Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Trustmark Corporation Announces First Quarter 2024 Financial Results By: Trustmark Corporation via Business Wire April 23, 2024 at 16:35 PM EDT Loan Growth Moderates, Credit Quality Remains Stable Solid Growth in Fee Income and Disciplined Expense Management Reflected in Financial Results Trustmark Corporation (NASDAQGS:TRMK) reported net income of $41.5 million in the first quarter of 2024, representing diluted earnings per share of $0.68. Trustmark’s performance during the first quarter produced a return on average tangible equity of 12.98% and a return on average assets of 0.89%. The Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2024, to shareholders of record on June 1, 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423449062/en/ Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/53946039/en First Quarter Highlights Loans held for investment increased 0.8% linked-quarter and represented 85.1% of total deposits at March 31, 2024 Credit quality remained solid Revenue totaled $188.2 million, up 0.9% linked-quarter Noninterest income increased 11.1% linked-quarter, reflecting seasonal increases and the strength of diversified business lines Noninterest expense decreased 3.9% linked-quarter, reflecting on-going expense management priorities Duane A. Dewey, President and CEO, stated, “We are off to a great start in 2024. Our first quarter results reflect continued loan growth, solid credit quality, and double-digit increases in noninterest income. In addition, we experienced a meaningful decrease in noninterest expense. These accomplishments are the results of our focused efforts to expand customer relationships and diligently manage expenses. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as our customers’ financial partner. We are well positioned to serve and expand our customer base and create long-term value for shareholders.” Balance Sheet Management Loans held for investment (HFI) increased $107.4 million, or 0.8%, during the quarter Total deposits decreased $231.2 million, or 1.5%, during the quarter Maintained strong capital position with CET1 ratio of 10.12% and total risk-based capital ratio of 12.42% Loans HFI totaled $13.1 billion at March 31, 2024, reflecting an increase of $107.4 million, or 0.8%, linked-quarter and $560.7 million, or 4.5%, year-over-year. The linked-quarter growth reflected increases in commercial real estate and equipment finance loans offset in part by reductions in state and other political subdivision loans and consumer loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography. Deposits totaled $15.3 billion at March 31, 2024, down $231.2 million, or 1.5%, from the prior quarter and up $554.9 million, or 3.8%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 85.1% of total deposits at March 31, 2024. Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 19.8% of total deposits at March 31, 2024. Interest-bearing deposit costs totaled 2.74% for the first quarter, an increase of 7 basis points linked-quarter, while the total cost of deposits was 2.18%, an increase of 8 basis points linked-quarter. The total cost of interest-bearing liabilities in the first quarter was 2.92%, up 3 basis points from the prior quarter. During the first quarter, Trustmark did not repurchase any of its outstanding common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2024. At March 31, 2024, Trustmark’s tangible equity to tangible assets ratio was 7.20%, while the total risk-based capital ratio was 12.42%. Tangible book value per share was $21.18 at March 31, 2024, an increase of 1.5% from the prior quarter and 10.1% from the prior year. Credit Quality Net charge-offs totaled $4.1 million, representing 0.12% of average loans in the first quarter Provision for credit losses for loans HFI was $7.7 million in the first quarter Allowance for credit losses (ACL) represented 1.10% of loans HFI and 235.29% of nonaccrual loans, excluding individually analyzed loans at March 31, 2024 Nonaccrual loans totaled $98.4 million at March 31, 2024, down $1.7 million from the prior quarter and an increase of $26.0 million year-over-year. Other real estate totaled $7.6 million, reflecting increases of $753 thousand and $5.9 million from the prior quarter and prior year, respectively. Collectively, nonperforming assets totaled $106.0 million, representing 0.80% of loans HFI and held for sale (HFS) at March 31, 2024. The provision for credit losses for loans HFI was $7.7 million in the first quarter and was primarily attributable to loan growth, changes in the macroeconomic forecast, and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was a negative $192 thousand in the first quarter. Collectively, the provision for credit losses totaled $7.5 million in the first quarter compared to $6.7 million in the prior quarter and $1.0 million in the first quarter of 2023. Allocation of Trustmark’s $143.0 million ACL on loans HFI represented 0.93% of commercial loans and 1.63% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.10% at March 31, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio. Revenue Generation Net interest income (FTE) totaled $136.2 million in the first quarter, down 2.8% linked-quarter Net interest margin totaled 3.21% in the first quarter, down 4 basis points from the prior quarter Noninterest income increased 11.1% linked-quarter to total $55.3 million, reflecting growth in mortgage banking, insurance, other income, and wealth management revenue Revenue in the first quarter totaled $188.2 million, an increase of 0.9% from the prior quarter and a decrease of 0.4% from the same quarter in the prior year. The linked-quarter increase primarily reflects higher noninterest income offset in part by lower net interest income while the year-over-year decrease is attributed to lower net interest income offset in part by growth in noninterest income. Net interest income (FTE) in the first quarter totaled $136.2 million, resulting in a net interest margin of 3.21%, down 4 basis points from the prior quarter. The decrease in the net interest margin was primarily due to increased costs of interest-bearing liabilities. Noninterest income in the first quarter totaled $55.3 million, an increase of $5.5 million, or 11.1%, from the prior quarter and $4.0 million, or 7.7%, year-over-year. The linked-quarter increases in mortgage banking, insurance, other income, and wealth management revenue were offset in part by declines in bank card and other fees and service charges on deposit accounts. The increase in noninterest income year-over-year is broad-based, reflecting increases in mortgage banking, insurance, other income, service charges of deposit accounts and wealth management revenue which were offset in part by declines in bank card and other fees. Mortgage loan production in the first quarter totaled $274.0 million, up 0.8% from the prior quarter and down 24.1% year-over-year. Mortgage banking revenue totaled $8.9 million in the first quarter, an increase of $3.4 million linked-quarter and $1.3 million year-over-year. The linked-quarter increase was principally attributable to increased gain on sales of mortgage loans, improvement in net negative hedge ineffectiveness, and reduced servicing asset amortization. The year-over-year increase was principally due to increased gain on sales of mortgage loans. Insurance revenue totaled $15.5 million in the first quarter, up $2.3 million, or 17.2%, from the prior quarter and $1.2 million, or 8.1%, year-over-year. The linked-quarter and year-over-year increases primarily reflected growth in commercial property and casualty commissions. Wealth management revenue in the first quarter totaled $9.0 million, an increase of $295 thousand, or 3.4%, from the prior quarter and $172 thousand, or 2.0%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year growth reflected increased brokerage revenue. Other income, net totaled $3.6 million in the first quarter, up $1.1 million from both the prior quarter and year-over-year. Service charges on deposit accounts totaled $11.0 million in the first quarter, reflecting a seasonal decrease of $353 thousand, or 3.1%, from the prior quarter and an increase of $622 thousand, or 6.0%, year-over-year. Bank card and other fees totaled $7.4 million in the first quarter, down $1.1 million from the prior quarter due principally to lower customer derivative revenue. Year-over-year, bank card and other fees declined $375 thousand. Noninterest Expense Total noninterest expense declined $5.3 million, or 3.9%, linked-quarter Salary and employee benefit expense declined $2.5 million, or 3.3%, linked-quarter Total services and fees declined $3.1 million, or 11.0%, linked-quarter Noninterest expense in the first quarter totaled $131.1 million, a decrease of $5.3 million, or 3.9%, from the prior quarter and an increase of $2.8 million, or 2.2%, year-over-year. Salary and employee benefit expense totaled $75.5 million in the first quarter, a decline of $2.5 million, or 3.3%, linked-quarter and an increase of $1.4 million, or 1.9%, year-over-year. The linked-quarter decline reflected reductions in incentives, severance, medical insurance, and salary expense, which were offset in part by a seasonal increase in payroll taxes and restricted stock compensation expense. Services and fees in the first quarter totaled $24.8 million, a decrease of $3.1 million, or 11.0%, from the prior quarter and $587 thousand, or 2.3%, year-over-year. The linked-quarter decline is attributable principally to lower professional fees and data processing software expense. Additional Information As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 24, 2024, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, May 8, 2024, in archived format at the same web address or by calling (877) 344-7529, passcode 4820621. Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Forward-Looking Statements Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international 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, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, 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 impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain 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, 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, 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 CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Linked Quarter Year over Year QUARTERLY AVERAGE BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Securities AFS-taxable $ 1,927,619 $ 1,986,825 $ 2,187,121 $ (59,206 ) -3.0 % $ (259,502 ) -11.9 % Securities AFS-nontaxable — 4,246 4,812 (4,246 ) -100.0 % (4,812 ) -100.0 % Securities HTM-taxable 1,418,476 1,430,169 1,479,283 (11,693 ) -0.8 % (60,807 ) -4.1 % Securities HTM-nontaxable 340 340 4,509 — 0.0 % (4,169 ) -92.5 % Total securities 3,346,435 3,421,580 3,675,725 (75,145 ) -2.2 % (329,290 ) -9.0 % Loans (includes loans held for sale) 13,169,805 13,010,028 12,530,449 159,777 1.2 % 639,356 5.1 % Fed funds sold and reverse repurchases 114 121 2,379 (7 ) -5.8 % (2,265 ) -95.2 % Other earning assets 571,215 670,477 647,760 (99,262 ) -14.8 % (76,545 ) -11.8 % Total earning assets 17,087,569 17,102,206 16,856,313 (14,637 ) -0.1 % 231,256 1.4 % Allowance for credit losses (ACL), loans held for investment (LHFI) (138,711 ) (133,742 ) (119,978 ) (4,969 ) -3.7 % (18,733 ) -15.6 % Other assets 1,730,521 1,749,069 1,762,449 (18,548 ) -1.1 % (31,928 ) -1.8 % Total assets $ 18,679,379 $ 18,717,533 $ 18,498,784 $ (38,154 ) -0.2 % $ 180,595 1.0 % Interest-bearing demand deposits $ 5,291,779 $ 5,053,935 $ 4,751,154 $ 237,844 4.7 % $ 540,625 11.4 % Savings deposits 3,686,027 3,526,600 4,193,764 159,427 4.5 % (507,737 ) -12.1 % Time deposits 3,321,601 3,427,384 1,907,449 (105,783 ) -3.1 % 1,414,152 74.1 % Total interest-bearing deposits 12,299,407 12,007,919 10,852,367 291,488 2.4 % 1,447,040 13.3 % Fed funds purchased and repurchases 428,127 403,041 436,535 25,086 6.2 % (8,408 ) -1.9 % Other borrowings 463,459 590,765 1,110,843 (127,306 ) -21.5 % (647,384 ) -58.3 % Subordinated notes 123,501 123,446 123,281 55 0.0 % 220 0.2 % Junior subordinated debt securities 61,856 61,856 61,856 — 0.0 % — 0.0 % Total interest-bearing liabilities 13,376,350 13,187,027 12,584,882 189,323 1.4 % 791,468 6.3 % Noninterest-bearing deposits 3,120,566 3,296,351 3,813,248 (175,785 ) -5.3 % (692,682 ) -18.2 % Other liabilities 505,942 641,662 576,826 (135,720 ) -21.2 % (70,884 ) -12.3 % Total liabilities 17,002,858 17,125,040 16,974,956 (122,182 ) -0.7 % 27,902 0.2 % Shareholders' equity 1,676,521 1,592,493 1,523,828 84,028 5.3 % 152,693 10.0 % Total liabilities and equity $ 18,679,379 $ 18,717,533 $ 18,498,784 $ (38,154 ) -0.2 % $ 180,595 1.0 % n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Linked Quarter Year over Year PERIOD END BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Cash and due from banks $ 606,261 $ 975,543 $ 1,297,144 $ (369,282 ) -37.9 % $ (690,883 ) -53.3 % Securities available for sale 1,702,299 1,762,878 1,984,162 (60,579 ) -3.4 % (281,863 ) -14.2 % Securities held to maturity 1,415,025 1,426,279 1,474,338 (11,254 ) -0.8 % (59,313 ) -4.0 % Loans held for sale (LHFS) 172,937 184,812 175,926 (11,875 ) -6.4 % (2,989 ) -1.7 % Loans held for investment (LHFI) 13,057,943 12,950,524 12,497,195 107,419 0.8 % 560,748 4.5 % ACL LHFI (142,998 ) (139,367 ) (122,239 ) (3,631 ) -2.6 % (20,759 ) -17.0 % Net LHFI 12,914,945 12,811,157 12,374,956 103,788 0.8 % 539,989 4.4 % Premises and equipment, net 232,924 232,537 223,975 387 0.2 % 8,949 4.0 % Mortgage servicing rights 138,044 131,870 127,206 6,174 4.7 % 10,838 8.5 % Goodwill 384,237 384,237 384,237 — 0.0 % — 0.0 % Identifiable intangible assets 2,845 2,965 3,352 (120 ) -4.0 % (507 ) -15.1 % Other real estate 7,620 6,867 1,684 753 11.0 % 5,936 n/m Operating lease right-of-use assets 36,659 38,142 35,315 (1,483 ) -3.9 % 1,344 3.8 % Other assets 762,816 764,902 794,883 (2,086 ) -0.3 % (32,067 ) -4.0 % Total assets $ 18,376,612 $ 18,722,189 $ 18,877,178 $ (345,577 ) -1.8 % $ (500,566 ) -2.7 % Deposits: Noninterest-bearing $ 3,039,652 $ 3,197,620 $ 3,797,055 $ (157,968 ) -4.9 % $ (757,403 ) -19.9 % Interest-bearing 12,298,905 12,372,143 10,986,606 (73,238 ) -0.6 % 1,312,299 11.9 % Total deposits 15,338,557 15,569,763 14,783,661 (231,206 ) -1.5 % 554,896 3.8 % Fed funds purchased and repurchases 393,215 405,745 477,980 (12,530 ) -3.1 % (84,765 ) -17.7 % Other borrowings 482,027 483,230 1,485,181 (1,203 ) -0.2 % (1,003,154 ) -67.5 % Subordinated notes 123,537 123,482 123,317 55 0.0 % 220 0.2 % Junior subordinated debt securities 61,856 61,856 61,856 — 0.0 % — 0.0 % ACL on off-balance sheet credit exposures 33,865 34,057 34,596 (192 ) -0.6 % (731 ) -2.1 % Operating lease liabilities 40,185 41,584 37,988 (1,399 ) -3.4 % 2,197 5.8 % Other liabilities 220,771 340,625 310,500 (119,854 ) -35.2 % (89,729 ) -28.9 % Total liabilities 16,694,013 17,060,342 17,315,079 (366,329 ) -2.1 % (621,066 ) -3.6 % Common stock 12,747 12,725 12,720 22 0.2 % 27 0.2 % Capital surplus 160,521 159,688 155,297 833 0.5 % 5,224 3.4 % Retained earnings 1,736,485 1,709,157 1,636,463 27,328 1.6 % 100,022 6.1 % Accumulated other comprehensive income (loss), net of tax (227,154 ) (219,723 ) (242,381 ) (7,431 ) -3.4 % 15,227 6.3 % Total shareholders' equity 1,682,599 1,661,847 1,562,099 20,752 1.2 % 120,500 7.7 % Total liabilities and equity $ 18,376,612 $ 18,722,189 $ 18,877,178 $ (345,577 ) -1.8 % $ (500,566 ) -2.7 % n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year INCOME STATEMENTS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Interest and fees on LHFS & LHFI-FTE $ 209,456 $ 210,288 $ 178,967 $ (832 ) -0.4 % $ 30,489 17.0 % Interest on securities-taxable 15,634 15,936 16,761 (302 ) -1.9 % (1,127 ) -6.7 % Interest on securities-tax exempt-FTE 4 44 92 (40 ) -90.9 % (88 ) -95.7 % Interest on fed funds sold and reverse repurchases 1 2 30 (1 ) -50.0 % (29 ) -96.7 % Other interest income 8,110 9,918 6,527 (1,808 ) -18.2 % 1,583 24.3 % Total interest income-FTE 233,205 236,188 202,377 (2,983 ) -1.3 % 30,828 15.2 % Interest on deposits 83,716 80,847 40,898 2,869 3.5 % 42,818 n/m Interest on fed funds purchased and repurchases 5,591 5,347 4,832 244 4.6 % 759 15.7 % Other interest expense 7,703 9,946 15,575 (2,243 ) -22.6 % (7,872 ) -50.5 % Total interest expense 97,010 96,140 61,305 870 0.9 % 35,705 58.2 % Net interest income-FTE 136,195 140,048 141,072 (3,853 ) -2.8 % (4,877 ) -3.5 % Provision for credit losses, LHFI 7,708 7,585 3,244 123 1.6 % 4,464 n/m Provision for credit losses, off-balance sheet credit exposures (192 ) (888 ) (2,242 ) 696 78.4 % 2,050 91.4 % Net interest income after provision-FTE 128,679 133,351 140,070 (4,672 ) -3.5 % (11,391 ) -8.1 % Service charges on deposit accounts 10,958 11,311 10,336 (353 ) -3.1 % 622 6.0 % Bank card and other fees 7,428 8,502 7,803 (1,074 ) -12.6 % (375 ) -4.8 % Mortgage banking, net 8,915 5,519 7,639 3,396 61.5 % 1,276 16.7 % Insurance commissions 15,464 13,197 