Equibles

8-K

TRUSTMARK CORP (TRMK)

8-K 2022-07-26 For: 2022-07-26
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Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

July 26, 2022

Date of Report (Date of earliest event reported)

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TRUSTMARK CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi 000-03683 64-0471500
(State or other jurisdiction<br><br>of incorporation) (Commission<br><br>File Number) (IRS Employer<br><br>Identification No.)
248 East Capitol Street, Jackson, Mississippi 39201
--- ---
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (601) 208-5111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered Pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, no par value TRMK Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 26, 2022, Trustmark Corporation issued a press release announcing its financial results for the period ended June 30, 2022. A copy of this press release and the accompanying financial statements and slide presentation are attached hereto as Exhibits 99.1 and 99.2 to this report and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number Description of Exhibits
99.1 Press release announcing financial results for the period ended June 30, 2022
99.2 Investor slide presentation for the period ended June 30, 2022
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRUSTMARK CORPORATION

BY: /s/ Thomas C. Owens
Thomas C. Owens
Treasurer and Principal Financial Officer
DATE: July 26, 2022

EX-99.1

Exhibit 99.1

News Release

Trustmark Corporation Announces Second Quarter 2022 Financial Results

Performance Reflects Strong Loan Growth, Solid Credit Quality and

Expanding Net Interest Margin

JACKSON, Miss. – July 26, 2022 – Trustmark Corporation (NASDAQGS: TRMK) reported net income of $34.3 million in the second quarter of 2022, representing diluted earnings per share of $0.56. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2022, to shareholders of record on September 1, 2022.

Second Quarter Highlights

• Loans held for investment (HFI) increased $547.7 million, or 5.3%, from the prior quarter

• Deposits totaled $14.8 billion, with noninterest-bearing deposits representing 30.5% of total deposits

• Total revenue expanded 8.1% from the prior quarter to $165.9 million

• Net interest income (FTE) increased 12.9% from the prior quarter to $115.6 million, resulting in a 32 basis point expansion in the net interest margin to 2.90%

• Noninterest income totaled $53.3 million, representing 32.1% of total revenue

• Credit quality remained solid; recoveries exceeded charge-offs and nonperforming assets declined 3.7% linked-quarter

Duane A. Dewey, President and CEO, stated, “Our company produced strong second quarter results with significant loan growth, expansion of the net interest margin, consistent performance from our fee businesses and solid credit quality. Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner. Our continued implementation of enhanced technology, coupled with a comprehensive program to improve efficiency, enhances Trustmark’s ability to grow and serve customers and build long-term value for our shareholders.”

Balance Sheet Management

• Loans HFI totaled $10.9 billion, up 5.3% from the prior quarter and 7.8% year-over-year

• Investment securities totaled $3.8 billion, up 4.3% from the prior quarter and 26.8% year-over-year

• Deposits totaled $14.8 billion, down 2.3% from the prior quarter and up 0.9% year-over-year

• Maintained strong capital position with CET1 ratio of 11.01% and total risk-based capital ratio of 13.26%

Loans HFI totaled $10.9 billion at June 30, 2022, reflecting an increase of $547.7 million, or 5.3%, linked-quarter and $792.0 million, or 7.8%, year-over-year. Linked-quarter growth was broad-based, with increases in virtually all categories with the exception of loans secured by other real estate and state and other political subdivision loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.8 billion at June 30, 2022, down $343.1 million, or 2.3%, from the prior quarter and up $138.1 million, or 0.9%, year-over-year. The linked-quarter change was principally attributable to a decline in public funds. Trustmark continues to maintain a strong liquidity position as loans HFI represented 74.1% of total deposits at June 30, 2022. Noninterest-bearing deposits represented 30.5% of total deposits at the end of the second quarter. Interest-bearing deposit costs totaled 0.11% in the second quarter, unchanged from the prior quarter. The total cost of interest-bearing liabilities was 0.17% in the second quarter of 2022, an increase of 1 basis point from the prior quarter.

During the second quarter, Trustmark repurchased $7.5 million, or approximately 263 thousand of its common shares. During the first six months of 2022, Trustmark repurchased $16.6 million, or approximately 542 thousand of its common shares. At June 30, 2022, Trustmark had $83.4 million in remaining authority under its existing stock repurchase program, which expires on December 31, 2022. 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 June 30, 2022, Trustmark’s tangible equity-to-tangible assets ratio was 7.23% while its total risk-based capital ratio was 13.26%. Tangible book value per share was $19.58 at June 30, 2022, down 3.2% from the prior quarter reflecting a decline in accumulated other comprehensive income due to mark-to-market adjustments on securities available for sale resulting from the increase in market interest rates during the second quarter.

Credit Quality

• Allowance for credit losses (ACL) represented 475% of nonaccrual loans, excluding individually evaluated loans at June 30, 2022

• Recoveries exceeded charge-offs by $1.7 million in the second quarter

• Other real estate totaled $3.0 million at June 30, 2022

Nonaccrual loans totaled $62.1 million at June 30, 2022, down $2.3 million from the prior quarter and up $10.6 million year-over-year. Other real estate totaled $3.0 million, reflecting a $153 thousand decrease from the prior quarter and decline of $6.4 million year-over-year. Collectively, nonperforming assets totaled $65.1 million at June 30, 2022, reflecting a linked-quarter decrease of $2.5 million and year-over-year increase of $4.2 million.

The provision for credit losses for loans HFI was $2.7 million in the second quarter. This provisioning was primarily driven by reserves related to loan growth and the nature and volume of the portfolio offset by improvements in macroeconomic forecasts. The provision for credit losses for off-balance sheet credit exposures was a negative $1.6 million in the second quarter. Off-balance sheet negative provision expense was primarily driven by improvements in macroeconomic forecasts. Collectively, the provision for credit losses totaled $1.1 million in the second quarter compared to a negative $2.0 million in the prior quarter and an expense of $537 thousand in the second quarter of 2021.

Allocation of Trustmark’s $103.1 million allowance for credit losses on loans HFI represented 0.88% of commercial loans and 1.14% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 0.94% at June 30, 2022. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Total revenue increased $12.5 million, or 8.1%, linked-quarter

• Net interest income (FTE) expanded $13.2 million, or 12.9%, linked-quarter

• Noninterest income totaled $53.3 million, representing 32.1% of total revenue in the second quarter

Revenue in the second quarter totaled $165.9 million, an increase of $12.5 million, or 8.1%, from the prior quarter and a decrease of $9.9 million, or 5.6%, from the same quarter in the prior year. The linked-quarter increase reflected higher net interest income while the decline in revenue year-over-year was principally due to the reduction in interest and fees on Paycheck Protection Program (PPP) loans as well as the decline in mortgage banking revenue from historically high levels.

Net interest income (FTE) in the second quarter totaled $115.6 million, resulting in a net interest margin of 2.90%, up 32 basis points from the prior quarter. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 3.06% during the second quarter, an increase of 18 basis points when compared to the prior quarter. The expansion of the net interest margin excluding PPP loans and the Federal Reserve Bank balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio which resulted from the higher interest rate environment.

Noninterest income in the second quarter totaled $53.3 million, a decrease of $862 thousand from the prior quarter and $3.2 million year-over-year. The linked quarter decline was attributable to lower mortgage banking and other, net revenue, which were offset by increased bank card and other fees and service charges on deposit accounts. Mortgage loan production in the second quarter totaled $681.4 million, up 25.2% from the prior quarter and down 7.5% year-over-year. Mortgage banking revenue totaled $8.1 million in the second quarter, a decrease of $1.7 million from the prior quarter and $9.2 million year-over-year. The linked-quarter decline was principally attributable to changes in the mortgage servicing net hedge ineffectiveness.

Wealth management revenue totaled $9.1 million in the second quarter, an increase of $48 thousand, from the prior quarter and $156 thousand, year-over-year. The linked-quarter increase was attributable to increased trust and investment revenue offset by lower brokerage revenue. Insurance revenue totaled $13.7 million in the second quarter, down 2.7%, or $387 thousand, from the prior quarter and up 12.2%, or $1.5 million, year-over-year. Service charges on deposit accounts increased $775 thousand, or 8.2%, from the prior quarter and $2.6 million, or 34.3%, year-over-year. Bank card and other fees increased $1.7 million from the prior quarter and $1.9 million year-over-year.

Noninterest Expense

• Noninterest expense totaled $123.8 million in the second quarter, up $2.2 million, or 1.8%, from the prior quarter

• Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses and charitable contributions resulting in state tax credits, increased $1.8 million, or 1.5%, from the prior quarter; please refer to the Consolidated Financial Information, Note 6 – Non-GAAP Financial Measures

Noninterest expense in the second quarter was $123.8 million, up $2.2 million, or 1.8%, from the prior quarter. Salaries and employee benefits increased $2.1 million linked-quarter due primarily to commissions and annual merit increases. Services and fees were relatively unchanged linked-quarter while net occupancy expenses were down 2.6%.

