Trustmark Corporation Announces Second Quarter 2024 Financial Results

7/23/24 4:30:00 PM ET

Major Banks

Finance

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Completed Significant Actions to Increase Earnings, Enhance Profitability Profile, Reduce Risk, and Strengthen Capital Flexibility

Trustmark Corporation (NASDAQ:TRMK) announced second quarter financial results which reflect the previously disclosed sale of Fisher Brown Bottrell Insurance, Inc. (FBBI). As such, second quarter financial results consist of both continuing operations and discontinued operations. The discontinued operations include the financial results of FBBI prior to the sale as well as the gain on sale in the second quarter. The discontinued operations results are presented as a single line item below income from continuing operations in the accompanying tables for all periods presented. Financial results from adjusted continuing operations exclude significant non-routine transactions⁽¹⁾. Trustmark reported net income of $73.8 million in the second quarter of 2024, representing diluted earnings per share of $1.20 and net income from adjusted continuing operations⁽¹⁾ of $40.5 million, or $0.66 per diluted share.

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The Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2024, to shareholders of record on September 1, 2024.

Significant Non-Routine Transactions in the Second Quarter

Completed sale of FBBI, producing a gain on sale of $228.3 million ($171.2 million, net of taxes)
Restructured investment securities portfolio; sold available for sale securities of $1.6 billion with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes); purchased $1.4 billion of available for sale securities with an average yield of 4.85%
Sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at time of selection totaling $56.2 million (Mortgage Loan Sale) which generated a loss of $13.4 million ($10.1 million, net of taxes); sale drove a $54.1 million reduction in nonperforming loans
Exchanged Visa Class B-1 shares for Visa Class B-2 shares and Visa Class C common stock; Visa Class C stock exchange resulted in a gain of $8.1 million ($6.0 million, net of taxes)

Second Quarter Highlights

Loans held for investment (HFI) increased $97.5 million, or 0.7%, from the prior quarter to $13.2 billion; excluding the Mortgage Loan Sale, loans HFI increased $152.4 million, or 1.2%, linked-quarter
Deposits expanded $124.3 million, or 0.8%, linked-quarter to $15.5 billion
Net interest income (FTE) increased $8.1 million, or 6.0%, linked-quarter to $144.3 million, resulting in a net interest margin of 3.38%, up 17 basis points from the prior quarter
Noninterest expense totaled $118.3 million, down $1.3 million, or 1.1%, linked-quarter
Tangible equity to tangible assets ratio increased 105 basis points to 8.52% at June 30, 2024
Tangible book value per share increased $3.20, or 14.5%, to $25.23 at June 30, 2024

Duane A. Dewey, President and CEO, stated, "The second quarter of 2024 was an extremely productive quarter for Trustmark. We closed the previously announced sale of our insurance agency and completed significant balance sheet restructuring to position the company for improved operating performance into the second half of the year and beyond. While completing these non-recurring events, we also performed well in our core banking franchise with continued loan growth, deposit growth, solid fee income and disciplined expense management. The commitment and dedication of our associates across the organization to successfully meet our clients' financial needs and execute the one-time projects are outstanding, and we believe the company is very well positioned for future opportunities."

Balance Sheet Management

Loans HFI totaled $13.2 billion, up 0.7% from the prior quarter and 4.3% year-over-year
Deposits totaled $15.5 billion, up 0.8% from the previous quarter and 3.7% year-over-year
Enhanced strong capital position with CET1 ratio of 10.92% and total risk-based capital ratio of 13.29%

Loans HFI totaled $13.2 billion at June 30, 2024, reflecting an increase of $97.5 million, or 0.7%, linked-quarter and $541.5 million, or 4.3%, year-over-year. The linked quarter growth reflected increases in construction, development and other land loans, loans secured by nonfarm, nonresidential properties, and other loans and leases offset in part by declines in commercial and industrial loans, other real estate secured loans, and 1-4 family mortgage loans. Trustmark's loan portfolio continues to be well-diversified by loan type and geography.

Deposits totaled $15.5 billion at June 30, 2024, up $124.3 million, or 0.8%, from the prior quarter and $549.0 million, or 3.7%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 85.1% of total deposits at June 30, 2024. Noninterest-bearing deposits represented 20.4% of total deposits at June 30, 2024, compared to 19.8% at March 31, 2024. The cost of interest-bearing deposits increased 1 basis point to 2.75% for the second quarter, while the cost of total deposits was 2.18%, unchanged from the prior quarter. The total cost of interest-bearing liabilities was 2.95% for the second quarter, up 3 basis points linked-quarter.

During the second quarter, Trustmark did not repurchase any of its outstanding common shares. As previously announced, Trustmark's Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark's outstanding shares may be acquired through December 31, 2024. As of June 30, 2024, Trustmark had not repurchased any of its outstanding common shares under this program. At June 30, 2024, Trustmark's tangible equity to tangible assets ratio was 8.52%, up 105 basis points from the prior quarter, while the total risk-based capital ratio was 13.29%, up 87 basis points from the prior quarter. Tangible book value per share was $25.23 at June 30, 2024, an increase of 14.5% from the prior quarter and 24.7% from the prior year.

Credit Quality

Nonaccrual loans declined 55.0% linked-quarter to $44.3 million, driven by the Mortgage Loan Sale
Net charge-offs totaled $11.6 million for the second quarter; excluding the Mortgage Loan Sale, net charge-offs totaled $3.0 million and represented 0.09% of average loans
Allowance for credit losses (ACL) represented 1.18% of loans HFI and 840.20% of nonaccrual loans HFI, excluding individually analyzed loans, at June 30, 2024

Nonaccrual loans totaled $44.3 million at June 30, 2024, down $54.1 million from the prior quarter and $30.7 million year-over-year. Other real estate totaled $6.6 million, reflecting a decrease of $1.0 million from the prior quarter and an increase of $5.4 million from the prior year. Collectively, nonperforming assets totaled $50.9 million at June 30, 2024, down $55.1 million, or 52.0%, from the prior quarter and $25.3 million, or 33.2%, from the prior year.

The total provision for credit losses for loans HFI was $23.3 million in the second quarter. Excluding the Mortgage Loan Sale, the provision for credit losses for loans HFI was $14.7 million and was primarily attributable to credit migration. The provision for credit losses for off-balance sheet credit exposures was a negative $3.6 million, primarily driven by decreases in unfunded commitments. Collectively, the provision for credit losses, excluding the Mortgage Loan Sale, totaled $11.1 million in the second quarter compared to $7.5 million from the prior quarter and $8.5 million in the second quarter of 2023.

Allocation of Trustmark's $154.7 million ACL on loans HFI represented 1.05% of commercial loans and 1.59% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.18% at June 30, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

Net interest income (FTE) totaled $144.3 million in the second quarter, up 6.0% linked-quarter
GAAP noninterest income was negative $141.3 million in the second quarter while noninterest income from adjusted continuing operations⁽¹⁾ totaled $38.2 million and represented 21.3% of total revenue from adjusted continuing operations⁽¹⁾
GAAP revenue was negative $0.3 million in the second quarter while revenue from adjusted continuing operations⁽¹⁾ totaled $179.3 million, up $7.1 million, or 4.1%, linked-quarter

Revenue from adjusted continuing operations⁽¹⁾ in the second quarter totaled $179.3 million, an increase of $7.1 million, or 4.1%, from the prior quarter and $1.5 million, or 0.9%, from the same quarter in the prior year. The linked-quarter increase primarily reflects higher net interest income and solid growth in bank card and other fees and wealth management revenue.

Net interest income (FTE) in the second quarter totaled $144.3 million, resulting in a net interest margin of 3.38%, up 17 basis points from the prior quarter. The increase in the net interest margin was primarily due to increased yields on the securities portfolio and the loans HFI and held for sale portfolio as well as the costs of interest-bearing deposits remaining relatively flat.

Noninterest income from adjusted continuing operations⁽¹⁾ in the second quarter totaled $38.2 million, a decrease of $1.1 million, or 2.8%, from the prior quarter and an increase of $0.4 million, or 1.1%, year-over-year. Bank card and other fees totaled $9.2 million in the second quarter, up $1.8 million, or 24.2%, linked-quarter and $0.3 million, or 3.5%, year-over-year. The linked-quarter increase reflects expanded customer derivative revenue, interchange revenue, and miscellaneous other revenue. Service charges on deposit accounts totaled $10.9 million in the second quarter, relatively unchanged from the prior quarter and up $0.2 million, or 2.1%, year-over-year. Other, net totaled $7.5 million, up $4.4 million linked-quarter as the $8.1 million gain from Visa C exchange was offset in part by the $4.8 million in noncredit-related loss from the Mortgage Loan Sale. Other, net from adjusted continuing operations⁽¹⁾totaled $4.2 million, an increase of $1.1 million, or 35.5%, from the prior quarter.

