Stock and Incentive Compensation Plans

6 Months Ended

Jun. 30, 2015

Stock and Incentive Compensation Plans [Abstract]

Stock and Incentive Compensation Plans

Note 11 – Stock and Incentive Compensation Plans

Trustmark has granted stock and incentive compensation awards subject to the provisions of the Stock and Incentive Compensation Plan (the Plan).  On April 28, 2015, Trustmark shareholders approved an amended and restated version of the Plan, which was originally scheduled to expire on May 9, 2015.  The amended and restated provisions of the Plan are essentially the same as the previous version of the Plan with the exception of a reduction in shares available for issuance.  Current outstanding and future grants of stock and incentive compensation awards are subject to the provisions of the 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 Plan also 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.

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 and total shareholder return 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 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 tables summarize the stock and incentive plan activity for the periods presented:

	Three Months Ended June 30, 2015
	Performance Awards		Time-Vested Awards
Outstanding/Nonvested shares, beginning of period		212,309		318,333
Granted		-		500
Exercised or released from restriction		-		(1,299	)
Forfeited		-		(4,456	)
Outstanding/Nonvested shares, end of period		212,309		313,078

	Six Months Ended June 30, 2015
	Performance Awards			Time-Vested Awards
Outstanding/Nonvested shares, beginning of period		181,195			263,905
Granted		84,899			120,814
Exercised or released from restriction		(47,360	)		(64,508	)
Forfeited		(6,425	)		(7,133	)
Outstanding/Nonvested shares, end of period		212,309			313,078

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Performance awards	$	318	$	267	$	564	$	530
Time-vested awards		612		777		1,217		1,705
Total compensation expense	$	930	$	1,044	$	1,781	$	2,235