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

October 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 October 26, 2021, Trustmark Corporation issued a press release announcing its financial results for the period ended September 30, 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 September 30, 2021
99.2	Investor slide presentation for the period ended September 30, 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:	October 26, 2021

trmk-ex991_7.htm

Exhibit 99.1

News Release

Trustmark Corporation Announces Third Quarter 2021 Financial Results

Performance Reflects Continued Balance Sheet Growth, Strong Credit Quality

and Disciplined Expense Management

JACKSON, Miss. – October 26, 2021 – Trustmark Corporation (NASDAQGS: TRMK) reported net income of $21.2 million in the third quarter of 2021, representing diluted earnings per share of $0.34.  Third quarter results include costs of a previously announced voluntary early retirement program, which reduced net income by $4.3 million, or approximately $0.07 per diluted share.  Results for the quarter also include a previously disclosed charge to resolve allegations by regulatory authorities regarding fair lending matters, which reduced net income by $5.0 million, or approximately $0.08 per diluted share.   Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable December 15, 2021, to shareholders of record on December 1, 2021.

Third Quarter Highlights

•	Voluntary early retirement program resulted in one-time, pre-tax charge of $5.7 million in the third quarter; expected pre-tax savings of approximately $1.3 million for the remainder of 2021 and $4.3 million in 2022
•	Loans held for investment (HFI) increased $22.0 million, reflecting accelerated payoffs during the quarter while deposits expanded $290.8 million compared to the prior quarter
---	---
•	Investment securities increased $470.8 million in the third quarter as excess liquidity was deployed
---	---
•	Provision for credit losses, net totaled a negative $3.5 million, reflecting improved credit loss expectations
---	---
•	Adjusted noninterest expense totaled $116.6 million, up 0.3% linked-quarter; please refer to the Consolidated Financial Information, Note 10 – Non-GAAP Financial Measures
---	---

Duane A. Dewey, President and CEO, stated, “We made significant progress across the organization in the third quarter as reflected by continued balance sheet growth, strong credit quality, and disciplined expense management.  Our associates are focused on expanding customer relationships, which is reflected in the solid performance of our banking, insurance, and wealth management businesses.

“Our third quarter results were impacted by our previously announced settlement with regulatory authorities to resolve fair lending allegations in our Memphis, Tennessee market.  We entered into these settlements to avoid the distraction of protracted litigation and because we share the common goals of breaking down barriers to home financing and exploring innovative ways to help residents of underserved areas achieve the dream of homeownership.  Our quarterly results also reflect the costs associated with our voluntary early retirement program, which was accepted by 98 associates, or 3.6% of our workforce.  As you may recall, we also had a voluntary early retirement program in the first quarter of 2020 in which 107 associates, or 3.8% of the workforce at that time, elected to participate.  Collectively, these programs have provided additional opportunities to redesign workflows and restructure the organization to leverage investments in technology and improve efficiency.”

Balance Sheet Management

•	Loans HFI totaled $10.2 billion, up 0.2% from the prior quarter and 3.3% year-over-year
•	Investment securities totaled $3.5 billion, up 15.8% from the prior quarter and 36.2% year-over-year
---	---
•	Noninterest-bearing deposits increased $540.9 million, or 12.2% linked-quarter
---	---
•	Maintained strong capital position with CET1 ratio of 11.68% and total risk-based capital ratio of 14.01%
---	---

Loans HFI totaled $10.2 billion at September 30, 2021, reflecting an increase of $22.0 million, or 0.2%, linked-quarter and $327.2 million, or 3.3%, year-over-year.  The linked-quarter growth primarily reflects increases in loans secured by nonfarm, nonresidential properties and 1-4 family mortgage loans, which were largely offset by declines in construction loans, other real estate secured loans, and municipal loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.9 billion at September 30, 2021, up $290.8 million, or 2.0%, from the prior quarter and $1.7 billion, or 12.9%, year-over-year.  Trustmark continues to maintain a strong liquidity position as loans HFI represented 68.2% of total deposits at September 30, 2021.  Noninterest-bearing deposits represented 33.4% of total deposits at the end of the third quarter.  Interest-bearing deposit costs totaled 0.14% in the third quarter, a decrease of 5 basis points from the prior quarter. The total cost of interest-bearing liabilities was 0.21% in the third quarter of 2021, a decrease of 4 basis points from the prior quarter.

During the third quarter, Trustmark repurchased $9.7 million, or approximately 319 thousand of its common shares.  During the nine months ended September 30, 2021, Trustmark repurchased $34.6 million, or approximately 1.1 million of its common shares.  At September 30, 2021, Trustmark had $65.4 million in remaining authority under its existing stock repurchase program, which expires on 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 September 30, 2021,Trustmark’s tangible equity-to-tangible assets ratio was 8.12% while its total risk-based capital ratio was 14.01%.

Credit Quality

•	Allowance for credit losses (ACL) represented 520.77% of nonaccrual loans, excluding individually evaluated loans at September 30, 2021
•	Recoveries exceeded charge-offs by $2.5 million in the third quarter
---	---
•	Loans remaining under a COVID-19 related concession represented approximately 20 basis points of loans HFI at September 30, 2021
---	---

Nonaccrual loans totaled $66.2 million at September 30, 2021, up $14.8 million from the prior quarter and up $12.4 million year-over-year.  Other real estate totaled $6.2 million, reflecting a $3.2 million decrease from the prior quarter and a decline of $10.0 million year-over-year.  Collectively, nonperforming assets totaled $72.5 million at September 30, 2021, reflecting a linked-quarter increase of $11.6 million and year-over-year increase of $2.3 million.

The provision for credit losses for loans HFI was a negative $2.5 million in the third quarter.  Negative provisioning was primarily due to improvements in credit quality and the economic forecasts. The provision for credit losses for off-balance sheet credit exposures was a negative $1.0 million in the third quarter and was primarily driven by decreases in the total reserve rates applied to the unfunded portion of the loan portfolio.  Collectively, the provision for credit losses totaled a negative $3.5 million in the third quarter compared to an expense of $537 thousand in the prior quarter and a negative $1.2 million in the third quarter of 2020.

Allocation of Trustmark’s $104.1 million allowance for credit losses on loans HFI represented 1.05% of commercial loans and 0.91% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.02% at September 30, 2021.  Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

•	Excluding Paycheck Protection Program (PPP) interest and fees, net interest income (FTE) increased $2.9 million, or 2.9%, linked-quarter
•	Noninterest income totaled $54.1 million, representing 35.5% of total revenue in the third quarter
---	---
•	Mortgage banking revenue totaled $14.0 million on production of $708.8 million in the third quarter
---	---
•	Service charges on deposit accounts increased $1.3 million, or 17.0%, linked quarter
---	---

Revenue in the third quarter totaled $152.4 million, a decrease of $23.4 million, or 13.3%, from the prior quarter.  During the third quarter, mortgage banking revenue declined $3.3 million while second quarter results included $18.6 million of PPP loan origination fees attributable to the sale of PPP loans.

Net interest income (FTE) in the third quarter totaled $101.2 million, resulting in a net interest margin of 2.57%.  The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.90% during the third quarter, a decrease of 4 basis points when compared to the prior quarter.  Continued low interest rates decreased the yield on the loans HFI 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 third quarter totaled $54.1 million, a decrease of $2.3 million from the prior quarter and $19.6 million  year-over-year.  The linked-quarter and year-over-year changes are principally attributable to lower mortgage banking revenue.  Mortgage loan production in the third quarter totaled $708.8 million, down 3.8% from the prior quarter and 20.0% year-over-year.  Mortgage banking revenue totaled $14.0 million in the third quarter, a decrease of $3.3 million from the prior quarter and $22.4 million year-over-year.  The linked-quarter decline is attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market as well as reduced net hedge ineffectiveness.

Wealth management revenue totaled $9.1 million in the third quarter, an increase of $125 thousand, or 1.4%, from the prior quarter and $1.4 million, or 18.1%, year-over-year.  The growth is attributable to increased trust and investment and brokerage business.  Insurance revenue totaled $12.1 million in the third quarter, relatively unchanged from the prior quarter and up $571 thousand, or 4.9%, year-over-year due in part to increased property and casualty commissions.  Service charges on deposit accounts increased $1.3 million, or 17.0%, from the prior quarter and $1.3 million, or 17.6%, year-over-year.  Bank card and other fees increased $248 thousand from the prior quarter and decreased $294 thousand year-over-year.  The linked-quarter and year-over-year changes are attributable to the level of customer derivative revenue.