Mortgage loan production in the second quarter totaled $379.5 million, an increase of 38.5% from the prior quarter and a decrease of 12.0% year-over-year. Mortgage banking revenue totaled $4.2 million in the second quarter, a decrease of $4.7 million linked-quarter and $2.4 million year-over-year. The linked-quarter decrease was principally attributable to increased net negative hedge ineffectiveness, which was driven by a higher assumed discount rate on servicing cash flows.

Wealth management revenue in the second quarter totaled $9.7 million, an increase of $0.7 million, or 8.3%, from the prior quarter and $0.8 million, or 9.1%, year-over-year. The linked-quarter growth reflected increased investment services and trust management revenue while the year-over-year increase reflected expanded brokerage revenue.

Noninterest Expense

Noninterest expense declined $1.3 million, or 1.1%, linked-quarter
Salary and employee benefit expense declined $0.6 million, or 1.0%, linked-quarter

Noninterest expense in the second quarter totaled $118.3 million, a decrease of $1.3 million, or 1.1%, when compared to the prior quarter. Salaries and employee benefits expense decreased $0.6 million, or 1.0%, linked-quarter principally due to reduced compensation expense and the seasonal decline in payroll taxes, which were partially offset by increased commission expense. Other expense declined $0.9 million, or 5.6%, linked-quarter.

⁽¹⁾ Please refer to Consolidated Financial Information, Note 1 – Significant Non-Routine Transactions and Note 7 – Non-GAAP Financial Measures.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 24, 2024, 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, August 7, 2024, in archived format at the same web address or by calling (877) 344-7529, passcode 4456612.

Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, 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.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international 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, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, 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 impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain 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, 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, 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
June 30, 2024
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2024			3/31/2024			6/30/2023			$ Change			% Change		$ Change			% Change
Securities AFS-taxable	$	1,866,227		$	1,927,619		$	2,140,505		$	(61,392	)	-3.2	%	$	(274,278	)	-12.8	%
Securities AFS-nontaxable		—			—			4,796			—		n/m			(4,796	)	-100.0	%
Securities HTM-taxable		1,421,246			1,418,476			1,463,086			2,770		0.2	%		(41,840	)	-2.9	%
Securities HTM-nontaxable		112			340			1,718			(228	)	-67.1	%		(1,606	)	-93.5	%
Total securities		3,287,585			3,346,435			3,610,105			(58,850	)	-1.8	%		(322,520	)	-8.9	%
Loans (includes loans held for sale)		13,309,127			13,169,805			12,732,057			139,322		1.1	%		577,070		4.5	%
Fed funds sold and reverse repurchases		110			114			3,275			(4	)	-3.5	%		(3,165	)	-96.6	%
Other earning assets		592,625			571,215			903,027			21,410		3.7	%		(310,402	)	-34.4	%
Total earning assets		17,189,447			17,087,569			17,248,464			101,878		0.6	%		(59,017	)	-0.3	%
Allowance for credit losses (ACL), loans held
for investment (LHFI)		(143,245	)		(138,711	)		(121,960	)		(4,534	)	-3.3	%		(21,285	)	-17.5	%
Other assets		1,740,307			1,730,521			1,648,583			9,786		0.6	%		91,724		5.6	%
Total assets	$	18,786,509		$	18,679,379		$	18,775,087		$	107,130		0.6	%	$	11,422		0.1	%

Interest-bearing demand deposits	$	5,222,369		$	5,291,779		$	4,803,737		$	(69,410	)	-1.3	%	$	418,632		8.7	%
Savings deposits		3,653,966			3,686,027			4,002,134			(32,061	)	-0.9	%		(348,168	)	-8.7	%
Time deposits		3,346,046			3,321,601			2,335,752			24,445		0.7	%		1,010,294		43.3	%
Total interest-bearing deposits		12,222,381			12,299,407			11,141,623			(77,026	)	-0.6	%		1,080,758		9.7	%
Fed funds purchased and repurchases		434,760			428,127			389,834			6,633		1.5	%		44,926		11.5	%
Other borrowings		534,350			463,459			1,330,010			70,891		15.3	%		(795,660	)	-59.8	%
Subordinated notes		123,556			123,501			123,337			55		0.0	%		219		0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—		0.0	%		—		0.0	%
Total interest-bearing liabilities		13,376,903			13,376,350			13,046,660			553		0.0	%		330,243		2.5	%
Noninterest-bearing deposits		3,183,524			3,120,566			3,595,927			62,958		2.0	%		(412,403	)	-11.5	%
Other liabilities		498,593			505,942			552,209			(7,349	)	-1.5	%		(53,616	)	-9.7	%
Total liabilities		17,059,020			17,002,858			17,194,796			56,162		0.3	%		(135,776	)	-0.8	%
Shareholders' equity		1,727,489			1,676,521			1,580,291			50,968		3.0	%		147,198		9.3	%
Total liabilities and equity	$	18,786,509		$	18,679,379		$	18,775,087		$	107,130		0.6	%	$	11,422		0.1	%

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2024
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
PERIOD END BALANCES	6/30/2024			3/31/2024			6/30/2023			$ Change			% Change		$ Change			% Change
Cash and due from banks	$	822,141		$	606,061		$	831,852		$	216,080		35.7	%	$	(9,711	)	-1.2	%
Securities available for sale		1,621,659			1,702,299			1,871,883			(80,640	)	-4.7	%		(250,224	)	-13.4	%
Securities held to maturity		1,380,487			1,415,025			1,458,665			(34,538	)	-2.4	%		(78,178	)	-5.4	%
Loans held for sale (LHFS)		185,698			172,937			181,094			12,761		7.4	%		4,604		2.5	%
Loans held for investment (LHFI)		13,155,418			13,057,943			12,613,967			97,475		0.7	%		541,451		4.3	%
ACL LHFI		(154,685	)		(142,998	)		(129,298	)		(11,687	)	-8.2	%		(25,387	)	-19.6	%
Net LHFI		13,000,733			12,914,945			12,484,669			85,788		0.7	%		516,064		4.1	%
Premises and equipment, net		232,681			232,630			227,293			51		0.0	%		5,388		2.4	%
Mortgage servicing rights		136,658			138,044			134,350			(1,386	)	-1.0	%		2,308		1.7	%
Goodwill		334,605			334,605			334,605			—		0.0	%		—		0.0	%
Identifiable intangible assets		181			208			303			(27	)	-13.0	%		(122	)	-40.3	%
Other real estate		6,586			7,620			1,137			(1,034	)	-13.6	%		5,449		n/m
Operating lease right-of-use assets		36,925			34,324			35,561			2,601		7.6	%		1,364		3.8	%
Other assets		694,133			744,821			783,457			(50,688	)	-6.8	%		(89,324	)	-11.4	%
Assets of discontinued operations		—			73,093			77,757			(73,093	)	-100.0	%		(77,757	)	-100.0	%
Total assets	$	18,452,487		$	18,376,612		$	18,422,626		$	75,875		0.4	%	$	29,861		0.2	%

Deposits:
Noninterest-bearing	$	3,153,506		$	3,039,652		$	3,461,073		$	113,854		3.7	%	$	(307,567	)	-8.9	%
Interest-bearing		12,309,382			12,298,905			11,452,827			10,477		0.1	%		856,555		7.5	%
Total deposits		15,462,888			15,338,557			14,913,900			124,331		0.8	%		548,988		3.7	%
Fed funds purchased and repurchases		314,121			393,215			311,179			(79,094	)	-20.1	%		2,942		0.9	%
Other borrowings		336,687			482,027			1,056,714			(145,340	)	-30.2	%		(720,027	)	-68.1	%
Subordinated notes		123,592			123,537			123,372			55		0.0	%		220		0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—		0.0	%		—		0.0	%
ACL on off-balance sheet credit exposures		30,265			33,865			34,841			(3,600	)	-10.6	%		(4,576	)	-13.1	%
Operating lease liabilities		40,517			37,792			38,172			2,725		7.2	%		2,345		6.1	%
Other liabilities		203,420			207,583			299,481			(4,163	)	-2.0	%		(96,061	)	-32.1	%
Liabilities of discontinued operations		—			15,581			11,918			(15,581	)	-100.0	%		(11,918	)	-100.0	%
Total liabilities		16,573,346			16,694,013			16,851,433			(120,667	)	-0.7	%		(278,087	)	-1.7	%
Common stock		12,753			12,747			12,724			6		0.0	%		29		0.2	%
Capital surplus		161,834			160,521			156,834			1,313		0.8	%		5,000		3.2	%
Retained earnings		1,796,111			1,736,485			1,667,339			59,626		3.4	%		128,772		7.7	%
Accumulated other comprehensive
income (loss), net of tax		(91,557	)		(227,154	)		(265,704	)		135,597		59.7	%		174,147		65.5	%
Total shareholders' equity		1,879,141			1,682,599			1,571,193			196,542		11.7	%		307,948		19.6	%
Total liabilities and equity	$	18,452,487		$	18,376,612		$	18,422,626		$	75,875		0.4	%	$	29,861		0.2	%

