trmk-ex991

JACKSON, Miss. – October 25, 2016 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $31.0 million in the third quarter of 2016, which represented diluted earnings per share of $0.46. This level of earnings resulted in a return on average tangible common equity of 11.16% and a return on average assets of 0.95%. Diluted earnings per share in the third quarter of 2016 increased 9.5% relative to the same period in the prior year and 15.0% from the prior quarter when a one-time charge related to a voluntary early retirement program (ERP) in that quarter is excluded. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable December 15, 2016, to shareholders of record on December 1, 2016.

Gerard R. Host, President and CEO, stated, “Trustmark achieved another quarter of solid financial results. We continued to maintain and expand customer relationships in our banking business by growing loans while maintaining solid credit quality. Our other lines of business continued to perform well, reflecting strength in insurance and mortgage banking. Core noninterest expense remained well controlled. Thanks to our associates, solid profitability and strong capital base, Trustmark remains well positioned to continue meeting the needs of our customers and creating long-term value for our shareholders.”

Loans held for investment totaled $7.5 billion at September 30, 2016, reflecting an increase of 5.2% annualized from the prior quarter and 10.4% year-over-year. Compared to the prior quarter, loans to state and other political subdivisions increased $70.6 million reflecting growth in Texas, Mississippi and Alabama. Construction, land development and other land loans increased $48.3 million driven by growth across Trustmark’s five-state franchise. Other loans, which include loans to nonprofits and real estate investment trusts, increased $34.9 million, reflecting growth in Mississippi and Tennessee. Loans secured by nonfarm, nonresidential real estate increased $15.4 million with growth in the Mississippi, Texas and Florida markets. Commercial and industrial loans declined $45.1 million as growth in Alabama, Tennessee and Florida was more than offset with declines in Mississippi and Texas. During the quarter, Trustmark sold the vast majority of its lower-rate, longer-term home mortgages in the secondary market rather than replacing the runoff in its single-family loan portfolio; as a result, the single-family loan portfolio decreased by $27.6 million.

Acquired loans totaled $295.7 million at September 30, 2016, down $43.3 million from the prior quarter. Collectively, loans held for investment and acquired loans totaled $7.8 billion at September 30, 2016, up $50.7 million, or 2.6% annualized, from the prior quarter.

Deposits totaled $9.7 billion at September 30, 2016, up $154.2 million, or 1.6%, from the prior quarter. Trustmark continues to maintain an attractive, low-cost deposit base with a total cost of deposits of 0.13%. The favorable mix of interest-bearing liabilities yielded a total cost of funds of 0.30% for the third quarter of 2016.

Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. During the third quarter, Trustmark did not repurchase any of its common shares. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At September 30, 2016, Trustmark’s tangible equity to tangible assets ratio was 8.97%, while its total risk-based capital ratio was 13.82%. Tangible book value per share was $16.95 at September 30, 2016, up 5.9% from the prior year.

At September 30, 2016, nonperforming loans totaled $54.4 million, down 16.5% linked quarter and 11.0% year-over-year. Other real estate totaled $65.0 million, reflecting a decline of 6.5% from the prior quarter and 22.6% from the same period one year earlier.

Net charge-offs for the quarter were $5.2 million and resulted from four impaired credits being written down to fair value or charged-off in full. None of these credits were energy related, and a significant portion of the net charge-offs had been provisioned for in previous periods.

Allocation of Trustmark's $70.9 million allowance for loan losses represented 1.02% of commercial loans and 0.68% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 0.95% at September 30, 2016, representing a level Management considers commensurate with the inherent risk in the loan portfolio. Collectively, the allowance for both held for investment and acquired loan losses represented 1.06% of total loans, which include held for investment and acquired loans.

Unless otherwise noted, all of the above credit quality metrics exclude acquired loans and other real estate covered by FDIC loss-share agreement.

Net interest income (FTE) in the third quarter totaled $102.2 million, which resulted in a net interest margin of 3.52%. Compared to the prior quarter, net interest income (FTE) increased $1.3 million, which reflects continued growth in interest income from both the held for sale and held for investment loan portfolios, in addition to a lower level of interest and recoveries from the acquired loan portfolio. The yield on acquired loans in the third quarter totaled 8.50% and included recoveries from settlement of debt of $1.9 million; this compares to $2.9 million in recoveries from settlement of debt in the prior quarter. The net interest margin (FTE) excluding acquired loans totaled 3.38% in the third quarter, remaining unchanged from the prior quarter.

Service charges on deposit accounts totaled $11.7 million in the third quarter, an increase of $626 thousand, or 5.7%, from the prior quarter and a decline of $723 thousand, or 5.8%, year-over-year. The linked quarter change was attributable to a seasonal increase in occurrences of consumer overdrafts while the year-over-year decline reflected a decrease in consumer and business service charges as well as a reduction in occurrences of consumer overdrafts.

Bank card and other fees totaled $6.8 million in the third quarter, a decline of $680 thousand, or 9.1%, linked quarter and $208 thousand, or 3.0%, year-over-year. The linked quarter decline reflected a seasonal reduction in ATM surcharge revenue as well as reduced revenue from customer derivatives while the change year-over-year included lower ATM surcharge revenue.

Insurance revenue totaled $10.1 million in the third quarter, an increase of $436 thousand, or 4.5%, from the prior quarter and $168 thousand, or 1.7%, from the same period one year earlier. The linked quarter increase was primarily driven by the commercial property and casualty line of business while growth year-over-year reflected increases in group health insurance and other commission income, which were offset in part by reduced commercial property and casualty revenue.

Wealth management revenue totaled $7.6 million in the third quarter, a decrease of $438 thousand, or 5.5%, from the prior quarter and $219 thousand, or 2.8%, from the comparable period in 2015, reflecting in part a decline in trust management revenue.

Mortgage banking revenue in the third quarter totaled $7.4 million, an increase of $643 thousand, or 9.6%, linked quarter and a decrease of $79 thousand, or 1.1%, year-over-year. The growth from the prior quarter reflected increased secondary marketing gains and improved hedge ineffectiveness as well as expanded mortgage servicing income. When compared to levels one year earlier, increased secondary marketing gains and mortgage servicing income were more than offset by unfavorable mortgage servicing hedge ineffectiveness and a lower level of mark-to-market gains on mortgage loans held for sale. Mortgage loan production in the third quarter totaled $487.9 million, up 20.8% from the prior quarter and 16.1% from the comparable period one year earlier.

Trustmark’s proactive expense management programs have resulted in lower noninterest expense and improved efficiency levels. During the third quarter, noninterest expense totaled $97.9 million, down $12.3 million, or 11.1% from the prior quarter. Excluding the one-time charge of $9.3 million in second quarter related to the ERP, noninterest expense declined $3.0 million, or 2.9%, linked quarter. The efficiency ratio improved 339 basis points during the quarter to 63.8%.

Core noninterest expense, which excludes ORE expense (gain of $1.3 million), intangible amortization ($1.7 million), expense related to reducing the risk profile of the assets of the Corporation’s defined benefit plan prior to termination ($664 thousand) and additional pension expense related to the ERP ($236 thousand), totaled $96.6 million in the third quarter, a decline of $1.4 million on a comparable basis from the prior quarter.

Salaries and benefits expense totaled $57.3 million, which decreased during the quarter by $9.8 million. Excluding one-time ERP charges of $9.1 million during the second quarter, salary and benefits decreased by $706 thousand. This decrease represents ERP savings of $1.9 million during the quarter offset in part by increased pension cost of $900 thousand related to reducing the risk profile of the assets of the Corporation’s defined benefits plan as well as other non-routine pension expense related to the ERP. Other real estate expense decreased by $2.5 million during the quarter principally due to lower writedown expense of $1.2 million and an increase in the gain on sale of $1.1 million driven by the sale of two properties. Other expense totaled $11.6 million in the quarter, a decrease of $1.1 million from the prior quarter. Excluding ERP charges in the second quarter, other expense decreased by $823 thousand on a comparable basis from the prior quarter.

