8-K

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

January 26, 2021

Date of Report (Date of earliest event reported)

TRUSTMARK CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi	000-03683	64-0471500
(State or other jurisdiction<br><br><br>of incorporation)	(Commission<br><br><br>File Number)	(IRS Employer<br><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 January 26, 2021, Trustmark Corporation issued a press release announcing its financial results for the period ended December 31, 2020.  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 December 31, 2020
99.2	Investor slide presentation for the period ended December 31, 2020
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/ Louis E. Greer
	Louis E. Greer
	Treasurer and Principal Financial Officer
DATE:	January 26, 2021

trmk-ex991_7.htm

Exhibit 99.1

News Release

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2020 Financial Results

Record earnings in 2020 reflect value of diversified financial services businesses

Solid balance sheet, credit quality and capital base provide strength and stability

JACKSON, Miss. – January 26, 2021 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $51.2 million in the fourth quarter of 2020, representing diluted earnings per share of $0.81.  Net income in the fourth quarter produced a return on average tangible equity of 15.47% and a return on average assets of 1.28%.  For the full year, Trustmark’s net income totaled a record level of $160.0 million, representing diluted earnings per share of $2.51.  Diluted earnings per share in 2020 increased 8.2% when compared to the prior year.  Trustmark’s net income in 2020 produced a return on average tangible equity of 12.58% and a return on average assets of 1.05%.

Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2021, to shareholders of record on March 1, 2021.

Gerard R. Host, Executive Chairman, stated, “This past year has been extremely challenging for everyone.  The effects of COVID-19 have significantly impacted the ways in which we live, work and interact with one another.  We extend our deepest sympathies to all who lost loved ones and all who have been impacted by this pandemic.  We also extend our sincere appreciation and gratitude to healthcare professionals for their tireless and self-sacrificing work during this pandemic.  Also, we want to thank our associates for their countless efforts to serve our customers and support our communities and businesses.  Trustmark remains committed to providing solutions to meet customer’s unique needs during these unprecedented times.”

2020 Highlights

•	Supported local communities with loan originations totaling $970 million through the SBA’s Paycheck Protection Program (PPP)
•	Loans held for investment increased $488.9 million, or 5.2%
---	---
•	Nonperforming assets declined 9.3%, net charge-offs represented 0.02% of average loans
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•	Total deposits increased $2.8 billion, or 24.9%
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•	Record mortgage loan production of $3.0 billion produced noninterest income of $125.8 million
---	---
•	Total revenue expanded 14.3% to $701.1 million
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•	Noninterest income totaled $274.6 million, an increase of 46.8%
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•	Maintained strong capital position with CET1 ratio of 11.62% and total risk-based capital ratio of 14.12%
---	---

Duane A. Dewey, President and CEO, commented, “Our financial results demonstrate the value of Trustmark’s diversified financial services businesses.  Despite a challenging environment, our banking, insurance and wealth management businesses all performed well while our mortgage banking business achieved record results.  We experienced significant loan and deposit growth, and credit quality remained extremely strong as did capital ratios.  Trustmark continues to be well-positioned to serve and expand its customer base and create long-term value for its shareholders.”

Balance Sheet Management

•	Loans held for investment decreased $23.2 million, or 0.2%, during the quarter
•	Total deposits increased $826.4 million, or 6.2%, during the quarter
---	---
•	Enhanced capital base with issuance of $125 million of subordinated debt
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Loans held for investment totaled $9.8 billion at December 31, 2020, reflecting an increase of 5.2% from the prior year.  At December 31, 2020, Trustmark’s gross PPP loans totaled $623.0 million.  Net of deferred fees and costs of $12.9 million, PPP loans totaled $610.1 million.  Collectively, loans held for investment and PPP loans totaled $10.4 billion at year end 2020, an increase of $1.1 billion, or 11.8% from the prior year.

Deposits totaled $14.0 billion at December 31, 2020, up $826.4 million, or 6.2%, from the prior quarter and $2.8 billion, or 24.9%, year-over-year primarily reflecting the impact of additional customer liquidity.  Noninterest bearing deposits represented 31.0% of total deposits at December 31, 2020.  Interest-bearing deposit costs totaled 0.27% for the fourth quarter, a decrease of 4 basis points linked-quarter.  The total cost of interest-bearing liabilities was 0.30% for the fourth quarter of 2020, a decrease of 3 basis points from the prior quarter.

Trustmark’s capital position remained solid, reflecting the strength and diversity of its financial services businesses.  During the fourth quarter of 2020, Trustmark Corporation issued $125 million of 3.625% fixed-to-floating rate subordinated notes due in 2030 for general corporate purposes, further strengthening its regulatory capital position.  At December 31, 2020, Trustmark’s tangible equity to tangible assets ratio was 8.34%, while the total risk-based capital ratio increased to 14.12%.

As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective April 1, 2020, under which $100 million of Trustmark’s outstanding shares may be acquired through December 31, 2021.  While Trustmark suspended its share repurchase program during the first quarter of 2020 to preserve capital given the economic uncertainty associated with the COVID-19 pandemic, Trustmark expects to resume the repurchase of its shares from time to time at prevailing market prices, through open market or private transactions, depending on market conditions, and in conjunction with its disciplined share repurchase framework.  There is no guarantee as to the number of shares that may be repurchased by Trustmark, and Trustmark may discontinue purchases at any time at management’s discretion.

Credit Quality

•	Allowance for credit losses represented 1.19% of loans held for investment and 572.69% of nonperforming loans, excluding individually evaluated loans at year-end
•	Net charge-offs totaled $291 thousand, or 0.01% of average loans, in the fourth quarter
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•	Loans remaining under a COVID-19 related concession represented approximately 35 basis points of loans held for investment at December 31, 2020
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Nonperforming loans totaled $63.1 million at December 31, 2020, an increase of $9.3 million from the prior quarter and $9.9 million year-over-year.  Other real estate totaled $11.7 million, reflecting a $4.6 million decrease from the prior quarter and a $17.6 million decline from the prior year.  Collectively, nonperforming assets totaled $74.8 million, reflecting a linked-quarter increase of 6.7% and year-over-year reduction of 9.3%.

Allocation of Trustmark’s $117.3 million allowance for credit losses on loans held for investment represented 1.20% of commercial loans and 1.16% of consumer and home mortgage loans, resulting in an allowance for credit losses to total loans held for investment of 1.19% at December 31, 2020, representing a level management considers commensurate with the present risk in the loan portfolio.

Revenue Generation

•	Mortgage banking revenue totaled $28.2 million and represented 15.9% of total revenue in the fourth quarter
•	Noninterest income totaled $66.1 million and represented 37.3% of total revenue in fourth quarter
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•	The net interest margin (FTE) totaled 3.15% in fourth quarter; excluding interest and fees on PPP loans, net interest margin (FTE) was 2.91%
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Revenue in the fourth quarter totaled $177.5 million, a decrease of 1.3% from the prior quarter and an increase of 15.9% from the same quarter in the prior year.  The linked-quarter decline reflects higher net interest income, which was more than offset by reduced mortgage banking revenue. In 2020, revenue totaled $701.1 million, an increase of 14.3% from the prior year.  Excluding interest and fees on PPP loans, revenue totaled $674.5 million in 2020, an increase of $60.9 million, or 9.9%, from the prior year principally due to growth in mortgage banking revenue.

Net interest income (FTE) in the fourth quarter totaled $114.3 million, resulting in a net interest margin of 3.15%.  Relative to the prior quarter, net interest income (FTE) increased $5.1 million reflecting an increase of $4.5 million in interest income as well as a $611 thousand reduction in interest expense.  Excluding interest and fees on PPP loans, net interest income (FTE) totaled $99.4 million, resulting in a net interest margin of 2.91%, a linked-quarter decline of 14 basis points.  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 fourth quarter totaled $66.1 million, a decrease of $7.6 million from the prior quarter and an increase of $18.5 million from the prior year.  The linked-quarter change reflects increases in service charges on deposit accounts and bank card and other fees, which were more than offset by a decline in mortgage banking revenue and a seasonal decline in insurance revenue.   The increase in noninterest income year-over-year is principally due to increased mortgage banking revenue.

Mortgage loan production in the fourth quarter totaled $788.4 million, a seasonal decline of 11.0% from the prior quarter and a 58.1% increase year-over-year.  Mortgage banking revenue before hedge ineffectiveness totaled $29.1 million in the fourth quarter, a decline of $6.6 million from the prior quarter primarily due to lower gains on sale of loans in the secondary market.  In 2020, mortgage loan production totaled a record $2.98 billion, up 69.4% from the prior year.  Mortgage banking revenue totaled $125.8 million in 2020, an increase of $96.0 million from the prior year.

Insurance revenue in the fourth quarter totaled $10.2 million, a seasonal decline of $1.4 million from the prior quarter and an increase of $832 thousand from the prior year.  Insurance revenue in 2020 totaled $45.2 million, up $2.8 million, or 6.6%, from the prior year.  The solid performance during the year reflects an expanded producer workforce as well as the realization of operational efficiencies from investments in technology and improved processes.

