8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

July 27, 2021

Date of Report (Date of earliest event reported)

TRUSTMARK CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi	000-03683	64-0471500
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

248 East Capitol Street, Jackson, Mississippi	39201
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code:	(601) 208-5111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	TRMK	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.  Results of Operations and Financial Condition.

On July 27, 2021, Trustmark Corporation issued a press release announcing its financial results for the period ended June 30, 2021.  A copy of this press release and the accompanying financial statements and slide presentation are attached hereto as Exhibits 99.1 and 99.2 to this report and incorporated herein by reference.

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description of Exhibits
99.1	Press release announcing financial results for the period ended June 30, 2021
99.2	Investor slide presentation for the period ended June 30, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRUSTMARK CORPORATION

BY:	/s/ Thomas C. Owens
	Thomas C. Owens
	Treasurer and Principal Financial Officer
DATE:	July 27, 2021

EX-99.1

Exhibit 99.1

News Release

Trustmark Corporation Announces Second Quarter 2021 Financial Results

Performance Reflects Continued Balance Sheet Growth, Strong Credit Quality and

Disciplined Expense Management

JACKSON, Miss. – July 27, 2021 – Trustmark Corporation (NASDAQGS: TRMK) reported net income of $48.0 million in the second quarter of 2021, representing diluted earnings per share of $0.76.  This level of earnings resulted in a return on average tangible equity of 13.96% and a return on average assets of 1.13%.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2021, to shareholders of record on September 1, 2021.

Second Quarter Highlights

• Pre-provision net revenue totaled $57.2 million, a linked-quarter increase of 38.2%.  Please refer to the Consolidated Financial Information, Note 8 – Non-GAAP Financial Measures.

• Sale of $354.2 million of Paycheck Protection Program (PPP) loans originated in 2021 resulted in accelerated recognition of $18.6 million in origination fees, which is included in net interest income

• Credit quality remained solid; nonperforming assets declined 17.9% linked-quarter

• Continued steady growth in loans held for investment (HFI) and deposits

• Noninterest expense declined 2.4% linked-quarter

Duane A. Dewey, President and CEO, stated, “Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner.  The success of these efforts is reflected in solid growth in our traditional banking and mortgage businesses as well as strong performance in our insurance and wealth management businesses.  Earlier this year, we introduced redesigned digital channels to enhance the customer experience and provide expanded sales capabilities, including on-line account openings.  Customers have embraced these offerings and we look forward to leveraging these new tools to expand relationships and profitably generate additional revenue.

“We are pleased to have been recognized during the second quarter by Forbes as the Best-in-State Bank in Mississippi in 2021, based upon independent customer satisfaction surveys.  This is affirmation that our associates are providing the financial solutions and convenience our customers’ desire,” said Dewey.    

Balance Sheet Management

• Loans HFI totaled $10.2 billion, up 1.7% from the prior quarter and 5.1% year-over-year

• Investment securities totaled $3.0 billion, up 5.3% from the prior quarter and 17.2% year-over-year

• PPP loans totaled $166.1 million, down 75.6% from the prior quarter and 82.3% year-over-year

• Deposits totaled $14.6 billion, up 1.7% from the prior quarter and 8.3% year-over-year

• Maintained strong capital position with CET1 ratio of 11.76% and total risk-based capital ratio of 14.10%

Loans HFI totaled $10.2 billion at June 30, 2021, reflecting an increase of $169.2 million, or 1.7%, linked-quarter and $493.1 million, or 5.1%, year-over-year.  The linked-quarter growth primarily reflects increases in municipal loans, 1-4 family mortgage loans, loans secured by nonfarm, nonresidential properties, and construction loans, which were offset in part by a decline in other real estate secured loans.  Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.6 billion at June 30, 2021, up $248.6 million, or 1.7%, from the prior quarter and $1.1 billion, or 8.3%, year-over-year.  Trustmark continues to maintain a strong liquidity position as loans HFI represented 69.4% of total deposits at June 30, 2021.  Noninterest-bearing deposits represented 30.4% of total deposits at the end of the second quarter.  Interest-bearing deposit costs totaled 0.19% in the second quarter, a decrease of 3 basis points from the prior quarter. The total cost of interest-bearing liabilities was 0.25% in the second quarter of 2021, a decrease of 3 basis points from the prior quarter.

During the second quarter, Trustmark repurchased $20.8 million, or approximately 630 thousand of its common shares.  During the first six months of 2021, Trustmark repurchased $25.0 million, or approximately 775 thousand of its common shares.  At June 30, 2021, Trustmark had $75.0 million in remaining authority under its existing stock repurchase program, which expires on December 31, 2021.  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 June 30, 2021, Trustmark’s tangible equity-to-tangible assets ratio was 8.31% while its total risk-based capital ratio was 14.10%.  Tangible book value per share was $22.13 at June 30, 2021, up 2.5% linked-quarter and 9.7% year-over-year.

Credit Quality

• Allowance for credit losses (ACL) represented 537.35% of nonaccrual loans, excluding individually evaluated loans at June 30, 2021

• Net charge-offs totaled $1.2 million in the second quarter

• Loans remaining under a COVID-19 related concession represented approximately 19 basis points of loans HFI at June 30, 2021

Nonaccrual loans totaled $51.4 million at June 30, 2021, down $12.1 million from the prior quarter and up $1.5 million year-over-year.  Other real estate totaled $9.4 million, reflecting a $1.2 million decrease from the prior quarter and decline of $8.8 million year-over-year.  Collectively, nonperforming assets totaled $60.9 million at June 30, 2021, reflecting a linked-quarter decrease of $13.3 million and year-over-year decline of $7.4 million.

The provision for credit losses for loans HFI was a negative $4.0 million in the second quarter.  Negative provisioning was primarily driven by decreases in individually analyzed reserves, qualitative reserves due to improvements in credit quality, and improving economic forecasts.  The provision for credit losses for off-balance sheet credit exposures was $4.5 million in the second quarter.  Off-balance sheet expense was primarily driven by an increase in off-balance sheet exposure as well as the implementation of probability of default and loss given default floors at a portfolio level to ensure appropriate risk is reflected as macroeconomic conditions improve.  Collectively, the provision for credit losses totaled $537 thousand in the second quarter compared to negative $19.9 million in the prior quarter and expense of $24.4 million in the second quarter of 2020.

Allocation of Trustmark’s $104.0 million allowance for credit losses on loans HFI represented 1.04% of commercial loans and 0.98% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.02% at June 30, 2021.  Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Total revenue increased $12.9 million, or 7.9%, linked-quarter

• Net interest income (FTE) expanded $17.2 million, or 16.3%, linked-quarter

• Excluding PPP interest and fees, net interest income (FTE) increased $836 thousand linked-quarter

• Noninterest income totaled $56.4 million, representing 32.1% of total revenue in the second quarter

• Wealth Management revenue increased 6.3% linked-quarter and 18.2% year-over-year

Revenue in the second quarter totaled $175.8 million, an increase of $12.9 million, or 7.9%, from the prior quarter and $1.3 million, or 0.8%, from the same quarter in the prior year.  The linked-quarter increase reflects $18.6 million of PPP loan origination fees attributable to the previously announced sale of $354.2 million in PPP loans during the second quarter.

Net interest income (FTE) in the second quarter totaled $122.4 million, resulting in a net interest margin of 3.16%, up 35 basis points from the prior quarter.  The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.94% during the second quarter, a decrease of 5 basis points when compared to the prior quarter.  Continued low interest rates decreased the yield on the loans HFI and held for sale portfolio as well as the securities portfolio, and were partially offset by lower costs on interest-bearing deposits.

Noninterest income in the second quarter totaled $56.4 million, a decrease of $4.2 million from the prior quarter and $13.1 million year-over-year.  The linked quarter and year-over-year changes are principally attributable to lower mortgage banking revenue.  Mortgage loan production in the second quarter totaled $736.8 million, down 3.9% from the prior quarter and 13.7% year-over-year.  Mortgage banking revenue totaled $17.3 million in the second quarter, a decrease of $3.5 million from the prior quarter and $16.4 million year-over-year. The linked-quarter decline is principally attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market.

Wealth management revenue totaled $8.9 million in the second quarter, an increase of $530 thousand, or 6.3%, from the prior quarter and $1.4 million, or 18.2%, year-over-year.  The growth is attributable to increased trust and investment and brokerage business.  Insurance revenue totaled $12.2 million in the second quarter, down 1.8%, or $228 thousand, from the prior quarter due to seasonality and up 2.9%, or $349 thousand, year-over-year.  Service charges on deposit accounts increased $257 thousand, or 3.5%, from the prior quarter and $1.2 million, or 19.0%, year-over-year.  Bank card and other fees decreased $1.2 million from the prior quarter and increased $584 thousand year-over-year.  The linked-quarter decline reflects reduced customer derivative revenue.  

