Performance Reflects Continued Loan Growth,
Strong Credit Quality, Asset Sensitive Balance Sheet and
Diversified Fee Income
Trustmark Corporation (NASDAQGS: TRMK) reported net income of
$42.5 million in the third quarter of 2022, representing diluted
earnings per share of $0.69. Trustmark’s Board of Directors
declared a quarterly cash dividend of $0.23 per share payable
December 15, 2022, to shareholders of record on December 1,
2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221025005326/en/
Printer friendly version of earnings release with consolidated
financial statements and notes:
https://www.businesswire.com/news/home/52951792/en
Third Quarter Highlights
- Loans held for investment (HFI) increased $641.2 million, or
5.9%, from the prior quarter
- Deposits totaled $14.4 billion, with noninterest-bearing
deposits representing 30.2% of total deposits
- Total revenue expanded 13.7% from the prior quarter to $188.7
million
- Net interest income (FTE) increased 20.3% from the prior
quarter to $139.1 million, resulting in a 60 basis point expansion
in the net interest margin to 3.50%
- Noninterest income totaled $52.6 million, representing 27.9% of
total revenue
- Credit quality remained solid; net charge-offs totaled $1.0
million, or 0.03% of average loans
Duane A. Dewey, President and CEO, stated, “Trustmark’s solid
financial performance during the third quarter reflected
significant loan growth, net interest margin expansion, solid
performance in our insurance and wealth management businesses, and
strong credit quality. We continued to invest in technology
enhancements, rationalize our branch network and add business lines
to grow and serve customers. Trustmark is well-positioned to
respond to changing economic conditions and create long-term value
for our shareholders.”
Balance Sheet Management
- Loans HFI totaled $11.6 billion, up 5.9% from the prior quarter
and 13.9% year-over-year
- Investment securities totaled $3.6 billion, down 4.8% from the
prior quarter and up 4.3% year-over-year
- Deposits totaled $14.4 billion, down 2.3% from the prior
quarter and 3.3% year-over-year
- Initiated a cash flow hedging program to manage asset
sensitivity
- Maintained strong capital position with CET1 ratio of 10.63%
and total risk-based capital ratio of 12.85%
Loans HFI totaled $11.6 billion at September 30, 2022,
reflecting an increase of $641.2 million, or 5.9%, linked-quarter
and $1.4 billion, or 13.9%, year-over-year. The linked-quarter
growth was broad-based, reflecting increases in virtually every
category. Trustmark’s loan portfolio remains well-diversified by
loan type and geography.
Deposits totaled $14.4 billion at September 30, 2022, down
$345.0 million, or 2.3%, from the prior quarter and $497.7 million,
or 3.3%, year-over-year. Trustmark continues to maintain a strong
liquidity position as loans HFI represented 80.3% of total deposits
at September 30, 2022. Noninterest-bearing deposits represented
30.2% of total deposits at the end of the third quarter.
Interest-bearing deposit costs totaled 0.20% in the third quarter,
an increase of 9 basis points from the prior quarter. The total
cost of interest-bearing liabilities was 0.31% in the third quarter
of 2022, an increase of 14 basis points from the prior quarter.
During the third quarter Trustmark initiated a cash flow hedging
program under which interest rate swaps convert floating rate loans
to fixed rate. The intent of the program is to manage the natural
asset sensitivity of Trustmark’s balance sheet. As of September 30,
2022, notional balances totaled $675.0 million with a weighted
average receive fixed rate of 2.98%.
Trustmark repurchased $8.0 million, or approximately 247
thousand of its common shares during the third quarter. During the
nine months ended September 30, 2022, Trustmark repurchased $24.6
million, or approximately 789 thousand of its common shares. At
September 30, 2022, Trustmark had $75.4 million in remaining
authority under its existing stock repurchase program, which
expires on 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 September 30, 2022,
Trustmark’s tangible equity-to-tangible assets ratio was 6.67%
while its total risk-based capital ratio was 12.85%. Tangible book
value per share was $18.39 at September 30, 2022, down 6.1% from
the prior quarter reflecting a decline in accumulated other
comprehensive income due to mark-to-market adjustments on
securities available for sale resulting from the increase in market
interest rates during the third quarter.
Credit Quality
- Provision for credit losses for loans HFI was $12.9 million,
largely driven by reserves related to loan growth and a less
positive outlook within the macroeconomic forecasts
- Allowance for credit losses (ACL) represented 466.0% of
nonaccrual loans, excluding individually evaluated loans at
September 30, 2022
Nonaccrual loans totaled $67.9 million at September 30, 2022, up
$5.9 million from the prior quarter and $1.7 million
year-over-year. Other real estate totaled $3.0 million, reflecting
a $63 thousand decrease from the prior quarter and a decline of
$3.2 million year-over-year. Collectively, nonperforming assets
totaled $70.9 million at September 30, 2022, reflecting a
linked-quarter increase of $5.8 million and a year-over-year
decrease of $1.6 million.
The provision for credit losses for loans HFI was $12.9 million
in the third quarter. This provisioning was primarily driven by
reserves related to loan growth, individually analyzed reserves,
and a less positive outlook within the macroeconomic forecasts
partially offset by adjustments to the pandemic reserve. The
provision for credit losses for off-balance sheet credit exposures
was a negative $1.3 million in the third quarter. Collectively, the
provision for credit losses totaled $11.6 million in the third
quarter compared to $1.1 million in the prior quarter and a
negative $3.5 million in the third quarter of 2021.
Allocation of Trustmark’s $115.1 million allowance for credit
losses on loans HFI represented 0.93% of commercial loans and 1.20%
of consumer and home mortgage loans, resulting in an allowance to
total loans HFI of 0.99% at September 30, 2022. Management believes
the level of the ACL is commensurate with the credit losses
currently expected in the loan portfolio.
Revenue Generation
- Total revenue increased $22.8 million, or 13.7%,
linked-quarter
- Net interest income (FTE) expanded $23.5 million, or 20.3%,
linked-quarter
- Noninterest income totaled $52.6 million, representing 27.9% of
total revenue in the third quarter
Revenue in the third quarter totaled $188.7 million, an increase
of $22.8 million, or 13.7%, from the prior quarter and $36.3
million, or 23.8%, from the same quarter in the prior year. The
linked-quarter and year-over-year increases were principally due to
higher net interest income resulting from increased average earning
assets and rising interest rates.
Net interest income (FTE) in the third quarter totaled $139.1
million, resulting in a net interest margin of 3.50%, up 60 basis
points from the prior quarter. The expansion of the net interest
margin was due to increases in the yields on the loans held for
investment and held for sale portfolio and the securities portfolio
and was partially offset by costs of interest-bearing deposits,
which resulted from the higher interest rate environment.
Noninterest income in the third quarter totaled $52.6 million, a
decrease of $647 thousand from the prior quarter and $1.5 million
year-over-year. The linked-quarter decline was attributable to
lower mortgage banking revenue, bank card and other fees, and
wealth management revenue, which were offset by increased service
charges on deposit accounts, other, net revenue and insurance
commissions. Mortgage loan production in the third quarter totaled
$508.3 million, down 25.4% from the prior quarter and 28.3%
year-over-year. Mortgage banking revenue totaled $6.9 million in
the third quarter, a decrease of $1.3 million from the prior
quarter and $7.1 million year-over-year. The linked-quarter decline
was principally attributable to lower gains on sales of mortgage
loans in the secondary market.
Insurance revenue totaled $13.9 million in the third quarter, up
$209 thousand, or 1.5%, linked-quarter and up $1.8 million, or
14.7%, year-over-year due in part to increased property and
casualty commissions. Wealth management revenue totaled $8.8
million in the third quarter, a decrease of $324 thousand, or 3.6%,
from the prior quarter and $293 thousand, or 3.2%, year-over-year
as growth in investment management services was more than offset by
lower trust management and brokerage revenue. Service charges on
deposit accounts increased $1.1 million, or 10.7%, from the prior
quarter and $2.4 million, or 27.0%, year-over-year. Bank card and
other fees decreased $862 thousand from the prior quarter and
increased $756 thousand year-over-year.
