Toggle SGML Header (+)


Section 1: 8-K (8-K)

trmk-8k_20200128.htm
false 0000036146 0000036146 2020-01-28 2020-01-28

 

 

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

 

January 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 January 28, 2020, Trustmark Corporation issued a press release announcing its financial results for the period ended December 31, 2019.  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 December 31, 2019

99.2

 

Investor slide presentation for the period ended December 31, 2019

104

 

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

 

 

 


 

EXHIBIT INDEX

 

Exhibit Number

 

Description of Exhibits

99.1

 

Press release announcing financial results for the period ended December 31, 2019

99.2

 

Investor slide presentation for the period ended December 31, 2019

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:

 

January 28, 2020

 

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

trmk-ex991_6.htm

Exhibit 99.1

News Release

 

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2019 Financial Results

Performance reflects improved earning asset mix,

continued loan growth and solid credit quality

 

JACKSON, Miss. – January 28, 2020 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $33.9 million in the fourth quarter of 2019, representing diluted earnings per share of $0.53.  Results in the fourth quarter reflect negative hedge ineffectiveness which reduced net income by $2.2 million, or $0.03 per share.  

 

For the full year, Trustmark’s net income totaled $150.5 million, representing diluted earnings per share of $2.32.  Diluted earnings per share in 2019 increased 5.0% when compared to the prior year.  Results for 2019 reflect negative hedge ineffectiveness which reduced net income by $8.6 million, or $0.13 per share.  Trustmark’s net income in 2019 produced a return on average tangible equity of 12.45% and a return on average assets of 1.11%.  

 

Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2020, to shareholders of record on March 1, 2020.  

 

2019 Highlights

Loans held for investment increased $499.8 million, or 5.7%, during the year

Nonperforming assets declined 14.4%, and net charge-offs represented 0.06% of average loans in 2019

Improved balance sheet positioning as securities and loans (excluding acquired loans) represented 20.5% and 76.7%, respectively, of average earning assets in 2019

Net interest income (FTE), excluding acquired loans, totaled $431.1 million, an increase of 3.9% from the prior year

Revenue, excluding acquired loans and negative hedge ineffectiveness, totaled $616.8 million, an increase of 5.5%

 

Gerard R. Host, President and CEO, stated, “We remained focused on our strategic initiatives this year, profitably increasing revenue across our financial services businesses, optimizing our balance sheet, deploying capital through share repurchases, and maintaining disciplined expense management.  Looking ahead to 2020, Trustmark will continue to provide the financial services and advice our customers have come to expect.  We remain committed to supporting investments to promote profitable revenue growth, reengineering processes to enhance operational efficiency, realigning delivery channels to support changing customer preferences and managing the franchise for the long-term.”  

 

Balance Sheet Management

Continued balance sheet and capital optimization through maturing investment securities run-off and share repurchases

Loans held for investment increased $112.0 million from the prior quarter

Cost of interest-bearing deposits declined 11 basis points during the quarter to 0.85%

 

Loans held for investment totaled $9.3 billion at December 31, 2019, reflecting an increase of 1.2% linked-quarter and 5.7% from the prior year.  The linked-quarter growth reflects increases in construction and land development, residential mortgage, nonfarm, nonresidential and other real estate secured loans.  Acquired loans totaled $72.6 million at December 31, 2019, down $8.4 million from the prior quarter and $34.3 million from the prior year.  Collectively, loans held for investment and acquired loans totaled $9.4 billion at the end of the fourth quarter of 2019, up $103.6 million, or 1.1%, from the prior quarter and $465.4 million, or 5.2%, year-over-year.  

 

Deposits totaled $11.2 billion at December 31, 2019, unchanged from the prior quarter and down $118.9 million, or 1.0%, year-over-year.  Excluding public fund balances, deposits at December 31, 2019, were unchanged from the prior quarter and up $303.6 million, or 3.3% year-over-year.  Interest-bearing deposit costs totaled 0.85% for the fourth quarter, a decrease of 11 basis points linked-quarter.  Trustmark continues to maintain an attractive, low-cost deposit base with approximately 58% of deposit balances in checking accounts.  The total cost of interest-bearing liabilities was 0.88% for the fourth quarter of 2019.

