Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2019 Financial Results
JACKSON, Miss.
Performance reflects improved earning asset mix, continued loan growth and solid credit quality
Trustmark Corporation (NASDAQ:TRMK) reported net income of $33.9 million in the fourth quarter of 2019, representing diluted earnings per share of $0.53. Results in the fourth quarter reflect negative hedge ineffectiveness which reduced net income by $2.2 million, or $0.03 per share.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200128005708/en/
Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/52164369/en
For the full year, Trustmark’s net income totaled $150.5 million, representing diluted earnings per share of $2.32. Diluted earnings per share in 2019 increased 5.0% when compared to the prior year. Results for 2019 reflect negative hedge ineffectiveness which reduced net income by $8.6 million, or $0.13 per share. Trustmark’s net income in 2019 produced a return on average tangible equity of 12.45% and a return on average assets of 1.11%.
Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2020, to shareholders of record on March 1, 2020.
2019 Highlights
-
Loans held for investment increased $499.8 million, or 5.7%, during the year
-
Nonperforming assets declined 14.4%, and net charge-offs represented 0.06% of average loans in 2019
-
Improved balance sheet positioning as securities and loans (excluding acquired loans) represented 20.5% and 76.7%, respectively, of average earning assets in 2019
-
Net interest income (FTE), excluding acquired loans, totaled $431.1 million, an increase of 3.9% from the prior year
-
Revenue, excluding acquired loans and negative hedge ineffectiveness, totaled $616.8 million, an increase of 5.5%
Gerard R. Host, President and CEO, stated, “We remained focused on our strategic initiatives this year, profitably increasing revenue across our financial services businesses, optimizing our balance sheet, deploying capital through share repurchases, and maintaining disciplined expense management. Looking ahead to 2020, Trustmark will continue to provide the financial services and advice our customers have come to expect. We remain committed to supporting investments to promote profitable revenue growth, reengineering processes to enhance operational efficiency, realigning delivery channels to support changing customer preferences and managing the franchise for the long-term.”
Balance Sheet Management
-
Continued balance sheet and capital optimization through maturing investment securities run-off and share repurchases
-
Loans held for investment increased $112.0 million from the prior quarter
-
Cost of interest-bearing deposits declined 11 basis points during the quarter to 0.85%
Loans held for investment totaled $9.3 billion at December 31, 2019, reflecting an increase of 1.2% linked-quarter and 5.7% from the prior year. The linked-quarter growth reflects increases in construction and land development, residential mortgage, nonfarm, nonresidential and other real estate secured loans. Acquired loans totaled $72.6 million at December 31, 2019, down $8.4 million from the prior quarter and $34.3 million from the prior year. Collectively, loans held for investment and acquired loans totaled $9.4 billion at the end of the fourth quarter of 2019, up $103.6 million, or 1.1%, from the prior quarter and $465.4 million, or 5.2%, year-over-year.
Deposits totaled $11.2 billion at December 31, 2019, unchanged from the prior quarter and down $118.9 million, or 1.0%, year-over-year. Excluding public fund balances, deposits at December 31, 2019, were unchanged from the prior quarter and up $303.6 million, or 3.3% year-over-year. Interest-bearing deposit costs totaled 0.85% for the fourth quarter, a decrease of 11 basis points linked-quarter. Trustmark continues to maintain an attractive, low-cost deposit base with approximately 58% of deposit balances in checking accounts. The total cost of interest-bearing liabilities was 0.88% for the fourth quarter of 2019.
Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. At December 31, 2019, Trustmark’s tangible equity to tangible assets ratio was 9.72%, while the total risk-based capital ratio was 13.25%. During the fourth quarter, Trustmark repurchased $2.2 million, or approximately 64 thousand of its common shares in open market transactions. Trustmark repurchased $56.6 million, or approximately 1.8 million of its common shares in 2019. At December 31, 2019, Trustmark had $80.3 million in remaining authority under its existing stock repurchase program, which expires March 31, 2020.
Today, the Board of Directors authorized a new stock repurchase program, effective April 1, 2020, under which $100 million of Trustmark’s outstanding shares may be acquired through December 31, 2021. The shares may be purchased from time to time at prevailing market prices, through open market or private transactions, depending on market conditions. There is no guarantee as to the number of shares that may be repurchased by Trustmark, and Trustmark may discontinue purchases at any time at management’s discretion.
Credit Quality
-
Nonperforming loans decreased 9.8% and 13.6% from the prior quarter and year-over-year, respectively
-
Other real estate declined 8.5% from the prior quarter and 15.6% year-over-year
-
Allowance for loan losses represented 410.52% of nonperforming loans, excluding specifically reviewed impaired loans
Nonperforming loans totaled $53.2 million at December 31, 2019, down $5.8 million from the prior quarter and $8.4 million year-over-year. Other real estate totaled $29.2 million, reflecting a $2.7 million decrease from the prior quarter and down $5.4 million from the prior year. Collectively, nonperforming assets totaled $82.5 million, reflecting a linked-quarter decrease of 9.4% and a year-over-year decrease of 14.4%.
Allocation of Trustmark's $84.3 million allowance for loan losses represented 0.98% of commercial loans and 0.61% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 0.90% at December 31, 2019, representing a level management considers commensurate with the present risk in the loan portfolio.
Unless otherwise noted, all of the above credit quality metrics exclude acquired loans.
Revenue Generation
-
Noninterest income before negative hedge ineffectiveness totaled $198.6 million in 2019, an increase of $16.1 million, or 8.8%, from the prior year
-
Net interest income (FTE), excluding acquired loans, totaled $431.1 million in 2019, an increase of 3.9% from the prior year
-
The net interest margin (FTE), excluding acquired loans, was 3.58% in 2019, compared to 3.46% in 2018
Revenue in the fourth quarter totaled $153.2 million, down 2.3% from the prior quarter and up 3.0% from the same quarter in the prior year. The linked-quarter decline reflects lower interest income as well as a seasonal reduction in noninterest income. Net interest income (FTE) in the fourth quarter totaled $108.7 million, resulting in a net interest margin of 3.56%. Relative to the prior quarter, net interest income (FTE) decreased $3.0 million as a reduction in interest expense was more than offset by a decline in total interest income. During the fourth quarter of 2019, the yield on acquired loans totaled 10.90% and included $661 thousand in recoveries from the settlement of debt, which represented approximately 3.37% of the annualized total acquired loan yield. Excluding acquired loans, the net interest margin decreased to 3.52% in the fourth quarter of 2019, compared to 3.61% in the prior quarter. The decrease was primarily due to a decline in the yield on the loans held for investment and held for sale portfolio which was partially offset by runoff of maturing investment securities and lower cost of interest-bearing deposits. Net interest income (FTE) in 2019 totaled $439.5 million, resulting in a net interest margin (FTE) of 3.62%; excluding acquired loans, the net interest margin (FTE) was 3.58%.
Noninterest income in the fourth quarter totaled $47.6 million, a decrease of $759 thousand from the prior quarter and an increase of $4.0 million compared to the same quarter in the prior year. The linked-quarter decrease primarily reflects a seasonal decline in insurance commissions. In the fourth quarter, bank card and other fees decreased 1.9% from the prior quarter, and service charges on deposit accounts decreased 1.5%. Other income, net totaled $3.5 million in the fourth quarter, up $1.5 million linked-quarter due to an increase in other miscellaneous income.
Insurance revenue in the fourth quarter totaled $9.4 million, down $1.7 million from the third quarter and $198 thousand from the same quarter in the prior year. The linked-quarter decrease is due to a seasonal decline in commissions. Insurance revenue in 2019 totaled $42.4 million, up 4.7%, or $1.9 million, from the prior year. The solid performance in 2019 reflects improved sales management practices, producer development, and realization of operational efficiencies resulting from investments in technology and processes.
Wealth management revenue totaled $7.8 million in the fourth quarter, in line with the prior quarter and up 3.5% year-over-year. The increase is primarily attributable to higher trust management fees. For the year, wealth management revenue totaled $30.7 million, up 1.1% from the prior year. Trustmark added capabilities and personnel in its Private Banking Group and completed internal reorganizations in 2019 to enhance the competitive positioning of the wealth management segment and streamline business functions.
Mortgage loan production in the fourth quarter totaled $498.5 million, a seasonal decline of 11.9% from the prior quarter and a 64.2% increase year-over-year, partially due to higher refinancing activity and lower interest rates. Mortgage banking income before negative hedge ineffectiveness totaled $10.9 million in the fourth quarter, a decline of $1.0 million from the prior quarter. In 2019, mortgage loan production totaled $1.76 billion, up 25.8% from the prior year. Mortgage banking income before negative hedge ineffectiveness totaled $41.3 million in 2019, an increase of $9.1 million, or 28.1%, from the prior year.
Noninterest Expense
-
Core noninterest expense, which excludes other real estate expense, net and intangible amortization, totaled $107.5 million, up 2.1% from the prior quarter
-
Effective corporate tax rate in 2019 was 13.4%
-
Continued investments to enhance the customer experience and realign delivery channels to support changing customer preferences
Total noninterest expense for the fourth quarter was $110.0 million, up 3.0%, or $3.2 million, from the prior quarter. The increase is primarily due to a $2.1 million increase in other expense. Other expense in the third quarter included a $1.6 million recovery of litigation related expenses. Excluding the impact of this item, other expense increased 4.4%, or $539 thousand, and total noninterest expense increased 1.5%, or $1.6 million, in the fourth quarter. In 2019, noninterest expense totaled $429.0 million, up 3.3% from the prior year.
Core noninterest expense, which excludes other real estate expense, net ($1.5 million) and intangible amortization ($1.0 million), totaled $107.5 million in the fourth quarter, a 2.1% increase from the prior quarter. In 2019, core noninterest expense totaled $421.0 million, an increase of 3.1% from the prior year.
Salaries and employee benefits totaled $62.3 million in the fourth quarter, down $176 thousand from the prior quarter due to seasonally lower insurance commissions. Services and fees rose $662 thousand linked-quarter reflecting continued software investments designed to improve efficiency and customer experience as well as increased advertising expense and increased spending on outside services and fees. Other real estate expense, net increased $960 thousand linked-quarter.
Trustmark has grown and sustained business by understanding and serving its customer base, and in 2019 Trustmark made significant investments to support changing customer preferences and enhance the customer experience. During the year, Trustmark closed five branches and opened two branches featuring a new design that allows for integration of the myTeller® technology and offers more areas of engagement. Trustmark remains committed to investments that promote profitable revenue growth as well as reengineering and efficiency opportunities that enhance long-term shareholder value.
Additional Information
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 29, 2020 at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 12, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10137727.
Trustmark is a financial services company providing banking and financial solutions through 193 offices in Alabama, Florida, Mississippi, Tennessee and Texas.