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2024
($ in thousands except per share amounts)
(unaudited)
	Quarter Ended								Linked Quarter					Year over Year
INCOME STATEMENTS	6/30/2024			3/31/2024			6/30/2023		$ Change			% Change		$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	216,399		$	209,456		$	192,941	$	6,943		3.3	%	$	23,458		12.2	%
Interest on securities-taxable		17,929			15,634			16,779		2,295		14.7	%		1,150		6.9	%
Interest on securities-tax exempt-FTE		1			4			69		(3	)	-75.0	%		(68	)	-98.6	%
Interest on fed funds sold and reverse repurchases		2			1			45		1		100.0	%		(43	)	-95.6	%
Other interest income		8,124			8,110			12,077		14		0.2	%		(3,953	)	-32.7	%
Total interest income-FTE		242,455			233,205			221,911		9,250		4.0	%		20,544		9.3	%
Interest on deposits		83,681			83,716			54,409		(35	)	0.0	%		29,272		53.8	%
Interest on fed funds purchased and repurchases		5,663			5,591			4,865		72		1.3	%		798		16.4	%
Other interest expense		8,778			7,703			19,350		1,075		14.0	%		(10,572	)	-54.6	%
Total interest expense		98,122			97,010			78,624		1,112		1.1	%		19,498		24.8	%
Net interest income-FTE		144,333			136,195			143,287		8,138		6.0	%		1,046		0.7	%
Provision for credit losses (PCL), LHFI		14,696			7,708			8,211		6,988		90.7	%		6,485		79.0	%
PCL, off-balance sheet credit exposures		(3,600	)		(192	)		245		(3,408	)	n/m			(3,845	)	n/m
PCL, LHFI sale of 1-4 family mortgage loans		8,633			—			—		8,633		n/m			8,633		n/m
Net interest income after provision-FTE		124,604			128,679			134,831		(4,075	)	3.2	%		(10,227	)	-7.6	%
Service charges on deposit accounts		10,924			10,958			10,695		(34	)	-0.3	%		229		2.1	%
Bank card and other fees		9,225			7,428			8,917		1,797		24.2	%		308		3.5	%
Mortgage banking, net		4,204			8,915			6,600		(4,711	)	-52.8	%		(2,396	)	-36.3	%
Wealth management		9,692			8,952			8,882		740		8.3	%		810		9.1	%
Other, net		7,461			3,102			2,735		4,359		n/m			4,726		n/m
Securities gains (losses), net		(182,792	)		—			—		(182,792	)	n/m			(182,792	)	n/m
Total noninterest income (loss)		(141,286	)		39,355			37,829		(180,641	)	n/m			(179,115	)	n/m
Salaries and employee benefits		64,838			65,487			66,799		(649	)	-1.0	%		(1,961	)	-2.9	%
Services and fees		24,743			24,431			27,821		312		1.3	%		(3,078	)	-11.1	%
Net occupancy-premises		7,265			7,270			6,897		(5	)	-0.1	%		368		5.3	%
Equipment expense		6,241			6,325			6,337		(84	)	-1.3	%		(96	)	-1.5	%
Other expense		15,239			16,151			13,767		(912	)	-5.6	%		1,472		10.7	%
Total noninterest expense		118,326			119,664			121,621		(1,338	)	-1.1	%		(3,295	)	-2.7	%
Income (loss) from continuing operations before
income taxes and tax eq adj		(135,008	)		48,370			51,039		(183,378	)	n/m			(186,047	)	n/m
Tax equivalent adjustment		3,304			3,365			3,383		(61	)	-1.8	%		(79	)	-2.3	%
Income (loss) from continuing operations before
income taxes		(138,312	)		45,005			47,656		(183,317	)	n/m			(185,968	)	n/m
Income taxes from continuing operations		(37,707	)		6,832			6,452		(44,539	)	n/m			(44,159	)	n/m
Income (loss) from continuing operations		(100,605	)		38,173			41,204		(138,778	)	n/m			(141,809	)	n/m
Income from discontinued operations
(discont. ops) before income taxes		232,640			4,512			5,127		228,128		n/m			227,513		n/m
Income taxes from discont. ops		58,203			1,150			1,294		57,053		n/m			56,909		n/m
Income from discont. ops		174,437			3,362			3,833		171,075		n/m			170,604		n/m
Net income	$	73,832		$	41,535		$	45,037	$	32,297		77.8	%	$	28,795		63.9	%

Per share data (1)
Basic earnings (loss) per share from
continuing operations	$	(1.64	)	$	0.62		$	0.67	$	(2.26	)	n/m		$	(2.31	)	n/m
Basic earnings per share from discont. ops	$	2.85		$	0.05		$	0.06	$	2.80		n/m		$	2.79		n/m
Basic earnings per share - total	$	1.21		$	0.68		$	0.74	$	0.53		77.9	%	$	0.47		63.5	%

Diluted earnings (loss) per share from
continuing operations	$	(1.64	)	$	0.62		$	0.67	$	(2.26	)	n/m		$	(2.31	)	n/m
Diluted earnings per share from discont. ops	$	2.84		$	0.05		$	0.06	$	2.79		n/m		$	2.78		n/m
Diluted earnings per share - total	$	1.20		$	0.68		$	0.74	$	0.52		76.5	%	$	0.46		62.2	%

Dividends per share	$	0.23		$	0.23		$	0.23		—		0.0	%		—		0.0	%

Weighted average shares outstanding
Basic		61,196,820			61,128,425			61,063,277
Diluted		61,415,957			61,348,364			61,230,031
Period end shares outstanding		61,205,969			61,178,366			61,069,036

(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2024
($ in thousands)
(unaudited)

	Quarter Ended									Linked Quarter					Year over Year
NONPERFORMING ASSETS	6/30/2024			3/31/2024			6/30/2023			$ Change			% Change		$ Change			% Change
Nonaccrual LHFI
Alabama (1)	$	26,222		$	23,261		$	11,058		$	2,961		12.7	%	$	15,164		n/m
Florida		614			585			334			29		5.0	%		280		83.8	%
Mississippi (2)		14,773			59,059			36,288			(44,286	)	-75.0	%		(21,515	)	-59.3	%
Tennessee (3)		2,084			1,800			5,088			284		15.8	%		(3,004	)	-59.0	%
Texas		599			13,646			22,259			(13,047	)	-95.6	%		(21,660	)	-97.3	%
Total nonaccrual LHFI		44,292			98,351			75,027			(54,059	)	-55.0	%		(30,735	)	-41.0	%
Other real estate
Alabama (1)		485			1,050			—			(565	)	-53.8	%		485		n/m
Florida		—			71			—			(71	)	-100.0	%		—		n/m
Mississippi (2)		1,787			2,870			1,137			(1,083	)	-37.7	%		650		57.2	%
Tennessee (3)		86			86			—			—		0.0	%		86		n/m
Texas		4,228			3,543			—			685		19.3	%		4,228		n/m
Total other real estate		6,586			7,620			1,137			(1,034	)	-13.6	%		5,449		n/m
Total nonperforming assets	$	50,878		$	105,971		$	76,164		$	(55,093	)	-52.0	%	$	(25,286	)	-33.2	%

LOANS PAST DUE OVER 90 DAYS
LHFI	$	5,413		$	5,243		$	3,911		$	170		3.2	%	$	1,502		38.4	%

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	58,079		$	56,530		$	35,766		$	1,549		2.7	%	$	22,313		62.4	%

	Quarter Ended									Linked Quarter					Year over Year
*ACL LHFI*	6/30/2024			3/31/2024			6/30/2023			$ Change			% Change		$ Change			% Change
Beginning Balance	$	142,998		$	139,367		$	122,239		$	3,631		2.6	%	$	20,759		17.0	%
PCL, LHFI		14,696			7,708			8,211			6,988		90.7	%		6,485		79.0	%
PCL, LHFI sale of 1-4 family mortgage loans		8,633			—			—			8,633		n/m			8,633		n/m
Charge-offs, sale of 1-4 family mortgage loans		(8,633	)		—			—			(8,633	)	n/m			(8,633	)	n/m
Charge-offs		(5,120	)		(6,324	)		(2,773	)		1,204		19.0	%		(2,347	)	84.6	%
Recoveries		2,111			2,247			1,621			(136	)	-6.1	%		490		30.2	%
Net (charge-offs) recoveries		(11,642	)		(4,077	)		(1,152	)		(7,565	)	n/m			(10,490	)	n/m
Ending Balance	$	154,685		$	142,998		$	129,298		$	11,687		8.2	%	$	25,387		19.6	%

*NET (CHARGE-OFFS) RECOVERIES*
Alabama (1)	$	59		$	(341	)	$	(141	)	$	400		n/m		$	200		n/m
Florida		4			277			(35	)		(273	)	-98.6	%		39		n/m
Mississippi (2)		(9,112	)		(1,489	)		(762	)		(7,623	)	n/m			(8,350	)	n/m
Tennessee (3)		(122	)		(179	)		(166	)		57		31.8	%		44		26.5	%
Texas		(2,471	)		(2,345	)		(48	)		(126	)	-5.4	%		(2,423	)	n/m
Total net (charge-offs) recoveries	$	(11,642	)	$	(4,077	)	$	(1,152	)	$	(7,565	)	n/m		$	(10,490	)	n/m

