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

April 27, 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 April 27, 2021, Trustmark Corporation issued a press release announcing its financial results for the period ended March 31, 2021.  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 March 31, 2021
99.2	Investor slide presentation for the period ended March 31, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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

TRUSTMARK CORPORATION

BY:	/s/ Thomas C. Owens
	Thomas C. Owens
	Treasurer and Principal Financial Officer
DATE:	April 27, 2021

trmk-ex991_7.htm

Exhibit 99.1

News Release

Trustmark Corporation Announces First Quarter 2021 Financial Results

Performance Reflects Continued Balance Sheet Growth and Strong Credit Quality

JACKSON, Miss. – April 27, 2021 – Trustmark Corporation (Nasdaq:TRMK) reported net income of $52.0 million in the first quarter of 2021, representing diluted earnings per share of $0.82.  Net income in the first quarter produced a return on average tangible equity of 15.56% and a return on average assets of 1.26%.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2021, to shareholders of record on June 1, 2021.

First Quarter Highlights

•	Supported local businesses by originating 4,774 loans totaling $301.5 million (net of $16.5 million in deferred fees and costs) from the SBA’s Paycheck Protection Program (PPP) during the quarter
•	Mortgage loan production totaled $766.6 million, down 2.8% from the prior quarter and an increase of 67.7% from levels one year earlier
---	---
•	Provision for credit losses totaled a negative $10.5 million due to improved credit loss expectations
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Duane A. Dewey, President and CEO, stated, “Our first quarter financial performance reflects solid loan and deposit growth, as well as continued increases in our insurance and wealth management businesses.  Our mortgage banking revenue remained strong following record-setting levels in the prior quarter.  Improvement in the economic outlook resulted in negative provision and expense for credit losses, which also contributed to earnings. We continue to focus on efficiency enhancements throughout the organization, including investments in technology to better serve customers as well as rationalization of the branch network.  Trustmark remains well-positioned to serve and expand our customer base and create long-term value for our shareholders.”

Balance Sheet Management

•	Loans held for investment (HFI) totaled $10.0 billion, up 1.6% from the prior quarter and 4.3% year-over-year
•	Deposits totaled $14.4 billion, an increase of 2.4% linked-quarter and 24.3% year-over-year
---	---
•	Maintained strong capital position with CET1 ratio of 11.71% and total risk-based capital ratio of 14.07%
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Loans HFI totaled $10.0 billion at March 31, 2021, reflecting an increase of $159.2 million, or 1.6%, linked-quarter and $415.8 million, or 4.3%, year-over-year.  The linked-quarter growth reflects increases in other real estate secured loans and loans secured by nonfarm, nonresidential properties, which were principally the result of the migration of construction loans as projects were completed.  Trustmark’s loan portfolio is well-diversified by loan type and geography.

Deposits totaled $14.4 billion at March 31, 2021, up $334.7 million, or 2.4%, from the prior quarter and $2.8 billion, or 24.3%, year-over-year.  Trustmark maintains a strong liquidity position as loans HFI represented 69.4% of total deposits at March 31, 2021.  Noninterest-bearing deposits represented 32.7% of total deposits at the end of the first quarter, compared to 31.0% in the prior quarter.  Interest-bearing deposit costs totaled 0.22% for the first quarter, a decrease of 5 basis points from the prior quarter.  The total cost of interest-bearing liabilities was 0.28% for the first quarter of 2021, a decrease of 2 basis points from the prior quarter.

During the first quarter, Trustmark repurchased $4.2 million, or approximately 145 thousand of its common shares in open market transactions.  At March 31, 2021, Trustmark had $95.8 million in remaining authority under its existing stock repurchase program, which expires December 31, 2021.  The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions.  At March 31, 2021, Trustmark’s tangible equity to tangible assets ratio was 8.30%, while its total risk-based capital ratio was 14.07%.  Tangible book value per share was $21.59 at March 31, 2021, up 8.4% year-over-year.

Credit Quality

•	Allowance for credit losses (ACL) represented 437.08% of nonaccrual loans, excluding individually evaluated loans, at March 31, 2021
•	Recoveries exceeded charge-offs by $2.4 million in the first quarter
---	---
•	Loans remaining under a COVID-19 related concession represented approximately 28 basis points of loans HFI at March 31, 2021
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Nonaccrual loans totaled $63.5 million at March 31, 2021, up $386 thousand from the prior quarter and $10.5 million year-over-year.  Other real estate totaled $10.7 million, reflecting a $1.0 million decrease from the prior quarter and a decline of $14.2 million year-over-year. Collectively, nonperforming assets totaled $74.2 million at March 31, 2021, reflecting a linked-quarter decrease of $614 thousand and a year-over-year decrease of $3.7 million.

The provision for credit losses was a negative $10.5 million in the first quarter.  Negative provisioning was primarily driven by decreases in quantitative reserves as a result of an improving economic forecast.

Allocation of Trustmark’s $109.2 million allowance for credit losses on loans HFI represented 1.13% of commercial loans and 0.95% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.09% at March 31, 2021.  Management believes the level of the ACL is commensurate with the present risk in the loan portfolio.

Revenue Generation

•	Mortgage banking revenue totaled $20.8 million in the first quarter, reflecting tighter spreads and reduced gains on sale of mortgage loans in the secondary market
•	Insurance commissions increased 22.1% from the prior quarter and wealth management revenue rose 7.4% over the same period
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Revenue in the first quarter totaled $162.9 million, down 8.2% from the prior quarter and 3.7% from the same quarter in the prior year.  The linked-quarter decrease primarily reflects lower interest income and fees from PPP loans and loans HFI and lower net gains on sales of mortgage loans.

Net interest income (FTE) in the first quarter totaled $105.2 million, resulting in a net interest margin of 2.81%, down 34 basis points from the prior quarter.  The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.99% for the first quarter, a decrease of 10 basis points when compared to the prior quarter.  Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Noninterest income in the first quarter totaled $60.6 million, a decrease of $5.5 million from the prior quarter and $4.7 million year-over-year.  The linked-quarter increases in insurance, wealth management and bank card revenue were more than offset by declines in mortgage banking revenue and service charges on deposit accounts.  Mortgage loan production in the first quarter totaled $766.6 million, down 2.8% from the record level in the prior quarter and an increase of 67.7% year-over-

year.  Mortgage banking revenue totaled $20.8 million in the first quarter, a decrease of $7.4 million from the prior quarter and $6.7 million year-over-year.  The linked-quarter decline is principally attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market.

Insurance revenue totaled $12.4 million in the first quarter, up 22.1%, or $2.2 million, from the fourth quarter of 2020 and 7.7%, or $895 thousand, year-over-year.  The linked-quarter increase primarily reflects growth in property and casualty commissions.  Wealth management revenue in the first quarter totaled $8.4 million, an increase of $578 thousand, or 7.4%, from the prior quarter and relatively unchanged year-over-year.  The linked-quarter growth reflects both higher trust management fees and brokerage and investment services revenue.

Bank card and other fees increased $365 thousand, or 4.0%, from the prior quarter and $4.1 million, or 76.9%, year-over-year, reflecting higher customer derivative revenue.  Service charges on deposit accounts decreased $927 thousand, or 11.2%, from the prior quarter and $2.7 million, or 26.7%, year-over-year.  The decline is due largely to reduced NSF/OD occurrences attributable in part to stimulus programs to address the COVID-19 pandemic.