Noninterest Expense

• Noninterest expense totaled $118.7 million in the second quarter, down $2.9 million, or 2.4%, from the prior quarter

• Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses and charitable contributions resulting in state tax credits, declined $3.9 million, or 3.3%, from the prior quarter; please refer to the Consolidated Financial Information, Note 8 – Non-GAAP Financial Measures

• Efficiency ratio improved to 64.31% in the second quarter

Adjusted noninterest expense in the second quarter was $116.3 million, down $3.9 million, or 3.3%, from the prior quarter.  Salaries and employee benefits decreased $1.0 million linked-quarter principally due to the seasonality of payroll taxes in the prior quarter.  Services and fees decreased $715 thousand and total equipment expense declined $677 thousand in the second quarter compared to the prior quarter.  Total other expense in the second quarter declined $1.4 million, or 9.6%, from the prior quarter. Other real estate expense, net totaled $1.5 million in the second quarter compared to $324 thousand in the prior quarter, reflecting increased valuation allowances on other real estate.

“We continued to implement strategic initiatives designed to improve efficiency, accelerate growth and provide innovation while maintaining solid risk management and our corporate culture,” said Dewey.  During the first six months of 2021, Trustmark continued to realign delivery channels and closed nine offices reflecting changing customer preferences and the continued migration to mobile and digital banking channels.  Additionally, Trustmark opened three new offices, one each in the Birmingham, AL MSA, Jackson, MS MSA, and Memphis, TN MSA. Each of these offices features a design that integrates myTeller^® interactive teller machine (ITM) technology as well as provides enhanced areas for customer interaction.  

“In addition to branch realignment initiatives, we recently announced a voluntary early retirement program for eligible associates, who have until July 31, 2021, to elect to participate in the program.  Most participants are expected to retire effective August 31, 2021.  Based upon participation, we plan to redesign workflows and restructure the organization to leverage investments in technology, enhance the customer experience and improve efficiency.  We anticipate providing additional information regarding this program in our third quarter earnings release,” said Dewey.

“Trustmark has a program to systematically invest in and upgrade technology.  In recent years, investments in state-of-the-art technology were made in Trustmark’s insurance, wealth management and mortgage banking areas as well as in human resources and accounting systems.  We also made significant upgrades to our mobile banking platform, ITM network and digital marketing programs.  Collectively, these investments have well-positioned Trustmark for additional growth and expansion.  Over the last 36 months, we have been working toward the implementation of a new core banking system for consumer and commercial loans, deposits and customer information.  This implementation, which we have named Core Optimization for Relationship Enhancement (CORE), is a multi-year project, the first phase of which will occur later this year.  These investments will better position Trustmark for continued growth, enhance efficiency, and improve the customers’ experience,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 28, 2021 at 8:30 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.  A replay of the conference call will also be available through Wednesday, August 11, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10158119.

Trustmark is a financial services company providing banking and financial solutions through 180 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

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,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “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 (SEC) 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.  Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

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, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, 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, levels of and volatility in 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 related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity 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, 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,  pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

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.

Trustmark Investor Contacts:	Trustmark Media Contact:
Thomas C. Owens	Melanie A. Morgan
Treasurer and	Senior Vice President
Principal Financial Officer	601-208-2979
601-208-7853

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands)
	(unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2021			3/31/2021			6/30/2020			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	2,339,662		$	2,098,089		$	1,724,320		$	241,573			11.5	%	$	615,342			35.7	%
Securities AFS-nontaxable		5,174			5,190			9,827			(16	)		-0.3	%		(4,653	)		-47.3	%
Securities HTM-taxable		441,688			489,260			655,085			(47,572	)		-9.7	%		(213,397	)		-32.6	%
Securities HTM-nontaxable		10,958			24,070			25,538			(13,112	)		-54.5	%		(14,580	)		-57.1	%
Total securities		2,797,482			2,616,609			2,414,770			180,873			6.9	%		382,712			15.8	%
Paycheck protection program loans (PPP)		648,222			598,139			764,416			50,083			8.4	%		(116,194	)		-15.2	%
Loans (includes loans held for sale)		10,315,927			10,316,319			9,908,132			(392	)		0.0	%		407,795			4.1	%
Fed funds sold and reverse repurchases		55			136			113			(81	)		-59.6	%		(58	)		-51.3	%
Other earning assets		1,750,385			1,667,906			854,642			82,479			4.9	%		895,743		n/m
Total earning assets		15,512,071			15,199,109			13,942,073			312,962			2.1	%		1,569,998			11.3	%
Allowance for credit losses (ACL), loans held    for investment (LHFI)		(112,346	)		(119,557	)		(103,006	)		7,211			6.0	%		(9,340	)		-9.1	%
Other assets		1,622,388			1,601,250			1,685,317			21,138			1.3	%		(62,929	)		-3.7	%
Total assets	$	17,022,113		$	16,680,802		$	15,524,384		$	341,311			2.0	%	$	1,497,729			9.6	%
Interest-bearing demand deposits	$	4,056,910		$	3,743,651		$	3,832,372		$	313,259			8.4	%	$	224,538			5.9	%
Savings deposits		4,627,180			4,659,037			4,180,540			(31,857	)		-0.7	%		446,640			10.7	%
Time deposits		1,301,896			1,371,830			1,578,737			(69,934	)		-5.1	%		(276,841	)		-17.5	%
Total interest-bearing deposits		9,985,986			9,774,518			9,591,649			211,468			2.2	%		394,337			4.1	%
Fed funds purchased and repurchases		174,620			166,909			105,696			7,711			4.6	%		68,924			65.2	%
Other borrowings		132,199			166,926			107,533			(34,727	)		-20.8	%		24,666			22.9	%
Subordinated notes		122,897			122,875			—			22			0.0	%		122,897		n/m
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Total interest-bearing liabilities		10,477,558			10,293,084			9,866,734			184,474			1.8	%		610,824			6.2	%
Noninterest-bearing deposits		4,512,268			4,363,559			3,645,761			148,709			3.4	%		866,507			23.8	%
Other liabilities		251,582			264,808			346,173			(13,226	)		-5.0	%		(94,591	)		-27.3	%
Total liabilities		15,241,408			14,921,451			13,858,668			319,957			2.1	%		1,382,740			10.0	%
Shareholders' equity		1,780,705			1,759,351			1,665,716			21,354			1.2	%		114,989			6.9	%
Total liabilities and equity	$	17,022,113		$	16,680,802		$	15,524,384		$	341,311			2.0	%	$	1,497,729			9.6	%
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands)
	(unaudited)

										Linked Quarter						Year over Year
PERIOD END BALANCES	6/30/2021			3/31/2021			6/30/2020			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	2,267,224		$	1,774,541		$	1,026,640		$	492,683			27.8	%	$	1,240,584		n/m
Fed funds sold and reverse repurchases		—			—			—			—		n/m				—		n/m
Securities available for sale		2,548,739			2,337,676			1,884,153			211,063			9.0	%		664,586			35.3	%
Securities held to maturity		433,012			493,738			660,048			(60,726	)		-12.3	%		(227,036	)		-34.4	%
PPP loans		166,119			679,725			939,783			(513,606	)		-75.6	%		(773,664	)		-82.3	%
Loans held for sale (LHFS)		332,132			412,999			355,089			(80,867	)		-19.6	%		(22,957	)		-6.5	%
Loans held for investment (LHFI)		10,152,869			9,983,704			9,659,806			169,165			1.7	%		493,063			5.1	%
ACL LHFI		(104,032	)		(109,191	)		(119,188	)		5,159			-4.7	%		15,156			-12.7	%
Net LHFI		10,048,837			9,874,513			9,540,618			174,324			1.8	%		508,219			5.3	%
Premises and equipment, net		200,970			199,098			190,567			1,872			0.9	%		10,403			5.5	%
Mortgage servicing rights		80,764			83,035			57,811			(2,271	)		-2.7	%		22,953			39.7	%
Goodwill		384,237			384,237			385,270			—			0.0	%		(1,033	)		-0.3	%
Identifiable intangible assets		6,170			6,724			8,895			(554	)		-8.2	%		(2,725	)		-30.6	%
Other real estate		9,439			10,651			18,276			(1,212	)		-11.4	%		(8,837	)		-48.4	%
Operating lease right-of-use assets		33,201			33,704			29,819			(503	)		-1.5	%		3,382			11.3	%
Other assets		587,288			587,672			595,110			(384	)		-0.1	%		(7,822	)		-1.3	%
Total assets	$	17,098,132		$	16,878,313		$	15,692,079		$	219,819			1.3	%	$	1,406,053			9.0	%
Deposits:
Noninterest-bearing	$	4,446,991		$	4,705,991		$	3,880,540		$	(259,000	)		-5.5	%	$	566,451			14.6	%
Interest-bearing		10,185,093			9,677,449			9,624,933			507,644			5.2	%		560,160			5.8	%
Total deposits		14,632,084			14,383,440			13,505,473			248,644			1.7	%		1,126,611			8.3	%
Fed funds purchased and repurchases		157,176			160,991			70,255			(3,815	)		-2.4	%		86,921		n/m
Other borrowings		117,223			145,994			152,860			(28,771	)		-19.7	%		(35,637	)		-23.3	%
Subordinated notes		122,932			122,877			—			55			0.0	%		122,932		n/m
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
ACL on off-balance sheet credit exposures		33,733			29,205			42,663			4,528			15.5	%		(8,930	)		-20.9	%
Operating lease liabilities		34,959			35,389			31,076			(430	)		-1.2	%		3,883			12.5	%
Other liabilities		158,860			178,856			153,952			(19,996	)		-11.2	%		4,908			3.2	%
Total liabilities		15,318,823			15,118,608			14,018,135			200,215			1.3	%		1,300,688			9.3	%
Common stock		13,079			13,209			13,214			(130	)		-1.0	%		(135	)		-1.0	%
Capital surplus		210,420			229,892			230,613			(19,472	)		-8.5	%		(20,193	)		-8.8	%
Retained earnings		1,566,451			1,533,110			1,419,552			33,341			2.2	%		146,899			10.3	%
Accum other comprehensive income (loss),    net of tax		(10,641	)		(16,506	)		10,565			5,865			35.5	%		(21,206	)	n/m
Total shareholders' equity		1,779,309			1,759,705			1,673,944			19,604			1.1	%		105,365			6.3	%
Total liabilities and equity	$	17,098,132		$	16,878,313		$	15,692,079		$	219,819			1.3	%	$	1,406,053			9.0	%
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands except per share data)
	(unaudited)