Wealth management revenue totaled $7.8 million in the fourth quarter, up 2.1% from the prior quarter and 1.0% from the prior year.  In 2020, wealth management revenue totaled $31.6 million, an increase of 3.1% from the prior year.  During 2020, Trustmark continued to enhance its competitive positioning and efficiency of its wealth management businesses as well as expand its Private Banking capabilities in key markets.

Noninterest Expense

•	Adjusted non-interest expense, which excludes amortization of intangibles, ORE expenses, and credit losses for off-balance sheet credit exposures, increased $4.9 million, or 4.3%, from the prior quarter.  Please refer to the Consolidated Financial Information, Footnote 10 – Non-GAAP Financial Measures.
•	Efficiency ratio improved to 63.35% in 2020, a decline of 303 basis points from the prior year
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Adjusted noninterest expense in the fourth quarter was $119.6 million, up $4.9 million, or 4.3%, from the prior quarter. Salaries and employee benefits increased $2.3 million linked-quarter principally due to increases  for  performance-based incentives.  Total services and fees increased $1.3 million during the fourth quarter due  to continued investments in technology and higher professional fees.    Other expense increased $1.2 million from the prior quarter principally due to increased operational losses and other expenses.

Credit loss expense related to off-balance sheet credit exposures was a negative $1.1 million in the fourth quarter, reflecting the improvement of the macroeconomic factors used to determine the necessary reserves for off-balance sheet credit exposures.  Other real estate expense was a negative $812 thousand for the fourth quarter, a decrease of approximately $2.0 million from the prior quarter, which is attributed to lower write-downs of ORE of $716 thousand and a net gain on the sale of ORE property of $1.3 million.

During 2020, Trustmark consolidated six offices and expanded deployment of interactive teller machines.  In January 2021, Trustmark opened a new office featuring a design that integrates myTeller interactive teller machine technology as well as provides enhanced areas for customer engagement.  With the opening of this office, two other offices were closed.

“Looking forward, Trustmark will focus upon efficiency, growth and innovation opportunities while building upon its solid risk management processes, corporate culture and core values.   We will continue to optimize delivery channels to reflect changing customer preferences and introduce technology to enhance growth and efficiency opportunities.  We will provide the services and advice our customers have come to expect while building term value for our shareholders,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 27, 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, February 10, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10151113.

Trustmark is a financial services company providing banking and financial solutions through 183 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 (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 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 Board (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:
Louis E. Greer	Melanie A. Morgan
Treasurer and	Senior Vice President
Principal Financial Officer	601-208-2979
601-208-2310

