Shareholders' Equity

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Note 15 – Shareholders’ Equity

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2021 Annual Report, which are administered by the federal bank regulatory agencies. These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments. Trustmark’s and TNB’s minimum risk-based capital requirements include a capital conservation buffer of 2.50%. Accumulated other comprehensive income (loss), net of tax, is not included in computing regulatory capital. Trustmark elected the five-year phase-in transition period (through December 31, 2024) related to adopting FASB ASU 2016-13 for regulatory capital purposes. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends. As of September 30, 2022, Trustmark and TNB exceeded all applicable minimum capital standards. In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2022. To be categorized in this manner, Trustmark and TNB maintained, as applicable, minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the accompanying table, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures. There are no significant conditions or events that have occurred since September 30, 2022, which Management believes have affected Trustmark’s or TNB’s present classification.

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2022 and December 31, 2021 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2022:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,461,134		10.63	%		7.00	%	n/a
Trustmark National Bank		1,548,097		11.26	%		7.00	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,521,134		11.06	%		8.50	%	n/a
Trustmark National Bank		1,548,097		11.26	%		8.50	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,766,527		12.85	%		10.50	%	n/a
Trustmark National Bank		1,670,283		12.15	%		10.50	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,521,134		9.01	%		4.00	%	n/a
Trustmark National Bank		1,548,097		9.19	%		4.00	%		5.00	%
At December 31, 2021:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,425,227		11.29	%		7.00	%	n/a
Trustmark National Bank		1,518,599		12.03	%		7.00	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,485,227		11.77	%		8.50	%	n/a
Trustmark National Bank		1,518,599		12.03	%		8.50	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,710,700		13.55	%		10.50	%	n/a
Trustmark National Bank		1,621,030		12.84	%		10.50	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,485,227		8.73	%		4.00	%	n/a
Trustmark National Bank		1,518,599		8.94	%		4.00	%		5.00	%

Stock Repurchase Program

On January 28, 2020, the Board of Directors of Trustmark authorized a stock repurchase program, effective April 1, 2020, under which $100.0 million of Trustmark’s outstanding common stock may be acquired through December 31, 2021. On March 9, 2020, Trustmark suspended its share repurchase programs to preserve capital to support customers during the COVID-19 pandemic. Trustmark resumed the repurchase of its shares in January 2021. Under this authority, Trustmark repurchased approximately 1.9 million shares of its outstanding common stock valued at $61.8 million during 2021.

On December 7, 2021, Trustmark's Board of Directors authorized a stock repurchase program effective January 1, 2022, under which $100.0 million of Trustmark's outstanding shares may be acquired through 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. Under this authority, Trustmark repurchased approximately 247 thousand shares of its common stock valued at $8.0 million during the three months ended September 30, 2022. During the first nine months of 2022, Trustmark repurchased approximately 789 thousand shares of its outstanding common stock valued at $24.6 million.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following tables present the net change in the components of accumulated other comprehensive income (loss) and the related tax effects allocated to each component for the periods presented ($ in thousands). The amortization of prior service cost, recognized net loss due to lump sum settlements and change in net actuarial loss are included in the computation of net periodic benefit cost (see Note 10 – Defined Benefit and Other Postretirement Benefits for additional details). Reclassification adjustments related to pension and other postretirement benefit plans are included in salaries and employee benefits and other expense in the accompanying consolidated statements of income. Reclassification adjustments related to the cash flow hedge derivative are included in interest and fees on LHFS and LHFI in the accompanying consolidated statements of income.

	Three Months Ended September 30, 2022									Three Months Ended September 30, 2021
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(114,317	)	$	28,580		$	(85,737	)	$	(12,543	)	$	3,136		$	(9,407	)
Change in net unrealized holding loss on    securities transferred to held to maturity		1,800			(450	)		1,350			636			(159	)		477
Total securities available for sale    and transferred securities		(112,517	)		28,130			(84,387	)		(11,907	)		2,977			(8,930	)
Pension and other postretirement benefit plans:
Reclassification adjustments for changes    realized in net income:
Net change in prior service costs		28			(7	)		21			28			(7	)		21
Recognized net loss due to lump sum    settlements		—			—			—			183			(46	)		137
Change in net actuarial loss		295			(74	)		221			444			(111	)		333
Total pension and other postretirement    benefit plans		323			(81	)		242			655			(164	)		491
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		(19,524	)		4,881			(14,643	)		—			—			—
Reclassification adjustment for (gain) loss realized    in net income		(643	)		161			(482	)		—			—			—
Total cash flow hedge derivatives		(20,167	)		5,042			(15,125	)		—			—			—
Total other comprehensive income (loss)	$	(132,361	)	$	33,091		$	(99,270	)	$	(11,252	)	$	2,813		$	(8,439	)

	Nine Months Ended September 30, 2022									Nine Months Ended September 30, 2021
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(314,517	)	$	78,630		$	(235,887	)	$	(27,731	)	$	6,933		$	(20,798	)
Change in net unrealized holding loss on    securities transferred to held to maturity		(31,451	)		7,863			(23,588	)		2,083			(521	)		1,562
Total securities available for sale    and transferred securities		(345,968	)		86,493			(259,475	)		(25,648	)		6,412			(19,236	)
Pension and other postretirement benefit plans:
Reclassification adjustments for changes    realized in net income:
Net change in prior service costs		83			(21	)		62			84			(21	)		63
Recognized net loss due to lump sum    settlements		—			—			—			183			(46	)		137
Change in net actuarial loss		914			(228	)		686			1,342			(335	)		1,007
Total pension and other postretirement    benefit plans		997			(249	)		748			1,609			(402	)		1,207
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		(19,524	)		4,881			(14,643	)		—			—			—
Reclassification adjustment for (gain) loss realized    in net income		(643	)		161			(482	)		—			—			—
Total cash flow hedge derivatives		(20,167	)		5,042			(15,125	)		—			—			—
Total other comprehensive income (loss)	$	(365,138	)	$	91,286		$	(273,852	)	$	(24,039	)	$	6,010		$	(18,029	)

The following table presents the changes in the balances of each component of accumulated other comprehensive income (loss) for the periods presented ($ in thousands). All amounts are presented net of tax.

	Securities Available for Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2022	$	(17,774	)	$	(14,786	)	$	—		$	(32,560	)
Other comprehensive income (loss) before reclassification		(259,475	)		—			(14,643	)		(274,118	)
Amounts reclassified from accumulated other    comprehensive income (loss)		—			748			(482	)		266
Net other comprehensive income (loss)		(259,475	)		748			(15,125	)		(273,852	)
Balance at September 30, 2022	$	(277,249	)	$	(14,038	)	$	(15,125	)	$	(306,412	)
Balance at January 1, 2021	$	17,331		$	(18,382	)	$	—		$	(1,051	)
Other comprehensive income (loss) before reclassification		(19,236	)		—			—			(19,236	)
Amounts reclassified from accumulated other    comprehensive income (loss)		—			1,207			—			1,207
Net other comprehensive income (loss)		(19,236	)		1,207			—			(18,029	)
Balance at September 30, 2021	$	(1,905	)	$	(17,175	)	$	—		$	(19,080	)