TRUSTMARK CORP - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - TRUSTMARK CORPORATION - FORM 8-K - TRUSTMARK CORP	form8k.htm

News Release

Trustmark Corporation Announces 2014 Financial Results

JACKSON, Miss. – January 27, 2015 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $28.1 million in the fourth quarter of 2014, which represented diluted earnings per share of $0.42. For the full year 2014, net income totaled $123.6 million, which resulted in diluted earnings per share of $1.83, an increase of 4.6% from the prior year. Trustmark’s performance during 2014 produced a return on average tangible equity of 12.97% and a return on average assets of 1.03%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2015, to shareholders of record on March 1, 2015.

Gerard R. Host, President and CEO, stated, “2014 was a year of significant accomplishments for Trustmark. We continued to build upon and expand customer relationships, as reflected by growth in our diversified banking, wealth management and insurance businesses. Over the course of the year, total revenue expanded to $578.5 million, the highest level in Trustmark’s 125-year history. Credit quality continued to improve and remained an important contributor to our financial success. We continued investing in technology to increase revenue, improve efficiency, and ensure compliance with regulatory mandates. We have the necessary infrastructure in place to support a significantly larger organization and are well-positioned to meet the financial needs of our customers and create value for our shareholders.”

Balance Sheet Management

●	Loans held for investment increased $650.6 million, or 11.2%, in 2014
●	Average noninterest-bearing deposits represented 29.0% of average total deposits in the fourth quarter
●	Capital base provides opportunity to support additional growth

Loans held for investment totaled $6.4 billion at December 31, 2014, an increase of $115.8 million, or 7.2% annualized, from the prior quarter and $650.6 million, or 11.2%, from one year earlier. The sequential quarter increase reflected diversified loan growth across Trustmark’s five-state franchise. Construction, land development and other land loans increased $39.1 million during the fourth quarter driven by commercial and residential construction in Trustmark’s Texas, Alabama and Tennessee markets, which was offset in part by reductions in Mississippi. Other loans, which include lending to states and municipalities, nonprofits and real estate investment trusts, increased $38.8 million during the fourth quarter as a result of growth in Trustmark’s Mississippi, Texas and Alabama markets. Commercial and industrial loans increased $23.6 million during the quarter principally due to growth in the Mississippi and Alabama markets. Other real estate secured loans, which include multifamily projects, increased $14.0 million during the quarter as growth in Trustmark’s Mississippi and Alabama markets was offset in part by reductions in Texas. The single-family mortgage portfolio increased $8.9 million during the fourth quarter, reflecting growth in Trustmark’s Alabama and Mississippi markets. Loans secured by nonfarm and nonresidential real estate decreased $7.7 million during the quarter as growth in owner-occupied real estate was more than offset by declines in income producing loans.

Acquired loans totaled $549.4 million at December 31, 2014, down $42.7 million from the prior quarter. Collectively, loans held for investment and acquired loans totaled $7.0 billion at December 31, 2014, up $73.1 million, or 4.2% annualized, from the prior quarter.

Average earning assets during the fourth quarter increased $58.2 million relative to the prior quarter principally due to increased balances of loans held for investment. Average deposits in the fourth quarter declined $163.3 million, reflecting a $150.9 million decrease in average interest-bearing deposits and $12.4 million decline in average noninterest-bearing deposits.

Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. At December 31, 2014, Trustmark’s tangible equity to tangible assets ratio was 8.62%, while the total risk-based capital ratio was 14.56%. Trustmark’s solid capital base provides the opportunity to support organic loan growth in an improving economy and enhance long-term shareholder value.

Credit Quality

●	Significant improvement in classified and criticized loan balances
●	Other real estate declined 4.7% and 13.2% from the prior quarter and year, respectively
●	Allowance for loan losses represented 180.95% of nonperforming loans, excluding impaired loans

Nonperforming loans totaled $79.3 million at December 31, 2014, a decrease of $9.0 million from the prior quarter and an increase of $14.1 million from one year earlier. The increase in nonperforming loans year-over-year was primarily the result of a few significant substandard credit relationships migrating to nonaccrual status during the year. Other real estate totaled $92.5 million, a decrease of $4.5 million, or 4.7%, from the prior quarter. Relative to levels one year earlier, other real estate decreased $14.0 million, or 13.2%. Collectively, nonperforming assets totaled $171.9 million, a decrease of $13.5 million from the prior quarter and an increase of $75 thousand from one year earlier.

During the fourth quarter of 2014, recoveries exceeded charge-offs, resulting in a net recovery position of $875 thousand. This compares favorably to the net recovery position in the prior quarter of $428 thousand and net charge-off position of $201 thousand for the comparable period one year earlier. During 2014, Trustmark had a net recovery position of $2.0 million, comparing favorably to a net recovery position of $1.1 million in the prior year. During the fourth quarter of 2014, the provision for loan losses for loans held for investment was a negative $1.4 million; for the year 2014, the provision for loan losses for loans held for investment was $1.2 million compared to a negative $13.4 million for 2013.

During the fourth quarter, Trustmark experienced a 5.4% reduction in classified loan balances and a 14.7% decline in criticized loan balances relative to the prior quarter. When compared to the prior year, classified loan balances decreased 12.3% while criticized loan balances declined 15.9%.

Allocation of Trustmark’s $69.6 million allowance for loan losses represented 1.23% of commercial loans and 0.67% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 1.08% at December 31, 2014, which represents a level management considers commensurate with the inherent risk in the loan portfolio. The allowance for loan losses represented 180.95% of nonperforming loans, excluding impaired loans.

All of the above credit quality metrics exclude acquired loans and other real estate covered by FDIC loss-share agreement.

Revenue Generation

●	Total revenue expanded to $578.5 million in 2014
●	Net interest income (FTE) achieved record level of $421.2 million in 2014
●	Insurance and wealth management revenue increased 8.6% and 9.7%, respectively, during the year

Net interest income (FTE) in the fourth quarter totaled $103.1 million, resulting in a net interest margin of 3.86%. Relative to the prior quarter, interest income (FTE) decreased $7.2 million due principally to a $6.7 million decline in recoveries on acquired loans. The yield on acquired loans in the fourth quarter totaled 9.38% and included recoveries from settlement of debt of $2.0 million, which represented approximately 1.38% of the total acquired annualized loan yield in the fourth quarter. Excluding acquired loans, the net interest margin in the fourth quarter totaled 3.54% and included $2.2 million (eight basis points) of yield maintenance payments on prepaid securities. Net interest income (FTE) in 2014 totaled $421.2 million, an increase of 4.4% from the prior year; the net interest margin (FTE) was 4.03% in 2014 compared to 4.01% in 2013.

Noninterest income totaled $42.0 million in the fourth quarter, a decrease of 2.0% from the prior quarter and an increase of 8.7% from levels one year earlier. Total noninterest income in 2014 was $173.1 million, down 0.4% from the prior year. Bank card and other fees totaled $6.7 million in the fourth quarter, a decrease of 7.8% from the prior quarter and 29.9% from the comparable period one year earlier, reflecting the impact of decreased interchange income as a result of Trustmark becoming subject to debit card interchange fee standards effective July 1, 2014. Service charges on deposit accounts totaled $12.5 million, a decline of 1.8% from the prior quarter and 4.6% from the comparable period one year earlier; the decline was attributable to a reduction in NSF and overdraft fees resulting from changes in customer practices.

Insurance revenue in the fourth quarter totaled $7.8 million, reflecting a seasonal decrease of 15.2% relative to the prior quarter and an increase of 6.6% from levels one year earlier. Improved performance year-over-year resulted from increasing business development efforts. Insurance revenue totaled $33.5 million in 2014, an increase of 8.6% relative to the prior year.

Wealth management revenue totaled $8.5 million in the fourth quarter, an increase of 5.3% from the prior quarter and 3.9% from the comparable period one year earlier. This growth was attributable to improved profitability within the trust management business as well as increased sales within investment services resulting from improved market conditions. Wealth management revenue in 2014 totaled $32.3 million, an increase of 9.7% relative to the prior year.

Mortgage banking revenue in the fourth quarter totaled $5.9 million, an increase of 1.3% relative to the prior quarter and 14.1% from the comparable period one year earlier. Mortgage loan production in the fourth quarter totaled $293.8 million, reflecting a seasonal decrease of 14.9% from the prior quarter and an increase of 6.5% from levels one year earlier due to expanded originations in Trustmark’s Alabama markets. Mortgage loan production in 2014 totaled $1.2 billion, a decline of 17.8% from levels in 2013, while mortgage banking revenue declined 26.0% to $24.8 million principally due to lower secondary marketing gains resulting from tightening mortgage spreads and reduced volume.

