Performance reflects improved earning asset mix, continued loan growth and solid credit quality

JACKSON, Miss.--(BUSINESS WIRE)-- Trustmark Corporation (NASDAQ: TRMK) reported net income of $33.9 million in the fourth quarter of 2019, representing diluted earnings per share of $0.53. Results in the fourth quarter reflect negative hedge ineffectiveness which reduced net income by $2.2 million, or $0.03 per share.

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For the full year, Trustmark’s net income totaled $150.5 million, representing diluted earnings per share of $2.32. Diluted earnings per share in 2019 increased 5.0% when compared to the prior year. Results for 2019 reflect negative hedge ineffectiveness which reduced net income by $8.6 million, or $0.13 per share. Trustmark’s net income in 2019 produced a return on average tangible equity of 12.45% and a return on average assets of 1.11%.

Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2020, to shareholders of record on March 1, 2020.

2019 Highlights

• Loans held for investment increased $499.8 million, or 5.7%, during the year
• Nonperforming assets declined 14.4%, and net charge-offs represented 0.06% of average loans in 2019
• Improved balance sheet positioning as securities and loans (excluding acquired loans) represented 20.5% and 76.7%, respectively, of average earning assets in 2019
• Net interest income (FTE), excluding acquired loans, totaled $431.1 million, an increase of 3.9% from the prior year
• Revenue, excluding acquired loans and negative hedge ineffectiveness, totaled $616.8 million, an increase of 5.5%

Gerard R. Host, President and CEO, stated, “We remained focused on our strategic initiatives this year, profitably increasing revenue across our financial services businesses, optimizing our balance sheet, deploying capital through share repurchases, and maintaining disciplined expense management. Looking ahead to 2020, Trustmark will continue to provide the financial services and advice our customers have come to expect. We remain committed to supporting investments to promote profitable revenue growth, reengineering processes to enhance operational efficiency, realigning delivery channels to support changing customer preferences and managing the franchise for the long-term.”

Balance Sheet Management

• Continued balance sheet and capital optimization through maturing investment securities run-off and share repurchases
• Loans held for investment increased $112.0 million from the prior quarter
• Cost of interest-bearing deposits declined 11 basis points during the quarter to 0.85%

Loans held for investment totaled $9.3 billion at December 31, 2019, reflecting an increase of 1.2% linked-quarter and 5.7% from the prior year. The linked-quarter growth reflects increases in construction and land development, residential mortgage, nonfarm, nonresidential and other real estate secured loans. Acquired loans totaled $72.6 million at December 31, 2019, down $8.4 million from the prior quarter and $34.3 million from the prior year. Collectively, loans held for investment and acquired loans totaled $9.4 billion at the end of the fourth quarter of 2019, up $103.6 million, or 1.1%, from the prior quarter and $465.4 million, or 5.2%, year-over-year.

Deposits totaled $11.2 billion at December 31, 2019, unchanged from the prior quarter and down $118.9 million, or 1.0%, year-over-year. Excluding public fund balances, deposits at December 31, 2019, were unchanged from the prior quarter and up $303.6 million, or 3.3% year-over-year. Interest-bearing deposit costs totaled 0.85% for the fourth quarter, a decrease of 11 basis points linked-quarter. Trustmark continues to maintain an attractive, low-cost deposit base with approximately 58% of deposit balances in checking accounts. The total cost of interest-bearing liabilities was 0.88% for the fourth quarter of 2019.

Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. At December 31, 2019, Trustmark’s tangible equity to tangible assets ratio was 9.72%, while the total risk-based capital ratio was 13.25%. During the fourth quarter, Trustmark repurchased $2.2 million, or approximately 64 thousand of its common shares in open market transactions. Trustmark repurchased $56.6 million, or approximately 1.8 million of its common shares in 2019. At December 31, 2019, Trustmark had $80.3 million in remaining authority under its existing stock repurchase program, which expires March 31, 2020.

Today, the Board of Directors authorized a new stock repurchase program, effective April 1, 2020, under which $100 million of Trustmark’s outstanding shares may be acquired through December 31, 2021. The shares may be purchased from time to time at prevailing market prices, through open market or private transactions, depending on market conditions. There is no guarantee as to the number of shares that may be repurchased by Trustmark, and Trustmark may discontinue purchases at any time at management’s discretion.

Credit Quality

• Nonperforming loans decreased 9.8% and 13.6% from the prior quarter and year-over-year, respectively
• Other real estate declined 8.5% from the prior quarter and 15.6% year-over-year
• Allowance for loan losses represented 410.52% of nonperforming loans, excluding specifically reviewed impaired loans

Nonperforming loans totaled $53.2 million at December 31, 2019, down $5.8 million from the prior quarter and $8.4 million year-over-year. Other real estate totaled $29.2 million, reflecting a $2.7 million decrease from the prior quarter and down $5.4 million from the prior year. Collectively, nonperforming assets totaled $82.5 million, reflecting a linked-quarter decrease of 9.4% and a year-over-year decrease of 14.4%.

Allocation of Trustmark's $84.3 million allowance for loan losses represented 0.98% of commercial loans and 0.61% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 0.90% at December 31, 2019, representing a level management considers commensurate with the present risk in the loan portfolio.

Unless otherwise noted, all of the above credit quality metrics exclude acquired loans.

Revenue Generation

• Noninterest income before negative hedge ineffectiveness totaled $198.6 million in 2019, an increase of $16.1 million, or 8.8%, from the prior year
• Net interest income (FTE), excluding acquired loans, totaled $431.1 million in 2019, an increase of 3.9% from the prior year
• The net interest margin (FTE), excluding acquired loans, was 3.58% in 2019, compared to 3.46% in 2018

Revenue in the fourth quarter totaled $153.2 million, down 2.3% from the prior quarter and up 3.0% from the same quarter in the prior year. The linked-quarter decline reflects lower interest income as well as a seasonal reduction in noninterest income. Net interest income (FTE) in the fourth quarter totaled $108.7 million, resulting in a net interest margin of 3.56%. Relative to the prior quarter, net interest income (FTE) decreased $3.0 million as a reduction in interest expense was more than offset by a decline in total interest income. During the fourth quarter of 2019, the yield on acquired loans totaled 10.90% and included $661 thousand in recoveries from the settlement of debt, which represented approximately 3.37% of the annualized total acquired loan yield. Excluding acquired loans, the net interest margin decreased to 3.52% in the fourth quarter of 2019, compared to 3.61% in the prior quarter. The decrease was primarily due to a decline in the yield on the loans held for investment and held for sale portfolio which was partially offset by runoff of maturing investment securities and lower cost of interest-bearing deposits. Net interest income (FTE) in 2019 totaled $439.5 million, resulting in a net interest margin (FTE) of 3.62%; excluding acquired loans, the net interest margin (FTE) was 3.58%.

Noninterest income in the fourth quarter totaled $47.6 million, a decrease of $759 thousand from the prior quarter and an increase of $4.0 million compared to the same quarter in the prior year. The linked-quarter decrease primarily reflects a seasonal decline in insurance commissions. In the fourth quarter, bank card and other fees decreased 1.9% from the prior quarter, and service charges on deposit accounts decreased 1.5%. Other income, net totaled $3.5 million in the fourth quarter, up $1.5 million linked-quarter due to an increase in other miscellaneous income.

Insurance revenue in the fourth quarter totaled $9.4 million, down $1.7 million from the third quarter and $198 thousand from the same quarter in the prior year. The linked-quarter decrease is due to a seasonal decline in commissions. Insurance revenue in 2019 totaled $42.4 million, up 4.7%, or $1.9 million, from the prior year. The solid performance in 2019 reflects improved sales management practices, producer development, and realization of operational efficiencies resulting from investments in technology and processes.

Wealth management revenue totaled $7.8 million in the fourth quarter, in line with the prior quarter and up 3.5% year-over-year. The increase is primarily attributable to higher trust management fees. For the year, wealth management revenue totaled $30.7 million, up 1.1% from the prior year. Trustmark added capabilities and personnel in its Private Banking Group and completed internal reorganizations in 2019 to enhance the competitive positioning of the wealth management segment and streamline business functions.

