Performance Reflects Continued Balance Sheet Growth and Strong Credit Quality
Trustmark Corporation (Nasdaq:TRMK) reported net income of $52.0 million in the first quarter of 2021, representing diluted earnings per share of $0.82. Net income in the first quarter produced a return on average tangible equity of 15.56% and a return on average assets of 1.26%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2021, to shareholders of record on June 1, 2021.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210427006023/en/
Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/52418458/en
First Quarter Highlights
- Supported local businesses by originating 4,774 loans totaling $301.5 million (net of $16.5 million in deferred fees and costs) from the SBA’s Paycheck Protection Program (PPP) during the quarter
- Mortgage loan production totaled $766.6 million, down 2.8% from the prior quarter and an increase of 67.7% from levels one year earlier
- Provision for credit losses totaled a negative $10.5 million due to improved credit loss expectations
Duane A. Dewey, President and CEO, stated, “Our first quarter financial performance reflects solid loan and deposit growth, as well as continued increases in our insurance and wealth management businesses. Our mortgage banking revenue remained strong following record-setting levels in the prior quarter. Improvement in the economic outlook resulted in negative provision and expense for credit losses, which also contributed to earnings. We continue to focus on efficiency enhancements throughout the organization, including investments in technology to better serve customers as well as rationalization of the branch network. Trustmark remains well-positioned to serve and expand our customer base and create long-term value for our shareholders.”
Balance Sheet Management
- Loans held for investment (HFI) totaled $10.0 billion, up 1.6% from the prior quarter and 4.3% year-over-year
- Deposits totaled $14.4 billion, an increase of 2.4% linked-quarter and 24.3% year-over-year
- Maintained strong capital position with CET1 ratio of 11.71% and total risk-based capital ratio of 14.07%
Loans HFI totaled $10.0 billion at March 31, 2021, reflecting an increase of $159.2 million, or 1.6%, linked-quarter and $415.8 million, or 4.3%, year-over-year. The linked-quarter growth reflects increases in other real estate secured loans and loans secured by nonfarm, nonresidential properties, which were principally the result of the migration of construction loans as projects were completed. Trustmark’s loan portfolio is well-diversified by loan type and geography.
Deposits totaled $14.4 billion at March 31, 2021, up $334.7 million, or 2.4%, from the prior quarter and $2.8 billion, or 24.3%, year-over-year. Trustmark maintains a strong liquidity position as loans HFI represented 69.4% of total deposits at March 31, 2021. Noninterest-bearing deposits represented 32.7% of total deposits at the end of the first quarter, compared to 31.0% in the prior quarter. Interest-bearing deposit costs totaled 0.22% for the first quarter, a decrease of 5 basis points from the prior quarter. The total cost of interest-bearing liabilities was 0.28% for the first quarter of 2021, a decrease of 2 basis points from the prior quarter.
During the first quarter, Trustmark repurchased $4.2 million, or approximately 145 thousand of its common shares in open market transactions. At March 31, 2021, Trustmark had $95.8 million in remaining authority under its existing stock repurchase program, which expires December 31, 2021. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At March 31, 2021, Trustmark’s tangible equity to tangible assets ratio was 8.30%, while its total risk-based capital ratio was 14.07%. Tangible book value per share was $21.59 at March 31, 2021, up 8.4% year-over-year.
Credit Quality
- Allowance for credit losses (ACL) represented 437.08% of nonaccrual loans, excluding individually evaluated loans, at March 31, 2021
- Recoveries exceeded charge-offs by $2.4 million in the first quarter
- Loans remaining under a COVID-19 related concession represented approximately 28 basis points of loans HFI at March 31, 2021
Nonaccrual loans totaled $63.5 million at March 31, 2021, up $386 thousand from the prior quarter and $10.5 million year-over-year. Other real estate totaled $10.7 million, reflecting a $1.0 million decrease from the prior quarter and a decline of $14.2 million year-over-year. Collectively, nonperforming assets totaled $74.2 million at March 31, 2021, reflecting a linked-quarter decrease of $614 thousand and a year-over-year decrease of $3.7 million.
The provision for credit losses was a negative $10.5 million in the first quarter. Negative provisioning was primarily driven by decreases in quantitative reserves as a result of an improving economic forecast.
Allocation of Trustmark’s $109.2 million allowance for credit losses on loans HFI represented 1.13% of commercial loans and 0.95% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.09% at March 31, 2021. Management believes the level of the ACL is commensurate with the present risk in the loan portfolio.
Revenue Generation
- Mortgage banking revenue totaled $20.8 million in the first quarter, reflecting tighter spreads and reduced gains on sale of mortgage loans in the secondary market
- Insurance commissions increased 22.1% from the prior quarter and wealth management revenue rose 7.4% over the same period
Revenue in the first quarter totaled $162.9 million, down 8.2% from the prior quarter and 3.7% from the same quarter in the prior year. The linked-quarter decrease primarily reflects lower interest income and fees from PPP loans and loans HFI and lower net gains on sales of mortgage loans.
Net interest income (FTE) in the first quarter totaled $105.2 million, resulting in a net interest margin of 2.81%, down 34 basis points from the prior quarter. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.99% for the first quarter, a decrease of 10 basis points when compared to the prior quarter. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.
Noninterest income in the first quarter totaled $60.6 million, a decrease of $5.5 million from the prior quarter and $4.7 million year-over-year. The linked-quarter increases in insurance, wealth management and bank card revenue were more than offset by declines in mortgage banking revenue and service charges on deposit accounts. Mortgage loan production in the first quarter totaled $766.6 million, down 2.8% from the record level in the prior quarter and an increase of 67.7% year-over-year. Mortgage banking revenue totaled $20.8 million in the first quarter, a decrease of $7.4 million from the prior quarter and $6.7 million year-over-year. The linked-quarter decline is principally attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market.
Insurance revenue totaled $12.4 million in the first quarter, up 22.1%, or $2.2 million, from the fourth quarter of 2020 and 7.7%, or $895 thousand, year-over-year. The linked-quarter increase primarily reflects growth in property and casualty commissions. Wealth management revenue in the first quarter totaled $8.4 million, an increase of $578 thousand, or 7.4%, from the prior quarter and relatively unchanged year-over-year. The linked-quarter growth reflects both higher trust management fees and brokerage and investment services revenue.
Bank card and other fees increased $365 thousand, or 4.0%, from the prior quarter and $4.1 million, or 76.9%, year-over-year, reflecting higher customer derivative revenue. Service charges on deposit accounts decreased $927 thousand, or 11.2%, from the prior quarter and $2.7 million, or 26.7%, year-over-year. The decline is due largely to reduced NSF/OD occurrences attributable in part to stimulus programs to address the COVID-19 pandemic.
Noninterest Expense
- Noninterest expense totaled $112.2 million in first quarter, down 5.6% from the prior quarter
- Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses, and credit losses for off-balance sheet credit exposures, increased $629 thousand, or 0.5%, from the prior quarter; please refer to the Consolidated Financial Information, Footnote 8– Non-GAAP Financial Measures
- Continued to realign delivery channels to reflect changing customer preferences
Adjusted noninterest expense in the first quarter was $120.2 million, up $629 thousand, or 0.5%, from the prior quarter. Salaries and employee benefits increased $1.5 million linked-quarter principally due to payroll taxes and increases for performance-based commissions. Services and fees increased $157 thousand and net occupancy-premises expense grew $179 thousand during the first quarter compared to the prior quarter.
Credit loss expense related to off-balance sheet credit exposures was a negative $9.4 million in the first quarter, reflecting the improvement of the macroeconomic factors used to determine the necessary reserves for off-balance sheet credit exposures. Other real estate expense, net totaled $324 thousand for the first quarter compared to a negative $812 thousand for the fourth quarter of 2020, reflecting lower net gains on sale of other real estate.
