Trustmark Corporation Announces Second Quarter 2022 Financial Results

Performance Reflects Strong Loan Growth, Solid Credit Quality and Expanding Net Interest Margin

JACKSON, Miss.--(BUSINESS WIRE)--Trustmark Corporation (NASDAQGS: TRMK) reported net income of $34.3 million in the second quarter of 2022, representing diluted earnings per share of $0.56. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2022, to shareholders of record on September 1, 2022.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/52791465/en

Second Quarter Highlights

• Loans held for investment (HFI) increased $547.7 million, or 5.3%, from the prior quarter
• Deposits totaled $14.8 billion, with noninterest-bearing deposits representing 30.5% of total deposits
• Total revenue expanded 8.1% from the prior quarter to $165.9 million
• Net interest income (FTE) increased 12.9% from the prior quarter to $115.6 million, resulting in a 32 basis point expansion in the net interest margin to 2.90%
• Noninterest income totaled $53.3 million, representing 32.1% of total revenue
• Credit quality remained solid; recoveries exceeded charge-offs and nonperforming assets declined 3.7% linked-quarter

Duane A. Dewey, President and CEO, stated, “Our company produced strong second quarter results with significant loan growth, expansion of the net interest margin, consistent performance from our fee businesses and solid credit quality. Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner. Our continued implementation of enhanced technology, coupled with a comprehensive program to improve efficiency, enhances Trustmark’s ability to grow and serve customers and build long-term value for our shareholders.”

Balance Sheet Management

• Loans HFI totaled $10.9 billion, up 5.3% from the prior quarter and 7.8% year-over-year
• Investment securities totaled $3.8 billion, up 4.3% from the prior quarter and 26.8% year-over-year
• Deposits totaled $14.8 billion, down 2.3% from the prior quarter and up 0.9% year-over-year
• Maintained strong capital position with CET1 ratio of 11.01% and total risk-based capital ratio of 13.26%

Loans HFI totaled $10.9 billion at June 30, 2022, reflecting an increase of $547.7 million, or 5.3%, linked-quarter and $792.0 million, or 7.8%, year-over-year. Linked-quarter growth was broad-based, with increases in virtually all categories with the exception of loans secured by other real estate and state and other political subdivision loans. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.8 billion at June 30, 2022, down $343.1 million, or 2.3%, from the prior quarter and up $138.1 million, or 0.9%, year-over-year. The linked-quarter change was principally attributable to a decline in public funds. Trustmark continues to maintain a strong liquidity position as loans HFI represented 74.1% of total deposits at June 30, 2022. Noninterest-bearing deposits represented 30.5% of total deposits at the end of the second quarter. Interest-bearing deposit costs totaled 0.11% in the second quarter, unchanged from the prior quarter. The total cost of interest-bearing liabilities was 0.17% in the second quarter of 2022, an increase of 1 basis point from the prior quarter.

During the second quarter, Trustmark repurchased $7.5 million, or approximately 263 thousand of its common shares. During the first six months of 2022, Trustmark repurchased $16.6 million, or approximately 542 thousand of its common shares. At June 30, 2022, Trustmark had $83.4 million in remaining authority under its existing stock repurchase program, which expires on December 31, 2022. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At June 30, 2022, Trustmark’s tangible equity-to-tangible assets ratio was 7.23% while its total risk-based capital ratio was 13.26%. Tangible book value per share was $19.58 at June 30, 2022, down 3.2% from the prior quarter reflecting a decline in accumulated other comprehensive income due to mark-to-market adjustments on securities available for sale resulting from the increase in market interest rates during the second quarter.

Credit Quality

• Allowance for credit losses (ACL) represented 475% of nonaccrual loans, excluding individually evaluated loans at June 30, 2022
• Recoveries exceeded charge-offs by $1.7 million in the second quarter
• Other real estate totaled $3.0 million at June 30, 2022

Nonaccrual loans totaled $62.1 million at June 30, 2022, down $2.3 million from the prior quarter and up $10.6 million year-over-year. Other real estate totaled $3.0 million, reflecting a $153 thousand decrease from the prior quarter and decline of $6.4 million year-over-year. Collectively, nonperforming assets totaled $65.1 million at June 30, 2022, reflecting a linked-quarter decrease of $2.5 million and year-over-year increase of $4.2 million.

The provision for credit losses for loans HFI was $2.7 million in the second quarter. This provisioning was primarily driven by reserves related to loan growth and the nature and volume of the portfolio offset by improvements in macroeconomic forecasts. The provision for credit losses for off-balance sheet credit exposures was a negative $1.6 million in the second quarter. Off-balance sheet negative provision expense was primarily driven by improvements in macroeconomic forecasts. Collectively, the provision for credit losses totaled $1.1 million in the second quarter compared to a negative $2.0 million in the prior quarter and an expense of $537 thousand in the second quarter of 2021.

Allocation of Trustmark’s $103.1 million allowance for credit losses on loans HFI represented 0.88% of commercial loans and 1.14% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 0.94% at June 30, 2022. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Total revenue increased $12.5 million, or 8.1%, linked-quarter
• Net interest income (FTE) expanded $13.2 million, or 12.9%, linked-quarter
• Noninterest income totaled $53.3 million, representing 32.1% of total revenue in the second quarter

Revenue in the second quarter totaled $165.9 million, an increase of $12.5 million, or 8.1%, from the prior quarter and a decrease of $9.9 million, or 5.6%, from the same quarter in the prior year. The linked-quarter increase reflected higher net interest income while the decline in revenue year-over-year was principally due to the reduction in interest and fees on Paycheck Protection Program (PPP) loans as well as the decline in mortgage banking revenue from historically high levels.

Net interest income (FTE) in the second quarter totaled $115.6 million, resulting in a net interest margin of 2.90%, up 32 basis points from the prior quarter. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 3.06% during the second quarter, an increase of 18 basis points when compared to the prior quarter. The expansion of the net interest margin excluding PPP loans and the Federal Reserve Bank balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio which resulted from the higher interest rate environment.

Noninterest income in the second quarter totaled $53.3 million, a decrease of $862 thousand from the prior quarter and $3.2 million year-over-year. The linked quarter decline was attributable to lower mortgage banking and other, net revenue, which were offset by increased bank card and other fees and service charges on deposit accounts. Mortgage loan production in the second quarter totaled $681.4 million, up 25.2% from the prior quarter and down 7.5% year-over-year. Mortgage banking revenue totaled $8.1 million in the second quarter, a decrease of $1.7 million from the prior quarter and $9.2 million year-over-year. The linked-quarter decline was principally attributable to changes in the mortgage servicing net hedge ineffectiveness.

Wealth management revenue totaled $9.1 million in the second quarter, an increase of $48 thousand, from the prior quarter and $156 thousand, year-over-year. The linked-quarter increase was attributable to increased trust and investment revenue offset by lower brokerage revenue. Insurance revenue totaled $13.7 million in the second quarter, down 2.7%, or $387 thousand, from the prior quarter and up 12.2%, or $1.5 million, year-over-year. Service charges on deposit accounts increased $775 thousand, or 8.2%, from the prior quarter and $2.6 million, or 34.3%, year-over-year. Bank card and other fees increased $1.7 million from the prior quarter and $1.9 million year-over-year.