Mortgage loan production in the fourth quarter totaled $498.5 million, a seasonal decline of 11.9% from the prior quarter and a 64.2% increase year-over-year, partially due to higher refinancing activity and lower interest rates. Mortgage banking income before negative hedge ineffectiveness totaled $10.9 million in the fourth quarter, a decline of $1.0 million from the prior quarter. In 2019, mortgage loan production totaled $1.76 billion, up 25.8% from the prior year. Mortgage banking income before negative hedge ineffectiveness totaled $41.3 million in 2019, an increase of $9.1 million, or 28.1%, from the prior year.

Noninterest Expense

• Core noninterest expense, which excludes other real estate expense, net and intangible amortization, totaled $107.5 million, up 2.1% from the prior quarter
• Effective corporate tax rate in 2019 was 13.4%
• Continued investments to enhance the customer experience and realign delivery channels to support changing customer preferences

Total noninterest expense for the fourth quarter was $110.0 million, up 3.0%, or $3.2 million, from the prior quarter. The increase is primarily due to a $2.1 million increase in other expense. Other expense in the third quarter included a $1.6 million recovery of litigation related expenses. Excluding the impact of this item, other expense increased 4.4%, or $539 thousand, and total noninterest expense increased 1.5%, or $1.6 million, in the fourth quarter. In 2019, noninterest expense totaled $429.0 million, up 3.3% from the prior year.

Core noninterest expense, which excludes other real estate expense, net ($1.5 million) and intangible amortization ($1.0 million), totaled $107.5 million in the fourth quarter, a 2.1% increase from the prior quarter. In 2019, core noninterest expense totaled $421.0 million, an increase of 3.1% from the prior year.

Salaries and employee benefits totaled $62.3 million in the fourth quarter, down $176 thousand from the prior quarter due to seasonally lower insurance commissions. Services and fees rose $662 thousand linked-quarter reflecting continued software investments designed to improve efficiency and customer experience as well as increased advertising expense and increased spending on outside services and fees. Other real estate expense, net increased $960 thousand linked-quarter.

Trustmark has grown and sustained business by understanding and serving its customer base, and in 2019 Trustmark made significant investments to support changing customer preferences and enhance the customer experience. During the year, Trustmark closed five branches and opened two branches featuring a new design that allows for integration of the myTeller® technology and offers more areas of engagement. Trustmark remains committed to investments that promote profitable revenue growth as well as reengineering and efficiency opportunities that enhance long-term shareholder value.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 29, 2020 at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 12, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10137727.

Trustmark is a financial services company providing banking and financial solutions through 193 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

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

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including potential market impacts of efforts by the Board of Governors of the Federal Reserve System (FRB) to reduce the size of its balance sheet, 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 as well as 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 relating 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, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission.

