Stock and Incentive Compensation Plans

3 Months Ended

Mar. 31, 2015

Stock and Incentive Compensation Plans [Abstract]

Stock and Incentive Compensation Plans

Note 10 – Stock and Incentive Compensation Plans

Trustmark has granted stock and incentive compensation awards subject to the provisions of the 2005 Stock and Incentive Compensation Plan (the 2005 Plan).  The 2005 Plan was designed to provide flexibility to Trustmark regarding its ability to motivate, attract and retain the services of key associates and directors.  The 2005 Plan allows Trustmark to make grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance units to key associates and directors.  No stock options have been granted since 2006, when Trustmark began granting restricted stock awards exclusively, and none remain outstanding.

Restricted Stock Grants

Performance Awards

Trustmark’s performance awards are granted to Trustmark’s executive and senior management teams.  Performance awards granted vest based on performance goals of return on average tangible equity (ROATE) and total shareholder return (TSR) compared to a defined peer group.  Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date.  These awards are recognized using the straight-line method over the requisite service period.  These awards provide for achievement shares if performance measures exceed 100%.  The restricted share agreement provides for voting rights and dividend privileges.

Time-Vested Awards

Trustmark’s time-vested awards are granted to members of Trustmark’s Board of Directors as well as Trustmark’s executive and senior management teams.  Time-vested 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.

The following table summarizes the vesting periods for awards granted under the 2005 Plan (in years):

	Vesting Period
Performance awards (includes acheivement shares for grants after 2013)		3
Achievement shares from performance grants prior to 2013		3
Time-vested awards		3

The following table summarizes the activity for awards granted under the 2005 Plan for the period presented:

	Three Months Ended March 31, 2015
	Performance Awards			Time-Vested Awards
Outstanding/Nonvested shares, beginning of period		181,195			263,905
Granted		84,899			120,314
Exercised or released from restriction		(47,360	)		(63,209	)
Forfeited		(6,425	)		(2,677	)
Outstanding/Nonvested shares, end of period		212,309			318,333

The following table presents information regarding compensation expense for awards under the 2005 Plan for the periods presented ($ in thousands):

	Three Months Ended March 31,
	2015		2014
Performance awards	$	246	$	263
Time-vested awards		605		928
Total compensation expense	$	851	$	1,191