Noninterest Expense

• Noninterest expense totaled $123.8 million in the second quarter, up $2.2 million, or 1.8%, from the prior quarter
• Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses and charitable contributions resulting in state tax credits, increased $1.8 million, or 1.5%, from the prior quarter; please refer to the Consolidated Financial Information, Note 6 – Non-GAAP Financial Measures

Noninterest expense in the second quarter was $123.8 million, up $2.2 million, or 1.8%, from the prior quarter. Salaries and employee benefits increased $2.1 million linked-quarter due primarily to commissions and annual merit increases. Services and fees were relatively unchanged linked-quarter while net occupancy expenses were down 2.6%.

FIT2GROW

“During the second quarter, we announced FIT2GROW, a comprehensive program of Focus, Innovation and Transformation designed to enhance Trustmark’s ability to grow and serve customers. As part of this program, we are focusing our community bank efforts on commercial, small business, and consumer lines of business. This will provide expertise and focus while also generating profitable revenue growth. We have opened a new Atlanta, Georgia LPO to focus on our institutional businesses, including Commercial Real Estate, Residential Real Estate, Corporate Banking and Specialty Banking. We have added seasoned professionals to our team to carry out our strategy in the southeast. Within our Specialty Banking unit based in Atlanta, plans are underway to establish an Equipment Finance line of business to focus on national, middle to large ticket business. We look forward to adding this product suite to our company,” said Dewey.

“Innovation is also a key component of FIT2GROW. In recent years, investments in state-of-the-art technology were made in Trustmark’s insurance, wealth management and mortgage banking areas as well as in human resources and accounting systems. We also made significant upgrades to our mobile banking platform, ITM network and digital marketing programs. Collectively, these investments have positioned Trustmark for growth, expansion and efficiency. More recently, we have been working toward the implementation of a new core banking system for consumer and commercial loans, deposits, and customer information. This implementation is a multi-year project, the next phase of which will occur in the third quarter of 2022. We have accelerated efforts to optimize our branch network, reflecting changing customer preferences and the continued migration to mobile and digital channels as announced in the first quarter. We will continue to pursue opportunities to redesign workflows and restructure the organization. This will further leverage the investments in technology, will broaden our reach, enhance customer experiences, and improve efficiency while building long-term value for our shareholders,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 27, 2022, 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, August 10, 2022, in archived format at the same web address or by calling [phone], passcode 1899156.

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

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

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

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2022			3/31/2022			6/30/2021			$ Change			% Change		$ Change			% Change
Securities AFS-taxable (1)	$	3,094,364		$	3,245,502		$	2,339,662		$	(151,138	)	-4.7	%	$	754,702		32.3	%
Securities AFS-nontaxable		5,110			5,127			5,174			(17	)	-0.3	%		(64	)	-1.2	%
Securities HTM-taxable (1)		811,599			410,851			441,688			400,748		97.5	%		369,911		83.7	%
Securities HTM-nontaxable		5,630			7,327			10,958			(1,697	)	-23.2	%		(5,328	)	-48.6	%
Total securities		3,916,703			3,668,807			2,797,482			247,896		6.8	%		1,119,221		40.0	%
Paycheck protection program loans (PPP)		17,746			29,009			648,222			(11,263	)	-38.8	%		(630,476	)	-97.3	%
Loans (includes loans held for sale)		10,910,178			10,550,712			10,315,927			359,466		3.4	%		594,251		5.8	%
Fed funds sold and reverse repurchases		110			56			55			54		96.4	%		55		100.0	%
Other earning assets		1,139,312			1,811,713			1,750,385			(672,401	)	-37.1	%		(611,073	)	-34.9	%
Total earning assets		15,984,049			16,060,297			15,512,071			(76,248	)	-0.5	%		471,978		3.0	%
Allowance for credit losses (ACL), loans held for investment (LHFI)		(99,106	)		(99,390	)		(112,346	)		284		-0.3	%		13,240		-11.8	%
Other assets		1,513,127			1,550,848			1,622,388			(37,721	)	-2.4	%		(109,261	)	-6.7	%
Total assets	$	17,398,070		$	17,511,755		$	17,022,113		$	(113,685	)	-0.6	%	$	375,957		2.2	%
Interest-bearing demand deposits	$	4,578,235		$	4,429,056		$	4,056,910		$	149,179		3.4	%	$	521,325		12.9	%
Savings deposits		4,638,849			4,791,104			4,627,180			(152,255	)	-3.2	%		11,669		0.3	%
Time deposits		1,159,065			1,193,435			1,301,896			(34,370	)	-2.9	%		(142,831	)	-11.0	%
Total interest-bearing deposits		10,376,149			10,413,595			9,985,986			(37,446	)	-0.4	%		390,163		3.9	%
Fed funds purchased and repurchases		118,753			212,006			174,620			(93,253	)	-44.0	%		(55,867	)	-32.0	%
Other borrowings		80,283			91,090			132,199			(10,807	)	-11.9	%		(51,916	)	-39.3	%
Subordinated notes		123,116			123,061			122,897			55		0.0	%		219		0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—		0.0	%		—		0.0	%
Total interest-bearing liabilities		10,760,157			10,901,608			10,477,558			(141,451	)	-1.3	%		282,599		2.7	%
Noninterest-bearing deposits		4,590,338			4,601,108			4,512,268			(10,770	)	-0.2	%		78,070		1.7	%
Other liabilities		439,266			295,287			251,582			143,979		48.8	%		187,684		74.6	%
Total liabilities		15,789,761			15,798,003			15,241,408			(8,242	)	-0.1	%		548,353		3.6	%
Shareholders' equity		1,608,309			1,713,752			1,780,705			(105,443	)	-6.2	%		(172,396	)	-9.7	%
Total liabilities and equity	$	17,398,070		$	17,511,755		$	17,022,113		$	(113,685	)	-0.6	%	$	375,957		2.2	%

