Slide 1: Third Quarter 2018 Financial Results
Building a Premier Regional Financial Services Organization Third Quarter 2018 Financial Results October 23, 2018 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: 3Q-18 Financial Highlights
3Q-18 Financial Highlights Source: Company reports Continued consistent financial performance – EPS of $0.54 At September 30, 2018: Total Assets $13.4 billion Total Loans (LHFI & Acquired) $8.9 billion Total Deposits $11.0 billion Banking Centers 198 Profitable Revenue Generation Net Income of $36.3
Slide 4: Loans Held for Investment (LHFI)
Source: Company reports Loans Held for Investment (LHFI) 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 exposure of $365.3 million with outstanding balanc
Slide 5: Credit Risk Management
Other real estate declined 24.6% year-over-year Net charge-offs represented 0.18% of average loans The provision for loan losses totaled $8.7 million in the third quarter and was driven entirely by specific reserves on two impaired loans Shared national credit in the limited-service restaurant indus
Slide 6: Acquired Loan Portfolio
Source: Company reports ($ in millions) Acquired Loan Portfolio Acquired Loans (period end balances) Acquired loan yield in the third quarter totaled 10.82% and included recoveries from settlement of debt of $1.6 million, which represented approximately 4.4% of the total yield on acquired loans The
Slide 7: Attractive, Low-Cost Deposit Base
Deposits totaled $11.0 billion at September 30, 2018, a decline of 1.0% from the previous quarter and an increase of 7.1% year-over-year Cost of deposits is 54 basis points; approximately 57% of deposit balances in checking accounts Noninterest-bearing deposits represented 26% of average deposits in
Slide 8: Income Statement Highlights – Revenue
Income Statement Highlights – Revenue Net Interest Income – FTE Net Interest Margin Noninterest Income ($ in millions) Net Interest Income on Acq. Loans Net Interest Income (excl. Income on Acq. Loans) Source: Company reports ($ in millions) Net interest income (FTE), excluding acquired loans, total
Slide 9: Income Statement Highlights – Noninterest Expense
Income Statement Highlights – Noninterest Expense Source: Company reports Core noninterest expense, which excludes ORE and intangible amortization, totaled $102.8 million for the third quarter Salaries and employee benefits increased $872 thousand from the prior quarter to total $60.8 million, due i
Slide 10: Capital Management
Capital Management Source: Company reports (1) The regulatory capital ratios for December 31, 2017 contains a reclassification adjustment of $8.5 million from AOCI to retained earnings as allowed by regulatory agencies in an interagency statement released January 18, 2018 to address disproportionate
Slide 11: Hurricane Michael Update
Hurricane Michael Update Source: Company reports, SNL Impact of Hurricane Michael on Trustmark’s Florida Footprint On October 10, 2018, Hurricane Michael struck the Florida Panhandle causing significant damages Trustmark has fifteen branches in the Florida market, including eight in Bay County, whic
Slide 12: Strategic Priorities to Enhance Shareholder Value
Profitable revenue generation Balance sheet optimization Targeted, cost-effective deposit growth Business development and cross-selling Mergers and acquisitions In-market consolidation Expand to additional attractive markets Patience and discipline Process improvement and expense management Performa