Forward-Looking Statements
Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission 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 potential market impacts of efforts by the Board of Governors of the Federal Reserve System (FRB) to reduce the size of its balance sheet, 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 as well as crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues relating 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, 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 CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2019
($ in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linked Quarter |
|
Year over Year |
QUARTERLY AVERAGE BALANCES |
|
12/31/2019 |
|
9/30/2019 |
|
12/31/2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Securities AFS-taxable |
|
$
|
1,551,358
|
|
|
$
|
1,570,803
|
|
|
$
|
1,847,421
|
|
|
$
|
(19,445
|
)
|
|
-1.2
|
%
|
|
$
|
(296,063
|
)
|
|
-16.0
|
%
|
Securities AFS-nontaxable |
|
|
23,300
|
|
|
|
25,096
|
|
|
|
38,821
|
|
|
|
(1,796
|
)
|
|
-7.2
|
%
|
|
|
(15,521
|
)
|
|
-40.0
|
%
|
Securities HTM-taxable |
|
|
734,474
|
|
|
|
778,098
|
|
|
|
893,186
|
|
|
|
(43,624
|
)
|
|
-5.6
|
%
|
|
|
(158,712
|
)
|
|
-17.8
|
%
|
Securities HTM-nontaxable |
|
|
25,703
|
|
|
|
26,088
|
|
|
|
29,143
|
|
|
|
(385
|
)
|
|
-1.5
|
%
|
|
|
(3,440
|
)
|
|
-11.8
|
%
|
Total securities |
|
|
2,334,835
|
|
|
|
2,400,085
|
|
|
|
2,808,571
|
|
|
|
(65,250
|
)
|
|
-2.7
|
%
|
|
|
(473,736
|
)
|
|
-16.9
|
%
|
Loans (including loans held for sale) |
|
|
9,467,437
|
|
|
|
9,436,287
|
|
|
|
8,933,501
|
|
|
|
31,150
|
|
|
0.3
|
%
|
|
|
533,936
|
|
|
6.0
|
%
|
Acquired loans |
|
|
77,797
|
|
|
|
82,641
|
|
|
|
127,747
|
|
|
|
(4,844
|
)
|
|
-5.9
|
%
|
|
|
(49,950
|
)
|
|
-39.1
|
%
|
Fed funds sold and rev repos |
|
|
184
|
|
|
|
3,662
|
|
|
|
843
|
|
|
|
(3,478
|
)
|
|
-95.0
|
%
|
|
|
(659
|
)
|
|
-78.2
|
%
|
Other earning assets |
|
|
227,116
|
|
|
|
176,163
|
|
|
|
200,282
|
|
|
|
50,953
|
|
|
28.9
|
%
|
|
|
26,834
|
|
|
13.4
|
%
|
Total earning assets |
|
|
12,107,369
|
|
|
|
12,098,838
|
|
|
|
12,070,944
|
|
|
|
8,531
|
|
|
0.1
|
%
|
|
|
36,425
|
|
|
0.3
|
%
|
Allowance for loan losses |
|
|
(86,211
|
)
|
|
|
(83,756
|
)
|
|
|
(85,842
|
)
|
|
|
(2,455
|
)
|
|
-2.9
|
%
|
|
|
(369
|
)
|
|
-0.4
|
%
|
Other assets |
|
|
1,445,075
|
|
|
|
1,447,977
|
|
|
|
1,362,831
|
|
|
|
(2,902
|
)
|
|
-0.2
|
%
|
|
|
82,244
|
|
|
6.0
|
%
|
Total assets |
|
$
|
13,466,233
|
|
|
$
|
13,463,059
|
|
|
$
|
13,347,933
|
|
|
$
|
3,174
|
|
|
0.0
|
%
|
|
$
|
118,300
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$
|
3,167,256
|
|
|
$
|
3,085,758
|
|
|
$
|
2,722,841
|
|
|
$
|
81,498
|
|
|
2.6
|
%
|
|
$
|
444,415
|
|
|
16.3
|
%
|
Savings deposits |
|
|
3,448,899
|
|
|
|
3,568,403
|
|
|
|
3,565,682
|
|
|
|
(119,504
|
)
|
|
-3.3
|
%
|
|
|
(116,783
|
)
|
|
-3.3
|
%
|
Time deposits |
|
|
1,663,741
|
|
|
|
1,753,083
|
|
|
|
1,892,983
|
|
|
|
(89,342
|
)
|
|
-5.1
|
%
|
|
|
(229,242
|
)
|
|
-12.1
|
%
|
Total interest-bearing deposits |
|
|
8,279,896
|
|
|
|
8,407,244
|
|
|
|
8,181,506
|
|
|
|
(127,348
|
)
|
|
-1.5
|
%
|
|
|
98,390
|
|
|
1.2
|
%
|
Fed funds purchased and repos |
|
|
164,754
|
|
|
|
142,064
|
|
|
|
340,094
|
|
|
|
22,690
|
|
|
16.0
|
%
|
|
|
(175,340
|
)
|
|
-51.6
|
%
|
Other borrowings |
|
|
79,512
|
|
|
|
78,404
|
|
|
|
90,252
|
|
|
|
1,108
|
|
|
1.4
|
%
|
|
|
(10,740
|
)
|
|
-11.9
|
%
|
Junior subordinated debt securities |
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
Total interest-bearing liabilities |
|
|
8,586,018
|
|
|
|
8,689,568
|
|
|
|
8,673,708
|
|
|
|
(103,550
|
)
|
|
-1.2
|
%
|
|
|
(87,690
|
)
|
|
-1.0
|
%
|
Noninterest-bearing deposits |
|
|
3,017,824
|
|
|
|
2,932,754
|
|
|
|
2,862,161
|
|
|
|
85,070
|
|
|
2.9
|
%
|
|
|
155,663
|
|
|
5.4
|
%
|
Other liabilities |
|
|
205,786
|
|
|
|
206,091
|
|
|
|
216,932
|
|
|
|
(305
|
)
|
|
-0.1
|
%
|
|
|
(11,146
|
)
|
|
-5.1
|
%
|
Total liabilities |
|
|
11,809,628
|
|
|
|
11,828,413
|
|
|
|
11,752,801
|
|
|
|
(18,785
|
)
|
|
-0.2
|
%
|
|
|
56,827
|
|
|
0.5
|
%
|
Shareholders' equity |
|
|
1,656,605
|
|
|
|
1,634,646
|
|
|
|
1,595,132
|
|
|
|
21,959
|
|
|
1.3
|
%
|
|
|
61,473
|
|
|
3.9
|
%
|
Total liabilities and equity |
|
$
|
13,466,233
|
|
|
$
|
13,463,059
|
|
|
$
|
13,347,933
|
|
|
$
|
3,174
|
|
|
0.0
|
%
|
|
$
|
118,300
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2019 |
($ in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linked Quarter |
|
Year over Year |
PERIOD END BALANCES |
|
12/31/2019 |
|
9/30/2019 |
|
12/31/2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Cash and due from banks |
|
$
|
358,916
|
|
|
$
|
486,263
|
|
|
$
|
349,561
|
|
|
$
|
(127,347
|
)
|
|
-26.2
|
%
|
|
$
|
9,355
|
|
|
2.7
|
%
|
Fed funds sold and rev repos |
|
|
—
|
|
|
|
—
|
|
|
|
830
|
|
|
|
—
|
|
|
n/m
|
|
|
|
(830
|
)
|
|
-100.0
|
%
|
Securities available for sale |
|
|
1,602,404
|
|
|
|
1,553,705
|
|
|
|
1,811,813
|
|
|
|
48,699
|
|
|
3.1
|
%
|
|
|
(209,409
|
)
|
|
-11.6
|
%
|
Securities held to maturity |
|
|
738,099
|
|
|
|
785,422
|
|
|
|
909,643
|
|
|
|
(47,323
|
)
|
|
-6.0
|
%
|
|
|
(171,544
|
)
|
|
-18.9
|
%
|
Loans held for sale (LHFS) |
|
|
226,347
|
|
|
|
292,800
|
|
|
|
153,799
|
|
|
|
(66,453
|
)
|
|
-22.7
|
%
|
|
|
72,548
|
|
|
47.2
|
%
|
Loans held for investment (LHFI) |
|
|
9,335,628
|
|
|
|
9,223,668
|
|
|
|
8,835,868
|
|
|
|
111,960
|
|
|
1.2
|
%
|
|
|
499,760
|
|
|
5.7
|
%
|
Allowance for loan losses, LHFI |
|
|
(84,277
|
)
|
|
|
(83,226
|
)
|
|
|
(79,290
|
)
|
|
|
(1,051
|
)
|
|
-1.3
|
%
|
|
|
(4,987
|
)
|
|
-6.3
|
%
|
Net LHFI |
|
|
9,251,351
|
|
|
|
9,140,442
|
|
|
|
8,756,578
|
|
|
|
110,909
|
|
|
1.2
|
%
|
|
|
494,773
|
|
|
5.7
|
%
|
Acquired loans |
|
|
72,601
|
|
|
|
81,004
|
|
|
|
106,932
|
|
|
|
(8,403
|
)
|
|
-10.4
|
%
|
|
|
(34,331
|
)
|
|
-32.1
|
%
|
Allowance for loan losses, acquired loans |
|
|
(815
|
)
|
|
|
(1,249
|
)
|
|
|
(1,231
|
)
|
|
|
434
|
|
|
34.7
|
%
|
|
|
416
|
|
|
33.8
|
%
|
Net acquired loans |
|
|
71,786
|
|
|
|
79,755
|
|
|
|
105,701
|
|
|
|
(7,969
|
)
|
|
-10.0
|
%
|
|
|
(33,915
|
)
|
|
-32.1
|
%
|
Net LHFI and acquired loans |
|
|
9,323,137
|
|
|
|
9,220,197
|
|
|
|
8,862,279
|
|
|
|
102,940
|
|
|
1.1
|
%
|
|
|
460,858
|
|
|
5.2
|
%
|
Premises and equipment, net |
|
|
189,791
|
|
|
|
188,423
|
|
|
|
178,668
|
|
|
|
1,368
|
|
|
0.7
|
%
|
|
|
11,123
|
|
|
6.2
|
%
|
Mortgage servicing rights |
|
|
79,394
|
|
|
|
73,016
|
|
|
|
95,596
|
|
|
|
6,378
|
|
|
8.7
|
%
|
|
|
(16,202
|
)
|
|
-16.9
|
%
|
Goodwill |
|
|
379,627
|
|
|
|
379,627
|
|
|
|
379,627
|
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
Identifiable intangible assets |
|
|
7,343
|
|
|
|
8,345
|
|
|
|
11,112
|
|
|
|
(1,002
|
)
|
|
-12.0
|
%
|
|
|
(3,769
|
)
|
|
-33.9
|
%
|
Other real estate |
|
|
29,248
|
|
|
|
31,974
|
|
|
|
34,668
|
|
|
|
(2,726
|
)
|
|
-8.5
|
%
|
|
|
(5,420
|
)
|
|
-15.6
|
%
|
Operating lease right-of-use assets |
|
|
31,182
|
|
|
|
33,180
|
|
|
|
—
|
|
|
|
(1,998
|
)
|
|
-6.0
|
%
|
|
|
31,182
|
|
|
n/m
|
|
Other assets |
|
|
532,389
|
|
|
|
531,834
|
|
|
|
498,864
|
|
|
|
555
|
|
|
0.1
|
%
|
|
|
33,525
|
|
|
6.7
|
%
|
Total assets |
|
$
|
13,497,877
|
|
|
$
|
13,584,786
|
|
|
$
|
13,286,460
|
|
|
$
|
(86,909
|
)
|
|
-0.6
|
%
|
|
$
|
211,417
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$
|
2,891,215
|
|
|
$
|
3,064,127
|
|
|
$
|
2,937,594
|
|
|
$
|
(172,912
|
)
|
|
-5.6
|
%
|
|
$
|
(46,379
|
)
|
|
-1.6
|
%
|
Interest-bearing |
|
|
8,354,342
|
|
|
|
8,190,056
|
|
|
|
8,426,817
|
|
|
|
164,286
|
|
|
2.0
|
%
|
|
|
(72,475
|
)
|
|
-0.9
|
%
|
Total deposits |
|
|
11,245,557
|
|
|
|
11,254,183
|
|
|
|
11,364,411
|
|
|
|
(8,626
|
)
|
|
-0.1
|
%
|
|
|
(118,854
|
)
|
|
-1.0
|
%
|
Fed funds purchased and repos |
|
|
256,020
|
|
|
|
376,712
|
|
|
|
50,471
|
|
|
|
(120,692
|
)
|
|
-32.0
|
%
|
|
|
205,549
|
|
|
n/m
|
|
Other borrowings |
|
|
85,396
|
|
|
|
76,685
|
|
|
|
79,885
|
|
|
|
8,711
|
|
|
11.4
|
%
|
|
|
5,511
|
|
|
6.9
|
%
|
Junior subordinated debt securities |
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
Operating lease liabilities |
|
|
32,354
|
|
|
|
34,319
|
|
|
|
—
|
|
|
|
(1,965
|
)
|
|
-5.7
|
%
|
|
|
32,354
|
|
|
n/m
|
|
Other liabilities |
|
|
155,992
|
|
|
|
135,669
|
|
|
|
138,384
|
|
|
|
20,323
|
|
|
15.0
|
%
|
|
|
17,608
|
|
|
12.7
|
%
|
Total liabilities |
|
|
11,837,175
|
|
|
|
11,939,424
|
|
|
|
11,695,007
|
|
|
|
(102,249
|
)
|
|
-0.9
|
%
|
|
|
142,168
|
|
|
1.2
|
%
|
Common stock |
|
|
13,376
|
|
|
|
13,390
|
|
|
|
13,717
|
|
|
|
(14
|
)
|
|
-0.1
|
%
|
|
|
(341
|
)
|
|
-2.5
|
%
|
Capital surplus |
|
|
256,400
|
|
|
|
257,370
|
|
|
|
309,545
|
|
|
|
(970
|
)
|
|
-0.4
|
%
|
|
|
(53,145
|
)
|
|
-17.2
|
%
|
Retained earnings |
|
|
1,414,526
|
|
|
|
1,395,460
|
|
|
|
1,323,870
|
|
|
|
19,066
|
|
|
1.4
|
%
|
|
|
90,656
|
|
|
6.8
|
%
|
Accum other comprehensive loss, net of tax |
|
|
(23,600
|
)
|
|
|
(20,858
|
)
|
|
|
(55,679
|
)
|
|
|
(2,742
|
)
|
|
-13.1
|
%
|
|
|
32,079
|
|
|
57.6
|
%
|
Total shareholders' equity |
|
|
1,660,702
|
|
|
|
1,645,362
|
|
|
|
1,591,453
|
|
|
|
15,340
|
|
|
0.9
|
%
|
|
|
69,249
|
|
|
4.4
|
%
|
Total liabilities and equity |
|
$
|
13,497,877
|
|
|
$
|
13,584,786
|
|
|
$
|
13,286,460
|
|
|
$
|
(86,909
|
)
|
|
-0.6
|
%
|
|
$
|
211,417
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2019 |
($ in thousands except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Linked Quarter |
|
Year over Year |
INCOME STATEMENTS |
|
12/31/2019 |
|
9/30/2019 |
|