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
										Linked Quarter					Year over Year
PERIOD END BALANCES	6/30/2022			3/31/2022			6/30/2021			$ Change			% Change		$ Change			% Change
Cash and due from banks	$	742,461		$	1,917,564		$	2,267,224		$	(1,175,103	)	-61.3	%	$	(1,524,763	)	-67.3	%
Securities available for sale (1)		2,644,364			3,018,246			2,548,739			(373,882	)	-12.4	%		95,625		3.8	%
Securities held to maturity (1)		1,137,754			607,598			433,012			530,156		87.3	%		704,742		n/m
PPP loans		12,549			18,579			166,119			(6,030	)	-32.5	%		(153,570	)	-92.4	%
Loans held for sale (LHFS)		190,186			222,538			332,132			(32,352	)	-14.5	%		(141,946	)	-42.7	%
Loans held for investment (LHFI)		10,944,840			10,397,129			10,152,869			547,711		5.3	%		791,971		7.8	%
ACL LHFI		(103,140	)		(98,734	)		(104,032	)		(4,406	)	-4.5	%		892		0.9	%
Net LHFI		10,841,700			10,298,395			10,048,837			543,305		5.3	%		792,863		7.9	%
Premises and equipment, net		207,914			207,301			200,970			613		0.3	%		6,944		3.5	%
Mortgage servicing rights		121,014			111,050			80,764			9,964		9.0	%		40,250		49.8	%
Goodwill		384,237			384,237			384,237			—		0.0	%		—		0.0	%
Identifiable intangible assets		4,264			4,591			6,170			(327	)	-7.1	%		(1,906	)	-30.9	%
Other real estate		3,034			3,187			9,439			(153	)	-4.8	%		(6,405	)	-67.9	%
Operating lease right-of-use assets		34,684			34,048			33,201			636		1.9	%		1,483		4.5	%
Other assets		627,349			614,217			587,288			13,132		2.1	%		40,061		6.8	%
Total assets	$	16,951,510		$	17,441,551		$	17,098,132		$	(490,041	)	-2.8	%	$	(146,622	)	-0.9	%
Deposits:
Noninterest-bearing	$	4,509,472		$	4,739,102		$	4,446,991		$	(229,630	)	-4.8	%	$	62,481		1.4	%
Interest-bearing		10,260,696			10,374,190			10,185,093			(113,494	)	-1.1	%		75,603		0.7	%
Total deposits		14,770,168			15,113,292			14,632,084			(343,124	)	-2.3	%		138,084		0.9	%
Fed funds purchased and repurchases		70,157			170,499			157,176			(100,342	)	-58.9	%		(87,019	)	-55.4	%
Other borrowings		72,553			84,644			117,223			(12,091	)	-14.3	%		(44,670	)	-38.1	%
Subordinated notes		123,152			123,097			122,932			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		32,949			34,517			33,733			(1,568	)	-4.5	%		(784	)	-2.3	%
Operating lease liabilities		37,108			35,912			34,959			1,196		3.3	%		2,149		6.1	%
Other liabilities		196,871			186,352			158,860			10,519		5.6	%		38,011		23.9	%
Total liabilities		15,364,814			15,810,169			15,318,823			(445,355	)	-2.8	%		45,991		0.3	%
Common stock		12,752			12,806			13,079			(54	)	-0.4	%		(327	)	-2.5	%
Capital surplus		160,876			167,094			210,420			(6,218	)	-3.7	%		(49,544	)	-23.5	%
Retained earnings		1,620,210			1,600,138			1,566,451			20,072		1.3	%		53,759		3.4	%
Accumulated other comprehensive income (loss), net of tax		(207,142	)		(148,656	)		(10,641	)		(58,486	)	-39.3	%		(196,501	)	n/m
Total shareholders' equity		1,586,696			1,631,382			1,779,309			(44,686	)	-2.7	%		(192,613	)	-10.8	%
Total liabilities and equity	$	16,951,510		$	17,441,551		$	17,098,132		$	(490,041	)	-2.8	%	$	(146,622	)	-0.9	%

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands except per share data)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
INCOME STATEMENTS	6/30/2022			3/31/2022			6/30/2021			$ Change			% Change		$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	103,033		$	93,252		$	93,698		$	9,781		10.5	%	$	9,335		10.0	%
Interest and fees on PPP loans		184			168			25,555			16		9.5	%		(25,371	)	-99.3	%
Interest on securities-taxable		14,561			12,357			8,991			2,204		17.8	%		5,570		62.0	%
Interest on securities-tax exempt-FTE		107			122			149			(15	)	-12.3	%		(42	)	-28.2	%
Interest on fed funds sold and reverse repurchases		1			—			—			1		n/m			1		n/m
Other interest income		2,214			817			489			1,397		n/m			1,725		n/m
Total interest income-FTE		120,100			106,716			128,882			13,384		12.5	%		(8,782	)	-6.8	%
Interest on deposits		2,774			2,760			4,630			14		0.5	%		(1,856	)	-40.1	%
Interest on fed funds purchased and repurchases		70			70			59			—		0.0	%		11		18.6	%
Other interest expense		1,664			1,539			1,813			125		8.1	%		(149	)	-8.2	%
Total interest expense		4,508			4,369			6,502			139		3.2	%		(1,994	)	-30.7	%
Net interest income-FTE		115,592			102,347			122,380			13,245		12.9	%		(6,788	)	-5.5	%
Provision for credit losses, LHFI		2,716			(860	)		(3,991	)		3,576		n/m			6,707		n/m
Provision for credit losses, off-balance sheet credit exposures		(1,568	)		(1,106	)		4,528			(462	)	-41.8	%		(6,096	)	n/m
Net interest income after provision-FTE		114,444			104,313			121,843			10,131		9.7	%		(7,399	)	-6.1	%
Service charges on deposit accounts		10,226			9,451			7,613			775		8.2	%		2,613		34.3	%
Bank card and other fees		10,167			8,442			8,301			1,725		20.4	%		1,866		22.5	%
Mortgage banking, net		8,149			9,873			17,333			(1,724	)	-17.5	%		(9,184	)	-53.0	%
Insurance commissions		13,702			14,089			12,217			(387	)	-2.7	%		1,485		12.2	%
Wealth management		9,102			9,054			8,946			48		0.5	%		156		1.7	%
Other, net		1,907			3,206			2,001			(1,299	)	-40.5	%		(94	)	-4.7	%
Total noninterest income		53,253			54,115			56,411			(862	)	-1.6	%		(3,158	)	-5.6	%
Salaries and employee benefits		71,679			69,585			70,115			2,094		3.0	%		1,564		2.2	%
Services and fees		24,538			24,453			21,769			85		0.3	%		2,769		12.7	%
Net occupancy-premises		6,892			7,079			6,578			(187	)	-2.6	%		314		4.8	%
Equipment expense		6,047			6,061			5,567			(14	)	-0.2	%		480		8.6	%
Other expense		14,611			14,341			14,650			270		1.9	%		(39	)	-0.3	%
Total noninterest expense		123,767			121,519			118,679			2,248		1.8	%		5,088		4.3	%
Income before income taxes and tax eq adj		43,930			36,909			59,575			7,021		19.0	%		(15,645	)	-26.3	%
Tax equivalent adjustment		2,916			3,003			2,957			(87	)	-2.9	%		(41	)	-1.4	%
Income before income taxes		41,014			33,906			56,618			7,108		21.0	%		(15,604	)	-27.6	%
Income taxes		6,730			4,695			8,637			2,035		43.3	%		(1,907	)	-22.1	%
Net income	$	34,284		$	29,211		$	47,981		$	5,073		17.4	%	$	(13,697	)	-28.5	%
Per share data
Earnings per share - basic	$	0.56		$	0.47		$	0.76		$	0.09		19.1	%	$	(0.20	)	-26.3	%
Earnings per share - diluted	$	0.56		$	0.47		$	0.76		$	0.09		19.1	%	$	(0.20	)	-26.3	%
Dividends per share	$	0.23		$	0.23		$	0.23			—		0.0	%		—		0.0	%
Weighted average shares outstanding
Basic		61,378,226			61,514,395			63,214,593
Diluted		61,546,285			61,709,797			63,409,683
Period end shares outstanding		61,201,123			61,463,392			62,773,226