FIT2GROW

“During the second quarter, we announced FIT2GROW, a comprehensive program of Focus, Innovation and Transformation designed to enhance Trustmark’s ability to grow and serve customers. As part of this program, we are focusing our community bank efforts on commercial, small business, and consumer lines of business. This will provide expertise and focus while also generating profitable revenue growth. We have opened a new Atlanta, Georgia LPO to focus on our institutional businesses, including Commercial Real Estate, Residential Real Estate, Corporate Banking and Specialty Banking. We have added seasoned professionals to our team to carry out our strategy in the southeast. Within our Specialty Banking unit based in Atlanta, plans are underway to establish an Equipment Finance line of business to focus on national, middle to large ticket business. We look forward to adding this product suite to our company,” said Dewey.

“Innovation is also a key component of FIT2GROW. In recent years, investments in state-of-the-art technology were made in Trustmark’s insurance, wealth management and mortgage banking areas as well as in human resources and accounting systems. We also made significant upgrades to our mobile banking platform, ITM network and digital marketing programs. Collectively, these investments have positioned Trustmark for growth, expansion and efficiency. More recently, we have been working toward the implementation of a new core banking system for consumer and commercial loans, deposits, and customer information. This implementation is a multi-year project, the next phase of which will occur in the third quarter of 2022. We have accelerated efforts to optimize our branch network, reflecting changing customer preferences and the continued migration to mobile and digital channels as announced in the first quarter. We will continue to pursue opportunities to redesign workflows and restructure the organization. This will further leverage the investments in technology, will broaden our reach, enhance customer experiences, and improve efficiency 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, July 27, 2022, 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, August 10, 2022, in archived format at the same web address or by calling (877) 344-7529, passcode 1899156.

Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, 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 (SEC) 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. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

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, 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 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 Investor Contacts: Trustmark Media Contact:
Thomas C. Owens Melanie A. Morgan
Treasurer and Senior Vice President
Principal Financial Officer 601-208-2979
601-208-7853

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
QUARTERLY AVERAGE BALANCES 3/31/2022 6/30/2021 Change % Change Change % Change
Securities AFS-taxable (1) 3,094,364 $ 3,245,502 $ 2,339,662 ) -4.7 % 32.3 %
Securities AFS-nontaxable 5,110 5,127 5,174 ) -0.3 % ) -1.2 %
Securities HTM-taxable (1) 811,599 410,851 441,688 97.5 % 83.7 %
Securities HTM-nontaxable 5,630 7,327 10,958 ) -23.2 % ) -48.6 %
Total securities 3,916,703 3,668,807 2,797,482 6.8 % 40.0 %
Paycheck protection program loans (PPP) 17,746 29,009 648,222 ) -38.8 % ) -97.3 %
Loans (includes loans held for sale) 10,910,178 10,550,712 10,315,927 3.4 % 5.8 %
Fed funds sold and reverse repurchases 110 56 55 96.4 % 100.0 %
Other earning assets 1,139,312 1,811,713 1,750,385 ) -37.1 % ) -34.9 %
Total earning assets 15,984,049 16,060,297 15,512,071 ) -0.5 % 3.0 %
Allowance for credit losses (ACL), loans held    for investment (LHFI) (99,106 ) (99,390 ) (112,346 ) -0.3 % -11.8 %
Other assets 1,513,127 1,550,848 1,622,388 ) -2.4 % ) -6.7 %
Total assets 17,398,070 $ 17,511,755 $ 17,022,113 ) -0.6 % 2.2 %
Interest-bearing demand deposits 4,578,235 $ 4,429,056 $ 4,056,910 3.4 % 12.9 %
Savings deposits 4,638,849 4,791,104 4,627,180 ) -3.2 % 0.3 %
Time deposits 1,159,065 1,193,435 1,301,896 ) -2.9 % ) -11.0 %
Total interest-bearing deposits 10,376,149 10,413,595 9,985,986 ) -0.4 % 3.9 %
Fed funds purchased and repurchases 118,753 212,006 174,620 ) -44.0 % ) -32.0 %
Other borrowings 80,283 91,090 132,199 ) -11.9 % ) -39.3 %
Subordinated notes 123,116 123,061 122,897 0.0 % 0.2 %
Junior subordinated debt securities 61,856 61,856 61,856 0.0 % 0.0 %
Total interest-bearing liabilities 10,760,157 10,901,608 10,477,558 ) -1.3 % 2.7 %
Noninterest-bearing deposits 4,590,338 4,601,108 4,512,268 ) -0.2 % 1.7 %
Other liabilities 439,266 295,287 251,582 48.8 % 74.6 %
Total liabilities 15,789,761 15,798,003 15,241,408 ) -0.1 % 3.6 %
Shareholders' equity 1,608,309 1,713,752 1,780,705 ) -6.2 % ) -9.7 %
Total liabilities and equity 17,398,070 $ 17,511,755 $ 17,022,113 ) -0.6 % 2.2 %
(1) During the second quarter of 2022, Trustmark transferred 343.1 million of securities available for sale to securities held to maturity.
See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
PERIOD END BALANCES 3/31/2022 6/30/2021 Change % Change Change % Change
Cash and due from banks 742,461 $ 1,917,564 $ 2,267,224 ) -61.3 % ) -67.3 %
Securities available for sale (1) 2,644,364 3,018,246 2,548,739 ) -12.4 % 3.8 %
Securities held to maturity (1) 1,137,754 607,598 433,012 87.3 % n/m
PPP loans 12,549 18,579 166,119 ) -32.5 % ) -92.4 %
Loans held for sale (LHFS) 190,186 222,538 332,132 ) -14.5 % ) -42.7 %
Loans held for investment (LHFI) 10,944,840 10,397,129 10,152,869 5.3 % 7.8 %
ACL LHFI (103,140 ) (98,734 ) (104,032 ) ) -4.5 % 0.9 %
Net LHFI 10,841,700 10,298,395 10,048,837 5.3 % 7.9 %
Premises and equipment, net 207,914 207,301 200,970 0.3 % 3.5 %
Mortgage servicing rights 121,014 111,050 80,764 9.0 % 49.8 %
Goodwill 384,237 384,237 384,237 0.0 % 0.0 %
Identifiable intangible assets 4,264 4,591 6,170 ) -7.1 % ) -30.9 %
Other real estate 3,034 3,187 9,439 ) -4.8 % ) -67.9 %
Operating lease right-of-use assets 34,684 34,048 33,201 1.9 % 4.5 %
Other assets 627,349 614,217 587,288 2.1 % 6.8 %
Total assets 16,951,510 $ 17,441,551 $ 17,098,132 ) -2.8 % ) -0.9 %
Deposits:
Noninterest-bearing 4,509,472 $ 4,739,102 $ 4,446,991 ) -4.8 % 1.4 %
Interest-bearing 10,260,696 10,374,190 10,185,093 ) -1.1 % 0.7 %
Total deposits 14,770,168 15,113,292 14,632,084 ) -2.3 % 0.9 %
Fed funds purchased and repurchases 70,157 170,499 157,176 ) -58.9 % ) -55.4 %
Other borrowings 72,553 84,644 117,223 ) -14.3 % ) -38.1 %
Subordinated notes 123,152 123,097 122,932 0.0 % 0.2 %
Junior subordinated debt securities 61,856 61,856 61,856 0.0 % 0.0 %
ACL on off-balance sheet credit exposures 32,949 34,517 33,733 ) -4.5 % ) -2.3 %
Operating lease liabilities 37,108 35,912 34,959 3.3 % 6.1 %
Other liabilities 196,871 186,352 158,860 5.6 % 23.9 %
Total liabilities 15,364,814 15,810,169 15,318,823 ) -2.8 % 0.3 %
Common stock 12,752 12,806 13,079 ) -0.4 % ) -2.5 %
Capital surplus 160,876 167,094 210,420 ) -3.7 % ) -23.5 %
Retained earnings 1,620,210 1,600,138 1,566,451 1.3 % 3.4 %
Accumulated other comprehensive    income (loss), net of tax (207,142 ) (148,656 ) (10,641 ) ) -39.3 % ) n/m
Total shareholders' equity 1,586,696 1,631,382 1,779,309 ) -2.7 % ) -10.8 %
Total liabilities and equity 16,951,510 $ 17,441,551 $ 17,098,132 ) -2.8 % ) -0.9 %
(1) During the second quarter of 2022, Trustmark transferred 343.1 million of securities available for sale to securities held to maturity.
See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands except per share data)
(unaudited)
Quarter Ended Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
INCOME STATEMENTS 6/30/2022 3/31/2022 6/30/2021 Change % Change Change % Change
Interest and fees on LHFS & LHFI-FTE $ 103,033 $ 93,252 $ 93,698 10.5 % 10.0 %
Interest and fees on PPP loans 184 168 25,555 9.5 % ) -99.3 %
Interest on securities-taxable 14,561 12,357 8,991 17.8 % 62.0 %
Interest on securities-tax exempt-FTE 107 122 149 ) -12.3 % ) -28.2 %
Interest on fed funds sold and reverse repurchases 1 — — n/m n/m
Other interest income 2,214 817 489 n/m n/m
Total interest income-FTE 120,100 106,716 128,882 12.5 % ) -6.8 %
Interest on deposits 2,774 2,760 4,630 0.5 % ) -40.1 %
Interest on fed funds purchased and repurchases 70 70 59 0.0 % 18.6 %
Other interest expense 1,664 1,539 1,813 8.1 % ) -8.2 %
Total interest expense 4,508 4,369 6,502 3.2 % ) -30.7 %
Net interest income-FTE 115,592 102,347 122,380 12.9 % ) -5.5 %
Provision for credit losses, LHFI 2,716 (860 ) (3,991 ) n/m n/m
Provision for credit losses, off-balance sheet <br>   credit exposures (1,568 ) (1,106 ) 4,528 ) -41.8 % ) n/m
Net interest income after provision-FTE 114,444 104,313 121,843 9.7 % ) -6.1 %
Service charges on deposit accounts 10,226 9,451 7,613 8.2 % 34.3 %
Bank card and other fees 10,167 8,442 8,301 20.4 % 22.5 %
Mortgage banking, net 8,149 9,873 17,333 ) -17.5 % ) -53.0 %
Insurance commissions 13,702 14,089 12,217 ) -2.7 % 12.2 %
Wealth management 9,102 9,054 8,946 0.5 % 1.7 %
Other, net 1,907 3,206 2,001 ) -40.5 % ) -4.7 %
Total noninterest income 53,253 54,115 56,411 ) -1.6 % ) -5.6 %
Salaries and employee benefits 71,679 69,585 70,115 3.0 % 2.2 %
Services and fees 24,538 24,453 21,769 0.3 % 12.7 %
Net occupancy-premises 6,892 7,079 6,578 ) -2.6 % 4.8 %
Equipment expense 6,047 6,061 5,567 ) -0.2 % 8.6 %
Other expense 14,611 14,341 14,650 1.9 % ) -0.3 %
Total noninterest expense 123,767 121,519 118,679 1.8 % 4.3 %
Income before income taxes and tax eq adj 43,930 36,909 59,575 19.0 % ) -26.3 %
Tax equivalent adjustment 2,916 3,003 2,957 ) -2.9 % ) -1.4 %
Income before income taxes 41,014 33,906 56,618 21.0 % ) -27.6 %
Income taxes 6,730 4,695 8,637 43.3 % ) -22.1 %
Net income $ 34,284 $ 29,211 $ 47,981 17.4 % ) -28.5 %
Per share data
Earnings per share - basic $ 0.56 $ 0.47 $ 0.76 19.1 % ) -26.3 %
Earnings per share - diluted $ 0.56 $ 0.47 $ 0.76 19.1 % ) -26.3 %
Dividends per share $ 0.23 $ 0.23 $ 0.23 0.0 % 0.0 %
Weighted average shares outstanding
Basic 61,378,226 61,514,395 63,214,593
Diluted 61,546,285 61,709,797 63,409,683
Period end shares outstanding 61,201,123 61,463,392 62,773,226
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
Quarter Ended Linked Quarter Year over Year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NONPERFORMING ASSETS (1) 6/30/2022 3/31/2022 6/30/2021 Change % Change Change % Change
Nonaccrual LHFI
Alabama $ 2,698 $ 7,506 $ 8,952 ) -64.1 % ) -69.9 %
Florida 233 310 467 ) -24.8 % ) -50.1 %
Mississippi (2) 23,039 21,318 23,422 8.1 % ) -1.6 %
Tennessee (3) 9,500 9,266 10,751 2.5 % ) -11.6 %
Texas 26,582 25,999 7,856 2.2 % n/m
Total nonaccrual LHFI 62,052 64,399 51,448 ) -3.6 % 20.6 %
Other real estate
Alabama 84 — 2,830 n/m ) -97.0 %
Mississippi (2) 2,950 3,187 6,550 ) -7.4 % ) -55.0 %
Tennessee (3) — — 59 n/m ) n/m
Total other real estate 3,034 3,187 9,439 ) -4.8 % ) -67.9 %
Total nonperforming assets $ 65,086 $ 67,586 $ 60,887 ) -3.7 % 6.9 %
LOANS PAST DUE OVER 90 DAYS (1)
LHFI $ 1,347 $ 1,503 $ 423 ) -10.4 % n/m
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase) $ 51,164 $ 62,078 $ 81,538 ) -17.6 % ) -37.3 %
Quarter Ended Linked Quarter Year over Year
ACL LHFI (1) 6/30/2022 3/31/2022 6/30/2021 Change % Change Change % Change
Beginning Balance $ 98,734 $ 99,457 $ 109,191 ) -0.7 % ) -9.6 %
Provision for credit losses, LHFI 2,716 (860 ) (3,991 ) n/m n/m
Charge-offs (2,277 ) (2,242 ) (4,828 ) ) -1.6 % 52.8 %
Recoveries 3,967 2,379 3,660 66.8 % 8.4 %
Net (charge-offs) recoveries 1,690 137 (1,168 ) n/m n/m
Ending Balance $ 103,140 $ 98,734 $ 104,032 4.5 % ) -0.9 %
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama $ 1,129 $ 699 $ 203 61.5 % n/m
Florida 761 (26 ) 167 n/m n/m
Mississippi (2) (266 ) (88 ) (3,071 ) ) n/m -91.3 %
Tennessee (3) 31 (424 ) 1,031 n/m ) -97.0 %
Texas 35 (24 ) 502 n/m ) -93.0 %
Total net (charge-offs) recoveries $ 1,690 $ 137 $ (1,168 ) n/m 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