Noninterest Expense

•	Noninterest expense totaled $129.6 million in the third quarter and included $5.7 million in one-time expenses related to a voluntary early retirement program and $5.0 million regulatory settlement expenses
•	Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses, charitable contributions resulting in state tax credits, costs associated with the voluntary early retirement program and regulatory charges, totaled $116.6 million in the third quarter, an increase of 0.3% from the prior quarter and 1.8% year-over-year; please refer to the Consolidated Financial Information, Note 10 – Non-GAAP Financial Measures
---	---

Trustmark continued proactive measures to manage noninterest expense.  During the third quarter, Trustmark completed a voluntary early retirement program.  Of those eligible for the program, 98 associates, or 3.6% of the workforce, elected early retirement.  A one-time, pre-tax charge of $5.7 million related to this program was incurred during the third quarter, reflecting $5.6 million in salaries and employee benefits expense and $89 thousand in other expense. The result of this program is expected to result in pre-tax savings of approximately $1.3 million in the fourth quarter of 2021 and $4.3 million in 2022.

Adjusted noninterest expense in the third quarter was $116.6 million, up $384 thousand, or 0.3%, from the prior quarter and $2.0 million, or 1.8%, year-over-year.  Salaries and employee benefits expense increased $4.5 million linked-quarter; excluding the $5.6 million in charges related to the voluntary early retirement program, salary and employee benefits expense declined $1.1 million linked-quarter. Total other expense increased $5.4 million linked-quarter principally due to regulatory settlement expenses.

“Looking forward, Trustmark will continue to focus upon efficiency, growth, and innovation opportunities.  We continue to redesign workflows and restructure the organization to leverage investments in technology, enhance the customer experience, and improve efficiency.  We are focused on providing 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, October 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, November 10, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10160480.

Trustmark is a financial services company providing banking and financial solutions through 180 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 System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the

performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

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

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

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2021
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
QUARTERLY AVERAGE BALANCES	9/30/2021			6/30/2021			9/30/2020			Change		% Change			Change		% Change
Securities AFS-taxable	$	2,686,765		$	2,339,662		$	1,857,050					14.8	%				44.7	%
Securities AFS-nontaxable		5,159			5,174			5,973			)		-0.3	%		)		-13.6	%
Securities HTM-taxable		401,685			441,688			608,585			)		-9.1	%		)		-34.0	%
Securities HTM-nontaxable		8,641			10,958			25,508			)		-21.1	%		)		-66.1	%
Total securities		3,102,250			2,797,482			2,497,116					10.9	%				24.2	%
Paycheck protection program loans (PPP)		122,176			648,222			941,456			)		-81.2	%		)		-87.0	%
Loans (includes loans held for sale)		10,389,826			10,315,927			10,162,379					0.7	%				2.2	%
Fed funds sold and reverse repurchases		69			55			301					25.5	%		)		-77.1	%
Other earning assets		2,038,515			1,750,385			722,917					16.5	%			n/m
Total earning assets		15,652,836			15,512,071			14,324,169					0.9	%				9.3	%
Allowance for credit losses (ACL), loans held<br><br><br>for investment (LHFI)		(104,857	)		(112,346	)		(121,842	)				-6.7	%				13.9	%
Other assets		1,602,611			1,622,388			1,564,825			)		-1.2	%				2.4	%
Total assets	$	17,150,590		$	17,022,113		$	15,767,152					0.8	%				8.8	%
Interest-bearing demand deposits	$	4,224,717		$	4,056,910		$	3,669,249					4.1	%				15.1	%
Savings deposits		4,617,683			4,627,180			4,416,046			)		-0.2	%				4.6	%
Time deposits		1,258,829			1,301,896			1,507,348			)		-3.3	%		)		-16.5	%
Total interest-bearing deposits		10,101,229			9,985,986			9,592,643					1.2	%				5.3	%
Fed funds purchased and repurchases		147,635			174,620			84,077			)		-15.5	%				75.6	%
Other borrowings		109,735			132,199			167,262			)		-17.0	%		)		-34.4	%
Subordinated notes		122,951			122,897			—					0.0	%			n/m
Junior subordinated debt securities		61,856			61,856			61,856					0.0	%				0.0	%
Total interest-bearing liabilities		10,543,406			10,477,558			9,905,838					0.6	%				6.4	%
Noninterest-bearing deposits		4,566,924			4,512,268			3,921,867					1.2	%				16.4	%
Other liabilities		257,956			251,582			244,544					2.5	%				5.5	%
Total liabilities		15,368,286			15,241,408			14,072,249					0.8	%				9.2	%
Shareholders' equity		1,782,304			1,780,705			1,694,903					0.1	%				5.2	%
Total liabilities and equity	$	17,150,590		$	17,022,113		$	15,767,152					0.8	%				8.8	%
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
September 30, 2021
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
PERIOD END BALANCES	9/30/2021			6/30/2021			9/30/2020			Change		% Change			Change		% Change
Cash and due from banks	$	2,175,058		$	2,267,224		$	564,588			)		-4.1	%			n/m
Fed funds sold and reverse repurchases		—			—			50				n/m				)		-100.0	%
Securities available for sale		3,057,605			2,548,739			1,922,728					20.0	%				59.0	%
Securities held to maturity		394,905			433,012			611,280			)		-8.8	%		)		-35.4	%
PPP loans		46,486			166,119			944,270			)		-72.0	%		)		-95.1	%
Loans held for sale (LHFS)		335,339			332,132			485,103					1.0	%		)		-30.9	%
Loans held for investment (LHFI)		10,174,899			10,152,869			9,847,728					0.2	%				3.3	%
ACL LHFI		(104,073	)		(104,032	)		(122,010	)		)		0.0	%				14.7	%
Net LHFI		10,070,826			10,048,837			9,725,718					0.2	%				3.5	%
Premises and equipment, net		201,937			200,970			192,722					0.5	%				4.8	%
Mortgage servicing rights		84,101			80,764			61,613					4.1	%				36.5	%
Goodwill		384,237			384,237			385,270					0.0	%		)		-0.3	%
Identifiable intangible assets		5,621			6,170			8,142			)		-8.9	%		)		-31.0	%
Other real estate		6,213			9,439			16,248			)		-34.2	%		)		-61.8	%
Operating lease right-of-use assets		34,689			33,201			30,508					4.5	%				13.7	%
Other assets		567,627			587,288			609,922			)		-3.3	%		)		-6.9	%
Total assets	$	17,364,644		$	17,098,132		$	15,558,162					1.6	%				11.6	%
Deposits:
Noninterest-bearing	$	4,987,885		$	4,446,991		$	3,964,023					12.2	%				25.8	%
Interest-bearing		9,934,954			10,185,093			9,258,390			)		-2.5	%				7.3	%
Total deposits		14,922,839			14,632,084			13,222,413					2.0	%				12.9	%
Fed funds purchased and repurchases		146,417			157,176			153,834			)		-6.8	%		)		-4.8	%
Other borrowings		94,889			117,223			178,599			)		-19.1	%		)		-46.9	%
Subordinated notes		122,987			122,932			—					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		32,684			33,733			39,659			)		-3.1	%		)		-17.6	%
Operating lease liabilities		36,531			34,959			31,838					4.5	%				14.7	%
Other liabilities		177,494			158,860			159,922					11.7	%				11.0	%
Total liabilities		15,595,697			15,318,823			13,848,121					1.8	%				12.6	%
Common stock		13,014			13,079			13,215			)		-0.5	%		)		-1.5	%
Capital surplus		201,837			210,420			231,836			)		-4.1	%		)		-12.9	%
Retained earnings		1,573,176			1,566,451			1,459,306					0.4	%				7.8	%
Accumulated other comprehensive income (loss),<br><br><br>net of tax		(19,080	)		(10,641	)		5,684			)		-79.3	%		)	n/m
Total shareholders' equity		1,768,947			1,779,309			1,710,041			)		-0.6	%				3.4	%
Total liabilities and equity	$	17,364,644		$	17,098,132		$	15,558,162					1.6	%				11.6	%
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
September 30, 2021
($ in thousands except per share data)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
INCOME STATEMENTS	9/30/2021			6/30/2021			9/30/2020			Change		% Change			Change		% Change
Interest and fees on LHFS & LHFI-FTE	$	94,101		$	93,698		$	97,429					0.4	%		)		-3.4	%
Interest and fees on PPP loans		1,533			25,555			6,729			)		-94.0	%		)		-77.2	%
Interest on securities-taxable		9,973			8,991			12,542					10.9	%		)		-20.5	%
Interest on securities-tax exempt-FTE		132			149			301			)		-11.4	%		)		-56.1	%
Interest on fed funds sold and reverse repurchases		—			—			1				n/m				)		-100.0	%
Other interest income		949			489			331					94.1	%			n/m
Total interest income-FTE		106,688			128,882			117,333			)		-17.2	%		)		-9.1	%
Interest on deposits		3,691			4,630			7,437			)		-20.3	%		)		-50.4	%
Interest on fed funds purchased and repurchases		51			59			32			)		-13.6	%				59.4	%
Other interest expense		1,733			1,813			688			)		-4.4	%			n/m
Total interest expense		5,475			6,502			8,157			)		-15.8	%		)		-32.9	%
Net interest income-FTE		101,213			122,380			109,176			)		-17.3	%		)		-7.3	%
Provision for credit losses, LHFI		(2,492	)		(3,991	)		1,760					37.6	%		)	n/m
Provision for credit losses, off-balance sheet credit<br><br><br>exposures (1)		(1,049	)		4,528			(3,004	)		)	n/m						65.1	%
Net interest income after provision-FTE		104,754			121,843			110,420			)		-14.0	%		)		-5.1	%
Service charges on deposit accounts		8,911			7,613			7,577					17.0	%				17.6	%
Bank card and other fees		8,549			8,301			8,843					3.0	%		)		-3.3	%
Mortgage banking, net		14,004			17,333			36,439			)		-19.2	%		)		-61.6	%
Insurance commissions		12,133			12,217			11,562			)		-0.7	%				4.9	%
Wealth management		9,071			8,946			7,679					1.4	%				18.1	%
Other, net		1,481			2,001			1,601			)		-26.0	%		)		-7.5	%
Total noninterest income		54,149			56,411			73,701			)		-4.0	%		)		-26.5	%
Salaries and employee benefits		74,623			70,115			67,342					6.4	%				10.8	%
Services and fees		22,306			21,769			20,992					2.5	%				6.3	%
Net occupancy-premises		6,854			6,578			7,000					4.2	%		)		-2.1	%
Equipment expense		5,941			5,567			5,828					6.7	%				1.9	%
Other real estate expense, net		1,357			1,511			1,203			)		-10.2	%				12.8	%
Other expense		18,519			13,139			14,598					40.9	%				26.9	%
Total noninterest expense		129,600			118,679			116,963					9.2	%				10.8	%
Income before income taxes and tax eq adj		29,303			59,575			67,158			)		-50.8	%		)		-56.4	%
Tax equivalent adjustment		2,947			2,957			2,969			)		-0.3	%		)		-0.7	%
Income before income taxes		26,356			56,618			64,189			)		-53.4	%		)		-58.9	%
Income taxes		5,156			8,637			9,749			)		-40.3	%		)		-47.1	%
Net income	$	21,200		$	47,981		$	54,440			)		-55.8	%		)		-61.1	%
Per share data
Earnings per share - basic	$	0.34		$	0.76		$	0.86			)		-55.3	%		)		-60.5	%
Earnings per share - diluted	$	0.34		$	0.76		$	0.86			)		-55.3	%		)		-60.5	%
Dividends per share	$	0.23		$	0.23		$	0.23					0.0	%				0.0	%
Weighted average shares outstanding
Basic		62,521,684			63,214,593			63,422,692
Diluted		62,730,157			63,409,683			63,581,964
Period end shares outstanding		62,461,832			62,773,226			63,423,820
(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures.  Prior periods have been reclassified accordingly.
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
September 30, 2021
($ in thousands)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
NONPERFORMING ASSETS (1)	9/30/2021			6/30/2021			9/30/2020			Change		% Change			Change		% Change
Nonaccrual LHFI
Alabama	$	9,223		$	8,952		$	3,860					3.0	%			n/m
Florida		381			467			617			)		-18.4	%		)		-38.2	%
Mississippi (2)		22,898			23,422			35,617			)		-2.2	%		)		-35.7	%
Tennessee (3)		10,356			10,751			13,041			)		-3.7	%		)		-20.6	%
Texas		23,382			7,856			721				n/m					n/m
Total nonaccrual LHFI		66,240			51,448			53,856					28.8	%				23.0	%
Other real estate
Alabama		613			2,830			3,725			)		-78.3	%		)		-83.5	%
Florida		—			—			3,665				n/m				)		-100.0	%
Mississippi (2)		5,600			6,550			8,718			)		-14.5	%		)		-35.8	%
Tennessee (3)		—			59			140			)		-100.0	%		)		-100.0	%
Texas		—			—			—				n/m					n/m
Total other real estate		6,213			9,439			16,248			)		-34.2	%		)		-61.8	%
Total nonperforming assets	$	72,453		$	60,887		$	70,104					19.0	%				3.4	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	625		$	423		$	782					47.8	%		)		-20.1	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	75,091		$	81,538		$	121,281			)		-7.9	%		)		-38.1	%
	Quarter Ended									Linked Quarter					Year over Year
ACL LHFI (1)	9/30/2021			6/30/2021			9/30/2020			Change		% Change			Change		% Change
Beginning Balance	$	104,032		$	109,191		$	119,188			)		-4.7	%		)		-12.7	%
CECL adoption adjustments:
LHFI		—			—			—				n/m					n/m
Acquired loan transfers		—			—			—				n/m					n/m
Provision for credit losses, LHFI		(2,492	)		(3,991	)		1,760					37.6	%		)	n/m
Charge-offs		(1,586	)		(4,828	)		(1,263	)				67.1	%		)		-25.6	%
Recoveries		4,119			3,660			2,325					12.5	%				77.2	%
Net (charge-offs) recoveries		2,533			(1,168	)		1,062				n/m					n/m
Ending Balance	$	104,073		$	104,032		$	122,010					0.0	%		)		-14.7	%
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	247		$	203		$	117					21.7	%			n/m
Florida		356			167			387				n/m				)		-8.0	%
Mississippi (2)		1,436			(3,071	)		442				n/m					n/m
Tennessee (3)		(8	)		1,031			42			)	n/m				)	n/m
Texas		502			502			74					0.0	%			n/m
Total net (charge-offs) recoveries	$	2,533		$	(1,168	)	$	1,062				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
September 30, 2021
($ in thousands)
(unaudited)
	Quarter Ended															Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
AVERAGE BALANCES	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Securities AFS-taxable	$	2,686,765		$	2,339,662		$	2,098,089		$	1,902,162		$	1,857,050		$	2,376,995		$	1,734,380
Securities AFS-nontaxable		5,159			5,174			5,190			5,206			5,973			5,174			12,594
Securities HTM-taxable		401,685			441,688			489,260			550,563			608,585			443,890			652,642
Securities HTM-nontaxable		8,641			10,958			24,070			24,752			25,508			14,500			25,573
Total securities		3,102,250			2,797,482			2,616,609			2,482,683			2,497,116			2,840,559			2,425,189
PPP loans		122,176			648,222			598,139			875,098			941,456			454,436			569,985
Loans (includes loans held for sale)		10,389,826			10,315,927			10,316,319			10,231,671			10,162,379			10,340,960			9,917,127
Fed funds sold and reverse repurchases		69			55			136			303			301			86			193
Other earning assets		2,038,515			1,750,385			1,667,906			860,540			722,917			1,820,293			588,787
Total earning assets		15,652,836			15,512,071			15,199,109			14,450,295			14,324,169			15,456,334			13,501,281
ACL LHFI		(104,857	)		(112,346	)		(119,557	)		(124,088	)		(121,842	)		(112,199	)		(103,355	)
Other assets		1,602,611			1,622,388			1,601,250			1,620,694			1,564,825			1,608,754			1,582,888
Total assets	$	17,150,590		$	17,022,113		$	16,680,802		$	15,946,901		$	15,767,152		$	16,952,889		$	14,980,814
Interest-bearing demand deposits	$	4,224,717		$	4,056,910		$	3,743,651		$	3,649,590		$	3,669,249		$	4,010,188		$	3,562,310
Savings deposits		4,617,683			4,627,180			4,659,037			4,350,783			4,416,046			4,634,482			4,082,396
Time deposits		1,258,829			1,301,896			1,371,830			1,436,677			1,507,348			1,310,438			1,567,577
Total interest-bearing deposits		10,101,229			9,985,986			9,774,518			9,437,050			9,592,643			9,955,108			9,212,283
Fed funds purchased and repurchases		147,635			174,620			166,909			170,474			84,077			162,984			145,537
Other borrowings		109,735			132,199			166,926			173,525			167,262			136,077			120,197
Subordinated notes		122,951			122,897			122,875			42,828			—			122,908			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		10,543,406			10,477,558			10,293,084			9,885,733			9,905,838			10,438,933			9,539,873
Noninterest-bearing deposits		4,566,924			4,512,268			4,363,559			4,100,849			3,921,867			4,481,662			3,494,425
Other liabilities		257,956			251,582			264,808			235,284			244,544			258,090			279,517
Total liabilities		15,368,286			15,241,408			14,921,451			14,221,866			14,072,249			15,178,685			13,313,815
Shareholders' equity		1,782,304			1,780,705			1,759,351			1,725,035			1,694,903			1,774,204			1,666,999
Total liabilities and equity	$	17,150,590		$	17,022,113		$	16,680,802		$	15,946,901		$	15,767,152		$	16,952,889		$	14,980,814

