Slide 1: Trustmark Announces First Quarter 2015 Financial Results
News Release Trustmark Corporation Announces First Quarter 2015 Financial Results JACKSON, Miss. – April 28, 2015 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $29.1 million in the first quarter of 2015, which represented diluted earnings per share of $0.43. Trustmark’s performance du
Slide 2: Loans, Deposits, Capital and Credit Quality
Acquired loans totaled $498.4 million at March 31, 2015, down $51.0 million from the prior quarter. Collectively, loans held for investment and acquired loans totaled $6.9 billion at March 31, 2015, down $86.6 million from the prior quarter. Average earning assets during the first quarter totaled $1
Slide 3: Noninterest Income and Expense
Noninterest income totaled $42.4 million in the first quarter, an increase of 0.8% from the prior quarter and a decrease of 3.9% from levels one year earlier. The decline from the same period in the prior year was due primarily to debit card interchange-fee standards that became effective for Trustm
Slide 4: Realignment of retail delivery channels
Trustmark also continued the realignment of its retail delivery channels to enhance productivity and efficiency, as well as promote additional revenue growth. During the first quarter, Trustmark completed the consolidation of a banking center with limited growth opportunities into another office and
Slide 5: Forward-looking statements and contacts
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of
Slide 6: Consolidated Financial Information: Quarterly Average Balances
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2015 ($ in thousands) (unaudited) Linked Quarter Year over Year QUARTERLY AVERAGE BALANCES 3/31/2015 12/31/2014 3/31/2014 $ Change % Change $ Change % Change Securities AFS-taxable $ 2,190,344 $ 2,204,361 $ 2,136,392
Slide 7: Average Balances: Liabilities and Equity
Long-term FHLB advances 1,222 1,253 8,341 (31) -2.5% (7,119) -85.3% Subordinated notes 49,944 49,936 49,912 8 0.0% 32 0.1% Junior subordinated debt securities 61,856 61,856 61,856 - 0.0% - 0.0% Other liabilities 139,311 150,670 121,919 (11,359) -7.5% 17,392 14.3% Total liabilities 10,733,080 10,830,
Slide 8: Income Statements
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2015 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year INCOME STATEMENTS 3/31/2015 12/31/2014 3/31/2014 $ Change % Change $ Change % Change Interest and fees on LHFS & LHF
Slide 9: Per Share Data and Efficiency Ratio
Tangible book value $ 15.53 $ 15.13 $ 14.36 (1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of partnership tax credits, amortization of purchased intangibles, and nonroutine income and expens
Slide 10: Nonperforming Assets
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2015 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year NONPERFORMING ASSETS (1) 3/31/2015 12/31/2014 3/31/2014 $ Change % Change $ Change % Change Nonaccrual loans Alabama $ 902 $ 852 $ 96 $ 50
Slide 11: Capital Ratios
Tier 1 leverage ratio 9.99% 9.63% 9.14% Tier 1 common risk-based capital ratio 13.14% 12.75% 12.37% Tier 1 risk-based capital ratio 13.83% 13.47% 13.11% Total risk-based capital ratio 14.92% 14.56% 14.34% (1) - Excludes Acquired Loans and Covered Other Real Estate (2) - Mississippi includes Central
Slide 12: Average Balances: Five Quarters
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2015 ($ in thousands) (unaudited) Quarter Ended AVERAGE BALANCES 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 Securities AFS-taxable $ 2,190,344 $ 2,204,361 $ 2,202,020 $ 2,205,352 $ 2,136,392 Securities AFS-no
Slide 13: Average Balances: Liabilities and Equity, Five Quarters
Subordinated notes 49,944 49,936 49,928 49,920 49,912 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 Other liabilities 139,311 150,670 123,689 119,184 121,919 Total liabilities 10,733,080 10,830,693 10,681,218 10,720,105 10,683,159 Common stock 14,076 14,060 14,051 14,051 14,
Slide 14: Income Statements: Five Quarters
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2015 ($ in thousands except per share data) (unaudited) Quarter Ended INCOME STATEMENTS 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 Interest and fees on LHFS & LHFI-FTE $ 69,658 $ 70,775 $ 70,197 $ 69,618 $ 66
Slide 15: Market Value, Book Value and Tangible Book Value
Market value-Close $ 24.28 $ 24.54 $ 23.04 $ 24.69 $ 25.35 Book value $ 21.41 $ 21.04 $ 20.98 $ 20.76 $ 20.37 Tangible book value $ 15.53 $ 15.13 $ 15.04 $ 14.78 $ 14.36 (1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security ga
Slide 16: Nonperforming Assets: Five Quarters
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2015 ($ in thousands) (unaudited) Quarter Ended NONPERFORMING ASSETS (1) 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 Nonaccrual loans Alabama $ 902 $ 852 $ 852 $ 80 $ 96 Florida 8,179 11,091 10,986 11,041 9,95
Slide 17: Capital Ratios: Five Quarters
Tier 1 leverage ratio 9.99% 9.63% 9.54% 9.43% 9.14% Tier 1 common risk-based capital ratio 13.14% 12.75% 12.74% 12.61% 12.37% Tier 1 risk-based capital ratio 13.83% 13.47% 13.47% 13.34% 13.11% Total risk-based capital ratio 14.92% 14.56% 14.70% 14.54% 14.34% (1) - Excludes Acquired Loans and Covered