	Quarter Ended								Linked Quarter						Year over Year
INCOME STATEMENTS	6/30/2021			3/31/2021			6/30/2020		$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	93,698		$	93,394		$	99,300	$	304			0.3	%	$	(5,602	)		-5.6	%
Interest and fees on PPP loans		25,555			9,241			5,044		16,314		n/m				20,511		n/m
Interest on securities-taxable		8,991			8,938			12,762		53			0.6	%		(3,771	)		-29.5	%
Interest on securities-tax exempt-FTE		149			290			315		(141	)		-48.6	%		(166	)		-52.7	%
Interest on fed funds sold and reverse repurchases		—			—			—		—		n/m				—		n/m
Other interest income		489			503			239		(14	)		-2.8	%		250		n/m
Total interest income-FTE		128,882			112,366			117,660		16,516			14.7	%		11,222			9.5	%
Interest on deposits		4,630			5,223			8,730		(593	)		-11.4	%		(4,100	)		-47.0	%
Interest on fed funds purchased and repurchases		59			56			42		3			5.4	%		17			40.5	%
Other interest expense		1,813			1,857			881		(44	)		-2.4	%		932		n/m
Total interest expense		6,502			7,136			9,653		(634	)		-8.9	%		(3,151	)		-32.6	%
Net interest income-FTE		122,380			105,230			108,007		17,150			16.3	%		14,373			13.3	%
Provision for credit losses, LHFI		(3,991	)		(10,501	)		18,185		6,510			62.0	%		(22,176	)	n/m
Provision for credit losses, off-balance sheet    credit exposures (1)		4,528			(9,367	)		6,242		13,895		n/m				(1,714	)		-27.5	%
Net interest income after provision-FTE		121,843			125,098			83,580		(3,255	)		-2.6	%		38,263			45.8	%
Service charges on deposit accounts		7,613			7,356			6,397		257			3.5	%		1,216			19.0	%
Bank card and other fees		8,301			9,472			7,717		(1,171	)		-12.4	%		584			7.6	%
Mortgage banking, net		17,333			20,804			33,745		(3,471	)		-16.7	%		(16,412	)		-48.6	%
Insurance commissions		12,217			12,445			11,868		(228	)		-1.8	%		349			2.9	%
Wealth management		8,946			8,416			7,571		530			6.3	%		1,375			18.2	%
Other, net		2,001			2,090			2,213		(89	)		-4.3	%		(212	)		-9.6	%
Total noninterest income		56,411			60,583			69,511		(4,172	)		-6.9	%		(13,100	)		-18.8	%
Salaries and employee benefits		70,115			71,162			66,107		(1,047	)		-1.5	%		4,008			6.1	%
Services and fees		21,769			22,484			20,567		(715	)		-3.2	%		1,202			5.8	%
Net occupancy-premises		6,578			6,795			6,587		(217	)		-3.2	%		(9	)		-0.1	%
Equipment expense		5,567			6,244			5,620		(677	)		-10.8	%		(53	)		-0.9	%
Other real estate expense, net		1,511			324			271		1,187		n/m				1,240		n/m
Other expense		13,139			14,539			13,265		(1,400	)		-9.6	%		(126	)		-0.9	%
Total noninterest expense		118,679			121,548			112,417		(2,869	)		-2.4	%		6,262			5.6	%
Income before income taxes and tax eq adj		59,575			64,133			40,674		(4,558	)		-7.1	%		18,901			46.5	%
Tax equivalent adjustment		2,957			2,894			3,007		63			2.2	%		(50	)		-1.7	%
Income before income taxes		56,618			61,239			37,667		(4,621	)		-7.5	%		18,951			50.3	%
Income taxes		8,637			9,277			5,517		(640	)		-6.9	%		3,120			56.6	%
Net income	$	47,981		$	51,962		$	32,150	$	(3,981	)		-7.7	%	$	15,831			49.2	%
Per share data
Earnings per share - basic	$	0.76		$	0.82		$	0.51	$	(0.06	)		-7.3	%	$	0.25			49.0	%
Earnings per share - diluted	$	0.76		$	0.82		$	0.51	$	(0.06	)		-7.3	%	$	0.25			49.0	%
Dividends per share	$	0.23		$	0.23		$	0.23		—			0.0	%		—			0.0	%
Weighted average shares outstanding
Basic		63,214,593			63,395,911			63,416,307
Diluted		63,409,683			63,562,503			63,555,065
Period end shares outstanding		62,773,226			63,394,522			63,422,439
(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures.  Prior periods have been reclassified accordingly.
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands)
	(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS (1)	6/30/2021			3/31/2021			6/30/2020			$ Change			% Change			$ Change			% Change
Nonaccrual LHFI
Alabama	$	8,952		$	9,161		$	4,392		$	(209	)		-2.3	%	$	4,560		n/m
Florida		467			607			687			(140	)		-23.1	%		(220	)		-32.0	%
Mississippi (2)		23,422			35,534			37,884			(12,112	)		-34.1	%		(14,462	)		-38.2	%
Tennessee (3)		10,751			12,451			6,125			(1,700	)		-13.7	%		4,626			75.5	%
Texas		7,856			5,761			906			2,095			36.4	%		6,950		n/m
Total nonaccrual LHFI		51,448			63,514			49,994			(12,066	)		-19.0	%		1,454			2.9	%
Other real estate
Alabama		2,830			3,085			4,766			(255	)		-8.3	%		(1,936	)		-40.6	%
Florida		—			—			3,665			—		n/m				(3,665	)		-100.0	%
Mississippi (2)		6,550			7,566			9,408			(1,016	)		-13.4	%		(2,858	)		-30.4	%
Tennessee (3)		59			—			437			59		n/m				(378	)		-86.5	%
Texas		—			—			—			—		n/m				—		n/m
Total other real estate		9,439			10,651			18,276			(1,212	)		-11.4	%		(8,837	)		-48.4	%
Total nonperforming assets	$	60,887		$	74,165		$	68,270		$	(13,278	)		-17.9	%	$	(7,383	)		-10.8	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	423		$	2,593		$	807		$	(2,170	)		-83.7	%	$	(384	)		-47.6	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	81,538		$	109,566		$	56,269		$	(28,028	)		-25.6	%	$	25,269			44.9	%
	Quarter Ended									Linked Quarter						Year over Year
ACL LHFI(1)	6/30/2021			3/31/2021			6/30/2020			$ Change			% Change			$ Change			% Change
Beginning Balance	$	109,191		$	117,306		$	100,564		$	(8,115	)		-6.9	%	$	8,627			8.6	%
CECL adoption adjustments:
LHFI		—			—			—			—		n/m				—		n/m
Acquired loan transfers		—			—			—			—		n/m				—		n/m
Provision for credit losses, LHFI		(3,991	)		(10,501	)		18,185			6,510			62.0	%		(22,176	)	n/m
Charge-offs		(4,828	)		(1,245	)		(1,870	)		(3,583	)	n/m				(2,958	)	n/m
Recoveries		3,660			3,631			2,309			29			0.8	%		1,351			58.5	%
Net (charge-offs) recoveries		(1,168	)		2,386			439			(3,554	)	n/m				(1,607	)	n/m
Ending Balance	$	104,032		$	109,191		$	119,188		$	(5,159	)		-4.7	%	$	(15,156	)		-12.7	%
NET (CHARGE-OFFS) RECOVERIES(1)
Alabama	$	203		$	102		$	526		$	101			99.0	%	$	(323	)		-61.4	%
Florida		167			30			(127	)		137		n/m				294		n/m
Mississippi (2)		(3,071	)		2,207			(86	)		(5,278	)	n/m				(2,985	)	n/m
Tennessee (3)		1,031			47			66			984		n/m				965		n/m
Texas		502			—			60			502		n/m				442		n/m
Total net (charge-offs) recoveries	$	(1,168	)	$	2,386		$	439		$	(3,554	)	n/m			$	(1,607	)	n/m
(1)  Excludes PPP loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands)
	(unaudited)