Noninterest Expense

•	Noninterest expense totaled $112.2 million in first quarter, down 5.6% from the prior quarter
•	Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses, and credit losses for off-balance sheet credit exposures, increased $629 thousand, or 0.5%, from the prior quarter; please refer to the Consolidated Financial Information, Footnote 8– Non-GAAP Financial Measures
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•	Continued to realign delivery channels to reflect changing customer preferences
---	---

Adjusted noninterest expense in the first quarter was $120.2 million, up $629 thousand, or 0.5%, from the prior quarter.  Salaries and employee benefits increased $1.5 million linked-quarter principally due to payroll taxes and increases for performance-based commissions. Services and fees increased $157 thousand and net occupancy-premises expense grew $179 thousand during the first quarter compared to the prior quarter.

Credit loss expense related to off-balance sheet credit exposures was a negative $9.4 million in the first quarter, reflecting the improvement of the macroeconomic factors used to determine the necessary reserves for off-balance sheet credit exposures.  Other real estate expense, net totaled $324 thousand for the first quarter compared to a negative $812 thousand for the fourth quarter of 2020, reflecting lower net gains on sale of other real estate.

Trustmark continued to invest in technology to enhance efficiency.  Digital transformation initiatives, including a completely redesigned, state-of-the-art website to promote engagement and enhance the customer experience, position Trustmark for additional growth.  During the first quarter, Trustmark continued to realign delivery channels and closed seven offices, reflecting changing customer preferences and the continued migration to mobile and digital banking channels.  Additionally, two new offices were opened, one each in the Memphis, TN MSA and the Jackson, MS MSA.  Each of these offices features a design that integrates myTeller^®^ interactive teller machine technology as well as provides enhanced areas for customer interaction.

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

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 28, 2021 at 8:30 a.m. Central Time to discuss the Corporation’s financial results.  Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com.  A replay of the conference call will also be available through Wednesday, May 12, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10153927.

Trustmark is a financial services company providing banking and financial solutions through 181 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning.  You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information.  These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements.  You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition.  Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters,  pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission (SEC).