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 26, 2016, at 10:00 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com, which will also include a slide presentation Management will review during the conference call. A replay of the conference call will also be available through Wednesday, November 9, 2016, in archived format at the same web address or by calling (877) 344-7529, passcode 10093856.

Trustmark Corporation is a financial services company providing banking and financial solutions through 194 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets as well as crude oil prices, changes in our ability to measure

the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues relating to the European financial system and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, changes in our compensation and benefit plans, including those associated with the planned termination of our noncontributory tax-qualified defined benefit pension plan, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	9/30/2016			6/30/2016			9/30/2015			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	2,249,109		$	2,214,040		$	2,269,763		$	35,069			1.6	%	$	(20,654	)		-0.9	%
Securities AFS-nontaxable		95,233			99,296			116,290			(4,063	)		-4.1	%		(21,057	)		-18.1	%
Securities HTM-taxable		1,115,053			1,122,463			1,151,673			(7,410	)		-0.7	%		(36,620	)		-3.2	%
Securities HTM-nontaxable		34,179			34,785			36,278			(606	)		-1.7	%		(2,099	)		-5.8	%
Total securities		3,493,574			3,470,584			3,574,004			22,990			0.7	%		(80,430	)		-2.3	%
Loans (including loans held for sale)		7,658,089			7,505,409			6,771,947			152,680			2.0	%		886,142			13.1	%
Acquired loans:
Noncovered loans		306,809			335,012			421,262			(28,203	)		-8.4	%		(114,453	)		-27.2	%
Covered loans		10,464			14,728			18,982			(4,264	)		-29.0	%		(8,518	)		-44.9	%
Fed funds sold and rev repos		1,352			1,263			1,167			89			7.0	%		185			15.9	%
Other earning assets		68,706			64,000			58,534			4,706			7.4	%		10,172			17.4	%
Total earning assets		11,538,994			11,390,996			10,845,896			147,998			1.3	%		693,098			6.4	%
Allowance for loan losses		(82,301	)		(83,614	)		(84,482	)		1,313			-1.6	%		2,181			-2.6	%
Cash and due from banks		299,670			271,135			266,174			28,535			10.5	%		33,496			12.6	%
Other assets		1,243,854			1,240,846			1,286,189			3,008			0.2	%		(42,335	)		-3.3	%
Total assets	$	13,000,217		$	12,819,363		$	12,313,777		$	180,854			1.4	%	$	686,440			5.6	%

Interest-bearing demand deposits	$	1,848,084		$	1,830,107		$	1,915,567		$	17,977			1.0	%	$	(67,483	)		-3.5	%
Savings deposits		3,101,161			3,221,850			3,059,183			(120,689	)		-3.7	%		41,978			1.4	%
Time deposits less than $100,000		961,641			978,678			1,072,373			(17,037	)		-1.7	%		(110,732	)		-10.3	%
Time deposits of $100,000 or more		705,704			699,886			712,910			5,818			0.8	%		(7,206	)		-1.0	%
Total interest-bearing deposits		6,616,590			6,730,521			6,760,033			(113,931	)		-1.7	%		(143,443	)		-2.1	%
Fed funds purchased and repos		481,071			488,512			528,232			(7,441	)		-1.5	%		(47,161	)		-8.9	%
Short-term borrowings		311,473			319,288			534,931			(7,815	)		-2.4	%		(223,458	)		-41.8	%
Long-term FHLB advances		751,095			597,269			1,195			153,826			25.8	%		749,900		n/m
Subordinated notes		49,988			49,980			49,955			8			0.0	%		33			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Total interest-bearing liabilities		8,272,073			8,247,426			7,936,202			24,647			0.3	%		335,871			4.2	%
Noninterest-bearing deposits		3,060,331			2,927,469			2,771,186			132,862			4.5	%		289,145			10.4	%
Other liabilities		136,971			131,627			137,134			5,344			4.1	%		(163	)		-0.1	%
Total liabilities		11,469,375			11,306,522			10,844,522			162,853			1.4	%		624,853			5.8	%
Shareholders' equity		1,530,842			1,512,841			1,469,255			18,001			1.2	%		61,587			4.2	%
Total liabilities and equity	$	13,000,217		$	12,819,363		$	12,313,777		$	180,854			1.4	%	$	686,440			5.6	%

n/m - percentage changes greater than +/- 100% are considered not meaningful

										Linked Quarter						Year over Year
PERIOD END BALANCES	9/30/2016			6/30/2016			9/30/2015			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	383,945		$	322,049		$	220,052		$	61,896			19.2	%	$	163,893			74.5	%
Fed funds sold and rev repos		500			3,198			—			(2,698	)	n/m				500		n/m
Securities available for sale		2,410,947			2,388,306			2,382,822			22,641			0.9	%		28,125			1.2	%
Securities held to maturity		1,143,234			1,173,204			1,178,440			(29,970	)		-2.6	%		(35,206	)		-3.0	%
Loans held for sale (LHFS)		242,097			213,546			173,679			28,551			13.4	%		68,418			39.4	%
Loans held for investment (LHFI)		7,499,204			7,405,181			6,791,643			94,023			1.3	%		707,561			10.4	%
Allowance for loan losses		(70,871	)		(71,796	)		(65,607	)		925			-1.3	%		(5,264	)		8.0	%
Net LHFI		7,428,333			7,333,385			6,726,036			94,948			1.3	%		702,297			10.4	%
Acquired loans:
Noncovered loans		291,825			325,196			400,528			(33,371	)		-10.3	%		(108,703	)		-27.1	%
Covered loans		3,912			13,839			18,645			(9,927	)		-71.7	%		(14,733	)		-79.0	%
Allowance for loan losses, acquired loans		(11,380	)		(12,480	)		(12,185	)		1,100			-8.8	%		805			-6.6	%
Net acquired loans		284,357			326,555			406,988			(42,198	)		-12.9	%		(122,631	)		-30.1	%
Net LHFI and acquired loans		7,712,690			7,659,940			7,133,024			52,750			0.7	%		579,666			8.1	%
Premises and equipment, net		190,930			192,732			196,558			(1,802	)		-0.9	%		(5,628	)		-2.9	%
Mortgage servicing rights		65,514			62,814			69,809			2,700			4.3	%		(4,295	)		-6.2	%
Goodwill		366,156			366,156			365,500			—			0.0	%		656			0.2	%
Identifiable intangible assets		22,366			24,058			30,129			(1,692	)		-7.0	%		(7,763	)		-25.8	%
Other real estate, excluding covered other real estate		64,993			69,502			83,955			(4,509	)		-6.5	%		(18,962	)		-22.6	%
Covered other real estate		—			388			2,865			(388	)		-100.0	%		(2,865	)		-100.0	%
FDIC indemnification asset		—			—			1,749			—		n/m				(1,749	)		-100.0	%
Other assets		558,166			554,456			551,694			3,710			0.7	%		6,472			1.2	%
Total assets	$	13,161,538		$	13,030,349		$	12,390,276		$	131,189			1.0	%	$	771,262			6.2	%

