TRUSTMARK CORPORATIO

TRMK
Real-time Estimate Quote. Real-time Estimate  - 05/27 12:11:26 pm
29.095USD +0.99%

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2021 Financial Results

01/25/2022 | 04:33pm

Solid Balance Sheet Growth, Record Results in Insurance and Wealth Management

Trustmark Corporation (NASDAQGS:TRMK) reported net income of $26.2 million in the fourth quarter of 2021, representing diluted earnings per share of $0.42. For the full year, Trustmark’s net income totaled $147.4 million, representing diluted earnings per share of $2.34. Trustmark’s net income in 2021 produced a return on average tangible equity of 10.81% and a return on average assets of 0.86%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2022, to shareholders of record on March 1, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220125005343/en/

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/52567902/en

2021 Highlights

  • Loans held for investment (HFI) increased $423.3 million, or 4.3%
  • Nonperforming assets declined 10.1% to represent 0.64% of loans HFI and held for sale (HFS)
  • Recoveries exceeded charge-offs by $3.7 million
  • Total deposits increased $1.0 billion, or 7.4%
  • Repurchased $61.8 million, or approximately 1.9 million shares of common stock
  • Insurance and Wealth Management businesses had a record year with revenue up 7.4% and 11.3%, respectively
  • Mortgage Banking revenue totaled $63.8 million with loan production exceeding $2.8 billion
  • Noninterest income totaled $221.9 million and represented 34.7% of total revenue
  • Completed voluntary early retirement program that reduced workforce by 3.6%
  • Expanded market optimization efforts with a net reduction of 10 offices during the year
  • Continued technology investments to enhance efficiency and productivity

Duane A. Dewey, President and CEO, commented, “Our banking and mortgage banking businesses performed well while our insurance and wealth management businesses achieved record results. We experienced significant loan and deposit growth, and credit quality remained strong. While we continue to navigate the challenging low interest rate environment, we remain committed to positioning the company for continued long-term success. Our balance sheet is well positioned for rising interest rates. We will continue investments in technology to improve efficiency and broaden our reach through digital marketing and product delivery. Trustmark is well-positioned to serve and expand its customer base and create long-term value for its shareholders.”

Balance Sheet Management

  • Loans HFI increased $72.9 million, or 0.7%, during the quarter
  • Investment securities increased $128.9 million, or 3.7%, as excess liquidity was deployed linked-quarter
  • Total deposits increased $164.3 million, or 1.1%, linked-quarter
  • Maintained strong capital position with CET1 ratio of 11.29% and total risk-based capital ratio of 13.55%

Loans HFI totaled $10.2 billion at December 31, 2021, reflecting an increase of $72.9 million, or 0.7%, linked-quarter and $423.3 million, or 4.3%, year-over-year. The linked-quarter growth primarily reflects increases in commercial and industrial loans, 1-4 family mortgage loans, other loans, and loans secured by nonfarm, nonresidential properties which were offset in part by a decline in other real estate secured loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.1 billion at December 31, 2021, up $164.3 million, or 1.1%, from the prior quarter and $1.0 billion, or 7.4%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 67.9% of total deposits at year end 2021. Noninterest bearing deposits represented 31.6% of total deposits at December 31, 2021. Interest-bearing deposit costs totaled 0.13% for the fourth quarter, a decrease of 1 basis point linked-quarter. The total cost of interest-bearing liabilities was 0.19% for the fourth quarter of 2021, a decrease of 2 basis points from the prior quarter.

During the fourth quarter, Trustmark repurchased $27.1 million, or approximately 816 thousand of its common shares. During the twelve months ended December 31, 2021, Trustmark repurchased $61.8 million, or approximately 1.9 million of its common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2022, under which $100 million of Trustmark’s outstanding shares may be acquired through December 31, 2022. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At December 31, 2021, Trustmark’s tangible equity to tangible assets ratio was 7.86%, while the total risk-based capital ratio was 13.55%.

Credit Quality

  • Allowance for credit losses (ACL) represented 0.97% of loans HFI and 500.85% of nonperforming loans, excluding individually evaluated loans at year-end
  • Net charge-offs totaled $101 thousand in the fourth quarter
  • Loans remaining under a COVID-19 related concession represented approximately 1 basis point of loans HFI at December 31, 2021

Nonaccrual loans totaled $62.7 million at December 31, 2021, a decrease of $3.5 million from the prior quarter and $430 thousand year-over-year. Other real estate totaled $4.6 million, reflecting a $1.7 million decrease from the prior quarter and a $7.1 million decline from the prior year. Collectively, nonperforming assets totaled $67.3 million, reflecting a linked-quarter decrease of 7.2% and year-over-year reduction of 10.1%.

The provision for credit losses for loans HFI was a negative $4.5 million in the fourth quarter. Negative provisioning was primarily due to improvements in credit quality and economic forecasts. The provision for credit losses for off-balance sheet credit exposures was $2.9 million in the fourth quarter, primarily driven by increases in unfunded amounts. Collectively, the provision for credit losses totaled a negative $1.6 million in the fourth quarter compared to a negative $3.5 million in the prior quarter and a negative $5.5 million in the fourth quarter of 2020.

Allocation of Trustmark’s $99.5 million ACL on loans HFI represented 1.00% of commercial loans and 0.87% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 0.97% at December 31, 2021. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

  • Excluding Paycheck Protection Program (PPP) interest and fees, net interest income (FTE) increased $1.2 million, or 1.2%, linked-quarter
  • The net interest margin (FTE) totaled 2.53% in fourth quarter; excluding interest and fees on PPP loans and Federal Reserve Bank balance, net interest margin (FTE) was 2.82%
  • Noninterest income totaled $50.8 million and represented 34.1% of total revenue in fourth quarter

Revenue in the fourth quarter totaled $149.1 million, a decrease of 2.2% from the prior quarter and 16.0% from the same quarter in the prior year. The linked-quarter decline primarily reflects lower mortgage banking revenue while the year-over-year decline is attributed to lower net interest income and reduced mortgage banking revenue. In 2021, revenue totaled $640.3 million, a decrease of 8.7% from the prior year.

Net interest income (FTE) in the fourth quarter totaled $101.2 million, resulting in a net interest margin of 2.53%. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, was 2.82%, down 8 basis points from the prior quarter, significantly influenced by the growth of the investment securities portfolio. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Noninterest income in the fourth quarter totaled $50.8 million, a decrease of $3.4 million from the prior quarter and $15.4 million from the prior year. The linked-quarter change reflects an increase in service charges on deposit accounts which was more than offset by a decline in mortgage banking revenue, a seasonal decline in insurance revenue, and a reduction in other income. The decrease in noninterest income year-over-year is principally due to lower mortgage banking revenue.

Mortgage loan production in the fourth quarter totaled $590.7 million, a decline of 16.7% linked-quarter and 25.1% year-over-year. Mortgage banking revenue totaled $11.6 million in the fourth quarter, a decrease of $2.4 million from the prior quarter and $16.5 million year-over-year. The linked-quarter decline is attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market offset in part by increased net hedge ineffectiveness. In 2021, mortgage loan production totaled $2.8 billion, down 6.1% from the record level set the prior year. Mortgage banking revenue totaled $63.8 million in 2021, compared to $125.8 million in the prior year.

