Shareholders' Equity

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Note 15 – Shareholders’ Equity

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2020 Annual Report, which are administered by the federal bank regulatory agencies. These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments. Trustmark’s and TNB’s minimum risk-based capital requirements include a capital conservation buffer of 2.50% at September 30, 2021 and December 31, 2020. Accumulated other comprehensive income (loss), net of tax, is not included in computing regulatory capital. Trustmark has elected the five-year phase-in transition period (through December 31, 2024) related to adopting FASB ASU 2016-13 for regulatory capital purposes. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends. As of September 30, 2021, Trustmark and TNB exceeded all applicable minimum capital standards. In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2021. To be categorized in this manner, Trustmark and TNB maintained, as applicable, minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the accompanying table, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures. There are no significant conditions or events that have occurred since September 30, 2021, which Management believes have affected Trustmark’s or TNB’s present classification.

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2021 and December 31, 2020 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2021:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,439,365		11.68	%		7.00	%	n/a
Trustmark National Bank		1,505,242		12.22	%		7.00	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,499,365		12.17	%		8.50	%	n/a
Trustmark National Bank		1,505,242		12.22	%		8.50	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,726,040		14.01	%		10.50	%	n/a
Trustmark National Bank		1,608,930		13.06	%		10.50	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,499,365		8.92	%		4.00	%	n/a
Trustmark National Bank		1,505,242		8.98	%		4.00	%		5.00	%
At December 31, 2020:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,395,844		11.62	%		7.00	%	n/a
Trustmark National Bank		1,412,015		11.75	%		7.00	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,455,844		12.11	%		8.50	%	n/a
Trustmark National Bank		1,412,015		11.75	%		8.50	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,696,794		14.12	%		10.50	%	n/a
Trustmark National Bank		1,530,044		12.73	%		10.50	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,455,844		9.33	%		4.00	%	n/a
Trustmark National Bank		1,412,015		9.07	%		4.00	%		5.00	%

Stock Repurchase Program

On April 1, 2019, the Board of Directors of Trustmark authorized a stock repurchase program under which $100.0 million of Trustmark’s outstanding common stock could be acquired through March 31, 2020. Trustmark repurchased approximately 887 thousand shares of its common stock valued at $27.5 million during the three months ended March 31, 2020. Under this authority, Trustmark repurchased approximately 1.5 million shares valued at $47.2 million.

On January 28, 2020, the Board of Directors of Trustmark authorized a new stock repurchase program, effective April 1, 2020, under which $100.0 million of Trustmark’s outstanding common stock may be acquired through December 31, 2021. On March 9, 2020, Trustmark suspended its share repurchase programs to preserve capital to support customers during the COVID-19 pandemic. Trustmark resumed the repurchase of its shares in January 2021. Under this authority, Trustmark repurchased approximately 319 thousand shares of its outstanding common stock valued at $9.7 million during three months ended September 30, 2021. During the first nine months of 2021, Trustmark repurchased $34.7 million, or approximately 1.1 million shares of its outstanding common stock. The shares may be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions. There is no guarantee as to the number of shares that will be repurchased by Trustmark, and Trustmark may discontinue repurchases at any time at Management’s discretion.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following tables present the net change in the components of accumulated other comprehensive income (loss) and the related tax effects allocated to each component for the periods presented ($ in thousands). The amortization of prior service cost, recognized net loss due to lump sum settlements and change in net actuarial loss are included in the computation of net periodic benefit cost (see Note 10 – Defined Benefit and Other Postretirement Benefits for additional details). Reclassification adjustments related to pension and other postretirement benefit plans are included in salaries and employee benefits and other expense in the accompanying consolidated statements of income.

	Three Months Ended September 30, 2021									Three Months Ended September 30, 2020
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(12,543	)	$	3,136		$	(9,407	)	$	(7,707	)	$	1,926		$	(5,781	)
Change in net unrealized holding loss on    securities transferred to held to maturity		636			(159	)		477			804			(201	)		603
Total securities available for sale    and transferred securities		(11,907	)		2,977			(8,930	)		(6,903	)		1,725			(5,178	)
Pension and other postretirement benefit plans:
Reclassification adjustments for changes    realized in net income:
Net change in prior service costs		28			(7	)		21			37			(9	)		28
Recognized net loss due to lump sum    settlements		183			(46	)		137			40			(10	)		30
Change in net actuarial loss		444			(111	)		333			319			(80	)		239
Total pension and other postretirement    benefit plans		655			(164	)		491			396			(99	)		297
Total other comprehensive income (loss)	$	(11,252	)	$	2,813		$	(8,439	)	$	(6,507	)	$	1,626		$	(4,881	)

	Nine Months Ended September 30, 2021									Nine Months Ended September 30, 2020
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount		Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(27,731	)	$	6,933		$	(20,798	)	$	35,448	$	(8,863	)	$	26,585
Change in net unrealized holding loss on    securities transferred to held to maturity		2,083			(521	)		1,562			2,443		(611	)		1,832
Total securities available for sale    and transferred securities		(25,648	)		6,412			(19,236	)		37,891		(9,474	)		28,417
Pension and other postretirement benefit plans:
Reclassification adjustments for changes    realized in net income:
Net change in prior service costs		84			(21	)		63			112		(28	)		84
Recognized net loss due to lump sum    settlements		183			(46	)		137			80		(20	)		60
Change in net actuarial loss		1,342			(335	)		1,007			964		(241	)		723
Total pension and other postretirement    benefit plans		1,609			(402	)		1,207			1,156		(289	)		867
Total other comprehensive income (loss)	$	(24,039	)	$	6,010		$	(18,029	)	$	39,047	$	(9,763	)	$	29,284

The following table presents the changes in the balances of each component of accumulated other comprehensive income (loss) for the periods presented ($ in thousands). All amounts are presented net of tax.

	Securities Available for Sale and Transferred Securities			Defined Benefit Pension Items			Total
Balance at January 1, 2021	$	17,331		$	(18,382	)	$	(1,051	)
Other comprehensive income (loss) before reclassification		(19,236	)		—			(19,236	)
Amounts reclassified from accumulated other    comprehensive income (loss)		—			1,207			1,207
Net other comprehensive income (loss)		(19,236	)		1,207			(18,029	)
Balance at September 30, 2021	$	(1,905	)	$	(17,175	)	$	(19,080	)
Balance at January 1, 2020	$	(8,017	)	$	(15,583	)	$	(23,600	)
Other comprehensive income (loss) before reclassification		28,417			—			28,417
Amounts reclassified from accumulated other    comprehensive income (loss)		—			867			867
Net other comprehensive income (loss)		28,417			867			29,284
Balance at September 30, 2020	$	20,400		$	(14,716	)	$	5,684