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

TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2019 ($ in thousands) (unaudited)
														Linked Quarter							Year over Year
QUARTERLY AVERAGE BALANCES		12/31/2019				9/30/2019				12/31/2018				$ Change				% Change			$ Change				% Change
Securities AFS-taxable		$	1,551,358			$	1,570,803			$	1,847,421			$	(19,445	)		-1.2	%		$	(296,063	)		-16.0	%
Securities AFS-nontaxable			23,300				25,096				38,821				(1,796	)		-7.2	%			(15,521	)		-40.0	%
Securities HTM-taxable			734,474				778,098				893,186				(43,624	)		-5.6	%			(158,712	)		-17.8	%
Securities HTM-nontaxable			25,703				26,088				29,143				(385	)		-1.5	%			(3,440	)		-11.8	%
Total securities			2,334,835				2,400,085				2,808,571				(65,250	)		-2.7	%			(473,736	)		-16.9	%
Loans (including loans held for sale)			9,467,437				9,436,287				8,933,501				31,150			0.3	%			533,936			6.0	%
Acquired loans			77,797				82,641				127,747				(4,844	)		-5.9	%			(49,950	)		-39.1	%
Fed funds sold and rev repos			184				3,662				843				(3,478	)		-95.0	%			(659	)		-78.2	%
Other earning assets			227,116				176,163				200,282				50,953			28.9	%			26,834			13.4	%
Total earning assets			12,107,369				12,098,838				12,070,944				8,531			0.1	%			36,425			0.3	%
Allowance for loan losses			(86,211	)			(83,756	)			(85,842	)			(2,455	)		-2.9	%			(369	)		-0.4	%
Other assets			1,445,075				1,447,977				1,362,831				(2,902	)		-0.2	%			82,244			6.0	%
Total assets		$	13,466,233			$	13,463,059			$	13,347,933			$	3,174			0.0	%		$	118,300			0.9	%
Interest-bearing demand deposits		$	3,167,256			$	3,085,758			$	2,722,841			$	81,498			2.6	%		$	444,415			16.3	%
Savings deposits			3,448,899				3,568,403				3,565,682				(119,504	)		-3.3	%			(116,783	)		-3.3	%
Time deposits			1,663,741				1,753,083				1,892,983				(89,342	)		-5.1	%			(229,242	)		-12.1	%
Total interest-bearing deposits			8,279,896				8,407,244				8,181,506				(127,348	)		-1.5	%			98,390			1.2	%
Fed funds purchased and repos			164,754				142,064				340,094				22,690			16.0	%			(175,340	)		-51.6	%
Other borrowings			79,512				78,404				90,252				1,108			1.4	%			(10,740	)		-11.9	%
Junior subordinated debt securities			61,856				61,856				61,856				—			0.0	%			—			0.0	%
Total interest-bearing liabilities			8,586,018				8,689,568				8,673,708				(103,550	)		-1.2	%			(87,690	)		-1.0	%
Noninterest-bearing deposits			3,017,824				2,932,754				2,862,161				85,070			2.9	%			155,663			5.4	%
Other liabilities			205,786				206,091				216,932				(305	)		-0.1	%			(11,146	)		-5.1	%
Total liabilities			11,809,628				11,828,413				11,752,801				(18,785	)		-0.2	%			56,827			0.5	%
Shareholders' equity			1,656,605				1,634,646				1,595,132				21,959			1.3	%			61,473			3.9	%
Total liabilities and equity		$	13,466,233			$	13,463,059			$	13,347,933			$	3,174			0.0	%		$	118,300			0.9	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands)
(unaudited)
														Linked Quarter							Year over Year
PERIOD END BALANCES		12/31/2019				9/30/2019				12/31/2018				$ Change				% Change			$ Change				% Change
Cash and due from banks		$	358,916			$	486,263			$	349,561			$	(127,347	)		-26.2	%		$	9,355			2.7	%
Fed funds sold and rev repos			—				—				830				—			n/m				(830	)		-100.0	%
Securities available for sale			1,602,404				1,553,705				1,811,813				48,699			3.1	%			(209,409	)		-11.6	%
Securities held to maturity			738,099				785,422				909,643				(47,323	)		-6.0	%			(171,544	)		-18.9	%
Loans held for sale (LHFS)			226,347				292,800				153,799				(66,453	)		-22.7	%			72,548			47.2	%
Loans held for investment (LHFI)			9,335,628				9,223,668				8,835,868				111,960			1.2	%			499,760			5.7	%
Allowance for loan losses, LHFI			(84,277	)			(83,226	)			(79,290	)			(1,051	)		-1.3	%			(4,987	)		-6.3	%
Net LHFI			9,251,351				9,140,442				8,756,578				110,909			1.2	%			494,773			5.7	%
Acquired loans			72,601				81,004				106,932				(8,403	)		-10.4	%			(34,331	)		-32.1	%
Allowance for loan losses, acquired loans			(815	)			(1,249	)			(1,231	)			434			34.7	%			416			33.8	%
Net acquired loans			71,786				79,755				105,701				(7,969	)		-10.0	%			(33,915	)		-32.1	%
Net LHFI and acquired loans			9,323,137				9,220,197				8,862,279				102,940			1.1	%			460,858			5.2	%
Premises and equipment, net			189,791				188,423				178,668				1,368			0.7	%			11,123			6.2	%
Mortgage servicing rights			79,394				73,016				95,596				6,378			8.7	%			(16,202	)		-16.9	%
Goodwill			379,627				379,627				379,627				—			0.0	%			—			0.0	%
Identifiable intangible assets			7,343				8,345				11,112				(1,002	)		-12.0	%			(3,769	)		-33.9	%
Other real estate			29,248				31,974				34,668				(2,726	)		-8.5	%			(5,420	)		-15.6	%
Operating lease right-of-use assets			31,182				33,180				—				(1,998	)		-6.0	%			31,182			n/m
Other assets			532,389				531,834				498,864				555			0.1	%			33,525			6.7	%
Total assets		$	13,497,877			$	13,584,786			$	13,286,460			$	(86,909	)		-0.6	%		$	211,417			1.6	%
Deposits:
Noninterest-bearing		$	2,891,215			$	3,064,127			$	2,937,594			$	(172,912	)		-5.6	%		$	(46,379	)		-1.6	%
Interest-bearing			8,354,342				8,190,056				8,426,817				164,286			2.0	%			(72,475	)		-0.9	%
Total deposits			11,245,557				11,254,183				11,364,411				(8,626	)		-0.1	%			(118,854	)		-1.0	%
Fed funds purchased and repos			256,020				376,712				50,471				(120,692	)		-32.0	%			205,549			n/m
Other borrowings			85,396				76,685				79,885				8,711			11.4	%			5,511			6.9	%
Junior subordinated debt securities			61,856				61,856				61,856				—			0.0	%			—			0.0	%
Operating lease liabilities			32,354				34,319				—				(1,965	)		-5.7	%			32,354			n/m
Other liabilities			155,992				135,669				138,384				20,323			15.0	%			17,608			12.7	%
Total liabilities			11,837,175				11,939,424				11,695,007				(102,249	)		-0.9	%			142,168			1.2	%
Common stock			13,376				13,390				13,717				(14	)		-0.1	%			(341	)		-2.5	%
Capital surplus			256,400				257,370				309,545				(970	)		-0.4	%			(53,145	)		-17.2	%
Retained earnings			1,414,526				1,395,460				1,323,870				19,066			1.4	%			90,656			6.8	%
Accum other comprehensive loss, net of tax			(23,600	)			(20,858	)			(55,679	)			(2,742	)		-13.1	%			32,079			57.6	%
Total shareholders' equity			1,660,702				1,645,362				1,591,453				15,340			0.9	%			69,249			4.4	%
Total liabilities and equity		$	13,497,877			$	13,584,786			$	13,286,460			$	(86,909	)		-0.6	%		$	211,417			1.6	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands except per share data)
(unaudited)
		Quarter Ended												Linked Quarter							Year over Year
INCOME STATEMENTS		12/31/2019				9/30/2019				12/31/2018				$ Change				% Change			$ Change				% Change
Interest and fees on LHFS & LHFI-FTE		$	111,383			$	116,432			$	107,709			$	(5,049	)		-4.3	%		$	3,674			3.4	%
Interest and fees on acquired loans			2,138				2,309				3,183				(171	)		-7.4	%			(1,045	)		-32.8	%
Interest on securities-taxable			12,884				13,184				15,496				(300	)		-2.3	%			(2,612	)		-16.9	%
Interest on securities-tax exempt-FTE			484				485				617				(1	)		-0.2	%			(133	)		-21.6	%
Interest on fed funds sold and rev repos			1				23				4				(22	)		-95.7	%			(3	)		-75.0	%
Other interest income			896				1,044				1,158				(148	)		-14.2	%			(262	)		-22.6	%
Total interest income-FTE			127,786				133,477				128,167				(5,691	)		-4.3	%			(381	)		-0.3	%
Interest on deposits			17,716				20,385				17,334				(2,669	)		-13.1	%			382			2.2	%
Interest on fed funds pch and repos			504				547				1,528				(43	)		-7.9	%			(1,024	)		-67.0	%
Other interest expense			826				830				894				(4	)		-0.5	%			(68	)		-7.6	%
Total interest expense			19,046				21,762				19,756				(2,716	)		-12.5	%			(710	)		-3.6	%
Net interest income-FTE			108,740				111,715				108,411				(2,975	)		-2.7	%			329			0.3	%
Provision for loan losses, LHFI			3,661				3,039				2,192				622			20.5	%			1,469			67.0	%
Provision for loan losses, acquired loans			(2	)			(140	)			(247	)			138			98.6	%			245			99.2	%
Net interest income after provision-FTE			105,081				108,816				106,466				(3,735	)		-3.4	%			(1,385	)		-1.3	%
Service charges on deposit accounts			10,894				11,065				11,123				(171	)		-1.5	%			(229	)		-2.1	%
Bank card and other fees			8,192				8,349				7,750				(157	)		-1.9	%			442			5.7	%
Mortgage banking, net			7,914				8,171				5,716				(257	)		-3.1	%			2,198			38.5	%
Insurance commissions			9,364				11,072				9,562				(1,708	)		-15.4	%			(198	)		-2.1	%
Wealth management			7,763				7,691				7,504				72			0.9	%			259			3.5	%
Other, net			3,451				1,989				1,904				1,462			73.5	%			1,547			81.3	%
Nonint inc-excl sec gains (losses), net			47,578				48,337				43,559				(759	)		-1.6	%			4,019			9.2	%
Security gains (losses), net			—				—				—				—			n/m				—			n/m
Total noninterest income			47,578				48,337				43,559				(759	)		-1.6	%			4,019			9.2	%
Salaries and employee benefits			62,319				62,495				58,736				(176	)		-0.3	%			3,583			6.1	%
Services and fees			19,500				18,838				17,910				662			3.5	%			1,590			8.9	%
Net occupancy-premises			6,461				6,831				6,741				(370	)		-5.4	%			(280	)		-4.2	%
Equipment expense			5,880				5,971				6,329				(91	)		-1.5	%			(449	)		-7.1	%
Other real estate expense, net			1,491				531				61				960			n/m				1,430			n/m
FDIC assessment expense			1,450				1,400				1,897				50			3.6	%			(447	)		-23.6	%
Other expense			12,926				10,787				12,253				2,139			19.8	%			673			5.5	%
Total noninterest expense			110,027				106,853				103,927				3,174			3.0	%			6,100			5.9	%
Income before income taxes and tax eq adj			42,632				50,300				46,098				(7,668	)		-15.2	%			(3,466	)		-7.5	%
Tax equivalent adjustment			3,149				3,249				3,231				(100	)		-3.1	%			(82	)		-2.5	%
Income before income taxes			39,483				47,051				42,867				(7,568	)		-16.1	%			(3,384	)		-7.9	%
Income taxes			5,537				6,016				6,179				(479	)		-8.0	%			(642	)		-10.4	%
Net income		$	33,946			$	41,035			$	36,688			$	(7,089	)		-17.3	%		$	(2,742	)		-7.5	%
Per share data
Earnings per share - basic		$	0.53			$	0.64			$	0.55			$	(0.11	)		-17.2	%		$	(0.02	)		-3.6	%
Earnings per share - diluted		$	0.53			$	0.64			$	0.55			$	(0.11	)		-17.2	%		$	(0.02	)		-3.6	%
Dividends per share		$	0.23			$	0.23			$	0.23				—			0.0	%			—			0.0	%
Weighted average shares outstanding
Basic			64,255,716				64,358,540				66,839,504
Diluted			64,435,276				64,514,605				67,028,978
Period end shares outstanding			64,200,111				64,262,779				65,834,395
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands)
(unaudited)
		Quarter Ended												Linked Quarter							Year over Year
NONPERFORMING ASSETS (1)		12/31/2019				9/30/2019				12/31/2018				$ Change				% Change			$ Change				% Change
Nonaccrual loans
Alabama		$	1,870			$	2,936			$	3,361			$	(1,066	)		-36.3	%		$	(1,491	)		-44.4	%
Florida			267				311				1,175				(44	)		-14.1	%			(908	)		-77.3	%
Mississippi (2)			41,493				43,895				44,331				(2,402	)		-5.5	%			(2,838	)		-6.4	%
Tennessee (3)			8,980				10,193				8,696				(1,213	)		-11.9	%			284			3.3	%
Texas			616				1,695				4,061				(1,079	)		-63.7	%			(3,445	)		-84.8	%
Total nonaccrual loans			53,226				59,030				61,624				(5,804	)		-9.8	%			(8,398	)		-13.6	%
Other real estate
Alabama			8,133				6,501				6,873				1,632			25.1	%			1,260			18.3	%
Florida			5,877				6,983				8,771				(1,106	)		-15.8	%			(2,894	)		-33.0	%
Mississippi (2)			14,919				17,646				17,255				(2,727	)		-15.5	%			(2,336	)		-13.5	%
Tennessee (3)			319				844				1,025				(525	)		-62.2	%			(706	)		-68.9	%
Texas			—				—				744				—			n/m				(744	)		-100.0	%
Total other real estate			29,248				31,974				34,668				(2,726	)		-8.5	%			(5,420	)		-15.6	%
Total nonperforming assets		$	82,474			$	91,004			$	96,292			$	(8,530	)		-9.4	%		$	(13,818	)		-14.4	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI		$	642			$	878			$	856			$	(236	)		-26.9	%		$	(214	)		-25.0	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)		$	41,648			$	36,445			$	37,384			$	5,203			14.3	%		$	4,264			11.4	%
		Quarter Ended												Linked Quarter							Year over Year
ALLOWANCE FOR LOAN LOSSES (1)		12/31/2019				9/30/2019				12/31/2018				$ Change				% Change			$ Change				% Change
Beginning Balance		$	83,226			$	80,399			$	88,874			$	2,827			3.5	%		$	(5,648	)		-6.4	%
Provision for loan losses			3,661				3,039				2,192				622			20.5	%			1,469			67.0	%
Charge-offs			(4,619	)			(2,892	)			(16,509	)			(1,727	)		-59.7	%			11,890			72.0	%
Recoveries			2,009				2,680				4,733				(671	)		-25.0	%			(2,724	)		-57.6	%
Net (charge-offs) recoveries			(2,610	)			(212	)			(11,776	)			(2,398	)		n/m				9,166			77.8	%
Ending Balance		$	84,277			$	83,226			$	79,290			$	1,051			1.3	%		$	4,987			6.3	%
PROVISION FOR LOAN LOSSES (1)
Alabama		$	(109	)		$	561			$	(346	)		$	(670	)		n/m			$	237			68.5	%
Florida			(108	)			(154	)			(160	)			46			29.9	%			52			32.5	%
Mississippi (2)			1,210				1,528				(3,594	)			(318	)		-20.8	%			4,804			n/m
Tennessee (3)			1,956				2,175				3,039				(219	)		-10.1	%			(1,083	)		-35.6	%
Texas			712				(1,071	)			3,253				1,783			n/m				(2,541	)		-78.1	%
Total provision for loan losses		$	3,661			$	3,039			$	2,192			$	622			20.5	%		$	1,469			67.0	%
NET CHARGE-OFFS (RECOVERIES) (1)
Alabama		$	132			$	329			$	203			$	(197	)		-59.9	%		$	(71	)		-35.0	%
Florida			(357	)			(136	)			(238	)			(221	)		n/m				(119	)		-50.0	%