Insurance revenue in the fourth quarter totaled $11.7 million, a seasonal decline of $417 thousand from the prior quarter and an increase of $1.5 million from the prior year. Insurance revenue in 2021 totaled $48.5 million, up $3.3 million, or 7.4%, from the prior year. The solid performance during the year reflects an expanded producer workforce as well as the realization of operational efficiencies from investments in technology and improved processes.

Wealth management revenue totaled $8.8 million in the fourth quarter, down 3.5% from the prior quarter and up 11.7% from the prior year. In 2021, wealth management revenue totaled $35.2 million, an increase of 11.3% from the prior year. During 2021, Trustmark continued to enhance its competitive positioning and efficiency of its wealth management businesses as well as expand its Private Banking capabilities in key markets.

Noninterest Expense

  • Adjusted noninterest expense, which excludes ORE expense, amortization of intangibles, charitable contributions resulting in state tax credits, costs associated with the voluntary early retirement program and regulatory charges increased $1.6 million, or 1.3%, from the prior quarter. Please refer to the Consolidated Financial Information, Footnote 10 – Non-GAAP Financial Measures.

Adjusted noninterest expense in the fourth quarter was $118.2 million, up $1.6 million, or 1.3%, from the prior quarter. Salaries and employee benefits expense in the fourth quarter totaled $68.3 million. Excluding the $5.6 million charge associated with the voluntary early retirement program in the third quarter, salary and employee benefits expense declined $754 thousand, or 1.1%, linked-quarter.

Total services and fees increased $598 thousand during the fourth quarter due to continued investments in technology and higher professional fees. Other real estate expense, net declined $1.0 million during the fourth quarter to $336 thousand. Other expense totaled $14.6 million in the fourth quarter. Excluding the $5.0 million regulatory settlement charge in the prior quarter, other expense increased $1.1 million linked-quarter principally due to increased operational losses.

During 2021, Trustmark consolidated 15 offices, expanded deployment of myTeller interactive teller machine technology, and opened five offices designed to efficiently serve and expand customer relationships.

“Looking forward, Trustmark will continue to focus upon efficiency, growth and innovation opportunities. We continue to pursue opportunities to redesign workflows and restructure the organization to further leverage investments in technology that will broaden our reach, enhance the customer experience, and improve efficiency. We remain focused on providing the financial services and advice our customers have come to expect while building long-term value for our shareholders,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 26, 2022, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 9, 2022, in archived format at the same web address or by calling (877) 344-7529, passcode 4362420.

Trustmark is a financial services company providing banking and financial solutions through 180 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

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,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

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 new information, future events or developments or otherwise.

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands)
(unaudited)
Linked Quarter Year over Year
QUARTERLY AVERAGE BALANCES 12/31/2021 9/30/2021 12/31/2020 $ Change % Change $ Change % Change
Securities AFS-taxable

$

3,156,740

 

$

2,686,765

 

$

1,902,162

 

$

469,975

 

17.5

%

$

1,254,578

 

66.0

%

Securities AFS-nontaxable

 

5,143

 

 

5,159

 

 

5,206

 

 

(16

)

-0.3

%

 

(63

)

-1.2

%

Securities HTM-taxable

 

364,038

 

 

401,685

 

 

550,563

 

 

(37,647

)

-9.4

%

 

(186,525

)

-33.9

%

Securities HTM-nontaxable

 

7,618

 

 

8,641

 

 

24,752

 

 

(1,023

)

-11.8

%

 

(17,134

)

-69.2

%

Total securities

 

3,533,539

 

 

3,102,250

 

 

2,482,683

 

 

431,289

 

13.9

%

 

1,050,856

 

42.3

%

Paycheck protection program loans (PPP)

 

42,749

 

 

122,176

 

 

875,098

 

 

(79,427

)

-65.0

%

 

(832,349

)

-95.1

%

Loans (includes loans held for sale)

 

10,487,679

 

 

10,389,826

 

 

10,231,671

 

 

97,853

 

0.9

%

 

256,008

 

2.5

%

Fed funds sold and reverse repurchases

 

58

 

 

69

 

 

303

 

 

(11

)

-15.9

%

 

(245

)

-80.9

%

Other earning assets

 

1,839,498

 

 

2,038,515

 

 

860,540

 

 

(199,017

)

-9.8

%

 

978,958

 

n/m

 

Total earning assets

 

15,903,523

 

 

15,652,836

 

 

14,450,295

 

 

250,687

 

1.6

%

 

1,453,228

 

10.1

%

Allowance for credit losses (ACL), loans held for investment (LHFI)

 

(104,148

)

 

(104,857

)

 

(124,088

)

 

709

 

0.7

%

 

19,940

 

16.1

%

Other assets

 

1,570,501

 

 

1,602,611

 

 

1,620,694

 

 

(32,110

)

-2.0

%

 

(50,193

)

-3.1

%

Total assets

$

17,369,876

 

$

17,150,590

 

$

15,946,901

 

$

219,286

 

1.3

%

$

1,422,975

 

8.9

%

 
Interest-bearing demand deposits

$

4,353,599

 

$

4,224,717

 

$

3,649,590

 

$

128,882

 

3.1

%

$

704,009

 

19.3

%

Savings deposits

 

4,585,624

 

 

4,617,683

 

 

4,350,783

 

 

(32,059

)

-0.7

%

 

234,841

 

5.4

%

Time deposits

 

1,220,083

 

 

1,258,829

 

 

1,436,677

 

 

(38,746

)

-3.1

%

 

(216,594

)

-15.1

%

Total interest-bearing deposits

 

10,159,306

 

 

10,101,229

 

 

9,437,050

 

 

58,077

 

0.6

%

 

722,256

 

7.7

%

Fed funds purchased and repurchases

 

201,856

 

 

147,635

 

 

170,474

 

 

54,221

 

36.7

%

 

31,382

 

18.4

%

Other borrowings

 

94,328

 

 

109,735

 

 

173,525

 

 

(15,407

)

-14.0

%

 

(79,197

)

-45.6

%

Subordinated notes

 

123,007

 

 

122,951

 

 

42,828

 

 

56

 

0.0

%

 

80,179

 

n/m

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

 

0.0

%

 

 

0.0

%

Total interest-bearing liabilities

 

10,640,353

 

 

10,543,406

 

 

9,885,733

 

 

96,947

 

0.9

%

 

754,620

 

7.6

%

Noninterest-bearing deposits

 

4,679,951

 

 

4,566,924

 

 

4,100,849

 

 

113,027

 

2.5

%

 

579,102

 

14.1

%

Other liabilities

 

291,449

 

 

257,956

 

 

235,284

 

 

33,493

 

13.0

%

 

56,165

 

23.9

%

Total liabilities

 

15,611,753

 

 

