Trustmark Corporation Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

Trustmark Corporation (NASDAQGS: TRMK) reported a net income of $34.3 million for Q2 2022, with diluted earnings per share of $0.56. Loans held for investment increased by $547.7 million, or 5.3%, while total revenue rose by 8.1% to $165.9 million. Net interest income expanded 12.9%, leading to a net interest margin of 2.90%. Deposits totaled $14.8 billion, down 2.3% from the previous quarter. The company declared a quarterly cash dividend of $0.23 per share. Trustmark's credit quality remains solid with recoveries exceeding charge-offs.

Positive

• Net income of $34.3 million in Q2 2022.
• Loans HFI increased by $547.7 million (5.3%) linked-quarter.
• Total revenue rose by 8.1% to $165.9 million.
• Net interest income increased 12.9% to $115.6 million.
• Net interest margin expanded to 2.90%.

Negative

• Deposits decreased by $343.1 million (2.3%) linked-quarter.
• Tangible book value per share decreased by 3.2% to $19.58.
• Noninterest income fell by $862 thousand from the prior quarter.

Performance Reflects Strong Loan Growth, Solid Credit Quality and Expanding Net Interest Margin

JACKSON, Miss.--(BUSINESS WIRE)-- Trustmark Corporation (NASDAQGS: TRMK) reported net income of $34.3 million in the second quarter of 2022, representing diluted earnings per share of $0.56. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2022, to shareholders of record on September 1, 2022.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/52791465/en

Second Quarter Highlights

• Loans held for investment (HFI) increased $547.7 million, or 5.3%, from the prior quarter
• Deposits totaled $14.8 billion, with noninterest-bearing deposits representing 30.5% of total deposits
• Total revenue expanded 8.1% from the prior quarter to $165.9 million
• Net interest income (FTE) increased 12.9% from the prior quarter to $115.6 million, resulting in a 32 basis point expansion in the net interest margin to 2.90%
• Noninterest income totaled $53.3 million, representing 32.1% of total revenue
• Credit quality remained solid; recoveries exceeded charge-offs and nonperforming assets declined 3.7% linked-quarter

Duane A. Dewey, President and CEO, stated, “Our company produced strong second quarter results with significant loan growth, expansion of the net interest margin, consistent performance from our fee businesses and solid credit quality. Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner. Our continued implementation of enhanced technology, coupled with a comprehensive program to improve efficiency, enhances Trustmark’s ability to grow and serve customers and build long-term value for our shareholders.”

Balance Sheet Management

• Loans HFI totaled $10.9 billion, up 5.3% from the prior quarter and 7.8% year-over-year
• Investment securities totaled $3.8 billion, up 4.3% from the prior quarter and 26.8% year-over-year
• Deposits totaled $14.8 billion, down 2.3% from the prior quarter and up 0.9% year-over-year
• Maintained strong capital position with CET1 ratio of 11.01% and total risk-based capital ratio of 13.26%

Loans HFI totaled $10.9 billion at June 30, 2022, reflecting an increase of $547.7 million, or 5.3%, linked-quarter and $792.0 million, or 7.8%, year-over-year. Linked-quarter growth was broad-based, with increases in virtually all categories with the exception of loans secured by other real estate and state and other political subdivision loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.8 billion at June 30, 2022, down $343.1 million, or 2.3%, from the prior quarter and up $138.1 million, or 0.9%, year-over-year. The linked-quarter change was principally attributable to a decline in public funds. Trustmark continues to maintain a strong liquidity position as loans HFI represented 74.1% of total deposits at June 30, 2022. Noninterest-bearing deposits represented 30.5% of total deposits at the end of the second quarter. Interest-bearing deposit costs totaled 0.11% in the second quarter, unchanged from the prior quarter. The total cost of interest-bearing liabilities was 0.17% in the second quarter of 2022, an increase of 1 basis point from the prior quarter.

During the second quarter, Trustmark repurchased $7.5 million, or approximately 263 thousand of its common shares. During the first six months of 2022, Trustmark repurchased $16.6 million, or approximately 542 thousand of its common shares. At June 30, 2022, Trustmark had $83.4 million in remaining authority under its existing stock repurchase program, which expires on December 31, 2022. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At June 30, 2022, Trustmark’s tangible equity-to-tangible assets ratio was 7.23% while its total risk-based capital ratio was 13.26%. Tangible book value per share was $19.58 at June 30, 2022, down 3.2% from the prior quarter reflecting a decline in accumulated other comprehensive income due to mark-to-market adjustments on securities available for sale resulting from the increase in market interest rates during the second quarter.

Credit Quality

• Allowance for credit losses (ACL) represented 475% of nonaccrual loans, excluding individually evaluated loans at June 30, 2022
• Recoveries exceeded charge-offs by $1.7 million in the second quarter
• Other real estate totaled $3.0 million at June 30, 2022

Nonaccrual loans totaled $62.1 million at June 30, 2022, down $2.3 million from the prior quarter and up $10.6 million year-over-year. Other real estate totaled $3.0 million, reflecting a $153 thousand decrease from the prior quarter and decline of $6.4 million year-over-year. Collectively, nonperforming assets totaled $65.1 million at June 30, 2022, reflecting a linked-quarter decrease of $2.5 million and year-over-year increase of $4.2 million.

The provision for credit losses for loans HFI was $2.7 million in the second quarter. This provisioning was primarily driven by reserves related to loan growth and the nature and volume of the portfolio offset by improvements in macroeconomic forecasts. The provision for credit losses for off-balance sheet credit exposures was a negative $1.6 million in the second quarter. Off-balance sheet negative provision expense was primarily driven by improvements in macroeconomic forecasts. Collectively, the provision for credit losses totaled $1.1 million in the second quarter compared to a negative $2.0 million in the prior quarter and an expense of $537 thousand in the second quarter of 2021.

Allocation of Trustmark’s $103.1 million allowance for credit losses on loans HFI represented 0.88% of commercial loans and 1.14% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 0.94% at June 30, 2022. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Total revenue increased $12.5 million, or 8.1%, linked-quarter
• Net interest income (FTE) expanded $13.2 million, or 12.9%, linked-quarter
• Noninterest income totaled $53.3 million, representing 32.1% of total revenue in the second quarter

Revenue in the second quarter totaled $165.9 million, an increase of $12.5 million, or 8.1%, from the prior quarter and a decrease of $9.9 million, or 5.6%, from the same quarter in the prior year. The linked-quarter increase reflected higher net interest income while the decline in revenue year-over-year was principally due to the reduction in interest and fees on Paycheck Protection Program (PPP) loans as well as the decline in mortgage banking revenue from historically high levels.

Net interest income (FTE) in the second quarter totaled $115.6 million, resulting in a net interest margin of 2.90%, up 32 basis points from the prior quarter. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 3.06% during the second quarter, an increase of 18 basis points when compared to the prior quarter. The expansion of the net interest margin excluding PPP loans and the Federal Reserve Bank balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio which resulted from the higher interest rate environment.

Noninterest income in the second quarter totaled $53.3 million, a decrease of $862 thousand from the prior quarter and $3.2 million year-over-year. The linked quarter decline was attributable to lower mortgage banking and other, net revenue, which were offset by increased bank card and other fees and service charges on deposit accounts. Mortgage loan production in the second quarter totaled $681.4 million, up 25.2% from the prior quarter and down 7.5% year-over-year. Mortgage banking revenue totaled $8.1 million in the second quarter, a decrease of $1.7 million from the prior quarter and $9.2 million year-over-year. The linked-quarter decline was principally attributable to changes in the mortgage servicing net hedge ineffectiveness.