Noninterest Expense
- Noninterest expense totaled $126.7 million in the third
quarter, up $2.9 million, or 2.4%, from the prior quarter
- Investments in new Atlanta loan production office (LPO) and
establishment of Equipment Finance line of business reflected in
increased salary and benefit expense
- Efficiency ratio improves to 64.96%
Noninterest expense in the third quarter was $126.7 million, up
$2.9 million, or 2.4%, from the prior quarter. Salaries and
employee benefits increased $1.0 million, or 1.4%, linked-quarter
due primarily to expansion initiatives including the opening of a
LPO in Atlanta as well as the establishment of the Equipment
Finance line of business. Total services and fees increased $1.3
million, or 5.1%, linked-quarter due to increased professional fees
associated with technology and risk management initiatives. Office
occupancy expense increased $503 thousand, or 7.3%, linked-quarter
due in part to seasonal increases in utilities and increased rental
expense.
FIT2GROW
“Earlier this year, we announced FIT2GROW, a comprehensive
program of Focus, Innovation and Transformation designed to enhance
Trustmark’s ability to grow and serve customers. As part of this
program, we are focusing our community bank efforts on commercial,
small business, and consumer lines of business to provide
additional expertise for our customers and enhance profitable
revenue growth. We have also expanded geographically with the
opening of a loan production office in Atlanta, which is focused on
Commercial Real Estate, Residential Real Estate, Corporate Banking,
and Equipment Finance,” said Dewey.
“Innovation is also a key component of FIT2GROW. In recent
years, investments in state-of-the-art technology were made in
Trustmark’s insurance, wealth management and mortgage banking areas
as well as in human resources and accounting systems. We also made
significant upgrades to our mobile banking platform, ITM network
and digital marketing programs. Collectively, these investments
have positioned Trustmark for growth and efficiency. During the
third quarter, we successfully converted to a new core loan system
and will be implementing a state-of-the-art loan origination
platform during the fourth quarter. Collectively, these investments
are designed to provide best-in-class service to customers as well
as enhance our productivity and efficiency,” said Dewey.
“We have accelerated efforts to optimize our branch network,
reflecting changing customer preferences and the continued
migration to mobile and digital channels as announced in the first
quarter. To date, eight offices have been closed in 2022, and four
additional offices are scheduled to close in the fourth quarter. We
will continue to pursue opportunities to redesign workflows and
restructure the organization,” said Dewey.
Additional Information
As previously announced, Trustmark will conduct a conference
call with analysts on Wednesday, October 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, November 9, 2022, in archived format at the same web
address or by calling (877) 344-7529, passcode 8003135.
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. 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, 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 recent heightened levels of inflation and the reactions of the
FRB and other governmental departments and agencies in response
thereto, 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 September 30, 2022 ($ in
thousands) (unaudited) Linked Quarter Year
over Year QUARTERLY AVERAGE
BALANCES 9/30/2022 6/30/2022
9/30/2021 $ Change % Change $ Change
% Change Securities AFS-taxable (1)
$
2,824,254
$
3,094,364
$
2,686,765
$
(270,110
)
-8.7
%
$
137,489
5.1
%
Securities AFS-nontaxable
4,928
5,110
5,159
(182
)
-3.6
%
(231
)
-4.5
%
Securities HTM-taxable (1)
1,140,685
811,599
401,685
329,086
40.5
%
739,000
n/m
Securities HTM-nontaxable
5,057
5,630
8,641
(573
)
-10.2
%
(3,584
)
-41.5
%
Total securities
3,974,924
3,916,703
3,102,250
58,221
1.5
%
872,674
28.1
%
Paycheck protection program loans (PPP)
9,821
17,746
122,176
(7,925
)
-44.7
%
(112,355
)
-92.0
%
Loans (includes loans held for sale)
11,459,551
10,910,178
10,389,826
549,373
5.0
%
1,069,725
10.3
%
Fed funds sold and reverse repurchases
226
110
69
116
n/m
157
n/m
Other earning assets
325,620
1,139,312
2,038,515
(813,692
)
-71.4
%
(1,712,895
)
-84.0
%
Total earning assets
15,770,142
15,984,049
15,652,836
(213,907
)
-1.3
%
117,306
0.7
%
Allowance for credit losses (ACL), loans heldfor investment (LHFI)
(102,951
)
(99,106
)
(104,857
)
(3,845
)
-3.9
%
1,906
1.8
%
Other assets
1,576,653
1,513,127
1,602,611
63,526
4.2
%
(25,958
)
-1.6
%
Total assets
$
17,243,844
$
17,398,070
$
17,150,590
$
(154,226
)
-0.9
%
$
93,254
0.5
%
Interest-bearing demand deposits
$
4,613,733
$
4,578,235
$
4,224,717
$
35,498
0.8
%
$
389,016
9.2
%
Savings deposits
4,514,579
4,638,849
4,617,683
(124,270
)
-2.7
%
(103,104
)
-2.2
%
Time deposits
1,111,440
1,159,065
1,258,829
(47,625
)
-4.1
%
(147,389
)
-11.7
%
Total interest-bearing deposits
10,239,752
10,376,149
10,101,229
(136,397
)
-1.3
%
138,523
1.4
%
Fed funds purchased and repurchases
249,809
118,753
147,635
131,056
n/m
102,174
69.2
%
Other borrowings
88,697
80,283
109,735
8,414
10.5
%
(21,038
)
-19.2
%
Subordinated notes
123,171
123,116
122,951
55
0.0
%
220
0.2
%
Junior subordinated debt securities
61,856
61,856
61,856
—
0.0
%
—
0.0
%
Total interest-bearing liabilities
10,763,285
10,760,157
10,543,406
3,128
0.0
%
219,879
2.1
%
Noninterest-bearing deposits
4,444,370
4,590,338
4,566,924
(145,968
)
-3.2
%
(122,554
)
-2.7
%
Other liabilities
429,720
439,266
257,956
(9,546
)
-2.2
%
171,764
66.6
%
Total liabilities
15,637,375
15,789,761
15,368,286
(152,386
)
-1.0
%
269,089
1.8
%
Shareholders' equity
1,606,469
1,608,309
1,782,304
(1,840
)
-0.1
%
(175,835
)
-9.9
%
Total liabilities and equity
$
17,243,844
$
17,398,070
$
17,150,590
$
(154,226
)
-0.9
%
$
93,254
0.5
%
(1)
During the second quarter of 2022, Trustmark transferred $343.1
million of securities available for sale to securities held to
maturity. See Note 1 - Securities Available for Sale and Held to
Maturity in the Notes to Consolidated Financials for additional
information. n/m - percentage changes greater than +/- 100%
are considered not meaningful
See Notes to Consolidated
Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION September 30, 2022 ($ in
thousands) (unaudited) Linked Quarter
Year over Year PERIOD END
BALANCES 9/30/2022 6/30/2022
9/30/2021 $ Change % Change $ Change
% Change Cash and due from banks
$
479,637
$
742,461
$
2,175,058
$
(262,824
)
-35.4
%
$
(1,695,421
)
-77.9
%
Fed funds sold and reverse repurchases
10,098
—
—
10,098
n/m
10,098
n/m
Securities available for sale (1)
2,444,486
2,644,364
3,057,605
(199,878
)
-7.6
%
(613,119
)
-20.1