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

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

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2021
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
QUARTERLY AVERAGE BALANCES	3/31/2021			12/31/2020			3/31/2020			Change		% Change			Change		% Change
Securities AFS-taxable	$	2,098,089		$	1,902,162		$	1,620,422					10.3	%				29.5	%
Securities AFS-nontaxable		5,190			5,206			22,056			)		-0.3	%		)		-76.5	%
Securities HTM-taxable		489,260			550,563			694,740			)		-11.1	%		)		-29.6	%
Securities HTM-nontaxable		24,070			24,752			25,673			)		-2.8	%		)		-6.2	%
Total securities		2,616,609			2,482,683			2,362,891					5.4	%				10.7	%
Paycheck protection program loans (PPP)		598,139			875,098			—			)		-31.6	%			n/m
Loans (includes loans held for sale)		10,316,319			10,231,671			9,678,174					0.8	%				6.6	%
Fed funds sold and reverse repurchases		136			303			164			)		-55.1	%		)		-17.1	%
Other earning assets		1,667,906			860,540			187,327					93.8	%			n/m
Total earning assets		15,199,109			14,450,295			12,228,556					5.2	%				24.3	%
Allowance for credit losses (ACL), loans held<br><br><br>for investment (LHFI)		(119,557	)		(124,088	)		(85,015	)				3.7	%		)		-40.6	%
Other assets		1,601,250			1,620,694			1,498,725			)		-1.2	%				6.8	%
Total assets	$	16,680,802		$	15,946,901		$	13,642,266					4.6	%				22.3	%
Interest-bearing demand deposits	$	3,743,651		$	3,649,590		$	3,184,134					2.6	%				17.6	%
Savings deposits		4,659,037			4,350,783			3,646,936					7.1	%				27.8	%
Time deposits		1,371,830			1,436,677			1,617,307			)		-4.5	%		)		-15.2	%
Total interest-bearing deposits		9,774,518			9,437,050			8,448,377					3.6	%				15.7	%
Fed funds purchased and repurchases		166,909			170,474			247,513			)		-2.1	%		)		-32.6	%
Other borrowings		166,926			173,525			85,279			)		-3.8	%				95.7	%
Subordinated notes		122,875			42,828			—				n/m					n/m
Junior subordinated debt securities		61,856			61,856			61,856					0.0	%				0.0	%
Total interest-bearing liabilities		10,293,084			9,885,733			8,843,025					4.1	%				16.4	%
Noninterest-bearing deposits		4,363,559			4,100,849			2,910,951					6.4	%				49.9	%
Other liabilities		264,808			235,284			248,220					12.5	%				6.7	%
Total liabilities		14,921,451			14,221,866			12,002,196					4.9	%				24.3	%
Shareholders' equity		1,759,351			1,725,035			1,640,070					2.0	%				7.3	%
Total liabilities and equity	$	16,680,802		$	15,946,901		$	13,642,266					4.6	%				22.3	%
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
March 31, 2021
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
PERIOD END BALANCES	3/31/2021			12/31/2020			3/31/2020			Change		% Change			Change		% Change
Cash and due from banks	$	1,774,541		$	1,952,504		$	404,341			)		-9.1	%			n/m
Fed funds sold and reverse repurchases		—			50			2,000			)		-100.0	%		)		-100.0	%
Securities available for sale		2,337,676			1,991,815			1,833,779					17.4	%				27.5	%
Securities held to maturity		493,738			538,072			704,276			)		-8.2	%		)		-29.9	%
PPP loans		679,725			610,134			—					11.4	%			n/m
Loans held for sale (LHFS)		412,999			446,951			325,389			)		-7.6	%				26.9	%
Loans held for investment (LHFI)		9,983,704			9,824,524			9,567,920					1.6	%				4.3	%
ACL LHFI		(109,191	)		(117,306	)		(100,564	)				6.9	%		)		-8.6	%
Net LHFI		9,874,513			9,707,218			9,467,356					1.7	%				4.3	%
Premises and equipment, net		199,098			194,278			190,179					2.5	%				4.7	%
Mortgage servicing rights		83,035			66,464			56,437					24.9	%				47.1	%
Goodwill		384,237			385,270			381,717			)		-0.3	%				0.7	%
Identifiable intangible assets		6,724			7,390			7,537			)		-9.0	%		)		-10.8	%
Other real estate		10,651			11,651			24,847			)		-8.6	%		)		-57.1	%
Operating lease right-of-use assets		33,704			30,901			30,839					9.1	%				9.3	%
Other assets		587,672			609,142			591,132			)		-3.5	%		)		-0.6	%
Total assets	$	16,878,313		$	16,551,840		$	14,019,829					2.0	%				20.4	%
Deposits:
Noninterest-bearing	$	4,705,991		$	4,349,010		$	2,977,058					8.2	%				58.1	%
Interest-bearing		9,677,449			9,699,754			8,598,706			)		-0.2	%				12.5	%
Total deposits		14,383,440			14,048,764			11,575,764					2.4	%				24.3	%
Fed funds purchased and repurchases		160,991			164,519			421,821			)		-2.1	%		)		-61.8	%
Other borrowings		145,994			168,252			84,230			)		-13.2	%				73.3	%
Subordinated notes		122,877			122,921			—			)		0.0	%			n/m
Junior subordinated debt securities		61,856			61,856			61,856					0.0	%				0.0	%
ACL on off-balance sheet credit exposures		29,205			38,572			36,421			)		-24.3	%		)		-19.8	%
Operating lease liabilities		35,389			32,290			32,055					9.6	%				10.4	%
Other liabilities		178,856			173,549			155,283					3.1	%				15.2	%
Total liabilities		15,118,608			14,810,723			12,367,430					2.1	%				22.2	%
Common stock		13,209			13,215			13,209			)		0.0	%				0.0	%
Capital surplus		229,892			233,120			229,403			)		-1.4	%				0.2	%
Retained earnings		1,533,110			1,495,833			1,402,089					2.5	%				9.3	%
Accum other comprehensive income (loss),<br><br><br>net of tax		(16,506	)		(1,051	)		7,698			)	n/m				)	n/m
Total shareholders' equity		1,759,705			1,741,117			1,652,399					1.1	%				6.5	%
Total liabilities and equity	$	16,878,313		$	16,551,840		$	14,019,829					2.0	%				20.4	%
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
March 31, 2021
($ in thousands except per share data)
(unaudited)
	Quarter Ended								Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
INCOME STATEMENTS	3/31/2021			12/31/2020			3/31/2020		Change		% Change			Change		% Change
Interest and fees on LHFS & LHFI-FTE	$	93,394		$	96,453		$	109,357		)		-3.2	%		)		-14.6	%
Interest and fees on PPP loans		9,241			14,870			—		)		-37.9	%			n/m
Interest on securities-taxable		8,938			9,998			12,948		)		-10.6	%		)		-31.0	%
Interest on securities-tax exempt-FTE		290			293			457		)		-1.0	%		)		-36.5	%
Interest on fed funds sold and reverse repurchases		—			—			—			n/m					n/m
Other interest income		503			249			740			n/m				)		-32.0	%
Total interest income-FTE		112,366			121,863			123,502		)		-7.8	%		)		-9.0	%
Interest on deposits		5,223			6,363			14,957		)		-17.9	%		)		-65.1	%
Interest on fed funds purchased and repurchases		56			56			625				0.0	%		)		-91.0	%
Other interest expense		1,857			1,127			860				64.8	%			n/m
Total interest expense		7,136			7,546			16,442		)		-5.4	%		)		-56.6	%
Net interest income-FTE		105,230			114,317			107,060		)		-7.9	%		)		-1.7	%
Provision for credit losses, LHFI		(10,501	)		(4,413	)		20,581		)	n/m				)	n/m
Net interest income after provision-FTE		115,731			118,730			86,479		)		-2.5	%				33.8	%
Service charges on deposit accounts		7,356			8,283			10,032		)		-11.2	%		)		-26.7	%
Bank card and other fees		9,472			9,107			5,355				4.0	%				76.9	%
Mortgage banking, net		20,804			28,155			27,483		)		-26.1	%		)		-24.3	%
Insurance commissions		12,445			10,196			11,550				22.1	%				7.7	%
Wealth management		8,416			7,838			8,537				7.4	%		)		-1.4	%
Other, net		2,090			2,538			2,307		)		-17.7	%		)		-9.4	%
Total noninterest income		60,583			66,117			65,264		)		-8.4	%		)		-7.2	%
Salaries and employee benefits		71,162			69,660			69,148				2.2	%				2.9	%
Services and fees		22,484			22,327			19,930				0.7	%				12.8	%
Net occupancy-premises		6,795			6,616			6,286				2.7	%				8.1	%
Equipment expense		6,244			6,213			5,616				0.5	%				11.2	%
Other real estate expense, net		324			(812	)		1,294			n/m				)		-75.0	%
Credit loss expense related to off-balance sheet<br><br><br>credit exposures		(9,367	)		(1,087	)		6,783		)	n/m				)	n/m
Other expense		14,539			15,890			14,753		)		-8.5	%		)		-1.5	%
Total noninterest expense		112,181			118,807			123,810		)		-5.6	%		)		-9.4	%
Income before income taxes and tax eq adj		64,133			66,040			27,933		)		-2.9	%			n/m
Tax equivalent adjustment		2,894			2,939			3,108		)		-1.5	%		)		-6.9	%
Income before income taxes		61,239			63,101			24,825		)		-3.0	%			n/m
Income taxes		9,277			11,884			2,607		)		-21.9	%			n/m
Net income	$	51,962		$	51,217		$	22,218				1.5	%			n/m
Per share data
Earnings per share - basic	$	0.82		$	0.81		$	0.35				1.2	%			n/m
Earnings per share - diluted	$	0.82		$	0.81		$	0.35				1.2	%			n/m
Dividends per share	$	0.23		$	0.23		$	0.23				0.0	%				0.0	%
Weighted average shares outstanding
Basic		63,395,911			63,424,219			63,756,629
Diluted		63,562,503			63,616,767			63,913,603
Period end shares outstanding		63,394,522			63,424,526			63,396,912
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2021
($ in thousands)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
NONPERFORMING ASSETS (1)	3/31/2021			12/31/2020			3/31/2020			Change		% Change			Change		% Change
Nonaccrual LHFI
Alabama	$	9,161		$	9,221		$	4,769			)		-0.7	%				92.1	%
Florida		607			572			254					6.1	%			n/m
Mississippi (2)		35,534			35,015			40,815					1.5	%		)		-12.9	%
Tennessee (3)		12,451			12,572			6,153			)		-1.0	%			n/m
Texas		5,761			5,748			1,001					0.2	%			n/m
Total nonaccrual LHFI		63,514			63,128			52,992					0.6	%				19.9	%
Other real estate
Alabama		3,085			3,271			6,229			)		-5.7	%		)		-50.5	%
Florida		—			—			4,835				n/m				)		-100.0	%
Mississippi (2)		7,566			8,330			13,296			)		-9.2	%		)		-43.1	%
Tennessee (3)		—			50			487			)		-100.0	%		)		-100.0	%
Texas		—			—			—				n/m					n/m
Total other real estate		10,651			11,651			24,847			)		-8.6	%		)		-57.1	%
Total nonperforming assets	$	74,165		$	74,779		$	77,839			)		-0.8	%		)		-4.7	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	2,593		$	1,576		$	708					64.5	%			n/m
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	109,566		$	119,409		$	43,564			)		-8.2	%			n/m
	Quarter Ended									Linked Quarter					Year over Year
ACL LHFI (1)	3/31/2021			12/31/2020			3/31/2020			Change		% Change			Change		% Change
Beginning Balance	$	117,306		$	122,010		$	84,277			)		-3.9	%				39.2	%
CECL adoption adjustments:
LHFI		—			—			(3,039	)			n/m						100.0	%
Acquired loan transfers		—			—			1,822				n/m				)		-100.0	%
Provision for credit losses		(10,501	)		(4,413	)		20,581			)	n/m				)	n/m
Charge-offs		(1,245	)		(2,797	)		(5,545	)				55.5	%				77.5	%
Recoveries		3,631			2,506			2,468					44.9	%				47.1	%
Net (charge-offs) recoveries		2,386			(291	)		(3,077	)			n/m					n/m
Ending Balance	$	109,191		$	117,306		$	100,564			)		-6.9	%				8.6	%
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	102		$	(1,011	)	$	(1,080	)			n/m					n/m
Florida		30			66			64			)		-54.5	%		)		-53.1	%
Mississippi (2)		2,207			332			126				n/m					n/m
Tennessee (3)		47			303			(2,186	)		)		-84.5	%			n/m
Texas		—			19			(1	)		)		-100.0	%				100.0	%
Total net (charge-offs) recoveries	$	2,386		$	(291	)	$	(3,077	)			n/m					n/m
(1)  Excludes PPP loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful

All values are in US Dollars.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2021
($ in thousands)
(unaudited)
	Quarter Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
AVERAGE BALANCES	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Securities AFS-taxable	$	2,098,089		$	1,902,162		$	1,857,050		$	1,724,320		$	1,620,422
Securities AFS-nontaxable		5,190			5,206			5,973			9,827			22,056
Securities HTM-taxable		489,260			550,563			608,585			655,085			694,740
Securities HTM-nontaxable		24,070			24,752			25,508			25,538			25,673
Total securities		2,616,609			2,482,683			2,497,116			2,414,770			2,362,891
PPP loans		598,139			875,098			941,456			764,416			—
Loans (includes loans held for sale)		10,316,319			10,231,671			10,162,379			9,908,132			9,678,174
Fed funds sold and reverse repurchases		136			303			301			113			164
Other earning assets		1,667,906			860,540			722,917			854,642			187,327
Total earning assets		15,199,109			14,450,295			14,324,169			13,942,073			12,228,556
ACL LHFI		(119,557	)		(124,088	)		(121,842	)		(103,006	)		(85,015	)
Other assets		1,601,250			1,620,694			1,564,825			1,685,317			1,498,725
Total assets	$	16,680,802		$	15,946,901		$	15,767,152		$	15,524,384		$	13,642,266
Interest-bearing demand deposits	$	3,743,651		$	3,649,590		$	3,669,249		$	3,832,372		$	3,184,134
Savings deposits		4,659,037			4,350,783			4,416,046			4,180,540			3,646,936
Time deposits		1,371,830			1,436,677			1,507,348			1,578,737			1,617,307
Total interest-bearing deposits		9,774,518			9,437,050			9,592,643			9,591,649			8,448,377
Fed funds purchased and repurchases		166,909			170,474			84,077			105,696			247,513
Other borrowings		166,926			173,525			167,262			107,533			85,279
Subordinated notes		122,875			42,828			—			—			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		10,293,084			9,885,733			9,905,838			9,866,734			8,843,025
Noninterest-bearing deposits		4,363,559			4,100,849			3,921,867			3,645,761			2,910,951
Other liabilities		264,808			235,284			244,544			346,173			248,220
Total liabilities		14,921,451			14,221,866			14,072,249			13,858,668			12,002,196
Shareholders' equity		1,759,351			1,725,035			1,694,903			1,665,716			1,640,070
Total liabilities and equity	$	16,680,802		$	15,946,901		$	15,767,152		$	15,524,384		$	13,642,266

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2021
($ in thousands)
(unaudited)
PERIOD END BALANCES	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Cash and due from banks	$	1,774,541		$	1,952,504		$	564,588		$	1,026,640		$	404,341
Fed funds sold and reverse repurchases		—			50			50			—			2,000
Securities available for sale		2,337,676			1,991,815			1,922,728			1,884,153			1,833,779
Securities held to maturity		493,738			538,072			611,280			660,048			704,276
PPP loans		679,725			610,134			944,270			939,783			—
LHFS		412,999			446,951			485,103			355,089			325,389
LHFI		9,983,704			9,824,524			9,847,728			9,659,806			9,567,920
ACL LHFI		(109,191	)		(117,306	)		(122,010	)		(119,188	)		(100,564	)
Net LHFI		9,874,513			9,707,218			9,725,718			9,540,618			9,467,356
Premises and equipment, net		199,098			194,278			192,722			190,567			190,179
Mortgage servicing rights		83,035			66,464			61,613			57,811			56,437
Goodwill		384,237			385,270			385,270			385,270			381,717
Identifiable intangible assets		6,724			7,390			8,142			8,895			7,537
Other real estate		10,651			11,651			16,248			18,276			24,847
Operating lease right-of-use assets		33,704			30,901			30,508			29,819			30,839
Other assets		587,672			609,142			609,922			595,110			591,132
Total assets	$	16,878,313		$	16,551,840		$	15,558,162		$	15,692,079		$	14,019,829
Deposits:
Noninterest-bearing	$	4,705,991		$	4,349,010		$	3,964,023		$	3,880,540		$	2,977,058
Interest-bearing		9,677,449			9,699,754			9,258,390			9,624,933			8,598,706
Total deposits		14,383,440			14,048,764			13,222,413			13,505,473			11,575,764
Fed funds purchased and repurchases		160,991			164,519			153,834			70,255			421,821
Other borrowings		145,994			168,252			178,599			152,860			84,230
Subordinated notes		122,877			122,921			—			—			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures		29,205			38,572			39,659			42,663			36,421
Operating lease liabilities		35,389			32,290			31,838			31,076			32,055
Other liabilities		178,856			173,549			159,922			153,952			155,283
Total liabilities		15,118,608			14,810,723			13,848,121			14,018,135			12,367,430
Common stock		13,209			13,215			13,215			13,214			13,209
Capital surplus		229,892			233,120			231,836			230,613			229,403
Retained earnings		1,533,110			1,495,833			1,459,306			1,419,552			1,402,089
Accum other comprehensive income (loss), net of tax		(16,506	)		(1,051	)		5,684			10,565			7,698
Total shareholders' equity		1,759,705			1,741,117			1,710,041			1,673,944			1,652,399
Total liabilities and equity	$	16,878,313		$	16,551,840		$	15,558,162		$	15,692,079		$	14,019,829

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2021
($ in thousands except per share data)
(unaudited)
	Quarter Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---
INCOME STATEMENTS	3/31/2021			12/31/2020			9/30/2020			6/30/2020		3/31/2020
Interest and fees on LHFS & LHFI-FTE	$	93,394		$	96,453		$	97,429		$	99,300	$	109,357
Interest and fees on PPP loans		9,241			14,870			6,729			5,044		—
Interest on securities-taxable		8,938			9,998			12,542			12,762		12,948
Interest on securities-tax exempt-FTE		290			293			301			315		457
Interest on fed funds sold and reverse repurchases		—			—			1			—		—
Other interest income		503			249			331			239		740
Total interest income-FTE		112,366			121,863			117,333			117,660		123,502
Interest on deposits		5,223			6,363			7,437			8,730		14,957
Interest on fed funds purchased and repurchases		56			56			32			42		625
Other interest expense		1,857			1,127			688			881		860
Total interest expense		7,136			7,546			8,157			9,653		16,442
Net interest income-FTE		105,230			114,317			109,176			108,007		107,060
Provision for credit losses, LHFI		(10,501	)		(4,413	)		1,760			18,185		20,581
Net interest income after provision-FTE		115,731			118,730			107,416			89,822		86,479
Service charges on deposit accounts		7,356			8,283			7,577			6,397		10,032
Bank card and other fees		9,472			9,107			8,843			7,717		5,355
Mortgage banking, net		20,804			28,155			36,439			33,745		27,483
Insurance commissions		12,445			10,196			11,562			11,868		11,550
Wealth management		8,416			7,838			7,679			7,571		8,537
Other, net		2,090			2,538			1,601			2,213		2,307
Total noninterest income		60,583			66,117			73,701			69,511		65,264
Salaries and employee benefits		71,162			69,660			67,342			66,107		69,148
Services and fees		22,484			22,327			20,992			20,567		19,930
Net occupancy-premises		6,795			6,616			7,000			6,587		6,286
Equipment expense		6,244			6,213			5,828			5,620		5,616
Other real estate expense, net		324			(812	)		1,203			271		1,294
Credit loss expense related to off-balance sheet credit exposures		(9,367	)		(1,087	)		(3,004	)		6,242		6,783
Other expense		14,539			15,890			14,598			13,265		14,753
Total noninterest expense		112,181			118,807			113,959			118,659		123,810
Income before income taxes and tax eq adj		64,133			66,040			67,158			40,674		27,933
Tax equivalent adjustment		2,894			2,939			2,969			3,007		3,108
Income before income taxes		61,239			63,101			64,189			37,667		24,825
Income taxes		9,277			11,884			9,749			5,517		2,607
Net income	$	51,962		$	51,217		$	54,440		$	32,150	$	22,218
Per share data
Earnings per share - basic	$	0.82		$	0.81		$	0.86		$	0.51	$	0.35
Earnings per share - diluted	$	0.82		$	0.81		$	0.86		$	0.51	$	0.35
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23	$	0.23
Weighted average shares outstanding
Basic		63,395,911			63,424,219			63,422,692			63,416,307		63,756,629
Diluted		63,562,503			63,616,767			63,581,964			63,555,065		63,913,603
Period end shares outstanding		63,394,522			63,424,526			63,423,820			63,422,439		63,396,912

