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Section 1: 8-K (8-K)

trmk-8k_20200428.htm
false 0000036146 0000036146 2020-04-28 2020-04-28

 

 

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

 

April 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 April 28, 2020, Trustmark Corporation issued a press release announcing its financial results for the period ended March 31, 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 March 31, 2020

99.2

 

Investor slide presentation for the period ended March 31, 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:

 

April 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 First Quarter 2020 Financial Results

Position of strength and stability allows for proactive response

to COVID-19 pandemic

 

JACKSON, Miss. – April 28, 2020 – Trustmark Corporation (Nasdaq:TRMK) reported net income of $22.2 million in the first quarter of 2020, representing diluted earnings per share of $0.35.  During the first quarter, the provision and expense for credit losses totaled $27.4 million, primarily due to the impact of the COVID-19 pandemic on expected credit losses.  This increased provision and expense for credit losses reduced after-tax net income by approximately $0.32 per diluted share.  First quarter results also include a one-time, pre-tax charge of $4.4 million related to a voluntary early retirement program which reduced earnings by $0.05 per diluted share.  In addition, Trustmark reported positive net mortgage servicing hedge ineffectiveness of $9.9 million in the first quarter which increased earnings by $0.12 per diluted share.  

 

COVID-19 Response

Gerard R. Host, President and CEO, stated, “Trustmark has been proactive in responding to the COVID-19 pandemic, and we are taking comprehensive action to support customers, associates and the communities we serve.  We remain committed to serving customers as our branches continue to offer drive-thru service, our ATM and ITM network remains accessible and our robust digital and mobile banking options provide additional convenience for our customers.  Approximately 45% of Trustmark associates are working remotely, and essential employees in our offices are taking additional precautions to stay safe and healthy.  We are working with customers to provide flexibility in these uncertain circumstances, and we are serving our local economies by participating in the SBA’s Paycheck Protection Program.  SBA commitments were secured for approximately 6,000 requests totaling over $800 million with an average loan size of $137 thousand, and we continue to assist customers in completing applications for the Paycheck Protection Program.  We are committed to doing everything in our power to ensure the safety of our customers and associates and support our local economies through these challenging times.”

 

First Quarter Highlights

Maintained strong capital position with CET1 ratio of 11.35% and total risk-based capital ratio of 12.78%

Reported solid growth in fee businesses with linked quarter increases of 61.2% in mortgage banking revenue (before hedge ineffectiveness), 23.3% in insurance commissions and 10.0% in wealth management revenue

Pre-tax, pre-provision income totaled $56.6 million, a linked-quarter increase of 31.1% and year-over-year increase of 40.4%

 

Mr. Host stated, “For over 130 years, we have been committed to meeting the banking and financial needs of our customers and communities.  During the COVID-19 pandemic, we remain focused on providing support, advice and solutions to meet our customers’ unique needs.  Trustmark entered this crisis from a position of strength and stability with a solid capital base and ample liquidity.  During the first quarter, we experienced strong growth in our fee businesses and posted increases in both loan and deposit balances.  I would like to thank our dedicated associates for working diligently in these unprecedented circumstances to serve our customers.  Trustmark has weathered many storms over the years, and we remain well-positioned to continue serving customers and creating long-term value for shareholders.”

 

Balance Sheet Management

Loans held for investment (excluding loans reclassified from acquired loans) increased 1.7% linked-quarter and total deposits increased 2.9% from the prior quarter

Maintained strong capital position significantly above regulatory levels necessary to be considered “well-capitalized”

Suspended share repurchase program on March 9, 2020, to maintain flexibility through the COVID-19 pandemic

 

Loans held for investment totaled $9.6 billion at March 31, 2020, reflecting an increase of 2.5% linked-quarter and 6.4% year-over-year.  During the first quarter of 2020, Trustmark reclassified $72.6 million of acquired loans to loans held for investment with the adoption of FASB ASC Topic 326, “Financial Instruments – Credit Losses.”  Excluding this reclassification, loans held for investment increased $159.7 million, or 1.7%, from the prior quarter and $500.3 million, or 5.6%, from the comparable period one year earlier.  

 

The linked-quarter growth reflects increases in other real estate secured loans and loans secured by nonfarm, nonresidential properties, which were principally the result of the migration of construction loans as projects were completed.  Trustmark’s loan portfolio is diversified by loan type and geography.