Noninterest Expense

●	Routine noninterest expense remained well-controlled
●	Continued realignment of branch network to enhance efficiency and revenue growth
●	Tax credit investments reduced the effective tax rate to 23.8% in 2014

Noninterest expense totaled $104.4 million in the fourth quarter. Excluding ORE expense and intangible amortization of $5.4 million, noninterest expense during the fourth quarter totaled $99.1 million, an increase of $2.0 million from comparable expenses in the prior quarter. The increase during the quarter was primarily reflected in salaries and benefits and other expenses. Salaries and benefits reflected an increase of $484 thousand, which included an additional year-end incentive accrual of $1.3 million offset by reductions in commissions of $742 thousand. Other expense increased $1.5 million, which was principally attributable to contingency reserves. Noninterest expense in 2014 totaled $409.0 million, a decrease of 1.6% relative to the prior year.

Trustmark continued realignment of its branch network to enhance productivity and efficiency as well as promote additional revenue growth. During the fourth quarter, Trustmark consolidated two banking centers with limited growth opportunities. Over the course of 2014, Trustmark consolidated five banking centers and opened three new offices – one each in Birmingham and Montgomery, Alabama, and Memphis, Tennessee. Trustmark is committed to investments to support profitable revenue growth as well as reengineering and efficiency opportunities to enhance shareholder value.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 28, 2015, at 10:00 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, which will also include a slide presentation Management will review during the conference call. A replay of the conference call will also be available through Wednesday, February 11, 2015, in archived format at the same web address or by calling (877) 344-7529, passcode 10058131.

Trustmark Corporation is a financial services company providing banking and financial solutions through 205 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “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 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, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including the extent and duration of the current volatility in the credit and financial markets, 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, and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other 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, changes in our compensation and benefit plans, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, natural disasters, environmental disasters, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission.

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 Investor Contacts:

Louis E. Greer

Treasurer and

Principal Financial Officer

601-208-2310

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

Trustmark Media Contact:

Melanie A. Morgan

Senior Vice President

601-208-2979

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2014

($ in thousands)

(unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	12/31/2014			9/30/2014			12/31/2013			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	2,204,361		$	2,202,020		$	3,026,186		$	2,341			0.1	%	$	(821,825	)		-27.2	%
Securities AFS-nontaxable		129,403			131,305			160,989			(1,902	)		-1.4	%		(31,586	)		-19.6	%
Securities HTM-taxable		1,117,989			1,126,309			265,792			(8,320	)		-0.7	%		852,197			n/m
Securities HTM-nontaxable		42,040			43,114			21,172			(1,074	)		-2.5	%		20,868			98.6	%
Total securities		3,493,793			3,502,748			3,474,139			(8,955	)		-0.3	%		19,654			0.6	%
Loans (including loans held for sale)		6,494,369			6,387,251			5,847,557			107,118			1.7	%		646,812			11.1	%
Acquired loans:
Noncovered loans		544,260			585,675			812,426			(41,415	)		-7.1	%		(268,166	)		-33.0	%
Covered loans		27,039			28,971			34,640			(1,932	)		-6.7	%		(7,601	)		-21.9	%
Fed funds sold and rev repos		1,269			4,228			11,094			(2,959	)		-70.0	%		(9,825	)		-88.6	%
Other earning assets		48,224			41,871			32,118			6,353			15.2	%		16,106			50.1	%
Total earning assets		10,608,954			10,550,744			10,211,974			58,210			0.6	%		396,980			3.9	%
Allowance for loan losses		(82,851	)		(78,227	)		(78,742	)		(4,624	)		5.9	%		(4,109	)		5.2	%
Cash and due from banks		284,754			272,925			275,051			11,829			4.3	%		9,703			3.5	%
Other assets		1,317,217			1,345,771			1,360,712			(28,554	)		-2.1	%		(43,495	)		-3.2	%
Total assets	$	12,128,074		$	12,091,213		$	11,768,995		$	36,861			0.3	%	$	359,079			3.1	%

Interest-bearing demand deposits	$	1,815,999		$	1,808,710		$	1,803,956		$	7,289			0.4	%	$	12,043			0.7	%
Savings deposits		2,963,771			3,050,743			2,952,472			(86,972	)		-2.9	%		11,299			0.4	%
Time deposits less than $100,000		1,152,622			1,187,794			1,344,488			(35,172	)		-3.0	%		(191,866	)		-14.3	%
Time deposits of $100,000 or more		838,309			874,333			961,075			(36,024	)		-4.1	%		(122,766	)		-12.8	%
Total interest-bearing deposits		6,770,701			6,921,580			7,061,991			(150,879	)		-2.2	%		(291,290	)		-4.1	%
Fed funds purchased and repos		526,482			540,870			361,758			(14,388	)		-2.7	%		164,724			45.5	%
Short-term borrowings		385,841			181,114			63,531			204,727			n/m			322,310			n/m
Long-term FHLB advances		2,652			8,050			8,507			(5,398	)		-67.1	%		(5,855	)		-68.8	%
Subordinated notes		49,931			49,923			49,898			8			0.0	%		33			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			-			0.0	%		-			0.0	%
Total interest-bearing liabilities		7,797,463			7,763,393			7,607,541			34,070			0.4	%		189,922			2.5	%
Noninterest-bearing deposits		2,762,332			2,774,745			2,611,209			(12,413	)		-0.4	%		151,123			5.8	%
Other liabilities		146,011			140,218			203,270			5,793			4.1	%		(57,259	)		-28.2	%
Total liabilities		10,705,806			10,678,356			10,422,020			27,450			0.3	%		283,786			2.7	%
Shareholders' equity		1,422,268			1,412,857			1,346,975			9,411			0.7	%		75,293			5.6	%
Total liabilities and equity	$	12,128,074		$	12,091,213		$	11,768,995		$	36,861			0.3	%	$	359,079			3.1	%

										Linked Quarter						Year over Year
PERIOD END BALANCES	12/31/2014			9/30/2014			12/31/2013			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	315,973		$	237,497		$	345,761		$	78,476			33.0	%	$	(29,788	)		-8.6	%
Fed funds sold and rev repos		1,885			4,013			7,253			(2,128	)		-53.0	%		(5,368	)		-74.0	%
Securities available for sale		2,374,567			2,363,895			2,194,154			10,672			0.5	%		180,413			8.2	%
Securities held to maturity		1,170,685			1,169,640			1,168,728			1,045			0.1	%		1,957			0.2	%
Loans held for sale (LHFS)		132,196			135,562			149,169			(3,366	)		-2.5	%		(16,973	)		-11.4	%
Loans held for investment (LHFI)		6,449,469			6,333,651			5,798,881			115,818			1.8	%		650,588			11.2	%
Allowance for loan losses		(69,616	)		(70,134	)		(66,448	)		518			-0.7	%		(3,168	)		4.8	%
Net LHFI		6,379,853			6,263,517			5,732,433			116,336			1.9	%		647,420			11.3	%
Acquired loans:
Noncovered loans		525,783			564,542			769,990			(38,759	)		-6.9	%		(244,207	)		-31.7	%
Covered loans		23,626			27,607			34,216			(3,981	)		-14.4	%		(10,590	)		-31.0	%
Allowance for loan losses, acquired loans		(12,059	)		(11,949	)		(9,636	)		(110	)		0.9	%		(2,423	)		25.1	%
Net acquired loans		537,350			580,200			794,570			(42,850	)		-7.4	%		(257,220	)		-32.4	%
Net LHFI and acquired loans		6,917,203			6,843,717			6,527,003			73,486			1.1	%		390,200			6.0	%
Premises and equipment, net		200,781			200,474			207,283			307			0.2	%		(6,502	)		-3.1	%
Mortgage servicing rights		64,358			67,090			67,834			(2,732	)		-4.1	%		(3,476	)		-5.1	%
Goodwill		365,500			365,500			372,851			-			0.0	%		(7,351	)		-2.0	%
Identifiable intangible assets		33,234			35,357			41,990			(2,123	)		-6.0	%		(8,756	)		-20.9	%
Other real estate, excluding covered other real estate		92,509			97,037			106,539			(4,528	)		-4.7	%		(14,030	)		-13.2	%
Covered other real estate		6,060			4,146			5,108			1,914			46.2	%		952			18.6	%
FDIC indemnification asset		6,997			8,154			14,347			(1,157	)		-14.2	%		(7,350	)		-51.2	%
Other assets		568,685			564,234			582,363			4,451			0.8	%		(13,678	)		-2.3	%
Total assets	$	12,250,633		$	12,096,316		$	11,790,383		$	154,317			1.3	%	$	460,250			3.9	%