%
Securities held to maturity (1)
1,156,985
1,137,754
394,905
19,231
1.7
%
762,080
n/m
PPP loans
4,798
12,549
46,486
(7,751
)
-61.8
%
(41,688
)
-89.7
%
Loans held for sale (LHFS)
165,213
190,186
335,339
(24,973
)
-13.1
%
(170,126
)
-50.7
%
Loans held for investment (LHFI)
11,586,064
10,944,840
10,174,899
641,224
5.9
%
1,411,165
13.9
%
ACL LHFI
(115,050
)
(103,140
)
(104,073
)
(11,910
)
-11.5
%
(10,977
)
-10.5
%
Net LHFI
11,471,014
10,841,700
10,070,826
629,314
5.8
%
1,400,188
13.9
%
Premises and equipment, net
210,761
207,914
201,937
2,847
1.4
%
8,824
4.4
%
Mortgage servicing rights
132,615
121,014
84,101
11,601
9.6
%
48,514
57.7
%
Goodwill
384,237
384,237
384,237
—
0.0
%
—
0.0
%
Identifiable intangible assets
3,952
4,264
5,621
(312
)
-7.3
%
(1,669
)
-29.7
%
Other real estate
2,971
3,034
6,213
(63
)
-2.1
%
(3,242
)
-52.2
%
Operating lease right-of-use assets
37,282
34,684
34,689
2,598
7.5
%
2,593
7.5
%
Other assets
686,585
627,349
567,627
59,236
9.4
%
118,958
21.0
%
Total assets
$
17,190,634
$
16,951,510
$
17,364,644
$
239,124
1.4
%
$
(174,010
)
-1.0
%
Deposits: Noninterest-bearing
$
4,358,805
$
4,509,472
$
4,987,885
$
(150,667
)
-3.3
%
$
(629,080
)
-12.6
%
Interest-bearing
10,066,375
10,260,696
9,934,954
(194,321
)
-1.9
%
131,421
1.3
%
Total deposits
14,425,180
14,770,168
14,922,839
(344,988
)
-2.3
%
(497,659
)
-3.3
%
Fed funds purchased and repurchases
544,068
70,157
146,417
473,911
n/m
397,651
n/m
Other borrowings
223,172
72,553
94,889
150,619
n/m
128,283
n/m
Subordinated notes
123,207
123,152
122,987
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
31,623
32,949
32,684
(1,326
)
-4.0
%
(1,061
)
-3.2
%
Operating lease liabilities
39,797
37,108
36,531
2,689
7.2
%
3,266
8.9
%
Other liabilities
232,786
196,871
177,494
35,915
18.2
%
55,292
31.2
%
Total liabilities
15,681,689
15,364,814
15,595,697
316,875
2.1
%
85,992
0.6
%
Common stock
12,700
12,752
13,014
(52
)
-0.4
%
(314
)
-2.4
%
Capital surplus
154,150
160,876
201,837
(6,726
)
-4.2
%
(47,687
)
-23.6
%
Retained earnings
1,648,507
1,620,210
1,573,176
28,297
1.7
%
75,331
4.8
%
Accumulated other comprehensiveincome (loss), net of tax
(306,412
)
(207,142
)
(19,080
)
(99,270
)
47.9
%
(287,332
)
n/m
Total shareholders' equity
1,508,945
1,586,696
1,768,947
(77,751
)
-4.9
%
(260,002
)
-14.7
%
Total liabilities and equity
$
17,190,634
$
16,951,510
$
17,364,644
$
239,124
1.4
%
$
(174,010
)
-1.0
%
(1)
During the second quarter of 2022, Trustmark transferred $343.1
million of securities available for sale to securities held to
maturity. See Note 1 - Securities Available for Sale and Held to
Maturity in the Notes to Consolidated Financials for additional
information. n/m - percentage changes greater than +/- 100%
are considered not meaningful
See Notes to Consolidated
Financials TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION September 30, 2022
($ in thousands except per share data) (unaudited)
Quarter Ended Linked Quarter Year over
Year INCOME STATEMENTS
9/30/2022 6/30/2022 9/30/2021 $ Change
% Change $ Change % Change Interest and fees
on LHFS & LHFI-FTE
$
129,395
$
103,033
$
94,101
$
26,362
25.6
%
$
35,294
37.5
%
Interest and fees on PPP loans
186
184
1,533
2
1.1
%
(1,347
)
-87.9
%
Interest on securities-taxable
16,222
14,561
9,973
1,661
11.4
%
6,249
62.7
%
Interest on securities-tax exempt-FTE
100
107
132
(7
)
-6.5
%
(32
)
-24.2
%
Interest on fed funds sold and reverserepurchases
2
1
—
1
100.0
%
2
n/m
Other interest income
1,493
2,214
949
(721
)
-32.6
%
544
57.3
%
Total interest income-FTE
147,398
120,100
106,688
27,298
22.7
%
40,710
38.2
%
Interest on deposits
5,097
2,774
3,691
2,323
83.7
%
1,406
38.1
%
Interest on fed funds purchased and repurchases
1,225
70
51
1,155
n/m
1,174
n/m
Other interest expense
1,996
1,664
1,733
332
20.0
%
263
15.2
%
Total interest expense
8,318
4,508
5,475
3,810
84.5
%
2,843
51.9
%
Net interest income-FTE
139,080
115,592
101,213
23,488
20.3
%
37,867
37.4
%
Provision for credit losses, LHFI
12,919
2,716
(2,492
)
10,203
n/m
15,411
n/m
Provision for credit losses, off-balance sheetcredit exposures
(1,326
)
(1,568
)
(1,049
)
242
15.4
%
(277
)
-26.4
%
Net interest income after provision-FTE
127,487
114,444
104,754
13,043
11.4
%
22,733
21.7
%
Service charges on deposit accounts
11,318
10,226
8,911
1,092
10.7
%
2,407
27.0
%
Bank card and other fees
9,305
10,167
8,549
(862
)
-8.5
%
756
8.8
%
Mortgage banking, net
6,876
8,149
14,004
(1,273
)
-15.6
%
(7,128
)
-50.9
%
Insurance commissions
13,911
13,702
12,133
209
1.5
%
1,778
14.7
%
Wealth management
8,778
9,102
9,071
(324
)
-3.6
%
(293
)
-3.2
%
Other, net
2,418
1,907
1,481
511
26.8
%
937
63.3
%
Total noninterest income
52,606
53,253
54,149
(647
)
-1.2
%
(1,543
)
-2.8
%
Salaries and employee benefits
72,707
71,679
74,623
1,028
1.4
%
(1,916
)
-2.6
%
Services and fees
25,795
24,538
22,306
1,257
5.1
%
3,489
15.6
%
Net occupancy-premises
7,395
6,892
6,854
503
7.3
%
541
7.9
%
Equipment expense
6,072
6,047
5,941
25
0.4
%
131
2.2
%
Other expense
14,729
14,611
19,876
118
0.8
%
(5,147
)
-25.9
%
Total noninterest expense
126,698
123,767
129,600
2,931
2.4
%
(2,902
)
-2.2
%
Income before income taxes and tax eq adj
53,395
43,930
29,303
9,465
21.5
%
24,092
82.2
%
Tax equivalent adjustment
2,975
2,916
2,947
59
2.0
%
28
1.0
%
Income before income taxes
50,420
41,014
26,356
9,406
22.9
%
24,064
91.3
%
Income taxes
7,965
6,730
5,156
1,235
18.4
%
2,809
54.5
%
Net income
$
42,455
$
34,284
$
21,200
$
8,171
23.8
%
$
21,255
n/m
Per share data Earnings per share - basic
$
0.69
$
0.56
$
0.34
$
0.13
23.2
%
$
0.35
n/m
Earnings per share - diluted
$
0.69
$
0.56
$
0.34
$
0.13
23.2
%
$
0.35
n/m
Dividends per share
$
0.23
$
0.23
$
0.23
—
0.0
%
—
0.0
%
Weighted average shares outstanding Basic
61,114,804
61,378,226
62,521,684
Diluted
61,318,715
61,546,285
62,730,157
Period end shares outstanding
60,953,864
61,201,123
62,461,832
n/m - percentage changes greater than +/- 100% are
considered not meaningful
See Notes to Consolidated
Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION September 30, 2022 ($ in
thousands) (unaudited) Quarter Ended
Linked Quarter Year over Year NONPERFORMING ASSETS (1) 9/30/2022
6/30/2022 9/30/2021 $ Change % Change
$ Change % Change Nonaccrual LHFI Alabama
$
12,710
$
2,698
$
9,223
$
10,012
n/m
$
3,487
37.8
%
Florida
227
233
381
(6
)
-2.6
%
(154
)
-40.4
%
Mississippi (2)
23,517
23,039
22,898
478
2.1
%
619
2.7
%
Tennessee (3)
5,120
9,500
10,356
(4,380
)
-46.1
%
(5,236
)
-50.6
%
Texas
26,353
26,582
23,382
(229
)
-0.9
%
2,971
12.7
%
Total nonaccrual LHFI
67,927
62,052
66,240
5,875
9.5
%
1,687
2.5
%
Other real estate Alabama
217
84
613
133
n/m
(396
)
-64.6
%
Mississippi (2)
2,754
2,950
5,600
(196
)
-6.6
%
(2,846
)
-50.8
%
Total other real estate
2,971
3,034
6,213
(63
)
-2.1
%
(3,242
)
-52.2
%
Total nonperforming assets
$
70,898
$
65,086
$
72,453
$
5,812
8.9
%
$
(1,555