15,368,286

 

 

14,221,866

 

 

243,467

 

1.6

%

 

1,389,887

 

9.8

%

Shareholders' equity

 

1,758,123

 

 

1,782,304

 

 

1,725,035

 

 

(24,181

)

-1.4

%

 

33,088

 

1.9

%

Total liabilities and equity

$

17,369,876

 

$

17,150,590

 

$

15,946,901

 

$

219,286

 

1.3

%

$

1,422,975

 

8.9

%

 
 
n/m - percentage changes greater than +/- 100% are considered not meaningful
 
See Notes to Consolidated Financials
 
TRUSTMARK CORPORATION AND SUBSIDIARIES            
CONSOLIDATED FINANCIAL INFORMATION            
December 31, 2021            
($ in thousands)            
(unaudited)            
             
      Linked Quarter   Year over Year
PERIOD END BALANCES 12/31/2021   9/30/2021   12/31/2020   $ Change   % Change   $ Change   % Change
Cash and due from banks

$

2,266,829

 

 

$

2,175,058

 

 

$

1,952,504

 

 

$

91,771

 

 

4.2

%

 

$

314,325

 

 

16.1

%

Fed funds sold and reverse repurchases

 

 

 

 

 

 

 

50

 

 

 

 

 

n/m

 

 

 

(50

)

 

-100.0

%

Securities available for sale

 

3,238,877

 

 

 

3,057,605

 

 

 

1,991,815

 

 

 

181,272

 

 

5.9

%

 

 

1,247,062

 

 

62.6

%

Securities held to maturity

 

342,537

 

 

 

394,905

 

 

 

538,072

 

 

 

(52,368

)

 

-13.3

%

 

 

(195,535

)

 

-36.3

%

PPP loans

 

33,336

 

 

 

46,486

 

 

 

610,134

 

 

 

(13,150

)

 

-28.3

%

 

 

(576,798

)

 

-94.5

%

Loans held for sale (LHFS)

 

275,706

 

 

 

335,339

 

 

 

446,951

 

 

 

(59,633

)

 

-17.8

%

 

 

(171,245

)

 

-38.3

%

Loans held for investment (LHFI)

 

10,247,829

 

 

 

10,174,899

 

 

 

9,824,524

 

 

 

72,930

 

 

0.7

%

 

 

423,305

 

 

4.3

%

ACL LHFI

 

(99,457

)

 

 

(104,073

)

 

 

(117,306

)

 

 

4,616

 

 

4.4

%

 

 

17,849

 

 

15.2

%

Net LHFI

 

10,148,372

 

 

 

10,070,826

 

 

 

9,707,218

 

 

 

77,546

 

 

0.8

%

 

 

441,154

 

 

4.5

%

Premises and equipment, net

 

205,644

 

 

 

201,937

 

 

 

194,278

 

 

 

3,707

 

 

1.8

%

 

 

11,366

 

 

5.9

%

Mortgage servicing rights

 

87,687

 

 

 

84,101

 

 

 

66,464

 

 

 

3,586

 

 

4.3

%

 

 

21,223

 

 

31.9

%

Goodwill

 

384,237

 

 

 

384,237

 

 

 

385,270

 

 

 

 

 

0.0

%

 

 

(1,033

)

 

-0.3

%

Identifiable intangible assets

 

5,074

 

 

 

5,621

 

 

 

7,390

 

 

 

(547

)

 

-9.7

%

 

 

(2,316

)

 

-31.3

%

Other real estate

 

4,557

 

 

 

6,213

 

 

 

11,651

 

 

 

(1,656

)

 

-26.7

%

 

 

(7,094

)

 

-60.9

%

Operating lease right-of-use assets

 

34,603

 

 

 

34,689

 

 

 

30,901

 

 

 

(86

)

 

-0.2

%

 

 

3,702

 

 

12.0

%

Other assets

 

568,177

 

 

 

567,627

 

 

 

609,142

 

 

 

550

 

 

0.1

%

 

 

(40,965

)

 

-6.7

%

Total assets

$

17,595,636

 

 

$

17,364,644

 

 

$

16,551,840

 

 

$

230,992

 

 

1.3

%

 

$

1,043,796

 

 

6.3

%

             
Deposits:            
Noninterest-bearing

$

4,771,065

 

 

$

4,987,885

 

 

$

4,349,010

 

 

$

(216,820

)

 

-4.3

%

 

$

422,055

 

 

9.7

%

Interest-bearing

 

10,316,095

 

 

 

9,934,954

 

 

 

9,699,754

 

 

 

381,141

 

 

3.8

%

 

 

616,341

 

 

6.4

%

Total deposits

 

15,087,160

 

 

 

14,922,839

 

 

 

14,048,764

 

 

 

164,321

 

 

1.1

%

 

 

1,038,396

 

 

7.4

%

Fed funds purchased and repurchases

 

238,577

 

 

 

146,417

 

 

 

164,519

 

 

 

92,160

 

 

62.9

%

 

 

74,058

 

 

45.0

%

Other borrowings

 

91,025

 

 

 

94,889

 

 

 

168,252

 

 

 

(3,864

)

 

-4.1

%

 

 

(77,227

)

 

-45.9

%

Subordinated notes

 

123,042

 

 

 

122,987

 

 

 

122,921

 

 

 

55

 

 

0.0

%

 

 

121

 

 

0.1

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

0.0

%

 

 

 

 

0.0

%

ACL on off-balance sheet credit exposures

 

35,623

 

 

 

32,684

 

 

 

38,572

 

 

 

2,939

 

 

9.0

%

 

 

(2,949

)

 

-7.6

%

Operating lease liabilities

 

36,468

 

 

 

36,531

 

 

 

32,290

 

 

 

(63

)

 

-0.2

%

 

 

4,178

 

 

12.9

%

Other liabilities

 

180,574

 

 

 

177,494

 

 

 

173,549

 

 

 

3,080

 

 

1.7

%

 

 

7,025

 

 

4.0

%

Total liabilities

 

15,854,325

 

 

 

15,595,697

 

 

 

14,810,723

 

 

 

258,628

 

 

1.7

%

 

 

1,043,602

 

 

7.0

%

Common stock

 

12,845

 

 

 

13,014

 

 

 

13,215

 

 

 

(169

)

 

-1.3

%

 

 

(370

)

 

-2.8

%

Capital surplus

 

175,913

 

 

 

201,837

 

 

 

233,120

 

 

 

(25,924

)

 

-12.8

%

 

 

(57,207

)

 

-24.5

%

Retained earnings

 

1,585,113

 

 

 

1,573,176

 

 

 

1,495,833

 

 

 

11,937

 

 

0.8

%

 

 

89,280

 

 

6.0

%

Accumulated other comprehensive income (loss), net of tax

 

(32,560

)

 

 

(19,080

)

 

 

(1,051

)

 

 

(13,480

)

 

-70.6

%

 

 

(31,509

)

 

n/m

 

Total shareholders' equity

 

1,741,311

 

 

 

1,768,947

 

 

 

1,741,117

 

