Slide 1: Fourth Quarter & Fiscal Year 2019 Financial Results
Fourth Quarter & Fiscal Year 2019 Financial Results January 28, 2020 Exhibit 99.2
Slide 2: 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 3: Financial Highlights
Profitable Revenue Generation Expense Management Credit Quality Capital Management LHFI increased $499.8 million, or 5.7%, Y-o-Y Net interest income (FTE), excluding acquired loans, totaled $431.1 million in 2019, up 3.9% from the prior year The net interest margin (FTE), excluding acquired loans, e
Slide 4: Loans Held for Investment (LHFI) Portfolio
Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Trustmark has no loan exposure in which the source of repayment or the underlying security of such exposure is tied to the realization of value from energy reserves Total energy-related sector ex
Slide 5: Credit Risk Management
Credit Risk Management Solid asset quality metrics Nonperforming loans decreased 9.8% and 13.6% from the prior quarter and year-over-year, respectively Other real estate declined 8.5% from the prior quarter and 15.6% year-over-year Allowance for loan losses represented 410.5% of nonperforming loans,
Slide 6: Current Expected Credit Losses (CECL) Implementation
Current Expected Credit Losses (CECL) Implementation Source: Company reports Life-of-loan reserves will be driven by: Portfolio Characteristics Risk Ratings Economic Outlook Most Significant Impacts: Economic forecasts and uncertainty Unfunded Commitment exposure Comparison of Reserves on the adopti
Slide 7: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Deposits totaled $11.2 billion at December 31, 2019, unchanged from the prior quarter and down $118.9 million, or 1.0%, from the prior year Excluding public fund balances, deposits at December 31, 2019, were unchanged from the prior quarter and up $303.6 million, or
Slide 8: Income Statement Highlights – Net Interest Income
Income Statement Highlights – Net Interest Income Net interest income (FTE), excluding acquired loans, totaled $106.6 million in the fourth quarter, resulting in a net interest margin of 3.52%. In 2019, net interest income (FTE), excluding acquired loans, totaled $431.1 million, an increase of 3.9%
Slide 9: Income Statement Highlights – Noninterest Income
Income Statement Highlights – Noninterest Income Noninterest income before negative hedge ineffectiveness totaled $50.6 million in the fourth quarter, down $1.5 million, or 2.9%, linked-quarter, principally due to a seasonal decline in insurance commissions. In 2019, noninterest income before negati
Slide 10: Income Statement Highlights – Noninterest Expense
Income Statement Highlights – Noninterest Expense Core noninterest expense, which excludes ORE and intangible amortization, totaled $421.0 million in 2019, an increase of 3.1% from the prior year. In the fourth quarter, core noninterest expense totaled $107.5 million, a 2.1% increase from the prior
Slide 11: Capital Management
Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses During the fourth quarter, Trustmark repurchased approximately $2.2 million, or 64 thousand shares of its outstanding common stock. Trustmark repurchased $56.6 million, or approxi
Slide 12: Profitable Revenue Generation / Trustmark Corporation Who We Are
Profitable Revenue Generation Organic growth across banking, mortgage, insurance and wealth management businesses Expansion into growth markets across the Southeast via mergers and acquisitions Enhance the customer experience Continuously improve productivity and efficiency Maintain disciplined unde