Trustmark Corporation Announces Third Quarter 2024 Financial Results

Performance Reflects Increased Earnings, Enhanced Profitability, and Strengthened Capital Flexibility

JACKSON, Miss.--(BUSINESS WIRE)--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $51.3 million in the third quarter of 2024, representing diluted earnings per share of $0.84. In the second quarter of 2024, Trustmark reported net income of $73.8 million, representing diluted earnings per share of $1.20 and net income from adjusted continuing operations⁽¹⁾ of $40.5 million, or $0.66 per diluted share. Net income from adjusted continuing operations⁽¹⁾ increased $10.8 million, or 26.7%, linked-quarter.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/54139686/en

Financial results in the second quarter of 2024, which included the sale of Fisher Brown Bottrell Insurance, Inc. (FBBI), consisted of both continuing operations and discontinued operations. The discontinued operations included the financial results of FBBI prior to the sale as well as the gain on sale in the second quarter. The discontinued operations results are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented. Financial results from adjusted continuing operations⁽¹⁾ exclude significant non-routine transactions.

The Board of Directors declared a quarterly cash dividend of $0.23 per share payable December 15, 2024, to shareholders of record on December 1, 2024.

Third Quarter Highlights

• Net income from adjusted continuing operations⁽¹⁾ increased $10.8 million, or 26.7%, linked-quarter to $51.3 million
• Net interest income (FTE) increased $13.7 million, or 9.5%, linked-quarter to $158.0 million, resulting in a net interest margin of 3.69%, up 31 basis points from the prior quarter
• Loans held for investment (HFI) totaled $13.1 billion, a decrease of $55.3 million, or 0.4%, from the prior quarter and an increase of $289.9 million, or 2.3%, year-over-year
• Deposits totaled $15.2 billion, down $222.0 million, or 1.4%, linked-quarter, and up $139.0 million, or 0.9%, year-over-year; excluding targeted reductions in public and brokered deposits totaling $529.7 million, deposits increased $307.7 million, or 2.1%, linked-quarter
• Achieved return on average tangible equity of 12.86% and return on average assets of 1.10%
• Efficiency ratio improved 282 basis points to 60.99% in the third quarter

Duane A. Dewey, President and CEO, stated, “Trustmark’s third quarter results reflect significant achievement across the organization. Profitability meaningfully increased as evidenced by the 26.7% growth in net income from adjusted continuing operations⁽¹⁾ and a 282 basis point improvement in the efficiency ratio. The restructuring of the investment securities portfolio in the second quarter was a major contributor to the 9.5% increase in net interest income in the third quarter. These accomplishments are the result of focused efforts to enhance Trustmark’s long-term performance and competitiveness. We continue to implement technology and streamline processes to enhance our ability to grow and serve customers. Trustmark is well-positioned to compete in changing economic conditions and create long-term value for our shareholders.”

Balance Sheet Management

• Loans HFI totaled $13.1 billion, down 0.4% from the prior quarter and up 2.3% year-over-year
• Deposits totaled $15.2 billion, down 1.4% from the previous quarter and up 0.9% year-over-year
• Enhanced strong capital position with CET1 ratio of 11.30% and total risk-based capital ratio of 13.71%

Loans HFI totaled $13.1 billion at September 30, 2024, reflecting a decrease of $55.3 million, or 0.4%, linked-quarter and an increase of $289.9 million, or 2.3%, year-over-year. The linked-quarter change reflected decreases in commercial and industrial loans, state and other political subdivision loans, and commercial real estate loans offset in part by increases in other real estate secured loans, other loans and leases (equipment finance), and 1-4 family mortgage loans. Trustmark’s loan portfolio continues to be well-diversified by loan type and geography.

Deposits totaled $15.2 billion at September 30, 2024, down $222.0 million, or 1.4%, from the prior quarter and an increase of $139.0 million, or 0.9%, year-over-year. Excluding targeted reductions in public deposits of $330.1 million and brokered deposits of $199.6 million, deposits increased $307.7 million, or 2.1%, linked-quarter. Trustmark continues to maintain a strong liquidity position as loans HFI represented 86.0% of total deposits at September 30, 2024. Noninterest-bearing deposits represented 20.6% of total deposits at September 30, 2024, compared to 20.4% of total deposits at June 30, 2024. The cost of interest-bearing deposits increased 6 basis points to 2.81% for the third quarter, while the cost of total deposits was 2.22%, up 4 basis points from the prior quarter. The total cost of interest-bearing liabilities was 2.94% for the third quarter, down 1 basis point linked-quarter.

As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2024, under which $50.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2024. As of September 30, 2024, Trustmark had not repurchased any of its outstanding common shares under this program. At September 30, 2024, Trustmark’s tangible equity to tangible assets ratio was 9.07%, up 55 basis points from the prior quarter, while the total risk-based capital ratio was 13.71%, up 42 basis points from the prior quarter. Tangible book value per share was $26.88 at September 30, 2024, an increase of 6.5% from the prior quarter and 32.9% from the prior year.

Credit Quality

• Net charge-offs totaled $4.7 million in the third quarter, representing 0.14% of average loans
• Net provision for credit losses totaled $6.5 million for the third quarter
• Allowance for credit losses (ACL) represented 1.21% of loans HFI and 497.27% of nonaccrual loans, excluding individually evaluated loans at September 30, 2024

Nonaccrual loans totaled $73.8 million at September 30, 2024, reflecting an increase of $29.5 million from the prior quarter and a decline of $17.1 million year-over-year. Other real estate totaled $3.9 million, reflecting a decrease of $2.7 million from the prior quarter and $1.6 million from the prior year. Collectively, nonperforming assets totaled $77.7 million at September 30, 2024, up $26.9 million from the prior quarter and down $18.6 million from the prior year. Nonperforming assets represented 0.58% of loans HFI and loans held for sale at September 30, 2024.

The net provision for credit losses totaled $6.5 million in the third quarter compared to $19.7 million in the second quarter (which included a $8.6 million provision related to the Mortgage Loan Sale) and $8.4 million in the third quarter of 2023. The provision for credit losses for loans HFI was $7.9 million in the third quarter and was primarily attributable to specific reserves for individually analyzed credits and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was a negative $1.4 million, primarily driven by decreases in unfunded commitments.

Allocation of Trustmark’s $157.9 million ACL on loans HFI represented 1.08% of commercial loans and 1.64% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.21% at September 30, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Total revenue expanded to $192.3 million in the third quarter
• Net interest income (FTE) totaled $158.0 million in the third quarter, up 9.5% linked-quarter
• Noninterest income totaled $37.6 million in the third quarter

Total revenue in the third quarter was $192.3 million; in the second quarter total revenue was negative $0.3 million while revenue from adjusted continuing operations⁽¹⁾ was $179.3 million; total revenue from adjusted continuing operations⁽¹⁾ increased $13.0 million, or 7.3%, linked-quarter.

Net interest income (FTE) in the third quarter totaled $158.0 million, resulting in a net interest margin of 3.69%, up 31 basis points from the prior quarter. The increase in the net interest margin was primarily due to increased yields on the securities portfolio, while the loans HFI and held for sale portfolio remained relatively flat, offset by the increase in the cost of interest-bearing deposits.

Noninterest income in the third quarter totaled $37.6 million; in the second quarter noninterest income was a negative $141.3 million while noninterest income from adjusted continuing operations⁽¹⁾ totaled $38.2 million. Noninterest income from adjusted continuing operations⁽¹⁾ decreased $0.7 million, or 1.8%, from the prior quarter and increased $0.6 million, or 1.7% year-over-year. Service charges on deposit accounts totaled $11.3 million in the third quarter, an increase of $0.3 million, or 3.2% from the prior quarter and $0.2 million, or 1.8%, year-over-year. Bank card and other fees totaled $7.9 million in the third quarter, down $1.3 million linked-quarter and $0.3 million year-over-year. The linked-quarter change reflects reduced customer derivative revenue and seasonal declines in miscellaneous other revenue. Other, net totaled $3.0 million in the third quarter. Excluding the Visa C shares positive fair value adjustment of $8.1 million and the non-credit related loss on sale of 1-4 family mortgage loans of $4.8 million in the second quarter, other, net declined $1.3 million linked-quarter.

Mortgage loan production in the third quarter totaled $392.1 million, an increase of 3.3% from the prior quarter and 0.6% year-over-year. Mortgage banking revenue totaled $6.1 million in the third quarter, an increase of $1.9 million linked-quarter and a decrease of $0.3 million year-over-year. The linked-quarter increase was principally attributable to decreased net negative hedge ineffectiveness, which was offset in part by lower gains on sale of mortgage loans.