 

 

(27,636

)

 

-1.6

%

 

 

194

 

 

0.0

%

Total liabilities and equity

$

17,595,636

 

 

$

17,364,644

 

 

$

16,551,840

 

 

$

230,992

 

 

1.3

%

 

$

1,043,796

 

 

6.3

%

             
             
n/m - percentage changes greater than +/- 100% are considered not meaningful  
   
See Notes to Consolidated Financials  
   
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands except per share data)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
INCOME STATEMENTS 12/31/2021 9/30/2021 12/31/2020 $ Change % Change $ Change % Change
Interest and fees on LHFS & LHFI-FTE

$

94,137

 

$

94,101

 

$

96,453

 

$

36

 

0.0

%

$

(2,316

)

-2.4

%

Interest and fees on PPP loans

 

397

 

 

1,533

 

 

14,870

 

 

(1,136

)

-74.1

%

 

(14,473

)

-97.3

%

Interest on securities-taxable

 

10,796

 

 

9,973

 

 

9,998

 

 

823

 

8.3

%

 

798

 

8.0

%

Interest on securities-tax exempt-FTE

 

123

 

 

132

 

 

293

 

 

(9

)

-6.8

%

 

(170

)

-58.0

%

Interest on fed funds sold and reverse repurchases

 

 

 

 

 

 

 

 

n/m

 

 

 

n/m

 

Other interest income

 

826

 

 

949

 

 

249

 

 

(123

)

-13.0

%

 

577

 

n/m

 

Total interest income-FTE

 

106,279

 

 

106,688

 

 

121,863

 

 

(409

)

-0.4

%

 

(15,584

)

-12.8

%

Interest on deposits

 

3,401

 

 

3,691

 

 

6,363

 

 

(290

)

-7.9

%

 

(2,962

)

-46.6

%

Interest on fed funds purchased and repurchases

 

66

 

 

51

 

 

56

 

 

15

 

29.4

%

 

10

 

17.9

%

Other interest expense

 

1,580

 

 

1,733

 

 

1,127

 

 

(153

)

-8.8

%

 

453

 

40.2

%

Total interest expense

 

5,047

 

 

5,475

 

 

7,546

 

 

(428

)

-7.8

%

 

(2,499

)

-33.1

%

Net interest income-FTE

 

101,232

 

 

101,213

 

 

114,317

 

 

19

 

0.0

%

 

(13,085

)

-11.4

%

Provision for credit losses, LHFI

 

(4,515

)

 

(2,492

)

 

(4,413

)

 

(2,023

)

81.2

%

 

(102

)

-2.3

%

Provision for credit losses, off-balance sheet credit exposures (1)

 

2,939

 

 

(1,049

)

 

(1,087

)

 

3,988

 

n/m

 

 

4,026

 

n/m

 

Net interest income after provision-FTE

 

102,808

 

 

104,754

 

 

119,817

 

 

(1,946

)

-1.9

%

 

(17,009

)

-14.2

%

Service charges on deposit accounts

 

9,366

 

 

8,911

 

 

8,283

 

 

455

 

5.1

%

 

1,083

 

13.1

%

Bank card and other fees

 

8,340

 

 

8,549

 

 

9,107

 

 

(209

)

-2.4

%

 

(767

)

-8.4

%

Mortgage banking, net

 

11,609

 

 

14,004

 

 

28,155

 

 

(2,395

)

-17.1

%

 

(16,546

)

-58.8

%

Insurance commissions

 

11,716

 

 

12,133

 

 

10,196

 

 

(417

)

-3.4

%

 

1,520

 

14.9

%

Wealth management

 

8,757

 

 

9,071

 

 

7,838

 

 

(314

)

-3.5

%

 

919

 

11.7

%

Other, net

 

979

 

 

1,481

 

 

2,538

 

 

(502

)

-33.9

%

 

(1,559

)

-61.4

%

Total noninterest income

 

50,767

 

 

54,149

 

 

66,117

 

 

(3,382

)

-6.2

%

 

(15,350

)

-23.2

%

Salaries and employee benefits

 

68,258

 

 

74,623

 

 

69,660

 

 

(6,365

)

-8.5

%

 

(1,402

)

-2.0

%

Services and fees

 

22,904

 

 

22,306

 

 

22,327

 

 

598

 

2.7

%

 

577

 

2.6

%

Net occupancy-premises

 

6,816

 

 

6,854

 

 

6,616

 

 

(38

)

-0.6

%

 

200

 

3.0

%

Equipment expense

 

6,585

 

 

5,941

 

 

6,213

 

 

644

 

10.8

%

 

372

 

6.0

%

Other real estate expense, net

 

336

 

 

1,357

 

 

(812

)

 

(1,021

)

-75.2

%

 

1,148

 

n/m

 

Other expense

 

14,570

 

 

18,519

 

 

15,890

 

 

(3,949

)

-21.3

%

 

(1,320

)

-8.3

%

Total noninterest expense

 

119,469

 

 

129,600

 

 

119,894

 

 

(10,131

)

-7.8

%

 

(425

)

-0.4

%

Income before income taxes and tax eq adj

 

34,106

 

 

29,303

 

 

66,040

 

 

4,803

 

16.4

%

 

(31,934

)

-48.4

%

Tax equivalent adjustment

 

2,906

 

 

2,947

 

 

2,939

 

 

(41

)

-1.4

%

 

(33

)

-1.1

%

Income before income taxes

 

31,200

 

 

26,356

 

 

63,101

 

 

4,844

 

18.4

%

 

(31,901

)

-50.6

%

Income taxes

 

4,978

 

 

5,156

 

 

11,884

 

 

(178

)

-3.5

%

 

(6,906

)

-58.1

%

Net income

$

26,222

 

$

21,200

 

$

51,217

 

$

5,022

 

23.7

%

$

(24,995

)

-48.8

%

 
Per share data
Earnings per share - basic

$

0.42

 

$

0.34

 

$

0.81

 

$

0.08

 

23.5

%

$

(0.39

)

-48.1

%

 
Earnings per share - diluted

$

0.42

 

$

0.34

 

$

0.81

 

$

0.08

 

23.5

%

$

(0.39

)

-48.1

%

 
Dividends per share

$

0.23

 

$

0.23

 

$

0.23

 

 

 

0.0

%

 

 

0.0

%

 
Weighted average shares outstanding
Basic

 

62,037,884

 

 

62,521,684

 

 

63,424,219

 

 
Diluted

 

62,264,983

 

 

62,730,157

 

 

63,616,767

 

 
Period end shares outstanding

 

61,648,679

 

 

62,461,832

 

 

63,424,526

 

 
(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.
 
 
n/m - percentage changes greater than +/- 100% are considered not meaningful
 
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands)
(unaudited)
 
Quarter Ended Linked Quarter Year over Year
NONPERFORMING ASSETS (1) 12/31/2021 9/30/2021 12/31/2020 $ Change % Change $ Change % Change
Nonaccrual LHFI
Alabama

$

8,182

 

$

9,223

 

