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Stock and Incentive Compensation Plans
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock and Incentive Compensation Plans

Note 15 – Stock and Incentive Compensation Plans

Trustmark has granted restricted stock units subject to the provisions of the Stock and Incentive Compensation Plan (the Stock Plan). Current outstanding and future grants of restricted stock units 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, 2023, the maximum number of shares of Trustmark’s common stock available for issuance under the Stock Plan was 777,264 shares.

Restricted Stock Grants

Performance Units

Trustmark’s performance units vest over three years and are granted to Trustmark’s executive and senior management teams. Performance units granted vest based on performance goals of return on average tangible equity and total shareholder return. Performance units 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 units are recognized using the straight-line method over the requisite service period. These units provide for achievement units if performance measures exceed 100%. The restricted stock agreement for these units provide for dividend privileges, but no voting rights.

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

 

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

 

 

 

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

 

 

148,416

 

 

$

31.63

 

 

 

140,821

 

 

$

31.80

 

 

 

145,042

 

 

$

32.43

 

Granted

 

 

70,666

 

 

 

29.78

 

 

 

60,773

 

 

 

32.64

 

 

 

53,273

 

 

 

30.02

 

Released from restriction

 

 

(39,943

)

 

 

31.98

 

 

 

(19,723

)

 

 

33.40

 

 

 

(44,536

)

 

 

31.88

 

Forfeited

 

 

(4,925

)

 

 

31.41

 

 

 

(33,455

)

 

 

33.11

 

 

 

(12,958

)

 

 

31.28

 

Nonvested shares, end of year

 

 

174,214

 

 

$

30.81

 

 

 

148,416

 

 

$

31.63

 

 

 

140,821

 

 

$

31.80

 

 

 

Time-based Units

Trustmark’s time-based units granted to Trustmark’s executive and senior management teams vest over three years. Trustmark’s time-based units granted to members of Trustmark’s Board of Directors vest over one year. Time-based units are valued utilizing the fair value of Trustmark’s stock at the grant date. These units are recognized on the straight-line method over the requisite service period. The restricted stock agreement for these units provide for dividend privileges, but no voting rights.

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

 

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

 

 

 

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

 

 

312,978

 

 

$

30.99

 

 

 

337,466

 

 

$

31.18

 

 

 

301,619

 

 

$

32.24

 

Granted

 

 

145,003

 

 

 

28.59

 

 

 

133,307

 

 

 

31.85

 

 

 

180,847

 

 

 

29.85

 

Released from restriction

 

 

(90,587

)

 

 

30.90

 

 

 

(148,905

)

 

 

32.16

 

 

 

(135,120

)

 

 

31.77

 

Forfeited

 

 

(9,142

)

 

 

30.72

 

 

 

(8,890

)

 

 

31.62

 

 

 

(9,880

)

 

 

31.19

 

Nonvested shares, end of year

 

 

358,252

 

 

$

30.04

 

 

 

312,978

 

 

$

30.99

 

 

 

337,466

 

 

$

31.18

 

 

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

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2023

 

 

 

Recognized Compensation Expense

 

 

Unrecognized

 

 

Weighted Average

 

 

 

for Years Ended December 31,

 

 

Compensation

 

 

Life of Unrecognized

 

 

 

2023

 

 

2022

 

 

2021

 

 

Expense

 

 

Compensation Expense

 

Performance awards

 

$

1,772

 

 

$

1,258

 

 

$

828

 

 

$

2,021

 

 

 

1.69

 

Time-based awards

 

 

4,383

 

 

 

3,625

 

 

 

4,773

 

 

 

3,005

 

 

 

1.58

 

Total

 

$

6,155

 

 

$

4,883

 

 

$

5,601

 

 

$

5,026