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AVERAGE BALANCES 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Securities AFS-taxable (1) 3,094,364 $ 3,245,502 $ 3,156,740 $ 2,686,765 $ 2,339,662 $ 3,169,515 $ 2,219,543
Securities AFS-nontaxable 5,110 5,127 5,143 5,159 5,174 5,118 5,182
Securities HTM-taxable (1) 811,599 410,851 364,038 401,685 441,688 612,332 465,343
Securities HTM-nontaxable 5,630 7,327 7,618 8,641 10,958 6,474 17,478
Total securities 3,916,703 3,668,807 3,533,539 3,102,250 2,797,482 3,793,439 2,707,546
PPP loans 17,746 29,009 42,749 122,176 648,222 23,346 623,319
Loans (includes loans held for sale) 10,910,178 10,550,712 10,487,679 10,389,826 10,315,927 10,731,438 10,316,122
Fed funds sold and reverse repurchases 110 56 58 69 55 83 95
Other earning assets 1,139,312 1,811,713 1,839,498 2,038,515 1,750,385 1,473,655 1,709,373
Total earning assets 15,984,049 16,060,297 15,903,523 15,652,836 15,512,071 16,021,961 15,356,455
ACL LHFI (99,106 ) (99,390 ) (104,148 ) (104,857 ) (112,346 ) (99,247 ) (115,932 )
Other assets 1,513,127 1,550,848 1,570,501 1,602,611 1,622,388 1,531,884 1,611,877
Total assets 17,398,070 $ 17,511,755 $ 17,369,876 $ 17,150,590 $ 17,022,113 $ 17,454,598 $ 16,852,400
Interest-bearing demand deposits 4,578,235 $ 4,429,056 $ 4,353,599 $ 4,224,717 $ 4,056,910 $ 4,504,058 $ 3,901,146
Savings deposits 4,638,849 4,791,104 4,585,624 4,617,683 4,627,180 4,714,556 4,643,020
Time deposits 1,159,065 1,193,435 1,220,083 1,258,829 1,301,896 1,176,155 1,336,670
Total interest-bearing deposits 10,376,149 10,413,595 10,159,306 10,101,229 9,985,986 10,394,769 9,880,836
Fed funds purchased and repurchases 118,753 212,006 201,856 147,635 174,620 165,122 170,786
Other borrowings 80,283 91,090 94,328 109,735 132,199 85,657 149,467
Subordinated notes 123,116 123,061 123,007 122,951 122,897 123,089 122,886
Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 61,856 61,856
Total interest-bearing liabilities 10,760,157 10,901,608 10,640,353 10,543,406 10,477,558 10,830,493 10,385,831
Noninterest-bearing deposits 4,590,338 4,601,108 4,679,951 4,566,924 4,512,268 4,595,693 4,438,324
Other liabilities 439,266 295,287 291,449 257,956 251,582 367,673 258,158
Total liabilities 15,789,761 15,798,003 15,611,753 15,368,286 15,241,408 15,793,859 15,082,313
Shareholders' equity 1,608,309 1,713,752 1,758,123 1,782,304 1,780,705 1,660,739 1,770,087
Total liabilities and equity 17,398,070 $ 17,511,755 $ 17,369,876 $ 17,150,590 $ 17,022,113 $ 17,454,598 $ 16,852,400
(1) During the second quarter of 2022, Trustmark transferred 343.1 million of securities available for sale to securities held to maturity.
See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
PERIOD END BALANCES 3/31/2022 12/31/2021 9/30/2021 6/30/2021
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Cash and due from banks 742,461 $ 1,917,564 $ 2,266,829 $ 2,175,058 $ 2,267,224
Securities available for sale (1) 2,644,364 3,018,246 3,238,877 3,057,605 2,548,739
Securities held to maturity (1) 1,137,754 607,598 342,537 394,905 433,012
PPP loans 12,549 18,579 33,336 46,486 166,119
LHFS 190,186 222,538 275,706 335,339 332,132
LHFI 10,944,840 10,397,129 10,247,829 10,174,899 10,152,869
ACL LHFI (103,140 ) (98,734 ) (99,457 ) (104,073 ) (104,032 )
Net LHFI 10,841,700 10,298,395 10,148,372 10,070,826 10,048,837
Premises and equipment, net 207,914 207,301 205,644 201,937 200,970
Mortgage servicing rights 121,014 111,050 87,687 84,101 80,764
Goodwill 384,237 384,237 384,237 384,237 384,237
Identifiable intangible assets 4,264 4,591 5,074 5,621 6,170
Other real estate 3,034 3,187 4,557 6,213 9,439
Operating lease right-of-use assets 34,684 34,048 34,603 34,689 33,201
Other assets 627,349 614,217 568,177 567,627 587,288
Total assets 16,951,510 $ 17,441,551 $ 17,595,636 $ 17,364,644 $ 17,098,132
Deposits:
Noninterest-bearing 4,509,472 $ 4,739,102 $ 4,771,065 $ 4,987,885 $ 4,446,991
Interest-bearing 10,260,696 10,374,190 10,316,095 9,934,954 10,185,093
Total deposits 14,770,168 15,113,292 15,087,160 14,922,839 14,632,084
Fed funds purchased and repurchases 70,157 170,499 238,577 146,417 157,176
Other borrowings 72,553 84,644 91,025 94,889 117,223
Subordinated notes 123,152 123,097 123,042 122,987 122,932
Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856
ACL on off-balance sheet credit exposures 32,949 34,517 35,623 32,684 33,733
Operating lease liabilities 37,108 35,912 36,468 36,531 34,959
Other liabilities 196,871 186,352 180,574 177,494 158,860
Total liabilities 15,364,814 15,810,169 15,854,325 15,595,697 15,318,823
Common stock 12,752 12,806 12,845 13,014 13,079
Capital surplus 160,876 167,094 175,913 201,837 210,420
Retained earnings 1,620,210 1,600,138 1,585,113 1,573,176 1,566,451
Accumulated other comprehensive income (loss),    net of tax (207,142 ) (148,656 ) (32,560 ) (19,080 ) (10,641 )
Total shareholders' equity 1,586,696 1,631,382 1,741,311 1,768,947 1,779,309
Total liabilities and equity 16,951,510 $ 17,441,551 $ 17,595,636 $ 17,364,644 $ 17,098,132
(1) During the second quarter of 2022, Trustmark transferred 343.1 million of securities available for sale to securities held to maturity.
See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands except per share data)
(unaudited)
Quarter Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
INCOME STATEMENTS 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Interest and fees on LHFS & LHFI-FTE $ 103,033 $ 93,252 $ 94,137 $ 94,101 $ 93,698 $ 196,285 $ 187,092
Interest and fees on PPP loans 184 168 397 1,533 25,555 352 34,796
Interest on securities-taxable 14,561 12,357 10,796 9,973 8,991 26,918 17,929
Interest on securities-tax exempt-FTE 107 122 123 132 149 229 439
Interest on fed funds sold and reverse repurchases 1 — — — — 1 —
Other interest income 2,214 817 826 949 489 3,031 992
Total interest income-FTE 120,100 106,716 106,279 106,688 128,882 226,816 241,248
Interest on deposits 2,774 2,760 3,401 3,691 4,630 5,534 9,853
Interest on fed funds purchased and repurchases 70 70 66 51 59 140 115
Other interest expense 1,664 1,539 1,580 1,733 1,813 3,203 3,670
Total interest expense 4,508 4,369 5,047 5,475 6,502 8,877 13,638
Net interest income-FTE 115,592 102,347 101,232 101,213 122,380 217,939 227,610
Provision for credit losses, LHFI 2,716 (860 ) (4,515 ) (2,492 ) (3,991 ) 1,856 (14,492 )
Provision for credit losses, off-balance sheet <br>   credit exposures (1,568 ) (1,106 ) 2,939 (1,049 ) 4,528 (2,674 ) (4,839 )
Net interest income after provision-FTE 114,444 104,313 102,808 104,754 121,843 218,757 246,941
Service charges on deposit accounts 10,226 9,451 9,366 8,911 7,613 19,677 14,969
Bank card and other fees 10,167 8,442 8,340 8,549 8,301 18,609 17,773
Mortgage banking, net 8,149 9,873 11,609 14,004 17,333 18,022 38,137
Insurance commissions 13,702 14,089 11,716 12,133 12,217 27,791 24,662
Wealth management 9,102 9,054 8,757 9,071 8,946 18,156 17,362
Other, net 1,907 3,206 979 1,481 2,001 5,113 4,091
Total noninterest income 53,253 54,115 50,767 54,149 56,411 107,368 116,994
Salaries and employee benefits 71,679 69,585 68,258 74,623 70,115 141,264 141,277
Services and fees 24,538 24,453 22,904 22,306 21,769 48,991 44,253
Net occupancy-premises 6,892 7,079 6,816 6,854 6,578 13,971 13,373
Equipment expense 6,047 6,061 6,585 5,941 5,567 12,108 11,811
Other expense 14,611 14,341 14,906 19,876 14,650 28,952 29,513
Total noninterest expense 123,767 121,519 119,469 129,600 118,679 245,286 240,227
Income before income taxes and tax eq adj 43,930 36,909 34,106 29,303 59,575 80,839 123,708
Tax equivalent adjustment 2,916 3,003 2,906 2,947 2,957 5,919 5,851
Income before income taxes 41,014 33,906 31,200 26,356 56,618 74,920 117,857
Income taxes 6,730 4,695 4,978 5,156 8,637 11,425 17,914
Net income $ 34,284 $ 29,211 $ 26,222 $ 21,200 $ 47,981 $ 63,495 $ 99,943
Per share data
Earnings per share - basic $ 0.56 $ 0.47 $ 0.42 $ 0.34 $ 0.76 $ 1.03 $ 1.58
Earnings per share - diluted $ 0.56 $ 0.47 $ 0.42 $ 0.34 $ 0.76 $ 1.03 $ 1.57
Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.46 $ 0.46
Weighted average shares outstanding
Basic 61,378,226 61,514,395 62,037,884 62,521,684 63,214,593 61,445,934 63,304,751
Diluted 61,546,285 61,709,797 62,264,983 62,730,157 63,409,683 61,624,569 63,465,515
Period end shares outstanding 61,201,123 61,463,392 61,648,679 62,461,832 62,773,226 61,201,123 62,773,226