Trustmark continued to invest in technology to enhance efficiency. Digital transformation initiatives, including a completely redesigned, state-of-the-art website to promote engagement and enhance the customer experience, position Trustmark for additional growth. During the first quarter, Trustmark continued to realign delivery channels and closed seven offices, reflecting changing customer preferences and the continued migration to mobile and digital banking channels. Additionally, two new offices were opened, one each in the Memphis, TN MSA and the Jackson, MS MSA. Each of these offices features a design that integrates my Teller ® interactive teller machine technology as well as provides enhanced areas for customer interaction.
“Looking forward, Trustmark will continue to focus upon efficiency, growth and innovation opportunities while building upon our solid risk management processes, corporate culture and core values. We will continue to optimize delivery channels and introduce technology to enhance growth and efficiency opportunities. We will provide the services and advice our customers have come to expect while building long-term value for our shareholders,” said Dewey.
Additional Information
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 28, 2021 at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com . A replay of the conference call will also be available through Wednesday, May 12, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10153927.
Trustmark is a financial services company providing banking and financial solutions through 181 offices in Alabama, Florida, Mississippi, Tennessee and Texas.
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 or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.
Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission (SEC).
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
|
Linked Quarter |
|
Year over Year |
| QUARTERLY AVERAGE BALANCES |
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
| Securities AFS-taxable |
$
|
2,098,089
|
|
|
$
|
1,902,162
|
|
|
$
|
1,620,422
|
|
|
$
|
195,927
|
|
|
10.3
|
%
|
|
$
|
477,667
|
|
|
29.5
|
%
|
| Securities AFS-nontaxable |
|
5,190
|
|
|
|
5,206
|
|
|
|
22,056
|
|
|
|
(16
|
)
|
|
-0.3
|
%
|
|
|
(16,866
|
)
|
|
-76.5
|
%
|
| Securities HTM-taxable |
|
489,260
|
|
|
|
550,563
|
|
|
|
694,740
|
|
|
|
(61,303
|
)
|
|
-11.1
|
%
|
|
|
(205,480
|
)
|
|
-29.6
|
%
|
| Securities HTM-nontaxable |
|
24,070
|
|
|
|
24,752
|
|
|
|
25,673
|
|
|
|
(682
|
)
|
|
-2.8
|
%
|
|
|
(1,603
|
)
|
|
-6.2
|
%
|
| Total securities |
|
2,616,609
|
|
|
|
2,482,683
|
|
|
|
2,362,891
|
|
|
|
133,926
|
|
|
5.4
|
%
|
|
|
253,718
|
|
|
10.7
|
%
|
| Paycheck protection program loans (PPP) |
|
598,139
|
|
|
|
875,098
|
|
|
|
—
|
|
|
|
(276,959
|
)
|
|
-31.6
|
%
|
|
|
598,139
|
|
|
n/m
|
|
| Loans (includes loans held for sale) |
|
10,316,319
|
|
|
|
10,231,671
|
|
|
|
9,678,174
|
|
|
|
84,648
|
|
|
0.8
|
%
|
|
|
638,145
|
|
|
6.6
|
%
|
| Fed funds sold and reverse repurchases |
|
136
|
|
|
|
303
|
|
|
|
164
|
|
|
|
(167
|
)
|
|
-55.1
|
%
|
|
|
(28
|
)
|
|
-17.1
|
%
|
| Other earning assets |
|
1,667,906
|
|
|
|
860,540
|
|
|
|
187,327
|
|
|
|
807,366
|
|
|
93.8
|
%
|
|
|
1,480,579
|
|
|
n/m
|
|
| Total earning assets |
|
15,199,109
|
|
|
|
14,450,295
|
|
|
|
12,228,556
|
|
|
|
748,814
|
|
|
5.2
|
%
|
|
|
2,970,553
|
|
|
24.3
|
%
|
Allowance for credit losses (ACL), loans held
for investment (LHFI) |
|
(119,557
|
)
|
|
|
(124,088
|
)
|
|
|
(85,015
|
)
|
|
|
4,531
|
|
|
3.7
|
%
|
|
|
(34,542
|
)
|
|
-40.6
|
%
|
| Other assets |
|
1,601,250
|
|
|
|
1,620,694
|
|
|
|
1,498,725
|
|
|
|
(19,444
|
)
|
|
-1.2
|
%
|
|
|
102,525
|
|
|
6.8
|
%
|
| Total assets |
$
|
16,680,802
|
|
|
$
|
15,946,901
|
|
|
$
|
13,642,266
|
|
|
$
|
733,901
|
|
|
4.6
|
%
|
|
$
|
3,038,536
|
|
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand deposits |
$
|
3,743,651
|
|
|
$
|
3,649,590
|
|
|
$
|
3,184,134
|
|
|
$
|
94,061
|
|
|
2.6
|
%
|
|
$
|
559,517
|
|
|
17.6
|
%
|
| Savings deposits |
|
4,659,037
|
|
|
|
4,350,783
|
|
|
|
3,646,936
|
|
|
|
308,254
|
|
|
7.1
|
%
|
|
|
1,012,101
|
|
|
27.8
|
%
|
| Time deposits |
|
1,371,830
|
|
|
|
1,436,677
|
|
|
|
1,617,307
|
|
|
|
(64,847
|
)
|
|
-4.5
|
%
|
|
|
(245,477
|
)
|
|
-15.2
|
%
|
| Total interest-bearing deposits |
|
9,774,518
|
|
|
|
9,437,050
|
|
|
|
8,448,377
|
|
|
|
337,468
|
|
|
3.6
|
%
|
|
|
1,326,141
|
|
|
15.7
|
%
|
| Fed funds purchased and repurchases |
|
166,909
|
|
|
|
170,474
|
|
|
|
247,513
|
|
|
|
(3,565
|
)
|
|
-2.1
|
%
|
|
|
(80,604
|
)
|
|
-32.6
|
%
|
| Other borrowings |
|
166,926
|
|
|
|
173,525
|
|
|
|
85,279
|
|
|
|
(6,599
|
)
|
|
-3.8
|
%
|
|
|
81,647
|
|
|
95.7
|
%
|
| Subordinated notes |
|
122,875
|
|
|
|
42,828
|
|
|
|
—
|
|
|
|
80,047
|
|
|
n/m
|
|
|
|
122,875
|
|
|
n/m
|
|
| Junior subordinated debt securities |
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
| Total interest-bearing liabilities |
|
10,293,084
|
|
|
|
9,885,733
|
|
|
|
8,843,025
|
|
|
|
407,351
|
|
|
4.1
|
%
|
|
|
1,450,059
|
|
|
16.4
|
%
|
| Noninterest-bearing deposits |
|
4,363,559
|
|
|
|
4,100,849
|
|
|
|
2,910,951
|
|
|
|
262,710
|
|
|
6.4
|
%
|
|
|
1,452,608
|
|
|
49.9
|
%
|
| Other liabilities |
|
264,808
|
|
|
|
235,284
|
|
|
|
248,220
|
|
|
|
29,524
|
|
|
12.5
|
%
|
|
|
16,588
|
|
|
6.7
|
%
|
| Total liabilities |
|
14,921,451
|
|
|
|
14,221,866
|
|
|
|
12,002,196
|
|
|
|
699,585
|
|
|
4.9
|
%
|
|
|
2,919,255
|
|
|
24.3
|
%
|
| Shareholders' equity |
|
1,759,351
|
|
|
|
1,725,035
|
|
|
|
1,640,070
|
|
|
|
34,316
|
|
|
2.0
|
%
|
|
|
119,281
|
|
|
7.3
|
%
|
| Total liabilities and equity |
$
|
16,680,802
|
|
|
$
|
15,946,901
|
|
|
$
|
13,642,266
|
|
|
$
|
733,901
|
|
|
4.6
|
%
|
|
$
|
3,038,536
|
|
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| n/m - percentage changes greater than +/- 100% are considered not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
Linked Quarter |
|
Year over Year |
| PERIOD END BALANCES |
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
| Cash and due from banks |
$
|
1,774,541
|
|
|
$
|
1,952,504
|
|
|
$
|
404,341
|
|
|
$
|
(177,963
|
)
|
|
-9.1
|
%
|
|
$
|
1,370,200
|
|
|
n/m
|
|
| Fed funds sold and reverse repurchases |
|
—
|
|
|
|
50
|
|
|
|
2,000
|
|
|
|
(50
|
)
|
|
-100.0
|
%
|
|
|
(2,000
|
)
|
|
-100.0
|
%
|
| Securities available for sale |
|
2,337,676
|
|
|
|
1,991,815
|
|
|
|
1,833,779
|
|
|
|
345,861
|
|
|
17.4
|
%
|
|
|
503,897
|
|
|
27.5
|
%
|
| Securities held to maturity |
|
493,738
|
|
|
|
538,072
|
|
|
|
704,276
|
|
|
|
(44,334
|
)
|
|
-8.2
|
%
|
|
|
(210,538
|
)
|
|
-29.9
|
%
|
| PPP loans |
|
679,725
|
|
|
|
610,134
|
|
|
|
—
|
|
|
|
69,591
|
|
|
11.4
|
%
|
|
|
679,725
|
|
|
n/m
|
|
| Loans held for sale (LHFS) |
|
412,999
|
|
|
|
446,951
|
|
|
|
325,389
|
|
|
|
(33,952
|
)
|
|
-7.6
|
%
|
|
|
87,610
|
|
|
26.9
|
%
|
| Loans held for investment (LHFI) |
|
9,983,704
|
|
|
|
9,824,524
|
|
|
|
9,567,920
|
|
|
|
159,180
|
|
|
1.6
|
%
|
|
|
415,784
|
|
|
4.3
|
%
|
| ACL LHFI |
|
(109,191
|
)
|
|
|
(117,306
|
)
|
|
|
(100,564
|
)
|
|
|
8,115
|
|
|
6.9
|
%
|
|
|
(8,627
|
)
|
|
-8.6
|
%
|
| Net LHFI |
|
9,874,513
|
|
|
|
9,707,218
|
|
|
|
9,467,356
|
|
|
|
167,295
|
|
|
1.7
|
%
|
|
|
407,157
|
|
|
4.3
|
%
|
| Premises and equipment, net |
|
199,098
|
|
|
|
194,278
|
|
|
|
190,179
|
|
|
|
4,820
|
|
|
2.5
|
%
|
|
|
8,919
|
|
|
4.7
|
%
|
| Mortgage servicing rights |
|
83,035
|
|
|
|
66,464
|
|
|
|
56,437
|
|
|
|
16,571
|
|
|
24.9
|
%
|
|
|
26,598
|
|
|
47.1
|
%
|
| Goodwill |
|
384,237
|
|
|
|
385,270
|
|
|
|
381,717
|
|
|
|
(1,033
|
)
|
|
-0.3
|
%
|
|
|
2,520
|
|
|
0.7
|
%
|
| Identifiable intangible assets |
|
6,724
|
|
|
|
7,390
|
|
|
|
7,537
|
|
|
|
(666
|
)
|
|
-9.0
|
%
|
|
|
(813
|
)
|
|
-10.8
|
%
|
| Other real estate |
|
10,651
|
|
|
|
11,651
|
|
|
|
24,847
|
|
|
|
(1,000
|
)
|
|
-8.6
|
%
|
|
|
(14,196
|
)
|
|
-57.1
|
%
|
| Operating lease right-of-use assets |
|
33,704
|
|
|
|
30,901
|
|
|
|
30,839
|
|
|
|
2,803
|
|
|
9.1
|
%
|
|
|
2,865
|
|
|
9.3
|
%
|
| Other assets |
|
587,672
|
|
|
|
609,142
|
|
|
|
591,132
|
|
|
|
(21,470
|
)
|
|
-3.5
|
%
|
|
|
(3,460
|
)
|
|
-0.6
|
%
|
| Total assets |
$
|
16,878,313
|
|
|
$
|
16,551,840
|
|
|
$
|
14,019,829
|
|
|
$
|
326,473
|
|
|
2.0
|
%
|
|
$
|
2,858,484
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing |
$
|
4,705,991
|
|
|
$
|
4,349,010
|
|
|
$
|
2,977,058
|
|
|
$
|
356,981
|
|
|
8.2
|
%
|
|
$
|
1,728,933
|
|
|
58.1
|
%
|
| Interest-bearing |
|
9,677,449
|
|
|
|
9,699,754
|
|
|
|
8,598,706
|
|
|
|
(22,305
|
)
|
|
-0.2
|
%
|
|
|
1,078,743
|
|
|
12.5
|
%
|
| Total deposits |
|
14,383,440
|
|
|
|
14,048,764
|
|
|
|
11,575,764
|
|
|
|
334,676
|
|
|
2.4
|
%
|
|
|
2,807,676
|
|
|
24.3
|
%
|
| Fed funds purchased and repurchases |
|
160,991
|
|
|
|
164,519
|
|
|
|
421,821
|
|
|
|
(3,528
|
)
|
|
-2.1
|
%
|
|
|
(260,830
|
)
|
|
-61.8
|
%
|
| Other borrowings |
|
145,994
|
|
|
|
168,252
|
|
|
|
84,230
|
|
|
|
(22,258
|
)
|
|
-13.2
|
%
|
|
|
61,764
|
|
|
73.3
|
%
|
| Subordinated notes |
|
122,877
|
|
|
|
122,921
|
|
|
|
—
|
|
|
|
(44
|
)
|
|
0.0
|
%
|
|
|
122,877
|
|
|
n/m
|
|
| Junior subordinated debt securities |
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
| ACL on off-balance sheet credit exposures |
|
29,205
|
|
|
|
38,572
|
|
|
|
36,421
|
|
|
|
(9,367
|
)
|
|
-24.3
|
%
|
|
|
(7,216
|
)
|
|
-19.8
|
%
|