Mississippi (2)			1,792				(391	)			(1,873	)			2,183			n/m				3,665			n/m
Tennessee (3)			131				483				7,875				(352	)		-72.9	%			(7,744	)		-98.3	%
Texas			912				(73	)			5,809				985			n/m				(4,897	)		-84.3	%
Total net charge-offs (recoveries)		$	2,610			$	212			$	11,776			$	2,398			n/m			$	(9,166	)		-77.8	%
(1) Excludes acquired loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands)
(unaudited)
		Quarter Ended																				Year Ended
AVERAGE BALANCES		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
Securities AFS-taxable		$	1,551,358			$	1,570,803			$	1,661,464			$	1,753,268			$	1,847,421			$	1,633,496			$	1,990,332
Securities AFS-nontaxable			23,300				25,096				31,474				40,159				38,821				29,948				47,112
Securities HTM-taxable			734,474				778,098				821,357				866,665				893,186				799,726				950,836
Securities HTM-nontaxable			25,703				26,088				27,035				28,710				29,143				26,874				30,336
Total securities			2,334,835				2,400,085				2,541,330				2,688,802				2,808,571				2,490,044				3,018,616
Loans (including loans held for sale)			9,467,437				9,436,287				9,260,028				9,038,204				8,933,501				9,302,037				8,797,498
Acquired loans			77,797				82,641				91,217				104,316				127,747				88,903				179,808
Fed funds sold and rev repos			184				3,662				34,057				277				843				9,529				716
Other earning assets			227,116				176,163				316,604				243,493				200,282				240,622				197,431
Total earning assets			12,107,369				12,098,838				12,243,236				12,075,092				12,070,944				12,131,135				12,194,069
Allowance for loan losses			(86,211	)			(83,756	)			(81,996	)			(82,227	)			(85,842	)			(83,559	)			(85,252	)
Other assets			1,445,075				1,447,977				1,467,462				1,447,611				1,362,831				1,452,012				1,364,420
Total assets		$	13,466,233			$	13,463,059			$	13,628,702			$	13,440,476			$	13,347,933			$	13,499,588			$	13,473,237
Interest-bearing demand deposits		$	3,167,256			$	3,085,758			$	3,048,876			$	2,899,467			$	2,722,841			$	3,051,170			$	2,543,463
Savings deposits			3,448,899				3,568,403				3,801,187				3,786,835				3,565,682				3,650,178				3,720,987
Time deposits			1,663,741				1,753,083				1,840,065				1,881,556				1,892,983				1,783,928				1,823,562
Total interest-bearing deposits			8,279,896				8,407,244				8,690,128				8,567,858				8,181,506				8,485,276				8,088,012
Fed funds purchased and repos			164,754				142,064				51,264				84,352				340,094				110,915				329,649
Other borrowings			79,512				78,404				81,352				90,804				90,252				82,476				317,687
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856				61,856				61,856
Total interest-bearing liabilities			8,586,018				8,689,568				8,884,600				8,804,870				8,673,708				8,740,523				8,797,204
Noninterest-bearing deposits			3,017,824				2,932,754				2,898,266				2,824,220				2,862,161				2,918,836				2,892,033
Other liabilities			205,786				206,091				240,091				221,199				216,932				218,216				197,123
Total liabilities			11,809,628				11,828,413				12,022,957				11,850,289				11,752,801				11,877,575				11,886,360
Shareholders' equity			1,656,605				1,634,646				1,605,745				1,590,187				1,595,132				1,622,013				1,586,877
Total liabilities and equity		$	13,466,233			$	13,463,059			$	13,628,702			$	13,440,476			$	13,347,933			$	13,499,588			$	13,473,237
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands)
(unaudited)
PERIOD END BALANCES		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Cash and due from banks		$	358,916			$	486,263			$	404,413			$	454,047			$	349,561
Fed funds sold and rev repos			—				—				75,499				—				830
Securities available for sale			1,602,404				1,553,705				1,643,725				1,723,445				1,811,813
Securities held to maturity			738,099				785,422				825,536				884,319				909,643
Loans held for sale (LHFS)			226,347				292,800				240,380				172,683				153,799
Loans held for investment (LHFI)			9,335,628				9,223,668				9,116,759				8,995,014				8,835,868
Allowance for loan losses, LHFI			(84,277	)			(83,226	)			(80,399	)			(79,005	)			(79,290	)
Net LHFI			9,251,351				9,140,442				9,036,360				8,916,009				8,756,578
Acquired loans			72,601				81,004				87,884				93,201				106,932
Allowance for loan losses, acquired loans			(815	)			(1,249	)			(1,398	)			(1,297	)			(1,231	)
Net acquired loans			71,786				79,755				86,486				91,904				105,701
Net LHFI and acquired loans			9,323,137				9,220,197				9,122,846				9,007,913				8,862,279
Premises and equipment, net			189,791				188,423				189,820				189,743				178,668
Mortgage servicing rights			79,394				73,016				79,283				86,842				95,596
Goodwill			379,627				379,627				379,627				379,627				379,627
Identifiable intangible assets			7,343				8,345				9,101				10,092				11,112
Other real estate			29,248				31,974				31,243				32,139				34,668
Operating lease right-of-use assets			31,182				33,180				32,762				33,861				—
Other assets			532,389				531,834				514,723				503,306				498,864
Total assets		$	13,497,877			$	13,584,786			$	13,548,958			$	13,478,017			$	13,286,460
Deposits:
Noninterest-bearing		$	2,891,215			$	3,064,127			$	2,909,141			$	2,867,778			$	2,937,594
Interest-bearing			8,354,342				8,190,056				8,657,488				8,667,037				8,426,817
Total deposits			11,245,557				11,254,183				11,566,629				11,534,815				11,364,411
Fed funds purchased and repos			256,020				376,712				51,800				46,867				50,471
Other borrowings			85,396				76,685				79,012				83,265				79,885
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856
Operating lease liabilities			32,354				34,319				33,878				34,921				—
Other liabilities			155,992				135,669				137,233				129,265				138,384
Total liabilities			11,837,175				11,939,424				11,930,408				11,890,989				11,695,007
Common stock			13,376				13,390				13,418				13,499				13,717
Capital surplus			256,400				257,370				260,619				272,268				309,545
Retained earnings			1,414,526				1,395,460				1,369,329				1,342,176				1,323,870
Accum other comprehensive loss, net of tax			(23,600	)			(20,858	)			(24,816	)			(40,915	)			(55,679	)
Total shareholders' equity			1,660,702				1,645,362				1,618,550				1,587,028				1,591,453
Total liabilities and equity		$	13,497,877			$	13,584,786			$	13,548,958			$	13,478,017			$	13,286,460
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands except per share data)
(unaudited)
		Quarter Ended																		Year Ended
INCOME STATEMENTS		12/31/2019				9/30/2019				6/30/2019			3/31/2019			12/31/2018				12/31/2019			12/31/2018
Interest and fees on LHFS & LHFI-FTE		$	111,383			$	116,432			$	114,873		$	109,890		$	107,709			$	452,578		$	408,175
Interest and fees on acquired loans			2,138				2,309				2,010			1,916			3,183				8,373			17,115
Interest on securities-taxable			12,884				13,184				13,916			14,665			15,496				54,649			66,082
Interest on securities-tax exempt-FTE			484				485				551			646			617				2,166			2,830
Interest on fed funds sold and rev repos			1				23				214			2			4				240			14
Other interest income			896				1,044				1,820			1,603			1,158				5,363			4,196
Total interest income-FTE			127,786				133,477				133,384			128,722			128,167				523,369			498,412
Interest on deposits			17,716				20,385				21,500			19,570			17,334				79,171			53,936
Interest on fed funds pch and repos			504				547				81			288			1,528				1,420			4,788
Other interest expense			826				830				831			825			894				3,312			7,468
Total interest expense			19,046				21,762				22,412			20,683			19,756				83,903			66,192
Net interest income-FTE			108,740				111,715				110,972			108,039			108,411				439,466			432,220
Provision for loan losses, LHFI			3,661				3,039				2,486			1,611			2,192				10,797			17,993
Provision for loan losses, acquired loans			(2	)			(140	)			106			78			(247	)			42			(1,005	)
Net interest income after provision-FTE			105,081				108,816				108,380			106,350			106,466				428,627			415,232
Service charges on deposit accounts			10,894				11,065				10,379			10,265			11,123				42,603			43,702
Bank card and other fees			8,192				8,349				8,004			7,191			7,750				31,736			28,905
Mortgage banking, net			7,914				8,171				10,295			3,442			5,716				29,822			34,674
Insurance commissions			9,364				11,072				11,089			10,871			9,562				42,396			40,481
Wealth management			7,763				7,691				7,742			7,483			7,504				30,679			30,338
Other, net			3,451				1,989				2,130			2,239			1,904				9,809			6,736
Nonint inc-excl sec gains (losses), net			47,578				48,337				49,639			41,491			43,559				187,045			184,836
Security gains (losses), net			—				—				—			—			—				—			—
Total noninterest income			47,578				48,337				49,639			41,491			43,559				187,045			184,836
Salaries and employee benefits			62,319				62,495				61,949			60,954			58,736				247,717			238,033
Services and fees			19,500				18,838				18,009			16,968			17,910				73,315			66,382
Net occupancy-premises			6,461				6,831				6,403			6,454			6,741				26,149			26,703
Equipment expense			5,880				5,971				5,958			5,924			6,329				23,733			24,830
Other real estate expense, net			1,491				531				132			1,752			61				3,906			2,002
FDIC assessment expense			1,450				1,400				1,836			1,758			1,897				6,444			9,429
Other expense			12,926				10,787				11,814			12,211			12,253				47,738			48,036
Total noninterest expense			110,027				106,853				106,101			106,021			103,927				429,002			415,415
Income before income taxes and tax eq adj			42,632				50,300				51,918			41,820			46,098				186,670			184,653
Tax equivalent adjustment			3,149				3,249				3,248			3,231			3,231				12,877			12,800
Income before income taxes			39,483				47,051				48,670			38,589			42,867				173,793			171,853
Income taxes			5,537				6,016				6,530			5,250			6,179				23,333			22,269
Net income		$	33,946			$	41,035			$	42,140		$	33,339		$	36,688			$	150,460		$	149,584
Per share data
Earnings per share - basic		$	0.53			$	0.64			$	0.65		$	0.51		$	0.55			$	2.33		$	2.22
Earnings per share - diluted		$	0.53			$	0.64			$	0.65		$	0.51		$	0.55			$	2.32		$	2.21
Dividends per share		$	0.23			$	0.23			$	0.23		$	0.23		$	0.23			$	0.92		$	0.92
Weighted average shares outstanding
Basic			64,255,716				64,358,540				64,677,889			65,239,470			66,839,504				64,629,457			67,504,701
Diluted			64,435,276				64,514,605				64,815,029			65,378,500			67,028,978				64,771,770			67,658,984
Period end shares outstanding			64,200,111				64,262,779				64,398,846			64,789,943			65,834,395				64,200,111			65,834,395
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands)
(unaudited)
		Quarter Ended
NONPERFORMING ASSETS (1)		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Nonaccrual loans
Alabama		$	1,870			$	2,936			$	2,327			$	2,971			$	3,361
Florida			267				311				330				408				1,175
Mississippi (2)			41,493				43,895				39,373				41,145				44,331
Tennessee (3)			8,980				10,193				8,455				8,806				8,696
Texas			616				1,695				2,403				3,093				4,061
Total nonaccrual loans			53,226				59,030				52,888				56,423				61,624
Other real estate
Alabama			8,133				6,501				6,451				6,878				6,873
Florida			5,877				6,983				7,826				8,120				8,771
Mississippi (2)			14,919				17,646				15,511				15,421				17,255
Tennessee (3)			319				844				815				994				1,025
Texas			—				—				640				726				744
Total other real estate			29,248				31,974				31,243				32,139				34,668
Total nonperforming assets		$	82,474			$	91,004			$	84,131			$	88,562			$	96,292
LOANS PAST DUE OVER 90 DAYS (1)
LHFI		$	642			$	878			$	1,245			$	670			$	856
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)		$	41,648			$	36,445			$	38,355			$	40,793			$	37,384
		Quarter Ended																				Year Ended
ALLOWANCE FOR LOAN LOSSES (1)		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
Beginning Balance		$	83,226			$	80,399			$	79,005			$	79,290			$	88,874			$	79,290			$	76,733
Transfers (4)			—				—				—				—				—				—				1,554
Provision for loan losses			3,661				3,039				2,486				1,611				2,192				10,797				17,993
Charge-offs			(4,619	)			(2,892	)			(2,937	)			(4,033	)			(16,509	)			(14,481	)			(29,489	)
Recoveries			2,009				2,680				1,845				2,137				4,733				8,671				12,499
Net (charge-offs) recoveries			(2,610	)			(212	)			(1,092	)			(1,896	)			(11,776	)			(5,810	)			(16,990	)
Ending Balance		$	84,277			$	83,226			$	80,399			$	79,005			$	79,290			$	84,277			$	79,290
PROVISION FOR LOAN LOSSES (1)
Alabama		$	(109	)		$	561			$	1,187			$	791			$	(346	)		$	2,430			$	1,299
Florida			(108	)			(154	)			48				(595	)			(160	)			(809	)			(2,265	)
Mississippi (2)			1,210				1,528				1,970				119				(3,594	)			4,827				208
Tennessee (3)			1,956				2,175				514				(234	)			3,039				4,411				10,953
Texas			712				(1,071	)			(1,233	)			1,530				3,253				(62	)			7,798
Total provision for loan losses		$	3,661			$	3,039			$	2,486			$	1,611			$	2,192			$	10,797			$	17,993
NET CHARGE-OFFS (RECOVERIES) (1)
Alabama		$	132			$	329			$	278			$	15			$	203			$	754			$	597
Florida			(357	)			(136	)			(130	)			(227	)			(238	)			(850	)			(1,906	)
Mississippi (2)			1,792				(391	)			907				2,130				(1,873	)			4,438				4,776
Tennessee (3)			131				483				44				50				7,875				708				7,958
Texas			912				(73	)			(7	)			(72	)			5,809				760				5,565
Total net charge-offs (recoveries)		$	2,610			$	212			$	1,092			$	1,896			$	11,776			$	5,810			$	16,990