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL  INFORMATION
March 31, 2021
($ in thousands)
(unaudited)
	Quarter Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
NONPERFORMING ASSETS (1)	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Nonaccrual LHFI
Alabama	$	9,161		$	9,221		$	3,860		$	4,392		$	4,769
Florida		607			572			617			687			254
Mississippi (2)		35,534			35,015			35,617			37,884			40,815
Tennessee (3)		12,451			12,572			13,041			6,125			6,153
Texas		5,761			5,748			721			906			1,001
Total nonaccrual LHFI		63,514			63,128			53,856			49,994			52,992
Other real estate
Alabama		3,085			3,271			3,725			4,766			6,229
Florida		—			—			3,665			3,665			4,835
Mississippi (2)		7,566			8,330			8,718			9,408			13,296
Tennessee (3)		—			50			140			437			487
Texas		—			—			—			—			—
Total other real estate		10,651			11,651			16,248			18,276			24,847
Total nonperforming assets	$	74,165		$	74,779		$	70,104		$	68,270		$	77,839
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	2,593		$	1,576		$	782		$	807		$	708
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	109,566		$	119,409		$	121,281		$	56,269		$	43,564
	Quarter Ended
ACL LHFI (1)	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Beginning Balance	$	117,306		$	122,010		$	119,188		$	100,564		$	84,277
CECL adoption adjustments:
LHFI		—			—			—			—			(3,039	)
Acquired loan transfers		—			—			—			—			1,822
Provision for credit losses		(10,501	)		(4,413	)		1,760			18,185			20,581
Charge-offs		(1,245	)		(2,797	)		(1,263	)		(1,870	)		(5,545	)
Recoveries		3,631			2,506			2,325			2,309			2,468
Net (charge-offs) recoveries		2,386			(291	)		1,062			439			(3,077	)
Ending Balance	$	109,191		$	117,306		$	122,010		$	119,188		$	100,564
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	102		$	(1,011	)	$	117		$	526		$	(1,080	)
Florida		30			66			387			(127	)		64
Mississippi (2)		2,207			332			442			(86	)		126
Tennessee (3)		47			303			42			66			(2,186	)
Texas		—			19			74			60			(1	)
Total net (charge-offs) recoveries	$	2,386		$	(291	)	$	1,062		$	439		$	(3,077	)
(1)  Excludes PPP loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL  INFORMATION
March 31, 2021
(unaudited)
	Quarter Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
FINANCIAL RATIOS AND OTHER DATA	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Return on average equity		11.98	%		11.81	%		12.78	%		7.76	%		5.45	%
Return on average tangible equity		15.56	%		15.47	%		16.82	%		10.32	%		7.34	%
Return on average assets		1.26	%		1.28	%		1.37	%		0.83	%		0.66	%
Interest margin - Yield - FTE		3.00	%		3.35	%		3.26	%		3.39	%		4.06	%
Interest margin - Cost		0.19	%		0.21	%		0.23	%		0.28	%		0.54	%
Net interest margin - FTE		2.81	%		3.15	%		3.03	%		3.12	%		3.52	%
Efficiency ratio (1)		71.84	%		65.59	%		62.19	%		62.13	%		63.50	%
Full-time equivalent employees		2,793			2,797			2,807			2,798			2,761
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		-0.09	%		0.01	%		-0.04	%		-0.02	%		0.13	%
Provision for credit losses / average loans		-0.41	%		-0.17	%		0.07	%		0.74	%		0.86	%
Nonaccrual LHFI / (LHFI + LHFS)		0.61	%		0.61	%		0.52	%		0.50	%		0.54	%
Nonperforming assets / (LHFI + LHFS)		0.71	%		0.73	%		0.68	%		0.68	%		0.79	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.71	%		0.73	%		0.68	%		0.68	%		0.78	%
ACL LHFI / LHFI		1.09	%		1.19	%		1.24	%		1.23	%		1.05	%
ACL LHFI-commercial / commercial LHFI		1.13	%		1.20	%		1.20	%		1.15	%		0.97	%
ACL LHFI-consumer / consumer and home mortgage LHFI		0.95	%		1.16	%		1.41	%		1.56	%		1.35	%
ACL LHFI / nonaccrual LHFI		171.92	%		185.82	%		226.55	%		238.40	%		189.77	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)		437.08	%		572.69	%		593.72	%		561.04	%		468.84	%
CAPITAL RATIOS
Total equity / total assets		10.43	%		10.52	%		10.99	%		10.67	%		11.79	%
Tangible equity / tangible assets		8.30	%		8.34	%		8.68	%		8.37	%		9.27	%
Tangible equity / risk-weighted assets		11.23	%		11.22	%		11.01	%		11.09	%		11.05	%
Tier 1 leverage ratio		9.11	%		9.33	%		9.20	%		9.08	%		10.21	%
Common equity tier 1 capital ratio		11.71	%		11.62	%		11.36	%		11.42	%		11.35	%
Tier 1 risk-based capital ratio		12.20	%		12.11	%		11.86	%		11.94	%		11.88	%
Total risk-based capital ratio		14.07	%		14.12	%		12.88	%		13.00	%		12.78	%
STOCK PERFORMANCE
Market value-Close	$	33.66		$	27.31		$	21.41		$	24.52		$	23.30
Book value	$	27.76		$	27.45		$	26.96		$	26.39		$	26.06
Tangible book value	$	21.59		$	21.26		$	20.76		$	20.18		$	19.92
(1)  See Note 8 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2)  Excludes PPP loans.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)

Note 1 - Paycheck Protection Program

In January 2021, Trustmark began submitting applications to the SBA on behalf of and originating loans to qualified small businesses under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), as amended by the Consolidated Appropriations Act, 2021.  During the first quarter of 2021, Trustmark originated 4,774 PPP loans totaling $301.5 million (net of $16.5 million of deferred fees and costs).  At March 31, 2021, Trustmark had 7,456 PPP loans outstanding that totaled $679.7 million (net of $22.1 million of deferred fees and costs) under the CARES Act.

Due to amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the SBA; therefore, no ACL was estimated for these loans.