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
Quarter Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NONPERFORMING ASSETS (1) 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021
Nonaccrual LHFI
Alabama $ 2,698 $ 7,506 $ 8,182 $ 9,223 $ 8,952
Florida 233 310 313 381 467
Mississippi (2) 23,039 21,318 21,636 22,898 23,422
Tennessee (3) 9,500 9,266 10,501 10,356 10,751
Texas 26,582 25,999 22,066 23,382 7,856
Total nonaccrual LHFI 62,052 64,399 62,698 66,240 51,448
Other real estate
Alabama 84 — — 613 2,830
Mississippi (2) 2,950 3,187 4,557 5,600 6,550
Tennessee (3) — — — — 59
Total other real estate 3,034 3,187 4,557 6,213 9,439
Total nonperforming assets $ 65,086 $ 67,586 $ 67,255 $ 72,453 $ 60,887
LOANS PAST DUE OVER 90 DAYS (1)
LHFI $ 1,347 $ 1,503 $ 2,114 $ 625 $ 423
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase) $ 51,164 $ 62,078 $ 69,894 $ 75,091 $ 81,538
Quarter Ended Six Months Ended
ACL LHFI (1) 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Beginning Balance $ 98,734 $ 99,457 $ 104,073 $ 104,032 $ 109,191 $ 99,457 $ 117,306
Provision for credit losses, LHFI 2,716 (860 ) (4,515 ) (2,492 ) (3,991 ) 1,856 (14,492 )
Charge-offs (2,277 ) (2,242 ) (2,616 ) (1,586 ) (4,828 ) (4,519 ) (6,073 )
Recoveries 3,967 2,379 2,515 4,119 3,660 6,346 7,291
Net (charge-offs) recoveries 1,690 137 (101 ) 2,533 (1,168 ) 1,827 1,218
Ending Balance $ 103,140 $ 98,734 $ 99,457 $ 104,073 $ 104,032 $ 103,140 $ 104,032
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama $ 1,129 $ 699 $ 747 $ 247 $ 203 $ 1,828 $ 305
Florida 761 (26 ) (32 ) 356 167 735 197
Mississippi (2) (266 ) (88 ) (683 ) 1,436 (3,071 ) (354 ) (864 )
Tennessee (3) 31 (424 ) (130 ) (8 ) 1,031 (393 ) 1,078
Texas 35 (24 ) (3 ) 502 502 11 502
Total net (charge-offs) recoveries $ 1,690 $ 137 $ (101 ) $ 2,533 $ (1,168 ) $ 1,827 $ 1,218
(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
June 30, 2022
(unaudited)
Quarter Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
FINANCIAL RATIOS AND OTHER DATA 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Return on average equity 8.55 % 6.91 % 5.92 % 4.72 % 10.81 % 7.71 % 11.39 %
Return on average tangible equity 11.36 % 9.05 % 7.72 % 6.16 % 13.96 % 10.16 % 14.75 %
Return on average assets 0.79 % 0.68 % 0.60 % 0.49 % 1.13 % 0.73 % 1.20 %
Interest margin - Yield - FTE 3.01 % 2.69 % 2.65 % 2.70 % 3.33 % 2.85 % 3.17 %
Interest margin - Cost 0.11 % 0.11 % 0.13 % 0.14 % 0.17 % 0.11 % 0.18 %
Net interest margin - FTE 2.90 % 2.58 % 2.53 % 2.57 % 3.16 % 2.74 % 2.99 %
Efficiency ratio (1) 71.89 % 76.44 % 76.52 % 74.10 % 64.31 % 74.08 % 67.93 %
Full-time equivalent employees 2,727 2,725 2,692 2,680 2,772
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans -0.06 % -0.01 % 0.00 % -0.10 % 0.05 % -0.03 % -0.02 %
Provision for credit losses, LHFI / average loans 0.10 % -0.03 % -0.17 % -0.10 % -0.16 % 0.03 % -0.28 %
Nonaccrual LHFI / (LHFI + LHFS) 0.56 % 0.61 % 0.60 % 0.63 % 0.49 %
Nonperforming assets / (LHFI + LHFS) 0.58 % 0.64 % 0.64 % 0.69 % 0.58 %
Nonperforming assets / (LHFI + LHFS <br>   + other real estate) 0.58 % 0.64 % 0.64 % 0.69 % 0.58 %
ACL LHFI / LHFI 0.94 % 0.95 % 0.97 % 1.02 % 1.02 %
ACL LHFI-commercial / commercial LHFI 0.88 % 0.95 % 1.00 % 1.05 % 1.04 %
ACL LHFI-consumer / consumer and <br>   home mortgage LHFI 1.14 % 0.96 % 0.87 % 0.91 % 0.98 %
ACL LHFI / nonaccrual LHFI 166.22 % 153.32 % 158.63 % 157.11 % 202.21 %
ACL LHFI / nonaccrual LHFI <br>   (excl individually evaluated loans) 475.27 % 484.01 % 500.85 % 520.77 % 537.35 %
CAPITAL RATIOS
Total equity / total assets 9.36 % 9.35 % 9.90 % 10.19 % 10.41 %
Tangible equity / tangible assets 7.23 % 7.29 % 7.86 % 8.12 % 8.31 %
Tangible equity / risk-weighted assets 9.16 % 9.79 % 10.71 % 11.19 % 11.33 %
Tier 1 leverage ratio 8.80 % 8.66 % 8.73 % 8.92 % 9.00 %
Common equity tier 1 capital ratio 11.01 % 11.23 % 11.29 % 11.68 % 11.76 %
Tier 1 risk-based capital ratio 11.47 % 11.70 % 11.77 % 12.17 % 12.25 %
Total risk-based capital ratio 13.26 % 13.53 % 13.55 % 14.01 % 14.10 %
STOCK PERFORMANCE
Market value-Close $ 29.19 $ 30.39 $ 32.46 $ 32.22 $ 30.80
Book value $ 25.93 $ 26.54 $ 28.25 $ 28.32 $ 28.35
Tangible book value $ 19.58 $ 20.22 $ 21.93 $ 22.08 $ 22.13
(1) See Note 6 – 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
June 30, 2022
($ in thousands)
(unaudited)