Deposits:
Noninterest-bearing	$	2,748,635		$	2,723,480		$	2,663,503		$	25,155			0.9	%	$	85,132			3.2	%
Interest-bearing		6,949,723			6,789,745			7,196,399			159,978			2.4	%		(246,676	)		-3.4	%
Total deposits		9,698,358			9,513,225			9,859,902			185,133			1.9	%		(161,544	)		-1.6	%
Fed funds purchased and repos		443,543			607,851			251,587			(164,308	)		-27.0	%		191,956			76.3	%
Short-term borrowings		425,077			316,666			66,385			108,411			34.2	%		358,692			n/m
Long-term FHLB advances		1,253			8,003			8,458			(6,750	)		-84.3	%		(7,205	)		-85.2	%
Subordinated notes		49,936			49,928			49,904			8			0.0	%		32			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			-			0.0	%		-			0.0	%
Other liabilities		150,670			123,689			137,338			26,981			21.8	%		13,332			9.7	%
Total liabilities		10,830,693			10,681,218			10,435,430			149,475			1.4	%		395,263			3.8	%
Common stock		14,060			14,051			14,038			9			0.1	%		22			0.2	%
Capital surplus		356,244			354,251			349,680			1,993			0.6	%		6,564			1.9	%
Retained earnings		1,092,120			1,081,161			1,034,966			10,959			1.0	%		57,154			5.5	%
Accum other comprehensive
loss, net of tax		(42,484	)		(34,365	)		(43,731	)		(8,119	)		23.6	%		1,247			-2.9	%
Total shareholders' equity		1,419,940			1,415,098			1,354,953			4,842			0.3	%		64,987			4.8	%
Total liabilities and equity	$	12,250,633		$	12,096,316		$	11,790,383		$	154,317			1.3	%	$	460,250			3.9	%

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2014

($ in thousands except per share data)

(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
INCOME STATEMENTS	12/31/2014			9/30/2014			12/31/2013			$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	70,775		$	70,197		$	67,038		$	578			0.8	%	$	3,737			5.6	%
Interest and fees on acquired loans		13,500			23,200			23,384			(9,700	)		-41.8	%		(9,884	)		-42.3	%
Interest on securities-taxable		21,694			19,712			19,078			1,982			10.1	%		2,616			13.7	%
Interest on securities-tax exempt-FTE		1,814			1,845			1,963			(31	)		-1.7	%		(149	)		-7.6	%
Interest on fed funds sold and rev repos		3			9			14			(6	)		-66.7	%		(11	)		-78.6	%
Other interest income		384			386			367			(2	)		-0.5	%		17			4.6	%
Total interest income-FTE		108,170			115,349			111,844			(7,179	)		-6.2	%		(3,674	)		-3.3	%
Interest on deposits		3,382			3,606			4,768			(224	)		-6.2	%		(1,386	)		-29.1	%
Interest on fed funds pch and repos		184			180			104			4			2.2	%		80			76.9	%
Other interest expense		1,510			1,425			1,370			85			6.0	%		140			10.2	%
Total interest expense		5,076			5,211			6,242			(135	)		-2.6	%		(1,166	)		-18.7	%
Net interest income-FTE		103,094			110,138			105,602			(7,044	)		-6.4	%		(2,508	)		-2.4	%
Provision for loan losses, LHFI		(1,393	)		3,058			(1,983	)		(4,451	)		n/m			590			-29.8	%
Provision for loan losses, acquired loans		1,179			1,145			4,169			34			3.0	%		(2,990	)		-71.7	%
Net interest income after provision-FTE		103,308			105,935			103,416			(2,627	)		-2.5	%		(108	)		-0.1	%
Service charges on deposit accounts		12,514			12,743			13,114			(229	)		-1.8	%		(600	)		-4.6	%
Insurance commissions		7,831			9,240			7,343			(1,409	)		-15.2	%		488			6.6	%
Wealth management		8,460			8,038			8,145			422			5.3	%		315			3.9	%
Bank card and other fees		6,712			7,279			9,580			(567	)		-7.8	%		(2,868	)		-29.9	%
Mortgage banking, net		5,918			5,842			5,186			76			1.3	%		732			14.1	%
Other, net		596			(160	)		(4,802	)		756			n/m			5,398			n/m
Nonint inc-excl sec gains (losses), net		42,031			42,982			38,566			(951	)		-2.2	%		3,465			9.0	%
Security gains (losses), net		-			(89	)		107			89			-100.0	%		(107	)		-100.0	%
Total noninterest income		42,031			42,893			38,673			(862	)		-2.0	%		3,358			8.7	%
Salaries and employee benefits		57,159			56,675			56,687			484			0.9	%		472			0.8	%
Services and fees		14,401			14,489			14,476			(88	)		-0.6	%		(75	)		-0.5	%
Net occupancy-premises		6,632			6,817			6,659			(185	)		-2.7	%		(27	)		-0.4	%
Equipment expense		5,911			5,675			6,400			236			4.2	%		(489	)		-7.6	%
FDIC assessment expense		2,669			2,644			2,228			25			0.9	%		441			19.8	%
ORE/Foreclosure expense		3,240			930			3,009			2,310			n/m			231			7.7	%
Other expense		14,420			12,964			15,408			1,456			11.2	%		(988	)		-6.4	%
Total noninterest expense		104,432			100,194			104,867			4,238			4.2	%		(435	)		-0.4	%
Income before income taxes and tax eq adj		40,907			48,634			37,222			(7,727	)		-15.9	%		3,685			9.9	%
Tax equivalent adjustment		4,179			3,909			3,747			270			6.9	%		432			11.5	%
Income before income taxes		36,728			44,725			33,475			(7,997	)		-17.9	%		3,253			9.7	%
Income taxes		8,655			11,136			5,436			(2,481	)		-22.3	%		3,219			59.2	%
Net income	$	28,073		$	33,589		$	28,039		$	(5,516	)		-16.4	%	$	34			0.1	%

Per share data
Earnings per share - basic	$	0.42		$	0.50		$	0.42		$	(0.08	)		-16.0	%	$	-			0.0	%

Earnings per share - diluted	$	0.42		$	0.50		$	0.42		$	(0.08	)		-16.0	%	$	-			0.0	%

Dividends per share	$	0.23		$	0.23		$	0.23		$	-			0.0	%	$	-			0.0	%

Weighted average shares outstanding
Basic		67,445,721			67,439,788			67,249,877

Diluted		67,633,637			67,608,612			67,449,778

Period end shares outstanding		67,481,992			67,439,788			67,372,980

OTHER FINANCIAL DATA
Return on equity		7.83	%		9.43	%		8.26	%
Return on average tangible equity		11.40	%		13.70	%		12.59	%
Return on assets		0.92	%		1.10	%		0.95	%
Interest margin - Yield - FTE		4.05	%		4.34	%		4.35	%
Interest margin - Cost		0.19	%		0.20	%		0.24	%
Net interest margin - FTE		3.86	%		4.14	%		4.10	%
Efficiency ratio (1)		69.16	%		62.80	%		68.38	%
Full-time equivalent employees		3,060			3,067			3,110

STOCK PERFORMANCE
Market value-Close	$	24.54		$	23.04		$	26.84
Book value	$	21.04		$	20.98		$	20.11
Tangible book value	$	15.13		$	15.04		$	13.95

(1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of
partnership tax credits, amortization of purchased intangibles, and nonroutine income and expense items.

