Trustmark Corporation Announces First Quarter 2023 Financial Results

Trustmark Corporation (NASDAQGS:TRMK) reported net income of $50.3 million in the first quarter of 2023, representing diluted earnings per share of $0.82. Trustmark’s performance during the first quarter produced a return on average tangible equity of 18.03% and a return on average assets of 1.10%. The Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2023, to shareholders of record on June 1, 2023.

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First Quarter Highlights

• Loan and deposit growth continued during the first quarter
• Credit quality remained strong
• Noninterest income increased linked-quarter, reflecting the strength of diversified business lines
• Expense discipline continued, noninterest expense decreased linked-quarter

Duane A. Dewey, President and CEO, stated, “Our first quarter financial performance reflects solid loan and deposit growth, strong performance in our mortgage, insurance and wealth management businesses, and diligent expense management. Our overall strong performance was impacted by increasingly competitive deposit costs during the quarter, which compressed our net interest margin. Trustmark has a strong, diversified and proven business model that has stood the test of time. We remain well-positioned and committed to meeting our customers’ needs despite the challenging financial services environment. Our balance sheet is well-positioned for additional increases in interest rates and credit quality remains solid. We continue to focus on efficiency enhancements throughout the organization as well as investments in technology to better serve customers.”

Balance Sheet Management

• Loans held for investment (HFI) increased $293.2 million, or 2.4%, during the quarter
• Total deposits increased $346.0 million, or 2.4%, during the quarter
• Maintained strong capital position with CET1 ratio of 9.76% and total risk-based capital ratio of 11.95%

Loans HFI totaled $12.5 billion at March 31, 2023, reflecting an increase of $293.2 million, or 2.4%, linked-quarter and $2.1 billion, or 20.2%, year-over-year. The linked-quarter growth was broad-based and reflected increases in all categories with the exception of state and political subdivisions and consumer loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.8 billion at March 31, 2023, up $346.0 million, or 2.4%, from the prior quarter and down $329.6 million, or 2.2%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 84.5% of total deposits at March 31, 2023. Migration into higher-yielding products continued to drive a change in deposit mix from noninterest-bearing deposits, which represented 25.7% of total deposits at March 31, 2023. Interest-bearing deposit costs totaled 1.53% for the first quarter, while the total cost of deposits was 1.13%. The total cost of interest-bearing liabilities was 1.98% for the first quarter of 2023.

During the first quarter, Trustmark did not repurchase any of its outstanding common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2023, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2023. At March 31, 2023, Trustmark’s tangible equity to tangible assets ratio was 6.35%, while the total risk-based capital ratio was 11.95%. Tangible book value per share was $19.24 at March 31, 2023, an increase of 6.2% from the prior quarter.

Credit Quality

• Nonperforming assets represented 0.58% of loans HFI and loans held for sale (HFS) at March 31, 2023
• Net charge-offs totaled 0.04% of average loans in the first quarter
• Allowance for credit losses (ACL) represented 0.98% of loans HFI and 320.80% of nonaccrual loans, excluding individually analyzed loans at March 31, 2023

Nonaccrual loans totaled $72.4 million at March 31, 2023, up $6.4 million from the prior quarter and an increase of $8.0 million year-over-year. Other real estate totaled $1.7 million, reflecting a $302 thousand decrease from the prior quarter and a $1.5 million decline from the prior year.

The provision for credit losses for loans HFI was $3.2 million in the first quarter and was primarily attributable to loan growth. The provision for credit losses for off-balance sheet credit exposures was a negative $2.2 million primarily driven by decreases in unfunded commitments. Collectively, the provision for credit losses totaled $1.0 million in the first quarter compared to $12.1 million in the prior quarter and a negative $2.0 million in the first quarter of 2022.

Allocation of Trustmark’s $122.2 million ACL on loans HFI represented 0.80% of commercial loans and 1.54% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 0.98% at March 31, 2023. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Noninterest income increased 13.7% linked-quarter to total $51.4 million, reflecting growth in mortgage banking, insurance and wealth management revenue
• Net interest income (FTE) totaled $141.1 million in the first quarter, down 6.0% linked-quarter

Revenue in the first quarter totaled $189.0 million, a decline of 1.5% from the prior quarter and an increase of 23.1% from the same quarter in the prior year. The linked-quarter decline primarily reflects lower net interest income offset in part by higher mortgage banking, insurance and wealth management revenue while the year-over-year growth is attributed to higher net interest income offset in part by reduced mortgage banking revenue.

Net interest income (FTE) in the first quarter totaled $141.1 million, resulting in a net interest margin of 3.39%, down 27 basis points from the prior quarter. The contraction of the net interest margin was primarily due to the costs of interest-bearing deposits more than offsetting the increased yields on the loans HFI and HFS portfolio and securities portfolio. Additionally, the margin was impacted by costs associated with the approximately $300 million increase in average on-balance sheet liquidity added during the quarter due to the uncertainty in the broader banking industry.

Noninterest income in the first quarter totaled $51.4 million, an increase of $6.2 million, or 13.7%, from the prior quarter and a decrease of $2.7 million, or 5.1%, year-over-year. The linked-quarter increases in mortgage banking, insurance, and wealth management revenue were offset in part by declines in service charges on deposit accounts and bank card and other fees. The decrease in noninterest income year-over-year is principally due to lower mortgage banking revenue.

Mortgage loan production in the first quarter totaled $361.1 million, down 7.6% from the prior quarter and 33.7% year-over-year. Mortgage banking revenue totaled $7.6 million in the first quarter, an increase of $4.2 million linked-quarter and a decrease of $2.2 million year-over-year. The linked-quarter increase was principally attributable to a decrease in net negative hedge ineffectiveness as well as a decline in runoff of mortgage servicing rights while the year-over-year decline was principally due to a decrease in net hedge ineffectiveness.

Insurance revenue totaled $14.3 million in the first quarter, up $2.3 million, or 19.0%, from the prior quarter and $216 thousand, or 1.5%, year-over-year. The linked-quarter and year-over-year increases primarily reflected growth in commercial property and casualty commissions. Wealth management revenue in the first quarter totaled $8.8 million, an increase of $701 thousand, or 8.7%, from the prior quarter and a decline of $274 thousand, or 3.0%, year-over-year. The linked-quarter growth reflected higher trust management revenue while the year-over-year decline reflected reduced brokerage revenue.

Noninterest Expense

• Salaries and employee benefits expense increased $587 thousand, or 0.8%, linked-quarter
• Services and fees declined $2.3 million, or 8.2%, linked-quarter
• Adjusted noninterest expense, which excludes ORE expense, amortization of intangibles, charitable contributions resulting in state tax credits, and litigation settlement expense totaled $127.5 million in the first quarter, down 1.7% from the prior quarter. Please refer to the Consolidated Financial Information, Note 7 – Non-GAAP Financial Measures

Noninterest expense in the first quarter totaled $128.3 million, a decrease of $2.2 million, or 1.6%, when compared to the prior quarter excluding the litigation settlement expense. Salaries and employee benefits increased $587 thousand linked-quarter as declines in salaries and commissions were more than offset by a seasonal increase in payroll taxes. Services and fees declined $2.3 million, or 8.2%, principally due to lower professional fees.