 

Deposits totaled $11.6 billion at March 31, 2020, up $330.2 million, or 2.9%, from the prior quarter.  Trustmark maintains a strong liquidity position as loans held for investment represented 82.7% of total deposits at March 31, 2020.  Interest-bearing deposit costs totaled 0.71% for the first quarter, a decrease of 14 basis points linked-quarter.  Trustmark continues to maintain an attractive, low-cost deposit base with approximately 59% of deposit balances in checking accounts.  The total cost of interest-bearing liabilities was 0.75% for the first quarter of 2020, a decrease of 13 basis points from the prior quarter.  

 

During the first quarter, Trustmark repurchased $27.5 million, or approximately 887 thousand of its common shares in open market transactions.  On March 9, 2020, Trustmark suspended its share repurchase program 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 March 31, 2020, Trustmark’s tangible equity to tangible assets ratio was 9.27%, while the total risk-based capital ratio was 12.78%.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2020, to shareholders of record on June 1, 2020.  

 

Credit Quality

Adopted current expected credit loss (CECL) methodology for estimating credit losses effective January 1, 2020

Allowance for credit losses (ACL) represented 468.8% of nonperforming loans, excluding individually evaluated loans

Nonperforming assets declined 5.6% from the prior quarter and 12.1% year-over-year, reflecting decreases in both nonperforming loans and other real estate

 

Effective January 1, 2020, Trustmark adopted the CECL methodology for estimating credit losses, which resulted in a net $26.6 million increase for credit losses primarily due to the creation of reserves for unfunded commitments.  This one-time cumulative adjustment resulted in an after-tax decrease of $19.9 million in retained earnings.  Primarily due to economic uncertainties related to the COVID-19 pandemic, Trustmark increased its provision for credit losses by $20.6 million and its credit loss expense related to off-balance sheet credit exposures by $6.8 million, resulting in total credit loss expenses of $27.4 million in the quarter.

 

Allocation of Trustmark's $100.6 million allowance for credit losses on loans held for investment represented 0.97% of commercial loans and 1.35% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 1.05% at March 31, 2020, representing a level management considers commensurate with the present risk in the loan portfolio.  


 

Nonperforming loans totaled $53.0 million at March 31, 2020, down $234 thousand from the prior quarter and $3.4 million year-over-year.  Other real estate totaled $24.8 million, reflecting a $4.4 million decrease from the prior quarter and down $7.3 million from the prior year.  Collectively, nonperforming assets totaled $77.8 million, reflecting a linked-quarter decrease of $4.6 million and a year-over-year decrease of $10.7 million.

 

Revenue Generation

Revenue in the first quarter totaled $169.2 million, up 10.5% from the prior quarter

Mortgage banking revenue before hedge ineffectiveness was $17.6 million in the first quarter, a linked-quarter increase of 61.2%

Insurance commissions increased 23.3% from the prior quarter, and wealth management revenue rose 10.0% over the same period

 

Revenue in the first quarter totaled $169.2 million, up 10.5% from the prior quarter and up 15.7% from the same quarter in the prior year.  The linked-quarter and year-over-year increases primarily reflect higher mortgage banking revenue as well as higher insurance commissions and wealth management revenue.  Net interest income (FTE) in the first quarter totaled $107.1 million, resulting in a net interest margin of 3.52%, down 4 basis points from the prior quarter.  Relative to the prior quarter, net interest income (FTE) decreased $1.7 million as a $4.3 million reduction in interest income more than offset a $2.6 million reduction in interest expense.  

 

Noninterest income in the first quarter totaled $65.3 million, an increase of $17.7 million from the prior quarter and an increase of $23.8 million year-over-year.  The linked-quarter change primarily reflects a $19.6 million increase in mortgage banking revenue.  Mortgage banking revenue in the first quarter included $9.9 million in positive net hedge ineffectiveness.  Mortgage loan production in the first quarter totaled $457.2 million, down 8.3% linked-quarter and up 61.3% year-over-year.  Gain on sale of loans, net totaled $14.3 million in the first quarter, up $6.4 million from the prior quarter. Mortgage banking revenue totaled $27.5 million in the first quarter.

 

Insurance revenue totaled $11.6 million in the first quarter, up 23.3%, or $2.2 million, from the fourth quarter of 2019 and 6.2%, or $679 thousand, year-over-year.  The linked-quarter and year-over-year increases primarily reflect growth in property and casualty commissions.  Wealth management revenue in the first quarter totaled $8.5 million, an increase of $774 thousand, or 10.0%, from the prior quarter.  The growth reflects both higher trust management fees and brokerage and investment services revenue.  

