Slide 1: Trustmark Announces Second Quarter 2015 Financial Results
News Release Trustmark Corporation Announces Second Quarter 2015 Financial Results JACKSON, Miss. – July 28, 2015 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $30.6 million in the second quarter of 2015, which represented diluted earnings per share of $0.45. Trustmark’s performance d
Slide 2: Credit Quality and Revenue Generation
Acquired loans totaled $466.4 million at June 30, 2015, down $32.0 million from the prior quarter. Collectively, loans held for investment and acquired loans totaled $6.9 billion at June 30, 2015, up $1.2 million from the prior quarter. Trustmark’s capital position remained solid, reflecting the con
Slide 3: Noninterest Income and Noninterest Expense
Noninterest income totaled $45.5 million in the second quarter, an increase of 7.5% from the prior quarter and an increase of 3.2% from levels one year earlier. Service charges on deposit accounts increased 7.5% linked quarter, rebounding from a seasonal reduction in fees in the prior quarter. Bank
Slide 4: Additional Information
Additional Information As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 29, 2015, at 10:00 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking
Slide 5: Consolidated Financial Information: Quarterly Average Balances
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited) Linked Quarter Year over Year QUARTERLY AVERAGE BALANCES 6/30/2015 3/31/2015 6/30/2014 $ Change % Change $ Change % Change Securities AFS-taxable $ 2,255,485 $ 2,190,344 $ 2,205,352 $
Slide 6: Consolidated Balance Sheet: Liabilities and Equity
Short-term borrowings 201,744 50,570 61,227 151,174 n/m 140,517 n/m Long-term FHLB advances 1,204 1,222 8,236 (18) -1.5% (7,032) -85.4% Subordinated notes 49,953 49,944 49,920 9 0.0% 33 0.1% Junior subordinated debt securities 61,856 61,856 61,856 - 0.0% - 0.0% Other liabilities 147,646 139,311 119,
Slide 7: Income Statements
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year INCOME STATEMENTS 6/30/2015 3/31/2015 6/30/2014 $ Change % Change $ Change % Change Interest and fees on LHFS & LHFI-
Slide 8: Book Value and Tangible Book Value
Book value $ 21.47 $ 21.41 $ 20.76 Tangible book value $ 15.58 $ 15.53 $ 14.78 (1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of partnership tax credits, amortization of purchased intangible
Slide 9: Nonperforming Assets
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year NONPERFORMING ASSETS (1) 6/30/2015 3/31/2015 6/30/2014 $ Change % Change $ Change % Change Nonaccrual loans Alabama $ 713 $ 902 $ 80 $ (189
Slide 10: Capital Ratios
Tier 1 leverage ratio 10.14% 9.99% 9.43% Tier 1 common risk-based capital ratio 13.28% 13.14% 12.61% Tier 1 risk-based capital ratio 13.97% 13.83% 13.34% Total risk-based capital ratio 15.07% 14.92% 14.54% (1) - Excludes acquired loans and covered other real estate (2) - Mississippi includes Central
Slide 11: Average Balances
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited) Quarter Ended Six Months Ended AVERAGE BALANCES 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 6/30/2015 6/30/2014 Securities AFS-taxable $ 2,255,485 $ 2,190,344 $ 2,204,361 $ 2,2
Slide 12: Balance Sheet: Borrowings and Equity
Long-term FHLB advances 1,204 1,222 1,253 8,003 8,236 Subordinated notes 49,953 49,944 49,936 49,928 49,920 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 Other liabilities 147,646 139,311 150,670 123,689 119,184 Total liabilities 10,732,039 10,733,080 10,830,693 10,681,218 1
Slide 13: Income Statements
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands except per share data) (unaudited) Quarter Ended Six Months Ended INCOME STATEMENTS 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 6/30/2015 6/30/2014 Interest and fees on LHFS & LHFI-FTE $ 71
Slide 14: Stock Performance
STOCK PERFORMANCE Market value-Close $ 24.98 $ 24.28 $ 24.54 $ 23.04 $ 24.69 Book value $ 21.47 $ 21.41 $ 21.04 $ 20.98 $ 20.76 Tangible book value $ 15.58 $ 15.53 $ 15.13 $ 15.04 $ 14.78 (1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, exc
Slide 15: Nonperforming Assets
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited) Quarter Ended NONPERFORMING ASSETS (1) 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 Nonaccrual loans Alabama $ 713 $ 902 $ 852 $ 852 $ 80 Florida 7,892 8,179 11,091 10,986 11,04
Slide 16: Capital Ratios
Tangible equity/risk-weighted assets 12.34% 12.34% 12.17% 12.24% 12.19% Tier 1 leverage ratio 10.14% 9.99% 9.63% 9.54% 9.43% Tier 1 common risk-based capital ratio 13.28% 13.14% 12.75% 12.74% 12.61% Tier 1 risk-based capital ratio 13.97% 13.83% 13.47% 13.47% 13.34% Total risk-based capital ratio 15.
