Slide 1: Fourth Quarter & Fiscal Year 2021 Financial Results
Fourth Quarter & Fiscal Year 2021 Financial Results January 25, 2022 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward–Looking Statements 2 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
Expense Management Financial Highlights Performance reflects continued balance sheet growth, strong credit quality and disciplined expense management Source: Company reports (1) For Non-GAAP measures, please refer to the Earnings Release dated January 25, 2022 and the Consolidated Financial Informat
Slide 4: Loans Held for Investment (LHFI) Portfolio
Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Source: Company reports (1) Percentages may not sum to 100% due to rounding. Trustmark has no loan exposure in which the source of repayment or the underlying security of such exposure is tied to
Slide 5: Real Estate Secured Loan Portfolio Detail
Real Estate Secured Loan Portfolio Detail 5 Source: Company reports (1) Multi-Family is included in Other Real Estate Secured Loans in Financials Focus on vertical construction with limited exposure to unimproved land and development Well-diversified product and geographical mix Balanced between non
Slide 6: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail 6 Source: Company reports Portfolio includes commercial, financial intermediaries, agriculture production and non-profits Well-diversified portfolio with no single category exceeding 14% Small energy book and has never been an area of focused growth Virtually no regu
Slide 7: COVID-19 Impacted Industries
COVID-19 Impacted Industries 7 At December 31, 2021
Slide 8: Allowance for Credit Losses
Allowance for Credit Losses Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 8 ($ in millions) Quantitative changes due to improvement of the macroeconomic forecast Qualitative changes including reduction of the impact of t
Slide 9: Credit Risk Management
Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 0.97% of loans held for investment and 500.85% of nonaccrual loans, excluding individually evaluated loans Net charge-offs totaled $101 thousand in the fourth quarter; recoveries exceeded charge-offs by $3.7 m
Slide 10: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Deposits totaled $15.1 billion at December 31, 2021, up $164.3 million, or 1.1%, linked-quarter, and up $1.0 billion, or 7.4%, year-over-year Cost of interest-bearing deposits in the fourth quarter totaled 0.13%, down 1 basis point from the prior quarter Source: Com
Slide 11: Income Statement Highlights – Net Interest Income
Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $101.2 million, resulting in a net interest margin of 2.53% in the fourth quarter, down 4 basis points from the prior quarter The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.8
Slide 12: Earning Asset Composition & Interest Rate Sensitivity
Earning Asset Composition & Interest Rate Sensitivity As of 12/31/21 12 Substantial NII asset sensitivity is driven by, Loan portfolio mix with 51% variable rate Securities portfolio duration of 3.9 years Cash & due balance of $2.3 billion Agency MBS is backed primarily by 15-year collateral Balance
Slide 13: Income Statement Highlights – Noninterest Income
Noninterest income totaled $50.8 million for the fourth quarter, a decrease of $3.4 million linked-quarter. For the year ended 2021, noninterest income totaled $221.9 million, a $52.7 million decrease year-over-year. The linked-quarter and year-over-year changes are principally attributable to lower
Slide 14: Income Statement Highlights – Mortgage Banking
Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding (2) Production includes Loans Available for Sale (AFS) and Portfolio (3) Gain on Sale Margin excludes FAS 133 (Pipeline valuation adjustment) Mortgage banking revenue totaled $11.6 million
Slide 15: Income Statement Highlights – Noninterest Expense
Adjusted Noninterest Expense (2) - totaled $118.2 million in the fourth quarter, up $1.6 million, or 1.3%, from the prior quarter. In 2021, adjusted noninterest expense totaled $471.3 million, a 3.5% increase from the prior year. Salaries and benefits totaled $68.3 million in the fourth quarter. Exc
Slide 16: Capital Management
Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.29% and a total risk-based capital ratio of 13.55% at December 31, 2021 Repurchased $27.1 million, or approximately 816 th
Slide 17: Outlook Commentary
Outlook Commentary(1) Source: Company reports (1) See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. 17
Slide 18: Trustmark Corporation
Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 180 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to