Deposits:
Noninterest-bearing	$	3,111,603		$	2,921,016		$	2,787,454		$	190,587			6.5	%	$	324,149			11.6	%
Interest-bearing		6,574,098			6,610,508			6,624,950			(36,410	)		-0.6	%		(50,852	)		-0.8	%
Total deposits		9,685,701			9,531,524			9,412,404			154,177			1.6	%		273,297			2.9	%
Fed funds purchased and repos		514,918			606,336			534,204			(91,418	)		-15.1	%		(19,286	)		-3.6	%
Short-term borrowings		412,792			360,434			709,845			52,358			14.5	%		(297,053	)		-41.8	%
Long-term FHLB advances		751,075			751,106			1,173			(31	)		0.0	%		749,902		n/m
Subordinated notes		49,993			49,985			49,961			8			0.0	%		32			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Other liabilities		150,442			145,641			144,077			4,801			3.3	%		6,365			4.4	%
Total liabilities		11,626,777			11,506,882			10,913,520			119,895			1.0	%		713,257			6.5	%
Common stock		14,090			14,090			14,076			-			0.0	%		14			0.1	%
Capital surplus		365,553			364,516			360,494			1,037			0.3	%		5,059			1.4	%
Retained earnings		1,172,193			1,157,025			1,130,766			15,168			1.3	%		41,427			3.7	%
Accum other comprehensive loss, net of tax		(17,075	)		(12,164	)		(28,580	)		(4,911	)		40.4	%		11,505			-40.3	%
Total shareholders' equity		1,534,761			1,523,467			1,476,756			11,294			0.7	%		58,005			3.9	%
Total liabilities and equity	$	13,161,538		$	13,030,349		$	12,390,276		$	131,189			1.0	%	$	771,262			6.2	%

n/m - percentage changes greater than +/- 100% are considered not meaningful

	Quarter Ended							Linked Quarter						Year over Year
INCOME STATEMENTS	9/30/2016			6/30/2016		9/30/2015		$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	80,649		$	77,777	$	72,951	$	2,872			3.7	%	$	7,698			10.6	%
Interest and fees on acquired loans		6,781			8,051		11,607		(1,270	)		-15.8	%		(4,826	)		-41.6	%
Interest on securities-taxable		19,351			19,402		20,264		(51	)		-0.3	%		(913	)		-4.5	%
Interest on securities-tax exempt-FTE		1,388			1,429		1,609		(41	)		-2.9	%		(221	)		-13.7	%
Interest on fed funds sold and rev repos		5			4		2		1			25.0	%		3		n/m
Other interest income		223			200		392		23			11.5	%		(169	)		-43.1	%
Total interest income-FTE		108,397			106,863		106,825		1,534			1.4	%		1,572			1.5	%
Interest on deposits		3,208			3,122		3,147		86			2.8	%		61			1.9	%
Interest on fed funds pch and repos		411			404		205		7			1.7	%		206		n/m
Other interest expense		2,603			2,428		1,811		175			7.2	%		792			43.7	%
Total interest expense		6,222			5,954		5,163		268			4.5	%		1,059			20.5	%
Net interest income-FTE		102,175			100,909		101,662		1,266			1.3	%		513			0.5	%
Provision for loan losses, LHFI		4,284			2,596		2,514		1,688			65.0	%		1,770			70.4	%
Provision for loan losses, acquired loans		691			607		1,256		84			13.8	%		(565	)		-45.0	%
Net interest income after provision-FTE		97,200			97,706		97,892		(506	)		-0.5	%		(692	)		-0.7	%
Service charges on deposit accounts		11,677			11,051		12,400		626			5.7	%		(723	)		-5.8	%
Insurance commissions		10,074			9,638		9,906		436			4.5	%		168			1.7	%
Wealth management		7,571			8,009		7,790		(438	)		-5.5	%		(219	)		-2.8	%
Bank card and other fees		6,756			7,436		6,964		(680	)		-9.1	%		(208	)		-3.0	%
Mortgage banking, net		7,364			6,721		7,443		643			9.6	%		(79	)		-1.1	%
Other, net		1,274			1,372		1,470		(98	)		-7.1	%		(196	)		-13.3	%
Nonint inc-excl sec gains (losses), net		44,716			44,227		45,973		489			1.1	%		(1,257	)		-2.7	%
Security gains (losses), net		—			—		—		—		n/m				-		n/m
Total noninterest income		44,716			44,227		45,973		489			1.1	%		(1,257	)		-2.7	%
Salaries and employee benefits		57,250			67,018		58,270		(9,768	)		-14.6	%		(1,020	)		-1.8	%
Services and fees		14,947			14,522		14,691		425			2.9	%		256			1.7	%
Net occupancy-premises		6,440			5,928		6,580		512			8.6	%		(140	)		-2.1	%
Equipment expense		6,063			5,896		5,877		167			2.8	%		186			3.2	%
FDIC assessment expense		2,911			2,959		2,559		(48	)		-1.6	%		352			13.8	%
Other real estate expense		(1,313	)		1,193		3,385		(2,506	)	n/m				(4,698	)	n/m
Other expense		11,610			12,663		12,198		(1,053	)		-8.3	%		(588	)		-4.8	%
Total noninterest expense		97,908			110,179		103,560		(12,271	)		-11.1	%		(5,652	)		-5.5	%
Income before income taxes and tax eq adj		44,008			31,754		40,305		12,254			38.6	%		3,703			9.2	%
Tax equivalent adjustment		4,611			4,532		4,056		79			1.7	%		555			13.7	%
Income before income taxes		39,397			27,222		36,249		12,175			44.7	%		3,148			8.7	%
Income taxes		8,415			5,719		7,819		2,696			47.1	%		596			7.6	%
Net income	$	30,982		$	21,503	$	28,430	$	9,479			44.1	%	$	2,552			9.0	%

Per share data
Earnings per share - basic	$	0.46		$	0.32	$	0.42	$	0.14			43.8	%	$	0.04			9.5	%

Earnings per share - diluted	$	0.46		$	0.32	$	0.42	$	0.14			43.8	%	$	0.04			9.5	%

Dividends per share	$	0.23		$	0.23	$	0.23		—			0.0	%		—			0.0	%

Weighted average shares outstanding
Basic		67,625,085			67,619,571		67,557,395

Diluted		67,793,203			67,770,174		67,707,456

Period end shares outstanding		67,626,939			67,623,601		67,557,395

n/m - percentage changes greater than +/- 100% are considered not meaningful

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS (1)	9/30/2016			6/30/2016			9/30/2015			$ Change			% Change			$ Change			% Change
Nonaccrual loans
Alabama	$	1,403		$	1,379		$	1,306		$	24			1.7	%	$	97			7.4	%
Florida		3,719			1,806			7,444			1,913		n/m				(3,725	)		-50.0	%
Mississippi (2)		41,968			54,543			44,955			(12,575	)		-23.1	%		(2,987	)		-6.6	%
Tennessee (3)		6,620			5,345			4,911			1,275			23.9	%		1,709			34.8	%
Texas		700			2,055			2,515			(1,355	)		-65.9	%		(1,815	)		-72.2	%
Total nonaccrual loans		54,410			65,128			61,131			(10,718	)		-16.5	%		(6,721	)		-11.0	%
Other real estate
Alabama		15,574			18,031			23,822			(2,457	)		-13.6	%		(8,248	)		-34.6	%
Florida		25,147			28,052			30,374			(2,905	)		-10.4	%		(5,227	)		-17.2	%
Mississippi (2)		16,659			14,435			13,180			2,224			15.4	%		3,479			26.4	%
Tennessee (3)		6,061			7,432			9,840			(1,371	)		-18.4	%		(3,779	)		-38.4	%
Texas		1,552			1,552			6,739			-			0.0	%		(5,187	)		-77.0	%
Total other real estate		64,993			69,502			83,955			(4,509	)		-6.5	%		(18,962	)		-22.6	%
Total nonperforming assets	$	119,403		$	134,630		$	145,086		$	(15,227	)		-11.3	%	$	(25,683	)		-17.7	%

LOANS PAST DUE OVER 90 DAYS (4)
LHFI	$	953		$	3,382		$	9,224		$	(2,429	)		-71.8	%	$	(8,271	)		-89.7	%

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	25,570		$	23,473		$	15,165		$	2,097			8.9	%	$	10,405			68.6	%

	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES (4)	9/30/2016			6/30/2016			9/30/2015			$ Change			% Change			$ Change			% Change
Beginning Balance	$	71,796		$	69,668		$	71,166		$	2,128			3.1	%	$	630			0.9	%
Provision for loan losses		4,284			2,596			2,514			1,688			65.0	%		1,770			70.4	%
Charge-offs		(8,279	)		(3,251	)		(11,406	)		(5,028	)	n/m				3,127			-27.4	%
Recoveries		3,070			2,783			3,333			287			10.3	%		(263	)		-7.9	%
Net charge-offs		(5,209	)		(468	)		(8,073	)		(4,741	)	n/m				2,864			-35.5	%
Ending Balance	$	70,871		$	71,796		$	65,607		$	(925	)		-1.3	%	$	5,264			8.0	%