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2014

($ in thousands)

(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS (1)	12/31/2014			9/30/2014			12/31/2013			$ Change			% Change			$ Change			% Change
Nonaccrual loans
Alabama	$	852		$	852		$	14		$	-			0.0	%	$	838			n/m
Florida		11,091			10,986			12,278			105			1.0	%		(1,187	)		-9.7	%
Mississippi (2)		57,129			65,751			42,307			(8,622	)		-13.1	%		14,822			35.0	%
Tennessee (3)		5,819			5,901			4,390			(82	)		-1.4	%		1,429			32.6	%
Texas		4,452			4,824			6,249			(372	)		-7.7	%		(1,797	)		-28.8	%
Total nonaccrual loans		79,343			88,314			65,238			(8,971	)		-10.2	%		14,105			21.6	%
Other real estate
Alabama		21,196			24,256			25,912			(3,060	)		-12.6	%		(4,716	)		-18.2	%
Florida		35,324			36,608			34,480			(1,284	)		-3.5	%		844			2.4	%
Mississippi (2)		17,397			16,419			22,766			978			6.0	%		(5,369	)		-23.6	%
Tennessee (3)		10,292			11,347			12,892			(1,055	)		-9.3	%		(2,600	)		-20.2	%
Texas		8,300			8,407			10,489			(107	)		-1.3	%		(2,189	)		-20.9	%
Total other real estate		92,509			97,037			106,539			(4,528	)		-4.7	%		(14,030	)		-13.2	%
Total nonperforming assets	$	171,852		$	185,351		$	171,777		$	(13,499	)		-7.3	%	$	75			0.0	%

LOANS PAST DUE OVER 90 DAYS (4)
LHFI	$	2,764		$	3,839		$	3,298		$	(1,075	)		-28.0	%	$	(534	)		-16.2	%

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	25,943		$	24,979		$	21,540		$	964			3.9	%	$	4,403			20.4	%

	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES (4)	12/31/2014			9/30/2014			12/31/2013			$ Change			% Change			$ Change			% Change
Beginning Balance	$	70,134		$	66,648		$	68,632		$	3,486			5.2	%	$	1,502			2.2	%
Provision for loan losses		(1,393	)		3,058			(1,983	)		(4,451	)		n/m			590			-29.8	%
Charge-offs		(3,174	)		(3,216	)		(3,305	)		42			-1.3	%		131			-4.0	%
Recoveries		4,049			3,644			3,104			405			11.1	%		945			30.4	%
Net recoveries (charge-offs)		875			428			(201	)		447			n/m			1,076			n/m
Ending Balance	$	69,616		$	70,134		$	66,448		$	(518	)		-0.7	%	$	3,168			4.8	%

PROVISION FOR LOAN LOSSES (4)
Alabama	$	283		$	1,093		$	332		$	(810	)		-74.1	%	$	(49	)		-14.8	%
Florida		(66	)		(147	)		(2,350	)		81			-55.1	%		2,284			-97.2	%
Mississippi (2)		(3,065	)		4,679			3,336			(7,744	)		n/m			(6,401	)		n/m
Tennessee (3)		1,993			244			(117	)		1,749			n/m			2,110			n/m
Texas		(538	)		(2,811	)		(3,184	)		2,273			-80.9	%		2,646			-83.1	%
Total provision for loan losses	$	(1,393	)	$	3,058		$	(1,983	)	$	(4,451	)		n/m		$	590			-29.8	%

NET CHARGE-OFFS (4)
Alabama	$	92		$	172		$	74		$	(80	)		-46.5	%	$	18			24.3	%
Florida		(226	)		(89	)		(634	)		(137	)		n/m			408			-64.4	%
Mississippi (2)		(880	)		462			393			(1,342	)		n/m			(1,273	)		n/m
Tennessee (3)		325			48			506			277			n/m			(181	)		-35.8	%
Texas		(186	)		(1,021	)		(138	)		835			-81.8	%		(48	)		34.8	%
Total net (recoveries) charge-offs	$	(875	)	$	(428	)	$	201		$	(447	)		n/m		$	(1,076	)		n/m

CREDIT QUALITY RATIOS (1)
Net charge offs/average loans		-0.05	%		-0.03	%		0.01	%
Provision for loan losses/average loans		-0.09	%		0.19	%		-0.13	%
Nonperforming loans/total loans (incl LHFS)		1.21	%		1.37	%		1.10	%
Nonperforming assets/total loans (incl LHFS)		2.61	%		2.87	%		2.89	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.57	%		2.82	%		2.84	%
ALL/total loans (excl LHFS)		1.08	%		1.11	%		1.15	%
ALL-commercial/total commercial loans		1.23	%		1.26	%		1.30	%
ALL-consumer/total consumer and home mortgage loans		0.67	%		0.69	%		0.75	%
ALL/nonperforming loans		87.74	%		79.41	%		101.86	%
ALL/nonperforming loans -
(excl impaired loans)		180.95	%		178.81	%		190.70	%

CAPITAL RATIOS
Total equity/total assets		11.59	%		11.70	%		11.49	%
Tangible equity/tangible assets		8.62	%		8.67	%		8.26	%
Tangible equity/risk-weighted assets		12.17	%		12.24	%		11.88	%
Tier 1 leverage ratio		9.63	%		9.54	%		9.06	%
Tier 1 common risk-based capital ratio		12.75	%		12.74	%		12.21	%
Tier 1 risk-based capital ratio		13.47	%		13.47	%		12.97	%
Total risk-based capital ratio		14.56	%		14.70	%		14.18	%

(1) - Excludes Acquired Loans and Covered Other Real Estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes Acquired Loans

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2014

($ in thousands)

(unaudited)

	Quarter Ended															Year Ended
AVERAGE BALANCES	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
Securities AFS-taxable	$	2,204,361		$	2,202,020		$	2,205,352		$	2,136,392		$	3,026,186		$	2,187,258		$	3,101,245
Securities AFS-nontaxable		129,403			131,305			135,956			149,744			160,989			136,532			168,190
Securities HTM-taxable		1,117,989			1,126,309			1,120,448			1,118,747			265,792			1,120,886			108,778
Securities HTM-nontaxable		42,040			43,114			43,551			31,039			21,172			39,975			15,092
Total securities		3,493,793			3,502,748			3,505,307			3,435,922			3,474,139			3,484,651			3,393,305
Loans (including loans held for sale)		6,494,369			6,387,251			6,160,781			5,950,720			5,847,557			6,250,151			5,777,401
Acquired loans:
Noncovered loans		544,260			585,675			664,733			751,723			812,426			635,890			796,358
Covered loans		27,039			28,971			31,122			33,805			34,640			30,212			41,812
Fed funds sold and rev repos		1,269			4,228			2,648			6,460			11,094			3,638			8,388
Other earning assets		48,224			41,871			36,259			36,820			32,118			40,828			34,941
Total earning assets		10,608,954			10,550,744			10,400,850			10,215,450			10,211,974			10,445,370			10,052,205
Allowance for loan losses		(82,851	)		(78,227	)		(77,652	)		(79,736	)		(78,742	)		(79,621	)		(82,336	)
Cash and due from banks		284,754			272,925			304,441			407,078			275,051			316,843			275,545
Other assets		1,317,217			1,345,771			1,343,384			1,376,024			1,360,712			1,345,438			1,285,555
Total assets	$	12,128,074		$	12,091,213		$	11,971,023		$	11,918,816		$	11,768,995		$	12,028,030		$	11,530,969

Interest-bearing demand deposits	$	1,815,999		$	1,808,710		$	1,826,019		$	1,900,504		$	1,803,956		$	1,837,496		$	1,790,687
Savings deposits		2,963,771			3,050,743			3,260,634			3,193,098			2,952,472			3,116,251			2,944,588
Time deposits less than $100,000		1,152,622			1,187,794			1,225,706			1,280,513			1,344,488			1,211,242			1,353,643
Time deposits of $100,000 or more		838,309			874,333			911,531			947,509			961,075			892,571			969,660
Total interest-bearing deposits		6,770,701			6,921,580			7,223,890			7,321,624			7,061,991			7,057,560			7,058,578
Fed funds purchased and repos		526,482			540,870			387,289			282,816			361,758			435,324			326,870
Short-term borrowings		385,841			181,114			59,465			65,010			63,531			173,759			60,381
Long-term FHLB advances		2,652			8,050			8,291			8,406			8,507			6,837			7,833
Subordinated notes		49,931			49,923			49,915			49,907			49,898			49,919			49,886
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			70,971
Total interest-bearing liabilities		7,797,463			7,763,393			7,790,706			7,789,619			7,607,541			7,785,255			7,574,519
Noninterest-bearing deposits		2,762,332			2,774,745			2,676,907			2,630,785			2,611,209			2,711,727			2,436,470
Other liabilities		146,011			140,218			111,170			130,749			203,270			132,103			182,383
Total liabilities		10,705,806			10,678,356			10,578,783			10,551,153			10,422,020			10,629,085			10,193,372
Shareholders' equity		1,422,268			1,412,857			1,392,240			1,367,663			1,346,975			1,398,945			1,337,597
Total liabilities and equity	$	12,128,074		$	12,091,213		$	11,971,023		$	11,918,816		$	11,768,995		$	12,028,030		$	11,530,969

