operations](index=62&type=section&id=Results%20of%20Operations) Net income for Q1 2021 significantly increased to **$52.0 million** (**$0.82 EPS**), primarily driven by a positive swing in the provision for credit losses and decreased noninterest expense, despite a slight revenue decrease - Net interest income decreased **1.6%** year-over-year to **$102.3 million**, as lower yields on loans and securities were not fully offset by reduced interest expense on deposits[225](index=225&type=chunk) - Noninterest income fell **7.2%** year-over-year to **$60.6 million**, mainly due to a **$6.7 million** decrease in mortgage banking income and a **$2.7 million** drop in service charges, partially offset by a **$4.1 million** increase in bank card and other fees[226](index=226&type=chunk) - Noninterest expense decreased **9.4%** year-over-year to **$112.2 million**, largely due to a negative **$9.4 million** credit loss expense for off-balance sheet exposures, compared to a **$6.8 million** expense in the prior year[227](index=227&type=chunk) - The provision for credit losses was a negative **$10.5 million** in Q1 2021, compared to a **$20.6 million** expense in Q1 2020, reflecting improvements in the macroeconomic forecast[228](index=228&type=chunk) [Financial Condition](index=73&type=section&id=Financial%20Condition) As of March 31, 2021, total assets were **$16.88 billion**, with growth in high-quality securities and loans held for investment, while the Allowance for Credit Losses decreased due to improved economic forecasts - The securities portfolio is high quality, with **98.0%** invested in GSE-backed obligations and other Aaa-rated securities as of March 31, 2021[283](index=283&type=chunk) - LHFI increased by **$159.2 million** (**1.6%**) during Q1 2021, primarily driven by net growth in loans secured by real estate across all five market regions[290](index=290&type=chunk) - The ACL on LHFI decreased by **$8.1 million** to **$109.2 million** at March 31, 2021, representing **1.09%** of total LHFI, down from **1.19%** at year-end 2020[310](index=310&type=chunk) - Nonperforming assets were stable at **$74.2 million**, or **0.71%** of total loans and ORE, at March 31, 2021[230](index=230&type=chunk)[318](index=318&type=chunk) [Capital Resources](index=84&type=section&id=Capital%20Resources) Trustmark's capital position remained strong, with total shareholders' equity increasing to **$1.76 billion** in Q1 2021, exceeding all regulatory capital requirements and supporting continued dividends and share repurchases - Total shareholders' equity increased to **$1.760 billion** at March 31, 2021, up **1.1%** from year-end 2020[332](index=332&type=chunk) - Trustmark and its bank subsidiary, TNB, exceeded all minimum capital standards to be considered well-capitalized as of March 31, 2021[333](index=333&type=chunk) - The company declared a quarterly cash dividend of **$0.23 per common share** for Q1 2021, consistent with the prior year[337](index=337&type=chunk) [Liquidity](index=85&type=section&id=Liquidity) Trustmark maintains a strong liquidity position, primarily funded by deposits, with significant access to external borrowing capacity from FHLB and the Federal Reserve Discount Window - Deposits are the primary funding source, with average deposits totaling **$14.138 billion** for Q1 2021[342](index=342&type=chunk) - As of March 31, 2021, Trustmark had significant available liquidity, including **$2.750 billion** in additional FHLB borrowing capacity and **$872.3 million** in collateral capacity at the Federal Reserve Discount Window[344](index=344&type=chunk)[347](index=347&type=chunk) [Asset/Liability Management](index=86&type=section&id=Asset%2FLiability%20Management) Trustmark actively manages interest rate risk, with an asset-sensitive balance sheet projecting a **12.8%** NII increase from a 100 basis point rate hike, and uses derivatives to hedge mortgage banking risks while managing the LIBOR transition - The company is managing the transition away from LIBOR, scheduled to end for most term rates on June 30, 2023, through an internal LIBOR Transition Working Group[353](index=353&type=chunk) Estimated Change in Net Interest Income (One-Year Horizon) | Change in Interest Rates | 2021 | 2020 | | :--- | :--- | :--- | | +200 basis points | 24.4% | 5.9% | | +100 basis points | 12.8% | 3.0% | | -100 basis points | -8.4% | -10.9% | - Trustmark uses exchange-traded derivatives to economically hedge changes in the fair value of its Mortgage Servicing Rights (MSR), with a notional amount of **$379.0 million** at March 31, 2021[357](index=357&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=90&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section references Note 12 for details on legal proceedings, where Trustmark believes a loss in any pending case is not probable or reasonably estimable, and no material adverse effect on financial condition is expected - Trustmark believes that a loss in any pending legal proceeding is not probable and a reasonable estimate cannot be made at this time, with no expected material adverse effect on its financial condition[381](index=381&type=chunk) [Risk Factors](index=90&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes in risk factors have been reported since Trustmark's 2020 Annual Report on Form 10-K - No material changes in risk factors were reported since the company's 2020 Annual Report[382](index=382&type=chunk) [Share Repurchases](index=90&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details Trustmark's stock repurchase activity, which resumed in January 2021 under a **$100 million** authorization, with **144,981 shares** repurchased during Q1 Common Stock Purchases (Q1 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | Value of Shares Remaining for Purchase ($ in thousands) | | :--- | :--- | :--- | :--- | | Jan 2021 | 16,000 | $27.84 | 99,555 | | Feb 2021 | 128,981 | $28.98 | 95,817 | | Mar 2021 | 0 | — | 95,817 | | **Total** | **144,981** | | **95,817** |

Trustmark Corporation (NASDAQ:TRMK) Q1 2021 Earnings Conference Call April 28, 2021 9:30 AM ET Company Participants Joey Rein - Director, Investor Relations Duane Dewey - President & Chief Executive Officer Barry Harvey - Chief Credit Officer Tom Owens - EVP & CFO Conference Call Participants Jennifer Demba - Truist Securities Catherine Mealor - KBW Brad Milsaps - Piper Sandler Carl Doirin - Raymond James Operator Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's First Quarter Earni ...

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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, 2020 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) MISSISSIPPI 64-0471500 (State or other jurisdiction of incorporation or organization) 248 East C ...

Trustmark Corporation (NASDAQ:TRMK) Q4 2020 Earnings Conference Call January 27, 2021 9:30 AM ET Company Participants Joey Rein - Director, Investor Relations Jerry Host - Executive Chairman Duane Dewey - President & Chief Executive Officer Barry Harvey - Chief Credit Officer Tom Owens - Bank Treasurer Louis Greer - Chief Financial Officer Conference Call Participants Jennifer Demba - Truist Securities Brad Milsaps - Piper Sandler Catherine Mealor - KBW Joe Yanchunis - Raymond Operator Good morning, ladies ...

Fourth Quarter & Fiscal Year 2020 Financial Results January 26, 2021 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 ...