PROVISION FOR LOAN LOSSES (4)
Alabama	$	132		$	1,189		$	(70	)	$	(1,057	)		-88.9	%	$	202		n/m
Florida		31			(364	)		(1,430	)		395		n/m				1,461		n/m
Mississippi (2)		703			(833	)		4,221			1,536		n/m				(3,518	)		-83.3	%
Tennessee (3)		151			726			(1,050	)		(575	)		-79.2	%		1,201		n/m
Texas		3,267			1,878			843			1,389			74.0	%		2,424		n/m
Total provision for loan losses	$	4,284		$	2,596		$	2,514		$	1,688			65.0	%	$	1,770			70.4	%

NET CHARGE-OFFS (4)
Alabama	$	38		$	436		$	163		$	(398	)		-91.3	%	$	(125	)		-76.7	%
Florida		(169	)		(595	)		(1,090	)		426			-71.6	%		921			-84.5	%
Mississippi (2)		2,484			(237	)		7,391			2,721		n/m				(4,907	)		-66.4	%
Tennessee (3)		74			252			448			(178	)		-70.6	%		(374	)		-83.5	%
Texas		2,782			612			1,161			2,170		n/m				1,621		n/m
Total net charge-offs	$	5,209		$	468		$	8,073		$	4,741		n/m			$	(2,864	)		-35.5	%

(1) - Excludes acquired loans and covered other real estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes acquired loans

n/m - percentage changes greater than +/- 100% are considered not meaningful

	Quarter Ended															Nine Months Ended
AVERAGE BALANCES	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			9/30/2016			9/30/2015
Securities AFS-taxable	$	2,249,109		$	2,214,040		$	2,211,479		$	2,209,801		$	2,269,763		$	2,224,964		$	2,238,822
Securities AFS-nontaxable		95,233			99,296			105,844			110,290			116,290			100,106			121,373
Securities HTM-taxable		1,115,053			1,122,463			1,142,434			1,145,397			1,151,673			1,126,608			1,138,424
Securities HTM-nontaxable		34,179			34,785			35,841			35,755			36,278			34,932			38,600
Total securities		3,493,574			3,470,584			3,495,598			3,501,243			3,574,004			3,486,610			3,537,219
Loans (including loans held for sale)		7,658,089			7,505,409			7,346,333			7,089,672			6,771,947			7,503,842			6,630,143
Acquired loans:
Noncovered loans		306,809			335,012			361,772			384,306			421,262			334,430			461,774
Covered loans		10,464			14,728			16,663			18,341			18,982			13,939			21,033
Fed funds sold and rev repos		1,352			1,263			382			1,384			1,167			1,000			650
Other earning assets		68,706			64,000			66,702			68,016			58,534			66,477			48,759
Total earning assets		11,538,994			11,390,996			11,287,450			11,062,962			10,845,896			11,406,298			10,699,578
Allowance for loan losses		(82,301	)		(83,614	)		(81,138	)		(78,652	)		(84,482	)		(82,351	)		(83,611	)
Cash and due from banks		299,670			271,135			281,912			272,562			266,174			284,295			276,151
Other assets		1,243,854			1,240,846			1,253,282			1,266,712			1,286,189			1,245,988			1,292,685
Total assets	$	13,000,217		$	12,819,363		$	12,741,506		$	12,523,584		$	12,313,777		$	12,854,230		$	12,184,803

Interest-bearing demand deposits	$	1,848,084		$	1,830,107		$	1,866,043		$	1,917,598		$	1,915,567		$	1,848,078		$	1,896,046
Savings deposits		3,101,161			3,221,850			3,188,916			2,963,318			3,059,183			3,170,389			3,178,675
Time deposits less than $100,000		961,641			978,678			994,406			1,033,233			1,072,373			978,181			1,104,339
Time deposits of $100,000 or more		705,704			699,886			683,170			687,635			712,910			696,288			749,651
Total interest-bearing deposits		6,616,590			6,730,521			6,732,535			6,601,784			6,760,033			6,692,936			6,928,711
Fed funds purchased and repos		481,071			488,512			517,180			563,424			528,232			495,535			482,740
Short-term borrowings		311,473			319,288			413,616			733,365			534,931			347,992			307,821
Long-term FHLB advances		751,095			597,269			501,144			50,078			1,195			616,994			1,217
Subordinated notes		49,988			49,980			49,972			49,964			49,955			49,980			49,947
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		8,272,073			8,247,426			8,276,303			8,060,471			7,936,202			8,265,293			7,832,292
Noninterest-bearing deposits		3,060,331			2,927,469			2,836,283			2,839,894			2,771,186			2,941,795			2,762,064
Other liabilities		136,971			131,627			134,236			141,925			137,134			134,287			136,754
Total liabilities		11,469,375			11,306,522			11,246,822			11,042,290			10,844,522			11,341,375			10,731,110
Shareholders' equity		1,530,842			1,512,841			1,494,684			1,481,294			1,469,255			1,512,855			1,453,693
Total liabilities and equity	$	13,000,217		$	12,819,363		$	12,741,506		$	12,523,584		$	12,313,777		$	12,854,230		$	12,184,803

PERIOD END BALANCES	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Cash and due from banks	$	383,945		$	322,049		$	228,498		$	277,751		$	220,052
Fed funds sold and rev repos		500			3,198			—			250			—
Securities available for sale		2,410,947			2,388,306			2,368,120			2,345,422			2,382,822
Securities held to maturity		1,143,234			1,173,204			1,168,203			1,187,818			1,178,440
Loans held for sale (LHFS)		242,097			213,546			191,028			160,189			173,679
Loans held for investment (LHFI)		7,499,204			7,405,181			7,268,022			7,091,385			6,791,643
Allowance for loan losses		(70,871	)		(71,796	)		(69,668	)		(67,619	)		(65,607	)
Net LHFI		7,428,333			7,333,385			7,198,354			7,023,766			6,726,036
Acquired loans:
Noncovered loans		291,825			325,196			349,781			372,711			400,528
Covered loans		3,912			13,839			14,974			17,700			18,645
Allowance for loan losses, acquired loans		(11,380	)		(12,480	)		(13,535	)		(11,992	)		(12,185	)
Net acquired loans		284,357			326,555			351,220			378,419			406,988
Net LHFI and acquired loans		7,712,690			7,659,940			7,549,574			7,402,185			7,133,024
Premises and equipment, net		190,930			192,732			194,453			195,656			196,558
Mortgage servicing rights		65,514			62,814			68,208			74,007			69,809
Goodwill		366,156			366,156			366,156			366,156			365,500
Identifiable intangible assets		22,366			24,058			25,751			27,546			30,129
Other real estate, excluding covered other real estate		64,993			69,502			71,806			77,177			83,955
Covered other real estate		—			388			496			1,651			2,865
FDIC indemnification asset		—			—			506			738			1,749
Other assets		558,166			554,456			542,397			562,350			551,694
Total assets	$	13,161,538		$	13,030,349		$	12,775,196		$	12,678,896		$	12,390,276

Deposits:
Noninterest-bearing	$	3,111,603		$	2,921,016		$	2,874,306		$	2,998,694		$	2,787,454
Interest-bearing		6,574,098			6,610,508			6,759,337			6,589,536			6,624,950
Total deposits		9,685,701			9,531,524			9,633,643			9,588,230			9,412,404
Fed funds purchased and repos		514,918			606,336			466,436			441,042			534,204
Short-term borrowings		412,792			360,434			411,385			412,617			709,845
Long-term FHLB advances		751,075			751,106			501,124			501,155			1,173
Subordinated notes		49,993			49,985			49,977			49,969			49,961
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
Other liabilities		150,442			145,641			142,519			150,970			144,077
Total liabilities		11,626,777			11,506,882			11,266,940			11,205,839			10,913,520
Common stock		14,090			14,090			14,093			14,076			14,076
Capital surplus		365,553			364,516			363,979			361,467			360,494
Retained earnings		1,172,193			1,157,025			1,151,757			1,142,908			1,130,766
Accum other comprehensive loss, net of tax		(17,075	)		(12,164	)		(21,573	)		(45,394	)		(28,580	)
Total shareholders' equity		1,534,761			1,523,467			1,508,256			1,473,057			1,476,756
Total liabilities and equity	$	13,161,538		$	13,030,349		$	12,775,196		$	12,678,896		$	12,390,276