12/31/2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Interest and fees on LHFS & LHFI-FTE |
|
$
|
111,383
|
|
|
$
|
116,432
|
|
|
$
|
107,709
|
|
|
$
|
(5,049
|
)
|
|
-4.3
|
%
|
|
$
|
3,674
|
|
|
3.4
|
%
|
Interest and fees on acquired loans |
|
|
2,138
|
|
|
|
2,309
|
|
|
|
3,183
|
|
|
|
(171
|
)
|
|
-7.4
|
%
|
|
|
(1,045
|
)
|
|
-32.8
|
%
|
Interest on securities-taxable |
|
|
12,884
|
|
|
|
13,184
|
|
|
|
15,496
|
|
|
|
(300
|
)
|
|
-2.3
|
%
|
|
|
(2,612
|
)
|
|
-16.9
|
%
|
Interest on securities-tax exempt-FTE |
|
|
484
|
|
|
|
485
|
|
|
|
617
|
|
|
|
(1
|
)
|
|
-0.2
|
%
|
|
|
(133
|
)
|
|
-21.6
|
%
|
Interest on fed funds sold and rev repos |
|
|
1
|
|
|
|
23
|
|
|
|
4
|
|
|
|
(22
|
)
|
|
-95.7
|
%
|
|
|
(3
|
)
|
|
-75.0
|
%
|
Other interest income |
|
|
896
|
|
|
|
1,044
|
|
|
|
1,158
|
|
|
|
(148
|
)
|
|
-14.2
|
%
|
|
|
(262
|
)
|
|
-22.6
|
%
|
Total interest income-FTE |
|
|
127,786
|
|
|
|
133,477
|
|
|
|
128,167
|
|
|
|
(5,691
|
)
|
|
-4.3
|
%
|
|
|
(381
|
)
|
|
-0.3
|
%
|
Interest on deposits |
|
|
17,716
|
|
|
|
20,385
|
|
|
|
17,334
|
|
|
|
(2,669
|
)
|
|
-13.1
|
%
|
|
|
382
|
|
|
2.2
|
%
|
Interest on fed funds pch and repos |
|
|
504
|
|
|
|
547
|
|
|
|
1,528
|
|
|
|
(43
|
)
|
|
-7.9
|
%
|
|
|
(1,024
|
)
|
|
-67.0
|
%
|
Other interest expense |
|
|
826
|
|
|
|
830
|
|
|
|
894
|
|
|
|
(4
|
)
|
|
-0.5
|
%
|
|
|
(68
|
)
|
|
-7.6
|
%
|
Total interest expense |
|
|
19,046
|
|
|
|
21,762
|
|
|
|
19,756
|
|
|
|
(2,716
|
)
|
|
-12.5
|
%
|
|
|
(710
|
)
|
|
-3.6
|
%
|
Net interest income-FTE |
|
|
108,740
|
|
|
|
111,715
|
|
|
|
108,411
|
|
|
|
(2,975
|
)
|
|
-2.7
|
%
|
|
|
329
|
|
|
0.3
|
%
|
Provision for loan losses, LHFI |
|
|
3,661
|
|
|
|
3,039
|
|
|
|
2,192
|
|
|
|
622
|
|
|
20.5
|
%
|
|
|
1,469
|
|
|
67.0
|
%
|
Provision for loan losses, acquired loans |
|
|
(2
|
)
|
|
|
(140
|
)
|
|
|
(247
|
)
|
|
|
138
|
|
|
98.6
|
%
|
|
|
245
|
|
|
99.2
|
%
|
Net interest income after provision-FTE |
|
|
105,081
|
|
|
|
108,816
|
|
|
|
106,466
|
|
|
|
(3,735
|
)
|
|
-3.4
|
%
|
|
|
(1,385
|
)
|
|
-1.3
|
%
|
Service charges on deposit accounts |
|
|
10,894
|
|
|
|
11,065
|
|
|
|
11,123
|
|
|
|
(171
|
)
|
|
-1.5
|
%
|
|
|
(229
|
)
|
|
-2.1
|
%
|
Bank card and other fees |
|
|
8,192
|
|
|
|
8,349
|
|
|
|
7,750
|
|
|
|
(157
|
)
|
|
-1.9
|
%
|
|
|
442
|
|
|
5.7
|
%
|
Mortgage banking, net |
|
|
7,914
|
|
|
|
8,171
|
|
|
|
5,716
|
|
|
|
(257
|
)
|
|
-3.1
|
%
|
|
|
2,198
|
|
|
38.5
|
%
|
Insurance commissions |
|
|
9,364
|
|
|
|
11,072
|
|
|
|
9,562
|
|
|
|
(1,708
|
)
|
|
-15.4
|
%
|
|
|
(198
|
)
|
|
-2.1
|
%
|
Wealth management |
|
|
7,763
|
|
|
|
7,691
|
|
|
|
7,504
|
|
|
|
72
|
|
|
0.9
|
%
|
|
|
259
|
|
|
3.5
|
%
|
Other, net |
|
|
3,451
|
|
|
|
1,989
|
|
|
|
1,904
|
|
|
|
1,462
|
|
|
73.5
|
%
|
|
|
1,547
|
|
|
81.3
|
%
|
Nonint inc-excl sec gains (losses), net |
|
|
47,578
|
|
|
|
48,337
|
|
|
|
43,559
|
|
|
|
(759
|
)
|
|
-1.6
|
%
|
|
|
4,019
|
|
|
9.2
|
%
|
Security gains (losses), net |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
n/m
|
|
|
|
—
|
|
|
n/m
|
|
Total noninterest income |
|
|
47,578
|
|
|
|
48,337
|
|
|
|
43,559
|
|
|
|
(759
|
)
|
|
-1.6
|
%
|
|
|
4,019
|
|
|
9.2
|
%
|
Salaries and employee benefits |
|
|
62,319
|
|
|
|
62,495
|
|
|
|
58,736
|
|
|
|
(176
|
)
|
|
-0.3
|
%
|
|
|
3,583
|
|
|
6.1
|
%
|
Services and fees |
|
|
19,500
|
|
|
|
18,838
|
|
|
|
17,910
|
|
|
|
662
|
|
|
3.5
|
%
|
|
|
1,590
|
|
|
8.9
|
%
|
Net occupancy-premises |
|
|
6,461
|
|
|
|
6,831
|
|
|
|
6,741
|
|
|
|
(370
|
)
|
|
-5.4
|
%
|
|
|
(280
|
)
|
|
-4.2
|
%
|
Equipment expense |
|
|
5,880
|
|
|
|
5,971
|
|
|
|
6,329
|
|
|
|
(91
|
)
|
|
-1.5
|
%
|
|
|
(449
|
)
|
|
-7.1
|
%
|
Other real estate expense, net |
|
|
1,491
|
|
|
|
531
|
|
|
|
61
|
|
|
|
960
|
|
|
n/m
|
|
|
|
1,430
|
|
|
n/m
|
|
FDIC assessment expense |
|
|
1,450
|
|
|
|
1,400
|
|
|
|
1,897
|
|
|
|
50
|
|
|
3.6
|
%
|
|
|
(447
|
)
|
|
-23.6
|
%
|
Other expense |
|
|
12,926
|
|
|
|
10,787
|
|
|
|
12,253
|
|
|
|
2,139
|
|
|
19.8
|
%
|
|
|
673
|
|
|
5.5
|
%
|
Total noninterest expense |
|
|
110,027
|
|
|
|
106,853
|
|
|
|
103,927
|
|
|
|
3,174
|
|
|
3.0
|
%
|
|
|
6,100
|
|
|
5.9
|
%
|
Income before income taxes and tax eq adj |
|
|
42,632
|
|
|
|
50,300
|
|
|
|
46,098
|
|
|
|
(7,668
|
)
|
|
-15.2
|
%
|
|
|
(3,466
|
)
|
|
-7.5
|
%
|
Tax equivalent adjustment |
|
|
3,149
|
|
|
|
3,249
|
|
|
|
3,231
|
|
|
|
(100
|
)
|
|
-3.1
|
%
|
|
|
(82
|
)
|
|
-2.5
|
%
|
Income before income taxes |
|
|
39,483
|
|
|
|
47,051
|
|
|
|
42,867
|
|
|
|
(7,568
|
)
|
|
-16.1
|
%
|
|
|
(3,384
|
)
|
|
-7.9
|
%
|
Income taxes |
|
|
5,537
|
|
|
|
6,016
|
|
|
|
6,179
|
|
|
|
(479
|
)
|
|
-8.0
|
%
|
|
|
(642
|
)
|
|
-10.4
|
%
|
Net income |
|
$
|
33,946
|
|
|
$
|
41,035
|
|
|
$
|
36,688
|
|
|
$
|
(7,089
|
)
|
|
-17.3
|
%
|
|
$
|
(2,742
|
)
|
|
-7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$
|
0.53
|
|
|
$
|
0.64
|
|
|
$
|
0.55
|
|
|
$
|
(0.11
|
)
|
|
-17.2
|
%
|
|
$
|
(0.02
|
)
|
|
-3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
|
$
|
0.53
|
|
|
$
|
0.64
|
|
|
$
|
0.55
|
|
|
$
|
(0.11
|
)
|
|
-17.2
|
%
|
|
$
|
(0.02
|
)
|
|
-3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share |
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
|
—
|
|
|
0.0
|
%
|
|
|
—
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
64,255,716
|
|
|
|
64,358,540
|
|
|
|
66,839,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
64,435,276
|
|
|
|
64,514,605
|
|
|
|
67,028,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares outstanding |
|
|
64,200,111
|
|
|
|
64,262,779
|
|
|
|
65,834,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2019 |
($ in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Linked Quarter |
|
Year over Year |
NONPERFORMING ASSETS (1) |
|
12/31/2019 |
|
9/30/2019 |
|
12/31/2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
$
|
1,870
|
|
|
$
|
2,936
|
|
|
$
|
3,361
|
|
|
$
|
(1,066
|
)
|
|
-36.3
|
%
|
|
$
|
(1,491
|
)
|
|
-44.4
|
%
|
Florida |
|
|
267
|
|
|
|
311
|
|
|
|
1,175
|
|
|
|
(44
|
)
|
|
-14.1
|
%
|
|
|
(908
|
)
|
|
-77.3
|
%
|
Mississippi (2) |
|
|
41,493
|
|
|
|
43,895
|
|
|
|
44,331
|
|
|
|
(2,402
|
)
|
|
-5.5
|
%
|
|
|
(2,838
|
)
|
|
-6.4
|
%
|
Tennessee (3) |
|
|
8,980
|
|
|
|
10,193
|
|
|
|
8,696
|
|
|
|
(1,213
|
)
|
|
-11.9
|
%
|
|
|
284
|
|
|
3.3
|
%
|
Texas |
|
|
616
|
|
|
|
1,695
|
|
|
|
4,061
|
|
|
|
(1,079
|
)
|
|
-63.7
|
%
|
|
|
(3,445
|
)
|
|
-84.8
|
%
|
Total nonaccrual loans |
|
|
53,226
|
|
|
|
59,030
|
|
|
|
61,624
|
|
|
|
(5,804
|
)
|
|
-9.8
|
%
|
|
|
(8,398
|
)
|
|
-13.6
|
%
|
Other real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
|
8,133
|
|
|
|
6,501
|
|
|
|
6,873
|
|
|
|
1,632
|
|
|
25.1
|
%
|
|
|
1,260
|
|
|
18.3
|
%
|
Florida |
|
|
5,877
|
|
|
|
6,983
|
|
|
|
8,771
|
|
|
|
(1,106
|
)
|
|
-15.8
|
%
|
|
|
(2,894
|
)
|
|
-33.0
|
%
|
Mississippi (2) |
|
|
14,919
|
|
|
|
17,646
|
|
|
|
17,255
|
|
|
|
(2,727
|
)
|
|
-15.5
|
%
|
|
|
(2,336
|
)
|
|
-13.5
|
%
|
Tennessee (3) |
|
|
319
|
|
|
|
844
|
|
|
|
1,025
|
|
|
|
(525
|
)
|
|
-62.2
|
%
|
|
|
(706
|
)
|
|
-68.9
|
%
|
Texas |
|
|
—
|
|
|
|
—
|
|
|
|
744
|
|
|
|
—
|
|
|
n/m
|
|
|
|
(744
|
)
|
|
-100.0
|
%
|
Total other real estate |
|
|
29,248
|
|
|
|
31,974
|
|
|
|
34,668
|
|
|
|
(2,726
|
)
|
|
-8.5
|
%
|
|
|
(5,420
|
)
|
|
-15.6
|
%
|
Total nonperforming assets |
|
$
|
82,474
|
|
|
$
|
91,004
|
|
|
$
|
96,292
|
|
|
$
|
(8,530
|
)
|
|
-9.4
|
%
|
|
$
|
(13,818
|
)
|
|
-14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS PAST DUE OVER 90 DAYS (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LHFI |
|
$
|
642
|
|
|
$
|
878
|
|
|
$
|
856
|
|
|
$
|
(236
|
)
|
|
-26.9
|
%
|
|
$
|
(214
|
)
|
|
-25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LHFS-Guaranteed GNMA serviced loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(no obligation to repurchase) |
|
$
|
41,648
|
|
|
$
|
36,445
|
|
|
$
|
37,384
|
|
|
$
|
5,203
|
|
|
14.3
|
%
|
|
$
|
4,264
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Linked Quarter |
|
Year over Year |
ALLOWANCE FOR LOAN LOSSES (1) |
|
12/31/2019 |
|
9/30/2019 |
|
12/31/2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Beginning Balance |
|
$
|
83,226
|
|
|
$
|
80,399
|
|
|
$
|
88,874
|
|
|
$
|
2,827
|
|
|
3.5
|
%
|
|
$
|
(5,648
|
)
|
|
-6.4
|
%
|
Provision for loan losses |
|
|
3,661
|
|
|
|
3,039
|
|
|
|
2,192
|
|
|
|
622
|
|
|
20.5
|
%
|
|
|
1,469
|
|
|
67.0
|
%
|
Charge-offs |
|
|
(4,619
|
)
|
|
|
(2,892
|
)
|
|
|
(16,509
|
)
|
|
|
(1,727
|
)
|
|
-59.7
|
%
|
|
|
11,890
|
|
|
72.0
|
%
|
Recoveries |
|
|
2,009
|
|
|
|
2,680
|
|
|
|
4,733
|
|
|
|
(671
|
)
|
|
-25.0
|
%
|
|
|
(2,724
|
)
|
|
-57.6
|
%
|
Net (charge-offs) recoveries |
|
|
(2,610
|
)
|
|
|
(212
|
)
|
|
|
(11,776
|
)
|
|
|
(2,398
|
)
|
|
n/m
|
|
|
|
9,166
|
|
|
77.8
|
%
|
Ending Balance |
|
$
|
84,277
|
|
|
$
|
83,226
|
|
|
$
|
79,290
|
|
|
$
|
1,051
|
|
|
1.3
|
%
|
|
$
|
4,987
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
$
|
(109
|
)
|
|
$
|
561
|
|
|
$
|
(346
|
)
|
|
$
|
(670
|
)
|
|
n/m
|
|
|
$
|
237
|
|
|
68.5
|
%
|
Florida |
|
|
(108
|
)
|
|
|
(154
|
)
|
|
|
(160
|
)
|
|
|
46
|
|
|
29.9
|
%
|
|
|
52
|
|
|
32.5
|
%
|
Mississippi (2) |
|
|
1,210
|
|
|
|
1,528
|
|
|
|
(3,594
|
)
|
|
|
(318
|
)
|
|
-20.8
|
%
|
|
|
4,804
|
|
|
n/m
|
|
Tennessee (3) |
|
|
1,956
|
|
|
|
2,175
|
|
|
|
3,039
|
|
|
|
(219
|
)
|
|
-10.1
|
%
|
|
|
(1,083
|
)
|
|
-35.6
|
%
|
Texas |
|
|
712
|
|
|
|
(1,071
|
)
|
|
|
3,253
|
|
|
|
1,783
|
|
|
n/m
|
|
|
|
(2,541
|
)
|
|
-78.1
|
%
|
Total provision for loan losses |
|
$
|
3,661
|
|
|
$
|
3,039
|
|
|
$
|
2,192
|
|
