Slide 1: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results Exhibit 99.2
Slide 2: 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,” “anticipate,” “intend,” “bel
Slide 3: COVID-19 Response
Trustmark has been proactive in its response to the COVID-19 pandemic and is taking comprehensive action to support customers, associates and communities COVID-19 Response Customers Branches remain accessible Actively promoting digital touchpoints, including ATM and ITM network, as well as digital a
Slide 4: Q2-20 Financial Highlights
Q2-20 Financial Highlights Maintained position of strength and stability LHFI (excl. PPP loans) increased $91.9 million, or 1.0%, from the prior quarter and $543.0 million, or 6.0%, Y-o-Y Pre-tax, pre-provision (PTPP) income totaled $62.1 million, up 9.8% LQ and 21.1% Y-o-Y Core noninterest expense
Slide 5: Paycheck Protection Program (PPP)
Paycheck Protection Program (PPP) Source: Company reports (1) Does not include loans that have been funded and paid off at 6/30/20 Originated 9,748 loans totaling $990.7 million during rounds 1 and 2 of the program Average loan size of $100 thousand
Slide 6: 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. (2) During the first quarter of 2020, Trustmark reclassified $72.6 million of acquired loans to loans held for investm
Slide 7: Loan Portfolio Detail
Loan Portfolio Detail 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-owner and owner occup
Slide 8: Loan Portfolio Detail
Loan Portfolio Detail Source: Company reports Portfolio includes commercial, financial intermediaries, agriculture production and non-profits Well diversified portfolio with no single category exceeding 13% Small energy book and has never been an area of focused growth Virtually no regulatory define
Slide 9: Loan Portfolio Detail: COVID-19 Impacted Industries
Loan Portfolio Detail COVID-19 Impacted Industries at June 30, 2020 Restaurants $118 million Outstanding 1.22% of Portfolio Outstandings Hotels $370 million Outstanding 3.8% of Portfolio Outstandings Retail (CRE) $480 million Outstanding 5.0% of Portfolio Outstandings Energy $114 million Outstanding
Slide 10: Loan Customer Assistance Programs
Loan Customer Assistance Programs Loans with a Concession (one or more) Provided As a Result of COVID-19 July 24, 2020 ($ in Thousands) Categories Number of Loans Balances Commercial (1) 1,055 $ 522,798 CRE (1) 383 803,231 Consumer (non 1-4 Family) (2) 632 5,750 1-4 Family (2) 673 95,037 Total Conce
Slide 11: Credit Risk Management
Credit Risk Management Solid asset quality metrics Nonperforming loans decreased 5.7% and 5.5% from the prior quarter and year-over-year, respectively Other real estate declined 26.4% from the prior quarter and 41.5% year-over-year Allowance for credit losses represented 1.23% of loans held for inve
Slide 12: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Deposits totaled $13.5 billion at June 30, 2020, up $1.9 billion linked-quarter, or 16.7%, primarily reflecting additional customer liquidity associated with the PPP loans and government stimulus payments Of the $1.9 billion linked-quarter growth, 48% was commercial
Slide 13: Income Statement Highlights – Net Interest Income
Income Statement Highlights – Net Interest Income Net interest income (FTE), excluding $5.0 million of interest and fees on PPP loans, totaled $103.0 million in the second quarter, resulting in a net interest margin of 3.14%. Including interest and fees on PPP loans, net interest income (FTE) totale
Slide 14: Income Statement Highlights – Noninterest Income
Income Statement Highlights – Noninterest Income Source: Company reports Noninterest income totaled $69.5 million, up 6.5% linked-quarter and up 40.0% year-over-year Service charges on deposit accounts decreased $3.6 million from the prior quarter, primarily due to lower NSF/OD fees. The decline ref
Slide 15: Income Statement Highlights – Mortgage Banking
Income Statement Highlights – Mortgage Banking Source: Company reports Mortgage loan production in the second quarter totaled $853.3 million, an increase of 86.7% from the prior quarter and a 106.1% increase year-over-year Retail production represented 70.5% of volume, or $601.9 million, in the seco
Slide 16: Income Statement Highlights – Noninterest Expense
Income Statement Highlights – Noninterest Expense Source: Company reports (1) Totals may not foot due to rounding (2) Includes allowance for credit losses for off-balance sheet credit exposures, amortization of intangibles, other real estate expense and charitable contributions. See Note 9 in Notes
Slide 17: Capital Management
Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained solid in the second quarter with a CET1 ratio of 11.42% and a total risk-based capital ratio of 13.00% at June 30, 2020 Trustmark’s Board of Directors de
Slide 18: Trustmark Corporation – Who We Are
Trustmark Corporation Who We Are Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to achie