Wealth management revenue in the third quarter totaled $9.3 million, a decrease of $0.4 million, or 4.2%, from the prior quarter and an increase of $0.5 million, or 5.9%, year-over-year. The linked-quarter change reflected a seasonal decline in trust management and investment services revenue while the year-over-year increase reflected expanded brokerage revenue.

Noninterest Expense

• Noninterest expense increased $4.9 million, or 4.2%, linked-quarter
• Salaries and employee benefits expense increased $1.9 million, or 2.9%, linked quarter, reflecting annual merit increases, annual incentive accruals, and commissions
• Other real estate expense, net increased $2.1 million, all of which relates to the establishment of a reserve for a single property

Noninterest expense in the third quarter totaled $123.3 million, an increase of $4.9 million, or 4.2%, when compared to the prior quarter and a year-over-year decline of $0.5 million, or 0.4%, excluding the litigation settlement expense incurred in the third quarter of 2023. Salaries and employee benefits expense increased $1.9 million, or 2.9%, linked-quarter principally due to annual merit increases effective July 1, mortgage banking commissions and annual incentive-based accruals as a result of strong operating performance. Salaries and employee benefits expense in the third quarter declined $0.7 million, or 1.0%, from levels one year earlier. Other expense totaled $17.3 million in the third quarter, an increase of $2.1 million linked-quarter and $2.3 million year-over-year. The linked-quarter and year-over-year changes are attributable to an increase in other real estate expense, net related to the establishment of a reserve for a single property under contract to sell in the fourth quarter of 2024.

⁽¹⁾ Please refer to Consolidated Financial Information, Note 1 – Significant Non-Routine Transactions and Note 7 – Non-GAAP Financial Measures.

Significant Non-Routine Transactions in the Second Quarter

• Completed sale of FBBI, producing a gain on sale of $228.3 million ($171.2 million, net of taxes)
• Restructured investment securities portfolio; sold available for sale securities of $1.6 billion with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes); purchased $1.4 billion of available for sale securities with an average yield of 4.85%
• Sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at time of selection totaling $56.2 million (Mortgage Loan Sale) which generated a loss of $13.4 million ($10.1 million, net of taxes); sale drove a $54.1 million reduction in nonperforming loans
• Exchanged Visa Class B-1 shares for Visa Class B-2 shares and Visa Class C common stock; Visa Class C stock exchange resulted in a gain of $8.1 million ($6.0 million, net of taxes)

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 23, 2024, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing [phone] or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, November 6, 2024, in archived format at the same web address or by calling [phone], passcode 9091375.

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

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations or 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, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international 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, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, changes in our ability to measure the fair value of assets in our portfolio, changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain 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, 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, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