|
$
|
622
|
|
|
20.5
|
%
|
|
$
|
1,469
|
|
|
67.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFFS (RECOVERIES) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
$
|
132
|
|
|
$
|
329
|
|
|
$
|
203
|
|
|
$
|
(197
|
)
|
|
-59.9
|
%
|
|
$
|
(71
|
)
|
|
-35.0
|
%
|
Florida |
|
|
(357
|
)
|
|
|
(136
|
)
|
|
|
(238
|
)
|
|
|
(221
|
)
|
|
n/m
|
|
|
|
(119
|
)
|
|
-50.0
|
%
|
Mississippi (2) |
|
|
1,792
|
|
|
|
(391
|
)
|
|
|
(1,873
|
)
|
|
|
2,183
|
|
|
n/m
|
|
|
|
3,665
|
|
|
n/m
|
|
Tennessee (3) |
|
|
131
|
|
|
|
483
|
|
|
|
7,875
|
|
|
|
(352
|
)
|
|
-72.9
|
%
|
|
|
(7,744
|
)
|
|
-98.3
|
%
|
Texas |
|
|
912
|
|
|
|
(73
|
)
|
|
|
5,809
|
|
|
|
985
|
|
|
n/m
|
|
|
|
(4,897
|
)
|
|
-84.3
|
%
|
Total net charge-offs (recoveries) |
|
$
|
2,610
|
|
|
$
|
212
|
|
|
$
|
11,776
|
|
|
$
|
2,398
|
|
|
n/m
|
|
|
$
|
(9,166
|
)
|
|
-77.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes acquired loans. |
(2) Mississippi includes Central and Southern Mississippi Regions. |
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - percentage changes greater than +/- 100% are considered not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
December 31, 2019 |
($ in thousands) |
(unaudited) |
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
AVERAGE BALANCES |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
12/31/2019 |
|
12/31/2018 |
Securities AFS-taxable |
|
$
|
1,551,358
|
|
|
$
|
1,570,803
|
|
|
$
|
1,661,464
|
|
|
$
|
1,753,268
|
|
|
$
|
1,847,421
|
|
|
$
|
1,633,496
|
|
|
$
|
1,990,332
|
|
Securities AFS-nontaxable |
|
|
23,300
|
|
|
|
25,096
|
|
|
|
31,474
|
|
|
|
40,159
|
|
|
|
38,821
|
|
|
|
29,948
|
|
|
|
47,112
|
|
Securities HTM-taxable |
|
|
734,474
|
|
|
|
778,098
|
|
|
|
821,357
|
|
|
|
866,665
|
|
|
|
893,186
|
|
|
|
799,726
|
|
|
|
950,836
|
|
Securities HTM-nontaxable |
|
|
25,703
|
|
|
|
26,088
|
|
|
|
27,035
|
|
|
|
28,710
|
|
|
|
29,143
|
|
|
|
26,874
|
|
|
|
30,336
|
|
Total securities |
|
|
2,334,835
|
|
|
|
2,400,085
|
|
|
|
2,541,330
|
|
|
|
2,688,802
|
|
|
|
2,808,571
|
|
|
|
2,490,044
|
|
|
|
3,018,616
|
|
Loans (including loans held for sale) |
|
|
9,467,437
|
|
|
|
9,436,287
|
|
|
|
9,260,028
|
|
|
|
9,038,204
|
|
|
|
8,933,501
|
|
|
|
9,302,037
|
|
|
|
8,797,498
|
|
Acquired loans |
|
|
77,797
|
|
|
|
82,641
|
|
|
|
91,217
|
|
|
|
104,316
|
|
|
|
127,747
|
|
|
|
88,903
|
|
|
|
179,808
|
|
Fed funds sold and rev repos |
|
|
184
|
|
|
|
3,662
|
|
|
|
34,057
|
|
|
|
277
|
|
|
|
843
|
|
|
|
9,529
|
|
|
|
716
|
|
Other earning assets |
|
|
227,116
|
|
|
|
176,163
|
|
|
|
316,604
|
|
|
|
243,493
|
|
|
|
200,282
|
|
|
|
240,622
|
|
|
|
197,431
|
|
Total earning assets |
|
|
12,107,369
|
|
|
|
12,098,838
|
|
|
|
12,243,236
|
|
|
|
12,075,092
|
|
|
|
12,070,944
|
|
|
|
12,131,135
|
|
|
|
12,194,069
|
|
Allowance for loan losses |
|
|
(86,211
|
)
|
|
|
(83,756
|
)
|
|
|
(81,996
|
)
|
|
|
(82,227
|
)
|
|
|
(85,842
|
)
|
|
|
(83,559
|
)
|
|
|
(85,252
|
)
|
Other assets |
|
|
1,445,075
|
|
|
|
1,447,977
|
|
|
|
1,467,462
|
|
|
|
1,447,611
|
|
|
|
1,362,831
|
|
|
|
1,452,012
|
|
|
|
1,364,420
|
|
Total assets |
|
$
|
13,466,233
|
|
|
$
|
13,463,059
|
|
|
$
|
13,628,702
|
|
|
$
|
13,440,476
|
|
|
$
|
13,347,933
|
|
|
$
|
13,499,588
|
|
|
$
|
13,473,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$
|
3,167,256
|
|
|
$
|
3,085,758
|
|
|
$
|
3,048,876
|
|
|
$
|
2,899,467
|
|
|
$
|
2,722,841
|
|
|
$
|
3,051,170
|
|
|
$
|
2,543,463
|
|
Savings deposits |
|
|
3,448,899
|
|
|
|
3,568,403
|
|
|
|
3,801,187
|
|
|
|
3,786,835
|
|
|
|
3,565,682
|
|
|
|
3,650,178
|
|
|
|
3,720,987
|
|
Time deposits |
|
|
1,663,741
|
|
|
|
1,753,083
|
|
|
|
1,840,065
|
|
|
|
1,881,556
|
|
|
|
1,892,983
|
|
|
|
1,783,928
|
|
|
|
1,823,562
|
|
Total interest-bearing deposits |
|
|
8,279,896
|
|
|
|
8,407,244
|
|
|
|
8,690,128
|
|
|
|
8,567,858
|
|
|
|
8,181,506
|
|
|
|
8,485,276
|
|
|
|
8,088,012
|
|
Fed funds purchased and repos |
|
|
164,754
|
|
|
|
142,064
|
|
|
|
51,264
|
|
|
|
84,352
|
|
|
|
340,094
|
|
|
|
110,915
|
|
|
|
329,649
|
|
Other borrowings |
|
|
79,512
|
|
|
|
78,404
|
|
|
|
81,352
|
|
|
|
90,804
|
|
|
|
90,252
|
|
|
|
82,476
|
|
|
|
317,687
|
|
Junior subordinated debt securities |
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
Total interest-bearing liabilities |
|
|
8,586,018
|
|
|
|
8,689,568
|
|
|
|
8,884,600
|
|
|
|
8,804,870
|
|
|
|
8,673,708
|
|
|
|
8,740,523
|
|
|
|
8,797,204
|
|
Noninterest-bearing deposits |
|
|
3,017,824
|
|
|
|
2,932,754
|
|
|
|
2,898,266
|
|
|
|
2,824,220
|
|
|
|
2,862,161
|
|
|
|
2,918,836
|
|
|
|
2,892,033
|
|
Other liabilities |
|
|
205,786
|
|
|
|
206,091
|
|
|
|
240,091
|
|
|
|
221,199
|
|
|
|
216,932
|
|
|
|
218,216
|
|
|
|
197,123
|
|
Total liabilities |
|
|
11,809,628
|
|
|
|
11,828,413
|
|
|
|
12,022,957
|
|
|
|
11,850,289
|
|
|
|
11,752,801
|
|
|
|
11,877,575
|
|
|
|
11,886,360
|
|
Shareholders' equity |
|
|
1,656,605
|
|
|
|
1,634,646
|
|
|
|
1,605,745
|
|
|
|
1,590,187
|
|
|
|
1,595,132
|
|
|
|
1,622,013
|
|
|
|
1,586,877
|
|
Total liabilities and equity |
|
$
|
13,466,233
|
|
|
$
|
13,463,059
|
|
|
$
|
13,628,702
|
|
|
$
|
13,440,476
|
|
|
$
|
13,347,933
|
|
|
$
|
13,499,588
|
|
|
$
|
13,473,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
December 31, 2019 |
($ in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
PERIOD END BALANCES |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
Cash and due from banks |
|
$
|
358,916
|
|
|
$
|
486,263
|
|
|
$
|
404,413
|
|
|
$
|
454,047
|
|
|
$
|
349,561
|
|
Fed funds sold and rev repos |
|
|
—
|
|
|
|
—
|
|
|
|
75,499
|
|
|
|
—
|
|
|
|
830
|
|
Securities available for sale |
|
|
1,602,404
|
|
|
|
1,553,705
|
|
|
|
1,643,725
|
|
|
|
1,723,445
|
|
|
|
1,811,813
|
|
Securities held to maturity |
|
|
738,099
|
|
|
|
785,422
|
|
|
|
825,536
|
|
|
|
884,319
|
|
|
|
909,643
|
|
Loans held for sale (LHFS) |
|
|
226,347
|
|
|
|
292,800
|
|
|
|
240,380
|
|
|
|
172,683
|
|
|
|
153,799
|
|
Loans held for investment (LHFI) |
|
|
9,335,628
|
|
|
|
9,223,668
|
|
|
|
9,116,759
|
|
|
|
8,995,014
|
|
|
|
8,835,868
|
|
Allowance for loan losses, LHFI |
|
|
(84,277
|
)
|
|
|
(83,226
|
)
|
|
|
(80,399
|
)
|
|
|
(79,005
|
)
|
|
|
(79,290
|
)
|
Net LHFI |
|
|
9,251,351
|
|
|
|
9,140,442
|
|
|
|
9,036,360
|
|
|
|
8,916,009
|
|
|
|
8,756,578
|
|
Acquired loans |
|
|
72,601
|
|
|
|
81,004
|
|
|
|
87,884
|
|
|
|
93,201
|
|
|
|
106,932
|
|
Allowance for loan losses, acquired loans |
|
|
(815
|
)
|
|
|
(1,249
|
)
|
|
|
(1,398
|
)
|
|
|
(1,297
|
)
|
|
|
(1,231
|
)
|
Net acquired loans |
|
|
71,786
|
|
|
|
79,755
|
|
|
|
86,486
|
|
|
|
91,904
|
|
|
|
105,701
|
|
Net LHFI and acquired loans |
|
|
9,323,137
|
|
|
|
9,220,197
|
|
|
|
9,122,846
|
|
|
|
9,007,913
|
|
|
|
8,862,279
|
|
Premises and equipment, net |
|
|
189,791
|
|
|
|
188,423
|
|
|
|
189,820
|
|
|
|
189,743
|
|
|
|
178,668
|
|
Mortgage servicing rights |
|
|
79,394
|
|
|
|
73,016
|
|
|
|
79,283
|
|
|
|
86,842
|
|
|
|
95,596
|
|
Goodwill |
|
|
379,627
|
|
|
|
379,627
|
|
|
|
379,627
|
|
|
|
379,627
|
|
|
|
379,627
|
|
Identifiable intangible assets |
|
|
7,343
|
|
|
|
8,345
|
|
|
|
9,101
|
|
|
|
10,092
|
|
|
|
11,112
|
|
Other real estate |
|
|
29,248
|
|
|
|
31,974
|
|
|
|
31,243
|
|
|
|
32,139
|
|
|
|
34,668
|
|
Operating lease right-of-use assets |
|
|
31,182
|
|
|
|
33,180
|
|
|
|
32,762
|
|
|
|
33,861
|
|
|
|
—
|
|
Other assets |
|
|
532,389
|
|
|
|
531,834
|
|
|
|
514,723
|
|
|
|
503,306
|
|
|
|
498,864
|
|
Total assets |
|
$
|
13,497,877
|
|
|
$
|
13,584,786
|
|
|
$
|
13,548,958
|
|
|
$
|
13,478,017
|
|
|
$
|
13,286,460
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$
|
2,891,215
|
|
|
$
|
3,064,127
|
|
|
$
|
2,909,141
|
|
|
$
|
2,867,778
|
|
|
$
|
2,937,594
|
|
Interest-bearing |
|
|
8,354,342
|
|
|
|
8,190,056
|
|
|
|
8,657,488
|
|
|
|
8,667,037
|
|
|
|
8,426,817
|
|
Total deposits |
|
|
11,245,557
|
|
|
|
11,254,183
|
|
|
|
11,566,629
|
|
|
|
11,534,815
|
|
|
|
11,364,411
|
|
Fed funds purchased and repos |
|
|
256,020
|
|
|
|
376,712
|
|
|
|
51,800
|
|
|
|
46,867
|
|
|
|
50,471
|
|
Other borrowings |
|
|
85,396
|
|
|
|
76,685
|
|
|
|
79,012
|
|
|
|
83,265
|
|
|
|
79,885
|
|
Junior subordinated debt securities |
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
|
|
61,856
|
|
Operating lease liabilities |
|
|
32,354
|
|
|
|
34,319
|
|
|
|
33,878
|
|
|
|
34,921
|
|
|
|
—
|
|
Other liabilities |
|
|
155,992
|
|
|
|
135,669
|
|
|
|
137,233
|
|
|
|
129,265
|
|
|
|
138,384
|
|
Total liabilities |
|
|
11,837,175
|
|
|
|
11,939,424
|
|
|
|
11,930,408
|
|
|
|
11,890,989
|
|
|
|
11,695,007
|
|
Common stock |
|
|
13,376
|
|
|
|
13,390
|
|
|
|
13,418
|
|
|
|
13,499
|
|
|
|
13,717
|
|
Capital surplus |
|
|
256,400
|
|
|
|
257,370
|
|
|
|
260,619
|
|
|
|
272,268
|
|
|
|
309,545
|
|
Retained earnings |
|
|
1,414,526
|
|
|
|
1,395,460
|
|
|
|
1,369,329
|
|
|
|
1,342,176
|
|
|
|
1,323,870
|
|
Accum other comprehensive loss, net of tax |
|
|
(23,600
|
)
|
|
|
(20,858
|
)
|
|
|
(24,816
|
)
|
|
|
(40,915
|
)
|
|
|
(55,679
|
)
|
Total shareholders' equity |
|
|
1,660,702
|
|
|
|
1,645,362
|
|
|
|
1,618,550
|
|
|
|
1,587,028
|
|
|
|
1,591,453
|
|
Total liabilities and equity |
|
$
|
13,497,877
|
|
|
$
|
13,584,786
|
|
|
$
|
13,548,958
|
|
|
$
|
13,478,017
|
|
|
$
|
13,286,460
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
December 31, 2019 |
($ in thousands except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
INCOME STATEMENTS |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
12/31/2019 |
|
12/31/2018 |
