trmk-ex991

JACKSON, Miss. – July 26, 2016 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $21.5 million in the second quarter of 2016, representing diluted earnings per share of $0.32. Excluding a one-time charge related to a voluntary early retirement program, net income totaled $27.2 million, which represented $0.40 in diluted earnings per share. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2016, to shareholders of record on September 1, 2016.

Gerard R. Host, President and CEO, stated, “Trustmark achieved another quarter of solid financial results. We continued to maintain and expand customer relationships by growing loans across our five-state franchise, while maintaining solid credit quality. Our other lines of business continued to perform well, reflecting strength in insurance commissions, wealth management revenue and mortgage loan-production volume. Routine noninterest expense remained well controlled. Furthermore, this past quarter – as part of the J.D. Power 2016 U.S. Retail Banking Satisfaction Study – Trustmark was recognized as having the ‘Highest Customer Satisfaction with Retail Banking in the South Central Region’*. We appreciate this recognition from our customers and thank our associates for their commitment to excellent customer service. Thanks to our associates, solid profitability and strong capital base, Trustmark remains well positioned to continue meeting the needs of our customers and creating long-term value for our shareholders.”

Loans held for investment totaled $7.4 billion at June 30, 2016, reflecting an increase of 1.9% from the prior quarter and 14.9% year-over-year. Relative to the prior quarter, commercial and industrial loans expanded $98.0 million, driven primarily by growth in Tennessee, Mississippi and Alabama. Other real estate secured loans, which include multifamily projects, increased $50.0 million as growth in Mississippi, Tennessee, Texas and Alabama more than offset a marginal reduction in Florida. Construction, land development and other land loans increased $20.9 million, primarily reflecting funding of existing construction loans in Texas, Alabama, Florida and Mississippi. Loans to state and other political subdivisions increased $18.4 million, principally driven by growth in Mississippi. During the quarter, Trustmark sold the vast majority of lower-rate, longer-term home mortgages in the secondary market, rather than replacing the runoff in its single-family loan portfolio; as a result, the single-family mortgage portfolio decreased by $20.0 million.

Acquired loans totaled $339.0 million at June 30, 2016, down $25.7 million from the prior quarter. Collectively, loans held for investment and acquired loans totaled $7.7 billion at June 30, 2016, up $111.4 million, or 6.0% annualized, from the prior quarter.

Deposits totaled $9.5 billion at June 30, 2016, decreasing 1.1% from the prior quarter. Trustmark continues to maintain an attractive, low-cost deposit base with a total cost of deposits of 0.13%. The favorable mix of interest-bearing liabilities yielded a total cost of funds of 0.29% for the second quarter of 2016.

Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses. During the second quarter, Trustmark repurchased approximately 34 thousand of its common shares. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At June 30, 2016, Trustmark’s tangible equity to tangible assets ratio was 8.97%, while its total risk-based capital ratio was 13.82%. Tangible book value per share was $16.76 at June 30, 2016, up 7.6% year-over-year.

Criticized and classified loans declined during the second quarter, reflecting continued solid credit quality. Compared to the prior quarter, criticized and classified loan balances decreased 3.7% and 3.3%, respectively. Compared to balances one year earlier, criticized and classified loan balances decreased 10.4% and 5.4%, respectively.

At June 30, 2016, nonperforming loans totaled $65.1 million, down 7.9% linked quarter and 4.8% year-over-year. Other real estate totaled $69.5 million, reflecting a decline of 3.2% from the prior quarter and 23.4% from the same period one year earlier.

Allocation of Trustmark's $71.8 million allowance for loan losses represented 1.05% of commercial loans and 0.70% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 0.97% at June 30, 2016, representing a level management considers commensurate with the inherent risk in the loan portfolio. Collectively, the allowance for both held for investment and acquired loan losses represented 1.09% of total loans, which include held for investment and acquired loans.

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

Net interest income (FTE) in the second quarter totaled $100.9 million, which resulted in a net interest margin of 3.56%. Compared to the prior quarter, net interest income (FTE) increased $1.7 million, which reflects continued growth in interest income from both the held for sale and held for investment loan portfolios, in addition to a higher level of recoveries from the acquired loan portfolio. The yield on acquired loans in the second quarter totaled 9.26% and included recoveries from settlement of debt of $2.9 million; this compares to $1.2 million in recoveries from settlement of debt in the prior quarter. The net interest margin (FTE) excluding both acquired loans and yield maintenance payments totaled 3.38% in the second quarter, remaining unchanged from the prior quarter.