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

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
QUARTERLY AVERAGE BALANCES	9/30/2024			6/30/2024			9/30/2023			$ Change			% Change		$ Change			% Change
Securities AFS-taxable	$	1,658,999		$	1,866,227		$	2,049,006		$	(207,228	)	-11.1	%	$	(390,007	)	-19.0	%
Securities AFS-nontaxable		—			—			4,779			—		n/m			(4,779	)	-100.0	%
Securities HTM-taxable		1,368,943			1,421,246			1,445,895			(52,303	)	-3.7	%		(76,952	)	-5.3	%
Securities HTM-nontaxable		—			112			907			(112	)	-100.0	%		(907	)	-100.0	%
Total securities		3,027,942			3,287,585			3,500,587			(259,643	)	-7.9	%		(472,645	)	-13.5	%
Loans (includes loans held for sale)		13,379,658			13,309,127			12,926,942			70,531		0.5	%		452,716		3.5	%
Fed funds sold and reverse repurchases		653			110			230			543		n/m			423		n/m
Other earning assets		607,275			592,625			682,644			14,650		2.5	%		(75,369	)	-11.0	%
Total earning assets		17,015,528			17,189,447			17,110,403			(173,919	)	-1.0	%		(94,875	)	-0.6	%
Allowance for credit losses (ACL), loans held
for investment (LHFI)		(154,476	)		(143,245	)		(127,915	)		(11,231	)	-7.8	%		(26,561	)	-20.8	%
Other assets		1,646,241			1,740,307			1,721,310			(94,066	)	-5.4	%		(75,069	)	-4.4	%
Total assets	$	18,507,293		$	18,786,509		$	18,703,798		$	(279,216	)	-1.5	%	$	(196,505	)	-1.1	%
Interest-bearing demand deposits	$	5,382,346		$	5,222,369		$	4,875,714		$	159,977		3.1	%	$	506,632		10.4	%
Savings deposits		3,411,961			3,653,966			3,642,158			(242,005	)	-6.6	%		(230,197	)	-6.3	%
Time deposits		3,393,216			3,346,046			3,075,224			47,170		1.4	%		317,992		10.3	%
Total interest-bearing deposits		12,187,523			12,222,381			11,593,096			(34,858	)	-0.3	%		594,427		5.1	%
Fed funds purchased and repurchases		375,559			434,760			414,696			(59,201	)	-13.6	%		(39,137	)	-9.4	%
Other borrowings		339,417			534,350			912,151			(194,933	)	-36.5	%		(572,734	)	-62.8	%
Subordinated notes		123,611			123,556			123,391			55		0.0	%		220		0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—		0.0	%		—		0.0	%
Total interest-bearing liabilities		13,087,966			13,376,903			13,105,190			(288,937	)	-2.2	%		(17,224	)	-0.1	%
Noninterest-bearing deposits		3,221,516			3,183,524			3,429,815			37,992		1.2	%		(208,299	)	-6.1	%
Other liabilities		274,563			498,593			585,908			(224,030	)	-44.9	%		(311,345	)	-53.1	%
Total liabilities		16,584,045			17,059,020			17,120,913			(474,975	)	-2.8	%		(536,868	)	-3.1	%
Shareholders' equity		1,923,248			1,727,489			1,582,885			195,759		11.3	%		340,363		21.5	%
Total liabilities and equity	$	18,507,293		$	18,786,509		$	18,703,798		$	(279,216	)	-1.5	%	$	(196,505	)	-1.1	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
PERIOD END BALANCES	9/30/2024			6/30/2024			9/30/2023			$ Change			% Change		$ Change			% Change
Cash and due from banks	$	805,436		$	822,141		$	750,292		$	(16,705	)	-2.0	%	$	55,144		7.3	%
Fed funds sold and reverse repurchases		10,000			—			—			10,000		n/m			10,000		n/m
Securities available for sale		1,725,795			1,621,659			1,766,174			104,136		6.4	%		(40,379	)	-2.3	%
Securities held to maturity		1,358,358			1,380,487			1,438,287			(22,129	)	-1.6	%		(79,929	)	-5.6	%
Loans held for sale (LHFS)		216,454			185,698			169,244			30,756		16.6	%		47,210		27.9	%
Loans held for investment (LHFI)		13,100,111			13,155,418			12,810,259			(55,307	)	-0.4	%		289,852		2.3	%
ACL LHFI		(157,929	)		(154,685	)		(134,031	)		(3,244	)	-2.1	%		(23,898	)	-17.8	%
Net LHFI		12,942,182			13,000,733			12,676,228			(58,551	)	-0.5	%		265,954		2.1	%
Premises and equipment, net		236,151			232,681			230,402			3,470		1.5	%		5,749		2.5	%
Mortgage servicing rights		125,853			136,658			142,379			(10,805	)	-7.9	%		(16,526	)	-11.6	%
Goodwill		334,605			334,605			334,605			—		0.0	%		—		0.0	%
Identifiable intangible assets		153			181			269			(28	)	-15.5	%		(116	)	-43.1	%
Other real estate		3,920			6,586			5,485			(2,666	)	-40.5	%		(1,565	)	-28.5	%
Operating lease right-of-use assets		36,034			36,925			37,115			(891	)	-2.4	%		(1,081	)	-2.9	%
Other assets		685,431			694,133			770,684			(8,702	)	-1.3	%		(85,253	)	-11.1	%
Assets of discontinued operations		—			—			69,675			—		n/m			(69,675	)	-100.0	%
Total assets	$	18,480,372		$	18,452,487		$	18,390,839		$	27,885		0.2	%	$	89,533		0.5	%
Deposits:
Noninterest-bearing	$	3,142,792		$	3,153,506		$	3,320,124		$	(10,714	)	-0.3	%	$	(177,332	)	-5.3	%
Interest-bearing		12,098,143			12,309,382			11,781,799			(211,239	)	-1.7	%		316,344		2.7	%
Total deposits		15,240,935			15,462,888			15,101,923			(221,953	)	-1.4	%		139,012		0.9	%
Fed funds purchased and repurchases		365,643			314,121			321,799			51,522		16.4	%		43,844		13.6	%
Other borrowings		443,458			336,687			793,193			106,771		31.7	%		(349,735	)	-44.1	%
Subordinated notes		123,647			123,592			123,427			55		0.0	%		220		0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—		0.0	%		—		0.0	%
ACL on off-balance sheet credit exposures		28,890			30,265			34,945			(1,375	)	-4.5	%		(6,055	)	-17.3	%
Operating lease liabilities		39,689			40,517			40,150			(828	)	-2.0	%		(461	)	-1.1	%
Other liabilities		196,158			203,420			331,066			(7,262	)	-3.6	%		(134,908	)	-40.7	%
Liabilities of discontinued operations		—			—			12,129			—		n/m			(12,129	)	-100.0	%
Total liabilities		16,500,276			16,573,346			16,820,488			(73,070	)	-0.4	%		(320,212	)	-1.9	%
Common stock		12,753			12,753			12,724			—		0.0	%		29		0.2	%
Capital surplus		163,156			161,834			158,316			1,322		0.8	%		4,840		3.1	%
Retained earnings		1,833,232			1,796,111			1,687,199			37,121		2.1	%		146,033		8.7	%
Accumulated other comprehensive
income (loss), net of tax		(29,045	)		(91,557	)		(287,888	)		62,512		68.3	%		258,843		89.9	%
Total shareholders' equity		1,980,096			1,879,141			1,570,351			100,955		5.4	%		409,745		26.1	%
Total liabilities and equity	$	18,480,372		$	18,452,487		$	18,390,839		$	27,885		0.2	%	$	89,533		0.5	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands except per share data)
(unaudited)
	Quarter Ended								Linked Quarter					Year over Year
INCOME STATEMENTS	9/30/2024			6/30/2024			9/30/2023		$ Change			% Change		$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	220,433		$	216,399		$	206,523	$	4,034		1.9	%	$	13,910		6.7	%
Interest on securities-taxable		26,162			17,929			16,624		8,233		45.9	%		9,538		57.4	%
Interest on securities-tax exempt-FTE		—			1			58		(1	)	-100.0	%		(58	)	-100.0	%
Interest on fed funds sold and reverse repurchases		9			2			3		7		n/m			6		n/m
Other interest income		8,293			8,124			8,613		169		2.1	%		(320	)	-3.7	%
Total interest income-FTE		254,897			242,455			231,821		12,442		5.1	%		23,076		10.0	%
Interest on deposits		86,043			83,681			69,797		2,362		2.8	%		16,246		23.3	%
Interest on fed funds purchased and repurchases		4,864			5,663			5,375		(799	)	-14.1	%		(511	)	-9.5	%
Other interest expense		5,971			8,778			14,713		(2,807	)	-32.0	%		(8,742	)	-59.4	%
Total interest expense		96,878			98,122			89,885		(1,244	)	-1.3	%		6,993		7.8	%
Net interest income-FTE		158,019			144,333			141,936		13,686		9.5	%		16,083		11.3	%
Provision for credit losses (PCL), LHFI		7,923			14,696			8,322		(6,773	)	-46.1	%		(399	)	-4.8	%
PCL, off-balance sheet credit exposures		(1,375	)		(3,600	)		104		2,225		61.8	%		(1,479	)	n/m
PCL, LHFI sale of 1-4 family mortgage loans		—			8,633			—		(8,633	)	-100.0	%		—		n/m
Net interest income after provision-FTE		151,471			124,604			133,510		26,867		21.6	%		17,961		13.5	%
Service charges on deposit accounts		11,272			10,924			11,074		348		3.2	%		198		1.8	%
Bank card and other fees		7,931			9,225			8,217		(1,294	)	-14.0	%		(286	)	-3.5	%
Mortgage banking, net		6,119			4,204			6,458		1,915		45.6	%		(339	)	-5.2	%
Wealth management		9,288			9,692			8,773		(404	)	-4.2	%		515		5.9	%
Other, net		2,952			7,461			2,399		(4,509	)	-60.4	%		553		23.1	%
Securities gains (losses), net		—			(182,792	)		—		182,792		-100.0	%		—		n/m
Total noninterest income (loss)		37,562			(141,286	)		36,921		178,848		n/m			641		1.7	%
Salaries and employee benefits		66,691			64,838			67,374		1,853		2.9	%		(683	)	-1.0	%
Services and fees		25,724			24,743			27,472		981		4.0	%		(1,748	)	-6.4	%
Net occupancy-premises		7,398			7,265			7,151		133		1.8	%		247		3.5	%
Equipment expense		6,141			6,241			6,755		(100	)	-1.6	%		(614	)	-9.1	%
Litigation settlement expense (1)		—			—			6,500		—		n/m			(6,500	)	-100.0	%
Other expense		17,316			15,239			15,039		2,077		13.6	%		2,277		15.1	%
Total noninterest expense		123,270			118,326			130,291		4,944		4.2	%		(7,021	)	-5.4	%
Income (loss) from continuing operations before
income taxes and tax eq adj		65,763			(135,008	)		40,140		200,771		n/m			25,623		63.8	%
Tax equivalent adjustment		3,305			3,304			3,299		1		0.0	%		6		0.2	%
Income (loss) from continuing operations before
income taxes		62,458			(138,312	)		36,841		200,770		n/m			25,617		69.5	%
Income taxes from continuing operations		11,128			(37,707	)		6,288		48,835		n/m			4,840		77.0	%
Income (loss) from continuing operations		51,330			(100,605	)		30,553		151,935		n/m			20,777		68.0	%
Income from discontinued operations
(discont. ops) before income taxes		—			232,640			4,649		(232,640	)	-100.0	%		(4,649	)	-100.0	%
Income taxes from discont. ops		—			58,203			1,173		(58,203	)	-100.0	%		(1,173	)	-100.0	%
Income from discont. ops		—			174,437			3,476		(174,437	)	-100.0	%		(3,476	)	-100.0	%
Net income	$	51,330		$	73,832		$	34,029	$	(22,502	)	-30.5	%	$	17,301		50.8	%
Per share data (1)
Basic earnings (loss) per share from
continuing operations	$	0.84		$	(1.64	)	$	0.50	$	2.48		n/m		$	0.34		68.0	%
Basic earnings per share from discont. ops	$	—		$	2.85		$	0.06	$	(2.85	)	-100.0	%	$	(0.06	)	-100.0	%