(1)	Excludes acquired loans.
(2)	Mississippi includes Central and Southern Mississippi Regions.
(3)	Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
(4)	The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition and the Reliance merger, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
(unaudited)
		Quarter Ended																				Year Ended
FINANCIAL RATIOS AND OTHER DATA		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019			12/31/2018
Return on equity			8.13	%			9.96	%			10.53	%			8.50	%			9.12	%		9.28	%		9.43	%
Return on average tangible equity			10.85	%			13.31	%			14.14	%			11.55	%			12.41	%		12.45	%		12.86	%
Return on assets			1.00	%			1.21	%			1.24	%			1.01	%			1.09	%		1.11	%		1.11	%
Interest margin - Yield - FTE			4.19	%			4.38	%			4.37	%			4.32	%			4.21	%		4.31	%		4.09	%
Interest margin - Cost			0.62	%			0.71	%			0.73	%			0.69	%			0.65	%		0.69	%		0.54	%
Net interest margin - FTE			3.56	%			3.66	%			3.64	%			3.63	%			3.56	%		3.62	%		3.54	%
Efficiency ratio (1)			68.08	%			64.98	%			64.55	%			68.08	%			66.58	%		66.38	%		65.23	%
Full-time equivalent employees			2,844				2,835				2,819				2,839				2,856
CREDIT QUALITY RATIOS (2)
Net charge-offs/average loans			0.11	%			0.01	%			0.05	%			0.09	%			0.52	%		0.06	%		0.19	%
Provision for loan losses/average loans			0.15	%			0.13	%			0.11	%			0.07	%			0.10	%		0.12	%		0.20	%
Nonperforming loans/total loans (incl LHFS)			0.56	%			0.62	%			0.57	%			0.62	%			0.69	%
Nonperforming assets/total loans (incl LHFS)			0.86	%			0.96	%			0.90	%			0.97	%			1.07	%
Nonperforming assets/total loans (incl LHFS) +ORE			0.86	%			0.95	%			0.90	%			0.96	%			1.07	%
ALL/total loans (excl LHFS)			0.90	%			0.90	%			0.88	%			0.88	%			0.90	%
ALL-commercial/total commercial loans			0.98	%			0.98	%			0.96	%			0.96	%			0.99	%
ALL-consumer/total consumer and home mortgage loans			0.61	%			0.61	%			0.60	%			0.57	%			0.57	%
ALL/nonperforming loans			158.34	%			140.99	%			152.02	%			140.02	%			128.67	%
ALL/nonperforming loans (excl specifically reviewed impaired loans)			410.52	%			357.15	%			383.19	%			342.97	%			350.77	%
CAPITAL RATIOS
Total equity/total assets			12.30	%			12.11	%			11.95	%			11.77	%			11.98	%
Tangible equity/tangible assets			9.72	%			9.53	%			9.34	%			9.15	%			9.31	%
Tangible equity/risk-weighted assets			11.58	%			11.50	%			11.39	%			11.35	%			11.11	%
Tier 1 leverage ratio			10.48	%			10.34	%			10.03	%			10.05	%			10.26	%
Common equity tier 1 capital ratio			11.93	%			11.83	%			11.76	%			11.88	%			11.77	%
Tier 1 risk-based capital ratio			12.48	%			12.38	%			12.31	%			12.45	%			12.33	%
Total risk-based capital ratio			13.25	%			13.15	%			13.07	%			13.21	%			13.07	%
STOCK PERFORMANCE
Market value-Close		$	34.51			$	34.11			$	33.25			$	33.63			$	28.43
Book value		$	25.87			$	25.60			$	25.13			$	24.49			$	24.17
Tangible book value		$	19.84			$	19.57			$	19.10			$	18.48			$	18.24

