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Section 1: 8-K (8-K)

trmk-8k_20200728.htm
false 0000036146 0000036146 2020-07-28 2020-07-28

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

July 28, 2020

Date of Report (Date of earliest event reported)

TRUSTMARK CORPORATION

(Exact name of registrant as specified in its charter)

 

Mississippi

 

000-03683

 

64-0471500

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

248 East Capitol Street, Jackson, Mississippi

 

39201

(Address of principal executive offices)

 

(Zip Code)

 

 

 

Registrant’s telephone number, including area code:

 

(601) 208-5111

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered Pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, no par value

TRMK

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


 

Item 2.02.  Results of Operations and Financial Condition.

On July 28, 2020, Trustmark Corporation issued a press release announcing its financial results for the period ended June 30, 2020.  A copy of this press release and the accompanying financial statements and slide presentation are attached hereto as Exhibits 99.1 and 99.2 to this report and incorporated herein by reference.

 

 

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number

 

Description of Exhibits

99.1

 

Press release announcing financial results for the period ended June 30, 2020

99.2

 

Investor slide presentation for the period ended June 30, 2020

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

TRUSTMARK CORPORATION

 

BY:

 

/s/ Louis E. Greer 

 

 

Louis E. Greer

 

 

Treasurer and Principal Financial Officer

 

 

 

DATE:

 

July 28, 2020

 

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

trmk-ex991_7.htm

Exhibit 99.1

News Release

Trustmark Corporation Announces Second Quarter 2020 Financial Results

Performance reflects value of diversified financial services businesses

 

JACKSON, Miss. – July 28, 2020 – Trustmark Corporation (Nasdaq:TRMK) reported net income of $32.2 million in the second quarter of 2020, representing diluted earnings per share of $0.51.  This level of earnings resulted in a return on average tangible equity of 10.32% and a return on average assets of 0.83%.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2020, to shareholders of record on September 1, 2020.  

 

Gerard R. Host, Chairman and CEO, stated, “During the second quarter, we remained focused on ensuring the safety of our customers and associates and supporting our local economies.  We continued serving customers both remotely and through our branches, actively promoting digital touchpoints including our ATM and ITM network as well as digital and mobile banking applications.  Trustmark participated in the SBA’s Paycheck Protection Program, providing approximately 9,700 loans totaling $970 million to local businesses.  I am especially proud of our associates’ diligent efforts to assist in meeting the financial needs of our customers and work with local businesses to secure funding.  We continue to follow best practices for the health and safety of our customers and associates, and we remain committed to providing solutions to meet customers’ unique needs in this challenging environment.”

 

Second Quarter Highlights

Pre-tax, pre-provision income totaled $62.1 million, a linked-quarter increase of 9.8% and year-over-year increase of 21.1%

Noninterest income represented 39.8% of revenue in the second quarter and increased 6.5% from the prior quarter

Maintained strong capital position with CET1 ratio of 11.42% and total risk-based capital ratio of 13.00%

 

Mr. Host stated, “Our second quarter results reflect the value of Trustmark’s diverse franchise as strong performance in our fee income businesses more than offset interest rate headwinds.  Mortgage loan production increased over 85% linked-quarter and more than doubled year-over-year.  In addition, we continued to invest in our insurance business with the completion of the acquisition of another Mississippi-based agency in the second quarter.  We maintained disciplined expense management with minimal increases in core expenses despite increased costs related to COVID-19.  Trustmark’s solid capital base and liquidity position continue to be a strength and provide stability in the face of an uncertain economic outlook.  We remain well-positioned to continue serving customers and managing the franchise for the long-term.”

 

Balance Sheet Management

Provided loans under the Small Business Administration’s Paycheck Protection Program; gross PPP loans totaled $969.7 million at June 30, 2020 with an average loan size of $100 thousand

Loans held for investment increased $91.9 million from the prior quarter and $543.0 million year-over-year

Deposits increased $1.9 billion, or 16.7%, from the prior quarter driven primarily by additional customer liquidity associated with the PPP loans and government stimulus payments

 

During the second quarter of 2020, Trustmark participated in the Paycheck Protection Program (PPP) on behalf of its customers.  At June 30, 2020, Trustmark’s gross PPP loans totaled $969.7 million.  Net of deferred fees and costs of $29.9 million, PPP loans totaled $939.8 million.  Loans held for investment totaled $9.7 billion at June 30, 2020, reflecting an increase of 1.0% linked-quarter and 6.0% year-over-year.  The linked-quarter growth was driven primarily by construction and development loans and other real estate loans.  Collectively, loans held for investment and PPP loans totaled $10.6 billion at the end of the second quarter of 2020.  