Note 2 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
SECURITIES AVAILABLE FOR SALE
U.S. Government agency obligations	$	17,349	$	18,041	$	19,011	$	19,898	$	21,190
Obligations of states and political subdivisions		5,798		5,835		8,315		11,176		23,572
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		52,406		56,862		62,156		69,637		71,971
Issued by FNMA and FHLMC		1,749,144		1,441,321		1,279,919		1,121,604		967,329
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		345,869		419,437		500,858		574,940		634,075
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		167,110		50,319		52,469		86,898		115,642
Total securities available for sale	$	2,337,676	$	1,991,815	$	1,922,728	$	1,884,153	$	1,833,779
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	26,554	$	26,584	$	31,605	$	31,629	$	31,758
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		7,268		7,598		8,244		10,306		10,492
Issued by FNMA and FHLMC		61,855		67,944		78,213		86,346		91,971
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		324,360		360,361		399,400		435,333		463,175
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		73,701		75,585		93,818		96,434		106,880
Total securities held to maturity	$	493,738	$	538,072	$	611,280	$	660,048	$	704,276

At March 31, 2021, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $8.2 million ($6.2 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 98.0% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Loans secured by real estate:
Construction, land development and other land loans	$	1,342,088		$	1,309,039		$	1,385,947		$	1,277,277		$	1,136,389
Secured by 1-4 family residential properties		1,742,782			1,741,132			1,775,400			1,813,525			1,852,065
Secured by nonfarm, nonresidential properties		2,799,195			2,709,026			2,707,627			2,610,392			2,575,422
Other real estate secured		1,135,005			1,065,964			887,792			884,815			838,573
Commercial and industrial loans		1,323,277			1,309,078			1,398,468			1,413,255			1,476,777
Consumer loans		153,267			161,174			160,960			161,620			170,678
State and other political subdivision loans		1,036,694			1,000,776			935,349			931,536			938,637
Other loans		451,396			528,335			596,185			567,386			579,379
LHFI		9,983,704			9,824,524			9,847,728			9,659,806			9,567,920
ACL LHFI		(109,191	)		(117,306	)		(122,010	)		(119,188	)		(100,564	)
Net LHFI	$	9,874,513		$	9,707,218		$	9,725,718		$	9,540,618		$	9,467,356
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)

Note 3 – Loan Composition (continued)

The following table presents the LHFI composition by region at March 31, 2021 and reflects each region’s diversified mix of loans:

	March 31, 2021
LHFI - COMPOSITION BY REGION	Total		Alabama		Florida		Mississippi<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	$	1,342,088	$	497,839	$	65,032	$	315,127	$	40,117	$	423,973
Secured by 1-4 family residential properties		1,742,782		112,699		37,777		1,509,503		69,371		13,432
Secured by nonfarm, nonresidential properties		2,799,195		765,496		263,877		976,949		181,688		611,185
Other real estate secured		1,135,005		325,951		6,139		418,988		19,910		364,017
Commercial and industrial loans		1,323,277		203,778		22,980		621,592		290,619		184,308
Consumer loans		153,267		22,501		7,755		100,323		19,232		3,456
State and other political subdivision loans		1,036,694		95,707		35,179		684,640		45,335		175,833
Other loans		451,396		79,979		13,016		279,520		64,796		14,085
Loans	$	9,983,704	$	2,103,950	$	451,755	$	4,906,642	$	731,068	$	1,790,289
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	67,471	$	21,575	$	11,036	$	26,266	$	1,373	$	7,221
Development		110,837		42,509		610		42,838		13,709		11,171
Unimproved land		108,607		33,232		14,333		31,363		11,568		18,111
1-4 family construction		255,987		117,406		22,312		71,072		12,495		32,702
Other construction		799,186		283,117		16,741		143,588		972		354,768
Construction, land development and other land loans	$	1,342,088	$	497,839	$	65,032	$	315,127	$	40,117	$	423,973
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	400,595	$	162,007	$	31,393	$	106,249	$	25,339	$	75,607
Office		236,662		68,374		26,516		64,074		12,449		65,249
Hotel/motel		352,191		150,807		90,266		51,443		36,164		23,511
Mini-storage		135,538		23,176		2,392		62,461		390		47,119
Industrial		201,182		47,521		18,356		47,369		419		87,517
Health care		41,973		21,803		1,194		16,417		383		2,176
Convenience stores		16,773		3,289		200		3,134		373		9,777
Nursing homes/senior living		158,489		71,123		—		42,050		6,760		38,556
Other		78,407		10,075		7,261		25,585		8,846		26,640
Total non-owner occupied loans		1,621,810		558,175		177,578		418,782		91,123		376,152
Owner-occupied:
Office		163,874		40,240		44,295		37,566		8,662		33,111
Churches		102,001		21,454		6,586		50,270		10,030		13,661
Industrial warehouses		177,666		12,410		3,169		49,610		17,122		95,355
Health care		141,491		26,787		7,525		94,096		2,327		10,756
Convenience stores		136,175		17,369		9,348		65,479		531		43,448
Retail		69,585		14,050		6,670		23,696		10,512		14,657
Restaurants		56,319		4,267		4,394		32,341		15,025		292
Auto dealerships		56,449		7,033		274		23,599		25,543		—
Nursing homes/senior living		176,746		58,770		—		117,976		—		—
Other		97,079		4,941		4,038		63,534		813		23,753
Total owner-occupied loans		1,177,385		207,321		86,299		558,167		90,565		235,033
Loans secured by nonfarm, nonresidential properties	$	2,799,195	$	765,496	$	263,877	$	976,949	$	181,688	$	611,185
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)

Note 4 – Subordinated Notes

During the fourth quarter of 2020, Trustmark agreed to issue and sell $125.0 million aggregate principal amount of its 3.625% Fixed-to-Floating Rate Subordinated Notes (the Notes) due December 1, 2030. At March 31, 2021, the carrying amount of the Notes was $122.9 million. The Notes are unsecured obligations and are subordinated in right of payment to all of Trustmark’s existing and future senior indebtedness, whether secured or unsecured. The Notes are obligations of Trustmark only and are not obligations of, and are not guaranteed by, any of its subsidiaries, including TNB. From the date of issuance until November 30, 2025, the Notes bear interest at a fixed rate of 3.625% per year, payable semi-annually in arrears on June 1 and December 1 of each year. Beginning December 1, 2025, the Notes will bear interest at a floating rate per year equal to the Benchmark rate, which is the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 338.7 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. The Notes qualify as Tier 2 capital for Trustmark.  The Notes may be redeemed at Trustmark’s option under certain circumstances. Trustmark intends to use the net proceeds for general corporate purposes.

Note 5 – Yields on Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

	Quarter Ended
	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Securities – taxable		1.40	%		1.62	%		2.02	%		2.16	%		2.25	%
Securities – nontaxable		4.02	%		3.89	%		3.80	%		3.58	%		3.85	%
Securities – total		1.43	%		1.65	%		2.05	%		2.18	%		2.28	%
PPP loans		6.27	%		6.76	%		2.84	%		2.65	%		—
Loans - LHFI & LHFS		3.67	%		3.75	%		3.81	%		4.03	%		4.54	%
Loans - total		3.81	%		3.99	%		3.73	%		3.93	%		4.54	%
Fed funds sold & reverse repurchases		—			—			1.32	%		—			—
Other earning assets		0.12	%		0.12	%		0.18	%		0.11	%		1.59	%
Total earning assets		3.00	%		3.35	%		3.26	%		3.39	%		4.06	%
Interest-bearing deposits		0.22	%		0.27	%		0.31	%		0.37	%		0.71	%
Fed funds purchased & repurchases		0.14	%		0.13	%		0.15	%		0.16	%		1.02	%
Other borrowings		2.14	%		1.61	%		1.19	%		2.09	%		2.35	%
Total interest-bearing liabilities		0.28	%		0.30	%		0.33	%		0.39	%		0.75	%
Net interest margin		2.81	%		3.15	%		3.03	%		3.12	%		3.52	%
Net interest margin excluding PPP loans and the FRB balance		2.99	%		3.09	%		3.20	%		3.35	%		3.55	%

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At March 31, 2021 and December 31, 2020, the average FRB balance totaled $1.618 billion and $814.2 million, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 2.99% for the first quarter of 2021, a decrease of 10 basis points when compared to the fourth quarter of 2020.  Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Note 6 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates.  These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP).  Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR.  The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates.  Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions.  The impact of this strategy resulted in a net positive ineffectiveness of $270 thousand during the first quarter of 2021.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)

Note 6 – Mortgage Banking (continued)