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2021
($ in thousands)
(unaudited)
PERIOD END BALANCES	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Cash and due from banks	$	2,175,058		$	2,267,224		$	1,774,541		$	1,952,504		$	564,588
Fed funds sold and reverse repurchases		—			—			—			50			50
Securities available for sale		3,057,605			2,548,739			2,337,676			1,991,815			1,922,728
Securities held to maturity		394,905			433,012			493,738			538,072			611,280
PPP loans		46,486			166,119			679,725			610,134			944,270
LHFS		335,339			332,132			412,999			446,951			485,103
LHFI		10,174,899			10,152,869			9,983,704			9,824,524			9,847,728
ACL LHFI		(104,073	)		(104,032	)		(109,191	)		(117,306	)		(122,010	)
Net LHFI		10,070,826			10,048,837			9,874,513			9,707,218			9,725,718
Premises and equipment, net		201,937			200,970			199,098			194,278			192,722
Mortgage servicing rights		84,101			80,764			83,035			66,464			61,613
Goodwill		384,237			384,237			384,237			385,270			385,270
Identifiable intangible assets		5,621			6,170			6,724			7,390			8,142
Other real estate		6,213			9,439			10,651			11,651			16,248
Operating lease right-of-use assets		34,689			33,201			33,704			30,901			30,508
Other assets		567,627			587,288			587,672			609,142			609,922
Total assets	$	17,364,644		$	17,098,132		$	16,878,313		$	16,551,840		$	15,558,162
Deposits:
Noninterest-bearing	$	4,987,885		$	4,446,991		$	4,705,991		$	4,349,010		$	3,964,023
Interest-bearing		9,934,954			10,185,093			9,677,449			9,699,754			9,258,390
Total deposits		14,922,839			14,632,084			14,383,440			14,048,764			13,222,413
Fed funds purchased and repurchases		146,417			157,176			160,991			164,519			153,834
Other borrowings		94,889			117,223			145,994			168,252			178,599
Subordinated notes		122,987			122,932			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		32,684			33,733			29,205			38,572			39,659
Operating lease liabilities		36,531			34,959			35,389			32,290			31,838
Other liabilities		177,494			158,860			178,856			173,549			159,922
Total liabilities		15,595,697			15,318,823			15,118,608			14,810,723			13,848,121
Common stock		13,014			13,079			13,209			13,215			13,215
Capital surplus		201,837			210,420			229,892			233,120			231,836
Retained earnings		1,573,176			1,566,451			1,533,110			1,495,833			1,459,306
Accumulated other comprehensive income (loss),<br><br><br>net of tax		(19,080	)		(10,641	)		(16,506	)		(1,051	)		5,684
Total shareholders' equity		1,768,947			1,779,309			1,759,705			1,741,117			1,710,041
Total liabilities and equity	$	17,364,644		$	17,098,132		$	16,878,313		$	16,551,840		$	15,558,162

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2021
($ in thousands except per share data)
(unaudited)
	Quarter Ended															Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
INCOME STATEMENTS	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Interest and fees on LHFS & LHFI-FTE	$	94,101		$	93,698		$	93,394		$	96,453		$	97,429		$	281,193		$	306,086
Interest and fees on PPP loans		1,533			25,555			9,241			14,870			6,729			36,329			11,773
Interest on securities-taxable		9,973			8,991			8,938			9,998			12,542			27,902			38,252
Interest on securities-tax exempt-FTE		132			149			290			293			301			571			1,073
Interest on fed funds sold and reverse repurchases		—			—			—			—			1			—			1
Other interest income		949			489			503			249			331			1,941			1,310
Total interest income-FTE		106,688			128,882			112,366			121,863			117,333			347,936			358,495
Interest on deposits		3,691			4,630			5,223			6,363			7,437			13,544			31,124
Interest on fed funds purchased and repurchases		51			59			56			56			32			166			699
Other interest expense		1,733			1,813			1,857			1,127			688			5,403			2,429
Total interest expense		5,475			6,502			7,136			7,546			8,157			19,113			34,252
Net interest income-FTE		101,213			122,380			105,230			114,317			109,176			328,823			324,243
Provision for credit losses, LHFI		(2,492	)		(3,991	)		(10,501	)		(4,413	)		1,760			(16,984	)		40,526
Provision for credit losses, off-balance sheet credit<br><br><br>exposures (1)		(1,049	)		4,528			(9,367	)		(1,087	)		(3,004	)		(5,888	)		10,021
Net interest income after provision-FTE		104,754			121,843			125,098			119,817			110,420			351,695			273,696
Service charges on deposit accounts		8,911			7,613			7,356			8,283			7,577			23,880			24,006
Bank card and other fees		8,549			8,301			9,472			9,107			8,843			26,322			21,915
Mortgage banking, net		14,004			17,333			20,804			28,155			36,439			52,141			97,667
Insurance commissions		12,133			12,217			12,445			10,196			11,562			36,795			34,980
Wealth management		9,071			8,946			8,416			7,838			7,679			26,433			23,787
Other, net		1,481			2,001			2,090			2,538			1,601			5,572			6,121
Total noninterest income		54,149			56,411			60,583			66,117			73,701			171,143			208,476
Salaries and employee benefits		74,623			70,115			71,162			69,660			67,342			215,900			202,597
Services and fees		22,306			21,769			22,484			22,327			20,992			66,559			61,489
Net occupancy-premises		6,854			6,578			6,795			6,616			7,000			20,227			19,873
Equipment expense		5,941			5,567			6,244			6,213			5,828			17,752			17,064
Other real estate expense, net		1,357			1,511			324			(812	)		1,203			3,192			2,768
Other expense		18,519			13,139			14,539			15,890			14,598			46,197			42,616
Total noninterest expense		129,600			118,679			121,548			119,894			116,963			369,827			346,407
Income before income taxes and tax eq adj		29,303			59,575			64,133			66,040			67,158			153,011			135,765
Tax equivalent adjustment		2,947			2,957			2,894			2,939			2,969			8,798			9,084
Income before income taxes		26,356			56,618			61,239			63,101			64,189			144,213			126,681
Income taxes		5,156			8,637			9,277			11,884			9,749			23,070			17,873
Net income	$	21,200		$	47,981		$	51,962		$	51,217		$	54,440		$	121,143		$	108,808
Per share data
Earnings per share - basic	$	0.34		$	0.76		$	0.82		$	0.81		$	0.86		$	1.92		$	1.71
Earnings per share - diluted	$	0.34		$	0.76		$	0.82		$	0.81		$	0.86		$	1.92		$	1.71
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.69		$	0.69
Weighted average shares outstanding
Basic		62,521,684			63,214,593			63,395,911			63,424,219			63,422,692			63,040,860			63,531,478
Diluted		62,730,157			63,409,683			63,562,503			63,616,767			63,581,964			63,219,987			63,665,127
Period end shares outstanding		62,461,832			62,773,226			63,394,522			63,424,526			63,423,820			62,461,832			63,423,820
(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures.  Prior periods have been reclassified accordingly.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL  INFORMATION
September 30, 2021
($ in thousands)
(unaudited)
	Quarter Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
NONPERFORMING ASSETS (1)	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Nonaccrual LHFI
Alabama	$	9,223		$	8,952		$	9,161		$	9,221		$	3,860
Florida		381			467			607			572			617
Mississippi (2)		22,898			23,422			35,534			35,015			35,617
Tennessee (3)		10,356			10,751			12,451			12,572			13,041
Texas		23,382			7,856			5,761			5,748			721
Total nonaccrual LHFI		66,240			51,448			63,514			63,128			53,856
Other real estate
Alabama		613			2,830			3,085			3,271			3,725
Florida		—			—			—			—			3,665
Mississippi (2)		5,600			6,550			7,566			8,330			8,718
Tennessee (3)		—			59			—			50			140
Texas		—			—			—			—			—
Total other real estate		6,213			9,439			10,651			11,651			16,248
Total nonperforming assets	$	72,453		$	60,887		$	74,165		$	74,779		$	70,104
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	625		$	423		$	2,593		$	1,576		$	782
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	75,091		$	81,538		$	109,566		$	119,409		$	121,281
	Quarter Ended															Nine Months Ended
ACL LHFI (1)	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Beginning Balance	$	104,032		$	109,191		$	117,306		$	122,010		$	119,188		$	117,306		$	84,277
CECL adoption adjustments:
LHFI		—			—			—			—			—			—			(3,039	)
Acquired loan transfers		—			—			—			—			—			—			1,822
Provision for credit losses, LHFI		(2,492	)		(3,991	)		(10,501	)		(4,413	)		1,760			(16,984	)		40,526
Charge-offs		(1,586	)		(4,828	)		(1,245	)		(2,797	)		(1,263	)		(7,659	)		(8,678	)
Recoveries		4,119			3,660			3,631			2,506			2,325			11,410			7,102
Net (charge-offs) recoveries		2,533			(1,168	)		2,386			(291	)		1,062			3,751			(1,576	)
Ending Balance	$	104,073		$	104,032		$	109,191		$	117,306		$	122,010		$	104,073		$	122,010
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	247		$	203		$	102		$	(1,011	)	$	117		$	552		$	(437	)
Florida		356			167			30			66			387			553			324
Mississippi (2)		1,436			(3,071	)		2,207			332			442			572			482
Tennessee (3)		(8	)		1,031			47			303			42			1,070			(2,078	)
Texas		502			502			—			19			74			1,004			133
Total net (charge-offs) recoveries	$	2,533		$	(1,168	)	$	2,386		$	(291	)	$	1,062		$	3,751		$	(1,576	)
(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
September 30, 2021
(unaudited)
	Quarter Ended															Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
FINANCIAL RATIOS AND OTHER DATA	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Return on average equity		4.72	%		10.81	%		11.98	%		11.81	%		12.78	%		9.13	%		8.72	%
Return on average tangible equity		6.16	%		13.96	%		15.56	%		15.47	%		16.82	%		11.84	%		11.57	%
Return on average assets		0.49	%		1.13	%		1.26	%		1.28	%		1.37	%		0.96	%		0.97	%
Interest margin - Yield - FTE		2.70	%		3.33	%		3.00	%		3.35	%		3.26	%		3.01	%		3.55	%
Interest margin - Cost		0.14	%		0.17	%		0.19	%		0.21	%		0.23	%		0.17	%		0.34	%
Net interest margin - FTE		2.57	%		3.16	%		2.81	%		3.15	%		3.03	%		2.84	%		3.21	%
Efficiency ratio (1)		74.10	%		64.31	%		71.84	%		65.59	%		62.19	%		69.85	%		62.59	%
Full-time equivalent employees		2,680			2,772			2,793			2,797			2,807
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		-0.10	%		0.05	%		-0.09	%		0.01	%		-0.04	%		-0.05	%		0.02	%
Provision for credit losses, LHFI / average loans		-0.10	%		-0.16	%		-0.41	%		-0.17	%		0.07	%		-0.22	%		0.55	%
Nonaccrual LHFI / (LHFI + LHFS)		0.63	%		0.49	%		0.61	%		0.61	%		0.52	%
Nonperforming assets / (LHFI + LHFS)		0.69	%		0.58	%		0.71	%		0.73	%		0.68	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.69	%		0.58	%		0.71	%		0.73	%		0.68	%
ACL LHFI / LHFI		1.02	%		1.02	%		1.09	%		1.19	%		1.24	%
ACL LHFI-commercial / commercial LHFI		1.05	%		1.04	%		1.13	%		1.20	%		1.20	%
ACL LHFI-consumer / consumer and home mortgage LHFI		0.91	%		0.98	%		0.95	%		1.16	%		1.41	%
ACL LHFI / nonaccrual LHFI		157.11	%		202.21	%		171.92	%		185.82	%		226.55	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)		520.77	%		537.35	%		437.08	%		572.69	%		593.72	%
CAPITAL RATIOS
Total equity / total assets		10.19	%		10.41	%		10.43	%		10.52	%		10.99	%
Tangible equity / tangible assets		8.12	%		8.31	%		8.30	%		8.34	%		8.68	%
Tangible equity / risk-weighted assets		11.19	%		11.33	%		11.23	%		11.22	%		11.01	%
Tier 1 leverage ratio		8.92	%		9.00	%		9.11	%		9.33	%		9.20	%
Common equity tier 1 capital ratio		11.68	%		11.76	%		11.71	%		11.62	%		11.36	%
Tier 1 risk-based capital ratio		12.17	%		12.25	%		12.20	%		12.11	%		11.86	%
Total risk-based capital ratio		14.01	%		14.10	%		14.07	%		14.12	%		12.88	%
STOCK PERFORMANCE
Market value-Close	$	32.22		$	30.80		$	33.66		$	27.31		$	21.41
Book value	$	28.32		$	28.35		$	27.76		$	27.45		$	26.96
Tangible book value	$	22.08		$	22.13		$	21.59		$	21.26		$	20.76
(1)  See Note 10 – 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
September 30, 2021
($ in thousands)
(unaudited)