Wealth management revenue totaled $9.1 million in the second quarter, an increase of $48 thousand, from the prior quarter and $156 thousand, year-over-year. The linked-quarter increase was attributable to increased trust and investment revenue offset by lower brokerage revenue. Insurance revenue totaled $13.7 million in the second quarter, down 2.7%, or $387 thousand, from the prior quarter and up 12.2%, or $1.5 million, year-over-year. Service charges on deposit accounts increased $775 thousand, or 8.2%, from the prior quarter and $2.6 million, or 34.3%, year-over-year. Bank card and other fees increased $1.7 million from the prior quarter and $1.9 million year-over-year.

Noninterest Expense

• Noninterest expense totaled $123.8 million in the second quarter, up $2.2 million, or 1.8%, from the prior quarter
• Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses and charitable contributions resulting in state tax credits, increased $1.8 million, or 1.5%, from the prior quarter; please refer to the Consolidated Financial Information, Note 6 – Non-GAAP Financial Measures

Noninterest expense in the second quarter was $123.8 million, up $2.2 million, or 1.8%, from the prior quarter. Salaries and employee benefits increased $2.1 million linked-quarter due primarily to commissions and annual merit increases. Services and fees were relatively unchanged linked-quarter while net occupancy expenses were down 2.6%.

FIT2GROW

“During the second quarter, we announced FIT2GROW, a comprehensive program of Focus, Innovation and Transformation designed to enhance Trustmark’s ability to grow and serve customers. As part of this program, we are focusing our community bank efforts on commercial, small business, and consumer lines of business. This will provide expertise and focus while also generating profitable revenue growth. We have opened a new Atlanta, Georgia LPO to focus on our institutional businesses, including Commercial Real Estate, Residential Real Estate, Corporate Banking and Specialty Banking. We have added seasoned professionals to our team to carry out our strategy in the southeast. Within our Specialty Banking unit based in Atlanta, plans are underway to establish an Equipment Finance line of business to focus on national, middle to large ticket business. We look forward to adding this product suite to our company,” said Dewey.

“Innovation is also a key component of FIT2GROW. In recent years, investments in state-of-the-art technology were made in Trustmark’s insurance, wealth management and mortgage banking areas as well as in human resources and accounting systems. We also made significant upgrades to our mobile banking platform, ITM network and digital marketing programs. Collectively, these investments have positioned Trustmark for growth, expansion and efficiency. More recently, we have been working toward the implementation of a new core banking system for consumer and commercial loans, deposits, and customer information. This implementation is a multi-year project, the next phase of which will occur in the third quarter of 2022. We have accelerated efforts to optimize our branch network, reflecting changing customer preferences and the continued migration to mobile and digital channels as announced in the first quarter. We will continue to pursue opportunities to redesign workflows and restructure the organization. This will further leverage the investments in technology, will broaden our reach, enhance customer experiences, and improve efficiency while building long-term value for our shareholders,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 27, 2022, 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, August 10, 2022, in archived format at the same web address or by calling (877) 344-7529, passcode 1899156.

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. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
													Linked Quarter							Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2022				3/31/2022				6/30/2021				$ Change				% Change			$ Change				% Change
Securities AFS-taxable (1)	$	3,094,364			$	3,245,502			$	2,339,662			$	(151,138	)		-4.7	%		$	754,702			32.3	%
Securities AFS-nontaxable		5,110				5,127				5,174				(17	)		-0.3	%			(64	)		-1.2	%
Securities HTM-taxable (1)		811,599				410,851				441,688				400,748			97.5	%			369,911			83.7	%
Securities HTM-nontaxable		5,630				7,327				10,958				(1,697	)		-23.2	%			(5,328	)		-48.6	%
Total securities		3,916,703				3,668,807				2,797,482				247,896			6.8	%			1,119,221			40.0	%
Paycheck protection program loans (PPP)		17,746				29,009				648,222				(11,263	)		-38.8	%			(630,476	)		-97.3	%
Loans (includes loans held for sale)		10,910,178				10,550,712				10,315,927				359,466			3.4	%			594,251			5.8	%
Fed funds sold and reverse repurchases		110				56				55				54			96.4	%			55			100.0	%
Other earning assets		1,139,312				1,811,713				1,750,385				(672,401	)		-37.1	%			(611,073	)		-34.9	%
Total earning assets		15,984,049				16,060,297				15,512,071				(76,248	)		-0.5	%			471,978			3.0	%
Allowance for credit losses (ACL), loans held for investment (LHFI)		(99,106	)			(99,390	)			(112,346	)			284			-0.3	%			13,240			-11.8	%
Other assets		1,513,127				1,550,848				1,622,388				(37,721	)		-2.4	%			(109,261	)		-6.7	%
Total assets	$	17,398,070			$	17,511,755			$	17,022,113			$	(113,685	)		-0.6	%		$	375,957			2.2	%
Interest-bearing demand deposits	$	4,578,235			$	4,429,056			$	4,056,910			$	149,179			3.4	%		$	521,325			12.9	%
Savings deposits		4,638,849				4,791,104				4,627,180				(152,255	)		-3.2	%			11,669			0.3	%
Time deposits		1,159,065				1,193,435				1,301,896				(34,370	)		-2.9	%			(142,831	)		-11.0	%
Total interest-bearing deposits		10,376,149				10,413,595				9,985,986				(37,446	)		-0.4	%			390,163			3.9	%
Fed funds purchased and repurchases		118,753				212,006				174,620				(93,253	)		-44.0	%			(55,867	)		-32.0	%
Other borrowings		80,283				91,090				132,199				(10,807	)		-11.9	%			(51,916	)		-39.3	%
Subordinated notes		123,116				123,061				122,897				55			0.0	%			219			0.2	%
Junior subordinated debt securities		61,856				61,856				61,856				—			0.0	%			—			0.0	%
Total interest-bearing liabilities		10,760,157				10,901,608				10,477,558				(141,451	)		-1.3	%			282,599			2.7	%
Noninterest-bearing deposits		4,590,338				4,601,108				4,512,268				(10,770	)		-0.2	%			78,070			1.7	%
Other liabilities		439,266				295,287				251,582				143,979			48.8	%			187,684			74.6	%
Total liabilities		15,789,761				15,798,003				15,241,408				(8,242	)		-0.1	%			548,353			3.6	%
Shareholders' equity		1,608,309				1,713,752				1,780,705				(105,443	)		-6.2	%			(172,396	)		-9.7	%
Total liabilities and equity	$	17,398,070			$	17,511,755			$	17,022,113			$	(113,685	)		-0.6	%		$	375,957			2.2	%