	Quarter Ended													Nine Months Ended
INCOME STATEMENTS	9/30/2016			6/30/2016		3/31/2016			12/31/2015			9/30/2015		9/30/2016			9/30/2015
Interest and fees on LHFS & LHFI-FTE	$	80,649		$	77,777	$	76,235		$	74,383		$	72,951	$	234,661		$	214,155
Interest and fees on acquired loans		6,781			8,051		7,022			11,910			11,607		21,854			39,242
Interest on securities-taxable		19,351			19,402		20,086			21,149			20,264		58,839			59,581
Interest on securities-tax exempt-FTE		1,388			1,429		1,497			1,565			1,609		4,314			5,086
Interest on fed funds sold and rev repos		5			4		1			4			2		10			4
Other interest income		223			200		230			402			392		653			1,177
Total interest income-FTE		108,397			106,863		105,071			109,413			106,825		320,331			319,245
Interest on deposits		3,208			3,122		3,038			3,000			3,147		9,368			9,598
Interest on fed funds pch and repos		411			404		431			274			205		1,246			527
Other interest expense		2,603			2,428		2,389			1,987			1,811		7,420			5,074
Total interest expense		6,222			5,954		5,858			5,261			5,163		18,034			15,199
Net interest income-FTE		102,175			100,909		99,213			104,152			101,662		302,297			304,046
Provision for loan losses, LHFI		4,284			2,596		2,243			3,043			2,514		9,123			5,332
Provision for loan losses, acquired loans		691			607		1,309			997			1,256		2,607			2,428
Net interest income after provision-FTE		97,200			97,706		95,661			100,112			97,892		290,567			296,286
Service charges on deposit accounts		11,677			11,051		11,081			11,961			12,400		33,809			35,405
Insurance commissions		10,074			9,638		8,593			8,501			9,906		28,305			27,923
Wealth management		7,571			8,009		7,407			7,831			7,790		22,987			23,538
Bank card and other fees		6,756			7,436		6,918			7,156			6,964		21,110			21,142
Mortgage banking, net		7,364			6,721		8,699			4,287			7,443		22,784			25,889
Other, net		1,274			1,372		888			(466	)		1,470		3,534			(18	)
Nonint inc-excl sec gains (losses), net		44,716			44,227		43,586			39,270			45,973		132,529			133,879
Security gains (losses), net		—			—		(310	)		—			—		(310	)		—
Total noninterest income		44,716			44,227		43,276			39,270			45,973		132,219			133,879
Salaries and employee benefits		57,250			67,018		57,201			57,366			58,270		181,469			172,832
Services and fees		14,947			14,522		14,475			13,717			14,691		43,944			43,817
Net occupancy-premises		6,440			5,928		6,188			6,304			6,580		18,556			19,014
Equipment expense		6,063			5,896		6,094			6,105			5,877		18,053			17,754
FDIC assessment expense		2,911			2,959		2,811			2,614			2,559		8,681			8,114
Other real estate expense		(1,313	)		1,193		181			(518	)		3,385		61			5,421
Other expense		11,610			12,663		11,994			13,032			12,198		36,267			36,090
Total noninterest expense		97,908			110,179		98,944			98,620			103,560		307,031			303,042
Income before income taxes and tax eq adj		44,008			31,754		39,993			40,762			40,305		115,755			127,123
Tax equivalent adjustment		4,611			4,532		4,473			4,334			4,056		13,616			12,099
Income before income taxes		39,397			27,222		35,520			36,428			36,249		102,139			115,024
Income taxes		8,415			5,719		8,517			8,570			7,819		22,651			26,844
Net income	$	30,982		$	21,503	$	27,003		$	27,858		$	28,430	$	79,488		$	88,180

Per share data
Earnings per share - basic	$	0.46		$	0.32	$	0.40		$	0.41		$	0.42	$	1.18		$	1.31

Earnings per share - diluted	$	0.46		$	0.32	$	0.40		$	0.41		$	0.42	$	1.17		$	1.30

Dividends per share	$	0.23		$	0.23	$	0.23		$	0.23		$	0.23	$	0.69		$	0.69

Weighted average shares outstanding
Basic		67,625,085			67,619,571		67,609,662			67,557,991			67,557,395		67,618,131			67,546,786

Diluted		67,793,203			67,770,174		67,746,592			67,734,109			67,707,456		67,771,125			67,677,206

Period end shares outstanding		67,626,939			67,623,601		67,639,832			67,559,128			67,557,395		67,626,939			67,557,395

	Quarter Ended
NONPERFORMING ASSETS (1)	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Nonaccrual loans
Alabama	$	1,403		$	1,379		$	1,788		$	1,776		$	1,306
Florida		3,719			1,806			4,952			5,180			7,444
Mississippi (2)		41,968			54,543			56,590			40,754			44,955
Tennessee (3)		6,620			5,345			5,849			5,106			4,911
Texas		700			2,055			1,515			2,496			2,515
Total nonaccrual loans		54,410			65,128			70,694			55,312			61,131
Other real estate
Alabama		15,574			18,031			19,137			21,578			23,822
Florida		25,147			28,052			27,907			29,579			30,374
Mississippi (2)		16,659			14,435			14,511			14,312			13,180
Tennessee (3)		6,061			7,432			8,699			9,974			9,840
Texas		1,552			1,552			1,552			1,734			6,739
Total other real estate		64,993			69,502			71,806			77,177			83,955
Total nonperforming assets	$	119,403		$	134,630		$	142,500		$	132,489		$	145,086

LOANS PAST DUE OVER 90 DAYS (4)
LHFI	$	953		$	3,382		$	611		$	2,300		$	9,224

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	25,570		$	23,473		$	24,110		$	21,812		$	15,165


	Quarter Ended															Nine Months Ended
ALLOWANCE FOR LOAN LOSSES (4)	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			9/30/2016			9/30/2015
Beginning Balance	$	71,796		$	69,668		$	67,619		$	65,607		$	71,166		$	67,619		$	69,616
Provision for loan losses		4,284			2,596			2,243			3,043			2,514			9,123			5,332
Charge-offs		(8,279	)		(3,251	)		(3,363	)		(3,781	)		(11,406	)		(14,893	)		(18,688	)
Recoveries		3,070			2,783			3,169			2,750			3,333			9,022			9,347
Net charge-offs		(5,209	)		(468	)		(194	)		(1,031	)		(8,073	)		(5,871	)		(9,341	)
Ending Balance	$	70,871		$	71,796		$	69,668		$	67,619		$	65,607		$	70,871		$	65,607

PROVISION FOR LOAN LOSSES (4)
Alabama	$	132		$	1,189		$	540		$	1,453		$	(70	)	$	1,861		$	1,314
Florida		31			(364	)		(818	)		(1,357	)		(1,430	)		(1,151	)		(765	)
Mississippi (2)		703			(833	)		1,848			1,842			4,221			1,718			3,538
Tennessee (3)		151			726			138			182			(1,050	)		1,015			(101	)
Texas		3,267			1,878			535			923			843			5,680			1,346
Total provision for loan losses	$	4,284		$	2,596		$	2,243		$	3,043		$	2,514		$	9,123		$	5,332

NET CHARGE-OFFS (4)
Alabama	$	38		$	436		$	63		$	422		$	163		$	537		$	523
Florida		(169	)		(595	)		(674	)		(389	)		(1,090	)		(1,438	)		(579	)
Mississippi (2)		2,484			(237	)		(74	)		925			7,391			2,173			8,562
Tennessee (3)		74			252			8			188			448			334			337
Texas		2,782			612			871			(115	)		1,161			4,265			498
Total net charge-offs	$	5,209		$	468		$	194		$	1,031		$	8,073		$	5,871		$	9,341