FIT2GROW

“In 2022 we announced FIT2GROW, a comprehensive program of Focus, Innovation and Transformation designed to enhance Trustmark’s ability to grow and serve customers. During the first quarter, we refocused our community bank efforts on commercial, small business, and consumer lines of business to provide additional expertise for our customers and enhance profitable revenue growth. We continue to rollout new technology to enhance the customer experience and improve efficiency and productivity. Additionally, our Atlanta loan production office is now fully functioning and is focused on Commercial Real Estate, Residential Real Estate, Corporate Banking, and Equipment Finance. We look forward to the contributions of these businesses to our financial results going forward,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 26, 2023, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing [phone] 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, May 10, 2023, in archived format at the same web address or by calling [phone], passcode 2946740.

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

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
													Linked Quarter							Year over Year
QUARTERLY AVERAGE BALANCES	3/31/2023				12/31/2022				3/31/2022				$ Change				% Change			$ Change				% Change
Securities AFS-taxable (1)	$	2,187,121			$	2,572,675			$	3,245,502			$	(385,554	)		-15.0	%		$	(1,058,381	)		-32.6	%
Securities AFS-nontaxable		4,812				4,828				5,127				(16	)		-0.3	%			(315	)		-6.1	%
Securities HTM-taxable (1)		1,479,283				1,268,952				410,851				210,331			16.6	%			1,068,432			n/m
Securities HTM-nontaxable		4,509				4,514				7,327				(5	)		-0.1	%			(2,818	)		-38.5	%
Total securities		3,675,725				3,850,969				3,668,807				(175,244	)		-4.6	%			6,918			0.2	%
Paycheck protection program loans (PPP)		—				3,235				29,009				(3,235	)		-100.0	%			(29,009	)		-100.0	%
Loans (includes loans held for sale)		12,530,449				12,006,661				10,550,712				523,788			4.4	%			1,979,737			18.8	%
Fed funds sold and reverse repurchases		2,379				6,566				56				(4,187	)		-63.8	%			2,323			n/m
Other earning assets		647,760				375,190				1,811,713				272,570			72.6	%			(1,163,953	)		-64.2	%
Total earning assets		16,856,313				16,242,621				16,060,297				613,692			3.8	%			796,016			5.0	%
Allowance for credit losses (ACL), loans held for investment (LHFI)		(119,978	)			(114,948	)			(99,390	)			(5,030	)		-4.4	%			(20,588	)		-20.7	%
Other assets		1,762,449				1,630,085				1,550,848				132,364			8.1	%			211,601			13.6	%
Total assets	$	18,498,784			$	17,757,758			$	17,511,755			$	741,026			4.2	%		$	987,029			5.6	%
Interest-bearing demand deposits	$	4,751,154			$	4,719,303			$	4,429,056			$	31,851			0.7	%		$	322,098			7.3	%
Savings deposits		4,193,764				4,379,673				4,791,104				(185,909	)		-4.2	%			(597,340	)		-12.5	%
Time deposits		1,907,449				1,152,905				1,193,435				754,544			65.4	%			714,014			59.8	%
Total interest-bearing deposits		10,852,367				10,251,881				10,413,595				600,486			5.9	%			438,772			4.2	%
Fed funds purchased and repurchases		436,535				549,406				212,006				(112,871	)		-20.5	%			224,529			n/m
Other borrowings		1,110,843				530,993				91,090				579,850			n/m				1,019,753			n/m
Subordinated notes		123,281				123,226				123,061				55			0.0	%			220			0.2	%
Junior subordinated debt securities		61,856				61,856				61,856				—			0.0	%			—			0.0	%
Total interest-bearing liabilities		12,584,882				11,517,362				10,901,608				1,067,520			9.3	%			1,683,274			15.4	%
Noninterest-bearing deposits		3,813,248				4,177,113				4,601,108				(363,865	)		-8.7	%			(787,860	)		-17.1	%
Other liabilities		576,826				569,992				295,287				6,834			1.2	%			281,539			95.3	%
Total liabilities		16,974,956				16,264,467				15,798,003				710,489			4.4	%			1,176,953			7.5	%
Shareholders' equity		1,523,828				1,493,291				1,713,752				30,537			2.0	%			(189,924	)		-11.1	%
Total liabilities and equity	$	18,498,784			$	17,757,758			$	17,511,755			$	741,026			4.2	%		$	987,029			5.6	%
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
													Linked Quarter							Year over Year
PERIOD END BALANCES	3/31/2023				12/31/2022				3/31/2022				$ Change				% Change			$ Change				% Change
Cash and due from banks	$	1,297,144			$	734,787			$	1,917,564			$	562,357			76.5	%		$	(620,420	)		-32.4	%
Fed funds sold and reverse repurchases		—				4,000				—				(4,000	)		-100.0	%			—			n/m
Securities available for sale (1)		1,984,162				2,024,082				3,018,246				(39,920	)		-2.0	%			(1,034,084	)		-34.3	%
Securities held to maturity (1)		1,474,338				1,494,514				607,598				(20,176	)		-1.4	%			866,740			n/m
PPP loans		—				—				18,579				—			n/m				(18,579	)		-100.0	%
Loans held for sale (LHFS)		175,926				135,226				222,538				40,700			30.1	%			(46,612	)		-20.9	%
Loans held for investment (LHFI)		12,497,195				12,204,039				10,397,129				293,156			2.4	%			2,100,066			20.2	%
ACL LHFI		(122,239	)			(120,214	)			(98,734	)			(2,025	)		-1.7	%			(23,505	)		-23.8	%
Net LHFI		12,374,956				12,083,825				10,298,395				291,131			2.4	%			2,076,561			20.2	%
Premises and equipment, net		223,975				212,365				207,301				11,610			5.5	%			16,674			8.0	%
Mortgage servicing rights		127,206				129,677				111,050				(2,471	)		-1.9	%			16,156			14.5	%
Goodwill		384,237				384,237				384,237				—			0.0	%			—			0.0	%
Identifiable intangible assets		3,352				3,640				4,591				(288	)		-7.9	%			(1,239	)		-27.0	%
Other real estate		1,684				1,986				3,187				(302	)		-15.2	%			(1,503	)		-47.2	%
Operating lease right-of-use assets		35,315				36,301				34,048				(986	)		-2.7	%			1,267			3.7	%
Other assets		794,883				770,838				614,217				24,045			3.1	%			180,666			29.4	%
Total assets	$	18,877,178			$	18,015,478			$	17,441,551			$	861,700			4.8	%		$	1,435,627			8.2	%
Deposits:
Noninterest-bearing	$	3,797,055			$	4,093,771			$	4,739,102			$	(296,716	)		-7.2	%		$	(942,047	)		-19.9	%
Interest-bearing		10,986,606				10,343,877				10,374,190				642,729			6.2	%			612,416			5.9	%
Total deposits		14,783,661				14,437,648				15,113,292				346,013			2.4	%			(329,631	)		-2.2	%
Fed funds purchased and repurchases		477,980				449,331				170,499				28,649			6.4	%			307,481			n/m
Other borrowings		1,485,181				1,050,938				84,644				434,243			41.3	%			1,400,537			n/m
Subordinated notes		123,317				123,262				123,097				55			0.0	%			220			0.2	%
Junior subordinated debt securities		61,856				61,856				61,856				—			0.0	%			—			0.0	%
ACL on off-balance sheet credit exposures		34,596				36,838				34,517				(2,242	)		-6.1	%			79			0.2	%
Operating lease liabilities		37,988				38,932				35,912				(944	)		-2.4	%			2,076			5.8	%
Other liabilities		310,500				324,405				186,352				(13,905	)		-4.3	%			124,148			66.6	%
Total liabilities		17,315,079				16,523,210				15,810,169				791,869			4.8	%			1,504,910			9.5	%