| Operating lease liabilities |
|
35,389
|
|
|
|
32,290
|
|
|
|
32,055
|
|
|
|
3,099
|
|
|
9.6
|
%
|
|
|
3,334
|
|
|
10.4
|
%
|
| Other liabilities |
|
178,856
|
|
|
|
173,549
|
|
|
|
155,283
|
|
|
|
5,307
|
|
|
3.1
|
%
|
|
|
23,573
|
|
|
15.2
|
%
|
| Total liabilities |
|
15,118,608
|
|
|
|
14,810,723
|
|
|
|
12,367,430
|
|
|
|
307,885
|
|
|
2.1
|
%
|
|
|
2,751,178
|
|
|
22.2
|
%
|
| Common stock |
|
13,209
|
|
|
|
13,215
|
|
|
|
13,209
|
|
|
|
(6
|
)
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
| Capital surplus |
|
229,892
|
|
|
|
233,120
|
|
|
|
229,403
|
|
|
|
(3,228
|
)
|
|
-1.4
|
%
|
|
|
489
|
|
|
0.2
|
%
|
| Retained earnings |
|
1,533,110
|
|
|
|
1,495,833
|
|
|
|
1,402,089
|
|
|
|
37,277
|
|
|
2.5
|
%
|
|
|
131,021
|
|
|
9.3
|
%
|
Accum other comprehensive income (loss),
net of tax |
|
(16,506
|
)
|
|
|
(1,051
|
)
|
|
|
7,698
|
|
|
|
(15,455
|
)
|
|
n/m
|
|
|
|
(24,204
|
)
|
|
n/m
|
|
| Total shareholders' equity |
|
1,759,705
|
|
|
|
1,741,117
|
|
|
|
1,652,399
|
|
|
|
18,588
|
|
|
1.1
|
%
|
|
|
107,306
|
|
|
6.5
|
%
|
| Total liabilities and equity |
$
|
16,878,313
|
|
|
$
|
16,551,840
|
|
|
$
|
14,019,829
|
|
|
$
|
326,473
|
|
|
2.0
|
%
|
|
$
|
2,858,484
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| n/m - percentage changes greater than +/- 100% are considered not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands except per share data) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Linked Quarter |
|
Year over Year |
| INCOME STATEMENTS |
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
| Interest and fees on LHFS & LHFI-FTE |
$
|
93,394
|
|
|
$
|
96,453
|
|
|
$
|
109,357
|
|
$
|
(3,059
|
)
|
|
-3.2
|
%
|
|
$
|
(15,963
|
)
|
|
-14.6
|
%
|
| Interest and fees on PPP loans |
|
9,241
|
|
|
|
14,870
|
|
|
|
—
|
|
|
(5,629
|
)
|
|
-37.9
|
%
|
|
|
9,241
|
|
|
n/m
|
|
| Interest on securities-taxable |
|
8,938
|
|
|
|
9,998
|
|
|
|
12,948
|
|
|
(1,060
|
)
|
|
-10.6
|
%
|
|
|
(4,010
|
)
|
|
-31.0
|
%
|
| Interest on securities-tax exempt-FTE |
|
290
|
|
|
|
293
|
|
|
|
457
|
|
|
(3
|
)
|
|
-1.0
|
%
|
|
|
(167
|
)
|
|
-36.5
|
%
|
| Interest on fed funds sold and reverse repurchases |
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
|
—
|
|
|
n/m
|
|
| Other interest income |
|
503
|
|
|
|
249
|
|
|
|
740
|
|
|
254
|
|
|
n/m
|
|
|
|
(237
|
)
|
|
-32.0
|
%
|
| Total interest income-FTE |
|
112,366
|
|
|
|
121,863
|
|
|
|
123,502
|
|
|
(9,497
|
)
|
|
-7.8
|
%
|
|
|
(11,136
|
)
|
|
-9.0
|
%
|
| Interest on deposits |
|
5,223
|
|
|
|
6,363
|
|
|
|
14,957
|
|
|
(1,140
|
)
|
|
-17.9
|
%
|
|
|
(9,734
|
)
|
|
-65.1
|
%
|
| Interest on fed funds purchased and repurchases |
|
56
|
|
|
|
56
|
|
|
|
625
|
|
|
—
|
|
|
0.0
|
%
|
|
|
(569
|
)
|
|
-91.0
|
%
|
| Other interest expense |
|
1,857
|
|
|
|
1,127
|
|
|
|
860
|
|
|
730
|
|
|
64.8
|
%
|
|
|
997
|
|
|
n/m
|
|
| Total interest expense |
|
7,136
|
|
|
|
7,546
|
|
|
|
16,442
|
|
|
(410
|
)
|
|
-5.4
|
%
|
|
|
(9,306
|
)
|
|
-56.6
|
%
|
| Net interest income-FTE |
|
105,230
|
|
|
|
114,317
|
|
|
|
107,060
|
|
|
(9,087
|
)
|
|
-7.9
|
%
|
|
|
(1,830
|
)
|
|
-1.7
|
%
|
| Provision for credit losses, LHFI |
|
(10,501
|
)
|
|
|
(4,413
|
)
|
|
|
20,581
|
|
|
(6,088
|
)
|
|
n/m
|
|
|
|
(31,082
|
)
|
|
n/m
|
|
| Net interest income after provision-FTE |
|
115,731
|
|
|
|
118,730
|
|
|
|
86,479
|
|
|
(2,999
|
)
|
|
-2.5
|
%
|
|
|
29,252
|
|
|
33.8
|
%
|
| Service charges on deposit accounts |
|
7,356
|
|
|
|
8,283
|
|
|
|
10,032
|
|
|
(927
|
)
|
|
-11.2
|
%
|
|
|
(2,676
|
)
|
|
-26.7
|
%
|
| Bank card and other fees |
|
9,472
|
|
|
|
9,107
|
|
|
|
5,355
|
|
|
365
|
|
|
4.0
|
%
|
|
|
4,117
|
|
|
76.9
|
%
|
| Mortgage banking, net |
|
20,804
|
|
|
|
28,155
|
|
|
|
27,483
|
|
|
(7,351
|
)
|
|
-26.1
|
%
|
|
|
(6,679
|
)
|
|
-24.3
|
%
|
| Insurance commissions |
|
12,445
|
|
|
|
10,196
|
|
|
|
11,550
|
|
|
2,249
|
|
|
22.1
|
%
|
|
|
895
|
|
|
7.7
|
%
|
| Wealth management |
|
8,416
|
|
|
|
7,838
|
|
|
|
8,537
|
|
|
578
|
|
|
7.4
|
%
|
|
|
(121
|
)
|
|
-1.4
|
%
|
| Other, net |
|
2,090
|
|
|
|
2,538
|
|
|
|
2,307
|
|
|
(448
|
)
|
|
-17.7
|
%
|
|
|
(217
|
)
|
|
-9.4
|
%
|
| Total noninterest income |
|
60,583
|
|
|
|
66,117
|
|
|
|
65,264
|
|
|
(5,534
|
)
|
|
-8.4
|
%
|
|
|
(4,681
|
)
|
|
-7.2
|
%
|
| Salaries and employee benefits |
|
71,162
|
|
|
|
69,660
|
|
|
|
69,148
|
|
|
1,502
|
|
|
2.2
|
%
|
|
|
2,014
|
|
|
2.9
|
%
|
| Services and fees |
|
22,484
|
|
|
|
22,327
|
|
|
|
19,930
|
|
|
157
|
|
|
0.7
|
%
|
|
|
2,554
|
|
|
12.8
|
%
|
| Net occupancy-premises |
|
6,795
|
|
|
|
6,616
|
|
|
|
6,286
|
|
|
179
|
|
|
2.7
|
%
|
|
|
509
|
|
|
8.1
|
%
|
| Equipment expense |
|
6,244
|
|
|
|
6,213
|
|
|
|
5,616
|
|
|
31
|
|
|
0.5
|
%
|
|
|
628
|
|
|
11.2
|
%
|
| Other real estate expense, net |
|
324
|
|
|
|
(812
|
)
|
|
|
1,294
|
|
|
1,136
|
|
|
n/m
|
|
|
|
(970
|
)
|
|
-75.0
|
%
|
Credit loss expense related to off-balance sheet
credit exposures |
|
(9,367
|
)
|
|
|
(1,087
|
)
|
|
|
6,783
|
|
|
(8,280
|
)
|
|
n/m
|
|
|
|
(16,150
|
)
|
|
n/m
|
|
| Other expense |
|
14,539
|
|
|
|
15,890
|
|
|
|
14,753
|
|
|
(1,351
|
)
|
|
-8.5
|
%
|
|
|
(214
|
)
|
|
-1.5
|
%
|
| Total noninterest expense |
|
112,181
|
|
|
|
118,807
|
|
|
|
123,810
|
|
|
(6,626
|
)
|
|
-5.6
|
%
|
|
|
(11,629
|
)
|
|
-9.4
|
%
|
| Income before income taxes and tax eq adj |
|
64,133
|
|
|
|
66,040
|
|
|
|
27,933
|
|
|
(1,907
|
)
|
|
-2.9
|
%
|
|
|
36,200
|
|
|
n/m
|
|
| Tax equivalent adjustment |
|
2,894
|
|
|
|
2,939
|
|
|
|
3,108
|
|
|
(45
|
)
|
|
-1.5
|
%
|
|
|
(214
|
)
|
|
-6.9
|
%
|
| Income before income taxes |
|
61,239
|
|
|
|
63,101
|
|
|
|
24,825
|
|
|
(1,862
|
)
|
|
-3.0
|
%
|
|
|
36,414
|
|
|
n/m
|
|
| Income taxes |
|
9,277
|
|
|
|
11,884
|
|
|
|
2,607
|
|
|
(2,607
|
)
|
|
-21.9
|
%
|
|
|
6,670
|
|
|
n/m
|
|
| Net income |
$
|
51,962
|
|
|
$
|
51,217
|
|
|
$
|
22,218
|
|
$
|
745
|
|
|
1.5
|
%
|
|
$
|
29,744
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share - basic |
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
0.35
|
|
$
|
0.01
|
|
|
1.2
|
%
|
|
$
|
0.47
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share - diluted |
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
0.35
|
|
$
|
0.01
|
|
|
1.2
|
%
|
|
$
|
0.47
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends per share |
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
63,395,911
|
|
|
|
63,424,219
|
|
|
|
63,756,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
63,562,503
|
|
|
|
63,616,767
|
|
|
|
63,913,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period end shares outstanding |
|
63,394,522
|
|
|
|
63,424,526
|
|
|
|
63,396,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| n/m - percentage changes greater than +/- 100% are considered not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands) |
| (unaudited) |
|
|
Quarter Ended |
|
Linked Quarter |
|
Year over Year |
| NONPERFORMING ASSETS (1) |
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
| Nonaccrual LHFI |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama |
$
|
9,161
|
|
|
$
|
9,221
|
|
|
$
|
4,769
|
|
|
$
|
(60
|
)
|
|
-0.7
|
%
|
|
$
|
4,392
|
|
|
92.1
|
%
|
| Florida |
|
607
|
|
|
|
572
|
|
|
|
254
|
|
|
|
35
|
|
|
6.1
|
%
|
|
|
353
|
|
|
n/m
|
|
| Mississippi (2) |
|
35,534
|
|
|
|
35,015
|
|
|
|
40,815
|
|
|
|
519
|
|
|
1.5
|
%
|
|
|
(5,281
|
)
|
|
-12.9
|
%
|
| Tennessee (3) |
|
12,451
|
|
|
|
12,572
|
|
|
|
6,153
|
|
|
|
(121
|
)
|
|
-1.0
|
%
|
|
|
6,298
|
|
|
n/m
|
|
| Texas |
|
5,761
|
|
|
|
5,748
|
|
|
|
1,001
|
|
|
|
13
|
|
|
0.2
|
%
|
|
|
4,760
|
|
|
n/m
|
|
| Total nonaccrual LHFI |
|
63,514
|
|
|
|
63,128
|
|
|
|
52,992
|
|
|
|
386
|
|
|
0.6
|
%
|
|
|
10,522
|
|
|
19.9
|
%
|
| Other real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
3,085
|
|
|
|
3,271
|
|
|
|
6,229
|
|
|
|
(186
|
)
|
|
-5.7
|
%
|
|
|
(3,144
|
)
|
|
-50.5
|
%
|
| Florida |
|
—
|
|
|
|
—
|
|
|
|
4,835
|
|
|
|
—
|
|
|
n/m
|
|
|
|
(4,835
|
)
|
|
-100.0
|
%
|
| Mississippi (2) |
|
7,566
|
|
|
|
8,330
|
|
|
|
13,296
|
|
|
|
(764
|
)
|
|
-9.2
|
%
|
|
|
(5,730
|
)
|
|
-43.1
|
%
|
| Tennessee (3) |
|
—
|
|
|
|
50
|
|
|
|
487
|
|
|
|
(50
|
)
|
|
-100.0
|
%
|
|
|
(487
|
)
|
|
-100.0
|
%
|
| Texas |
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
n/m
|
|
|
|
—
|
|
|
n/m
|
|
| Total other real estate |
|
10,651
|
|
|
|
11,651
|
|
|
|
24,847
|
|
|
|
(1,000
|
)
|
|
-8.6
|
%
|
|
|
(14,196
|
)
|
|
-57.1
|
%
|
| Total nonperforming assets |
$
|
74,165
|
|
|
$
|
74,779
|
|
|
$
|
77,839
|
|
|
$
|
(614
|
)
|
|
-0.8
|
%
|
|
$
|
(3,674
|
)
|
|
-4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOANS PAST DUE OVER 90 DAYS (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| LHFI |
$
|
2,593
|
|
|
$
|
1,576
|
|
|
$
|
708
|
|
|
$
|
1,017
|
|
|
64.5
|
%
|
|
$
|
1,885
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LHFS-Guaranteed GNMA serviced loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (no obligation to repurchase) |
$
|
109,566
|
|
|
$
|
119,409
|
|
|
$
|
43,564
|
|
|
$
|
(9,843
|
)
|
|
-8.2
|
%
|
|
$
|
66,002
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Linked Quarter |
|
Year over Year |
| ACL LHFI (1) |
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
| Beginning Balance |
$
|
117,306
|
|
|
$
|
122,010
|
|
|
$
|
84,277
|
|
|
$
|
(4,704
|
)
|
|
-3.9
|
%
|
|
$
|
33,029
|
|
|
39.2
|
%