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
	Quarter Ended									Linked Quarter					Year over Year
NONPERFORMING ASSETS (1)	6/30/2022			3/31/2022			6/30/2021			$ Change			% Change		$ Change			% Change
Nonaccrual LHFI
Alabama	$	2,698		$	7,506		$	8,952		$	(4,808	)	-64.1	%	$	(6,254	)	-69.9	%
Florida		233			310			467			(77	)	-24.8	%		(234	)	-50.1	%
Mississippi (2)		23,039			21,318			23,422			1,721		8.1	%		(383	)	-1.6	%
Tennessee (3)		9,500			9,266			10,751			234		2.5	%		(1,251	)	-11.6	%
Texas		26,582			25,999			7,856			583		2.2	%		18,726		n/m
Total nonaccrual LHFI		62,052			64,399			51,448			(2,347	)	-3.6	%		10,604		20.6	%
Other real estate
Alabama		84			—			2,830			84		n/m			(2,746	)	-97.0	%
Mississippi (2)		2,950			3,187			6,550			(237	)	-7.4	%		(3,600	)	-55.0	%
Tennessee (3)		—			—			59			—		n/m			(59	)	n/m
Total other real estate		3,034			3,187			9,439			(153	)	-4.8	%		(6,405	)	-67.9	%
Total nonperforming assets	$	65,086		$	67,586		$	60,887		$	(2,500	)	-3.7	%	$	4,199		6.9	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,347		$	1,503		$	423		$	(156	)	-10.4	%	$	924		n/m
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	51,164		$	62,078		$	81,538		$	(10,914	)	-17.6	%	$	(30,374	)	-37.3	%
	Quarter Ended									Linked Quarter					Year over Year
ACL LHFI (1)	6/30/2022			3/31/2022			6/30/2021			$ Change			% Change		$ Change			% Change
Beginning Balance	$	98,734		$	99,457		$	109,191		$	(723	)	-0.7	%	$	(10,457	)	-9.6	%
Provision for credit losses, LHFI		2,716			(860	)		(3,991	)		3,576		n/m			6,707		n/m
Charge-offs		(2,277	)		(2,242	)		(4,828	)		(35	)	-1.6	%		2,551		52.8	%
Recoveries		3,967			2,379			3,660			1,588		66.8	%		307		8.4	%
Net (charge-offs) recoveries		1,690			137			(1,168	)		1,553		n/m			2,858		n/m
Ending Balance	$	103,140		$	98,734		$	104,032		$	4,406		4.5	%	$	(892	)	-0.9	%
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	1,129		$	699		$	203		$	430		61.5	%	$	926		n/m
Florida		761			(26	)		167			787		n/m			594		n/m
Mississippi (2)		(266	)		(88	)		(3,071	)		(178	)	n/m			2,805		-91.3	%
Tennessee (3)		31			(424	)		1,031			455		n/m			(1,000	)	-97.0	%
Texas		35			(24	)		502			59		n/m			(467	)	-93.0	%
Total net (charge-offs) recoveries	$	1,690		$	137		$	(1,168	)	$	1,553		n/m		$	2,858		n/m

(1)	Excludes PPP loans.
(2)	Mississippi includes Central and Southern Mississippi Regions.
(3)	Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
	Quarter Ended															Six Months Ended
AVERAGE BALANCES	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Securities AFS-taxable (1)	$	3,094,364		$	3,245,502		$	3,156,740		$	2,686,765		$	2,339,662		$	3,169,515		$	2,219,543
Securities AFS-nontaxable		5,110			5,127			5,143			5,159			5,174			5,118			5,182
Securities HTM-taxable (1)		811,599			410,851			364,038			401,685			441,688			612,332			465,343
Securities HTM-nontaxable		5,630			7,327			7,618			8,641			10,958			6,474			17,478
Total securities		3,916,703			3,668,807			3,533,539			3,102,250			2,797,482			3,793,439			2,707,546
PPP loans		17,746			29,009			42,749			122,176			648,222			23,346			623,319
Loans (includes loans held for sale)		10,910,178			10,550,712			10,487,679			10,389,826			10,315,927			10,731,438			10,316,122
Fed funds sold and reverse repurchases		110			56			58			69			55			83			95
Other earning assets		1,139,312			1,811,713			1,839,498			2,038,515			1,750,385			1,473,655			1,709,373
Total earning assets		15,984,049			16,060,297			15,903,523			15,652,836			15,512,071			16,021,961			15,356,455
ACL LHFI		(99,106	)		(99,390	)		(104,148	)		(104,857	)		(112,346	)		(99,247	)		(115,932	)
Other assets		1,513,127			1,550,848			1,570,501			1,602,611			1,622,388			1,531,884			1,611,877
Total assets	$	17,398,070		$	17,511,755		$	17,369,876		$	17,150,590		$	17,022,113		$	17,454,598		$	16,852,400
Interest-bearing demand deposits	$	4,578,235		$	4,429,056		$	4,353,599		$	4,224,717		$	4,056,910		$	4,504,058		$	3,901,146
Savings deposits		4,638,849			4,791,104			4,585,624			4,617,683			4,627,180			4,714,556			4,643,020
Time deposits		1,159,065			1,193,435			1,220,083			1,258,829			1,301,896			1,176,155			1,336,670
Total interest-bearing deposits		10,376,149			10,413,595			10,159,306			10,101,229			9,985,986			10,394,769			9,880,836
Fed funds purchased and repurchases		118,753			212,006			201,856			147,635			174,620			165,122			170,786
Other borrowings		80,283			91,090			94,328			109,735			132,199			85,657			149,467
Subordinated notes		123,116			123,061			123,007			122,951			122,897			123,089			122,886
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		10,760,157			10,901,608			10,640,353			10,543,406			10,477,558			10,830,493			10,385,831
Noninterest-bearing deposits		4,590,338			4,601,108			4,679,951			4,566,924			4,512,268			4,595,693			4,438,324
Other liabilities		439,266			295,287			291,449			257,956			251,582			367,673			258,158
Total liabilities		15,789,761			15,798,003			15,611,753			15,368,286			15,241,408			15,793,859			15,082,313
Shareholders' equity		1,608,309			1,713,752			1,758,123			1,782,304			1,780,705			1,660,739			1,770,087
Total liabilities and equity	$	17,398,070		$	17,511,755		$	17,369,876		$	17,150,590		$	17,022,113		$	17,454,598		$	16,852,400