Common stock		12,720				12,705				12,806				15			0.1	%			(86	)		-0.7	%
Capital surplus		155,297				154,645				167,094				652			0.4	%			(11,797	)		-7.1	%
Retained earnings		1,636,463				1,600,321				1,600,138				36,142			2.3	%			36,325			2.3	%
Accumulated other comprehensive income (loss), net of tax		(242,381	)			(275,403	)			(148,656	)			33,022			12.0	%			(93,725	)		-63.0	%
Total shareholders' equity		1,562,099				1,492,268				1,631,382				69,831			4.7	%			(69,283	)		-4.2	%
Total liabilities and equity	$	18,877,178			$	18,015,478			$	17,441,551			$	861,700			4.8	%		$	1,435,627			8.2	%
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands except per share data)
(unaudited)
	Quarter Ended												Linked Quarter							Year over Year
INCOME STATEMENTS	3/31/2023				12/31/2022				3/31/2022				$ Change				% Change			$ Change				% Change
Interest and fees on LHFS & LHFI-FTE	$	178,967			$	159,566			$	93,252			$	19,401			12.2	%		$	85,715			91.9	%
Interest and fees on PPP loans		—				101				168				(101	)		-100.0	%			(168	)		-100.0	%
Interest on securities-taxable		16,761				16,577				12,357				184			1.1	%			4,404			35.6	%
Interest on securities-tax exempt-FTE		92				93				122				(1	)		-1.1	%			(30	)		-24.6	%
Interest on fed funds sold and reverse repurchases		30				71				—				(41	)		-57.7	%			30			n/m
Other interest income		6,527				3,556				817				2,971			83.5	%			5,710			n/m
Total interest income-FTE		202,377				179,964				106,716				22,413			12.5	%			95,661			89.6	%
Interest on deposits		40,898				18,438				2,760				22,460			n/m				38,138			n/m
Interest on fed funds purchased and repurchases		4,832				4,762				70				70			1.5	%			4,762			n/m
Other interest expense		15,575				6,730				1,539				8,845			n/m				14,036			n/m
Total interest expense		61,305				29,930				4,369				31,375			n/m				56,936			n/m
Net interest income-FTE		141,072				150,034				102,347				(8,962	)		-6.0	%			38,725			37.8	%
Provision for credit losses, LHFI		3,244				6,902				(860	)			(3,658	)		-53.0	%			4,104			n/m
Provision for credit losses, off-balance sheet credit exposures		(2,242	)			5,215				(1,106	)			(7,457	)		n/m				(1,136	)		n/m
Net interest income after provision-FTE		140,070				137,917				104,313				2,153			1.6	%			35,757			34.3	%
Service charges on deposit accounts		10,336				11,162				9,451				(826	)		-7.4	%			885			9.4	%
Bank card and other fees		7,803				8,191				8,442				(388	)		-4.7	%			(639	)		-7.6	%
Mortgage banking, net		7,639				3,408				9,873				4,231			n/m				(2,234	)		-22.6	%
Insurance commissions		14,305				12,019				14,089				2,286			19.0	%			216			1.5	%
Wealth management		8,780				8,079				9,054				701			8.7	%			(274	)		-3.0	%
Other, net		2,514				2,311				3,206				203			8.8	%			(692	)		-21.6	%
Total noninterest income		51,377				45,170				54,115				6,207			13.7	%			(2,738	)		-5.1	%
Salaries and employee benefits		74,056				73,469				69,585				587			0.8	%			4,471			6.4	%
Services and fees (2)		25,426				27,709				25,314				(2,283	)		-8.2	%			112			0.4	%
Net occupancy-premises		7,629				7,898				7,079				(269	)		-3.4	%			550			7.8	%
Equipment expense		6,405				6,268				6,061				137			2.2	%			344			5.7	%
Litigation settlement expense (1)		—				100,750				—				(100,750	)		-100.0	%			—			n/m
Other expense (2)		14,811				15,135				13,480				(324	)		-2.1	%			1,331			9.9	%
Total noninterest expense		128,327				231,229				121,519				(102,902	)		-44.5	%			6,808			5.6	%
Income (loss) before income taxes and tax eq adj		63,120				(48,142	)			36,909				111,262			n/m				26,211			71.0	%
Tax equivalent adjustment		3,477				3,451				3,003				26			0.8	%			474			15.8	%
Income (loss) before income taxes		59,643				(51,593	)			33,906				111,236			n/m				25,737			75.9	%
Income taxes		9,343				(17,530	)			4,695				26,873			n/m				4,648			99.0	%
Net income (loss)	$	50,300			$	(34,063	)		$	29,211			$	84,363			n/m			$	21,089			72.2	%
Per share data
Earnings (loss) per share - basic	$	0.82			$	(0.56	)		$	0.47			$	1.38			n/m			$	0.35			74.5	%
Earnings (loss) per share - diluted	$	0.82			$	(0.56	)		$	0.47			$	1.38			n/m			$	0.35			74.5	%
Dividends per share	$	0.23			$	0.23			$	0.23				—			0.0	%			—			0.0	%
Weighted average shares outstanding
Basic		61,011,059				60,969,400				61,514,395
Diluted		61,193,275				61,173,249				61,709,797
Period end shares outstanding		61,048,516				60,977,686				61,463,392
(1) See Note 1 - Litigation Settlement in the Notes to Consolidated Financials for additional information.
(2) During the first quarter of 2023, Trustmark reclassified its debit card transaction fees from other expense to services and fees. Prior periods have been reclassified accordingly.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
	Quarter Ended												Linked Quarter							Year over Year
NONPERFORMING ASSETS (1)	3/31/2023				12/31/2022				3/31/2022				$ Change				% Change			$ Change				% Change
Nonaccrual LHFI
Alabama	$	10,919			$	12,300			$	7,506			$	(1,381	)		-11.2	%		$	3,413			45.5	%
Florida		256				227				310				29			12.8	%			(54	)		-17.4	%
Mississippi (2)		32,560				24,683				21,318				7,877			31.9	%			11,242			52.7	%
Tennessee (3)		5,416				5,566				9,266				(150	)		-2.7	%			(3,850	)		-41.5	%
Texas		23,224				23,196				25,999				28			0.1	%			(2,775	)		-10.7	%
Total nonaccrual LHFI		72,375				65,972				64,399				6,403			9.7	%			7,976			12.4	%
Other real estate
Alabama		—				194				—				(194	)		-100.0	%			—			n/m
Mississippi (2)		1,495				1,769				3,187				(274	)		-15.5	%			(1,692	)		-53.1	%
Tennessee (3)		189				23				—				166			n/m				189			n/m
Total other real estate		1,684				1,986				3,187				(302	)		-15.2	%			(1,503	)		-47.2	%
Total nonperforming assets	$	74,059			$	67,958			$	67,586			$	6,101			9.0	%		$	6,473			9.6	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	2,255			$	3,929			$	1,503			$	(1,674	)		-42.6	%		$	752			50.0	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	41,468			$	49,320			$	62,078			$	(7,852	)		-15.9	%		$	(20,610	)		-33.2	%
	Quarter Ended												Linked Quarter							Year over Year
ACL LHFI (1)	3/31/2023				12/31/2022				3/31/2022				$ Change				% Change			$ Change				% Change
Beginning Balance	$	120,214			$	115,050			$	99,457			$	5,164			4.5	%		$	20,757			20.9	%
Provision for credit losses, LHFI		3,244				6,902				(860	)			(3,658	)		-53.0	%			4,104			n/m
Charge-offs		(2,996	)			(3,893	)			(2,242	)			897			23.0	%			(754	)		-33.6	%
Recoveries		1,777				2,155				2,379				(378	)		-17.5	%			(602	)		-25.3	%
Net (charge-offs) recoveries		(1,219	)			(1,738	)			137				519			29.9	%			(1,356	)		n/m
Ending Balance	$	122,239			$	120,214			$	98,734			$	2,025			1.7	%		$	23,505			23.8	%
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	(268	)		$	98			$	699			$	(366	)		n/m			$	(967	)		n/m
Florida		(36	)			(60	)			(26	)			24			40.0	%			(10	)		-38.5	%
Mississippi (2)		(775	)			(1,657	)			(88	)			882			53.2	%			(687	)		n/m