PERIOD END BALANCES	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Cash and due from banks	$	315,973		$	237,497		$	322,960		$	423,819		$	345,761
Fed funds sold and rev repos		1,885			4,013			5,000			-			7,253
Securities available for sale		2,374,567			2,363,895			2,376,431			2,382,441			2,194,154
Securities held to maturity		1,170,685			1,169,640			1,156,790			1,155,569			1,168,728
Loans held for sale (LHFS)		132,196			135,562			142,103			120,446			149,169
Loans held for investment (LHFI)		6,449,469			6,333,651			6,187,000			5,923,766			5,798,881
Allowance for loan losses		(69,616	)		(70,134	)		(66,648	)		(67,518	)		(66,448	)
Net LHFI		6,379,853			6,263,517			6,120,352			5,856,248			5,732,433
Acquired loans:
Noncovered loans		525,783			564,542			616,911			713,647			769,990
Covered loans		23,626			27,607			29,628			32,670			34,216
Allowance for loan losses, acquired loans		(12,059	)		(11,949	)		(11,179	)		(10,540	)		(9,636	)
Net acquired loans		537,350			580,200			635,360			735,777			794,570
Net LHFI and acquired loans		6,917,203			6,843,717			6,755,712			6,592,025			6,527,003
Premises and equipment, net		200,781			200,474			201,639			203,771			207,283
Mortgage servicing rights		64,358			67,090			65,049			67,614			67,834
Goodwill		365,500			365,500			365,500			365,500			372,851
Identifiable intangible assets		33,234			35,357			37,506			39,697			41,990
Other real estate, excluding covered other real estate		92,509			97,037			106,970			111,536			106,539
Covered other real estate		6,060			4,146			3,872			4,759			5,108
FDIC indemnification asset		6,997			8,154			10,866			13,487			14,347
Other assets		568,685			564,234			569,598			576,390			582,363
Total assets	$	12,250,633		$	12,096,316		$	12,119,996		$	12,057,054		$	11,790,383

Deposits:
Noninterest-bearing	$	2,748,635		$	2,723,480		$	2,729,199		$	2,879,341		$	2,663,503
Interest-bearing		6,949,723			6,789,745			7,131,167			7,242,778			7,196,399
Total deposits		9,698,358			9,513,225			9,860,366			10,122,119			9,859,902
Fed funds purchased and repos		443,543			607,851			559,316			259,341			251,587
Short-term borrowings		425,077			316,666			61,227			59,671			66,385
Long-term FHLB advances		1,253			8,003			8,236			8,341			8,458
Subordinated notes		49,936			49,928			49,920			49,912			49,904
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
Other liabilities		150,670			123,689			119,184			121,919			137,338
Total liabilities		10,830,693			10,681,218			10,720,105			10,683,159			10,435,430
Common stock		14,060			14,051			14,051			14,051			14,038
Capital surplus		356,244			354,251			353,196			352,402			349,680
Retained earnings		1,092,120			1,081,161			1,063,201			1,045,939			1,034,966
Accum other comprehensive
loss, net of tax		(42,484	)		(34,365	)		(30,557	)		(38,497	)		(43,731	)
Total shareholders' equity		1,419,940			1,415,098			1,399,891			1,373,895			1,354,953
Total liabilities and equity	$	12,250,633		$	12,096,316		$	12,119,996		$	12,057,054		$	11,790,383

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2014

($ in thousands except per share data)

(unaudited)

	Quarter Ended															Year Ended
INCOME STATEMENTS	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
Interest and fees on LHFS & LHFI-FTE	$	70,775		$	70,197		$	69,618		$	66,185		$	67,038		$	276,775		$	270,617
Interest and fees on acquired loans		13,500			23,200			23,250			16,786			23,384			76,736			76,336
Interest on securities-taxable		21,694			19,712			19,522			19,220			19,078			80,148			72,818
Interest on securities-tax exempt-FTE		1,814			1,845			1,912			1,920			1,963			7,491			7,915
Interest on fed funds sold and rev repos		3			9			6			5			14			23			31
Other interest income		384			386			379			375			367			1,524			1,466
Total interest income-FTE		108,170			115,349			114,687			104,491			111,844			442,697			429,183
Interest on deposits		3,382			3,606			3,970			4,365			4,768			15,323			19,718
Interest on fed funds pch and repos		184			180			110			76			104			550			379
Other interest expense		1,510			1,425			1,375			1,363			1,370			5,673			5,762
Total interest expense		5,076			5,211			5,455			5,804			6,242			21,546			25,859
Net interest income-FTE		103,094			110,138			109,232			98,687			105,602			421,151			403,324
Provision for loan losses, LHFI		(1,393	)		3,058			351			(805	)		(1,983	)		1,211			(13,421	)
Provision for loan losses, acquired loans		1,179			1,145			3,784			63			4,169			6,171			6,039
Net interest income after provision-FTE		103,308			105,935			105,097			99,429			103,416			413,769			410,706
Service charges on deposit accounts		12,514			12,743			11,846			11,568			13,114			48,671			51,576
Insurance commissions		7,831			9,240			8,300			8,097			7,343			33,468			30,826
Wealth management		8,460			8,038			7,710			8,135			8,145			32,343			29,480
Bank card and other fees		6,712			7,279			9,894			9,081			9,580			32,966			35,961
Mortgage banking, net		5,918			5,842			6,191			6,829			5,186			24,780			33,504
Other, net		596			(160	)		199			(21	)		(4,802	)		614			(7,973	)
Nonint inc-excl sec gains (losses), net		42,031			42,982			44,140			43,689			38,566			172,842			173,374
Security gains (losses), net		-			(89	)		-			389			107			300			485
Total noninterest income		42,031			42,893			44,140			44,078			38,673			173,142			173,859
Salaries and employee benefits		57,159			56,675			56,134			56,726			56,687			226,694			221,727
Services and fees		14,401			14,489			14,543			13,165			14,476			56,598			53,904
Net occupancy-premises		6,632			6,817			6,413			6,606			6,659			26,468			25,961
Equipment expense		5,911			5,675			6,136			6,138			6,400			23,860			24,538
FDIC assessment expense		2,669			2,644			2,468			2,416			2,228			10,197			9,001
ORE/Foreclosure expense		3,240			930			3,836			3,315			3,009			11,321			15,039
Other expense		14,420			12,964			13,231			13,252			15,408			53,867			65,561
Total noninterest expense		104,432			100,194			102,761			101,618			104,867			409,005			415,731
Income before income taxes and tax eq adj		40,907			48,634			46,476			41,889			37,222			177,906			168,834
Tax equivalent adjustment		4,179			3,909			3,944			3,783			3,747			15,815			14,837
Income before income taxes		36,728			44,725			42,532			38,106			33,475			162,091			153,997
Income taxes		8,655			11,136			9,635			9,103			5,436			38,529			36,937
Net income	$	28,073		$	33,589		$	32,897		$	29,003		$	28,039		$	123,562		$	117,060

Per share data
Earnings per share - basic	$	0.42		$	0.50		$	0.49		$	0.43		$	0.42		$	1.83		$	1.75

Earnings per share - diluted	$	0.42		$	0.50		$	0.49		$	0.43		$	0.42		$	1.83		$	1.75

Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.92		$	0.92

Weighted average shares outstanding
Basic		67,445,721			67,439,788			67,439,659			67,410,147			67,249,877			67,433,942			66,897,404

Diluted		67,633,637			67,608,612			67,582,714			67,550,483			67,449,778			67,594,010			67,073,072

Period end shares outstanding		67,481,992			67,439,788			67,439,788			67,439,562			67,372,980			67,481,992			67,372,980