Slide 17: Note 1 - Securities Available for Sale and Held to Maturity
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited) Note 1 - Securities Available for Sale and Held to Maturity The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of secur
Slide 18: Note 2 – Loan Composition
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited) Note 2 – Loan Composition LHFI BY TYPE (excluding acquired loans) 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 Loans secured by real estate: Construction, land development and oth
Slide 19: Note 2 – Loan Composition by Region
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited) Note 2 – Loan Composition (continued) June 30, 2015 Tennessee Mississippi (Memphis, (Central and TN and Southern Northern MS LHFI - COMPOSITION BY REGION (1) Total Alabama Florida Regio
Slide 20: Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited) Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing
Slide 21: Note 5 – Other Noninterest Income and Expense
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited) Note 5 – Other Noninterest Income and Expense Other noninterest income consisted of the following for the periods presented ($ in thousands): Quarter Ended Six Months Ended 6/30/2015 3/
Slide 22: Note 6 - Non-GAAP Financial Measures (continued)
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited) Note 6 - Non-GAAP Financial Measures (continued) Quarter Ended Six Months Ended 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 6/30/2015 6/30/2014 TANGIBLE EQUITY AVERAGE BALANCES T
Slide 23: Tier 1 Capital and Risk-Based Capital Ratio
Additional tier 1 capital 58,429 58,238 Tier 1 capital $ 1,191,523 $ 1,175,578 Tier 1 common risk-based capital ratio (f)/(c) 13.28% 13.14% (1) Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity (2) Includes
Slide 24: Trustmark Second Quarter 2015 Financial Results
Zi, Trustmark Second Quarter 2015 Banking and Financial Solutions Financial Results July 28, 2015 "hm Building a Premier Regional Financial Services Organization
Slide 25: 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 26: Second Quarter Highlights
Second Quarter Highlights Financial performance reflects value of Trustmark’s diversified financial services businesses; Q2-15 EPS of $0.45 - up 4.7% from the prior quarter Profitable Revenue Generation At June 30, 2015: Y Solid performance across fee-income businesses-— e.g., insurance and a mortga
Slide 27: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Well diversified deposit base serves as an excellent, low-cost source of funds Y Strength of franchise reflected by our low cost of deposits, with nearly 60% of deposits in checking accounts v Average deposits in the second quarter totaled $9.8 billion, up $8.6 mill
Slide 28: Credit Risk Management
Credit Risk Management Continued solid credit performance Y Classified loans continued to reflect steady improvement; relative to the prior quarter and year, classified loan balances declined 1.8% and 11.0%, respectively v Nonperforming assets declined $8.0 million, or 4.8%, from the prior quarter a
Slide 29: Legacy Loan Portfolio
Legacy Loan Portfolio Continued focus on profitable, credit-disciplined loan growth Legacy Loans— Dollar Growth by Type Linked (Sin millions) Type Loans secured by real estate: Const., land dev. and other land loans Secured by 1-4 family residential prop. Secured by nonfarm, nonresidential prop. Oth
Slide 30: Acquired Loan Portfolio
Acquired Loan Portfolio Performance of acquired loans v Acquired loan yield in the second quarter totaled 10.43% and included recoveries from settlement of debt of $3.6 million, which represented approximately 2.97% of the total yield on acquired loans v We expect the yield on acquired loans (exc. r
Slide 31: Income Statement Highlights - Revenue
Income Statement Highlights - Revenue Revenue totaled $142.5 million, a 7.8% annualized increase from the prior quarter Net Interest Income-FTE Noninterest Income (Sin millions) (Sin millions) % of $109 $110 $103 $101 $101 T “ . (Q2-15 otal Linked Quarter Service charges ondepositaccounts $ 119 26%
Slide 32: Income Statement Highlights - Noninterest Expense
Income Statement Highlights - Noninterest Expense Noninterest expense remained well-controlled v Excluding ORE and intangible amortization of $2.9 million, noninterest expense in the second quarter totaled $97.4 million, an increase of $1.3 million from the prior quarter v Efficiency ratio improved
Slide 33: Capital Management
Capital Management Solid capital position reflects consistent profitability of our diversified financial services businesses v Tangible equity to tangible assets ratio was 8.93%, while the total risk-based capital ratio was 15.07% in the second quarter Y Solid capital base provides the opportunity t
Slide 34: Strategic Priorities to Enhance Shareholder Value
Strategic Priorities to Enhance Shareholder Value VY Profitable revenue generation > Create and expand customer relationships >» Loan growth >» Noninterest income — deposit services, wealth management, insurance and mortgage banking > Business development and cross-selling Y Process improvement and