Note 1 – Regulatory Matters

On October 22, 2021, Trustmark Corporation’s subsidiary, Trustmark National  Bank  (“TNB”), issued a press release announcing that it entered into a consent order with the Office of the Comptroller of the Currency (“OCC”) and a separate consent order jointly with the U.S. Department of Justice (“DOJ”) and the Consumer Financial Protection Bureau (“CFPB”), to resolve allegations that TNB previously violated the Fair Housing Act (the “FHA”), the Equal Credit Opportunity Act (the “ECOA”) and the Consumer Financial Protection Act within the Memphis metropolitan statistical area (the “Memphis MSA”).

Under the DOJ and CFPB’s joint consent order, TNB will pay a civil money penalty totaling $5.0 million, of which $4.0 million will satisfy the OCC’s civil money penalty as set forth in the OCC’s consent order; the remaining $1.0 million will be paid to the CFPB.  The joint consent order also requires TNB, among other things, to implement a mutually agreed-upon Fair Lending Plan, invest $3.85 million over five years in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods, and devote a minimum of $400 thousand over five years toward community development partnership contributions and $200 thousand per year over five years toward advertising, community outreach, and credit repair and education in TNB’s Memphis lending area (defined in the consent order as consisting of Shelby County and Fayette County in Tennessee and DeSoto County in Mississippi). TNB will also open one new mortgage loan production office to serve the credit needs of residents in a majority-Black and Hispanic neighborhood in TNB’s Memphis lending area. In addition, TNB will continue to maintain its full-time Community Lending Manager position and its full-time Community Development Manager position, which are both focused on the Memphis MSA.

The joint consent order must be approved by the United States District Court for the Western District of Tennessee.

Note 2 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, TNB, to The Loan Source, Inc. (Loan Source), a firm with significant expertise in PPP loans. As a result of this transaction, Loan Source will assume responsibility for the servicing and forgiveness process for the loans it has acquired from Trustmark. This transaction will allow Trustmark to focus on more traditional lending efforts and increase its ability to provide customers with financial services in an improving economic environment.

Trustmark accelerated the recognition of unamortized PPP loan origination fees, net of cost, of approximately $18.6 million, in the second quarter of 2021 due to the sale of approximately $354.2 million in PPP loans. This revenue is substantially the same as Trustmark would expect to recognize upon the maturity or forgiveness of the PPP loans being sold in this transaction, and thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.

At September 30, 2021, Trustmark had PPP loans outstanding that totaled $46.5 million (net of $798 thousand of deferred fees and costs) under the CARES Act.  Due to the 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 Small Business Administration; 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:

	9/30/2021		6/30/2021		3/31/2021		12/31/2020		9/30/2020
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	278,615	$	30,025	$	—	$	—	$	—
U.S. Government agency obligations		14,979		16,023		17,349		18,041		19,011
Obligations of states and political subdivisions		5,734		5,807		5,798		5,835		8,315
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		43,860		48,445		52,406		56,862		62,156
Issued by FNMA and FHLMC		2,187,412		1,983,783		1,749,144		1,441,321		1,279,919
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		236,885		283,988		345,869		419,437		500,858
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		290,120		180,668		167,110		50,319		52,469
Total securities available for sale	$	3,057,605	$	2,548,739	$	2,337,676	$	1,991,815	$	1,922,728
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	10,683	$	12,994	$	26,554	$	26,584	$	31,605
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		5,912		6,249		7,268		7,598		8,244
Issued by FNMA and FHLMC		48,554		53,406		61,855		67,944		78,213
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		264,638		291,477		324,360		360,361		399,400
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		65,118		68,886		73,701		75,585		93,818
Total securities held to maturity	$	394,905	$	433,012	$	493,738	$	538,072	$	611,280

At September 30, 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 $6.8 million ($5.1 million, net of tax).