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
													Linked Quarter							Year over Year
PERIOD END BALANCES	6/30/2022				3/31/2022				6/30/2021				$ Change				% Change			$ Change				% Change
Cash and due from banks	$	742,461			$	1,917,564			$	2,267,224			$	(1,175,103	)		-61.3	%		$	(1,524,763	)		-67.3	%
Securities available for sale (1)		2,644,364				3,018,246				2,548,739				(373,882	)		-12.4	%			95,625			3.8	%
Securities held to maturity (1)		1,137,754				607,598				433,012				530,156			87.3	%			704,742			n/m
PPP loans		12,549				18,579				166,119				(6,030	)		-32.5	%			(153,570	)		-92.4	%
Loans held for sale (LHFS)		190,186				222,538				332,132				(32,352	)		-14.5	%			(141,946	)		-42.7	%
Loans held for investment (LHFI)		10,944,840				10,397,129				10,152,869				547,711			5.3	%			791,971			7.8	%
ACL LHFI		(103,140	)			(98,734	)			(104,032	)			(4,406	)		-4.5	%			892			0.9	%
Net LHFI		10,841,700				10,298,395				10,048,837				543,305			5.3	%			792,863			7.9	%
Premises and equipment, net		207,914				207,301				200,970				613			0.3	%			6,944			3.5	%
Mortgage servicing rights		121,014				111,050				80,764				9,964			9.0	%			40,250			49.8	%
Goodwill		384,237				384,237				384,237				—			0.0	%			—			0.0	%
Identifiable intangible assets		4,264				4,591				6,170				(327	)		-7.1	%			(1,906	)		-30.9	%
Other real estate		3,034				3,187				9,439				(153	)		-4.8	%			(6,405	)		-67.9	%
Operating lease right-of-use assets		34,684				34,048				33,201				636			1.9	%			1,483			4.5	%
Other assets		627,349				614,217				587,288				13,132			2.1	%			40,061			6.8	%
Total assets	$	16,951,510			$	17,441,551			$	17,098,132			$	(490,041	)		-2.8	%		$	(146,622	)		-0.9	%
Deposits:
Noninterest-bearing	$	4,509,472			$	4,739,102			$	4,446,991			$	(229,630	)		-4.8	%		$	62,481			1.4	%
Interest-bearing		10,260,696				10,374,190				10,185,093				(113,494	)		-1.1	%			75,603			0.7	%
Total deposits		14,770,168				15,113,292				14,632,084				(343,124	)		-2.3	%			138,084			0.9	%
Fed funds purchased and repurchases		70,157				170,499				157,176				(100,342	)		-58.9	%			(87,019	)		-55.4	%
Other borrowings		72,553				84,644				117,223				(12,091	)		-14.3	%			(44,670	)		-38.1	%
Subordinated notes		123,152				123,097				122,932				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		32,949				34,517				33,733				(1,568	)		-4.5	%			(784	)		-2.3	%
Operating lease liabilities		37,108				35,912				34,959				1,196			3.3	%			2,149			6.1	%
Other liabilities		196,871				186,352				158,860				10,519			5.6	%			38,011			23.9	%
Total liabilities		15,364,814				15,810,169				15,318,823				(445,355	)		-2.8	%			45,991			0.3	%
Common stock		12,752				12,806				13,079				(54	)		-0.4	%			(327	)		-2.5	%
Capital surplus		160,876				167,094				210,420				(6,218	)		-3.7	%			(49,544	)		-23.5	%
Retained earnings		1,620,210				1,600,138				1,566,451				20,072			1.3	%			53,759			3.4	%
Accumulated other comprehensive income (loss), net of tax		(207,142	)			(148,656	)			(10,641	)			(58,486	)		-39.3	%			(196,501	)		n/m
Total shareholders' equity		1,586,696				1,631,382				1,779,309				(44,686	)		-2.7	%			(192,613	)		-10.8	%
Total liabilities and equity	$	16,951,510			$	17,441,551			$	17,098,132			$	(490,041	)		-2.8	%		$	(146,622	)		-0.9	%

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands except per share data)
(unaudited)
	Quarter Ended												Linked Quarter							Year over Year
INCOME STATEMENTS	6/30/2022				3/31/2022				6/30/2021				$ Change				% Change			$ Change				% Change
Interest and fees on LHFS & LHFI-FTE	$	103,033			$	93,252			$	93,698			$	9,781			10.5	%		$	9,335			10.0	%
Interest and fees on PPP loans		184				168				25,555				16			9.5	%			(25,371	)		-99.3	%
Interest on securities-taxable		14,561				12,357				8,991				2,204			17.8	%			5,570			62.0	%
Interest on securities-tax exempt-FTE		107				122				149				(15	)		-12.3	%			(42	)		-28.2	%
Interest on fed funds sold and reverse repurchases		1				—				—				1			n/m				1			n/m
Other interest income		2,214				817				489				1,397			n/m				1,725			n/m
Total interest income-FTE		120,100				106,716				128,882				13,384			12.5	%			(8,782	)		-6.8	%
Interest on deposits		2,774				2,760				4,630				14			0.5	%			(1,856	)		-40.1	%
Interest on fed funds purchased and repurchases		70				70				59				—			0.0	%			11			18.6	%
Other interest expense		1,664				1,539				1,813				125			8.1	%			(149	)		-8.2	%
Total interest expense		4,508				4,369				6,502				139			3.2	%			(1,994	)		-30.7	%
Net interest income-FTE		115,592				102,347				122,380				13,245			12.9	%			(6,788	)		-5.5	%
Provision for credit losses, LHFI		2,716				(860	)			(3,991	)			3,576			n/m				6,707			n/m
Provision for credit losses, off-balance sheet credit exposures		(1,568	)			(1,106	)			4,528				(462	)		-41.8	%			(6,096	)		n/m
Net interest income after provision-FTE		114,444				104,313				121,843				10,131			9.7	%			(7,399	)		-6.1	%
Service charges on deposit accounts		10,226				9,451				7,613				775			8.2	%			2,613			34.3	%
Bank card and other fees		10,167				8,442				8,301				1,725			20.4	%			1,866			22.5	%
Mortgage banking, net		8,149				9,873				17,333				(1,724	)		-17.5	%			(9,184	)		-53.0	%
Insurance commissions		13,702				14,089				12,217				(387	)		-2.7	%			1,485			12.2	%
Wealth management		9,102				9,054				8,946				48			0.5	%			156			1.7	%
Other, net		1,907				3,206				2,001				(1,299	)		-40.5	%			(94	)		-4.7	%
Total noninterest income		53,253				54,115				56,411				(862	)		-1.6	%			(3,158	)		-5.6	%
Salaries and employee benefits		71,679				69,585				70,115				2,094			3.0	%			1,564			2.2	%
Services and fees		24,538				24,453				21,769				85			0.3	%			2,769			12.7	%
Net occupancy-premises		6,892				7,079				6,578				(187	)		-2.6	%			314			4.8	%
Equipment expense		6,047				6,061				5,567				(14	)		-0.2	%			480			8.6	%
Other expense		14,611				14,341				14,650				270			1.9	%			(39	)		-0.3	%
Total noninterest expense		123,767				121,519				118,679				2,248			1.8	%			5,088			4.3	%
Income before income taxes and tax eq adj		43,930				36,909				59,575				7,021			19.0	%			(15,645	)		-26.3	%
Tax equivalent adjustment		2,916				3,003				2,957				(87	)		-2.9	%			(41	)		-1.4	%
Income before income taxes		41,014				33,906				56,618				7,108			21.0	%			(15,604	)		-27.6	%
Income taxes		6,730				4,695				8,637				2,035			43.3	%			(1,907	)		-22.1	%
Net income	$	34,284			$	29,211			$	47,981			$	5,073			17.4	%		$	(13,697	)		-28.5	%
Per share data
Earnings per share - basic	$	0.56			$	0.47			$	0.76			$	0.09			19.1	%		$	(0.20	)		-26.3	%
Earnings per share - diluted	$	0.56			$	0.47			$	0.76			$	0.09			19.1	%		$	(0.20	)		-26.3	%
Dividends per share	$	0.23			$	0.23			$	0.23				—			0.0	%			—			0.0	%
Weighted average shares outstanding
Basic		61,378,226				61,514,395				63,214,593
Diluted		61,546,285				61,709,797				63,409,683
Period end shares outstanding		61,201,123				61,463,392				62,773,226

