Slide 1: Trustmark Corporation Announces 2014 Financial Results
News Release Trustmark Corporation Announces 2014 Financial Results JACKSON, Miss. – January 27, 2015 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $28.1 million in the fourth quarter of 2014, which represented diluted earnings per share of $0.42. For the full year 2014, net income to
Slide 2: Capital position and credit quality
Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. At December 31, 2014, Trustmark’s tangible equity to tangible assets ratio was 8.62%, while the total risk-based capital ratio was 14.56%. Trustmark’s solid capital
Slide 3: Noninterest income and expense
Noninterest income totaled $42.0 million in the fourth quarter, a decrease of 2.0% from the prior quarter and an increase of 8.7% from levels one year earlier. Total noninterest income in 2014 was $173.1 million, down 0.4% from the prior year. Bank card and other fees totaled $6.7 million in the fou
Slide 4: Branch network realignment and additional information
Trustmark continued realignment of its branch network to enhance productivity and efficiency as well as promote additional revenue growth. During the fourth quarter, Trustmark consolidated two banking centers with limited growth opportunities. Over the course of 2014, Trustmark consolidated five ban
Slide 5: Forward-looking statements and contacts
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of
Slide 6: Consolidated Financial Information: Quarterly Average Balances
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2014 ($ in thousands) (unaudited) Linked Quarter Year over Year QUARTERLY AVERAGE BALANCES 12/31/2014 9/30/2014 12/31/2013 $ Change % Change $ Change % Change Securities AFS-taxable $ 2,204,361 $ 2,202,020 $ 3,026
Slide 7: Balance sheet liabilities and equity
Long-term FHLB advances 1,253 8,003 8,458 (6,750) -84.3% (7,205) -85.2% Subordinated notes 49,936 49,928 49,904 8 0.0% 32 0.1% Junior subordinated debt securities 61,856 61,856 61,856 - 0.0% - 0.0% Other liabilities 150,670 123,689 137,338 26,981 21.8% 13,332 9.7% Total liabilities 10,830,693 10,681
Slide 8: Income Statements
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2014 ($ in thousands except per share data) (unaudited) Quarter Ended Linked Quarter Year over Year INCOME STATEMENTS 12/31/2014 9/30/2014 12/31/2013 $ Change % Change $ Change % Change Interest and fees on LHFS &
Slide 9: Per share data and tangible book value
Tangible book value $ 15.13 $ 15.04 $ 13.95 (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 intangibles, and nonroutine income and expens
Slide 10: Nonperforming Assets
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2014 ($ in thousands) (unaudited) Quarter Ended Linked Quarter Year over Year NONPERFORMING ASSETS (1) 12/31/2014 9/30/2014 12/31/2013 $ Change % Change $ Change % Change Nonaccrual loans Alabama $ 852 $ 852 $ 14
Slide 11: Risk-based capital ratios
Tier 1 common risk-based capital ratio 12.75% 12.74% 12.21% Tier 1 risk-based capital ratio 13.47% 13.47% 12.97% Total risk-based capital ratio 14.56% 14.70% 14.18% (1) - Excludes Acquired Loans and Covered Other Real Estate (2) - Mississippi includes Central and Southern Mississippi Regions (3) - T
Slide 12: Average Balances
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2014 ($ in thousands) (unaudited) Quarter Ended Year Ended AVERAGE BALANCES 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 12/31/2014 12/31/2013 Securities AFS-taxable $ 2,204,361 $ 2,202,020 $ 2,205,352 $ 2,
Slide 13: Liabilities and equity by quarter
Long-term FHLB advances 1,253 8,003 8,236 8,341 8,458 Subordinated notes 49,936 49,928 49,920 49,912 49,904 Junior subordinated debt securities 61,856 61,856 61,856 61,856 61,856 Other liabilities 150,670 123,689 119,184 121,919 137,338 Total liabilities 10,830,693 10,681,218 10,720,105 10,683,159 1
Slide 14: Income Statements by quarter
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2014 ($ in thousands except per share data) (unaudited) Quarter Ended Year Ended INCOME STATEMENTS 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 12/31/2014 12/31/2013 Interest and fees on LHFS & LHFI-FTE $ 7
Slide 15: Market value, book value and tangible book value
Market value-Close $ 24.54 $ 23.04 $ 24.69 $ 25.35 $ 26.84 Book value $ 21.04 $ 20.98 $ 20.76 $ 20.37 $ 20.11 Tangible book value $ 15.13 $ 15.04 $ 14.78 $ 14.36 $ 13.95 (1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security ga
Slide 16: Nonperforming Assets by quarter
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2014 ($ in thousands) (unaudited) Quarter Ended NONPERFORMING ASSETS (1) 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Nonaccrual loans Alabama $ 852 $ 852 $ 80 $ 96 $ 14 Florida 11,091 10,986 11,041 9,956 1
Slide 17: Capital ratios