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ in thousands)
(unaudited)

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

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 98.5% 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	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Loans secured by real estate:
Construction, land development and other land loans	$	1,286,613		$	1,360,302		$	1,342,088		$	1,309,039		$	1,385,947
Secured by 1-4 family residential properties		1,891,292			1,810,396			1,742,782			1,741,132			1,775,400
Secured by nonfarm, nonresidential properties		2,924,953			2,819,662			2,799,195			2,709,026			2,707,627
Other real estate secured		986,163			1,078,622			1,135,005			1,065,964			887,792
Commercial and industrial loans		1,327,211			1,326,605			1,323,277			1,309,078			1,398,468
Consumer loans		157,963			153,519			153,267			161,174			160,960
State and other political subdivision loans		1,125,186			1,136,764			1,036,694			1,000,776			935,349
Other loans		475,518			466,999			451,396			528,335			596,185
LHFI		10,174,899			10,152,869			9,983,704			9,824,524			9,847,728
ACL LHFI		(104,073	)		(104,032	)		(109,191	)		(117,306	)		(122,010	)
Net LHFI	$	10,070,826		$	10,048,837		$	9,874,513		$	9,707,218		$	9,725,718

The following table presents the LHFI composition by region at September 30, 2021 and reflects each region’s diversified mix of loans:

	September 30, 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	$	1,286,613	$	554,207	$	45,335	$	374,064	$	38,583	$	274,424
Secured by 1-4 family residential properties		1,891,292		109,986		39,699		1,659,289		68,123		14,195
Secured by nonfarm, nonresidential properties		2,924,953		834,328		259,997		1,089,333		174,338		566,957
Other real estate secured		986,163		221,832		6,154		303,760		19,850		434,567
Commercial and industrial loans		1,327,211		230,698		23,678		597,197		276,876		198,762
Consumer loans		157,963		22,125		8,403		101,034		19,398		7,003
State and other political subdivision loans		1,125,186		101,679		54,619		734,853		37,408		196,627
Other loans		475,518		74,703		11,903		289,739		69,725		29,448
Loans	$	10,174,899	$	2,149,558	$	449,788	$	5,149,269	$	704,301	$	1,721,983
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	60,804	$	27,014	$	8,676	$	17,782	$	905	$	6,427
Development		124,213		48,692		612		46,452		13,016		15,441
Unimproved land		93,283		28,095		12,146		28,601		11,187		13,254
1-4 family construction		281,504		147,073		19,485		70,508		12,528		31,910
Other construction		726,809		303,333		4,416		210,721		947		207,392
Construction, land development and other land loans	$	1,286,613	$	554,207	$	45,335	$	374,064	$	38,583	$	274,424
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ in thousands)
(unaudited)

Note 4 – Loan Composition (continued)

	September 30, 2021
	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	$	384,940	$	155,375	$	32,778	$	105,444	$	18,285	$	73,058
Office		215,297		52,628		23,835		67,094		11,714		60,026
Hotel/motel		347,023		176,352		76,664		47,229		32,638		14,140
Mini-storage		130,853		22,757		2,227		76,790		632		28,447
Industrial		246,576		57,901		20,755		62,071		137		105,712
Health care		59,676		39,225		1,140		16,755		370		2,186
Convenience stores		23,047		8,010		683		3,627		1,194		9,533
Nursing homes/senior living		204,678		106,572		—		71,672		6,434		20,000
Other		76,742		16,021		7,388		31,370		10,939		11,024
Total non-owner occupied loans		1,688,832		634,841		165,470		482,052		82,343		324,126
Owner-occupied:
Office		167,713		37,485		42,334		49,810		9,794		28,290
Churches		96,810		19,892		6,089		48,537		9,352		12,940
Industrial warehouses		178,394		11,807		2,989		50,594		18,686		94,318
Health care		143,180		12,033		6,915		107,190		2,296		14,746
Convenience stores		141,490		16,155		13,945		68,325		489		42,576
Retail		75,640		13,214		13,577		20,040		12,035		16,774
Restaurants		56,892		3,750		4,545		31,612		13,585		3,400
Auto dealerships		56,403		6,358		261		25,240		24,544		—
Nursing homes/senior living		211,190		73,078		—		138,112		—		—
Other		108,409		5,715		3,872		67,821		1,214		29,787
Total owner-occupied loans		1,236,121		199,487		94,527		607,281		91,995		242,831
Loans secured by nonfarm, nonresidential properties	$	2,924,953	$	834,328	$	259,997	$	1,089,333	$	174,338	$	566,957

Note 5 – 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 September 30, 2021, the carrying amount of the Notes was $123.0 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.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ 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															Nine Months Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Securities – taxable		1.28	%		1.30	%		1.40	%		1.62	%		2.02	%		1.32	%		2.14	%
Securities – nontaxable		3.79	%		3.70	%		4.02	%		3.89	%		3.80	%		3.88	%		3.76	%
Securities – total		1.29	%		1.31	%		1.43	%		1.65	%		2.05	%		1.34	%		2.17	%
PPP loans		4.98	%		15.81	%		6.27	%		6.76	%		2.84	%		10.69	%		2.76	%
Loans - LHFI & LHFS		3.59	%		3.64	%		3.67	%		3.75	%		3.81	%		3.64	%		4.12	%
Loans - total		3.61	%		4.36	%		3.81	%		3.99	%		3.73	%		3.93	%		4.05	%
Fed funds sold & reverse repurchases		—			—			—			—			1.32	%		—			0.69	%
Other earning assets		0.18	%		0.11	%		0.12	%		0.12	%		0.18	%		0.14	%		0.30	%
Total earning assets		2.70	%		3.33	%		3.00	%		3.35	%		3.26	%		3.01	%		3.55	%
Interest-bearing deposits		0.14	%		0.19	%		0.22	%		0.27	%		0.31	%		0.18	%		0.45	%
Fed funds purchased & repurchases		0.14	%		0.14	%		0.14	%		0.13	%		0.15	%		0.14	%		0.64	%
Other borrowings		2.33	%		2.29	%		2.14	%		1.61	%		1.19	%		2.25	%		1.78	%
Total interest-bearing liabilities		0.21	%		0.25	%		0.28	%		0.30	%		0.33	%		0.24	%		0.48	%
Net interest margin		2.57	%		3.16	%		2.81	%		3.15	%		3.03	%		2.84	%		3.21	%
Net interest margin excluding PPP loans and the FRB balance		2.90	%		2.94	%		2.99	%		3.09	%		3.20	%		2.94	%		3.36	%

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 September 30, 2021 and June 30, 2021, the average FRB balance totaled $1.996 billion and $1.700 billion, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 2.90% for the third quarter of 2021, a decrease of 4 basis points when compared to the second quarter of 2021.  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 positive ineffectiveness of $144 thousand during the third quarter of 2021.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ in thousands)
(unaudited)

Note 7 – Mortgage Banking (continued)

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

	Quarter Ended															Nine Months Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Mortgage servicing income, net	$	6,406		$	6,318		$	6,181		$	6,227		$	5,742		$	18,905		$	17,454
Change in fair value-MSR from runoff		(5,283	)		(5,029	)		(5,103	)		(5,177	)		(4,590	)		(15,415	)		(11,411	)
Gain on sales of loans, net		12,737			14,778			19,456			28,014			34,472			46,971			82,889
Mortgage banking income before hedge ineffectiveness		13,860			16,067			20,534			29,064			35,624			50,461			88,932
Change in fair value-MSR from market changes		1,806			(4,465	)		13,696			951			60			11,037			(27,098	)
Change in fair value of derivatives		(1,662	)		5,731			(13,426	)		(1,860	)		755			(9,357	)		35,833
Net positive (negative) hedge ineffectiveness		144			1,266			270			(909	)		815			1,680			8,735
Mortgage banking, net	$	14,004		$	17,333		$	20,804		$	28,155		$	36,439		$	52,141		$	97,667

Note 8 – Salaries and Employee Benefit Plans

Early Retirement Program

In June 2021, Trustmark announced a voluntary early retirement program.  In general, associates who were eligible to participate had to be at least 60 years of age with five or more years of continuous service. The cost of this program is reflected in a one-time charge of approximately $5.7 million (salaries and benefits of $5.6 million and other miscellaneous expense of $89 thousand; or $0.07 per diluted share net of tax) in Trustmark’s third quarter of 2021 earnings. The salary and employee benefits expense savings resulting from the implementation of the early retirement program are expected to total approximately $1.3 million ($0.02 per diluted share net of tax) and $4.3 million ($0.05 per diluted share net of tax) for the remainder of 2021 and for the year ended 2022, respectively.