 

Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses.  At December 31, 2019, Trustmark’s tangible equity to tangible assets ratio was 9.72%, while the total risk-based capital ratio was 13.25%.  During the fourth quarter, Trustmark repurchased $2.2 million, or approximately 64 thousand of its common shares in open market transactions.  Trustmark repurchased $56.6 million, or approximately 1.8 million of its common shares in 2019.  At December 31, 2019, Trustmark had $80.3 million in remaining authority under its existing stock repurchase program, which expires March 31, 2020.  

 

Today, the Board of Directors authorized a new stock repurchase program, effective April 1, 2020, under which $100 million of Trustmark’s outstanding shares may be acquired through December 31, 2021.  The shares may be purchased from time to time at prevailing market prices, through open market or private transactions, depending on market conditions.  There is no guarantee as to the number of shares that may be repurchased by Trustmark, and Trustmark may discontinue purchases at any time at management’s discretion.

 

Credit Quality

Nonperforming loans decreased 9.8% and 13.6% from the prior quarter and year-over-year, respectively

Other real estate declined 8.5% from the prior quarter and 15.6% year-over-year

Allowance for loan losses represented 410.52% of nonperforming loans, excluding specifically reviewed impaired loans

 

Nonperforming loans totaled $53.2 million at December 31, 2019, down $5.8 million from the prior quarter and $8.4 million year-over-year.  Other real estate totaled $29.2 million, reflecting a $2.7 million decrease from the prior quarter and down $5.4 million from the prior year.  Collectively, nonperforming assets totaled $82.5 million, reflecting a linked-quarter decrease of 9.4% and a year-over-year decrease of 14.4%.

 

Allocation of Trustmark's $84.3 million allowance for loan losses represented 0.98% of commercial loans and 0.61% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 0.90% at December 31, 2019, representing a level management considers commensurate with the present risk in the loan portfolio.  

 

Unless otherwise noted, all of the above credit quality metrics exclude acquired loans.


Revenue Generation

Noninterest income before negative hedge ineffectiveness totaled $198.6 million in 2019, an increase of $16.1 million, or 8.8%, from the prior year

Net interest income (FTE), excluding acquired loans, totaled $431.1 million in 2019, an increase of 3.9% from the prior year

The net interest margin (FTE), excluding acquired loans, was 3.58% in 2019, compared to 3.46% in 2018

 

Revenue in the fourth quarter totaled $153.2 million, down 2.3% from the prior quarter and up 3.0% from the same quarter in the prior year.  The linked-quarter decline reflects lower interest income as well as a seasonal reduction in noninterest income.  Net interest income (FTE) in the fourth quarter totaled $108.7 million, resulting in a net interest margin of 3.56%.  Relative to the prior quarter, net interest income (FTE) decreased $3.0 million as a reduction in interest expense was more than offset by a decline in total interest income.  During the fourth quarter of 2019, the yield on acquired loans totaled 10.90% and included $661 thousand in recoveries from the settlement of debt, which represented approximately 3.37% of the annualized total acquired loan yield.  Excluding acquired loans, the net interest margin decreased to 3.52% in the fourth quarter of 2019, compared to 3.61% in the prior quarter.  The decrease was primarily due to a decline in the yield on the loans held for investment and held for sale portfolio which was partially offset by runoff of maturing investment securities and lower cost of interest-bearing deposits.  Net interest income (FTE) in 2019 totaled $439.5 million, resulting in a net interest margin (FTE) of 3.62%; excluding acquired loans, the net interest margin (FTE) was 3.58%.