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2020
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
QUARTERLY AVERAGE BALANCES	12/31/2020			9/30/2020			12/31/2019			Change		% Change			Change		% Change
Securities AFS-taxable	$	1,902,162		$	1,857,050		$	1,551,358					2.4	%				22.6	%
Securities AFS-nontaxable		5,206			5,973			23,300			)		-12.8	%		)		-77.7	%
Securities HTM-taxable		550,563			608,585			734,474			)		-9.5	%		)		-25.0	%
Securities HTM-nontaxable		24,752			25,508			25,703			)		-3.0	%		)		-3.7	%
Total securities		2,482,683			2,497,116			2,334,835			)		-0.6	%				6.3	%
Paycheck protection program loans (PPP)		875,098			941,456			—			)		-7.0	%			n/m
Loans (includes loans held for sale) (1)		10,231,671			10,162,379			9,467,437					0.7	%				8.1	%
Acquired loans (1)		—			—			77,797				n/m				)		-100.0	%
Fed funds sold and reverse repurchases		303			301			184					0.7	%				64.7	%
Other earning assets		860,540			722,917			227,116					19.0	%			n/m
Total earning assets		14,450,295			14,324,169			12,107,369					0.9	%				19.4	%
Allowance for credit losses (ACL), loans held<br><br><br>for investment (LHFI) (1)		(124,088	)		(121,842	)		(86,211	)		)		-1.8	%		)		-43.9	%
Other assets		1,620,694			1,564,825			1,445,075					3.6	%				12.2	%
Total assets	$	15,946,901		$	15,767,152		$	13,466,233					1.1	%				18.4	%
Interest-bearing demand deposits	$	3,649,590		$	3,669,249		$	3,167,256			)		-0.5	%				15.2	%
Savings deposits		4,350,783			4,416,046			3,448,899			)		-1.5	%				26.1	%
Time deposits		1,436,677			1,507,348			1,663,741			)		-4.7	%		)		-13.6	%
Total interest-bearing deposits		9,437,050			9,592,643			8,279,896			)		-1.6	%				14.0	%
Fed funds purchased and repurchases		170,474			84,077			164,754				n/m						3.5	%
Other borrowings		173,525			167,262			79,512					3.7	%			n/m
Subordinated notes		42,828			—			—				n/m					n/m
Junior subordinated debt securities		61,856			61,856			61,856					0.0	%				0.0	%
Total interest-bearing liabilities		9,885,733			9,905,838			8,586,018			)		-0.2	%				15.1	%
Noninterest-bearing deposits		4,100,849			3,921,867			3,017,824					4.6	%				35.9	%
Other liabilities		235,284			244,544			205,786			)		-3.8	%				14.3	%
Total liabilities		14,221,866			14,072,249			11,809,628					1.1	%				20.4	%
Shareholders' equity		1,725,035			1,694,903			1,656,605					1.8	%				4.1	%
Total liabilities and equity	$	15,946,901		$	15,767,152		$	13,466,233					1.1	%				18.4	%
(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.
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
December 31, 2020
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
PERIOD END BALANCES	12/31/2020			9/30/2020			12/31/2019			Change		% Change			Change		% Change
Cash and due from banks	$	1,952,504		$	564,588		$	358,916				n/m					n/m
Fed funds sold and reverse repurchases		50			50			—					0.0	%			n/m
Securities available for sale		1,991,815			1,922,728			1,602,404					3.6	%				24.3	%
Securities held to maturity		538,072			611,280			738,099			)		-12.0	%		)		-27.1	%
PPP loans		610,134			944,270			—			)		-35.4	%			n/m
Loans held for sale (LHFS)		446,951			485,103			226,347			)		-7.9	%				97.5	%
Loans held for investment (LHFI) (1)		9,824,524			9,847,728			9,335,628			)		-0.2	%				5.2	%
ACL LHFI (1)		(117,306	)		(122,010	)		(84,277	)				3.9	%		)		-39.2	%
Net LHFI		9,707,218			9,725,718			9,251,351			)		-0.2	%				4.9	%
Acquired loans (1)		—			—			72,601				n/m				)		-100.0	%
Allowance for loan losses, acquired loans (1)		—			—			(815	)			n/m						-100.0	%
Net acquired loans		—			—			71,786				n/m				)		-100.0	%
Net LHFI and acquired loans		9,707,218			9,725,718			9,323,137			)		-0.2	%				4.1	%
Premises and equipment, net		194,278			192,722			189,791					0.8	%				2.4	%
Mortgage servicing rights		66,464			61,613			79,394					7.9	%		)		-16.3	%
Goodwill		385,270			385,270			379,627					0.0	%				1.5	%
Identifiable intangible assets		7,390			8,142			7,343			)		-9.2	%				0.6	%
Other real estate		11,651			16,248			29,248			)		-28.3	%		)		-60.2	%
Operating lease right-of-use assets		30,901			30,508			31,182					1.3	%		)		-0.9	%
Other assets		609,142			609,922			532,389			)		-0.1	%				14.4	%
Total assets	$	16,551,840		$	15,558,162		$	13,497,877					6.4	%				22.6	%
Deposits:
Noninterest-bearing	$	4,349,010		$	3,964,023		$	2,891,215					9.7	%				50.4	%
Interest-bearing		9,699,754			9,258,390			8,354,342					4.8	%				16.1	%
Total deposits		14,048,764			13,222,413			11,245,557					6.2	%				24.9	%
Fed funds purchased and repurchases		164,519			153,834			256,020					6.9	%		)		-35.7	%
Other borrowings		168,252			178,599			85,396			)		-5.8	%				97.0	%
Subordinated notes		122,921			—			—				n/m					n/m
Junior subordinated debt securities		61,856			61,856			61,856					0.0	%				0.0	%
ACL on off-balance sheet credit exposures (1)		38,572			39,659			—			)		-2.7	%			n/m
Operating lease liabilities		32,290			31,838			32,354					1.4	%		)		-0.2	%
Other liabilities		173,549			159,922			155,992					8.5	%				11.3	%
Total liabilities		14,810,723			13,848,121			11,837,175					7.0	%				25.1	%
Common stock		13,215			13,215			13,376					0.0	%		)		-1.2	%
Capital surplus		233,120			231,836			256,400					0.6	%		)		-9.1	%
Retained earnings		1,495,833			1,459,306			1,414,526					2.5	%				5.7	%
Accum other comprehensive income (loss),<br><br><br>net of tax		(1,051	)		5,684			(23,600	)		)	n/m						95.5	%
Total shareholders' equity		1,741,117			1,710,041			1,660,702					1.8	%				4.8	%
Total liabilities and equity	$	16,551,840		$	15,558,162		$	13,497,877					6.4	%				22.6	%
(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.
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
December 31, 2020
($ in thousands except per share data)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
INCOME STATEMENTS	12/31/2020			9/30/2020			12/31/2019			Change		% Change			Change		% Change
Interest and fees on LHFS & LHFI-FTE	$	96,453		$	97,429		$	111,383			)		-1.0	%		)		-13.4	%
Interest and fees on PPP loans		14,870			6,729			—				n/m					n/m
Interest and fees on acquired loans (1)		—			—			2,138				n/m				)		-100.0	%
Interest on securities-taxable		9,998			12,542			12,884			)		-20.3	%		)		-22.4	%
Interest on securities-tax exempt-FTE		293			301			484			)		-2.7	%		)		-39.5	%
Interest on fed funds sold and reverse repurchases		—			1			1			)		-100.0	%		)		-100.0	%
Other interest income		249			331			896			)		-24.8	%		)		-72.2	%
Total interest income-FTE		121,863			117,333			127,786					3.9	%		)		-4.6	%
Interest on deposits		6,363			7,437			17,716			)		-14.4	%		)		-64.1	%
Interest on fed funds purchased and repurchases		56			32			504					75.0	%		)		-88.9	%
Other interest expense		1,127			688			826					63.8	%				36.4	%
Total interest expense		7,546			8,157			19,046			)		-7.5	%		)		-60.4	%
Net interest income-FTE		114,317			109,176			108,740					4.7	%				5.1	%
Provision for credit losses, LHFI (1)		(4,413	)		1,760			3,661			)	n/m				)	n/m
Provision for loan losses, acquired loans (1)		—			—			(2	)			n/m						100.0	%
Net interest income after provision-FTE		118,730			107,416			105,081					10.5	%				13.0	%
Service charges on deposit accounts		8,283			7,577			10,894					9.3	%		)		-24.0	%
Bank card and other fees		9,107			8,843			8,192					3.0	%				11.2	%
Mortgage banking, net		28,155			36,439			7,914			)		-22.7	%			n/m
Insurance commissions		10,196			11,562			9,364			)		-11.8	%				8.9	%
Wealth management		7,838			7,679			7,763					2.1	%				1.0	%
Other, net		2,538			1,601			3,451					58.5	%		)		-26.5	%
Total noninterest income		66,117			73,701			47,578			)		-10.3	%				39.0	%
Salaries and employee benefits		69,660			67,342			62,319					3.4	%				11.8	%
Services and fees		22,327			20,992			19,500					6.4	%				14.5	%
Net occupancy-premises		6,616			7,000			6,461			)		-5.5	%				2.4	%
Equipment expense		6,213			5,828			5,880					6.6	%				5.7	%
Other real estate expense, net		(812	)		1,203			1,491			)	n/m				)	n/m
Credit loss expense related to off-balance sheet<br><br><br>credit exposures (1)		(1,087	)		(3,004	)		—					63.8	%		)	n/m
Other expense		15,890			14,598			14,376					8.9	%				10.5	%
Total noninterest expense		118,807			113,959			110,027					4.3	%				8.0	%
Income before income taxes and tax eq adj		66,040			67,158			42,632			)		-1.7	%				54.9	%
Tax equivalent adjustment		2,939			2,969			3,149			)		-1.0	%		)		-6.7	%
Income before income taxes		63,101			64,189			39,483			)		-1.7	%				59.8	%
Income taxes		11,884			9,749			5,537					21.9	%			n/m
Net income	$	51,217		$	54,440		$	33,946			)		-5.9	%				50.9	%
Per share data
Earnings per share - basic	$	0.81		$	0.86		$	0.53			)		-5.8	%				52.8	%
Earnings per share - diluted	$	0.81		$	0.86		$	0.53			)		-5.8	%				52.8	%
Dividends per share	$	0.23		$	0.23		$	0.23					0.0	%				0.0	%
Weighted average shares outstanding
Basic		63,424,219			63,422,692			64,255,716
Diluted		63,616,767			63,581,964			64,435,276
Period end shares outstanding		63,424,526			63,423,820			64,200,111
(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.
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
December 31, 2020
($ in thousands)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
NONPERFORMING ASSETS (1)	12/31/2020			9/30/2020			12/31/2019			Change		% Change			Change		% Change
Nonaccrual LHFI
Alabama	$	9,221		$	3,860		$	1,870				n/m					n/m
Florida		572			617			267			)		-7.3	%			n/m
Mississippi (2)		35,015			35,617			41,493			)		-1.7	%		)		-15.6	%
Tennessee (3)		12,572			13,041			8,980			)		-3.6	%				40.0	%
Texas		5,748			721			616				n/m					n/m
Total nonaccrual LHFI		63,128			53,856			53,226					17.2	%				18.6	%
Other real estate
Alabama		3,271			3,725			8,133			)		-12.2	%		)		-59.8	%
Florida		—			3,665			5,877			)		-100.0	%		)		-100.0	%
Mississippi (2)		8,330			8,718			14,919			)		-4.5	%		)		-44.2	%
Tennessee (3)		50			140			319			)		-64.3	%		)		-84.3	%
Texas		—			—			—				n/m					n/m
Total other real estate		11,651			16,248			29,248			)		-28.3	%		)		-60.2	%
Total nonperforming assets	$	74,779		$	70,104		$	82,474					6.7	%		)		-9.3	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,576		$	782		$	642				n/m					n/m
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	119,409		$	121,281		$	41,648			)		-1.5	%			n/m
	Quarter Ended									Linked Quarter					Year over Year
ACL LHFI (1)(4)	12/31/2020			9/30/2020			12/31/2019			Change		% Change			Change		% Change
Beginning Balance	$	122,010		$	119,188		$	83,226					2.4	%				46.6	%
CECL adoption adjustments:
LHFI		—			—			—				n/m					n/m
Acquired loan transfers		—			—			—				n/m					n/m
Provision for credit losses		(4,413	)		1,760			3,661			)	n/m				)	n/m
Charge-offs		(2,797	)		(1,263	)		(4,619	)		)	n/m						39.4	%
Recoveries		2,506			2,325			2,009					7.8	%				24.7	%
Net (charge-offs) recoveries		(291	)		1,062			(2,610	)		)	n/m						88.9	%
Ending Balance	$	117,306		$	122,010		$	84,277			)		-3.9	%				39.2	%
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	(1,011	)	$	117		$	(132	)		)	n/m				)	n/m
Florida		66			387			357			)		-82.9	%		)		-81.5	%
Mississippi (2)		332			442			(1,792	)		)		-24.9	%			n/m
Tennessee (3)		303			42			(131	)			n/m					n/m
Texas		19			74			(912	)		)		-74.3	%			n/m
Total net (charge-offs) recoveries	$	(291	)	$	1,062		$	(2,610	)		)	n/m						-88.9	%
(1)  Excludes PPP and acquired loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
(4)  See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.
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
December 31, 2020
($ in thousands)
(unaudited)
	Quarter Ended															Year Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
AVERAGE BALANCES	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Securities AFS-taxable	$	1,902,162		$	1,857,050		$	1,724,320		$	1,620,422		$	1,551,358		$	1,776,555		$	1,633,496
Securities AFS-nontaxable		5,206			5,973			9,827			22,056			23,300			10,737			29,948
Securities HTM-taxable		550,563			608,585			655,085			694,740			734,474			626,983			799,726
Securities HTM-nontaxable		24,752			25,508			25,538			25,673			25,703			25,366			26,874
Total securities		2,482,683			2,497,116			2,414,770			2,362,891			2,334,835			2,439,641			2,490,044
PPP loans		875,098			941,456			764,416			—			—			646,680			—
Loans (includes loans held for sale) (1)		10,231,671			10,162,379			9,908,132			9,678,174			9,467,437			9,996,192			9,302,037
Acquired loans (1)		—			—			—			—			77,797			—			88,903
Fed funds sold and reverse repurchases		303			301			113			164			184			221			9,529
Other earning assets		860,540			722,917			854,642			187,327			227,116			657,096			240,622
Total earning assets		14,450,295			14,324,169			13,942,073			12,228,556			12,107,369			13,739,830			12,131,135
ACL LHFI (1)		(124,088	)		(121,842	)		(103,006	)		(85,015	)		(86,211	)		(108,567	)		(83,559	)
Other assets		1,620,694			1,564,825			1,685,317			1,498,725			1,445,075			1,592,393			1,452,012
Total assets	$	15,946,901		$	15,767,152		$	15,524,384		$	13,642,266		$	13,466,233		$	15,223,656		$	13,499,588
Interest-bearing demand deposits	$	3,649,590		$	3,669,249		$	3,832,372		$	3,184,134		$	3,167,256		$	3,584,249		$	3,051,170
Savings deposits		4,350,783			4,416,046			4,180,540			3,646,936			3,448,899			4,149,860			3,650,178