(1) Alabama includes the Georgia Loan Production Office.
(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
June 30, 2024
($ in thousands)
(unaudited)
	Quarter Ended															Six Months Ended
AVERAGE BALANCES	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023			6/30/2024			6/30/2023
Securities AFS-taxable	$	1,866,227		$	1,927,619		$	1,986,825		$	2,049,006		$	2,140,505		$	1,896,923		$	2,163,684
Securities AFS-nontaxable		—			—			4,246			4,779			4,796			—			4,804
Securities HTM-taxable		1,421,246			1,418,476			1,430,169			1,445,895			1,463,086			1,419,861			1,471,140
Securities HTM-nontaxable		112			340			340			907			1,718			226			3,106
Total securities		3,287,585			3,346,435			3,421,580			3,500,587			3,610,105			3,317,010			3,642,734
Loans (includes loans held for sale)		13,309,127			13,169,805			13,010,028			12,926,942			12,732,057			13,239,466			12,631,810
Fed funds sold and reverse repurchases		110			114			121			230			3,275			112			2,829
Other earning assets		592,625			571,215			670,477			682,644			903,027			581,920			780,657
Total earning assets		17,189,447			17,087,569			17,102,206			17,110,403			17,248,464			17,138,508			17,058,030
ACL LHFI		(143,245	)		(138,711	)		(133,742	)		(127,915	)		(121,960	)		(140,978	)		(120,974	)
Other assets		1,740,307			1,730,521			1,749,069			1,721,310			1,648,583			1,735,414			1,700,643
Total assets	$	18,786,509		$	18,679,379		$	18,717,533		$	18,703,798		$	18,775,087		$	18,732,944		$	18,637,699

Interest-bearing demand deposits	$	5,222,369		$	5,291,779		$	5,053,935		$	4,875,714		$	4,803,737		$	5,257,074		$	4,777,591
Savings deposits		3,653,966			3,686,027			3,526,600			3,642,158			4,002,134			3,669,997			4,097,420
Time deposits		3,346,046			3,321,601			3,427,384			3,075,224			2,335,752			3,333,824			2,122,784
Total interest-bearing deposits		12,222,381			12,299,407			12,007,919			11,593,096			11,141,623			12,260,895			10,997,795
Fed funds purchased and repurchases		434,760			428,127			403,041			414,696			389,834			431,444			413,055
Other borrowings		534,350			463,459			590,765			912,151			1,330,010			498,905			1,221,032
Subordinated notes		123,556			123,501			123,446			123,391			123,337			123,529			123,309
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		13,376,903			13,376,350			13,187,027			13,105,190			13,046,660			13,376,629			12,817,047
Noninterest-bearing deposits		3,183,524			3,120,566			3,296,351			3,429,815			3,595,927			3,152,045			3,703,987
Other liabilities		498,593			505,942			641,662			585,908			552,209			502,265			564,450
Total liabilities		17,059,020			17,002,858			17,125,040			17,120,913			17,194,796			17,030,939			17,085,484
Shareholders' equity		1,727,489			1,676,521			1,592,493			1,582,885			1,580,291			1,702,005			1,552,215
Total liabilities and equity	$	18,786,509		$	18,679,379		$	18,717,533		$	18,703,798		$	18,775,087		$	18,732,944		$	18,637,699

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2024
($ in thousands)
(unaudited)


PERIOD END BALANCES	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
Cash and due from banks	$	822,141		$	606,061		$	975,343		$	750,292		$	831,852
Securities available for sale		1,621,659			1,702,299			1,762,878			1,766,174			1,871,883
Securities held to maturity		1,380,487			1,415,025			1,426,279			1,438,287			1,458,665
LHFS		185,698			172,937			184,812			169,244			181,094
LHFI		13,155,418			13,057,943			12,950,524			12,810,259			12,613,967
ACL LHFI		(154,685	)		(142,998	)		(139,367	)		(134,031	)		(129,298	)
Net LHFI		13,000,733			12,914,945			12,811,157			12,676,228			12,484,669
Premises and equipment, net		232,681			232,630			232,229			230,402			227,293
Mortgage servicing rights		136,658			138,044			131,870			142,379			134,350
Goodwill		334,605			334,605			334,605			334,605			334,605
Identifiable intangible assets		181			208			236			269			303
Other real estate		6,586			7,620			6,867			5,485			1,137
Operating lease right-of-use assets		36,925			34,324			35,711			37,115			35,561
Other assets		694,133			744,821			752,568			770,684			783,457
Assets of discontinued operations		—			73,093			67,634			69,675			77,757
Total assets	$	18,452,487		$	18,376,612		$	18,722,189		$	18,390,839		$	18,422,626

Deposits:
Noninterest-bearing	$	3,153,506		$	3,039,652		$	3,197,620		$	3,320,124		$	3,461,073
Interest-bearing		12,309,382			12,298,905			12,372,143			11,781,799			11,452,827
Total deposits		15,462,888			15,338,557			15,569,763			15,101,923			14,913,900
Fed funds purchased and repurchases		314,121			393,215			405,745			321,799			311,179
Other borrowings		336,687			482,027			483,230			793,193			1,056,714
Subordinated notes		123,592			123,537			123,482			123,427			123,372
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures		30,265			33,865			34,057			34,945			34,841
Operating lease liabilities		40,517			37,792			39,097			40,150			38,172
Other liabilities		203,420			207,583			331,085			331,066			299,481
Liabilities of discontinued operations		—			15,581			12,027			12,129			11,918
Total liabilities		16,573,346			16,694,013			17,060,342			16,820,488			16,851,433
Common stock		12,753			12,747			12,725			12,724			12,724
Capital surplus		161,834			160,521			159,688			158,316			156,834
Retained earnings		1,796,111			1,736,485			1,709,157			1,687,199			1,667,339
Accumulated other comprehensive income (loss),
net of tax		(91,557	)		(227,154	)		(219,723	)		(287,888	)		(265,704	)
Total shareholders' equity		1,879,141			1,682,599			1,661,847			1,570,351			1,571,193
Total liabilities and equity	$	18,452,487		$	18,376,612		$	18,722,189		$	18,390,839		$	18,422,626

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2024
($ in thousands except per share data)
(unaudited)

	Quarter Ended													Six Months Ended
INCOME STATEMENTS	6/30/2024			3/31/2024			12/31/2023			9/30/2023		6/30/2023		6/30/2024			6/30/2023
Interest and fees on LHFS & LHFI-FTE	$	216,399		$	209,456		$	210,288		$	206,523	$	192,941	$	425,855		$	371,908
Interest on securities-taxable		17,929			15,634			15,936			16,624		16,779		33,563			33,540
Interest on securities-tax exempt-FTE		1			4			44			58		69		5			161
Interest on fed funds sold and reverse repurchases		2			1			2			3		45		3			75
Other interest income		8,124			8,110			9,918			8,613		12,077		16,234			18,604
Total interest income-FTE		242,455			233,205			236,188			231,821		221,911		475,660			424,288
Interest on deposits		83,681			83,716			80,847			69,797		54,409		167,397			95,307
Interest on fed funds purchased and repurchases		5,663			5,591			5,347			5,375		4,865		11,254			9,697
Other interest expense		8,778			7,703			9,946			14,713		19,350		16,481			34,925
Total interest expense		98,122			97,010			96,140			89,885		78,624		195,132			139,929
Net interest income-FTE		144,333			136,195			140,048			141,936		143,287		280,528			284,359
PCL, LHFI		14,696			7,708			7,585			8,322		8,211		22,404			11,455
PCL, off-balance sheet credit exposures		(3,600	)		(192	)		(888	)		104		245		(3,792	)		(1,997	)
PCL, LHFI sale of 1-4 family mortgage loans		8,633			—			—			—		—		8,633			—
Net interest income after provision-FTE		124,604			128,679			133,351			133,510		134,831		253,283			274,901
Service charges on deposit accounts		10,924			10,958			11,311			11,074		10,695		21,882			21,031
Bank card and other fees		9,225			7,428			8,502			8,217		8,917		16,653			16,720
Mortgage banking, net		4,204			8,915			5,519			6,458		6,600		13,119			14,239
Wealth management		9,692			8,952			8,657			8,773		8,882		18,644			17,662
Other, net		7,461			3,102			2,577			2,399		2,735		10,563			5,255
Securities gains (losses), net		(182,792	)		—			39			—		—		(182,792	)		—
Total noninterest income (loss)		(141,286	)		39,355			36,605			36,921		37,829		(101,931	)		74,907
Salaries and employee benefits		64,838			65,487			69,326			67,374		66,799		130,325			131,571
Services and fees		24,743			24,431			27,478			27,472		27,821		49,174			52,855
Net occupancy-premises		7,265			7,270			7,144			7,151		6,897		14,535			14,212
Equipment expense		6,241			6,325			6,457			6,755		6,337		12,566			12,632
Litigation settlement expense		—			—			—			6,500		—		—			—
Other expense		15,239			16,151			15,790			15,039		13,767		31,390			27,940
Total noninterest expense		118,326			119,664			126,195			130,291		121,621		237,990			239,210
Income (loss) from continuing operations before
income taxes and tax eq adj		(135,008	)		48,370			43,761			40,140		51,039		(86,638	)		110,598
Tax equivalent adjustment		3,304			3,365			3,306			3,299		3,383		6,669			6,860
Income (loss) from continuing operations before
income taxes		(138,312	)		45,005			40,455			36,841		47,656		(93,307	)		103,738
Income taxes from continuing operations		(37,707	)		6,832			6,567			6,288		6,452		(30,875	)		14,889
Income (loss) from continuing operations		(100,605	)		38,173			33,888			30,553		41,204		(62,432	)		88,849
Income from discontinued operations
(discont. ops) before income taxes		232,640			4,512			2,965			4,649		5,127		237,152			8,688
Income taxes from discontinued operations		58,203			1,150			730			1,173		1,294		59,353			2,200
Income from discont. ops		174,437			3,362			2,235			3,476		3,833		177,799			6,488
Net income	$	73,832		$	41,535		$	36,123		$	34,029	$	45,037	$	115,367		$	95,337