 

Deposits totaled $13.5 billion at June 30, 2020, up $1.9 billion, or 16.7%, from the prior quarter.  Deposit growth primarily reflects increases in commercial and public funds as customers deposited proceeds from PPP loans and other government stimulus programs.  Interest-bearing deposit costs totaled 0.37% for the second quarter, a decrease of 34 basis points linked-quarter.  Trustmark continues to maintain an attractive, low-cost deposit base with approximately 63% of deposit balances in checking accounts.  The total cost of interest-bearing liabilities was 0.39% for the second quarter of 2020, a decrease of 36 basis points from the prior quarter.  

 

As previously announced, Trustmark suspended its share repurchase program on March 9, 2020, to ensure ample capital to support customers during the COVID-19 pandemic.  Trustmark’s capital position remained solid, reflecting the strength and diversity of its financial services businesses.  At June 30, 2020, Trustmark’s tangible equity to tangible assets ratio was 8.37%, while the total risk-based capital ratio was 13.00%.  

 

Credit Quality

Allowance for credit losses (ACL) represented 1.23% of loans held for investment and 561.04% of nonperforming loans, excluding individually evaluated loans

Other real estate declined 26.4% from the prior quarter and 41.5% year-over-year

Nonperforming loans decreased 5.7% and 5.5% from the prior quarter and year-over-year, respectively

 

Due to macroeconomic uncertainties related to the COVID-19 pandemic, Trustmark’s provision for credit losses was $18.2 million and its credit loss expense related to off-balance sheet credit exposures was $6.2 million, resulting in total credit loss expenses of $24.4 million in the second quarter.

 

Allocation of Trustmark's $119.2 million allowance for credit losses on loans held for investment represented 1.15% of commercial loans and 1.56% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 1.23% at June 30, 2020, representing a level management considers commensurate with the present risk in the loan portfolio.  

 

Nonperforming loans totaled $50.0 million at June 30, 2020, down $3.0 million from the prior quarter and $2.9 million year-over-year.  Other real estate totaled $18.3 million, reflecting a $6.6 million decrease from the prior quarter and down $13.0 million from the prior year.  Collectively, nonperforming assets totaled $68.3 million, reflecting a linked-quarter decrease of $9.6 million and a year-over-year decrease of $15.9 million.

 

Revenue Generation

Revenue in the second quarter, excluding interest and fees on PPP loans, totaled $169.5 million, in line with the prior quarter

Mortgage banking revenue before hedge ineffectiveness was $35.8 million in the second quarter, a linked-quarter increase of $18.2 million

Insurance commissions increased 2.8% from the prior quarter and 7.0% year-over-year

 



Revenue in the second quarter totaled $174.5 million, up 3.1% from the prior quarter and up 10.9% from the same quarter in the prior year.  Excluding $5.0 million of interest and fees on PPP loans, revenue totaled $169.5 million in second quarter, in line with the prior quarter and up 7.7% year-over-year.  The linked-quarter and year-over-year changes primarily reflect higher mortgage banking revenue partially offset by lower net interest income, excluding interest and fees on PPP loans.  Net interest income (FTE) in the second quarter totaled $108.0 million, resulting in a net interest margin of 3.12%.  Excluding PPP loans, the net interest margin totaled 3.14%, a linked-quarter decline of 38 basis points.  Approximately 20 basis points of the decline was attributable to the impact of lower interest rates, and 18 basis points was due to an increase in average other earning asset balances driven by an increase in public fund deposit balances which is anticipated to be transitory.  Relative to the prior quarter, net interest income (FTE) increased $947 thousand as a $5.8 million reduction in interest income was more than offset by a $6.8 million reduction in interest expense.  

 

Noninterest income in the second quarter totaled $69.5 million, an increase of $4.2 million from the prior quarter and an increase of $19.9 million year-over-year.  The linked-quarter change primarily reflects a $6.3 million increase in mortgage banking revenue.  Mortgage loan production in the second quarter totaled $853.3 million, up $396.1 million from the prior quarter and $439.3 million from the same period in the prior year.  Gain on sale of loans, net totaled $34.1 million in the second quarter, up $19.7 million from the prior quarter.  Mortgage banking revenue totaled $33.7 million in the second quarter.