|
| CECL adoption adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| LHFI |
|
—
|
|
|
|
—
|
|
|
|
(3,039
|
)
|
|
|
—
|
|
|
n/m
|
|
|
|
3,039
|
|
|
100.0
|
%
|
| Acquired loan transfers |
|
—
|
|
|
|
—
|
|
|
|
1,822
|
|
|
|
—
|
|
|
n/m
|
|
|
|
(1,822
|
)
|
|
-100.0
|
%
|
| Provision for credit losses |
|
(10,501
|
)
|
|
|
(4,413
|
)
|
|
|
20,581
|
|
|
|
(6,088
|
)
|
|
n/m
|
|
|
|
(31,082
|
)
|
|
n/m
|
|
| Charge-offs |
|
(1,245
|
)
|
|
|
(2,797
|
)
|
|
|
(5,545
|
)
|
|
|
1,552
|
|
|
55.5
|
%
|
|
|
4,300
|
|
|
77.5
|
%
|
| Recoveries |
|
3,631
|
|
|
|
2,506
|
|
|
|
2,468
|
|
|
|
1,125
|
|
|
44.9
|
%
|
|
|
1,163
|
|
|
47.1
|
%
|
| Net (charge-offs) recoveries |
|
2,386
|
|
|
|
(291
|
)
|
|
|
(3,077
|
)
|
|
|
2,677
|
|
|
n/m
|
|
|
|
5,463
|
|
|
n/m
|
|
| Ending Balance |
$
|
109,191
|
|
|
$
|
117,306
|
|
|
$
|
100,564
|
|
|
$
|
(8,115
|
)
|
|
-6.9
|
%
|
|
$
|
8,627
|
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET (CHARGE-OFFS) RECOVERIES (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alabama |
$
|
102
|
|
|
$
|
(1,011
|
)
|
|
$
|
(1,080
|
)
|
|
$
|
1,113
|
|
|
n/m
|
|
|
$
|
1,182
|
|
|
n/m
|
|
| Florida |
|
30
|
|
|
|
66
|
|
|
|
64
|
|
|
|
(36
|
)
|
|
-54.5
|
%
|
|
|
(34
|
)
|
|
-53.1
|
%
|
| Mississippi (2) |
|
2,207
|
|
|
|
332
|
|
|
|
126
|
|
|
|
1,875
|
|
|
n/m
|
|
|
|
2,081
|
|
|
n/m
|
|
| Tennessee (3) |
|
47
|
|
|
|
303
|
|
|
|
(2,186
|
)
|
|
|
(256
|
)
|
|
-84.5
|
%
|
|
|
2,233
|
|
|
n/m
|
|
| Texas |
|
—
|
|
|
|
19
|
|
|
|
(1
|
)
|
|
|
(19
|
)
|
|
-100.0
|
%
|
|
|
1
|
|
|
100.0
|
%
|
| Total net (charge-offs) recoveries |
$
|
2,386
|
|
|
$
|
(291
|
)
|
|
$
|
(3,077
|
)
|
|
$
|
2,677
|
|
|
n/m
|
|
|
$
|
5,463
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes PPP loans. |
| (2) Mississippi includes Central and Southern Mississippi Regions. |
| (3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. |
|
|
| n/m - percentage changes greater than +/- 100% are considered not meaningful |
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands) |
| (unaudited) |
|
|
|
Quarter Ended |
| AVERAGE BALANCES |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
| Securities AFS-taxable |
|
$
|
2,098,089
|
|
|
$
|
1,902,162
|
|
|
$
|
1,857,050
|
|
|
$
|
1,724,320
|
|
|
$
|
1,620,422
|
|
| Securities AFS-nontaxable |
|
|
5,190
|
|
|
|
5,206
|
|
|
|
5,973
|
|
|
|
9,827
|
|
|
|
22,056
|
|
| Securities HTM-taxable |
|
|
489,260
|
|
|
|
550,563
|
|
|
|
608,585
|
|
|
|
655,085
|
|
|
|
694,740
|
|
| Securities HTM-nontaxable |
|
|
24,070
|
|
|
|
24,752
|
|
|
|
25,508
|
|
|
|
25,538
|
|
|
|
25,673
|
|
| Total securities |
|
|
2,616,609
|
|
|
|
2,482,683
|
|
|
|
2,497,116
|
|
|
|
2,414,770
|
|
|
|
2,362,891
|
|
| PPP loans |
|
|
598,139
|
|
|
|
875,098
|
|
|
|
941,456
|
|
|
|
764,416
|
|
|
|
—
|
|
| Loans (includes loans held for sale) |
|
|
10,316,319
|
|
|
|
10,231,671
|
|
|
|
10,162,379
|
|
|
|
9,908,132
|
|
|
|
9,678,174
|
|
| Fed funds sold and reverse repurchases |
|
|
136
|
|
|
|
303
|
|
|
|
301
|
|
|
|
113
|
|
|
|
164
|
|
| Other earning assets |
|
|
1,667,906
|
|
|
|
860,540
|
|
|
|
722,917
|
|
|
|
854,642
|
|
|
|
187,327
|
|
| Total earning assets |
|
|
15,199,109
|
|
|
|
14,450,295
|
|
|
|
14,324,169
|
|
|
|
13,942,073
|
|
|
|
12,228,556
|
|
| ACL LHFI |
|
|
(119,557
|
)
|
|
|
(124,088
|
)
|
|
|
(121,842
|
)
|
|
|
(103,006
|
)
|
|
|
(85,015
|
)
|
| Other assets |
|
|
1,601,250
|
|
|
|
1,620,694
|
|
|
|
1,564,825
|
|
|
|
1,685,317
|
|
|
|
1,498,725
|
|
| Total assets |
|
$
|
16,680,802
|
|
|
$
|
15,946,901
|
|
|
$
|
15,767,152
|
|
|
$
|
15,524,384
|
|
|
$
|
13,642,266
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand deposits |
|
$
|
3,743,651
|
|
|
$
|
3,649,590
|
|
|
$
|
3,669,249
|
|
|
$
|
3,832,372
|
|
|
$
|
3,184,134
|
|
| Savings deposits |
|
|
4,659,037
|
|
|
|
4,350,783
|
|
|
|
4,416,046
|
|
|
|
4,180,540
|
|
|
|
3,646,936
|
|
| Time deposits |
|
|
1,371,830
|
|
|
|
1,436,677
|
|
|
|
1,507,348
|
|
|
|
1,578,737
|
|
|
|
1,617,307
|
|
| Total interest-bearing deposits |
|
|
9,774,518
|
|
|
|
9,437,050
|
|
|
|
9,592,643
|
|
|
|
9,591,649
|
|
|
|
8,448,377
|
|
| Fed funds purchased and repurchases |
|
|
166,909
|
|
|
|
170,474
|
|
|
|
84,077
|
|
|
|
105,696
|
|
|
|
247,513
|
|
| Other borrowings |
|
|
166,926
|
|
|
|
173,525
|
|
|
|
167,262
|
|
|
|
107,533
|
|
|
|
85,279
|
|
| Subordinated notes |
|
|
122,875
|
|
|
|
42,828
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
| Junior subordinated debt securities |
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
| Total interest-bearing liabilities |
|
|
10,293,084
|
|
|
|
9,885,733
|
|
|
|
9,905,838
|
|
|
|
9,866,734
|
|
|
|
8,843,025
|
|
| Noninterest-bearing deposits |
|
|
4,363,559
|
|
|
|
4,100,849
|
|
|
|
3,921,867
|
|
|
|
3,645,761
|
|
|
|
2,910,951
|
|
| Other liabilities |
|
|
264,808
|
|
|
|
235,284
|
|
|
|
244,544
|
|
|
|
346,173
|
|
|
|
248,220
|
|
| Total liabilities |
|
|
14,921,451
|
|
|
|
14,221,866
|
|
|
|
14,072,249
|
|
|
|
13,858,668
|
|
|
|
12,002,196
|
|
| Shareholders' equity |
|
|
1,759,351
|
|
|
|
1,725,035
|
|
|
|
1,694,903
|
|
|
|
1,665,716
|
|
|
|
1,640,070
|
|
| Total liabilities and equity |
|
$
|
16,680,802
|
|
|
$
|
15,946,901
|
|
|
$
|
15,767,152
|
|
|
$
|
15,524,384
|
|
|
$
|
13,642,266
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| PERIOD END BALANCES |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
| Cash and due from banks |
|
$
|
1,774,541
|
|
|
$
|
1,952,504
|
|
|
$
|
564,588
|
|
|
$
|
1,026,640
|
|
|
$
|
404,341
|
|
| Fed funds sold and reverse repurchases |
|
|
—
|
|
|
|
50
|
|
|
|
50
|
|
|
|
—
|
|
|
|
2,000
|
|
| Securities available for sale |
|
|
2,337,676
|
|
|
|
1,991,815
|
|
|
|
1,922,728
|
|
|
|
1,884,153
|
|
|
|
1,833,779
|
|
| Securities held to maturity |
|
|
493,738
|
|
|
|
538,072
|
|
|
|
611,280
|
|
|
|
660,048
|
|
|
|
704,276
|
|
| PPP loans |
|
|
679,725
|
|
|
|
610,134
|
|
|
|
944,270
|
|
|
|
939,783
|
|
|
|
—
|
|
| LHFS |
|
|
412,999
|
|
|
|
446,951
|
|
|
|
485,103
|
|
|
|
355,089
|
|
|
|
325,389
|
|
| LHFI |
|
|
9,983,704
|
|
|
|
9,824,524
|
|
|
|
9,847,728
|
|
|
|
9,659,806
|
|
|
|
9,567,920
|
|
| ACL LHFI |
|
|
(109,191
|
)
|
|
|
(117,306
|
)
|
|
|
(122,010
|
)
|
|
|
(119,188
|
)
|
|
|
(100,564
|
)
|
| Net LHFI |
|
|
9,874,513
|
|
|
|
9,707,218
|
|
|
|
9,725,718
|
|
|
|
9,540,618
|
|
|
|
9,467,356
|
|
| Premises and equipment, net |
|
|
199,098
|
|
|
|
194,278
|
|
|
|
192,722
|
|
|
|
190,567
|
|
|
|
190,179
|
|
| Mortgage servicing rights |
|
|
83,035
|
|
|
|
66,464
|
|
|
|
61,613
|
|
|
|
57,811
|
|
|
|
56,437
|
|
| Goodwill |
|
|
384,237
|
|
|
|
385,270
|
|
|
|
385,270
|
|
|
|
385,270
|
|
|
|
381,717
|
|
| Identifiable intangible assets |
|
|
6,724
|
|
|
|
7,390
|
|
|
|
8,142
|
|
|
|
8,895
|
|
|
|
7,537
|
|
| Other real estate |
|
|
10,651
|
|
|
|
11,651
|
|
|
|
16,248
|
|
|
|
18,276
|
|
|
|
24,847
|
|
| Operating lease right-of-use assets |
|
|
33,704
|
|
|
|
30,901
|
|
|
|
30,508
|
|
|
|
29,819
|
|
|
|
30,839
|
|
| Other assets |
|
|
587,672
|
|
|
|
609,142
|
|
|
|
609,922
|
|
|
|
595,110
|
|
|
|
591,132
|
|
| Total assets |
|
$
|
16,878,313
|
|
|
$
|
16,551,840
|
|
|
$
|
15,558,162
|
|
|
$
|
15,692,079
|
|
|
$
|
14,019,829
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing |
|
$
|
4,705,991
|
|
|
$
|
4,349,010
|
|
|
$
|
3,964,023
|
|
|
$
|
3,880,540
|
|
|
$
|
2,977,058
|
|
| Interest-bearing |
|
|
9,677,449
|
|
|
|
9,699,754
|
|
|
|
9,258,390
|
|
|
|
9,624,933
|
|
|
|
8,598,706
|
|
| Total deposits |
|
|
14,383,440
|
|
|
|
14,048,764
|
|
|
|
13,222,413
|
|
|
|
13,505,473
|
|
|
|
11,575,764
|
|
| Fed funds purchased and repurchases |
|
|
160,991
|
|
|
|
164,519
|
|
|
|
153,834
|
|
|
|
70,255
|
|
|
|
421,821
|
|
| Other borrowings |
|
|
145,994
|
|
|
|
168,252
|
|
|
|
178,599
|
|
|
|
152,860
|
|
|
|
84,230
|
|
| Subordinated notes |
|
|
122,877
|
|
|
|
122,921
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
| Junior subordinated debt securities |
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
| ACL on off-balance sheet credit exposures |
|
|
29,205
|
|
|
|
38,572
|
|
|
|
39,659
|
|
|
|
42,663
|
|
|
|
36,421
|
|
| Operating lease liabilities |
|
|
35,389
|
|
|
|
32,290
|
|
|
|
31,838
|
|
|
|
31,076
|
|
|
|
32,055
|
|
| Other liabilities |
|
|
178,856
|
|
|
|
173,549
|
|
|
|
159,922
|
|
|
|
153,952
|
|
|
|
155,283
|
|
| Total liabilities |
|
|
15,118,608
|
|
|
|
14,810,723
|
|
|
|
13,848,121
|
|
|
|
14,018,135
|
|
|
|
12,367,430
|
|
| Common stock |
|
|
13,209
|
|
|
|
13,215
|
|
|
|
13,215
|
|
|
|
13,214
|
|
|
|
13,209
|
|
| Capital surplus |
|
|
229,892
|
|
|
|
233,120
|
|
|
|
231,836
|
|
|
|
230,613
|
|
|
|
229,403
|
|
| Retained earnings |
|
|
1,533,110
|
|
|
|
1,495,833
|
|
|
|
1,459,306
|
|
|
|
1,419,552
|
|
|
|
1,402,089
|
|
| Accum other comprehensive income (loss), net of tax |
|
|
(16,506
|
)
|
|
|
(1,051
|
)
|
|
|
5,684
|
|
|
|
10,565
|
|
|
|
7,698
|
|
| Total shareholders' equity |
|
|
1,759,705
|
|
|
|
1,741,117
|
|
|
|
1,710,041
|
|
|
|
1,673,944
|
|
|
|
1,652,399
|
|
| Total liabilities and equity |
|
$
|
16,878,313
|
|
|
$
|
16,551,840
|
|
|
$
|
15,558,162
|
|
|
$
|
15,692,079
|
|
|
$
|
14,019,829
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands except per share data) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
| INCOME STATEMENTS |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