Note 1 - 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:

6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities $ 419,696 $ 361,822 $ 344,640 $ 278,615 $ 30,025
U.S. Government agency obligations 11,947 12,623 13,727 14,979 16,023
Obligations of states and political subdivisions 5,179 5,359 5,714 5,734 5,807
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA 32,240 35,117 39,573 43,860 48,445
Issued by FNMA and FHLMC 1,888,546 2,038,331 2,218,429 2,187,412 1,983,783
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 144,158 164,506 196,690 236,885 283,988
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 142,598 400,488 420,104 290,120 180,668
Total securities available for sale $ 2,644,364 $ 3,018,246 $ 3,238,877 $ 3,057,605 $ 2,548,739
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions $ 5,320 $ 7,324 $ 7,328 $ 10,683 $ 12,994
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA 4,624 4,831 5,005 5,912 6,249
Issued by FNMA and FHLMC 185,554 192,373 43,444 48,554 53,406
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 210,479 224,012 241,934 264,638 291,477
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA 731,777 179,058 44,826 65,118 68,886
Total securities held to maturity $ 1,137,754 $ 607,598 $ 342,537 $ 394,905 $ 433,012

During the second quarter of 2022, Trustmark reclassified $343.1 million of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $34.8 million ($26.1 million, net of tax). The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.

At June 30, 2022, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled approximately $39.5 million ($29.7 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 99.7% 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 2 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021
Loans secured by real estate:
Construction, land development and other land loans $ 1,440,058 $ 1,273,959 $ 1,308,781 $ 1,286,613 $ 1,360,302
Secured by 1-4 family residential properties 2,424,962 2,106,998 1,977,993 1,891,292 1,810,396
Secured by nonfarm, nonresidential properties 3,178,079 2,975,039 2,977,084 2,924,953 2,819,662
Other real estate secured 555,311 715,939 726,043 986,163 1,078,622
Commercial and industrial loans 1,551,001 1,495,060 1,414,279 1,327,211 1,326,605
Consumer loans 160,716 154,215 159,472 157,963 153,519
State and other political subdivision loans 1,110,795 1,215,023 1,146,251 1,125,186 1,136,764
Other loans 523,918 460,896 537,926 475,518 466,999
LHFI 10,944,840 10,397,129 10,247,829 10,174,899 10,152,869
ACL LHFI (103,140 ) (98,734 ) (99,457 ) (104,073 ) (104,032 )
Net LHFI $ 10,841,700 $ 10,298,395 $ 10,148,372 $ 10,070,826 $ 10,048,837
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2022
($ in thousands)
(unaudited)

Note 2 – Loan Composition (continued)

The following table presents the LHFI composition by region and reflects each region’s diversified mix of loans:

June 30, 2022
LHFI - COMPOSITION BY REGION Total Alabama Florida Mississippi <br>(Central and <br>Southern <br>Regions) Tennessee <br>(Memphis, TN and <br>Northern MS<br>Regions) Texas
Loans secured by real estate:
Construction, land development and other land loans $ 1,440,058 $ 610,402 $ 52,587 $ 391,970 $ 43,608 $ 341,491
Secured by 1-4 family residential properties 2,424,962 119,599 44,161 2,166,787 67,906 26,509
Secured by nonfarm, nonresidential properties 3,178,079 927,830 252,323 1,245,604 178,658 573,664
Other real estate secured 555,311 120,384 1,784 265,884 6,906 160,353
Commercial and industrial loans 1,551,001 393,458 23,451 644,894 243,252 245,946
Consumer loans 160,716 22,021 7,571 99,852 18,685 12,587
State and other political subdivision loans 1,110,795 85,538 69,860 721,339 28,922 205,136
Other loans 523,918 69,924 11,160 319,743 69,941 53,150
Loans $ 10,944,840 $ 2,349,156 $ 462,897 $ 5,856,073 $ 657,878 $ 1,618,836
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots $ 69,566 $ 35,149 $ 10,758 $ 16,700 $ 2,255 $ 4,704
Development 149,183 55,380 1,726 52,982 6,556 32,539
Unimproved land 100,319 17,366 11,781 32,771 10,889 27,512
1-4 family construction 345,749 166,916 24,590 90,778 23,899 39,566
Other construction 775,241 335,591 3,732 198,739 9 237,170
Construction, land development and other land loans $ 1,440,058 $ 610,402 $ 52,587 $ 391,970 $ 43,608 $ 341,491
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail $ 331,004 $ 129,167 $ 35,109 $ 81,857 $ 22,142 $ 62,729
Office 282,768 110,140 19,116 89,459 10,790 53,263
Hotel/motel 339,184 186,628 76,318 33,002 28,693 14,543
Mini-storage 160,857 23,452 2,196 110,162 423 24,624
Industrial 296,943 106,567 19,243 99,690 252 71,191
Health care 53,221 20,763 1,045 27,704 351 3,358
Convenience stores 28,737 8,538 661 14,191 1,123 4,224
Nursing homes/senior living 343,468 138,209 — 138,436 5,934 60,889
Other 106,771 15,903 10,094 48,052 16,801 15,921
Total non-owner occupied loans 1,942,953 739,367 163,782 642,553 86,509 310,742
Owner-occupied:
Office 154,226 42,428 36,256 45,836 12,664 17,042
Churches 77,154 17,024 5,439 43,393 7,979 3,319
Industrial warehouses 176,614 16,967 2,396 48,135 17,099 92,017
Health care 126,529 11,632 6,601 91,264 2,379 14,653
Convenience stores 152,200 13,886 20,857 71,648 421 45,388
Retail 97,749 12,615 9,052 44,873 19,151 12,058
Restaurants 54,167 3,143 4,801 29,965 12,377 3,881
Auto dealerships 51,017 6,453 242 25,496 18,826 —
Nursing homes/senior living 211,462 50,570 — 134,692 — 26,200
Other 134,008 13,745 2,897 67,749 1,253 48,364
Total owner-occupied loans 1,235,126 188,463 88,541 603,051 92,149 262,922
Loans secured by nonfarm, nonresidential properties $ 3,178,079 $ 927,830 $ 252,323 $ 1,245,604 $ 178,658 $ 573,664
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2022
($ in thousands)
(unaudited)

Note 3 – 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 Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Securities – taxable 1.50 % 1.37 % 1.22 % 1.28 % 1.30 % 1.44 % 1.35 %
Securities – nontaxable 4.00 % 3.97 % 3.82 % 3.79 % 3.70 % 3.98 % 3.91 %
Securities – total 1.50 % 1.38 % 1.23 % 1.29 % 1.31 % 1.44 % 1.37 %
PPP loans 4.16 % 2.35 % 3.68 % 4.98 % 15.81 % 3.04 % 11.26 %
Loans - LHFI & LHFS 3.79 % 3.58 % 3.56 % 3.59 % 3.64 % 3.69 % 3.66 %
Loans - total 3.79 % 3.58 % 3.56 % 3.61 % 4.36 % 3.69 % 4.09 %
Fed funds sold & reverse repurchases 3.65 % — — — — 2.43 % —
Other earning assets 0.78 % 0.18 % 0.18 % 0.18 % 0.11 % 0.41 % 0.12 %
Total earning assets 3.01 % 2.69 % 2.65 % 2.70 % 3.33 % 2.85 % 3.17 %
Interest-bearing deposits 0.11 % 0.11 % 0.13 % 0.14 % 0.19 % 0.11 % 0.20 %
Fed funds purchased & repurchases 0.24 % 0.13 % 0.13 % 0.14 % 0.14 % 0.17 % 0.14 %
Other borrowings 2.52 % 2.26 % 2.25 % 2.33 % 2.29 % 2.39 % 2.21 %
Total interest-bearing liabilities 0.17 % 0.16 % 0.19 % 0.21 % 0.25 % 0.17 % 0.26 %
Net interest margin 2.90 % 2.58 % 2.53 % 2.57 % 3.16 % 2.74 % 2.99 %
Net interest margin excluding PPP loans <br>   and the FRB balance 3.06 % 2.88 % 2.82 % 2.90 % 2.94 % 2.97 % 2.96 %

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 June 30, 2022 and March 31, 2022, the average FRB balance totaled $1.077 billion and $1.758 billion, 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 3.06% for the second quarter of 2022, an increase of 18 basis points when compared to the first quarter of 2022. The expansion of the net interest margin excluding PPP loans and the FRB balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio which resulted from the higher interest-rate environment.

Note 4 – 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 negative ineffectiveness of $632 thousand during the second quarter of 2022.

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

Quarter Ended Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Mortgage servicing income, net $ 6,557 $ 6,429 $ 6,571 $ 6,406 $ 6,318 $ 12,986 $ 12,499
Change in fair value-MSR from runoff (3,806 ) (3,785 ) (4,745 ) (5,283 ) (5,029 ) (7,591 ) (10,132 )
Gain on sales of loans, net 6,030 6,223 9,005 12,737 14,778 12,253 34,234
Mortgage banking income before hedge ineffectiveness 8,781 8,867 10,831 13,860 16,067 17,648 36,601
Change in fair value-MSR from market changes 8,739 22,020 2,221 1,806 (4,465 ) 30,759 9,231
Change in fair value of derivatives (9,371 ) (21,014 ) (1,443 ) (1,662 ) 5,731 (30,385 ) (7,695 )
Net positive (negative) hedge ineffectiveness (632 ) 1,006 778 144 1,266 374 1,536
Mortgage banking, net $ 8,149 $ 9,873 $ 11,609 $ 14,004 $ 17,333 $ 18,022 $ 38,137
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2022
($ in thousands)
(unaudited)

Note 5 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

Quarter Ended Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Partnership amortization for tax credit purposes $ (1,475 ) $ (1,336 ) $ (2,455 ) $ (2,045 ) $ (1,989 ) $ (2,811 ) $ (3,511 )
Increase in life insurance cash surrender value 1,683 1,627 1,675 1,663 1,653 3,310 3,292
Other miscellaneous income 1,699 2,915 1,759 1,863 2,337 4,614 4,310
Total other, net $ 1,907 $ 3,206 $ 979 $ 1,481 $ 2,001 $ 5,113 $ 4,091

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 Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Loan expense $ 4,068 $ 4,389 $ 3,221 $ 4,022 $ 3,738 $ 8,457 $ 7,905
Amortization of intangibles 328 482 548 549 553 810 1,219
FDIC assessment expense 1,810 1,500 1,475 1,275 1,225 3,310 2,765
Regulatory settlement charge — — — 5,000 — — —
Other real estate expense, net 623 35 336 1,357 1,511 658 1,835
Other miscellaneous expense 7,782 7,935 9,326 7,673 7,623 15,717 15,789
Total other expense $ 14,611 $ 14,341 $ 14,906 $ 19,876 $ 14,650 $ 28,952 $ 29,513

Note 6 – Non-GAAP Financial Measures

In addition to capital ratios defined by 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’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable.

