Slide 1: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results October 26, 2021 Exhibit 99.2
Slide 2: 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,” “bel
Slide 3: Financial Highlights
Expense Management Financial Highlights Performance reflects continued balance sheet growth, strong credit quality and disciplined expense management Source: Company reports (1) For Non-GAAP measures, please refer to the Earnings Release dated October 26, 2021 and the Consolidated Financial Informat
Slide 4: Loans Held for Investment (LHFI) Portfolio
Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Source: Company reports (1) Percentages may not sum to 100% due to rounding. Trustmark has no loan exposure in which the source of repayment or the underlying security of such exposure is tied to
Slide 5: Real Estate Secured Loan Portfolio Detail
Real Estate Secured Loan Portfolio Detail 5 Source: Company reports (1) Multi-Family is included in Other Real Estate Secured Loans in Financials Focus on vertical construction with limited exposure to unimproved land and development Well-diversified product and geographical mix Balanced between non
Slide 6: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 12% Small energy book and has never been an area of focused growth Virtually no regulatory defined higher risk commercial and industrial outstanding ($10.3 million) Portfolio inclu
Slide 7: COVID-19 Impacted Industries
COVID-19 Impacted Industries 7 At September 30, 2021
Slide 8: Third Quarter Portfolio Review
Third Quarter Portfolio Review 8 During the third quarter, Trustmark conducted an analysis of borrowers with outstanding balances of $1 million or more in the COVID impacted industries as well as borrowers in other selected categories primarily of nursing homes and senior living facilities, health c
Slide 9: Allowance for Credit Losses
Allowance for Credit Losses Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 9 ($ in millions) Quantitative changes due to improvement of the macroeconomic forecast and PD/LGD floors Qualitative changes including reduction
Slide 10: Credit Risk Management
Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 1.02% of loans held for investment and 520.77% of nonaccrual loans, excluding individually evaluated loans Recoveries exceeded charge-offs by $2.5 million in the third quarter Other Real Estate totaled $6.2 mi
Slide 11: Paycheck Protection Program (PPP)
Paycheck Protection Program (PPP) Source: Company reports 11
Slide 12: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Deposits totaled $14.9 billion at September 30, 2021, up $290.8 million, or 2.0%, linked-quarter, and up $1.7 billion, or 12.9%, year-over-year Cost of interest-bearing deposits in the third quarter totaled 0.14%, down 5 basis points from the prior quarter Source: C
Slide 13: Income Statement Highlights – Net Interest Income
Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $101.2 million, resulting in a net interest margin of 2.57% in the third quarter The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.90% in the third quarter, a 4 basis point decr
Slide 14: Income Statement Highlights – Noninterest Income
Income Statement Highlights – Noninterest Income Source: Company reports (1) Totals may not foot due to rounding Noninterest income totaled $54.1 million for the third quarter, a decrease of $2.3 million linked-quarter and $19.6 million year-over-year. The linked-quarter and year-over-year changes a
Slide 15: Income Statement Highlights – Mortgage Banking
Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding (2) Production includes Loans Available for Sale (AFS) and Portfolio (3) Gain on Sale Margin excludes FAS 133 (Pipeline valuation adjustment) Mortgage banking revenue totaled $14.0 million
Slide 16: Income Statement Highlights – Noninterest Expense
Noninterest expense totaled $129.6 million in the third quarter, which included a one-time, pre-tax expense charge of $5.7 million related to a voluntary early retirement program and $5.0 million in regulatory settlement expenses Adjusted noninterest expense(2) – totaled $116.6 million in the third
Slide 17: Capital Management
Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.68% and a total risk-based capital ratio of 14.01% at September 30, 2021 Repurchased $9.7 million, or approximately 319 th
Slide 18: Outlook Commentary
Outlook Commentary(1) Source: Company reports (1) See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. 18
Slide 19: Trustmark Corporation
Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 180 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to