 

Insurance revenue totaled $11.9 million in the second quarter, up 2.8% from the first quarter of 2020 and 7.0% year-over-year.  The linked-quarter increase primarily reflects growth in property and casualty commissions.  Trustmark completed the acquisition of Boyles Moak Insurance Services in the second quarter, expanding its relationships in the Mississippi market.  Wealth management revenue in the second quarter totaled $7.6 million, a decrease of $966 thousand, or 11.3%, from the prior quarter and $171 thousand, or 2.2%, year-over-year.  The decline reflects lower income from fee-based accounts due to market devaluation in the second quarter.  

 

Bank card and other fees increased $2.4 million, or 44.1%, from the prior quarter, reflecting higher customer derivative revenue.  Service charges on deposit accounts decreased $3.6 million, or 36.2%, from the prior quarter, primarily due to lower NSF/OD fees.  The decline reflects the impact of stimulus actions and the slowdown in economic activity related to COVID-19.  

 

Noninterest Expense

Core noninterest expense totaled $111.0 million in the second quarter of 2020, an increase of 0.8% from the prior quarter

Efficiency ratio declined to 62.13%

 

Trustmark maintained disciplined expense management in the second quarter as core expenses remained stable despite increased costs related to COVID-19 safety procedures and temporary compensation adjustments.  Salaries and employee benefits increased $1.2 million compared to the prior quarter, excluding charges related to the voluntary early retirement program completed in the first quarter.  The increase primarily reflects higher mortgage commissions as a result of increased production.  

 

Services and fees rose $637 thousand linked-quarter, primarily due to data processing costs and outside services and professional fees.  Other real estate expense, net decreased $1.0 million linked-quarter.  

 

Trustmark remains focused on optimizing its delivery channels and reallocating resources to reflect changing customer preferences.  During the first half of the year, Trustmark consolidated five offices across the franchise.  Trustmark continues to evaluate efficiency opportunities and remains committed to investments to promote profitable revenue growth.  

 

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 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, August 12, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10145738.

 

Trustmark is a financial services company providing banking and financial solutions through 187 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 (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

 

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, the effects of the COVID-19 pandemic on the domestic and global economy, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve Board (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of 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, particularly with respect to the COVID-19 pandemic, 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 Investor Contacts:

Trustmark Media Contact:

Louis E. Greer

Melanie A. Morgan

Treasurer and

Senior Vice President

Principal Financial Officer

601-208-2979

601-208-2310

 

 

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

 

 


 

TRUSTMARK CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED FINANCIAL INFORMATION

 

June 30, 2020

 

($ in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Quarter

 

 

Year over Year

 

QUARTERLY AVERAGE BALANCES

6/30/2020

 

 

3/31/2020

 

 

6/30/2019

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Securities AFS-taxable

$

1,724,320

 

 

$

1,620,422

 

 

$

1,661,464

 

 

$

103,898

 

 

 

6.4

%

 

$

62,856

 

 

 

3.8

%

Securities AFS-nontaxable

 

9,827

 

 

 

22,056

 

 

 

31,474

 

 

 

(12,229

)

 

 

-55.4

%

 

 

(21,647

)

 

 

-68.8

%

Securities HTM-taxable

 

655,085

 

 

 

694,740

 

 

 

821,357

 

 

 

(39,655

)

 

 

-5.7

%

 

 

(166,272

)

 

 

-20.2

%

Securities HTM-nontaxable

 

25,538

 

 

 

25,673

 

 

 

27,035

 

 

 

(135

)

 

 

-0.5

%

 

 

(1,497

)

 

 

-5.5

%

Total securities

 

2,414,770

 

 

 

2,362,891

 

 

 

2,541,330

 

 

 

51,879

 

 

 

2.2

%

 

 

(126,560

)

 

 

-5.0

%

Paycheck protection program loans (PPP)

 

764,416

 

 

 

 

 

 

 

 

 

764,416

 

 

n/m

 

 

 

764,416

 

 

n/m

 

Loans (includes loans held for sale) (1)

 

9,908,132

 

 

 

9,678,174

 

 

 

9,260,028

 

 

 

229,958

 

 

 

2.4

%

 

 

648,104

 

 

 

7.0

%

Acquired loans (1)

 

 

 

 

 

 

 

91,217

 

 

 

 

 

n/m

 

 

 

(91,217

)

 

 

-100.0

%

Fed funds sold and reverse repurchases

 

113

 

 

 

164

 

 

 

34,057

 

 

 

(51

)

 

 

-31.1

%

 

 

(33,944

)

 

 

-99.7

%

Other earning assets

 