Noninterest income totaled $44.2 million in the second quarter, increasing 2.2% linked quarter. Relative to the prior quarter, service charges on deposit accounts remained stable, while bank card and other fees increased 7.5%. Other, net increased 54.5%, or $484 thousand, from the prior quarter primarily because of growth in other miscellaneous income.

Insurance revenue totaled $9.6 million in the second quarter, representing an increase of 12.2% from the prior quarter and 2.5% from the same period one year earlier. The performance this quarter was primarily driven by the commercial property and casualty line of business. Wealth management revenue in the second quarter totaled $8.0 million, up 8.1% and 3.2% from the prior quarter and year-over-year, respectively. The linked-quarter increase reflects growth in both the trust management business and annuity income.

Mortgage banking revenue in the second quarter totaled $6.7 million, down $2.0 million from the prior quarter and $2.8 million year-over-year. The linked-quarter change primarily reflects expanded secondary marketing gains that were more than offset by an unfavorable mortgage servicing hedge ineffectiveness and a lower level of mark-to-market gains on mortgage loans held for sale. Mortgage loan production in the second quarter totaled $404.0 million, up 31.4% from the prior quarter and down 3.1% year-over-year.

Trustmark continued proactive measures to manage noninterest expense. During the second quarter, Trustmark announced the results of its voluntary early retirement program. Of those eligible for the program, 188 associates, or 6.38% of the workforce, retired by June 30, 2016. As previously mentioned, a one-time, pre-tax charge of $9.3 million related to this program was incurred during the second quarter. The result of this program is expected to produce pre-tax savings of approximately $4.2 million for the remainder of 2016 and $8.5 million for full year 2017.

Excluding ORE expense and intangible amortization of $2.9 million and the one-time voluntary early retirement charge of $9.3 million, routine noninterest expense in the second quarter totaled $98.0 million. Salaries and benefits expense – excluding $9.1 million of the one-time voluntary early retirement charge – was $58.0 million, which increased marginally from the prior quarter as a result of higher mortgage-production commissions. Services and fees remained stable from the prior quarter, while ORE and foreclosure expense increased $1.0 million. Other expense – excluding the remaining $230 thousand of the one-time voluntary early retirement charge – totaled $12.4 million, up $439 thousand on a comparable basis from the prior quarter.

On July 26, 2016, Trustmark’s Board of Directors authorized the termination of a frozen noncontributory tax-qualified defined benefit pension plan (the “Plan”), which will be effective December 31, 2016. A one-time, pre-tax pension settlement expense of approximately $12.0 million will be recognized when paid by Trustmark during the second quarter of 2017. Additionally, Trustmark elected to de-risk the Plan’s investment portfolio, thus reducing the expected rate of return on the Plan’s investment assets. As a result, Trustmark estimates that the periodic benefit cost will increase by $1.2 million in the second half of 2016. The expected net pre-tax savings, once completed, from the termination of the Plan are estimated to total between $3.0 to $4.0 million annually. Trustmark remains committed to investments that promote profitable revenue growth as well as reengineering and efficiency opportunities to enhance shareholder value.

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 27, 2016, at 10:00 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com, which will also include a slide presentation Management will review during the conference call. A replay of the conference call will also be available through Wednesday, August 10, 2016, in archived format at the same web address or by calling (877) 344-7529, passcode 10088419.

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

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to,

statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets as well as crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues relating to the European financial system and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, changes in our compensation and benefit plans, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission.

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

Trustmark National Bank received the highest numerical score among 15 retail banks in the South Central region in the J.D. Power 2016 Retail Banking Satisfaction Study, based on 76,233 total responses, measuring opinions of consumers with their primary banking provider, surveyed April 2015-February 2016. Your experiences may vary. Visit jdpower.com