Tier 1 leverage ratio 9.63% 9.54% 9.43% 9.14% 9.06% Tier 1 common risk-based capital ratio 12.75% 12.74% 12.61% 12.37% 12.21% Tier 1 risk-based capital ratio 13.47% 13.47% 13.34% 13.11% 12.97% Total risk-based capital ratio 14.56% 14.70% 14.54% 14.34% 14.18% (1) - Excludes Acquired Loans and Covered
Slide 18: Note 1 - Securities Available for Sale and Held to Maturity
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2014 ($ 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 s
Slide 19: Note 2 – Loan Composition
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2014 ($ in thousands) (unaudited) Note 2 – Loan Composition LHFI BY TYPE (excluding acquired loans) 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Loans secured by real estate: Construction, land development an
Slide 20: Note 2 – Loan Composition (continued)
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2014 ($ in thousands) (unaudited) Note 2 – Loan Composition (continued) December 31, 2014 Tennessee Mississippi (Memphis, (Central and TN and Southern Northern MS LHFI - COMPOSITION BY REGION (1) Total Alabama Flori
Slide 21: Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2014 ($ 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-bea
Slide 22: Note 5 – Other Noninterest Income and Expense
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2014 ($ 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 Year Ended 12/31/2014 9/3
Slide 23: Note 6 - Non-GAAP Financial Measures (continued)
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2014 ($ in thousands) (unaudited) Note 6 - Non-GAAP Financial Measures (continued) Quarter Ended Year Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 12/31/2014 12/31/2013 TANGIBLE EQUITY AVERAGE BALANCES
Slide 24: Trustmark Fourth Quarter & Fiscal Year 2014 Financial Results
ZL, Trustmark Fourth Quarter & Fiscal Year 2014 Banking and Financial Solutions Financial Results January 27, 2015 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: Fourth Quarter and Year in Review
Fourth Quarter and Year in Review A year of significant accomplishments; 2014 EPS of $1.83 — up 4.6% from prior year v v Solid growth in legacy loan portfolio in 2014: increased at an annualized rate of 7.2% from prior quarter and 11.2% from prior year Acquired loans performance: interest income on
Slide 27: Continued Growth in Loan Portfolio
Continued Growth in Loan Portfolio Solid growth in legacy loan portfolio in 2014 Y Loansheld for investment (“HFI”) increased by $115.8 million, or at an annualized rate of 7.2%, to $6.4 billion from the prior quarter; for the year, loans HFI increased by $650.6 million, or 11.2% Y Total loans (HFI
Slide 28: Acquired Loan Portfolio
Acquired Loan Portfolio Performance of acquired loans v Acquired loan yield in the fourth quarter Interest Income & Impairment— Acquired Loans totaled 9.38% and included recoveries from (Sin thousands) Qt13 Qld Q214 QM Qh settlement of debt of $2.0 million, which Acq. loan accretion/ int. $14,097 $1
Slide 29: Credit Risk Management
Credit Risk Management Continued resolution of problem assets and solid asset quality metrics Y Other real estate decreased 4.7% from the prior quarter and 13.2% from the prior year v Nonperforming loans totaled $79.3 million, an decrease of $9.0 million from the prior quarter and an increase of $14
Slide 30: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Well diversified deposit base serves as an excellent, low-cost source of funds v Average deposits in the fourth quarter declined $163.3 million, reflecting a $150.9 million decrease in average interest-bearing deposits and $12.4 million decline in average noninteres
Slide 31: Income Statement Highlights - Revenue
Income Statement Highlights —- Revenue Revenue expanded to $578.5 million in 2014, the highest level in Trustmark’s 125-year history Net Interest Income-—FTE ni galhons) $109 si10 $106 09 $33 $82 $86 $87 Q4-13 Qi-14 Q2-14 Q3-14 Q4-14 Net Interest Income (excl. Acq. Loans) iiNet Interest Income on Ac
Slide 32: Income Statement Highlights - Noninterest Expense
Income Statement Highlights — Noninterest Expense Routine noninterest expense remained well-controlled VY Continued realignment of branch network — consolidated two banking centers with limited growth opportunities in the fourth quarter; consolidated five banking centers and opened three new offices
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 8.62%, while the total risk-based capital ratio was 14.56% in the fourth quarter Y Solid capital base provides the opportunity t
Slide 34: Strategic Priorities to Enhance Shareholder Value
Strategic Priorities to Enhance Shareholder Value Y Profitable revenue generation Y Credit quality >» Create and expand customer relationships >» Maintain disciplined underwriting and pricing >» Loan growth >» Resolution of problem assets » Noninterest income — deposit services, wealth management, i