854,642

 

 

 

187,327

 

 

 

316,604

 

 

 

667,315

 

 

n/m

 

 

 

538,038

 

 

n/m

 

Total earning assets

 

13,942,073

 

 

 

12,228,556

 

 

 

12,243,236

 

 

 

1,713,517

 

 

 

14.0

%

 

 

1,698,837

 

 

 

13.9

%

Allowance for credit losses (ACL), loans held

   for investment (LHFI) (1)

 

(103,006

)

 

 

(85,015

)

 

 

(81,996

)

 

 

(17,991

)

 

 

-21.2

%

 

 

(21,010

)

 

 

-25.6

%

Other assets

 

1,685,317

 

 

 

1,498,725

 

 

 

1,467,462

 

 

 

186,592

 

 

 

12.5

%

 

 

217,855

 

 

 

14.8

%

Total assets

$

15,524,384

 

 

$

13,642,266

 

 

$

13,628,702

 

 

$

1,882,118

 

 

 

13.8

%

 

$

1,895,682

 

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

3,832,372

 

 

$

3,184,134

 

 

$

3,048,876

 

 

$

648,238

 

 

 

20.4

%

 

$

783,496

 

 

 

25.7

%

Savings deposits

 

4,180,540

 

 

 

3,646,936

 

 

 

3,801,187

 

 

 

533,604

 

 

 

14.6

%

 

 

379,353

 

 

 

10.0

%

Time deposits

 

1,578,737

 

 

 

1,617,307

 

 

 

1,840,065

 

 

 

(38,570

)

 

 

-2.4

%

 

 

(261,328

)

 

 

-14.2

%

Total interest-bearing deposits

 

9,591,649

 

 

 

8,448,377

 

 

 

8,690,128

 

 

 

1,143,272

 

 

 

13.5

%

 

 

901,521

 

 

 

10.4

%

Fed funds purchased and repurchases

 

105,696

 

 

 

247,513

 

 

 

51,264

 

 

 

(141,817

)

 

 

-57.3

%

 

 

54,432

 

 

n/m

 

Other borrowings

 

107,533

 

 

 

85,279

 

 

 

81,352

 

 

 

22,254

 

 

 

26.1

%

 

 

26,181

 

 

 

32.2

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

Total interest-bearing liabilities

 

9,866,734

 

 

 

8,843,025

 

 

 

8,884,600

 

 

 

1,023,709

 

 

 

11.6

%

 

 

982,134

 

 

 

11.1

%

Noninterest-bearing deposits

 

3,645,761

 

 

 

2,910,951

 

 

 

2,898,266

 

 

 

734,810

 

 

 

25.2

%

 

 

747,495

 

 

 

25.8

%

Other liabilities

 

346,173

 

 

 

248,220

 

 

 

240,091

 

 

 

97,953

 

 

 

39.5

%

 

 

106,082

 

 

 

44.2

%

Total liabilities

 

13,858,668

 

 

 

12,002,196

 

 

 

12,022,957

 

 

 

1,856,472

 

 

 

15.5

%

 

 

1,835,711

 

 

 

15.3

%

Shareholders' equity

 

1,665,716

 

 

 

1,640,070

 

 

 

1,605,745

 

 

 

25,646

 

 

 

1.6

%

 

 

59,971

 

 

 

3.7

%

Total liabilities and equity

$

15,524,384

 

 

$

13,642,266

 

 

$

13,628,702

 

 

$

1,882,118

 

 

 

13.8

%

 

$

1,895,682

 

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financials

 


 

TRUSTMARK CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED FINANCIAL INFORMATION

 

June 30, 2020

 

($ in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Quarter

 

 

Year over Year

 

PERIOD END BALANCES

6/30/2020

 

 

3/31/2020

 

 

6/30/2019

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Cash and due from banks

$

1,026,640

 

 

$

404,341

 

 

$

404,413

 

 

$

622,299

 

 

n/m

 

 

$

622,227

 

 

n/m

 

Fed funds sold and reverse repurchases

 

 

 

 

2,000

 

 

 

75,499

 

 

 

(2,000

)

 

 

-100.0

%

 

 

(75,499

)

 

 

-100.0

%

Securities available for sale

 

1,884,153

 

 

 

1,833,779

 

 

 

1,643,725

 

 

 

50,374

 

 

 

2.7

%

 

 

240,428

 

 

 

14.6

%

Securities held to maturity

 

660,048

 

 

 

704,276

 

 

 

825,536

 

 

 

(44,228

)