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2016			3/31/2016			6/30/2015			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	2,214,040		$	2,211,479		$	2,255,485		$	2,561			0.1	%	$	(41,445	)		-1.8	%
Securities AFS-nontaxable		99,296			105,844			120,330			(6,548	)		-6.2	%		(21,034	)		-17.5	%
Securities HTM-taxable		1,122,463			1,142,434			1,143,273			(19,971	)		-1.7	%		(20,810	)		-1.8	%
Securities HTM-nontaxable		34,785			35,841			38,173			(1,056	)		-2.9	%		(3,388	)		-8.9	%
Total securities		3,470,584			3,495,598			3,557,261			(25,014	)		-0.7	%		(86,677	)		-2.4	%
Loans (including loans held for sale)		7,505,409			7,346,333			6,554,739			159,076			2.2	%		950,670			14.5	%
Acquired loans:
Noncovered loans		335,012			361,772			462,418			(26,760	)		-7.4	%		(127,406	)		-27.6	%
Covered loans		14,728			16,663			20,574			(1,935	)		-11.6	%		(5,846	)		-28.4	%
Fed funds sold and rev repos		1,263			382			557			881		n/m				706		n/m
Other earning assets		64,000			66,702			41,242			(2,702	)		-4.1	%		22,758			55.2	%
Total earning assets		11,390,996			11,287,450			10,636,791			103,546			0.9	%		754,205			7.1	%
Allowance for loan losses		(83,614	)		(81,138	)		(84,331	)		(2,476	)		3.1	%		717			-0.9	%
Cash and due from banks		271,135			281,912			272,292			(10,777	)		-3.8	%		(1,157	)		-0.4	%
Other assets		1,240,846			1,253,282			1,288,507			(12,436	)		-1.0	%		(47,661	)		-3.7	%
Total assets	$	12,819,363		$	12,741,506		$	12,113,259		$	77,857			0.6	%	$	706,104			5.8	%

Interest-bearing demand deposits	$	1,830,107		$	1,866,043		$	1,924,447		$	(35,936	)		-1.9	%	$	(94,340	)		-4.9	%
Savings deposits		3,221,850			3,188,916			3,226,380			32,934			1.0	%		(4,530	)		-0.1	%
Time deposits less than $100,000		978,678			994,406			1,101,477			(15,728	)		-1.6	%		(122,799	)		-11.1	%
Time deposits of $100,000 or more		699,886			683,170			751,129			16,716			2.4	%		(51,243	)		-6.8	%
Total interest-bearing deposits		6,730,521			6,732,535			7,003,433			(2,014	)		0.0	%		(272,912	)		-3.9	%
Fed funds purchased and repos		488,512			517,180			497,606			(28,668	)		-5.5	%		(9,094	)		-1.8	%
Short-term borrowings		319,288			413,616			128,761			(94,328	)		-22.8	%		190,527		n/m
Long-term FHLB advances		597,269			501,144			1,213			96,125			19.2	%		596,056		n/m
Subordinated notes		49,980			49,972			49,947			8			0.0	%		33			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Total interest-bearing liabilities		8,247,426			8,276,303			7,742,816			(28,877	)		-0.3	%		504,610			6.5	%
Noninterest-bearing deposits		2,927,469			2,836,283			2,772,741			91,186			3.2	%		154,728			5.6	%
Other liabilities		131,627			134,236			143,201			(2,609	)		-1.9	%		(11,574	)		-8.1	%
Total liabilities		11,306,522			11,246,822			10,658,758			59,700			0.5	%		647,764			6.1	%
Shareholders' equity		1,512,841			1,494,684			1,454,501			18,157			1.2	%		58,340			4.0	%
Total liabilities and equity	$	12,819,363		$	12,741,506		$	12,113,259		$	77,857			0.6	%	$	706,104			5.8	%