)
-2.1
%
LOANS PAST DUE OVER 90 DAYS
(1) LHFI
$
1,842
$
1,347
$
625
$
495
36.7
%
$
1,217
n/m
LHFS-Guaranteed GNMA serviced loans (no obligation to
repurchase)
$
48,313
$
51,164
$
75,091
$
(2,851
)
-5.6
%
$
(26,778
)
-35.7
%
Quarter Ended Linked Quarter Year over
Year ACL LHFI (1)
9/30/2022 6/30/2022 9/30/2021 $ Change
% Change $ Change % Change Beginning Balance
$
103,140
$
98,734
$
104,032
$
4,406
4.5
%
$
(892
)
-0.9
%
Provision for credit losses, LHFI
12,919
2,716
(2,492
)
10,203
n/m
15,411
n/m
Charge-offs
(2,920
)
(2,277
)
(1,586
)
(643
)
-28.2
%
(1,334
)
-84.1
%
Recoveries
1,911
3,967
4,119
(2,056
)
-51.8
%
(2,208
)
-53.6
%
Net (charge-offs) recoveries
(1,009
)
1,690
2,533
(2,699
)
n/m
(3,542
)
n/m
Ending Balance
$
115,050
$
103,140
$
104,073
$
11,910
11.5
%
$
10,977
10.5
%
NET (CHARGE-OFFS) RECOVERIES
(1) Alabama
$
93
$
1,129
$
247
$
(1,036
)
-91.8
%
$
(154
)
-62.3
%
Florida
(23
)
761
356
(784
)
n/m
(379
)
n/m
Mississippi (2)
(702
)
(266
)
1,436
(436
)
n/m
(2,138
)
n/m
Tennessee (3)
(202
)
31
(8
)
(233
)
n/m
(194
)
n/m
Texas
(175
)
35
502
(210
)
n/m
(677
)
n/m
Total net (charge-offs) recoveries
$
(1,009
)
$
1,690
$
2,533
$
(2,699
)
n/m
$
(3,542
)
n/m
(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 September 30, 2022 ($ in
thousands) (unaudited) Quarter Ended Nine
Months Ended AVERAGE
BALANCES 9/30/2022 6/30/2022
3/31/2022 12/31/2021 9/30/2021
9/30/2022 9/30/2021 Securities AFS-taxable (1)
$
2,824,254
$
3,094,364
$
3,245,502
$
3,156,740
$
2,686,765
$
3,053,164
$
2,376,995
Securities AFS-nontaxable
4,928
5,110
5,127
5,143
5,159
5,054
5,174
Securities HTM-taxable (1)
1,140,685
811,599
410,851
364,038
401,685
790,385
443,890
Securities HTM-nontaxable
5,057
5,630
7,327
7,618
8,641
5,996
14,500
Total securities
3,974,924
3,916,703
3,668,807
3,533,539
3,102,250
3,854,599
2,840,559
PPP loans
9,821
17,746
29,009
42,749
122,176
18,788
454,436
Loans (includes loans held for sale)
11,459,551
10,910,178
10,550,712
10,487,679
10,389,826
10,976,809
10,340,960
Fed funds sold and reverse repurchases
226
110
56
58
69
131
86
Other earning assets
325,620
1,139,312
1,811,713
1,839,498
2,038,515
1,086,771
1,820,293
Total earning assets
15,770,142
15,984,049
16,060,297
15,903,523
15,652,836
15,937,098
15,456,334
ACL LHFI
(102,951
)
(99,106
)
(99,390
)
(104,148
)
(104,857
)
(100,495
)
(112,199
)
Other assets
1,576,653
1,513,127
1,550,848
1,570,501
1,602,611
1,546,972
1,608,754
Total assets
$
17,243,844
$
17,398,070
$
17,511,755
$
17,369,876
$
17,150,590
$
17,383,575
$
16,952,889
Interest-bearing demand deposits
$
4,613,733
$
4,578,235
$
4,429,056
$
4,353,599
$
4,224,717
$
4,541,018
$
4,010,188
Savings deposits
4,514,579
4,638,849
4,791,104
4,585,624
4,617,683
4,647,164
4,634,482
Time deposits
1,111,440
1,159,065
1,193,435
1,220,083
1,258,829
1,154,346
1,310,438
Total interest-bearing deposits
10,239,752
10,376,149
10,413,595
10,159,306
10,101,229
10,342,528
9,955,108
Fed funds purchased and repurchases
249,809
118,753
212,006
201,856
147,635
193,661
162,984
Other borrowings
88,697
80,283
91,090
94,328
109,735
86,681
136,077
Subordinated notes
123,171
123,116
123,061
123,007
122,951
123,116
122,908
Junior subordinated debt securities
61,856
61,856
61,856
61,856
61,856
61,856
61,856
Total interest-bearing liabilities
10,763,285
10,760,157
10,901,608
10,640,353
10,543,406
10,807,842
10,438,933
Noninterest-bearing deposits
4,444,370
4,590,338
4,601,108
4,679,951
4,566,924
4,544,698
4,481,662
Other liabilities
429,720
439,266
295,287
291,449
257,956
388,585
258,090
Total liabilities
15,637,375
15,789,761
15,798,003
15,611,753
15,368,286
15,741,125
15,178,685
Shareholders' equity
1,606,469
1,608,309
1,713,752
1,758,123
1,782,304
1,642,450
1,774,204
Total liabilities and equity
$
17,243,844
$
17,398,070
$
17,511,755
$
17,369,876
$
17,150,590
$
17,383,575
$
16,952,889
(1)
During the second quarter of 2022, Trustmark transferred $343.1
million of securities available for sale to securities held to
maturity. See Note 1 - Securities Available for Sale and Held to
Maturity in the Notes to Consolidated Financials for additional
information.
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION September 30, 2022 ($ in
thousands) (unaudited) PERIOD END BALANCES 9/30/2022
6/30/2022 3/31/2022 12/31/2021
9/30/2021 Cash and due from banks
$
479,637
$
742,461
$
1,917,564
$
2,266,829
$
2,175,058
Fed funds sold and reverse repurchases
10,098
—
—
—
—
Securities available for sale (1)
2,444,486
2,644,364
3,018,246
3,238,877
3,057,605
Securities held to maturity (1)
1,156,985
1,137,754
607,598
342,537
394,905
PPP loans
4,798
12,549
18,579
33,336
46,486
LHFS
165,213
190,186
222,538
275,706
335,339
LHFI
11,586,064
10,944,840
10,397,129
10,247,829
10,174,899
ACL LHFI
(115,050
)
(103,140
)
(98,734
)
(99,457
)
(104,073
)
Net LHFI
11,471,014
10,841,700
10,298,395
10,148,372
10,070,826
Premises and equipment, net
210,761
207,914
207,301
205,644
201,937
Mortgage servicing rights
132,615
121,014
111,050
87,687
84,101
Goodwill
384,237
384,237
384,237
384,237
384,237
Identifiable intangible assets
3,952
4,264
4,591
5,074
5,621
Other real estate
2,971
3,034
3,187
4,557
6,213
Operating lease right-of-use assets
37,282
34,684
34,048
34,603
34,689
Other assets
686,585
627,349
614,217
568,177
567,627
Total assets
$
17,190,634
$
16,951,510
$
17,441,551
$
17,595,636
$
17,364,644
Deposits: Noninterest-bearing
$
4,358,805
$
4,509,472
$
4,739,102
$
4,771,065
$
4,987,885
Interest-bearing
10,066,375
10,260,696
10,374,190
10,316,095
9,934,954
Total deposits
14,425,180
14,770,168
15,113,292
15,087,160
14,922,839
Fed funds purchased and repurchases
544,068
70,157
170,499
238,577
146,417
Other borrowings
223,172
72,553
84,644
91,025
94,889
Subordinated notes
123,207
123,152
123,097
123,042
122,987
Junior subordinated debt securities
61,856
61,856
61,856
61,856
61,856
ACL on off-balance sheet credit exposures
31,623
32,949
34,517
35,623
32,684
Operating lease liabilities
39,797
37,108
35,912
36,468
36,531
Other liabilities
232,786
196,871
186,352
180,574
177,494
Total liabilities
15,681,689
15,364,814
15,810,169
15,854,325
15,595,697
Common stock
12,700
12,752
12,806
12,845
13,014
Capital surplus
154,150
160,876
167,094
175,913
201,837
Retained earnings
1,648,507
1,620,210
1,600,138
1,585,113
1,573,176
Accumulated other comprehensive income (loss),net of tax
(306,412
)
(207,142
)
(148,656
)
(32,560
)
(19,080
)
Total shareholders' equity
1,508,945
1,586,696
1,631,382
1,741,311
1,768,947
Total liabilities and equity
$
17,190,634
$
16,951,510
$
17,441,551
$
17,595,636
$
17,364,644
(1)
During the second quarter of 2022, Trustmark transferred $343.1
million of securities available for sale to securities held to
maturity. See Note 1 - Securities Available for Sale and Held to
Maturity in the Notes to Consolidated Financials for additional
information.