 

Noninterest income in the fourth quarter totaled $47.6 million, a decrease of $759 thousand from the prior quarter and an increase of $4.0 million compared to the same quarter in the prior year.  The linked-quarter decrease primarily reflects a seasonal decline in insurance commissions.  In the fourth quarter, bank card and other fees decreased 1.9% from the prior quarter, and service charges on deposit accounts decreased 1.5%.  Other income, net totaled $3.5 million in the fourth quarter, up $1.5 million linked-quarter due to an increase in other miscellaneous income.

 

Insurance revenue in the fourth quarter totaled $9.4 million, down $1.7 million from the third quarter and $198 thousand from the same quarter in the prior year.  The linked-quarter decrease is due to a seasonal decline in commissions.  Insurance revenue in 2019 totaled $42.4 million, up 4.7%, or $1.9 million, from the prior year.  The solid performance in 2019 reflects improved sales management practices, producer development, and realization of operational efficiencies resulting from investments in technology and processes.

 

Wealth management revenue totaled $7.8 million in the fourth quarter, in line with the prior quarter and up 3.5% year-over-year.  The increase is primarily attributable to higher trust management fees.  For the year, wealth management revenue totaled $30.7 million, up 1.1% from the prior year.  Trustmark added capabilities and personnel in its Private Banking Group and completed internal reorganizations in 2019 to enhance the competitive positioning of the wealth management segment and streamline business functions.  

 

Mortgage loan production in the fourth quarter totaled $498.5 million, a seasonal decline of 11.9% from the prior quarter and a 64.2% increase year-over-year, partially due to higher refinancing activity and lower interest rates.  Mortgage banking income before negative hedge ineffectiveness totaled $10.9 million in the fourth quarter, a decline of $1.0 million from the prior quarter.  In 2019, mortgage loan production totaled $1.76 billion, up 25.8% from the prior year.  Mortgage banking income before negative hedge ineffectiveness totaled $41.3 million in 2019, an increase of $9.1 million, or 28.1%, from the prior year.  

 

Noninterest Expense

Core noninterest expense, which excludes other real estate expense, net and intangible amortization, totaled $107.5 million, up 2.1% from the prior quarter

Effective corporate tax rate in 2019 was 13.4%

Continued investments to enhance the customer experience and realign delivery channels to support changing customer preferences

 

Total noninterest expense for the fourth quarter was $110.0 million, up 3.0%, or $3.2 million, from the prior quarter.  The increase is primarily due to a $2.1 million increase in other expense.  Other expense in the third quarter included a $1.6 million recovery of litigation related expenses.  Excluding the impact of this item, other expense increased 4.4%, or $539 thousand, and total noninterest expense increased 1.5%, or $1.6 million, in the fourth quarter.  In 2019, noninterest expense totaled $429.0 million, up 3.3% from the prior year.

 

Core noninterest expense, which excludes other real estate expense, net ($1.5 million) and intangible amortization ($1.0 million), totaled $107.5 million in the fourth quarter, a 2.1% increase from the prior quarter.  In 2019, core noninterest expense totaled $421.0 million, an increase of 3.1% from the prior year.  

 

Salaries and employee benefits totaled $62.3 million in the fourth quarter, down $176 thousand from the prior quarter due to seasonally lower insurance commissions.  Services and fees rose $662 thousand linked-quarter reflecting continued software investments designed to improve efficiency and customer experience as well as increased advertising expense and increased spending on outside services and fees.  Other real estate expense, net increased $960 thousand linked-quarter.  

 

Trustmark has grown and sustained business by understanding and serving its customer base, and in 2019 Trustmark made significant investments to support changing customer preferences and enhance the customer experience.  During the year, Trustmark closed five branches and opened two branches featuring a new design that allows for integration of the myTeller® technology and offers more areas of engagement.  Trustmark remains committed to investments that promote profitable revenue growth as well as reengineering and efficiency opportunities that enhance long-term shareholder value.

 

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 29, 2020 at 8:30 a.m. Central Time to discuss the Corporation’s financial results.  Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com.  A replay of the conference call will also be available through Wednesday, February 12, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10137727.