 

Bank card and other fees decreased $2.8 million, or 34.6%, from the prior quarter and $1.8 million, or 25.5%, year-over-year, reflecting lower customer derivative revenue.  Service charges on deposit accounts experienced a seasonal decrease of $862 thousand, or 7.9%, from the prior quarter and $233 thousand, or 2.3%, year-over-year.  

 

Noninterest Expense

Core noninterest expense totaled $110.2 million in the first quarter of 2020, an increase of 2.5% from the prior quarter

Completed voluntary early retirement program

Continued to realign delivery channels to reflect changing customer preferences

 

During the first quarter, Trustmark completed a voluntary early retirement program.  Of those eligible for the program, 107 associates, or 3.8% of the workforce, retired by March 31, 2020.  A one-time, pre-tax charge of $4.4 million related to this program was incurred during the first quarter, reflecting $4.3 million in salaries and employee benefits and $102 thousand in other expense.  The result of this program is expected to produce pre-tax savings of approximately $2.9 million for the remainder of 2020 and $4.0 million for 2021.

 

Salaries and employee benefits – excluding $4.3 million of the voluntary early retirement charge – totaled $64.9 million, an increase of 4.1% from the prior quarter.  The increase primarily reflects higher insurance commissions and a seasonal increase in payroll taxes.  Services and fees rose $430 thousand linked-quarter, and other real estate expense, net decreased $197 thousand linked-quarter.  

 

Trustmark remains focused on optimizing its delivery channels and reallocating resources to reflect changing customer preferences.  In the first quarter of 2020, Trustmark closed five branches as customers continued to migrate to mobile and digital banking channels and embraced the convenience of remote options.  Trustmark remains committed to investments that promote profitable revenue growth, reengineering processes to enhance operational efficiency, realigning delivery channels to support changing customer preferences and managing the franchise for the long-term.

 

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 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, May 13, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10142197.

 

Trustmark is a financial services company providing banking and financial solutions through 188 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

 

Forward-Looking Statements

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

 

March 31, 2020

 

($ in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Quarter

 

 

Year over Year

 

QUARTERLY AVERAGE BALANCES

3/31/2020

 

 

12/31/2019

 

 

3/31/2019

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Securities AFS-taxable

$

1,620,422

 

 

$

1,551,358

 

 

$

1,753,268

 

 

$

69,064

 

 

 

4.5

%

 

$

(132,846

)

 

 

-7.6

%

Securities AFS-nontaxable

 

22,056

 

 

 

23,300

 

 

 

40,159

 

 

 

(1,244

)

 

 

-5.3

%

 

 

(18,103

)

 

 

-45.1

%

Securities HTM-taxable

 

694,740

 

 

 

734,474

 

 

 

866,665

 

 

 

(39,734

)

 

 

-5.4

%

 

 

(171,925

)

 

 

-19.8

%

Securities HTM-nontaxable

 

25,673

 

 

 

25,703

 

 

 

28,710

 

 

 

(30

)

 

 

-0.1

%

 

 

(3,037

)

 

 

-10.6

%

Total securities

 

2,362,891

 

 

 

2,334,835

 

 

 

2,688,802

 

 

 

28,056

 

 

 

1.2

%

 

 

(325,911

)

 

 

-12.1

%

Loans (including loans held for sale) (1)

 

9,678,174

 

 

 

9,467,437

 

 

 

9,038,204

 

 

 

210,737

 

 

 

2.2

%

 

 

639,970

 

 

 

7.1

%

Acquired loans (1)

 

 

 

 

77,797

 

 

 

104,316

 

 

 

(77,797

)

 

 

-100.0

%

 

 

(104,316

)

 

 

-100.0

%

Fed funds sold and rev repos

 

164

 

 

 

184

 

 

 

277

 

 

 

(20

)

 

 

-10.9

%

 

 

(113

)

 

 

-40.8

%

Other earning assets

 

187,327

 

 

 

227,116

 

 

 

243,493

 

 

 

(39,789

)

 

 

-17.5

%

 

 

(56,166

)

 

 

-23.1

%

Total earning assets

 

12,228,556

 

 

 

12,107,369

 

 

 

12,075,092

 

 

