Trustmark Corporation · NASDAQ:TRMK
Trustmark — Citigroup Smith Barney Financial Services Conference 2004
25 slides from Trustmark's conference presentation, Jan 27, 2004
Slide 1: Citigroup Smith Barney Financial Services Conference
Citigroup Smith Barney Financial Services Conference New York, NY January 28, 2004 Citigroup Smith Barney Financial Services Conference 1 January 28, 2004
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain statements of Trustmark’s strategies, plans and objectives, as well as estimates of future operating results for 2004 and beyond for Trustmark Corporation as well as estimates of financial condition, operating efficiencies and revenue creation
Slide 3: 2003 Corporate Profile
2003 Corporate Profile • Trustmark is an integrated provider of banking and financial solutions: – $ 7.9 billion in total assets – $ 427 million in revenue – $ 118.5 million in net income – 17.56% ROE – 8.71% Equity to Assets – 1.60% ROA – Investment Ratings • Moody’s: A3 • S&P: BBB+ • Corporate Inf
Slide 4: Financial Performance: Basic Earnings and Dividends Per Share
Financial Performance Basic Earnings and Dividends Per Share 5 Yr. CAGR Earnings Per Share 12.0% Dividends Per Share 14.4% $ 2 .5 0 $1.95 $2.01 $ 2 .0 0 $1.72 $1.50 $ 1 .5 0 $1.36 $1.14 $ 1 .0 0 $0.62 $0.69 $0.51 $0.56 $0.44 $ 0 .5 0 $0.35 $ 0 .0 0 1998 1999 2000 2001 2002 2003 Citigroup Smith Barne
Slide 5: Financial Performance: Return on Average Equity
Financial Performance Return on Average Equity 20.00% 17.93% 16.98% 17.56% 18.00% 15.68% 16.00% 14.93% 13.53% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 1998 1999 2000 2001 2002 2003 Total $6.4 B $6.7 B $6.9 B $7.2 B $7.1 B $7.9 B Assets Citigroup Smith Barney Financial Services Conference 5
Slide 6: Financial Performance: Capital Management
Financial Performance Capital Management ($ In Thousands) 1998-2003 Net Income $ 633,996 Cash Dividends 206,376 10.5% 10.26% Share Repurchase Program 401,179 9.72% 10.0% 9.55% 9.52% 9.5% 9.14% 9.88% 8.71% 9.0% 9.37% 8.5% 8.79% 8.74% 8.72% 8.0% 7.5% 7.0% 7.53% 6.5% 1998 1999 2000 2001 2002 2003 Equit
Slide 7: Share Repurchase Program 1998 thru 2003
Share Repurchase Program 1998 thru 2003 Number of Average Shares Dollars Price Total Buy Back 18,666,752 $401,179,251 $21.49 Market Value of Stock $545,629,161 $29.23 Implied Gain $144,449,910 Foregone Dividend $33,547,329 Implied Total Return $177,997,239 Remaining Authority 3,493,465 Citigroup Smi
Slide 8: Financial Performance: Total Earning Asset Composition
Financial Performance Total Earning Asset Composition 5 Yr. CAGR Securities 0.16% Loans 6.33% $8,000 $7,183 $7,000 $6,515 $6,453 $6,219 $6,318 $2,150 $6,000 $5,835 $1,991 $1,836 29.9% $2,204 $2,174 $2,133 30.6% 28.4% 35.4% 34.4% $5,000 36.6% $5,033 $4,000 $4,524 $4,617 $4,144 70.1% $4,015 69.4% 71.6
Slide 9: Financial Performance: Total Revenue
Financial Performance Total Revenue ($ in thousands) 5 Yr. CAGR Total Revenue 6.4% Non-Interest Income 12.6% Net-Interest Income 3.5% $434,056 $427,373 $450,000 $398,894 $357,520 $344,345 $141,870 $350,000 $313,810 $157,543 $131,990 32.7% 36.9% $101,943 $124,540 33.1% $86,990 29.6% $250,000 34.8% 27
Slide 10: Financial Performance: Credit Quality
Financial Performance Credit Quality ($millions) $80.0 $75.5 $74.8 $74.3 $70.0 $66.2 $65.9 $65.9 $60.0 $50.0 $42.0 $37.9 $40.0 $29.9 $30.0 $18.7 $18.2 $15.1 $20.0 $10.0 $- 1998 1999 2000 2001 2002 2003 Allowance for loan and lease losses (ALLL) Non-Performing Assets (NPA) 1998 1999 2000 2001 2002 20
Slide 11: Loan Composition
Loan Composition As of December 31, 2003 ($ in millions) Total Loans: Loans Held for Sale $5,033 2.2% $113 Commercial & Industrial 15.6% Non Farm – Non $786 Residential 20.2% $1,016 Consumer 15.7% $788 State/Political Subs 3.4% 1-4 Family 33.1% $173 $1,664 Other 1.7% $87 Construction 8.1% $406 Citig
Slide 12: Deposit Composition
Deposit Composition As of December 31, 2003 ($ in millions) Total Deposits: Savings $5,089 16.3% $828 CDs 33.8% $1,718 Interest Bearing Transactions 23.8% $1,214 Non Interest Bearing DDAs 26.1% $1,329 Citigroup Smith Barney Financial Services Conference 12 January 28, 2004
Slide 13: 2003 Revenue by Line of Business