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

										Linked Quarter						Year over Year
PERIOD END BALANCES	6/30/2016			3/31/2016			6/30/2015			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	322,049		$	228,498		$	255,050		$	93,551			40.9	%	$	66,999			26.3	%
Fed funds sold and rev repos		3,198			—			—			3,198		n/m				3,198		n/m
Securities available for sale		2,388,306			2,368,120			2,446,383			20,186			0.9	%		(58,077	)		-2.4	%
Securities held to maturity		1,173,204			1,168,203			1,190,161			5,001			0.4	%		(16,957	)		-1.4	%
Loans held for sale (LHFS)		213,546			191,028			147,539			22,518			11.8	%		66,007			44.7	%
Loans held for investment (LHFI)		7,405,181			7,268,022			6,447,073			137,159			1.9	%		958,108			14.9	%
Allowance for loan losses		(71,796	)		(69,668	)		(71,166	)		(2,128	)		3.1	%		(630	)		0.9	%
Net LHFI		7,333,385			7,198,354			6,375,907			135,031			1.9	%		957,478			15.0	%
Acquired loans:
Noncovered loans		325,196			349,781			447,160			(24,585	)		-7.0	%		(121,964	)		-27.3	%
Covered loans		13,839			14,974			19,239			(1,135	)		-7.6	%		(5,400	)		-28.1	%
Allowance for loan losses, acquired loans		(12,480	)		(13,535	)		(12,629	)		1,055			-7.8	%		149			-1.2	%
Net acquired loans		326,555			351,220			453,770			(24,665	)		-7.0	%		(127,215	)		-28.0	%
Net LHFI and acquired loans		7,659,940			7,549,574			6,829,677			110,366			1.5	%		830,263			12.2	%
Premises and equipment, net		192,732			194,453			196,220			(1,721	)		-0.9	%		(3,488	)		-1.8	%
Mortgage servicing rights		62,814			68,208			71,422			(5,394	)		-7.9	%		(8,608	)		-12.1	%
Goodwill		366,156			366,156			365,500			—			0.0	%		656			0.2	%
Identifiable intangible assets		24,058			25,751			32,042			(1,693	)		-6.6	%		(7,984	)		-24.9	%
Other real estate, excluding covered other real estate		69,502			71,806			90,748			(2,304	)		-3.2	%		(21,246	)		-23.4	%
Covered other real estate		388			496			3,755			(108	)		-21.8	%		(3,367	)		-89.7	%
FDIC indemnification asset		—			506			2,632			(506	)		-100.0	%		(2,632	)		-100.0	%
Other assets		554,456			542,397			551,319			12,059			2.2	%		3,137			0.6	%
Total assets	$	13,030,349		$	12,775,196		$	12,182,448		$	255,153			2.0	%	$	847,901			7.0	%

Deposits:
Noninterest-bearing	$	2,921,016		$	2,874,306		$	2,819,171		$	46,710			1.6	%	$	101,845			3.6	%
Interest-bearing		6,610,508			6,759,337			6,973,003			(148,829	)		-2.2	%		(362,495	)		-5.2	%
Total deposits		9,531,524			9,633,643			9,792,174			(102,119	)		-1.1	%		(260,650	)		-2.7	%
Fed funds purchased and repos		606,336			466,436			477,462			139,900			30.0	%		128,874			27.0	%
Short-term borrowings		360,434			411,385			201,744			(50,951	)		-12.4	%		158,690			78.7	%
Long-term FHLB advances		751,106			501,124			1,204			249,982			49.9	%		749,902		n/m
Subordinated notes		49,985			49,977			49,953			8			0.0	%		32			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Other liabilities		145,641			142,519			147,646			3,122			2.2	%		(2,005	)		-1.4	%
Total liabilities		11,506,882			11,266,940			10,732,039			239,942			2.1	%		774,843			7.2	%
Common stock		14,090			14,093			14,076			(3	)		0.0	%		14			0.1	%
Capital surplus		364,516			363,979			359,533			537			0.1	%		4,983			1.4	%
Retained earnings		1,157,025			1,151,757			1,117,993			5,268			0.5	%		39,032			3.5	%
Accum other comprehensive loss, net of tax		(12,164	)		(21,573	)		(41,193	)		9,409			-43.6	%		29,029			-70.5	%
Total shareholders' equity		1,523,467			1,508,256			1,450,409			15,211			1.0	%		73,058			5.0	%
Total liabilities and equity	$	13,030,349		$	12,775,196		$	12,182,448		$	255,153			2.0	%	$	847,901			7.0	%