OTHER FINANCIAL DATA
Return on equity		7.83	%		9.43	%		9.48	%		8.60	%		8.26	%		8.83	%		8.75	%
Return on average tangible equity		11.40	%		13.70	%		13.90	%		12.93	%		12.59	%		12.97	%		13.09	%
Return on assets		0.92	%		1.10	%		1.10	%		0.99	%		0.95	%		1.03	%		1.02	%
Interest margin - Yield - FTE		4.05	%		4.34	%		4.42	%		4.15	%		4.35	%		4.24	%		4.27	%
Interest margin - Cost		0.19	%		0.20	%		0.21	%		0.23	%		0.24	%		0.21	%		0.26	%
Net interest margin - FTE		3.86	%		4.14	%		4.21	%		3.92	%		4.10	%		4.03	%		4.01	%
Efficiency ratio (1)		69.16	%		62.80	%		64.31	%		68.32	%		68.38	%		66.07	%		66.81	%
Full-time equivalent employees		3,060			3,067			3,095			3,114			3,110


STOCK PERFORMANCE
Market value-Close	$	24.54		$	23.04		$	24.69		$	25.35		$	26.84
Book value	$	21.04		$	20.98		$	20.76		$	20.37		$	20.11
Tangible book value	$	15.13		$	15.04		$	14.78		$	14.36		$	13.95

(1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of
partnership tax credits, amortization of purchased intangibles, and nonroutine income and expense items.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2014

($ in thousands)

(unaudited)

	Quarter Ended
NONPERFORMING ASSETS (1)	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Nonaccrual loans
Alabama	$	852		$	852		$	80		$	96		$	14
Florida		11,091			10,986			11,041			9,956			12,278
Mississippi (2)		57,129			65,751			49,430			44,168			42,307
Tennessee (3)		5,819			5,901			4,244			5,206			4,390
Texas		4,452			4,824			6,323			4,572			6,249
Total nonaccrual loans		79,343			88,314			71,118			63,998			65,238
Other real estate
Alabama		21,196			24,256			24,541			24,103			25,912
Florida		35,324			36,608			43,207			42,013			34,480
Mississippi (2)		17,397			16,419			18,723			22,287			22,766
Tennessee (3)		10,292			11,347			12,073			13,000			12,892
Texas		8,300			8,407			8,426			10,133			10,489
Total other real estate		92,509			97,037			106,970			111,536			106,539
Total nonperforming assets	$	171,852		$	185,351		$	178,088		$	175,534		$	171,777

LOANS PAST DUE OVER 90 DAYS (4)
LHFI	$	2,764		$	3,839		$	1,936		$	1,870		$	3,298

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	25,943		$	24,979		$	21,810		$	20,109		$	21,540


	Quarter Ended															Year Ended
ALLOWANCE FOR LOAN LOSSES (4)	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
Beginning Balance	$	70,134		$	66,648		$	67,518		$	66,448		$	68,632		$	66,448		$	78,738
Provision for loan losses		(1,393	)		3,058			351			(805	)		(1,983	)		1,211			(13,421	)
Charge-offs		(3,174	)		(3,216	)		(3,820	)		(3,016	)		(3,305	)		(13,226	)		(13,478	)
Recoveries		4,049			3,644			2,599			4,891			3,104			15,183			14,609
Net recoveries (charge-offs)		875			428			(1,221	)		1,875			(201	)		1,957			1,131
Ending Balance	$	69,616		$	70,134		$	66,648		$	67,518		$	66,448		$	69,616		$	66,448

PROVISION FOR LOAN LOSSES (4)
Alabama	$	283		$	1,093		$	696		$	472		$	332		$	2,544		$	1,790
Florida		(66	)		(147	)		(2,014	)		(3,499	)		(2,350	)		(5,726	)		(12,092	)
Mississippi (2)		(3,065	)		4,679			2,877			1,983			3,336			6,474			(155	)
Tennessee (3)		1,993			244			(277	)		(915	)		(117	)		1,045			(980	)
Texas		(538	)		(2,811	)		(931	)		1,154			(3,184	)		(3,126	)		(1,984	)
Total provision for loan losses	$	(1,393	)	$	3,058		$	351		$	(805	)	$	(1,983	)	$	1,211		$	(13,421	)

NET CHARGE-OFFS (4)
Alabama	$	92		$	172		$	84		$	55		$	74		$	403		$	284
Florida		(226	)		(89	)		(525	)		(2,524	)		(634	)		(3,364	)		(3,047	)
Mississippi (2)		(880	)		462			1,518			676			393			1,776			769
Tennessee (3)		325			48			87			(1	)		506			459			705
Texas		(186	)		(1,021	)		57			(81	)		(138	)		(1,231	)		158
Total net (recoveries) charge-offs	$	(875	)	$	(428	)	$	1,221		$	(1,875	)	$	201		$	(1,957	)	$	(1,131	)

CREDIT QUALITY RATIOS (1)
Net charge offs/average loans		-0.05	%		-0.03	%		0.08	%		-0.13	%		0.01	%		-0.03	%		-0.02	%
Provision for loan losses/average loans		-0.09	%		0.19	%		0.02	%		-0.05	%		-0.13	%		0.02	%		-0.23	%
Nonperforming loans/total loans (incl LHFS)		1.21	%		1.37	%		1.12	%		1.06	%		1.10	%
Nonperforming assets/total loans (incl LHFS)		2.61	%		2.87	%		2.81	%		2.90	%		2.89	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.57	%		2.82	%		2.77	%		2.85	%		2.84	%
ALL/total loans (excl LHFS)		1.08	%		1.11	%		1.08	%		1.14	%		1.15	%
ALL-commercial/total commercial loans		1.23	%		1.26	%		1.20	%		1.33	%		1.30	%
ALL-consumer/total consumer and home mortgage loans		0.67	%		0.69	%		0.75	%		0.65	%		0.75	%
ALL/nonperforming loans		87.74	%		79.41	%		93.71	%		105.50	%		101.86	%
ALL/nonperforming loans -
(excl impaired loans)		180.95	%		178.81	%		159.71	%		180.86	%		190.70	%

CAPITAL RATIOS
Total equity/total assets		11.59	%		11.70	%		11.55	%		11.39	%		11.49	%
Tangible equity/tangible assets		8.62	%		8.67	%		8.51	%		8.31	%		8.26	%
Tangible equity/risk-weighted assets		12.17	%		12.24	%		12.19	%		12.08	%		11.88	%
Tier 1 leverage ratio		9.63	%		9.54	%		9.43	%		9.14	%		9.06	%
Tier 1 common risk-based capital ratio		12.75	%		12.74	%		12.61	%		12.37	%		12.21	%
Tier 1 risk-based capital ratio		13.47	%		13.47	%		13.34	%		13.11	%		12.97	%
Total risk-based capital ratio		14.56	%		14.70	%		14.54	%		14.34	%		14.18	%


(1) - Excludes Acquired Loans and Covered Other Real Estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes Acquired Loans

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2014

($ 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 ($ in thousands):

	12/31/2014		9/30/2014		6/30/2014		3/31/2014		12/31/2013
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	100	$	100	$	100	$	100	$	502
U.S. Government agency obligations
Issued by U.S. Government agencies		79,656		83,011		117,489		123,368		129,293
Issued by U.S. Government sponsored agencies		32,818		30,779		40,848		40,601		40,179
Obligations of states and political subdivisions		162,258		165,463		171,229		172,437		171,738
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		12,427		12,828		13,492		14,263		14,474
Issued by FNMA and FHLMC		204,441		213,420		225,229		232,488		241,118
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		1,661,833		1,603,138		1,543,619		1,530,068		1,290,741
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		189,334		221,641		229,283		232,072		242,172
Asset-backed securities and structured financial products		31,700		33,515		35,142		37,044		63,937
Total securities available for sale	$	2,374,567	$	2,363,895	$	2,376,431	$	2,382,441	$	2,194,154

SECURITIES HELD TO MATURITY
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	100,971	$	100,767	$	100,563	$	100,361	$	100,159
Obligations of states and political subdivisions		63,505		64,538		65,193		65,757		65,987
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		19,115		13,368		13,959		12,177		9,433
Issued by FNMA and FHLMC		11,437		11,816		12,165		12,395		12,724
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		834,176		836,966		822,444		822,135		837,393
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		141,481		142,185		142,466		142,744		143,032
Total securities held to maturity	$	1,170,685	$	1,169,640	$	1,156,790	$	1,155,569	$	1,168,728

During the fourth quarter of 2013, Trustmark reclassified approximately $1.099 billion 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 $46.6 million ($28.8 million, net of tax). The net unrealized holding loss is 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 December 31, 2014, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive (loss) income in the accompanying balance sheet totaled approximately $40.4 million ($24.9 million, net of tax).

