Trustmark Corporation · NASDAQ:TRMK
Trustmark — Sandler O'Neill + Partners East Coast Financial Services Conference 2010
27 slides from Trustmark's conference presentation, Nov 10, 2010
Slide 1: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill + Partners, L.P. East Coast Financial Services Conference November 11, 2010
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: Investment Thesis
Investment Thesis Investment Thesis Trustmark is uniquely positioned to capitalize on market opportunities ü Strong market share in legacy markets with growth potential in Houston and Memphis ü Robust capital position provides strategic flexibility ü Diversified and stable business mix ü Proven abil
Slide 4: Strong Market Share in Legacy Markets, Growth Opportunities in Houston and Memphis
Strong Market Share in Legacy Markets Growth Opportunities in Houston and Memphis Strong Market Share As of September 30, 2010 • Total Assets $9.4 billion • Total Loans HFI $6.0 billion • Total Deposits $7.0 billion • Market Cap $1.4 billion • Banking Centers 150 • Trustmark is an integrated provide
Slide 5: Robust Capital Position Provides Strategic Flexibility
Robust Capital Position Provides Strategic Flexibility Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Tangible Common Equity / Tangible Assets 7.76% 8.67% 9.11% 9.32% 9.34% Tier 1 Risk-Based Capital Ratio 14.11% 12.61% 13.15% 13.53% 13.75% Total Risk-Based Capital Ratio 16.09% 14.58% 15.15% 15.53% 15.75% Robust Capi
Slide 6: Robust Capital Position Relative to Peers
Robust Capital Position Relative to Peers Tangible Common Equity / Tangible Assets (2) ü 4Q09 common equity offering and TARP redemption optimized Trustmark’s capital position ü Given its earnings stability, Trustmark has increased its dividend over time and maintained it through the credit crisis ü
Slide 7: Diversified and Stable Business Mix
Diversified and Stable Business Mix 32% 2% 11% Jackson 27% FL Panhandle 2% Houston, TX 6% Memphis, TN 3% MS-Other 18% Diversified Revenue Base ($ in millions) 17% 14% 17% 18% 6% 5% 4% 18% Commercial - Retail Banking $297 For The Year Ended December 31, 2009
Slide 8: Core Earnings Strength
Core Earnings Strength … (1) TRMK 4Q09 net income available to common shareholders includes $8.2mm accelerated accretion of preferred discount due to redemption of $215mm of TARP preferred stock
Slide 9: Driven by Best in Class Net Interest Margin and Efficiency Ratio
... Driven by Best in Class Net Interest Margin and Efficiency Ratio Core Earnings Strength ü First class deposit franchise has enabled Trustmark to secure superior pricing, driving margin ü Management’s focus on expense initiatives has translated into a top tier operating platform 3Q-10 Net Interes
Slide 10: Balanced Loan Portfolio
Balanced Loan Portfolio 60% 2% 37% 46% 15% 19% Balanced Loan Portfolio Consumer Loans $1,972 Commercial Loans $4,027 3% 12% 25% 19% 8% 14% Total Loans Held for Investment $5,999 ($ in millions) September 30, 2010
Slide 11: Prudent Credit Risk Management, Stable Credit Quality
Prudent Credit Risk Management Stable Credit Quality Florida Mississippi (1) Tennessee (2) Texas Total Total Loans (including HFS) $464 $4,480 $546 $777 $6,267 Nonaccrual Loans $65.7 $49.0 $9.2 $35.4 $159.3 Other Real Estate $31.7 $24.5 $16.5 $12.1 $84.7 Nonperforming Assets $97.4 $73.5 $25.7 $47.4
Slide 12: Dependable Core Funding Base
Dependable Core Funding Base Dependable Core Funding Base 31% 24% September 30, 2010 ($ in millions) Total Deposits $7,025 Source: SNL Financial, Company reports 3Q10 Loans HFI / Deposits 25% 4% 15%
Slide 13: Strategic Priorities
Strategic Priorities Priorities in 2010 ü Continue to manage through challenging business cycle ü Resolve problem assets ü Maintain fortress balance sheet and appropriate capital ratios ü Prudent investments to support revenue growth ü Seek strategic opportunities to enhance long-term shareholder va
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Slide 15: Supplemental Information
Supplemental Information
Slide 16: Strategic Accomplishments
Strategic Accomplishments Managed Crisis In Financial Services Industry Sound Capital Management Completed Retail Banking Center Program Initiated In 2006 Technology Investments Strategic Accomplishments ü Reduced credit exposure to construction and land development lending and indirect auto financi
Slide 17: Jackson Market
Jackson Metro County 2010 Population 2010-15 Projected Population Growth Deposit Market Share ++ TRMK Banking Centers Hinds 250,044 -0.67% 40.58% 21 Rankin 146,177 9.82% 33.09% 11 Madison 97,343 11.41% 21.54% 8 TOTAL 493,564 4.82% 35.05% 40 Ø Trustmark has $2.0 billion in loans and $3.4 billion in d
Slide 18: Houston MSA Market
Houston MSA Market 2010 Population 2010-15 Projected Population Growth Deposit Market Share ++ TRMK Banking Centers Houston MSA 6,017,013 10.46% 0.37% 16 Ø Trustmark has $776 million in loans and $465 million in deposits + Ø Building stronger Commercial, Retail, and Wealth Management platforms + As
Slide 19: Memphis MSA Market
Memphis MSA Market 2010 Population 2010-15 Projected Population Growth Deposit Market Share ++ TRMK Banking Centers Memphis MSA 1,325,833 4.28% 2.83% 22 Ø Trustmark has $412 million in loans and $623 million in deposits + Ø Focus on middle market commercial and real estate lending Banking center + A
Slide 20: Florida Panhandle
Florida Panhandle County 2010 Population 2010-15 Projected Population Growth Deposit Market Share ++ TRMK Banking Centers Bay 170,196 2.72% 4.57% 4 Okaloosa 191,856 3.29% 1.32% 1 Walton 57,960 9.34% 7.67% 3 Total 420,012 3.89% 3.27% 8 Ø Trustmark has $464 million in loans and $217 million in deposit
Slide 21: Owner Occupied CRE
Owner Occupied CRE September 30, 2010 ($ in thousands) (1) Mississippi includes Central and Southern Mississippi regions. (2) Tennessee includes Memphis, Tennessee and Northern Mississippi regions.
Slide 22: Income Producing CRE
Income Producing CRE September 30, 2010 ($ in thousands)
Slide 23: Construction, Land Development and Other Land Loans
Construction, Land Development and Other Land Loans September 30, 2010 ($ in thousands) (1) Mississippi includes Central and Southern Mississippi regions. (2) Tennessee includes Memphis, Tennessee and Northern Mississippi regions.
Slide 24: Florida Loans
Florida Loans September 30, 2010 ($ in thousands) Construction, Land Development and Other Land Loans $146 Million Loan Type $464 Million
Slide 25: Florida Credit Quality
Florida Credit Quality September 30, 2010 ($ in thousands) 1) Criticized loans equal all special mention and classified loans. 2) Special mention loans exhibit potential credit weaknesses that, if not resolved, may ultimately result in a more severe classification. 3) Classified loans include those
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 lgreer@tru
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Trustmark — Sandler O'Neill + Partners East Coast Financial Services Conference 2010 on 6ix