14,305 2,267 17.2 % 1,159 8.1 % Wealth management 8,952 8,657 8,780 295 3.4 % 172 2.0 % Other, net 3,632 2,579 2,514 1,053 40.8 % 1,118 44.5 % Securities gains (losses), net — 39 — (39 ) -100.0 % — n/m Total noninterest income 55,349 49,804 51,377 5,545 11.1 % 3,972 7.7 % Salaries and employee benefits 75,458 78,003 74,056 (2,545 ) -3.3 % 1,402 1.9 % Services and fees 24,839 27,906 25,426 (3,067 ) -11.0 % (587 ) -2.3 % Net occupancy-premises 7,496 7,362 7,629 134 1.8 % (133 ) -1.7 % Equipment expense 6,385 6,517 6,405 (132 ) -2.0 % (20 ) -0.3 % Other expense 16,968 16,641 14,811 327 2.0 % 2,157 14.6 % Total noninterest expense 131,146 136,429 128,327 (5,283 ) -3.9 % 2,819 2.2 % Income before income taxes and tax eq adj 52,882 46,726 63,120 6,156 13.2 % (10,238 ) -16.2 % Tax equivalent adjustment 3,365 3,306 3,477 59 1.8 % (112 ) -3.2 % Income before income taxes 49,517 43,420 59,643 6,097 14.0 % (10,126 ) -17.0 % Income taxes 7,982 7,297 9,343 685 9.4 % (1,361 ) -14.6 % Net income $ 41,535 $ 36,123 $ 50,300 $ 5,412 15.0 % $ (8,765 ) -17.4 % Per share data Earnings per share - basic $ 0.68 $ 0.59 $ 0.82 $ 0.09 15.3 % $ (0.14 ) -17.1 % Earnings per share - diluted $ 0.68 $ 0.59 $ 0.82 $ 0.09 15.3 % $ (0.14 ) -17.1 % Dividends per share $ 0.23 $ 0.23 $ 0.23 — 0.0 % — 0.0 % Weighted average shares outstanding Basic 61,128,425 61,070,481 61,011,059 Diluted 61,348,364 61,296,840 61,193,275 Period end shares outstanding 61,178,366 61,071,173 61,048,516 n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year NONPERFORMING ASSETS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Nonaccrual LHFI Alabama (1) $ 23,261 $ 23,271 $ 10,919 $ (10 ) 0.0 % $ 12,342 n/m Florida 585 170 256 415 n/m 329 n/m Mississippi (2) 59,059 54,615 32,560 4,444 8.1 % 26,499 81.4 % Tennessee (3) 1,800 1,802 5,416 (2 ) -0.1 % (3,616 ) -66.8 % Texas 13,646 20,150 23,224 (6,504 ) -32.3 % (9,578 ) -41.2 % Total nonaccrual LHFI 98,351 100,008 72,375 (1,657 ) -1.7 % 25,976 35.9 % Other real estate Alabama (1) 1,050 1,397 — (347 ) -24.8 % 1,050 n/m Florida 71 — — 71 n/m 71 n/m Mississippi (2) 2,870 1,242 1,495 1,628 n/m 1,375 92.0 % Tennessee (3) 86 — 189 86 n/m (103 ) -54.5 % Texas 3,543 4,228 — (685 ) -16.2 % 3,543 n/m Total other real estate 7,620 6,867 1,684 753 11.0 % 5,936 n/m Total nonperforming assets $ 105,971 $ 106,875 $ 74,059 $ (904 ) -0.8 % $ 31,912 43.1 % LOANS PAST DUE OVER 90 DAYS LHFI $ 5,243 $ 5,790 $ 2,255 $ (547 ) -9.4 % $ 2,988 n/m LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 56,530 $ 51,243 $ 41,468 $ 5,287 10.3 % $ 15,062 36.3 % Quarter Ended Linked Quarter Year over Year ACL LHFI 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Beginning Balance $ 139,367 $ 134,031 $ 120,214 $ 5,336 4.0 % $ 19,153 15.9 % Provision for credit losses, LHFI 7,708 7,585 3,244 123 1.6 % 4,464 n/m Charge-offs (6,324 ) (4,250 ) (2,996 ) (2,074 ) -48.8 % (3,328 ) n/m Recoveries 2,247 2,001 1,777 246 12.3 % 470 26.4 % Net (charge-offs) recoveries (4,077 ) (2,249 ) (1,219 ) (1,828 ) -81.3 % (2,858 ) n/m Ending Balance $ 142,998 $ 139,367 $ 122,239 $ 3,631 2.6 % $ 20,759 17.0 % NET (CHARGE-OFFS) RECOVERIES Alabama (1) $ (341 ) $ (299 ) $ (268 ) $ (42 ) -14.0 % $ (73 ) -27.2 % Florida 277 180 (36 ) 97 53.9 % 313 n/m Mississippi (2) (1,489 ) (1,943 ) (775 ) 454 23.4 % (714 ) -92.1 % Tennessee (3) (179 ) (193 ) (124 ) 14 7.3 % (55 ) -44.4 % Texas (2,345 ) 6 (16 ) (2,351 ) n/m (2,329 ) n/m Total net (charge-offs) recoveries $ (4,077 ) $ (2,249 ) $ (1,219 ) $ (1,828 ) -81.3 % $ (2,858 ) n/m (1) Alabama includes the Georgia Loan Production Office. (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 March 31, 2024 ($ in thousands) (unaudited) Quarter Ended AVERAGE BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Securities AFS-taxable $ 1,927,619 $ 1,986,825 $ 2,049,006 $ 2,140,505 $ 2,187,121 Securities AFS-nontaxable — 4,246 4,779 4,796 4,812 Securities HTM-taxable 1,418,476 1,430,169 1,445,895 1,463,086 1,479,283 Securities HTM-nontaxable 340 340 907 1,718 4,509 Total securities 3,346,435 3,421,580 3,500,587 3,610,105 3,675,725 Loans (includes loans held for sale) 13,169,805 13,010,028 12,926,942 12,732,057 12,530,449 Fed funds sold and reverse repurchases 114 121 230 3,275 2,379 Other earning assets 571,215 670,477 682,644 903,027 647,760 Total earning assets 17,087,569 17,102,206 17,110,403 17,248,464 16,856,313 ACL LHFI (138,711 ) (133,742 ) (127,915 ) (121,960 ) (119,978 ) Other assets 1,730,521 1,749,069 1,721,310 1,648,583 1,762,449 Total assets $ 18,679,379 $ 18,717,533 $ 18,703,798 $ 18,775,087 $ 18,498,784 Interest-bearing demand deposits $ 5,291,779 $ 5,053,935 $ 4,875,714 $ 4,803,737 $ 4,751,154 Savings deposits 3,686,027 3,526,600 3,642,158 4,002,134 4,193,764 Time deposits 3,321,601 3,427,384 3,075,224 2,335,752 1,907,449 Total interest-bearing deposits 12,299,407 12,007,919 11,593,096 11,141,623 10,852,367 Fed funds purchased and repurchases 428,127 403,041 414,696 389,834 436,535 Other borrowings 463,459 590,765 912,151 1,330,010 1,110,843 Subordinated notes 123,501 123,446 123,391 123,337 123,281 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 Total interest-bearing liabilities 13,376,350 13,187,027 13,105,190 13,046,660 12,584,882 Noninterest-bearing deposits 3,120,566 3,296,351 3,429,815 3,595,927 3,813,248 Other liabilities 505,942 641,662 585,908 552,209 576,826 Total liabilities 17,002,858 17,125,040 17,120,913 17,194,796 16,974,956 Shareholders' equity 1,676,521 1,592,493 1,582,885 1,580,291 1,523,828 Total liabilities and equity $ 18,679,379 $ 18,717,533 $ 18,703,798 $ 18,775,087 $ 18,498,784 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) PERIOD END BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Cash and due from banks $ 606,261 $ 975,543 $ 750,492 $ 832,052 $ 1,297,144 Securities available for sale 1,702,299 1,762,878 1,766,174 1,871,883 1,984,162 Securities held to maturity 1,415,025 1,426,279 1,438,287 1,458,665 1,474,338 LHFS 172,937 184,812 169,244 181,094 175,926 LHFI 13,057,943 12,950,524 12,810,259 12,613,967 12,497,195 ACL LHFI (142,998 ) (139,367 ) (134,031 ) (129,298 ) (122,239 ) Net LHFI 12,914,945 12,811,157 12,676,228 12,484,669 12,374,956 Premises and equipment, net 232,924 232,537 230,718 227,630 223,975 Mortgage servicing rights 138,044 131,870 142,379 134,350 127,206 Goodwill 384,237 384,237 384,237 384,237 384,237 Identifiable intangible assets 2,845 2,965 3,093 3,222 3,352 Other real estate 7,620 6,867 5,485 1,137 1,684 Operating lease right-of-use assets 36,659 38,142 39,639 38,179 35,315 Other assets 762,816 764,902 784,863 805,508 794,883 Total assets $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 Deposits: Noninterest-bearing $ 3,039,652 $ 3,197,620 $ 3,320,124 $ 3,461,073 $ 3,797,055 Interest-bearing 12,298,905 12,372,143 11,781,799 11,452,827 10,986,606 Total deposits 15,338,557 15,569,763 15,101,923 14,913,900 14,783,661 Fed funds purchased and repurchases 393,215 405,745 321,799 311,179 477,980 Other borrowings 482,027 483,230 793,193 1,056,714 1,485,181 Subordinated notes 123,537 123,482 123,427 123,372 123,317 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 ACL on off-balance sheet credit exposures 33,865 34,057 34,945 34,841 34,596 Operating lease liabilities 40,185 41,584 42,730 40,845 37,988 Other liabilities 220,771 340,625 340,615 308,726 310,500 Total liabilities 16,694,013 17,060,342 16,820,488 16,851,433 17,315,079 Common stock 12,747 12,725 12,724 12,724 12,720 Capital surplus 160,521 159,688 158,316 156,834 155,297 Retained earnings 1,736,485 1,709,157 1,687,199 1,667,339 1,636,463 Accumulated other comprehensive income (loss), net of tax (227,154 ) (219,723 ) (287,888 ) (265,704 ) (242,381 ) Total shareholders' equity 1,682,599 1,661,847 1,570,351 1,571,193 1,562,099 Total liabilities and equity $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands except per share data) (unaudited) Quarter Ended INCOME STATEMENTS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Interest and fees on LHFS & LHFI-FTE $ 209,456 $ 210,288 $ 206,523 $ 192,941 $ 178,967 Interest on securities-taxable 15,634 15,936 16,624 16,779 16,761 Interest on securities-tax exempt-FTE 4 44 58 69 92 Interest on fed funds sold and reverse repurchases 1 2 3 45 30 Other interest income 8,110 9,918 8,613 12,077 6,527 Total interest income-FTE 233,205 236,188 231,821 221,911 202,377 Interest on deposits 83,716 80,847 69,797 54,409 40,898 Interest on fed funds purchased and repurchases 5,591 5,347 5,375 4,865 4,832 Other interest expense 7,703 9,946 14,713 19,350 15,575 Total interest expense 97,010 96,140 89,885 78,624 61,305 Net interest income-FTE 136,195 140,048 141,936 143,287 141,072 Provision for credit losses, LHFI 7,708 7,585 8,322 8,211 3,244 Provision for credit losses, off-balance sheet credit exposures (192 ) (888 ) 104 245 (2,242 ) Net interest income after provision-FTE 128,679 133,351 133,510 134,831 140,070 Service charges on deposit accounts 10,958 11,311 11,074 10,695 10,336 Bank card and other fees 7,428 8,502 8,217 8,917 7,803 Mortgage banking, net 8,915 5,519 6,458 6,600 7,639 Insurance commissions 15,464 13,197 15,303 14,764 14,305 Wealth management 8,952 8,657 8,773 8,882 8,780 Other, net 3,632 2,579 2,399 3,695 2,514 Securities gains (losses), net — 39 — — — Total noninterest income 55,349 49,804 52,224 53,553 51,377 Salaries and employee benefits 75,458 78,003 76,666 75,940 74,056 Services and fees 24,839 27,906 27,882 28,264 25,426 Net occupancy-premises 7,496 7,362 7,383 7,108 7,629 Equipment expense 6,385 6,517 6,816 6,404 6,405 Litigation settlement expense — — 6,500 — — Other expense 16,968 16,641 15,698 14,502 14,811 Total noninterest expense 131,146 136,429 140,945 132,218 128,327 Income before income taxes and tax eq adj 52,882 46,726 44,789 56,166 63,120 Tax equivalent adjustment 3,365 3,306 3,299 3,383 3,477 Income before income taxes 49,517 43,420 41,490 52,783 59,643 Income taxes 7,982 7,297 7,461 7,746 9,343 Net income $ 41,535 $ 36,123 $ 34,029 $ 45,037 $ 50,300 Per share data Earnings per share - basic $ 0.68 $ 0.59 $ 0.56 $ 0.74 $ 0.82 Earnings per share - diluted $ 0.68 $ 0.59 $ 0.56 $ 0.74 $ 0.82 Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 Weighted average shares outstanding Basic 61,128,425 61,070,481 61,069,750 61,063,277 61,011,059 Diluted 61,348,364 61,296,840 61,263,032 61,230,031 61,193,275 Period end shares outstanding 61,178,366 61,071,173 61,070,095 61,069,036 61,048,516 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Quarter Ended NONPERFORMING ASSETS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Nonaccrual LHFI Alabama (1) $ 23,261 $ 23,271 $ 23,530 $ 11,058 $ 10,919 Florida 585 170 151 334 256 Mississippi (2) 59,059 54,615 45,050 36,288 32,560 Tennessee (3) 1,800 1,802 1,841 5,088 5,416 Texas 13,646 20,150 20,327 22,259 23,224 Total nonaccrual LHFI 98,351 100,008 90,899 75,027 72,375 Other real estate Alabama (1) 1,050 1,397 315 — — Florida 71 — — — — Mississippi (2) 2,870 1,242 942 1,137 1,495 Tennessee (3) 86 — — — 189 Texas 3,543 4,228 4,228 — — Total other real estate 7,620 6,867 5,485 1,137 1,684 Total nonperforming assets $ 105,971 $ 106,875 $ 96,384 $ 76,164 $ 74,059 LOANS PAST DUE OVER 90 DAYS LHFI $ 5,243 $ 5,790 $ 3,804 $ 3,911 $ 2,255 LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 56,530 $ 51,243 $ 42,532 $ 35,766 $ 41,468 Quarter Ended ACL LHFI 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Beginning Balance $ 139,367 $ 134,031 $ 129,298 $ 122,239 $ 120,214 Provision for credit losses, LHFI 7,708 7,585 8,322 8,211 3,244 Charge-offs (6,324 ) (4,250 ) (7,496 ) (2,773 ) (2,996 ) Recoveries 2,247 2,001 3,907 1,621 1,777 Net (charge-offs) recoveries (4,077 ) (2,249 ) (3,589 ) (1,152 ) (1,219 ) Ending Balance $ 142,998 $ 139,367 $ 134,031 $ 129,298 $ 122,239 NET (CHARGE-OFFS) RECOVERIES Alabama (1) $ (341 ) $ (299 ) $ (165 ) $ (141 ) $ (268 ) Florida 277 180 21 (35 ) (36 ) Mississippi (2) (1,489 ) (1,943 ) (1,867 ) (762 ) (775 ) Tennessee (3) (179 ) (193 ) 2,127 (166 ) (124 ) Texas (2,345 ) 6 (3,705 ) (48 ) (16 ) Total net (charge-offs) recoveries $ (4,077 ) $ (2,249 ) $ (3,589 ) $ (1,152 ) $ (1,219 ) (1) Alabama includes the Georgia Loan Production Office. (2) Mississippi includes Central and Southern Mississippi Regions. (3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 (unaudited) Quarter Ended FINANCIAL RATIOS AND OTHER DATA 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Return on average equity 9.96 % 9.00 % 8.53 % 11.43 % 13.39 % Return on average tangible equity 12.98 % 11.92 % 11.32 % 15.18 % 18.03 % Return on average assets 0.89 % 0.77 % 0.72 % 0.96 % 1.10 % Interest margin - Yield - FTE 5.49 % 5.48 % 5.38 % 5.16 % 4.87 % Interest margin - Cost 2.28 % 2.23 % 2.08 % 1.83 % 1.47 % Net interest margin - FTE 3.21 % 3.25 % 3.29 % 3.33 % 3.39 % Efficiency ratio (1) 67.25 % 70.25 % 68.33 % 66.17 % 65.60 % Full-time equivalent employees 2,712 2,757 2,756 2,761 2,758 CREDIT QUALITY RATIOS Net (recoveries) charge-offs / average loans 0.12 % 0.07 % 0.11 % 0.04 % 0.04 % Provision for credit losses, LHFI / average loans 0.24 % 0.23 % 0.26 % 0.26 % 0.10 % Nonaccrual LHFI / (LHFI + LHFS) 0.74 % 0.76 % 0.70 % 0.59 % 0.57 % Nonperforming assets / (LHFI + LHFS) 0.80 % 0.81 % 0.74 % 0.60 % 0.58 % Nonperforming assets / (LHFI + LHFS + other real estate) 0.80 % 0.81 % 0.74 % 0.60 % 0.58 % ACL LHFI / LHFI 1.10 % 1.08 % 1.05 % 1.03 % 0.98 % ACL LHFI-commercial / commercial LHFI 0.93 % 0.85 % 0.86 % 0.84 % 0.80 % ACL LHFI-consumer / consumer and home mortgage LHFI 1.63 % 1.81 % 1.66 % 1.60 % 1.54 % ACL LHFI / nonaccrual LHFI 145.39 % 139.36 % 147.45 % 172.34 % 168.90 % ACL LHFI / nonaccrual LHFI (excl individually analyzed loans) 235.29 % 249.31 % 273.60 % 301.44 % 320.80 % CAPITAL RATIOS Total equity / total assets 9.16 % 8.88 % 8.54 % 8.53 % 8.28 % Tangible equity / tangible assets 7.20 % 6.95 % 6.57 % 6.56 % 6.35 % Tangible equity / risk-weighted assets 8.49 % 8.41 % 7.81 % 7.91 % 7.94 % Tier 1 leverage ratio 8.76 % 8.62 % 8.49 % 8.35 % 8.29 % Common equity tier 1 capital ratio 10.12 % 10.04 % 9.89 % 9.87 % 9.76 % Tier 1 risk-based capital ratio 10.51 % 10.44 % 10.29 % 10.27 % 10.17 % Total risk-based capital ratio 12.42 % 12.29 % 12.11 % 12.08 % 11.95 % STOCK PERFORMANCE Market value-Close $ 28.11 $ 27.88 $ 21.73 $ 21.12 $ 24.70 Book value $ 27.50 $ 27.21 $ 25.71 $ 25.73 $ 25.59 Tangible book value $ 21.18 $ 20.87 $ 19.37 $ 19.38 $ 19.24 (1) See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 1 - Securities Available for Sale and Held to Maturity The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity: 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 SECURITIES AVAILABLE FOR SALE U.S. Treasury securities $ 372,424 $ 372,368 $ 363,476 $ 362,966 $ 386,903 U.S. Government agency obligations 5,594 5,792 6,780 6,999 7,254 Obligations of states and political subdivisions — — 4,642 4,813 4,907 Mortgage-backed securities Residential mortgage pass-through securities Guaranteed by GNMA 22,232 23,135 22,881 25,336 26,851 Issued by FNMA and FHLMC 1,129,521 1,176,798 1,171,521 1,250,435 1,317,848 Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 79,099 86,074 90,402 98,388 108,192 Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 93,429 98,711 106,472 122,946 132,207 Total securities available for sale $ 1,702,299 $ 1,762,878 $ 1,766,174 $ 1,871,883 $ 1,984,162 SECURITIES HELD TO MATURITY U.S. Treasury securities $ 29,261 $ 29,068 $ 28,872 $ 28,679 $ 28,486 Obligations of states and political subdivisions 340 340 341 1,180 4,507 Mortgage-backed securities Residential mortgage pass-through securities Guaranteed by GNMA 18,387 13,005 13,090 13,235 4,336 Issued by FNMA and FHLMC 461,457 469,593 474,003 484,679 497,854 Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 146,447 154,466 162,031 171,002 179,334 Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 759,133 759,807 759,950 759,890 759,821 Total securities held to maturity $ 1,415,025 $ 1,426,279 $ 1,438,287 $ 1,458,665 $ 1,474,338 At March 31, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $54.8 million. Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.99% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 2 – Loan Composition LHFI consisted of the following during the periods presented: LHFI BY TYPE 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Loans secured by real estate: Construction, land development and other land loans $ 1,539,461 $ 1,510,679 $ 1,609,326 $ 1,722,657 $ 1,723,772 Secured by 1-4 family residential properties 2,891,481 2,904,715 2,893,606 2,854,182 2,822,048 Secured by nonfarm, nonresidential properties 3,543,235 3,489,434 3,569,671 3,471,728 3,375,579 Other real estate secured 1,384,610 1,312,551 1,218,499 954,410 847,527 Commercial and industrial loans 1,922,711 1,922,910 1,828,924 1,883,480 1,882,360 Consumer loans 156,430 161,725 161,940 163,788 162,911 State and other political subdivision loans 1,052,844 1,088,466 1,056,569 1,111,710 1,193,727 Other loans and leases 567,171 560,044 471,724 452,012 489,271 LHFI 13,057,943 12,950,524 12,810,259 12,613,967 12,497,195 ACL LHFI (142,998 ) (139,367 ) (134,031 ) (129,298 ) (122,239 ) Net LHFI $ 12,914,945 $ 12,811,157 $ 12,676,228 $ 12,484,669 $ 12,374,956 The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region’s diversified mix of loans: March 31, 2024 LHFI - COMPOSITION BY REGION Total Alabama (1) 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 $ 1,539,461 $ 753,918 $ 38,790 $ 391,843 $ 40,988 $ 313,922 Secured by 1-4 family residential properties 2,891,481 154,303 54,099 2,565,424 83,292 34,363 Secured by nonfarm, nonresidential properties 3,543,235 981,921 233,109 1,485,304 150,017 692,884 Other real estate secured 1,384,610 561,115 1,728 417,757 6,965 397,045 Commercial and industrial loans 1,922,711 657,294 23,941 841,797 150,313 249,366 Consumer loans 156,430 21,302 7,399 95,951 18,178 13,600 State and other political subdivision loans 1,052,844 70,161 52,069 782,985 23,700 123,929 Other loans and leases 567,171 236,775 8,202 200,957 57,098 64,139 Loans $ 13,057,943 $ 3,436,789 $ 419,337 $ 6,782,018 $ 530,551 $ 1,889,248 CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION Lots $ 70,445 $ 28,830 $ 8,196 $ 17,829 $ 4,587 $ 11,003 Development 122,788 56,825 1,260 28,668 12,576 23,459 Unimproved land 110,272 20,907 13,404 29,759 8,006 38,196 1-4 family construction 313,503 162,760 13,501 91,453 15,693 30,096 Other construction 922,453 484,596 2,429 224,134 126 211,168 Construction, land development and other land loans $ 1,539,461 $ 753,918 $ 38,790 $ 391,843 $ 40,988 $ 313,922 (1) Includes Georgia Loan Production Office. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 2 – Loan Composition (continued) March 31, 2024 Total Alabama (1) Florida Mississippi (Central and Southern Regions) Tennessee (Memphis, TN and Northern MS Regions) Texas LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION Non-owner occupied: Retail $ 367,575 $ 139,444 $ 24,147 $ 106,123 $ 17,381 $ 80,480 Office 261,984 101,364 19,605 73,689 1,617 65,709 Hotel/motel 255,925 128,356 48,992 53,054 25,523 — Mini-storage 165,962 40,724 1,864 103,323 745 19,306 Industrial 438,626 83,304 19,377 147,199 8,143 180,603 Health care 97,837 69,786 684 24,707 331 2,329 Convenience stores 25,572 3,214 419 13,599 239 8,101 Nursing homes/senior living 513,854 227,254 — 186,507 4,724 95,369 Other 109,838 31,790 9,067 51,626 8,211 9,144 Total non-owner occupied loans 2,237,173 825,236 124,155 759,827 66,914 461,041 Owner-occupied: Office 150,283 41,047 37,629 41,658 11,555 18,394 Churches 56,697 14,208 4,094 32,706 3,215 2,474 Industrial warehouses 156,148 11,553 4,537 39,874 15,766 84,418 Health care 124,330 11,337 8,163 85,172 2,251 17,407 Convenience stores 148,158 12,172 29,156 72,715 — 34,115 Retail 88,445 9,457 15,287 35,730 17,087 10,884 Restaurants 48,491 4,008 2,930 21,360 16,367 3,826 Auto dealerships 42,394 5,138 194 21,007 16,055 — Nursing homes/senior living 353,641 35,216 — 292,264 — 26,161 Other 137,475 12,549 6,964 82,991 807 34,164 Total owner-occupied loans 1,306,062 156,685 108,954 725,477 83,103 231,843 Loans secured by nonfarm, nonresidential properties $ 3,543,235 $ 981,921 $ 233,109 $ 1,485,304 $ 150,017 $ 692,884 (1) Includes Georgia Loan Production Office. Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Securities – taxable 1.88 % 1.85 % 1.89 % 1.87 % 1.85 % Securities – nontaxable 4.73 % 3.81 % 4.05 % 4.25 % 4.00 % Securities – total 1.88 % 1.85 % 1.89 % 1.87 % 1.86 % LHFI & LHFS 6.40 % 6.41 % 6.34 % 6.08 % 5.79 % Fed funds sold & reverse repurchases 3.53 % 6.56 % 5.17 % 5.51 % 5.11 % Other earning assets 5.71 % 5.87 % 5.01 % 5.36 % 4.09 % Total earning assets 5.49 % 5.48 % 5.38 % 5.16 % 4.87 % Interest-bearing deposits 2.74 % 2.67 % 2.39 % 1.96 % 1.53 % Fed funds purchased & repurchases 5.25 % 5.26 % 5.14 % 5.01 % 4.49 % Other borrowings 4.78 % 5.08 % 5.32 % 5.12 % 4.87 % Total interest-bearing liabilities 2.92 % 2.89 % 2.72 % 2.42 % 1.98 % Total Deposits 2.18 % 2.10 % 1.84 % 1.48 % 1.13 % Net interest margin 3.21 % 3.25 % 3.29 % 3.33 % 3.39 % TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities (continued) 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. The net interest margin decreased four basis points when compared to the fourth quarter of 2023, totaling 3.21% for the first quarter of 2024, primarily due to increased costs of interest-bearing deposits which resulted from the higher interest rate environment. Note 4 – Mortgage Banking Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $1.1 million during the first quarter of 2024. The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Mortgage servicing income, net $ 6,934 $ 6,731 $ 6,916 $ 6,764 $ 6,785 Change in fair value-MSR from runoff (1,926 ) (2,972 ) (3,203 ) (2,710 ) (1,145 ) Gain on sales of loans, net. 5,009 3,913 3,748 3,887 3,797 Mortgage banking income before hedge ineffectiveness 10,017 7,672 7,461 7,941 9,437 Change in fair value-MSR from market changes 5,123 (10,224 ) 6,809 5,898 (3,972 ) Change in fair value of derivatives (6,225 ) 8,071 (7,812 ) (7,239 ) 2,174 Net positive (negative) hedge ineffectiveness (1,102 ) (2,153 ) (1,003 ) (1,341 ) (1,798 ) Mortgage banking, net $ 8,915 $ 5,519 $ 6,458 $ 6,600 $ 7,639 TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 5 – Other Noninterest Income and Expense Other noninterest income consisted of the following for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Partnership amortization for tax credit purposes $ (1,834 ) $ (2,013 ) $ (1,995 ) $ (2,019 ) $ (1,961 ) Increase in life insurance cash surrender value 1,844 1,825 1,784 1,716 1,693 Other miscellaneous income 3,622 2,767 2,610 3,998 2,782 Total other, net $ 3,632 $ 2,579 $ 2,399 $ 3,695 $ 2,514 Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense. Other noninterest expense consisted of the following for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Loan expense $ 2,955 $ 2,380 $ 3,130 $ 3,066 $ 2,538 Amortization of intangibles 120 128 129 130 288 FDIC assessment expense 4,509 4,844 3,765 2,550 2,370 Other real estate expense, net 671 (184 ) (40 ) 171 172 Other miscellaneous expense 8,713 9,473 8,714 8,585 9,443 Total other expense $ 16,968 $ 16,641 $ 15,698 $ 14,502 $ 14,811 Note 6 – Non-GAAP Financial Measures In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable. Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands except per share data) (unaudited) Note 6 – Non-GAAP Financial Measures (continued) Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 TANGIBLE EQUITY AVERAGE BALANCES Total shareholders' equity $ 1,676,521 $ 1,592,493 $ 1,582,885 $ 1,580,291 $ 1,523,828 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,920 ) (3,044 ) (3,174 ) (3,301 ) (3,523 ) Total average tangible equity $ 1,289,364 $ 1,205,212 $ 1,195,474 $ 1,192,753 $ 1,136,068 PERIOD END BALANCES Total shareholders' equity $ 1,682,599 $ 1,661,847 $ 1,570,351 $ 1,571,193 $ 1,562,099 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,845 ) (2,965 ) (3,093 ) (3,222 ) (3,352 ) Total tangible equity (a) $ 1,295,517 $ 1,274,645 $ 1,183,021 $ 1,183,734 $ 1,174,510 TANGIBLE ASSETS Total assets $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,845 ) (2,965 ) (3,093 ) (3,222 ) (3,352 ) Total tangible assets (b) $ 17,989,530 $ 18,334,987 $ 18,003,509 $ 18,035,167 $ 18,489,589 Risk-weighted assets (c) $ 15,257,385 $ 15,153,263 $ 15,143,531 $ 14,966,614 $ 14,793,893 NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION Net income (loss) $ 41,535 $ 36,123 $ 34,029 $ 45,037 $ 50,300 Plus: Intangible amortization net of tax 90 96 96 97 216 Net income (loss) adjusted for intangible amortization $ 41,625 $ 36,219 $ 34,125 $ 45,134 $ 50,516 Period end common shares outstanding (d) 61,178,366 61,071,173 61,070,095 61,069,036 61,048,516 TANGIBLE COMMON EQUITY MEASUREMENTS Return on average tangible equity (1) 12.98 % 11.92 % 11.32 % 15.18 % 18.03 % Tangible equity/tangible assets (a)/(b) 7.20 % 6.95 % 6.57 % 6.56 % 6.35 % Tangible equity/risk-weighted assets (a)/(c) 8.49 % 8.41 % 7.81 % 7.91 % 7.94 % Tangible book value (a)/(d)*1,000 $ 21.18 $ 20.87 $ 19.37 $ 19.38 $ 19.24 COMMON EQUITY TIER 1 CAPITAL (CET1) Total shareholders' equity $ 1,682,599 $ 1,661,847 $ 1,570,351 $ 1,571,193 $ 1,562,099 CECL transition adjustment 6,500 13,000 13,000 13,000 13,000 AOCI-related adjustments 227,154 219,723 287,888 265,704 242,381 CET1 adjustments and deductions: Goodwill net of associated deferred tax liabilities (DTLs) (370,205 ) (370,212 ) (370,219 ) (370,227 ) (370,234 ) Other adjustments and deductions for CET1 (2) (2,588 ) (2,693 ) (2,803 ) (2,915 ) (3,275 ) CET1 capital (e) 1,543,460 1,521,665 1,498,217 1,476,755 1,443,971 Additional tier 1 capital instruments plus related surplus 60,000 60,000 60,000 60,000 60,000 Tier 1 capital $ 1,603,460 $ 1,581,665 $ 1,558,217 $ 1,536,755 $ 1,503,971 Common equity tier 1 capital ratio (e)/(c) 10.12 % 10.04 % 9.89 % 9.87 % 9.76 % (1) Calculation = ((net income (loss) 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 March 31, 2024 ($ in thousands except per share data) (unaudited) Note 6 – Non-GAAP Financial Measures (continued) Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure. The following table presents pre-provision net revenue (PPNR) during the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net interest income (GAAP) $ 132,830 $ 136,742 $ 138,637 $ 139,904 $ 137,595 Noninterest income (GAAP) 55,349 49,804 52,224 53,553 51,377 Pre-provision revenue (a) $ 188,179 $ 186,546 $ 190,861 $ 193,457 $ 188,972 Noninterest expense (GAAP) $ 131,146 $ 136,429 $ 140,945 $ 132,218 $ 128,327 Less: Reduction in force expense — (1,406 ) — — — Litigation settlement expense — — (6,500 ) — — Adjusted noninterest expense - PPNR (Non-GAAP) (b) $ 131,146 $ 135,023 $ 134,445 $ 132,218 $ 128,327 PPNR (Non-GAAP) (a)-(b) $ 57,033 $ 51,523 $ 56,416 $ 61,239 $ 60,645 The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Total noninterest expense (GAAP) $ 131,146 $ 136,429 $ 140,945 $ 132,218 $ 128,327 Less: Other real estate expense, net (671 ) 184 40 (171 ) (172 ) Amortization of intangibles (120 ) (128 ) (129 ) (130 ) (288 ) Charitable contributions resulting in state tax credits (300 ) (325 ) (325 ) (325 ) (325 ) Reduction in force expense — (1,406 ) — — — Litigation settlement expense — — (6,500 ) — — Adjusted noninterest expense (Non-GAAP) (c) $ 130,055 $ 134,754 $ 134,031 $ 131,592 $ 127,542 Net interest income (GAAP) $ 132,830 $ 136,742 $ 138,637 $ 139,904 $ 137,595 Add: Tax equivalent adjustment 3,365 3,306 3,299 3,383 3,477 Net interest income-FTE (Non-GAAP) (a) $ 136,195 $ 140,048 $ 141,936 $ 143,287 $ 141,072 Noninterest income (GAAP) $ 55,349 $ 49,804 $ 52,224 $ 53,553 $ 51,377 Add: Partnership amortization for tax credit purposes 1,834 2,013 1,995 2,019 1,961 Less: Securities (gains) losses, net — (39 ) — — — Adjusted noninterest income (Non-GAAP) (b) $ 57,183 $ 51,778 $ 54,219 $ 55,572 $ 53,338 Adjusted revenue (Non-GAAP) (a)+(b) $ 193,378 $ 191,826 $ 196,155 $ 198,859 $ 194,410 Efficiency ratio (Non-GAAP) (c)/((a)+(b)) 67.25 % 70.25 % 68.33 % 66.17 % 65.60 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240423449062/en/Contacts Trustmark Investor Contacts: Thomas C. Owens Treasurer and Principal Financial Officer 601-208-7853 F. Joseph Rein, Jr. Senior Vice President 601-208-6898 Trustmark Media Contact: Melanie A. Morgan Senior Vice President 601-208-2979 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Trustmark Corporation Announces First Quarter 2024 Financial Results By: Trustmark Corporation via Business Wire April 23, 2024 at 16:35 PM EDT Loan Growth Moderates, Credit Quality Remains Stable Solid Growth in Fee Income and Disciplined Expense Management Reflected in Financial Results Trustmark Corporation (NASDAQGS:TRMK) reported net income of $41.5 million in the first quarter of 2024, representing diluted earnings per share of $0.68. Trustmark’s performance during the first quarter produced a return on average tangible equity of 12.98% and a return on average assets of 0.89%. The Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2024, to shareholders of record on June 1, 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423449062/en/ Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/53946039/en First Quarter Highlights Loans held for investment increased 0.8% linked-quarter and represented 85.1% of total deposits at March 31, 2024 Credit quality remained solid Revenue totaled $188.2 million, up 0.9% linked-quarter Noninterest income increased 11.1% linked-quarter, reflecting seasonal increases and the strength of diversified business lines Noninterest expense decreased 3.9% linked-quarter, reflecting on-going expense management priorities Duane A. Dewey, President and CEO, stated, “We are off to a great start in 2024. Our first quarter results reflect continued loan growth, solid credit quality, and double-digit increases in noninterest income. In addition, we experienced a meaningful decrease in noninterest expense. These accomplishments are the results of our focused efforts to expand customer relationships and diligently manage expenses. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as our customers’ financial partner. We are well positioned to serve and expand our customer base and create long-term value for shareholders.” Balance Sheet Management Loans held for investment (HFI) increased $107.4 million, or 0.8%, during the quarter Total deposits decreased $231.2 million, or 1.5%, during the quarter Maintained strong capital position with CET1 ratio of 10.12% and total risk-based capital ratio of 12.42% Loans HFI totaled $13.1 billion at March 31, 2024, reflecting an increase of $107.4 million, or 0.8%, linked-quarter and $560.7 million, or 4.5%, year-over-year. The linked-quarter growth reflected increases in commercial real estate and equipment finance loans offset in part by reductions in state and other political subdivision loans and consumer loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography. Deposits totaled $15.3 billion at March 31, 2024, down $231.2 million, or 1.5%, from the prior quarter and up $554.9 million, or 3.8%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 85.1% of total deposits at March 31, 2024. Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 19.8% of total deposits at March 31, 2024. Interest-bearing deposit costs totaled 2.74% for the first quarter, an increase of 7 basis points linked-quarter, while the total cost of deposits was 2.18%, an increase of 8 basis points linked-quarter. The total cost of interest-bearing liabilities in the first quarter was 2.92%, up 3 basis points from the prior quarter. During the first quarter, Trustmark did not repurchase any of its outstanding common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2024. At March 31, 2024, Trustmark’s tangible equity to tangible assets ratio was 7.20%, while the total risk-based capital ratio was 12.42%. Tangible book value per share was $21.18 at March 31, 2024, an increase of 1.5% from the prior quarter and 10.1% from the prior year. Credit Quality Net charge-offs totaled $4.1 million, representing 0.12% of average loans in the first quarter Provision for credit losses for loans HFI was $7.7 million in the first quarter Allowance for credit losses (ACL) represented 1.10% of loans HFI and 235.29% of nonaccrual loans, excluding individually analyzed loans at March 31, 2024 Nonaccrual loans totaled $98.4 million at March 31, 2024, down $1.7 million from the prior quarter and an increase of $26.0 million year-over-year. Other real estate totaled $7.6 million, reflecting increases of $753 thousand and $5.9 million from the prior quarter and prior year, respectively. Collectively, nonperforming assets totaled $106.0 million, representing 0.80% of loans HFI and held for sale (HFS) at March 31, 2024. The provision for credit losses for loans HFI was $7.7 million in the first quarter and was primarily attributable to loan growth, changes in the macroeconomic forecast, and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was a negative $192 thousand in the first quarter. Collectively, the provision for credit losses totaled $7.5 million in the first quarter compared to $6.7 million in the prior quarter and $1.0 million in the first quarter of 2023. Allocation of Trustmark’s $143.0 million ACL on loans HFI represented 0.93% of commercial loans and 1.63% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.10% at March 31, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio. Revenue Generation Net interest income (FTE) totaled $136.2 million in the first quarter, down 2.8% linked-quarter Net interest margin totaled 3.21% in the first quarter, down 4 basis points from the prior quarter Noninterest income increased 11.1% linked-quarter to total $55.3 million, reflecting growth in mortgage banking, insurance, other income, and wealth management revenue Revenue in the first quarter totaled $188.2 million, an increase of 0.9% from the prior quarter and a decrease of 0.4% from the same quarter in the prior year. The linked-quarter increase primarily