Slide 1: First Quarter 2020 Financial Results
First 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 remaining open with drive-thru service, and lobby access by appointment ATM and ITM network remain accessible
Slide 4: Q1-20 Financial Highlights
Q1-20 Financial Highlights Maintained position of strength and stability LHFI (excl. acquired loan reclassification) increased $159.7 million, or 1.7%, from the prior quarter and $500.3 million, or 5.6%, Y-o-Y Pre-tax, pre-provision (PTPP) income totaled $56.6 million, up 31.1% LQ and 40.4% Y-o-Y Co
Slide 5: Loans Held for Investment (LHFI) Portfolio
Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Source: Company reports (1) During the first quarter of 2020, Trustmark reclassified $72.6 million of acquired loans to loans held for investment with the adoption of FASB ASC Topic 326. Reflects
Slide 6: 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 7: 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 12% Small energy book and has never been an area of focused growth Virtually no regulatory define
Slide 8: Loan Portfolio Detail: COVID-19 Impacted Industries
Loan Portfolio Detail COVID-19 Impacted Industries at March 31, 2020 Restaurants $116 million Outstanding 1.21% of Portfolio Outstandings Hotels $366 million Outstanding 3.83% of Portfolio Outstandings Retail (CRE) $505 million Outstanding 5.28% of Portfolio Outstandings Energy $132 million Outstand
Slide 9: Loan Customer Assistance Programs
Loan Customer Assistance Programs Loan Concessions Provided As a Result of COVID-19 April 23, 2020 (1) Commercial concessions are primarily either interest only for 90 days or full payment deferrals for 90 days. (2) Consumer concessions are 90-day full payment deferrals. Paycheck Protection Program
Slide 10: Credit Risk Management
Credit Risk Management Solid asset quality metrics Adopted current expected credit loss (CECL) methodology for estimating credit losses effective January 1, 2020 Nonperforming loans decreased 0.4% and 6.1% from the prior quarter and year-over-year, respectively Other real estate declined 15.0% from
Slide 11: Drivers of Change Under CECL
Drivers of Change Under CECL Allowance for Credit Losses- Loans and Leases and Off-Balance Sheet Credit Exposures ALLL 12/31/19 Day 1 Adjustment Portfolio Changes Economic Factors ACL 03/31/20(1) CECL Day 1 transition adjustment Includes ACL for loans and leases and off-balance sheet credit exposure
Slide 12: Attractive, Low-Cost Deposit Base
Attractive, Low-Cost Deposit Base Deposits totaled $11.6 billion at March 31, 2020, up $330.2 million, or 2.9%, from the prior quarter and up $40.9 million, or 0.4%, year-over-year Cost of interest bearing deposits in the first quarter totaled 0.71%, down 14 basis points from the prior quarter Sourc
Slide 13: Income Statement Highlights – Net Interest Income
Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $107.1 million in the first quarter, resulting in a net interest margin of 3.52%. Net interest income (FTE) decreased $1.7 million relative to the prior quarter, as a $4.3 million reduction in interest income more th
Slide 14: Income Statement Highlights – Noninterest Income
Income Statement Highlights – Noninterest Income Source: Company reports Noninterest income totaled $65.3 million, up 37.2% linked-quarter and up 57.3% year-over-year Mortgage loan production in the first quarter totaled $457.2 million, a decline of 8.3% from the prior quarter and a 61.3% increase y
Slide 15: Income Statement Highlights – Noninterest Expense
Income Statement Highlights – Noninterest Expense Source: Company reports (1) Totals may not foot due to rounding Core Expenses – increased modestly in the first quarter, up 2.5% from the prior quarter Salaries and employee benefits – excluding a one-time charge related to the early retirement progr
Slide 16: Capital Management
Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses During the first quarter, Trustmark repurchased approximately $27.5 million, or 887 thousand shares of its outstanding common stock. Trustmark suspended its share repurchase progr
Slide 17: 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