Financial Performance 2003 Revenue by Line of Business ($ in millions) Treasury & Total Revenue: Other $36.5 $427.4 8.6% Wealth Management $24.9 5.8% Commercial $51.2 Consumer 12.0% Branch $211.1 49.4% Insurance $17.6 4.1% Mortgage $61.3 14.3% Consumer Non-Branch $24.8 5.8% Citigroup Smith Barney Fi
Slide 14: Strategic Focus
Strategic Focus • Invest in higher growth markets to become regional financial services provider • Maximize profitability in lower growth markets • Integration of Wealth Management • Prudent investments to support revenue growth • Continue to build shareholder value Citigroup Smith Barney Financial
Slide 15: Strategic Accomplishments: Corporate Governance
Strategic Accomplishments • Corporate Governance – Corporate Governance Quotient ranks in 99th percentile according to Institutional Shareholder Services (ISS) – Ranked 6th in the Russell 3000 as rated by ISS for Corporate Governance – Compliance with Sarbanes-Oxley Act – Successful re-audit by KPMG
Slide 16: Strategic Accomplishments: Loan and Deposit Growth
Strategic Accomplishments • Loan and Deposit Growth – Loans increased $415 million, or by 9.0%, to $5.0 billion in 2003 • Commercial Loans increased $267 million • Mortgage Loans increased $199 million • Consumer Loans decreased $51 million – Deposits increased $403 million, or by 8.6%, to $5.1 bill
Slide 17: Strategic Accomplishments: Wealth Management
Strategic Accomplishments • Wealth Management – Duane Dewey selected to head division – Trustmark’s Wealth Management Group restructured to include: • Trustmark Securities, Inc. • Trustmark Investment Advisors, Inc. • Trust Division of Trustmark National Bank • Private Banking Citigroup Smith Barney
Slide 18: Strategic Accomplishments: Technology
Strategic Accomplishments • Technology – Credit Process Redesign • Right sized loan operations staffing • Implemented B2B for business loan originations and APPRO for consumer loan originations • Reaffirmed loan officer lending authority systemwide – Transaction Image Archive • Prime pass capture of
Slide 19: Strategic Accomplishments: Mergers and Acquisitions
Strategic Accomplishments • Mergers and Acquisitions – Entered Florida market with purchase of 7 Emerald Coast Bank offices serving markets from Destin to Panama City – Pending purchase of 5 Allied Houston Bank offices in Houston – Positioned for potential significant transactions • Revised charter
Slide 20: Strategic Focus: Jackson
Strategic Focus Jackson • Demographics • Population – 448 thousand 2.5% growth from 2003-08 • Median HHI – $43,739 14.3% growth from 2003-08 • Deposits – $6.4 billion • Trustmark has 38 offices, $2.4 billion in loans, $2.4 billion in deposits, #1 deposit market share of 40.7% • Strategic Focus – Mai
Slide 21: Mississippi Economic Development
Mississippi Economic Development Nissan Motor Plant • In May, 2003, the first vehicle rolled off the assembly line of the Nissan facility located in Canton, Mississippi, 15 miles north of Jackson. • The $1.4 billion facility will produce 400,000 vehicles, consisting of five different models, per yea
Slide 22: Strategic Focus: Memphis
Strategic Focus Memphis • Demographics • Population – 1.2 million 3.5% growth from 2003-08 • Median HHI – $45,698 18.0% growth from 2003-08 • Deposits – $24.0 billion • Trustmark has 21 offices, $686 million in loans, $625 million in deposits, #5 deposit market share of 2.7% • Strategic Focus – Enha
Slide 23: Strategic Focus: Florida's Emerald Coast
Strategic Focus Florida’s Emerald Coast • Demographics • Population – 380 thousand 8.8% growth from 2003-08 • Median HHI – $42,618 13.4% growth from 2003-08 • Deposits – $4.7 billion • Trustmark has 7 offices, $246 million in loans, $220 million in deposits, #8 deposit market share of 4.5% • Strateg
Slide 24: Strategic Focus: Houston
Strategic Focus Houston • Demographics • Population – 4.4 million 9.9% growth from 2003-08 • Median HHI – $49,676 16.2% growth from 2003-08 • Deposits – $83.7 billion • Coming in March … • 5 offices, $158 million in loans, $160 million in deposits • Strategic Focus – Branding – Selective Branching –
Slide 25: Citigroup Smith Barney Financial Services Conference January 28, 2004
Citigroup Smith Barney Financial Services Conference 25 January 28, 2004
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