reflects higher noninterest income offset in part by lower net interest income while the year-over-year decrease is attributed to lower net interest income offset in part by growth in noninterest income. Net interest income (FTE) in the first quarter totaled $136.2 million, resulting in a net interest margin of 3.21%, down 4 basis points from the prior quarter. The decrease in the net interest margin was primarily due to increased costs of interest-bearing liabilities. Noninterest income in the first quarter totaled $55.3 million, an increase of $5.5 million, or 11.1%, from the prior quarter and $4.0 million, or 7.7%, year-over-year. The linked-quarter increases in mortgage banking, insurance, other income, and wealth management revenue were offset in part by declines in bank card and other fees and service charges on deposit accounts. The increase in noninterest income year-over-year is broad-based, reflecting increases in mortgage banking, insurance, other income, service charges of deposit accounts and wealth management revenue which were offset in part by declines in bank card and other fees. Mortgage loan production in the first quarter totaled $274.0 million, up 0.8% from the prior quarter and down 24.1% year-over-year. Mortgage banking revenue totaled $8.9 million in the first quarter, an increase of $3.4 million linked-quarter and $1.3 million year-over-year. The linked-quarter increase was principally attributable to increased gain on sales of mortgage loans, improvement in net negative hedge ineffectiveness, and reduced servicing asset amortization. The year-over-year increase was principally due to increased gain on sales of mortgage loans. Insurance revenue totaled $15.5 million in the first quarter, up $2.3 million, or 17.2%, from the prior quarter and $1.2 million, or 8.1%, year-over-year. The linked-quarter and year-over-year increases primarily reflected growth in commercial property and casualty commissions. Wealth management revenue in the first quarter totaled $9.0 million, an increase of $295 thousand, or 3.4%, from the prior quarter and $172 thousand, or 2.0%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year growth reflected increased brokerage revenue. Other income, net totaled $3.6 million in the first quarter, up $1.1 million from both the prior quarter and year-over-year. Service charges on deposit accounts totaled $11.0 million in the first quarter, reflecting a seasonal decrease of $353 thousand, or 3.1%, from the prior quarter and an increase of $622 thousand, or 6.0%, year-over-year. Bank card and other fees totaled $7.4 million in the first quarter, down $1.1 million from the prior quarter due principally to lower customer derivative revenue. Year-over-year, bank card and other fees declined $375 thousand. Noninterest Expense Total noninterest expense declined $5.3 million, or 3.9%, linked-quarter Salary and employee benefit expense declined $2.5 million, or 3.3%, linked-quarter Total services and fees declined $3.1 million, or 11.0%, linked-quarter Noninterest expense in the first quarter totaled $131.1 million, a decrease of $5.3 million, or 3.9%, from the prior quarter and an increase of $2.8 million, or 2.2%, year-over-year. Salary and employee benefit expense totaled $75.5 million in the first quarter, a decline of $2.5 million, or 3.3%, linked-quarter and an increase of $1.4 million, or 1.9%, year-over-year. The linked-quarter decline reflected reductions in incentives, severance, medical insurance, and salary expense, which were offset in part by a seasonal increase in payroll taxes and restricted stock compensation expense. Services and fees in the first quarter totaled $24.8 million, a decrease of $3.1 million, or 11.0%, from the prior quarter and $587 thousand, or 2.3%, year-over-year. The linked-quarter decline is attributable principally to lower professional fees and data processing software expense. Additional Information As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 24, 2024, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, May 8, 2024, in archived format at the same web address or by calling (877) 344-7529, passcode 4820621. Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Forward-Looking Statements Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international 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, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, 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 impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain 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, 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, 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 CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Linked Quarter Year over Year QUARTERLY AVERAGE BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Securities AFS-taxable $ 1,927,619 $ 1,986,825 $ 2,187,121 $ (59,206 ) -3.0 % $ (259,502 ) -11.9 % Securities AFS-nontaxable — 4,246 4,812 (4,246 ) -100.0 % (4,812 ) -100.0 % Securities HTM-taxable 1,418,476 1,430,169 1,479,283 (11,693 ) -0.8 % (60,807 ) -4.1 % Securities HTM-nontaxable 340 340 4,509 — 0.0 % (4,169 ) -92.5 % Total securities 3,346,435 3,421,580 3,675,725 (75,145 ) -2.2 % (329,290 ) -9.0 % Loans (includes loans held for sale) 13,169,805 13,010,028 12,530,449 159,777 1.2 % 639,356 5.1 % Fed funds sold and reverse repurchases 114 121 2,379 (7 ) -5.8 % (2,265 ) -95.2 % Other earning assets 571,215 670,477 647,760 (99,262 ) -14.8 % (76,545 ) -11.8 % Total earning assets 17,087,569 17,102,206 16,856,313 (14,637 ) -0.1 % 231,256 1.4 % Allowance for credit losses (ACL), loans held for investment (LHFI) (138,711 ) (133,742 ) (119,978 ) (4,969 ) -3.7 % (18,733 ) -15.6 % Other assets 1,730,521 1,749,069 1,762,449 (18,548 ) -1.1 % (31,928 ) -1.8 % Total assets $ 18,679,379 $ 18,717,533 $ 18,498,784 $ (38,154 ) -0.2 % $ 180,595 1.0 % Interest-bearing demand deposits $ 5,291,779 $ 5,053,935 $ 4,751,154 $ 237,844 4.7 % $ 540,625 11.4 % Savings deposits 3,686,027 3,526,600 4,193,764 159,427 4.5 % (507,737 ) -12.1 % Time deposits 3,321,601 3,427,384 1,907,449 (105,783 ) -3.1 % 1,414,152 74.1 % Total interest-bearing deposits 12,299,407 12,007,919 10,852,367 291,488 2.4 % 1,447,040 13.3 % Fed funds purchased and repurchases 428,127 403,041 436,535 25,086 6.2 % (8,408 ) -1.9 % Other borrowings 463,459 590,765 1,110,843 (127,306 ) -21.5 % (647,384 ) -58.3 % Subordinated notes 123,501 123,446 123,281 55 0.0 % 220 0.2 % Junior subordinated debt securities 61,856 61,856 61,856 — 0.0 % — 0.0 % Total interest-bearing liabilities 13,376,350 13,187,027 12,584,882 189,323 1.4 % 791,468 6.3 % Noninterest-bearing deposits 3,120,566 3,296,351 3,813,248 (175,785 ) -5.3 % (692,682 ) -18.2 % Other liabilities 505,942 641,662 576,826 (135,720 ) -21.2 % (70,884 ) -12.3 % Total liabilities 17,002,858 17,125,040 16,974,956 (122,182 ) -0.7 % 27,902 0.2 % Shareholders' equity 1,676,521 1,592,493 1,523,828 84,028 5.3 % 152,693 10.0 % Total liabilities and equity $ 18,679,379 $ 18,717,533 $ 18,498,784 $ (38,154 ) -0.2 % $ 180,595 1.0 % n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Linked Quarter Year over Year PERIOD END BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Cash and due from banks $ 606,261 $ 975,543 $ 1,297,144 $ (369,282 ) -37.9 % $ (690,883 ) -53.3 % Securities available for sale 1,702,299 1,762,878 1,984,162 (60,579 ) -3.4 % (281,863 ) -14.2 % Securities held to maturity 1,415,025 1,426,279 1,474,338 (11,254 ) -0.8 % (59,313 ) -4.0 % Loans held for sale (LHFS) 172,937 184,812 175,926 (11,875 ) -6.4 % (2,989 ) -1.7 % Loans held for investment (LHFI) 13,057,943 12,950,524 12,497,195 107,419 0.8 % 560,748 4.5 % ACL LHFI (142,998 ) (139,367 ) (122,239 ) (3,631 ) -2.6 % (20,759 ) -17.0 % Net LHFI 12,914,945 12,811,157 12,374,956 103,788 0.8 % 539,989 4.4 % Premises and equipment, net 232,924 232,537 223,975 387 0.2 % 8,949 4.0 % Mortgage servicing rights 138,044 131,870 127,206 6,174 4.7 % 10,838 8.5 % Goodwill 384,237 384,237 384,237 — 0.0 % — 0.0 % Identifiable intangible assets 2,845 2,965 3,352 (120 ) -4.0 % (507 ) -15.1 % Other real estate 7,620 6,867 1,684 753 11.0 % 5,936 n/m Operating lease right-of-use assets 36,659 38,142 35,315 (1,483 ) -3.9 % 1,344 3.8 % Other assets 762,816 764,902 794,883 (2,086 ) -0.3 % (32,067 ) -4.0 % Total assets $ 18,376,612 $ 18,722,189 $ 18,877,178 $ (345,577 ) -1.8 % $ (500,566 ) -2.7 % Deposits: Noninterest-bearing $ 3,039,652 $ 3,197,620 $ 3,797,055 $ (157,968 ) -4.9 % $ (757,403 ) -19.9 % Interest-bearing 12,298,905 12,372,143 10,986,606 (73,238 ) -0.6 % 1,312,299 11.9 % Total deposits 15,338,557 15,569,763 14,783,661 (231,206 ) -1.5 % 554,896 3.8 % Fed funds purchased and repurchases 393,215 405,745 477,980 (12,530 ) -3.1 % (84,765 ) -17.7 % Other borrowings 482,027 483,230 1,485,181 (1,203 ) -0.2 % (1,003,154 ) -67.5 % Subordinated notes 123,537 123,482 123,317 55 0.0 % 220 0.2 % Junior subordinated debt securities 61,856 61,856 61,856 — 0.0 % — 0.0 % ACL on off-balance sheet credit exposures 33,865 34,057 34,596 (192 ) -0.6 % (731 ) -2.1 % Operating lease liabilities 40,185 41,584 37,988 (1,399 ) -3.4 % 2,197 5.8 % Other liabilities 220,771 340,625 310,500 (119,854 ) -35.2 % (89,729 ) -28.9 % Total liabilities 16,694,013 17,060,342 17,315,079 (366,329 ) -2.1 % (621,066 ) -3.6 % Common stock 12,747 12,725 12,720 22 0.2 % 27 0.2 % Capital surplus 160,521 159,688 155,297 833 0.5 % 5,224 3.4 % Retained earnings 1,736,485 1,709,157 1,636,463 27,328 1.6 % 100,022 6.1 % Accumulated other comprehensive income (loss), net of tax (227,154 ) (219,723 ) (242,381 ) (7,431 ) -3.4 % 15,227 6.3 % Total shareholders' equity 1,682,599 1,661,847 1,562,099 20,752 1.2 % 120,500 7.7 % Total liabilities and equity $ 18,376,612 $ 18,722,189 $ 18,877,178 $ (345,577 ) -1.8 % $ (500,566 ) -2.7 % n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year INCOME STATEMENTS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Interest and fees on LHFS & LHFI-FTE $ 209,456 $ 210,288 $ 178,967 $ (832 ) -0.4 % $ 30,489 17.0 % Interest on securities-taxable 15,634 15,936 16,761 (302 ) -1.9 % (1,127 ) -6.7 % Interest on securities-tax exempt-FTE 4 44 92 (40 ) -90.9 % (88 ) -95.7 % Interest on fed funds sold and reverse repurchases 1 2 30 (1 ) -50.0 % (29 ) -96.7 % Other interest income 8,110 9,918 6,527 (1,808 ) -18.2 % 1,583 24.3 % Total interest income-FTE 233,205 236,188 202,377 (2,983 ) -1.3 % 30,828 15.2 % Interest on deposits 83,716 80,847 40,898 2,869 3.5 % 42,818 n/m Interest on fed funds purchased and repurchases 5,591 5,347 4,832 244 4.6 % 759 15.7 % Other interest expense 7,703 9,946 15,575 (2,243 ) -22.6 % (7,872 ) -50.5 % Total interest expense 97,010 96,140 61,305 870 0.9 % 35,705 58.2 % Net interest income-FTE 136,195 140,048 141,072 (3,853 ) -2.8 % (4,877 ) -3.5 % Provision for credit losses, LHFI 7,708 7,585 3,244 123 1.6 % 4,464 n/m Provision for credit losses, off-balance sheet credit exposures (192 ) (888 ) (2,242 ) 696 78.4 % 2,050 91.4 % Net interest income after provision-FTE 128,679 133,351 140,070 (4,672 ) -3.5 % (11,391 ) -8.1 % Service charges on deposit accounts 10,958 11,311 10,336 (353 ) -3.1 % 622 6.0 % Bank card and other fees 7,428 8,502 7,803 (1,074 ) -12.6 % (375 ) -4.8 % Mortgage banking, net 8,915 5,519 7,639 3,396 61.5 % 1,276 16.7 % Insurance commissions 15,464 13,197 14,305 2,267 17.2 % 1,159 8.1 % Wealth management 8,952 8,657 8,780 295 3.4 % 172 2.0 % Other, net 3,632 2,579 2,514 1,053 40.8 % 1,118 44.5 % Securities gains (losses), net — 39 — (39 ) -100.0 % — n/m Total noninterest income 55,349 49,804 51,377 5,545 11.1 % 3,972 7.7 % Salaries and employee benefits 75,458 78,003 74,056 (2,545 ) -3.3 % 1,402 1.9 % Services and fees 24,839 27,906 25,426 (3,067 ) -11.0 % (587 ) -2.3 % Net occupancy-premises 7,496 7,362 7,629 134 1.8 % (133 ) -1.7 % Equipment expense 6,385 6,517 6,405 (132 ) -2.0 % (20 ) -0.3 % Other expense 16,968 16,641 14,811 327 2.0 % 2,157 14.6 % Total noninterest expense 131,146 136,429 128,327 (5,283 ) -3.9 % 2,819 2.2 % Income before income taxes and tax eq adj 52,882 46,726 63,120 6,156 13.2 % (10,238 ) -16.2 % Tax equivalent adjustment 3,365 3,306 3,477 59 1.8 % (112 ) -3.2 % Income before income taxes 49,517 43,420 59,643 6,097 14.0 % (10,126 ) -17.0 % Income taxes 7,982 7,297 9,343 685 9.4 % (1,361 ) -14.6 % Net income $ 41,535 $ 36,123 $ 50,300 $ 5,412 15.0 % $ (8,765 ) -17.4 % Per share data Earnings per share - basic $ 0.68 $ 0.59 $ 0.82 $ 0.09 15.3 % $ (0.14 ) -17.1 % Earnings per share - diluted $ 0.68 $ 0.59 $ 0.82 $ 0.09 15.3 % $ (0.14 ) -17.1 % Dividends per share $ 0.23 $ 0.23 $ 0.23 — 0.0 % — 0.0 % Weighted average shares outstanding Basic 61,128,425 61,070,481 61,011,059 Diluted 61,348,364 61,296,840 61,193,275 Period end shares outstanding 61,178,366 61,071,173 61,048,516 n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year NONPERFORMING ASSETS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Nonaccrual LHFI Alabama (1) $ 23,261 $ 23,271 $ 10,919 $ (10 ) 0.0 % $ 12,342 n/m Florida 585 170 256 415 n/m 329 n/m Mississippi (2) 59,059 54,615 32,560 4,444 8.1 % 26,499 81.4 % Tennessee (3) 1,800 1,802 5,416 (2 ) -0.1 % (3,616 ) -66.8 % Texas 13,646 20,150 23,224 (6,504 ) -32.3 % (9,578 ) -41.2 % Total nonaccrual LHFI 98,351 100,008 72,375 (1,657 ) -1.7 % 25,976 35.9 % Other real estate Alabama (1) 1,050 1,397 — (347 ) -24.8 % 1,050 n/m Florida 71 — — 71 n/m 71 n/m Mississippi (2) 2,870 1,242 1,495 1,628 n/m 1,375 92.0 % Tennessee (3) 86 — 189 86 n/m (103 ) -54.5 % Texas 3,543 4,228 — (685 ) -16.2 % 3,543 n/m Total other real estate 7,620 6,867 1,684 753 11.0 % 5,936 n/m Total nonperforming assets $ 105,971 $ 106,875 $ 74,059 $ (904 ) -0.8 % $ 31,912 43.1 % LOANS PAST DUE OVER 90 DAYS LHFI $ 5,243 $ 5,790 $ 2,255 $ (547 ) -9.4 % $ 2,988 n/m LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 56,530 $ 51,243 $ 41,468 $ 5,287 10.3 % $ 15,062 36.3 % Quarter Ended Linked Quarter Year over Year ACL LHFI 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Beginning Balance $ 139,367 $ 134,031 $ 120,214 $ 5,336 4.0 % $ 19,153 15.9 % Provision for credit losses, LHFI 7,708 7,585 3,244 123 1.6 % 4,464 n/m Charge-offs (6,324 ) (4,250 ) (2,996 ) (2,074 ) -48.8 % (3,328 ) n/m Recoveries 2,247 2,001 1,777 246 12.3 % 470 26.4 % Net (charge-offs) recoveries (4,077 ) (2,249 ) (1,219 ) (1,828 ) -81.3 % (2,858 ) n/m Ending Balance $ 142,998 $ 139,367 $ 122,239 $ 3,631 2.6 % $ 20,759 17.0 % NET (CHARGE-OFFS) RECOVERIES Alabama (1) $ (341 ) $ (299 ) $ (268 ) $ (42 ) -14.0 % $ (73 ) -27.2 % Florida 277 180 (36 ) 97 53.9 % 313 n/m Mississippi (2) (1,489 ) (1,943 ) (775 ) 454 23.4 % (714 ) -92.1 % Tennessee (3) (179 ) (193 ) (124 ) 14 7.3 % (55 ) -44.4 % Texas (2,345 ) 6 (16 ) (2,351 ) n/m (2,329 ) n/m Total net (charge-offs) recoveries $ (4,077 ) $ (2,249 ) $ (1,219 ) $ (1,828 ) -81.3 % $ (2,858 ) n/m (1) Alabama includes the Georgia Loan Production Office. (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 March 31, 2024 ($ in thousands) (unaudited) Quarter Ended AVERAGE BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Securities AFS-taxable $ 1,927,619 $ 1,986,825 $ 2,049,006 $ 2,140,505 $ 2,187,121 Securities AFS-nontaxable — 4,246 4,779 4,796 4,812 Securities HTM-taxable 1,418,476 1,430,169 1,445,895 1,463,086 1,479,283 Securities HTM-nontaxable 340 340 907 1,718 4,509 Total securities 3,346,435 3,421,580 3,500,587 3,610,105 3,675,725 Loans (includes loans held for sale) 13,169,805 13,010,028 12,926,942 12,732,057 12,530,449 Fed funds sold and reverse repurchases 114 121 230 3,275 2,379 Other earning assets 571,215 670,477 682,644 903,027 647,760 Total earning assets 17,087,569 17,102,206 17,110,403 17,248,464 16,856,313 ACL LHFI (138,711 ) (133,742 ) (127,915 ) (121,960 ) (119,978 ) Other assets 1,730,521 1,749,069 1,721,310 1,648,583 1,762,449 Total assets $ 18,679,379 $ 18,717,533 $ 18,703,798 $ 18,775,087 $ 18,498,784 Interest-bearing demand deposits $ 5,291,779 $ 5,053,935 $ 4,875,714 $ 4,803,737 $ 4,751,154 Savings deposits 3,686,027 3,526,600 3,642,158 4,002,134 4,193,764 Time deposits 3,321,601 3,427,384 3,075,224 2,335,752 1,907,449 Total interest-bearing deposits 12,299,407 12,007,919 11,593,096 11,141,623 10,852,367 Fed funds purchased and repurchases 428,127 403,041 414,696 389,834 436,535 Other borrowings 463,459 590,765 912,151 1,330,010 1,110,843 Subordinated notes 123,501 123,446 123,391 123,337 123,281 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 Total interest-bearing liabilities 13,376,350 13,187,027 13,105,190 13,046,660 12,584,882 Noninterest-bearing deposits 3,120,566 3,296,351 3,429,815 3,595,927 3,813,248 Other liabilities 505,942 641,662 585,908 552,209 576,826 Total liabilities 17,002,858 17,125,040 17,120,913 17,194,796 16,974,956 Shareholders' equity 1,676,521 1,592,493 1,582,885 1,580,291 1,523,828 Total liabilities and equity $ 18,679,379 $ 18,717,533 $ 18,703,798 $ 18,775,087 $ 18,498,784 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) PERIOD END BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Cash and due from banks $ 