	Quarter Ended															Six Months Ended
AVERAGE BALANCES	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Securities AFS-taxable	$	2,339,662		$	2,098,089		$	1,902,162		$	1,857,050		$	1,724,320		$	2,219,543		$	1,672,371
Securities AFS-nontaxable		5,174			5,190			5,206			5,973			9,827			5,182			15,942
Securities HTM-taxable		441,688			489,260			550,563			608,585			655,085			465,343			674,913
Securities HTM-nontaxable		10,958			24,070			24,752			25,508			25,538			17,478			25,606
Total securities		2,797,482			2,616,609			2,482,683			2,497,116			2,414,770			2,707,546			2,388,832
PPP loans		648,222			598,139			875,098			941,456			764,416			623,319			382,208
Loans (includes loans held for sale)		10,315,927			10,316,319			10,231,671			10,162,379			9,908,132			10,316,122			9,793,153
Fed funds sold and reverse repurchases		55			136			303			301			113			95			139
Other earning assets		1,750,385			1,667,906			860,540			722,917			854,642			1,709,373			520,985
Total earning assets		15,512,071			15,199,109			14,450,295			14,324,169			13,942,073			15,356,455			13,085,317
ACL LHFI		(112,346	)		(119,557	)		(124,088	)		(121,842	)		(103,006	)		(115,932	)		(94,011	)
Other assets		1,622,388			1,601,250			1,620,694			1,564,825			1,685,317			1,611,877			1,592,019
Total assets	$	17,022,113		$	16,680,802		$	15,946,901		$	15,767,152		$	15,524,384		$	16,852,400		$	14,583,325
Interest-bearing demand deposits	$	4,056,910		$	3,743,651		$	3,649,590		$	3,669,249		$	3,832,372		$	3,901,146		$	3,508,253
Savings deposits		4,627,180			4,659,037			4,350,783			4,416,046			4,180,540			4,643,020			3,913,738
Time deposits		1,301,896			1,371,830			1,436,677			1,507,348			1,578,737			1,336,670			1,598,022
Total interest-bearing deposits		9,985,986			9,774,518			9,437,050			9,592,643			9,591,649			9,880,836			9,020,013
Fed funds purchased and repurchases		174,620			166,909			170,474			84,077			105,696			170,786			176,605
Other borrowings		132,199			166,926			173,525			167,262			107,533			149,467			96,406
Subordinated notes		122,897			122,875			42,828			—			—			122,886			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		10,477,558			10,293,084			9,885,733			9,905,838			9,866,734			10,385,831			9,354,880
Noninterest-bearing deposits		4,512,268			4,363,559			4,100,849			3,921,867			3,645,761			4,438,324			3,278,356
Other liabilities		251,582			264,808			235,284			244,544			346,173			258,158			297,196
Total liabilities		15,241,408			14,921,451			14,221,866			14,072,249			13,858,668			15,082,313			12,930,432
Shareholders' equity		1,780,705			1,759,351			1,725,035			1,694,903			1,665,716			1,770,087			1,652,893
Total liabilities and equity	$	17,022,113		$	16,680,802		$	15,946,901		$	15,767,152		$	15,524,384		$	16,852,400		$	14,583,325

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands)
	(unaudited)

PERIOD END BALANCES	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Cash and due from banks	$	2,267,224		$	1,774,541		$	1,952,504		$	564,588		$	1,026,640
Fed funds sold and reverse repurchases		—			—			50			50			—
Securities available for sale		2,548,739			2,337,676			1,991,815			1,922,728			1,884,153
Securities held to maturity		433,012			493,738			538,072			611,280			660,048
PPP loans		166,119			679,725			610,134			944,270			939,783
LHFS		332,132			412,999			446,951			485,103			355,089
LHFI		10,152,869			9,983,704			9,824,524			9,847,728			9,659,806
ACL LHFI		(104,032	)		(109,191	)		(117,306	)		(122,010	)		(119,188	)
Net LHFI		10,048,837			9,874,513			9,707,218			9,725,718			9,540,618
Premises and equipment, net		200,970			199,098			194,278			192,722			190,567
Mortgage servicing rights		80,764			83,035			66,464			61,613			57,811
Goodwill		384,237			384,237			385,270			385,270			385,270
Identifiable intangible assets		6,170			6,724			7,390			8,142			8,895
Other real estate		9,439			10,651			11,651			16,248			18,276
Operating lease right-of-use assets		33,201			33,704			30,901			30,508			29,819
Other assets		587,288			587,672			609,142			609,922			595,110
Total assets	$	17,098,132		$	16,878,313		$	16,551,840		$	15,558,162		$	15,692,079
Deposits:
Noninterest-bearing	$	4,446,991		$	4,705,991		$	4,349,010		$	3,964,023		$	3,880,540
Interest-bearing		10,185,093			9,677,449			9,699,754			9,258,390			9,624,933
Total deposits		14,632,084			14,383,440			14,048,764			13,222,413			13,505,473
Fed funds purchased and repurchases		157,176			160,991			164,519			153,834			70,255
Other borrowings		117,223			145,994			168,252			178,599			152,860
Subordinated notes		122,932			122,877			122,921			—			—
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures		33,733			29,205			38,572			39,659			42,663
Operating lease liabilities		34,959			35,389			32,290			31,838			31,076
Other liabilities		158,860			178,856			173,549			159,922			153,952
Total liabilities		15,318,823			15,118,608			14,810,723			13,848,121			14,018,135
Common stock		13,079			13,209			13,215			13,215			13,214
Capital surplus		210,420			229,892			233,120			231,836			230,613
Retained earnings		1,566,451			1,533,110			1,495,833			1,459,306			1,419,552
Accum other comprehensive income (loss), net of tax		(10,641	)		(16,506	)		(1,051	)		5,684			10,565
Total shareholders' equity		1,779,309			1,759,705			1,741,117			1,710,041			1,673,944
Total liabilities and equity	$	17,098,132		$	16,878,313		$	16,551,840		$	15,558,162		$	15,692,079

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	June 30, 2021
	($ in thousands except per share data)
	(unaudited)

	Quarter Ended														Six Months Ended
INCOME STATEMENTS	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020		6/30/2021			6/30/2020
Interest and fees on LHFS & LHFI-FTE	$	93,698		$	93,394		$	96,453		$	97,429		$	99,300	$	187,092		$	208,657
Interest and fees on PPP loans		25,555			9,241			14,870			6,729			5,044		34,796			5,044
Interest on securities-taxable		8,991			8,938			9,998			12,542			12,762		17,929			25,710
Interest on securities-tax exempt-FTE		149			290			293			301			315		439			772
Interest on fed funds sold and reverse repurchases		—			—			—			1			—		—			—
Other interest income		489			503			249			331			239		992			979
Total interest income-FTE		128,882			112,366			121,863			117,333			117,660		241,248			241,162
Interest on deposits		4,630			5,223			6,363			7,437			8,730		9,853			23,687
Interest on fed funds purchased and repurchases		59			56			56			32			42		115			667
Other interest expense		1,813			1,857			1,127			688			881		3,670			1,741
Total interest expense		6,502			7,136			7,546			8,157			9,653		13,638			26,095
Net interest income-FTE		122,380			105,230			114,317			109,176			108,007		227,610			215,067
Provision for credit losses, LHFI		(3,991	)		(10,501	)		(4,413	)		1,760			18,185		(14,492	)		38,766
Provision for credit losses, off-balance sheet    credit exposures (1)		4,528			(9,367	)		(1,087	)		(3,004	)		6,242		(4,839	)		13,025
Net interest income after provision-FTE		121,843			125,098			119,817			110,420			83,580		246,941			163,276
Service charges on deposit accounts		7,613			7,356			8,283			7,577			6,397		14,969			16,429
Bank card and other fees		8,301			9,472			9,107			8,843			7,717		17,773			13,072
Mortgage banking, net		17,333			20,804			28,155			36,439			33,745		38,137			61,228
Insurance commissions		12,217			12,445			10,196			11,562			11,868		24,662			23,418
Wealth management		8,946			8,416			7,838			7,679			7,571		17,362			16,108
Other, net		2,001			2,090			2,538			1,601			2,213		4,091			4,520
Total noninterest income		56,411			60,583			66,117			73,701			69,511		116,994			134,775
Salaries and employee benefits		70,115			71,162			69,660			67,342			66,107		141,277			135,255
Services and fees		21,769			22,484			22,327			20,992			20,567		44,253			40,497
Net occupancy-premises		6,578			6,795			6,616			7,000			6,587		13,373			12,873
Equipment expense		5,567			6,244			6,213			5,828			5,620		11,811			11,236
Other real estate expense, net		1,511			324			(812	)		1,203			271		1,835			1,565
Other expense		13,139			14,539			15,890			14,598			13,265		27,678			28,018
Total noninterest expense		118,679			121,548			119,894			116,963			112,417		240,227			229,444
Income before income taxes and tax eq adj		59,575			64,133			66,040			67,158			40,674		123,708			68,607
Tax equivalent adjustment		2,957			2,894			2,939			2,969			3,007		5,851			6,115
Income before income taxes		56,618			61,239			63,101			64,189			37,667		117,857			62,492
Income taxes		8,637			9,277			11,884			9,749			5,517		17,914			8,124
Net income	$	47,981		$	51,962		$	51,217		$	54,440		$	32,150	$	99,943		$	54,368
Per share data
Earnings per share - basic	$	0.76		$	0.82		$	0.81		$	0.86		$	0.51	$	1.58		$	0.86
Earnings per share - diluted	$	0.76		$	0.82		$	0.81		$	0.86		$	0.51	$	1.57		$	0.85
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23	$	0.46		$	0.46
Weighted average shares outstanding
Basic		63,214,593			63,395,911			63,424,219			63,422,692			63,416,307		63,304,751			63,586,468
Diluted		63,409,683			63,562,503			63,616,767			63,581,964			63,555,065		63,465,515			63,721,728
Period end shares outstanding		62,773,226			63,394,522			63,424,526			63,423,820			63,422,439		62,773,226			63,422,439
(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures.  Prior periods have been reclassified accordingly.