Per share data (1)
Basic earnings (loss) per share from continuing
operations	$	(1.64	)	$	0.62		$	0.55		$	0.50	$	0.67	$	(1.02	)	$	1.46
Basic earnings per share from discont. ops	$	2.85		$	0.05		$	0.04		$	0.06	$	0.06	$	2.91		$	0.11
Basic earnings per share - total	$	1.21		$	0.68		$	0.59		$	0.56	$	0.74	$	1.89		$	1.56

Diluted earnings (loss) per share from continuing
operations	$	(1.64	)	$	0.62		$	0.55		$	0.50	$	0.67	$	(1.02	)	$	1.45
Diluted earnings per share from discont. ops	$	2.84		$	0.05		$	0.04		$	0.06	$	0.06	$	2.90		$	0.11
Diluted earnings per share - total	$	1.20		$	0.68		$	0.59		$	0.56	$	0.74	$	1.88		$	1.56

Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23	$	0.23	$	0.46		$	0.46

Weighted average shares outstanding
Basic		61,196,820			61,128,425			61,070,481			61,069,750		61,063,277		61,162,623			61,037,312
Diluted		61,415,957			61,348,364			61,296,840			61,263,032		61,230,031		61,373,850			61,206,799
Period end shares outstanding		61,205,969			61,178,366			61,071,173			61,070,095		61,069,036		61,205,969			61,069,036

(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2024
($ in thousands)
(unaudited)


	Quarter Ended
NONPERFORMING ASSETS	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
Nonaccrual LHFI
Alabama (1)	$	26,222		$	23,261		$	23,271		$	23,530		$	11,058
Florida		614			585			170			151			334
Mississippi (2)		14,773			59,059			54,615			45,050			36,288
Tennessee (3)		2,084			1,800			1,802			1,841			5,088
Texas		599			13,646			20,150			20,327			22,259
Total nonaccrual LHFI		44,292			98,351			100,008			90,899			75,027
Other real estate
Alabama (1)		485			1,050			1,397			315			—
Florida		—			71			—			—			—
Mississippi (2)		1,787			2,870			1,242			942			1,137
Tennessee (3)		86			86			—			—			—
Texas		4,228			3,543			4,228			4,228			—
Total other real estate		6,586			7,620			6,867			5,485			1,137
Total nonperforming assets	$	50,878		$	105,971		$	106,875		$	96,384		$	76,164

LOANS PAST DUE OVER 90 DAYS
LHFI	$	5,413		$	5,243		$	5,790		$	3,804		$	3,911

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	58,079		$	56,530		$	51,243		$	42,532		$	35,766


	Quarter Ended															Six Months Ended
*ACL LHFI*	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023			6/30/2024			6/30/2023
Beginning Balance	$	142,998		$	139,367		$	134,031		$	129,298		$	122,239		$	139,367		$	120,214
PCL, LHFI		14,696			7,708			7,585			8,322			8,211			22,404			11,455
PCL, LHFI sale of 1-4 family mortgage loans		8,633			—			—			—			—			8,633			—
Charge-offs, sale of 1-4 family mortgage loans		(8,633	)		—			—			—			—			(8,633	)		—
Charge-offs		(5,120	)		(6,324	)		(4,250	)		(7,496	)		(2,773	)		(11,444	)		(5,769	)
Recoveries		2,111			2,247			2,001			3,907			1,621			4,358			3,398
Net (charge-offs) recoveries		(11,642	)		(4,077	)		(2,249	)		(3,589	)		(1,152	)		(15,719	)		(2,371	)
Ending Balance	$	154,685		$	142,998		$	139,367		$	134,031		$	129,298		$	154,685		$	129,298

*NET (CHARGE-OFFS) RECOVERIES*
Alabama (1)	$	59		$	(341	)	$	(299	)	$	(165	)	$	(141	)	$	(282	)	$	(409	)
Florida		4			277			180			21			(35	)		281			(71	)
Mississippi (2)		(9,112	)		(1,489	)		(1,943	)		(1,867	)		(762	)		(10,601	)		(1,537	)
Tennessee (3)		(122	)		(179	)		(193	)		2,127			(166	)		(301	)		(290	)
Texas		(2,471	)		(2,345	)		6			(3,705	)		(48	)		(4,816	)		(64	)
Total net (charge-offs) recoveries	$	(11,642	)	$	(4,077	)	$	(2,249	)	$	(3,589	)	$	(1,152	)	$	(15,719	)	$	(2,371	)


(1) Alabama includes the Georgia Loan Production Office.
(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
June 30, 2024
(unaudited)


	Quarter Ended															Six Months Ended
FINANCIAL RATIOS AND OTHER DATA	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023			6/30/2024		6/30/2023
Return on average equity from continuing operations		-23.42	%		9.16	%		8.44	%		7.66	%		10.46	%	-7.38	%	11.54	%
Return on average equity from adjusted
continuing operations (1)		9.06	%		9.16	%		8.68	%		8.87	%		10.46	%	9.11	%	11.54	%
Return on average equity - total		17.19	%		9.96	%		9.00	%		8.53	%		11.43	%	13.63	%	12.39	%

Return on average tangible equity from
continuing operations		-29.05	%		11.45	%		10.70	%		9.72	%		13.28	%	-9.18	%	14.75	%
Return on average tangible equity from adjusted
continuing operations (1)		11.14	%		11.45	%		10.98	%		11.25	%		13.28	%	11.29	%	14.75	%
Return on average tangible equity - total		21.91	%		12.98	%		11.92	%		11.32	%		15.18	%	17.56	%	16.56	%

Return on average assets from continuing operations		-2.16	%		0.83	%		0.72	%		0.65	%		0.88	%	-0.67	%	0.97	%
Return on average assets from adjusted
continuing operations (1)		0.87	%		0.83	%		0.74	%		0.75	%		0.88	%	0.85	%	0.97	%
Return on average assets - total		1.58	%		0.89	%		0.77	%		0.72	%		0.96	%	1.24	%	1.03	%

Interest margin - Yield - FTE		5.67	%		5.49	%		5.48	%		5.38	%		5.16	%	5.58	%	5.02	%
Interest margin - Cost		2.30	%		2.28	%		2.23	%		2.08	%		1.83	%	2.29	%	1.65	%
Net interest margin - FTE		3.38	%		3.21	%		3.25	%		3.29	%		3.33	%	3.29	%	3.36	%
Efficiency ratio (2)		63.81	%		66.90	%		69.76	%		68.27	%		66.12	%	65.32	%	65.52	%
Full-time equivalent employees		2,515			2,712			2,757			2,756			2,761

CREDIT QUALITY RATIOS
Net (recoveries) charge-offs (excl sale of
1-4 family mortgage loans) / average loans		0.09	%		0.12	%		0.07	%		0.11	%		0.04	%	0.11	%	0.04	%
PCL, LHFI (excl PCL, LHFI sale of
1-4 family mortgage loans) / average loans		0.44	%		0.24	%		0.23	%		0.26	%		0.26	%	0.34	%	0.18	%
Nonaccrual LHFI / (LHFI + LHFS)		0.33	%		0.74	%		0.76	%		0.70	%		0.59	%
Nonperforming assets / (LHFI + LHFS)		0.38	%		0.80	%		0.81	%		0.74	%		0.60	%
Nonperforming assets / (LHFI + LHFS
+ other real estate)		0.38	%		0.80	%		0.81	%		0.74	%		0.60	%
ACL LHFI / LHFI		1.18	%		1.10	%		1.08	%		1.05	%		1.03	%
ACL LHFI-commercial / commercial LHFI		1.05	%		0.93	%		0.85	%		0.86	%		0.84	%
ACL LHFI-consumer / consumer and
home mortgage LHFI		1.59	%		1.63	%		1.81	%		1.66	%		1.60	%
ACL LHFI / nonaccrual LHFI		349.24	%		145.39	%		139.36	%		147.45	%		172.34	%
ACL LHFI / nonaccrual LHFI
(excl individually analyzed loans)		840.20	%		235.29	%		249.31	%		273.60	%		301.44	%