(1) - Excludes acquired loans and covered other real estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes acquired loans

	Quarter Ended															Nine Months Ended
FINANCIAL RATIOS AND OTHER DATA	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			9/30/2016			9/30/2015
Return on equity		8.05	%		5.72	%		7.27	%		7.46	%		7.68	%		7.02	%		8.11	%
Return on average tangible equity		11.16	%		8.08	%		10.26	%		10.61	%		10.96	%		9.85	%		11.62	%
Return on assets		0.95	%		0.67	%		0.85	%		0.88	%		0.92	%		0.83	%		0.97	%
Interest margin - Yield - FTE		3.74	%		3.77	%		3.74	%		3.92	%		3.91	%		3.75	%		3.99	%
Interest margin - Cost		0.21	%		0.21	%		0.21	%		0.19	%		0.19	%		0.21	%		0.19	%
Net interest margin - FTE		3.52	%		3.56	%		3.54	%		3.74	%		3.72	%		3.54	%		3.80	%
Efficiency ratio (1)		63.81	%		67.20	%		66.87	%		66.03	%		67.87	%		65.95	%		66.78	%
Full-time equivalent employees		2,787			2,818			2,946			2,941			2,963

CREDIT QUALITY RATIOS (2)
Net charge-offs/average loans		0.27	%		0.03	%		0.01	%		0.06	%		0.47	%		0.10	%		0.19	%
Provision for loan losses/average loans		0.22	%		0.14	%		0.12	%		0.17	%		0.15	%		0.16	%		0.11	%
Nonperforming loans/total loans (incl LHFS)		0.70	%		0.85	%		0.95	%		0.76	%		0.88	%
Nonperforming assets/total loans (incl LHFS)		1.54	%		1.77	%		1.91	%		1.83	%		2.08	%
Nonperforming assets/total loans (incl LHFS) +ORE		1.53	%		1.75	%		1.89	%		1.81	%		2.06	%
ALL/total loans (excl LHFS)		0.95	%		0.97	%		0.96	%		0.95	%		0.97	%
ALL-commercial/total commercial loans		1.02	%		1.05	%		1.06	%		1.05	%		1.07	%
ALL-consumer/total consumer and home mortgage loans		0.68	%		0.70	%		0.65	%		0.66	%		0.67	%
ALL/nonperforming loans		130.25	%		110.24	%		98.55	%		122.25	%		107.32	%
ALL/nonperforming loans (excl specifically reviewed impaired loans)		256.56	%		231.13	%		203.24	%		210.32	%		206.72	%

CAPITAL RATIOS
Total equity/total assets		11.66	%		11.69	%		11.81	%		11.62	%		11.92	%
Tangible equity/tangible assets		8.97	%		8.97	%		9.01	%		8.79	%		9.01	%
Tangible equity/risk-weighted assets		11.85	%		11.85	%		11.84	%		11.68	%		12.24	%
Tier 1 leverage ratio		9.92	%		9.93	%		9.93	%		10.03	%		10.09	%
Common equity tier 1 capital ratio		12.35	%		12.32	%		12.41	%		12.57	%		13.00	%
Tier 1 risk-based capital ratio		12.97	%		12.94	%		13.04	%		13.21	%		13.66	%
Total risk-based capital ratio		13.82	%		13.82	%		13.92	%		14.07	%		14.66	%

STOCK PERFORMANCE
Market value-Close	$	27.56		$	24.85		$	23.03		$	23.04		$	23.17
Book value	$	22.69		$	22.53		$	22.30		$	21.80		$	21.86
Tangible book value	$	16.95		$	16.76		$	16.50		$	15.98		$	16.00

(1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of partnership tax credits, amortization of purchased intangibles, and nonroutine income and expense items.

(2) - Excludes acquired loans and covered other real estate

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity ($ in thousands):

	9/30/2016		6/30/2016		3/31/2016		12/31/2015		9/30/2015
SECURITIES AVAILABLE FOR SALE
U.S. Government agency obligations
Issued by U.S. Government agencies	$	58,234	$	61,359	$	63,814	$	68,135	$	71,282
Issued by U.S. Government sponsored agencies		283		286		286		281		23,016
Obligations of states and political subdivisions		124,641		129,285		135,655		138,609		147,794
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		36,788		29,282		25,081		25,812		26,651
Issued by FNMA and FHLMC		561,989		428,542		330,558		225,542		177,411
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		1,374,399		1,474,357		1,540,541		1,582,860		1,630,402
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		254,613		265,195		272,185		279,226		279,609
Asset-backed securities and structured financial products		—		—		—		24,957		26,657
Total securities available for sale	$	2,410,947	$	2,388,306	$	2,368,120	$	2,345,422	$	2,382,822

SECURITIES HELD TO MATURITY
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	3,636	$	31,142	$	63,085	$	101,782	$	101,578
Obligations of states and political subdivisions		52,937		53,473		54,278		55,892		56,661
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		16,183		16,415		16,590		17,363		17,783
Issued by FNMA and FHLMC		39,989		42,267		9,871		10,368		10,669
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		831,662		824,175		818,201		820,012		808,763
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		198,827		205,732		206,178		182,401		182,986
Total securities held to maturity	$	1,143,234	$	1,173,204	$	1,168,203	$	1,187,818	$	1,178,440

During 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax). The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. At September 30, 2016, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss in the accompanying balance sheet totaled approximately $25.7 million ($15.8 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of approximately 95% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

(1) Trustmark’s loss share agreement with the FDIC covering the acquired covered loans other than loans secured by 1-4 family residential properties expired on June 30, 2016. Trustmark’s loss share agreement with the FDIC covering the acquired covered loans secured by 1-4 family residential properties will expire in 2021. Effective July 1, 2016, all acquired covered loans excluding the acquired covered loans secured by 1-4 family residential properties were reclassified to acquired noncovered loans.

	September 30, 2016
LHFI - COMPOSITION BY REGION (1)	Total		Alabama		Florida		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	766,685	$	138,256	$	64,664	$	269,498	$	55,915	$	238,352
Secured by 1-4 family residential properties		1,592,453		73,672		47,011		1,350,883		103,739		17,148
Secured by nonfarm, nonresidential properties		1,916,153		264,483		164,480		890,783		135,327		461,080
Other real estate secured		317,680		22,415		3,934		144,864		17,762		128,705
Commercial and industrial loans		1,421,382		150,892		18,288		683,042		288,595		280,565
Consumer loans		170,073		20,109		3,688		126,228		17,917		2,131
State and other political subdivision loans		875,973		76,432		29,602		554,403		32,607		182,929
Other loans		438,805		37,715		18,716		300,260		61,811		20,303
Loans	$	7,499,204	$	783,974	$	350,383	$	4,319,961	$	713,673	$	1,331,213

CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION (1)
Lots	$	58,673	$	14,008	$	19,480	$	20,700	$	1,831	$	2,654
Development		49,186		6,315		7,246		20,929		619		14,077
Unimproved land		110,549		15,868		16,764		43,079		17,028		17,810
1-4 family construction		169,657		43,729		9,821		70,614		2,877		42,616
Other construction		378,620		58,336		11,353		114,176		33,560		161,195
Construction, land development and other land loans	$	766,685	$	138,256	$	64,664	$	269,498	$	55,915	$	238,352

LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION (1)
Income producing:
Retail	$	290,139	$	67,751	$	36,384	$	111,629	$	21,601	$	52,774
Office		232,940		32,747		31,247		78,121		6,212		84,613
Nursing homes/assisted living		97,159		—		—		90,351		6,808		—
Hotel/motel		192,610		46,418		21,482		50,589		25,916		48,205
Mini-storage		111,854		9,070		5,445		53,399		183		43,757
Industrial		88,693		9,498		9,236		24,944		5,254		39,761
Health care		25,162		2,587		837		21,738		—		—
Convenience stores		18,980		1,564		—		10,130		1,030		6,256
Other		70,253		5,814		10,879		22,849		2,841		27,870
Total income producing loans		1,127,790		175,449		115,510		463,750		69,845		303,236