Slide 18: Note 1 - Securities Available for Sale and Held to Maturity
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2015 ($ 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 secu
Slide 19: Note 2 – Loan Composition
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2015 ($ in thousands) (unaudited) Note 2 – Loan Composition LHFI BY TYPE (excluding acquired loans) 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 Loans secured by real estate: Construction, land development and ot
Slide 20: Note 2 – Loan Composition by Region
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2015 ($ in thousands) (unaudited) Note 2 – Loan Composition (continued) March 31, 2015 Tennessee Mississippi (Memphis, (Central and TN and Southern Northern MS LHFI - COMPOSITION BY REGION (1) Total Alabama Florida Reg
Slide 21: Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2015 ($ 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-bearin
Slide 22: Note 5 – Other Noninterest Income and Expense
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2015 ($ in thousands) (unaudited) Note 5 – Other Noninterest Income and Expense Other noninterest income consisted of the following for the periods presented ($ in thousands): Quarter Ended 3/31/2015 12/31/2014 9/30/20
Slide 23: Note 6 - Non-GAAP Financial Measures (continued)
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2015 ($ in thousands) (unaudited) Note 6 - Non-GAAP Financial Measures (continued) Quarter Ended 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 TANGIBLE EQUITY AVERAGE BALANCES Total shareholders' equity $ 1,436,96
Slide 24: Regulatory capital reconciliation
CET1 capital (f) 1,117,340 Additional tier 1 capital instruments plus related surplus 60,000 Less: additional tier 1 capital deductions (1,762) Additional tier 1 capital 58,238 Tier 1 capital $ 1,175,578 Tier 1 common risk-based capital ratio (f)/(c) 13.14% (1) Calculation = ((net income adjusted fo
Slide 25: Trustmark First Quarter 2015 Financial Results
Zi, Trustmark First Quarter 2015 Banking and Financial Solutions Financial Results April 28, 2015 Building a Premier Regional Financial Services Organization
Slide 26: Forward-Looking Statements
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,” “
Slide 27: Quarter in Review
Quarter in Review Another quarter of solid financial results; Q1-15 EPS of $0.43 - up 2.4% from prior quarter v v Legacy loan portfolio: building traction in higher loan- growth markets: Alabama, Texas and Tennessee Acquired loans performance: interest income on acquired loans increased in the first
Slide 28: Legacy Loan Portfolio
Legacy Loan Portfolio Building traction in higher loan-growth markets Y Loans held for investment (“HFI”) decreased by $35.6 million to $6.4 billion from the prior quarter; year-over-year, loans HFI increased by $490.1 million Y Total loans (HFI & Acquired) decreased by $86.6 million from the prior
Slide 29: Acquired Loan Portfolio
Acquired Loan Portfolio Performance of acquired loans v Acquired loan yield in the first quarter totaled Interest Income & Impairment— Acquired Loans 11.62% and induded recoveries from settlement (Sin thousands) Qi-14 Q214 Q344 Qed QL-5 of debt of $3.9 million, which represented Acq, loan accretion
Slide 30: Credit Risk Management
Credit Risk Management Solid credit quality continues v Nonperforming assets declined 2.7% million from the prior quarter and 4.8% million from the prior year > Other real estate decreased 2.5% from the prior quarter and 19.2% from the prior year Y Net charge-offs for the quarter were negligible and
Slide 31: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Well diversified deposit base serves as an excellent, low-cost source of funds v Average deposits in the first quarter totaled $9.8 billion, up $234.5 million from the prior quarter v Noninterest-bearing represented 28.1% of average deposits in the first quarter Y C
Slide 32: Income Statement Highlights - Revenue
Income Statement Highlights —- Revenue Revenue remained relatively stable at approximately $140 million, reflecting Trustmark’s diversified business model Net Interest Income—FTE (Sin millions) = $109 $110 §103 _ $82 $36 $87 $89 Ql-14 Q2-14 Q3-14 Q4-14 Qi-15 4 Net Interest Income (excl. Acq. Loans)
Slide 33: Income Statement Highlights - Noninterest Expense
Income Statement Highlights — Noninterest Expense Noninterest expense totaled $99.2 million, down 5.0% from the prior quarter v Exduding ORE and intangible amortization of $3.1 million, noninterest expense in the first quarter totaled $96.1 million, an decrease of $3.0 million from the prior quarter
Slide 34: Capital Management
Capital Management Solid capital position reflects consistent profitability of our diversified financial services businesses v Tangible equity to tangible assets ratio was 8.91%, while the total risk-based capital ratio was 14.92% in the first quarter Y Solid capital base provides the opportunity to
Slide 35: Strategic Priorities to Enhance Shareholder Value
Strategic Priorities to Enhance Shareholder Value Y Profitable revenue generation Y Credit quality >» Create and expand customer relationships >» Maintain disciplined underwriting and pricing >» Loan growth >» Resolution of existing problem assets » Noninterest income — deposit services, wealth mana