| Interest and fees on LHFS & LHFI-FTE |
|
$
|
93,394
|
|
|
$
|
96,453
|
|
|
$
|
97,429
|
|
|
$
|
99,300
|
|
$
|
109,357
|
| Interest and fees on PPP loans |
|
|
9,241
|
|
|
|
14,870
|
|
|
|
6,729
|
|
|
|
5,044
|
|
|
—
|
| Interest on securities-taxable |
|
|
8,938
|
|
|
|
9,998
|
|
|
|
12,542
|
|
|
|
12,762
|
|
|
12,948
|
| Interest on securities-tax exempt-FTE |
|
|
290
|
|
|
|
293
|
|
|
|
301
|
|
|
|
315
|
|
|
457
|
| Interest on fed funds sold and reverse repurchases |
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
—
|
| Other interest income |
|
|
503
|
|
|
|
249
|
|
|
|
331
|
|
|
|
239
|
|
|
740
|
| Total interest income-FTE |
|
|
112,366
|
|
|
|
121,863
|
|
|
|
117,333
|
|
|
|
117,660
|
|
|
123,502
|
| Interest on deposits |
|
|
5,223
|
|
|
|
6,363
|
|
|
|
7,437
|
|
|
|
8,730
|
|
|
14,957
|
| Interest on fed funds purchased and repurchases |
|
|
56
|
|
|
|
56
|
|
|
|
32
|
|
|
|
42
|
|
|
625
|
| Other interest expense |
|
|
1,857
|
|
|
|
1,127
|
|
|
|
688
|
|
|
|
881
|
|
|
860
|
| Total interest expense |
|
|
7,136
|
|
|
|
7,546
|
|
|
|
8,157
|
|
|
|
9,653
|
|
|
16,442
|
| Net interest income-FTE |
|
|
105,230
|
|
|
|
114,317
|
|
|
|
109,176
|
|
|
|
108,007
|
|
|
107,060
|
| Provision for credit losses, LHFI |
|
|
(10,501
|
)
|
|
|
(4,413
|
)
|
|
|
1,760
|
|
|
|
18,185
|
|
|
20,581
|
| Net interest income after provision-FTE |
|
|
115,731
|
|
|
|
118,730
|
|
|
|
107,416
|
|
|
|
89,822
|
|
|
86,479
|
| Service charges on deposit accounts |
|
|
7,356
|
|
|
|
8,283
|
|
|
|
7,577
|
|
|
|
6,397
|
|
|
10,032
|
| Bank card and other fees |
|
|
9,472
|
|
|
|
9,107
|
|
|
|
8,843
|
|
|
|
7,717
|
|
|
5,355
|
| Mortgage banking, net |
|
|
20,804
|
|
|
|
28,155
|
|
|
|
36,439
|
|
|
|
33,745
|
|
|
27,483
|
| Insurance commissions |
|
|
12,445
|
|
|
|
10,196
|
|
|
|
11,562
|
|
|
|
11,868
|
|
|
11,550
|
| Wealth management |
|
|
8,416
|
|
|
|
7,838
|
|
|
|
7,679
|
|
|
|
7,571
|
|
|
8,537
|
| Other, net |
|
|
2,090
|
|
|
|
2,538
|
|
|
|
1,601
|
|
|
|
2,213
|
|
|
2,307
|
| Total noninterest income |
|
|
60,583
|
|
|
|
66,117
|
|
|
|
73,701
|
|
|
|
69,511
|
|
|
65,264
|
| Salaries and employee benefits |
|
|
71,162
|
|
|
|
69,660
|
|
|
|
67,342
|
|
|
|
66,107
|
|
|
69,148
|
| Services and fees |
|
|
22,484
|
|
|
|
22,327
|
|
|
|
20,992
|
|
|
|
20,567
|
|
|
19,930
|
| Net occupancy-premises |
|
|
6,795
|
|
|
|
6,616
|
|
|
|
7,000
|
|
|
|
6,587
|
|
|
6,286
|
| Equipment expense |
|
|
6,244
|
|
|
|
6,213
|
|
|
|
5,828
|
|
|
|
5,620
|
|
|
5,616
|
| Other real estate expense, net |
|
|
324
|
|
|
|
(812
|
)
|
|
|
1,203
|
|
|
|
271
|
|
|
1,294
|
| Credit loss expense related to off-balance sheet credit exposures |
|
|
(9,367
|
)
|
|
|
(1,087
|
)
|
|
|
(3,004
|
)
|
|
|
6,242
|
|
|
6,783
|
| Other expense |
|
|
14,539
|
|
|
|
15,890
|
|
|
|
14,598
|
|
|
|
13,265
|
|
|
14,753
|
| Total noninterest expense |
|
|
112,181
|
|
|
|
118,807
|
|
|
|
113,959
|
|
|
|
118,659
|
|
|
123,810
|
| Income before income taxes and tax eq adj |
|
|
64,133
|
|
|
|
66,040
|
|
|
|
67,158
|
|
|
|
40,674
|
|
|
27,933
|
| Tax equivalent adjustment |
|
|
2,894
|
|
|
|
2,939
|
|
|
|
2,969
|
|
|
|
3,007
|
|
|
3,108
|
| Income before income taxes |
|
|
61,239
|
|
|
|
63,101
|
|
|
|
64,189
|
|
|
|
37,667
|
|
|
24,825
|
| Income taxes |
|
|
9,277
|
|
|
|
11,884
|
|
|
|
9,749
|
|
|
|
5,517
|
|
|
2,607
|
| Net income |
|
$
|
51,962
|
|
|
$
|
51,217
|
|
|
$
|
54,440
|
|
|
$
|
32,150
|
|
$
|
22,218
|
|
|
|
|
|
|
|
|
|
|
|
| Per share data |
|
|
|
|
|
|
|
|
|
|
| Earnings per share - basic |
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
0.86
|
|
|
$
|
0.51
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share - diluted |
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
0.86
|
|
|
$
|
0.51
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends per share |
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
63,395,911
|
|
|
|
63,424,219
|
|
|
|
63,422,692
|
|
|
|
63,416,307
|
|
|
63,756,629
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
|
63,562,503
|
|
|
|
63,616,767
|
|
|
|
63,581,964
|
|
|
|
63,555,065
|
|
|
63,913,603
|
|
|
|
|
|
|
|
|
|
|
|
| Period end shares outstanding |
|
|
63,394,522
|
|
|
|
63,424,526
|
|
|
|
63,423,820
|
|
|
|
63,422,439
|
|
|
63,396,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| ($ in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
| NONPERFORMING ASSETS (1) |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
| Nonaccrual LHFI |
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
$
|
9,161
|
|
|
$
|
9,221
|
|
|
$
|
3,860
|
|
|
$
|
4,392
|
|
|
$
|
4,769
|
|
| Florida |
|
|
607
|
|
|
|
572
|
|
|
|
617
|
|
|
|
687
|
|
|
|
254
|
|
| Mississippi (2) |
|
|
35,534
|
|
|
|
35,015
|
|
|
|
35,617
|
|
|
|
37,884
|
|
|
|
40,815
|
|
| Tennessee (3) |
|
|
12,451
|
|
|
|
12,572
|
|
|
|
13,041
|
|
|
|
6,125
|
|
|
|
6,153
|
|
| Texas |
|
|
5,761
|
|
|
|
5,748
|
|
|
|
721
|
|
|
|
906
|
|
|
|
1,001
|
|
| Total nonaccrual LHFI |
|
|
63,514
|
|
|
|
63,128
|
|
|
|
53,856
|
|
|
|
49,994
|
|
|
|
52,992
|
|
| Other real estate |
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
|
3,085
|
|
|
|
3,271
|
|
|
|
3,725
|
|
|
|
4,766
|
|
|
|
6,229
|
|
| Florida |
|
|
—
|
|
|
|
—
|
|
|
|
3,665
|
|
|
|
3,665
|
|
|
|
4,835
|
|
| Mississippi (2) |
|
|
7,566
|
|
|
|
8,330
|
|
|
|
8,718
|
|
|
|
9,408
|
|
|
|
13,296
|
|
| Tennessee (3) |
|
|
—
|
|
|
|
50
|
|
|
|
140
|
|
|
|
437
|
|
|
|
487
|
|
| Texas |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
| Total other real estate |
|
|
10,651
|
|
|
|
11,651
|
|
|
|
16,248
|
|
|
|
18,276
|
|
|
|
24,847
|
|
| Total nonperforming assets |
|
$
|
74,165
|
|
|
$
|
74,779
|
|
|
$
|
70,104
|
|
|
$
|
68,270
|
|
|
$
|
77,839
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOANS PAST DUE OVER 90 DAYS (1) |
|
|
|
|
|
|
|
|
|
|
| LHFI |
|
$
|
2,593
|
|
|
$
|
1,576
|
|
|
$
|
782
|
|
|
$
|
807
|
|
|
$
|
708
|
|
|
|
|
|
|
|
|
|
|
|
|
| LHFS-Guaranteed GNMA serviced loans |
|
|
|
|
|
|
|
|
|
|
| (no obligation to repurchase) |
|
$
|
109,566
|
|
|
$
|
119,409
|
|
|
$
|
121,281
|
|
|
$
|
56,269
|
|
|
$
|
43,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
| ACL LHFI (1) |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
| Beginning Balance |
|
$
|
117,306
|
|
|
$
|
122,010
|
|
|
$
|
119,188
|
|
|
$
|
100,564
|
|
|
$
|
84,277
|
|
| CECL adoption adjustments: |
|
|
|
|
|
|
|
|
|
|
| LHFI |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,039
|
)
|
| Acquired loan transfers |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,822
|
|
| Provision for credit losses |
|
|
(10,501
|
)
|
|
|
(4,413
|
)
|
|
|
1,760
|
|
|
|
18,185
|
|
|
|
20,581
|
|
| Charge-offs |
|
|
(1,245
|
)
|
|
|
(2,797
|
)
|
|
|
(1,263
|
)
|
|
|
(1,870
|
)
|
|
|
(5,545
|
)
|
| Recoveries |
|
|
3,631
|
|
|
|
2,506
|
|
|
|
2,325
|
|
|
|
2,309
|
|
|
|
2,468
|
|
| Net (charge-offs) recoveries |
|
|
2,386
|
|
|
|
(291
|
)
|
|
|
1,062
|
|
|
|
439
|
|
|
|
(3,077
|
)
|
| Ending Balance |
|
$
|
109,191
|
|
|
$
|
117,306
|
|
|
$
|
122,010
|
|
|
$
|
119,188
|
|
|
$
|
100,564
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET (CHARGE-OFFS) RECOVERIES (1) |
|
|
|
|
|
|
|
|
|
|
| Alabama |
|
$
|
102
|
|
|
$
|
(1,011
|
)
|
|
$
|
117
|
|
|
$
|
526
|
|
|
$
|
(1,080
|
)
|
| Florida |
|
|
30
|
|
|
|
66
|
|
|
|
387
|
|
|
|
(127
|
)
|
|
|
64
|
|
| Mississippi (2) |
|
|
2,207
|
|
|
|
332
|
|
|
|
442
|
|
|
|
(86
|
)
|
|
|
126
|
|
| Tennessee (3) |
|
|
47
|
|
|
|
303
|
|
|
|
42
|
|
|
|
66
|
|
|
|
(2,186
|
)
|
| Texas |
|
|
—
|
|
|
|
19
|
|
|
|
74
|
|
|
|
60
|
|
|
|
(1
|
)
|
| Total net (charge-offs) recoveries |
|
$
|
2,386
|
|
|
$
|
(291
|
)
|
|
$
|
1,062
|
|
|
$
|
439
|
|
|
$
|
(3,077
|
)
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes PPP loans. |
| (2) Mississippi includes Central and Southern Mississippi Regions. |
| (3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. |
|
| See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
| TRUSTMARK CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED FINANCIAL INFORMATION |
| March 31, 2021 |
| (unaudited) |
|
|
Quarter Ended |
| FINANCIAL RATIOS AND OTHER DATA |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
| Return on average equity |
|
|
11.98
|
%
|
|
|
11.81
|
%
|
|
|
12.78
|
%
|
|
|
7.76
|
%
|
|
|
5.45
|
%
|
| Return on average tangible equity |
|
|
15.56
|
%
|
|
|
15.47
|
%
|
|
|
16.82
|
%
|
|
|
10.32
|
%
|
|
|
7.34
|
%
|
| Return on average assets |
|
|
1.26
|
%
|
|
|
1.28
|
%
|
|
|
1.37
|
%
|
|
|
0.83
|
%
|
|
|
0.66
|
%
|
| Interest margin - Yield - FTE |
|
|
3.00
|
%
|
|
|
3.35
|
%
|
|
|
3.26
|
%
|
|
|
3.39
|
%
|
|
|
4.06
|
%
|
| Interest margin - Cost |
|
|
0.19
|
%
|
|
|
0.21
|
%
|
|
|
0.23
|
%
|
|
|
0.28
|
%
|
|
|
0.54
|
%
|
| Net interest margin - FTE |
|
|
2.81
|
%
|
|
|
3.15
|
%
|
|
|
3.03
|
%
|
|
|
3.12
|
%
|
|
|
3.52
|
%
|
| Efficiency ratio (1) |
|
|
71.84
|
%
|
|
|
65.59
|
%
|
|
|
62.19
|
%
|
|
|
62.13
|
%
|
|
|
63.50
|
%
|
| Full-time equivalent employees |
|
|
2,793
|
|
|
|
2,797
|
|
|
|
2,807
|
|
|
|
2,798
|
|
|
|
2,761
|
|
|
|
|
|
|
|
|
|
|
|
|
| CREDIT QUALITY RATIOS (2) |
|
|
|
|
|
|
|
|
|
|
| Net (recoveries) charge-offs / average loans |
|
|
-0.09
|
%
|
|
|
0.01
|
%
|
|
|
-0.04
|
%
|
|
|
-0.02
|
%
|
|
|
0.13
|
%
|
| Provision for credit losses / average loans |
|
|
-0.41
|
%
|
|
|
-0.17
|
%
|
|
|
0.07
|