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
PERIOD END BALANCES	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Cash and due from banks	$	742,461		$	1,917,564		$	2,266,829		$	2,175,058		$	2,267,224
Securities available for sale (1)		2,644,364			3,018,246			3,238,877			3,057,605			2,548,739
Securities held to maturity (1)		1,137,754			607,598			342,537			394,905			433,012
PPP loans		12,549			18,579			33,336			46,486			166,119
LHFS		190,186			222,538			275,706			335,339			332,132
LHFI		10,944,840			10,397,129			10,247,829			10,174,899			10,152,869
ACL LHFI		(103,140	)		(98,734	)		(99,457	)		(104,073	)		(104,032	)
Net LHFI		10,841,700			10,298,395			10,148,372			10,070,826			10,048,837
Premises and equipment, net		207,914			207,301			205,644			201,937			200,970
Mortgage servicing rights		121,014			111,050			87,687			84,101			80,764
Goodwill		384,237			384,237			384,237			384,237			384,237
Identifiable intangible assets		4,264			4,591			5,074			5,621			6,170
Other real estate		3,034			3,187			4,557			6,213			9,439
Operating lease right-of-use assets		34,684			34,048			34,603			34,689			33,201
Other assets		627,349			614,217			568,177			567,627			587,288
Total assets	$	16,951,510		$	17,441,551		$	17,595,636		$	17,364,644		$	17,098,132
Deposits:
Noninterest-bearing	$	4,509,472		$	4,739,102		$	4,771,065		$	4,987,885		$	4,446,991
Interest-bearing		10,260,696			10,374,190			10,316,095			9,934,954			10,185,093
Total deposits		14,770,168			15,113,292			15,087,160			14,922,839			14,632,084
Fed funds purchased and repurchases		70,157			170,499			238,577			146,417			157,176
Other borrowings		72,553			84,644			91,025			94,889			117,223
Subordinated notes		123,152			123,097			123,042			122,987			122,932
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures		32,949			34,517			35,623			32,684			33,733
Operating lease liabilities		37,108			35,912			36,468			36,531			34,959
Other liabilities		196,871			186,352			180,574			177,494			158,860
Total liabilities		15,364,814			15,810,169			15,854,325			15,595,697			15,318,823
Common stock		12,752			12,806			12,845			13,014			13,079
Capital surplus		160,876			167,094			175,913			201,837			210,420
Retained earnings		1,620,210			1,600,138			1,585,113			1,573,176			1,566,451
Accumulated other comprehensive income (loss), net of tax		(207,142	)		(148,656	)		(32,560	)		(19,080	)		(10,641	)
Total shareholders' equity		1,586,696			1,631,382			1,741,311			1,768,947			1,779,309
Total liabilities and equity	$	16,951,510		$	17,441,551		$	17,595,636		$	17,364,644		$	17,098,132

(1)	During the second quarter of 2022, Trustmark transferred $343.1 million of securities available for sale to securities held to maturity.
	See Note 1 - Securities Available for Sale and Held to Maturity in the Notes to Consolidated Financials for additional information.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands except per share data)
(unaudited)
	Quarter Ended															Six Months Ended
INCOME STATEMENTS	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Interest and fees on LHFS & LHFI-FTE	$	103,033		$	93,252		$	94,137		$	94,101		$	93,698		$	196,285		$	187,092
Interest and fees on PPP loans		184			168			397			1,533			25,555			352			34,796
Interest on securities-taxable		14,561			12,357			10,796			9,973			8,991			26,918			17,929
Interest on securities-tax exempt-FTE		107			122			123			132			149			229			439
Interest on fed funds sold and reverse repurchases		1			—			—			—			—			1			—
Other interest income		2,214			817			826			949			489			3,031			992
Total interest income-FTE		120,100			106,716			106,279			106,688			128,882			226,816			241,248
Interest on deposits		2,774			2,760			3,401			3,691			4,630			5,534			9,853
Interest on fed funds purchased and repurchases		70			70			66			51			59			140			115
Other interest expense		1,664			1,539			1,580			1,733			1,813			3,203			3,670
Total interest expense		4,508			4,369			5,047			5,475			6,502			8,877			13,638
Net interest income-FTE		115,592			102,347			101,232			101,213			122,380			217,939			227,610
Provision for credit losses, LHFI		2,716			(860	)		(4,515	)		(2,492	)		(3,991	)		1,856			(14,492	)
Provision for credit losses, off-balance sheet credit exposures		(1,568	)		(1,106	)		2,939			(1,049	)		4,528			(2,674	)		(4,839	)
Net interest income after provision-FTE		114,444			104,313			102,808			104,754			121,843			218,757			246,941
Service charges on deposit accounts		10,226			9,451			9,366			8,911			7,613			19,677			14,969
Bank card and other fees		10,167			8,442			8,340			8,549			8,301			18,609			17,773
Mortgage banking, net		8,149			9,873			11,609			14,004			17,333			18,022			38,137
Insurance commissions		13,702			14,089			11,716			12,133			12,217			27,791			24,662
Wealth management		9,102			9,054			8,757			9,071			8,946			18,156			17,362
Other, net		1,907			3,206			979			1,481			2,001			5,113			4,091
Total noninterest income		53,253			54,115			50,767			54,149			56,411			107,368			116,994
Salaries and employee benefits		71,679			69,585			68,258			74,623			70,115			141,264			141,277
Services and fees		24,538			24,453			22,904			22,306			21,769			48,991			44,253
Net occupancy-premises		6,892			7,079			6,816			6,854			6,578			13,971			13,373
Equipment expense		6,047			6,061			6,585			5,941			5,567			12,108			11,811
Other expense		14,611			14,341			14,906			19,876			14,650			28,952			29,513
Total noninterest expense		123,767			121,519			119,469			129,600			118,679			245,286			240,227
Income before income taxes and tax eq adj		43,930			36,909			34,106			29,303			59,575			80,839			123,708
Tax equivalent adjustment		2,916			3,003			2,906			2,947			2,957			5,919			5,851
Income before income taxes		41,014			33,906			31,200			26,356			56,618			74,920			117,857
Income taxes		6,730			4,695			4,978			5,156			8,637			11,425			17,914
Net income	$	34,284		$	29,211		$	26,222		$	21,200		$	47,981		$	63,495		$	99,943
Per share data
Earnings per share - basic	$	0.56		$	0.47		$	0.42		$	0.34		$	0.76		$	1.03		$	1.58
Earnings per share - diluted	$	0.56		$	0.47		$	0.42		$	0.34		$	0.76		$	1.03		$	1.57
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.46		$	0.46
Weighted average shares outstanding
Basic		61,378,226			61,514,395			62,037,884			62,521,684			63,214,593			61,445,934			63,304,751
Diluted		61,546,285			61,709,797			62,264,983			62,730,157			63,409,683			61,624,569			63,465,515
Period end shares outstanding		61,201,123			61,463,392			61,648,679			62,461,832			62,773,226			61,201,123			62,773,226
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
($ in thousands)
(unaudited)
	Quarter Ended
NONPERFORMING ASSETS (1)	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Nonaccrual LHFI
Alabama	$	2,698		$	7,506		$	8,182		$	9,223		$	8,952
Florida		233			310			313			381			467
Mississippi (2)		23,039			21,318			21,636			22,898			23,422
Tennessee (3)		9,500			9,266			10,501			10,356			10,751
Texas		26,582			25,999			22,066			23,382			7,856
Total nonaccrual LHFI		62,052			64,399			62,698			66,240			51,448
Other real estate
Alabama		84			—			—			613			2,830
Mississippi (2)		2,950			3,187			4,557			5,600			6,550
Tennessee (3)		—			—			—			—			59
Total other real estate		3,034			3,187			4,557			6,213			9,439
Total nonperforming assets	$	65,086		$	67,586		$	67,255		$	72,453		$	60,887
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,347		$	1,503		$	2,114		$	625		$	423
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	51,164		$	62,078		$	69,894		$	75,091		$	81,538
	Quarter Ended															Six Months Ended
ACL LHFI (1)	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Beginning Balance	$	98,734		$	99,457		$	104,073		$	104,032		$	109,191		$	99,457		$	117,306
Provision for credit losses, LHFI		2,716			(860	)		(4,515	)		(2,492	)		(3,991	)		1,856			(14,492	)
Charge-offs		(2,277	)		(2,242	)		(2,616	)		(1,586	)		(4,828	)		(4,519	)		(6,073	)
Recoveries		3,967			2,379			2,515			4,119			3,660			6,346			7,291
Net (charge-offs) recoveries		1,690			137			(101	)		2,533			(1,168	)		1,827			1,218
Ending Balance	$	103,140		$	98,734		$	99,457		$	104,073		$	104,032		$	103,140		$	104,032
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	1,129		$	699		$	747		$	247		$	203		$	1,828		$	305
Florida		761			(26	)		(32	)		356			167			735			197
Mississippi (2)		(266	)		(88	)		(683	)		1,436			(3,071	)		(354	)		(864	)
Tennessee (3)		31			(424	)		(130	)		(8	)		1,031			(393	)		1,078
Texas		35			(24	)		(3	)		502			502			11			502
Total net (charge-offs) recoveries	$	1,690		$	137		$	(101	)	$	2,533		$	(1,168	)	$	1,827		$	1,218

