Trustmark Corporation · NASDAQ:TRMK
Trustmark — Keefe, Bruyette & Woods Regional Bank Conference (February 2006)
27 slides from Trustmark's conference presentation, Feb 27, 2006
Slide 1: Keefe, Bruyette & Woods Regional Bank Conference
Keefe, Bruyette & Woods Regional Bank Conference Boston, MA
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation are not statements of historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, s
Slide 3: Corporate Profile
Ø Corporate Infrastructure • Over offices and ATMs • Over 2,600 associates • Serving Florida, Mississippi, Tennessee and Texas As Reported w/out Katrina* Net Income $103 million $113 million ROE 13.68% 15.02% ROA 1.25% 1.38% Basic EPS $1.82 $2.00 *See slide #26 for Non-GAAP Financial Disclosure Corp
Slide 4: Reasons to Invest in Trustmark
Reasons to Invest in Trustmark Ø Above Peer performance on mid cap banking metrics Ø Major balance sheet restructuring Ø Diversified business mix expanding into attractive growth markets Ø Discounted P/E valuation relative to Peers
Slide 5: Discounted P/E Valuation Relative to Peers
*Total Assets as of December 31, 2005 *Market Value and P/E multiples as of February 22, 2006 Peer Group Discounted P/E Valuation Relative to Peers
Slide 6: Above Peer Performance on Mid Cap Banking Metrics
Source: SNL Financial Key Ratios Above Peer performance on mid cap banking metrics
Slide 7: Major Balance Sheet Restructuring
Major balance sheet restructuring, correct anticipation of flat yield curve Balance Sheet 4th Qtr Average ($ in thousands)
Slide 8: Average Deposits and Borrowings; Loans and Securities
Average Deposits and Borrowings Average Loans and Securities
Slide 9: Year-End Historic Market Yields
Year-End Historic Market Yields
Slide 10: Loan yield, deposit cost and spread chart
10.0% 8.0% eax 4.0% 2.0% 0% 2004 2002 2003 2004 2005 4-05, + Loanviela spread —a—Deposit cost Se seounty Vielas —s-Spresa ee Borrowings
Slide 11: Projected Taxable Securities Roll-off
Principal Roll-off Roll-off Yield 2006 $284.1 3.46% 2007 $272.9 3.51% 2008 $201.0 3.88% Total Taxable Securities at December 31, 2005 $1,144 Average duration of taxable securities portfolio 2.2 years Projected Taxable Securities Roll-off ($ in millions)
Slide 12: Loan Composition
Loan Composition as of December 30, 2005 Total Loans 4th Qtr Average 1-4 Family 34% $2.1 Construction 9% $0.5 Real Estate 18% $1.1 Commercial 14% $0.9 Consumer 15% $0.9 Other 10% $0.6 $ Billions Loans
Slide 13: Katrina Financial Performance and Credit Quality
Katrina $9.8M Financial Performance Credit Quality ($ in millions)
Slide 14: Deposits Composition
Total Deposits 4th Qtr Average Deposits Composition As of December 30, 2005 $ Billions Deposits
Slide 15: Capital Management: Dividends Per Share
Dividends Per Share Capital Management
Slide 16: Trustmark's Market Valuation
Trustmark As Reported Trustmark w/out Katrina* Peer Median ROE 13.68% 15.02% 12.33% ROA 1.25% 1.38% 1.20% Efficiency 56.24% 56.24% 58.09% Tangible Equity/ Tangible Assets 7.00% 7.00% 6.94% Price/2005 Earnings 16.5x (12/24) 15.0x (21/24) 16.5x Price/2006 Estimate 14.5x (19/24) 15.7x *See slide #26 fo
Slide 17: Strategic Focus: Jackson, MS
Ø MSA Demographics • Population – 465 thousand with 6.0% growth from 2005-10 • Median HHI – $44,803 with 15.5% growth from 2005-10 • Deposits – $7 billion Ø Maintaining market dominance with 40 Commercial Relationship Managers Ø new banking centers to open in Spring 2006, 1 to open in Spring 2007 Co
Slide 18: Strategic Focus: Memphis, TN
Ø MSA Demographics • Population – 1.3 million with 7% growth from 2005-10 • Median HHI – $45,866 with 16% growth from 2005-10 • Deposits – $27 billion Ø Trustmark has 22 banking centers, $475 million in loans, $685 million in deposits and 2.3% deposit market share Ø Strategic Focus • Enhancing comme
Slide 19: Strategic Focus: Florida's Panhandle
Ø Demographics • Population– 401 thousand 12.4% growth from 2005-10 • Median HHI – $44,267 14.3% growth from 2005-10 • Deposits – $7.0 billion Ø Trustmark has 8 banking centers, $601 million in loans, $379 million in deposits and 4.3% deposit market share Ø Strategic Focus • Continuing commercial lo
Slide 20: Strategic Focus: Houston, TX
Ø Strategic Focus • Growing middle market commercial lending with 15 Relationship Managers • Branding • Implementing Mortgage Banking • Expanding Wealth Management • new banking centers in high growth areas (West & Northwest Houston) to open in 2006 and Ø MSA Demographics • Population – 5.4 million
Slide 21: Revenue Composition
Wealth Mgmt 6% $26 Commercial 10% $43 Insurance 8% $33 Mortgage 6% $26 Consumer Non-Branch 9% $38 Consumer Branch 56% $234 Treasury & Other 5% $20 Total 2005 Revenue = $420 Revenue Composition ($ in Millions)
Slide 22: Wealth Management
Ø Outstanding Investment Results • All equity funds of the Performance Funds family outperformed nationally recognized style benchmarks for one year period ending December 31, 2005 Ø Assets under management and administration of $6.6 billion with additional $1.4 billion in brokerage assets Ø Enhance
Slide 23: Insurance Services
Ø Ranked 33 rd largest bank-owned insurance agency based on revenue Ø producers Ø The Bottrell Agency Ø Fisher-Brown, Inc. Insurance Services
Slide 24: Mortgage Services
Mortgage Services Ø Mortgage loan production totaled $1.3 billion in 2005 Ø Provided home financing for 9,250 customers in 2005 Ø Managing mortgage servicing assets through sales and hedging Ø Excellent opportunity to cross-serve customers with additional banking, insurance and wealth management ser
Slide 25: Trustmark Banking and Financial Solutions
ZL, Trustmark Banking and Financial Solutions People you trust. Advice that works.
Slide 26: Non-GAAP Financial Information
YTD 12/31/2005 ($ thousands) YTD 12/31/2005 Basic EPS Net Income as reported – GAAP $ 102,951 $ 1.819 Adjustments (net of tax): Add charges related to Hurricane Katrina Provision for loan losses 6,054 0.107 Mortgage related charges 2,047 0.036 Non-interest income – lost revenues 1,649 0.029 Non-inte
Slide 27: Contact information
Trustmark Corporation’s common stock is listed on the NASDAQ National Market System and is traded under the symbol TRMK. Additional information is available at www.trustmark.com. Investor Inquiries: Zach L. Wasson Joseph Rein Executive Vice President and First Vice President Chief Financial Officer
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