Note 9 – Other Noninterest Income and Expense

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

	Quarter Ended															Nine Months Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Partnership amortization for tax credit purposes	$	(2,045	)	$	(1,989	)	$	(1,522	)	$	(1,877	)	$	(1,457	)	$	(5,556	)	$	(3,823	)
Increase in life insurance cash surrender value		1,663			1,653			1,639			1,708			1,755			4,955			5,173
Other miscellaneous income		1,863			2,337			1,973			2,707			1,303			6,173			4,771
Total other, net	$	1,481		$	2,001		$	2,090		$	2,538		$	1,601		$	5,572		$	6,121

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										Nine Months Ended
	9/30/2021		6/30/2021		3/31/2021		12/31/2020		9/30/2020		9/30/2021		9/30/2020
Loan expense	$	4,022	$	3,738	$	4,167	$	4,243	$	4,184	$	11,927	$	10,934
Amortization of intangibles		549		553		666		752		752		1,768		2,300
FDIC assessment expense		1,275		1,225		1,540		1,500		1,410		4,040		4,590
Regulatory settlement charge		5,000		—		—		—		—		5,000		—
Other miscellaneous expense		7,673		7,623		8,166		9,395		8,252		23,462		24,792
Total other expense	$	18,519	$	13,139	$	14,539	$	15,890	$	14,598	$	46,197	$	42,616

During the third quarter of 2021, other expense included a charge of $5.0 million to resolve allegations by regulatory authorities regarding fair lending matters.  See Note 1 – Regulatory Matters for further details.

TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ in thousands)
(unaudited)

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
September 30, 2021
($ in thousands except per share data)
(unaudited)

Note 10 – Non-GAAP Financial Measures (continued)

		Quarter Ended															Nine Months Ended
		9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,782,304		$	1,780,705		$	1,759,351		$	1,725,035		$	1,694,903		$	1,774,204		$	1,666,999
Less:  Goodwill			(384,237	)		(384,237	)		(385,155	)		(385,270	)		(385,270	)		(384,540	)		(383,016	)
Identifiable intangible assets			(5,899	)		(6,442	)		(7,118	)		(7,803	)		(8,550	)		(6,482	)		(8,146	)
Total average tangible equity		$	1,392,168		$	1,390,026		$	1,367,078		$	1,331,962		$	1,301,083		$	1,383,182		$	1,275,837
PERIOD END BALANCES
Total shareholders' equity		$	1,768,947		$	1,779,309		$	1,759,705		$	1,741,117		$	1,710,041
Less:  Goodwill			(384,237	)		(384,237	)		(384,237	)		(385,270	)		(385,270	)
Identifiable intangible assets			(5,621	)		(6,170	)		(6,724	)		(7,390	)		(8,142	)
Total tangible equity	(a)	$	1,379,089		$	1,388,902		$	1,368,744		$	1,348,457		$	1,316,629
TANGIBLE ASSETS
Total assets		$	17,364,644		$	17,098,132		$	16,878,313		$	16,551,840		$	15,558,162
Less:  Goodwill			(384,237	)		(384,237	)		(384,237	)		(385,270	)		(385,270	)
Identifiable intangible assets			(5,621	)		(6,170	)		(6,724	)		(7,390	)		(8,142	)
Total tangible assets	(b)	$	16,974,786		$	16,707,725		$	16,487,352		$	16,159,180		$	15,164,750
Risk-weighted assets	(c)	$	12,324,254		$	12,256,492		$	12,188,988		$	12,017,378		$	11,963,269
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	21,200		$	47,981		$	51,962		$	51,217		$	54,440		$	121,143		$	108,808
Plus: Intangible amortization net of tax			412			415			500			564			564			1,327			1,725
Net income adjusted for intangible amortization		$	21,612		$	48,396		$	52,462		$	51,781		$	55,004		$	122,470		$	110,533
Period end common shares outstanding	(d)		62,461,832			62,773,226			63,394,522			63,424,526			63,423,820
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			6.16	%		13.96	%		15.56	%		15.47	%		16.82	%		11.84	%		11.57	%
Tangible equity/tangible assets	(a)/(b)		8.12	%		8.31	%		8.30	%		8.34	%		8.68	%
Tangible equity/risk-weighted assets	(a)/(c)		11.19	%		11.33	%		11.23	%		11.22	%		11.01	%
Tangible book value	(a)/(d)*1,000	$	22.08		$	22.13		$	21.59		$	21.26		$	20.76
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,768,947		$	1,779,309		$	1,759,705		$	1,741,117		$	1,710,041
CECL transition adjustment			26,419			26,671			26,829			31,199			32,647
AOCI-related adjustments			19,080			10,641			16,506			1,051			(5,684	)
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(370,264	)		(370,276	)		(370,288	)		(371,333	)		(371,345	)
Other adjustments and deductions for CET1 (2)			(4,817	)		(5,243	)		(5,675	)		(6,190	)		(6,770	)
CET1 capital	(e)		1,439,365			1,441,102			1,427,077			1,395,844			1,358,889
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,499,365		$	1,501,102		$	1,487,077		$	1,455,844		$	1,418,889
Common equity tier 1 capital ratio	(e)/(c)		11.68	%		11.76	%		11.71	%		11.62	%		11.36	%
(1)	Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
---	---
(2)	Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.
---	---
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ 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											Nine Months Ended
			9/30/2021			6/30/2021		3/31/2021		12/31/2020		9/30/2020		9/30/2021			9/30/2020
Net interest income (GAAP)			$	98,266		$	119,423	$	102,336	$	111,378	$	106,207	$	320,025		$	315,159
Noninterest income (GAAP)				54,149			56,411		60,583		66,117		73,701		171,143			208,476
Pre-provision revenue		(a)	$	152,415		$	175,834	$	162,919	$	177,495	$	179,908	$	491,168		$	523,635
Noninterest expense (GAAP)			$	129,600		$	118,679	$	121,548	$	119,894	$	116,963	$	369,827		$	346,407
Less:	Voluntary early retirement program			(5,700	)		—		—		—		—		(5,700	)		(4,375	)
	Regulatory settlement charge			(5,000	)		—		—		—		—		(5,000	)		—
Adjusted noninterest expense - PPNR (Non-GAAP)		(b)	$	118,900		$	118,679	$	121,548	$	119,894	$	116,963	$	359,127		$	342,032
PPNR (Non-GAAP)		(a)-(b)	$	33,515		$	57,155	$	41,371	$	57,601	$	62,945	$	132,041		$	181,603

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											Nine Months Ended
	9/30/2021						9/30/2020					9/30/2021						9/30/2020
	Amount			Diluted EPS			Amount			Diluted EPS		Amount			Diluted EPS			Amount			Diluted EPS
Net income (GAAP)	$	21,200		$	0.34		$	54,440		$	0.86	$	121,143		$	1.92		$	108,808		$	1.71
Significant non-routine transactions (net of taxes):
Voluntary early retirement program		4,275			0.07			—			—		4,275			0.07			3,281			0.05
Regulatory settlement charge (not tax deductible)		5,000			0.08			—			—		5,000			0.08			—			—
Net income adjusted for significant non-routine<br><br><br>transactions (Non-GAAP)	$	30,475		$	0.49		$	54,440		$	0.86	$	130,418		$	2.07		$	112,089		$	1.76
	Reported (GAAP)			Adjusted               (Non-GAAP)			Reported (GAAP)			Adjusted               (Non-GAAP)		Reported (GAAP)			Adjusted               (Non-GAAP)			Reported (GAAP)			Adjusted               (Non-GAAP)
Return on average equity		4.72	%		6.77	%		12.78	%	n/a			9.13	%		9.82	%		8.72	%		8.97	%
Return on average tangible equity		6.16	%		8.77	%		16.82	%	n/a			11.84	%		12.72	%		11.57	%		11.89	%
Return on average assets		0.49	%		0.71	%		1.37	%	n/a			0.96	%		1.03	%		0.97	%		1.00	%
n/a - not applicable
TRUSTMARK CORPORATION AND SUBSIDIARIES
---
NOTES TO CONSOLIDATED FINANCIALS
September 30, 2021
($ 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															Nine Months Ended
			9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Total noninterest expense (GAAP)			$	129,600		$	118,679		$	121,548		$	119,894		$	116,963			369,827		$	346,407
Less:	Other real estate expense, net			(1,357	)		(1,511	)		(324	)		812			(1,203	)		(3,192	)		(2,768	)
	Amortization of intangibles			(549	)		(553	)		(666	)		(752	)		(752	)		(1,768	)		(2,300	)
	Charitable contributions resulting in state tax credits			(350	)		(355	)		(350	)		(375	)		(375	)		(1,055	)		(1,125	)
	Voluntary early retirement program			(5,700	)		—			—			—			—			(5,700	)		(4,375	)
	Regulatory settlement charge			(5,000	)		—			—			—			—			(5,000	)		—
Adjusted noninterest expense (Non-GAAP)		(c)	$	116,644		$	116,260		$	120,208		$	119,579		$	114,633		$	353,112		$	335,839
Net interest income (GAAP)			$	98,266		$	119,423		$	102,336		$	111,378		$	106,207		$	320,025		$	315,159
Add:	Tax equivalent adjustment			2,947			2,957			2,894			2,939			2,969			8,798			9,084
Net interest income-FTE (Non-GAAP)		(a)	$	101,213		$	122,380		$	105,230		$	114,317		$	109,176		$	328,823		$	324,243
Noninterest income (GAAP)			$	54,149		$	56,411		$	60,583		$	66,117		$	73,701		$	171,143		$	208,476
Add:	Partnership amortization for tax credit purposes			2,045			1,989			1,522			1,877			1,457			5,556			3,823
Adjusted noninterest income (Non-GAAP)		(b)	$	56,194		$	58,400		$	62,105		$	67,994		$	75,158		$	176,699		$	212,299
Adjusted revenue (Non-GAAP)		(a)+(b)	$	157,407		$	180,780		$	167,335		$	182,311		$	184,334		$	505,522		$	536,542
Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		74.10	%		64.31	%		71.84	%		65.59	%		62.19	%		69.85	%		62.59	%