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL  INFORMATION
	June 30, 2021
	($ in thousands)
	(unaudited)

	Quarter Ended
NONPERFORMING ASSETS (1)	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Nonaccrual LHFI
Alabama	$	8,952		$	9,161		$	9,221		$	3,860		$	4,392
Florida		467			607			572			617			687
Mississippi (2)		23,422			35,534			35,015			35,617			37,884
Tennessee (3)		10,751			12,451			12,572			13,041			6,125
Texas		7,856			5,761			5,748			721			906
Total nonaccrual LHFI		51,448			63,514			63,128			53,856			49,994
Other real estate
Alabama		2,830			3,085			3,271			3,725			4,766
Florida		—			—			—			3,665			3,665
Mississippi (2)		6,550			7,566			8,330			8,718			9,408
Tennessee (3)		59			—			50			140			437
Texas		—			—			—			—			—
Total other real estate		9,439			10,651			11,651			16,248			18,276
Total nonperforming assets	$	60,887		$	74,165		$	74,779		$	70,104		$	68,270
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	423		$	2,593		$	1,576		$	782		$	807
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	81,538		$	109,566		$	119,409		$	121,281		$	56,269
	Quarter Ended															Six Months Ended
ACL LHFI(1)	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Beginning Balance	$	109,191		$	117,306		$	122,010		$	119,188		$	100,564		$	117,306		$	84,277
CECL adoption adjustments:
LHFI		—			—			—			—			—			—			(3,039	)
Acquired loan transfers		—			—			—			—			—			—			1,822
Provision for credit losses, LHFI		(3,991	)		(10,501	)		(4,413	)		1,760			18,185			(14,492	)		38,766
Charge-offs		(4,828	)		(1,245	)		(2,797	)		(1,263	)		(1,870	)		(6,073	)		(7,415	)
Recoveries		3,660			3,631			2,506			2,325			2,309			7,291			4,777
Net (charge-offs) recoveries		(1,168	)		2,386			(291	)		1,062			439			1,218			(2,638	)
Ending Balance	$	104,032		$	109,191		$	117,306		$	122,010		$	119,188		$	104,032		$	119,188
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	203		$	102		$	(1,011	)	$	117		$	526		$	305		$	(554	)
Florida		167			30			66			387			(127	)		197			(63	)
Mississippi (2)		(3,071	)		2,207			332			442			(86	)		(864	)		40
Tennessee (3)		1,031			47			303			42			66			1,078			(2,120	)
Texas		502			—			19			74			60			502			59
Total net (charge-offs) recoveries	$	(1,168	)	$	2,386		$	(291	)	$	1,062		$	439		$	1,218		$	(2,638	)
(1)  Excludes PPP loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL  INFORMATION
	June 30, 2021
	(unaudited)

	Quarter Ended															Six Months Ended
FINANCIAL RATIOS AND OTHER DATA	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Return on average equity		10.81	%		11.98	%		11.81	%		12.78	%		7.76	%		11.39	%		6.61	%
Return on average tangible equity		13.96	%		15.56	%		15.47	%		16.82	%		10.32	%		14.75	%		8.84	%
Return on average assets		1.13	%		1.26	%		1.28	%		1.37	%		0.83	%		1.20	%		0.75	%
Interest margin - Yield - FTE		3.33	%		3.00	%		3.35	%		3.26	%		3.39	%		3.17	%		3.71	%
Interest margin - Cost		0.17	%		0.19	%		0.21	%		0.23	%		0.28	%		0.18	%		0.40	%
Net interest margin - FTE		3.16	%		2.81	%		3.15	%		3.03	%		3.12	%		2.99	%		3.31	%
Efficiency ratio (1)		64.31	%		71.84	%		65.59	%		62.19	%		62.13	%		67.93	%		62.81	%
Full-time equivalent employees		2,772			2,793			2,797			2,807			2,798
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		0.05	%		-0.09	%		0.01	%		-0.04	%		-0.02	%		-0.02	%		0.05	%
Provision for credit losses, LHFI / average loans		-0.16	%		-0.41	%		-0.17	%		0.07	%		0.74	%		-0.28	%		0.80	%
Nonaccrual LHFI / (LHFI + LHFS)		0.49	%		0.61	%		0.61	%		0.52	%		0.50	%
Nonperforming assets / (LHFI + LHFS)		0.58	%		0.71	%		0.73	%		0.68	%		0.68	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.58	%		0.71	%		0.73	%		0.68	%		0.68	%
ACL LHFI / LHFI		1.02	%		1.09	%		1.19	%		1.24	%		1.23	%
ACL LHFI-commercial / commercial LHFI		1.04	%		1.13	%		1.20	%		1.20	%		1.15	%
ACL LHFI-consumer / consumer and home mortgage LHFI		0.98	%		0.95	%		1.16	%		1.41	%		1.56	%
ACL LHFI / nonaccrual LHFI		202.21	%		171.92	%		185.82	%		226.55	%		238.40	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)		537.35	%		437.08	%		572.69	%		593.72	%		561.04	%
CAPITAL RATIOS
Total equity / total assets		10.41	%		10.43	%		10.52	%		10.99	%		10.67	%
Tangible equity / tangible assets		8.31	%		8.30	%		8.34	%		8.68	%		8.37	%
Tangible equity / risk-weighted assets		11.33	%		11.23	%		11.22	%		11.01	%		11.09	%
Tier 1 leverage ratio		9.00	%		9.11	%		9.33	%		9.20	%		9.08	%
Common equity tier 1 capital ratio		11.76	%		11.71	%		11.62	%		11.36	%		11.42	%
Tier 1 risk-based capital ratio		12.25	%		12.20	%		12.11	%		11.86	%		11.94	%
Total risk-based capital ratio		14.10	%		14.07	%		14.12	%		12.88	%		13.00	%
STOCK PERFORMANCE
Market value-Close	$	30.80		$	33.66		$	27.31		$	21.41		$	24.52
Book value	$	28.35		$	27.76		$	27.45		$	26.96		$	26.39
Tangible book value	$	22.13		$	21.59		$	21.26		$	20.76		$	20.18
(1)  See Note 8 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2)  Excludes PPP loans.

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands)
	(unaudited)

Note 1 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, Trustmark National Bank (TNB), to The Loan Source, Inc. (Loan Source), a firm with significant expertise in PPP loans. As a result of this transaction, Loan Source will assume responsibility for the servicing and forgiveness process for the loans it has acquired from Trustmark. This transaction will allow Trustmark to focus on more traditional lending efforts and increase its ability to provide customers with financial services in an improving economic environment.

On a pre-tax basis, Trustmark accelerated the recognition of unamortized PPP loan origination fees, net of cost, of approximately $18.6 million, in the second quarter of 2021 due to the sale of approximately $354.2 million in PPP loans. This revenue is substantially the same as Trustmark would expect to recognize upon the maturity or forgiveness of the PPP loans being sold in this transaction, and thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.

At June 30, 2021, Trustmark had 843 PPP loans outstanding that totaled $166.1 million (net of $2.1 million of deferred fees and costs) under the CARES Act.  Due to amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the Small Business Administration; therefore, no ACL was estimated for these loans.

Note 2 - Securities Available for Sale and Held to Maturity

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:

	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	30,025	$	—	$	—	$	—	$	—
U.S. Government agency obligations		16,023		17,349		18,041		19,011		19,898
Obligations of states and political subdivisions		5,807		5,798		5,835		8,315		11,176
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		48,445		52,406		56,862		62,156		69,637
Issued by FNMA and FHLMC		1,983,783		1,749,144		1,441,321		1,279,919		1,121,604
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		283,988		345,869		419,437		500,858		574,940
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		180,668		167,110		50,319		52,469		86,898
Total securities available for sale	$	2,548,739	$	2,337,676	$	1,991,815	$	1,922,728	$	1,884,153
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	12,994	$	26,554	$	26,584	$	31,605	$	31,629
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		6,249		7,268		7,598		8,244		10,306
Issued by FNMA and FHLMC		53,406		61,855		67,944		78,213		86,346
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		291,477		324,360		360,361		399,400		435,333
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		68,886		73,701		75,585		93,818		96,434
Total securities held to maturity	$	433,012	$	493,738	$	538,072	$	611,280	$	660,048

At June 30, 2021, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $7.5 million ($5.6 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 99.4% 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.

