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Stock and Incentive Compensation Plans
 12 Months Ended
Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock and Incentive Compensation Plans

Note 16 – 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, except that the number of shares available for issuance has been reduced.  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 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, 2015, the maximum number of shares of Trustmark’s common stock available for issuance under the Plan was 1,444,550 shares.

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

 

 

 

Vesting Period

 

Performance awards (includes achievement shares for grants after 2013)

 

 

3

 

Achievement shares from performance grants prior to 2013

 

 

3

 

Time-vested awards

 

 

3

 

 

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.

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

 

 

 

Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

 

 

 

 

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

 

 

181,195

 

 

$

24.98

 

 

 

160,520

 

 

$

25.20

 

 

 

159,583

 

 

$

24.26

 

Granted

 

 

84,899

 

 

 

22.71

 

 

 

73,726

 

 

 

25.58

 

 

 

62,119

 

 

 

23.65

 

Released from restriction

 

 

(47,360

)

 

 

24.97

 

 

 

(38,580

)

 

 

25.40

 

 

 

(54,784

)

 

 

24.15

 

Forfeited

 

 

(6,425

)

 

 

24.97

 

 

 

(14,471

)

 

 

24.86

 

 

 

(6,398

)

 

 

25.42

 

Nonvested shares, end of year

 

 

212,309

 

 

$

24.14

 

 

 

181,195

 

 

$

24.98

 

 

 

160,520

 

 

$

25.20

 

 

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 Trustmark’s time-vested award activity for the periods presented:

 

 

 

Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

 

 

 

 

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

 

 

263,905

 

 

$

24.66

 

 

 

291,634

 

 

$

24.48

 

 

 

317,573

 

 

$

23.28

 

Granted

 

 

121,314

 

 

 

23.61

 

 

 

105,690

 

 

 

24.91

 

 

 

112,964

 

 

 

24.47

 

Released from restriction

 

 

(67,087

)

 

 

24.31

 

 

 

(124,869

)

 

 

24.74

 

 

 

(122,727

)

 

 

24.40

 

Forfeited

 

 

(11,475

)

 

 

24.22

 

 

 

(8,550

)

 

 

24.77

 

 

 

(16,176

)

 

 

25.14

 

Nonvested shares, end of year

 

 

306,657

 

 

$

24.56

 

 

 

263,905

 

 

$

24.66

 

 

 

291,634

 

 

$

24.48

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Life

 

 

 

Recognized Compensation Expense

 

 

Unrecognized

 

 

of Unrecognized

 

 

 

for Years Ended December 31,

 

 

Compensation

 

 

Compensation

 

 

 

2015

 

 

2014

 

 

2013

 

 

Expense

 

 

Expense

 

Performance awards

 

$

1,201

 

 

$

1,065

 

 

$

825

 

 

$

1,271

 

 

 

1.71

 

Time-vested awards

 

 

2,467

 

 

 

3,087

 

 

 

2,774

 

 

 

2,781

 

 

 

1.78

 

Total

 

$

3,668

 

 

$

4,152

 

 

$

3,599

 

 

$

4,052