%
|
|
|
0.74
|
%
|
|
|
0.86
|
%
|
| Nonaccrual LHFI / (LHFI + LHFS) |
|
|
0.61
|
%
|
|
|
0.61
|
%
|
|
|
0.52
|
%
|
|
|
0.50
|
%
|
|
|
0.54
|
%
|
| Nonperforming assets / (LHFI + LHFS) |
|
|
0.71
|
%
|
|
|
0.73
|
%
|
|
|
0.68
|
%
|
|
|
0.68
|
%
|
|
|
0.79
|
%
|
| Nonperforming assets / (LHFI + LHFS + other real estate) |
|
|
0.71
|
%
|
|
|
0.73
|
%
|
|
|
0.68
|
%
|
|
|
0.68
|
%
|
|
|
0.78
|
%
|
| ACL LHFI / LHFI |
|
|
1.09
|
%
|
|
|
1.19
|
%
|
|
|
1.24
|
%
|
|
|
1.23
|
%
|
|
|
1.05
|
%
|
| ACL LHFI-commercial / commercial LHFI |
|
|
1.13
|
%
|
|
|
1.20
|
%
|
|
|
1.20
|
%
|
|
|
1.15
|
%
|
|
|
0.97
|
%
|
| ACL LHFI-consumer / consumer and home mortgage LHFI |
|
|
0.95
|
%
|
|
|
1.16
|
%
|
|
|
1.41
|
%
|
|
|
1.56
|
%
|
|
|
1.35
|
%
|
| ACL LHFI / nonaccrual LHFI |
|
|
171.92
|
%
|
|
|
185.82
|
%
|
|
|
226.55
|
%
|
|
|
238.40
|
%
|
|
|
189.77
|
%
|
| ACL LHFI / nonaccrual LHFI (excl individually evaluated loans) |
|
|
437.08
|
%
|
|
|
572.69
|
%
|
|
|
593.72
|
%
|
|
|
561.04
|
%
|
|
|
468.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
| Total equity / total assets |
|
|
10.43
|
%
|
|
|
10.52
|
%
|
|
|
10.99
|
%
|
|
|
10.67
|
%
|
|
|
11.79
|
%
|
| Tangible equity / tangible assets |
|
|
8.30
|
%
|
|
|
8.34
|
%
|
|
|
8.68
|
%
|
|
|
8.37
|
%
|
|
|
9.27
|
%
|
| Tangible equity / risk-weighted assets |
|
|
11.23
|
%
|
|
|
11.22
|
%
|
|
|
11.01
|
%
|
|
|
11.09
|
%
|
|
|
11.05
|
%
|
| Tier 1 leverage ratio |
|
|
9.11
|
%
|
|
|
9.33
|
%
|
|
|
9.20
|
%
|
|
|
9.08
|
%
|
|
|
10.21
|
%
|
| Common equity tier 1 capital ratio |
|
|
11.71
|
%
|
|
|
11.62
|
%
|
|
|
11.36
|
%
|
|
|
11.42
|
%
|
|
|
11.35
|
%
|
| Tier 1 risk-based capital ratio |
|
|
12.20
|
%
|
|
|
12.11
|
%
|
|
|
11.86
|
%
|
|
|
11.94
|
%
|
|
|
11.88
|
%
|
| Total risk-based capital ratio |
|
|
14.07
|
%
|
|
|
14.12
|
%
|
|
|
12.88
|
%
|
|
|
13.00
|
%
|
|
|
12.78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
| STOCK PERFORMANCE |
|
|
|
|
|
|
|
|
|
|
| Market value-Close |
|
$
|
33.66
|
|
|
$
|
27.31
|
|
|
$
|
21.41
|
|
|
$
|
24.52
|
|
|
$
|
23.30
|
|
| Book value |
|
$
|
27.76
|
|
|
$
|
27.45
|
|
|
$
|
26.96
|
|
|
$
|
26.39
|
|
|
$
|
26.06
|
|
| Tangible book value |
|
$
|
21.59
|
|
|
$
|
21.26
|
|
|
$
|
20.76
|
|
|
$
|
20.18
|
|
|
$
|
19.92
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) See Note 8 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation. |
| (2) Excludes PPP loans. |
|
|
|
| See Notes to Consolidated Financials |
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)
Note 1 - Paycheck Protection Program
In January 2021, Trustmark began submitting applications to the SBA on behalf of and originating loans to qualified small businesses under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), as amended by the Consolidated Appropriations Act, 2021. During the first quarter of 2021, Trustmark originated 4,774 PPP loans totaling $301.5 million (net of $16.5 million of deferred fees and costs). At March 31, 2021, Trustmark had 7,456 PPP loans outstanding that totaled $679.7 million (net of $22.1 million of deferred fees and costs) under the CARES Act.
Due to amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the SBA; therefore, no ACL was estimated for these loans.
Note 2 - Securities Available for Sale and Held to Maturity
The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
SECURITIES AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agency obligations
|
|
$
|
17,349
|
|
|
$
|
18,041
|
|
|
$
|
19,011
|
|
|
$
|
19,898
|
|
|
$
|
21,190
|
|
|
Obligations of states and political subdivisions
|
|
|
5,798
|
|
|
|
5,835
|
|
|
|
8,315
|
|
|
|
11,176
|
|
|
|
23,572
|
|
|
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage pass-through securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed by GNMA
|
|
|
52,406
|
|
|
|
56,862
|
|
|
|
62,156
|
|
|
|
69,637
|
|
|
|
71,971
|
|
|
Issued by FNMA and FHLMC
|
|
|
1,749,144
|
|
|
|
1,441,321
|
|
|
|
1,279,919
|
|
|
|
1,121,604
|
|
|
|
967,329
|
|
|
Other residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
345,869
|
|
|
|
419,437
|
|
|
|
500,858
|
|
|
|
574,940
|
|
|
|
634,075
|
|
|
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
167,110
|
|
|
|
50,319
|
|
|
|
52,469
|
|
|
|
86,898
|
|
|
|
115,642
|
|
|
Total securities available for sale
|
|
$
|
2,337,676
|
|
|
$
|
1,991,815
|
|
|
$
|
1,922,728
|
|
|
$
|
1,884,153
|
|
|
$
|
1,833,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECURITIES HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states and political subdivisions
|
|
$
|
26,554
|
|
|
$
|
26,584
|
|
|
$
|
31,605
|
|
|
$
|
31,629
|
|
|
$
|
31,758
|
|
|
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage pass-through securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed by GNMA
|
|
|
7,268
|
|
|
|
7,598
|
|
|
|
8,244
|
|
|
|
10,306
|
|
|
|
10,492
|
|
|
Issued by FNMA and FHLMC
|
|
|
61,855
|
|
|
|
67,944
|
|
|
|
78,213
|
|
|
|
86,346
|
|
|
|
91,971
|
|
|
Other residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
324,360
|
|
|
|
360,361
|
|
|
|
399,400
|
|
|
|
435,333
|
|
|
|
463,175
|
|
|
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
73,701
|
|
|
|
75,585
|
|
|
|
93,818
|
|
|
|
96,434
|
|
|
|
106,880
|
|
|
Total securities held to maturity
|
|
$
|
493,738
|
|
|
$
|
538,072
|
|
|
$
|
611,280
|
|
|
$
|
660,048
|
|
|
$
|
704,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2021, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $8.2 million ($6.2 million, net of tax).
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 98.0% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.
Note 3 – Loan Composition
LHFI consisted of the following during the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LHFI BY TYPE
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
Loans secured by real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land development and other land loans
|
|
$
|
1,342,088
|
|
|
$
|
1,309,039
|
|
|
$
|
1,385,947
|
|
|
$
|
1,277,277
|
|
|
$
|
1,136,389
|
|
|
Secured by 1-4 family residential properties
|
|
|
1,742,782
|
|
|
|
1,741,132
|
|
|
|
1,775,400
|
|
|
|
1,813,525
|
|
|
|
1,852,065
|
|
|
Secured by nonfarm, nonresidential properties
|
|
|
2,799,195
|
|
|
|
2,709,026
|
|
|
|
2,707,627
|
|
|
|
2,610,392
|
|
|
|
2,575,422
|
|
|
Other real estate secured
|
|
|
1,135,005
|
|
|
|
1,065,964
|
|
|
|
887,792
|
|
|
|
884,815
|
|
|
|
838,573
|
|
|
Commercial and industrial loans
|
|
|
1,323,277
|
|
|
|
1,309,078
|
|
|
|
1,398,468
|
|
|
|
1,413,255
|
|
|
|
1,476,777
|
|
|
Consumer loans
|
|
|
153,267
|
|
|
|
161,174
|
|
|
|
160,960
|
|
|
|
161,620
|
|
|
|
170,678
|
|
|
State and other political subdivision loans
|
|
|
1,036,694
|
|
|
|
1,000,776
|
|
|
|
935,349
|
|
|
|
931,536
|
|
|
|
938,637
|
|
|
Other loans
|
|
|
451,396
|
|
|
|
528,335
|
|
|
|
596,185
|
|
|
|
567,386
|
|
|
|
579,379
|
|
|
LHFI
|
|
|
9,983,704
|
|
|
|
9,824,524
|
|
|
|
9,847,728
|
|
|
|
9,659,806
|
|
|
|
9,567,920
|
|
|
ACL LHFI
|
|
|
(109,191
|
)
|
|
|
(117,306
|
)
|
|
|
(122,010
|
)
|
|
|
(119,188
|
)
|
|
|
(100,564
|
)
|
|
Net LHFI
|
|
$
|
9,874,513
|
|
|
$
|
9,707,218
|
|
|
$
|
9,725,718
|
|
|
$
|
9,540,618
|
|
|
$
|
9,467,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)
Note 3 – Loan Composition (continued)
The following table presents the LHFI composition by region at March 31, 2021 and reflects each region’s diversified mix of loans:
|
|
|
|
|
|
|
March 31, 2021
|
|
|
LHFI - COMPOSITION BY REGION
|
|
Total
|
|
|
Alabama
|
|
|
Florida
|
|
|
Mississippi
(Central and
Southern
Regions)
|
|
|
Tennessee
(Memphis,
TN and
Northern MS
Regions)
|
|
|
Texas
|
|
|
Loans secured by real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land development and other land loans
|
|
$
|
1,342,088
|
|
|
$
|
497,839
|
|
|
$
|
65,032
|
|
|
$
|
315,127
|
|
|
$
|
40,117
|
|
|
$
|
423,973
|
|
|
Secured by 1-4 family residential properties
|
|
|
1,742,782
|
|
|
|
112,699
|
|
|
|
37,777
|
|
|
|
1,509,503
|
|
|
|
69,371
|
|
|
|
13,432
|
|
|
Secured by nonfarm, nonresidential properties
|
|
|
2,799,195
|
|
|
|
765,496
|
|
|
|
263,877
|
|
|
|
976,949
|
|
|
|
181,688
|
|
|
|
611,185
|
|
|
Other real estate secured
|
|
|
1,135,005
|
|
|
|
325,951
|
|
|
|
6,139
|
|
|
|
418,988
|
|
|
|
19,910
|
|
|
|
364,017
|
|
|
Commercial and industrial loans
|
|
|
1,323,277
|
|
|
|
203,778
|
|
|
|
22,980
|
|
|
|
621,592
|
|
|
|
290,619
|
|
|
|
184,308
|
|
|
Consumer loans
|
|
|
153,267
|
|
|
|
22,501
|
|
|
|
7,755
|
|
|
|
100,323
|
|
|
|
19,232
|
|
|
|
3,456
|
|
|
State and other political subdivision loans
|
|
|
1,036,694
|
|
|
|
95,707
|
|
|
|
35,179
|
|
|
|
684,640
|
|
|
|
45,335
|
|
|
|
175,833
|
|
|
Other loans
|
|
|
451,396
|
|
|
|
79,979
|
|
|
|
13,016
|
|
|
|
279,520
|
|
|
|
64,796
|
|
|
|
14,085
|
|
|
Loans
|
|
$
|
9,983,704
|
|
|
$
|
2,103,950
|
|
|
$
|
451,755
|
|
|
$
|
4,906,642
|
|
|
$
|
731,068
|
|
|
$
|
1,790,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
|
|
Lots
|
|
$
|
67,471
|
|
|
$
|
21,575
|
|
|
$
|
11,036
|
|
|
$
|
26,266
|
|
|
$
|
1,373
|
|
|
$
|
7,221
|
|
|
Development
|
|
|
110,837
|
|
|
|
42,509
|
|
|
|
610
|
|
|
|
42,838
|
|
|
|
13,709
|
|
|
|
11,171
|
|
|
Unimproved land
|
|
|
108,607
|
|
|
|
33,232
|
|
|
|
14,333
|
|
|
|
31,363
|
|
|
|
11,568
|
|
|
|
18,111
|
|
|
1-4 family construction
|
|
|
255,987
|
|
|
|
117,406
