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Stock and Incentive Compensation Plans
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock and Incentive Compensation Plans

Note 15 – Stock and Incentive Compensation Plans

Trustmark has granted stock and incentive compensation awards and units subject to the provisions of the Stock and Incentive Compensation Plan (the Stock Plan). Current outstanding and future grants of stock and incentive compensation awards are subject to the provisions of the Stock Plan, which is designed to provide flexibility to Trustmark regarding its ability to motivate, attract and retain the services of key associates and directors. The Stock Plan also allows Trustmark to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance units to key associates and directors. At December 31, 2022, the maximum number of shares of Trustmark’s common stock available for issuance under the Stock Plan was 1,004,664 shares.

Restricted Stock Grants

Performance Awards

Trustmark’s performance awards vest over three years and are granted to Trustmark’s executive and senior management teams. Performance awards granted vest based on performance goals of return on average tangible equity and total shareholder return. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date. The Monte Carlo simulation is performed by an independent valuation consultant and requires the use of subjective modeling assumptions. These awards are recognized using the straight-line method over the requisite service period. These awards provide for achievement units if performance measures exceed 100%. The restricted share agreement for these awards provides for voting rights and dividend privileges. Beginning in 2020, Trustmark began granting performance units instead of performance awards. The performance units have the same attributes as the previously granted performance awards, except for the performance units do not provide voting rights.

The following table summarizes Trustmark’s performance award activity for the periods presented:

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Grant-Date

 

 

 

 

 

Grant-Date

 

 

 

 

 

Grant-Date

 

 

 

Shares

 

 

Fair Value

 

 

Shares

 

 

Fair Value

 

 

Shares

 

 

Fair Value

 

Nonvested shares, beginning of year

 

 

140,821

 

 

$

31.80

 

 

 

145,042

 

 

$

32.43

 

 

 

149,914

 

 

$

32.88

 

Granted

 

 

60,773

 

 

 

32.64

 

 

 

53,273

 

 

 

30.02

 

 

 

53,450

 

 

 

31.98

 

Released from restriction

 

 

(19,723

)

 

 

33.40

 

 

 

(44,536

)

 

 

31.88

 

 

 

(36,357

)

 

 

33.31

 

Forfeited

 

 

(33,455

)

 

 

33.11

 

 

 

(12,958

)

 

 

31.28

 

 

 

(21,965

)

 

 

32.97

 

Nonvested shares, end of year

 

 

148,416

 

 

$

31.63

 

 

 

140,821

 

 

$

31.80

 

 

 

145,042

 

 

$

32.43

 

 

Time-based Awards

Trustmark’s time-based awards granted to Trustmark’s executive and senior management teams vest over three years. Trustmark's time-based awards granted to members of Trustmark’s Board of Directors vest over one year. Time-based awards are valued utilizing the fair value of Trustmark’s stock at the grant date. These awards are recognized on the straight-line method over the requisite service period. During 2020, Trustmark began granting time-based units instead of time-based awards. The time-based units have the same attributes as the previously granted time-based awards, except for the time-based units do not provide voting rights.

The following table summarizes Trustmark’s time-based award activity for the periods presented:

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Grant-Date

 

 

 

 

 

Grant-Date

 

 

 

 

 

Grant-Date

 

 

 

Shares

 

 

Fair Value

 

 

Shares

 

 

Fair Value

 

 

Shares

 

 

Fair Value

 

Nonvested shares, beginning of year

 

 

337,466

 

 

$

31.18

 

 

 

301,619

 

 

$

32.24

 

 

 

300,006

 

 

$

33.04

 

Granted

 

 

133,307

 

 

 

31.85

 

 

 

180,847

 

 

 

29.85

 

 

 

123,810

 

 

 

31.52

 

Released from restriction

 

 

(148,905

)

 

 

32.16

 

 

 

(135,120

)

 

 

31.77

 

 

 

(110,537

)

 

 

33.58

 

Forfeited

 

 

(8,890

)

 

 

31.62

 

 

 

(9,880

)

 

 

31.19

 

 

 

(11,660

)

 

 

32.47

 

Nonvested shares, end of year

 

 

312,978

 

 

$

30.99

 

 

 

337,466

 

 

$

31.18

 

 

 

301,619

 

 

$

32.24

 

 

The following table presents information regarding compensation expense for awards under the Stock Plan for the periods presented ($ in thousands):

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2022

 

 

 

Recognized Compensation Expense

 

 

Unrecognized

 

 

Weighted Average

 

 

 

for Years Ended December 31,

 

 

Compensation

 

 

Life of Unrecognized

 

 

 

2022

 

 

2021

 

 

2020

 

 

Expense

 

 

Compensation Expense

 

Performance awards

 

$

1,258

 

 

$

828

 

 

$

815

 

 

$

1,755

 

 

 

1.74

 

Time-based awards

 

 

3,625

 

 

 

4,773

 

 

 

4,382

 

 

 

3,524

 

 

 

1.59

 

Total

 

$

4,883

 

 

$

5,601

 

 

$

5,197

 

 

$

5,279