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
	Quarter Ended												Linked Quarter							Year over Year
NONPERFORMING ASSETS (1)	6/30/2022				3/31/2022				6/30/2021				$ Change				% Change			$ Change				% Change
Nonaccrual LHFI
Alabama	$	2,698			$	7,506			$	8,952			$	(4,808	)		-64.1	%		$	(6,254	)		-69.9	%
Florida		233				310				467				(77	)		-24.8	%			(234	)		-50.1	%
Mississippi (2)		23,039				21,318				23,422				1,721			8.1	%			(383	)		-1.6	%
Tennessee (3)		9,500				9,266				10,751				234			2.5	%			(1,251	)		-11.6	%
Texas		26,582				25,999				7,856				583			2.2	%			18,726			n/m
Total nonaccrual LHFI		62,052				64,399				51,448				(2,347	)		-3.6	%			10,604			20.6	%
Other real estate
Alabama		84				—				2,830				84			n/m				(2,746	)		-97.0	%
Mississippi (2)		2,950				3,187				6,550				(237	)		-7.4	%			(3,600	)		-55.0	%
Tennessee (3)		—				—				59				—			n/m				(59	)		n/m
Total other real estate		3,034				3,187				9,439				(153	)		-4.8	%			(6,405	)		-67.9	%
Total nonperforming assets	$	65,086			$	67,586			$	60,887			$	(2,500	)		-3.7	%		$	4,199			6.9	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,347			$	1,503			$	423			$	(156	)		-10.4	%		$	924			n/m
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	51,164			$	62,078			$	81,538			$	(10,914	)		-17.6	%		$	(30,374	)		-37.3	%
	Quarter Ended												Linked Quarter							Year over Year
ACL LHFI (1)	6/30/2022				3/31/2022				6/30/2021				$ Change				% Change			$ Change				% Change
Beginning Balance	$	98,734			$	99,457			$	109,191			$	(723	)		-0.7	%		$	(10,457	)		-9.6	%
Provision for credit losses, LHFI		2,716				(860	)			(3,991	)			3,576			n/m				6,707			n/m
Charge-offs		(2,277	)			(2,242	)			(4,828	)			(35	)		-1.6	%			2,551			52.8	%
Recoveries		3,967				2,379				3,660				1,588			66.8	%			307			8.4	%
Net (charge-offs) recoveries		1,690				137				(1,168	)			1,553			n/m				2,858			n/m
Ending Balance	$	103,140			$	98,734			$	104,032			$	4,406			4.5	%		$	(892	)		-0.9	%
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	1,129			$	699			$	203			$	430			61.5	%		$	926			n/m
Florida		761				(26	)			167				787			n/m				594			n/m
Mississippi (2)		(266	)			(88	)			(3,071	)			(178	)		n/m				2,805			-91.3	%
Tennessee (3)		31				(424	)			1,031				455			n/m				(1,000	)		-97.0	%
Texas		35				(24	)			502				59			n/m				(467	)		-93.0	%
Total net (charge-offs) recoveries	$	1,690			$	137			$	(1,168	)		$	1,553			n/m			$	2,858			n/m

(1)	Excludes PPP loans.
(2)	Mississippi includes Central and Southern Mississippi Regions.
(3)	Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
		Quarter Ended																				Six Months Ended
AVERAGE BALANCES		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Securities AFS-taxable (1)		$	3,094,364			$	3,245,502			$	3,156,740			$	2,686,765			$	2,339,662			$	3,169,515			$	2,219,543
Securities AFS-nontaxable			5,110				5,127				5,143				5,159				5,174				5,118				5,182
Securities HTM-taxable (1)			811,599				410,851				364,038				401,685				441,688				612,332				465,343
Securities HTM-nontaxable			5,630				7,327				7,618				8,641				10,958				6,474				17,478
Total securities			3,916,703				3,668,807				3,533,539				3,102,250				2,797,482				3,793,439				2,707,546
PPP loans			17,746				29,009				42,749				122,176				648,222				23,346				623,319
Loans (includes loans held for sale)			10,910,178				10,550,712				10,487,679				10,389,826				10,315,927				10,731,438				10,316,122
Fed funds sold and reverse repurchases			110				56				58				69				55				83				95
Other earning assets			1,139,312				1,811,713				1,839,498				2,038,515				1,750,385				1,473,655				1,709,373
Total earning assets			15,984,049				16,060,297				15,903,523				15,652,836				15,512,071				16,021,961				15,356,455
ACL LHFI			(99,106	)			(99,390	)			(104,148	)			(104,857	)			(112,346	)			(99,247	)			(115,932	)
Other assets			1,513,127				1,550,848				1,570,501				1,602,611				1,622,388				1,531,884				1,611,877
Total assets		$	17,398,070			$	17,511,755			$	17,369,876			$	17,150,590			$	17,022,113			$	17,454,598			$	16,852,400
Interest-bearing demand deposits		$	4,578,235			$	4,429,056			$	4,353,599			$	4,224,717			$	4,056,910			$	4,504,058			$	3,901,146
Savings deposits			4,638,849				4,791,104				4,585,624				4,617,683				4,627,180				4,714,556				4,643,020
Time deposits			1,159,065				1,193,435				1,220,083				1,258,829				1,301,896				1,176,155				1,336,670
Total interest-bearing deposits			10,376,149				10,413,595				10,159,306				10,101,229				9,985,986				10,394,769				9,880,836
Fed funds purchased and repurchases			118,753				212,006				201,856				147,635				174,620				165,122				170,786
Other borrowings			80,283				91,090				94,328				109,735				132,199				85,657				149,467
Subordinated notes			123,116				123,061				123,007				122,951				122,897				123,089				122,886
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856				61,856				61,856
Total interest-bearing liabilities			10,760,157				10,901,608				10,640,353				10,543,406				10,477,558				10,830,493				10,385,831
Noninterest-bearing deposits			4,590,338				4,601,108				4,679,951				4,566,924				4,512,268				4,595,693				4,438,324
Other liabilities			439,266				295,287				291,449				257,956				251,582				367,673				258,158
Total liabilities			15,789,761				15,798,003				15,611,753				15,368,286				15,241,408				15,793,859				15,082,313
Shareholders' equity			1,608,309				1,713,752				1,758,123				1,782,304				1,780,705				1,660,739				1,770,087
Total liabilities and equity		$	17,398,070			$	17,511,755			$	17,369,876			$	17,150,590			$	17,022,113			$	17,454,598			$	16,852,400