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

	Quarter Ended								Linked Quarter						Year over Year
INCOME STATEMENTS	6/30/2016		3/31/2016			6/30/2015			$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	77,777	$	76,235		$	71,546		$	1,542			2.0	%	$	6,231			8.7	%
Interest and fees on acquired loans		8,051		7,022			12,557			1,029			14.7	%		(4,506	)		-35.9	%
Interest on securities-taxable		19,402		20,086			19,731			(684	)		-3.4	%		(329	)		-1.7	%
Interest on securities-tax exempt-FTE		1,429		1,497			1,688			(68	)		-4.5	%		(259	)		-15.3	%
Interest on fed funds sold and rev repos		4		1			2			3		n/m				2			100.0	%
Other interest income		200		230			392			(30	)		-13.0	%		(192	)		-49.0	%
Total interest income-FTE		106,863		105,071			105,916			1,792			1.7	%		947			0.9	%
Interest on deposits		3,122		3,038			3,204			84			2.8	%		(82	)		-2.6	%
Interest on fed funds pch and repos		404		431			179			(27	)		-6.3	%		225		n/m
Other interest expense		2,428		2,389			1,614			39			1.6	%		814			50.4	%
Total interest expense		5,954		5,858			4,997			96			1.6	%		957			19.2	%
Net interest income-FTE		100,909		99,213			100,919			1,696			1.7	%		(10	)		0.0	%
Provision for loan losses, LHFI		2,596		2,243			1,033			353			15.7	%		1,563		n/m
Provision for loan losses, acquired loans		607		1,309			825			(702	)		-53.6	%		(218	)		-26.4	%
Net interest income after provision-FTE		97,706		95,661			99,061			2,045			2.1	%		(1,355	)		-1.4	%
Service charges on deposit accounts		11,051		11,081			11,920			(30	)		-0.3	%		(869	)		-7.3	%
Insurance commissions		9,638		8,593			9,401			1,045			12.2	%		237			2.5	%
Wealth management		8,009		7,407			7,758			602			8.1	%		251			3.2	%
Bank card and other fees		7,436		6,918			7,416			518			7.5	%		20			0.3	%
Mortgage banking, net		6,721		8,699			9,481			(1,978	)		-22.7	%		(2,760	)		-29.1	%
Other, net		1,372		888			(433	)		484			54.5	%		1,805		n/m
Nonint inc-excl sec gains (losses), net		44,227		43,586			45,543			641			1.5	%		(1,316	)		-2.9	%
Security gains (losses), net		-		(310	)		—			310			-100.0	%		-		n/m
Total noninterest income		44,227		43,276			45,543			951			2.2	%		(1,316	)		-2.9	%
Salaries and employee benefits		67,018		57,201			57,393			9,817			17.2	%		9,625			16.8	%
Services and fees		14,522		14,475			15,005			47			0.3	%		(483	)		-3.2	%
Net occupancy-premises		5,928		6,188			6,243			(260	)		-4.2	%		(315	)		-5.0	%
Equipment expense		5,896		6,094			5,903			(198	)		-3.2	%		(7	)		-0.1	%
FDIC assessment expense		2,959		2,811			2,615			148			5.3	%		344			13.2	%
ORE/Foreclosure expense		1,193		181			921			1,012		n/m				272			29.5	%
Other expense		12,663		11,994			12,186			669			5.6	%		477			3.9	%
Total noninterest expense		110,179		98,944			100,266			11,235			11.4	%		9,913			9.9	%
Income before income taxes and tax eq adj		31,754		39,993			44,338			(8,239	)		-20.6	%		(12,584	)		-28.4	%
Tax equivalent adjustment		4,532		4,473			3,970			59			1.3	%		562			14.2	%
Income before income taxes		27,222		35,520			40,368			(8,298	)		-23.4	%		(13,146	)		-32.6	%
Income taxes		5,719		8,517			9,766			(2,798	)		-32.9	%		(4,047	)		-41.4	%
Net income	$	21,503	$	27,003		$	30,602		$	(5,500	)		-20.4	%	$	(9,099	)		-29.7	%

Per share data
Earnings per share - basic	$	0.32	$	0.40		$	0.45		$	(0.08	)		-20.0	%	$	(0.13	)		-28.9	%

Earnings per share - diluted	$	0.32	$	0.40		$	0.45		$	(0.08	)		-20.0	%	$	(0.13	)		-28.9	%