(1)	The efficiency ratio is noninterest expense (excluding amortization of purchased intangibles and other real estate expense, net) to total net interest income (FTE) and noninterest income (excluding security gains (losses), net and amortization of partnership tax credits). Any significant non-routine income and expense items are adjusted accordingly.
(2)	Excludes acquired loans.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2019

($ in thousands)

(unaudited)

Note 1 – Recently Effective Accounting Pronouncements

ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” became effective for Trustmark on January 1, 2020. Based upon preliminary modeling results, Management estimates the allowance related to loans to be in the range of $95.0 million to $120.0 million. Trustmark expects to recognize a one-time cumulative effect adjustment through retained earnings at the date of adoption.

In addition, Trustmark does not expect a material allowance for credit losses to be recorded on securities available for sale and held to maturity under ASU 2016-13 (Topic 326) due to the composition of these portfolios. Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal.

ASU 2016-02, “Leases (Topic 842)” became effective for Trustmark on January 1, 2019. As a result, during the first quarter of 2019, Trustmark recorded operating lease right-of-use assets and operating lease liabilities of $33.9 million and $34.9 million, respectively, in its consolidated balance sheet. In addition, Trustmark recorded finance lease right-of-use assets, net of accumulated depreciation of $11.2 million in premises and equipment, net and finance lease liabilities of $11.2 million in other borrowings. The effect on Trustmark’s consolidated income statement is considered immaterial.