 

121,187

 

 

 

1.0

%

 

 

153,464

 

 

 

1.3

%

Allowance for credit losses (ACL), loans held

   for investment (LHFI) (1)

 

(85,015

)

 

 

(86,211

)

 

 

(82,227

)

 

 

1,196

 

 

 

1.4

%

 

 

(2,788

)

 

 

-3.4

%

Other assets

 

1,498,725

 

 

 

1,445,075

 

 

 

1,447,611

 

 

 

53,650

 

 

 

3.7

%

 

 

51,114

 

 

 

3.5

%

Total assets

$

13,642,266

 

 

$

13,466,233

 

 

$

13,440,476

 

 

$

176,033

 

 

 

1.3

%

 

$

201,790

 

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

3,184,134

 

 

$

3,167,256

 

 

$

2,899,467

 

 

$

16,878

 

 

 

0.5

%

 

$

284,667

 

 

 

9.8

%

Savings deposits

 

3,646,936

 

 

 

3,448,899

 

 

 

3,786,835

 

 

 

198,037

 

 

 

5.7

%

 

 

(139,899

)

 

 

-3.7

%

Time deposits

 

1,617,307

 

 

 

1,663,741

 

 

 

1,881,556

 

 

 

(46,434

)

 

 

-2.8

%

 

 

(264,249

)

 

 

-14.0

%

Total interest-bearing deposits

 

8,448,377

 

 

 

8,279,896

 

 

 

8,567,858

 

 

 

168,481

 

 

 

2.0

%

 

 

(119,481

)

 

 

-1.4

%

Fed funds purchased and repos

 

247,513

 

 

 

164,754

 

 

 

84,352

 

 

 

82,759

 

 

 

50.2

%

 

 

163,161

 

 

n/m

 

Other borrowings

 

85,279

 

 

 

79,512

 

 

 

90,804

 

 

 

5,767

 

 

 

7.3

%

 

 

(5,525

)

 

 

-6.1

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

Total interest-bearing liabilities

 

8,843,025

 

 

 

8,586,018

 

 

 

8,804,870

 

 

 

257,007

 

 

 

3.0

%

 

 

38,155

 

 

 

0.4

%

Noninterest-bearing deposits

 

2,910,951

 

 

 

3,017,824

 

 

 

2,824,220

 

 

 

(106,873

)

 

 

-3.5

%

 

 

86,731

 

 

 

3.1

%

Other liabilities

 

248,220

 

 

 

205,786

 

 

 

221,199

 

 

 

42,434

 

 

 

20.6

%

 

 

27,021

 

 

 

12.2

%

Total liabilities

 

12,002,196

 

 

 

11,809,628

 

 

 

11,850,289

 

 

 

192,568

 

 

 

1.6

%

 

 

151,907

 

 

 

1.3

%

Shareholders' equity

 

1,640,070

 

 

 

1,656,605

 

 

 

1,590,187

 

 

 

(16,535

)

 

 

-1.0

%

 

 

49,883

 

 

 

3.1

%

Total liabilities and equity

$

13,642,266

 

 

$

13,466,233

 

 

$

13,440,476

 

 

$

176,033

 

 

 

1.3

%

 

$

201,790

 

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

March 31, 2020

 

($ in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Quarter

 

 

Year over Year

 

PERIOD END BALANCES

3/31/2020

 

 

12/31/2019

 

 

3/31/2019

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Cash and due from banks

$

404,341

 

 

$

358,916

 

 

$

454,047

 

 

$

45,425

 

 

 

12.7

%

 

$

(49,706

)

 

 

-10.9

%

Fed funds sold and rev repos

 

2,000

 

 

 

 

 

 

 

 

 

2,000

 

 

n/m

 

 

 

2,000

 

 

n/m

 

Securities available for sale

 

1,833,779

 

 

 

1,602,404

 

 

 

1,723,445

 

 

 

231,375

 

 

 

14.4

%

 

 

110,334

 

 

 

6.4

%

Securities held to maturity

 

704,276

 

 

 

738,099

 

 

 

884,319

 

 

 

(33,823

)

 

 

-4.6

%

 

 

(180,043

)

 

 

-20.4

%

Loans held for sale (LHFS)

 

325,389

 

 

 

226,347

 

 

 

172,683

 

 

 

99,042

 

 

 

43.8

%

 

 

152,706

 

 

 