Tennessee (3)		(124	)			(195	)			(424	)			71			36.4	%			300			70.8	%
Texas		(16	)			76				(24	)			(92	)		n/m				8			33.3	%
Total net (charge-offs) recoveries	$	(1,219	)		$	(1,738	)		$	137			$	519			29.9	%		$	(1,356	)		n/m
(1) Excludes PPP loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
		Quarter Ended
AVERAGE BALANCES		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Securities AFS-taxable (1)		$	2,187,121			$	2,572,675			$	2,824,254			$	3,094,364			$	3,245,502
Securities AFS-nontaxable			4,812				4,828				4,928				5,110				5,127
Securities HTM-taxable (1)			1,479,283				1,268,952				1,140,685				811,599				410,851
Securities HTM-nontaxable			4,509				4,514				5,057				5,630				7,327
Total securities			3,675,725				3,850,969				3,974,924				3,916,703				3,668,807
PPP loans			—				3,235				9,821				17,746				29,009
Loans (includes loans held for sale)			12,530,449				12,006,661				11,459,551				10,910,178				10,550,712
Fed funds sold and reverse repurchases			2,379				6,566				226				110				56
Other earning assets			647,760				375,190				325,620				1,139,312				1,811,713
Total earning assets			16,856,313				16,242,621				15,770,142				15,984,049				16,060,297
ACL LHFI			(119,978	)			(114,948	)			(102,951	)			(99,106	)			(99,390	)
Other assets			1,762,449				1,630,085				1,576,653				1,513,127				1,550,848
Total assets		$	18,498,784			$	17,757,758			$	17,243,844			$	17,398,070			$	17,511,755
Interest-bearing demand deposits		$	4,751,154			$	4,719,303			$	4,613,733			$	4,578,235			$	4,429,056
Savings deposits			4,193,764				4,379,673				4,514,579				4,638,849				4,791,104
Time deposits			1,907,449				1,152,905				1,111,440				1,159,065				1,193,435
Total interest-bearing deposits			10,852,367				10,251,881				10,239,752				10,376,149				10,413,595
Fed funds purchased and repurchases			436,535				549,406				249,809				118,753				212,006
Other borrowings			1,110,843				530,993				88,697				80,283				91,090
Subordinated notes			123,281				123,226				123,171				123,116				123,061
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856
Total interest-bearing liabilities			12,584,882				11,517,362				10,763,285				10,760,157				10,901,608
Noninterest-bearing deposits			3,813,248				4,177,113				4,444,370				4,590,338				4,601,108
Other liabilities			576,826				569,992				429,720				439,266				295,287
Total liabilities			16,974,956				16,264,467				15,637,375				15,789,761				15,798,003
Shareholders' equity			1,523,828				1,493,291				1,606,469				1,608,309				1,713,752
Total liabilities and equity		$	18,498,784			$	17,757,758			$	17,243,844			$	17,398,070			$	17,511,755
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
PERIOD END BALANCES		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Cash and due from banks		$	1,297,144			$	734,787			$	479,637			$	742,461			$	1,917,564
Fed funds sold and reverse repurchases			—				4,000				10,098				—				—
Securities available for sale (1)			1,984,162				2,024,082				2,444,486				2,644,364				3,018,246
Securities held to maturity (1)			1,474,338				1,494,514				1,156,985				1,137,754				607,598
PPP loans			—				—				4,798				12,549				18,579
LHFS			175,926				135,226				165,213				190,186				222,538
LHFI			12,497,195				12,204,039				11,586,064				10,944,840				10,397,129
ACL LHFI			(122,239	)			(120,214	)			(115,050	)			(103,140	)			(98,734	)
Net LHFI			12,374,956				12,083,825				11,471,014				10,841,700				10,298,395
Premises and equipment, net			223,975				212,365				210,761				207,914				207,301
Mortgage servicing rights			127,206				129,677				132,615				121,014				111,050
Goodwill			384,237				384,237				384,237				384,237				384,237
Identifiable intangible assets			3,352				3,640				3,952				4,264				4,591
Other real estate			1,684				1,986				2,971				3,034				3,187
Operating lease right-of-use assets			35,315				36,301				37,282				34,684				34,048
Other assets			794,883				770,838				686,585				627,349				614,217
Total assets		$	18,877,178			$	18,015,478			$	17,190,634			$	16,951,510			$	17,441,551
Deposits:
Noninterest-bearing		$	3,797,055			$	4,093,771			$	4,358,805			$	4,509,472			$	4,739,102
Interest-bearing			10,986,606				10,343,877				10,066,375				10,260,696				10,374,190
Total deposits			14,783,661				14,437,648				14,425,180				14,770,168				15,113,292
Fed funds purchased and repurchases			477,980				449,331				544,068				70,157				170,499
Other borrowings			1,485,181				1,050,938				223,172				72,553				84,644
Subordinated notes			123,317				123,262				123,207				123,152				123,097
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856
ACL on off-balance sheet credit exposures			34,596				36,838				31,623				32,949				34,517
Operating lease liabilities			37,988				38,932				39,797				37,108				35,912
Other liabilities			310,500				324,405				232,786				196,871				186,352
Total liabilities			17,315,079				16,523,210				15,681,689				15,364,814				15,810,169
Common stock			12,720				12,705				12,700				12,752				12,806
Capital surplus			155,297				154,645				154,150				160,876				167,094
Retained earnings			1,636,463				1,600,321				1,648,507				1,620,210				1,600,138
Accumulated other comprehensive income (loss), net of tax			(242,381	)			(275,403	)			(306,412	)			(207,142	)			(148,656	)
Total shareholders' equity			1,562,099				1,492,268				1,508,945				1,586,696				1,631,382
Total liabilities and equity		$	18,877,178			$	18,015,478			$	17,190,634			$	16,951,510			$	17,441,551
(1) During the fourth quarter of 2022, Trustmark transferred $422.9 million of securities available for sale to securities held to maturity.
See Note 2 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands except per share data)
(unaudited)
		Quarter Ended
INCOME STATEMENTS		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Interest and fees on LHFS & LHFI-FTE		$	178,967			$	159,566			$	129,395			$	103,033			$	93,252
Interest and fees on PPP loans			—				101				186				184				168
Interest on securities-taxable			16,761				16,577				16,222				14,561				12,357
Interest on securities-tax exempt-FTE			92				93				100				107				122
Interest on fed funds sold and reverse repurchases			30				71				2				1				—
Other interest income			6,527				3,556				1,493				2,214				817
Total interest income-FTE			202,377				179,964				147,398				120,100				106,716
Interest on deposits			40,898				18,438				5,097				2,774				2,760
Interest on fed funds purchased and repurchases			4,832				4,762				1,225				70				70
Other interest expense			15,575				6,730				1,996				1,664				1,539
Total interest expense			61,305				29,930				8,318				4,508				4,369
Net interest income-FTE			141,072				150,034				139,080				115,592				102,347
Provision for credit losses, LHFI			3,244				6,902				12,919				2,716				(860	)
Provision for credit losses, off-balance sheet credit exposures			(2,242	)			5,215				(1,326	)			(1,568	)			(1,106	)