Note 2 - Securities Available for Sale and Held to Maturity

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

		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
SECURITIES AVAILABLE FOR SALE
U.S. Government agency obligations		$	22,327			$	24,697			$	26,646			$	28,008			$	30,335
Obligations of states and political subdivisions			25,465				35,001				38,698				50,954				50,676
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			69,252				63,391				65,716				66,176				67,494
Issued by FNMA and FHLMC			713,356				589,962				624,364				645,958				666,684
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			658,226				705,601				751,371				784,566				811,601
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			113,778				135,053				136,930				147,783				185,023
Total securities available for sale		$	1,602,404			$	1,553,705			$	1,643,725			$	1,723,445			$	1,811,813
SECURITIES HELD TO MATURITY
U.S. Government agency obligations		$	3,781			$	3,770			$	3,758			$	3,747			$	3,736
Obligations of states and political subdivisions			31,781				31,806				32,860				35,352				35,783
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			10,820				10,994				11,184				11,710				12,090
Issued by FNMA and FHLMC			96,631				102,048				106,755				111,962				115,133
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			485,324				510,770				536,166				559,690				578,827
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			109,762				126,034				134,813				161,858				164,074
Total securities held to maturity		$	738,099			$	785,422			$	825,536			$	884,319			$	909,643

At December 31, 2019, the net unamortized, unrealized loss included in accumulated other comprehensive loss in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $12.1 million ($9.1 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 97.5% 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.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2019 ($ in thousands) (unaudited)
Note 3 – Loan Composition
LHFI BY TYPE (excluding acquired loans)		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Loans secured by real estate:
Construction, land development and other land loans		$	1,162,791			$	1,135,999			$	1,111,297			$	1,209,761			$	1,056,601
Secured by 1-4 family residential properties			1,855,913				1,820,455				1,818,126				1,810,872				1,825,492
Secured by nonfarm, nonresidential properties			2,475,245				2,442,308				2,326,312				2,241,072				2,220,914
Other real estate secured			724,480				668,667				635,839				528,032				543,820
Commercial and industrial loans			1,477,896				1,491,367				1,533,318				1,558,057				1,538,715
Consumer loans			175,738				176,894				176,133				176,619				182,448
State and other political subdivision loans			967,944				978,456				982,187				982,626				973,818
Other loans			495,621				509,522				533,547				487,975				494,060
LHFI			9,335,628				9,223,668				9,116,759				8,995,014				8,835,868
Allowance for loan losses			(84,277	)			(83,226	)			(80,399	)			(79,005	)			(79,290	)
Net LHFI		$	9,251,351			$	9,140,442			$	9,036,360			$	8,916,009			$	8,756,578

ACQUIRED LOANS BY TYPE		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Loans secured by real estate:
Construction, land development and other land loans		$	4,771			$	5,417			$	5,705			$	5,728			$	5,878
Secured by 1-4 family residential properties			17,525				18,437				19,967				21,441				22,556
Secured by nonfarm, nonresidential properties			38,206				40,930				43,444				46,492				47,979
Other real estate secured			3,946				6,887				7,416				8,026				8,253
Commercial and industrial loans			5,035				4,925				6,193				6,359				15,267
Consumer loans			520				593				852				1,033				1,356
Other loans			2,598				3,815				4,307				4,122				5,643
Acquired loans			72,601				81,004				87,884				93,201				106,932
Allowance for loan losses, acquired loans			(815	)			(1,249	)			(1,398	)			(1,297	)			(1,231	)
Net acquired loans		$	71,786			$	79,755			$	86,486			$	91,904			$	105,701

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2019 ($ in thousands) (unaudited)
Note 3 – Loan Composition (continued)
		December 31, 2019
LHFI - COMPOSITION BY REGION (1)		Total				Alabama				Florida				Mississippi (Central and Southern Regions)				Tennessee (Memphis, TN and Northern MS Regions)				Texas
Loans secured by real estate:
Construction, land development and other land loans		$	1,162,791			$	396,640			$	87,073			$	360,458			$	22,998			$	295,622
Secured by 1-4 family residential properties			1,855,913				126,541				39,111				1,594,235				82,644				13,382
Secured by nonfarm, nonresidential properties			2,475,245				622,714				255,996				923,335				165,393				507,807
Other real estate secured			724,480				190,099				26,011				283,201				9,627				215,542
Commercial and industrial loans			1,477,896				227,792				22,479				721,854				315,794				189,977
Consumer loans			175,738				24,124				5,002				124,395				19,777				2,440
State and other political subdivision loans			967,944				106,218				38,763				613,476				27,447				182,040
Other loans			495,621				79,404				16,452				301,144				67,526				31,095
Loans		$	9,335,628			$	1,773,532			$	490,887			$	4,922,098			$	711,206			$	1,437,905
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION (1)
Lots		$	73,058			$	16,166			$	22,625			$	25,592			$	2,032			$	6,643
Development			60,881				13,327				8,365				28,390				4,714				6,085
Unimproved land			98,550				22,947				17,050				28,202				11,987				18,364
1-4 family construction			252,073				117,405				21,723				84,277				3,437				25,231
Other construction			678,229				226,795				17,310				193,997				828				239,299
Construction, land development and other land loans		$	1,162,791			$	396,640			$	87,073			$	360,458			$	22,998			$	295,622
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION (1)
Non-owner occupied:
Retail		$	426,995			$	165,213			$	41,542			$	117,382			$	27,709			$	75,149
Office			232,572				46,550				27,788				60,682				11,816				85,736
Hotel/motel			315,270				114,786				96,401				52,375				40,708				11,000
Mini-storage			110,097				12,301				3,832				47,561				579				45,824
Industrial			169,165				57,741				10,833				28,790				2,322				69,479
Health care			37,366				11,065				3,462				19,055				—				3,784
Convenience stores			24,283				3,137				—				11,680				639				8,827
Nursing homes/senior living			38,370				18,792				—				2,366				—				17,212
Other			63,485				4,219				6,875				11,965				5,804				34,622
Total non-owner occupied loans			1,417,603				433,804				190,733				351,856				89,577				351,633
Owner-occupied:
Office			155,787				35,147				27,512				58,023				7,389				27,716
Churches			99,737				22,690				6,350				42,265				13,794				14,638
Industrial warehouses			139,685				11,778				3,372				63,204				16,289				45,042
Health care			132,838				18,305				6,175				92,828				2,542				12,988
Convenience stores			106,175				13,277				7,044				63,969				667				21,218
Retail			69,311				15,610				7,377				27,333				2,788				16,203
Restaurants			56,369				3,730				1,857				32,722				16,542				1,518
Auto dealerships			30,123				8,257				300				13,288				8,278				—
Nursing homes/senior living			179,737				55,174				—				118,707				5,856				—
Other			87,880				4,942				5,276				59,140				1,671				16,851
Total owner-occupied loans			1,057,642				188,910				65,263				571,479				75,816				156,174
Loans secured by nonfarm, nonresidential properties		$	2,475,245			$	622,714			$	255,996			$	923,335			$	165,393			$	507,807
(1) Excludes acquired loans.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2019

($ in thousands)

(unaudited)

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities

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

		Quarter Ended																				Year Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
Securities – taxable			2.24	%			2.23	%			2.25	%			2.27	%			2.24	%			2.25	%			2.25	%
Securities – nontaxable			3.92	%			3.76	%			3.78	%			3.80	%			3.60	%			3.81	%			3.65	%
Securities – total			2.27	%			2.26	%			2.28	%			2.31	%			2.28	%			2.28	%			2.28	%
Loans - LHFI & LHFS			4.67	%			4.90	%			4.98	%			4.93	%			4.78	%			4.87	%			4.64	%
Acquired loans			10.90	%			11.08	%			8.84	%			7.45	%			9.89	%			9.42	%			9.52	%
Loans - total			4.72	%			4.95	%			5.01	%			4.96	%			4.86	%			4.91	%			4.74	%
FF sold & rev repo			2.16	%			2.49	%			2.52	%			2.93	%			1.88	%			2.52	%			1.96	%
Other earning assets			1.57	%			2.35	%			2.31	%			2.67	%			2.29	%			2.23	%			2.13	%
Total earning assets			4.19	%			4.38	%			4.37	%			4.32	%			4.21	%			4.31	%			4.09	%
Interest-bearing deposits			0.85	%			0.96	%			0.99	%			0.93	%			0.84	%			0.93	%			0.67	%
FF pch & repo			1.21	%			1.53	%			0.63	%			1.38	%			1.78	%			1.28	%			1.45	%
Other borrowings			2.32	%			2.35	%			2.33	%			2.19	%			2.33	%			2.29	%			1.97	%
Total interest-bearing liabilities			0.88	%			0.99	%			1.01	%			0.95	%			0.90	%			0.96	%			0.75	%
Net interest margin			3.56	%			3.66	%			3.64	%			3.63	%			3.56	%			3.62	%			3.54	%
Net interest margin excluding acquired loans			3.52	%			3.61	%			3.60	%			3.60	%			3.50	%			3.58	%			3.46	%

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

During the fourth quarter of 2019, the yield on acquired loans totaled 10.90% and included $661 thousand in recoveries from the settlement of debt, which represented approximately 3.37% of the annualized total acquired loan yield. During the third quarter of 2019, the yield on acquired loans totaled 11.08% and included $1.1 million in recoveries from the settlement of debt, which represented approximately 5.09% of the annualized total acquired loan yield.