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 intangible 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 audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2022
($ in thousands except per share data)
(unaudited)

Note 6 – Non-GAAP Financial Measures (continued)

Quarter Ended Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity $ 1,608,309 $ 1,713,752 $ 1,758,123 $ 1,782,304 $ 1,780,705 $ 1,660,739 $ 1,770,087
Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,694 )
Identifiable intangible assets (4,436 ) (4,879 ) (5,382 ) (5,899 ) (6,442 ) (4,656 ) (6,778 )
Total average tangible equity $ 1,219,636 $ 1,324,636 $ 1,368,504 $ 1,392,168 $ 1,390,026 $ 1,271,846 $ 1,378,615
PERIOD END BALANCES
Total shareholders' equity $ 1,586,696 $ 1,631,382 $ 1,741,311 $ 1,768,947 $ 1,779,309
Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 )
Identifiable intangible assets (4,264 ) (4,591 ) (5,074 ) (5,621 ) (6,170 )
Total tangible equity (a) $ 1,198,195 $ 1,242,554 $ 1,352,000 $ 1,379,089 $ 1,388,902
TANGIBLE ASSETS
Total assets $ 16,951,510 $ 17,441,551 $ 17,595,636 $ 17,364,644 $ 17,098,132
Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 )
Identifiable intangible assets (4,264 ) (4,591 ) (5,074 ) (5,621 ) (6,170 )
Total tangible assets (b) $ 16,563,009 $ 17,052,723 $ 17,206,325 $ 16,974,786 $ 16,707,725
Risk-weighted assets (c) $ 13,076,981 $ 12,691,545 $ 12,623,630 $ 12,324,254 $ 12,256,492
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income $ 34,284 $ 29,211 $ 26,222 $ 21,200 $ 47,981 $ 63,495 $ 99,943
Plus: Intangible amortization net of tax 246 362 411 412 415 608 915
Net income adjusted for intangible amortization $ 34,530 $ 29,573 $ 26,633 $ 21,612 $ 48,396 $ 64,103 $ 100,858
Period end common shares outstanding (d) 61,201,123 61,463,392 61,648,679 62,461,832 62,773,226
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1) 11.36 % 9.05 % 7.72 % 6.16 % 13.96 % 10.16 % 14.75 %
Tangible equity/tangible assets (a)/(b) 7.23 % 7.29 % 7.86 % 8.12 % 8.31 %
Tangible equity/risk-weighted assets (a)/(c) 9.16 % 9.79 % 10.71 % 11.19 % 11.33 %
Tangible book value (a)/(d)*1,000 $ 19.58 $ 20.22 $ 21.93 $ 22.08 $ 22.13
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity $ 1,586,696 $ 1,631,382 $ 1,741,311 $ 1,768,947 $ 1,779,309
CECL transition adjustment 19,500 19,500 26,000 26,419 26,671
AOCI-related adjustments 207,142 148,656 32,560 19,080 10,641
CET1 adjustments and deductions:
Goodwill net of associated deferred <br>   tax liabilities (DTLs) (370,229 ) (370,240 ) (370,252 ) (370,264 ) (370,276 )
Other adjustments and deductions <br>   for CET1 (2) (3,757 ) (4,015 ) (4,392 ) (4,817 ) (5,243 )
CET1 capital (e) 1,439,352 1,425,283 1,425,227 1,439,365 1,441,102
Additional tier 1 capital instruments <br>   plus related surplus 60,000 60,000 60,000 60,000 60,000
Tier 1 capital $ 1,499,352 $ 1,485,283 $ 1,485,227 $ 1,499,365 $ 1,501,102
Common equity tier 1 capital ratio (e)/(c) 11.01 % 11.23 % 11.29 % 11.68 % 11.76 %

(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
June 30, 2022
($ in thousands)
(unaudited)

Note 6 – 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 Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Net interest income (GAAP) $ 112,676 $ 99,344 $ 98,326 $ 98,266 $ 119,423 $ 212,020 $ 221,759
Noninterest income (GAAP) 53,253 54,115 50,767 54,149 56,411 107,368 116,994
Pre-provision revenue (a) $ 165,929 $ 153,459 $ 149,093 $ 152,415 $ 175,834 $ 319,388 $ 338,753
Noninterest expense (GAAP) $ 123,767 $ 121,519 $ 119,469 $ 129,600 $ 118,679 $ 245,286 $ 240,227
Less: Voluntary early retirement program — — — (5,700 ) — — —
Regulatory settlement charge — — — (5,000 ) — — —
Adjusted noninterest expense - PPNR (Non-GAAP) (b) $ 123,767 $ 121,519 $ 119,469 $ 118,900 $ 118,679 $ 245,286 $ 240,227
PPNR (Non-GAAP) (a)-(b) $ 42,162 $ 31,940 $ 29,624 $ 33,515 $ 57,155 $ 74,102 $ 98,526

The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:

Quarter Ended Six Months Ended
6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021
Total noninterest expense (GAAP) $ 123,767 $ 121,519 $ 119,469 $ 129,600 $ 118,679 $ 245,286 $ 240,227
Less: Other real estate expense, net (623 ) (35 ) (336 ) (1,357 ) (1,511 ) (658 ) (1,835 )
Amortization of intangibles (328 ) (482 ) (548 ) (549 ) (553 ) (810 ) (1,219 )
Charitable contributions resulting in <br>   state tax credits (375 ) (375 ) (391 ) (350 ) (355 ) (750 ) (705 )
Voluntary early retirement program — — — (5,700 ) — — —
Regulatory settlement charge — — — (5,000 ) — — —
Adjusted noninterest expense (Non-GAAP) (c) $ 122,441 $ 120,627 $ 118,194 $ 116,644 $ 116,260 $ 243,068 $ 236,468
Net interest income (GAAP) $ 112,676 $ 99,344 $ 98,326 $ 98,266 $ 119,423 $ 212,020 $ 221,759
Add: Tax equivalent adjustment 2,916 3,003 2,906 2,947 2,957 5,919 5,851
Net interest income-FTE (Non-GAAP) (a) $ 115,592 $ 102,347 $ 101,232 $ 101,213 $ 122,380 $ 217,939 $ 227,610
Noninterest income (GAAP) $ 53,253 $ 54,115 $ 50,767 $ 54,149 $ 56,411 $ 107,368 $ 116,994
Add: Partnership amortization for tax credit purposes 1,475 1,336 2,455 2,045 1,989 2,811 3,511
Adjusted noninterest income (Non-GAAP) (b) $ 54,728 $ 55,451 $ 53,222 $ 56,194 $ 58,400 $ 110,179 $ 120,505
Adjusted revenue (Non-GAAP) (a)+(b) $ 170,320 $ 157,798 $ 154,454 $ 157,407 $ 180,780 $ 328,118 $ 348,115
Efficiency ratio (Non-GAAP) (c)/((a)+(b)) 71.89 % 76.44 % 76.52 % 74.10 % 64.31 % 74.08 % 67.93 %

Slide 1

Second Quarter 2022 Financial Results July 26, 2022 Exhibit 99.2

Slide 2

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 (SEC) 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. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate. 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 COVID19 pandemic on our markets, 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 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.

Slide 3

Maintained strong capital levels with CET1 ratio of 11.01% and total risk-based capital ratio of 13.26% Repurchased $7.5 million, or approximately 263 thousand shares of common stock in the second quarter; during first six months of 2022, repurchased $16.6 million, or approximately 542 thousand shares of common stock; at June 30, 2022, had $83.4 million remaining authority under the repurchase program, which expires on December 31, 2022 Board of Directors declared quarterly cash dividend of $0.23 per share Expense Management Financial Highlights Strong loan growth, solid credit quality, and expanding net interest margin reflected in second quarter performance Source: Company reports (1) Please refer to the Consolidated Financial Information, Note 6 – Non-GAAP Financial Mesures At June 30, 2022 Total Assets $17.0 billion Loans (HFI) $10.9 billion Total Deposits $14.8 billion Banking Centers 177 Q2-22 Q1-22 Q2-21 Net Income ($ in millions) $34.3 $29.2 $48.0 EPS – Diluted $0.56 $0.47 $0.76 ROAA 0.79% 0.68% 1.13% ROATCE 11.36% 9.05% 13.96% Dividends / Share $0.23 $0.23 $0.23 TE/TA 7.23% 7.29% 8.31% 3 Loans Held for Investment (HFI) increased $547.7 million, or 5.3%, linked-quarter and $792.0 million, or 7.8%, year-over-year Deposits totaled $14.8 billion, down 2.3% from the prior quarter and up 0.9% year-over-year Investment securities totaled $3.8 billion, up 4.3% linked-quarter and 26.8% from the prior year Earnings Drivers Revenue totaled $165.9 million, up $12.5 million, or 8.1%, from the prior quarter Net interest income (FTE) totaled $115.6 million, an increase $13.2 million, or 12.9%, linked-quarter Noninterest income totaled $53.3 million, representing 32.1% of total revenue in the second quarter Profitable Revenue Generation Noninterest expense totaled $123.8 million in the second quarter, up $2.2 million, or 1.8%, from the prior quarter Adjusted noninterest expense, which excludes amortization of intangibles, ORE expense and charitable contributions resulting in state tax credits, increased $1.8 million, or 1.5%, from the prior quarter (1) Salaries and employee benefits expense increased $2.1 million from the prior quarter due primarily to commissions and annual merit increases Credit quality remained solid; nonperforming assets declined 3.7% linked-quarter Recoveries exceeded charge-offs by $1.7 million in the second quarter Allowance for credit losses (ACL) represented 475.27% of nonaccrual loans, excluding individually evaluated loans at June 30, 2022 Credit Quality Capital Management

Slide 4

Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Source: Company reports (1) Percentages may not sum to 100% due to rounding. Dollar Change: $73 $548 $149 $22 4 Portfolio exhibits diversity by product type, geography, and industry Strong growth in the quarter while maintaining excellent credit quality Virtually no exposure to regulatory defined higher risk commercial and industrial outstandings and REITs