CAPITAL RATIOS
Total equity / total assets		10.18	%		9.16	%		8.88	%		8.54	%		8.53	%
Tangible equity / tangible assets		8.52	%		7.47	%		7.22	%		6.84	%		6.83	%
Tangible equity / risk-weighted assets		10.18	%		8.83	%		8.76	%		8.16	%		8.26	%
Tier 1 leverage ratio		9.29	%		8.76	%		8.62	%		8.49	%		8.35	%
Common equity tier 1 capital ratio		10.92	%		10.12	%		10.04	%		9.89	%		9.87	%
Tier 1 risk-based capital ratio		11.31	%		10.51	%		10.44	%		10.29	%		10.27	%
Total risk-based capital ratio		13.29	%		12.42	%		12.29	%		12.11	%		12.08	%

STOCK PERFORMANCE
Market value-Close	$	30.04		$	28.11		$	27.88		$	21.73		$	21.12
Book value	$	30.70		$	27.50		$	27.21		$	25.71		$	25.73
Tangible book value	$	25.23		$	22.03		$	21.73		$	20.23		$	20.24

(1) Adjusted continuing operations excludes significant non-routine transactions. See Note 7 - Non-GAAP Financials Measures in the Notes to the Consolidated Financials.
(2) See Note 7 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark's efficiency ratio calculation.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands)

(unaudited)

Note 1 - Significant Non-Routine Transactions

Trustmark completed the following significant non-routine transactions during the second quarter of 2024:

On May 31, 2024, Trustmark National Bank closed the sale of its wholly owned subsidiary, Fisher Brown Bottrell Insurance, Inc., (FBBI) to Marsh & McLennan Agency LLC, consistent with the terms as previously announced on April 23, 2024. Trustmark National Bank is a wholly owned subsidiary of Trustmark Corporation. Trustmark recognized a gain on the sale of $228.3 million ($171.2 million, net of taxes) in income from discontinued operations. The operations of FBBI are also included in discontinued operations for the current and prior periods.
Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income in securities gains (losses), net. Trustmark purchased $1.378 billion of available for sale securities with an average yield of 4.85%.
Trustmark sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at the time of selection totaling $56.2 million, which resulted in a loss of $13.4 million ($10.1 million, net of taxes). The portion of the loss related to credit totaled $8.6 million and was recorded as adjustments to charge-offs and the provision for credit losses. The noncredit-related portion of the loss totaled $4.8 million and was recorded to noninterest income in other, net.
On April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for any and all outstanding shares of Visa Class B-1 common stock (Visa B-1 shares). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that are validly tendered and accepted for exchange by Visa. TNB tendered its 38.7 thousand Visa B-1 shares, which was accepted by Visa. In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TNB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share. The Visa C shares that were received by TNB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and recorded to noninterest income in other, net during the second quarter of 2024. The Visa B-2 shares were recorded at their nominal carrying value.

Note 2 - 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 securities held to maturity:

	*6/30/2024*		*3/31/2024*		*12/31/2023*		*9/30/2023*		*6/30/2023*
*SECURITIES AVAILABLE FOR SALE*
U.S. Treasury securities	$	172,955	$	372,424	$	372,368	$	363,476	$	362,966
U.S. Government agency obligations		—		5,594		5,792		6,780		6,999
Obligations of states and political subdivisions		—		—		—		4,642		4,813
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		23,489		22,232		23,135		22,881		25,336
Issued by FNMA and FHLMC		1,060,869		1,129,521		1,176,798		1,171,521		1,250,435
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		—		79,099		86,074		90,402		98,388
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		364,346		93,429		98,711		106,472		122,946
Total securities available for sale	$	1,621,659	$	1,702,299	$	1,762,878	$	1,766,174	$	1,871,883

*SECURITIES HELD TO MATURITY*
U.S. Treasury securities	$	29,455	$	29,261	$	29,068	$	28,872	$	28,679
Obligations of states and political subdivisions		—		340		340		341		1,180
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		17,998		18,387		13,005		13,090		13,235
Issued by FNMA and FHLMC		449,781		461,457		469,593		474,003		484,679
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		138,951		146,447		154,466		162,031		171,002
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		744,302		759,133		759,807		759,950		759,890
Total securities held to maturity	$	1,380,487	$	1,415,025	$	1,426,279	$	1,438,287	$	1,458,665

At June 30, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $52.1 million.

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, GSE-backed obligations and other Aaa rated securities as determined by Moody's. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands)

(unaudited)

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

*LHFI BY TYPE*	*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*
Loans secured by real estate:
Construction, land development and other land loans	$	1,638,972		$	1,539,461		$	1,510,679		$	1,609,326		$	1,722,657
Secured by 1-4 family residential properties		2,878,295			2,891,481			2,904,715			2,893,606			2,854,182
Secured by nonfarm, nonresidential properties		3,598,647			3,543,235			3,489,434			3,569,671			3,471,728
Other real estate secured		1,344,968			1,384,610			1,312,551			1,218,499			954,410
Commercial and industrial loans		1,880,607			1,922,711			1,922,910			1,828,924			1,883,480
Consumer loans		153,316			156,430			161,725			161,940			163,788
State and other political subdivision loans		1,053,015			1,052,844			1,088,466			1,056,569			1,111,710
Other loans and leases		607,598			567,171			560,044			471,724			452,012
LHFI		13,155,418			13,057,943			12,950,524			12,810,259			12,613,967
ACL LHFI		(154,685	)		(142,998	)		(139,367	)		(134,031	)		(129,298	)
Net LHFI	$	13,000,733		$	12,914,945		$	12,811,157		$	12,676,228		$	12,484,669

The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region's diversified mix of loans:

	*June 30, 2024*
*LHFI - COMPOSITION BY REGION*	*Total*		*Alabama* (1)		*Florida*		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		*Texas*
Loans secured by real estate:
Construction, land development and other land loans	$	1,638,972	$	832,891	$	35,147	$	366,893	$	41,046	$	362,995
Secured by 1-4 family residential properties		2,878,295		152,184		60,268		2,546,223		83,469		36,151
Secured by nonfarm, nonresidential properties		3,598,647		1,052,737		226,977		1,512,307		133,835		672,791
Other real estate secured		1,344,968		560,797		1,703		370,854		6,384		405,230
Commercial and industrial loans		1,880,607		676,858		22,064		802,334		151,496		227,855
Consumer loans		153,316		21,806		7,084		93,505		16,814		14,107
State and other political subdivision loans		1,053,015		72,787		51,084		796,947		23,672		108,525
Other loans and leases		607,598		285,089		8,505		202,159		43,062		68,783
Loans	$	13,155,418	$	3,655,149	$	412,832	$	6,691,222	$	499,778	$	1,896,437

*CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION*
Lots	$	72,597	$	27,887	$	7,284	$	19,673	$	6,506	$	11,247
Development		122,826		56,857		878		25,218		12,502		27,371
Unimproved land		104,436		19,762		12,051		27,149		7,859		37,615
1-4 family construction		316,669		171,134		10,214		91,849		14,179		29,293
Other construction		1,022,444		557,251		4,720		203,004		—		257,469
Construction, land development and other land loans	$	1,638,972	$	832,891	$	35,147	$	366,893	$	41,046	$	362,995

(1) Includes Georgia Loan Production Office.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands)

(unaudited)

Note 3 – Loan Composition (continued)

	*June 30, 2024*
	*Total*		*Alabama* (1)		*Florida*		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		*Texas*

*LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION*
Non-owner occupied:
Retail	$	331,174	$	115,459	$	22,998	$	95,638	$	16,980	$	80,099
Office		257,391		100,383		19,451		72,173		1,546		63,838
Hotel/motel		278,437		128,705		47,859		76,834		25,039		—
Mini-storage		145,336		41,249		1,678		89,905		639		11,865
Industrial		509,631		137,814		18,914		178,304		2,985		171,614
Health care		120,089		92,200		680		24,600		329		2,280
Convenience stores		25,609		2,947		413		13,989		228		8,032
Nursing homes/senior living		527,800		227,059		—		200,257		4,546		95,938
Other		118,763		32,470		8,757		60,783		8,042		8,711
Total non-owner occupied loans		2,314,230		878,286		120,750		812,483		60,334		442,377

Owner-occupied:
Office		146,066		43,808		35,796		36,678		11,224		18,560
Churches		55,308		13,697		4,010		31,652		3,503		2,446
Industrial warehouses		158,118		11,309		4,503		39,103		15,009		88,194
Health care		122,993		11,253		8,210		84,065		2,233		17,232
Convenience stores		132,276		11,807		29,012		57,593		—		33,864
Retail		91,918		9,190		14,488		51,438		8,407		8,395
Restaurants		36,809		4,019		2,870		9,593		16,509		3,818
Auto dealerships		41,127		4,765		187		20,475		15,700		—
Nursing homes/senior living		368,429		52,648		—		289,669		—		26,112
Other		131,373		11,955		7,151		79,558		916		31,793
Total owner-occupied loans		1,284,417		174,451		106,227		699,824		73,501		230,414
Loans secured by nonfarm, nonresidential properties	$	3,598,647	$	1,052,737	$	226,977	$	1,512,307	$	133,835	$	672,791

(1) Includes Georgia Loan Production Office.