|
|
|
|
22,312
|
|
|
|
71,072
|
|
|
|
12,495
|
|
|
|
32,702
|
|
|
Other construction
|
|
|
799,186
|
|
|
|
283,117
|
|
|
|
16,741
|
|
|
|
143,588
|
|
|
|
972
|
|
|
|
354,768
|
|
|
Construction, land development and other land loans
|
|
$
|
1,342,088
|
|
|
$
|
497,839
|
|
|
$
|
65,032
|
|
|
$
|
315,127
|
|
|
$
|
40,117
|
|
|
$
|
423,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
|
|
Non-owner occupied:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
400,595
|
|
|
$
|
162,007
|
|
|
$
|
31,393
|
|
|
$
|
106,249
|
|
|
$
|
25,339
|
|
|
$
|
75,607
|
|
|
Office
|
|
|
236,662
|
|
|
|
68,374
|
|
|
|
26,516
|
|
|
|
64,074
|
|
|
|
12,449
|
|
|
|
65,249
|
|
|
Hotel/motel
|
|
|
352,191
|
|
|
|
150,807
|
|
|
|
90,266
|
|
|
|
51,443
|
|
|
|
36,164
|
|
|
|
23,511
|
|
|
Mini-storage
|
|
|
135,538
|
|
|
|
23,176
|
|
|
|
2,392
|
|
|
|
62,461
|
|
|
|
390
|
|
|
|
47,119
|
|
|
Industrial
|
|
|
201,182
|
|
|
|
47,521
|
|
|
|
18,356
|
|
|
|
47,369
|
|
|
|
419
|
|
|
|
87,517
|
|
|
Health care
|
|
|
41,973
|
|
|
|
21,803
|
|
|
|
1,194
|
|
|
|
16,417
|
|
|
|
383
|
|
|
|
2,176
|
|
|
Convenience stores
|
|
|
16,773
|
|
|
|
3,289
|
|
|
|
200
|
|
|
|
3,134
|
|
|
|
373
|
|
|
|
9,777
|
|
|
Nursing homes/senior living
|
|
|
158,489
|
|
|
|
71,123
|
|
|
|
—
|
|
|
|
42,050
|
|
|
|
6,760
|
|
|
|
38,556
|
|
|
Other
|
|
|
78,407
|
|
|
|
10,075
|
|
|
|
7,261
|
|
|
|
25,585
|
|
|
|
8,846
|
|
|
|
26,640
|
|
|
Total non-owner occupied loans
|
|
|
1,621,810
|
|
|
|
558,175
|
|
|
|
177,578
|
|
|
|
418,782
|
|
|
|
91,123
|
|
|
|
376,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office
|
|
|
163,874
|
|
|
|
40,240
|
|
|
|
44,295
|
|
|
|
37,566
|
|
|
|
8,662
|
|
|
|
33,111
|
|
|
Churches
|
|
|
102,001
|
|
|
|
21,454
|
|
|
|
6,586
|
|
|
|
50,270
|
|
|
|
10,030
|
|
|
|
13,661
|
|
|
Industrial warehouses
|
|
|
177,666
|
|
|
|
12,410
|
|
|
|
3,169
|
|
|
|
49,610
|
|
|
|
17,122
|
|
|
|
95,355
|
|
|
Health care
|
|
|
141,491
|
|
|
|
26,787
|
|
|
|
7,525
|
|
|
|
94,096
|
|
|
|
2,327
|
|
|
|
10,756
|
|
|
Convenience stores
|
|
|
136,175
|
|
|
|
17,369
|
|
|
|
9,348
|
|
|
|
65,479
|
|
|
|
531
|
|
|
|
43,448
|
|
|
Retail
|
|
|
69,585
|
|
|
|
14,050
|
|
|
|
6,670
|
|
|
|
23,696
|
|
|
|
10,512
|
|
|
|
14,657
|
|
|
Restaurants
|
|
|
56,319
|
|
|
|
4,267
|
|
|
|
4,394
|
|
|
|
32,341
|
|
|
|
15,025
|
|
|
|
292
|
|
|
Auto dealerships
|
|
|
56,449
|
|
|
|
7,033
|
|
|
|
274
|
|
|
|
23,599
|
|
|
|
25,543
|
|
|
|
—
|
|
|
Nursing homes/senior living
|
|
|
176,746
|
|
|
|
58,770
|
|
|
|
—
|
|
|
|
117,976
|
|
|
|
—
|
|
|
|
—
|
|
|
Other
|
|
|
97,079
|
|
|
|
4,941
|
|
|
|
4,038
|
|
|
|
63,534
|
|
|
|
813
|
|
|
|
23,753
|
|
|
Total owner-occupied loans
|
|
|
1,177,385
|
|
|
|
207,321
|
|
|
|
86,299
|
|
|
|
558,167
|
|
|
|
90,565
|
|
|
|
235,033
|
|
|
Loans secured by nonfarm, nonresidential properties
|
|
$
|
2,799,195
|
|
|
$
|
765,496
|
|
|
$
|
263,877
|
|
|
$
|
976,949
|
|
|
$
|
181,688
|
|
|
$
|
611,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)
Note 4 – Subordinated Notes
During the fourth quarter of 2020, Trustmark agreed to issue and sell $125.0 million aggregate principal amount of its 3.625% Fixed-to-Floating Rate Subordinated Notes (the Notes) due December 1, 2030. At March 31, 2021, the carrying amount of the Notes was $122.9 million. The Notes are unsecured obligations and are subordinated in right of payment to all of Trustmark’s existing and future senior indebtedness, whether secured or unsecured. The Notes are obligations of Trustmark only and are not obligations of, and are not guaranteed by, any of its subsidiaries, including TNB. From the date of issuance until November 30, 2025, the Notes bear interest at a fixed rate of 3.625% per year, payable semi-annually in arrears on June 1 and December 1 of each year. Beginning December 1, 2025, the Notes will bear interest at a floating rate per year equal to the Benchmark rate, which is the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 338.7 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. The Notes qualify as Tier 2 capital for Trustmark. The Notes may be redeemed at Trustmark’s option under certain circumstances. Trustmark intends to use the net proceeds for general corporate purposes.
Note 5 – Yields on Earning Assets and Interest-Bearing Liabilities
The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
Securities – taxable
|
|
|
1.40
|
%
|
|
|
1.62
|
%
|
|
|
2.02
|
%
|
|
|
2.16
|
%
|
|
|
2.25
|
%
|
|
Securities – nontaxable
|
|
|
4.02
|
%
|
|
|
3.89
|
%
|
|
|
3.80
|
%
|
|
|
3.58
|
%
|
|
|
3.85
|
%
|
|
Securities – total
|
|
|
1.43
|
%
|
|
|
1.65
|
%
|
|
|
2.05
|
%
|
|
|
2.18
|
%
|
|
|
2.28
|
%
|
|
PPP loans
|
|
|
6.27
|
%
|
|
|
6.76
|
%
|
|
|
2.84
|
%
|
|
|
2.65
|
%
|
|
|
—
|
|
|
Loans - LHFI & LHFS
|
|
|
3.67
|
%
|
|
|
3.75
|
%
|
|
|
3.81
|
%
|
|
|
4.03
|
%
|
|
|
4.54
|
%
|
|
Loans - total
|
|
|
3.81
|
%
|
|
|
3.99
|
%
|
|
|
3.73
|
%
|
|
|
3.93
|
%
|
|
|
4.54
|
%
|
|
Fed funds sold & reverse repurchases
|
|
|
—
|
|
|
|
—
|
|
|
|
1.32
|
%
|
|
|
—
|
|
|
|
—
|
|
|
Other earning assets
|
|
|
0.12
|
%
|
|
|
0.12
|
%
|
|
|
0.18
|
%
|
|
|
0.11
|
%
|
|
|
1.59
|
%
|
|
Total earning assets
|
|
|
3.00
|
%
|
|
|
3.35
|
%
|
|
|
3.26
|
%
|
|
|
3.39
|
%
|
|
|
4.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
|
0.22
|
%
|
|
|
0.27
|
%
|
|
|
0.31
|
%
|
|
|
0.37
|
%
|
|
|
0.71
|
%
|
|
Fed funds purchased & repurchases
|
|
|
0.14
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.16
|
%
|
|
|
1.02
|
%
|
|
Other borrowings
|
|
|
2.14
|
%
|
|
|
1.61
|
%
|
|
|
1.19
|
%
|
|
|
2.09
|
%
|
|
|
2.35
|
%
|
|
Total interest-bearing liabilities
|
|
|
0.28
|
%
|
|
|
0.30
|
%
|
|
|
0.33
|
%
|
|
|
0.39
|
%
|
|
|
0.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
2.81
|
%
|
|
|
3.15
|
%
|
|
|
3.03
|
%
|
|
|
3.12
|
%
|
|
|
3.52
|
%
|
|
Net interest margin excluding PPP loans and the FRB balance
|
|
|
2.99
|
%
|
|
|
3.09
|
%
|
|
|
3.20
|
%
|
|
|
3.35
|
%
|
|
|
3.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.
At March 31, 2021 and December 31, 2020, the average FRB balance totaled $1.618 billion and $814.2 million, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.
The net interest margin excluding PPP loans and the FRB balance totaled 2.99% for the first quarter of 2021, a decrease of 10 basis points when compared to the fourth quarter of 2020. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.
Note 6 – Mortgage Banking
Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net positive ineffectiveness of $270 thousand during the first quarter of 2021.
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)
Note 6 – Mortgage Banking (continued)
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
Mortgage servicing income, net
|
|
$
|
6,181
|
|
|
$
|
6,227
|
|
|
$
|
5,742
|
|
|
$
|
5,893
|
|
|
$
|
5,819
|
|
|
Change in fair value-MSR from runoff
|
|
|
(5,103
|
)
|
|
|
(5,177
|
)
|
|
|
(4,590
|
)
|
|
|
(4,214
|
)
|
|
|
(2,607
|
)
|
|
Gain on sales of loans, net
|
|
|
19,456
|
|
|
|
28,014
|
|
|
|
34,472
|
|
|
|
34,078
|
|
|
|
14,339
|
|
|
Mortgage banking income before hedge ineffectiveness
|
|
|
20,534
|
|
|
|
29,064
|
|
|
|
35,624
|
|
|
|
35,757
|
|
|
|
17,551
|
|
|
Change in fair value-MSR from market changes
|
|
|
13,696
|
|
|
|
951
|
|
|
|
60
|
|
|
|
(3,159
|
)
|
|
|
(23,999
|
)
|
|
Change in fair value of derivatives
|
|
|
(13,426
|
)
|
|
|
(1,860
|
)
|
|
|
755
|
|
|
|
1,147
|
|
|
|
33,931
|
|
|
Net positive (negative) hedge ineffectiveness
|
|
|
270
|
|
|
|
(909
|
)
|
|
|
815
|
|
|
|
(2,012
|
)
|
|
|
9,932
|
|
|
Mortgage banking, net
|
|
$
|
20,804
|
|
|
$
|
28,155
|
|
|
$
|
36,439
|
|
|
$
|
33,745
|
|
|
$
|
27,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 7 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the periods presented:
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
Partnership amortization for tax credit purposes
|
|
$
|
(1,522
|
)
|
|
$
|
(1,877
|
)
|
|
$
|
(1,457
|
)
|
|
$
|
(1,205
|
)
|
|
$
|
(1,161
|
)
|
|
Increase in life insurance cash surrender value
|
|
|
1,639
|
|
|
|
1,708
|
|
|
|
1,755
|
|
|
|
1,696
|
|
|
|
1,722
|
|
|
Other miscellaneous income
|
|
|
1,973
|
|
|
|
2,707
|
|
|
|
1,303
|
|
|
|
1,722
|
|
|
|
1,746
|
|
|
Total other, net
|
|
$
|
2,090
|
|
|
$
|
2,538
|
|
|
$
|
1,601
|
|
|
$
|
2,213
|
|
|
$
|
2,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.
Other noninterest expense consisted of the following for the periods presented:
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
Loan expense
|
|
$
|
3,411
|
|
|
$
|
3,696
|
|
|
$
|
3,485
|
|
|
$
|
2,954
|
|
|
$
|
2,799
|
|
|
Amortization of intangibles
|
|
|
666
|
|
|
|
752
|
|
|
|
752
|
|
|
|
736
|
|
|
|
812
|
|
|
FDIC assessment expense
|
|
|
1,540
|
|
|
|
1,500
|
|
|
|
1,410
|
|
|
|
1,590
|
|
|
|
1,590
|
|
|
Other miscellaneous expense
|
|
|
8,922
|
|
|
|
9,942
|
|
|
|
8,951
|
|
|
|
7,985
|
|
|
|
9,552
|
|
|
Total other expense
|
|
$
|
14,539
|
|
|
$
|
15,890
|
|
|
$
|
14,598
|
|
|
$
|
13,265
|
|
|
$
|
14,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 8 – Non-GAAP Financial Measures
In addition to capital ratios defined by U.S. generally accepted accounting principles (GAAP) and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.
Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other tangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.