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

Weighted average shares outstanding
Basic		67,619,571		67,609,662			67,556,825

Diluted		67,770,174		67,746,592			67,685,449

Period end shares outstanding		67,623,601		67,639,832			67,557,395

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

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS (1)	6/30/2016			3/31/2016			6/30/2015			$ Change			% Change			$ Change			% Change
Nonaccrual loans
Alabama	$	1,379		$	1,788		$	713		$	(409	)		-22.9	%	$	666			93.4	%
Florida		1,806			4,952			7,892			(3,146	)		-63.5	%		(6,086	)		-77.1	%
Mississippi (2)		54,543			56,590			52,051			(2,047	)		-3.6	%		2,492			4.8	%
Tennessee (3)		5,345			5,849			5,468			(504	)		-8.6	%		(123	)		-2.2	%
Texas		2,055			1,515			2,314			540			35.6	%		(259	)		-11.2	%
Total nonaccrual loans		65,128			70,694			68,438			(5,566	)		-7.9	%		(3,310	)		-4.8	%
Other real estate
Alabama		18,031			19,137			21,849			(1,106	)		-5.8	%		(3,818	)		-17.5	%
Florida		28,052			27,907			31,059			145			0.5	%		(3,007	)		-9.7	%
Mississippi (2)		14,435			14,511			14,094			(76	)		-0.5	%		341			2.4	%
Tennessee (3)		7,432			8,699			9,707			(1,267	)		-14.6	%		(2,275	)		-23.4	%
Texas		1,552			1,552			14,039			-			0.0	%		(12,487	)		-88.9	%
Total other real estate		69,502			71,806			90,748			(2,304	)		-3.2	%		(21,246	)		-23.4	%
Total nonperforming assets	$	134,630		$	142,500		$	159,186		$	(7,870	)		-5.5	%	$	(24,556	)		-15.4	%

LOANS PAST DUE OVER 90 DAYS (4)
LHFI	$	3,382		$	611		$	1,771		$	2,771		n/m			$	1,611			91.0	%

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	23,473		$	24,110		$	11,987		$	(637	)		-2.6	%	$	11,486			95.8	%

	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES (4)	6/30/2016			3/31/2016			6/30/2015			$ Change			% Change			$ Change			% Change
Beginning Balance	$	69,668		$	67,619		$	71,321		$	2,049			3.0	%	$	(1,653	)		-2.3	%
Provision for loan losses		2,596			2,243			1,033			353			15.7	%		1,563		n/m
Charge-offs		(3,251	)		(3,363	)		(4,278	)		112			-3.3	%		1,027			-24.0	%
Recoveries		2,783			3,169			3,090			(386	)		-12.2	%		(307	)		-9.9	%
Net (charge-offs) recoveries		(468	)		(194	)		(1,188	)		(274	)	n/m				720			-60.6	%
Ending Balance	$	71,796		$	69,668		$	71,166		$	2,128			3.1	%	$	630			0.9	%

PROVISION FOR LOAN LOSSES (4)
Alabama	$	1,189		$	540		$	623		$	649		n/m			$	566			90.9	%
Florida		(364	)		(818	)		(1,168	)		454			-55.5	%		804			-68.8	%
Mississippi (2)		(833	)		1,848			2,046			(2,681	)	n/m				(2,879	)	n/m
Tennessee (3)		726			138			(483	)		588		n/m				1,209		n/m
Texas		1,878			535			15			1,343		n/m				1,863		n/m
Total provision for loan losses	$	2,596		$	2,243		$	1,033		$	353			15.7	%	$	1,563		n/m

NET CHARGE-OFFS (4)
Alabama	$	436		$	63		$	216		$	373		n/m			$	220		n/m
Florida		(595	)		(674	)		539			79			-11.7	%		(1,134	)	n/m
Mississippi (2)		(237	)		(74	)		1,028			(163	)	n/m				(1,265	)	n/m
Tennessee (3)		252			8			105			244		n/m				147		n/m
Texas		612			871			(700	)		(259	)		-29.7	%		1,312		n/m
Total net charge-offs (recoveries)	$	468		$	194		$	1,188		$	274		n/m			$	(720	)		-60.6	%

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

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

	Quarter Ended															Six Months Ended
AVERAGE BALANCES	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015			6/30/2016			6/30/2015
Securities AFS-taxable	$	2,214,040		$	2,211,479		$	2,209,801		$	2,269,763		$	2,255,485		$	2,212,760		$	2,223,094
Securities AFS-nontaxable		99,296			105,844			110,290			116,290			120,330			102,570			123,956
Securities HTM-taxable		1,122,463			1,142,434			1,145,397			1,151,673			1,143,273			1,132,449			1,131,690
Securities HTM-nontaxable		34,785			35,841			35,755			36,278			38,173			35,313			39,780
Total securities		3,470,584			3,495,598			3,501,243			3,574,004			3,557,261			3,483,092			3,518,520
Loans (including loans held for sale)		7,505,409			7,346,333			7,089,672			6,771,947			6,554,739			7,425,871			6,558,066
Acquired loans:
Noncovered loans		335,012			361,772			384,306			421,262			462,418			348,392			482,365
Covered loans		14,728			16,663			18,341			18,982			20,574			15,696			22,075
Fed funds sold and rev repos		1,263			382			1,384			1,167			557			823			388
Other earning assets		64,000			66,702			68,016			58,534			41,242			65,351			43,791
Total earning assets		11,390,996			11,287,450			11,062,962			10,845,896			10,636,791			11,339,225			10,625,205
Allowance for loan losses		(83,614	)		(81,138	)		(78,652	)		(84,482	)		(84,331	)		(82,376	)		(83,168	)
Cash and due from banks		271,135			281,912			272,562			266,174			272,292			276,524			281,222
Other assets		1,240,846			1,253,282			1,266,712			1,286,189			1,288,507			1,247,062			1,295,989
Total assets	$	12,819,363		$	12,741,506		$	12,523,584		$	12,313,777		$	12,113,259		$	12,780,435		$	12,119,248