Basic earnings per share - total	$	0.84		$	1.21		$	0.56	$	(0.37	)	-30.6	%	$	0.28		50.0	%
Diluted earnings (loss) per share from
continuing operations	$	0.84		$	(1.64	)	$	0.50	$	2.48		n/m		$	0.34		68.0	%
Diluted earnings per share from discont. ops	$	—		$	2.84		$	0.06	$	(2.84	)	-100.0	%	$	(0.06	)	-100.0	%
Diluted earnings per share - total	$	0.84		$	1.20		$	0.56	$	(0.36	)	-30.0	%	$	0.28		50.0	%
Dividends per share	$	0.23		$	0.23		$	0.23	$	—		0.0	%	$	—		0.0	%
Weighted average shares outstanding
Basic		61,206,599			61,196,820			61,069,750
Diluted		61,448,410			61,415,957			61,263,032
Period end shares outstanding		61,206,606			61,205,969			61,070,095
(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
NONPERFORMING ASSETS	9/30/2024			6/30/2024			9/30/2023			$ Change			% Change		$ Change			% Change
Nonaccrual LHFI
Alabama	$	25,835		$	26,222		$	23,530		$	(387	)	-1.5	%	$	2,305		9.8	%
Florida		111			614			151			(503	)	-81.9	%		(40	)	-26.5	%
Mississippi (1)		31,536			14,773			45,050			16,763		n/m			(13,514	)	-30.0	%
Tennessee (2)		3,180			2,084			1,841			1,096		52.6	%		1,339		72.7	%
Texas		13,163			599			20,327			12,564		n/m			(7,164	)	-35.2	%
Total nonaccrual LHFI		73,825			44,292			90,899			29,533		66.7	%		(17,074	)	-18.8	%
Other real estate
Alabama		170			485			315			(315	)	-64.9	%		(145	)	n/m
Florida		—			—			—			—		n/m			—		n/m
Mississippi (1)		1,772			1,787			942			(15	)	-0.8	%		830		88.1	%
Tennessee (2)		—			86			—			(86	)	-100.0	%		—		n/m
Texas		1,978			4,228			4,228			(2,250	)	-53.2	%		(2,250	)	-53.2	%
Total other real estate		3,920			6,586			5,485			(2,666	)	-40.5	%		(1,565	)	-28.5	%
Total nonperforming assets	$	77,745		$	50,878		$	96,384		$	26,867		52.8	%	$	(18,639	)	-19.3	%
LOANS PAST DUE OVER 90 DAYS
LHFI	$	5,352		$	5,413		$	3,804		$	(61	)	-1.1	%	$	1,548		40.7	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	63,703		$	58,079		$	42,532		$	5,624		9.7	%	$	21,171		49.8	%
	Quarter Ended									Linked Quarter					Year over Year
ACL LHFI	9/30/2024			6/30/2024			9/30/2023			$ Change			% Change		$ Change			% Change
Beginning Balance	$	154,685		$	142,998		$	129,298		$	11,687		8.2	%	$	25,387		19.6	%
PCL, LHFI		7,923			14,696			8,322			(6,773	)	-46.1	%		(399	)	-4.8	%
PCL, LHFI sale of 1-4 family mortgage loans		—			8,633			—			(8,633	)	-100.0	%		—		n/m
Charge-offs, sale of 1-4 family mortgage loans		—			(8,633	)		—			8,633		-100.0	%		—		n/m
Charge-offs		(7,142	)		(5,120	)		(7,496	)		(2,022	)	-39.5	%		354		4.7	%
Recoveries		2,463			2,111			3,907			352		16.7	%		(1,444	)	-37.0	%
Net (charge-offs) recoveries		(4,679	)		(11,642	)		(3,589	)		6,963		59.8	%		(1,090	)	-30.4	%
Ending Balance	$	157,929		$	154,685		$	134,031		$	3,244		2.1	%	$	23,898		17.8	%
NET (CHARGE-OFFS) RECOVERIES
Alabama	$	(3,098	)	$	59		$	(165	)	$	(3,157	)	n/m		$	(2,933	)	n/m
Florida		595			4			21			591		n/m			574		n/m
Mississippi (1)		(1,881	)		(9,112	)		(1,867	)		7,231		79.4	%		(14	)	-0.7	%
Tennessee (2)		(296	)		(122	)		2,127			(174	)	n/m			(2,423	)	n/m
Texas		1			(2,471	)		(3,705	)		2,472		n/m			3,706		n/m
Total net (charge-offs) recoveries	$	(4,679	)	$	(11,642	)	$	(3,589	)	$	6,963		n/m		$	(1,090	)	-30.4	%
(1) Mississippi includes Central and Southern Mississippi Regions.
(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands)
(unaudited)
	Quarter Ended															Nine Months Ended
AVERAGE BALANCES	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Securities AFS-taxable	$	1,658,999		$	1,866,227		$	1,927,619		$	1,986,825		$	2,049,006		$	1,817,036		$	2,125,038
Securities AFS-nontaxable		—			—			—			4,246			4,779			—			4,796
Securities HTM-taxable		1,368,943			1,421,246			1,418,476			1,430,169			1,445,895			1,402,764			1,462,632
Securities HTM-nontaxable		—			112			340			340			907			150			2,365
Total securities		3,027,942			3,287,585			3,346,435			3,421,580			3,500,587			3,219,950			3,594,831
Loans (includes loans held for sale)		13,379,658			13,309,127			13,169,805			13,010,028			12,926,942			13,286,538			12,731,268
Fed funds sold and reverse repurchases		653			110			114			121			230			294			1,953
Other earning assets		607,275			592,625			571,215			670,477			682,644			590,433			747,627
Total earning assets		17,015,528			17,189,447			17,087,569			17,102,206			17,110,403			17,097,215			17,075,679
ACL LHFI		(154,476	)		(143,245	)		(138,711	)		(133,742	)		(127,915	)		(145,510	)		(123,313	)
Other assets		1,646,241			1,740,307			1,730,521			1,749,069			1,721,310			1,705,473			1,707,608
Total assets	$	18,507,293		$	18,786,509		$	18,679,379		$	18,717,533		$	18,703,798		$	18,657,178		$	18,659,974
Interest-bearing demand deposits	$	5,382,346		$	5,222,369		$	5,291,779		$	5,053,935		$	4,875,714		$	5,299,136		$	4,810,658
Savings deposits		3,411,961			3,653,966			3,686,027			3,526,600			3,642,158			3,583,357			3,943,998
Time deposits		3,393,216			3,346,046			3,321,601			3,427,384			3,075,224			3,353,766			2,443,753
Total interest-bearing deposits		12,187,523			12,222,381			12,299,407			12,007,919			11,593,096			12,236,259			11,198,409
Fed funds purchased and repurchases		375,559			434,760			428,127			403,041			414,696			412,679			413,608
Other borrowings		339,417			534,350			463,459			590,765			912,151			445,354			1,116,940
Subordinated notes		123,611			123,556			123,501			123,446			123,391			123,556			123,337
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		13,087,966			13,376,903			13,376,350			13,187,027			13,105,190			13,279,704			12,914,150
Noninterest-bearing deposits		3,221,516			3,183,524			3,120,566			3,296,351			3,429,815			3,175,371			3,611,592
Other liabilities		274,563			498,593			505,942			641,662			585,908			425,812			571,681
Total liabilities		16,584,045			17,059,020			17,002,858			17,125,040			17,120,913			16,880,887			17,097,423
Shareholders' equity		1,923,248			1,727,489			1,676,521			1,592,493			1,582,885			1,776,291			1,562,551
Total liabilities and equity	$	18,507,293		$	18,786,509		$	18,679,379		$	18,717,533		$	18,703,798		$	18,657,178		$	18,659,974
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands)
(unaudited)
PERIOD END BALANCES	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Cash and due from banks	$	805,436		$	822,141		$	606,061		$	975,343		$	750,292
Fed funds sold and reverse repurchases		10,000			—			—			—			—
Securities available for sale		1,725,795			1,621,659			1,702,299			1,762,878			1,766,174
Securities held to maturity		1,358,358			1,380,487			1,415,025			1,426,279			1,438,287
LHFS		216,454			185,698			172,937			184,812			169,244
LHFI		13,100,111			13,155,418			13,057,943			12,950,524			12,810,259
ACL LHFI		(157,929	)		(154,685	)		(142,998	)		(139,367	)		(134,031	)
Net LHFI		12,942,182			13,000,733			12,914,945			12,811,157			12,676,228
Premises and equipment, net		236,151			232,681			232,630			232,229			230,402
Mortgage servicing rights		125,853			136,658			138,044			131,870			142,379
Goodwill		334,605			334,605			334,605			334,605			334,605
Identifiable intangible assets		153			181			208			236			269
Other real estate		3,920			6,586			7,620			6,867			5,485
Operating lease right-of-use assets		36,034			36,925			34,324			35,711			37,115
Other assets		685,431			694,133			744,821			752,568			770,684
Assets of discontinued operations		—			—			73,093			67,634			69,675
Total assets	$	18,480,372		$	18,452,487		$	18,376,612		$	18,722,189		$	18,390,839
Deposits:
Noninterest-bearing	$	3,142,792		$	3,153,506		$	3,039,652		$	3,197,620		$	3,320,124
Interest-bearing		12,098,143			12,309,382			12,298,905			12,372,143			11,781,799
Total deposits		15,240,935			15,462,888			15,338,557			15,569,763			15,101,923
Fed funds purchased and repurchases		365,643			314,121			393,215			405,745			321,799
Other borrowings		443,458			336,687			482,027			483,230			793,193
Subordinated notes		123,647			123,592			123,537			123,482			123,427
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures		28,890			30,265			33,865			34,057			34,945
Operating lease liabilities		39,689			40,517			37,792			39,097			40,150
Other liabilities		196,158			203,420			207,583			331,085			331,066
Liabilities of discontinued operations		—			—			15,581			12,027			12,129
Total liabilities		16,500,276			16,573,346			16,694,013			17,060,342			16,820,488
Common stock		12,753			12,753			12,747			12,725			12,724
Capital surplus		163,156			161,834			160,521			159,688			158,316
Retained earnings		1,833,232			1,796,111			1,736,485			1,709,157			1,687,199
Accumulated other comprehensive income (loss),
net of tax		(29,045	)		(91,557	)		(227,154	)		(219,723	)		(287,888	)
Total shareholders' equity		1,980,096			1,879,141			1,682,599			1,661,847			1,570,351
Total liabilities and equity	$	18,480,372		$	18,452,487		$	18,376,612		$	18,722,189		$	18,390,839
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands except per share data)
(unaudited)
	Quarter Ended														Nine Months Ended
INCOME STATEMENTS	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023		9/30/2024			9/30/2023
Interest and fees on LHFS & LHFI-FTE	$	220,433		$	216,399		$	209,456		$	210,288		$	206,523	$	646,288		$	578,431
Interest on securities-taxable		26,162			17,929			15,634			15,936			16,624		59,725			50,164
Interest on securities-tax exempt-FTE		—			1			4			44			58		5			219
Interest on fed funds sold and reverse repurchases		9			2			1			2			3		12			78
Other interest income		8,293			8,124			8,110			9,918			8,613		24,527			27,217
Total interest income-FTE		254,897			242,455			233,205			236,188			231,821		730,557			656,109
Interest on deposits		86,043			83,681			83,716			80,847			69,797		253,440			165,104
Interest on fed funds purchased and repurchases		4,864			5,663			5,591			5,347			5,375		16,118			15,072
