Trustmark Corporation · NASDAQ:TRMK
Trustmark — 2010 KBW Regional Bank Conference
27 slides from Trustmark's conference presentation, Feb 24, 2010
Slide 1: People you trust. Advice that works.
People you trust. Advice that works. iB rustmark Banking and Financial Solutions 2010 KBW Regional Bank Conference February 24, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements @® Trustmark Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1999. You can identify forward-looking statements by words such as "may," "hope," “will,” “should,” “expec
Slide 3: Investment Thesis
Investment Thesis Trustmark is uniquely positioned to capitalize on market opportunities ¥ Strong market share in legacy markets with growth potential in Houston and Memphis ¥ Robust capital position provides strategic flexibility ¥ Diversified and stable business mix ¥ Proven ability to generate su
Slide 4: Trustmark is an integrated provider of banking and financial solutions
Trustmark is an integrated provider of banking and financial solutions As of December 31, 2009 * Total Assets * Total Loans HFI * Total Deposits * Market Cap * Banking Centers ° FTE Associates $9.5 billion $6.3 billion $7.2 billion $1.4 billion 150 2,500 Okjakoma “Tennessee Arkansas
Slide 5: Robust Capital Position Provides Strategic Flexibility
Robust Capital Position @ Teustmark Provides Strategic Flexibility ne ¥ Successful follow-on common stock offering generated $109.3 million in tangible common equity ¥ Fully repurchased $215.0 million of Preferred Stock from U.S. Treasury and redeemed Warrant for $10.0 million ¥ — Optimized capital
Slide 6: Robust Capital Position Relative to Peers
Robust Capital Position Relative to Peers @ Trustmark ¥ 4Q09 common equity offering and TARP redemption optimized Trustmark’s capital position Y Givenits earnings stability, Trustmark has increased its dividend over time and maintained it through the credit crisis ¥ Trustmark is one of the 35 larges
Slide 7: Diversified and Stable Business Mix
Bay: ; ‘ : F ind Stable Business Mix Year Ended December 31, 2009 ($ in millions) Total Revenue $522 Total Noninterest Income $168 AutolCredit Service Card Mortgage $57 $18 enue General Banking $30 Treasury & ~. Other $93 Insurance $29 Wealth Managem ent Mortgage a Commercial — $29 Insurance § Retai
Slide 8: Core Earnings Strength ...
@ 1 Core Earnings Strength ... Financial Results @ in miffions) Profitability 4-08 1-09 2-09 Pre-tax, Pre-provision Income $54.2 $57.41 $50.3 Net Income $25.3 $26.5 $16.6 Net Income Available to Common Shareholders $24.0 $23.4 $13.4 Key Ratios Net Interest Margin—FTE 4.20% 4.18% 4.20% Efficiency Rat
Slide 9: ... Driven by Best in Class Net Interest Margin and Efficiency Ratio
... Driven by Best in Class Net Interest Margin @ Teustmark and Efficiency Ratio Y First class deposit franchise has enabled Trustmark to secure superior pricing, driving margin v Management’s focus on expense initiatives has translated into a top tier operating platform 2009 Net Interest Margin—FTE
Slide 10: Loan Portfolio, December 31, 2009
December 31, 2009 (8 in millions) Commercial Loans $4,196 Consumer Loans $2,123 Construction & Other Land Grher. Developm ent Home iad Branch Direct State & Political $30 Mortgage $758 Subs $326 $e71 Owner Occupied RE $762 cal $1,127 Indirect CRE Income Credit Card $386 Producing $43 $705 Total Loan
Slide 11: Prudent Credit Risk Management
Prudent Credit Risk Management @ Teustmark Y Allocation of $103.7 million allowance for loan losses represented 2.10% of commercial loans and 0.80% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.64% December31,.2009 Florida Mississippi” © Tennessee®) Texas Total T
Slide 12: Deposits, December 31, 2009
December 31, 2009 @ in miffions) Total Deposits $7,188 Time Noninterest $2,421 Checking $1,685 Money Interest Market Checking $926 Savings $1,870 $287 Souroe: SNL Rnanelal, Company reports 150% 125% 100% — 75% 50% 25% 0% 4Q09 Loans HFI/ Deposits 122 93 92 92 79 Ta Benaeeeeue& TRMK UCBI IBKC HBHC CFR
Slide 13: Priorities in 2010
Priorities in 2010 ¥ Continue to manage through challenging business cycle ¥ Resolve problem assets ¥ Maintain fortress balance sheet and appropriate capital ratios Y¥ Prudent investments to support revenue growth ¥ Seek strategic opportunities to enhance long-term shareholder value Priorities in 20
Slide 14: People you trust. Advice that works.