See Notes to Consolidated Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION September 30, 2022 ($ in
thousands except per share data) (unaudited)
Quarter Ended Nine Months Ended INCOME STATEMENTS 9/30/2022
6/30/2022 3/31/2022 12/31/2021
9/30/2021 9/30/2022 9/30/2021 Interest and
fees on LHFS & LHFI-FTE
$
129,395
$
103,033
$
93,252
$
94,137
$
94,101
$
325,680
$
281,193
Interest and fees on PPP loans
186
184
168
397
1,533
538
36,329
Interest on securities-taxable
16,222
14,561
12,357
10,796
9,973
43,140
27,902
Interest on securities-tax exempt-FTE
100
107
122
123
132
329
571
Interest on fed funds sold and reverse repurchases
2
1
—
—
—
3
—
Other interest income
1,493
2,214
817
826
949
4,524
1,941
Total interest income-FTE
147,398
120,100
106,716
106,279
106,688
374,214
347,936
Interest on deposits
5,097
2,774
2,760
3,401
3,691
10,631
13,544
Interest on fed funds purchased and repurchases
1,225
70
70
66
51
1,365
166
Other interest expense
1,996
1,664
1,539
1,580
1,733
5,199
5,403
Total interest expense
8,318
4,508
4,369
5,047
5,475
17,195
19,113
Net interest income-FTE
139,080
115,592
102,347
101,232
101,213
357,019
328,823
Provision for credit losses, LHFI
12,919
2,716
(860
)
(4,515
)
(2,492
)
14,775
(16,984
)
Provision for credit losses, off-balance sheetcredit exposures
(1,326
)
(1,568
)
(1,106
)
2,939
(1,049
)
(4,000
)
(5,888
)
Net interest income after provision-FTE
127,487
114,444
104,313
102,808
104,754
346,244
351,695
Service charges on deposit accounts
11,318
10,226
9,451
9,366
8,911
30,995
23,880
Bank card and other fees
9,305
10,167
8,442
8,340
8,549
27,914
26,322
Mortgage banking, net
6,876
8,149
9,873
11,609
14,004
24,898
52,141
Insurance commissions
13,911
13,702
14,089
11,716
12,133
41,702
36,795
Wealth management
8,778
9,102
9,054
8,757
9,071
26,934
26,433
Other, net
2,418
1,907
3,206
979
1,481
7,531
5,572
Total noninterest income
52,606
53,253
54,115
50,767
54,149
159,974
171,143
Salaries and employee benefits
72,707
71,679
69,585
68,258
74,623
213,971
215,900
Services and fees
25,795
24,538
24,453
22,904
22,306
74,786
66,559
Net occupancy-premises
7,395
6,892
7,079
6,816
6,854
21,366
20,227
Equipment expense
6,072
6,047
6,061
6,585
5,941
18,180
17,752
Other expense
14,729
14,611
14,341
14,906
19,876
43,681
49,389
Total noninterest expense
126,698
123,767
121,519
119,469
129,600
371,984
369,827
Income before income taxes and tax eq adj
53,395
43,930
36,909
34,106
29,303
134,234
153,011
Tax equivalent adjustment
2,975
2,916
3,003
2,906
2,947
8,894
8,798
Income before income taxes
50,420
41,014
33,906
31,200
26,356
125,340
144,213
Income taxes
7,965
6,730
4,695
4,978
5,156
19,390
23,070
Net income
$
42,455
$
34,284
$
29,211
$
26,222
$
21,200
$
105,950
$
121,143
Per share data Earnings per share - basic
$
0.69
$
0.56
$
0.47
$
0.42
$
0.34
$
1.73
$
1.92
Earnings per share - diluted
$
0.69
$
0.56
$
0.47
$
0.42
$
0.34
$
1.72
$
1.92
Dividends per share
$
0.23
$
0.23
$
0.23
$
0.23
$
0.23
$
0.69
$
0.69
Weighted average shares outstanding Basic
61,114,804
61,378,226
61,514,395
62,037,884
62,521,684
61,334,344
63,040,860
Diluted
61,318,715
61,546,285
61,709,797
62,264,983
62,730,157
61,519,685
63,219,987
Period end shares outstanding
60,953,864
61,201,123
61,463,392
61,648,679
62,461,832
60,953,864
62,461,832
See Notes to Consolidated
Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED
FINANCIAL INFORMATION September 30, 2022 ($ in
thousands) (unaudited) Quarter Ended
NONPERFORMING ASSETS (1)
9/30/2022 6/30/2022 3/31/2022
12/31/2021 9/30/2021 Nonaccrual LHFI Alabama
$
12,710
$
2,698
$
7,506
$
8,182
$
9,223
Florida
227
233
310
313
381
Mississippi (2)
23,517
23,039
21,318
21,636
22,898
Tennessee (3)
5,120
9,500
9,266
10,501
10,356
Texas
26,353
26,582
25,999
22,066
23,382
Total nonaccrual LHFI
67,927
62,052
64,399
62,698
66,240
Other real estate Alabama
217
84
—
—
613
Mississippi (2)
2,754
2,950
3,187
4,557
5,600
Total other real estate
2,971
3,034
3,187
4,557
6,213
Total nonperforming assets
$
70,898
$
65,086
$
67,586
$
67,255
$
72,453
LOANS PAST DUE OVER 90 DAYS
(1) LHFI
$
1,842
$
1,347
$
1,503
$
2,114
$
625
LHFS-Guaranteed GNMA serviced loans (no obligation to
repurchase)
$
48,313
$
51,164
$
62,078
$
69,894
$
75,091
Quarter Ended Nine Months Ended
ACL LHFI (1) 9/30/2022
6/30/2022 3/31/2022 12/31/2021
9/30/2021 9/30/2022 9/30/2021 Beginning
Balance
$
103,140
$
98,734
$
99,457
$
104,073
$
104,032
$
99,457
$
117,306
Provision for credit losses, LHFI
12,919
2,716
(860
)
(4,515
)
(2,492
)
14,775
(16,984
)
Charge-offs
(2,920
)
(2,277
)
(2,242
)
(2,616
)
(1,586
)
(7,439
)
(7,659
)
Recoveries
1,911
3,967
2,379
2,515
4,119
8,257
11,410
Net (charge-offs) recoveries
(1,009
)
1,690
137
(101
)
2,533
818
3,751
Ending Balance
$
115,050
$
103,140
$
98,734
$
99,457
$
104,073
$
115,050
$
104,073
NET (CHARGE-OFFS) RECOVERIES
(1) Alabama
$
93
$
1,129
$
699
$
747
$
247
$
1,921
$
552
Florida
(23
)
761
(26
)
(32
)
356
712
553
Mississippi (2)
(702
)
(266
)
(88
)
(683
)
1,436
(1,056
)
572
Tennessee (3)
(202
)
31
(424
)
(130
)
(8
)
(595
)
1,070
Texas
(175
)
35
(24
)
(3
)
502
(164
)
1,004
Total net (charge-offs) recoveries
$
(1,009
)
$
1,690
$
137
$
(101
)
$
2,533
$
818
$
3,751
(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 September 30, 2022
(unaudited) Quarter Ended Nine Months
Ended FINANCIAL RATIOS AND OTHER
DATA 9/30/2022 6/30/2022 3/31/2022
12/31/2021 9/30/2021 9/30/2022
9/30/2021 Return on average equity
10.48
%
8.55
%
6.91
%
5.92
%
4.72
%
8.62
%
9.13
%
Return on average tangible equity
13.90
%
11.36
%
9.05
%
7.72
%
6.16
%
11.39
%
11.84
%
Return on average assets
0.98
%
0.79
%
0.68
%
0.60
%
0.49
%
0.81
%
0.96
%
Interest margin - Yield - FTE
3.71
%
3.01
%
2.69
%
2.65
%
2.70
%
3.14
%
3.01
%
Interest margin - Cost
0.21
%
0.11
%
0.11
%
0.13
%
0.14
%
0.14
%
0.17
%
Net interest margin - FTE
3.50
%
2.90
%
2.58
%
2.53
%
2.57
%
3.00
%
2.84
%
Efficiency ratio (1)
64.96
%
71.89
%
76.44
%
76.52
%
74.10
%
70.70
%
69.85
%
Full-time equivalent employees
2,717
2,727
2,725
2,692
2,680
CREDIT QUALITY RATIOS
(2) Net (recoveries) charge-offs / average loans
0.03
%
-0.06
%
-0.01
%
0.00
%
-0.10
%
-0.01
%
-0.05
%
Provision for credit losses, LHFI / average loans
0.45
%
0.10
%
-0.03
%
-0.17
%
-0.10
%
0.18
%
-0.22
%
Nonaccrual LHFI / (LHFI + LHFS)
0.58
%
0.56
%
0.61
%
0.60
%
0.63
%
Nonperforming assets / (LHFI + LHFS)
0.60
%
0.58
%
0.64
%
0.64
%
0.69
%
Nonperforming assets / (LHFI + LHFS+ other real estate)
0.60
%
0.58
%
0.64
%
0.64
%
0.69
%
ACL LHFI / LHFI
0.99
%
0.94
%
0.95
%
0.97
%
1.02
%
ACL LHFI-commercial / commercial LHFI
0.93
%
0.88
%
0.95
%
1.00
%
1.05
%
ACL LHFI-consumer / consumer andhome mortgage LHFI
1.20
%
1.14
%
0.96
%
0.87
%
0.91
%
ACL LHFI / nonaccrual LHFI
169.37
%
166.22
%
153.32
%