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands)
	(unaudited)

Note 3 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Loans secured by real estate:
Construction, land development and other land loans	$	1,360,302		$	1,342,088		$	1,309,039		$	1,385,947		$	1,277,277
Secured by 1-4 family residential properties		1,810,396			1,742,782			1,741,132			1,775,400			1,813,525
Secured by nonfarm, nonresidential properties		2,819,662			2,799,195			2,709,026			2,707,627			2,610,392
Other real estate secured		1,078,622			1,135,005			1,065,964			887,792			884,815
Commercial and industrial loans		1,326,605			1,323,277			1,309,078			1,398,468			1,413,255
Consumer loans		153,519			153,267			161,174			160,960			161,620
State and other political subdivision loans		1,136,764			1,036,694			1,000,776			935,349			931,536
Other loans		466,999			451,396			528,335			596,185			567,386
LHFI		10,152,869			9,983,704			9,824,524			9,847,728			9,659,806
ACL LHFI		(104,032	)		(109,191	)		(117,306	)		(122,010	)		(119,188	)
Net LHFI	$	10,048,837		$	9,874,513		$	9,707,218		$	9,725,718		$	9,540,618

The following table presents the LHFI composition by region at June 30, 2021 and reflects each region’s diversified mix of loans:

	June 30, 2021
LHFI - COMPOSITION BY REGION	Total		Alabama		Florida		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and NorthernMS Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,360,302	$	512,156	$	57,415	$	358,091	$	36,934	$	395,706
Secured by 1-4 family residential properties		1,810,396		113,712		38,443		1,576,135		68,876		13,230
Secured by nonfarm, nonresidential properties		2,819,662		783,796		248,269		1,006,513		175,586		605,498
Other real estate secured		1,078,622		287,039		5,734		356,092		19,676		410,081
Commercial and industrial loans		1,326,605		212,425		21,180		585,821		298,249		208,930
Consumer loans		153,519		22,792		7,660		99,067		19,496		4,504
State and other political subdivision loans		1,136,764		106,447		53,425		722,702		37,777		216,413
Other loans		466,999		77,295		12,964		290,024		65,816		20,900
Loans	$	10,152,869	$	2,115,662	$	445,090	$	4,994,445	$	722,410	$	1,875,262
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	59,839	$	22,570	$	9,368	$	20,283	$	1,181	$	6,437
Development		106,548		41,903		554		37,599		13,211		13,281
Unimproved land		102,023		27,747		12,709		32,564		11,375		17,628
1-4 family construction		264,227		135,418		19,606		63,863		10,088		35,252
Other construction		827,665		284,518		15,178		203,782		1,079		323,108
Construction, land development and other land loans	$	1,360,302	$	512,156	$	57,415	$	358,091	$	36,934	$	395,706

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands)
	(unaudited)

Note 3 – Loan Composition (continued)

	June 30, 2021
	Total		Alabama		Florida		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and NorthernMS Regions)		Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	401,811	$	158,862	$	36,208	$	108,021	$	22,347	$	76,373
Office		203,704		48,483		25,523		62,711		12,352		54,635
Hotel/motel		340,867		167,536		65,163		47,535		35,708		24,925
Mini-storage		138,841		22,969		2,151		66,392		382		46,947
Industrial		211,872		43,197		19,008		46,733		139		102,795
Health care		41,722		21,555		1,167		16,468		376		2,156
Convenience stores		22,052		6,742		200		3,737		564		10,809
Nursing homes/senior living		154,351		84,686		—		43,067		6,598		20,000
Other		85,841		12,990		8,293		27,345		8,962		28,251
Total non-owner occupied loans		1,601,061		567,020		157,713		422,009		87,428		366,891
Owner-occupied:
Office		174,051		40,219		41,695		54,589		8,149		29,399
Churches		100,575		20,331		6,439		50,387		10,056		13,362
Industrial warehouses		177,645		12,820		3,582		49,855		16,729		94,659
Health care		139,456		25,317		7,019		94,162		2,313		10,645
Convenience stores		139,508		16,425		13,211		64,621		511		44,740
Retail		68,652		13,448		9,815		20,565		10,382		14,442
Restaurants		54,470		3,838		4,609		31,637		14,101		285
Auto dealerships		55,141		6,664		267		23,099		25,111		—
Nursing homes/senior living		202,579		71,916		—		130,663		—		—
Other		106,524		5,798		3,919		64,926		806		31,075
Total owner-occupied loans		1,218,601		216,776		90,556		584,504		88,158		238,607
Loans secured by nonfarm, nonresidential properties	$	2,819,662	$	783,796	$	248,269	$	1,006,513	$	175,586	$	605,498

Note 4 – Subordinated Notes

During the fourth quarter of 2020, Trustmark agreed to issue and sell $125.0 million aggregate principal amount of its 3.625% Fixed-to-Floating Rate Subordinated Notes (the Notes) due December 1, 2030. At June 30, 2021, the carrying amount of the Notes was $122.9 million. The Notes are unsecured obligations and are subordinated in right of payment to all of Trustmark’s existing and future senior indebtedness, whether secured or unsecured. The Notes are obligations of Trustmark only and are not obligations of, and are not guaranteed by, any of its subsidiaries, including TNB. From the date of issuance until November 30, 2025, the Notes bear interest at a fixed rate of 3.625% per year, payable semi-annually in arrears on June 1 and December 1 of each year. Beginning December 1, 2025, the Notes will bear interest at a floating rate per year equal to the Benchmark rate, which is the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 338.7 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. The Notes qualify as Tier 2 capital for Trustmark.  The Notes may be redeemed at Trustmark’s option under certain circumstances. Trustmark intends to use the net proceeds for general corporate purposes.

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands)
	(unaudited)

Note 5 – Yields on Earning Assets and Interest-Bearing Liabilities

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															Six Months Ended
	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Securities – taxable		1.30	%		1.40	%		1.62	%		2.02	%		2.16	%		1.35	%		2.20	%
Securities – nontaxable		3.70	%		4.02	%		3.89	%		3.80	%		3.58	%		3.91	%		3.74	%
Securities – total		1.31	%		1.43	%		1.65	%		2.05	%		2.18	%		1.37	%		2.23	%
PPP loans		15.81	%		6.27	%		6.76	%		2.84	%		2.65	%		11.26	%		2.65	%
Loans - LHFI & LHFS		3.64	%		3.67	%		3.75	%		3.81	%		4.03	%		3.66	%		4.28	%
Loans - total		4.36	%		3.81	%		3.99	%		3.73	%		3.93	%		4.09	%		4.22	%
Fed funds sold & reverse repurchases		—			—			—			1.32	%		—			—			—
Other earning assets		0.11	%		0.12	%		0.12	%		0.18	%		0.11	%		0.12	%		0.38	%
Total earning assets		3.33	%		3.00	%		3.35	%		3.26	%		3.39	%		3.17	%		3.71	%
Interest-bearing deposits		0.19	%		0.22	%		0.27	%		0.31	%		0.37	%		0.20	%		0.53	%
Fed funds purchased & repurchases		0.14	%		0.14	%		0.13	%		0.15	%		0.16	%		0.14	%		0.76	%
Other borrowings		2.29	%		2.14	%		1.61	%		1.19	%		2.09	%		2.21	%		2.21	%
Total interest-bearing liabilities		0.25	%		0.28	%		0.30	%		0.33	%		0.39	%		0.26	%		0.56	%
Net interest margin		3.16	%		2.81	%		3.15	%		3.03	%		3.12	%		2.99	%		3.31	%
Net interest margin excluding PPP loans and the FRB balance		2.94	%		2.99	%		3.09	%		3.20	%		3.35	%		2.96	%		3.44	%

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 PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At June 30, 2021 and March 31, 2021, the average FRB balance totaled $1.700 billion and $1.618 billion, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 2.94% for the second quarter of 2021, a decrease of 5 basis points when compared to the first quarter of 2021.  Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.  

Note 6 – Mortgage Banking

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 positive ineffectiveness of $1.3 million during the second quarter of 2021.  