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

	Quarter Ended
	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Mortgage servicing income, net	$	6,181		$	6,227		$	5,742		$	5,893		$	5,819
Change in fair value-MSR from runoff		(5,103	)		(5,177	)		(4,590	)		(4,214	)		(2,607	)
Gain on sales of loans, net		19,456			28,014			34,472			34,078			14,339
Mortgage banking income before hedge ineffectiveness		20,534			29,064			35,624			35,757			17,551
Change in fair value-MSR from market changes		13,696			951			60			(3,159	)		(23,999	)
Change in fair value of derivatives		(13,426	)		(1,860	)		755			1,147			33,931
Net positive (negative) hedge ineffectiveness		270			(909	)		815			(2,012	)		9,932
Mortgage banking, net	$	20,804		$	28,155		$	36,439		$	33,745		$	27,483

Note 7 – Other Noninterest Income and Expense

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

	Quarter Ended
	3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Partnership amortization for tax credit purposes	$	(1,522	)	$	(1,877	)	$	(1,457	)	$	(1,205	)	$	(1,161	)
Increase in life insurance cash surrender value		1,639			1,708			1,755			1,696			1,722
Other miscellaneous income		1,973			2,707			1,303			1,722			1,746
Total other, net	$	2,090		$	2,538		$	1,601		$	2,213		$	2,307

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

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

	Quarter Ended
	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
Loan expense	$	3,411	$	3,696	$	3,485	$	2,954	$	2,799
Amortization of intangibles		666		752		752		736		812
FDIC assessment expense		1,540		1,500		1,410		1,590		1,590
Other miscellaneous expense		8,922		9,942		8,951		7,985		9,552
Total other expense	$	14,539	$	15,890	$	14,598	$	13,265	$	14,753

Note 8 – Non-GAAP Financial Measures

In addition to capital ratios defined by U.S. generally accepted accounting principles (GAAP) and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy.  Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions.  Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations.  These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations.  In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other tangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators.  Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios.  Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations.  Also, there may be limits in the usefulness of these measures to investors.  As a result, Trustmark encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.  The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands except per share data)
(unaudited)

Note 8 – Non-GAAP Financial Measures (continued)

		Quarter Ended
		3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,759,351		$	1,725,035		$	1,694,903		$	1,665,716		$	1,640,070
Less:  Goodwill			(385,155	)		(385,270	)		(385,270	)		(383,081	)		(380,671	)
Identifiable intangible assets			(7,118	)		(7,803	)		(8,550	)		(7,834	)		(8,049	)
Total average tangible equity		$	1,367,078		$	1,331,962		$	1,301,083		$	1,274,801		$	1,251,350
PERIOD END BALANCES
Total shareholders' equity		$	1,759,705		$	1,741,117		$	1,710,041		$	1,673,944		$	1,652,399
Less:  Goodwill			(384,237	)		(385,270	)		(385,270	)		(385,270	)		(381,717	)
Identifiable intangible assets			(6,724	)		(7,390	)		(8,142	)		(8,895	)		(7,537	)
Total tangible equity	(a)	$	1,368,744		$	1,348,457		$	1,316,629		$	1,279,779		$	1,263,145
TANGIBLE ASSETS
Total assets		$	16,878,313		$	16,551,840		$	15,558,162		$	15,692,079		$	14,019,829
Less:  Goodwill			(384,237	)		(385,270	)		(385,270	)		(385,270	)		(381,717	)
Identifiable intangible assets			(6,724	)		(7,390	)		(8,142	)		(8,895	)		(7,537	)
Total tangible assets	(b)	$	16,487,352		$	16,159,180		$	15,164,750		$	15,297,914		$	13,630,575
Risk-weighted assets	(c)	$	12,188,988		$	12,017,378		$	11,963,269		$	11,539,157		$	11,427,297
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	51,962		$	51,217		$	54,440		$	32,150		$	22,218
Plus: Intangible amortization net of tax			500			564			564			552			609
Net income adjusted for intangible amortization		$	52,462		$	51,781		$	55,004		$	32,702		$	22,827
Period end common shares outstanding	(d)		63,394,522			63,424,526			63,423,820			63,422,439			63,396,912
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			15.56	%		15.47	%		16.82	%		10.32	%		7.34	%
Tangible equity/tangible assets	(a)/(b)		8.30	%		8.34	%		8.68	%		8.37	%		9.27	%
Tangible equity/risk-weighted assets	(a)/(c)		11.23	%		11.22	%		11.01	%		11.09	%		11.05	%
Tangible book value	(a)/(d)*1,000	$	21.59		$	21.26		$	20.76		$	20.18		$	19.92
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,759,705		$	1,741,117		$	1,710,041		$	1,673,944		$	1,652,399
CECL transition adjustment			26,829			31,199			32,647			32,693			26,476
AOCI-related adjustments			16,506			1,051			(5,684	)		(10,565	)		(7,698	)
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(370,288	)		(371,333	)		(371,345	)		(371,342	)		(367,825	)
Other adjustments and deductions for CET1 (2)			(5,675	)		(6,190	)		(6,770	)		(7,352	)		(6,269	)
CET1 capital	(e)		1,427,077			1,395,844			1,358,889			1,317,378			1,297,083
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,487,077		$	1,455,844		$	1,418,889		$	1,377,378		$	1,357,083
Common equity tier 1 capital ratio	(e)/(c)		11.71	%		11.62	%		11.36	%		11.42	%		11.35	%
(1)	Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
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(2)	Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.
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TRUSTMARK CORPORATION AND SUBSIDIARIES
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NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands except per share data)
(unaudited)

Note 8 – Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents pre-provision net revenue (PPNR) during the periods presented:

			Quarter Ended
			3/31/2021		12/31/2020		9/30/2020		6/30/2020			3/31/2020
Net interest income (GAAP)			$	102,336	$	111,378	$	106,207	$	105,000		$	103,952
Noninterest income (GAAP)				60,583		66,117		73,701		69,511			65,264
Pre-provision revenue		(a)	$	162,919	$	177,495	$	179,908	$	174,511		$	169,216
Noninterest expense (GAAP)			$	112,181	$	118,807	$	113,959	$	118,659		$	123,810
Less:	Voluntary early retirement program			—		—		—		—			(4,375	)
	Credit loss expense related to off-balance sheet credit exposures			9,367		1,087		3,004		(6,242	)		(6,783	)
Adjusted noninterest expense - PPNR (Non-GAAP)		(b)	$	121,548	$	119,894	$	116,963	$	112,417		$	112,652
PPNR (Non-GAAP)		(a)-(b)	$	41,371	$	57,601	$	62,945	$	62,094		$	56,564

The following table presents adjustments to net income and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:

	Quarter Ended
	3/31/2021					3/31/2020
	Amount			Diluted EPS		Amount			Diluted EPS
Net Income (GAAP)	$	51,962		$	0.82	$	22,218		$	0.35
Significant non-routine transactions (net of taxes):
Voluntary early retirement program		—			—		3,281			0.05
Net Income adjusted for significant
non-routine transactions (Non-GAAP)	$	51,962		$	0.82	$	25,499		$	0.40
	Reported			Adjusted		Reported			Adjusted
	(GAAP)			(Non-GAAP)		(GAAP)			(Non-GAAP)
Return on average equity		11.98	%	n/a			5.45	%		6.25	%
Return on average tangible equity		15.56	%	n/a			7.34	%		8.39	%
Return on average assets		1.26	%	n/a			0.66	%		0.75	%
n/a - not applicable
TRUSTMARK CORPORATION AND SUBSIDIARIES
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NOTES TO CONSOLIDATED FINANCIALS
March 31, 2021
($ in thousands)
(unaudited)

Note 8 – Non-GAAP Financial Measures (continued)