 

 

-6.3

%

 

 

(165,488

)

 

 

-20.0

%

PPP loans

 

939,783

 

 

 

 

 

 

 

 

 

939,783

 

 

n/m

 

 

 

939,783

 

 

n/m

 

Loans held for sale (LHFS)

 

355,089

 

 

 

325,389

 

 

 

240,380

 

 

 

29,700

 

 

 

9.1

%

 

 

114,709

 

 

 

47.7

%

Loans held for investment (LHFI) (1)

 

9,659,806

 

 

 

9,567,920

 

 

 

9,116,759

 

 

 

91,886

 

 

 

1.0

%

 

 

543,047

 

 

 

6.0

%

ACL LHFI (1)

 

(119,188

)

 

 

(100,564

)

 

 

(80,399

)

 

 

(18,624

)

 

 

-18.5

%

 

 

(38,789

)

 

 

-48.2

%

Net LHFI

 

9,540,618

 

 

 

9,467,356

 

 

 

9,036,360

 

 

 

73,262

 

 

 

0.8

%

 

 

504,258

 

 

 

5.6

%

Acquired loans (1)

 

 

 

 

 

 

 

87,884

 

 

 

 

 

n/m

 

 

 

(87,884

)

 

 

-100.0

%

Allowance for loan losses, acquired loans (1)

 

 

 

 

 

 

 

(1,398

)

 

 

 

 

n/m

 

 

 

1,398

 

 

 

-100.0

%

Net acquired loans

 

 

 

 

 

 

 

86,486

 

 

 

 

 

n/m

 

 

 

(86,486

)

 

 

-100.0

%

Net LHFI and acquired loans

 

9,540,618

 

 

 

9,467,356

 

 

 

9,122,846

 

 

 

73,262

 

 

 

0.8

%

 

 

417,772

 

 

 

4.6

%

Premises and equipment, net

 

190,567

 

 

 

190,179

 

 

 

189,820

 

 

 

388

 

 

 

0.2

%

 

 

747

 

 

 

0.4

%

Mortgage servicing rights

 

57,811

 

 

 

56,437

 

 

 

79,283

 

 

 

1,374

 

 

 

2.4

%

 

 

(21,472

)

 

 

-27.1

%

Goodwill

 

385,270

 

 

 

381,717

 

 

 

379,627

 

 

 

3,553

 

 

 

0.9

%

 

 

5,643

 

 

 

1.5

%

Identifiable intangible assets

 

8,895

 

 

 

7,537

 

 

 

9,101

 

 

 

1,358

 

 

 

18.0

%

 

 

(206

)

 

 

-2.3

%

Other real estate

 

18,276

 

 

 

24,847

 

 

 

31,243

 

 

 

(6,571

)

 

 

-26.4

%

 

 

(12,967

)

 

 

-41.5

%

Operating lease right-of-use assets

 

29,819

 

 

 

30,839

 

 

 

32,762

 

 

 

(1,020

)

 

 

-3.3

%

 

 

(2,943

)

 

 

-9.0

%

Other assets

 

595,110

 

 

 

591,132

 

 

 

514,723

 

 

 

3,978

 

 

 

0.7

%

 

 

80,387

 

 

 

15.6

%

     Total assets

$

15,692,079

 

 

$

14,019,829

 

 

$

13,548,958

 

 

$

1,672,250

 

 

 

11.9

%

 

$

2,143,121

 

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

3,880,540

 

 

$

2,977,058

 

 

$

2,909,141

 

 

$

903,482

 

 

 

30.3

%

 

$

971,399

 

 

 

33.4

%

Interest-bearing

 

9,624,933

 

 

 

8,598,706

 

 

 

8,657,488

 

 

 

1,026,227

 

 

 

11.9

%

 

 

967,445

 

 

 

11.2

%

Total deposits

 

13,505,473

 

 

 

11,575,764

 

 

 

11,566,629

 

 

 

1,929,709

 

 

 

16.7

%

 

 

1,938,844

 

 

 

16.8

%

Fed funds purchased and repurchases

 

70,255

 

 

 

421,821

 

 

 

51,800

 

 

 

(351,566

)

 

 

-83.3

%

 

 

18,455

 

 

 

35.6

%

Other borrowings

 

152,860

 

 

 

84,230

 

 

 

79,012

 

 

 

68,630

 

 

 

81.5

%

 

 

73,848

 

 

 

93.5

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

ACL on off-balance sheet credit exposures (1)

 

42,663

 

 

 