People you trust. Advice that works. iB Trustmark janking and Financial Solutions
Slide 15: Supplemental Information
Supplemental Information 18
Slide 16: Strategic Accomplishments
Strategic Accomplishments Ty gl gt Successful follow-on common stock offering generated $109.3 million in tangible common equity, net of expenses Fully repurchased preferred shares issued to U.S. Treasury for $215 million and redeemed Warrant for $10.0 million Tangible common equity to tangible asse
Slide 17: Jackson, Mississippi Market
2 mind ot >» Trustmark has $2.1 billion in loans and $3.5 billion in deposits* >» Maintain market dominance through cross-selling and retention 2009-44 Projected Deposit TRMK 2009 Population Market Banking County Population Growth Share Centers Hinds 250,314 -0.62% 41.85% 21 Rankin 143,561 10.89% 33
Slide 18: Houston Banking Center Market
Banking center > Trustmark has $808 million in loans and $531 million in deposits* Buil Wealth Management platforms ing stronger Commercial, Retail, and 2009-14 Projected | Deposit | _TRMK 2009 Population | Market | Banking Market Population Growth | Share | centers Houston MSA 6,904,060 11.48% | 0.
Slide 19: Memphis Banking Center Market
NNESSEE Ba cote uncon MARSHALL Prhata MISSISSIP Banking center > Trustmark has $427 million in 2009-14 wee gat Projected Deposit TRMK loans and $632 million in deposits 2009 Population Market Banking Market Population Growth Share Centers » Focus on middle market MemphisMSA | 1,321,291 439% 2.90% 22
Slide 20: Florida Panhandle
Florida Panhandle >» Trustmark has $524 million in loans and $203 million in deposits* » Cross-sell to Fisher-Brown’s commercial insurance customers >» Focus on commercial lending and expansion of wealth management 2009-14 Projected TRMK 2009 Population Bankin County Population | Growth Centers Bay
Slide 21: Owner Occupied CRE
Owner Occupied CRE December 31, 2009 (Sinm Total Commercial Real Estate Loans Tennessee (2) Texas % of of of Total Loan Loan [Owner Occupied CRE Hi Loans § Type Hi Type Churches $ 12.2 16.0%] $ $ B17 50.5% $ 4.5 3.7%! Office 116.3 15.3% | 27 18.7% 77 49.6%! WF 15.2%! 19.2 16.5%! Health care 22.0 10.
Slide 22: Income Producing CRE
ja Tennessee 2) Texas % of % of % of Loan Loan Loan Loan Producing CRE $ Loans $ ype $ Type $ Type $ Type $ 158.6 22.5%) $ 56.1 36.4% $ 82.0 517% $11.4 7.2%)$ 9.1 5.7%! W718 24.4%] 34.2 19.9% 840 48.9%) 28.5 16.6%| 25.0 14.6%! Nursing homes / Assisted living 122.3 17.3%] a 0.0% 1120 91.6%] 4g 4.0%|
Slide 23: Total Construction, Land Development and Other Land Loans
Total Construction, Lid Development ind Other Lind Loans Alorida Mississippi (1) Tennessee (2) Texas ar Tota kof Lom wottom| ——_frortom ikottom iH Loans. 5 Type iH Type H Type 5 Type Lots 5 100 120%] § 619%) 24.9%/5 5 46%| $ 3 BT [Development wr zem|) | wae] | seme] | ag] | atom lUnimproved aid ze)
Slide 24: Florida Loans by Type
wer wor Loun Tyne s [Loans || construction, Land Development and Other Land Louns s | Loans [Construction and development and other land iouns = ta] mox]|tots 3 ee] a10%| Secured by 1-4tumily resiiential 27] 16.7%| [Development ar| raz Secured by nonfarm, nonresitential ano | 344% | unimproved tend
Slide 25: Florida Credit Quality
Florida Credit Quality December 31, 2009 a Trustmark Caestied a) (sen Total lose Loans Reserve Criticized Special Impaired | Less ech Non: leans Mention Nonimpaired Nonaccrua | impaired Loan Loss Impaired Florida Credit Qual Totaltons (1) (2) Acoruing _Nonzoerual @) Loans Reserves Loans Construction
Slide 26: Contact Information
Contact Information Trustmark Corporation’s common stock is listed on the NASDAQ National Market System and is traded under the symbol TRMK. Additional information is available at www.trustmark.com. Investor Inquiries: Louis E. Greer Treasurer and Principal Financial Officer 601-208-2310 Igreer@trus
Slide 27: People you trust. Advice that works.
People you trust. Advice that works. iB Trustmark janking and Financial Solutions