(1)	Excludes PPP loans.
(2)	Mississippi includes Central and Southern Mississippi Regions.
(3)	Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2022
(unaudited)
	Quarter Ended															Six Months Ended
FINANCIAL RATIOS AND OTHER DATA	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022		6/30/2021
Return on average equity		8.55	%		6.91	%		5.92	%		4.72	%		10.81	%	7.71	%	11.39	%
Return on average tangible equity		11.36	%		9.05	%		7.72	%		6.16	%		13.96	%	10.16	%	14.75	%
Return on average assets		0.79	%		0.68	%		0.60	%		0.49	%		1.13	%	0.73	%	1.20	%
Interest margin - Yield - FTE		3.01	%		2.69	%		2.65	%		2.70	%		3.33	%	2.85	%	3.17	%
Interest margin - Cost		0.11	%		0.11	%		0.13	%		0.14	%		0.17	%	0.11	%	0.18	%
Net interest margin - FTE		2.90	%		2.58	%		2.53	%		2.57	%		3.16	%	2.74	%	2.99	%
Efficiency ratio (1)		71.89	%		76.44	%		76.52	%		74.10	%		64.31	%	74.08	%	67.93	%
Full-time equivalent employees		2,727			2,725			2,692			2,680			2,772
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		-0.06	%		-0.01	%		0.00	%		-0.10	%		0.05	%	-0.03	%	-0.02	%
Provision for credit losses, LHFI / average loans		0.10	%		-0.03	%		-0.17	%		-0.10	%		-0.16	%	0.03	%	-0.28	%
Nonaccrual LHFI / (LHFI + LHFS)		0.56	%		0.61	%		0.60	%		0.63	%		0.49	%
Nonperforming assets / (LHFI + LHFS)		0.58	%		0.64	%		0.64	%		0.69	%		0.58	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.58	%		0.64	%		0.64	%		0.69	%		0.58	%
ACL LHFI / LHFI		0.94	%		0.95	%		0.97	%		1.02	%		1.02	%
ACL LHFI-commercial / commercial LHFI		0.88	%		0.95	%		1.00	%		1.05	%		1.04	%
ACL LHFI-consumer / consumer and home mortgage LHFI		1.14	%		0.96	%		0.87	%		0.91	%		0.98	%
ACL LHFI / nonaccrual LHFI		166.22	%		153.32	%		158.63	%		157.11	%		202.21	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)		475.27	%		484.01	%		500.85	%		520.77	%		537.35	%
CAPITAL RATIOS
Total equity / total assets		9.36	%		9.35	%		9.90	%		10.19	%		10.41	%
Tangible equity / tangible assets		7.23	%		7.29	%		7.86	%		8.12	%		8.31	%
Tangible equity / risk-weighted assets		9.16	%		9.79	%		10.71	%		11.19	%		11.33	%
Tier 1 leverage ratio		8.80	%		8.66	%		8.73	%		8.92	%		9.00	%
Common equity tier 1 capital ratio		11.01	%		11.23	%		11.29	%		11.68	%		11.76	%
Tier 1 risk-based capital ratio		11.47	%		11.70	%		11.77	%		12.17	%		12.25	%
Total risk-based capital ratio		13.26	%		13.53	%		13.55	%		14.01	%		14.10	%
STOCK PERFORMANCE
Market value-Close	$	29.19		$	30.39		$	32.46		$	32.22		$	30.80
Book value	$	25.93		$	26.54		$	28.25		$	28.32		$	28.35
Tangible book value	$	19.58		$	20.22		$	21.93		$	22.08		$	22.13

(1)	See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2)	Excludes PPP loans.
See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

Note 1 - 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:

	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	419,696	$	361,822	$	344,640	$	278,615	$	30,025
U.S. Government agency obligations		11,947		12,623		13,727		14,979		16,023
Obligations of states and political subdivisions		5,179		5,359		5,714		5,734		5,807
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		32,240		35,117		39,573		43,860		48,445
Issued by FNMA and FHLMC		1,888,546		2,038,331		2,218,429		2,187,412		1,983,783
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		144,158		164,506		196,690		236,885		283,988
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		142,598		400,488		420,104		290,120		180,668
Total securities available for sale	$	2,644,364	$	3,018,246	$	3,238,877	$	3,057,605	$	2,548,739
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	5,320	$	7,324	$	7,328	$	10,683	$	12,994
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		4,624		4,831		5,005		5,912		6,249
Issued by FNMA and FHLMC		185,554		192,373		43,444		48,554		53,406
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		210,479		224,012		241,934		264,638		291,477
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		731,777		179,058		44,826		65,118		68,886
Total securities held to maturity	$	1,137,754	$	607,598	$	342,537	$	394,905	$	433,012

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

At June 30, 2022, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled approximately $39.5 million ($29.7 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.7% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 2 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Loans secured by real estate:
Construction, land development and other land loans	$	1,440,058		$	1,273,959		$	1,308,781		$	1,286,613		$	1,360,302
Secured by 1-4 family residential properties		2,424,962			2,106,998			1,977,993			1,891,292			1,810,396
Secured by nonfarm, nonresidential properties		3,178,079			2,975,039			2,977,084			2,924,953			2,819,662
Other real estate secured		555,311			715,939			726,043			986,163			1,078,622
Commercial and industrial loans		1,551,001			1,495,060			1,414,279			1,327,211			1,326,605
Consumer loans		160,716			154,215			159,472			157,963			153,519
State and other political subdivision loans		1,110,795			1,215,023			1,146,251			1,125,186			1,136,764
Other loans		523,918			460,896			537,926			475,518			466,999
LHFI		10,944,840			10,397,129			10,247,829			10,174,899			10,152,869
ACL LHFI		(103,140	)		(98,734	)		(99,457	)		(104,073	)		(104,032	)
Net LHFI	$	10,841,700		$	10,298,395		$	10,148,372		$	10,070,826		$	10,048,837

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

Note 2 – Loan Composition (continued)

