Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results July 26, 2022 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: Financial Highlights
Maintained strong capital levels with CET1 ratio of 11.01% and total risk-based capital ratio of 13.26% Repurchased $7.5 million, or approximately 263 thousand shares of common stock in the second quarter; during first six months of 2022, repurchased $16.6 million, or approximately 542 thousand shar
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. Dollar Change: $73 $548 $149 $22 4 Portfolio exhibits diversity by product type, geography, and industry Strong growth
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 Relatively balanced
Slide 6: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 13% Small energy book and has never been an area of focused growth Virtually no regulatory defined higher risk commercial and industrial outstanding ($18.0 million) Portfolio inclu
Slide 7: Allowance for Credit Losses Rollforward
Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 7 Net impact of quantitative changes including improvement of the macroeconomic forecast, loan growth, and individually analyzed reserves Net impact of qualitative changes in
Slide 8: Credit Risk Management
Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 0.94% of loans held for investment and 475% of nonaccrual loans, excluding individually evaluated loans Recoveries exceeded charge-offs by $1.7 million in the second quarter and $1.8 million year-to-date Nonac
Slide 9: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Deposits totaled $14.8 billion at June 30, 2022, down $343.1 million, or 2.3%, linked-quarter, and an increase of 138.1 million, or 0.9%, year-over-year Cost of interest-bearing deposits in the second quarter totaled 0.11%, unchanged from the prior quarter Source: C
Slide 10: Income Statement Highlights – Net Interest Income
$26 Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $115.6 million, resulting in a net interest margin of 2.90% in the second quarter The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 3.06% in the second quarter, a 18 basis poi
Slide 11: Earning Asset Composition & Interest Rate Sensitivity
Earning Asset Composition & Interest Rate Sensitivity As of 06/30/22 11 Substantial NII asset sensitivity is driven by, Loan portfolio mix with 47% variable rate Securities portfolio duration of 4.3 years Cash & due balance of $0.7 billion Agency MBS is backed primarily by 15-year collateral Book Ba
Slide 12: Income Statement Highlights – Noninterest Income
Income Statement Highlights – Noninterest Income Source: Company reports (1) Totals may not foot due to rounding Noninterest income totaled $53.3 million in the second quarter, a decrease of $862 thousand linked-quarter and $3.2 million year-over-year. The linked-quarter and year-over-year changes a
Slide 13: 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 $8.1 million i
Slide 14: Income Statement Highlights – Noninterest Expense
Adjusted Noninterest Expense(2) – totaled $122.4 million in the second quarter, a 1.5% increase from the prior quarter Salaries and employee benefits increased $2.1 million linked-quarter due primarily to commissions and annual merit increases Services & fees remained relativity flat linked-quarter
Slide 15: Capital Management
Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.01% and a total risk-based capital ratio of 13.26% at June 30, 2022 Repurchased $7.5 million, or approximately 263 thousan
Slide 16: 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. 16 Loans Held For Investment balances expected to grow high single digits f
Slide 17: Trustmark Corporation – Who We Are
Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 177 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to