Time deposits		1,436,677			1,507,348			1,578,737			1,617,307			1,663,741			1,534,673			1,783,928
Total interest-bearing deposits		9,437,050			9,592,643			9,591,649			8,448,377			8,279,896			9,268,782			8,485,276
Fed funds purchased and repurchases		170,474			84,077			105,696			247,513			164,754			151,805			110,915
Other borrowings		173,525			167,262			107,533			85,279			79,512			133,602			82,476
Subordinated notes		42,828			—			—			—			—			10,766			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		9,885,733			9,905,838			9,866,734			8,843,025			8,586,018			9,626,811			8,740,523
Noninterest-bearing deposits		4,100,849			3,921,867			3,645,761			2,910,951			3,017,824			3,646,860			2,918,836
Other liabilities		235,284			244,544			346,173			248,220			205,786			268,398			218,216
Total liabilities		14,221,866			14,072,249			13,858,668			12,002,196			11,809,628			13,542,069			11,877,575
Shareholders' equity		1,725,035			1,694,903			1,665,716			1,640,070			1,656,605			1,681,587			1,622,013
Total liabilities and equity	$	15,946,901		$	15,767,152		$	15,524,384		$	13,642,266		$	13,466,233		$	15,223,656		$	13,499,588
(1)  See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2020
($ in thousands)
(unaudited)
PERIOD END BALANCES	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Cash and due from banks	$	1,952,504		$	564,588		$	1,026,640		$	404,341		$	358,916
Fed funds sold and reverse repurchases		50			50			—			2,000			—
Securities available for sale		1,991,815			1,922,728			1,884,153			1,833,779			1,602,404
Securities held to maturity		538,072			611,280			660,048			704,276			738,099
PPP loans		610,134			944,270			939,783			—			—
Loans held for sale (LHFS)		446,951			485,103			355,089			325,389			226,347
Loans held for investment (LHFI) (1)		9,824,524			9,847,728			9,659,806			9,567,920			9,335,628
ACL LHFI (1)		(117,306	)		(122,010	)		(119,188	)		(100,564	)		(84,277	)
Net LHFI		9,707,218			9,725,718			9,540,618			9,467,356			9,251,351
Acquired loans (1)		—			—			—			—			72,601
Allowance for loan losses, acquired loans (1)		—			—			—			—			(815	)
Net acquired loans		—			—			—			—			71,786
Net LHFI and acquired loans		9,707,218			9,725,718			9,540,618			9,467,356			9,323,137
Premises and equipment, net		194,278			192,722			190,567			190,179			189,791
Mortgage servicing rights		66,464			61,613			57,811			56,437			79,394
Goodwill		385,270			385,270			385,270			381,717			379,627
Identifiable intangible assets		7,390			8,142			8,895			7,537			7,343
Other real estate		11,651			16,248			18,276			24,847			29,248
Operating lease right-of-use assets		30,901			30,508			29,819			30,839			31,182
Other assets		609,142			609,922			595,110			591,132			532,389
Total assets	$	16,551,840		$	15,558,162		$	15,692,079		$	14,019,829		$	13,497,877
Deposits:
Noninterest-bearing	$	4,349,010		$	3,964,023		$	3,880,540		$	2,977,058		$	2,891,215
Interest-bearing		9,699,754			9,258,390			9,624,933			8,598,706			8,354,342
Total deposits		14,048,764			13,222,413			13,505,473			11,575,764			11,245,557
Fed funds purchased and repurchases		164,519			153,834			70,255			421,821			256,020
Other borrowings		168,252			178,599			152,860			84,230			85,396
Subordinated notes		122,921			—			—			—			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures (1)		38,572			39,659			42,663			36,421			—
Operating lease liabilities		32,290			31,838			31,076			32,055			32,354
Other liabilities		173,549			159,922			153,952			155,283			155,992
Total liabilities		14,810,723			13,848,121			14,018,135			12,367,430			11,837,175
Common stock		13,215			13,215			13,214			13,209			13,376
Capital surplus		233,120			231,836			230,613			229,403			256,400
Retained earnings		1,495,833			1,459,306			1,419,552			1,402,089			1,414,526
Accum other comprehensive income (loss), net of tax		(1,051	)		5,684			10,565			7,698			(23,600	)
Total shareholders' equity		1,741,117			1,710,041			1,673,944			1,652,399			1,660,702
Total liabilities and equity	$	16,551,840		$	15,558,162		$	15,692,079		$	14,019,829		$	13,497,877
(1)  See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2020
($ in thousands except per share data)
(unaudited)
	Quarter Ended													Year Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
INCOME STATEMENTS	12/31/2020			9/30/2020			6/30/2020		3/31/2020		12/31/2019			12/31/2020		12/31/2019
Interest and fees on LHFS & LHFI-FTE	$	96,453		$	97,429		$	99,300	$	109,357	$	111,383		$	402,539	$	452,578
Interest and fees on PPP loans		14,870			6,729			5,044		—		—			26,643		—
Interest and fees on acquired loans (1)		—			—			—		—		2,138			—		8,373
Interest on securities-taxable		9,998			12,542			12,762		12,948		12,884			48,250		54,649
Interest on securities-tax exempt-FTE		293			301			315		457		484			1,366		2,166
Interest on fed funds sold and reverse repurchases		—			1			—		—		1			1		240
Other interest income		249			331			239		740		896			1,559		5,363
Total interest income-FTE		121,863			117,333			117,660		123,502		127,786			480,358		523,369
Interest on deposits		6,363			7,437			8,730		14,957		17,716			37,487		79,171
Interest on fed funds purchased and repurchases		56			32			42		625		504			755		1,420
Other interest expense		1,127			688			881		860		826			3,556		3,312
Total interest expense		7,546			8,157			9,653		16,442		19,046			41,798		83,903
Net interest income-FTE		114,317			109,176			108,007		107,060		108,740			438,560		439,466
Provision for credit losses, LHFI (1)		(4,413	)		1,760			18,185		20,581		3,661			36,113		10,797
Provision for loan losses, acquired loans (1)		—			—			—		—		(2	)		—		42
Net interest income after provision-FTE		118,730			107,416			89,822		86,479		105,081			402,447		428,627
Service charges on deposit accounts		8,283			7,577			6,397		10,032		10,894			32,289		42,603
Bank card and other fees		9,107			8,843			7,717		5,355		8,192			31,022		31,736
Mortgage banking, net		28,155			36,439			33,745		27,483		7,914			125,822		29,822
Insurance commissions		10,196			11,562			11,868		11,550		9,364			45,176		42,396
Wealth management		7,838			7,679			7,571		8,537		7,763			31,625		30,679
Other, net		2,538			1,601			2,213		2,307		3,451			8,659		9,809
Total noninterest income		66,117			73,701			69,511		65,264		47,578			274,593		187,045
Salaries and employee benefits		69,660			67,342			66,107		69,148		62,319			272,257		247,717
Services and fees		22,327			20,992			20,567		19,930		19,500			83,816		73,315
Net occupancy-premises		6,616			7,000			6,587		6,286		6,461			26,489		26,149
Equipment expense		6,213			5,828			5,620		5,616		5,880			23,277		23,733
Other real estate expense, net		(812	)		1,203			271		1,294		1,491			1,956		3,906
Credit loss expense related to off-balance sheet credit<br><br><br>exposures (1)		(1,087	)		(3,004	)		6,242		6,783		—			8,934		—
Other expense		15,890			14,598			13,265		14,753		14,376			58,506		54,182
Total noninterest expense		118,807			113,959			118,659		123,810		110,027			475,235		429,002
Income before income taxes and tax eq adj		66,040			67,158			40,674		27,933		42,632			201,805		186,670
Tax equivalent adjustment		2,939			2,969			3,007		3,108		3,149			12,023		12,877
Income before income taxes		63,101			64,189			37,667		24,825		39,483			189,782		173,793
Income taxes		11,884			9,749			5,517		2,607		5,537			29,757		23,333
Net income	$	51,217		$	54,440		$	32,150	$	22,218	$	33,946		$	160,025	$	150,460
Per share data
Earnings per share - basic	$	0.81		$	0.86		$	0.51	$	0.35	$	0.53		$	2.52	$	2.33
Earnings per share - diluted	$	0.81		$	0.86		$	0.51	$	0.35	$	0.53		$	2.51	$	2.32
Dividends per share	$	0.23		$	0.23		$	0.23	$	0.23	$	0.23		$	0.92	$	0.92
Weighted average shares outstanding
Basic		63,424,219			63,422,692			63,416,307		63,756,629		64,255,716			63,504,516		64,629,457
Diluted		63,616,767			63,581,964			63,555,065		63,913,603		64,435,276			63,645,599		64,771,770
Period end shares outstanding		63,424,526			63,423,820			63,422,439		63,396,912		64,200,111			63,424,526		64,200,111
(1)  See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL  INFORMATION
December 31, 2020
($ in thousands)
(unaudited)
	Quarter Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
NONPERFORMING ASSETS (1)	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019
Nonaccrual LHFI
Alabama	$	9,221		$	3,860		$	4,392		$	4,769		$	1,870
Florida		572			617			687			254			267
Mississippi (2)		35,015			35,617			37,884			40,815			41,493
Tennessee (3)		12,572			13,041			6,125			6,153			8,980
Texas		5,748			721			906			1,001			616
Total nonaccrual LHFI		63,128			53,856			49,994			52,992			53,226
Other real estate
Alabama		3,271			3,725			4,766			6,229			8,133
Florida		—			3,665			3,665			4,835			5,877
Mississippi (2)		8,330			8,718			9,408			13,296			14,919
Tennessee (3)		50			140			437			487			319
Texas		—			—			—			—			—
Total other real estate		11,651			16,248			18,276			24,847			29,248
Total nonperforming assets	$	74,779		$	70,104		$	68,270		$	77,839		$	82,474
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,576		$	782		$	807		$	708		$	642
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	119,409		$	121,281		$	56,269		$	43,564		$	41,648
	Quarter Ended															Year Ended
ACL LHFI (1)(4)	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Beginning Balance	$	122,010		$	119,188		$	100,564		$	84,277		$	83,226		$	84,277		$	79,290
CECL adoption adjustments:
LHFI		—			—			—			(3,039	)		—			(3,039	)		—
Acquired loan transfers		—			—			—			1,822			—			1,822			—
Provision for credit losses		(4,413	)		1,760			18,185			20,581			3,661			36,113			10,797
Charge-offs		(2,797	)		(1,263	)		(1,870	)		(5,545	)		(4,619	)		(11,475	)		(14,481	)
Recoveries		2,506			2,325			2,309			2,468			2,009			9,608			8,671
Net (charge-offs) recoveries		(291	)		1,062			439			(3,077	)		(2,610	)		(1,867	)		(5,810	)
Ending Balance	$	117,306		$	122,010		$	119,188		$	100,564		$	84,277		$	117,306		$	84,277
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	(1,011	)	$	117		$	526		$	(1,080	)	$	(132	)	$	(1,448	)	$	(754	)
Florida		66			387			(127	)		64			357			390			850
Mississippi (2)		332			442			(86	)		126			(1,792	)		814			(4,438	)
Tennessee (3)		303			42			66			(2,186	)		(131	)		(1,775	)		(708	)
Texas		19			74			60			(1	)		(912	)		152			(760	)
Total net (charge-offs) recoveries	$	(291	)	$	1,062		$	439		$	(3,077	)	$	(2,610	)	$	(1,867	)	$	(5,810	)
(1)  Excludes PPP and acquired loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
(4)  See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL  INFORMATION
December 31, 2020
(unaudited)
	Quarter Ended															Year Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
FINANCIAL RATIOS AND OTHER DATA	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Return on average equity		11.81	%		12.78	%		7.76	%		5.45	%		8.13	%		9.52	%		9.28	%
Return on average tangible equity		15.47	%		16.82	%		10.32	%		7.34	%		10.85	%		12.58	%		12.45	%
Return on average assets		1.28	%		1.37	%		0.83	%		0.66	%		1.00	%		1.05	%		1.11	%
Interest margin - Yield - FTE		3.35	%		3.26	%		3.39	%		4.06	%		4.19	%		3.50	%		4.31	%
Interest margin - Cost		0.21	%		0.23	%		0.28	%		0.54	%		0.62	%		0.30	%		0.69	%
Net interest margin - FTE		3.15	%		3.03	%		3.12	%		3.52	%		3.56	%		3.19	%		3.62	%
Efficiency ratio (1)		65.59	%		62.19	%		62.13	%		63.50	%		68.08	%		63.35	%		66.38	%
Full-time equivalent employees		2,797			2,807			2,798			2,761			2,844
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		0.01	%		-0.04	%		-0.02	%		0.13	%		0.11	%		0.02	%		0.06	%
Provision for credit losses / average loans (3)		-0.17	%		0.07	%		0.74	%		0.86	%		0.15	%		0.36	%		0.12	%
Nonaccrual LHFI / (LHFI + LHFS)		0.61	%		0.52	%		0.50	%		0.54	%		0.56	%
Nonperforming assets / (LHFI + LHFS)		0.73	%		0.68	%		0.68	%		0.79	%		0.86	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.73	%		0.68	%		0.68	%		0.78	%		0.86	%
ACL LHFI / LHFI (3)		1.19	%		1.24	%		1.23	%		1.05	%		0.90	%
ACL LHFI-commercial / commercial LHFI (3)		1.20	%		1.20	%		1.15	%		0.97	%		0.98	%
ACL LHFI-consumer / consumer and home mortgage LHFI (3)		1.16	%		1.41	%		1.56	%		1.35	%		0.61	%
ACL LHFI / nonaccrual LHFI (3)		185.82	%		226.55	%		238.40	%		189.77	%		158.34	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans) (3)		572.69	%		593.72	%		561.04	%		468.84	%		410.52	%
CAPITAL RATIOS (3)
Total equity / total assets		10.52	%		10.99	%		10.67	%		11.79	%		12.30	%
Tangible equity / tangible assets		8.34	%		8.68	%		8.37	%		9.27	%		9.72	%
Tangible equity / risk-weighted assets		11.22	%		11.01	%		11.09	%		11.05	%		11.58	%
Tier 1 leverage ratio		9.33	%		9.20	%		9.08	%		10.21	%		10.48	%
Common equity tier 1 capital ratio		11.62	%		11.36	%		11.42	%		11.35	%		11.93	%
Tier 1 risk-based capital ratio		12.11	%		11.86	%		11.94	%		11.88	%		12.48	%
Total risk-based capital ratio		14.12	%		12.88	%		13.00	%		12.78	%		13.25	%
STOCK PERFORMANCE
Market value-Close	$	27.31		$	21.41		$	24.52		$	23.30		$	34.51
Book value	$	27.45		$	26.96		$	26.39		$	26.06		$	25.87
Tangible book value	$	21.26		$	20.76		$	20.18		$	19.92		$	19.84
(1)  See Note 10 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2)  Excludes PPP and acquired loans.
(3)  See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands)
(unaudited)