Other interest expense		5,971			8,778			7,703			9,946			14,713		22,452			49,638
Total interest expense		96,878			98,122			97,010			96,140			89,885		292,010			229,814
Net interest income-FTE		158,019			144,333			136,195			140,048			141,936		438,547			426,295
PCL, LHFI		7,923			14,696			7,708			7,585			8,322		30,327			19,777
PCL, off-balance sheet credit exposures		(1,375	)		(3,600	)		(192	)		(888	)		104		(5,167	)		(1,893	)
PCL, LHFI sale of 1-4 family mortgage loans		—			8,633			—			—			—		8,633			—
Net interest income after provision-FTE		151,471			124,604			128,679			133,351			133,510		404,754			408,411
Service charges on deposit accounts		11,272			10,924			10,958			11,311			11,074		33,154			32,105
Bank card and other fees		7,931			9,225			7,428			8,502			8,217		24,584			24,937
Mortgage banking, net		6,119			4,204			8,915			5,519			6,458		19,238			20,697
Wealth management		9,288			9,692			8,952			8,657			8,773		27,932			26,435
Other, net		2,952			7,461			3,102			2,577			2,399		13,515			7,654
Securities gains (losses), net		—			(182,792	)		—			39			—		(182,792	)		—
Total noninterest income (loss)		37,562			(141,286	)		39,355			36,605			36,921		(64,369	)		111,828
Salaries and employee benefits		66,691			64,838			65,487			69,326			67,374		197,016			198,944
Services and fees		25,724			24,743			24,431			27,478			27,472		74,898			80,327
Net occupancy-premises		7,398			7,265			7,270			7,144			7,151		21,933			21,363
Equipment expense		6,141			6,241			6,325			6,457			6,755		18,707			19,387
Litigation settlement expense		—			—			—			—			6,500		—			6,500
Other expense		17,316			15,239			16,151			15,790			15,039		48,706			42,980
Total noninterest expense		123,270			118,326			119,664			126,195			130,291		361,260			369,501
Income (loss) from continuing operations before
income taxes and tax eq adj		65,763			(135,008	)		48,370			43,761			40,140		(20,875	)		150,738
Tax equivalent adjustment		3,305			3,304			3,365			3,306			3,299		9,974			10,159
Income (loss) from continuing operations before
income taxes		62,458			(138,312	)		45,005			40,455			36,841		(30,849	)		140,579
Income taxes from continuing operations		11,128			(37,707	)		6,832			6,567			6,288		(19,747	)		21,177
Income (loss) from continuing operations		51,330			(100,605	)		38,173			33,888			30,553		(11,102	)		119,402
Income from discontinued operations
(discont. ops) before income taxes		—			232,640			4,512			2,965			4,649		237,152			13,337
Income taxes from discontinued operations		—			58,203			1,150			730			1,173		59,353			3,373
Income from discont. ops		—			174,437			3,362			2,235			3,476		177,799			9,964
Net income	$	51,330		$	73,832		$	41,535		$	36,123		$	34,029	$	166,697		$	129,366
Per share data (1)
Basic earnings (loss) per share from continuing
operations	$	0.84		$	(1.64	)	$	0.62		$	0.55		$	0.50	$	(0.18	)	$	1.96
Basic earnings per share from discont. ops	$	—		$	2.85		$	0.05		$	0.04		$	0.06	$	2.91		$	0.16
Basic earnings per share - total	$	0.84		$	1.21		$	0.68		$	0.59		$	0.56	$	2.72		$	2.12
Diluted earnings (loss) per share from continuing
operations	$	0.84		$	(1.64	)	$	0.62		$	0.55		$	0.50	$	(0.18	)	$	1.95
Diluted earnings per share from discont. ops	$	—		$	2.84		$	0.05		$	0.04		$	0.06	$	2.90		$	0.16
Diluted earnings per share - total	$	0.84		$	1.20		$	0.68		$	0.59		$	0.56	$	2.72		$	2.11
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23	$	0.69		$	0.69
Weighted average shares outstanding
Basic		61,206,599			61,196,820			61,128,425			61,070,481			61,069,750		61,177,388			61,048,244
Diluted		61,448,410			61,415,957			61,348,364			61,296,840			61,263,032		61,393,179			61,219,022
Period end shares outstanding		61,206,606			61,205,969			61,178,366			61,071,173			61,070,095		61,206,606			61,070,095
(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
($ in thousands)
(unaudited)
	Quarter Ended
NONPERFORMING ASSETS	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Nonaccrual LHFI
Alabama	$	25,835		$	26,222		$	23,261		$	23,271		$	23,530
Florida		111			614			585			170			151
Mississippi (1)		31,536			14,773			59,059			54,615			45,050
Tennessee (2)		3,180			2,084			1,800			1,802			1,841
Texas		13,163			599			13,646			20,150			20,327
Total nonaccrual LHFI		73,825			44,292			98,351			100,008			90,899
Other real estate
Alabama		170			485			1,050			1,397			315
Florida		—			—			71			—			—
Mississippi (1)		1,772			1,787			2,870			1,242			942
Tennessee (2)		—			86			86			—			—
Texas		1,978			4,228			3,543			4,228			4,228
Total other real estate		3,920			6,586			7,620			6,867			5,485
Total nonperforming assets	$	77,745		$	50,878		$	105,971		$	106,875		$	96,384
LOANS PAST DUE OVER 90 DAYS
LHFI	$	5,352		$	5,413		$	5,243		$	5,790		$	3,804
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	63,703		$	58,079		$	56,530		$	51,243		$	42,532
	Quarter Ended															Nine Months Ended
ACL LHFI	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Beginning Balance	$	154,685		$	142,998		$	139,367		$	134,031		$	129,298		$	139,367		$	120,214
PCL, LHFI		7,923			14,696			7,708			7,585			8,322			30,327			19,777
PCL, LHFI sale of 1-4 family mortgage loans		—			8,633			—			—			—			8,633			—
Charge-offs, sale of 1-4 family mortgage loans		—			(8,633	)		—			—			—			(8,633	)		—
Charge-offs		(7,142	)		(5,120	)		(6,324	)		(4,250	)		(7,496	)		(18,586	)		(13,265	)
Recoveries		2,463			2,111			2,247			2,001			3,907			6,821			7,305
Net (charge-offs) recoveries		(4,679	)		(11,642	)		(4,077	)		(2,249	)		(3,589	)		(20,398	)		(5,960	)
Ending Balance	$	157,929		$	154,685		$	142,998		$	139,367		$	134,031		$	157,929		$	134,031
NET (CHARGE-OFFS) RECOVERIES
Alabama	$	(3,098	)	$	59		$	(341	)	$	(299	)	$	(165	)	$	(3,380	)	$	(574	)
Florida		595			4			277			180			21			876			(50	)
Mississippi (1)		(1,881	)		(9,112	)		(1,489	)		(1,943	)		(1,867	)		(12,482	)		(3,404	)
Tennessee (2)		(296	)		(122	)		(179	)		(193	)		2,127			(597	)		1,837
Texas		1			(2,471	)		(2,345	)		6			(3,705	)		(4,815	)		(3,769	)
Total net (charge-offs) recoveries	$	(4,679	)	$	(11,642	)	$	(4,077	)	$	(2,249	)	$	(3,589	)	$	(20,398	)	$	(5,960	)
(1) Mississippi includes Central and Southern Mississippi Regions.
(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2024
(unaudited)
	Quarter Ended															Nine Months Ended
FINANCIAL RATIOS AND OTHER DATA	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024		9/30/2023
Return on average equity from continuing operations		10.62	%		-23.42	%		9.16	%		8.44	%		7.66	%	-0.83	%	10.22	%
Return on average equity from adjusted
continuing operations (1)		10.62	%		9.06	%		9.16	%		8.68	%		8.87	%	9.40	%	10.63	%
Return on average equity - total		10.62	%		17.19	%		9.96	%		9.00	%		8.53	%	12.54	%	11.07	%
Return on average tangible equity from
continuing operations		12.86	%		-29.05	%		11.45	%		10.70	%		9.72	%	-1.02	%	13.03	%
Return on average tangible equity from adjusted
continuing operations (1)		12.86	%		11.14	%		11.45	%		10.98	%		11.25	%	11.49	%	13.55	%
Return on average tangible equity - total		12.86	%		21.91	%		12.98	%		11.92	%		11.32	%	15.79	%	14.77	%
Return on average assets from continuing operations		1.10	%		-2.16	%		0.83	%		0.72	%		0.65	%	-0.08	%	0.86	%
Return on average assets from adjusted
continuing operations (1)		1.10	%		0.87	%		0.83	%		0.74	%		0.75	%	0.93	%	0.89	%
Return on average assets - total		1.10	%		1.58	%		0.89	%		0.77	%		0.72	%	1.19	%	0.93	%
Interest margin - Yield - FTE		5.96	%		5.67	%		5.49	%		5.48	%		5.38	%	5.71	%	5.14	%
Interest margin - Cost		2.27	%		2.30	%		2.28	%		2.23	%		2.08	%	2.28	%	1.80	%
Net interest margin - FTE		3.69	%		3.38	%		3.21	%		3.25	%		3.29	%	3.43	%	3.34	%
Efficiency ratio (2)		60.99	%		63.81	%		66.90	%		69.76	%		68.27	%	63.79	%	66.43	%
Full-time equivalent employees		2,500			2,515			2,712			2,757			2,756
CREDIT QUALITY RATIOS
Net (recoveries) charge-offs (excl sale of
1-4 family mortgage loans) / average loans		0.14	%		0.09	%		0.12	%		0.07	%		0.11	%	0.12	%	0.06	%
PCL, LHFI (excl PCL, LHFI sale of
1-4 family mortgage loans) / average loans		0.24	%		0.44	%		0.24	%		0.23	%		0.26	%	0.30	%	0.21	%
Nonaccrual LHFI / (LHFI + LHFS)		0.55	%		0.33	%		0.74	%		0.76	%		0.70	%
Nonperforming assets / (LHFI + LHFS)		0.58	%		0.38	%		0.80	%		0.81	%		0.74	%
Nonperforming assets / (LHFI + LHFS
+ other real estate)		0.58	%		0.38	%		0.80	%		0.81	%		0.74	%
ACL LHFI / LHFI		1.21	%		1.18	%		1.10	%		1.08	%		1.05	%
ACL LHFI-commercial / commercial LHFI		1.08	%		1.05	%		0.93	%		0.85	%		0.86	%
ACL LHFI-consumer / consumer and
home mortgage LHFI		1.64	%		1.59	%		1.63	%		1.81	%		1.66	%
ACL LHFI / nonaccrual LHFI		213.92	%		349.24	%		145.39	%		139.36	%		147.45	%
ACL LHFI / nonaccrual LHFI
(excl individually analyzed loans)		497.27	%		840.20	%		235.29	%		249.31	%		273.60	%
CAPITAL RATIOS
Total equity / total assets		10.71	%		10.18	%		9.16	%		8.88	%		8.54	%
Tangible equity / tangible assets		9.07	%		8.52	%		7.47	%		7.22	%		6.84	%
Tangible equity / risk-weighted assets		10.97	%		10.18	%		8.83	%		8.76	%		8.16	%
Tier 1 leverage ratio		9.65	%		9.29	%		8.76	%		8.62	%		8.49	%
Common equity tier 1 capital ratio		11.30	%		10.92	%		10.12	%		10.04	%		9.89	%
Tier 1 risk-based capital ratio		11.70	%		11.31	%		10.51	%		10.44	%		10.29	%
Total risk-based capital ratio		13.71	%		13.29	%		12.42	%		12.29	%		12.11	%
STOCK PERFORMANCE
Market value-Close	$	31.82		$	30.04		$	28.11		$	27.88		$	21.73
Book value	$	32.35		$	30.70		$	27.50		$	27.21		$	25.71
Tangible book value	$	26.88		$	25.23		$	22.03		$	21.73		$	20.23
(1) Adjusted continuing operations excludes significant non-routine transactions. See Note 7 - Non-GAAP Financials Measures in the Notes to the Consolidated Financials.
(2) See Note 7 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