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

			Quarter Ended
			3/31/2021			12/31/2020			9/30/2020			6/30/2020			3/31/2020
Total noninterest expense (GAAP)			$	112,181		$	118,807		$	113,959		$	118,659		$	123,810
Less:	Other real estate expense, net			(324	)		812			(1,203	)		(271	)		(1,294	)
	Amortization of intangibles			(666	)		(752	)		(752	)		(736	)		(812	)
	Voluntary early retirement program			—			—			—			—			(4,375	)
	Credit loss expense related to off-balance sheet exposures			9,367			1,087			3,004			(6,242	)		(6,783	)
	Charitable contributions resulting in state tax credits			(350	)		(375	)		(375	)		(375	)		(375	)
Adjusted noninterest expense (Non-GAAP)		(c)	$	120,208		$	119,579		$	114,633		$	111,035		$	110,171
Net interest income (GAAP)			$	102,336		$	111,378		$	106,207		$	105,000		$	103,952
Add:	Tax equivalent adjustment			2,894			2,939			2,969			3,007			3,108
Net interest income-FTE (Non-GAAP)		(a)	$	105,230		$	114,317		$	109,176		$	108,007		$	107,060
Noninterest income (GAAP)			$	60,583		$	66,117		$	73,701		$	69,511		$	65,264
Add:	Partnership amortization for tax credit purposes			1,522			1,877			1,457			1,205			1,161
Adjusted noninterest income (Non-GAAP)		(b)	$	62,105		$	67,994		$	75,158		$	70,716		$	66,425
Adjusted revenue (Non-GAAP)		(a)+(b)	$	167,335		$	182,311		$	184,334		$	178,723		$	173,485
Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		71.84	%		65.59	%		62.19	%		62.13	%		63.50	%

First Quarter 2021 Financial Results 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 could have an adverse effect on our business, results of operations and financial condition.  Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters,  pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission (SEC). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise. Forward–Looking Statements 2

Financial Highlights Performance reflects continued balance sheet growth and strong credit quality Source: Company reports (1) For Non-GAAP measures, please refer to the Earnings Release dated April 27, 2021 and the Consolidated Financial Information, Footnote 8 – Non-GAAP Financial Measures 3 Loans Held for Investment (HFI), excluding Paycheck Protection Program (PPP) loans, increased $159.2 million, or 1.6%, linked quarter and $415.8 million, or 4.3 %, Y-o-Y During the first quarter, originated 4,774 loans totaling $301.5 million (net of $16.5 million in deferred fees and costs) through SBA’s Paycheck Protection Program Earnings Drivers Insurance and wealth management businesses experienced linked-quarter revenue growth 22.1% and 7.4%, respectively Mortgage banking revenue totaled $20.8 million, reflecting tighter spreads and reduced gains on sale of mortgage loans Profitable Revenue Generation Adjusted noninterest expense(1) totaled $120.2 million in the first quarter, up 0.5% linked-quarter reflecting increases in payroll taxes and performance-based commissions Continued branch realignment with closing of seven branches and opening two branches in first quarter Expense Management Recoveries exceeded charge-offs by $2.4 million Loans remaining under a COVID-19 related concession represented approximately 28 basis points of loans HFI at March 31, 2021 Provision for credit losses was a negative $10.5 million driven by decreases in quantitative reserves as a result of an improving economic forecast Credit Quality Maintained strong capital levels with CET1 ratio of 11.71% and total risk-based capital ratio of 14.07% During first quarter, repurchased $4.2 million, or approximately 145 thousand of its outstanding common shares; on March 31, 2021, had $95.8 million remaining for the repurchase program, which expires on December 31, 2021 Board of Directors declared quarterly cash dividend of $0.23 per share 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 $324 million with outstanding balances of $106 million – representing 1.07% of total LHFI – at March 31, 2021

At March 31, 2021, nonaccrual energy-related loans represented 9.4% of outstanding energy-related loans and 10 basis points of outstanding LHFI Dollar Change: $159 $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 ($12.2 million)

Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 10%

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

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

Portfolio includes commercial, financial intermediaries, agriculture production and non-profits

COVID-19 Impacted Industries 7 At March 31, 2021

Allowance for Credit Losses Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 8 ($ in millions) Quantitative changes due to significant improvement of the macroeconomic forecast Qualitative changes including net effects of the COVID-19 pandemic All other changes including individually analyzed reserves, prepayment studies, loan growth, etc. ACL 12/31/20 ACL 03/31/21

Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 1.09% of loans held for investment and 437.08% of nonaccrual loans, excluding individually evaluated loans Other real estate declined $1.0 million from the previous quarter and $14.2 million year-over-year Recoveries exceeded charge-offs by $2.4 million in the first quarter 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 9

Paycheck Protection Program (PPP) Source: Company reports (1) Does not include loans that have been funded and paid off at 03/31/21 10

Attractive, Low-Cost Deposit Base Deposits totaled $14.4 billion at March 31, 2021, up $334.7 million, or 2.4%, linked-quarter, and up $2.8 billion, or 24.3%, year-over-year.

Cost of interest-bearing deposits in the first quarter totaled 0.22%, down 5 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. 11

Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $105.2 million, resulting in a net interest margin of 2.81% in the first quarter.

The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.99% for the quarter, a 10-basis point decrease from the fourth quarter of 2020.

Source: Company reports (1) Totals may not foot due to rounding (2) Loan Yield excludes PPP 12

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

Noninterest income totaled $60.6 million for the first quarter, a decrease of $5.5 million linked-quarter and $4.7 million year-over-year. The linked-quarter increase in insurance, wealth management and bank card revenue was more than offset by declines in mortgage banking revenue and service charges on deposit accounts.

For the first quarter, insurance revenue totaled $12.4 million, a $2.2 million increase from the prior quarter and a $895 thousand increase from the previous year primarily due to growth in property & casualty commissions.

Wealth management revenue for the first quarter totaled $8.4 million, an increase of $578 thousand linked-quarter and relatively unchanged from the prior year. 13

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

Mortgage banking revenue totaled $20.8 million in the first quarter of 2021, a $7.4 million decrease linked-quarter and $6.7 million decrease year-over year.

Mortgage loan production in the first quarter totaled $766.6 million, a seasonal decrease of 2.8% from the prior quarter and a 67.7% increase year-over-year.

Retail production represented 75.0% of volume, or $575.0 million, in the first quarter.

14

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 April 27, 2021 and the Consolidated Financial Information, Footnote 8 – Non-GAAP Financial Measures Noninterest expense - totaled $112.2 million in the first quarter, down 5.6% from the prior quarter. Adjusted noninterest expense(2) – totaled $120.2 million in the first quarter, up $629 thousand from the prior quarter. Salaries and benefits increased $1.5 million linked-quarter mainly due to payroll taxes and increases for performance-based commissions.

Services and fees increased by $157 thousand from the prior quarter; net occupancy-premises increased $179 thousand linked-quarter.

Credit loss expense related to off-balance sheet credit exposures was a negative $9.4 million for the first quarter of 2021, which reflects the improvement of macroeconomic factors that are used in determining the necessary reserves for off-balance sheet credit exposures.

Other real estate expense totaled $324 thousand for the first quarter compared to a negative $812 thousand for the fourth quarter of 2020, which reflects lower net gains on sale of other real estate

15

Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.71% and a total risk-based capital ratio of 14.07% at March 31, 2021 Trustmark repurchased $4.2 million, or approximately 145 thousand of its common shares, during the first quarter. At March 31, 2021, Trustmark had $95.8 million in remaining authority under its existing stock repurchase program, which expires December 31, 2021. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2021, to shareholders of record on June 1, 2021 Source: Company reports (1) Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital. 16

Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 181 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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