 

Trustmark is a financial services company providing banking and financial solutions through 193 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

 

Forward-Looking Statements

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


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

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

 

 

Trustmark 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

 

December 31, 2019

 

($ in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Quarter

 

 

Year over Year

 

QUARTERLY AVERAGE BALANCES

12/31/2019

 

 

9/30/2019

 

 

12/31/2018

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Securities AFS-taxable

$

1,551,358

 

 

$

1,570,803

 

 

$

1,847,421

 

 

$

(19,445

)

 

 

-1.2

%

 

$

(296,063

)

 

 

-16.0

%

Securities AFS-nontaxable

 

23,300

 

 

 

25,096

 

 

 

38,821

 

 

 

(1,796

)

 

 

-7.2

%

 

 

(15,521

)

 

 

-40.0

%

Securities HTM-taxable

 

734,474

 

 

 

778,098

 

 

 

893,186

 

 

 

(43,624

)

 

 

-5.6

%

 

 

(158,712

)

 

 

-17.8

%

Securities HTM-nontaxable

 

25,703

 

 

 

26,088

 

 

 

29,143

 

 

 

(385

)

 

 

-1.5

%

 

 

(3,440

)

 

 

-11.8

%

Total securities

 

2,334,835

 

 

 

2,400,085

 

 

 

2,808,571

 

 

 

(65,250

)

 

 

-2.7

%

 

 

(473,736

)

 

 

-16.9

%

Loans (including loans held for sale)

 

9,467,437

 

 

 

9,436,287

 

 

 

8,933,501

 

 

 

31,150

 

 

 

0.3

%

 

 

533,936

 

 

 

6.0

%

Acquired loans

 

77,797

 

 

 

82,641

 

 

 

127,747

 

 

 

(4,844

)

 

 

-5.9

%

 

 

(49,950

)

 

 

-39.1

%

Fed funds sold and rev repos

 

184

 

 

 

3,662

 

 

 

843

 

 

 

(3,478

)

 

 

-95.0

%

 

 

(659

)

 

 

-78.2

%

Other earning assets

 

227,116

 

 

 

176,163

 

 

 

200,282

 

 

 

50,953

 

 

 

28.9

%

 

 

26,834

 

 

 

13.4

%

Total earning assets

 

12,107,369

 

 

 

12,098,838

 

 

 

12,070,944

 

 

 

8,531

 

 

 

0.1

%

 

 

36,425

 

 

 

0.3

%

Allowance for loan losses

 

(86,211

)

 

 

(83,756

)

 

 

(85,842

)

 

 

(2,455

)

 

 

-2.9

%

 

 

(369

)

 

 

-0.4

%

Other assets

 

1,445,075

 

 

 

1,447,977

 

 

 

1,362,831

 

 

 

(2,902

)

 

 

-0.2

%

 

 

82,244

 

 

 

6.0

%

Total assets

$

13,466,233

 

 

$

13,463,059

 

 

$

13,347,933

 

 

$

3,174

 

 

 

0.0

%

 

$

118,300

 

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

3,167,256

 

 

$

3,085,758

 

 

$

2,722,841

 

 

$

81,498

 

 

 

2.6

%

 

$

444,415

 

 

 

16.3

%

Savings deposits

 

3,448,899

 

 

 

3,568,403

 

 

 

3,565,682

 

 

 

(119,504

)

 

 

-3.3

%

 

 

(116,783

)

 

 

-3.3

%

Time deposits

 

1,663,741

 

 

 

1,753,083

 

 

 

1,892,983

 

 

 

(89,342

)

 

 

-5.1

%

 

 

(229,242

)

 

 

-12.1

%

Total interest-bearing deposits

 

8,279,896

 

 

 

8,407,244

 

 

 

8,181,506

 

 

 

(127,348

)

 

 

-1.5

%

 

 

98,390

 

 

 

1.2

%

Fed funds purchased and repos

 

164,754

 

 

 

142,064

 

 

 

340,094

 

 

 

22,690

 

 

 

16.0

%

 

 

(175,340

)