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

	June 30, 2022
LHFI - COMPOSITION BY REGION	Total		Alabama		Florida		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,440,058	$	610,402	$	52,587	$	391,970	$	43,608	$	341,491
Secured by 1-4 family residential properties		2,424,962		119,599		44,161		2,166,787		67,906		26,509
Secured by nonfarm, nonresidential properties		3,178,079		927,830		252,323		1,245,604		178,658		573,664
Other real estate secured		555,311		120,384		1,784		265,884		6,906		160,353
Commercial and industrial loans		1,551,001		393,458		23,451		644,894		243,252		245,946
Consumer loans		160,716		22,021		7,571		99,852		18,685		12,587
State and other political subdivision loans		1,110,795		85,538		69,860		721,339		28,922		205,136
Other loans		523,918		69,924		11,160		319,743		69,941		53,150
Loans	$	10,944,840	$	2,349,156	$	462,897	$	5,856,073	$	657,878	$	1,618,836
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	69,566	$	35,149	$	10,758	$	16,700	$	2,255	$	4,704
Development		149,183		55,380		1,726		52,982		6,556		32,539
Unimproved land		100,319		17,366		11,781		32,771		10,889		27,512
1-4 family construction		345,749		166,916		24,590		90,778		23,899		39,566
Other construction		775,241		335,591		3,732		198,739		9		237,170
Construction, land development and other land loans	$	1,440,058	$	610,402	$	52,587	$	391,970	$	43,608	$	341,491
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	331,004	$	129,167	$	35,109	$	81,857	$	22,142	$	62,729
Office		282,768		110,140		19,116		89,459		10,790		53,263
Hotel/motel		339,184		186,628		76,318		33,002		28,693		14,543
Mini-storage		160,857		23,452		2,196		110,162		423		24,624
Industrial		296,943		106,567		19,243		99,690		252		71,191
Health care		53,221		20,763		1,045		27,704		351		3,358
Convenience stores		28,737		8,538		661		14,191		1,123		4,224
Nursing homes/senior living		343,468		138,209		—		138,436		5,934		60,889
Other		106,771		15,903		10,094		48,052		16,801		15,921
Total non-owner occupied loans		1,942,953		739,367		163,782		642,553		86,509		310,742
Owner-occupied:
Office		154,226		42,428		36,256		45,836		12,664		17,042
Churches		77,154		17,024		5,439		43,393		7,979		3,319
Industrial warehouses		176,614		16,967		2,396		48,135		17,099		92,017
Health care		126,529		11,632		6,601		91,264		2,379		14,653
Convenience stores		152,200		13,886		20,857		71,648		421		45,388
Retail		97,749		12,615		9,052		44,873		19,151		12,058
Restaurants		54,167		3,143		4,801		29,965		12,377		3,881
Auto dealerships		51,017		6,453		242		25,496		18,826		—
Nursing homes/senior living		211,462		50,570		—		134,692		—		26,200
Other		134,008		13,745		2,897		67,749		1,253		48,364
Total owner-occupied loans		1,235,126		188,463		88,541		603,051		92,149		262,922
Loans secured by nonfarm, nonresidential properties	$	3,178,079	$	927,830	$	252,323	$	1,245,604	$	178,658	$	573,664

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

Note 3 – 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															Six Months Ended
	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Securities – taxable		1.50	%		1.37	%		1.22	%		1.28	%		1.30	%		1.44	%		1.35	%
Securities – nontaxable		4.00	%		3.97	%		3.82	%		3.79	%		3.70	%		3.98	%		3.91	%
Securities – total		1.50	%		1.38	%		1.23	%		1.29	%		1.31	%		1.44	%		1.37	%
PPP loans		4.16	%		2.35	%		3.68	%		4.98	%		15.81	%		3.04	%		11.26	%
Loans - LHFI & LHFS		3.79	%		3.58	%		3.56	%		3.59	%		3.64	%		3.69	%		3.66	%
Loans - total		3.79	%		3.58	%		3.56	%		3.61	%		4.36	%		3.69	%		4.09	%
Fed funds sold & reverse repurchases		3.65	%		—			—			—			—			2.43	%		—
Other earning assets		0.78	%		0.18	%		0.18	%		0.18	%		0.11	%		0.41	%		0.12	%
Total earning assets		3.01	%		2.69	%		2.65	%		2.70	%		3.33	%		2.85	%		3.17	%
Interest-bearing deposits		0.11	%		0.11	%		0.13	%		0.14	%		0.19	%		0.11	%		0.20	%
Fed funds purchased & repurchases		0.24	%		0.13	%		0.13	%		0.14	%		0.14	%		0.17	%		0.14	%
Other borrowings		2.52	%		2.26	%		2.25	%		2.33	%		2.29	%		2.39	%		2.21	%
Total interest-bearing liabilities		0.17	%		0.16	%		0.19	%		0.21	%		0.25	%		0.17	%		0.26	%
Net interest margin		2.90	%		2.58	%		2.53	%		2.57	%		3.16	%		2.74	%		2.99	%
Net interest margin excluding PPP loans and the FRB balance		3.06	%		2.88	%		2.82	%		2.90	%		2.94	%		2.97	%		2.96	%

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

At June 30, 2022 and March 31, 2022, the average FRB balance totaled $1.077 billion and $1.758 billion, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 3.06% for the second quarter of 2022, an increase of 18 basis points when compared to the first quarter of 2022. The expansion of the net interest margin excluding PPP loans and the FRB balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio which resulted from the higher interest-rate environment.

Note 4 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative ineffectiveness of $632 thousand during the second quarter of 2022.

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

	Quarter Ended															Six Months Ended
	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Mortgage servicing income, net	$	6,557		$	6,429		$	6,571		$	6,406		$	6,318		$	12,986		$	12,499
Change in fair value-MSR from runoff		(3,806	)		(3,785	)		(4,745	)		(5,283	)		(5,029	)		(7,591	)		(10,132	)
Gain on sales of loans, net		6,030			6,223			9,005			12,737			14,778			12,253			34,234
Mortgage banking income before hedge ineffectiveness		8,781			8,867			10,831			13,860			16,067			17,648			36,601
Change in fair value-MSR from market changes		8,739			22,020			2,221			1,806			(4,465	)		30,759			9,231
Change in fair value of derivatives		(9,371	)		(21,014	)		(1,443	)		(1,662	)		5,731			(30,385	)		(7,695	)
Net positive (negative) hedge ineffectiveness		(632	)		1,006			778			144			1,266			374			1,536
Mortgage banking, net	$	8,149		$	9,873		$	11,609		$	14,004		$	17,333		$	18,022		$	38,137

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

June 30, 2022

($ in thousands)

(unaudited)

Note 5 – Other Noninterest Income and Expense

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

	Quarter Ended															Six Months Ended
	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Partnership amortization for tax credit purposes	$	(1,475	)	$	(1,336	)	$	(2,455	)	$	(2,045	)	$	(1,989	)	$	(2,811	)	$	(3,511	)
Increase in life insurance cash surrender value		1,683			1,627			1,675			1,663			1,653			3,310			3,292
Other miscellaneous income		1,699			2,915			1,759			1,863			2,337			4,614			4,310
Total other, net	$	1,907		$	3,206		$	979		$	1,481		$	2,001		$	5,113		$	4,091