$

9,221

 

$

(1,041

)

-11.3

%

$

(1,039

)

-11.3

%

Florida

 

313

 

 

381

 

 

572

 

 

(68

)

-17.8

%

 

(259

)

-45.3

%

Mississippi (2)

 

21,636

 

 

22,898

 

 

35,015

 

 

(1,262

)

-5.5

%

 

(13,379

)

-38.2

%

Tennessee (3)

 

10,501

 

 

10,356

 

 

12,572

 

 

145

 

1.4

%

 

(2,071

)

-16.5

%

Texas

 

22,066

 

 

23,382

 

 

5,748

 

 

(1,316

)

-5.6

%

 

16,318

 

n/m

 

Total nonaccrual LHFI

 

62,698

 

 

66,240

 

 

63,128

 

 

(3,542

)

-5.3

%

 

(430

)

-0.7

%

Other real estate
Alabama

 

 

 

613

 

 

3,271

 

 

(613

)

-100.0

%

 

(3,271

)

-100.0

%

Florida

 

 

 

 

 

 

 

 

n/m

 

 

 

n/m

 

Mississippi (2)

 

4,557

 

 

5,600

 

 

8,330

 

 

(1,043

)

-18.6

%

 

(3,773

)

-45.3

%

Tennessee (3)

 

 

 

 

 

50

 

 

 

n/m

 

 

(50

)

-100.0

%

Texas

 

 

 

 

 

 

 

 

n/m

 

 

 

n/m

 

Total other real estate

 

4,557

 

 

6,213

 

 

11,651

 

 

(1,656

)

-26.7

%

 

(7,094

)

-60.9

%

Total nonperforming assets

$

67,255

 

$

72,453

 

$

74,779

 

$

(5,198

)

-7.2

%

$

(7,524

)

-10.1

%

 
LOANS PAST DUE OVER 90 DAYS (1)
LHFI

$

2,114

 

$

625

 

$

1,576

 

$

1,489

 

n/m

 

$

538

 

34.1

%

 
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)

$

69,894

 

$

75,091

 

$

119,409

 

$

(5,197

)

-6.9

%

$

(49,515

)

-41.5

%

 
Quarter Ended Linked Quarter Year over Year
ACL LHFI (1) 12/31/2021 9/30/2021 12/31/2020 $ Change % Change $ Change % Change
Beginning Balance

$

104,073

 

$

104,032

 

$

122,010

 

$

41

 

0.0

%

$

(17,937

)

-14.7

%

CECL adoption adjustments:
LHFI

 

 

 

 

 

 

 

 

n/m

 

 

 

n/m

 

Acquired loan transfers

 

 

 

 

 

 

 

 

n/m

 

 

 

n/m

 

Provision for credit losses, LHFI

 

(4,515

)

 

(2,492

)

 

(4,413

)

 

(2,023

)

-81.2

%

 

(102

)

-2.3

%

Charge-offs

 

(2,616

)

 

(1,586

)

 

(2,797

)

 

(1,030

)

-64.9

%

 

181

 

6.5

%

Recoveries

 

2,515

 

 

4,119

 

 

2,506

 

 

(1,604

)

-38.9

%

 

9

 

0.4

%

Net (charge-offs) recoveries

 

(101

)

 

2,533

 

 

(291

)

 

(2,634

)

n/m

 

 

190

 

-65.3

%

Ending Balance

$

99,457

 

$

104,073

 

$

117,306

 

$

(4,616

)

-4.4

%

$

(17,849

)

-15.2

%

 
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama

$

747

 

$

247

 

$

(1,011

)

$

500

 

n/m

 

$

1,758

 

n/m

 

Florida

 

(32

)

 

356

 

 

66

 

 

(388

)

n/m

 

 

(98

)

n/m

 

Mississippi (2)

 

(683

)

 

1,436

 

 

332

 

 

(2,119

)

n/m

 

 

(1,015

)

n/m

 

Tennessee (3)

 

(130

)

 

(8

)

 

303

 

 

(122

)

n/m

 

 

(433

)

n/m

 

Texas

 

(3

)

 

502

 

 

19

 

 

(505

)

n/m

 

 

(22

)

n/m

 

Total net (charge-offs) recoveries

$

(101

)

$

2,533

 

$

(291

)

$

(2,634

)

n/m

 

$

190

 

65.3

%

 
(1) Excludes PPP loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
 
n/m - percentage changes greater than +/- 100% are considered not meaningful
 
See Notes to Consolidated Financials
 
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands)
(unaudited)
Quarter Ended Year Ended
AVERAGE BALANCES 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020
Securities AFS-taxable

$

3,156,740

 

$

2,686,765

 

$

2,339,662

 

$

2,098,089

 

$

1,902,162

 

$

2,573,533

 

$

1,776,555

 

Securities AFS-nontaxable

 

5,143

 

 

5,159

 

 

5,174

 

 

5,190

 

 

5,206

 

 

5,166

 

 

10,737

 

Securities HTM-taxable

 

364,038

 

 

401,685

 

 

441,688

 

 

489,260

 

 

550,563

 

 

423,763

 

 

626,983

 

Securities HTM-nontaxable

 

7,618

 

 

8,641

 

 

10,958

 

 

24,070

 

 

24,752

 

 

12,765

 

 

25,366

 

Total securities

 

3,533,539

 

 

3,102,250

 

 

2,797,482

 

 

2,616,609

 

 

2,482,683

 

 

3,015,227

 

 

2,439,641

 

PPP loans

 

42,749

 

 

122,176

 

 

648,222

 

 

598,139

 

 

875,098

 

 

350,668

 

 

646,680

 

Loans (includes loans held for sale)

 

10,487,679

 

 

10,389,826

 

 

10,315,927

 

 

10,316,319

 

 

10,231,671

 

 

10,377,941

 

 

9,996,192

 

Fed funds sold and reverse repurchases

 

58

 

 

69

 

 

55

 

 

136

 

 

303

 

 

79

 

 

221

 

Other earning assets

 

1,839,498

 

 

2,038,515

 

 

1,750,385

 

 

1,667,906

 

 

860,540

 

 

1,825,134

 

 

657,096

 

Total earning assets

 

15,903,523

 

 

15,652,836

 

 

15,512,071

 

 

15,199,109

 

 

14,450,295

 

 

15,569,049

 

 

13,739,830

 

ACL LHFI

 

(104,148

)

 

(104,857

)

 

(112,346

)

 

(119,557

)

 

(124,088

)

 

(110,170

)

 

(108,567

)

Other assets

 

1,570,501

 

 

1,602,611

 

 

1,622,388

 

 

1,601,250

 

 

1,620,694

 

 

1,599,114

 

 

1,592,393

 

Total assets

$

17,369,876

 

$

17,150,590

 

$

17,022,113

 

$

16,680,802

 

$

15,946,901

 

$

17,057,993

 

$

15,223,656

 

 
Interest-bearing demand deposits

$

4,353,599

 

$

4,224,717

 

$

4,056,910

 

$

3,743,651

 