Excluding acquired loans, the net interest margin decreased to 3.52% for the fourth quarter of 2019 when compared to the third quarter of 2019, primarily due to a decline in the yield on the loans held for investment and held for sale portfolio and was partially offset by runoff of maturing investment securities and lower costs of interest-bearing deposits.

Note 5 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative ineffectiveness of $3.0 million primarily due to market volatility and adjustments to asset valuation assumptions during the fourth quarter of 2019.

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

		Quarter Ended																				Year Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
Mortgage servicing income, net		$	5,854			$	5,688			$	5,734			$	5,607			$	5,730			$	22,883			$	22,248
Change in fair value-MSR from runoff			(2,950	)			(3,569	)			(2,918	)			(2,398	)			(2,752	)			(11,835	)			(11,774	)
Gain on sales of loans, net (1)			7,984				9,799				7,532				4,981				3,813				30,296				21,800
Mortgage banking income before hedge ineffectiveness			10,888				11,918				10,348				8,190				6,791				41,344				32,274
Change in fair value-MSR from market changes			4,048				(8,054	)			(8,209	)			(8,863	)			(6,537	)			(21,078	)			7,342
Change in fair value of derivatives			(7,022	)			4,307				8,156				4,115				5,462				9,556				(4,942	)
Net positive (negative) hedge ineffectiveness			(2,974	)			(3,747	)			(53	)			(4,748	)			(1,075	)			(11,522	)			2,400
Mortgage banking, net		$	7,914			$	8,171			$	10,295			$	3,442			$	5,716			$	29,822			$	34,674

(1)	The mortgage loan valuation adjustment, previously shown as “Other, net”, has been included in “Gain on sales of loans, net” for all periods presented.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2019

($ in thousands)

(unaudited)

Note 6 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented ($ in thousands):

		Quarter Ended																				Year Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
Partnership amortization for tax credit purposes		$	(1,630	)		$	(1,994	)		$	(2,010	)		$	(2,010	)		$	(2,101	)		$	(7,644	)		$	(8,707	)
Increase in life insurance cash surrender value			1,802				1,814				1,803				1,783				1,808				7,202				7,121
Other miscellaneous income			3,279				2,169				2,337				2,466				2,197				10,251				8,322
Total other, net		$	3,451			$	1,989			$	2,130			$	2,239			$	1,904			$	9,809			$	6,736

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 ($ in thousands):

		Quarter Ended																				Year Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
Loan expense		$	2,968			$	2,886			$	3,003			$	2,697			$	2,425			$	11,554			$	11,086
Amortization of intangibles			1,002				1,021				992				1,101				1,279				4,116				5,248
Other miscellaneous expense			8,956				6,880				7,819				8,413				8,549				32,068				31,702
Total other expense		$	12,926			$	10,787			$	11,814			$	12,211			$	12,253			$	47,738			$	48,036

Note 7 – Non-GAAP Financial Measures

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

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2019 ($ in thousands except per share data) (unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
				Quarter Ended																				Year Ended
				12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity				$	1,656,605			$	1,634,646			$	1,605,745			$	1,590,187			$	1,595,132			$	1,622,013			$	1,586,877
Less: Goodwill					(379,627	)			(379,627	)			(379,627	)			(379,627	)			(379,627	)			(379,627	)			(379,627	)
Identifiable intangible assets					(7,882	)			(8,706	)			(9,631	)			(10,666	)			(11,811	)			(9,212	)			(13,751	)
Total average tangible equity				$	1,269,096			$	1,246,313			$	1,216,487			$	1,199,894			$	1,203,694			$	1,233,174			$	1,193,499
PERIOD END BALANCES
Total shareholders' equity				$	1,660,702			$	1,645,362			$	1,618,550			$	1,587,028			$	1,591,453
Less: Goodwill					(379,627	)			(379,627	)			(379,627	)			(379,627	)			(379,627	)
Identifiable intangible assets					(7,343	)			(8,345	)			(9,101	)			(10,092	)			(11,112	)
Total tangible equity		(a)		$	1,273,732			$	1,257,390			$	1,229,822			$	1,197,309			$	1,200,714
TANGIBLE ASSETS
Total assets				$	13,497,877			$	13,584,786			$	13,548,958			$	13,478,017			$	13,286,460
Less: Goodwill					(379,627	)			(379,627	)			(379,627	)			(379,627	)			(379,627	)
Identifiable intangible assets					(7,343	)			(8,345	)			(9,101	)			(10,092	)			(11,112	)
Total tangible assets		(b)		$	13,110,907			$	13,196,814			$	13,160,230			$	13,088,298			$	12,895,721
Risk-weighted assets		(c)		$	11,002,877			$	10,935,018			$	10,796,903			$	10,548,472			$	10,803,313
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income				$	33,946			$	41,035			$	42,140			$	33,339			$	36,688			$	150,460			$	149,584
Plus: Intangible amortization net of tax					752				766				744				826				959				3,088				3,938
Net income adjusted for intangible amortization				$	34,698			$	41,801			$	42,884			$	34,165			$	37,647			$	153,548			$	153,522
Period end common shares outstanding		(d)			64,200,111				64,262,779				64,398,846				64,789,943				65,834,395
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)					10.85	%			13.31	%			14.14	%			11.55	%			12.41	%			12.45	%			12.86	%
Tangible equity/tangible assets		(a)/(b)			9.72	%			9.53	%			9.34	%			9.15	%			9.31	%
Tangible equity/risk-weighted assets		(a)/(c)			11.58	%			11.50	%			11.39	%			11.35	%			11.11	%
Tangible book value		(a)/(d)*1,000		$	19.84			$	19.57			$	19.10			$	18.48			$	18.24
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity				$	1,660,702			$	1,645,362			$	1,618,550			$	1,587,028			$	1,591,453
AOCI-related adjustments					23,600				20,858				24,816				40,915				55,679
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)					(365,738	)			(365,741	)			(365,745	)			(365,748	)			(365,779	)
Other adjustments and deductions for CET1 (2)					(5,896	)			(6,671	)			(8,268	)			(9,099	)			(9,815	)
CET1 capital		(e)			1,312,668				1,293,808				1,269,353				1,253,096				1,271,538
Additional tier 1 capital instruments plus related surplus					60,000				60,000				60,000				60,000				60,000
Less: additional tier 1 capital deductions					—				—				—				—				—
Additional tier 1 capital					60,000				60,000				60,000				60,000				60,000
Tier 1 capital				$	1,372,668			$	1,353,808			$	1,329,353			$	1,313,096			$	1,331,538
Common equity tier 1 capital ratio		(e)/(c)			11.93	%			11.83	%			11.76	%			11.88	%			11.77	%

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200128005708/en/

Trustmark Investor Contacts:

Louis E. Greer

Treasurer and Principal Financial Officer

601-208-2310



F. Joseph Rein, Jr.

Senior Vice President

601-208-6898



Trustmark Media Contact:

Melanie A. Morgan

Senior Vice President

601-208-2979

Source: Trustmark Corporation