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands)
	(unaudited)

Note 6 – Mortgage Banking(continued)

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

	Quarter Ended															Six Months Ended
	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Mortgage servicing income, net	$	6,318		$	6,181		$	6,227		$	5,742		$	5,893		$	12,499		$	11,712
Change in fair value-MSR from runoff		(5,029	)		(5,103	)		(5,177	)		(4,590	)		(4,214	)		(10,132	)		(6,821	)
Gain on sales of loans, net		14,778			19,456			28,014			34,472			34,078			34,234			48,417
Mortgage banking income before hedge ineffectiveness		16,067			20,534			29,064			35,624			35,757			36,601			53,308
Change in fair value-MSR from market changes		(4,465	)		13,696			951			60			(3,159	)		9,231			(27,158	)
Change in fair value of derivatives		5,731			(13,426	)		(1,860	)		755			1,147			(7,695	)		35,078
Net positive (negative) hedge ineffectiveness		1,266			270			(909	)		815			(2,012	)		1,536			7,920
Mortgage banking, net	$	17,333		$	20,804		$	28,155		$	36,439		$	33,745		$	38,137		$	61,228

Note 7 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

	Quarter Ended															Six Months Ended
	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Partnership amortization for tax credit purposes	$	(1,989	)	$	(1,522	)	$	(1,877	)	$	(1,457	)	$	(1,205	)	$	(3,511	)	$	(2,366	)
Increase in life insurance cash surrender value		1,653			1,639			1,708			1,755			1,696			3,292			3,418
Other miscellaneous income		2,337			1,973			2,707			1,303			1,722			4,310			3,468
Total other, net	$	2,001		$	2,090		$	2,538		$	1,601		$	2,213		$	4,091		$	4,520

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:

	Quarter Ended										Six Months Ended
	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020		6/30/2021		6/30/2020
Loan expense	$	3,738	$	4,167	$	4,243	$	4,184	$	3,619	$	7,905	$	6,751
Amortization of intangibles		553		666		752		752		736		1,219		1,548
FDIC assessment expense		1,225		1,540		1,500		1,410		1,590		2,765		3,180
Other miscellaneous expense		7,623		8,166		9,395		8,252		7,320		15,789		16,539
Total other expense	$	13,139	$	14,539	$	15,890	$	14,598	$	13,265	$	27,678	$	28,018

Note 8 – Non-GAAP Financial Measures

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.

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands except per share data)
	(unaudited)

Note 8 – Non-GAAP Financial Measures (continued)

		Quarter Ended															Six Months Ended
		6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,780,705		$	1,759,351		$	1,725,035		$	1,694,903		$	1,665,716		$	1,770,087		$	1,652,893
Less:  Goodwill			(384,237	)		(385,155	)		(385,270	)		(385,270	)		(383,081	)		(384,694	)		(381,876	)
Identifiable intangible assets			(6,442	)		(7,118	)		(7,803	)		(8,550	)		(7,834	)		(6,778	)		(7,942	)
Total average tangible equity		$	1,390,026		$	1,367,078		$	1,331,962		$	1,301,083		$	1,274,801		$	1,378,615		$	1,263,075
PERIOD END BALANCES
Total shareholders' equity		$	1,779,309		$	1,759,705		$	1,741,117		$	1,710,041		$	1,673,944
Less:  Goodwill			(384,237	)		(384,237	)		(385,270	)		(385,270	)		(385,270	)
Identifiable intangible assets			(6,170	)		(6,724	)		(7,390	)		(8,142	)		(8,895	)
Total tangible equity	(a)	$	1,388,902		$	1,368,744		$	1,348,457		$	1,316,629		$	1,279,779
TANGIBLE ASSETS
Total assets		$	17,098,132		$	16,878,313		$	16,551,840		$	15,558,162		$	15,692,079
Less:  Goodwill			(384,237	)		(384,237	)		(385,270	)		(385,270	)		(385,270	)
Identifiable intangible assets			(6,170	)		(6,724	)		(7,390	)		(8,142	)		(8,895	)
Total tangible assets	(b)	$	16,707,725		$	16,487,352		$	16,159,180		$	15,164,750		$	15,297,914
Risk-weighted assets	(c)	$	12,256,492		$	12,188,988		$	12,017,378		$	11,963,269		$	11,539,157
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	47,981		$	51,962		$	51,217		$	54,440		$	32,150		$	99,943		$	54,368
Plus: Intangible amortization net of tax			415			500			564			564			552			915			1,161
Net income adjusted for intangible amortization		$	48,396		$	52,462		$	51,781		$	55,004		$	32,702		$	100,858		$	55,529
Period end common shares outstanding	(d)		62,773,226			63,394,522			63,424,526			63,423,820			63,422,439
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			13.96	%		15.56	%		15.47	%		16.82	%		10.32	%		14.75	%		8.84	%
Tangible equity/tangible assets	(a)/(b)		8.31	%		8.30	%		8.34	%		8.68	%		8.37	%
Tangible equity/risk-weighted assets	(a)/(c)		11.33	%		11.23	%		11.22	%		11.01	%		11.09	%
Tangible book value	(a)/(d)*1,000	$	22.13		$	21.59		$	21.26		$	20.76		$	20.18
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,779,309		$	1,759,705		$	1,741,117		$	1,710,041		$	1,673,944
CECL transition adjustment			26,671			26,829			31,199			32,647			32,693
AOCI-related adjustments			10,641			16,506			1,051			(5,684	)		(10,565	)
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(370,276	)		(370,288	)		(371,333	)		(371,345	)		(371,342	)
Other adjustments and deductions for CET1 (2)			(5,243	)		(5,675	)		(6,190	)		(6,770	)		(7,352	)
CET1 capital	(e)		1,441,102			1,427,077			1,395,844			1,358,889			1,317,378
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,501,102		$	1,487,077		$	1,455,844		$	1,418,889		$	1,377,378
Common equity tier 1 capital ratio	(e)/(c)		11.76	%		11.71	%		11.62	%		11.36	%		11.42	%

(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 CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands except per share data)
	(unaudited)

Note 8 – Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures 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 these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide 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 pre-provision net revenue (PPNR) during the periods presented:

			Quarter Ended										Six Months Ended
			6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020		6/30/2021		6/30/2020
Net interest income (GAAP)			$	119,423	$	102,336	$	111,378	$	106,207	$	105,000	$	221,759	$	208,952
Noninterest income (GAAP)				56,411		60,583		66,117		73,701		69,511		116,994		134,775
Pre-provision revenue		(a)	$	175,834	$	162,919	$	177,495	$	179,908	$	174,511	$	338,753	$	343,727
Noninterest expense (GAAP)			$	118,679	$	121,548	$	119,894	$	116,963	$	112,417	$	240,227	$	229,444
Less:	Voluntary early retirement program			—		—		—		—		—		—		(4,375	)
Adjusted noninterest expense - PPNR (Non-GAAP)		(b)	$	118,679	$	121,548	$	119,894	$	116,963	$	112,417	$	240,227	$	225,069
PPNR (Non-GAAP)		(a)-(b)	$	57,155	$	41,371	$	57,601	$	62,945	$	62,094	$	98,526	$	118,658

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:

	Quarter Ended										Six Months Ended
	6/30/2021					6/30/2020					6/30/2021					6/30/2020
	Amount			Diluted EPS		Amount			Diluted EPS		Amount			Diluted EPS		Amount			Diluted EPS
Net Income (GAAP)	$	47,981		$	0.76	$	32,150		$	0.51	$	99,943		$	1.57	$	54,368		$	0.85
Significant non-routine transactions (net of taxes):
Voluntary early retirement program		—			—		—			—		—			—		3,281			0.05
Net Income adjusted for significant
non-routine transactions (Non-GAAP)	$	47,981		$	0.76	$	32,150		$	0.51	$	99,943		$	1.57	$	57,649		$	0.90
	Reported (GAAP)			Adjusted		Reported (GAAP)			Adjusted		Reported (GAAP)			Adjusted		Reported (GAAP)			Adjusted
				(Non-GAAP)					(Non-GAAP)					(Non-GAAP)					(Non-GAAP)
Return on average equity		10.81	%	n/a			7.76	%	n/a			11.39	%	n/a			6.61	%		7.00	%
Return on average tangible equity		13.96	%	n/a			10.32	%	n/a			14.75	%	n/a			8.84	%		9.35	%
Return on average assets		1.13	%	n/a			0.83	%	n/a			1.20	%	n/a			0.75	%		0.79	%
n/a - not applicable

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	June 30, 2021
	($ in thousands)
	(unaudited)

Note 8 – Non-GAAP Financial Measures (continued)

The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:

			Quarter Ended															Six Months Ended
			6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Total noninterest expense (GAAP)			$	118,679		$	121,548		$	119,894		$	116,963		$	112,417			240,227		$	229,444
Less:	Other real estate expense, net			(1,511	)		(324	)		812			(1,203	)		(271	)		(1,835	)		(1,565	)
	Amortization of intangibles			(553	)		(666	)		(752	)		(752	)		(736	)		(1,219	)		(1,548	)
	Voluntary early retirement program			—			—			—			—			—			—			(4,375	)
	Charitable contributions resulting in state tax credits			(355	)		(350	)		(375	)		(375	)		(375	)		(705	)		(750	)
Adjusted noninterest expense (Non-GAAP)		(c)	$	116,260		$	120,208		$	119,579		$	114,633		$	111,035		$	236,468		$	221,206
Net interest income (GAAP)			$	119,423		$	102,336		$	111,378		$	106,207		$	105,000		$	221,759		$	208,952
Add:	Tax equivalent adjustment			2,957			2,894			2,939			2,969			3,007			5,851			6,115
Net interest income-FTE (Non-GAAP)		(a)	$	122,380		$	105,230		$	114,317		$	109,176		$	108,007		$	227,610		$	215,067
Noninterest income (GAAP)			$	56,411		$	60,583		$	66,117		$	73,701		$	69,511		$	116,994		$	134,775
Add:	Partnership amortization for tax credit purposes			1,989			1,522			1,877			1,457			1,205			3,511			2,366
Adjusted noninterest income (Non-GAAP)		(b)	$	58,400		$	62,105		$	67,994		$	75,158		$	70,716		$	120,505		$	137,141
Adjusted revenue (Non-GAAP)		(a)+(b)	$	180,780		$	167,335		$	182,311		$	184,334		$	178,723		$	348,115		$	352,208
Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		64.31	%		71.84	%		65.59	%		62.19	%		62.13	%		67.93	%		62.81	%