Interest and fees on LHFS & LHFI-FTE |
|
$
|
111,383
|
|
|
$
|
116,432
|
|
|
$
|
114,873
|
|
$
|
109,890
|
|
$
|
107,709
|
|
|
$
|
452,578
|
|
$
|
408,175
|
|
Interest and fees on acquired loans |
|
|
2,138
|
|
|
|
2,309
|
|
|
|
2,010
|
|
|
1,916
|
|
|
3,183
|
|
|
|
8,373
|
|
|
17,115
|
|
Interest on securities-taxable |
|
|
12,884
|
|
|
|
13,184
|
|
|
|
13,916
|
|
|
14,665
|
|
|
15,496
|
|
|
|
54,649
|
|
|
66,082
|
|
Interest on securities-tax exempt-FTE |
|
|
484
|
|
|
|
485
|
|
|
|
551
|
|
|
646
|
|
|
617
|
|
|
|
2,166
|
|
|
2,830
|
|
Interest on fed funds sold and rev repos |
|
|
1
|
|
|
|
23
|
|
|
|
214
|
|
|
2
|
|
|
4
|
|
|
|
240
|
|
|
14
|
|
Other interest income |
|
|
896
|
|
|
|
1,044
|
|
|
|
1,820
|
|
|
1,603
|
|
|
1,158
|
|
|
|
5,363
|
|
|
4,196
|
|
Total interest income-FTE |
|
|
127,786
|
|
|
|
133,477
|
|
|
|
133,384
|
|
|
128,722
|
|
|
128,167
|
|
|
|
523,369
|
|
|
498,412
|
|
Interest on deposits |
|
|
17,716
|
|
|
|
20,385
|
|
|
|
21,500
|
|
|
19,570
|
|
|
17,334
|
|
|
|
79,171
|
|
|
53,936
|
|
Interest on fed funds pch and repos |
|
|
504
|
|
|
|
547
|
|
|
|
81
|
|
|
288
|
|
|
1,528
|
|
|
|
1,420
|
|
|
4,788
|
|
Other interest expense |
|
|
826
|
|
|
|
830
|
|
|
|
831
|
|
|
825
|
|
|
894
|
|
|
|
3,312
|
|
|
7,468
|
|
Total interest expense |
|
|
19,046
|
|
|
|
21,762
|
|
|
|
22,412
|
|
|
20,683
|
|
|
19,756
|
|
|
|
83,903
|
|
|
66,192
|
|
Net interest income-FTE |
|
|
108,740
|
|
|
|
111,715
|
|
|
|
110,972
|
|
|
108,039
|
|
|
108,411
|
|
|
|
439,466
|
|
|
432,220
|
|
Provision for loan losses, LHFI |
|
|
3,661
|
|
|
|
3,039
|
|
|
|
2,486
|
|
|
1,611
|
|
|
2,192
|
|
|
|
10,797
|
|
|
17,993
|
|
Provision for loan losses, acquired loans |
|
|
(2
|
)
|
|
|
(140
|
)
|
|
|
106
|
|
|
78
|
|
|
(247
|
)
|
|
|
42
|
|
|
(1,005
|
)
|
Net interest income after provision-FTE |
|
|
105,081
|
|
|
|
108,816
|
|
|
|
108,380
|
|
|
106,350
|
|
|
106,466
|
|
|
|
428,627
|
|
|
415,232
|
|
Service charges on deposit accounts |
|
|
10,894
|
|
|
|
11,065
|
|
|
|
10,379
|
|
|
10,265
|
|
|
11,123
|
|
|
|
42,603
|
|
|
43,702
|
|
Bank card and other fees |
|
|
8,192
|
|
|
|
8,349
|
|
|
|
8,004
|
|
|
7,191
|
|
|
7,750
|
|
|
|
31,736
|
|
|
28,905
|
|
Mortgage banking, net |
|
|
7,914
|
|
|
|
8,171
|
|
|
|
10,295
|
|
|
3,442
|
|
|
5,716
|
|
|
|
29,822
|
|
|
34,674
|
|
Insurance commissions |
|
|
9,364
|
|
|
|
11,072
|
|
|
|
11,089
|
|
|
10,871
|
|
|
9,562
|
|
|
|
42,396
|
|
|
40,481
|
|
Wealth management |
|
|
7,763
|
|
|
|
7,691
|
|
|
|
7,742
|
|
|
7,483
|
|
|
7,504
|
|
|
|
30,679
|
|
|
30,338
|
|
Other, net |
|
|
3,451
|
|
|
|
1,989
|
|
|
|
2,130
|
|
|
2,239
|
|
|
1,904
|
|
|
|
9,809
|
|
|
6,736
|
|
Nonint inc-excl sec gains (losses), net |
|
|
47,578
|
|
|
|
48,337
|
|
|
|
49,639
|
|
|
41,491
|
|
|
43,559
|
|
|
|
187,045
|
|
|
184,836
|
|
Security gains (losses), net |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Total noninterest income |
|
|
47,578
|
|
|
|
48,337
|
|
|
|
49,639
|
|
|
41,491
|
|
|
43,559
|
|
|
|
187,045
|
|
|
184,836
|
|
Salaries and employee benefits |
|
|
62,319
|
|
|
|
62,495
|
|
|
|
61,949
|
|
|
60,954
|
|
|
58,736
|
|
|
|
247,717
|
|
|
238,033
|
|
Services and fees |
|
|
19,500
|
|
|
|
18,838
|
|
|
|
18,009
|
|
|
16,968
|
|
|
17,910
|
|
|
|
73,315
|
|
|
66,382
|
|
Net occupancy-premises |
|
|
6,461
|
|
|
|
6,831
|
|
|
|
6,403
|
|
|
6,454
|
|
|
6,741
|
|
|
|
26,149
|
|
|
26,703
|
|
Equipment expense |
|
|
5,880
|
|
|
|
5,971
|
|
|
|
5,958
|
|
|
5,924
|
|
|
6,329
|
|
|
|
23,733
|
|
|
24,830
|
|
Other real estate expense, net |
|
|
1,491
|
|
|
|
531
|
|
|
|
132
|
|
|
1,752
|
|
|
61
|
|
|
|
3,906
|
|
|
2,002
|
|
FDIC assessment expense |
|
|
1,450
|
|
|
|
1,400
|
|
|
|
1,836
|
|
|
1,758
|
|
|
1,897
|
|
|
|
6,444
|
|
|
9,429
|
|
Other expense |
|
|
12,926
|
|
|
|
10,787
|
|
|
|
11,814
|
|
|
12,211
|
|
|
12,253
|
|
|
|
47,738
|
|
|
48,036
|
|
Total noninterest expense |
|
|
110,027
|
|
|
|
106,853
|
|
|
|
106,101
|
|
|
106,021
|
|
|
103,927
|
|
|
|
429,002
|
|
|
415,415
|
|
Income before income taxes and tax eq adj |
|
|
42,632
|
|
|
|
50,300
|
|
|
|
51,918
|
|
|
41,820
|
|
|
46,098
|
|
|
|
186,670
|
|
|
184,653
|
|
Tax equivalent adjustment |
|
|
3,149
|
|
|
|
3,249
|
|
|
|
3,248
|
|
|
3,231
|
|
|
3,231
|
|
|
|
12,877
|
|
|
12,800
|
|
Income before income taxes |
|
|
39,483
|
|
|
|
47,051
|
|
|
|
48,670
|
|
|
38,589
|
|
|
42,867
|
|
|
|
173,793
|
|
|
171,853
|
|
Income taxes |
|
|
5,537
|
|
|
|
6,016
|
|
|
|
6,530
|
|
|
5,250
|
|
|
6,179
|
|
|
|
23,333
|
|
|
22,269
|
|
Net income |
|
$
|
33,946
|
|
|
$
|
41,035
|
|
|
$
|
42,140
|
|
$
|
33,339
|
|
$
|
36,688
|
|
|
$
|
150,460
|
|
$
|
149,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$
|
0.53
|
|
|
$
|
0.64
|
|
|
$
|
0.65
|
|
$
|
0.51
|
|
$
|
0.55
|
|
|
$
|
2.33
|
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
|
$
|
0.53
|
|
|
$
|
0.64
|
|
|
$
|
0.65
|
|
$
|
0.51
|
|
$
|
0.55
|
|
|
$
|
2.32
|
|
$
|
2.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share |
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
$
|
0.23
|
|
$
|
0.23
|
|
|
$
|
0.92
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
64,255,716
|
|
|
|
64,358,540
|
|
|
|
64,677,889
|
|
|
65,239,470
|
|
|
66,839,504
|
|
|
|
64,629,457
|
|
|
67,504,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
64,435,276
|
|
|
|
64,514,605
|
|
|
|
64,815,029
|
|
|
65,378,500
|
|
|
67,028,978
|
|
|
|
64,771,770
|
|
|
67,658,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares outstanding |
|
|
64,200,111
|
|
|
|
64,262,779
|
|
|
|
64,398,846
|
|
|
64,789,943
|
|
|
65,834,395
|
|
|
|
64,200,111
|
|
|
65,834,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
December 31, 2019 |
($ in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
NONPERFORMING ASSETS (1) |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
|
|
|
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
$
|
1,870
|
|
|
$
|
2,936
|
|
|
$
|
2,327
|
|
|
$
|
2,971
|
|
|
$
|
3,361
|
|
|
|
|
|
Florida |
|
|
267
|
|
|
|
311
|
|
|
|
330
|
|
|
|
408
|
|
|
|
1,175
|
|
|
|
|
|
Mississippi (2) |
|
|
41,493
|
|
|
|
43,895
|
|
|
|
39,373
|
|
|
|
41,145
|
|
|
|
44,331
|
|
|
|
|
|
Tennessee (3) |
|
|
8,980
|
|
|
|
10,193
|
|
|
|
8,455
|
|
|
|
8,806
|
|
|
|
8,696
|
|
|
|
|
|
Texas |
|
|
616
|
|
|
|
1,695
|
|
|
|
2,403
|
|
|
|
3,093
|
|
|
|
4,061
|
|
|
|
|
|
Total nonaccrual loans |
|
|
53,226
|
|
|
|
59,030
|
|
|
|
52,888
|
|
|
|
56,423
|
|
|
|
61,624
|
|
|
|
|
|
Other real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
|
8,133
|
|
|
|
6,501
|
|
|
|
6,451
|
|
|
|
6,878
|
|
|
|
6,873
|
|
|
|
|
|
Florida |
|
|
5,877
|
|
|
|
6,983
|
|
|
|
7,826
|
|
|
|
8,120
|
|
|
|
8,771
|
|
|
|
|
|
Mississippi (2) |
|
|
14,919
|
|
|
|
17,646
|
|
|
|
15,511
|
|
|
|
15,421
|
|
|
|
17,255
|
|
|
|
|
|
Tennessee (3) |
|
|
319
|
|
|
|
844
|
|
|
|
815
|
|
|
|
994
|
|
|
|
1,025
|
|
|
|
|
|
Texas |
|
|
—
|
|
|
|
—
|
|
|
|
640
|
|
|
|
726
|
|
|
|
744
|
|
|
|
|
|
Total other real estate |
|
|
29,248
|
|
|
|
31,974
|
|
|
|
31,243
|
|
|
|
32,139
|
|
|
|
34,668
|
|
|
|
|
|
Total nonperforming assets |
|
$
|
82,474
|
|
|
$
|
91,004
|
|
|
$
|
84,131
|
|
|
$
|
88,562
|
|
|
$
|
96,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS PAST DUE OVER 90 DAYS (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LHFI |
|
$
|
642
|
|
|
$
|
878
|
|
|
$
|
1,245
|
|
|
$
|
670
|
|
|
$
|
856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LHFS-Guaranteed GNMA serviced loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(no obligation to repurchase) |
|
$
|
41,648
|
|
|
$
|
36,445
|
|
|
$
|
38,355
|
|
|
$
|
40,793
|
|
|
$
|
37,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
ALLOWANCE FOR LOAN LOSSES (1) |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
12/31/2019 |
|
12/31/2018 |
Beginning Balance |
|
$
|
83,226
|
|
|
$
|
80,399
|
|
|
$
|
79,005
|
|
|
$
|
79,290
|
|
|
$
|
88,874
|
|
|
$
|
79,290
|
|
|
$
|
76,733
|
|
Transfers (4) |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,554
|
|
Provision for loan losses |
|
|
3,661
|
|
|
|
3,039
|
|
|
|
2,486
|
|
|
|
1,611
|
|
|
|
2,192
|
|
|
|
10,797
|
|
|
|
17,993
|
|
Charge-offs |
|
|
(4,619
|
)
|
|
|
(2,892
|
)
|
|
|
(2,937
|
)
|
|
|
(4,033
|
)
|
|
|
(16,509
|
)
|
|
|
(14,481
|
)
|
|
|
(29,489
|
)
|
Recoveries |
|
|
2,009
|
|
|
|
2,680
|
|
|
|
1,845
|
|
|
|
2,137
|
|
|
|
4,733
|
|
|
|
8,671
|
|
|
|
12,499
|
|
Net (charge-offs) recoveries |
|
|
(2,610
|
)
|
|
|
(212
|
)
|
|
|
(1,092
|
)
|
|
|
(1,896
|
)
|
|
|
(11,776
|
)
|
|
|
(5,810
|
)
|
|
|
(16,990
|
)
|
Ending Balance |
|
$
|
84,277
|
|
|
$
|
83,226
|
|
|
$
|
80,399
|
|
|
$
|
79,005
|
|
|
$
|
79,290
|
|
|
$
|
84,277
|
|
|
$
|
79,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
$
|
(109
|
)
|
|
$
|
561
|
|
|
$
|
1,187
|
|
|
$
|
791
|
|
|
$
|
(346
|
)
|
|
$
|
2,430
|
|
|
$
|
1,299
|
|
Florida |
|
|
(108
|
)
|
|
|
(154
|
)
|
|
|
48
|
|
|
|
(595
|
)
|
|
|
(160
|
)
|
|
|
(809
|
)
|
|
|
(2,265
|
)
|
Mississippi (2) |
|
|
1,210
|
|
|
|
1,528
|
|
|
|
1,970
|
|
|
|
119
|
|
|
|
(3,594
|
)
|
|
|
4,827
|
|
|
|
208
|
|
Tennessee (3) |
|
|
1,956
|
|
|
|
2,175
|
|
|
|
514
|
|
|
|
(234
|
)
|
|
|
3,039
|
|
|
|
4,411
|
|
|
|
10,953
|
|
Texas |
|
|
712
|
|
|
|
(1,071
|
)
|
|
|
(1,233
|
)
|
|
|
1,530
|
|
|
|
3,253
|
|
|
|
(62
|
)
|
|
|
7,798
|
|
Total provision for loan losses |
|
$
|
3,661
|
|
|
$
|
3,039
|
|
|
$
|
2,486
|
|
|
$
|
1,611
|
|
|
$
|
2,192
|
|
|
$
|
10,797
|
|
|
$
|
17,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFFS (RECOVERIES) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama |
|
$
|
132