Owner-occupied:
Office		144,046		15,775		23,995		77,336		6,971		19,969
Churches		86,329		8,785		2,125		44,829		23,370		7,220
Industrial warehouses		126,365		6,409		3,788		60,487		10,553		45,128
Health care		123,856		20,153		6,963		69,296		7,983		19,461
Convenience stores		87,992		7,466		2,375		53,596		1,204		23,351
Retail		35,657		3,983		5,127		20,749		2,048		3,750
Restaurants		32,028		3,593		1,149		21,656		3,529		2,101
Auto dealerships		14,542		8,944		42		4,393		1,163		—
Other		137,548		13,926		3,406		74,691		8,661		36,864
Total owner-occupied loans		788,363		89,034		48,970		427,033		65,482		157,844
Loans secured by nonfarm, nonresidential properties	$	1,916,153	$	264,483	$	164,480	$	890,783	$	135,327	$	461,080

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

	Quarter Ended															Nine Months Ended
	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			9/30/2016			9/30/2015
Securities – taxable		2.29	%		2.34	%		2.41	%		2.50	%		2.35	%		2.35	%		2.36	%
Securities – nontaxable		4.27	%		4.29	%		4.25	%		4.25	%		4.18	%		4.27	%		4.25	%
Securities – total		2.36	%		2.41	%		2.48	%		2.57	%		2.43	%		2.42	%		2.44	%
Loans - LHFI & LHFS		4.19	%		4.17	%		4.17	%		4.16	%		4.27	%		4.18	%		4.32	%
Acquired loans		8.50	%		9.26	%		7.46	%		11.74	%		10.46	%		8.38	%		10.87	%
Loans - total		4.36	%		4.39	%		4.33	%		4.57	%		4.65	%		4.36	%		4.76	%
FF sold & rev repo		1.47	%		1.27	%		1.05	%		1.15	%		0.68	%		1.34	%		0.82	%
Other earning assets		1.29	%		1.26	%		1.39	%		2.34	%		2.66	%		1.31	%		3.23	%
Total earning assets		3.74	%		3.77	%		3.74	%		3.92	%		3.91	%		3.75	%		3.99	%

Interest-bearing deposits		0.19	%		0.19	%		0.18	%		0.18	%		0.18	%		0.19	%		0.19	%
FF pch & repo		0.34	%		0.33	%		0.34	%		0.19	%		0.15	%		0.34	%		0.15	%
Other borrowings		0.88	%		0.95	%		0.94	%		0.88	%		1.11	%		0.92	%		1.61	%
Total interest-bearing liabilities		0.30	%		0.29	%		0.28	%		0.26	%		0.26	%		0.29	%		0.26	%

Net interest margin		3.52	%		3.56	%		3.54	%		3.74	%		3.72	%		3.54	%		3.80	%
Net interest margin excluding acquired loans		3.38	%		3.38	%		3.40	%		3.43	%		3.43	%		3.39	%		3.47	%

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding acquired loans, which equals reported net interest income-FTE excluding interest income on acquired loans, annualized, as a percent of average earning assets excluding average acquired loans. The net interest margin decreased 4 basis points during the third quarter of 2016. The decline was primarily due to a $1.4 million reduction in accretion income and recoveries on settlement of debt for acquired loans during the third quarter of 2016 compared to the second quarter of 2016.

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative ineffectiveness of $1.2 million for the quarter ended September 30, 2016 compared to a net positive ineffectiveness of $479 thousand for the quarter ended September 30, 2015.

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

In April 2016, Trustmark announced a voluntary early retirement program (ERP) for associates age 60 and above with five or more years of service. The cost of this program is reflected in a one-time, pre-tax charge of approximately $9.3 million (salaries and employee benefits expense of $9.1 million and other miscellaneous expense of $230 thousand), or $0.085 per basic share net of tax, in Trustmark’s second quarter 2016 earnings.

As a result of the ERP, during the third quarter of 2016 Trustmark realized savings of $1.9 million in salaries and employee benefits expense and incurred additional pension expense of $236 thousand, which resulted from additional settlements from pension lump sum elections.

Trustmark maintains a noncontributory tax-qualified defined benefit pension plan (Trustmark Capital Accumulation Plan, the “Plan”), in which substantially all associates who began employment prior to 2007 participate. The Plan provides retirement benefits that are based on the length of credited service and final average compensation, as defined in the Plan, and vest upon three years of service. Benefit accruals under the plan have been frozen since 2009, with the exception of certain associates covered through plans obtained in acquisitions that were subsequently merged into the Plan. Other than the associates covered through these acquired plans that were merged into the Plan, associates have not earned additional benefits, except for interest as required by law, since the Plan was frozen. Current and former associates who participate in the Plan retain their right to receive benefits that accrued before the Plan was frozen.

On July 26, 2016, the Board of Directors of Trustmark authorized the termination of the Plan, effective as of December 31, 2016. To satisfy commitments made by Trustmark to associates (collectively, the “Continuing Associates”) covered through acquired plans that were merged into the Plan, the Board also approved the spin-off of the portion of the Plan associated with the accrued benefits of the Continuing Associates into a new plan titled the Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions (the “Spin-Off Plan”), effective as of December 31, 2016, immediately prior to the termination of the Plan.

In order to terminate the Plan, in accordance with Internal Revenue Service and Pension Benefit Guaranty Corporation requirements, Trustmark is required to fully fund the Plan on a termination basis and will contribute the additional assets necessary to do so. The final distributions will be made from current plan assets and a one-time pension settlement expense will be recognized when paid by Trustmark during the second quarter of 2017. Further, as a result of Trustmark’s de-risking investment strategy for the Plan as of June 30, 2016, the expected rate of return on plan assets during the second half of 2016 will decrease from 6.0% to 2.5%. Accordingly, Trustmark's increased periodic benefit costs for the Plan during the third quarter of 2016 was $664 thousand. Participants in the Plan will have a choice of receiving a lump sum cash payment or annuity payments under a group annuity contract purchased from an insurance carrier, subject to certain exceptions. As a result of the termination of the Plan, each participant will become fully vested in his or her accrued benefits under the Plan.

The Board reserved the right to defer or revoke the termination of the Plan if circumstances change such that deferral or revocation would be warranted, but has no intent to do so at this time.

Other noninterest income consisted of the following for the periods presented ($ in thousands):

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Other noninterest expense consisted of the following for the periods presented ($ in thousands):

In addition to capital ratios defined by U.S. generally accepted accounting principles (GAAP) and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other tangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure. The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.