Note 4 – 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-bearing liabilities on a tax equivalent basis:

	*Quarter Ended*															*Six Months Ended*
	*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*			*6/30/2024*			*6/30/2023*
Securities – taxable		2.19	%		1.88	%		1.85	%		1.89	%		1.87	%		2.03	%		1.86	%
Securities – nontaxable		3.59	%		4.73	%		3.81	%		4.05	%		4.25	%		4.45	%		4.10	%
Securities – total		2.19	%		1.88	%		1.85	%		1.89	%		1.87	%		2.04	%		1.87	%
LHFI & LHFS		6.54	%		6.40	%		6.41	%		6.34	%		6.08	%		6.47	%		5.94	%
Fed funds sold & reverse repurchases		7.31	%		3.53	%		6.56	%		5.17	%		5.51	%		5.39	%		5.35	%
Other earning assets		5.51	%		5.71	%		5.87	%		5.01	%		5.36	%		5.61	%		4.81	%
Total earning assets		5.67	%		5.49	%		5.48	%		5.38	%		5.16	%		5.58	%		5.02	%

Interest-bearing deposits		2.75	%		2.74	%		2.67	%		2.39	%		1.96	%		2.75	%		1.75	%
Fed funds purchased & repurchases		5.24	%		5.25	%		5.26	%		5.14	%		5.01	%		5.25	%		4.73	%
Other borrowings		4.91	%		4.78	%		5.08	%		5.32	%		5.12	%		4.84	%		5.01	%
Total interest-bearing liabilities		2.95	%		2.92	%		2.89	%		2.72	%		2.42	%		2.93	%		2.20	%

Total Deposits		2.18	%		2.18	%		2.10	%		1.84	%		1.48	%		2.18	%		1.31	%

Net interest margin		3.38	%		3.21	%		3.25	%		3.29	%		3.33	%		3.29	%		3.36	%

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands)

(unaudited)

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities (continued)

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets.

The net interest margin increased 17 basis points when compared to the first quarter of 2024, totaling 3.38% for the second quarter of 2024, primarily due to increased yields on the securities portfolio and the loans held for investment and held for sale portfolio as well as the costs of interest-bearing deposits remaining relatively flat.

Note 5 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $4.5 million during the second quarter of 2024.

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

	*Quarter Ended*															*Six Months Ended*
	*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*			*6/30/2024*			*6/30/2023*
Mortgage servicing income, net	$	6,993		$	6,934		$	6,731		$	6,916		$	6,764		$	13,927		$	13,549
Change in fair value-MSR from runoff		(3,447	)		(1,926	)		(2,972	)		(3,203	)		(2,710	)		(5,373	)		(3,855	)
Gain on sales of loans, net		5,151			5,009			3,913			3,748			3,887			10,160			7,684
Mortgage banking income before hedge
ineffectiveness		8,697			10,017			7,672			7,461			7,941			18,714			17,378
Change in fair value-MSR from market changes		(1,626	)		5,123			(10,224	)		6,809			5,898			3,497			1,926
Change in fair value of derivatives		(2,867	)		(6,225	)		8,071			(7,812	)		(7,239	)		(9,092	)		(5,065	)
Net positive (negative) hedge ineffectiveness		(4,493	)		(1,102	)		(2,153	)		(1,003	)		(1,341	)		(5,595	)		(3,139	)
Mortgage banking, net	$	4,204		$	8,915		$	5,519		$	6,458		$	6,600		$	13,119		$	14,239

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands)

(unaudited)

Note 6 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

	*Quarter Ended*															*Six Months Ended*
	*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*			*6/30/2024*			*6/30/2023*
Partnership amortization for tax credit purposes	$	(1,824	)	$	(1,834	)	$	(2,013	)	$	(1,995	)	$	(2,019	)	$	(3,658	)	$	(3,980	)
Increase in life insurance cash surrender value		1,860			1,844			1,825			1,784			1,716			3,704			3,409
Loss on sale of 1-4 family mortgage loans		(4,798	)		—			—			—			—			(4,798	)		—
Visa C shares fair value adjustment		8,056			—			—			—			—			8,056			—
Other miscellaneous income		4,167			3,092			2,765			2,610			3,038			7,259			5,826
Total other, net	$	7,461		$	3,102		$	2,577		$	2,399		$	2,735		$	10,563		$	5,255

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Other noninterest expense consisted of the following for the periods presented:

	*Quarter Ended*												*Six Months Ended*
	*6/30/2024*		*3/31/2024*		*12/31/2023*			*9/30/2023*			*6/30/2023*		*6/30/2024*		*6/30/2023*
Loan expense	$	2,880	$	2,955	$	2,380		$	3,130		$	3,066	$	5,835	$	5,604
Amortization of intangibles		27		28		33			34			34		55		223
FDIC assessment expense		4,816		4,509		4,844			3,765			2,550		9,325		4,920
Other real estate expense, net		327		671		(184	)		(40	)		171		998		343
Other miscellaneous expense		7,189		7,988		8,717			8,150			7,946		15,177		16,850
Total other expense	$	15,239	$	16,151	$	15,790		$	15,039		$	13,767	$	31,390	$	27,940

Note 7 – Non-GAAP Financial Measures

In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark's Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark's capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders' equity associated with preferred securities, the nature and extent of which varies across organizations. In Management's experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark's calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands except per share data)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

		*Quarter Ended*															*Six Months Ended*
		*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*			*6/30/2024*			*6/30/2023*
*TANGIBLE EQUITY*
AVERAGE BALANCES
Total shareholders' equity		$	1,727,489		$	1,676,521		$	1,592,493		$	1,582,885		$	1,580,291		$	1,702,005		$	1,552,215
Less: Goodwill			(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)
Identifiable intangible assets			(195	)		(224	)		(253	)		(287	)		(320	)		(210	)		(381	)
Total average tangible equity		$	1,392,689		$	1,341,692		$	1,257,635		$	1,247,993		$	1,245,366		$	1,367,190		$	1,217,229

PERIOD END BALANCES
Total shareholders' equity		$	1,879,141		$	1,682,599		$	1,661,847		$	1,570,351		$	1,571,193
Less: Goodwill			(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)
Identifiable intangible assets			(181	)		(208	)		(236	)		(269	)		(303	)
Total tangible equity	(a)	$	1,544,355		$	1,347,786		$	1,327,006		$	1,235,477		$	1,236,285

*TANGIBLE ASSETS*
Total assets		$	18,452,487		$	18,376,612		$	18,722,189		$	18,390,839		$	18,422,626
Less: Goodwill			(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)
Identifiable intangible assets			(181	)		(208	)		(236	)		(269	)		(303	)
Total tangible assets	(b)	$	18,117,701		$	18,041,799		$	18,387,348		$	18,055,965		$	18,087,718
Risk-weighted assets	(c)	$	15,165,038		$	15,257,385		$	15,153,263		$	15,143,531		$	14,966,614

*NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION*
Net income (loss) from continuing operations		$	(100,605	)	$	38,173		$	33,888		$	30,553		$	41,204		$	(62,432	)	$	88,849
Plus: Intangible amortization net of tax from
continuing operations			20			20			25			25			25			40			167
Net income (loss) adjusted for intangible amortization		$	(100,585	)	$	38,193		$	33,913		$	30,578		$	41,229		$	(62,392	)	$	89,016
Period end common shares outstanding	(d)		61,205,969			61,178,366			61,071,173			61,070,095			61,069,036

*TANGIBLE COMMON EQUITY MEASUREMENTS*
Return on average tangible equity from
continuing operations (1)			-29.05	%		11.45	%		10.70	%		9.72	%		13.28	%		-9.18	%		14.75	%
Tangible equity/tangible assets	(a)/(b)		8.52	%		7.47	%		7.22	%		6.84	%		6.83	%
Tangible equity/risk-weighted assets	(a)/(c)		10.18	%		8.83	%		8.76	%		8.16	%		8.26	%
Tangible book value	(a)/(d)*1,000	$	25.23		$	22.03		$	21.73		$	20.23		$	20.24

*COMMON EQUITY TIER 1 CAPITAL (CET1)*
Total shareholders' equity		$	1,879,141		$	1,682,599		$	1,661,847		$	1,570,351		$	1,571,193
CECL transition adjustment			6,500			6,500			13,000			13,000			13,000
AOCI-related adjustments			91,557			227,154			219,723			287,888			265,704
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)			(320,758	)		(370,205	)		(370,212	)		(370,219	)		(370,227	)
Other adjustments and deductions
for CET1 (2)			(847	)		(2,588	)		(2,693	)		(2,803	)		(2,915	)
CET1 capital	(e)		1,655,593			1,543,460			1,521,665			1,498,217			1,476,755
Additional tier 1 capital instruments
plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,715,593		$	1,603,460		$	1,581,665		$	1,558,217		$	1,536,755