Interest-bearing demand deposits	$	1,830,107		$	1,866,043		$	1,917,598		$	1,915,567		$	1,924,447		$	1,848,075		$	1,886,123
Savings deposits		3,221,850			3,188,916			2,963,318			3,059,183			3,226,380			3,205,383			3,239,411
Time deposits less than $100,000		978,678			994,406			1,033,233			1,072,373			1,101,477			986,542			1,120,588
Time deposits of $100,000 or more		699,886			683,170			687,635			712,910			751,129			691,528			768,326
Total interest-bearing deposits		6,730,521			6,732,535			6,601,784			6,760,033			7,003,433			6,731,528			7,014,448
Fed funds purchased and repos		488,512			517,180			563,424			528,232			497,606			502,846			459,617
Short-term borrowings		319,288			413,616			733,365			534,931			128,761			366,452			192,384
Long-term FHLB advances		597,269			501,144			50,078			1,195			1,213			549,207			1,228
Subordinated notes		49,980			49,972			49,964			49,955			49,947			49,976			49,943
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		8,247,426			8,276,303			8,060,471			7,936,202			7,742,816			8,261,865			7,779,476
Noninterest-bearing deposits		2,927,469			2,836,283			2,839,894			2,771,186			2,772,741			2,881,876			2,757,428
Other liabilities		131,627			134,236			141,925			137,134			143,201			132,931			136,561
Total liabilities		11,306,522			11,246,822			11,042,290			10,844,522			10,658,758			11,276,672			10,673,465
Shareholders' equity		1,512,841			1,494,684			1,481,294			1,469,255			1,454,501			1,503,763			1,445,783
Total liabilities and equity	$	12,819,363		$	12,741,506		$	12,523,584		$	12,313,777		$	12,113,259		$	12,780,435		$	12,119,248

PERIOD END BALANCES	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Cash and due from banks	$	322,049		$	228,498		$	277,751		$	220,052		$	255,050
Fed funds sold and rev repos		3,198			—			250			—			—
Securities available for sale		2,388,306			2,368,120			2,345,422			2,382,822			2,446,383
Securities held to maturity		1,173,204			1,168,203			1,187,818			1,178,440			1,190,161
Loans held for sale (LHFS)		213,546			191,028			160,189			173,679			147,539
Loans held for investment (LHFI)		7,405,181			7,268,022			7,091,385			6,791,643			6,447,073
Allowance for loan losses		(71,796	)		(69,668	)		(67,619	)		(65,607	)		(71,166	)
Net LHFI		7,333,385			7,198,354			7,023,766			6,726,036			6,375,907
Acquired loans:
Noncovered loans		325,196			349,781			372,711			400,528			447,160
Covered loans		13,839			14,974			17,700			18,645			19,239
Allowance for loan losses, acquired loans		(12,480	)		(13,535	)		(11,992	)		(12,185	)		(12,629	)
Net acquired loans		326,555			351,220			378,419			406,988			453,770
Net LHFI and acquired loans		7,659,940			7,549,574			7,402,185			7,133,024			6,829,677
Premises and equipment, net		192,732			194,453			195,656			196,558			196,220
Mortgage servicing rights		62,814			68,208			74,007			69,809			71,422
Goodwill		366,156			366,156			366,156			365,500			365,500
Identifiable intangible assets		24,058			25,751			27,546			30,129			32,042
Other real estate, excluding covered other real estate		69,502			71,806			77,177			83,955			90,748
Covered other real estate		388			496			1,651			2,865			3,755
FDIC indemnification asset		-			506			738			1,749			2,632
Other assets		554,456			542,397			562,350			551,694			551,319
Total assets	$	13,030,349		$	12,775,196		$	12,678,896		$	12,390,276		$	12,182,448