Third Quarter 2021 Financial Results October 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 System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise. Forward–Looking Statements 2

Expense Management Financial Highlights Performance reflects continued balance sheet growth, strong credit quality and disciplined expense management Source: Company reports (1) For Non-GAAP measures, please refer to the Earnings Release dated October 26, 2021 and the Consolidated Financial Information, Note 10 – Non-GAAP Financial Measures 3 Voluntary early retirement program reduced net income by $4.3 million, or approximately $0.07 per diluted share; anticipate pre-tax savings of approximately $1.3 million for the remainder of 2021 and $4.3 million in 2022 Charge to resolve allegations by regulatory authorities regarding fair lending matters reduced net income by $5.0 million, or approximately $0.08 per diluted share Collectively, these items reduced net income by $9.3 million, or approximately $0.15 per diluted share Earnings Drivers Loans Held for Investment (HFI) increased $22.0 million, or 0.2%, linked-quarter and $327.2 million, or 3.3%, year-over-year Deposits increased $290.8 million, or 2.0%, linked-quarter and $1.7 billion, or 12.9%, year-over-year Investment securities increased $470.8 million linked-quarter as excess liquidity was deployed Net interest income (FTE), excluding interest and fees on PPP loans, increased $2.9 million, or 2.9%, linked-quarter Noninterest income totaled $54.1 million, representing 35.5% of total revenue

Profitable Revenue Generation Adjusted noninterest expense(1) totaled $116.6 million in the third quarter, a 0.3% increase from the prior quarter Recoveries exceeded charge-offs by $2.5 million in the third quarter Provision for credit losses, net totaled a negative $3.5 million for the quarter Loans remaining under a COVID-19 related concession represented approximately 20 basis points of loans HFI at September 30, 2021 Credit Quality Maintained strong capital levels with CET1 ratio of 11.68% and total risk-based capital ratio of 14.01% Repurchased $9.7 million, or approximately 319 thousand shares of common stock in the third quarter; at September 30, 2021, had $65.4 million remaining authority under 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. 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 $316 million with outstanding balances of $101 million – representing 0.99% of total LHFI – at September 30, 2021

At September 30, 2021, nonaccrual energy-related loans represented 1.34% of outstanding energy-related loans and 1 basis point of outstanding LHFI Dollar Change: $22 $(23) $159 $169 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 ($4.9 million)

Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 12%

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

Virtually no regulatory defined higher risk commercial and industrial outstanding ($10.3 million)

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

COVID-19 Impacted Industries 7 At September 30, 2021

Third Quarter Portfolio Review 8 During the third quarter, Trustmark conducted an analysis of borrowers with outstanding balances of $1 million or more in the COVID impacted industries as well as borrowers in other selected categories primarily of nursing homes and senior living facilities, health care facilities, and churches. Collectively, the review included borrowers with $1.7 billion in outstanding balances at September 30, 2021.

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

As a result of the review, no credits were downgraded to a criticized category. A total of $20 million was removed from criticism which 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 Totals may not foot due to rounding 9 ($ in millions) Quantitative changes due to improvement of the macroeconomic forecast and PD/LGD floors Qualitative changes including reduction of the impact of the COVID-19 pandemic reserve All other changes including individually analyzed reserves, prepayment studies, loan growth, etc. ACL 06/30/21 ACL 09/30/21

Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 1.02% of loans held for investment and 520.77% of nonaccrual loans, excluding individually evaluated loans Recoveries exceeded charge-offs by $2.5 million in the third quarter Other Real Estate totaled $6.2 million, a $3.2 million decrease from the prior quarter and a $10.0 million decrease year-over-year Nonperforming assets increased $11.6 million from the prior quarter and $2.3 million year-over-year Source: Company reports Note: Unless noted otherwise, credit metrics exclude PPP loans (1) Totals may not foot due to rounding (2) NPLs excludes individually evaluated loans 10

Paycheck Protection Program (PPP) Source: Company reports

11

Attractive, Low-Cost Deposit Base Deposits totaled $14.9 billion at September 30, 2021, up $290.8 million, or 2.0%, linked-quarter, and up $1.7 billion, or 12.9%, year-over-year

Cost of interest-bearing deposits in the third quarter totaled 0.14%, down 5 basis points from the prior quarter Source: Company reports (1) Numbers and/or percentages may not foot due to rounding. (2) Above does not include the daily sweep between low transaction interest checking to savings for regulatory purposes. 12 $14,668

Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $101.2 million, resulting in a net interest margin of 2.57% in the third quarter

The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.90% in the third quarter, a 4 basis point decrease from the prior quarter

Source: Company reports (1) Totals may not foot due to rounding (2) Loan Yield includes LHFI & LHFS 13 Asset Rate/Volume Liability Rate/Volume # of Days in Quarter PPP Net Interest Margin

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

Noninterest income totaled $54.1 million for the third quarter, a decrease of $2.3 million linked-quarter and $19.6 million year-over-year. The linked-quarter and year-over-year changes are principally attributable to lower mortgage banking revenue.

Service charges on deposits accounts increased $1.3 million from the prior quarter and year-over-year.

Wealth management revenue for the third quarter totaled $9.1 million, an increase of $125 thousand linked-quarter and $1.4 million year-over-year.

Insurance revenue totaled $12.1 million, a $84 thousand decrease from the prior quarter and a $571 thousand increase from the previous year due in part to increased property and casualty commissions.

14 (1)

Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding (2) Production includes Loans Available for Sale (AFS) and Portfolio (3) Gain on Sale Margin excludes FAS 133 (Pipeline valuation adjustment)

Mortgage banking revenue totaled $14.0 million in the third quarter of 2021, a $3.3 million decrease linked-quarter and $22.4 million decrease year-over year.

Mortgage loan production in the third quarter totaled $708.8 million, a decrease of 3.8% from the prior quarter and 20.0% from the prior year.

Retail production represented 79% of volume, or $557.5 million, in the third quarter.

15 Gain on sale margin (3) Purchase 56% 58% 52% 71% 69% Refinance 44% 42% 48% 29% 31%

Noninterest expense totaled $129.6 million in the third quarter, which included a one-time, pre-tax expense charge of $5.7 million related to a voluntary early retirement program and $5.0 million in regulatory settlement expenses Adjusted noninterest expense(2) – totaled $116.6 million in the third quarter, a 0.3% increase linked-quarter Salaries and benefits decreased $1.1 linked-quarter excluding $5.6 million in charges related to the voluntary early retirement program, which are included in Other Expenses in the table above

Other Expenses in the table above also include $5.0 million in regulatory settlement expense

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 October 26, 2021 and the Consolidated Financial Information, Note 10 – Non-GAAP Financial Measures 16

Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.68% and a total risk-based capital ratio of 14.01% at September 30, 2021 Repurchased $9.7 million, or approximately 319 thousand shares of common stock in the third quarter. During the first nine months of 2021, Trustmark repurchased $34.6 million, or approximately 1.1 million of its common shares. At September 30, 2021, Trustmark had $65.4 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 December 15, 2021, to shareholders of record on December 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. 17

Outlook Commentary(1) Source: Company reports (1) See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. 18

Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 180 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.

19 Who We Are Strategic Priorities to Enhance Shareholder Value Our Footprint