Net interest income after provision-FTE			140,070				137,917				127,487				114,444				104,313
Service charges on deposit accounts			10,336				11,162				11,318				10,226				9,451
Bank card and other fees			7,803				8,191				9,305				10,167				8,442
Mortgage banking, net			7,639				3,408				6,876				8,149				9,873
Insurance commissions			14,305				12,019				13,911				13,702				14,089
Wealth management			8,780				8,079				8,778				9,102				9,054
Other, net			2,514				2,311				2,418				1,907				3,206
Total noninterest income			51,377				45,170				52,606				53,253				54,115
Salaries and employee benefits			74,056				73,469				72,707				71,679				69,585
Services and fees (2)			25,426				27,709				26,787				25,659				25,314
Net occupancy-premises			7,629				7,898				7,395				6,892				7,079
Equipment expense			6,405				6,268				6,072				6,047				6,061
Litigation settlement expense (1)			—				100,750				—				—				—
Other expense (2)			14,811				15,135				13,737				13,490				13,480
Total noninterest expense			128,327				231,229				126,698				123,767				121,519
Income (loss) before income taxes and tax eq adj			63,120				(48,142	)			53,395				43,930				36,909
Tax equivalent adjustment			3,477				3,451				2,975				2,916				3,003
Income (loss) before income taxes			59,643				(51,593	)			50,420				41,014				33,906
Income taxes			9,343				(17,530	)			7,965				6,730				4,695
Net income (loss)		$	50,300			$	(34,063	)		$	42,455			$	34,284			$	29,211
Per share data
Earnings (loss) per share - basic		$	0.82			$	(0.56	)		$	0.69			$	0.56			$	0.47
Earnings (loss) per share - diluted		$	0.82			$	(0.56	)		$	0.69			$	0.56			$	0.47
Dividends per share		$	0.23			$	0.23			$	0.23			$	0.23			$	0.23
Weighted average shares outstanding
Basic			61,011,059				60,969,400				61,114,804				61,378,226				61,514,395
Diluted			61,193,275				61,173,249				61,318,715				61,546,285				61,709,797
Period end shares outstanding			61,048,516				60,977,686				60,953,864				61,201,123				61,463,392
(1) See Note 1 - Litigation Settlement in the Notes to Consolidated Financials for additional information.
(2) During the first quarter of 2023, Trustmark reclassified its debit card transaction fees from other expense to services and fees. Prior periods have been reclassified accordingly.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
		Quarter Ended
NONPERFORMING ASSETS (1)		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Nonaccrual LHFI
Alabama		$	10,919			$	12,300			$	12,710			$	2,698			$	7,506
Florida			256				227				227				233				310
Mississippi (2)			32,560				24,683				23,517				23,039				21,318
Tennessee (3)			5,416				5,566				5,120				9,500				9,266
Texas			23,224				23,196				26,353				26,582				25,999
Total nonaccrual LHFI			72,375				65,972				67,927				62,052				64,399
Other real estate
Alabama			—				194				217				84				—
Mississippi (2)			1,495				1,769				2,754				2,950				3,187
Tennessee (3)			189				23				—				—				—
Total other real estate			1,684				1,986				2,971				3,034				3,187
Total nonperforming assets		$	74,059			$	67,958			$	70,898			$	65,086			$	67,586
LOANS PAST DUE OVER 90 DAYS (1)
LHFI		$	2,255			$	3,929			$	1,842			$	1,347			$	1,503
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)		$	41,468			$	49,320			$	48,313			$	51,164			$	62,078
		Quarter Ended
ACL LHFI (1)		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Beginning Balance		$	120,214			$	115,050			$	103,140			$	98,734			$	99,457
Provision for credit losses, LHFI			3,244				6,902				12,919				2,716				(860	)
Charge-offs			(2,996	)			(3,893	)			(2,920	)			(2,277	)			(2,242	)
Recoveries			1,777				2,155				1,911				3,967				2,379
Net (charge-offs) recoveries			(1,219	)			(1,738	)			(1,009	)			1,690				137
Ending Balance		$	122,239			$	120,214			$	115,050			$	103,140			$	98,734
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama		$	(268	)		$	98			$	93			$	1,129			$	699
Florida			(36	)			(60	)			(23	)			761				(26	)
Mississippi (2)			(775	)			(1,657	)			(702	)			(266	)			(88	)
Tennessee (3)			(124	)			(195	)			(202	)			31				(424	)
Texas			(16	)			76				(175	)			35				(24	)
Total net (charge-offs) recoveries		$	(1,219	)		$	(1,738	)		$	(1,009	)		$	1,690			$	137
(1) Excludes PPP loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
March 31, 2023
($ in thousands)
(unaudited)
		Quarter Ended
FINANCIAL RATIOS AND OTHER DATA		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Return on average equity			13.39	%			-9.05	%			10.48	%			8.55	%			6.91	%
Return on average tangible equity			18.03	%			-12.14	%			13.90	%			11.36	%			9.05	%
Return on average assets			1.10	%			-0.76	%			0.98	%			0.79	%			0.68	%
Interest margin - Yield - FTE			4.87	%			4.40	%			3.71	%			3.01	%			2.69	%
Interest margin - Cost			1.47	%			0.73	%			0.21	%			0.11	%			0.11	%
Net interest margin - FTE			3.39	%			3.66	%			3.50	%			2.90	%			2.58	%
Efficiency ratio (1)			65.60	%			65.85	%			64.96	%			71.89	%			76.44	%
Full-time equivalent employees			2,758				2,738				2,717				2,727				2,725
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans			0.04	%			0.06	%			0.03	%			-0.06	%			-0.01	%
Provision for credit losses, LHFI / average loans			0.10	%			0.23	%			0.45	%			0.10	%			-0.03	%
Nonaccrual LHFI / (LHFI + LHFS)			0.57	%			0.53	%			0.58	%			0.56	%			0.61	%
Nonperforming assets / (LHFI + LHFS)			0.58	%			0.55	%			0.60	%			0.58	%			0.64	%
Nonperforming assets / (LHFI + LHFS + other real estate)			0.58	%			0.55	%			0.60	%			0.58	%			0.64	%
ACL LHFI / LHFI			0.98	%			0.99	%			0.99	%			0.94	%			0.95	%
ACL LHFI-commercial / commercial LHFI			0.80	%			0.85	%			0.93	%			0.88	%			0.95	%
ACL LHFI-consumer / consumer and home mortgage LHFI			1.54	%			1.41	%			1.20	%			1.14	%			0.96	%
ACL LHFI / nonaccrual LHFI			168.90	%			182.22	%			169.37	%			166.22	%			153.32	%
ACL LHFI / nonaccrual LHFI (excl individually analyzed loans)			320.80	%			399.19	%			466.03	%			475.27	%			484.01	%
CAPITAL RATIOS
Total equity / total assets			8.28	%			8.28	%			8.78	%			9.36	%			9.35	%
Tangible equity / tangible assets			6.35	%			6.27	%			6.67	%			7.23	%			7.29	%
Tangible equity / risk-weighted assets			7.94	%			7.61	%			8.15	%			9.16	%			9.79	%
Tier 1 leverage ratio			8.29	%			8.47	%			9.01	%			8.80	%			8.66	%
Common equity tier 1 capital ratio			9.76	%			9.74	%			10.63	%			11.01	%			11.23	%
Tier 1 risk-based capital ratio			10.17	%			10.15	%			11.06	%			11.47	%			11.70	%
Total risk-based capital ratio			11.95	%			11.91	%			12.85	%			13.26	%			13.53	%
STOCK PERFORMANCE
Market value-Close		$	24.70			$	34.91			$	30.63			$	29.19			$	30.39
Book value		$	25.59			$	24.47			$	24.76			$	25.93			$	26.54
Tangible book value		$	19.24			$	18.11			$	18.39			$	19.58			$	20.22
(1) See Note 7 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2) Excludes PPP loans.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