|
|
|
$
|
329
|
|
|
$
|
278
|
|
|
$
|
15
|
|
|
$
|
203
|
|
|
$
|
754
|
|
|
$
|
597
|
|
Florida |
|
|
(357
|
)
|
|
|
(136
|
)
|
|
|
(130
|
)
|
|
|
(227
|
)
|
|
|
(238
|
)
|
|
|
(850
|
)
|
|
|
(1,906
|
)
|
Mississippi (2) |
|
|
1,792
|
|
|
|
(391
|
)
|
|
|
907
|
|
|
|
2,130
|
|
|
|
(1,873
|
)
|
|
|
4,438
|
|
|
|
4,776
|
|
Tennessee (3) |
|
|
131
|
|
|
|
483
|
|
|
|
44
|
|
|
|
50
|
|
|
|
7,875
|
|
|
|
708
|
|
|
|
7,958
|
|
Texas |
|
|
912
|
|
|
|
(73
|
)
|
|
|
(7
|
)
|
|
|
(72
|
)
|
|
|
5,809
|
|
|
|
760
|
|
|
|
5,565
|
|
Total net charge-offs (recoveries) |
|
$
|
2,610
|
|
|
$
|
212
|
|
|
$
|
1,092
|
|
|
$
|
1,896
|
|
|
$
|
11,776
|
|
|
$
|
5,810
|
|
|
$
|
16,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes acquired loans. |
|
|
|
|
|
(2)
|
Mississippi includes Central and Southern Mississippi Regions. |
|
|
|
|
|
(3)
|
Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. |
|
|
|
|
|
(4)
|
The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition and the Reliance merger, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018. |
|
|
See Notes to Consolidated Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES |
CONSOLIDATED FINANCIAL INFORMATION |
December 31, 2019 |
(unaudited) |
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
FINANCIAL RATIOS AND OTHER DATA |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
12/31/2019 |
|
12/31/2018 |
Return on equity |
|
|
8.13
|
%
|
|
|
9.96
|
%
|
|
|
10.53
|
%
|
|
|
8.50
|
%
|
|
|
9.12
|
%
|
|
9.28
|
%
|
|
9.43
|
%
|
Return on average tangible equity |
|
|
10.85
|
%
|
|
|
13.31
|
%
|
|
|
14.14
|
%
|
|
|
11.55
|
%
|
|
|
12.41
|
%
|
|
12.45
|
%
|
|
12.86
|
%
|
Return on assets |
|
|
1.00
|
%
|
|
|
1.21
|
%
|
|
|
1.24
|
%
|
|
|
1.01
|
%
|
|
|
1.09
|
%
|
|
1.11
|
%
|
|
1.11
|
%
|
Interest margin - Yield - FTE |
|
|
4.19
|
%
|
|
|
4.38
|
%
|
|
|
4.37
|
%
|
|
|
4.32
|
%
|
|
|
4.21
|
%
|
|
4.31
|
%
|
|
4.09
|
%
|
Interest margin - Cost |
|
|
0.62
|
%
|
|
|
0.71
|
%
|
|
|
0.73
|
%
|
|
|
0.69
|
%
|
|
|
0.65
|
%
|
|
0.69
|
%
|
|
0.54
|
%
|
Net interest margin - FTE |
|
|
3.56
|
%
|
|
|
3.66
|
%
|
|
|
3.64
|
%
|
|
|
3.63
|
%
|
|
|
3.56
|
%
|
|
3.62
|
%
|
|
3.54
|
%
|
Efficiency ratio (1) |
|
|
68.08
|
%
|
|
|
64.98
|
%
|
|
|
64.55
|
%
|
|
|
68.08
|
%
|
|
|
66.58
|
%
|
|
66.38
|
%
|
|
65.23
|
%
|
Full-time equivalent employees |
|
|
2,844
|
|
|
|
2,835
|
|
|
|
2,819
|
|
|
|
2,839
|
|
|
|
2,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY RATIOS (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs/average loans |
|
|
0.11
|
%
|
|
|
0.01
|
%
|
|
|
0.05
|
%
|
|
|
0.09
|
%
|
|
|
0.52
|
%
|
|
0.06
|
%
|
|
0.19
|
%
|
Provision for loan losses/average loans |
|
|
0.15
|
%
|
|
|
0.13
|
%
|
|
|
0.11
|
%
|
|
|
0.07
|
%
|
|
|
0.10
|
%
|
|
0.12
|
%
|
|
0.20
|
%
|
Nonperforming loans/total loans (incl LHFS) |
|
|
0.56
|
%
|
|
|
0.62
|
%
|
|
|
0.57
|
%
|
|
|
0.62
|
%
|
|
|
0.69
|
%
|
|
|
|
|
Nonperforming assets/total loans (incl LHFS) |
|
|
0.86
|
%
|
|
|
0.96
|
%
|
|
|
0.90
|
%
|
|
|
0.97
|
%
|
|
|
1.07
|
%
|
|
|
|
|
Nonperforming assets/total loans (incl LHFS) +ORE |
|
|
0.86
|
%
|
|
|
0.95
|
%
|
|
|
0.90
|
%
|
|
|
0.96
|
%
|
|
|
1.07
|
%
|
|
|
|
|
ALL/total loans (excl LHFS) |
|
|
0.90
|
%
|
|
|
0.90
|
%
|
|
|
0.88
|
%
|
|
|
0.88
|
%
|
|
|
0.90
|
%
|
|
|
|
|
ALL-commercial/total commercial loans |
|
|
0.98
|
%
|
|
|
0.98
|
%
|
|
|
0.96
|
%
|
|
|
0.96
|
%
|
|
|
0.99
|
%
|
|
|
|
|
ALL-consumer/total consumer and home mortgage loans |
|
|
0.61
|
%
|
|
|
0.61
|
%
|
|
|
0.60
|
%
|
|
|
0.57
|
%
|
|
|
0.57
|
%
|
|
|
|
|
ALL/nonperforming loans |
|
|
158.34
|
%
|
|
|
140.99
|
%
|
|
|
152.02
|
%
|
|
|
140.02
|
%
|
|
|
128.67
|
%
|
|
|
|
|
ALL/nonperforming loans (excl specifically reviewed impaired loans) |
|
|
410.52
|
%
|
|
|
357.15
|
%
|
|
|
383.19
|
%
|
|
|
342.97
|
%
|
|
|
350.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity/total assets |
|
|
12.30
|
%
|
|
|
12.11
|
%
|
|
|
11.95
|
%
|
|
|
11.77
|
%
|
|
|
11.98
|
%
|
|
|
|
|
Tangible equity/tangible assets |
|
|
9.72
|
%
|
|
|
9.53
|
%
|
|
|
9.34
|
%
|
|
|
9.15
|
%
|
|
|
9.31
|
%
|
|
|
|
|
Tangible equity/risk-weighted assets |
|
|
11.58
|
%
|
|
|
11.50
|
%
|
|
|
11.39
|
%
|
|
|
11.35
|
%
|
|
|
11.11
|
%
|
|
|
|
|
Tier 1 leverage ratio |
|
|
10.48
|
%
|
|
|
10.34
|
%
|
|
|
10.03
|
%
|
|
|
10.05
|
%
|
|
|
10.26
|
%
|
|
|
|
|
Common equity tier 1 capital ratio |
|
|
11.93
|
%
|
|
|
11.83
|
%
|
|
|
11.76
|
%
|
|
|
11.88
|
%
|
|
|
11.77
|
%
|
|
|
|
|
Tier 1 risk-based capital ratio |
|
|
12.48
|
%
|
|
|
12.38
|
%
|
|
|
12.31
|
%
|
|
|
12.45
|
%
|
|
|
12.33
|
%
|
|
|
|
|
Total risk-based capital ratio |
|
|
13.25
|
%
|
|
|
13.15
|
%
|
|
|
13.07
|
%
|
|
|
13.21
|
%
|
|
|
13.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK PERFORMANCE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value-Close |
|
$
|
34.51
|
|
|
$
|
34.11
|
|
|
$
|
33.25
|
|
|
$
|
33.63
|
|
|
$
|
28.43
|
|
|
|
|
|
Book value |
|
$
|
25.87
|
|
|
$
|
25.60
|
|
|
$
|
25.13
|
|
|
$
|
24.49
|
|
|
$
|
24.17
|
|
|
|
|
|
Tangible book value |
|
$
|
19.84
|
|
|
$
|
19.57
|
|
|
$
|
19.10
|
|
|
$
|
18.48
|
|
|
$
|
18.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The efficiency ratio is noninterest expense (excluding amortization of purchased intangibles and other real estate expense, net) to total net interest income (FTE) and noninterest income (excluding security gains (losses), net and amortization of partnership tax credits). Any significant non-routine income and expense items are adjusted accordingly. |
(2)
|
Excludes acquired loans. |
|
|
|
|
|
|
|
See Notes to Consolidated Financials |
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2019
($ in thousands)
(unaudited)
Note 1 – Recently Effective Accounting Pronouncements
ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” became effective for Trustmark on January 1, 2020. Based upon preliminary modeling results, Management estimates the allowance related to loans to be in the range of $95.0 million to $120.0 million. Trustmark expects to recognize a one-time cumulative effect adjustment through retained earnings at the date of adoption.
In addition, Trustmark does not expect a material allowance for credit losses to be recorded on securities available for sale and held to maturity under ASU 2016-13 (Topic 326) due to the composition of these portfolios. Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal.
ASU 2016-02, “Leases (Topic 842)” became effective for Trustmark on January 1, 2019. As a result, during the first quarter of 2019, Trustmark recorded operating lease right-of-use assets and operating lease liabilities of $33.9 million and $34.9 million, respectively, in its consolidated balance sheet. In addition, Trustmark recorded finance lease right-of-use assets, net of accumulated depreciation of $11.2 million in premises and equipment, net and finance lease liabilities of $11.2 million in other borrowings. The effect on Trustmark’s consolidated income statement is considered immaterial.
Note 2 - Securities Available for Sale and Held to Maturity
The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity ($ in thousands):
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
SECURITIES AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agency obligations
|
|
$
|
22,327
|
|
|
$
|
24,697
|
|
|
$
|
26,646
|
|
|
$
|
28,008
|
|
|
$
|
30,335
|
|
Obligations of states and political subdivisions
|
|
|
25,465
|
|
|
|
35,001
|
|
|
|
38,698
|
|
|
|
50,954
|
|
|
|
50,676
|
|
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage pass-through securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed by GNMA
|
|
|
69,252
|
|
|
|
63,391
|
|
|
|
65,716
|
|
|
|
66,176
|
|
|
|
67,494
|
|
Issued by FNMA and FHLMC
|
|
|
713,356
|
|
|
|
589,962
|
|
|
|
624,364
|
|
|
|
645,958
|
|
|
|
666,684
|
|
Other residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
658,226
|
|
|
|
705,601
|
|
|
|
751,371
|
|
|
|
784,566
|
|
|
|
811,601
|
|
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
113,778
|
|
|
|
135,053
|
|
|
|
136,930
|
|
|
|
147,783
|
|
|
|
185,023
|
|
Total securities available for sale
|
|
$
|
1,602,404
|
|
|
$
|
1,553,705
|
|
|
$
|
1,643,725
|
|
|
$
|
1,723,445
|
|
|
$
|
1,811,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECURITIES HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agency obligations
|
|
$
|
3,781
|
|
|
$
|
3,770
|
|
|
$
|
3,758
|
|
|
$
|
3,747
|
|
|
$
|
3,736
|
|
Obligations of states and political subdivisions
|
|
|
31,781
|
|
|
|
31,806
|
|
|
|
32,860
|
|
|
|
35,352
|
|
|
|
35,783
|
|
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage pass-through securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed by GNMA
|
|
|
10,820
|
|
|
|
10,994
|
|
|
|
11,184
|
|
|
|
11,710
|
|
|
|
12,090
|
|
Issued by FNMA and FHLMC
|
|
|
96,631
|
|
|
|
102,048
|
|
|
|
106,755
|
|
|
|
111,962
|
|
|
|
115,133
|
|
Other residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
485,324
|
|
|
|
510,770
|
|
|
|
536,166
|
|
|
|
559,690
|
|
|
|
578,827
|
|
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
|
|
109,762
|
|
|
|
126,034
|
|
|
|
134,813
|
|
|
|
161,858
|
|
|
|
164,074
|
|
Total securities held to maturity
|
|
$
|
738,099
|
|
|
$
|
785,422
|
|
|
$
|
825,536
|
|
|
$
|
884,319
|
|
|
$
|
909,643
|
|
At December 31, 2019, the net unamortized, unrealized loss included in accumulated other comprehensive loss in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $12.1 million ($9.1 million, net of tax).
Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 97.5% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2019 ($ in thousands) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 3 – Loan Composition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LHFI BY TYPE (excluding acquired loans)
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
Loans secured by real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land development and other land loans
|
|
$
|
1,162,791
|
|
|
$
|
1,135,999
|
|
|
$
|
1,111,297
|
|
|
$
|
1,209,761
|
|
|
$
|
1,056,601
|
|
Secured by 1-4 family residential properties
|
|
|
1,855,913
|
|
|
|
1,820,455
|
|
|
|
1,818,126
|
|
|
|
1,810,872
|
|
|
|
1,825,492
|
|
Secured by nonfarm, nonresidential properties
|
|
|
2,475,245
|
|
|
|
2,442,308
|
|
|
|
2,326,312
|
|
|
|
2,241,072
|
|
|
|
2,220,914
|
|
Other real estate secured
|
|
|
724,480
|
|
|
|
668,667
|
|
|
|
635,839
|
|
|
|
528,032
|
|
|
|
543,820
|
|
Commercial and industrial loans
|
|
|
1,477,896
|
|
|
|
1,491,367
|
|
|
|
1,533,318
|
|
|
|
1,558,057
|
|
|
|
1,538,715
|
|
Consumer loans
|
|
|
175,738
|
|
|
|
176,894
|
|
|
|
176,133
|
|
|
|
176,619
|
|
|
|
182,448
|
|
State and other political subdivision loans
|
|
|
967,944
|
|
|
|
978,456
|
|
|
|
982,187
|
|
|
|
982,626
|
|
|
|
973,818
|
|
Other loans
|
|
|
495,621
|
|
|
|
509,522
|
|
|
|
533,547
|
|
|
|
487,975
|
|
|
|
494,060
|
|
LHFI
|
|
|
9,335,628
|
|
|
|
9,223,668
|
|
|
|
9,116,759
|
|
|
|
8,995,014
|
|
|
|
8,835,868
|
|
Allowance for loan losses
|
|
|
(84,277
|
)
|
|
|
(83,226
|
)
|
|
|
(80,399
|
)
|
|
|
(79,005
|
)
|
|
|
(79,290
|
)
|
Net LHFI
|
|
$
|
9,251,351
|
|
|
$
|
9,140,442
|
|
|
$
|
9,036,360
|
|
|
$
|
8,916,009
|
|
|
$
|
8,756,578
|
|
ACQUIRED LOANS BY TYPE
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
Loans secured by real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land development and other land loans
|
|
$
|
4,771
|
|
|
$
|
5,417
|
|
|
$
|
5,705
|
|
|
$
|
5,728
|
|
|
$
|
5,878
|
|
Secured by 1-4 family residential properties
|
|
|
17,525
|
|
|
|
18,437
|
|
|
|
19,967
|
|
|
|
21,441
|
|
|
|
22,556
|
|
Secured by nonfarm, nonresidential properties
|
|
|
38,206
|
|
|
|
40,930
|
|
|
|
43,444
|
|
|
|
46,492
|
|
|
|
47,979
|
|
Other real estate secured
|
|
|
3,946
|
|
|
|
6,887
|
|
|
|
7,416
|
|
|
|
8,026
|
|
|
|
8,253
|
|
Commercial and industrial loans
|
|
|
5,035
|
|
|
|
4,925
|
|
|
|
6,193
|
|
|
|
6,359
|
|
|
|
15,267
|
|
Consumer loans
|
|
|
520
|
|
|
|
593
|
|
|
|
852
|
|
|
|
1,033
|
|
|
|
1,356
|
|
Other loans
|
|
|
2,598
|
|
|
|
3,815
|
|
|
|
4,307
|
|
|
|
4,122
|
|
|
|
5,643
|
|
Acquired loans
|
|
|
72,601
|
|
|
|
81,004
|
|
|
|
87,884
|
|
|
|
93,201
|
|
|
|
106,932
|
|
Allowance for loan losses, acquired loans
|
|
|
(815
|
)
|
|
|
(1,249
|
)
|
|
|
(1,398
|
)
|
|
|
(1,297
|
)
|
|
|
(1,231
|
)
|
Net acquired loans
|
|
$
|
71,786
|
|
|
$
|
79,755
|
|
|
$
|
86,486
|
|
|
$
|
91,904
|
|
|
$
|
105,701
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2019 ($ in thousands) (unaudited) |
|
|
|
|
Note 3 – Loan Composition (continued)
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
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
|
|
$
|
1,162,791
|
|
|
$
|
396,640
|
|
|
$
|
87,073
|
|
|
$
|
360,458
|
|
|
$
|
22,998
|
|
|
$
|
295,622
|
|
Secured by 1-4 family residential properties
|
|
|
1,855,913
|
|
|
|
126,541
|
|
|
|
39,111
|
|
|
|
1,594,235
|
|
|
|
82,644
|
|
|
|
13,382
|
|
Secured by nonfarm, nonresidential properties
|
|
|
2,475,245
|
|
|
|
622,714
|
|
|
|
255,996
|
|
|
|
923,335
|
|
|
|
165,393
|
|
|
|
507,807
|
|
Other real estate secured
|
|
|
724,480
|
|
|
|
190,099
|
|
|
|
26,011
|
|
|
|
283,201
|
|
|
|
9,627
|
|
|
|
215,542
|
|
Commercial and industrial loans
|
|
|
1,477,896
|
|
|
|
227,792
|
|
|
|
22,479
|
|
|
|
721,854
|
|
|
|
315,794
|
|
|
|
189,977
|
|
Consumer loans
|
|
|
175,738
|
|
|
|
24,124
|
|
|
|
5,002
|
|
|
|
124,395
|
|
|
|
19,777
|
|
|
|
2,440
|
|
State and other political subdivision loans
|
|
|
967,944
|
|
|
|
106,218
|
|
|
|
38,763
|
|
|
|
613,476
|
|
|
|
27,447
|
|
|
|
182,040
|
|
Other loans
|
|
|
495,621
|
|
|
|
79,404
|
|
|
|
16,452
|
|
|
|
301,144
|
|
|
|
67,526
|
|
|
|
31,095
|
|
Loans
|
|
$
|
9,335,628
|
|
|
$
|
1,773,532
|
|
|
$
|
490,887
|
|
|
$
|
4,922,098
|
|
|
$
|
711,206
|
|
|
$
|
1,437,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION (1)
|
|
|
|
|
|
|
|
|
|
Lots
|
|
$
|
73,058
|
|
|
$
|
16,166
|
|
|
$
|
22,625
|
|
|
$
|
25,592
|
|
|
$
|
2,032
|
|
|
$
|
6,643
|
|
Development
|
|
|
60,881
|
|
|
|
13,327
|
|
|
|
8,365
|
|
|
|
28,390
|
|
|
|
4,714
|
|
|
|
6,085
|
|
Unimproved land
|
|
|
98,550
|
|
|
|
22,947
|
|
|
|
17,050
|
|
|
|
28,202
|
|
|
|
11,987
|
|
|
|
18,364
|
|
1-4 family construction
|
|
|
252,073
|
|
|
|
117,405
|
|
|
|
21,723
|
|
|
|
84,277
|
|
|
|
3,437
|
|
|
|
25,231
|
|
Other construction
|
|
|
678,229
|
|
|
|
226,795
|
|
|
|
17,310
|
|
|
|
193,997
|
|
|
|
828
|
|
|
|
239,299
|
|
Construction, land development and other land loans
|
|
$
|
1,162,791
|
|
|
$
|
396,640
|
|
|
$
|
87,073
|
|
|
$
|
360,458
|
|
|
$
|
22,998
|
|
|
$
|
295,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION (1)
|
|
|
|
|
|
|
|
|
|
Non-owner occupied:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
426,995
|
|
|
$
|
165,213
|
|
|
$
|
41,542
|
|
|
$
|
117,382
|
|
|
$
|
27,709
|
|
|
$
|
75,149
|
|
Office
|
|
|
232,572
|
|
|
|
46,550
|
|
|
|
27,788
|
|
|
|
60,682
|
|
|
|
11,816
|
|
|
|
85,736
|
|
Hotel/motel
|
|
|
315,270
|
|
|
|
114,786
|
|
|
|
96,401
|
|
|
|
52,375
|
|
|
|
40,708
|
|
|
|
11,000
|
|
Mini-storage
|
|
|
110,097
|
|
|
|
12,301
|
|
|
|
3,832
|
|
|
|
47,561
|
|
|
|
579
|
|
|
|
45,824
|
|
Industrial
|
|
|
169,165
|
|
|
|
57,741
|
|
|
|
10,833
|
|
|
|
28,790
|
|
|
|
2,322
|
|
|
|
69,479
|
|
Health care
|
|
|
37,366
|
|
|
|
11,065
|
|
|
|
3,462
|
|
|
|
19,055
|
|
|
|
—
|
|
|
|
3,784
|
|
Convenience stores
|
|
|
24,283
|
|
|
|
3,137
|
|
|
|
—
|
|
|
|
11,680
|
|
|
|
639
|
|
|
|
8,827
|
|
Nursing homes/senior living
|
|
|
38,370
|
|
|
|
18,792
|
|
|
|
—
|
|
|
|
2,366
|
|
|
|
—
|
|
|
|
17,212
|
|
Other
|
|
|
63,485
|
|
|
|
4,219
|
|
|
|
6,875
|
|
|
|
11,965
|
|
|
|
5,804
|
|
|
|
34,622
|
|
Total non-owner occupied loans
|
|
|
1,417,603
|
|
|
|
433,804
|
|
|
|
190,733
|
|
|
|
351,856
|
|
|
|
89,577
|
|
|
|
351,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office
|
|
|
155,787
|
|
|
|
35,147
|
|
|
|
27,512
|
|
|
|
58,023
|
|
|
|
7,389
|
|
|
|
27,716
|
|
Churches
|
|
|
99,737
|
|
|
|
22,690
|
|
|
|
6,350
|
|
|
|
42,265
|
|
|
|
13,794
|
|
|
|
14,638
|
|
Industrial warehouses
|
|
|
139,685
|
|
|
|
11,778
|
|
|
|
3,372
|
|
|
|
63,204
|
|
|
|
16,289
|
|
|
|
45,042
|
|
Health care
|
|
|
132,838
|
|
|
|
18,305
|
|
|
|
6,175
|
|
|
|
92,828
|
|
|
|
2,542
|
|
|
|
12,988
|
|
Convenience stores
|
|
|
106,175
|
|
|
|
13,277
|
|
|
|
7,044
|
|
|
|
63,969
|
|
|
|
667
|
|
|
|
21,218
|
|
Retail
|
|
|
69,311
|
|
|
|
15,610
|
|
|
|
7,377
|
|
|
|
27,333
|
|
|
|
2,788
|
|
|
|
16,203
|
|
Restaurants
|
|
|
56,369
|
|
|
|
3,730
|
|
|
|
1,857
|
|
|
|
32,722
|
|
|
|
16,542
|
|
|
|
1,518
|
|
Auto dealerships
|
|
|
30,123
|
|
|
|
8,257
|
|
|
|
300
|
|
|
|
13,288
|
|
|
|
8,278
|
|
|
|
—
|
|
Nursing homes/senior living
|
|
|
179,737
|
|
|
|
55,174
|
|
|
|
—
|
|
|
|
118,707
|
|
|
|
5,856
|
|
|
|
—
|
|
Other
|
|
|
87,880
|
|
|
|
4,942
|
|
|
|
5,276
|
|
|
|
59,140
|
|
|
|
1,671
|
|
|
|
16,851
|
|
Total owner-occupied loans
|
|
|
1,057,642
|
|
|
|
188,910
|
|
|
|
65,263
|
|
|
|
571,479
|
|
|
|
75,816
|
|
|
|
156,174
|
|
Loans secured by nonfarm, nonresidential properties
|
|
$
|
2,475,245
|
|
|
$
|
622,714
|
|
|
$
|
255,996
|
|
|
$
|
923,335
|
|
|
$
|
165,393
|
|
|
$
|
507,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes acquired loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2019
($ in thousands)
(unaudited)
Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities
The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
Securities – taxable
|
|
|
2.24
|
%
|
|
|
2.23
|
%
|
|
|
2.25
|
%
|
|
|
2.27
|
%
|
|
|
2.24
|
%
|
|
|
2.25
|
%
|
|
|
2.25
|
%
|
Securities – nontaxable
|
|
|
3.92
|
%
|
|
|
3.76
|
%
|
|
|
3.78
|
%
|
|
|
3.80
|
%
|
|
|
3.60
|
%
|
|
|
3.81
|
%
|
|
|
3.65
|
%
|
Securities – total
|
|
|
2.27
|
%
|
|
|
2.26
|
%
|
|
|
2.28
|
%
|
|
|
2.31
|
%
|
|
|
2.28
|
%
|
|
|
2.28
|
%
|
|
|
2.28
|
%
|
Loans - LHFI & LHFS
|
|
|
4.67
|
%
|
|
|
4.90
|
%
|
|
|
4.98
|
%
|
|
|
4.93
|
%
|
|
|
4.78
|
%
|
|
|
4.87
|
%
|
|
|
4.64
|
%
|
Acquired loans
|
|
|
10.90
|
%
|
|
|
11.08
|
%
|
|
|
8.84
|
%
|
|
|
7.45
|
%
|
|
|
9.89
|
%
|
|
|
9.42
|
%
|
|
|
9.52
|
%
|
Loans - total
|
|
|
4.72
|
%
|
|
|
4.95
|
%
|
|
|
5.01
|
%
|
|
|
4.96
|
%
|
|
|
4.86
|
%
|
|
|
4.91
|
%
|
|
|
4.74
|
%
|
FF sold & rev repo
|
|
|
2.16
|
%
|
|
|
2.49
|
%
|
|
|
2.52
|
%
|
|
|
2.93
|
%
|
|
|
1.88
|
%
|
|
|
2.52
|
%
|
|
|
1.96
|
%
|
Other earning assets
|
|
|
1.57
|
%
|
|
|
2.35
|
%
|
|
|
2.31
|
%
|
|
|
2.67
|
%
|
|
|
2.29
|
%
|
|
|
2.23
|
%
|
|
|
2.13
|
%
|
Total earning assets
|
|
|
4.19
|
%
|
|
|
4.38
|
%
|
|
|
4.37
|
%
|
|
|
4.32
|
%
|
|
|
4.21
|
%
|
|
|
4.31
|
%
|
|
|
4.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
|
0.85
|
%
|
|
|
0.96
|
%
|
|
|
0.99
|
%
|
|
|
0.93
|
%
|
|
|
0.84
|
%
|
|
|
0.93
|
%
|
|
|
0.67
|
%
|
FF pch & repo
|
|
|
1.21
|
%
|
|
|
1.53
|
%
|
|
|
0.63
|
%
|
|
|
1.38
|
%
|
|
|
1.78
|
%
|
|
|
1.28
|
%
|
|
|
1.45
|
%
|
Other borrowings
|
|
|
2.32
|
%
|
|
|
2.35
|
%
|
|
|
2.33
|
%
|
|
|
2.19
|
%
|
|
|
2.33
|
%
|
|
|
2.29
|
%
|
|
|
1.97
|
%
|
Total interest-bearing liabilities
|
|
|
0.88
|
%
|
|
|
0.99
|
%
|
|
|
1.01
|
%
|
|
|
0.95
|
%
|
|
|
0.90
|
%
|
|
|
0.96
|
%
|
|
|
0.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
3.56
|
%
|
|
|
3.66
|
%
|
|
|
3.64
|
%
|
|
|
3.63
|
%
|
|
|
3.56
|
%
|
|
|
3.62
|
%
|
|
|
3.54
|
%
|
Net interest margin excluding acquired loans
|
|
|
3.52
|
%
|
|
|
3.61
|
%
|
|
|
3.60
|
%
|
|
|
3.60
|
%
|
|
|
3.50
|
%
|
|
|
3.58
|
%
|
|
|
3.46
|
%
|
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.