		Quarter Ended															Nine Months Ended
		9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			9/30/2016			9/30/2016
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,530,842		$	1,512,841		$	1,494,684		$	1,481,294		$	1,469,255		$	1,512,855		$	1,453,693
Less: Goodwill			(366,156	)		(366,156	)		(366,156	)		(365,945	)		(365,500	)		(366,156	)		(365,500	)
Identifiable intangible assets			(23,311	)		(24,961	)		(26,709	)		(28,851	)		(31,144	)		(24,988	)		(31,304	)
Total average tangible equity		$	1,141,375		$	1,121,724		$	1,101,819		$	1,086,498		$	1,072,611		$	1,121,711		$	1,056,889

PERIOD END BALANCES
Total shareholders' equity		$	1,534,761		$	1,523,467		$	1,508,256		$	1,473,057		$	1,476,756
Less: Goodwill			(366,156	)		(366,156	)		(366,156	)		(366,156	)		(365,500	)
Identifiable intangible assets			(22,366	)		(24,058	)		(25,751	)		(27,546	)		(30,129	)
Total tangible equity	(a)	$	1,146,239		$	1,133,253		$	1,116,349		$	1,079,355		$	1,081,127

TANGIBLE ASSETS
Total assets		$	13,161,538		$	13,030,349		$	12,775,196		$	12,678,896		$	12,390,276
Less: Goodwill			(366,156	)		(366,156	)		(366,156	)		(366,156	)		(365,500	)
Identifiable intangible assets			(22,366	)		(24,058	)		(25,751	)		(27,546	)		(30,129	)
Total tangible assets	(b)	$	12,773,016		$	12,640,135		$	12,383,289		$	12,285,194		$	11,994,647
Risk-weighted assets	(c)	$	9,670,302		$	9,559,816		$	9,431,021		$	9,242,902		$	8,831,355

NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	30,982		$	21,503		$	27,003		$	27,858		$	28,430		$	79,488		$	88,180
Plus: Intangible amortization net of tax			1,045			1,045			1,109			1,191			1,199			3,199			3,638
Net income adjusted for intangible amortization		$	32,027		$	22,548		$	28,112		$	29,049		$	29,629		$	82,687		$	91,818
Period end common shares outstanding	(d)		67,626,939			67,623,601			67,639,832			67,559,128			67,557,395

TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			11.16	%		8.08	%		10.26	%		10.61	%		10.96	%		9.85	%		11.62	%
Tangible equity/tangible assets	(a)/(b)		8.97	%		8.97	%		9.01	%		8.79	%		9.01	%
Tangible equity/risk-weighted assets	(a)/(c)		11.85	%		11.85	%		11.84	%		11.68	%		12.24	%
Tangible book value	(a)/(d)*1,000	$	16.95		$	16.76		$	16.50		$	15.98		$	16.00

COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,534,761		$	1,523,467		$	1,508,256		$	1,473,057		$	1,476,756
AOCI-related adjustments			17,075			12,164			21,573			45,394			28,580
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(347,800	)		(348,158	)		(348,515	)		(348,873	)		(348,587	)
Other adjustments and deductions for CET1 (2)			(9,307	)		(10,042	)		(10,861	)		(7,980	)		(8,888	)
CET1 capital	(e)		1,194,729			1,177,431			1,170,453			1,161,598			1,147,861
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Less: additional tier 1 capital deductions			(276	)		(328	)		(434	)		(1,063	)		(1,287	)
Additional tier 1 capital			59,724			59,672			59,566			58,937			58,713
Tier 1 capital		$	1,254,453		$	1,237,103		$	1,230,019		$	1,220,535		$	1,206,574

Common equity tier 1 capital ratio	(e)/(c)		12.35	%		12.32	%		12.41	%		12.57	%		13.00	%

(1) Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity

(2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAS), threshold deductions and transition adjustments, as applicable.

Trustmark discloses certain non-GAAP financial measures, including net income adjusted for significant non-routine transactions, because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views net income adjusted for significant non-routine transactions as a measure of our core operating business, which excludes the impact of the items detailed below, as these items are generally not operational in nature. This non-GAAP measure also provides another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents adjustments to net income and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented ($ in thousands, except per share data):

	Quarter Ended											Nine Months Ended
	9/30/2016						9/30/2015					9/30/2016						9/30/2015
	Amount			Diluted EPS			Amount			Diluted EPS		Amount			Diluted EPS			Amount			Diluted EPS

Net Income (GAAP)	$	30,982		$	0.457		$	28,430		$	0.420	$	79,488		$	1.173		$	88,180		$	1.303

Significant non-routine transactions (net of taxes):
Non-routine early retirement
program expense		146			0.002			—			—		5,884			0.087			—			—
Non-routine pension expense due to
de-risking strategy in Plan assets portfolio		410			0.006			—			—		410			0.006			—			—
Net Income adjusted for significant
non-routine transactions (Non-GAAP)	$	31,538		$	0.465		$	28,430		$	0.420	$	85,782		$	1.266		$	88,180		$	1.303

	Reported			Adjusted			Reported			Adjusted		Reported			Adjusted			Reported			Adjusted
	(GAAP)			(Non-GAAP)			(GAAP)			(Non-GAAP)		(GAAP)			(Non-GAAP)			(GAAP)			(Non-GAAP)

Return on equity		8.05	%		8.20	%		7.68	%	n/a			7.02	%		7.57	%		8.11	%	n/a
Return on average tangible equity		11.16	%		11.36	%		10.96	%	n/a			9.85	%		10.60	%		11.62	%	n/a
Return on assets		0.95	%		0.97	%		0.92	%	n/a			0.83	%		0.89	%		0.97	%	n/a

n/a - not applicable


Trustmark Investor Contacts:	Trustmark Media Contact:
Louis E. Greer	Melanie A. Morgan
Treasurer and	Senior Vice President
Principal Financial Officer	601-208-2979
601-208-2310


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		September 30, 2016
		($ in thousands)
		(unaudited)


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		September 30, 2016
		($ in thousands)
		(unaudited)


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		September 30, 2016
		($ in thousands except per share data)
		(unaudited)


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		September 30, 2016
		($ in thousands)
		(unaudited)

		TRUSTMARK CORPORATION AND SUBSIDIARIES
		NOTES TO CONSOLIDATED FINANCIALS
		September 30, 2016
		($ in thousands)
		(unaudited)

LHFI BY TYPE (excluding acquired loans)	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Loans secured by real estate:
Construction, land development and other land loans	$	766,685		$	718,438		$	697,500		$	824,723		$	785,472
Secured by 1-4 family residential properties		1,592,453			1,620,013			1,640,015			1,649,501			1,638,639
Secured by nonfarm, nonresidential properties		1,916,153			1,900,784			1,893,240			1,736,476			1,604,453
Other real estate secured		317,680			323,734			273,752			211,228			225,523
Commercial and industrial loans		1,421,382			1,466,511			1,368,464			1,343,211			1,270,277
Consumer loans		170,073			166,436			164,544			169,135			169,509
State and other political subdivision loans		875,973			805,401			787,049			734,615			677,539
Other loans		438,805			403,864			443,458			422,496			420,231
LHFI		7,499,204			7,405,181			7,268,022			7,091,385			6,791,643
Allowance for loan losses		(70,871	)		(71,796	)		(69,668	)		(67,619	)		(65,607	)
Net LHFI	$	7,428,333		$	7,333,385		$	7,198,354		$	7,023,766		$	6,726,036

ACQUIRED NONCOVERED LOANS BY TYPE	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Loans secured by real estate:
Construction, land development and other land loans	$	25,040		$	37,682		$	41,097		$	41,623		$	45,299
Secured by 1-4 family residential properties		72,689			73,313			81,314			86,950			96,870
Secured by nonfarm, nonresidential properties		110,606			115,989			126,177			135,626			146,614
Other real estate secured		20,903			24,015			24,374			23,860			23,816
Commercial and industrial loans		39,519			49,639			51,663			55,075			57,748
Consumer loans		3,878			4,295			5,027			5,641			6,295
Other loans		19,190			20,263			20,129			23,936			23,886
Noncovered loans		291,825			325,196			349,781			372,711			400,528
Allowance for loan losses		(11,330	)		(12,218	)		(13,212	)		(11,259	)		(11,417	)
Net noncovered loans	$	280,495		$	312,978		$	336,569		$	361,452		$	389,111

ACQUIRED COVERED LOANS BY TYPE (1)	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Loans secured by real estate:
Construction, land development and other land loans	$	—		$	334		$	387		$	1,021		$	966
Secured by 1-4 family residential properties		3,912			8,363			8,564			10,058			10,546
Secured by nonfarm, nonresidential properties		—			3,709			3,679			4,638			5,363
Other real estate secured		—			1,257			1,132			1,286			1,511
Commercial and industrial loans		—			121			1,143			624			205
Consumer loans		—			—			—			—			—
Other loans		—			55			69			73			54
Covered loans		3,912			13,839			14,974			17,700			18,645
Allowance for loan losses		(50	)		(262	)		(323	)		(733	)		(768	)
Net covered loans	$	3,862		$	13,577		$	14,651		$	16,967		$	17,877