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
PERIOD END BALANCES		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021
Cash and due from banks		$	742,461			$	1,917,564			$	2,266,829			$	2,175,058			$	2,267,224
Securities available for sale (1)			2,644,364				3,018,246				3,238,877				3,057,605				2,548,739
Securities held to maturity (1)			1,137,754				607,598				342,537				394,905				433,012
PPP loans			12,549				18,579				33,336				46,486				166,119
LHFS			190,186				222,538				275,706				335,339				332,132
LHFI			10,944,840				10,397,129				10,247,829				10,174,899				10,152,869
ACL LHFI			(103,140	)			(98,734	)			(99,457	)			(104,073	)			(104,032	)
Net LHFI			10,841,700				10,298,395				10,148,372				10,070,826				10,048,837
Premises and equipment, net			207,914				207,301				205,644				201,937				200,970
Mortgage servicing rights			121,014				111,050				87,687				84,101				80,764
Goodwill			384,237				384,237				384,237				384,237				384,237
Identifiable intangible assets			4,264				4,591				5,074				5,621				6,170
Other real estate			3,034				3,187				4,557				6,213				9,439
Operating lease right-of-use assets			34,684				34,048				34,603				34,689				33,201
Other assets			627,349				614,217				568,177				567,627				587,288
Total assets		$	16,951,510			$	17,441,551			$	17,595,636			$	17,364,644			$	17,098,132
Deposits:
Noninterest-bearing		$	4,509,472			$	4,739,102			$	4,771,065			$	4,987,885			$	4,446,991
Interest-bearing			10,260,696				10,374,190				10,316,095				9,934,954				10,185,093
Total deposits			14,770,168				15,113,292				15,087,160				14,922,839				14,632,084
Fed funds purchased and repurchases			70,157				170,499				238,577				146,417				157,176
Other borrowings			72,553				84,644				91,025				94,889				117,223
Subordinated notes			123,152				123,097				123,042				122,987				122,932
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856
ACL on off-balance sheet credit exposures			32,949				34,517				35,623				32,684				33,733
Operating lease liabilities			37,108				35,912				36,468				36,531				34,959
Other liabilities			196,871				186,352				180,574				177,494				158,860
Total liabilities			15,364,814				15,810,169				15,854,325				15,595,697				15,318,823
Common stock			12,752				12,806				12,845				13,014				13,079
Capital surplus			160,876				167,094				175,913				201,837				210,420
Retained earnings			1,620,210				1,600,138				1,585,113				1,573,176				1,566,451
Accumulated other comprehensive income (loss), net of tax			(207,142	)			(148,656	)			(32,560	)			(19,080	)			(10,641	)
Total shareholders' equity			1,586,696				1,631,382				1,741,311				1,768,947				1,779,309
Total liabilities and equity		$	16,951,510			$	17,441,551			$	17,595,636			$	17,364,644			$	17,098,132

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands except per share data)
(unaudited)
		Quarter Ended																				Six Months Ended
INCOME STATEMENTS		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Interest and fees on LHFS & LHFI-FTE		$	103,033			$	93,252			$	94,137			$	94,101			$	93,698			$	196,285			$	187,092
Interest and fees on PPP loans			184				168				397				1,533				25,555				352				34,796
Interest on securities-taxable			14,561				12,357				10,796				9,973				8,991				26,918				17,929
Interest on securities-tax exempt-FTE			107				122				123				132				149				229				439
Interest on fed funds sold and reverse repurchases			1				—				—				—				—				1				—
Other interest income			2,214				817				826				949				489				3,031				992
Total interest income-FTE			120,100				106,716				106,279				106,688				128,882				226,816				241,248
Interest on deposits			2,774				2,760				3,401				3,691				4,630				5,534				9,853
Interest on fed funds purchased and repurchases			70				70				66				51				59				140				115
Other interest expense			1,664				1,539				1,580				1,733				1,813				3,203				3,670
Total interest expense			4,508				4,369				5,047				5,475				6,502				8,877				13,638
Net interest income-FTE			115,592				102,347				101,232				101,213				122,380				217,939				227,610
Provision for credit losses, LHFI			2,716				(860	)			(4,515	)			(2,492	)			(3,991	)			1,856				(14,492	)
Provision for credit losses, off-balance sheet credit exposures			(1,568	)			(1,106	)			2,939				(1,049	)			4,528				(2,674	)			(4,839	)
Net interest income after provision-FTE			114,444				104,313				102,808				104,754				121,843				218,757				246,941
Service charges on deposit accounts			10,226				9,451				9,366				8,911				7,613				19,677				14,969
Bank card and other fees			10,167				8,442				8,340				8,549				8,301				18,609				17,773
Mortgage banking, net			8,149				9,873				11,609				14,004				17,333				18,022				38,137
Insurance commissions			13,702				14,089				11,716				12,133				12,217				27,791				24,662
Wealth management			9,102				9,054				8,757				9,071				8,946				18,156				17,362
Other, net			1,907				3,206				979				1,481				2,001				5,113				4,091
Total noninterest income			53,253				54,115				50,767				54,149				56,411				107,368				116,994
Salaries and employee benefits			71,679				69,585				68,258				74,623				70,115				141,264				141,277
Services and fees			24,538				24,453				22,904				22,306				21,769				48,991				44,253
Net occupancy-premises			6,892				7,079				6,816				6,854				6,578				13,971				13,373
Equipment expense			6,047				6,061				6,585				5,941				5,567				12,108				11,811
Other expense			14,611				14,341				14,906				19,876				14,650				28,952				29,513
Total noninterest expense			123,767				121,519				119,469				129,600				118,679				245,286				240,227
Income before income taxes and tax eq adj			43,930				36,909				34,106				29,303				59,575				80,839				123,708
Tax equivalent adjustment			2,916				3,003				2,906				2,947				2,957				5,919				5,851
Income before income taxes			41,014				33,906				31,200				26,356				56,618				74,920				117,857
Income taxes			6,730				4,695				4,978				5,156				8,637				11,425				17,914
Net income		$	34,284			$	29,211			$	26,222			$	21,200			$	47,981			$	63,495			$	99,943
Per share data
Earnings per share - basic		$	0.56			$	0.47			$	0.42			$	0.34			$	0.76			$	1.03			$	1.58
Earnings per share - diluted		$	0.56			$	0.47			$	0.42			$	0.34			$	0.76			$	1.03			$	1.57
Dividends per share		$	0.23			$	0.23			$	0.23			$	0.23			$	0.23			$	0.46			$	0.46
Weighted average shares outstanding
Basic			61,378,226				61,514,395				62,037,884				62,521,684				63,214,593				61,445,934				63,304,751
Diluted			61,546,285				61,709,797				62,264,983				62,730,157				63,409,683				61,624,569				63,465,515
Period end shares outstanding			61,201,123				61,463,392				61,648,679				62,461,832				62,773,226				61,201,123				62,773,226
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
		Quarter Ended
NONPERFORMING ASSETS (1)		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021
Nonaccrual LHFI
Alabama		$	2,698			$	7,506			$	8,182			$	9,223			$	8,952
Florida			233				310				313				381				467
Mississippi (2)			23,039				21,318				21,636				22,898				23,422
Tennessee (3)			9,500				9,266				10,501				10,356				10,751
Texas			26,582				25,999				22,066				23,382				7,856
Total nonaccrual LHFI			62,052				64,399				62,698				66,240				51,448
Other real estate
Alabama			84				—				—				613				2,830
Mississippi (2)			2,950				3,187				4,557				5,600				6,550
Tennessee (3)			—				—				—				—				59
Total other real estate			3,034				3,187				4,557				6,213				9,439
Total nonperforming assets		$	65,086			$	67,586			$	67,255			$	72,453			$	60,887
LOANS PAST DUE OVER 90 DAYS (1)
LHFI		$	1,347			$	1,503			$	2,114			$	625			$	423
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)		$	51,164			$	62,078			$	69,894			$	75,091			$	81,538
		Quarter Ended																				Six Months Ended
ACL LHFI (1)		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Beginning Balance		$	98,734			$	99,457			$	104,073			$	104,032			$	109,191			$	99,457			$	117,306
Provision for credit losses, LHFI			2,716				(860	)			(4,515	)			(2,492	)			(3,991	)			1,856				(14,492	)
Charge-offs			(2,277	)			(2,242	)			(2,616	)			(1,586	)			(4,828	)			(4,519	)			(6,073	)
Recoveries			3,967				2,379				2,515				4,119				3,660				6,346				7,291
Net (charge-offs) recoveries			1,690				137				(101	)			2,533				(1,168	)			1,827				1,218
Ending Balance		$	103,140			$	98,734			$	99,457			$	104,073			$	104,032			$	103,140			$	104,032
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama		$	1,129			$	699			$	747			$	247			$	203			$	1,828			$	305
Florida			761				(26	)			(32	)			356				167				735				197
Mississippi (2)			(266	)			(88	)			(683	)			1,436				(3,071	)			(354	)			(864	)
Tennessee (3)			31				(424	)			(130	)			(8	)			1,031				(393	)			1,078
Texas			35				(24	)			(3	)			502				502				11				502
Total net (charge-offs) recoveries		$	1,690			$	137			$	(101	)		$	2,533			$	(1,168	)		$	1,827			$	1,218