88.4

%

Loans held for investment (LHFI) (1)

 

9,567,920

 

 

 

9,335,628

 

 

 

8,995,014

 

 

 

232,292

 

 

 

2.5

%

 

 

572,906

 

 

 

6.4

%

ACL LHFI (1)

 

(100,564

)

 

 

(84,277

)

 

 

(79,005

)

 

 

(16,287

)

 

 

-19.3

%

 

 

(21,559

)

 

 

-27.3

%

Net LHFI

 

9,467,356

 

 

 

9,251,351

 

 

 

8,916,009

 

 

 

216,005

 

 

 

2.3

%

 

 

551,347

 

 

 

6.2

%

Acquired loans (1)

 

 

 

 

72,601

 

 

 

93,201

 

 

 

(72,601

)

 

 

-100.0

%

 

 

(93,201

)

 

 

-100.0

%

Allowance for loan losses, acquired loans (1)

 

 

 

 

(815

)

 

 

(1,297

)

 

 

815

 

 

 

100.0

%

 

 

1,297

 

 

 

100.0

%

Net acquired loans

 

 

 

 

71,786

 

 

 

91,904

 

 

 

(71,786

)

 

 

-100.0

%

 

 

(91,904

)

 

 

-100.0

%

Net LHFI and acquired loans

 

9,467,356

 

 

 

9,323,137

 

 

 

9,007,913

 

 

 

144,219

 

 

 

1.5

%

 

 

459,443

 

 

 

5.1

%

Premises and equipment, net

 

190,179

 

 

 

189,791

 

 

 

189,743

 

 

 

388

 

 

 

0.2

%

 

 

436

 

 

 

0.2

%

Mortgage servicing rights

 

56,437

 

 

 

79,394

 

 

 

86,842

 

 

 

(22,957

)

 

 

-28.9

%

 

 

(30,405

)

 

 

-35.0

%

Goodwill

 

381,717

 

 

 

379,627

 

 

 

379,627

 

 

 

2,090

 

 

 

0.6

%

 

 

2,090

 

 

 

0.6

%

Identifiable intangible assets

 

7,537

 

 

 

7,343

 

 

 

10,092

 

 

 

194

 

 

 

2.6

%

 

 

(2,555

)

 

 

-25.3

%

Other real estate

 

24,847

 

 

 

29,248

 

 

 

32,139

 

 

 

(4,401

)

 

 

-15.0

%

 

 

(7,292

)

 

 

-22.7

%

Operating lease right-of-use assets

 

30,839

 

 

 

31,182

 

 

 

33,861

 

 

 

(343

)

 

 

-1.1

%

 

 

(3,022

)

 

 

-8.9

%

Other assets

 

591,132

 

 

 

532,389

 

 

 

503,306

 

 

 

58,743

 

 

 

11.0

%

 

 

87,826

 

 

 

17.4

%

     Total assets

$

14,019,829

 

 

$

13,497,877

 

 

$

13,478,017

 

 

$

521,952

 

 

 

3.9

%

 

$

541,812

 

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

2,977,058

 

 

$

2,891,215

 

 

$

2,867,778

 

 

$

85,843

 

 

 

3.0

%

 

$

109,280

 

 

 

3.8

%

Interest-bearing

 

8,598,706

 

 

 

8,354,342

 

 

 

8,667,037

 

 

 

244,364

 

 

 

2.9

%

 

 

(68,331

)

 

 

-0.8

%

Total deposits

 

11,575,764

 

 

 

11,245,557

 

 

 

11,534,815

 

 

 

330,207

 

 

 

2.9

%

 

 

40,949

 

 

 

0.4

%

Fed funds purchased and repos

 

421,821

 

 

 

256,020

 

 

 

46,867

 

 

 

165,801

 

 

 

64.8

%

 

 

374,954

 

 

n/m

 

Other borrowings

 

84,230

 

 

 

85,396

 

 

 

83,265

 

 

 

(1,166

)

 

 

-1.4

%

 

 

965

 

 

 

1.2

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

ACL on off-balance sheet credit exposures (1)

 

36,421

 

 

 

 

 

 

 

 

 

36,421

 

 

n/m

 

 

 

36,421

 

 

n/m

 

Operating lease liabilities

 

32,055

 

 

 

32,354

 

 

 

34,921

 

 

 

(299

)

 

 

-0.9

%

 

 

(2,866

)

 

 

-8.2

%

Other liabilities

 