During the fourth quarter of 2013, Trustmark sold $135.6 million of Collateralized Loan Obligations (CLO) generating a net gain of $1.3 million. These securities were identified as available for sale and had been carried in the asset-backed securities and structured financial products line item in the table shown above. This sale left Trustmark with a CLO balance of $25.9 million at December 31, 2013, which was subsequently sold in its entirety for a gain of $389 thousand in January 2014.

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of approximately 93% 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.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2014

($ in thousands)

(unaudited)

Note 2 – Loan Composition

LHFI BY TYPE (excluding acquired loans)	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Loans secured by real estate:
Construction, land development and other land loans	$	619,877		$	580,794		$	531,651		$	592,658		$	596,889
Secured by 1-4 family residential properties		1,634,397			1,625,480			1,581,859			1,533,781			1,485,564
Secured by nonfarm, nonresidential properties		1,553,193			1,560,901			1,544,516			1,461,947			1,415,139
Other real estate secured		253,787			239,819			250,383			193,221			189,362
Commercial and industrial loans		1,270,350			1,246,753			1,250,146			1,207,367			1,157,614
Consumer loans		167,964			168,813			165,372			160,153			165,308
Other loans		949,901			911,091			863,073			774,639			789,005
LHFI		6,449,469			6,333,651			6,187,000			5,923,766			5,798,881
Allowance for loan losses		(69,616	)		(70,134	)		(66,648	)		(67,518	)		(66,448	)
Net LHFI	$	6,379,853		$	6,263,517		$	6,120,352		$	5,856,248		$	5,732,433

ACQUIRED NONCOVERED LOANS BY TYPE	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Loans secured by real estate:
Construction, land development and other land loans	$	58,309		$	64,808		$	75,353		$	88,683		$	98,928
Secured by 1-4 family residential properties		116,920			120,366			133,191			145,213			157,914
Secured by nonfarm, nonresidential properties		202,323			214,806			226,967			271,696			287,136
Other real estate secured		27,813			28,036			30,918			34,787			33,948
Commercial and industrial loans		88,256			103,185			114,212			135,114			149,495
Consumer loans		9,772			11,236			14,733			15,024			18,428
Other loans		22,390			22,105			21,537			23,130			24,141
Noncovered loans		525,783			564,542			616,911			713,647			769,990
Allowance for loan losses		(10,541	)		(11,136	)		(9,770	)		(9,952	)		(7,249	)
Net noncovered loans	$	515,242		$	553,406		$	607,141		$	703,695		$	762,741

ACQUIRED COVERED LOANS BY TYPE	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Loans secured by real estate:
Construction, land development and other land loans	$	1,197		$	1,721		$	2,130		$	2,239		$	2,363
Secured by 1-4 family residential properties		13,180			14,114			14,565			15,572			16,416
Secured by nonfarm, nonresidential properties		7,672			8,270			8,831			10,629			10,945
Other real estate secured		1,096			2,949			2,376			2,470			2,644
Commercial and industrial loans		277			327			336			361			394
Consumer loans		-			-			-			49			119
Other loans		204			226			1,390			1,350			1,335
Covered loans		23,626			27,607			29,628			32,670			34,216
Allowance for loan losses		(1,518	)		(813	)		(1,409	)		(588	)		(2,387	)
Net covered loans	$	22,108		$	26,794		$	28,219		$	32,082		$	31,829

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2014

($ in thousands)

(unaudited)

Note 2 – Loan Composition (continued)
	December 31, 2014
LHFI - COMPOSITION BY REGION (1)	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	$	619,877	$	65,331	$	61,688	$	236,571	$	44,165	$	212,122
Secured by 1-4 family residential properties		1,634,397		41,779		51,169		1,396,497		127,872		17,080
Secured by nonfarm, nonresidential properties		1,553,193		91,507		168,941		776,102		150,489		366,154
Other real estate secured		253,787		13,017		4,438		174,275		26,653		35,404
Commercial and industrial loans		1,270,350		84,244		10,881		820,428		95,117		259,680
Consumer loans		167,964		16,483		2,307		129,489		16,990		2,695
Other loans		949,901		56,204		46,156		690,005		59,517		98,019
Loans	$	6,449,469	$	368,565	$	345,580	$	4,223,367	$	520,803	$	991,154



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION (1)
Lots	$	48,056	$	4,697	$	24,764	$	13,402	$	1,975	$	3,218
Development		50,745		764		6,997		33,732		920		8,332
Unimproved land		114,106		6,607		22,619		50,104		22,744		12,032
1-4 family construction		136,693		22,108		7,160		69,888		3,926		33,611
Other construction		270,277		31,155		148		69,445		14,600		154,929
Construction, land development and other land loans	$	619,877	$	65,331	$	61,688	$	236,571	$	44,165	$	212,122




LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION (1)
Income producing:
Retail	$	189,291	$	19,701	$	41,904	$	63,464	$	16,887	$	47,335
Office		202,804		10,254		41,803		81,629		8,089		61,029
Nursing homes/assisted living		114,769		-		-		89,654		5,974		19,141
Hotel/motel		111,998		11,700		18,013		38,238		33,934		10,113
Industrial		46,423		5,409		4,892		11,581		1,130		23,411
Health care		25,949		2,414		-		23,498		37		-
Convenience stores		10,679		245		-		5,491		1,238		3,705
Other		147,212		4,942		18,269		67,990		9,054		46,957
Total income producing loans		849,125		54,665		124,881		381,545		76,343		211,691

Owner-occupied:
Office		128,248		6,554		16,831		63,820		10,617		30,426
Churches		98,364		3,839		3,195		49,382		31,599		10,349
Industrial warehouses		116,876		3,338		4,037		62,513		7,677		39,311
Health care		112,555		14,333		8,535		63,308		7,519		18,860
Convenience stores		50,561		504		1,546		32,873		2,766		12,872
Retail		38,566		2,014		4,101		25,754		3,339		3,358
Restaurants		31,566		1,621		1,984		23,147		3,613		1,201
Auto dealerships		7,847		-		100		6,196		1,529		22
Other		119,485		4,639		3,731		67,564		5,487		38,064
Total owner-occupied loans		704,068		36,842		44,060		394,557		74,146		154,463
Loans secured by nonfarm, nonresidential properties	$	1,553,193	$	91,507	$	168,941	$	776,102	$	150,489	$	366,154

(1) Excludes acquired loans.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2014

($ 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															Year Ended
	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
Securities – taxable		2.59	%		2.35	%		2.35	%		2.39	%		2.30	%		2.42	%		2.27	%
Securities – nontaxable		4.20	%		4.20	%		4.27	%		4.31	%		4.28	%		4.24	%		4.32	%
Securities – total		2.67	%		2.44	%		2.45	%		2.50	%		2.40	%		2.52	%		2.38	%
Loans - LHFI & LHFS		4.32	%		4.36	%		4.53	%		4.51	%		4.55	%		4.43	%		4.68	%
Acquired loans		9.38	%		14.98	%		13.40	%		8.67	%		10.95	%		11.52	%		9.11	%
Loans - total		4.73	%		5.29	%		5.43	%		5.00	%		5.36	%		5.11	%		5.24	%
FF sold & rev repo		0.94	%		0.84	%		0.91	%		0.31	%		0.50	%		0.63	%		0.37	%
Other earning assets		3.16	%		3.66	%		4.19	%		4.13	%		4.53	%		3.73	%		4.20	%
Total earning assets		4.05	%		4.34	%		4.42	%		4.15	%		4.35	%		4.24	%		4.27	%

Interest-bearing deposits		0.20	%		0.21	%		0.22	%		0.24	%		0.27	%		0.22	%		0.28	%
FF pch & repo		0.14	%		0.13	%		0.11	%		0.11	%		0.11	%		0.13	%		0.12	%
Other borrowings		1.20	%		1.88	%		3.07	%		2.99	%		2.96	%		1.94	%		3.05	%
Total interest-bearing liabilities		0.26	%		0.27	%		0.28	%		0.30	%		0.33	%		0.28	%		0.34	%

Net interest margin		3.86	%		4.14	%		4.21	%		3.92	%		4.10	%		4.03	%		4.01	%
Net interest margin excluding acquired loans		3.54	%		3.47	%		3.55	%		3.52	%		3.48	%		3.52	%		3.55	%

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 acquired loans, which equals reported net interest income-FTE excluding interest income on acquired loans, annualized, as a percent of average earning assets excluding average acquired loans. The net interest margin decreased 28 basis points during the fourth quarter of 2014 primarily due to a decline in recoveries on acquired loans from $8.7 million during the third quarter of 2014 to $2.0 million during the fourth quarter of 2014, which was partially offset by yield maintenance payments on prepaid securities of $2.2 million.