Slide 5

Real Estate Secured Loan Portfolio Detail 5 Source: Company reports (1) Multi-Family is included in Other Real Estate Secured Loans in Financials Focus on vertical construction with limited exposure to unimproved land and development Well-diversified product and geographical mix Relatively balanced between non-owner and owner-occupied portfolios Virtually no REIT outstanding ($4.2 million) 1-4 Residential portfolio is primarily comprised of 15 year or less mortgages and Hybrid ARMs CRE Portfolio ($ in millions) % of CRE Portfolio 06/30/22 Lots, Development and Unimproved Land $ 319 8% 1-4 Family Construction 346 9% Other Construction 775 20% Total Construction, Land Development and Other Land Loans $ 1,440 37% Retail 331 9% Offices 283 7% Hotels/Motels 339 9% Industrial 297 8% Senior Living 343 9% Other 350 9% Total Non-owner Occupied & REITs $ 1,943 50% Multi-Family(1) 483 12% Total CRE $ 3,866 100% Owner-Occupied NonFarm, NonResidential ($ in millions) % of Owner- Occupied Portfolio 06/30/22 Offices $ 154 12% Retail 98 8% Industrial Warehouses 177 14% Health Care 127 10% Convenience Stores 152 12% Nursing Homes/Senior Living 211 17% Other 316 26% Total Owner-Occupied $ 1,235 100%

Slide 6

Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 13% Small energy book and has never been an area of focused growth Virtually no regulatory defined higher risk commercial and industrial outstanding ($18.0 million) Portfolio includes commercial, financial intermediaries, agriculture production and non-profits Commercial Portfolio ($ in millions) % of Commercial Portfolio 06/30/22 Finance & Insurance $ 273 13% Health Care & Social Assistance 198 10% Construction 185 9% Retail Trade 180 9% Real Estate & Rental & Leasing 171 8% Manufacturing 162 8% Wholesale Trade 156 8% Transportation & Warehousing 136 7% Professional, Scientific & Technical Services 136 7% Utilities 74 3% Arts, Entertainment & Recreation 71 3% Information 69 3% Other Services 57 3% Other 206 10% Total $ 2,074 100%

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Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 7 Net impact of quantitative changes including improvement of the macroeconomic forecast, loan growth, and individually analyzed reserves Net impact of qualitative changes including the COVID-19 pandemic reserve, nature and volume of the portfolio, and potential impact of the rising rate environment Net impact of all other changes including prepayment studies etc. ACL 3/31/22 ACL 6/30/22

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Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 0.94% of loans held for investment and 475% of nonaccrual loans, excluding individually evaluated loans Recoveries exceeded charge-offs by $1.7 million in the second quarter and $1.8 million year-to-date Nonaccruals declined 3.6% in the second quarter and represent only .56% of total loans Nonperforming assets declined 3.7% in the quarter Source: Company reports Note: Unless noted otherwise, credit metrics exclude PPP loans (1) Totals may not foot due to rounding (2) NPLs excludes individually evaluated loans 8

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Attractive, Low-Cost Deposit Base Deposits totaled $14.8 billion at June 30, 2022, down $343.1 million, or 2.3%, linked-quarter, and an increase of 138.1 million, or 0.9%, year-over-year Cost of interest-bearing deposits in the second quarter totaled 0.11%, unchanged from the prior quarter Source: Company reports (1) Numbers and/or percentages may not foot due to rounding. (2) Above does not include the daily sweep between low transaction interest checking to savings for regulatory purposes. 9 $15,015 $14,839 $14,966 $14,498 $14,668

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$26 Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $115.6 million, resulting in a net interest margin of 2.90% in the second quarter The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 3.06% in the second quarter, a 18 basis point increase from the prior quarter Source: Company reports (1) Totals may not foot due to rounding (2) Loan Yield includes LHFI & LHFS 10

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Earning Asset Composition & Interest Rate Sensitivity As of 06/30/22 11 Substantial NII asset sensitivity is driven by, Loan portfolio mix with 47% variable rate Securities portfolio duration of 4.3 years Cash & due balance of $0.7 billion Agency MBS is backed primarily by 15-year collateral Book Balance: $4.0B Yield: 1.50% Book Balance: $11.1B Yield(2): 3.79% (1) Loans include LHFI & LHFS (2) Loan Yield includes LHFI & LHFS

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Income Statement Highlights – Noninterest Income Source: Company reports (1) Totals may not foot due to rounding Noninterest income totaled $53.3 million in the second quarter, a decrease of $862 thousand linked-quarter and $3.2 million year-over-year. The linked-quarter and year-over-year changes are principally attributable to lower mortgage banking revenue, which were offset in part by increases in other line items. Bank card and other fees increased $1.7 million linked-quarter and $1.9 million year-over-year Service charges on deposit accounts increased $775 thousand from the prior quarter and $2.6 million from this time last year Insurance revenue totaled $13.7 million, a $387 thousand decrease from the prior quarter and a $1.5 million increase from the previous year 12 (1)

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Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding (2) Production includes Loans Available for Sale (AFS) and Portfolio (3) Gain on Sale Margin excludes FAS 133 (Pipeline valuation adjustment) Mortgage banking revenue totaled $8.1 million in the second quarter of 2022, a $1.7 million decrease linked-quarter and a $9.2 million decrease year-over year Mortgage loan production in the second quarter totaled $681.4 million, an increase of 25.2% from the prior quarter and a 7.5% decrease from the prior year Retail production represented 82% of volume, or $559.5 million, in the second quarter 13

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Adjusted Noninterest Expense(2) – totaled $122.4 million in the second quarter, a 1.5% increase from the prior quarter Salaries and employee benefits increased $2.1 million linked-quarter due primarily to commissions and annual merit increases Services & fees remained relativity flat linked-quarter and increased $2.8 million from the prior year partially due to higher professional fees Income Statement Highlights – Noninterest Expense Source: Company reports (1) Totals may not foot due to rounding (2) For Non-GAAP measures, please refer to the Earnings Release dated July 26, 2022 and the Consolidated Financial Information, Note 6 – Non-GAAP Financial Measures 14

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Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.01% and a total risk-based capital ratio of 13.26% at June 30, 2022 Repurchased $7.5 million, or approximately 263 thousand shares of common stock in the second quarter. During the first six months of 2022, repurchased $16.6 million, or approximately 542 thousand shares of common stock. At June 30, 2022, Trustmark had $83.4 million in remaining authority under its existing stock repurchase program, which expires December 31, 2022. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2022, to shareholders of record on September 1, 2022 Source: Company reports (1) Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital. 15

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Outlook Commentary(1) Source: Company reports (1) See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. 16 Loans Held For Investment balances expected to grow high single digits full year Securities balances targeted at 20% to 25% of earning assets; subject to changes in market conditions Personal and non-personal deposit balances expected to remain stable full year with a decline in public fund balances Balance Sheet Net Interest Income Total provision for credit losses, including unfunded commitments, is expected to be modest, based on current economic forecast Net charge-offs requiring additional reserving are expected to be nominal based upon current economic outlook Credit Service charges and bank card fees expected to continue rebounding from depressed levels Mortgage Banking revenue expected to continue trending lower driven by reduced volume and lower gain on sale margin Insurance revenue expected to increase high single digits full year with Wealth Management expected to increase mid single digits full year Noninterest Income Will continue disciplined approach to capital deployment with preference for organic loan growth, as well as potential M&A and opportunistic share repurchase Will maintain a strong capital position; ample to implement corporate priorities/initiatives Capital NII, excluding PPP loan interest and fees, expected to grow in high teens full year based on current market implied forward interest rates Noninterest Expense Adjusted noninterest expense (as previously defined) expected to increase mid single digits full year, reflecting inflationary pressures and subject to impact of commissions in mortgage, insurance, and wealth management businesses FIT2GROW - Market Optimization, technology and vendor management initiatives to identify further process improvement and expense reduction opportunities

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Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 177 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to achieve outstanding customer satisfaction by providing banking, wealth management, and risk management solutions through superior sales and service, utilizing excellent people, teamwork, and diversity, while meeting our corporate financial goals. 17 Who We Are Strategic Priorities to Enhance Shareholder Value Pursue efficiency opportunities through adoption of technology, redesign of workflows and workforce structure Focus on profitable growth to increase EPS, enhance scale, benefit from favorable demographic trends in growth markets, and increase penetration across lines of business Invest in technology solutions and data analytics to drive customer engagement, inform sales practices, and aid in the development and enhancement of product or service offerings Prioritize risk management throughout the organization by incorporating industry leading practices to comply with all applicable regulatory requirements Adopt a mindset that embraces growth, innovation and efficiency while maintaining core values and sound risk management practices Our Footprint

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