Note 1 - Litigation Settlement

As previously announced, on December 31, 2022, Trustmark National Bank (“Trustmark”) agreed to a settlement in principle (the “Settlement”) relating to litigation involving the Stanford Financial Group that includes a lawsuit initially filed in the District Court of Harris County, Texas on August 23, 2009 and also includes other subsequently-filed Stanford-related lawsuits. Trustmark Corporation, the parent company of Trustmark, has provided disclosure relating to these matters in its current report on Form 8-K filed on January 3, 2023, and in its periodic reports on Forms 10-K and 10-Q throughout the pendency of these actions.

The parties to the Settlement are, on the one hand, (i) Ralph S. Janvey, solely in his capacity as the court-appointed receiver (the “Receiver”) for the Stanford Receivership Estate; (ii) the Official Stanford Investors Committee; (iii) each of the plaintiffs in the Rotstain and Smith Actions (as defined below); and, on the other hand, (iv) Trustmark.

Under the terms of the Settlement, the parties agreed to settle and dismiss Rotstain, et al. v. Trustmark National Bank, et al., CA No. 4-22-CV-00800 (S.D. Tex.) (the “Rotstain Action”), Smith et al. v. Independent Bank, et al., CA No. 4-20-CV-00675 (S.D. Tex.) (the “Smith Action”), and all current or future claims arising from or related to Stanford. In addition, the Settlement provides that the parties will request dismissal of Jackson, et al., v. Cox, et al., CA No. 3:10-CV-0328 (N.D. Tex.) (the “Jackson Action” and, collectively with the Rotstain Action and the Smith Action, the “Actions”) pursuant to the terms of the bar orders described below. If the Settlement, including the bar orders described below, is approved by the Court and is not subject to further appeal, Trustmark will make a one-time cash payment of $100.0 million to the Receiver. Trustmark was relieved of pre-trial deadlines and the February 27, 2023 trial setting in the Rotstain Action pending final Court approval of a Settlement Agreement reflecting the terms of the Settlement and pending entry of the bar orders. The Smith and Jackson Actions are currently stayed.

The Settlement included the parties’ agreement to seek the Northern District of Texas District Court’s entry of bar orders prohibiting any continued or future claims against Trustmark and its related parties relating to Stanford, whether asserted to date or not. The bar orders therefore would prohibit all litigation relating to Stanford described in Trustmark Corporation’s SEC periodic reports, including the Actions and any pending matters, as well as any actions relating to Stanford that may be brought in the future. Final Court approval of these bar orders is a condition of the Settlement.

The Settlement was also subject to the execution and delivery of a definitive Settlement Agreement reflecting the terms of the Settlement, which was fully executed by the parties on January 13, 2023, and notice to Stanford’s investor claimants, which the Receiver has effectuated. The Settlement is also subject to final, non-appealable approval by the U.S. District Court for the Northern District of Texas. That Court has scheduled a hearing to approve the Settlement for May 3, 2023, but the timing of any final decision by the Court is subject to the discretion of the Court and any appeal. Robert Allen Stanford (founder of the Stanford Financial Group) is the only person or entity who filed an objection to the Settlement. The Court has previously overruled objections filed by Mr. Stanford in connection with prior Stanford-related settlements. While Trustmark believes that the Settlement is consistent with the terms of prior Stanford-related settlements that have been approved by the Court and were not successfully appealed, it is possible that the Court may decide not to approve the Settlement Agreement or that the Fifth Circuit Court of Appeals could decide to accept an appeal thereof.

The Settlement Agreement provides that Trustmark makes no admission of liability or wrongdoing in connection with any Stanford matter. As has been the case throughout the pendency of the Actions, Trustmark expressly denies any liability or wrongdoing with respect to any matter alleged in regard of the multi-billion-dollar Ponzi scheme operated by Stanford for almost 20 years. Trustmark’s relationship with Stanford consisted of ordinary banking services provided to business deposit customers.

Trustmark and Trustmark Corporation determined that it was in the best interest of Trustmark, Trustmark Corporation and the shareholders of Trustmark Corporation to enter into the Settlement and the Settlement Agreement to eliminate the risk, ongoing expense, uncertainty as to ultimate outcome, and imposition on management and the business of Trustmark of further litigation of the Actions and related Stanford claims.

As the time of the entry into the Settlement, Trustmark Corporation recognized $100.0 million of litigation settlement expense, as well as an additional $750 thousand in legal fees, which were included in noninterest expense related to the Stanford litigation during the fourth quarter of 2022. Trustmark Corporation expects that the Settlement will be tax deductible. Trustmark remains substantially above levels considered to be well-capitalized under all relevant standards.

The foregoing description of the Settlement Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Settlement Agreement, a copy of which was filed as an exhibit to Trustmark Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed on February 16, 2023.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

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:

		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities		$	386,903			$	391,513			$	416,278			$	419,696			$	361,822
U.S. Government agency obligations			7,254				7,766				9,116				11,947				12,623
Obligations of states and political subdivisions			4,907				4,862				4,763				5,179				5,359
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			26,851				27,097				28,164				32,240				35,117
Issued by FNMA and FHLMC			1,317,848				1,345,463				1,718,057				1,888,546				2,038,331
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			108,192				115,140				126,138				144,158				164,506
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			132,207				132,241				141,970				142,598				400,488
Total securities available for sale		$	1,984,162			$	2,024,082			$	2,444,486			$	2,644,364			$	3,018,246
SECURITIES HELD TO MATURITY
U.S. Treasury securities		$	28,486			$	28,295			$	—			$	—			$	—
Obligations of states and political subdivisions			4,507				4,510				4,512				5,320				7,324
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			4,336				4,442				4,527				4,624				4,831
Issued by FNMA and FHLMC			497,854				509,311				179,375				185,554				192,373
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			179,334				188,201				197,923				210,479				224,012
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			759,821				759,755				770,648				731,777				179,058
Total securities held to maturity		$	1,474,338			$	1,494,514			$	1,156,985			$	1,137,754			$	607,598

During the fourth quarter of 2022, Trustmark reclassified $422.9 million of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $57.1 million ($42.8 million, net of tax). The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.

During the second quarter of 2022, Trustmark reclassified $343.1 million of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $34.8 million ($26.1 million, net of tax). The net unrealized holding loss will be amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.