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										Six Months Ended
	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021		6/30/2022		6/30/2021
Loan expense	$	4,068	$	4,389	$	3,221	$	4,022	$	3,738	$	8,457	$	7,905
Amortization of intangibles		328		482		548		549		553		810		1,219
FDIC assessment expense		1,810		1,500		1,475		1,275		1,225		3,310		2,765
Regulatory settlement charge		—		—		—		5,000		—		—		—
Other real estate expense, net		623		35		336		1,357		1,511		658		1,835
Other miscellaneous expense		7,782		7,935		9,326		7,673		7,623		15,717		15,789
Total other expense	$	14,611	$	14,341	$	14,906	$	19,876	$	14,650	$	28,952	$	29,513

Note 6 – 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

June 30, 2022

($ in thousands except per share data)

(unaudited)

Note 6 – Non-GAAP Financial Measures (continued)

		Quarter Ended															Six Months Ended
		6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,608,309		$	1,713,752		$	1,758,123		$	1,782,304		$	1,780,705		$	1,660,739		$	1,770,087
Less: Goodwill			(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,694	)
Identifiable intangible assets			(4,436	)		(4,879	)		(5,382	)		(5,899	)		(6,442	)		(4,656	)		(6,778	)
Total average tangible equity		$	1,219,636		$	1,324,636		$	1,368,504		$	1,392,168		$	1,390,026		$	1,271,846		$	1,378,615
PERIOD END BALANCES
Total shareholders' equity		$	1,586,696		$	1,631,382		$	1,741,311		$	1,768,947		$	1,779,309
Less: Goodwill			(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,237	)
Identifiable intangible assets			(4,264	)		(4,591	)		(5,074	)		(5,621	)		(6,170	)
Total tangible equity	(a)	$	1,198,195		$	1,242,554		$	1,352,000		$	1,379,089		$	1,388,902
TANGIBLE ASSETS
Total assets		$	16,951,510		$	17,441,551		$	17,595,636		$	17,364,644		$	17,098,132
Less: Goodwill			(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,237	)
Identifiable intangible assets			(4,264	)		(4,591	)		(5,074	)		(5,621	)		(6,170	)
Total tangible assets	(b)	$	16,563,009		$	17,052,723		$	17,206,325		$	16,974,786		$	16,707,725
Risk-weighted assets	(c)	$	13,076,981		$	12,691,545		$	12,623,630		$	12,324,254		$	12,256,492
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	34,284		$	29,211		$	26,222		$	21,200		$	47,981		$	63,495		$	99,943
Plus: Intangible amortization net of tax			246			362			411			412			415			608			915
Net income adjusted for intangible amortization		$	34,530		$	29,573		$	26,633		$	21,612		$	48,396		$	64,103		$	100,858
Period end common shares outstanding	(d)		61,201,123			61,463,392			61,648,679			62,461,832			62,773,226
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			11.36	%		9.05	%		7.72	%		6.16	%		13.96	%		10.16	%		14.75	%
Tangible equity/tangible assets	(a)/(b)		7.23	%		7.29	%		7.86	%		8.12	%		8.31	%
Tangible equity/risk-weighted assets	(a)/(c)		9.16	%		9.79	%		10.71	%		11.19	%		11.33	%
Tangible book value	(a)/(d)*1,000	$	19.58		$	20.22		$	21.93		$	22.08		$	22.13
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,586,696		$	1,631,382		$	1,741,311		$	1,768,947		$	1,779,309
CECL transition adjustment			19,500			19,500			26,000			26,419			26,671
AOCI-related adjustments			207,142			148,656			32,560			19,080			10,641
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(370,229	)		(370,240	)		(370,252	)		(370,264	)		(370,276	)
Other adjustments and deductions for CET1 (2)			(3,757	)		(4,015	)		(4,392	)		(4,817	)		(5,243	)
CET1 capital	(e)		1,439,352			1,425,283			1,425,227			1,439,365			1,441,102
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,499,352		$	1,485,283		$	1,485,227		$	1,499,365		$	1,501,102
Common equity tier 1 capital ratio	(e)/(c)		11.01	%		11.23	%		11.29	%		11.68	%		11.76	%

(1)	Calculation = ((net income 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

June 30, 2022

($ in thousands)

(unaudited)

Note 6 – 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											Six Months Ended
		6/30/2022		3/31/2022		12/31/2021		9/30/2021			6/30/2021		6/30/2022		6/30/2021
Net interest income (GAAP)		$	112,676	$	99,344	$	98,326	$	98,266		$	119,423	$	212,020	$	221,759
Noninterest income (GAAP)			53,253		54,115		50,767		54,149			56,411		107,368		116,994
Pre-provision revenue	(a)	$	165,929	$	153,459	$	149,093	$	152,415		$	175,834	$	319,388	$	338,753
Noninterest expense (GAAP)		$	123,767	$	121,519	$	119,469	$	129,600		$	118,679	$	245,286	$	240,227
Less: Voluntary early retirement program			—		—		—		(5,700	)		—		—		—
Regulatory settlement charge			—		—		—		(5,000	)		—		—		—
Adjusted noninterest expense - PPNR (Non-GAAP)	(b)	$	123,767	$	121,519	$	119,469	$	118,900		$	118,679	$	245,286	$	240,227
PPNR (Non-GAAP)	(a)-(b)	$	42,162	$	31,940	$	29,624	$	33,515		$	57,155	$	74,102	$	98,526

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

		Quarter Ended															Six Months Ended
		6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021			6/30/2022			6/30/2021
Total noninterest expense (GAAP)		$	123,767		$	121,519		$	119,469		$	129,600		$	118,679		$	245,286		$	240,227
Less: Other real estate expense, net			(623	)		(35	)		(336	)		(1,357	)		(1,511	)		(658	)		(1,835	)
Amortization of intangibles			(328	)		(482	)		(548	)		(549	)		(553	)		(810	)		(1,219	)
Charitable contributions resulting in state tax credits			(375	)		(375	)		(391	)		(350	)		(355	)		(750	)		(705	)
Voluntary early retirement program			—			—			—			(5,700	)		—			—			—
Regulatory settlement charge			—			—			—			(5,000	)		—			—			—
Adjusted noninterest expense (Non-GAAP)	(c)	$	122,441		$	120,627		$	118,194		$	116,644		$	116,260		$	243,068		$	236,468
Net interest income (GAAP)		$	112,676		$	99,344		$	98,326		$	98,266		$	119,423		$	212,020		$	221,759
Add: Tax equivalent adjustment			2,916			3,003			2,906			2,947			2,957			5,919			5,851
Net interest income-FTE (Non-GAAP)	(a)	$	115,592		$	102,347		$	101,232		$	101,213		$	122,380		$	217,939		$	227,610
Noninterest income (GAAP)		$	53,253		$	54,115		$	50,767		$	54,149		$	56,411		$	107,368		$	116,994
Add: Partnership amortization for tax credit purposes			1,475			1,336			2,455			2,045			1,989			2,811			3,511
Adjusted noninterest income (Non-GAAP)	(b)	$	54,728		$	55,451		$	53,222		$	56,194		$	58,400		$	110,179		$	120,505
Adjusted revenue (Non-GAAP)	(a)+(b)	$	170,320		$	157,798		$	154,454		$	157,407		$	180,780		$	328,118		$	348,115
Efficiency ratio (Non-GAAP)	(c)/((a)+(b))		71.89	%		76.44	%		76.52	%		74.10	%		64.31	%		74.08	%		67.93	%