 

 

-51.6

%

Other borrowings

 

79,512

 

 

 

78,404

 

 

 

90,252

 

 

 

1,108

 

 

 

1.4

%

 

 

(10,740

)

 

 

-11.9

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

Total interest-bearing liabilities

 

8,586,018

 

 

 

8,689,568

 

 

 

8,673,708

 

 

 

(103,550

)

 

 

-1.2

%

 

 

(87,690

)

 

 

-1.0

%

Noninterest-bearing deposits

 

3,017,824

 

 

 

2,932,754

 

 

 

2,862,161

 

 

 

85,070

 

 

 

2.9

%

 

 

155,663

 

 

 

5.4

%

Other liabilities

 

205,786

 

 

 

206,091

 

 

 

216,932

 

 

 

(305

)

 

 

-0.1

%

 

 

(11,146

)

 

 

-5.1

%

Total liabilities

 

11,809,628

 

 

 

11,828,413

 

 

 

11,752,801

 

 

 

(18,785

)

 

 

-0.2

%

 

 

56,827

 

 

 

0.5

%

Shareholders' equity

 

1,656,605

 

 

 

1,634,646

 

 

 

1,595,132

 

 

 

21,959

 

 

 

1.3

%

 

 

61,473

 

 

 

3.9

%

Total liabilities and equity

$

13,466,233

 

 

$

13,463,059

 

 

$

13,347,933

 

 

$

3,174

 

 

 

0.0

%

 

$

118,300

 

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financials

 


 

TRUSTMARK CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED FINANCIAL INFORMATION

 

December 31, 2019

 

($ in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Quarter

 

 

Year over Year

 

PERIOD END BALANCES

12/31/2019

 

 

9/30/2019

 

 

12/31/2018

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Cash and due from banks

$

358,916

 

 

$

486,263

 

 

$

349,561

 

 

$

(127,347

)

 

 

-26.2

%

 

$

9,355

 

 

 

2.7

%

Fed funds sold and rev repos

 

 

 

 

 

 

 

830

 

 

 

 

 

n/m

 

 

 

(830

)

 

 

-100.0

%

Securities available for sale

 

1,602,404

 

 

 

1,553,705

 

 

 

1,811,813

 

 

 

48,699

 

 

 

3.1

%

 

 

(209,409

)

 

 

-11.6

%

Securities held to maturity

 

738,099

 

 

 

785,422

 

 

 

909,643

 

 

 

(47,323

)

 

 

-6.0

%

 

 

(171,544

)

 

 

-18.9

%

Loans held for sale (LHFS)

 

226,347

 

 

 

292,800

 

 

 

153,799

 

 

 

(66,453

)

 

 

-22.7

%

 

 

72,548

 

 

 

47.2

%

Loans held for investment (LHFI)

 

9,335,628

 

 

 

9,223,668

 

 

 

8,835,868

 

 

 

111,960

 

 

 

1.2

%

 

 

499,760

 

 

 

5.7

%

Allowance for loan losses, LHFI

 

(84,277

)

 

 

(83,226

)

 

 

(79,290

)

 

 

(1,051

)

 

 

-1.3

%

 

 

(4,987

)

 

 

-6.3

%

Net LHFI

 

9,251,351

 

 

 

9,140,442

 

 

 

8,756,578

 

 

 

110,909

 

 

 

1.2

%

 

 

494,773

 

 

 

5.7

%

Acquired loans

 

72,601

 

 

 

81,004

 

 

 

106,932

 

 

 

(8,403

)

 

 

-10.4

%

 

 

(34,331

)

 

 

-32.1

%

Allowance for loan losses, acquired loans

 

(815

)

 

 

(1,249

)

 

 

(1,231

)

 

 

434

 

 

 

34.7

%

 

 

416

 

 

 

33.8

%

Net acquired loans

 

71,786

 

 

 

79,755

 

 

 

105,701

 

 

 

(7,969

)

 

 

-10.0

%

 

 

(33,915

)

 