At March 31, 2023, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled approximately $88.5 million ($66.3 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.8% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Loans secured by real estate:
Construction, land development and other land loans		$	1,723,772			$	1,719,542			$	1,647,395			$	1,440,058			$	1,273,959
Secured by 1-4 family residential properties			2,822,048				2,775,847				2,597,112				2,424,962				2,106,998
Secured by nonfarm, nonresidential properties			3,375,579				3,278,830				3,206,946				3,178,079				2,975,039
Other real estate secured			847,527				742,538				593,119				555,311				715,939
Commercial and industrial loans			1,882,360				1,821,259				1,689,532				1,551,001				1,495,060
Consumer loans			162,911				166,425				163,412				160,716				154,215
State and other political subdivision loans			1,193,727				1,223,863				1,188,703				1,110,795				1,215,023
Other loans			489,271				475,735				499,845				523,918				460,896
LHFI			12,497,195				12,204,039				11,586,064				10,944,840				10,397,129
ACL LHFI			(122,239	)			(120,214	)			(115,050	)			(103,140	)			(98,734	)
Net LHFI		$	12,374,956			$	12,083,825			$	11,471,014			$	10,841,700			$	10,298,395

The following table presents the LHFI composition by region and reflects each region’s diversified mix of loans:

	March 31, 2023
LHFI - COMPOSITION BY REGION	Total				Alabama				Florida				Mississippi (Central and Southern Regions)				Tennessee (Memphis, TN and Northern MS Regions)				Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,723,772			$	909,783			$	74,625			$	333,986			$	25,741			$	379,637
Secured by 1-4 family residential properties		2,822,048				135,830				52,395				2,522,951				81,540				29,332
Secured by nonfarm, nonresidential properties		3,375,579				901,613				204,533				1,462,426				161,899				645,108
Other real estate secured		847,527				264,170				1,985				334,758				7,018				239,596
Commercial and industrial loans		1,882,360				557,088				28,068				768,940				272,153				256,111
Consumer loans		162,911				23,109				9,401				99,817				19,172				11,412
State and other political subdivision loans		1,193,727				74,925				62,353				845,902				27,380				183,167
Other loans		489,271				101,083				9,165				262,889				53,156				62,978
Loans	$	12,497,195			$	2,967,601			$	442,525			$	6,631,669			$	648,059			$	1,807,341
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	66,925			$	31,642			$	10,281			$	15,010			$	2,220			$	7,772
Development		142,477				74,820				1,379				30,507				6,773				28,998
Unimproved land		103,649				22,480				14,148				31,056				4,754				31,211
1-4 family construction		369,163				212,970				19,447				91,177				11,994				33,575
Other construction		1,041,558				567,871				29,370				166,236				—				278,081
Construction, land development and other land loans	$	1,723,772			$	909,783			$	74,625			$	333,986			$	25,741			$	379,637

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

Note 3 – Loan Composition (continued)

		March 31, 2023
		Total				Alabama				Florida				Mississippi (Central and Southern Regions)				Tennessee (Memphis, TN and Northern MS Regions)				Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail		$	347,775			$	124,551			$	26,625			$	113,299			$	21,143			$	62,157
Office			292,032				102,166				16,905				105,561				10,255				57,145
Hotel/motel			290,681				168,832				40,506				53,942				27,401				—
Mini-storage			154,053				28,261				2,058				104,063				481				19,190
Industrial			333,132				69,107				17,524				105,769				2,774				137,958
Health care			70,317				40,435				—				27,002				340				2,540
Convenience stores			33,226				7,318				592				14,709				582				10,025
Nursing homes/senior living			449,014				152,155				—				202,163				5,423				89,273
Other			125,798				40,814				9,840				53,248				8,696				13,200
Total non-owner occupied loans			2,096,028				733,639				114,050				779,756				77,095				391,488
Owner-occupied:
Office			167,317				43,797				36,759				49,046				10,104				27,611
Churches			68,028				15,531				4,592				38,625				6,697				2,583
Industrial warehouses			168,429				17,468				4,644				43,359				16,083				86,875
Health care			144,201				11,397				6,272				105,568				2,323				18,641
Convenience stores			133,875				12,194				21,451				63,187				235				36,808
Retail			94,435				11,194				9,588				44,745				18,987				9,921
Restaurants			55,190				4,247				4,105				31,642				11,931				3,265
Auto dealerships			47,930				6,470				222				23,688				17,550				—
Nursing homes/senior living			257,998				32,615				—				199,183				—				26,200
Other			142,148				13,061				2,850				83,627				894				41,716
Total owner-occupied loans			1,279,551				167,974				90,483				682,670				84,804				253,620
Loans secured by nonfarm, nonresidential properties		$	3,375,579			$	901,613			$	204,533			$	1,462,426			$	161,899			$	645,108

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
		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Securities – taxable			1.85	%			1.71	%			1.62	%			1.50	%			1.37	%
Securities – nontaxable			4.00	%			3.95	%			3.97	%			4.00	%			3.97	%
Securities – total			1.86	%			1.72	%			1.63	%			1.50	%			1.38	%
PPP loans			—				12.39	%			7.51	%			4.16	%			2.35	%
Loans - LHFI & LHFS			5.79	%			5.27	%			4.48	%			3.79	%			3.58	%
Loans - total			5.79	%			5.27	%			4.48	%			3.79	%			3.58	%
Fed funds sold & reverse repurchases			5.11	%			4.29	%			3.51	%			3.65	%			—
Other earning assets			4.09	%			3.76	%			1.82	%			0.78	%			0.18	%
Total earning assets			4.87	%			4.40	%			3.71	%			3.01	%			2.69	%
Interest-bearing deposits			1.53	%			0.71	%			0.20	%			0.11	%			0.11	%
Fed funds purchased & repurchases			4.49	%			3.44	%			1.95	%			0.24	%			0.13	%
Other borrowings			4.87	%			3.73	%			2.89	%			2.52	%			2.26	%
Total interest-bearing liabilities			1.98	%			1.03	%			0.31	%			0.17	%			0.16	%
Total Deposits			1.13	%			0.51	%			0.14	%			0.07	%			0.07	%
Net interest margin			3.39	%			3.66	%			3.50	%			2.90	%			2.58	%
Net interest margin excluding PPP loans and the FRB balance			3.36	%			3.66	%			3.53	%			3.06	%			2.88	%

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

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

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At March 31, 2023 and December 31, 2022, the average FRB balance totaled $555.5 million and $299.2 million, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance decreased 30 basis points when compared to the fourth quarter of 2022, totaling 3.36% for the first quarter of 2023. The decrease in the net interest margin excluding PPP loans and the FRB balance was due to increased costs of interest-bearing deposits, which was partially offset by increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio.

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 $1.8 million during the first quarter of 2023.