155,283

 

 

 

155,992

 

 

 

129,265

 

 

 

(709

)

 

 

-0.5

%

 

 

26,018

 

 

 

20.1

%

     Total liabilities

 

12,367,430

 

 

 

11,837,175

 

 

 

11,890,989

 

 

 

530,255

 

 

 

4.5

%

 

 

476,441

 

 

 

4.0

%

Common stock

 

13,209

 

 

 

13,376

 

 

 

13,499

 

 

 

(167

)

 

 

-1.2

%

 

 

(290

)

 

 

-2.1

%

Capital surplus

 

229,403

 

 

 

256,400

 

 

 

272,268

 

 

 

(26,997

)

 

 

-10.5

%

 

 

(42,865

)

 

 

-15.7

%

Retained earnings

 

1,402,089

 

 

 

1,414,526

 

 

 

1,342,176

 

 

 

(12,437

)

 

 

-0.9

%

 

 

59,913

 

 

 

4.5

%

Accum other comprehensive income (loss), net of

   tax

7,698

 

 

 

(23,600

)

 

 

(40,915

)

 

 

31,298

 

 

n/m

 

 

 

48,613

 

 

n/m

 

     Total shareholders' equity

 

1,652,399

 

 

 

1,660,702

 

 

 

1,587,028

 

 

 

(8,303

)

 

 

-0.5

%

 

 

65,371

 

 

 

4.1

%

     Total liabilities and equity

$

14,019,829

 

 

$

13,497,877

 

 

$

13,478,017

 

 

$

521,952

 

 

 

3.9

%

 

$

541,812

 

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

March 31, 2020

 

($ in thousands except per share data)

 

(unaudited)

 

 

Quarter Ended

 

 

Linked Quarter

 

 

Year over Year

 

INCOME STATEMENTS

3/31/2020

 

 

12/31/2019

 

 

3/31/2019

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Interest and fees on LHFS & LHFI-FTE

$

109,357

 

 

$

111,383

 

 

$

109,890

 

 

$

(2,026

)

 

 

-1.8

%

 

$

(533

)

 

 

-0.5

%

Interest and fees on acquired loans (1)

 

 

 

 

2,138

 

 

 

1,916

 

 

 

(2,138

)

 

 

-100.0

%

 

 

(1,916

)

 

 

-100.0

%

Interest on securities-taxable

 

12,948

 

 

 

12,884

 

 

 

14,665

 

 

 

64

 

 

 

0.5

%

 

 

(1,717

)

 

 

-11.7

%

Interest on securities-tax exempt-FTE

 

457

 

 

 

484

 

 

 

646

 

 

 

(27

)

 

 

-5.6

%

 

 

(189

)

 

 

-29.3

%

Interest on fed funds sold and rev repos

 

 

 

 

1

 

 

 

2

 

 

 

(1

)

 

 

-100.0

%

 

 

(2

)

 

 

-100.0

%

Other interest income

 

740

 

 

 

896

 

 

 

1,603

 

 

 

(156

)

 

 

-17.4

%

 

 

(863

)

 

 

-53.8

%

     Total interest income-FTE

 

123,502

 

 

 

127,786

 

 

 

128,722

 

 

 

(4,284

)

 

 

-3.4

%

 

 

(5,220

)

 

 

-4.1

%

Interest on deposits

 

14,957

 

 

 

17,716

 

 

 

19,570

 

 

 

(2,759

)

 

 

-15.6

%

 

 

(4,613

)

 

 

-23.6

%

Interest on fed funds pch and repos

 

625

 

 

 

504

 

 

 

288

 

 

 

121

 

 

 

24.0

%

 

 

337

 

 

n/m

 

Other interest expense

 

860

 

 

 

826

 

 

 

825

 

 

 

34

 

 

 

4.1

%

 

 

35

 

 

 

4.2

%

     Total interest expense

 

16,442

 

 

 

19,046

 

 

 

20,683

 

 

 

(2,604

)

 

 

-13.7

%

 

 

(4,241

)

 

 

-20.5

%

     Net interest income-FTE

 

107,060

 

 

 

108,740

 

 

 

108,039

 

 

 

(1,680

)

 

 

-1.5

%

 

 

(979

)

 

 

-0.9

%

Provision for credit losses, LHFI (1)

 

20,581

 

 

 

3,661

 

 

 

1,611

 

 

 

16,920