Trustmark Corporation · NASDAQ:TRMK
Trustmark — Debt Investor Presentation (November 2020)
26 slides from Trustmark's debt investor presentation, Nov 16, 2020
Slide 1: Fixed Income Investor Presentation
Fixed Income Investor Presentation November 16, 2020 Exhibit 99.1
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: Today's Presenters
Barry Harvey EVP, Chief Credit Officer 21 Years at Trustmark 37 Years of industry experience Tom Owens EVP, Treasurer 7 Years at Trustmark, 33 Years of industry experience Today’s Presenters Gerard "Jerry" Host Chairman, President & CEO 36 Years at Trustmark, 48 Years of industry experience Louis Gr
Slide 4: Trustmark Corporation
Source: Company reports Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 187 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our market
Slide 5: Leading Market Share Across Attractive Markets
Leading Market Share Across Attractive Markets Source: SNL Financial (data as of 06/30/2020) Leading bank in Mississippi Top 4 market share in 50% of MSAs Top 3 market share in 55% of counties, top 4 in 66% Focused on markets and communities where relationships are valued and with attractive growth
Slide 6: Q3-20 Financial Highlights
Q3-20 Financial Highlights Performance reflects value of diversified financial services businesses Source: Company reports (1) See Non-GAAP financial measures on pages 25-26 At September 30, 2020 Total Assets $15.6 billion Loans (HFI) $9.8 billion PPP Loans $944.3 million Total Deposits $13.2 billio
Slide 7: Loans Held for Investment (LHFI) Portfolio
Loans Held for Investment (LHFI) Portfolio Focused on profitable, credit-disciplined loan growth Source: Company reports (1) Percentages may not sum to 100% due to rounding. (2) During Q1-20, Trustmark reclassified $72.6 million of acquired loans to loans held for investment with the adoption of FAS
Slide 8: Real Estate Secured Loan Portfolio Detail
Real Estate Secured Loan Portfolio Detail 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-o
Slide 9: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Source: Company reports Portfolio includes commercial, financial intermediaries, agriculture production and non-profits Well-diversified portfolio with no single category exceeding 13% Small energy book and has never been an area of focused growth Virtually no regula
Slide 10: COVID-19 Impacted Industries
COVID-19 Impacted Industries Restaurants $119 million Outstanding $131 million Exposure 337 Loans 1.20% of Portfolio Outstandings 85% Real Estate Secured Full-Service Restaurants - 35% Limited-Service Restaurants – 63% Other – 2% Hotels $380 million Outstanding $442 million Exposure 97 Loans 3.9% of
Slide 11: Strong Consistent History of Credit Risk Management
Strong Consistent History of Credit Risk Management (Loans HFI) Source: Company reports Note: Unless noted otherwise, credit metrics exclude acquired loans, PPP loans and other real estate covered by FDIC loss-share agreement (1) NPAs & NPAs / Total Loans include other real estate TBU: change to fou
Slide 12: Disciplined CECL Process
Disciplined CECL Process Allowance for Credit Losses Source: Company reports Note: Does not include allowance for off balance sheet credit exposures ($ in millions) TBU: use prior earnings decks to build bridge from 4Q19 ACL (aka reserves) to 3Q20 Changes in loan portfolio due to loan growth Net cha
Slide 13: Securities Portfolio
Securities Portfolio Available-for-Sale & Held-To-Maturity Securities September 30, 2020 ($ in millions) Net Unrealized Gains (losses) on Available for Sale Securities ($ in millions) TBU: On one half of page make a pie chart showing their securities portfolio – should show % and $ for CLOs, MBS etc
Slide 14: Attractive, Low-Cost Deposit Base
Core Deposits (%) (1) 70 74 77 77 80 82 84 83 83 86 86 89 89 Brokered Deposits (%) 2 1 1 - - - - - - - - - - Cost of Deposits (%) 0.69 0.48 0.31 0.20 0.16 0.13 0.13 0.21 0.47 0.70 0.52 0.26 0.22 Loans/Deposits (%) 86 78 73 68 71 78 81 83 79 83 83 72 74 Attractive, Low-Cost Deposit Base TBU: change p
Slide 15: Strong Capital Position
Strong Capital Position Source: Company reports (1) See Non-GAAP financial measures on pages 25 -26 Solid capital position reflects consistent profitability, resulting in strong capital return Common Equity Tier 1 Risk-Based Capital Ratio Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Rati
Slide 16: Net Interest Income
Net Interest Income Net interest income (FTE), excluding $6.7 million of interest and fees on PPP loans, totaled $102.4 million in the third quarter, resulting in a net interest margin of 3.05%. Including interest and fees on PPP loans, net interest income (FTE) totaled $109.2 million, resulting in
Slide 17: Attractive Diversified Fee Income Business
Attractive Diversified Fee Income Business Source: Company reports Noninterest income totaled $73.7 million, up 6.0% linked-quarter and up 52.5% year-over-year. Service charges on deposit accounts increased $1.2 million from the prior quarter. Bank card and other fees increased $1.1 million, reflect
Slide 18: Appendix
Y Trustmark Appendix
Slide 19: Current Ratings Profile
Current Ratings Profile Trustmark Corporation Long-Term Debt BBB BBB+ Short-Term Debt A-2 F2 Outlook Negative Stable Trustmark National Bank Long-Term Debt BBB+ BBB+ Short-Term Debt A-2 F2 Outlook Negative Stable S&P – July 24, 2020 “Our ratings on Trustmark reflect the company's long history of sou
Slide 20: Trustmark Announces Succession Plans
Trustmark Announces Succession Plans The Boards of Directors of Trustmark Corporation and Trustmark National Bank have overseen a thoughtful and deliberate succession planning process to ensure a seamless transition of executive leadership. On October 27, 2020, the Boards announced that: Effective J
Slide 21: COVID-19 Loan Portfolio Review
COVID-19 Loan Portfolio Review During the third quarter, Trustmark conducted a review of significantly impacted borrowers who received one or more payment concessions and other borrowers in industries significantly impacted by COVID-19. Collectively, the review included borrowers with $1.8 billion i
Slide 22: Paycheck Protection Program (PPP)
Paycheck Protection Program (PPP) Source: Company reports (1) Does not include loans that have been funded and paid off at 9/30/20 At September 30, 20201 ($ in millions) Amount SBA Fee # of Loans Balance $50,000 and less 5% 6,576 $ 117.5 $50,000 - $150,000 5% 1,892 162.7 $150,000 and greater 1-5% 1,
Slide 23: Income Statement Highlights – Mortgage Banking
Income Statement Highlights – Mortgage Banking Source: Company reports Mortgage loan production in the third quarter totaled $885.8 million, an increase of 3.8% from the prior quarter and a 56.5% increase year-over-year Retail production represented 70.2% of volume, or $621.7 million, in the third q
Slide 24: Income Statement Highlights – Noninterest Expense
Income Statement Highlights – Noninterest Expense Source: Company reports (1) Totals may not foot due to rounding (2) See Non-GAAP financial measures on pages 25 -26 Adjusted Noninterest Expense ( 2) – totaled $114.6 million in the third quarter, up $3.6 million from the prior quarter Salaries and b
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures (1) Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
Slide 26: Non-GAAP Financial Measures (Continued)
Non-GAAP Financial Measures (Continued)
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