Note 1 – Recently Effective Accounting Pronouncements

ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” was adopted by Trustmark Corporation (Trustmark) on January 1, 2020.  At the date of adoption, Trustmark recorded a decrease to its ACL, LHFI of $3.0 million and an increase to its ACL on off-balance sheet credit exposures of $29.6 million resulting in a one-time cumulative effect adjustment of $26.6 million ($19.9 million, net of tax) through retained earnings.

In accordance with the amendments of ASU 2016-13, Trustmark estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts including the COVID-19 pandemic effects.  Trustmark uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool.  The qualitative portion of the ACL is based on general economic conditions and other internal and external factors affecting Trustmark as a whole as well as specific LHFI.  The total quantitative and qualitative portions of the ACL reflect Management’s expectations of future conditions based on reasonable and supportable forecasts.

Based upon the factors discussed above, during the fourth quarter of 2020, Trustmark recorded a negative provision for credit losses of $4.4 million and a negative credit loss expense related to off-balance sheet credit exposures of $1.1 million compared to a provision for credit losses of $1.8 million and a negative credit loss expense related to off-balance sheet credit exposures of $3.0 million recorded during the third quarter of 2020.

Upon adoption of FASB ASC Topic 326, Trustmark elected to account for its existing acquired loans as purchased credit deteriorated loans included within the LHFI portfolio.  As a result, acquired loans of $72.6 million, as well as the necessary calculated allowance of $1.8 million, were transferred during the first quarter of 2020.  The acquired loans and related allowance transferred were acquired in the BancTrust Financial Group, Inc. merger on February 13, 2013.  LHFI presented in prior periods exclude acquired loans and thus may not be comparable to the current period presentation.

In accordance with FASB ASC Subtopic 326-20, “Financial Instruments – Credit Losses – Measured at Amortized Cost,” Trustmark has developed an allowance for credit losses methodology effective January 1, 2020, which replaces its previous allowance for loan losses methodology.  The ACL for LHFI is adjusted through the provision for credit losses and reduced by the charge off of loan amounts, net of recoveries.  Prior periods present the allowance for loan losses and provision for loan losses methodology under the incurred loss model and thus may not be comparable to the current period presentation.

Trustmark’s estimated allowance for credit losses on securities available for sale and held to maturity under ASU 2016-13 was deemed immaterial due to the composition of these portfolios.  Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal.  Therefore, Trustmark did not recognize a cumulative effect adjustment through retained earnings related to the available for sale or held to maturity securities.

Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital.