606,261 $ 975,543 $ 750,492 $ 832,052 $ 1,297,144 Securities available for sale 1,702,299 1,762,878 1,766,174 1,871,883 1,984,162 Securities held to maturity 1,415,025 1,426,279 1,438,287 1,458,665 1,474,338 LHFS 172,937 184,812 169,244 181,094 175,926 LHFI 13,057,943 12,950,524 12,810,259 12,613,967 12,497,195 ACL LHFI (142,998 ) (139,367 ) (134,031 ) (129,298 ) (122,239 ) Net LHFI 12,914,945 12,811,157 12,676,228 12,484,669 12,374,956 Premises and equipment, net 232,924 232,537 230,718 227,630 223,975 Mortgage servicing rights 138,044 131,870 142,379 134,350 127,206 Goodwill 384,237 384,237 384,237 384,237 384,237 Identifiable intangible assets 2,845 2,965 3,093 3,222 3,352 Other real estate 7,620 6,867 5,485 1,137 1,684 Operating lease right-of-use assets 36,659 38,142 39,639 38,179 35,315 Other assets 762,816 764,902 784,863 805,508 794,883 Total assets $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 Deposits: Noninterest-bearing $ 3,039,652 $ 3,197,620 $ 3,320,124 $ 3,461,073 $ 3,797,055 Interest-bearing 12,298,905 12,372,143 11,781,799 11,452,827 10,986,606 Total deposits 15,338,557 15,569,763 15,101,923 14,913,900 14,783,661 Fed funds purchased and repurchases 393,215 405,745 321,799 311,179 477,980 Other borrowings 482,027 483,230 793,193 1,056,714 1,485,181 Subordinated notes 123,537 123,482 123,427 123,372 123,317 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 ACL on off-balance sheet credit exposures 33,865 34,057 34,945 34,841 34,596 Operating lease liabilities 40,185 41,584 42,730 40,845 37,988 Other liabilities 220,771 340,625 340,615 308,726 310,500 Total liabilities 16,694,013 17,060,342 16,820,488 16,851,433 17,315,079 Common stock 12,747 12,725 12,724 12,724 12,720 Capital surplus 160,521 159,688 158,316 156,834 155,297 Retained earnings 1,736,485 1,709,157 1,687,199 1,667,339 1,636,463 Accumulated other comprehensive income (loss), net of tax (227,154 ) (219,723 ) (287,888 ) (265,704 ) (242,381 ) Total shareholders' equity 1,682,599 1,661,847 1,570,351 1,571,193 1,562,099 Total liabilities and equity $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands except per share data) (unaudited) Quarter Ended INCOME STATEMENTS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Interest and fees on LHFS & LHFI-FTE $ 209,456 $ 210,288 $ 206,523 $ 192,941 $ 178,967 Interest on securities-taxable 15,634 15,936 16,624 16,779 16,761 Interest on securities-tax exempt-FTE 4 44 58 69 92 Interest on fed funds sold and reverse repurchases 1 2 3 45 30 Other interest income 8,110 9,918 8,613 12,077 6,527 Total interest income-FTE 233,205 236,188 231,821 221,911 202,377 Interest on deposits 83,716 80,847 69,797 54,409 40,898 Interest on fed funds purchased and repurchases 5,591 5,347 5,375 4,865 4,832 Other interest expense 7,703 9,946 14,713 19,350 15,575 Total interest expense 97,010 96,140 89,885 78,624 61,305 Net interest income-FTE 136,195 140,048 141,936 143,287 141,072 Provision for credit losses, LHFI 7,708 7,585 8,322 8,211 3,244 Provision for credit losses, off-balance sheet credit exposures (192 ) (888 ) 104 245 (2,242 ) Net interest income after provision-FTE 128,679 133,351 133,510 134,831 140,070 Service charges on deposit accounts 10,958 11,311 11,074 10,695 10,336 Bank card and other fees 7,428 8,502 8,217 8,917 7,803 Mortgage banking, net 8,915 5,519 6,458 6,600 7,639 Insurance commissions 15,464 13,197 15,303 14,764 14,305 Wealth management 8,952 8,657 8,773 8,882 8,780 Other, net 3,632 2,579 2,399 3,695 2,514 Securities gains (losses), net — 39 — — — Total noninterest income 55,349 49,804 52,224 53,553 51,377 Salaries and employee benefits 75,458 78,003 76,666 75,940 74,056 Services and fees 24,839 27,906 27,882 28,264 25,426 Net occupancy-premises 7,496 7,362 7,383 7,108 7,629 Equipment expense 6,385 6,517 6,816 6,404 6,405 Litigation settlement expense — — 6,500 — — Other expense 16,968 16,641 15,698 14,502 14,811 Total noninterest expense 131,146 136,429 140,945 132,218 128,327 Income before income taxes and tax eq adj 52,882 46,726 44,789 56,166 63,120 Tax equivalent adjustment 3,365 3,306 3,299 3,383 3,477 Income before income taxes 49,517 43,420 41,490 52,783 59,643 Income taxes 7,982 7,297 7,461 7,746 9,343 Net income $ 41,535 $ 36,123 $ 34,029 $ 45,037 $ 50,300 Per share data Earnings per share - basic $ 0.68 $ 0.59 $ 0.56 $ 0.74 $ 0.82 Earnings per share - diluted $ 0.68 $ 0.59 $ 0.56 $ 0.74 $ 0.82 Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 Weighted average shares outstanding Basic 61,128,425 61,070,481 61,069,750 61,063,277 61,011,059 Diluted 61,348,364 61,296,840 61,263,032 61,230,031 61,193,275 Period end shares outstanding 61,178,366 61,071,173 61,070,095 61,069,036 61,048,516 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Quarter Ended NONPERFORMING ASSETS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Nonaccrual LHFI Alabama (1) $ 23,261 $ 23,271 $ 23,530 $ 11,058 $ 10,919 Florida 585 170 151 334 256 Mississippi (2) 59,059 54,615 45,050 36,288 32,560 Tennessee (3) 1,800 1,802 1,841 5,088 5,416 Texas 13,646 20,150 20,327 22,259 23,224 Total nonaccrual LHFI 98,351 100,008 90,899 75,027 72,375 Other real estate Alabama (1) 1,050 1,397 315 — — Florida 71 — — — — Mississippi (2) 2,870 1,242 942 1,137 1,495 Tennessee (3) 86 — — — 189 Texas 3,543 4,228 4,228 — — Total other real estate 7,620 6,867 5,485 1,137 1,684 Total nonperforming assets $ 105,971 $ 106,875 $ 96,384 $ 76,164 $ 74,059 LOANS PAST DUE OVER 90 DAYS LHFI $ 5,243 $ 5,790 $ 3,804 $ 3,911 $ 2,255 LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 56,530 $ 51,243 $ 42,532 $ 35,766 $ 41,468 Quarter Ended ACL LHFI 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Beginning Balance $ 139,367 $ 134,031 $ 129,298 $ 122,239 $ 120,214 Provision for credit losses, LHFI 7,708 7,585 8,322 8,211 3,244 Charge-offs (6,324 ) (4,250 ) (7,496 ) (2,773 ) (2,996 ) Recoveries 2,247 2,001 3,907 1,621 1,777 Net (charge-offs) recoveries (4,077 ) (2,249 ) (3,589 ) (1,152 ) (1,219 ) Ending Balance $ 142,998 $ 139,367 $ 134,031 $ 129,298 $ 122,239 NET (CHARGE-OFFS) RECOVERIES Alabama (1) $ (341 ) $ (299 ) $ (165 ) $ (141 ) $ (268 ) Florida 277 180 21 (35 ) (36 ) Mississippi (2) (1,489 ) (1,943 ) (1,867 ) (762 ) (775 ) Tennessee (3) (179 ) (193 ) 2,127 (166 ) (124 ) Texas (2,345 ) 6 (3,705 ) (48 ) (16 ) Total net (charge-offs) recoveries $ (4,077 ) $ (2,249 ) $ (3,589 ) $ (1,152 ) $ (1,219 ) (1) Alabama includes the Georgia Loan Production Office. (2) Mississippi includes Central and Southern Mississippi Regions. (3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 (unaudited) Quarter Ended FINANCIAL RATIOS AND OTHER DATA 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Return on average equity 9.96 % 9.00 % 8.53 % 11.43 % 13.39 % Return on average tangible equity 12.98 % 11.92 % 11.32 % 15.18 % 18.03 % Return on average assets 0.89 % 0.77 % 0.72 % 0.96 % 1.10 % Interest margin - Yield - FTE 5.49 % 5.48 % 5.38 % 5.16 % 4.87 % Interest margin - Cost 2.28 % 2.23 % 2.08 % 1.83 % 1.47 % Net interest margin - FTE 3.21 % 3.25 % 3.29 % 3.33 % 3.39 % Efficiency ratio (1) 67.25 % 70.25 % 68.33 % 66.17 % 65.60 % Full-time equivalent employees 2,712 2,757 2,756 2,761 2,758 CREDIT QUALITY RATIOS Net (recoveries) charge-offs / average loans 0.12 % 0.07 % 0.11 % 0.04 % 0.04 % Provision for credit losses, LHFI / average loans 0.24 % 0.23 % 0.26 % 0.26 % 0.10 % Nonaccrual LHFI / (LHFI + LHFS) 0.74 % 0.76 % 0.70 % 0.59 % 0.57 % Nonperforming assets / (LHFI + LHFS) 0.80 % 0.81 % 0.74 % 0.60 % 0.58 % Nonperforming assets / (LHFI + LHFS + other real estate) 0.80 % 0.81 % 0.74 % 0.60 % 0.58 % ACL LHFI / LHFI 1.10 % 1.08 % 1.05 % 1.03 % 0.98 % ACL LHFI-commercial / commercial LHFI 0.93 % 0.85 % 0.86 % 0.84 % 0.80 % ACL LHFI-consumer / consumer and home mortgage LHFI 1.63 % 1.81 % 1.66 % 1.60 % 1.54 % ACL LHFI / nonaccrual LHFI 145.39 % 139.36 % 147.45 % 172.34 % 168.90 % ACL LHFI / nonaccrual LHFI (excl individually analyzed loans) 235.29 % 249.31 % 273.60 % 301.44 % 320.80 % CAPITAL RATIOS Total equity / total assets 9.16 % 8.88 % 8.54 % 8.53 % 8.28 % Tangible equity / tangible assets 7.20 % 6.95 % 6.57 % 6.56 % 6.35 % Tangible equity / risk-weighted assets 8.49 % 8.41 % 7.81 % 7.91 % 7.94 % Tier 1 leverage ratio 8.76 % 8.62 % 8.49 % 8.35 % 8.29 % Common equity tier 1 capital ratio 10.12 % 10.04 % 9.89 % 9.87 % 9.76 % Tier 1 risk-based capital ratio 10.51 % 10.44 % 10.29 % 10.27 % 10.17 % Total risk-based capital ratio 12.42 % 12.29 % 12.11 % 12.08 % 11.95 % STOCK PERFORMANCE Market value-Close $ 28.11 $ 27.88 $ 21.73 $ 21.12 $ 24.70 Book value $ 27.50 $ 27.21 $ 25.71 $ 25.73 $ 25.59 Tangible book value $ 21.18 $ 20.87 $ 19.37 $ 19.38 $ 19.24 (1) See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 1 - Securities Available for Sale and Held to Maturity The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity: 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 SECURITIES AVAILABLE FOR SALE U.S. Treasury securities $ 372,424 $ 372,368 $ 363,476 $ 362,966 $ 386,903 U.S. Government agency obligations 5,594 5,792 6,780 6,999 7,254 Obligations of states and political subdivisions — — 4,642 4,813 4,907 Mortgage-backed securities Residential mortgage pass-through securities Guaranteed by GNMA 22,232 23,135 22,881 25,336 26,851 Issued by FNMA and FHLMC 1,129,521 1,176,798 1,171,521 1,250,435 1,317,848 Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 79,099 86,074 90,402 98,388 108,192 Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 93,429 98,711 106,472 122,946 132,207 Total securities available for sale $ 1,702,299 $ 1,762,878 $ 1,766,174 $ 1,871,883 $ 1,984,162 SECURITIES HELD TO MATURITY U.S. Treasury securities $ 29,261 $ 29,068 $ 28,872 $ 28,679 $ 28,486 Obligations of states and political subdivisions 340 340 341 1,180 4,507 Mortgage-backed securities Residential mortgage pass-through securities Guaranteed by GNMA 18,387 13,005 13,090 13,235 4,336 Issued by FNMA and FHLMC 461,457 469,593 474,003 484,679 497,854 Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 146,447 154,466 162,031 171,002 179,334 Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 759,133 759,807 759,950 759,890 759,821 Total securities held to maturity $ 1,415,025 $ 1,426,279 $ 1,438,287 $ 1,458,665 $ 1,474,338 At March 31, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $54.8 million. Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.99% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 2 – Loan Composition LHFI consisted of the following during the periods presented: LHFI BY TYPE 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Loans secured by real estate: Construction, land development and other land loans $ 1,539,461 $ 1,510,679 $ 1,609,326 $ 1,722,657 $ 1,723,772 Secured by 1-4 family residential properties 2,891,481 2,904,715 2,893,606 2,854,182 2,822,048 Secured by nonfarm, nonresidential properties 3,543,235 3,489,434 3,569,671 3,471,728 3,375,579 Other real estate secured 1,384,610 1,312,551 1,218,499 954,410 847,527 Commercial and industrial loans 1,922,711 1,922,910 1,828,924 1,883,480 1,882,360 Consumer loans 156,430 161,725 161,940 163,788 162,911 State and other political subdivision loans 1,052,844 1,088,466 1,056,569 1,111,710 1,193,727 Other loans and leases 567,171 560,044 471,724 452,012 489,271 LHFI 13,057,943 12,950,524 12,810,259 12,613,967 12,497,195 ACL LHFI (142,998 ) (139,367 ) (134,031 ) (129,298 ) (122,239 ) Net LHFI $ 12,914,945 $ 12,811,157 $ 12,676,228 $ 12,484,669 $ 12,374,956 The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region’s diversified mix of loans: March 31, 2024 LHFI - COMPOSITION BY REGION Total Alabama (1) 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 $ 1,539,461 $ 753,918 $ 38,790 $ 391,843 $ 40,988 $ 313,922 Secured by 1-4 family residential properties 2,891,481 154,303 54,099 2,565,424 83,292 34,363 Secured by nonfarm, nonresidential properties 3,543,235 981,921 233,109 1,485,304 150,017 692,884 Other real estate secured 1,384,610 561,115 1,728 417,757 6,965 397,045 Commercial and industrial loans 1,922,711 657,294 23,941 841,797 150,313 249,366 Consumer loans 156,430 21,302 7,399 95,951 18,178 13,600 State and other political subdivision loans 1,052,844 70,161 52,069 782,985 23,700 123,929 Other loans and leases 567,171 236,775 8,202 200,957 57,098 64,139 Loans $ 13,057,943 $ 3,436,789 $ 419,337 $ 6,782,018 $ 530,551 $ 1,889,248 CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION Lots $ 70,445 $ 28,830 $ 8,196 $ 17,829 $ 4,587 $ 11,003 Development 122,788 56,825 1,260 28,668 12,576 23,459 Unimproved land 110,272 20,907 13,404 29,759 8,006 38,196 1-4 family construction 313,503 162,760 13,501 91,453 15,693 30,096 Other construction 922,453 484,596 2,429 224,134 126 211,168 Construction, land development and other land loans $ 1,539,461 $ 753,918 $ 38,790 $ 391,843 $ 40,988 $ 313,922 (1) Includes Georgia Loan Production Office. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 2 – Loan Composition (continued) March 31, 2024 Total Alabama (1) Florida Mississippi (Central and Southern Regions) Tennessee (Memphis, TN and Northern MS Regions) Texas LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION Non-owner occupied: Retail $ 367,575 $ 139,444 $ 24,147 $ 106,123 $ 17,381 $ 80,480 Office 261,984 101,364 19,605 73,689 1,617 65,709 Hotel/motel 255,925 128,356 48,992 53,054 25,523 — Mini-storage 165,962 40,724 1,864 103,323 745 19,306 Industrial 438,626 83,304 19,377 147,199 8,143 180,603 Health care 97,837 69,786 684 24,707 331 2,329 Convenience stores 25,572 3,214 419 13,599 239 8,101 Nursing homes/senior living 513,854 227,254 — 186,507 4,724 95,369 Other 109,838 31,790 9,067 51,626 8,211 9,144 Total non-owner occupied loans 2,237,173 825,236 124,155 759,827 66,914 461,041 Owner-occupied: Office 150,283 41,047 37,629 41,658 11,555 18,394 Churches 56,697 14,208 4,094 32,706 3,215 2,474 Industrial warehouses 156,148 11,553 4,537 39,874 15,766 84,418 Health care 124,330 11,337 8,163 85,172 2,251 17,407 Convenience stores 148,158 12,172 29,156 72,715 — 34,115 Retail 88,445 9,457 15,287 35,730 17,087 10,884 Restaurants 48,491 4,008 2,930 21,360 16,367 3,826 Auto dealerships 42,394 5,138 194 21,007 16,055 — Nursing homes/senior living 353,641 35,216 — 292,264 — 26,161 Other 137,475 12,549 6,964 82,991 807 34,164 Total owner-occupied loans 1,306,062 156,685 108,954 725,477 83,103 231,843 Loans secured by nonfarm, nonresidential properties $ 3,543,235 $ 981,921 $ 233,109 $ 1,485,304 $ 150,017 $ 692,884 (1) Includes Georgia Loan Production Office. Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Securities – taxable 1.88 % 1.85 % 1.89 % 1.87 % 1.85 % Securities – nontaxable 4.73 % 3.81 % 4.05 % 4.25 % 4.00 % Securities – total 1.88 % 1.85 % 1.89 % 1.87 % 1.86 % LHFI & LHFS 6.40 % 6.41 % 6.34 % 6.08 % 5.79 % Fed funds sold & reverse repurchases 3.53 % 6.56 % 5.17 % 5.51 % 5.11 % Other earning assets 5.71 % 5.87 % 5.01 % 5.36 % 4.09 % Total earning assets 5.49 % 5.48 % 5.38 % 5.16 % 4.87 % Interest-bearing deposits 2.74 % 2.67 % 2.39 % 1.96 % 1.53 % Fed funds purchased & repurchases 5.25 % 5.26 % 5.14 % 5.01 % 4.49 % Other borrowings 4.78 % 5.08 % 5.32 % 5.12 % 4.87 % Total interest-bearing liabilities 2.92 % 2.89 % 2.72 % 2.42 % 1.98 % Total Deposits 2.18 % 2.10 % 1.84 % 1.48 % 1.13 % Net interest margin 3.21 % 3.25 % 3.29 % 3.33 % 3.39 % TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities (continued) 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. The net interest margin decreased four basis points when compared to the fourth quarter of 2023, totaling 3.21% for the first quarter of 2024, primarily due to increased costs of interest-bearing deposits which resulted from the higher interest rate environment. Note 4 – Mortgage Banking Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $1.1 million during the first quarter of 2024. The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Mortgage servicing income, net $ 6,934 $ 6,731 $ 6,916 $ 6,764 $ 6,785 Change in fair value-MSR from runoff (1,926 ) (2,972 ) (3,203 ) (2,710 ) (1,145 ) Gain on sales of loans, net. 5,009 3,913 3,748 3,887 3,797 Mortgage banking income before hedge ineffectiveness 10,017 7,672 7,461 7,941 9,437 Change in fair value-MSR from market changes 5,123 (10,224 ) 6,809 5,898 (3,972 ) Change in fair value of derivatives (6,225 ) 8,071 (7,812 ) (7,239 ) 2,174 Net positive (negative) hedge ineffectiveness (1,102 ) (2,153 ) (1,003 ) (1,341 ) (1,798 ) Mortgage banking, net $ 8,915 $ 5,519 $ 6,458 $ 6,600 $ 7,639 TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 5 – Other Noninterest Income and Expense Other noninterest income consisted of the following for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Partnership amortization for tax credit purposes $ (1,834 ) $ (2,013 ) $ (1,995 ) $ (2,019 ) $ (1,961 ) Increase in life insurance cash surrender value 1,844 1,825 1,784 1,716 1,693 Other miscellaneous income 3,622 2,767 2,610 3,998 2,782 Total other, net $ 3,632 $ 2,579 $ 2,399 $ 3,695 $ 2,514 Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense. Other noninterest expense consisted of the following for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Loan expense $ 2,955 $ 2,380 $ 3,130 $ 3,066 $ 2,538 Amortization of intangibles 120 128 129 130 288 FDIC assessment expense 4,509 4,844 3,765 2,550 2,370 Other real estate expense, net 671 (184 ) (40 ) 171 172 Other miscellaneous expense 8,713 9,473 8,714 8,585 9,443 Total other expense $ 16,968 $ 16,641 $ 15,698 $ 14,502 $ 14,811 Note 6 – Non-GAAP Financial Measures In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable. Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands except per share data) (unaudited) Note 6 – Non-GAAP Financial Measures (continued) Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 TANGIBLE EQUITY AVERAGE BALANCES Total shareholders' equity $ 1,676,521 $ 1,592,493 $ 1,582,885 $ 1,580,291 $ 1,523,828 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,920 ) (3,044 ) (3,174 ) (3,301 ) (3,523 ) Total average tangible equity $ 1,289,364 $ 1,205,212 $ 1,195,474 $ 1,192,753 $ 1,136,068 PERIOD END BALANCES Total shareholders' equity $ 1,682,599 $ 1,661,847 $ 1,570,351 $ 1,571,193 $ 1,562,099 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,845 ) (2,965 ) (3,093 ) (3,222 ) (3,352 ) Total tangible equity (a) $ 1,295,517 $ 1,274,645 $ 1,183,021 $ 1,183,734 $ 1,174,510 TANGIBLE ASSETS Total assets $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,845 ) (2,965 ) (3,093 ) (3,222 ) (3,352 ) Total tangible assets (b) $ 17,989,530 $ 18,334,987 $ 18,003,509 $ 18,035,167 $ 18,489,589 Risk-weighted assets (c) $ 15,257,385 $ 15,153,263 $ 15,143,531 $ 14,966,614 $ 14,793,893 NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION Net income (loss) $ 41,535 $ 36,123 $ 34,029 $ 45,037 $ 50,300 Plus: Intangible amortization net of tax 90 96 96 97 216 Net income (loss) adjusted for intangible amortization $ 41,625 $ 36,219 $ 34,125 $ 45,134 $ 50,516 Period end common shares outstanding (d) 61,178,366 61,071,173 61,070,095 61,069,036 61,048,516 TANGIBLE COMMON EQUITY MEASUREMENTS Return on average tangible equity (1) 12.98 % 11.92 % 11.32 % 15.18 % 18.03 % Tangible equity/tangible assets (a)/(b) 7.20 % 6.95 % 6.57 % 6.56 % 6.35 % Tangible equity/risk-weighted assets (a)/(c) 8.49 % 8.41 % 7.81 % 7.91 % 7.94 % Tangible book value (a)/(d)*1,000 $ 21.18 $ 20.87 $ 19.37 $ 19.38 $ 19.24 COMMON EQUITY TIER 1 CAPITAL (CET1) Total shareholders' equity $ 1,682,599 $ 1,661,847 $ 1,570,351 $ 1,571,193 $ 1,562,099 CECL transition adjustment 6,500 13,000 13,000 13,000 13,000 AOCI-related adjustments 227,154 219,723 287,888 265,704 242,381 CET1 adjustments and deductions: Goodwill net of associated deferred tax liabilities (DTLs) (370,205 ) (370,212 ) (370,219 ) (370,227 ) (370,234 ) Other adjustments and deductions for CET1 (2) (2,588 ) (2,693 ) (2,803 ) (2,915 ) (3,275 ) CET1 capital (e) 1,543,460 1,521,665 1,498,217 1,476,755 1,443,971 Additional tier 1 capital instruments plus related surplus 60,000 60,000 60,000 60,000 60,000 Tier 1 capital $ 1,603,460 $ 1,581,665 $ 1,558,217 $ 1,536,755 $ 1,503,971 Common equity tier 1 capital ratio (e)/(c) 10.12 % 10.04 % 9.89 % 9.87 % 9.76 % (1) Calculation = ((net income (loss) 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 March 31, 2024 ($ in thousands except per share data) (unaudited) Note 6 – Non-GAAP Financial Measures (continued) Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure. The following table presents pre-provision net revenue (PPNR) during the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net interest income (GAAP) $ 132,830 $ 136,742 $ 138,637 $ 139,904 $ 137,595 Noninterest income (GAAP) 55,349 49,804 52,224 53,553 51,377 Pre-provision revenue (a) $ 188,179 $ 186,546 $ 190,861 $ 193,457 $ 188,972 Noninterest expense (GAAP) $ 131,146 $ 136,429 $ 140,945 $ 132,218 $ 128,327 Less: Reduction in force expense — (1,406 ) — — — Litigation settlement expense — — (6,500 ) — — Adjusted noninterest expense - PPNR (Non-GAAP) (b) $ 131,146 $ 135,023 $ 134,445 $ 132,218 $ 128,327 PPNR (Non-GAAP) (a)-(b) $ 57,033 $ 51,523 $ 56,416 $ 61,239 $ 60,645 The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Total noninterest expense (GAAP) $ 131,146 $ 136,429 $ 140,945 $ 132,218 $ 128,327 Less: Other real estate expense, net (671 ) 184 40 (171 ) (172 ) Amortization of intangibles (120 ) (128 ) (129 ) (130 ) (288 ) Charitable contributions resulting in state tax credits (300 ) (325 ) (325 ) (325 ) (325 ) Reduction in force expense — (1,406 ) — — — Litigation settlement expense — — (6,500 ) — — Adjusted noninterest expense (Non-GAAP) (c) $ 130,055 $ 134,754 $ 134,031 $ 131,592 $ 127,542 Net interest income (GAAP) $ 132,830 $ 136,742 $ 138,637 $ 139,904 $ 137,595 Add: Tax equivalent adjustment 3,365 3,306 3,299 3,383 3,477 Net interest income-FTE (Non-GAAP) (a) $ 136,195 $ 140,048 $ 141,936 $ 143,287 $ 141,072 Noninterest income (GAAP) $ 55,349 $ 49,804 $ 52,224 $ 53,553 $ 51,377 Add: Partnership amortization for tax credit purposes 1,834 2,013 1,995 2,019 1,961 Less: Securities (gains) losses, net — (39 ) — — — Adjusted noninterest income (Non-GAAP) (b) $ 57,183 $ 51,778 $ 54,219 $ 55,572 $ 53,338 Adjusted revenue (Non-GAAP) (a)+(b) $ 193,378 $ 191,826 $ 196,155 $ 198,859 $ 194,410 Efficiency ratio (Non-GAAP) (c)/((a)+(b)) 67.25 % 70.25 % 68.33 % 66.17 % 65.60 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240423449062/en/Contacts Trustmark Investor Contacts: Thomas C. Owens Treasurer and Principal Financial Officer 601-208-7853 F. Joseph Rein, Jr. Senior Vice President 601-208-6898 Trustmark Media Contact: Melanie A. Morgan Senior Vice President 601-208-2979
Loan Growth Moderates, Credit Quality Remains Stable Solid Growth in Fee Income and Disciplined Expense Management Reflected in Financial Results
Trustmark Corporation (NASDAQGS:TRMK) reported net income of $41.5 million in the first quarter of 2024, representing diluted earnings per share of $0.68. Trustmark’s performance during the first quarter produced a return on average tangible equity of 12.98% and a return on average assets of 0.89%. The Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2024, to shareholders of record on June 1, 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423449062/en/ Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/53946039/en First Quarter Highlights Loans held for investment increased 0.8% linked-quarter and represented 85.1% of total deposits at March 31, 2024 Credit quality remained solid Revenue totaled $188.2 million, up 0.9% linked-quarter Noninterest income increased 11.1% linked-quarter, reflecting seasonal increases and the strength of diversified business lines Noninterest expense decreased 3.9% linked-quarter, reflecting on-going expense management priorities Duane A. Dewey, President and CEO, stated, “We are off to a great start in 2024. Our first quarter results reflect continued loan growth, solid credit quality, and double-digit increases in noninterest income. In addition, we experienced a meaningful decrease in noninterest expense. These accomplishments are the results of our focused efforts to expand customer relationships and diligently manage expenses. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as our customers’ financial partner. We are well positioned to serve and expand our customer base and create long-term value for shareholders.” Balance Sheet Management Loans held for investment (HFI) increased $107.4 million, or 0.8%, during the quarter Total deposits decreased $231.2 million, or 1.5%, during the quarter Maintained strong capital position with CET1 ratio of 10.12% and total risk-based capital ratio of 12.42% Loans HFI totaled $13.1 billion at March 31, 2024, reflecting an increase of $107.4 million, or 0.8%, linked-quarter and $560.7 million, or 4.5%, year-over-year. The linked-quarter growth reflected increases in commercial real estate and equipment finance loans offset in part by reductions in state and other political subdivision loans and consumer loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography. Deposits totaled $15.3 billion at March 31, 2024, down $231.2 million, or 1.5%, from the prior quarter and up $554.9 million, or 3.8%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 85.1% of total deposits at March 31, 2024. Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 19.8% of total deposits at March 31, 2024. Interest-bearing deposit costs totaled 2.74% for the first quarter, an increase of 7 basis points linked-quarter, while the total cost of deposits was 2.18%, an increase of 8 basis points linked-quarter. The total cost of interest-bearing liabilities in the first quarter was 2.92%, up 3 basis points from the prior quarter. During the first quarter, Trustmark did not repurchase any of its outstanding common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2024. At March 31, 2024, Trustmark’s tangible equity to tangible assets ratio was 7.20%, while the total risk-based capital ratio was 12.42%. Tangible book value per share was $21.18 at March 31, 2024, an increase of 1.5% from the prior quarter and 10.1% from the prior year. Credit Quality Net charge-offs totaled $4.1 million, representing 0.12% of average loans in the first quarter Provision for credit losses for loans HFI was $7.7 million in the first quarter Allowance for credit losses (ACL) represented 1.10% of loans HFI and 235.29% of nonaccrual loans, excluding individually analyzed loans at March 31, 2024 Nonaccrual loans totaled $98.4 million at March 31, 2024, down $1.7 million from the prior quarter and an increase of $26.0 million year-over-year. Other real estate totaled $7.6 million, reflecting increases of $753 thousand and $5.9 million from the prior quarter and prior year, respectively. Collectively, nonperforming assets totaled $106.0 million, representing 0.80% of loans HFI and held for sale (HFS) at March 31, 2024. The provision for credit losses for loans HFI was $7.7 million in the first quarter and was primarily attributable to loan growth, changes in the macroeconomic forecast, and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was a negative $192 thousand in the first quarter. Collectively, the provision for credit losses totaled $7.5 million in the first quarter compared to $6.7 million in the prior quarter and $1.0 million in the first quarter of 2023. Allocation of Trustmark’s $143.0 million ACL on loans HFI represented 0.93% of commercial loans and 1.63% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.10% at March 31, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio. Revenue Generation Net interest income (FTE) totaled $136.2 million in the first quarter, down 2.8% linked-quarter Net interest margin totaled 3.21% in the first quarter, down 4 basis points from the prior quarter Noninterest income increased 11.1% linked-quarter to total $55.3 million, reflecting growth in mortgage banking, insurance, other income, and wealth management revenue Revenue in the first quarter totaled $188.2 million, an increase of 0.9% from the prior quarter and a decrease of 0.4% from the same quarter in the prior year. The linked-quarter increase primarily reflects higher noninterest income offset in part by lower net interest income while the year-over-year decrease is attributed to lower net interest income offset in part by growth in noninterest income. Net interest income (FTE) in the first quarter totaled $136.2 million, resulting in a net interest margin of 3.21%, down 4 basis points from the prior quarter. The decrease in the net interest margin was primarily due to increased costs of interest-bearing liabilities. Noninterest income in the first quarter totaled $55.3 million, an increase of $5.5 million, or 11.1%, from the prior quarter and $4.0 million, or 7.7%, year-over-year. The linked-quarter increases in mortgage banking, insurance, other income, and wealth management revenue were offset in part by declines in bank card and other fees and service charges on deposit accounts. The increase in noninterest income year-over-year is broad-based, reflecting increases in mortgage banking, insurance, other income, service charges of deposit accounts and wealth management revenue which were offset in part by declines in bank card and other fees. Mortgage loan production in the first quarter totaled $274.0 million, up 0.8% from the prior quarter and down 24.1% year-over-year. Mortgage banking revenue totaled $8.9 million in the first quarter, an increase of $3.4 million linked-quarter and $1.3 million year-over-year. The linked-quarter increase was principally attributable to increased gain on sales of mortgage loans, improvement in net negative hedge ineffectiveness, and reduced servicing asset amortization. The year-over-year increase was principally due to increased gain on sales of mortgage loans. Insurance revenue totaled $15.5 million in the first quarter, up $2.3 million, or 17.2%, from the prior quarter and $1.2 million, or 8.1%, year-over-year. The linked-quarter and year-over-year increases primarily reflected growth in commercial property and casualty commissions. Wealth management revenue in the first quarter totaled $9.0 million, an increase of $295 thousand, or 3.4%, from the prior quarter and $172 thousand, or 2.0%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year growth reflected increased brokerage revenue. Other income, net totaled $3.6 million in the first quarter, up $1.1 million from both the prior quarter and year-over-year. Service charges on deposit accounts totaled $11.0 million in the first quarter, reflecting a seasonal decrease of $353 thousand, or 3.1%, from the prior quarter and an increase of $622 thousand, or 6.0%, year-over-year. Bank card and other fees totaled $7.4 million in the first quarter, down $1.1 million from the prior quarter due principally to lower customer derivative revenue. Year-over-year, bank card and other fees declined $375 thousand. Noninterest Expense Total noninterest expense declined $5.3 million, or 3.9%, linked-quarter Salary and employee benefit expense declined $2.5 million, or 3.3%, linked-quarter Total services and fees declined $3.1 million, or 11.0%, linked-quarter Noninterest expense in the first quarter totaled $131.1 million, a decrease of $5.3 million, or 3.9%, from the prior quarter and an increase of $2.8 million, or 2.2%, year-over-year. Salary and employee benefit expense totaled $75.5 million in the first quarter, a decline of $2.5 million, or 3.3%, linked-quarter and an increase of $1.4 million, or 1.9%, year-over-year. The linked-quarter decline reflected reductions in incentives, severance, medical insurance, and salary expense, which were offset in part by a seasonal increase in payroll taxes and restricted stock compensation expense. Services and fees in the first quarter totaled $24.8 million, a decrease of $3.1 million, or 11.0%, from the prior quarter and $587 thousand, or 2.3%, year-over-year. The linked-quarter decline is attributable principally to lower professional fees and data processing software expense. Additional Information As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 24, 2024, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, May 8, 2024, in archived format at the same web address or by calling (877) 344-7529, passcode 4820621. Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Forward-Looking Statements Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international 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, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, 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 impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain 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, 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, 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 CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Linked Quarter Year over Year QUARTERLY AVERAGE BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Securities AFS-taxable $ 1,927,619 $ 1,986,825 $ 2,187,121 $ (59,206 ) -3.0 % $ (259,502 ) -11.9 % Securities AFS-nontaxable — 4,246 4,812 (4,246 ) -100.0 % (4,812 ) -100.0 % Securities HTM-taxable 1,418,476 1,430,169 1,479,283 (11,693 ) -0.8 % (60,807 ) -4.1 % Securities HTM-nontaxable 340 340 4,509 — 0.0 % (4,169 ) -92.5 % Total securities 3,346,435 3,421,580 3,675,725 (75,145 ) -2.2 % (329,290 ) -9.0 % Loans (includes loans held for sale) 13,169,805 13,010,028 12,530,449 159,777 1.2 % 639,356 5.1 % Fed funds sold and reverse repurchases 114 121 2,379 (7 ) -5.8 % (2,265 ) -95.2 % Other earning assets 571,215 670,477 647,760 (99,262 ) -14.8 % (76,545 ) -11.8 % Total earning assets 17,087,569 17,102,206 16,856,313 (14,637 ) -0.1 % 231,256 1.4 % Allowance for credit losses (ACL), loans held for investment (LHFI) (138,711 ) (133,742 ) (119,978 ) (4,969 ) -3.7 % (18,733 ) -15.6 % Other assets 1,730,521 1,749,069 1,762,449 (18,548 ) -1.1 % (31,928 ) -1.8 % Total assets $ 18,679,379 $ 18,717,533 $ 18,498,784 $ (38,154 ) -0.2 % $ 180,595 1.0 % Interest-bearing demand deposits $ 5,291,779 $ 5,053,935 $ 4,751,154 $ 237,844 4.7 % $ 540,625 11.4 % Savings deposits 3,686,027 3,526,600 4,193,764 159,427 4.5 % (507,737 ) -12.1 % Time deposits 3,321,601 3,427,384 1,907,449 (105,783 ) -3.1 % 1,414,152 74.1 % Total interest-bearing deposits 12,299,407 12,007,919 10,852,367 291,488 2.4 % 1,447,040 13.3 % Fed funds purchased and repurchases 428,127 403,041 436,535 25,086 6.2 % (8,408 ) -1.9 % Other borrowings 463,459 590,765 1,110,843 (127,306 ) -21.5 % (647,384 ) -58.3 % Subordinated notes 123,501 123,446 123,281 55 0.0 % 220 0.2 % Junior subordinated debt securities 61,856 61,856 61,856 — 0.0 % — 0.0 % Total interest-bearing liabilities 13,376,350 13,187,027 12,584,882 189,323 1.4 % 791,468 6.3 % Noninterest-bearing deposits 3,120,566 3,296,351 3,813,248 (175,785 ) -5.3 % (692,682 ) -18.2 % Other liabilities 505,942 641,662 576,826 (135,720 ) -21.2 % (70,884 ) -12.3 % Total liabilities 17,002,858 17,125,040 16,974,956 (122,182 ) -0.7 % 27,902 0.2 % Shareholders' equity 1,676,521 1,592,493 1,523,828 84,028 5.3 % 152,693 10.0 % Total liabilities and equity $ 18,679,379 $ 18,717,533 $ 18,498,784 $ (38,154 ) -0.2 % $ 180,595 1.0 % n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Linked Quarter Year over Year PERIOD END BALANCES 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Cash and due from banks $ 606,261 $ 975,543 $ 1,297,144 $ (369,282 ) -37.9 % $ (690,883 ) -53.3 % Securities available for sale 1,702,299 1,762,878 1,984,162 (60,579 ) -3.4 % (281,863 ) -14.2 % Securities held to maturity 1,415,025 1,426,279 1,474,338 (11,254 ) -0.8 % (59,313 ) -4.0 % Loans held for sale (LHFS) 172,937 184,812 175,926 (11,875 ) -6.4 % (2,989 ) -1.7 % Loans held for investment (LHFI) 13,057,943 12,950,524 12,497,195 107,419 0.8 % 560,748 4.5 % ACL LHFI (142,998 ) (139,367 ) (122,239 ) (3,631 ) -2.6 % (20,759 ) -17.0 % Net LHFI 12,914,945 12,811,157 12,374,956 103,788 0.8 % 539,989 4.4 % Premises and equipment, net 232,924 232,537 223,975 387 0.2 % 8,949 4.0 % Mortgage servicing rights 138,044 131,870 127,206 6,174 4.7 % 10,838 8.5 % Goodwill 384,237 384,237 384,237 — 0.0 % — 0.0 % Identifiable intangible assets 2,845 2,965 3,352 (120 ) -4.0 % (507 ) -15.1 % Other real estate 7,620 6,867 1,684 753 11.0 % 5,936 n/m Operating lease right-of-use assets 36,659 38,142 35,315 (1,483 ) -3.9 % 1,344 3.8 % Other assets 762,816 764,902 794,883 (2,086 ) -0.3 % (32,067 ) -4.0 % Total assets $ 18,376,612 $ 18,722,189 $ 18,877,178 $ (345,577 ) -1.8 % $ (500,566 ) -2.7 % Deposits: Noninterest-bearing $ 3,039,652 $ 3,197,620 $ 3,797,055 $ (157,968 ) -4.9 % $ (757,403 ) -19.9 % Interest-bearing 12,298,905 12,372,143 10,986,606 (73,238 ) -0.6 % 1,312,299 11.9 % Total deposits 15,338,557 15,569,763 14,783,661 (231,206 ) -1.5 % 554,896 3.8 % Fed funds purchased and repurchases 393,215 405,745 477,980 (12,530 ) -3.1 % (84,765 ) -17.7 % Other borrowings 482,027 483,230 1,485,181 (1,203 ) -0.2 % (1,003,154 ) -67.5 % Subordinated notes 123,537 123,482 123,317 55 0.0 % 220 0.2 % Junior subordinated debt securities 61,856 61,856 61,856 — 0.0 % — 0.0 % ACL on off-balance sheet credit exposures 33,865 34,057 34,596 (192 ) -0.6 % (731 ) -2.1 % Operating lease liabilities 40,185 41,584 37,988 (1,399 ) -3.4 % 2,197 5.8 % Other liabilities 220,771 340,625 310,500 (119,854 ) -35.2 % (89,729 ) -28.9 % Total liabilities 16,694,013 17,060,342 17,315,079 (366,329 ) -2.1 % (621,066 ) -3.6 % Common stock 12,747 12,725 12,720 22 0.2 % 27 0.2 % Capital surplus 160,521 159,688 155,297 833 0.5 % 5,224 3.4 % Retained earnings 1,736,485 1,709,157 1,636,463 27,328 1.6 % 100,022 6.1 % Accumulated other comprehensive income (loss), net of tax (227,154 ) (219,723 ) (242,381 ) (7,431 ) -3.4 % 15,227 6.3 % Total shareholders' equity 1,682,599 1,661,847 1,562,099 20,752 1.2 % 120,500 7.7 % Total liabilities and equity $ 18,376,612 $ 18,722,189 $ 18,877,178 $ (345,577 ) -1.8 % $ (500,566 ) -2.7 % n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year INCOME STATEMENTS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Interest and fees on LHFS & LHFI-FTE $ 209,456 $ 210,288 $ 178,967 $ (832 ) -0.4 % $ 30,489 17.0 % Interest on securities-taxable 15,634 15,936 16,761 (302 ) -1.9 % (1,127 ) -6.7 % Interest on securities-tax exempt-FTE 4 44 92 (40 ) -90.9 % (88 ) -95.7 % Interest on fed funds sold and reverse repurchases 1 2 30 (1 ) -50.0 % (29 ) -96.7 % Other interest income 8,110 9,918 6,527 (1,808 ) -18.2 % 1,583 24.3 % Total interest income-FTE 233,205 236,188 202,377 (2,983 ) -1.3 % 30,828 15.2 % Interest on deposits 83,716 80,847 40,898 2,869 3.5 % 42,818 n/m Interest on fed funds purchased and repurchases 5,591 5,347 4,832 244 4.6 % 759 15.7 % Other interest expense 7,703 9,946 15,575 (2,243 ) -22.6 % (7,872 ) -50.5 % Total interest expense 97,010 96,140 61,305 870 0.9 % 35,705 58.2 % Net interest income-FTE 136,195 140,048 141,072 (3,853 ) -2.8 % (4,877 ) -3.5 % Provision for credit losses, LHFI 7,708 7,585 3,244 123 1.6 % 4,464 n/m Provision for credit losses, off-balance sheet credit exposures (192 ) (888 ) (2,242 ) 696 78.4 % 2,050 91.4 % Net interest income after provision-FTE 128,679 133,351 140,070 (4,672 ) -3.5 % (11,391 ) -8.1 % Service charges on deposit accounts 10,958 11,311 10,336 (353 ) -3.1 % 622 6.0 % Bank card and other fees 7,428 8,502 7,803 (1,074 ) -12.6 % (375 ) -4.8 % Mortgage banking, net 8,915 5,519 7,639 3,396 61.5 % 1,276 16.7 % Insurance commissions 15,464 13,197 14,305 2,267 17.2 % 1,159 8.1 % Wealth management 8,952 8,657 8,780 295 3.4 % 172 2.0 % Other, net 3,632 2,579 2,514 1,053 40.8 % 1,118 44.5 % Securities gains (losses), net — 39 — (39 ) -100.0 % — n/m Total noninterest income 55,349 49,804 51,377 5,545 11.1 % 3,972 7.7 % Salaries and employee benefits 75,458 78,003 74,056 (2,545 ) -3.3 % 1,402 1.9 % Services and fees 24,839 27,906 25,426 (3,067 ) -11.0 % (587 ) -2.3 % Net occupancy-premises 7,496 7,362 7,629 134 1.8 % (133 ) -1.7 % Equipment expense 6,385 6,517 6,405 (132 ) -2.0 % (20 ) -0.3 % Other expense 16,968 16,641 14,811 327 2.0 % 2,157 14.6 % Total noninterest expense 131,146 136,429 128,327 (5,283 ) -3.9 % 2,819 2.2 % Income before income taxes and tax eq adj 52,882 46,726 63,120 6,156 13.2 % (10,238 ) -16.2 % Tax equivalent adjustment 3,365 3,306 3,477 59 1.8 % (112 ) -3.2 % Income before income taxes 49,517 43,420 59,643 6,097 14.0 % (10,126 ) -17.0 % Income taxes 7,982 7,297 9,343 685 9.4 % (1,361 ) -14.6 % Net income $ 41,535 $ 36,123 $ 50,300 $ 5,412 15.0 % $ (8,765 ) -17.4 % Per share data Earnings per share - basic $ 0.68 $ 0.59 $ 0.82 $ 0.09 15.3 % $ (0.14 ) -17.1 % Earnings per share - diluted $ 0.68 $ 0.59 $ 0.82 $ 0.09 15.3 % $ (0.14 ) -17.1 % Dividends per share $ 0.23 $ 0.23 $ 0.23 — 0.0 % — 0.0 % Weighted average shares outstanding Basic 61,128,425 61,070,481 61,011,059 Diluted 61,348,364 61,296,840 61,193,275 Period end shares outstanding 61,178,366 61,071,173 61,048,516 n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year NONPERFORMING ASSETS 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Nonaccrual LHFI Alabama (1) $ 23,261 $ 23,271 $ 10,919 $ (10 ) 0.0 % $ 12,342 n/m Florida 585 170 256 415 n/m 329 n/m Mississippi (2) 59,059 54,615 32,560 4,444 8.1 % 26,499 81.4 % Tennessee (3) 1,800 1,802 5,416 (2 ) -0.1 % (3,616 ) -66.8 % Texas 13,646 20,150 23,224 (6,504 ) -32.3 % (9,578 ) -41.2 % Total nonaccrual LHFI 98,351 100,008 72,375 (1,657 ) -1.7 % 25,976 35.9 % Other real estate Alabama (1) 1,050 1,397 — (347 ) -24.8 % 1,050 n/m Florida 71 — — 71 n/m 71 n/m Mississippi (2) 2,870 1,242 1,495 1,628 n/m 1,375 92.0 % Tennessee (3) 86 — 189 86 n/m (103 ) -54.5 % Texas 3,543 4,228 — (685 ) -16.2 % 3,543 n/m Total other real estate 7,620 6,867 1,684 753 11.0 % 5,936 n/m Total nonperforming assets $ 105,971 $ 106,875 $ 74,059 $ (904 ) -0.8 % $ 31,912 43.1 % LOANS PAST DUE OVER 90 DAYS LHFI $ 5,243 $ 5,790 $ 2,255 $ (547 ) -9.4 % $ 2,988 n/m LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 56,530 $ 51,243 $ 41,468 $ 5,287 10.3 % $ 15,062 36.3 % Quarter Ended Linked Quarter Year over Year ACL LHFI 3/31/2024 12/31/2023 3/31/2023 $ Change % Change $ Change % Change Beginning Balance $ 139,367 $ 134,031 $ 120,214 $ 5,336 4.0 % $ 19,153 15.9 % Provision for credit losses, LHFI 7,708 7,585 3,244 123 1.6 % 4,464 n/m Charge-offs (6,324 ) (4,250 ) (2,996 ) (2,074 ) -48.8 % (3,328 ) n/m Recoveries 2,247 2,001 1,777 246 12.3 % 470 26.4 % Net (charge-offs) recoveries (4,077 ) (2,249 ) (1,219 ) (1,828 ) -81.3 % (2,858 ) n/m Ending Balance $ 142,998 $ 139,367 $ 122,239 $ 3,631 2.6 % $ 20,759 17.0 % NET (CHARGE-OFFS) RECOVERIES Alabama (1) $ (341 ) $ (299 ) $ (268 ) $ (42 ) -14.0 % $ (73 ) -27.2 % Florida 277 180 (36 ) 97 53.9 % 313 n/m Mississippi (2) (1,489 ) (1,943 ) (775 ) 454 23.4 % (714 ) -92.1 % Tennessee (3) (179 ) (193 ) (124 ) 14 7.3 % (55 ) -44.4 % Texas (2,345 ) 6 (16 ) (2,351 ) n/m (2,329 ) n/m Total net (charge-offs) recoveries $ (4,077 ) $ (2,249 ) $ (1,219 ) $ (1,828 ) -81.3 % $ (2,858 ) n/m (1) Alabama includes the Georgia Loan Production Office. (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 March 31, 2024 ($ in thousands) (unaudited) Quarter Ended AVERAGE BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Securities AFS-taxable $ 1,927,619 $ 1,986,825 $ 2,049,006 $ 2,140,505 $ 2,187,121 Securities AFS-nontaxable — 4,246 4,779 4,796 4,812 Securities HTM-taxable 1,418,476 1,430,169 1,445,895 1,463,086 1,479,283 Securities HTM-nontaxable 340 340 907 1,718 4,509 Total securities 3,346,435 3,421,580 3,500,587 3,610,105 3,675,725 Loans (includes loans held for sale) 13,169,805 13,010,028 12,926,942 12,732,057 12,530,449 Fed funds sold and reverse repurchases 114 121 230 3,275 2,379 Other earning assets 571,215 670,477 682,644 903,027 647,760 Total earning assets 17,087,569 17,102,206 17,110,403 17,248,464 16,856,313 ACL LHFI (138,711 ) (133,742 ) (127,915 ) (121,960 ) (119,978 ) Other assets 1,730,521 1,749,069 1,721,310 1,648,583 1,762,449 Total assets $ 18,679,379 $ 18,717,533 $ 18,703,798 $ 18,775,087 $ 18,498,784 Interest-bearing demand deposits $ 5,291,779 $ 5,053,935 $ 4,875,714 $ 4,803,737 $ 4,751,154 Savings deposits 3,686,027 3,526,600 3,642,158 4,002,134 4,193,764 Time deposits 3,321,601 3,427,384 3,075,224 2,335,752 1,907,449 Total interest-bearing deposits 12,299,407 12,007,919 11,593,096 11,141,623 10,852,367 Fed funds purchased and repurchases 428,127 403,041 414,696 389,834 436,535 Other borrowings 463,459 590,765 912,151 1,330,010 1,110,843 Subordinated notes 123,501 123,446 123,391 123,337 123,281 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 Total interest-bearing liabilities 13,376,350 13,187,027 13,105,190 13,046,660 12,584,882 Noninterest-bearing deposits 3,120,566 3,296,351 3,429,815 3,595,927 3,813,248 Other liabilities 505,942 641,662 585,908 552,209 576,826 Total liabilities 17,002,858 17,125,040 17,120,913 17,194,796 16,974,956 Shareholders' equity 1,676,521 1,592,493 1,582,885 1,580,291 1,523,828 Total liabilities and equity $ 18,679,379 $ 18,717,533 $ 18,703,798 $ 18,775,087 $ 18,498,784 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) PERIOD END BALANCES 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Cash and due from banks $ 606,261 $ 975,543 $ 750,492 $ 832,052 $ 1,297,144 Securities available for sale 1,702,299 1,762,878 1,766,174 1,871,883 1,984,162 Securities held to maturity 1,415,025 1,426,279 1,438,287 1,458,665 1,474,338 LHFS 172,937 184,812 169,244 181,094 175,926 LHFI 13,057,943 12,950,524 12,810,259 12,613,967 12,497,195 ACL LHFI (142,998 ) (139,367 ) (134,031 ) (129,298 ) (122,239 ) Net LHFI 12,914,945 12,811,157 12,676,228 12,484,669 12,374,956 Premises and equipment, net 232,924 232,537 230,718 227,630 223,975 Mortgage servicing rights 138,044 131,870 142,379 134,350 127,206 Goodwill 384,237 384,237 384,237 384,237 384,237 Identifiable intangible assets 2,845 2,965 3,093 3,222 3,352 Other real estate 7,620 6,867 5,485 1,137 1,684 Operating lease right-of-use assets 36,659 38,142 39,639 38,179 35,315 Other assets 762,816 764,902 784,863 805,508 794,883 Total assets $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 Deposits: Noninterest-bearing $ 3,039,652 $ 3,197,620 $ 3,320,124 $ 3,461,073 $ 3,797,055 Interest-bearing 12,298,905 12,372,143 11,781,799 11,452,827 10,986,606 Total deposits 15,338,557 15,569,763 15,101,923 14,913,900 14,783,661 Fed funds purchased and repurchases 393,215 405,745 321,799 311,179 477,980 Other borrowings 482,027 483,230 793,193 1,056,714 1,485,181 Subordinated notes 123,537 123,482 123,427 123,372 123,317 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 ACL on off-balance sheet credit exposures 33,865 34,057 34,945 34,841 34,596 Operating lease liabilities 40,185 41,584 42,730 40,845 37,988 Other liabilities 220,771 340,625 340,615 308,726 310,500 Total liabilities 16,694,013 17,060,342 16,820,488 16,851,433 17,315,079 Common stock 12,747 12,725 12,724 12,724 12,720 Capital surplus 160,521 159,688 158,316 156,834 155,297 Retained earnings 1,736,485 1,709,157 1,687,199 1,667,339 1,636,463 Accumulated other comprehensive income (loss), net of tax (227,154 ) (219,723 ) (287,888 ) (265,704 ) (242,381 ) Total shareholders' equity 1,682,599 1,661,847 1,570,351 1,571,193 1,562,099 Total liabilities and equity $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands except per share data) (unaudited) Quarter Ended INCOME STATEMENTS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Interest and fees on LHFS & LHFI-FTE $ 209,456 $ 210,288 $ 206,523 $ 192,941 $ 178,967 Interest on securities-taxable 15,634 15,936 16,624 16,779 16,761 Interest on securities-tax exempt-FTE 4 44 58 69 92 Interest on fed funds sold and reverse repurchases 1 2 3 45 30 Other interest income 8,110 9,918 8,613 12,077 6,527 Total interest income-FTE 233,205 236,188 231,821 221,911 202,377 Interest on deposits 83,716 80,847 69,797 54,409 40,898 Interest on fed funds purchased and repurchases 5,591 5,347 5,375 4,865 4,832 Other interest expense 7,703 9,946 14,713 19,350 15,575 Total interest expense 97,010 96,140 89,885 78,624 61,305 Net interest income-FTE 136,195 140,048 141,936 143,287 141,072 Provision for credit losses, LHFI 7,708 7,585 8,322 8,211 3,244 Provision for credit losses, off-balance sheet credit exposures (192 ) (888 ) 104 245 (2,242 ) Net interest income after provision-FTE 128,679 133,351 133,510 134,831 140,070 Service charges on deposit accounts 10,958 11,311 11,074 10,695 10,336 Bank card and other fees 7,428 8,502 8,217 8,917 7,803 Mortgage banking, net 8,915 5,519 6,458 6,600 7,639 Insurance commissions 15,464 13,197 15,303 14,764 14,305 Wealth management 8,952 8,657 8,773 8,882 8,780 Other, net 3,632 2,579 2,399 3,695 2,514 Securities gains (losses), net — 39 — — — Total noninterest income 55,349 49,804 52,224 53,553 51,377 Salaries and employee benefits 75,458 78,003 76,666 75,940 74,056 Services and fees 24,839 27,906 27,882 28,264 25,426 Net occupancy-premises 7,496 7,362 7,383 7,108 7,629 Equipment expense 6,385 6,517 6,816 6,404 6,405 Litigation settlement expense — — 6,500 — — Other expense 16,968 16,641 15,698 14,502 14,811 Total noninterest expense 131,146 136,429 140,945 132,218 128,327 Income before income taxes and tax eq adj 52,882 46,726 44,789 56,166 63,120 Tax equivalent adjustment 3,365 3,306 3,299 3,383 3,477 Income before income taxes 49,517 43,420 41,490 52,783 59,643 Income taxes 7,982 7,297 7,461 7,746 9,343 Net income $ 41,535 $ 36,123 $ 34,029 $ 45,037 $ 50,300 Per share data Earnings per share - basic $ 0.68 $ 0.59 $ 0.56 $ 0.74 $ 0.82 Earnings per share - diluted $ 0.68 $ 0.59 $ 0.56 $ 0.74 $ 0.82 Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 Weighted average shares outstanding Basic 61,128,425 61,070,481 61,069,750 61,063,277 61,011,059 Diluted 61,348,364 61,296,840 61,263,032 61,230,031 61,193,275 Period end shares outstanding 61,178,366 61,071,173 61,070,095 61,069,036 61,048,516 See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 ($ in thousands) (unaudited) Quarter Ended NONPERFORMING ASSETS 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Nonaccrual LHFI Alabama (1) $ 23,261 $ 23,271 $ 23,530 $ 11,058 $ 10,919 Florida 585 170 151 334 256 Mississippi (2) 59,059 54,615 45,050 36,288 32,560 Tennessee (3) 1,800 1,802 1,841 5,088 5,416 Texas 13,646 20,150 20,327 22,259 23,224 Total nonaccrual LHFI 98,351 100,008 90,899 75,027 72,375 Other real estate Alabama (1) 1,050 1,397 315 — — Florida 71 — — — — Mississippi (2) 2,870 1,242 942 1,137 1,495 Tennessee (3) 86 — — — 189 Texas 3,543 4,228 4,228 — — Total other real estate 7,620 6,867 5,485 1,137 1,684 Total nonperforming assets $ 105,971 $ 106,875 $ 96,384 $ 76,164 $ 74,059 LOANS PAST DUE OVER 90 DAYS LHFI $ 5,243 $ 5,790 $ 3,804 $ 3,911 $ 2,255 LHFS-Guaranteed GNMA serviced loans (no obligation to repurchase) $ 56,530 $ 51,243 $ 42,532 $ 35,766 $ 41,468 Quarter Ended ACL LHFI 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Beginning Balance $ 139,367 $ 134,031 $ 129,298 $ 122,239 $ 120,214 Provision for credit losses, LHFI 7,708 7,585 8,322 8,211 3,244 Charge-offs (6,324 ) (4,250 ) (7,496 ) (2,773 ) (2,996 ) Recoveries 2,247 2,001 3,907 1,621 1,777 Net (charge-offs) recoveries (4,077 ) (2,249 ) (3,589 ) (1,152 ) (1,219 ) Ending Balance $ 142,998 $ 139,367 $ 134,031 $ 129,298 $ 122,239 NET (CHARGE-OFFS) RECOVERIES Alabama (1) $ (341 ) $ (299 ) $ (165 ) $ (141 ) $ (268 ) Florida 277 180 21 (35 ) (36 ) Mississippi (2) (1,489 ) (1,943 ) (1,867 ) (762 ) (775 ) Tennessee (3) (179 ) (193 ) 2,127 (166 ) (124 ) Texas (2,345 ) 6 (3,705 ) (48 ) (16 ) Total net (charge-offs) recoveries $ (4,077 ) $ (2,249 ) $ (3,589 ) $ (1,152 ) $ (1,219 ) (1) Alabama includes the Georgia Loan Production Office. (2) Mississippi includes Central and Southern Mississippi Regions. (3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2024 (unaudited) Quarter Ended FINANCIAL RATIOS AND OTHER DATA 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Return on average equity 9.96 % 9.00 % 8.53 % 11.43 % 13.39 % Return on average tangible equity 12.98 % 11.92 % 11.32 % 15.18 % 18.03 % Return on average assets 0.89 % 0.77 % 0.72 % 0.96 % 1.10 % Interest margin - Yield - FTE 5.49 % 5.48 % 5.38 % 5.16 % 4.87 % Interest margin - Cost 2.28 % 2.23 % 2.08 % 1.83 % 1.47 % Net interest margin - FTE 3.21 % 3.25 % 3.29 % 3.33 % 3.39 % Efficiency ratio (1) 67.25 % 70.25 % 68.33 % 66.17 % 65.60 % Full-time equivalent employees 2,712 2,757 2,756 2,761 2,758 CREDIT QUALITY RATIOS Net (recoveries) charge-offs / average loans 0.12 % 0.07 % 0.11 % 0.04 % 0.04 % Provision for credit losses, LHFI / average loans 0.24 % 0.23 % 0.26 % 0.26 % 0.10 % Nonaccrual LHFI / (LHFI + LHFS) 0.74 % 0.76 % 0.70 % 0.59 % 0.57 % Nonperforming assets / (LHFI + LHFS) 0.80 % 0.81 % 0.74 % 0.60 % 0.58 % Nonperforming assets / (LHFI + LHFS + other real estate) 0.80 % 0.81 % 0.74 % 0.60 % 0.58 % ACL LHFI / LHFI 1.10 % 1.08 % 1.05 % 1.03 % 0.98 % ACL LHFI-commercial / commercial LHFI 0.93 % 0.85 % 0.86 % 0.84 % 0.80 % ACL LHFI-consumer / consumer and home mortgage LHFI 1.63 % 1.81 % 1.66 % 1.60 % 1.54 % ACL LHFI / nonaccrual LHFI 145.39 % 139.36 % 147.45 % 172.34 % 168.90 % ACL LHFI / nonaccrual LHFI (excl individually analyzed loans) 235.29 % 249.31 % 273.60 % 301.44 % 320.80 % CAPITAL RATIOS Total equity / total assets 9.16 % 8.88 % 8.54 % 8.53 % 8.28 % Tangible equity / tangible assets 7.20 % 6.95 % 6.57 % 6.56 % 6.35 % Tangible equity / risk-weighted assets 8.49 % 8.41 % 7.81 % 7.91 % 7.94 % Tier 1 leverage ratio 8.76 % 8.62 % 8.49 % 8.35 % 8.29 % Common equity tier 1 capital ratio 10.12 % 10.04 % 9.89 % 9.87 % 9.76 % Tier 1 risk-based capital ratio 10.51 % 10.44 % 10.29 % 10.27 % 10.17 % Total risk-based capital ratio 12.42 % 12.29 % 12.11 % 12.08 % 11.95 % STOCK PERFORMANCE Market value-Close $ 28.11 $ 27.88 $ 21.73 $ 21.12 $ 24.70 Book value $ 27.50 $ 27.21 $ 25.71 $ 25.73 $ 25.59 Tangible book value $ 21.18 $ 20.87 $ 19.37 $ 19.38 $ 19.24 (1) See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 1 - Securities Available for Sale and Held to Maturity The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity: 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 SECURITIES AVAILABLE FOR SALE U.S. Treasury securities $ 372,424 $ 372,368 $ 363,476 $ 362,966 $ 386,903 U.S. Government agency obligations 5,594 5,792 6,780 6,999 7,254 Obligations of states and political subdivisions — — 4,642 4,813 4,907 Mortgage-backed securities Residential mortgage pass-through securities Guaranteed by GNMA 22,232 23,135 22,881 25,336 26,851 Issued by FNMA and FHLMC 1,129,521 1,176,798 1,171,521 1,250,435 1,317,848 Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 79,099 86,074 90,402 98,388 108,192 Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 93,429 98,711 106,472 122,946 132,207 Total securities available for sale $ 1,702,299 $ 1,762,878 $ 1,766,174 $ 1,871,883 $ 1,984,162 SECURITIES HELD TO MATURITY U.S. Treasury securities $ 29,261 $ 29,068 $ 28,872 $ 28,679 $ 28,486 Obligations of states and political subdivisions 340 340 341 1,180 4,507 Mortgage-backed securities Residential mortgage pass-through securities Guaranteed by GNMA 18,387 13,005 13,090 13,235 4,336 Issued by FNMA and FHLMC 461,457 469,593 474,003 484,679 497,854 Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 146,447 154,466 162,031 171,002 179,334 Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC, or GNMA 759,133 759,807 759,950 759,890 759,821 Total securities held to maturity $ 1,415,025 $ 1,426,279 $ 1,438,287 $ 1,458,665 $ 1,474,338 At March 31, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $54.8 million. Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.99% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 2 – Loan Composition LHFI consisted of the following during the periods presented: LHFI BY TYPE 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Loans secured by real estate: Construction, land development and other land loans $ 1,539,461 $ 1,510,679 $ 1,609,326 $ 1,722,657 $ 1,723,772 Secured by 1-4 family residential properties 2,891,481 2,904,715 2,893,606 2,854,182 2,822,048 Secured by nonfarm, nonresidential properties 3,543,235 3,489,434 3,569,671 3,471,728 3,375,579 Other real estate secured 1,384,610 1,312,551 1,218,499 954,410 847,527 Commercial and industrial loans 1,922,711 1,922,910 1,828,924 1,883,480 1,882,360 Consumer loans 156,430 161,725 161,940 163,788 162,911 State and other political subdivision loans 1,052,844 1,088,466 1,056,569 1,111,710 1,193,727 Other loans and leases 567,171 560,044 471,724 452,012 489,271 LHFI 13,057,943 12,950,524 12,810,259 12,613,967 12,497,195 ACL LHFI (142,998 ) (139,367 ) (134,031 ) (129,298 ) (122,239 ) Net LHFI $ 12,914,945 $ 12,811,157 $ 12,676,228 $ 12,484,669 $ 12,374,956 The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region’s diversified mix of loans: March 31, 2024 LHFI - COMPOSITION BY REGION Total Alabama (1) 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 $ 1,539,461 $ 753,918 $ 38,790 $ 391,843 $ 40,988 $ 313,922 Secured by 1-4 family residential properties 2,891,481 154,303 54,099 2,565,424 83,292 34,363 Secured by nonfarm, nonresidential properties 3,543,235 981,921 233,109 1,485,304 150,017 692,884 Other real estate secured 1,384,610 561,115 1,728 417,757 6,965 397,045 Commercial and industrial loans 1,922,711 657,294 23,941 841,797 150,313 249,366 Consumer loans 156,430 21,302 7,399 95,951 18,178 13,600 State and other political subdivision loans 1,052,844 70,161 52,069 782,985 23,700 123,929 Other loans and leases 567,171 236,775 8,202 200,957 57,098 64,139 Loans $ 13,057,943 $ 3,436,789 $ 419,337 $ 6,782,018 $ 530,551 $ 1,889,248 CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION Lots $ 70,445 $ 28,830 $ 8,196 $ 17,829 $ 4,587 $ 11,003 Development 122,788 56,825 1,260 28,668 12,576 23,459 Unimproved land 110,272 20,907 13,404 29,759 8,006 38,196 1-4 family construction 313,503 162,760 13,501 91,453 15,693 30,096 Other construction 922,453 484,596 2,429 224,134 126 211,168 Construction, land development and other land loans $ 1,539,461 $ 753,918 $ 38,790 $ 391,843 $ 40,988 $ 313,922 (1) Includes Georgia Loan Production Office. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 2 – Loan Composition (continued) March 31, 2024 Total Alabama (1) Florida Mississippi (Central and Southern Regions) Tennessee (Memphis, TN and Northern MS Regions) Texas LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION Non-owner occupied: Retail $ 367,575 $ 139,444 $ 24,147 $ 106,123 $ 17,381 $ 80,480 Office 261,984 101,364 19,605 73,689 1,617 65,709 Hotel/motel 255,925 128,356 48,992 53,054 25,523 — Mini-storage 165,962 40,724 1,864 103,323 745 19,306 Industrial 438,626 83,304 19,377 147,199 8,143 180,603 Health care 97,837 69,786 684 24,707 331 2,329 Convenience stores 25,572 3,214 419 13,599 239 8,101 Nursing homes/senior living 513,854 227,254 — 186,507 4,724 95,369 Other 109,838 31,790 9,067 51,626 8,211 9,144 Total non-owner occupied loans 2,237,173 825,236 124,155 759,827 66,914 461,041 Owner-occupied: Office 150,283 41,047 37,629 41,658 11,555 18,394 Churches 56,697 14,208 4,094 32,706 3,215 2,474 Industrial warehouses 156,148 11,553 4,537 39,874 15,766 84,418 Health care 124,330 11,337 8,163 85,172 2,251 17,407 Convenience stores 148,158 12,172 29,156 72,715 — 34,115 Retail 88,445 9,457 15,287 35,730 17,087 10,884 Restaurants 48,491 4,008 2,930 21,360 16,367 3,826 Auto dealerships 42,394 5,138 194 21,007 16,055 — Nursing homes/senior living 353,641 35,216 — 292,264 — 26,161 Other 137,475 12,549 6,964 82,991 807 34,164 Total owner-occupied loans 1,306,062 156,685 108,954 725,477 83,103 231,843 Loans secured by nonfarm, nonresidential properties $ 3,543,235 $ 981,921 $ 233,109 $ 1,485,304 $ 150,017 $ 692,884 (1) Includes Georgia Loan Production Office. Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Securities – taxable 1.88 % 1.85 % 1.89 % 1.87 % 1.85 % Securities – nontaxable 4.73 % 3.81 % 4.05 % 4.25 % 4.00 % Securities – total 1.88 % 1.85 % 1.89 % 1.87 % 1.86 % LHFI & LHFS 6.40 % 6.41 % 6.34 % 6.08 % 5.79 % Fed funds sold & reverse repurchases 3.53 % 6.56 % 5.17 % 5.51 % 5.11 % Other earning assets 5.71 % 5.87 % 5.01 % 5.36 % 4.09 % Total earning assets 5.49 % 5.48 % 5.38 % 5.16 % 4.87 % Interest-bearing deposits 2.74 % 2.67 % 2.39 % 1.96 % 1.53 % Fed funds purchased & repurchases 5.25 % 5.26 % 5.14 % 5.01 % 4.49 % Other borrowings 4.78 % 5.08 % 5.32 % 5.12 % 4.87 % Total interest-bearing liabilities 2.92 % 2.89 % 2.72 % 2.42 % 1.98 % Total Deposits 2.18 % 2.10 % 1.84 % 1.48 % 1.13 % Net interest margin 3.21 % 3.25 % 3.29 % 3.33 % 3.39 % TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities (continued) 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. The net interest margin decreased four basis points when compared to the fourth quarter of 2023, totaling 3.21% for the first quarter of 2024, primarily due to increased costs of interest-bearing deposits which resulted from the higher interest rate environment. Note 4 – Mortgage Banking Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $1.1 million during the first quarter of 2024. The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Mortgage servicing income, net $ 6,934 $ 6,731 $ 6,916 $ 6,764 $ 6,785 Change in fair value-MSR from runoff (1,926 ) (2,972 ) (3,203 ) (2,710 ) (1,145 ) Gain on sales of loans, net. 5,009 3,913 3,748 3,887 3,797 Mortgage banking income before hedge ineffectiveness 10,017 7,672 7,461 7,941 9,437 Change in fair value-MSR from market changes 5,123 (10,224 ) 6,809 5,898 (3,972 ) Change in fair value of derivatives (6,225 ) 8,071 (7,812 ) (7,239 ) 2,174 Net positive (negative) hedge ineffectiveness (1,102 ) (2,153 ) (1,003 ) (1,341 ) (1,798 ) Mortgage banking, net $ 8,915 $ 5,519 $ 6,458 $ 6,600 $ 7,639 TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands) (unaudited) Note 5 – Other Noninterest Income and Expense Other noninterest income consisted of the following for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Partnership amortization for tax credit purposes $ (1,834 ) $ (2,013 ) $ (1,995 ) $ (2,019 ) $ (1,961 ) Increase in life insurance cash surrender value 1,844 1,825 1,784 1,716 1,693 Other miscellaneous income 3,622 2,767 2,610 3,998 2,782 Total other, net $ 3,632 $ 2,579 $ 2,399 $ 3,695 $ 2,514 Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense. Other noninterest expense consisted of the following for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Loan expense $ 2,955 $ 2,380 $ 3,130 $ 3,066 $ 2,538 Amortization of intangibles 120 128 129 130 288 FDIC assessment expense 4,509 4,844 3,765 2,550 2,370 Other real estate expense, net 671 (184 ) (40 ) 171 172 Other miscellaneous expense 8,713 9,473 8,714 8,585 9,443 Total other expense $ 16,968 $ 16,641 $ 15,698 $ 14,502 $ 14,811 Note 6 – Non-GAAP Financial Measures In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable. Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2024 ($ in thousands except per share data) (unaudited) Note 6 – Non-GAAP Financial Measures (continued) Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 TANGIBLE EQUITY AVERAGE BALANCES Total shareholders' equity $ 1,676,521 $ 1,592,493 $ 1,582,885 $ 1,580,291 $ 1,523,828 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,920 ) (3,044 ) (3,174 ) (3,301 ) (3,523 ) Total average tangible equity $ 1,289,364 $ 1,205,212 $ 1,195,474 $ 1,192,753 $ 1,136,068 PERIOD END BALANCES Total shareholders' equity $ 1,682,599 $ 1,661,847 $ 1,570,351 $ 1,571,193 $ 1,562,099 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,845 ) (2,965 ) (3,093 ) (3,222 ) (3,352 ) Total tangible equity (a) $ 1,295,517 $ 1,274,645 $ 1,183,021 $ 1,183,734 $ 1,174,510 TANGIBLE ASSETS Total assets $ 18,376,612 $ 18,722,189 $ 18,390,839 $ 18,422,626 $ 18,877,178 Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (384,237 ) Identifiable intangible assets (2,845 ) (2,965 ) (3,093 ) (3,222 ) (3,352 ) Total tangible assets (b) $ 17,989,530 $ 18,334,987 $ 18,003,509 $ 18,035,167 $ 18,489,589 Risk-weighted assets (c) $ 15,257,385 $ 15,153,263 $ 15,143,531 $ 14,966,614 $ 14,793,893 NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION Net income (loss) $ 41,535 $ 36,123 $ 34,029 $ 45,037 $ 50,300 Plus: Intangible amortization net of tax 90 96 96 97 216 Net income (loss) adjusted for intangible amortization $ 41,625 $ 36,219 $ 34,125 $ 45,134 $ 50,516 Period end common shares outstanding (d) 61,178,366 61,071,173 61,070,095 61,069,036 61,048,516 TANGIBLE COMMON EQUITY MEASUREMENTS Return on average tangible equity (1) 12.98 % 11.92 % 11.32 % 15.18 % 18.03 % Tangible equity/tangible assets (a)/(b) 7.20 % 6.95 % 6.57 % 6.56 % 6.35 % Tangible equity/risk-weighted assets (a)/(c) 8.49 % 8.41 % 7.81 % 7.91 % 7.94 % Tangible book value (a)/(d)*1,000 $ 21.18 $ 20.87 $ 19.37 $ 19.38 $ 19.24 COMMON EQUITY TIER 1 CAPITAL (CET1) Total shareholders' equity $ 1,682,599 $ 1,661,847 $ 1,570,351 $ 1,571,193 $ 1,562,099 CECL transition adjustment 6,500 13,000 13,000 13,000 13,000 AOCI-related adjustments 227,154 219,723 287,888 265,704 242,381 CET1 adjustments and deductions: Goodwill net of associated deferred tax liabilities (DTLs) (370,205 ) (370,212 ) (370,219 ) (370,227 ) (370,234 ) Other adjustments and deductions for CET1 (2) (2,588 ) (2,693 ) (2,803 ) (2,915 ) (3,275 ) CET1 capital (e) 1,543,460 1,521,665 1,498,217 1,476,755 1,443,971 Additional tier 1 capital instruments plus related surplus 60,000 60,000 60,000 60,000 60,000 Tier 1 capital $ 1,603,460 $ 1,581,665 $ 1,558,217 $ 1,536,755 $ 1,503,971 Common equity tier 1 capital ratio (e)/(c) 10.12 % 10.04 % 9.89 % 9.87 % 9.76 % (1) Calculation = ((net income (loss) 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 March 31, 2024 ($ in thousands except per share data) (unaudited) Note 6 – Non-GAAP Financial Measures (continued) Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure. The following table presents pre-provision net revenue (PPNR) during the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net interest income (GAAP) $ 132,830 $ 136,742 $ 138,637 $ 139,904 $ 137,595 Noninterest income (GAAP) 55,349 49,804 52,224 53,553 51,377 Pre-provision revenue (a) $ 188,179 $ 186,546 $ 190,861 $ 193,457 $ 188,972 Noninterest expense (GAAP) $ 131,146 $ 136,429 $ 140,945 $ 132,218 $ 128,327 Less: Reduction in force expense — (1,406 ) — — — Litigation settlement expense — — (6,500 ) — — Adjusted noninterest expense - PPNR (Non-GAAP) (b) $ 131,146 $ 135,023 $ 134,445 $ 132,218 $ 128,327 PPNR (Non-GAAP) (a)-(b) $ 57,033 $ 51,523 $ 56,416 $ 61,239 $ 60,645 The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented: Quarter Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Total noninterest expense (GAAP) $ 131,146 $ 136,429 $ 140,945 $ 132,218 $ 128,327 Less: Other real estate expense, net (671 ) 184 40 (171 ) (172 ) Amortization of intangibles (120 ) (128 ) (129 ) (130 ) (288 ) Charitable contributions resulting in state tax credits (300 ) (325 ) (325 ) (325 ) (325 ) Reduction in force expense — (1,406 ) — — — Litigation settlement expense — — (6,500 ) — — Adjusted noninterest expense (Non-GAAP) (c) $ 130,055 $ 134,754 $ 134,031 $ 131,592 $ 127,542 Net interest income (GAAP) $ 132,830 $ 136,742 $ 138,637 $ 139,904 $ 137,595 Add: Tax equivalent adjustment 3,365 3,306 3,299 3,383 3,477 Net interest income-FTE (Non-GAAP) (a) $ 136,195 $ 140,048 $ 141,936 $ 143,287 $ 141,072 Noninterest income (GAAP) $ 55,349 $ 49,804 $ 52,224 $ 53,553 $ 51,377 Add: Partnership amortization for tax credit purposes 1,834 2,013 1,995 2,019 1,961 Less: Securities (gains) losses, net — (39 ) — — — Adjusted noninterest income (Non-GAAP) (b) $ 57,183 $ 51,778 $ 54,219 $ 55,572 $ 53,338 Adjusted revenue (Non-GAAP) (a)+(b) $ 193,378 $ 191,826 $ 196,155 $ 198,859 $ 194,410 Efficiency ratio (Non-GAAP) (c)/((a)+(b)) 67.25 % 70.25 % 68.33 % 66.17 % 65.60 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240423449062/en/
Trustmark Investor Contacts: Thomas C. Owens Treasurer and Principal Financial Officer 601-208-7853 F. Joseph Rein, Jr. Senior Vice President 601-208-6898 Trustmark Media Contact: Melanie A. Morgan Senior Vice President 601-208-2979