 

-32.1

%

Net LHFI and acquired loans

 

9,323,137

 

 

 

9,220,197

 

 

 

8,862,279

 

 

 

102,940

 

 

 

1.1

%

 

 

460,858

 

 

 

5.2

%

Premises and equipment, net

 

189,791

 

 

 

188,423

 

 

 

178,668

 

 

 

1,368

 

 

 

0.7

%

 

 

11,123

 

 

 

6.2

%

Mortgage servicing rights

 

79,394

 

 

 

73,016

 

 

 

95,596

 

 

 

6,378

 

 

 

8.7

%

 

 

(16,202

)

 

 

-16.9

%

Goodwill

 

379,627

 

 

 

379,627

 

 

 

379,627

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

Identifiable intangible assets

 

7,343

 

 

 

8,345

 

 

 

11,112

 

 

 

(1,002

)

 

 

-12.0

%

 

 

(3,769

)

 

 

-33.9

%

Other real estate

 

29,248

 

 

 

31,974

 

 

 

34,668

 

 

 

(2,726

)

 

 

-8.5

%

 

 

(5,420

)

 

 

-15.6

%

Operating lease right-of-use assets

 

31,182

 

 

 

33,180

 

 

 

 

 

 

(1,998

)

 

 

-6.0

%

 

 

31,182

 

 

n/m

 

Other assets

 

532,389

 

 

 

531,834

 

 

 

498,864

 

 

 

555

 

 

 

0.1

%

 

 

33,525

 

 

 

6.7

%

     Total assets

$

13,497,877

 

 

$

13,584,786

 

 

$

13,286,460

 

 

$

(86,909

)

 

 

-0.6

%

 

$

211,417

 

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

2,891,215

 

 

$

3,064,127

 

 

$

2,937,594

 

 

$

(172,912

)

 

 

-5.6

%

 

$

(46,379

)

 

 

-1.6

%

Interest-bearing

 

8,354,342

 

 

 

8,190,056

 

 

 

8,426,817

 

 

 

164,286

 

 

 

2.0

%

 

 

(72,475

)

 

 

-0.9

%

Total deposits

 

11,245,557

 

 

 

11,254,183

 

 

 

11,364,411

 

 

 

(8,626

)

 

 

-0.1

%

 

 

(118,854

)

 

 

-1.0

%

Fed funds purchased and repos

 

256,020

 

 

 

376,712

 

 

 

50,471

 

 

 

(120,692

)

 

 

-32.0

%

 

 

205,549

 

 

n/m

 

Other borrowings

 

85,396

 

 

 

76,685

 

 

 

79,885

 

 

 

8,711

 

 

 

11.4

%

 

 

5,511

 

 

 

6.9

%

Junior subordinated debt securities

 

61,856

 

 

 

61,856

 

 

 

61,856

 

 

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

Operating lease liabilities

 

32,354

 

 

 

34,319

 

 

 

 

 

 

(1,965

)

 

 

-5.7

%

 

 

32,354

 

 

n/m

 

Other liabilities

 

155,992

 

 

 

135,669

 

 

 

138,384

 

 

 

20,323

 

 

 

15.0

%

 

 

17,608

 

 

 

12.7

%

     Total liabilities

 

11,837,175

 

 

 

11,939,424

 

 

 

11,695,007

 

 

 

(102,249

)

 

 

-0.9

%

 

 

142,168

 

 

 

1.2

%

Common stock

 

13,376

 

 

 

13,390

 

 

 

13,717

 

 

 

(14

)

 

 

-0.1

%

 

 

(341

)

 

 

-2.5

%

Capital surplus

 

256,400

 

 

 

257,370

 

 

 

309,545

 

 

 

(970

)

 

 

-0.4

%

 

 

(53,145

)

 

 

-17.2

%

Retained earnings

 

1,414,526

 

 

 

1,395,460

 

 

 

1,323,870

 

 

 

19,066

 

 

 

1.4

%

 

 

90,656

 

 

 