Note 1 - Significant Non-Routine Transactions

Trustmark completed the following significant non-routine transactions during the second quarter of 2024:

• On May 31, 2024, Trustmark National Bank closed the sale of its wholly owned subsidiary, Fisher Brown Bottrell Insurance, Inc., (FBBI) to Marsh & McLennan Agency LLC, consistent with the terms as previously announced on April 23, 2024. Trustmark National Bank is a wholly owned subsidiary of Trustmark Corporation. Trustmark recognized a gain on the sale of $228.3 million ($171.2 million, net of taxes) in income from discontinued operations. The operations of FBBI are also included in discontinued operations for the current and prior periods.
• Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income in securities gains (losses), net. Trustmark purchased $1.378 billion of available for sale securities with an average yield of 4.85%.
• Trustmark sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at the time of selection totaling $56.2 million, which resulted in a loss of $13.4 million ($10.1 million, net of taxes). The portion of the loss related to credit totaled $8.6 million and was recorded as adjustments to charge-offs and the provision for credit losses. The noncredit-related portion of the loss totaled $4.8 million and was recorded to noninterest income in other, net.
• On April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for any and all outstanding shares of Visa Class B-1 common stock (Visa B-1 shares). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that are validly tendered and accepted for exchange by Visa. TNB tendered its 38.7 thousand Visa B-1 shares, which was accepted by Visa. In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TNB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share. The Visa C shares that were received by TNB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and recorded to noninterest income in other, net during the second quarter of 2024. During the third quarter of 2024, TNB sold all of the Visa C shares for approximately the same carrying value at June 30, 2024. The Visa B-2 shares were recorded at their nominal carrying value.

Note 2 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	202,638	$	172,955	$	372,424	$	372,368	$	363,476
U.S. Government agency obligations		19,335		—		5,594		5,792		6,780
Obligations of states and political subdivisions		—		—		—		—		4,642
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		25,798		23,489		22,232		23,135		22,881
Issued by FNMA and FHLMC		1,105,310		1,060,869		1,129,521		1,176,798		1,171,521
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		—		—		79,099		86,074		90,402
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		372,714		364,346		93,429		98,711		106,472
Total securities available for sale	$	1,725,795	$	1,621,659	$	1,702,299	$	1,762,878	$	1,766,174
SECURITIES HELD TO MATURITY
U.S. Treasury securities	$	29,648	$	29,455	$	29,261	$	29,068	$	28,872
Obligations of states and political subdivisions		—		—		340		340		341
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		17,773		17,998		18,387		13,005		13,090
Issued by FNMA and FHLMC		436,177		449,781		461,457		469,593		474,003
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		131,348		138,951		146,447		154,466		162,031
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		743,412		744,302		759,133		759,807		759,950
Total securities held to maturity	$	1,358,358	$	1,380,487	$	1,415,025	$	1,426,279	$	1,438,287

At September 30, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $49.3 million.

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Loans secured by real estate:
Construction, land development and other land loans	$	1,588,256		$	1,638,972		$	1,539,461		$	1,510,679		$	1,609,326
Secured by 1-4 family residential properties		2,895,006			2,878,295			2,891,481			2,904,715			2,893,606
Secured by nonfarm, nonresidential properties		3,582,552			3,598,647			3,543,235			3,489,434			3,569,671
Other real estate secured		1,475,798			1,344,968			1,384,610			1,312,551			1,218,499
Commercial and industrial loans		1,767,079			1,880,607			1,922,711			1,922,910			1,828,924
Consumer loans		149,436			153,316			156,430			161,725			161,940
State and other political subdivision loans		996,002			1,053,015			1,052,844			1,088,466			1,056,569
Other loans and leases		645,982			607,598			567,171			560,044			471,724
LHFI		13,100,111			13,155,418			13,057,943			12,950,524			12,810,259
ACL LHFI		(157,929	)		(154,685	)		(142,998	)		(139,367	)		(134,031	)
Net LHFI	$	12,942,182		$	13,000,733		$	12,914,945		$	12,811,157		$	12,676,228

The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region’s diversified mix of loans:

	September 30, 2024
LHFI - COMPOSITION BY REGION	Total		Alabama		Florida		Georgia		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,588,256	$	710,651	$	37,344	$	91,475	$	319,740	$	46,631	$	382,415
Secured by 1-4 family residential properties		2,895,006		153,482		61,195		—		2,560,518		83,812		35,999
Secured by nonfarm, nonresidential properties		3,582,552		1,036,006		217,973		31,530		1,539,462		130,662		626,919
Other real estate secured		1,475,798		663,949		1,676		—		392,700		6,734		410,739
Commercial and industrial loans		1,767,079		480,202		21,296		227,285		715,590		126,659		196,047
Consumer loans		149,436		21,365		7,013		—		93,469		15,858		11,731
State and other political subdivision loans		996,002		68,625		51,084		—		754,461		21,546		100,286
Other loans and leases		645,982		58,497		7,545		246,819		187,642		75,343		70,136
Loans	$	13,100,111	$	3,192,777	$	405,126	$	597,109	$	6,563,582	$	507,245	$	1,834,272
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	63,307	$	27,502	$	6,389	$	94	$	17,031	$	5,075	$	7,216
Development		110,649		56,110		814		—		22,290		11,624		19,811
Unimproved land		104,664		19,611		11,073		—		24,471		10,334		39,175
1-4 family construction		336,167		166,524		9,446		10,849		93,326		19,375		36,647
Other construction		973,469		440,904		9,622		80,532		162,622		223		279,566
Construction, land development and other land loans	$	1,588,256	$	710,651	$	37,344	$	91,475	$	319,740	$	46,631	$	382,415

