Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2019 Financial Results

Nachrichtenquelle: Business Wire (engl.)
28.01.2020, 22:30  |  104   |   |   

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.

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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