36,421

 

 

 

 

 

 

6,242

 

 

 

17.1

%

 

 

42,663

 

 

n/m

 

Operating lease liabilities

 

31,076

 

 

 

32,055

 

 

 

33,878

 

 

 

(979

)

 

 

-3.1

%

 

 

(2,802

)

 

 

-8.3

%

Other liabilities

 

153,952

 

 

 

155,283

 

 

 

137,233

 

 

 

(1,331

)

 

 

-0.9

%

 

 

16,719

 

 

 

12.2

%

     Total liabilities

 

14,018,135

 

 

 

12,367,430

 

 

 

11,930,408

 

 

 

1,650,705

 

 

 

13.3

%

 

 

2,087,727

 

 

 

17.5

%

Common stock

 

13,214

 

 

 

13,209

 

 

 

13,418

 

 

 

5

 

 

 

0.0

%

 

 

(204

)

 

 

-1.5

%

Capital surplus

 

230,613

 

 

 

229,403

 

 

 

260,619

 

 

 

1,210

 

 

 

0.5

%

 

 

(30,006

)

 

 

-11.5

%

Retained earnings

 

1,419,552

 

 

 

1,402,089

 

 

 

1,369,329

 

 

 

17,463

 

 

 

1.2

%

 

 

50,223

 

 

 

3.7

%

Accumulated other comprehensive income (loss),

   net of tax

 

10,565

 

 

 

7,698

 

 

 

(24,816

)

 

 

2,867

 

 

 

37.2

%

 

 

35,381

 

 

n/m

 

     Total shareholders' equity

 

1,673,944

 

 

 

1,652,399

 

 

 

1,618,550

 

 

 

21,545

 

 

 

1.3

%

 

 

55,394

 

 

 

3.4

%

     Total liabilities and equity

$

15,692,079

 

 

$

14,019,829

 

 

$

13,548,958

 

 

$

1,672,250

 

 

 

11.9

%

 

$

2,143,121

 

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financials


 

TRUSTMARK CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED FINANCIAL INFORMATION

 

June 30, 2020

 

($ in thousands except per share data)

 

(unaudited)

 

 

Quarter Ended

 

 

Linked Quarter

 

 

Year over Year

 

INCOME STATEMENTS

6/30/2020

 

 

3/31/2020

 

 

6/30/2019

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Interest and fees on LHFS & LHFI-FTE

$

99,300

 

 

$

109,357

 

 

$

114,873

 

 

$

(10,057

)

 

 

-9.2

%

 

$

(15,573

)

 

 

-13.6

%

Interest and fees on PPP loans

 

5,044

 

 

 

 

 

 

 

 

 

5,044

 

 

n/m

 

 

 

5,044

 

 

n/m

 

Interest and fees on acquired loans (1)

 

 

 

 

 

 

 

2,010

 

 

 

 

 

n/m

 

 

 

(2,010

)

 

 

-100.0

%

Interest on securities-taxable

 

12,762

 

 

 

12,948

 

 

 

13,916

 

 

 

(186

)

 

 

-1.4

%

 

 

(1,154

)

 

 

-8.3

%

Interest on securities-tax exempt-FTE

 

315

 

 

 

457

 

 

 

551

 

 

 

(142

)

 

 

-31.1

%

 

 

(236

)

 

 

-42.8

%

Interest on fed funds sold and reverse repurchases

 

 

 

 

 

 

 

214

 

 

 

 

 

n/m

 

 

 

(214

)

 

 

-100.0

%

Other interest income

 

239

 

 

 

740

 

 

 

1,820

 

 

 

(501

)

 

 

-67.7

%

 

 

(1,581

)

 

 

-86.9

%

     Total interest income-FTE

 

117,660

 

 

 

123,502

 

 

 

133,384

 

 

 

(5,842

)

 

 

-4.7

%

 

 

(15,724

)

 

 

-11.8

%

Interest on deposits

 

8,730

 

 

 

14,957

 

 

 

21,500

 

 

 

(6,227

)

 

 

-41.6

%

 

 

(12,770

)

 

 

-59.4

%

Interest on fed funds purchased and repurchases

 

42

 

 

 

625

 

 

 

81

 

 

 

(583

)

 

 

-93.3

%

 

 

(39

)

 

 

-48.1

%

Other interest expense

 

881

 

 

 

860

 

 

 

831

 

 

 

21

 

 

 

2.4

%

 

 

50

 

 

 

6.0

%

     Total interest expense

 

9,653

 

 

 

16,442