$

3,649,590

 

$

4,096,746

 

$

3,584,249

 

Savings deposits

 

4,585,624

 

 

4,617,683

 

 

4,627,180

 

 

4,659,037

 

 

4,350,783

 

 

4,622,167

 

 

4,149,860

 

Time deposits

 

1,220,083

 

 

1,258,829

 

 

1,301,896

 

 

1,371,830

 

 

1,436,677

 

 

1,287,663

 

 

1,534,673

 

Total interest-bearing deposits

 

10,159,306

 

 

10,101,229

 

 

9,985,986

 

 

9,774,518

 

 

9,437,050

 

 

10,006,576

 

 

9,268,782

 

Fed funds purchased and repurchases

 

201,856

 

 

147,635

 

 

174,620

 

 

166,909

 

 

170,474

 

 

172,782

 

 

151,805

 

Other borrowings

 

94,328

 

 

109,735

 

 

132,199

 

 

166,926

 

 

173,525

 

 

125,554

 

 

133,602

 

Subordinated notes

 

123,007

 

 

122,951

 

 

122,897

 

 

122,875

 

 

42,828

 

 

122,933

 

 

10,766

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

Total interest-bearing liabilities

 

10,640,353

 

 

10,543,406

 

 

10,477,558

 

 

10,293,084

 

 

9,885,733

 

 

10,489,701

 

 

9,626,811

 

Noninterest-bearing deposits

 

4,679,951

 

 

4,566,924

 

 

4,512,268

 

 

4,363,559

 

 

4,100,849

 

 

4,531,642

 

 

3,646,860

 

Other liabilities

 

291,449

 

 

257,956

 

 

251,582

 

 

264,808

 

 

235,284

 

 

266,499

 

 

268,398

 

Total liabilities

 

15,611,753

 

 

15,368,286

 

 

15,241,408

 

 

14,921,451

 

 

14,221,866

 

 

15,287,842

 

 

13,542,069

 

Shareholders' equity

 

1,758,123

 

 

1,782,304

 

 

1,780,705

 

 

1,759,351

 

 

1,725,035

 

 

1,770,151

 

 

1,681,587

 

Total liabilities and equity

$

17,369,876

 

$

17,150,590

 

$

17,022,113

 

$

16,680,802

 

$

15,946,901

 

$

17,057,993

 

$

15,223,656

 

 
See Notes to Consolidated Financials
 
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands)
(unaudited)
 
PERIOD END BALANCES 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Cash and due from banks

$

2,266,829

 

$

2,175,058

 

$

2,267,224

 

$

1,774,541

 

$

1,952,504

 

Fed funds sold and reverse repurchases

 

 

 

 

 

 

 

 

 

50

 

Securities available for sale

 

3,238,877

 

 

3,057,605

 

 

2,548,739

 

 

2,337,676

 

 

1,991,815

 

Securities held to maturity

 

342,537

 

 

394,905

 

 

433,012

 

 

493,738

 

 

538,072

 

PPP loans

 

33,336

 

 

46,486

 

 

166,119

 

 

679,725

 

 

610,134

 

LHFS

 

275,706

 

 

335,339

 

 

332,132

 

 

412,999

 

 

446,951

 

LHFI

 

10,247,829

 

 

10,174,899

 

 

10,152,869

 

 

9,983,704

 

 

9,824,524

 

ACL LHFI

 

(99,457

)

 

(104,073

)

 

(104,032

)

 

(109,191

)

 

(117,306

)

Net LHFI

 

10,148,372

 

 

10,070,826

 

 

10,048,837

 

 

9,874,513

 

 

9,707,218

 

Premises and equipment, net

 

205,644

 

 

201,937

 

 

200,970

 

 

199,098

 

 

194,278

 

Mortgage servicing rights

 

87,687

 

 

84,101

 

 

80,764

 

 

83,035

 

 

66,464

 

Goodwill

 

384,237

 

 

384,237

 

 

384,237

 

 

384,237

 

 

385,270

 

Identifiable intangible assets

 

5,074

 

 

5,621

 

 

6,170

 

 

6,724

 

 

7,390

 

Other real estate

 

4,557

 

 

6,213

 

 

9,439

 

 

10,651

 

 

11,651

 

Operating lease right-of-use assets

 

34,603

 

 

34,689

 

 

33,201

 

 

33,704

 

 

30,901

 

Other assets

 

568,177

 

 

567,627

 

 

587,288

 

 

587,672

 

 

609,142

 

Total assets

$

17,595,636

 

$

17,364,644

 

$

17,098,132

 

$

16,878,313

 

$

16,551,840

 

 
Deposits:
Noninterest-bearing

$

4,771,065

 

$

4,987,885

 

$

4,446,991

 

$

4,705,991

 

$

4,349,010

 

Interest-bearing

 

10,316,095

 

 

9,934,954

 

 

10,185,093

 

 

9,677,449

 

 

9,699,754

 

Total deposits

 

15,087,160

 

 

14,922,839

 

 

14,632,084

 

 

14,383,440

 

 

14,048,764

 

Fed funds purchased and repurchases

 

238,577

 

 

146,417

 

 

157,176

 

 

160,991

 

 

164,519

 

Other borrowings

 

91,025

 

 

94,889

 

 

117,223

 

 

145,994

 

 

168,252

 

Subordinated notes

 

123,042

 

 

122,987

 

 

122,932

 

 

122,877

 

 

122,921

 

Junior subordinated debt securities

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

 

61,856

 

ACL on off-balance sheet credit exposures

 

35,623

 

 

32,684

 

 

33,733

 

 

29,205

 

 

38,572

 

Operating lease liabilities

 

36,468

 

 

36,531

 

 

34,959

 

 

35,389

 

 

32,290

 

Other liabilities

 

180,574

 

 

177,494

 

 

158,860

 

 

178,856

 

 

173,549

 

Total liabilities

 

15,854,325

 

 

15,595,697

 

 

15,318,823

 

 

15,118,608

 

 

14,810,723

 

Common stock

 

12,845

 

 

13,014

 

 

13,079

 

 

13,209

 

 

13,215

 

Capital surplus

 

175,913

 

 

201,837

 

 

210,420

 

 

229,892

 

 

233,120

 

Retained earnings

 

1,585,113

 

 

1,573,176

 

 

1,566,451

 

 

1,533,110

 

 

1,495,833

 

Accumulated other comprehensive income (loss), net of tax

 

(32,560

)

 

(19,080

)

 

(10,641

)

 

(16,506

)

 

(1,051

)

Total shareholders' equity

 

1,741,311

 

 

1,768,947

 

 

1,779,309

 

 

1,759,705

 

 

1,741,117

 

Total liabilities and equity

$

17,595,636

 

$

17,364,644

 

$

17,098,132

 

$

16,878,313

 

$

16,551,840

 

 
See Notes to Consolidated Financials
 
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands except per share data)
(unaudited)
 
 
 
Quarter Ended Year Ended
INCOME STATEMENTS 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020
Interest and fees on LHFS & LHFI-FTE