These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure. The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands except per share data)
(unaudited)
Note 8 – Non-GAAP Financial Measures (continued)
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
TANGIBLE EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
1,759,351
|
|
|
$
|
1,725,035
|
|
|
$
|
1,694,903
|
|
|
$
|
1,665,716
|
|
|
$
|
1,640,070
|
|
|
Less: Goodwill
|
|
|
|
|
(385,155
|
)
|
|
|
(385,270
|
)
|
|
|
(385,270
|
)
|
|
|
(383,081
|
)
|
|
|
(380,671
|
)
|
|
Identifiable intangible assets
|
|
|
|
|
(7,118
|
)
|
|
|
(7,803
|
)
|
|
|
(8,550
|
)
|
|
|
(7,834
|
)
|
|
|
(8,049
|
)
|
|
Total average tangible equity
|
|
|
|
$
|
1,367,078
|
|
|
$
|
1,331,962
|
|
|
$
|
1,301,083
|
|
|
$
|
1,274,801
|
|
|
$
|
1,251,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERIOD END BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
1,759,705
|
|
|
$
|
1,741,117
|
|
|
$
|
1,710,041
|
|
|
$
|
1,673,944
|
|
|
$
|
1,652,399
|
|
|
Less: Goodwill
|
|
|
|
|
(384,237
|
)
|
|
|
(385,270
|
)
|
|
|
(385,270
|
)
|
|
|
(385,270
|
)
|
|
|
(381,717
|
)
|
|
Identifiable intangible assets
|
|
|
|
|
(6,724
|
)
|
|
|
(7,390
|
)
|
|
|
(8,142
|
)
|
|
|
(8,895
|
)
|
|
|
(7,537
|
)
|
|
Total tangible equity
|
|
(a)
|
|
$
|
1,368,744
|
|
|
$
|
1,348,457
|
|
|
$
|
1,316,629
|
|
|
$
|
1,279,779
|
|
|
$
|
1,263,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
16,878,313
|
|
|
$
|
16,551,840
|
|
|
$
|
15,558,162
|
|
|
$
|
15,692,079
|
|
|
$
|
14,019,829
|
|
|
Less: Goodwill
|
|
|
|
|
(384,237
|
)
|
|
|
(385,270
|
)
|
|
|
(385,270
|
)
|
|
|
(385,270
|
)
|
|
|
(381,717
|
)
|
|
Identifiable intangible assets
|
|
|
|
|
(6,724
|
)
|
|
|
(7,390
|
)
|
|
|
(8,142
|
)
|
|
|
(8,895
|
)
|
|
|
(7,537
|
)
|
|
Total tangible assets
|
|
(b)
|
|
$
|
16,487,352
|
|
|
$
|
16,159,180
|
|
|
$
|
15,164,750
|
|
|
$
|
15,297,914
|
|
|
$
|
13,630,575
|
|
|
Risk-weighted assets
|
|
(c)
|
|
$
|
12,188,988
|
|
|
$
|
12,017,378
|
|
|
$
|
11,963,269
|
|
|
$
|
11,539,157
|
|
|
$
|
11,427,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
51,962
|
|
|
$
|
51,217
|
|
|
$
|
54,440
|
|
|
$
|
32,150
|
|
|
$
|
22,218
|
|
|
Plus: Intangible amortization net of tax
|
|
|
|
|
500
|
|
|
|
564
|
|
|
|
564
|
|
|
|
552
|
|
|
|
609
|
|
|
Net income adjusted for intangible amortization
|
|
|
|
$
|
52,462
|
|
|
$
|
51,781
|
|
|
$
|
55,004
|
|
|
$
|
32,702
|
|
|
$
|
22,827
|
|
|
Period end common shares outstanding
|
|
(d)
|
|
|
63,394,522
|
|
|
|
63,424,526
|
|
|
|
63,423,820
|
|
|
|
63,422,439
|
|
|
|
63,396,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON EQUITY MEASUREMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity (1)
|
|
|
|
|
15.56
|
%
|
|
|
15.47
|
%
|
|
|
16.82
|
%
|
|
|
10.32
|
%
|
|
|
7.34
|
%
|
|
Tangible equity/tangible assets
|
|
(a)/(b)
|
|
|
8.30
|
%
|
|
|
8.34
|
%
|
|
|
8.68
|
%
|
|
|
8.37
|
%
|
|
|
9.27
|
%
|
|
Tangible equity/risk-weighted assets
|
|
(a)/(c)
|
|
|
11.23
|
%
|
|
|
11.22
|
%
|
|
|
11.01
|
%
|
|
|
11.09
|
%
|
|
|
11.05
|
%
|
|
Tangible book value
|
|
(a)/(d)*1,000
|
|
$
|
21.59
|
|
|
$
|
21.26
|
|
|
$
|
20.76
|
|
|
$
|
20.18
|
|
|
$
|
19.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON EQUITY TIER 1 CAPITAL (CET1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
1,759,705
|
|
|
$
|
1,741,117
|
|
|
$
|
1,710,041
|
|
|
$
|
1,673,944
|
|
|
$
|
1,652,399
|
|
|
CECL transition adjustment
|
|
|
|
|
26,829
|
|
|
|
31,199
|
|
|
|
32,647
|
|
|
|
32,693
|
|
|
|
26,476
|
|
|
AOCI-related adjustments
|
|
|
|
|
16,506
|
|
|
|
1,051
|
|
|
|
(5,684
|
)
|
|
|
(10,565
|
)
|
|
|
(7,698
|
)
|
|
CET1 adjustments and deductions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill net of associated deferred tax liabilities (DTLs)
|
|
|
|
|
(370,288
|
)
|
|
|
(371,333
|
)
|
|
|
(371,345
|
)
|
|
|
(371,342
|
)
|
|
|
(367,825
|
)
|
|
Other adjustments and deductions for CET1 (2)
|
|
|
|
|
(5,675
|
)
|
|
|
(6,190
|
)
|
|
|
(6,770
|
)
|
|
|
(7,352
|
)
|
|
|
(6,269
|
)
|
|
CET1 capital
|
|
(e)
|
|
|
1,427,077
|
|
|
|
1,395,844
|
|
|
|
1,358,889
|
|
|
|
1,317,378
|
|
|
|
1,297,083
|
|
|
Additional tier 1 capital instruments plus related surplus
|
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
Tier 1 capital
|
|
|
|
$
|
1,487,077
|
|
|
$
|
1,455,844
|
|
|
$
|
1,418,889
|
|
|
$
|
1,377,378
|
|
|
$
|
1,357,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio
|
|
(e)/(c)
|
|
|
11.71
|
%
|
|
|
11.62
|
%
|
|
|
11.36
|
%
|
|
|
11.42
|
%
|
|
|
11.35
|
%
|
|
(1)
|
Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
|
|
(2)
|
Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands except per share data)
(unaudited)
Note 8 – Non-GAAP Financial Measures (continued)
Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.
The following table presents pre-provision net revenue (PPNR) during the periods presented:
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
3/31/2021
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
6/30/2020
|
|
|
3/31/2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP)
|
|
$
|
102,336
|
|
|
$
|
111,378
|
|
|
$
|
106,207
|
|
|
$
|
105,000
|
|
|
$
|
103,952
|
|
|
Noninterest income (GAAP)
|
|
|
60,583
|
|
|
|
66,117
|
|
|
|
73,701
|
|
|
|
69,511
|
|
|
|
65,264
|
|
|
Pre-provision revenue
|
(a)
|
$
|
162,919
|
|
|
$
|
177,495
|
|
|
$
|
179,908
|
|
|
$
|
174,511
|
|
|
$
|
169,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP)
|
|
$
|
112,181
|
|
|
$
|
118,807
|
|
|
$
|
113,959
|
|
|
$
|
118,659
|
|
|
$
|
123,810
|
|
|
Less: Voluntary early retirement program
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,375
|
)
|
|
Credit loss expense related to off-balance sheet credit exposures
|
|
|
9,367
|
|
|
|
1,087
|
|
|
|
3,004
|
|
|
|
(6,242
|
)
|
|
|
(6,783
|
)
|
|
Adjusted noninterest expense - PPNR (Non-GAAP)
|
(b)
|
$
|
121,548
|
|
|
$
|
119,894
|
|
|
$
|
116,963
|
|
|
$
|
112,417
|
|
|
$
|
112,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPNR (Non-GAAP)
|
(a)-(b)
|
$
|
41,371
|
|
|
$
|
57,601
|
|
|
$
|
62,945
|
|
|
$
|
62,094
|
|
|
$
|
56,564
|
|
The following table presents adjustments to net income and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
3/31/2021
|
|
|
|
3/31/2020
|
|
|
|
|
Amount
|
|
|
Diluted EPS
|
|
|
|
Amount
|
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP)
|
|
$
|
51,962
|
|
|
$
|
0.82
|
|
|
|
$
|
22,218
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant non-routine transactions (net of taxes):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary early retirement program
|
|
|
—
|
|
|
|
—
|
|
|
|
|
3,281
|
|
|
|
0.05
|
|
|
Net Income adjusted for significant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-routine transactions (Non-GAAP)
|
|
$
|
51,962
|
|
|
$
|
0.82
|
|
|
|
$
|
25,499
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
Adjusted
|
|
|
|
Reported
|
|
|
Adjusted
|
|
|
|
|
(GAAP)
|
|
|
(Non-GAAP)
|
|
|
|
(GAAP)
|
|
|
(Non-GAAP)
|
|
|
Return on average equity
|
|
|
11.98
|
%
|
|
n/a
|
|
|
|
|
5.45
|
%
|
|
|
6.25
|
%
|
|
Return on average tangible equity
|
|
|
15.56
|
%
|
|
n/a
|
|
|
|
|
7.34
|
%
|
|
|
8.39
|
%
|
|
Return on average assets
|
|
|
1.26
|
%
|
|
n/a
|
|
|
|
|
0.66
|
%
|
|
|
0.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a - not applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)
Note 8 – Non-GAAP Financial Measures (continued)
The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense (GAAP)
|
|
$
|
112,181
|
|
|
$
|
118,807
|
|
|
$
|
113,959
|
|
|
$
|
118,659
|
|
|
$
|
123,810
|
|
|
Less:
|
Other real estate expense, net
|
|
(324
|
)
|
|
|
812
|
|
|
|
(1,203
|
)
|
|
|
(271
|
)
|
|
|
(1,294
|
)
|
|
|
Amortization of intangibles
|
|
(666
|
)
|
|
|
(752
|
)
|
|
|
(752
|
)
|
|
|
(736
|
)
|
|
|
(812
|
)
|
|
|
Voluntary early retirement program
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,375
|
)
|
|
|
Credit loss expense related to off-balance sheet exposures
|
|
9,367
|
|
|
|
1,087
|
|
|
|
3,004
|
|
|
|
(6,242
|
)
|
|
|
(6,783
|
)
|
|
|
Charitable contributions resulting in state tax credits
|
|
(350
|
)
|
|
|
(375
|
)
|
|
|
(375
|
)
|
|
|
(375
|
)
|
|
|
(375
|
)
|
|
Adjusted noninterest expense (Non-GAAP)
|
(c)
|
$
|
120,208
|
|
|
$
|
119,579
|
|
|
$
|
114,633
|
|
|
$
|
111,035
|
|
|
$
|
110,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP)
|
|
$
|
102,336
|
|
|
$
|
111,378
|
|
|
$
|
106,207
|
|
|
$
|
105,000
|
|
|
$
|
103,952
|
|
|
Add:
|
Tax equivalent adjustment
|
|
|
2,894
|
|
|
|
2,939
|
|
|
|
2,969
|
|
|
|
3,007
|
|
|
|
3,108
|
|
|
Net interest income-FTE (Non-GAAP)
|
(a)
|
$
|
105,230
|
|
|
$
|
114,317
|
|
|
$
|
109,176
|
|
|
$
|
108,007
|
|
|
$
|
107,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP)
|
|
$
|
60,583
|
|
|
$
|
66,117
|
|
|
$
|
73,701
|
|
|
$
|
69,511
|
|
|
$
|
65,264
|
|
|
Add:
|
Partnership amortization for tax credit purposes
|
|
1,522
|
|
|
|
1,877
|
|
|
|
1,457
|
|
|
|
1,205
|
|
|
|
1,161
|
|
|
Adjusted noninterest income (Non-GAAP)
|
(b)
|
$
|
62,105
|
|
|
$
|
67,994
|
|
|
$
|
75,158
|
|
|
$
|
70,716
|
|
|
$
|
66,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue (Non-GAAP)
|
(a)+(b)
|
$
|
167,335
|
|
|
$
|
182,311
|
|
|
$
|
184,334
|
|
|
$
|
178,723
|
|
|
$
|
173,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (Non-GAAP)
|
(c)/((a)+(b))
|
|
71.84
|
%
|
|
|
65.59
|
%
|
|
|
62.19
|
%
|
|
|
62.13
|
%
|
|
|
63.50
|
%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210427006023/en/
Trustmark Investor Contacts:
Thomas C. Owens
Treasurer and Principal Financial Officer
601-208-7853
F. Joseph Rein, Jr.
Senior Vice President
601-208-6898
Trustmark Media Contact:
Melanie A. Morgan
Senior Vice President
601-208-2979