Note 2 - Paycheck Protection Program

At December 31, 2020, Trustmark had outstanding 7,398 PPP loans totaling $610.1 million (net of $12.9 million of deferred fees and costs) under the Coronavirus Aid, Relief, and Economic Security Act, which was signed into law on March 27, 2020.  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 3 - 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:

	12/31/2020		9/30/2020		6/30/2020		3/31/2020		12/31/2019
SECURITIES AVAILABLE FOR SALE
U.S. Government agency obligations	$	18,041	$	19,011	$	19,898	$	21,190	$	22,327
Obligations of states and political subdivisions		5,835		8,315		11,176		23,572		25,465
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		56,862		62,156		69,637		71,971		69,252
Issued by FNMA and FHLMC		1,441,321		1,279,919		1,121,604		967,329		713,356
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		419,437		500,858		574,940		634,075		658,226
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		50,319		52,469		86,898		115,642		113,778
Total securities available for sale	$	1,991,815	$	1,922,728	$	1,884,153	$	1,833,779	$	1,602,404
SECURITIES HELD TO MATURITY
U.S. Government agency obligations	$	—	$	—	$	—	$	—	$	3,781
Obligations of states and political subdivisions		26,584		31,605		31,629		31,758		31,781
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		7,598		8,244		10,306		10,492		10,820
Issued by FNMA and FHLMC		67,944		78,213		86,346		91,971		96,631
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		360,361		399,400		435,333		463,175		485,324
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		75,585		93,818		96,434		106,880		109,762
Total securities held to maturity	$	538,072	$	611,280	$	660,048	$	704,276	$	738,099
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands)
(unaudited)

Note 3 - Securities Available for Sale and Held to Maturity (continued)

At December 31, 2020, 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 $8.9 million ($6.7 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 98.7% 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 4 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE (1)	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019
Loans secured by real estate:
Construction, land development and other land loans	$	1,309,039		$	1,385,947		$	1,277,277		$	1,136,389		$	1,162,791
Secured by 1-4 family residential properties		1,741,132			1,775,400			1,813,525			1,852,065			1,855,913
Secured by nonfarm, nonresidential properties		2,709,026			2,707,627			2,610,392			2,575,422			2,475,245
Other real estate secured		1,065,964			887,792			884,815			838,573			724,480
Commercial and industrial loans		1,309,078			1,398,468			1,413,255			1,476,777			1,477,896
Consumer loans		161,174			160,960			161,620			170,678			175,738
State and other political subdivision loans		1,000,776			935,349			931,536			938,637			967,944
Other loans		528,335			596,185			567,386			579,379			495,621
LHFI		9,824,524			9,847,728			9,659,806			9,567,920			9,335,628
ACL LHFI		(117,306	)		(122,010	)		(119,188	)		(100,564	)		(84,277	)
Net LHFI	$	9,707,218		$	9,725,718		$	9,540,618		$	9,467,356		$	9,251,351
(1)	See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.
---	---

The following table presents the LHFI composition by region at December 31, 2020 and reflects each region’s diversified mix of loans:

	December 31, 2020
LHFI - COMPOSITION BY REGION	Total		Alabama		Florida		Mississippi<br><br><br>(Central and<br><br><br>Southern<br><br><br>Regions)		Tennessee<br><br><br>(Memphis, TN and<br><br><br>Northern MS<br><br><br>Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,309,039	$	494,486	$	62,963	$	315,555	$	30,618	$	405,417
Secured by 1-4 family residential properties		1,741,132		118,205		37,062		1,501,505		73,039		11,321
Secured by nonfarm, nonresidential properties		2,709,026		710,266		262,697		984,508		186,405		565,150
Other real estate secured		1,065,964		312,295		6,332		392,986		6,621		347,730
Commercial and industrial loans		1,309,078		199,301		22,774		611,743		271,940		203,320
Consumer loans		161,174		23,402		6,641		107,133		20,062		3,936
State and other political subdivision loans		1,000,776		87,468		35,179		670,883		41,698		165,548
Other loans		528,335		81,631		14,247		349,217		61,709		21,531
Loans	$	9,824,524	$	2,027,054	$	447,895	$	4,933,530	$	692,092	$	1,723,953
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	74,177	$	24,842	$	12,945	$	28,546	$	1,231	$	6,613
Development		94,443		37,537		315		33,059		12,505		11,027
Unimproved land		99,857		30,260		15,863		24,742		10,746		18,246
1-4 family construction		245,579		112,709		23,641		71,815		5,061		32,353
Other construction		794,983		289,138		10,199		157,393		1,075		337,178
Construction, land development and other land loans	$	1,309,039	$	494,486	$	62,963	$	315,555	$	30,618	$	405,417
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands)
(unaudited)

Note 4 – Loan Composition (continued)

	December 31, 2020
	Total		Alabama		Florida		Mississippi<br><br><br>(Central and<br><br><br>Southern<br><br><br>Regions)		Tennessee<br><br><br>(Memphis, TN and<br><br><br>Northern MS<br><br><br>Regions)		Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	389,905	$	149,401	$	31,965	$	108,724	$	26,257	$	73,558
Office		228,094		64,625		26,697		68,056		12,122		56,594
Hotel/motel		341,972		146,542		91,819		52,883		39,728		11,000
Mini-storage		130,995		23,499		2,344		61,359		397		43,396
Industrial		183,795		47,135		15,805		40,308		1,087		79,460
Health care		46,597		23,088		2,462		18,462		389		2,196
Convenience stores		16,148		3,304		—		3,351		383		9,110
Nursing homes/senior living		112,256		35,941		—		31,456		6,923		37,936
Other		71,670		4,505		6,715		24,133		8,450		27,867
Total non-owner occupied loans		1,521,432		498,040		177,807		408,732		95,736		341,117
Owner-occupied:
Office		188,960		42,679		45,651		49,120		8,814		42,696
Churches		105,832		22,604		6,768		51,499		10,231		14,730
Industrial warehouses		161,050		13,732		3,097		50,969		16,362		76,890
Health care		136,246		24,485		4,466		94,695		2,341		10,259
Convenience stores		122,155		18,744		9,516		65,919		556		27,420
Retail		73,832		15,308		6,574		26,447		10,653		14,850
Restaurants		59,856		4,255		4,446		34,681		15,097		1,377
Auto dealerships		54,805		7,542		279		21,009		25,975		—
Nursing homes/senior living		175,442		57,846		—		117,596		—		—
Other		109,416		5,031		4,093		63,841		640		35,811
Total owner-occupied loans		1,187,594		212,226		84,890		575,776		90,669		224,033
Loans secured by nonfarm, nonresidential properties	$	2,709,026	$	710,266	$	262,697	$	984,508	$	186,405	$	565,150

Note 5 – Subordinated Notes Payable

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.  The Notes were sold at an underwriting discount of 1.2%, resulting in net proceeds to Trustmark of $123.5 million before deducting offering expenses of $600 thousand. At December 31, 2020, the carrying amount of the Notes was $122.9 million.  The Notes are unsecured obligations and are subordinated in right of payment to all our 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 Trustmark National Bank.  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.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands)
(unaudited)

Note 6 – 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															Year Ended
	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Securities – taxable		1.62	%		2.02	%		2.16	%		2.25	%		2.24	%		2.01	%		2.25	%
Securities – nontaxable		3.89	%		3.80	%		3.58	%		3.85	%		3.92	%		3.78	%		3.81	%
Securities – total		1.65	%		2.05	%		2.18	%		2.28	%		2.27	%		2.03	%		2.28	%
PPP loans		6.76	%		2.84	%		2.65	%		—			—			4.12	%		—
Loans - LHFI & LHFS		3.75	%		3.81	%		4.03	%		4.54	%		4.67	%		4.03	%		4.87	%
Acquired loans		—			—			—			—			10.90	%		—			9.42	%
Loans - total		3.99	%		3.73	%		3.93	%		4.54	%		4.72	%		4.03	%		4.91	%
Fed funds sold & reverse repurchases		—			1.32	%		—			—			2.16	%		0.45	%		2.52	%
Other earning assets		0.12	%		0.18	%		0.11	%		1.59	%		1.57	%		0.24	%		2.23	%
Total earning assets		3.35	%		3.26	%		3.39	%		4.06	%		4.19	%		3.50	%		4.31	%
Interest-bearing deposits		0.27	%		0.31	%		0.37	%		0.71	%		0.85	%		0.40	%		0.93	%
Fed funds purchased & repurchases		0.13	%		0.15	%		0.16	%		1.02	%		1.21	%		0.50	%		1.28	%
Other borrowings		1.61	%		1.19	%		2.09	%		2.35	%		2.32	%		1.72	%		2.29	%
Total interest-bearing liabilities		0.30	%		0.33	%		0.39	%		0.75	%		0.88	%		0.43	%		0.96	%
Net interest margin		3.15	%		3.03	%		3.12	%		3.52	%		3.56	%		3.19	%		3.62	%
Net interest margin excluding PPP and acquired loans		2.91	%		3.05	%		3.14	%		3.52	%		3.52	%		3.15	%		3.58	%

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 and acquired loans, which equals reported net interest income-FTE excluding interest income on PPP and acquired loans, annualized, as a percent of average earning assets excluding average PPP and acquired loans.

The net interest margin excluding PPP and acquired loans totaled 2.91% for the fourth quarter of 2020, a decrease of 14 basis points when compared to the third 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 7 – 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 $909 thousand during the fourth quarter of 2020.