158.63
%
157.11
%
ACL LHFI / nonaccrual LHFI(excl individually evaluated loans)
466.03
%
475.27
%
484.01
%
500.85
%
520.77
%
CAPITAL RATIOS Total
equity / total assets
8.78
%
9.36
%
9.35
%
9.90
%
10.19
%
Tangible equity / tangible assets
6.67
%
7.23
%
7.29
%
7.86
%
8.12
%
Tangible equity / risk-weighted assets
8.15
%
9.16
%
9.79
%
10.71
%
11.19
%
Tier 1 leverage ratio
9.01
%
8.80
%
8.66
%
8.73
%
8.92
%
Common equity tier 1 capital ratio
10.63
%
11.01
%
11.23
%
11.29
%
11.68
%
Tier 1 risk-based capital ratio
11.06
%
11.47
%
11.70
%
11.77
%
12.17
%
Total risk-based capital ratio
12.85
%
13.26
%
13.53
%
13.55
%
14.01
%
STOCK PERFORMANCE Market
value-Close
$
30.63
$
29.19
$
30.39
$
32.46
$
32.22
Book value
$
24.76
$
25.93
$
26.54
$
28.25
$
28.32
Tangible book value
$
18.39
$
19.58
$
20.22
$
21.93
$
22.08
(1)
See Note 6 – Non-GAAP Financial Measures in the Notes to
Consolidated Financials for Trustmark’s efficiency ratio
calculation.
(2)
Excludes PPP loans.
See Notes to Consolidated
Financials
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIALS September 30, 2022 ($ in
thousands) (unaudited)
Note 1 - Securities Available for Sale and Held to
Maturity
The following table is a summary of the estimated fair value of
securities available for sale and the amortized cost of securities
held to maturity:
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
SECURITIES
AVAILABLE FOR SALE
U.S. Treasury securities
$
416,278
$
419,696
$
361,822
$
344,640
$
278,615
U.S. Government agency obligations
9,116
11,947
12,623
13,727
14,979
Obligations of states and political
subdivisions
4,763
5,179
5,359
5,714
5,734
Mortgage-backed securities
Residential mortgage pass-through
securities
Guaranteed by GNMA
28,164
32,240
35,117
39,573
43,860
Issued by FNMA and FHLMC
1,718,057
1,888,546
2,038,331
2,218,429
2,187,412
Other residential mortgage-backed
securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
126,138
144,158
164,506
196,690
236,885
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
141,970
142,598
400,488
420,104
290,120
Total securities available for sale
$
2,444,486
$
2,644,364
$
3,018,246
$
3,238,877
$
3,057,605
SECURITIES HELD
TO MATURITY
Obligations of states and political
subdivisions
$
4,512
$
5,320
$
7,324
$
7,328
$
10,683
Mortgage-backed securities
Residential mortgage pass-through
securities
Guaranteed by GNMA
4,527
4,624
4,831
5,005
5,912
Issued by FNMA and FHLMC
179,375
185,554
192,373
43,444
48,554
Other residential mortgage-backed
securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
197,923
210,479
224,012
241,934
264,638
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or
GNMA
770,648
731,777
179,058
44,826
65,118
Total securities held to maturity
$
1,156,985
$
1,137,754
$
607,598
$
342,537
$
394,905
During the second quarter of 2022, Trustmark reclassified $343.1
million of securities available for sale to securities held to
maturity. The securities were transferred at fair value, which
became the cost basis for the securities held to maturity. At the
date of transfer, the net unrealized holding loss on the available
for sale securities totaled approximately $34.8 million ($26.1
million, net of tax). The net unrealized holding loss will be
amortized over the remaining life of the securities as a yield
adjustment in a manner consistent with the amortization or
accretion of the original purchase premium or discount on the
associated security. There were no gains or losses recognized as a
result of the transfer.
At September 30, 2022, 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
approximately $37.7 million ($28.3 million, net of tax).
Management continues to focus on asset quality as one of the
strategic goals of the securities portfolio, which is evidenced by
the investment of 99.8% of the portfolio in 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, Federal Home
Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not
hold any other equity investment in a GSE.
Note 2 – Loan Composition
LHFI consisted of the following during the periods
presented:
LHFI BY
TYPE
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
Loans secured by real estate:
Construction, land development and other
land loans
$
1,647,395
$
1,440,058
$
1,273,959
$
1,308,781
$
1,286,613
Secured by 1-4 family residential
properties
2,597,112
2,424,962
2,106,998
1,977,993
1,891,292
Secured by nonfarm, nonresidential
properties
3,206,946
3,178,079
2,975,039
2,977,084
2,924,953
Other real estate secured
593,119
555,311
715,939
726,043
986,163
Commercial and industrial loans
1,689,532
1,551,001
1,495,060
1,414,279
1,327,211
Consumer loans
163,412
160,716
154,215
159,472
157,963
State and other political subdivision
loans
1,188,703
1,110,795
1,215,023
1,146,251
1,125,186
Other loans
499,845
523,918
460,896
537,926
475,518
LHFI
11,586,064
10,944,840
10,397,129
10,247,829
10,174,899
ACL LHFI
(115,050
)
(103,140
)
(98,734
)
(99,457
)
(104,073
)
Net LHFI
$
11,471,014
$
10,841,700
$
10,298,395
$
10,148,372
$
10,070,826
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIALS September 30, 2022 ($ in
thousands) (unaudited)
Note 2 – Loan Composition (continued)
The following table presents the LHFI composition by region and
reflects each region’s diversified mix of loans:
September 30, 2022
LHFI -
COMPOSITION BY REGION
Total
Alabama
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
$
1,647,395
$
768,582
$
57,901
$
419,470
$
38,356
$
363,086
Secured by 1-4 family residential
properties
2,597,112
126,847
48,428
2,320,799
71,330
29,708
Secured by nonfarm, nonresidential
properties
3,206,946
911,567
249,549
1,292,254
173,434
580,142
Other real estate secured
593,119
101,680
1,758
337,458
7,036
145,187
Commercial and industrial loans
1,689,532
420,001
25,879
743,116
260,939
239,597
Consumer loans
163,412
23,660
7,595
101,340
19,355
11,462
State and other political subdivision
loans
1,188,703
77,853
70,293
831,431
28,879
180,247
Other loans
499,845
69,925
10,096
305,372
54,077
60,375
Loans
$
11,586,064
$
2,500,115
$
471,499
$
6,351,240
$
653,406
$
1,609,804
CONSTRUCTION,
LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots
$
72,411
$
40,195
$
8,822
$
16,441
$
1,937
$
5,016
Development
144,989
51,404
1,690
54,266
6,604
31,025
Unimproved land
99,197
21,327
13,174
32,514
4,707
27,475
1-4 family construction
377,144
201,230
25,079
89,429
25,099
36,307
Other construction
953,654
454,426
9,136
226,820
9
263,263
Construction, land development and other
land loans
$
1,647,395
$
768,582
$
57,901
$
419,470
$
38,356
$
363,086
LOANS SECURED BY
NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail
$
324,948
$
122,602
$
34,912
$
85,101
$
22,155
$
60,178
Office
269,068
102,266
18,027
86,812
10,604