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

		Quarter Ended
		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Mortgage servicing income, net		$	6,785			$	6,636			$	6,669			$	6,557			$	6,429
Change in fair value-MSR from runoff			(1,145	)			(2,981	)			(3,462	)			(3,806	)			(3,785	)
Gain on sales of loans, net			3,797				3,328				4,597				6,030				6,223
Mortgage banking income before hedge ineffectiveness			9,437				6,983				7,804				8,781				8,867
Change in fair value-MSR from market changes			(3,972	)			(3,348	)			10,770				8,739				22,020
Change in fair value of derivatives			2,174				(227	)			(11,698	)			(9,371	)			(21,014	)
Net positive (negative) hedge ineffectiveness			(1,798	)			(3,575	)			(928	)			(632	)			1,006
Mortgage banking, net		$	7,639			$	3,408			$	6,876			$	8,149			$	9,873

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

Note 6 – Other Noninterest Income and Expense

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

		Quarter Ended
		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Partnership amortization for tax credit purposes		$	(1,961	)		$	(1,869	)		$	(1,531	)		$	(1,475	)		$	(1,336	)
Increase in life insurance cash surrender value			1,693				1,687				1,676				1,683				1,627
Other miscellaneous income			2,782				2,493				2,273				1,699				2,915
Total other, net		$	2,514			$	2,311			$	2,418			$	1,907			$	3,206

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

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

		Quarter Ended
		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Loan expense (1)		$	2,538			$	2,908			$	2,866			$	2,947			$	3,528
Amortization of intangibles			288				312				312				328				482
FDIC assessment expense			2,370				2,130				1,945				1,810				1,500
Other real estate expense, net			172				18				497				623				35
Other miscellaneous expense			9,443				9,767				8,117				7,782				7,935
Total other expense (1)		$	14,811			$	15,135			$	13,737			$	13,490			$	13,480
(1) During the first quarter of 2023, Trustmark reclassified its debit card transaction fees from other expense to services and fees. Prior periods have been reclassified accordingly.

Note 7 – Non-GAAP Financial Measures

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

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands except per share data) (unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

				Quarter Ended
				3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity				$	1,523,828			$	1,493,291			$	1,606,469			$	1,608,309			$	1,713,752
Less: Goodwill					(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)
Identifiable intangible assets					(3,523	)			(3,816	)			(4,131	)			(4,436	)			(4,879	)
Total average tangible equity				$	1,136,068			$	1,105,238			$	1,218,101			$	1,219,636			$	1,324,636
PERIOD END BALANCES
Total shareholders' equity				$	1,562,099			$	1,492,268			$	1,508,945			$	1,586,696			$	1,631,382
Less: Goodwill					(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)
Identifiable intangible assets					(3,352	)			(3,640	)			(3,952	)			(4,264	)			(4,591	)
Total tangible equity		(a)		$	1,174,510			$	1,104,391			$	1,120,756			$	1,198,195			$	1,242,554
TANGIBLE ASSETS
Total assets				$	18,877,178			$	18,015,478			$	17,190,634			$	16,951,510			$	17,441,551
Less: Goodwill					(384,237	)			(384,237	)			(384,237	)			(384,237	)			(384,237	)
Identifiable intangible assets					(3,352	)			(3,640	)			(3,952	)			(4,264	)			(4,591	)
Total tangible assets		(b)		$	18,489,589			$	17,627,601			$	16,802,445			$	16,563,009			$	17,052,723
Risk-weighted assets		(c)		$	14,793,893			$	14,521,078			$	13,748,819			$	13,076,981			$	12,691,545
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss)				$	50,300			$	(34,063	)		$	42,455			$	34,284			$	29,211
Plus: Intangible amortization net of tax					216				234				234				246				362
Net income (loss) adjusted for intangible amortization				$	50,516			$	(33,829	)		$	42,689			$	34,530			$	29,573
Period end common shares outstanding		(d)			61,048,516				60,977,686				60,953,864				61,201,123				61,463,392
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)					18.03	%			-12.14	%			13.90	%			11.36	%			9.05	%
Tangible equity/tangible assets		(a)/(b)			6.35	%			6.27	%			6.67	%			7.23	%			7.29	%
Tangible equity/risk-weighted assets		(a)/(c)			7.94	%			7.61	%			8.15	%			9.16	%			9.79	%
Tangible book value		(a)/(d)*1,000		$	19.24			$	18.11			$	18.39			$	19.58			$	20.22
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity				$	1,562,099			$	1,492,268			$	1,508,945			$	1,586,696			$	1,631,382
CECL transition adjustment					13,000				19,500				19,500				19,500				19,500
AOCI-related adjustments					242,381				275,403				306,412				207,142				148,656
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)					(370,234	)			(370,241	)			(370,217	)			(370,229	)			(370,240	)
Other adjustments and deductions for CET1 (2)					(3,275	)			(3,258	)			(3,506	)			(3,757	)			(4,015	)
CET1 capital		(e)			1,443,971				1,413,672				1,461,134				1,439,352				1,425,283
Additional tier 1 capital instruments plus related surplus					60,000				60,000				60,000				60,000				60,000
Tier 1 capital				$	1,503,971			$	1,473,672			$	1,521,134			$	1,499,352			$	1,485,283
Common equity tier 1 capital ratio		(e)/(c)			9.76	%			9.74	%			10.63	%			11.01	%			11.23	%

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

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS March 31, 2023 ($ in thousands) (unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

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

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

		Quarter Ended
		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Net interest income (GAAP)		$	137,595			$	146,583			$	136,105			$	112,676			$	99,344
Noninterest income (GAAP)			51,377				45,170				52,606				53,253				54,115
Pre-provision revenue	(a)	$	188,972			$	191,753			$	188,711			$	165,929			$	153,459
Noninterest expense (GAAP)		$	128,327			$	231,229			$	126,698			$	123,767			$	121,519
Less: Litigation settlement expense			—				(100,750	)			—				—				—
Adjusted noninterest expense - PPNR (Non-GAAP)	(b)	$	128,327			$	130,479			$	126,698			$	123,767			$	121,519
PPNR (Non-GAAP)	(a)-(b)	$	60,645			$	61,274			$	62,013			$	42,162			$	31,940

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

		Quarter Ended
		3/31/2023				12/31/2022				9/30/2022				6/30/2022				3/31/2022
Total noninterest expense (GAAP)		$	128,327			$	231,229			$	126,698			$	123,767			$	121,519
Less: Other real estate expense, net			(172	)			(18	)			(497	)			(623	)			(35	)
Amortization of intangibles			(288	)			(312	)			(312	)			(328	)			(482	)
Charitable contributions resulting in state tax credits			(325	)			(375	)			(375	)			(375	)			(375	)
Litigation settlement expense			—				(100,750	)			—				—				—
Adjusted noninterest expense (Non-GAAP)	(c)	$	127,542			$	129,774			$	125,514			$	122,441			$	120,627
Net interest income (GAAP)		$	137,595			$	146,583			$	136,105			$	112,676			$	99,344
Add: Tax equivalent adjustment			3,477				3,451				2,975				2,916				3,003
Net interest income-FTE (Non-GAAP)	(a)	$	141,072			$	150,034			$	139,080			$	115,592			$	102,347
Noninterest income (GAAP)		$	51,377			$	45,170			$	52,606			$	53,253			$	54,115
Add: Partnership amortization for tax credit purposes			1,961				1,869				1,531				1,475				1,336
Adjusted noninterest income (Non-GAAP)	(b)	$	53,338			$	47,039			$	54,137			$	54,728			$	55,451
Adjusted revenue (Non-GAAP)	(a)+(b)	$	194,410			$	197,073			$	193,217			$	170,320			$	157,798
Efficiency ratio (Non-GAAP)	(c)/((a)+(b))		65.60	%			65.85	%			64.96	%			71.89	%			76.44	%

 

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The Trustmark Stock at the time of publication of the news with a fall of -1,86 % to 21,10EUR on Lang & Schwarz stock exchange (25. April 2023, 22:33 Uhr).