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

Note 3 – Loan Composition (continued)

	September 30, 2024
	Total		Alabama		Florida		Georgia		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	315,491	$	107,378	$	22,723	$	—	$	90,634	$	16,686	$	78,070
Office		261,461		93,106		19,243		—		94,694		1,356		53,062
Hotel/motel		293,191		146,399		44,719		—		77,521		24,552		—
Mini-storage		142,671		37,227		1,513		—		91,490		627		11,814
Industrial		501,354		111,559		18,191		31,530		197,056		2,863		140,155
Health care		132,564		104,276		676		—		25,053		326		2,233
Convenience stores		23,905		2,733		406		—		12,806		218		7,742
Nursing homes/senior living		518,548		225,893		—		—		192,350		4,367		95,938
Other		107,798		28,608		8,472		—		54,468		7,725		8,525
Total non-owner occupied loans		2,296,983		857,179		115,943		31,530		836,072		58,720		397,539
Owner-occupied:
Office		151,558		48,134		34,417		—		39,883		10,964		18,160
Churches		52,167		12,018		3,930		—		30,456		3,353		2,410
Industrial warehouses		165,033		11,393		4,685		—		48,050		14,534		86,371
Health care		121,272		10,444		8,337		—		83,182		2,215		17,094
Convenience stores		129,000		11,273		27,122		—		54,959		—		35,646
Retail		71,290		8,662		13,158		—		32,947		8,230		8,293
Restaurants		52,968		3,634		2,809		—		25,841		16,402		4,282
Auto dealerships		41,606		4,514		180		—		21,571		15,341		—
Nursing homes/senior living		380,774		57,076		—		—		297,634		—		26,064
Other		119,901		11,679		7,392		—		68,867		903		31,060
Total owner-occupied loans		1,285,569		178,827		102,030		—		703,390		71,942		229,380
Loans secured by nonfarm, nonresidential properties	$	3,582,552	$	1,036,006	$	217,973	$	31,530	$	1,539,462	$	130,662	$	626,919

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

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

	Quarter Ended															Nine Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Securities – taxable		3.44	%		2.19	%		1.88	%		1.85	%		1.89	%		2.48	%		1.87	%
Securities – nontaxable		—			3.59	%		4.73	%		3.81	%		4.05	%		4.45	%		4.09	%
Securities – total		3.44	%		2.19	%		1.88	%		1.85	%		1.89	%		2.48	%		1.87	%
LHFI & LHFS		6.55	%		6.54	%		6.40	%		6.41	%		6.34	%		6.50	%		6.07	%
Fed funds sold & reverse repurchases		5.48	%		7.31	%		3.53	%		6.56	%		5.17	%		5.45	%		5.34	%
Other earning assets		5.43	%		5.51	%		5.71	%		5.87	%		5.01	%		5.55	%		4.87	%
Total earning assets		5.96	%		5.67	%		5.49	%		5.48	%		5.38	%		5.71	%		5.14	%
Interest-bearing deposits		2.81	%		2.75	%		2.74	%		2.67	%		2.39	%		2.77	%		1.97	%
Fed funds purchased & repurchases		5.15	%		5.24	%		5.25	%		5.26	%		5.14	%		5.22	%		4.87	%
Other borrowings		4.53	%		4.91	%		4.78	%		5.08	%		5.32	%		4.75	%		5.10	%
Total interest-bearing liabilities		2.94	%		2.95	%		2.92	%		2.89	%		2.72	%		2.94	%		2.38	%
Total Deposits		2.22	%		2.18	%		2.18	%		2.10	%		1.84	%		2.20	%		1.49	%
Net interest margin		3.69	%		3.38	%		3.21	%		3.25	%		3.29	%		3.43	%		3.34	%

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

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

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets.

The net interest margin increased 31 basis points when compared to the second quarter of 2024, totaling 3.69% for the third quarter of 2024, primarily due to increased yields on the securities portfolio, while the loans held for investment and held for sale portfolio remained relatively flat, offset by the increase in the cost of interest-bearing deposits.

Note 5 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $2.5 million during the third quarter of 2024.

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

	Quarter Ended															Nine Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Mortgage servicing income, net	$	7,127		$	6,993		$	6,934		$	6,731		$	6,916		$	21,054		$	20,465
Change in fair value-MSR from runoff		(3,154	)		(3,447	)		(1,926	)		(2,972	)		(3,203	)		(8,527	)		(7,058	)
Gain on sales of loans, net		4,648			5,151			5,009			3,913			3,748			14,808			11,432
Mortgage banking income before hedge
ineffectiveness		8,621			8,697			10,017			7,672			7,461			27,335			24,839
Change in fair value-MSR from market changes		(10,406	)		(1,626	)		5,123			(10,224	)		6,809			(6,909	)		8,735
Change in fair value of derivatives		7,904			(2,867	)		(6,225	)		8,071			(7,812	)		(1,188	)		(12,877	)
Net positive (negative) hedge ineffectiveness		(2,502	)		(4,493	)		(1,102	)		(2,153	)		(1,003	)		(8,097	)		(4,142	)
Mortgage banking, net	$	6,119		$	4,204		$	8,915		$	5,519		$	6,458		$	19,238		$	20,697

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

Note 6 – Other Noninterest Income and Expense

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

	Quarter Ended															Nine Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Partnership amortization for tax credit purposes	$	(1,977	)	$	(1,824	)	$	(1,834	)	$	(2,013	)	$	(1,995	)	$	(5,635	)	$	(5,975	)
Increase in life insurance cash surrender value		1,883			1,860			1,844			1,825			1,784			5,587			5,193
Loss on sale of 1-4 family mortgage loans		—			(4,798	)		—			—			—			(4,798	)		—
Visa C shares fair value adjustment		—			8,056			—			—			—			8,056			—
Other miscellaneous income		3,046			4,167			3,092			2,765			2,610			10,305			8,436
Total other, net	$	2,952		$	7,461		$	3,102		$	2,577		$	2,399		$	13,515		$	7,654

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

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

	Quarter Ended												Nine Months Ended
	9/30/2024		6/30/2024		3/31/2024		12/31/2023			9/30/2023			9/30/2024		9/30/2023
Loan expense	$	2,824	$	2,880	$	2,955	$	2,380		$	3,130		$	8,659	$	8,734
Amortization of intangibles		28		27		28		33			34			83		257
FDIC assessment expense		5,071		4,816		4,509		4,844			3,765			14,396		8,685
Other real estate expense, net		2,452		327		671		(184	)		(40	)		3,450		303
Other miscellaneous expense		6,941		7,189		7,988		8,717			8,150			22,118		25,001
Total other expense	$	17,316	$	15,239	$	16,151	$	15,790		$	15,039		$	48,706	$	42,980

Note 7 – Non-GAAP Financial Measures

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

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands except per share data)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