51,359
Hotel/motel
298,266
171,299
73,974
24,721
28,272
—
Mini-storage
159,898
27,253
2,150
110,838
500
19,157
Industrial
344,013
116,897
18,636
106,635
247
101,598
Health care
50,239
17,864
1,017
27,427
347
3,584
Convenience stores
29,170
8,706
668
15,019
604
4,173
Nursing homes/senior living
346,795
139,263
—
139,029
5,765
62,738
Other
122,999
17,496
9,979
60,027
16,596
18,901
Total non-owner occupied loans
1,945,396
723,646
159,363
655,609
85,090
321,688
Owner-occupied:
Office
152,004
42,342
37,200
45,750
9,316
17,396
Churches
75,039
16,676
5,348
42,353
7,577
3,085
Industrial warehouses
167,154
18,112
2,920
38,509
17,408
90,205
Health care
126,382
11,077
6,491
91,939
2,360
14,515
Convenience stores
153,282
12,891
21,626
68,967
398
49,400
Retail
95,058
11,993
8,780
43,985
19,373
10,927
Restaurants
53,409
3,098
4,732
29,428
12,293
3,858
Auto dealerships
50,838
7,290
235
24,924
18,389
—
Nursing homes/senior living
252,203
50,363
—
175,640
—
26,200
Other
136,181
14,079
2,854
75,150
1,230
42,868
Total owner-occupied loans
1,261,550
187,921
90,186
636,645
88,344
258,454
Loans secured by nonfarm, nonresidential
properties
$
3,206,946
$
911,567
$
249,549
$
1,292,254
$
173,434
$
580,142
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIALS September 30, 2022 ($ in
thousands) (unaudited)
Note 3 – Yields on Earning Assets and Interest-Bearing
Liabilities
The following table illustrates the yields on earning assets by
category as well as the rates paid on interest-bearing liabilities
on a tax equivalent basis:
Quarter Ended
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
Securities – taxable
1.62
%
1.50
%
1.37
%
1.22
%
1.28
%
1.50
%
1.32
%
Securities – nontaxable
3.97
%
4.00
%
3.97
%
3.82
%
3.79
%
3.98
%
3.88
%
Securities – total
1.63
%
1.50
%
1.38
%
1.23
%
1.29
%
1.51
%
1.34
%
PPP loans
7.51
%
4.16
%
2.35
%
3.68
%
4.98
%
3.83
%
10.69
%
Loans - LHFI & LHFS
4.48
%
3.79
%
3.58
%
3.56
%
3.59
%
3.97
%
3.64
%
Loans - total
4.48
%
3.79
%
3.58
%
3.56
%
3.61
%
3.97
%
3.93
%
Fed funds sold & reverse
repurchases
3.51
%
3.65
%
—
—
—
3.06
%
—
Other earning assets
1.82
%
0.78
%
0.18
%
0.18
%
0.18
%
0.56
%
0.14
%
Total earning assets
3.71
%
3.01
%
2.69
%
2.65
%
2.70
%
3.14
%
3.01
%
Interest-bearing deposits
0.20
%
0.11
%
0.11
%
0.13
%
0.14
%
0.14
%
0.18
%
Fed funds purchased & repurchases
1.95
%
0.24
%
0.13
%
0.13
%
0.14
%
0.94
%
0.14
%
Other borrowings
2.89
%
2.52
%
2.26
%
2.25
%
2.33
%
2.56
%
2.25
%
Total interest-bearing liabilities
0.31
%
0.17
%
0.16
%
0.19
%
0.21
%
0.21
%
0.24
%
Net interest margin
3.50
%
2.90
%
2.58
%
2.53
%
2.57
%
3.00
%
2.84
%
Net interest margin excluding PPP loans
and the FRB balance
3.53
%
3.06
%
2.88
%
2.82
%
2.90
%
3.17
%
2.94
%
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. In addition, the table includes net
interest margin excluding PPP loans and the balance held at the
Federal Reserve Bank of Atlanta (FRB), which equals reported net
interest income-FTE excluding interest income on PPP loans and the
FRB balance, annualized, as a percent of average earning assets
excluding average PPP loans and the FRB balance.
At September 30, 2022 and June 30, 2022, the average FRB balance
totaled $275.4 million and $1.077 billion, respectively, and is
included in other earning assets in the accompanying average
consolidated balance sheets.
The net interest margin excluding PPP loans and the FRB balance
totaled 3.53% for the third quarter of 2022, an increase of 47
basis points when compared to the second quarter of 2022. The
expansion of the net interest margin excluding PPP loans and the
FRB balance was due to increases in the yields on the loans held
for investment and held for sale portfolio and the securities
portfolio and was partially offset by costs of interest-bearing
deposits, which resulted from the higher interest-rate
environment.
Note 4 – 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 ineffectiveness of $928
thousand during the third quarter of 2022.
The following table illustrates the components of mortgage
banking revenues included in noninterest income in the accompanying
income statements:
Quarter Ended
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
Mortgage servicing income, net
$
6,669
$
6,557
$
6,429
$
6,571
$
6,406
$
19,655
$
18,905
Change in fair value-MSR from runoff
(3,462
)
(3,806
)
(3,785
)
(4,745
)
(5,283
)
(11,053
)
(15,415
)
Gain on sales of loans, net
4,597
6,030
6,223
9,005
12,737
16,850
46,971
Mortgage banking income before hedge
ineffectiveness
7,804
8,781
8,867
10,831
13,860
25,452
50,461
Change in fair value-MSR from market
changes
10,770
8,739
22,020
2,221
1,806
41,529
11,037
Change in fair value of derivatives
(11,698
)
(9,371
)
(21,014
)
(1,443
)
(1,662
)
(42,083
)
(9,357
)
Net positive (negative) hedge
ineffectiveness
(928
)
(632
)
1,006
778
144
(554
)
1,680
Mortgage banking, net
$
6,876
$
8,149
$
9,873
$
11,609
$
14,004
$
24,898
$
52,141
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIALS September 30, 2022 ($ in
thousands) (unaudited)
Note 5 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the
periods presented:
Quarter Ended
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
Partnership amortization for tax credit
purposes
$
(1,531
)
$
(1,475
)
$
(1,336
)
$
(2,455
)
$
(2,045
)
$
(4,342
)
$
(5,556
)
Increase in life insurance cash surrender
value
1,676
1,683
1,627
1,675
1,663
4,986
4,955
Other miscellaneous income
2,273
1,699
2,915
1,759
1,863
6,887
6,173
Total other, net
$
2,418
$
1,907
$
3,206
$
979
$
1,481
$
7,531
$
5,572
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
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
Loan expense
$
3,858
$
4,068
$
4,389
$
3,221
$
4,022
$
12,315
$
11,927
Amortization of intangibles
312
328
482
548
549
1,122
1,768
FDIC assessment expense
1,945
1,810
1,500
1,475
1,275
5,255
4,040
Regulatory settlement charge
—
—
—
—
5,000
—
5,000
Other real estate expense, net
497
623
35
336
1,357
1,155
3,192
Other miscellaneous expense
8,117
7,782
7,935
9,326
7,673
23,834
23,462
Total other expense
$
14,729
$
14,611
$
14,341
$
14,906
$
19,876
$
43,681
$
49,389
Note 6 – 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 September 30, 2022 ($ in
thousands except per share data) (unaudited)
Note 6 – Non-GAAP Financial Measures (continued)
Quarter Ended
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
TANGIBLE
EQUITY
AVERAGE BALANCES
Total shareholders' equity
$
1,606,469
$
1,608,309
$
1,713,752
$
1,758,123
$
1,782,304
$
1,642,450
$
1,774,204
Less: Goodwill
(384,237
)
(384,237
)
(384,237
)
(384,237
)
(384,237
)
(384,237
)
(384,540
)
Identifiable intangible assets
(4,131
)
(4,436
)
(4,879
)
(5,382
)
(5,899
)
(4,479
)
(6,482
)
Total average tangible equity
$