(1)	Excludes PPP loans.
(2)	Mississippi includes Central and Southern Mississippi Regions.
(3)	Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
(unaudited)
		Quarter Ended																				Six Months Ended
FINANCIAL RATIOS AND OTHER DATA		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022			6/30/2021
Return on average equity			8.55	%			6.91	%			5.92	%			4.72	%			10.81	%		7.71	%		11.39	%
Return on average tangible equity			11.36	%			9.05	%			7.72	%			6.16	%			13.96	%		10.16	%		14.75	%
Return on average assets			0.79	%			0.68	%			0.60	%			0.49	%			1.13	%		0.73	%		1.20	%
Interest margin - Yield - FTE			3.01	%			2.69	%			2.65	%			2.70	%			3.33	%		2.85	%		3.17	%
Interest margin - Cost			0.11	%			0.11	%			0.13	%			0.14	%			0.17	%		0.11	%		0.18	%
Net interest margin - FTE			2.90	%			2.58	%			2.53	%			2.57	%			3.16	%		2.74	%		2.99	%
Efficiency ratio (1)			71.89	%			76.44	%			76.52	%			74.10	%			64.31	%		74.08	%		67.93	%
Full-time equivalent employees			2,727				2,725				2,692				2,680				2,772
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans			-0.06	%			-0.01	%			0.00	%			-0.10	%			0.05	%		-0.03	%		-0.02	%
Provision for credit losses, LHFI / average loans			0.10	%			-0.03	%			-0.17	%			-0.10	%			-0.16	%		0.03	%		-0.28	%
Nonaccrual LHFI / (LHFI + LHFS)			0.56	%			0.61	%			0.60	%			0.63	%			0.49	%
Nonperforming assets / (LHFI + LHFS)			0.58	%			0.64	%			0.64	%			0.69	%			0.58	%
Nonperforming assets / (LHFI + LHFS + other real estate)			0.58	%			0.64	%			0.64	%			0.69	%			0.58	%
ACL LHFI / LHFI			0.94	%			0.95	%			0.97	%			1.02	%			1.02	%
ACL LHFI-commercial / commercial LHFI			0.88	%			0.95	%			1.00	%			1.05	%			1.04	%
ACL LHFI-consumer / consumer and home mortgage LHFI			1.14	%			0.96	%			0.87	%			0.91	%			0.98	%
ACL LHFI / nonaccrual LHFI			166.22	%			153.32	%			158.63	%			157.11	%			202.21	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)			475.27	%			484.01	%			500.85	%			520.77	%			537.35	%
CAPITAL RATIOS
Total equity / total assets			9.36	%			9.35	%			9.90	%			10.19	%			10.41	%
Tangible equity / tangible assets			7.23	%			7.29	%			7.86	%			8.12	%			8.31	%
Tangible equity / risk-weighted assets			9.16	%			9.79	%			10.71	%			11.19	%			11.33	%
Tier 1 leverage ratio			8.80	%			8.66	%			8.73	%			8.92	%			9.00	%
Common equity tier 1 capital ratio			11.01	%			11.23	%			11.29	%			11.68	%			11.76	%
Tier 1 risk-based capital ratio			11.47	%			11.70	%			11.77	%			12.17	%			12.25	%
Total risk-based capital ratio			13.26	%			13.53	%			13.55	%			14.01	%			14.10	%
STOCK PERFORMANCE
Market value-Close		$	29.19			$	30.39			$	32.46			$	32.22			$	30.80
Book value		$	25.93			$	26.54			$	28.25			$	28.32			$	28.35
Tangible book value		$	19.58			$	20.22			$	21.93			$	22.08			$	22.13

(1)	See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2)	Excludes PPP loans.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ 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:

		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities		$	419,696			$	361,822			$	344,640			$	278,615			$	30,025
U.S. Government agency obligations			11,947				12,623				13,727				14,979				16,023
Obligations of states and political subdivisions			5,179				5,359				5,714				5,734				5,807
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			32,240				35,117				39,573				43,860				48,445
Issued by FNMA and FHLMC			1,888,546				2,038,331				2,218,429				2,187,412				1,983,783
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			144,158				164,506				196,690				236,885				283,988
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			142,598				400,488				420,104				290,120				180,668
Total securities available for sale		$	2,644,364			$	3,018,246			$	3,238,877			$	3,057,605			$	2,548,739
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions		$	5,320			$	7,324			$	7,328			$	10,683			$	12,994
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			4,624				4,831				5,005				5,912				6,249
Issued by FNMA and FHLMC			185,554				192,373				43,444				48,554				53,406
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			210,479				224,012				241,934				264,638				291,477
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			731,777				179,058				44,826				65,118				68,886
Total securities held to maturity		$	1,137,754			$	607,598			$	342,537			$	394,905			$	433,012

During the second quarter of 2022, Trustmark reclassified $343.1 million of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $34.8 million ($26.1 million, net of tax). The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.

At June 30, 2022, 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 approximately $39.5 million ($29.7 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.7% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 2 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021
Loans secured by real estate:
Construction, land development and other land loans		$	1,440,058			$	1,273,959			$	1,308,781			$	1,286,613			$	1,360,302
Secured by 1-4 family residential properties			2,424,962				2,106,998				1,977,993				1,891,292				1,810,396
Secured by nonfarm, nonresidential properties			3,178,079				2,975,039				2,977,084				2,924,953				2,819,662
Other real estate secured			555,311				715,939				726,043				986,163				1,078,622
Commercial and industrial loans			1,551,001				1,495,060				1,414,279				1,327,211				1,326,605
Consumer loans			160,716				154,215				159,472				157,963				153,519
State and other political subdivision loans			1,110,795				1,215,023				1,146,251				1,125,186				1,136,764
Other loans			523,918				460,896				537,926				475,518				466,999
LHFI			10,944,840				10,397,129				10,247,829				10,174,899				10,152,869
ACL LHFI			(103,140	)			(98,734	)			(99,457	)			(104,073	)			(104,032	)
Net LHFI		$	10,841,700			$	10,298,395			$	10,148,372			$	10,070,826			$	10,048,837

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

Note 2 – Loan Composition (continued)

The following table presents the LHFI composition by region and reflects each region’s diversified mix of loans:

		June 30, 2022
LHFI - COMPOSITION BY REGION		Total				Alabama				Florida				Mississippi (Central and Southern Regions)				Tennessee (Memphis, TN and Northern MS Regions)				Texas
Loans secured by real estate:
Construction, land development and other land loans		$	1,440,058			$	610,402			$	52,587			$	391,970			$	43,608			$	341,491
Secured by 1-4 family residential properties			2,424,962				119,599				44,161				2,166,787				67,906				26,509
Secured by nonfarm, nonresidential properties			3,178,079				927,830				252,323				1,245,604				178,658				573,664
Other real estate secured			555,311				120,384				1,784				265,884				6,906				160,353
Commercial and industrial loans			1,551,001				393,458				23,451				644,894				243,252				245,946
Consumer loans			160,716				22,021				7,571				99,852				18,685				12,587
State and other political subdivision loans			1,110,795				85,538				69,860				721,339				28,922				205,136
Other loans			523,918				69,924				11,160				319,743				69,941				53,150
Loans		$	10,944,840			$	2,349,156			$	462,897			$	5,856,073			$	657,878			$	1,618,836
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots		$	69,566			$	35,149			$	10,758			$	16,700			$	2,255			$	4,704
Development			149,183				55,380				1,726				52,982				6,556				32,539
Unimproved land			100,319				17,366				11,781				32,771				10,889				27,512
1-4 family construction			345,749				166,916				24,590				90,778				23,899				39,566
Other construction			775,241				335,591				3,732				198,739				9				237,170
Construction, land development and other land loans		$	1,440,058			$	610,402			$	52,587			$	391,970			$	43,608			$	341,491
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail		$	331,004			$	129,167			$	35,109			$	81,857			$	22,142			$	62,729
Office			282,768				110,140				19,116				89,459				10,790				53,263
Hotel/motel			339,184				186,628				76,318				33,002				28,693				14,543
Mini-storage			160,857				23,452				2,196				110,162				423				24,624
Industrial			296,943				106,567				19,243				99,690				252				71,191
Health care			53,221				20,763				1,045				27,704				351				3,358
Convenience stores			28,737				8,538				661				14,191				1,123				4,224
Nursing homes/senior living			343,468				138,209				—				138,436				5,934				60,889
Other			106,771				15,903				10,094				48,052				16,801				15,921
Total non-owner occupied loans			1,942,953				739,367				163,782				642,553				86,509				310,742
Owner-occupied:
Office			154,226				42,428				36,256				45,836				12,664				17,042
Churches			77,154				17,024				5,439				43,393				7,979				3,319
Industrial warehouses			176,614				16,967				2,396				48,135				17,099				92,017
Health care			126,529				11,632				6,601				91,264				2,379				14,653
Convenience stores			152,200				13,886				20,857				71,648				421				45,388
Retail			97,749				12,615				9,052				44,873				19,151				12,058
Restaurants			54,167				3,143				4,801				29,965				12,377				3,881
Auto dealerships			51,017				6,453				242				25,496				18,826				—
Nursing homes/senior living			211,462				50,570				—				134,692				—				26,200
Other			134,008				13,745				2,897				67,749				1,253				48,364
Total owner-occupied loans			1,235,126				188,463				88,541				603,051				92,149				262,922
Loans secured by nonfarm, nonresidential properties		$	3,178,079			$	927,830			$	252,323			$	1,245,604			$	178,658			$	573,664

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

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																				Six Months Ended
		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Securities – taxable			1.50	%			1.37	%			1.22	%			1.28	%			1.30	%			1.44	%			1.35	%
Securities – nontaxable			4.00	%			3.97	%			3.82	%			3.79	%			3.70	%			3.98	%			3.91	%
Securities – total			1.50	%			1.38	%			1.23	%			1.29	%			1.31	%			1.44	%			1.37	%
PPP loans			4.16	%			2.35	%			3.68	%			4.98	%			15.81	%			3.04	%			11.26	%
Loans - LHFI & LHFS			3.79	%			3.58	%			3.56	%			3.59	%			3.64	%			3.69	%			3.66	%
Loans - total			3.79	%			3.58	%			3.56	%			3.61	%			4.36	%			3.69	%			4.09	%
Fed funds sold & reverse repurchases			3.65	%			—				—				—				—				2.43	%			—
Other earning assets			0.78	%			0.18	%			0.18	%			0.18	%			0.11	%			0.41	%			0.12	%
Total earning assets			3.01	%			2.69	%			2.65	%			2.70	%			3.33	%			2.85	%			3.17	%
Interest-bearing deposits			0.11	%			0.11	%			0.13	%			0.14	%			0.19	%			0.11	%			0.20	%
Fed funds purchased & repurchases			0.24	%			0.13	%			0.13	%			0.14	%			0.14	%			0.17	%			0.14	%
Other borrowings			2.52	%			2.26	%			2.25	%			2.33	%			2.29	%			2.39	%			2.21	%
Total interest-bearing liabilities			0.17	%			0.16	%			0.19	%			0.21	%			0.25	%			0.17	%			0.26	%
Net interest margin			2.90	%			2.58	%			2.53	%			2.57	%			3.16	%			2.74	%			2.99	%
Net interest margin excluding PPP loans and the FRB balance			3.06	%			2.88	%			2.82	%			2.90	%			2.94	%			2.97	%			2.96	%

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

At June 30, 2022 and March 31, 2022, the average FRB balance totaled $1.077 billion and $1.758 billion, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 3.06% for the second quarter of 2022, an increase of 18 basis points when compared to the first quarter of 2022. The expansion of the net interest margin excluding PPP loans and the FRB balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio 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 ineffectiveness of $632 thousand during the second quarter of 2022.

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

		Quarter Ended																				Six Months Ended
		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Mortgage servicing income, net		$	6,557			$	6,429			$	6,571			$	6,406			$	6,318			$	12,986			$	12,499
Change in fair value-MSR from runoff			(3,806	)			(3,785	)			(4,745	)			(5,283	)			(5,029	)			(7,591	)			(10,132	)
Gain on sales of loans, net			6,030				6,223				9,005				12,737				14,778				12,253				34,234
Mortgage banking income before hedge ineffectiveness			8,781				8,867				10,831				13,860				16,067				17,648				36,601
Change in fair value-MSR from market changes			8,739				22,020				2,221				1,806				(4,465	)			30,759				9,231
Change in fair value of derivatives			(9,371	)			(21,014	)			(1,443	)			(1,662	)			5,731				(30,385	)			(7,695	)
Net positive (negative) hedge ineffectiveness			(632	)			1,006				778				144				1,266				374				1,536
Mortgage banking, net		$	8,149			$	9,873			$	11,609			$	14,004			$	17,333			$	18,022			$	38,137

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

Note 5 – Other Noninterest Income and Expense

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

		Quarter Ended																				Six Months Ended
		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Partnership amortization for tax credit purposes		$	(1,475	)		$	(1,336	)		$	(2,455	)		$	(2,045	)		$	(1,989	)		$	(2,811	)		$	(3,511	)
Increase in life insurance cash surrender value			1,683				1,627				1,675				1,663				1,653				3,310				3,292
Other miscellaneous income			1,699				2,915				1,759				1,863				2,337				4,614				4,310
Total other, net		$	1,907			$	3,206			$	979			$	1,481			$	2,001			$	5,113			$	4,091

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																				Six Months Ended
		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Loan expense		$	4,068			$	4,389			$	3,221			$	4,022			$	3,738			$	8,457			$	7,905
Amortization of intangibles			328				482				548				549				553				810				1,219
FDIC assessment expense			1,810				1,500				1,475				1,275				1,225				3,310				2,765
Regulatory settlement charge			—				—				—				5,000				—				—				—
Other real estate expense, net			623				35				336				1,357				1,511				658				1,835
Other miscellaneous expense			7,782				7,935				9,326				7,673				7,623				15,717				15,789
Total other expense		$	14,611			$	14,341			$	14,906			$	19,876			$	14,650			$	28,952			$	29,513