$

94,137

 

$

94,101

 

$

93,698

 

$

93,394

 

$

96,453

 

$

375,330

 

$

402,539

Interest and fees on PPP loans

 

397

 

 

1,533

 

 

25,555

 

 

9,241

 

 

14,870

 

 

36,726

 

 

26,643

Interest on securities-taxable

 

10,796

 

 

9,973

 

 

8,991

 

 

8,938

 

 

9,998

 

 

38,698

 

 

48,250

Interest on securities-tax exempt-FTE

 

123

 

 

132

 

 

149

 

 

290

 

 

293

 

 

694

 

 

1,366

Interest on fed funds sold and reverse repurchases

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Other interest income

 

826

 

 

949

 

 

489

 

 

503

 

 

249

 

 

2,767

 

 

1,559

Total interest income-FTE

 

106,279

 

 

106,688

 

 

128,882

 

 

112,366

 

 

121,863

 

 

454,215

 

 

480,358

Interest on deposits

 

3,401

 

 

3,691

 

 

4,630

 

 

5,223

 

 

6,363

 

 

16,945

 

 

37,487

Interest on fed funds purchased and repurchases

 

66

 

 

51

 

 

59

 

 

56

 

 

56

 

 

232

 

 

755

Other interest expense

 

1,580

 

 

1,733

 

 

1,813

 

 

1,857

 

 

1,127

 

 

6,983

 

 

3,556

Total interest expense

 

5,047

 

 

5,475

 

 

6,502

 

 

7,136

 

 

7,546

 

 

24,160

 

 

41,798

Net interest income-FTE

 

101,232

 

 

101,213

 

 

122,380

 

 

105,230

 

 

114,317

 

 

430,055

 

 

438,560

Provision for credit losses, LHFI

 

(4,515

)

 

(2,492

)

 

(3,991

)

 

(10,501

)

 

(4,413

)

 

(21,499

)

 

36,113

Provision for credit losses, off-balance sheet credit exposures (1)

 

2,939

 

 

(1,049

)

 

4,528

 

 

(9,367

)

 

(1,087

)

 

(2,949

)

 

8,934

Net interest income after provision-FTE

 

102,808

 

 

104,754

 

 

121,843

 

 

125,098

 

 

119,817

 

 

454,503

 

 

393,513

Service charges on deposit accounts

 

9,366

 

 

8,911

 

 

7,613

 

 

7,356

 

 

8,283

 

 

33,246

 

 

32,289

Bank card and other fees

 

8,340

 

 

8,549

 

 

8,301

 

 

9,472

 

 

9,107

 

 

34,662

 

 

31,022

Mortgage banking, net

 

11,609

 

 

14,004

 

 

17,333

 

 

20,804

 

 

28,155

 

 

63,750

 

 

125,822

Insurance commissions

 

11,716

 

 

12,133

 

 

12,217

 

 

12,445

 

 

10,196

 

 

48,511

 

 

45,176

Wealth management

 

8,757

 

 

9,071

 

 

8,946

 

 

8,416

 

 

7,838

 

 

35,190

 

 

31,625

Other, net

 

979

 

 

1,481

 

 

2,001

 

 

2,090

 

 

2,538

 

 

6,551

 

 

8,659

Total noninterest income

 

50,767

 

 

54,149

 

 

56,411

 

 

60,583

 

 

66,117

 

 

221,910

 

 

274,593

Salaries and employee benefits

 

68,258

 

 

74,623

 

 

70,115

 

 

71,162

 

 

69,660

 

 

284,158

 

 

272,257

Services and fees

 

22,904

 

 

22,306

 

 

21,769

 

 

22,484

 

 

22,327

 

 

89,463

 

 

83,816

Net occupancy-premises

 

6,816

 

 

6,854

 

 

6,578

 

 

6,795

 

 

6,616

 

 

27,043

 

 

26,489

Equipment expense

 

6,585

 

 

5,941

 

 

5,567

 

 

6,244

 

 

6,213

 

 

24,337

 

 

23,277

Other real estate expense, net

 

336

 

 

1,357

 

 

1,511

 

 

324

 

 

(812

)

 

3,528

 

 

1,956

Other expense

 

14,570

 

 

18,519

 

 

13,139

 

 

14,539

 

 

15,890

 

 

60,767

 

 

58,506

Total noninterest expense

 

119,469

 

 

129,600

 

 

118,679

 

 

121,548

 

 

119,894

 

 

489,296

 

 

466,301

Income before income taxes and tax eq adj

 

34,106

 

 

29,303

 

 

59,575

 

 

64,133

 

 

66,040

 

 

187,117

 

 

201,805

Tax equivalent adjustment

 

2,906

 

 

2,947

 

 

2,957

 

 

2,894

 

 

2,939

 

 

11,704

 

 

12,023

Income before income taxes

 

31,200

 

 

26,356

 

 

56,618

 

 

61,239

 

 

63,101

 

 

175,413

 

 

189,782

Income taxes

 

4,978

 

 

5,156

 

 

8,637

 

 

9,277

 

 

11,884

 

 

28,048

 

 

29,757

Net income

$

26,222

 

$

21,200

 

$

47,981

 

$

51,962

 

$

51,217

 

$

147,365

 

$

160,025

 
Per share data
Earnings per share - basic

$

0.42

 

$

0.34

 

$

0.76

 

$

0.82

 

$

0.81

 

$

2.35

 

$

2.52

 
Earnings per share - diluted

$

0.42

 

$

0.34

 

$

0.76

 

$

0.82

 

$

0.81

 

$

2.34

 

$

2.51

 
Dividends per share

$

0.23

 

$

0.23

 

$

0.23

 

$

0.23

 

$

0.23

 

$

0.92

 

$

0.92

 
Weighted average shares outstanding
Basic

 

62,037,884

 

 

62,521,684

 

 

63,214,593

 

 

63,395,911

 

 

63,424,219

 

 

62,788,055

 

 

63,504,516

 
Diluted

 

62,264,983

 

 

62,730,157

 

 

63,409,683

 

 

63,562,503

 

 

63,616,767

 

 

62,973,464

 

 

63,645,599

 
Period end shares outstanding

 

61,648,679

 

 

62,461,832

 

 

62,773,226

 

 

63,394,522

 

 

63,424,526

 

 

61,648,679

 

 

63,424,526

 
(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.
 