1,218,101
$
1,219,636
$
1,324,636
$
1,368,504
$
1,392,168
$
1,253,734
$
1,383,182
PERIOD END BALANCES
Total shareholders' equity
$
1,508,945
$
1,586,696
$
1,631,382
$
1,741,311
$
1,768,947
Less: Goodwill
(384,237
)
(384,237
)
(384,237
)
(384,237
)
(384,237
)
Identifiable intangible assets
(3,952
)
(4,264
)
(4,591
)
(5,074
)
(5,621
)
Total tangible equity
(a)
$
1,120,756
$
1,198,195
$
1,242,554
$
1,352,000
$
1,379,089
TANGIBLE
ASSETS
Total assets
$
17,190,634
$
16,951,510
$
17,441,551
$
17,595,636
$
17,364,644
Less: Goodwill
(384,237
)
(384,237
)
(384,237
)
(384,237
)
(384,237
)
Identifiable intangible assets
(3,952
)
(4,264
)
(4,591
)
(5,074
)
(5,621
)
Total tangible assets
(b)
$
16,802,445
$
16,563,009
$
17,052,723
$
17,206,325
$
16,974,786
Risk-weighted assets
(c)
$
13,748,819
$
13,076,981
$
12,691,545
$
12,623,630
$
12,324,254
NET INCOME
ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income
$
42,455
$
34,284
$
29,211
$
26,222
$
21,200
$
105,950
$
121,143
Plus: Intangible amortization net of
tax
234
246
362
411
412
842
1,327
Net income adjusted for intangible
amortization
$
42,689
$
34,530
$
29,573
$
26,633
$
21,612
$
106,792
$
122,470
Period end common shares outstanding
(d)
60,953,864
61,201,123
61,463,392
61,648,679
62,461,832
TANGIBLE COMMON
EQUITY MEASUREMENTS
Return on average tangible equity (1)
13.90
%
11.36
%
9.05
%
7.72
%
6.16
%
11.39
%
11.84
%
Tangible equity/tangible assets
(a)/(b)
6.67
%
7.23
%
7.29
%
7.86
%
8.12
%
Tangible equity/risk-weighted assets
(a)/(c)
8.15
%
9.16
%
9.79
%
10.71
%
11.19
%
Tangible book value
(a)/(d)*1,000
$
18.39
$
19.58
$
20.22
$
21.93
$
22.08
COMMON EQUITY
TIER 1 CAPITAL (CET1)
Total shareholders' equity
$
1,508,945
$
1,586,696
$
1,631,382
$
1,741,311
$
1,768,947
CECL transition adjustment
19,500
19,500
19,500
26,000
26,419
AOCI-related adjustments
306,412
207,142
148,656
32,560
19,080
CET1 adjustments and deductions:
Goodwill net of associated deferred tax
liabilities (DTLs)
(370,217
)
(370,229
)
(370,240
)
(370,252
)
(370,264
)
Other adjustments and deductions for CET1
(2)
(3,506
)
(3,757
)
(4,015
)
(4,392
)
(4,817
)
CET1 capital
(e)
1,461,134
1,439,352
1,425,283
1,425,227
1,439,365
Additional tier 1 capital instruments plus
related surplus
60,000
60,000
60,000
60,000
60,000
Tier 1 capital
$
1,521,134
$
1,499,352
$
1,485,283
$
1,485,227
$
1,499,365
Common equity tier 1 capital ratio
(e)/(c)
10.63
%
11.01
%
11.23
%
11.29
%
11.68
%
(1)
Calculation = ((net income 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 September 30, 2022 ($ in
thousands) (unaudited)
Note 6 – 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
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
Net interest income (GAAP)
$
136,105
$
112,676
$
99,344
$
98,326
$
98,266
$
348,125
$
320,025
Noninterest income (GAAP)
52,606
53,253
54,115
50,767
54,149
159,974
171,143
Pre-provision revenue
(a)
$
188,711
$
165,929
$
153,459
$
149,093
$
152,415
$
508,099
$
491,168
Noninterest expense (GAAP)
$
126,698
$
123,767
$
121,519
$
119,469
$
129,600
$
371,984
$
369,827
Less: Voluntary early retirement
program
—
—
—
—
(5,700
)
—
(5,700
)
Regulatory settlement charge
—
—
—
—
(5,000
)
—
(5,000
)
Adjusted noninterest expense - PPNR
(Non-GAAP)
(b)
$
126,698
$
123,767
$
121,519
$
119,469
$
118,900
$
371,984
$
359,127
PPNR (Non-GAAP)
(a)-(b)
$
62,013
$
42,162
$
31,940
$
29,624
$
33,515
$
136,115
$
132,041
The following table presents adjustments to net income and
select financial ratios as reported in accordance with GAAP
resulting from significant non-routine items occurring during the
periods presented:
Quarter Ended
Nine Months Ended
9/30/2022
9/30/2021
9/30/2022
9/30/2021
Amount
Diluted EPS
Amount
Diluted EPS
Amount
Diluted EPS
Amount
Diluted EPS
Net income (GAAP)
$
42,455
$
0.69
$
21,200
$
0.34
$
105,950
$
1.72
$
121,143
$
1.92
Significant non-routine transactions (net
of taxes):
Voluntary early retirement program
—
—
4,275
0.07
—
—
4,275
0.07
Regulatory settlement charge (not tax
deductible)
—
—
5,000
0.08
—
—
5,000
0.08
Net income adjusted for significant
non-routine transactions (Non-GAAP)
$
42,455
$
0.69
$
30,475
$
0.49
$
105,950
$
1.72
$
130,418
$
2.07
Reported (GAAP)
Adjusted (Non-GAAP)
Reported (GAAP)
Adjusted (Non-GAAP)
Reported (GAAP)
Adjusted (Non-GAAP)
Reported (GAAP)
Adjusted (Non-GAAP)
Return on average equity
10.48
%
n/a
4.72
%
6.77
%
8.62
%
n/a
9.13
%
9.82
%
Return on average tangible equity
13.90
%
n/a
6.16
%
8.77
%
11.39
%
n/a
11.84
%
12.72
%
Return on average assets
0.98
%
n/a
0.49
%
0.71
%
0.81
%
n/a
0.96
%
1.03
%
n/a - not applicable
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIALS September 30, 2022 ($ in
thousands) (unaudited)
The following table presents Trustmark’s calculation of its
efficiency ratio for the periods presented:
Quarter Ended
Nine Months Ended
9/30/2022
6/30/2022
3/31/2022
12/31/2021
9/30/2021
9/30/2022
9/30/2021
Total noninterest expense (GAAP)
$
126,698
$
123,767
$
121,519
$
119,469
$
129,600
$
371,984
$
369,827
Less: Other real estate expense, net
(497
)
(623
)
(35
)
(336
)
(1,357
)
(1,155
)
(3,192
)
Amortization of intangibles
(312
)
(328
)
(482
)
(548
)
(549
)
(1,122
)
(1,768
)
Charitable contributions resulting in
state tax credits
(375
)
(375
)
(375
)
(391
)
(350
)
(1,125
)
(1,055
)
Voluntary early retirement program
—
—
—
—
(5,700
)
—
(5,700
)
Regulatory settlement charge
—
—
—
—
(5,000
)
—
(5,000
)
Adjusted noninterest expense
(Non-GAAP)
(c)
$
125,514
$
122,441
$
120,627
$
118,194
$
116,644
$
368,582
$
353,112
Net interest income (GAAP)
$
136,105
$
112,676
$
99,344
$
98,326
$
98,266
$
348,125
$
320,025
Add:Tax equivalent adjustment
2,975
2,916
3,003
2,906
2,947
8,894
8,798
Net interest income-FTE (Non-GAAP)
(a)
$
139,080
$
115,592
$
102,347
$
101,232
$
101,213
$
357,019
$
328,823
Noninterest income (GAAP)
$
52,606
$
53,253
$
54,115
$
50,767
$
54,149
$
159,974
$
171,143
Add:Partnership amortization for tax
credit purposes
1,531
1,475
1,336
2,455
2,045
4,342
5,556
Adjusted noninterest income (Non-GAAP)
(b)
$
54,137
$
54,728
$
55,451
$
53,222
$
56,194
$
164,316
$
176,699
Adjusted revenue (Non-GAAP)
(a)+(b)
$
193,217
$
170,320
$
157,798
$
154,454
$
157,407
$
521,335
$
505,522
Efficiency ratio (Non-GAAP)
(c)/((a)+(b))
64.96
%
71.89
%
76.44
%
76.52
%
74.10
%
70.70
%
69.85
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221025005326/en/
Trustmark Investor Contacts: Thomas C. Owens Treasurer
and Principal Financial Officer 601-208-7853
F. Joseph Rein, Jr. Senior Vice President 601-208-6898
Trustmark Media Contact: Melanie A. Morgan Senior Vice
President 601-208-2979
Trustmark (NASDAQ:TRMK)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Trustmark (NASDAQ:TRMK)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024