Common equity tier 1 capital ratio	(e)/(c)		10.92	%		10.12	%		10.04	%		9.89	%		9.87	%

(1) Calculation = ((net income (loss) adjusted for intangible amortization/number of days in period)number of days in year)/total average tangible equity.*
(2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands except per share data)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark's business against internal projected results of operations and to measure Trustmark's performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents pre-provision net revenue (PPNR) during the periods presented:

			*Quarter Ended*													*Six Months Ended*
			*6/30/2024*			*3/31/2024*		*12/31/2023*			*9/30/2023*			*6/30/2023*		*6/30/2024*			*6/30/2023*

Net interest income (GAAP)		(a)	$	141,029		$	132,830	$	136,742		$	138,637		$	139,904	$	273,859		$	277,499

Noninterest income (loss) (GAAP)				(141,286	)		39,355		36,605			36,921			37,829		(101,931	)		74,907
Add:	Loss on sale of 1-4 family mortgage loans (incl in Other, net)			4,798			—		—			—			—		4,798			—
	Visa C shares fair value adjustment (incl in Other, net)			(8,056	)		—		—			—			—		(8,056	)		—
	Securities (gains) losses, net			182,792			—		—			—			—		182,792			—
Noninterest income from adjusted continuing
operations (Non-GAAP)		(b)	$	38,248		$	39,355	$	36,605		$	36,921		$	37,829	$	77,603		$	74,907

Adjusted pre-provision revenue		(a)+(b)=(c)	$	179,277		$	172,185	$	173,347		$	175,558		$	177,733	$	351,462		$	352,406

Noninterest expense (GAAP)			$	118,326		$	119,664	$	126,195		$	130,291		$	121,621	$	237,990		$	239,210
Less:	Reduction in force expense (incl in Salaries and employee benefits)			—			—		(1,406	)		—			—		—			—
	Litigation settlement expense			—			—		—			(6,500	)		—		—			—
Noninterest expense from adjusted continuing
operations (Non-GAAP)		(d)	$	118,326		$	119,664	$	124,789		$	123,791		$	121,621	$	237,990		$	239,210

PPNR (Non-GAAP)		(c)-(d)	$	60,951		$	52,521	$	48,558		$	51,767		$	56,112	$	113,472		$	113,196

The following table presents adjustments to net income (loss) from continuing operations and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:

	*Quarter Ended*															*Six Months Ended*
	*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*			*6/30/2024*			*6/30/2023*

Net income (loss) (GAAP) from continuing operations	$	(100,605	)	$	38,173		$	33,888		$	30,553		$	41,204		$	(62,432	)	$	88,849

Significant non-routine transactions (net of taxes):
PCL, LHFI sale of nonperforming 1-4 family		6,475			—			—			—			—			6,475			—
Loss on sale of 1-4 family mortgage loans		3,598			—			—			—			—			3,598			—
Visa C shares fair value adjustment		(6,042	)		—			—			—			—			(6,042	)		—
Securities gains (losses), net		137,094			—			—			—			—			137,094			—
Reduction in force expense		—			—			1,055			—			—			—			—
Litigation settlement expense		—			—			—			4,875			—			—			—
Net income adjusted for significant non-routine
transactions (Non-GAAP)	$	40,520		$	38,173		$	34,943		$	35,428		$	41,204		$	78,693		$	88,849

Diluted EPS from adjusted continuing operations	$	0.66		$	0.62		$	0.57		$	0.58		$	0.67		$	1.28		$	1.45

*FINANCIAL RATIOS - REPORTED (GAAP)*
Return on average equity from continuing operations		-23.42	%		9.16	%		8.44	%		7.66	%		10.46	%		-7.38	%		11.54	%
Return on average tangible equity from continuing operations		-29.05	%		11.45	%		10.70	%		9.72	%		13.28	%		-9.18	%		14.75	%
Return on average assets from continuing operations		-2.16	%		0.83	%		0.72	%		0.65	%		0.88	%		-0.67	%		0.97	%

*FINANCIAL RATIOS - ADJUSTED (NON-GAAP)*
Return on average equity from adjusted continuing operations		9.06	%		9.16	%		8.68	%		8.87	%		10.46	%		9.11	%		11.54	%
Return on average tangible equity from adjusted
continuing operations		11.14	%		11.45	%		10.98	%		11.25	%		13.28	%		11.29	%		14.75	%
Return on average assets from adjusted continuing operations		0.87	%		0.83	%		0.74	%		0.75	%		0.88	%		0.85	%		0.97	%

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2024

($ in thousands)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

The following table presents Trustmark's calculation of its efficiency ratio for the periods presented:

			*Quarter Ended*															*Six Months Ended*
			*6/30/2024*			*3/31/2024*			*12/31/2023*			*9/30/2023*			*6/30/2023*			*6/30/2024*			*6/30/2023*

Total noninterest expense (GAAP)			$	118,326		$	119,664		$	126,195		$	130,291		$	121,621		$	237,990		$	239,210
Less:	Other real estate expense, net			(327	)		(671	)		184			40			(171	)		(998	)		(343	)
	Amortization of intangibles			(27	)		(28	)		(33	)		(34	)		(34	)		(55	)		(223	)
	Charitable contributions resulting in
	state tax credits			(300	)		(300	)		(325	)		(325	)		(325	)		(600	)		(650	)
	Reduction in force expense			—			—			(1,406	)		—			—			—			—
	Litigation settlement expense			—			—			—			(6,500	)		—			—			—
Adjusted noninterest expense (Non-GAAP)		(c)	$	117,672		$	118,665		$	124,615		$	123,472		$	121,091		$	236,337		$	237,994

Net interest income (GAAP)			$	141,029		$	132,830		$	136,742		$	138,637		$	139,904		$	273,859		$	277,499
Add:	Tax equivalent adjustment			3,304			3,365			3,306			3,299			3,383			6,669			6,860
Net interest income-FTE (Non-GAAP)		(a)	$	144,333		$	136,195		$	140,048		$	141,936		$	143,287		$	280,528		$	284,359

Noninterest income (loss) (GAAP)			$	(141,286	)	$	39,355		$	36,605		$	36,921		$	37,829		$	(101,931	)	$	74,907
Add:	Partnership amortization for tax credit purposes			1,824			1,834			2,013			1,995			2,019			3,658			3,980
	Loss on sale of 1-4 family mortgage loans			4,798			—			—			—			—			4,798			—
	Securities (gains) losses, net			182,792			—			(39	)		—			—			182,792			—
Less:	Visa C shares fair value adjustment			(8,056	)		—			—			—			—			(8,056	)		—
Adjusted noninterest income (Non-GAAP)		(b)	$	40,072		$	41,189		$	38,579		$	38,916		$	39,848		$	81,261		$	78,887

Adjusted revenue (Non-GAAP)		(a)+(b)	$	184,405		$	177,384		$	178,627		$	180,852		$	183,135		$	361,789		$	363,246

Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		63.81	%		66.90	%		69.76	%		68.27	%		66.12	%		65.32	%		65.52	%

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Date	Price Target	Rating	Analyst
10/29/2024	$34.00 → $37.00	Market Perform	Hovde Group
4/25/2024	$30.00 → $36.00	Mkt Perform → Outperform	Keefe Bruyette
4/6/2023		Outperform → Mkt Perform	Raymond James
2/21/2023	$34.00	Mkt Perform → Outperform	Raymond James
1/9/2023	$38.00	Neutral	DA Davidson

Trustmark Corporation Announces Second Quarter 2024 Financial Results

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Recent Analyst Ratings for
$TRMK

$TRMK
Market Insights

Live Market Insights

Truist Securities Maintains Hold on Trustmark, Raises Price Target to $37

Trustmark Q2 2024 Adj EPS $0.66 Beats $0.62 Estimate

Trustmark Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

$TRMK
Analyst Ratings

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Hovde Group reiterated coverage on Trustmark with a new price target

Trustmark upgraded by Keefe Bruyette with a new price target

Trustmark downgraded by Raymond James

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Large Ownership Changes

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SEC Form SC 13G/A filed by Trustmark Corporation (Amendment)

SEC Form SC 13G/A filed by Trustmark Corporation (Amendment)

SEC Form SC 13G/A filed by Trustmark Corporation (Amendment)

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SEC Filings

SEC Form 10-Q filed by Trustmark Corporation

Trustmark Corporation filed SEC Form 8-K: Leadership Update

Trustmark Corporation filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

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Financials

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Trustmark Corporation Announces Third Quarter 2024 Financial Results

Trustmark Corporation to Announce Third Quarter Financial Results October 22 and Conduct Earnings Conference Call October 23