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

June 30, 2022

($ in thousands except per share data)

(unaudited)

Note 6 – Non-GAAP Financial Measures (continued)

				Quarter Ended																				Six Months Ended
				6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity				$	1,608,309			$	1,713,752			$	1,758,123			$	1,782,304			$	1,780,705			$	1,660,739			$	1,770,087
Less: Goodwill					(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,694	)
Identifiable intangible assets					(4,436	)			(4,879	)			(5,382	)			(5,899	)			(6,442	)			(4,656	)			(6,778	)
Total average tangible equity				$	1,219,636			$	1,324,636			$	1,368,504			$	1,392,168			$	1,390,026			$	1,271,846			$	1,378,615
PERIOD END BALANCES
Total shareholders' equity				$	1,586,696			$	1,631,382			$	1,741,311			$	1,768,947			$	1,779,309
Less: Goodwill					(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)
Identifiable intangible assets					(4,264	)			(4,591	)			(5,074	)			(5,621	)			(6,170	)
Total tangible equity		(a)		$	1,198,195			$	1,242,554			$	1,352,000			$	1,379,089			$	1,388,902
TANGIBLE ASSETS
Total assets				$	16,951,510			$	17,441,551			$	17,595,636			$	17,364,644			$	17,098,132
Less: Goodwill					(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)
Identifiable intangible assets					(4,264	)			(4,591	)			(5,074	)			(5,621	)			(6,170	)
Total tangible assets		(b)		$	16,563,009			$	17,052,723			$	17,206,325			$	16,974,786			$	16,707,725
Risk-weighted assets		(c)		$	13,076,981			$	12,691,545			$	12,623,630			$	12,324,254			$	12,256,492
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income				$	34,284			$	29,211			$	26,222			$	21,200			$	47,981			$	63,495			$	99,943
Plus: Intangible amortization net of tax					246				362				411				412				415				608				915
Net income adjusted for intangible amortization				$	34,530			$	29,573			$	26,633			$	21,612			$	48,396			$	64,103			$	100,858
Period end common shares outstanding		(d)			61,201,123				61,463,392				61,648,679				62,461,832				62,773,226
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)					11.36	%			9.05	%			7.72	%			6.16	%			13.96	%			10.16	%			14.75	%
Tangible equity/tangible assets		(a)/(b)			7.23	%			7.29	%			7.86	%			8.12	%			8.31	%
Tangible equity/risk-weighted assets		(a)/(c)			9.16	%			9.79	%			10.71	%			11.19	%			11.33	%
Tangible book value		(a)/(d)*1,000		$	19.58			$	20.22			$	21.93			$	22.08			$	22.13
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity				$	1,586,696			$	1,631,382			$	1,741,311			$	1,768,947			$	1,779,309
CECL transition adjustment					19,500				19,500				26,000				26,419				26,671
AOCI-related adjustments					207,142				148,656				32,560				19,080				10,641
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)					(370,229	)			(370,240	)			(370,252	)			(370,264	)			(370,276	)
Other adjustments and deductions for CET1 (2)					(3,757	)			(4,015	)			(4,392	)			(4,817	)			(5,243	)
CET1 capital		(e)			1,439,352				1,425,283				1,425,227				1,439,365				1,441,102
Additional tier 1 capital instruments plus related surplus					60,000				60,000				60,000				60,000				60,000
Tier 1 capital				$	1,499,352			$	1,485,283			$	1,485,227			$	1,499,365			$	1,501,102
Common equity tier 1 capital ratio		(e)/(c)			11.01	%			11.23	%			11.29	%			11.68	%			11.76	%

(1)	Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
(2)	Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(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																				Six Months Ended
		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Net interest income (GAAP)		$	112,676			$	99,344			$	98,326			$	98,266			$	119,423			$	212,020			$	221,759
Noninterest income (GAAP)			53,253				54,115				50,767				54,149				56,411				107,368				116,994
Pre-provision revenue	(a)	$	165,929			$	153,459			$	149,093			$	152,415			$	175,834			$	319,388			$	338,753
Noninterest expense (GAAP)		$	123,767			$	121,519			$	119,469			$	129,600			$	118,679			$	245,286			$	240,227
Less: Voluntary early retirement program			—				—				—				(5,700	)			—				—				—
Regulatory settlement charge			—				—				—				(5,000	)			—				—				—
Adjusted noninterest expense - PPNR (Non-GAAP)	(b)	$	123,767			$	121,519			$	119,469			$	118,900			$	118,679			$	245,286			$	240,227
PPNR (Non-GAAP)	(a)-(b)	$	42,162			$	31,940			$	29,624			$	33,515			$	57,155			$	74,102			$	98,526

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

		Quarter Ended																				Six Months Ended
		6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				6/30/2022				6/30/2021
Total noninterest expense (GAAP)		$	123,767			$	121,519			$	119,469			$	129,600			$	118,679			$	245,286			$	240,227
Less: Other real estate expense, net			(623	)			(35	)			(336	)			(1,357	)			(1,511	)			(658	)			(1,835	)
Amortization of intangibles			(328	)			(482	)			(548	)			(549	)			(553	)			(810	)			(1,219	)
Charitable contributions resulting in state tax credits			(375	)			(375	)			(391	)			(350	)			(355	)			(750	)			(705	)
Voluntary early retirement program			—				—				—				(5,700	)			—				—				—
Regulatory settlement charge			—				—				—				(5,000	)			—				—				—
Adjusted noninterest expense (Non-GAAP)	(c)	$	122,441			$	120,627			$	118,194			$	116,644			$	116,260			$	243,068			$	236,468
Net interest income (GAAP)		$	112,676			$	99,344			$	98,326			$	98,266			$	119,423			$	212,020			$	221,759
Add: Tax equivalent adjustment			2,916				3,003				2,906				2,947				2,957				5,919				5,851
Net interest income-FTE (Non-GAAP)	(a)	$	115,592			$	102,347			$	101,232			$	101,213			$	122,380			$	217,939			$	227,610
Noninterest income (GAAP)		$	53,253			$	54,115			$	50,767			$	54,149			$	56,411			$	107,368			$	116,994
Add: Partnership amortization for tax credit purposes			1,475				1,336				2,455				2,045				1,989				2,811				3,511
Adjusted noninterest income (Non-GAAP)	(b)	$	54,728			$	55,451			$	53,222			$	56,194			$	58,400			$	110,179			$	120,505
Adjusted revenue (Non-GAAP)	(a)+(b)	$	170,320			$	157,798			$	154,454			$	157,407			$	180,780			$	328,118			$	348,115
Efficiency ratio (Non-GAAP)	(c)/((a)+(b))		71.89	%			76.44	%			76.52	%			74.10	%			64.31	%			74.08	%			67.93	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726005368/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

Source: Trustmark Corporation

FAQ

What were Trustmark's earnings per share for Q2 2022?

Trustmark reported diluted earnings per share of $0.56 for Q2 2022.

How much did Trustmark's loans held for investment increase in Q2 2022?

Loans held for investment increased by $547.7 million, or 5.3%, from the prior quarter.

What was the total revenue for Trustmark in Q2 2022?

Total revenue for Trustmark in Q2 2022 was $165.9 million, an increase of 8.1% from the prior quarter.

What was the net interest margin for Trustmark in Q2 2022?

Trustmark's net interest margin expanded to 2.90% in Q2 2022.

When is Trustmark's quarterly cash dividend payable?

The quarterly cash dividend of $0.23 per share is payable on September 15, 2022.