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

	Quarter Ended															Year Ended
	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Mortgage servicing income, net	$	6,227		$	5,742		$	5,893		$	5,819		$	5,854		$	23,681		$	22,883
Change in fair value-MSR from runoff		(5,177	)		(4,590	)		(4,214	)		(2,607	)		(2,950	)		(16,588	)		(11,835	)
Gain on sales of loans, net		28,014			34,472			34,078			14,339			7,984			110,903			30,296
Mortgage banking income before hedge ineffectiveness		29,064			35,624			35,757			17,551			10,888			117,996			41,344
Change in fair value-MSR from market changes		951			60			(3,159	)		(23,999	)		4,048			(26,147	)		(21,078	)
Change in fair value of derivatives		(1,860	)		755			1,147			33,931			(7,022	)		33,973			9,556
Net positive (negative) hedge ineffectiveness		(909	)		815			(2,012	)		9,932			(2,974	)		7,826			(11,522	)
Mortgage banking, net	$	28,155		$	36,439		$	33,745		$	27,483		$	7,914		$	125,822		$	29,822

Note 8 – Salaries and Employee Benefit Plans

Early Retirement Program

In January 2020, Trustmark announced a voluntary early retirement program for associates age 60 and above with five or more years of continuous service. The cost of this program is reflected in a one-time, pre-tax charge of approximately $4.4 million (salaries and benefits of $4.3 million and other miscellaneous expense of $102 thousand; or $0.05 per basic share net of tax) in Trustmark’s first quarter 2020 earnings.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands)
(unaudited)

Note 9 – Other Noninterest Income and Expense

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

	Quarter Ended															Year Ended
	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Partnership amortization for tax credit purposes	$	(1,877	)	$	(1,457	)	$	(1,205	)	$	(1,161	)	$	(1,630	)	$	(5,700	)	$	(7,644	)
Increase in life insurance cash surrender value		1,708			1,755			1,696			1,722			1,802			6,881			7,202
Other miscellaneous income		2,707			1,303			1,722			1,746			3,279			7,478			10,251
Total other, net	$	2,538		$	1,601		$	2,213		$	2,307		$	3,451		$	8,659		$	9,809

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										Year Ended
	12/31/2020		9/30/2020		6/30/2020		3/31/2020		12/31/2019		12/31/2020		12/31/2019
Loan expense	$	3,696	$	3,485	$	2,954	$	2,799	$	2,968	$	12,934	$	11,554
Amortization of intangibles		752		752		736		812		1,002		3,052		4,116
FDIC assessment expense		1,500		1,410		1,590		1,590		1,450		6,090		6,444
Other miscellaneous expense		9,942		8,951		7,985		9,552		8,956		36,430		32,068
Total other expense	$	15,890	$	14,598	$	13,265	$	14,753	$	14,376	$	58,506	$	54,182

Note 10 – 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
December 31, 2020
($ in thousands except per share data)
(unaudited)

Note 10 – Non-GAAP Financial Measures (continued)

		Quarter Ended															Year Ended
		12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,725,035		$	1,694,903		$	1,665,716		$	1,640,070		$	1,656,605		$	1,681,587		$	1,622,013
Less:  Goodwill			(385,270	)		(385,270	)		(383,081	)		(380,671	)		(379,627	)		(383,582	)		(379,627	)
Identifiable intangible assets			(7,803	)		(8,550	)		(7,834	)		(8,049	)		(7,882	)		(8,060	)		(9,212	)
Total average tangible equity		$	1,331,962		$	1,301,083		$	1,274,801		$	1,251,350		$	1,269,096		$	1,289,945		$	1,233,174
PERIOD END BALANCES
Total shareholders' equity		$	1,741,117		$	1,710,041		$	1,673,944		$	1,652,399		$	1,660,702
Less:  Goodwill			(385,270	)		(385,270	)		(385,270	)		(381,717	)		(379,627	)
Identifiable intangible assets			(7,390	)		(8,142	)		(8,895	)		(7,537	)		(7,343	)
Total tangible equity	(a)	$	1,348,457		$	1,316,629		$	1,279,779		$	1,263,145		$	1,273,732
TANGIBLE ASSETS
Total assets		$	16,551,840		$	15,558,162		$	15,692,079		$	14,019,829		$	13,497,877
Less:  Goodwill			(385,270	)		(385,270	)		(385,270	)		(381,717	)		(379,627	)
Identifiable intangible assets			(7,390	)		(8,142	)		(8,895	)		(7,537	)		(7,343	)
Total tangible assets	(b)	$	16,159,180		$	15,164,750		$	15,297,914		$	13,630,575		$	13,110,907
Risk-weighted assets	(c)	$	12,017,378		$	11,963,269		$	11,539,157		$	11,427,297		$	11,002,877
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	51,217		$	54,440		$	32,150		$	22,218		$	33,946		$	160,025		$	150,460
Plus: Intangible amortization net of tax			564			564			552			609			752			2,289			3,088
Net income adjusted for intangible amortization		$	51,781		$	55,004		$	32,702		$	22,827		$	34,698		$	162,314		$	153,548
Period end common shares outstanding	(d)		63,424,526			63,423,820			63,422,439			63,396,912			64,200,111
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			15.47	%		16.82	%		10.32	%		7.34	%		10.85	%		12.58	%		12.45	%
Tangible equity/tangible assets	(a)/(b)		8.34	%		8.68	%		8.37	%		9.27	%		9.72	%
Tangible equity/risk-weighted assets	(a)/(c)		11.22	%		11.01	%		11.09	%		11.05	%		11.58	%
Tangible book value	(a)/(d)*1,000	$	21.26		$	20.76		$	20.18		$	19.92		$	19.84
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,741,117		$	1,710,041		$	1,673,944		$	1,652,399		$	1,660,702
CECL transition adjustment (3)			31,199			32,647			32,693			26,476			—
AOCI-related adjustments			1,051			(5,684	)		(10,565	)		(7,698	)		23,600
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(371,333	)		(371,345	)		(371,342	)		(367,825	)		(365,738	)
Other adjustments and deductions for CET1 (2)			(6,190	)		(6,770	)		(7,352	)		(6,269	)		(5,896	)
CET1 capital	(e)		1,395,844			1,358,889			1,317,378			1,297,083			1,312,668
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,455,844		$	1,418,889		$	1,377,378		$	1,357,083		$	1,372,668
Common equity tier 1 capital ratio	(e)/(c)		11.62	%		11.36	%		11.42	%		11.35	%		11.93	%
(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.
---	---
(3)	See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.
---	---
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands except per share data)
(unaudited)

Note 10 – 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												Year Ended
			12/31/2020		9/30/2020		6/30/2020			3/31/2020			12/31/2019		12/31/2020			12/31/2019
Net interest income (GAAP)			$	111,378	$	106,207	$	105,000		$	103,952		$	105,591	$	426,537		$	426,589
Noninterest income (GAAP)				66,117		73,701		69,511			65,264			47,578		274,593			187,045
Pre-provision revenue		(a)	$	177,495	$	179,908	$	174,511		$	169,216		$	153,169	$	701,130		$	613,634
Noninterest expense (GAAP)			$	118,807	$	113,959	$	118,659		$	123,810		$	110,027	$	475,235		$	429,002
Less:	Voluntary early retirement program			—		—		—			(4,375	)		—		(4,375	)		—
	Credit loss expense related to off-balance sheet credit<br><br><br>exposures			1,087		3,004		(6,242	)		(6,783	)		—		(8,934	)		—
Adjusted noninterest expense - PPNR (Non-GAAP)		(b)	$	119,894	$	116,963	$	112,417		$	112,652		$	110,027	$	461,926		$	429,002
PPNR (Non-GAAP)		(a)-(b)	$	57,601	$	62,945	$	62,094		$	56,564		$	43,142	$	239,204		$	184,632

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											Year Ended
	12/31/2020						12/31/2019					12/31/2020							12/31/2019
	Amount				Diluted EPS		Amount			Diluted EPS		Amount			Diluted EPS				Amount			Diluted EPS
Net Income (GAAP)	$	51,217			$	0.81	$	33,946		$	0.53	$	160,025		$	2.51			$	150,460		$	2.32
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)	$	51,217			$	0.81	$	33,946		$	0.53	$	163,306		$	2.56			$	150,460		$	2.32
	Reported<br><br><br>(GAAP)				Adjusted		Reported<br><br><br>(GAAP)			Adjusted		Reported<br><br><br>(GAAP)			Adjusted				Reported<br><br><br>(GAAP)			Adjusted
				(Non-GAAP)					(Non-GAAP)				(Non-GAAP)					(Non-GAAP)
Return on average equity		11.81	%		n/a			8.13	%	n/a			9.52	%		9.69	%			9.28	%	n/a
Return on average tangible equity		15.47	%		n/a			10.85	%	n/a			12.58	%		12.81	%			12.45	%	n/a
Return on average assets		1.28	%		n/a			1.00	%	n/a			1.05	%		1.07	%			1.11	%	n/a
n/a - not applicable
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2020
($ in thousands)
(unaudited)

Note 10 – Non-GAAP Financial Measures (continued)