6.8

%

Accum other comprehensive loss, net of tax

 

(23,600

)

 

 

(20,858

)

 

 

(55,679

)

 

 

(2,742

)

 

 

-13.1

%

 

 

32,079

 

 

 

57.6

%

     Total shareholders' equity

 

1,660,702

 

 

 

1,645,362

 

 

 

1,591,453

 

 

 

15,340

 

 

 

0.9

%

 

 

69,249

 

 

 

4.4

%

     Total liabilities and equity

$

13,497,877

 

 

$

13,584,786

 

 

$

13,286,460

 

 

$

(86,909

)

 

 

-0.6

%

 

$

211,417

 

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financials


 

TRUSTMARK CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED FINANCIAL INFORMATION

 

December 31, 2019

 

($ in thousands except per share data)

 

(unaudited)

 

Quarter Ended

 

 

Linked Quarter

 

 

Year over Year

 

INCOME STATEMENTS

12/31/2019

 

 

9/30/2019

 

 

12/31/2018

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

Interest and fees on LHFS & LHFI-FTE

$

111,383

 

 

$

116,432

 

 

$

107,709

 

 

$

(5,049

)

 

 

-4.3

%

 

$

3,674

 

 

 

3.4

%

Interest and fees on acquired loans

 

2,138

 

 

 

2,309

 

 

 

3,183

 

 

 

(171

)

 

 

-7.4

%

 

 

(1,045

)

 

 

-32.8

%

Interest on securities-taxable

 

12,884

 

 

 

13,184

 

 

 

15,496

 

 

 

(300

)

 

 

-2.3

%

 

 

(2,612

)

 

 

-16.9

%

Interest on securities-tax exempt-FTE

 

484

 

 

 

485

 

 

 

617

 

 

 

(1

)

 

 

-0.2

%

 

 

(133

)

 

 

-21.6

%

Interest on fed funds sold and rev repos

 

1

 

 

 

23

 

 

 

4

 

 

 

(22

)

 

 

-95.7

%

 

 

(3

)

 

 

-75.0

%

Other interest income

 

896

 

 

 

1,044

 

 

 

1,158

 

 

 

(148

)

 

 

-14.2

%

 

 

(262

)

 

 

-22.6

%

     Total interest income-FTE

 

127,786

 

 

 

133,477

 

 

 

128,167

 

 

 

(5,691

)

 

 

-4.3

%

 

 

(381

)

 

 

-0.3

%

Interest on deposits

 

17,716

 

 

 

20,385

 

 

 

17,334

 

 

 

(2,669

)

 

 

-13.1

%

 

 

382

 

 

 

2.2

%

Interest on fed funds pch and repos

 

504

 

 

 

547

 

 

 

1,528

 

 

 

(43

)

 

 

-7.9

%

 

 

(1,024

)

 

 

-67.0

%

Other interest expense

 

826

 

 

 

830

 

 

 

894

 

 

 

(4

)

 

 

-0.5

%

 

 

(68

)

 

 

-7.6

%

     Total interest expense

 

19,046

 

 

 

21,762

 

 

 

19,756

 

 

 

(2,716

)

 

 

-12.5

%

 

 

(710

)

 

 

-3.6

%

     Net interest income-FTE

 

108,740

 

 

 

111,715

 

 

 

108,411

 

 

 

(2,975

)

 

 

-2.7

%

 

 

329

 

 

 

0.3

%

Provision for loan losses, LHFI

 

3,661

 

 

 

3,039

 

 

 

2,192

 

 

 

622

 

 

 

20.5

%

 

 

1,469

 

 

 

67.0

%

Provision for loan losses, acquired loans

 

(2

)

 

 

(140

)

 

 

(247

)

 

 

138

 

 

 

98.6

%

 

 

245

 

 

 

99.2

%

     Net interest income after provision-FTE

 

105,081

 

 

 

108,816

 

 

 

106,466

 

 

 

(3,735

)

 

 

-3.4

%

 

 

(1,385

)