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
($ in thousands)
(unaudited)
 
 
Quarter Ended
NONPERFORMING ASSETS (1) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Nonaccrual LHFI
Alabama

$

8,182

 

$

9,223

 

$

8,952

 

$

9,161

 

$

9,221

 

Florida

 

313

 

 

381

 

 

467

 

 

607

 

 

572

 

Mississippi (2)

 

21,636

 

 

22,898

 

 

23,422

 

 

35,534

 

 

35,015

 

Tennessee (3)

 

10,501

 

 

10,356

 

 

10,751

 

 

12,451

 

 

12,572

 

Texas

 

22,066

 

 

23,382

 

 

7,856

 

 

5,761

 

 

5,748

 

Total nonaccrual LHFI

 

62,698

 

 

66,240

 

 

51,448

 

 

63,514

 

 

63,128

 

Other real estate
Alabama

 

 

 

613

 

 

2,830

 

 

3,085

 

 

3,271

 

Florida

 

 

 

 

 

 

 

 

 

 

Mississippi (2)

 

4,557

 

 

5,600

 

 

6,550

 

 

7,566

 

 

8,330

 

Tennessee (3)

 

 

 

 

 

59

 

 

 

 

50

 

Texas

 

 

 

 

 

 

 

 

 

 

Total other real estate

 

4,557

 

 

6,213

 

 

9,439

 

 

10,651

 

 

11,651

 

Total nonperforming assets

$

67,255

 

$

72,453

 

$

60,887

 

$

74,165

 

$

74,779

 

 
LOANS PAST DUE OVER 90 DAYS (1)
LHFI

$

2,114

 

$

625

 

$

423

 

$

2,593

 

$

1,576

 

 
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)

$

69,894

 

$

75,091

 

$

81,538

 

$

109,566

 

$

119,409

 

 
 
Quarter Ended Year Ended
ACL LHFI (1) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020
Beginning Balance

$

104,073

 

$

104,032

 

$

109,191

 

$

117,306

 

$

122,010

 

$

117,306

 

$

84,277

 

CECL adoption adjustments:
LHFI

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,039

)

Acquired loan transfers

 

 

 

 

 

 

 

 

 

 

 

 

 

1,822

 

Provision for credit losses, LHFI

 

(4,515

)

 

(2,492

)

 

(3,991

)

 

(10,501

)

 

(4,413

)

 

(21,499

)

 

36,113

 

Charge-offs

 

(2,616

)

 

(1,586

)

 

(4,828

)

 

(1,245

)

 

(2,797

)

 

(10,275

)

 

(11,475

)

Recoveries

 

2,515

 

 

4,119

 

 

3,660

 

 

3,631

 

 

2,506

 

 

13,925

 

 

9,608

 

Net (charge-offs) recoveries

 

(101

)

 

2,533

 

 

(1,168

)

 

2,386

 

 

(291

)

 

3,650

 

 

(1,867

)

Ending Balance

$

99,457

 

$

104,073

 

$

104,032

 

$

109,191

 

$

117,306

 

$

99,457

 

$

117,306

 

 
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama

$

747

 

$

247

 

$

203

 

$

102

 

$

(1,011

)

$

1,299

 

$

(1,448

)

Florida

 

(32

)

 

356

 

 

167

 

 

30

 

 

66

 

 

521

 

 

390

 

Mississippi (2)

 

(683

)

 

1,436

 

 

(3,071

)

 

2,207

 

 

332

 

 

(111

)

 

814

 

Tennessee (3)

 

(130

)

 

(8

)

 

1,031

 

 

47

 

 

303

 

 

940

 

 

(1,775

)

Texas

 

(3

)

 

502

 

 

502

 

 

 

 

19

 

 

1,001

 

 

152

 

Total net (charge-offs) recoveries

$

(101

)

$

2,533

 

$

(1,168

)

$

2,386

 

$

(291

)

$

3,650

 

$

(1,867

)

 
(1) Excludes PPP loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
 
See Notes to Consolidated Financials  
 
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2021
(unaudited)
 
Quarter Ended Year Ended
FINANCIAL RATIOS AND OTHER DATA 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020
Return on average equity

 

5.92

%

 

4.72

%

 

10.81

%

 

11.98

%

 

11.81

%

8.32

%

9.52

%

Return on average tangible equity

 

7.72

%

 

6.16

%

 

13.96

%

 

15.56

%

 

15.47

%

10.81

%

12.58

%

Return on average assets

 

0.60

%

 

0.49

%

 

1.13

%

 

1.26

%

 

1.28

%

0.86

%

1.05

%

Interest margin - Yield - FTE

 

2.65

%

 

2.70

%

 

3.33

%

 

3.00

%

 

3.35

%

2.92

%

3.50

%

Interest margin - Cost

 

0.13

%

 

0.14

%

 

0.17

%

 

0.19

%

 

0.21

%

0.16

%

0.30

%

Net interest margin - FTE

 

2.53

%

 

2.57

%

 

3.16

%

 

2.81

%

 

3.15

%

2.76

%

3.19

%

Efficiency ratio (1)

 

76.52

%

 

74.10

%

 

64.31

%

 

71.84

%

 

65.59

%

71.41

%

63.35

%

Full-time equivalent employees

 

2,692

 

 

2,680

 

 

2,772

 

 

2,793

 

 

2,797

 

 
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans

 

0.00

%

 

-0.10

%

 

0.05

%

 

-0.09

%

 

0.01

%

-0.04

%

0.02

%

Provision for credit losses, LHFI / average loans

 

-0.17

%

 

-0.10

%

 

-0.16

%

 

-0.41

%

 

-0.17

%

-0.21

%

0.36

%

Nonaccrual LHFI / (LHFI + LHFS)

 

0.60

%

 

0.63

%

 

0.49

%

 

0.61

%

 

0.61

%

Nonperforming assets / (LHFI + LHFS)

 

0.64

%

 

0.69

%

 

0.58

%

 

0.71

%

 

0.73

%

Nonperforming assets / (LHFI + LHFS + other real estate)

 

0.64

%

 

0.69

%

 

0.58

%

 

0.71

%

 

0.73

%

ACL LHFI / LHFI

 

0.97

%

 

1.02

%

 

1.02

%

 

1.09

%

 

1.19

%

ACL LHFI-commercial / commercial LHFI

 

1.00

%

 

1.05

%

 

1.04

%

 

1.13

%

 

1.20

%

ACL LHFI-consumer / consumer and home mortgage LHFI

 

0.87

%

 

0.91

%

 

0.98

%

 

0.95

%

 

1.16

%

ACL LHFI / nonaccrual LHFI

 

158.63

%

 

157.11

%

 

202.21

%

 

171.92

%

 

185.82

%

ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)

 

500.85

%

 

520.77

%

 

537.35

%

 

437.08

%

 

572.69

%

 
CAPITAL RATIOS
Total equity / total assets

 

9.90

%

 

10.19

%

 

10.41

%

 

10.43

%

 

10.52

%

Tangible equity / tangible assets

 

7.86

%

 

8.12

%

 

8.31

%

 

8.30

%

 

8.34

%

Tangible equity / risk-weighted assets

 

10.71

%

 

11.19

%

 

11.33

%

 

11.23

%

 

11.22

%

Tier 1 leverage ratio

 

8.73

%

 

8.92

%

 

9.00

%

 

9.11

%

 

9.33

%

Common equity tier 1 capital ratio

 

11.29

%

 

11.68

%

 

11.76

%

 

11.71

%

 

11.62

%

Tier 1 risk-based capital ratio

 

11.77

%

 

12.17

%

 

12.25

%

 

12.20

%

 

12.11

%

Total risk-based capital ratio