Excluding the recoveries on acquired loans, the yield on average acquired loans totaled 8.0% during the fourth quarter of 2014. The net interest margin, excluding acquired loans and yield maintenance payments on prepaid securities, totaled 3.46% during the fourth quarter of 2014.

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 positive ineffectiveness of $61 thousand and $1.0 million for the quarters ended December 31, 2014 and 2013, respectively.

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

	Quarter Ended															Year Ended
	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
Mortgage servicing income, net	$	4,814		$	4,674		$	4,592		$	4,539		$	4,688		$	18,619		$	17,892
Change in fair value-MSR from runoff		(1,999	)		(2,364	)		(2,391	)		(1,812	)		(2,182	)		(8,566	)		(9,805	)
Gain on sales of loans, net		2,910			3,272			2,749			1,839			2,202			10,770			26,429
Other, net		132			(323	)		695			400			(533	)		904			(4,719	)
Mortgage banking income before hedge ineffectiveness		5,857			5,259			5,645			4,966			4,175			21,727			29,797
Change in fair value-MSR from market changes		(4,142	)		700			(3,038	)		(723	)		3,937			(7,203	)		11,818
Change in fair value of derivatives		4,203			(117	)		3,584			2,586			(2,926	)		10,256			(8,111	)
Net positive hedge ineffectiveness		61			583			546			1,863			1,011			3,053			3,707
Mortgage banking, net	$	5,918		$	5,842		$	6,191		$	6,829		$	5,186		$	24,780		$	33,504

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2014

($ in thousands)

(unaudited)

Note 5 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented ($ in thousands):

	Quarter Ended															Year Ended
	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
Partnership amortization for tax credit purposes	$	(2,806	)	$	(3,006	)	$	(3,006	)	$	(3,006	)	$	(5,642	)	$	(11,824	)	$	(12,368	)
(Decrease) increase in FDIC indemnification asset		(735	)		(452	)		(999	)		(688	)		(2,429	)		(2,874	)		(5,900	)
Other miscellaneous income		4,137			3,298			4,204			3,673			3,269			15,312			10,295
Total other, net	$	596		$	(160	)	$	199		$	(21	)	$	(4,802	)	$	614		$	(7,973	)

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 or historical tax credits). These investments are recorded based on the equity method of accounting, which requires the equity in partnership losses to be recognized when incurred and are recorded as a reduction in other income. 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.

During the fourth quarter of 2014, other noninterest income included a write-down of the FDIC indemnification asset of $735 thousand on acquired covered loans obtained from Heritage as a result of loan pay-offs, improved cash flow projections and lower loss expectations for loan pools.

Other noninterest expense consisted of the following for the periods presented ($ in thousands):

	Quarter Ended										Year Ended
	12/31/2014		9/30/2014		6/30/2014		3/31/2014		12/31/2013		12/31/2014		12/31/2013
Loan expense	$	3,312	$	3,070	$	3,107	$	3,464	$	4,419	$	12,953	$	15,071
Non-routine transaction expenses on acquisitions		-		-		-		-		-		-		7,920
Amortization of intangibles		2,123		2,150		2,190		2,293		2,434		8,756		8,814
Other miscellaneous expense		8,985		7,744		7,934		7,495		8,555		32,158		33,756
Total other expense	$	14,420	$	12,964	$	13,231	$	13,252	$	15,408	$	53,867	$	65,561

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 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.

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 consolidated financial statements in their entirety and not to rely on any single financial measure. The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

December 31, 2014

($ in thousands)

(unaudited)

Note 6 - Non-GAAP Financial Measures (continued)
			Quarter Ended															Year Ended
			12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013			12/31/2014			12/31/2013
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity			$	1,422,268		$	1,412,857		$	1,392,240		$	1,367,663		$	1,346,975		$	1,398,945		$	1,337,597
Less:	Goodwill			(365,500	)		(365,500	)		(365,500	)		(372,720	)		(372,468	)		(367,281	)		(358,270	)
	Identifiable intangible assets			(34,411	)		(36,553	)		(38,711	)		(41,015	)		(43,532	)		(37,651	)		(43,307	)
Total average tangible equity			$	1,022,357		$	1,010,804		$	988,029		$	953,928		$	930,975		$	994,013		$	936,020

PERIOD END BALANCES
Total shareholders' equity			$	1,419,940		$	1,415,098		$	1,399,891		$	1,373,895		$	1,354,953
Less:	Goodwill			(365,500	)		(365,500	)		(365,500	)		(365,500	)		(372,851	)
	Identifiable intangible assets			(33,234	)		(35,357	)		(37,506	)		(39,697	)		(41,990	)
Total tangible equity		(a)	$	1,021,206		$	1,014,241		$	996,885		$	968,698		$	940,112

TANGIBLE ASSETS
Total assets			$	12,250,633		$	12,096,316		$	12,119,996		$	12,057,054		$	11,790,383
Less:	Goodwill			(365,500	)		(365,500	)		(365,500	)		(365,500	)		(372,851	)
	Identifiable intangible assets			(33,234	)		(35,357	)		(37,506	)		(39,697	)		(41,990	)
Total tangible assets		(b)	$	11,851,899		$	11,695,459		$	11,716,990		$	11,651,857		$	11,375,542

Risk-weighted assets		(c)	$	8,387,799		$	8,287,608		$	8,175,622		$	8,016,482		$	7,916,378

NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income			$	28,073		$	33,589		$	32,897		$	29,003		$	28,039		$	123,562		$	117,060
Plus:	Intangible amortization net of tax			1,312			1,328			1,353			1,417			1,503			5,410			5,442
Net income adjusted for intangible amortization			$	29,385		$	34,917		$	34,250		$	30,420		$	29,542		$	128,972		$	122,502

Period end common shares outstanding		(d)		67,481,992			67,439,788			67,439,788			67,439,562			67,372,980

TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity 1				11.40	%		13.70	%		13.90	%		12.93	%		12.59	%		12.97	%		13.09	%
Tangible equity/tangible assets		(a)/(b)		8.62	%		8.67	%		8.51	%		8.31	%		8.26	%
Tangible equity/risk-weighted assets		(a)/(c)		12.17	%		12.24	%		12.19	%		12.08	%		11.88	%
Tangible book value		(a)/(d)*1,000	$	15.13		$	15.04		$	14.78		$	14.36		$	13.95

TIER 1 COMMON RISK-BASED CAPITAL
Total shareholders' equity			$	1,419,940		$	1,415,098		$	1,399,891		$	1,373,895		$	1,354,953
Eliminate qualifying AOCI				42,484			34,365			30,557			38,497			43,731
Qualifying tier 1 capital				60,000			60,000			60,000			60,000			60,000
Disallowed goodwill				(365,500	)		(365,500	)		(365,500	)		(365,500	)		(372,851	)
Adj to goodwill allowed for deferred taxes				15,855			15,503			15,150			14,798			14,445
Other disallowed intangibles				(33,234	)		(35,357	)		(37,506	)		(39,697	)		(41,990	)
Disallowed servicing intangible				(6,436	)		(6,709	)		(6,505	)		(6,761	)		(6,783	)
Disallowed deferred taxes				(3,479	)		(1,234	)		(5,134	)		(23,969	)		(24,647	)
Total tier 1 capital				1,129,630			1,116,166			1,090,953			1,051,263			1,026,858
Less:	Qualifying tier 1 capital			(60,000	)		(60,000	)		(60,000	)		(60,000	)		(60,000	)
Total tier 1 common capital		(e)	$	1,069,630		$	1,056,166		$	1,030,953		$	991,263		$	966,858

Tier 1 common risk-based capital ratio		(e)/(c)		12.75	%		12.74	%		12.61	%		12.37	%		12.21	%

1 Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity

Attached files

Stock widget

Investing forum

TRUSTMARK CORP Reports