		Quarter Ended															Nine Months Ended
		9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,923,248		$	1,727,489		$	1,676,521		$	1,592,493		$	1,582,885		$	1,776,291		$	1,562,551
Less: Goodwill			(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)
Identifiable intangible assets			(168	)		(195	)		(224	)		(253	)		(287	)		(196	)		(349	)
Total average tangible equity		$	1,588,475		$	1,392,689		$	1,341,692		$	1,257,635		$	1,247,993		$	1,441,490		$	1,227,597
PERIOD END BALANCES
Total shareholders' equity		$	1,980,096		$	1,879,141		$	1,682,599		$	1,661,847		$	1,570,351
Less: Goodwill			(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)
Identifiable intangible assets			(153	)		(181	)		(208	)		(236	)		(269	)
Total tangible equity	(a)	$	1,645,338		$	1,544,355		$	1,347,786		$	1,327,006		$	1,235,477
TANGIBLE ASSETS
Total assets		$	18,480,372		$	18,452,487		$	18,376,612		$	18,722,189		$	18,390,839
Less: Goodwill			(334,605	)		(334,605	)		(334,605	)		(334,605	)		(334,605	)
Identifiable intangible assets			(153	)		(181	)		(208	)		(236	)		(269	)
Total tangible assets	(b)	$	18,145,614		$	18,117,701		$	18,041,799		$	18,387,348		$	18,055,965
Risk-weighted assets	(c)	$	15,004,024		$	15,165,038		$	15,257,385		$	15,153,263		$	15,143,531
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing operations		$	51,330		$	(100,605	)	$	38,173		$	33,888		$	30,553		$	(11,102	)	$	119,402
Plus: Intangible amortization net of tax from
continuing operations			21			20			20			25			25			61			192
Net income (loss) adjusted for intangible amortization		$	51,351		$	(100,585	)	$	38,193		$	33,913		$	30,578		$	(11,041	)	$	119,594
Period end common shares outstanding	(d)		61,206,606			61,205,969			61,178,366			61,071,173			61,070,095
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity from
continuing operations (1)			12.86	%		-29.05	%		11.45	%		10.70	%		9.72	%		-1.02	%		13.03	%
Tangible equity/tangible assets	(a)/(b)		9.07	%		8.52	%		7.47	%		7.22	%		6.84	%
Tangible equity/risk-weighted assets	(a)/(c)		10.97	%		10.18	%		8.83	%		8.76	%		8.16	%
Tangible book value	(a)/(d)*1,000	$	26.88		$	25.23		$	22.03		$	21.73		$	20.23
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,980,096		$	1,879,141		$	1,682,599		$	1,661,847		$	1,570,351
CECL transition adjustment			6,500			6,500			6,500			13,000			13,000
AOCI-related adjustments			29,045			91,557			227,154			219,723			287,888
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)			(320,757	)		(320,758	)		(370,205	)		(370,212	)		(370,219	)
Other adjustments and deductions
for CET1 (2)			(115	)		(847	)		(2,588	)		(2,693	)		(2,803	)
CET1 capital	(e)		1,694,769			1,655,593			1,543,460			1,521,665			1,498,217
Additional tier 1 capital instruments
plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,754,769		$	1,715,593		$	1,603,460		$	1,581,665		$	1,558,217
Common equity tier 1 capital ratio	(e)/(c)		11.30	%		10.92	%		10.12	%		10.04	%		9.89	%
(1) Calculation = ((net income (loss) adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.
(2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands except per share data)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

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

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

		Quarter Ended													Nine Months Ended
		9/30/2024		6/30/2024			3/31/2024		12/31/2023			9/30/2023			9/30/2024			9/30/2023
Net interest income (GAAP)	(a)	$	154,714	$	141,029		$	132,830	$	136,742		$	138,637		$	428,573		$	416,136
Noninterest income (loss) (GAAP)			37,562		(141,286	)		39,355		36,605			36,921			(64,369	)		111,828
Add: Loss on sale of 1-4 family mortgage loans (incl in Other, net)			—		4,798			—		—			—			4,798			—
Visa C shares fair value adjustment (incl in Other, net)			—		(8,056	)		—		—			—			(8,056	)		—
Securities (gains) losses, net			—		182,792			—		—			—			182,792			—
Noninterest income from adjusted continuing
operations (Non-GAAP)	(b)	$	37,562	$	38,248		$	39,355	$	36,605		$	36,921		$	115,165		$	111,828
Adjusted pre-provision revenue	(a)+(b)=(c)	$	192,276	$	179,277		$	172,185	$	173,347		$	175,558		$	543,738		$	527,964
Noninterest expense (GAAP)		$	123,270	$	118,326		$	119,664	$	126,195		$	130,291		$	361,260		$	369,501
Less: Reduction in force expense (incl in Salaries and employee benefits)			—		—			—		(1,406	)		—			—			—
Litigation settlement expense			—		—			—		—			(6,500	)		—			(6,500	)
Noninterest expense from adjusted continuing
operations (Non-GAAP)	(d)	$	123,270	$	118,326		$	119,664	$	124,789		$	123,791		$	361,260		$	363,001
PPNR (Non-GAAP)	(c)-(d)	$	69,006	$	60,951		$	52,521	$	48,558		$	51,767		$	182,478		$	164,963

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

The following table presents adjustments to net income (loss) from continuing operations and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:

	Quarter Ended															Nine Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Net income (loss) (GAAP) from continuing operations	$	51,330		$	(100,605	)	$	38,173		$	33,888		$	30,553		$	(11,102	)	$	119,402
Significant non-routine transactions (net of taxes):
PCL, LHFI sale of nonperforming 1-4 family		—			6,475			—			—			—			6,475			—
Loss on sale of 1-4 family mortgage loans		—			3,598			—			—			—			3,598			—
Visa C shares fair value adjustment		—			(6,042	)		—			—			—			(6,042	)		—
Securities gains (losses), net		—			137,094			—			—			—			137,094			—
Reduction in force expense		—			—			—			1,055			—			—			—
Litigation settlement expense		—			—			—			—			4,875			—			4,875
Net income adjusted for significant non-routine
transactions (Non-GAAP)	$	51,330		$	40,520		$	38,173		$	34,943		$	35,428		$	130,023		$	124,277
Diluted EPS from adjusted continuing operations	$	0.84		$	0.66		$	0.62		$	0.57		$	0.58		$	2.12		$	2.03
FINANCIAL RATIOS - REPORTED (GAAP)
Return on average equity from continuing operations		10.62	%		-23.42	%		9.16	%		8.44	%		7.66	%		-0.83	%		10.22	%
Return on average tangible equity from continuing operations		12.86	%		-29.05	%		11.45	%		10.70	%		9.72	%		-1.02	%		13.03	%
Return on average assets from continuing operations		1.10	%		-2.16	%		0.83	%		0.72	%		0.65	%		-0.08	%		0.86	%
FINANCIAL RATIOS - ADJUSTED (NON-GAAP)
Return on average equity from adjusted continuing operations		10.62	%		9.06	%		9.16	%		8.68	%		8.87	%		9.40	%		10.63	%
Return on average tangible equity from adjusted
continuing operations		12.86	%		11.14	%		11.45	%		10.98	%		11.25	%		11.49	%		13.55	%
Return on average assets from adjusted continuing operations		1.10	%		0.87	%		0.83	%		0.74	%		0.75	%		0.93	%		0.89	%

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2024

($ in thousands)

(unaudited)

Note 7 – Non-GAAP Financial Measures (continued)

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

		Quarter Ended															Nine Months Ended
		9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023			9/30/2024			9/30/2023
Total noninterest expense (GAAP)		$	123,270		$	118,326		$	119,664		$	126,195		$	130,291		$	361,260		$	369,501
Less: Other real estate expense, net			(2,452	)		(327	)		(671	)		184			40			(3,450	)		(303	)
Amortization of intangibles			(28	)		(27	)		(28	)		(33	)		(34	)		(83	)		(257	)
Charitable contributions resulting in
state tax credits			(300	)		(300	)		(300	)		(325	)		(325	)		(900	)		(975	)
Reduction in force expense			—			—			—			(1,406	)		—			—			—
Litigation settlement expense			—			—			—			—			(6,500	)		—			(6,500	)
Adjusted noninterest expense (Non-GAAP)	(c)	$	120,490		$	117,672		$	118,665		$	124,615		$	123,472		$	356,827		$	361,466
Net interest income (GAAP)		$	154,714		$	141,029		$	132,830		$	136,742		$	138,637		$	428,573		$	416,136
Add: Tax equivalent adjustment			3,305			3,304			3,365			3,306			3,299			9,974			10,159
Net interest income-FTE (Non-GAAP)	(a)	$	158,019		$	144,333		$	136,195		$	140,048		$	141,936		$	438,547		$	426,295
Noninterest income (loss) (GAAP)		$	37,562		$	(141,286	)	$	39,355		$	36,605		$	36,921		$	(64,369	)	$	111,828
Add: Partnership amortization for tax credit purposes			1,977			1,824			1,834			2,013			1,995			5,635			5,975
Loss on sale of 1-4 family mortgage loans			—			4,798			—			—			—			4,798			—
Securities (gains) losses, net			—			182,792			—			(39	)		—			182,792			—
Less: Visa C shares fair value adjustment			—			(8,056	)		—			—			—			(8,056	)		—
Adjusted noninterest income (Non-GAAP)	(b)	$	39,539		$	40,072		$	41,189		$	38,579		$	38,916		$	120,800		$	117,803
Adjusted revenue (Non-GAAP)	(a)+(b)	$	197,558		$	184,405		$	177,384		$	178,627		$	180,852		$	559,347		$	544,098
Efficiency ratio (Non-GAAP)	(c)/((a)+(b))		60.99	%		63.81	%		66.90	%		69.76	%		68.27	%		63.79	%		66.43	%