Slide 1: Acquisition of Cadence Financial Corporation
People you trust. Advice that works. iB rustmark Banking and Financial Solutions Acquisition of Cadence Financial Corporation Starkville, Mississippi September 22, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this release 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," "an
Slide 3: Investment Highlights
Investment Highlights Y Acquisition of Cadence represents an exceptional strategic, in-market opportunity ¥ Immediately accretive to operating EPS and tangible book value ¥ Credit risk is well understood and manageable; loans appropriately marked given credit environment Y Straightforward system con
Slide 4: Cadence Overview
¥ 125-year-old bank holding company headquartered in Starkville, Mississippi Y As of June 30, 2010 * $1.9 billion in assets * $1.0 billion in loans * $1.5 billion in deposits * 38 branch locations ¥ Strong market share and long-standing customer relationships in legacy markets including Mississippi'
Slide 5: Transaction Overview
inancial Corp. ¥ Aggregate consideration of approximately $23.8 million; represents 31.4% of tangible common equity ¥ Represents approximately $2.00 per Cadence share y Fixed exchange ratio of 0.096993 shares of TRMK per CADE common share ¥ $44.0 million of Cadence preferred stock and warrant issued
Slide 6: Deposit Market Share & Pro Forma Branch Map
Deposit Market Share & Pro Forma Branch Map @ Trustmark Largest deposit market share in the “Golden Triangle,” home of : * Mississippi State University with 20,000+ students * Columbus Air Force Base * — Severstal Columbus - $1 billion state of the art steel mill * American Eurocopter, division of E
Slide 7: Cadence Deposit Composition
Cadence Deposit Composition June 30, 2010 $in millions v Significant opportunity to optimize branch network and reduce deposit costs 1.48% 071% Cost of Deposits (%) 3.51% 287% 2.52% 2.00% 184% 157% 1.13% 0.78% 2007 2008 2003 3812010 Cadence mi Trustmark @aav2010 Jumbo Time Noninterest Checking $175
Slide 8: Pro Forma Financial Impact
Pro Forma Financial Impact v Immediately accretive to operating EPS and tangible book value Y Transaction is expected to generate negative goodwill (bargain purchase gain) Y Estimated future operating core net income contribution in excess of $10 million to Trustmark by 2012 v Significant revenue sy
Slide 9: Due Diligence Process
Due Diligence Process Y Conducted extensive due diligence covering credit, financial, and regulatory matters Y Reviewed 70% + of the commercial portfolio and 40% + of the consumer portfolio * Trustmark senior lenders and credit administrators visited a significant percentage of real estate collatera
Slide 10: Cadence Loan Portfolio and Credit Marks
a Jt ‘Sin millions Y Credit risk manageable and well understood Y Trustmark has proven record of managing real estate loans in challenging environment ¥ Total loan portfolio has decreased 25% since 12/31/07 Y Total charge-offs since 1/1/2008 totaled approximately $95 million Consumer Other 319, $16
Slide 11: Cadence Loan Portfolio Contraction
Cadence Loan Portfolio Contraction $in millions Loan Type 12/31/2007 «6/30/2010 $Change = =% Change Construction & Land Development $ a2 $ 137) $= (295) 68.4%, 1-4Family 245 274 {22) = (Owner Ocoupied CRE 175 217 B 24.5% Income Producing CRE 109 167 33 53.1% (Other R/E Secured 58 58 o 02%) Commercia
Slide 12: Cadence Geographic Loan Composition
Cadence Geographic Loan Composition June 30, 2010 $in millions Total Loans $998 Million Georgia $27 Florida $126 Mississippi $287 Middle TN $113 Tuscaloosa 7% $120 Memphis $257 Birmingham $69 Construction & Land Development Loans $137 Million Georgia $10 Mississippi $23 17% Florida $24 Tuscaloosa $1
Slide 13: Cadence Nonperforming Loans
Cadence Nonperforming Loans June 30, 2010 $in millions Nonperforming Loans by Type Nonperforming Loans by Region 1-4 Family Tuscaloosa Residential Mississippi $0.3 Birmingham $48 $6.0 $5.5 Multifamily $6.6 TM% Construction 9% 8% &Land ; Development Florida $32.9 $12.7 Commercial & Industrial $6.9 10
Slide 14: Summary
Summary v Acquisition of Cadence represents an exceptional strategic, in-market opportunity v Immediately accretive to operating EPS and tangible book value v Strong pro forma capital ratios provide flexibility to continue to take advantage of market opportunities Y Credit risk is well understood an
Slide 15: Additional Information
Additional Information Trustmark will file a Registration Statement on Form S-4 that will include a proxy statement of Cadence anda prospectus of Trustmark and other relevant documents concerning the proposed merger with the Securities and Exchange Commission. Shareholders are urged to read the prox
Slide 16: People you trust. Advice that works.
People you trust. Advice that works. iB Trustmark janking and Financial Solutions