During the fourth quarter of 2019, the yield on acquired loans totaled 10.90% and included $661 thousand in recoveries from the settlement of debt, which represented approximately 3.37% of the annualized total acquired loan yield. During the third quarter of 2019, the yield on acquired loans totaled 11.08% and included $1.1 million in recoveries from the settlement of debt, which represented approximately 5.09% of the annualized total acquired loan yield.
Excluding acquired loans, the net interest margin decreased to 3.52% for the fourth quarter of 2019 when compared to the third quarter of 2019, primarily due to a decline in the yield on the loans held for investment and held for sale portfolio and was partially offset by runoff of maturing investment securities and lower costs of interest-bearing deposits.
Note 5 – Mortgage Banking
Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative ineffectiveness of $3.0 million primarily due to market volatility and adjustments to asset valuation assumptions during the fourth quarter of 2019.
The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
Mortgage servicing income, net
|
|
$
|
5,854
|
|
|
$
|
5,688
|
|
|
$
|
5,734
|
|
|
$
|
5,607
|
|
|
$
|
5,730
|
|
|
$
|
22,883
|
|
|
$
|
22,248
|
|
Change in fair value-MSR from runoff
|
|
|
(2,950
|
)
|
|
|
(3,569
|
)
|
|
|
(2,918
|
)
|
|
|
(2,398
|
)
|
|
|
(2,752
|
)
|
|
|
(11,835
|
)
|
|
|
(11,774
|
)
|
Gain on sales of loans, net (1)
|
|
|
7,984
|
|
|
|
9,799
|
|
|
|
7,532
|
|
|
|
4,981
|
|
|
|
3,813
|
|
|
|
30,296
|
|
|
|
21,800
|
|
Mortgage banking income before hedge ineffectiveness
|
|
|
10,888
|
|
|
|
11,918
|
|
|
|
10,348
|
|
|
|
8,190
|
|
|
|
6,791
|
|
|
|
41,344
|
|
|
|
32,274
|
|
Change in fair value-MSR from market changes
|
|
|
4,048
|
|
|
|
(8,054
|
)
|
|
|
(8,209
|
)
|
|
|
(8,863
|
)
|
|
|
(6,537
|
)
|
|
|
(21,078
|
)
|
|
|
7,342
|
|
Change in fair value of derivatives
|
|
|
(7,022
|
)
|
|
|
4,307
|
|
|
|
8,156
|
|
|
|
4,115
|
|
|
|
5,462
|
|
|
|
9,556
|
|
|
|
(4,942
|
)
|
Net positive (negative) hedge ineffectiveness
|
|
|
(2,974
|
)
|
|
|
(3,747
|
)
|
|
|
(53
|
)
|
|
|
(4,748
|
)
|
|
|
(1,075
|
)
|
|
|
(11,522
|
)
|
|
|
2,400
|
|
Mortgage banking, net
|
|
$
|
7,914
|
|
|
$
|
8,171
|
|
|
$
|
10,295
|
|
|
$
|
3,442
|
|
|
$
|
5,716
|
|
|
$
|
29,822
|
|
|
$
|
34,674
|
|
(1) |
The mortgage loan valuation adjustment, previously shown as “Other, net”, has been included in “Gain on sales of loans, net” for all periods presented.
|
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
December 31, 2019
($ in thousands)
(unaudited)
Note 6 – Other Noninterest Income and Expense
Other noninterest income consisted of the following for the periods presented ($ in thousands):
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
Partnership amortization for tax credit purposes
|
|
$
|
(1,630
|
)
|
|
$
|
(1,994
|
)
|
|
$
|
(2,010
|
)
|
|
$
|
(2,010
|
)
|
|
$
|
(2,101
|
)
|
|
$
|
(7,644
|
)
|
|
$
|
(8,707
|
)
|
Increase in life insurance cash surrender value
|
|
|
1,802
|
|
|
|
1,814
|
|
|
|
1,803
|
|
|
|
1,783
|
|
|
|
1,808
|
|
|
|
7,202
|
|
|
|
7,121
|
|
Other miscellaneous income
|
|
|
3,279
|
|
|
|
2,169
|
|
|
|
2,337
|
|
|
|
2,466
|
|
|
|
2,197
|
|
|
|
10,251
|
|
|
|
8,322
|
|
Total other, net
|
|
$
|
3,451
|
|
|
$
|
1,989
|
|
|
$
|
2,130
|
|
|
$
|
2,239
|
|
|
$
|
1,904
|
|
|
$
|
9,809
|
|
|
$
|
6,736
|
|
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 ($ in thousands):
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
Loan expense
|
|
$
|
2,968
|
|
|
$
|
2,886
|
|
|
$
|
3,003
|
|
|
$
|
2,697
|
|
|
$
|
2,425
|
|
|
$
|
11,554
|
|
|
$
|
11,086
|
|
Amortization of intangibles
|
|
|
1,002
|
|
|
|
1,021
|
|
|
|
992
|
|
|
|
1,101
|
|
|
|
1,279
|
|
|
|
4,116
|
|
|
|
5,248
|
|
Other miscellaneous expense
|
|
|
8,956
|
|
|
|
6,880
|
|
|
|
7,819
|
|
|
|
8,413
|
|
|
|
8,549
|
|
|
|
32,068
|
|
|
|
31,702
|
|
Total other expense
|
|
$
|
12,926
|
|
|
$
|
10,787
|
|
|
$
|
11,814
|
|
|
$
|
12,211
|
|
|
$
|
12,253
|
|
|
$
|
47,738
|
|
|
$
|
48,036
|
|
Note 7 – Non-GAAP Financial Measures
In addition to capital ratios defined by U.S. generally accepted accounting principles (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. 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 tangible 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 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, 2019 ($ in thousands except per share data) (unaudited) |
|
Note 7 – Non-GAAP Financial Measures (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
6/30/2019
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
TANGIBLE EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
1,656,605
|
|
|
$
|
1,634,646
|
|
|
$
|
1,605,745
|
|
|
$
|
1,590,187
|
|
|
$
|
1,595,132
|
|
|
$
|
1,622,013
|
|
|
$
|
1,586,877
|
|
Less: Goodwill
|
|
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
Identifiable intangible assets
|
|
|
|
|
(7,882
|
)
|
|
|
(8,706
|
)
|
|
|
(9,631
|
)
|
|
|
(10,666
|
)
|
|
|
(11,811
|
)
|
|
|
(9,212
|
)
|
|
|
(13,751
|
)
|
Total average tangible equity
|
|
|
|
$
|
1,269,096
|
|
|
$
|
1,246,313
|
|
|
$
|
1,216,487
|
|
|
$
|
1,199,894
|
|
|
$
|
1,203,694
|
|
|
$
|
1,233,174
|
|
|
$
|
1,193,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERIOD END BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
1,660,702
|
|
|
$
|
1,645,362
|
|
|
$
|
1,618,550
|
|
|
$
|
1,587,028
|
|
|
$
|
1,591,453
|
|
|
|
|
|
|
|
|
|
Less: Goodwill
|
|
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
|
|
|
|
|
|
Identifiable intangible assets
|
|
|
|
|
(7,343
|
)
|
|
|
(8,345
|
)
|
|
|
(9,101
|
)
|
|
|
(10,092
|
)
|
|
|
(11,112
|
)
|
|
|
|
|
|
|
|
|
Total tangible equity
|
|
(a)
|
|
$
|
1,273,732
|
|
|
$
|
1,257,390
|
|
|
$
|
1,229,822
|
|
|
$
|
1,197,309
|
|
|
$
|
1,200,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
13,497,877
|
|
|
$
|
13,584,786
|
|
|
$
|
13,548,958
|
|
|
$
|
13,478,017
|
|
|
$
|
13,286,460
|
|
|
|
|
|
|
|
|
|
Less: Goodwill
|
|
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
(379,627
|
)
|
|
|
|
|
|
|
|
|
Identifiable intangible assets
|
|
|
|
|
(7,343
|
)
|
|
|
(8,345
|
)
|
|
|
(9,101
|
)
|
|
|
(10,092
|
)
|
|
|
(11,112
|
)
|
|
|
|
|
|
|
|
|
Total tangible assets
|
|
(b)
|
|
$
|
13,110,907
|
|
|
$
|
13,196,814
|
|
|
$
|
13,160,230
|
|
|
$
|
13,088,298
|
|
|
$
|
12,895,721
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
|
|
(c)
|
|
$
|
11,002,877
|
|
|
$
|
10,935,018
|
|
|
$
|
10,796,903
|
|
|
$
|
10,548,472
|
|
|
$
|
10,803,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
33,946
|
|
|
$
|
41,035
|
|
|
$
|
42,140
|
|
|
$
|
33,339
|
|
|
$
|
36,688
|
|
|
$
|
150,460
|
|
|
$
|
149,584
|
|
Plus: Intangible amortization net of tax
|
|
|
|
|
752
|
|
|
|
766
|
|
|
|
744
|
|
|
|
826
|
|
|
|
959
|
|
|
|
3,088
|
|
|
|
3,938
|
|
Net income adjusted for intangible amortization
|
|
$
|
34,698
|
|
|
$
|
41,801
|
|
|
$
|
42,884
|
|
|
$
|
34,165
|
|
|
$
|
37,647
|
|
|
$
|
153,548
|
|
|
$
|
153,522
|
|
Period end common shares outstanding
|
|
(d)
|
|
|
64,200,111
|
|
|
|
64,262,779
|
|
|
|
64,398,846
|
|
|
|
64,789,943
|
|
|
|
65,834,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON EQUITY MEASUREMENTS
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity (1)
|
|
|
|
|
10.85
|
%
|
|
|
13.31
|
%
|
|
|
14.14
|
%
|
|
|
11.55
|
%
|
|
|
12.41
|
%
|
|
|
12.45
|
%
|
|
|
12.86
|
%
|
Tangible equity/tangible assets
|
|
(a)/(b)
|
|
|
9.72
|
%
|
|
|
9.53
|
%
|
|
|
9.34
|
%
|
|
|
9.15
|
%
|
|
|
9.31
|
%
|
|
|
|
|
|
|
|
|
Tangible equity/risk-weighted assets
|
|
(a)/(c)
|
|
|
11.58
|
%
|
|
|
11.50
|
%
|
|
|
11.39
|
%
|
|
|
11.35
|
%
|
|
|
11.11
|
%
|
|
|
|
|
|
|
|
|
Tangible book value
|
|
(a)/(d)*1,000
|
|
$
|
19.84
|
|
|
$
|
19.57
|
|
|
$
|
19.10
|
|
|
$
|
18.48
|
|
|
$
|
18.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON EQUITY TIER 1 CAPITAL (CET1)
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
1,660,702
|
|
|
$
|
1,645,362
|
|
|
$
|
1,618,550
|
|
|
$
|
1,587,028
|
|
|
$
|
1,591,453
|
|
|
|
|
|
|
|
|
|
AOCI-related adjustments
|
|
|
|
|
23,600
|
|
|
|
20,858
|
|
|
|
24,816
|
|
|
|
40,915
|
|
|
|
55,679
|
|
|
|
|
|
|
|
|
|
CET1 adjustments and deductions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill net of associated deferred tax liabilities (DTLs)
|
|
|
(365,738
|
)
|
|
|
(365,741
|
)
|
|
|
(365,745
|
)
|
|
|
(365,748
|
)
|
|
|
(365,779
|
)
|
|
|
|
|
|
|
|
|
Other adjustments and deductions for CET1 (2)
|
|
|
(5,896
|
)
|
|
|
(6,671
|
)
|
|
|
(8,268
|
)
|
|
|
(9,099
|
)
|
|
|
(9,815
|
)
|
|
|
|
|
|
|
|
|
CET1 capital
|
|
(e)
|
|
|
1,312,668
|
|
|
|
1,293,808
|
|
|
|
1,269,353
|
|
|
|
1,253,096
|
|
|
|
1,271,538
|
|
|
|
|
|
|
|
|
|
Additional tier 1 capital instruments plus related surplus
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
|
|
|
|
|
|
Less: additional tier 1 capital deductions
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Additional tier 1 capital
|
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
|
|
|
|
$
|
1,372,668
|
|
|
$
|
1,353,808
|
|
|
$
|
1,329,353
|
|
|
$
|
1,313,096
|
|
|
$
|
1,331,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio
|
|
(e)/(c)
|
|
|
11.93
|
%
|
|
|
11.83
|
%
|
|
|
11.76
|
%
|
|
|
11.88
|
%
|
|
|
11.77
|
%
|
|
|
|
|
|
|
|
|
(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.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200128005708/en/
Copyright Business Wire 2020
Source: Business Wire
(January 28, 2020 - 4:30 PM EST)
News by QuoteMedia
www.quotemedia.com
|