EX-99.2

Second Quarter 2021 Financial Results Exhibit 99.2

  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,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “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 (SEC) 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.  Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate. 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, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, 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, levels of and volatility in 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 related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity 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, 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,  pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC. 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. Forward–Looking Statements 2

Financial Highlights Performance reflects continued balance sheet growth, strong credit quality and disciplined expense management Source: Company reports (1) For Non-GAAP measures, please refer to the Earnings Release dated July 27, 2021 and the Consolidated Financial Information, Note 8 – Non-GAAP Financial Measures 3 Loans Held for Investment (HFI) increased $169.2 million, or 1.7%, linked- quarter and $493.1 million, or 5.1 %, Y-o-Y Accelerated recognition of $18.6 million of Paycheck Protection Program (PPP) loan origination fees attributable to the previously announced sale of $354.2 million in PPP loans during the second quarter Earnings Drivers Pre-provision net revenue totaled $57.2 million, up 38.2% linked-quarter (1) Net interest income (FTE) expanded $17.2 million, or 16.3%, linked-quarter Noninterest income totaled $56.4 million, representing 32.1% of total revenue Profitable Revenue Generation Noninterest expense declined 2.4% linked-quarter Adjusted noninterest expense(1) totaled $116.3 million in the second quarter, a decrease of 3.3% linked-quarter Efficiency ratio improved to 64.31% in second quarter Expense Management Nonperforming assets declined 17.9% linked-quarter Net charge-offs totaled $1.2 million in the second quarter Loans remaining under a COVID-19 related concession represented approximately 19 basis points of loans HFI at June 30, 2021 Credit Quality Maintained strong capital levels with CET1 ratio of 11.76% and total risk-based capital ratio of 14.10% Repurchased $20.8 million, or approximately 630 thousand shares of common stock in the second quarter; at June 30, 2021, had $75.0 million remaining authority under the repurchase program, which expires on December 31, 2021 Board of Directors declared quarterly cash dividend of $0.23 per share Capital Management

Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Source: Company reports (1) Percentages may not sum to 100% due to rounding. Trustmark has no loan exposure in which the source of repayment or the underlying security of such exposure is tied to the realization of value from energy reserves Total energy-related sector exposure of $301 million with outstanding balances of $93 million – representing 0.92% of total LHFI – at June 30, 2021 At June 30, 2021, nonaccrual energy-related loans represented 1.6% of outstanding energy-related loans and 1 basis point of outstanding LHFI Dollar Change: $169 $188 $(23) $159 4

Real Estate Secured Loan Portfolio Detail 5 Source: Company reports (1) Multi-Family is included in Other Real Estate Secured Loans in Financials Focus on vertical construction with limited exposure to unimproved land and development Well-diversified product and geographical mix Balanced between non-owner and owner-occupied portfolios Virtually no REIT outstandings ($4.9 million)

Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 10% Small energy book and has never been an area of focused growth Virtually no regulatory defined higher risk commercial and industrial outstanding ($9.6million) Portfolio includes commercial, financial intermediaries, agriculture production and non-profits

COVID-19 Impacted Industries 7 At June 30, 2021

Second Quarter Portfolio Review 8 During the second quarter, Trustmark conducted an analysis of borrowers rated watch or worse that received a concession as well as other borrowers in industries significantly impacted by COVID-19 (restaurants and hotels) with $1 million or more in outstanding balances. Collectively, the review included borrowers with $482 million in outstanding balances at June 30, 2021. Within the COVID-19 impacted industries, the review included the following: As a result of the review, only $4.5 million was downgraded to a criticized category, none of which was in the COVID related industries. A total of $14.5 million was removed from criticism, which included borrowers in the COVID related industries as follows:

Allowance for Credit Losses Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 9 ($ in millions) Quantitative changes due to improvement of the macroeconomic forecast and PD/LGD floor implementation Qualitative changes including reduction of the impact of the COVID-19 pandemic All other changes including individually analyzed reserves, prepayment studies, loan growth, etc. ACL 03/31/21 ACL 06/30/21

Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 1.02% of loans held for investment and 537.35% of nonaccrual loans, excluding individually evaluated loans Net charge-offs totaled $1.2 million in the second quarter, and recoveries have exceeded charge-offs by $1.2 million year to date Nonaccruals declined $12.1 million in the second quarter and increased $1.5 million year-over-year Nonperforming assets declined $13.3 million in the second quarter and $7.4 million year-over-year Source: Company reports Note: Unless noted otherwise, credit metrics exclude PPP loans (1) Totals may not foot due to rounding (2) NPLs excludes individually evaluated loans 10

Paycheck Protection Program (PPP) Source: Company reports 11 During the second quarter, Trustmark sold $354.2 million in PPP loans, which represented substantially all PPP loans originated in 2021. The PPP loan sale accelerated the recognition of unamortized PPP loan origination fees, net of cost, of $18.6 million, which is included in net interest income.

Attractive, Low-Cost Deposit Base Deposits totaled $14.6 billion at June 30, 2021, up $248.6 million, or 1.7%, linked-quarter, and up $1.1 billion, or 8.3%, year-over-year Cost of interest-bearing deposits in the second quarter totaled 0.19%, down 3 basis points from the prior quarter Source: Company reports (1) Percentages may not sum to 100% due to rounding. (2) Above does not include the daily sweep between low transaction interest checking to savings for regulatory purposes. 12

Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $122.4 million, resulting in a net interest margin of 3.16% in the second quarter The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.94% in the second quarter Source: Company reports (1) Totals may not foot due to rounding (2) Loan Yield excludes PPP 13

Income Statement Highlights – Noninterest Income Source: Company reports (1) Totals may not foot due to rounding Noninterest income totaled $56.4 million for the second quarter, a decrease of $4.2 million linked-quarter and $13.1 million year-over-year. The linked-quarter and year-over-year changes are principally attributable to lower mortgage banking revenue. Wealth management revenue for the second quarter totaled $8.9 million, an increase of $530 thousand linked-quarter and $1.4 million year-over-year. For the second quarter, insurance revenue totaled $12.2 million, a $228 thousand decrease from the prior quarter and a $349 thousand increase from the previous year. 14 (1)

Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding (2) Production includes Loans Available for Sale (AFS) and Portfolio (3) Gain on Sale Margin excludes FAS 133 (Pipeline valuation adjustment) Mortgage banking revenue totaled $17.3 million in the second quarter of 2021, a $3.5 million decrease linked-quarter and $16.4 million decrease year-over year. Mortgage loan production in the second quarter totaled $736.8 million, a decrease of 3.9% from the prior quarter and 13.7% from the prior year. Retail production represented 77% of volume, or $570.7 million, in the second quarter. 15 Gain on sale margin (3) Purchase 50% 56% 58% 52% 71% Refinance 50% 44% 42% 48% 29%

Income Statement Highlights – Noninterest Expense Source: Company reports (1) Totals may not foot due to rounding (2) For Non-GAAP measures, please refer to the Earnings Release dated July 27, 2021 and the Consolidated Financial Information, Note 8 – Non-GAAP Financial Measures Noninterest expense - totaled $118.7 million in the second quarter, down 2.4% from the prior quarter Adjusted noninterest expense(2) – totaled $116.3 million in the second quarter, down $3.9 million from the prior quarter Salaries and benefits decreased $1.0 million linked-quarter mainly due to the seasonality of payroll taxes from the prior quarter Services and fees decreased by $715 thousand from the prior quarter; equipment expense decreased $677 thousand linked-quarter 16

Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.76% and a total risk-based capital ratio of 14.10% at June 30, 2021 Trustmark repurchased $25.0 million, or approximately 775 thousand of its common shares, during the first six months of 2021. At June 30, 2021, Trustmark had $75.0 million in remaining authority under its existing stock repurchase program, which expires December 31, 2021. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2021, to shareholders of record on September 1, 2021 Source: Company reports (1) Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital. 17

Outlook Commentary(1) Source: Company reports (1) See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. 18

Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 180 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to achieve outstanding customer satisfaction by providing banking, wealth management, and risk management solutions through superior sales and service, utilizing excellent people, teamwork, and diversity, while meeting our corporate financial goals. 19 Who We Are Strategic Priorities to Enhance Shareholder Value Our Footprint

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Document and Entity Information	Jul. 27, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 27, 2021
Entity Registrant Name	TRUSTMARK CORP
Entity Central Index Key	0000036146
Entity Emerging Growth Company	false
Entity File Number	000-03683
Entity Incorporation, State or Country Code	MS
Entity Tax Identification Number	64-0471500
Entity Address, Address Line One	248 East Capitol Street
Entity Address, City or Town	Jackson
Entity Address, State or Province	MS
Entity Address, Postal Zip Code	39201
City Area Code	601
Local Phone Number	208-5111
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Common Stock, no par value
Trading Symbol	TRMK
Name of each exchange on which registered	NASDAQ