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

			Quarter Ended															Year Ended
			12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			12/31/2020			12/31/2019
Total noninterest expense (GAAP)			$	118,807		$	113,959		$	118,659		$	123,810		$	110,027		$	475,235		$	429,002
Less:	Other real estate expense, net			812			(1,203	)		(271	)		(1,294	)		(1,491	)		(1,956	)		(3,906	)
	Amortization of intangibles			(752	)		(752	)		(736	)		(812	)		(1,002	)		(3,052	)		(4,116	)
	Voluntary early retirement program			—			—			—			(4,375	)		—			(4,375	)		—
	Credit loss expense related to off-balance sheet exposures			1,087			3,004			(6,242	)		(6,783	)		—			(8,934	)		—
	Charitable contributions resulting in state tax credits			(375	)		(375	)		(375	)		(375	)		—			(1,500	)		—
Adjusted noninterest expense (Non-GAAP)		(c)	$	119,579		$	114,633		$	111,035		$	110,171		$	107,534		$	455,418		$	420,980
Net interest income (GAAP)			$	111,378		$	106,207		$	105,000		$	103,952		$	105,591		$	426,537		$	426,589
Add:	Tax equivalent adjustment			2,939			2,969			3,007			3,108			3,149			12,023			12,877
Net interest income-FTE (Non-GAAP)		(a)	$	114,317		$	109,176		$	108,007		$	107,060		$	108,740		$	438,560		$	439,466
Noninterest income (GAAP)			$	66,117		$	73,701		$	69,511		$	65,264		$	47,578		$	274,593		$	187,045
Add:	Partnership amortization for tax credit purposes			1,877			1,457			1,205			1,161			1,630			5,700			7,644
Adjusted noninterest income (Non-GAAP)		(b)	$	67,994		$	75,158		$	70,716		$	66,425		$	49,208		$	280,293		$	194,689
Adjusted revenue (Non-GAAP)		(a)+(b)	$	182,311		$	184,334		$	178,723		$	173,485		$	157,948		$	718,853		$	634,155
Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		65.59	%		62.19	%		62.13	%		63.50	%		68.08	%		63.35	%		66.38	%

Fourth Quarter & Fiscal Year 2020 Financial Results January 26, 2021 Exhibit 99.2

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 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 Board (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. Forward–Looking Statements 2

Financial Highlights Performance reflects value of diversified financial services businesses Source: Company reports (1) For Non-GAAP measures, please refer to the Earnings Release dated January 26, 2021 and the Consolidated Financial Information, Footnote 10 – Non-GAAP Financial Measures 3 LHFI (excl PPP loans) increased $488.9 million, or 5.2%, Y-o-Y Originated $970 million of loans through SBA’s Paycheck Protection Program Record mortgage loan production of $3.0 billion; produced noninterest income of $125.8 million Total deposits increased $2.8 billon, or 24.9%, Y-o-Y Earnings Drivers Total Revenue expanded to $701.1 million, up 14.3% Pre-provision net revenue (PPNR) income (1) totaled $239.2 million, up 29.6% Y-o-Y Profitable Revenue Generation Adjusted noninterest expense(1) totaled $455.4 million in 2020, up 8.2% Y-o-Y, reflecting increases in salaries, commissions, performance-based incentives and professional fees Efficiency ratio improved to 63.35% Expense Management Credit quality remained solid, nonperforming assets declined 9.3% Y-o-Y Net charge-offs represented 0.02% of average loans Loans remaining under a COVID-19 related concession represented approximately 35 basis points of loans HFI at year end 2020 Credit Quality Maintained strong capital levels with CET1 ratio of 11.62% and total risk-based capital ratio of 14.12% Issued $125 million of 3.625% fixed-to-floating rate subordinated holding company debt in 4Q Board of Directors declared quarterly cash dividend of $0.23 per share Authorization to repurchase up to $100 million of outstanding common shares through December 31, 2021 Capital Management

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. (2) During the first quarter of 2020, Trustmark reclassified $72.6 million of acquired loans to loans held for investment with the adoption of FASB ASC Topic 326. Reflects change excluding acquired loan reclass. Trustmark has no loan exposure in which the source of repayment or the underlying security of such exposure is tied to the realization of value from energy reserves

Total energy-related sector exposure of $329.1 million with outstanding balances of $102.3 million – representing 1.04% of total LHFI – at December 31, 2020

At December 31, 2020, nonaccrual energy-related loans represented 10.17% of outstanding energy-related loans and 11 basis points of outstanding LHFI Dollar Change: $232 $92(2) $188 $(23) 4

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

Balanced between non-owner and owner-occupied portfolios

Virtually no REIT outstandings ($15.6 million)

Commercial Loan Portfolio Detail 6 Source: Company reports Portfolio includes commercial, financial intermediaries, agriculture production and non-profits

Well-diversified portfolio with no single category exceeding 14%

Small energy book and has never been an area of focused growth

Virtually no regulatory defined higher risk commercial and industrial outstanding ($11 million)

COVID-19 Impacted Industries 7 At December 31, 2020

COVID-19 Loan Portfolio Review 8 During the fourth quarter, Trustmark conducted an updated analysis of previously reviewed borrowers receiving payment concessions and other borrowers in industries significantly impacted by COVID-19 which included certain pass rated credits of $500 thousand or more and watch or criticized credits of $100 thousand or more. Collectively, the review included borrowers with $969.7 million in outstanding balances.

Approximately 47% of borrowers receiving concessions were reviewed.

Within the COVID-19 impacted industries, the review included the following:

As a result of the review, approximately $32 million was downgraded to a criticized category. This included borrowers in the COVID related industries as follows:

Allowance for Credit Losses Source: Company reports Does not include allowance for off balance sheet credit exposures 9 ($ in millions)

Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 1.19% of loans held for investment and 572.69% of nonperforming loans, excluding individually evaluated loans Net charge-offs totaled $291 thousand, or 0.01% of average loans, in the fourth quarter Other real estate declined 28.3% from the previous quarter and 60.2% year-over-year Source: Company reports Note: Unless noted otherwise, credit metrics exclude acquired loans, PPP loans and other real estate covered by FDIC loss-share agreement (1) NPLs excludes individually evaluated loans 10

Paycheck Protection Program (PPP) Source: Company reports (1) Does not include loans that have been funded and paid off at 12/31/20 11

Attractive, Low-Cost Deposit Base Deposits totaled $14.0 billion at December 31, 2020, up $826.4 million, or 6.2%, linked-quarter, and up $2.8 billion, or 24.9% year-over-year.

Cost of interest-bearing deposits in the fourth quarter totaled 0.27%, down 4 basis points from the prior quarter Source: Company reports (1) Percentages may not sum to 100% due to rounding. (2) Above does not include the daily sweep between low transaction interest checking to savings for regulatory purposes. 12

Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $114.3 million, resulting in a net interest margin of 3.15% in the fourth quarter.

Net interest income (FTE), excluding $14.9 million of interest and fees on PPP loans, totaled $99.4 million in the fourth quarter, resulting in a net interest margin of 2.91%.

Securities yield declined to 1.65% in the fourth quarter driven by higher residential mortgage prepayment speeds, lower reinvestment yields, and reduction in yield maintenance payment receipts. Source: Company reports (1) Totals may not foot due to rounding (2) Loan Yield and NIM exclude acquired loans and PPP 13

Income Statement Highlights – Noninterest Income Source: Company reports (1) Totals may not foot due to rounding

Noninterest income totaled $66.1 million for the fourth quarter, down $7.6 million linked quarter due to a decline in mortgage banking revenue and a seasonal decline in insurance commissions. For the year ended 2020, noninterest income increased $87.5 million principally due to increased mortgage banking revenue.

Insurance revenue totaled $10.2 million in the fourth quarter, a seasonal decline of $1.4 million linked-quarter. For 2020, insurance revenue totaled $45.2 million, an increase of $2.8 million, or 6.6%, from the previous year.

In the fourth quarter, wealth management revenue totaled $7.8 million, a slight increase from the prior quarter. For the year ended 2020, wealth management revenue totaled $31.6 million, an increase of $946 thousand, or 3.1%, from the previous year. 14

Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding

Mortgage banking revenue totaled $125.8 million in 2020, an increase of $96.0 million from the previous year.

Mortgage loan production totaled a record $3.0 billion in 2020, up 69.4% from the prior year.

Mortgage loan production in the fourth quarter totaled $788.4 million, a seasonal decrease of 11.0% from the prior quarter and a 58.1% increase year-over-year.

Retail production represented 73.4% of volume, or $579.0 million, in the fourth quarter.

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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 January 26, 2021 and the Consolidated Financial Information, Footnote 10 – Non-GAAP Financial Measures Adjusted Noninterest Expense(2) – totaled $119.6 million in the fourth quarter, up $5.0 million from the prior quarter. For 2020, adjusted noninterest expense totaled $455.4 million, a $34.4 million, or 8.2%, increase from the prior year. Salaries and benefits increased $20.3 million, or 8.2%, Y-o-Y, due to increased: commission expense of $9.8 million (principally mortgage); associate benefits expense (medical/401k/payroll taxes) of $3.3 million; performance base incentives of $2.6 million; salaries of $2.6 million and COVID 19 related expenses of $2.1 million in 2020.

Services and fees increased by $10.5 million, or 14.3%, Y-o-Y principally for continued technology investments and increased professional services.

Credit loss exp – off balance sheet – increased $8.9 million in 2020 due to the implementation of CECL.

Other real estate – declined $1.9 million in 2020 due to fewer write-downs, as well as increased gains on disposition.

Voluntary early retirement – one time charge for associates electing early retirement in 2020.

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Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong in the fourth quarter with a CET1 ratio of 11.62% and a total risk-based capital ratio of 14.12% at December 31, 2020 Issued $125 million of 3.625% fixed-to-floating rate subordinated holding company debt in Q4-20 Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2021, to shareholders of record on March 1, 2021 Authorization to repurchase up to $100 million of outstanding common shares through December 31, 2021 Source: Company reports (1) Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital. 17

Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 183 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.

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