Deposits:
Noninterest-bearing	$	2,921,016		$	2,874,306		$	2,998,694		$	2,787,454		$	2,819,171
Interest-bearing		6,610,508			6,759,337			6,589,536			6,624,950			6,973,003
Total deposits		9,531,524			9,633,643			9,588,230			9,412,404			9,792,174
Fed funds purchased and repos		606,336			466,436			441,042			534,204			477,462
Short-term borrowings		360,434			411,385			412,617			709,845			201,744
Long-term FHLB advances		751,106			501,124			501,155			1,173			1,204
Subordinated notes		49,985			49,977			49,969			49,961			49,953
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
Other liabilities		145,641			142,519			150,970			144,077			147,646
Total liabilities		11,506,882			11,266,940			11,205,839			10,913,520			10,732,039
Common stock		14,090			14,093			14,076			14,076			14,076
Capital surplus		364,516			363,979			361,467			360,494			359,533
Retained earnings		1,157,025			1,151,757			1,142,908			1,130,766			1,117,993
Accum other comprehensive loss, net of tax		(12,164	)		(21,573	)		(45,394	)		(28,580	)		(41,193	)
Total shareholders' equity		1,523,467			1,508,256			1,473,057			1,476,756			1,450,409
Total liabilities and equity	$	13,030,349		$	12,775,196		$	12,678,896		$	12,390,276		$	12,182,448

	Quarter Ended													Six Months Ended
INCOME STATEMENTS	6/30/2016		3/31/2016			12/31/2015			9/30/2015		6/30/2015			6/30/2016			6/30/2015
Interest and fees on LHFS & LHFI-FTE	$	77,777	$	76,235		$	74,383		$	72,951	$	71,546		$	154,012		$	141,204
Interest and fees on acquired loans		8,051		7,022			11,910			11,607		12,557			15,073			27,635
Interest on securities-taxable		19,402		20,086			21,149			20,264		19,731			39,488			39,317
Interest on securities-tax exempt-FTE		1,429		1,497			1,565			1,609		1,688			2,926			3,477
Interest on fed funds sold and rev repos		4		1			4			2		2			5			2
Other interest income		200		230			402			392		392			430			785
Total interest income-FTE		106,863		105,071			109,413			106,825		105,916			211,934			212,420
Interest on deposits		3,122		3,038			3,000			3,147		3,204			6,160			6,451
Interest on fed funds pch and repos		404		431			274			205		179			835			322
Other interest expense		2,428		2,389			1,987			1,811		1,614			4,817			3,263
Total interest expense		5,954		5,858			5,261			5,163		4,997			11,812			10,036
Net interest income-FTE		100,909		99,213			104,152			101,662		100,919			200,122			202,384
Provision for loan losses, LHFI		2,596		2,243			3,043			2,514		1,033			4,839			2,818
Provision for loan losses, acquired loans		607		1,309			997			1,256		825			1,916			1,172
Net interest income after provision-FTE		97,706		95,661			100,112			97,892		99,061			193,367			198,394
Service charges on deposit accounts		11,051		11,081			11,961			12,400		11,920			22,132			23,005
Insurance commissions		9,638		8,593			8,501			9,906		9,401			18,231			18,017
Wealth management		8,009		7,407			7,831			7,790		7,758			15,416			15,748
Bank card and other fees		7,436		6,918			7,156			6,964		7,416			14,354			14,178
Mortgage banking, net		6,721		8,699			4,287			7,443		9,481			15,420			18,446
Other, net		1,372		888			(466	)		1,470		(433	)		2,260			(1,488	)
Nonint inc-excl sec gains (losses), net		44,227		43,586			39,270			45,973		45,543			87,813			87,906
Security gains (losses), net		—		(310	)		—			—		—			(310	)		—
Total noninterest income		44,227		43,276			39,270			45,973		45,543			87,503			87,906
Salaries and employee benefits		67,018		57,201			57,366			58,270		57,393			124,219			114,562
Services and fees		14,522		14,475			13,717			14,691		15,005			28,997			29,126
Net occupancy-premises		5,928		6,188			6,304			6,580		6,243			12,116			12,434
Equipment expense		5,896		6,094			6,105			5,877		5,903			11,990			11,877
FDIC assessment expense		2,959		2,811			2,614			2,559		2,615			5,770			5,555
ORE/Foreclosure expense		1,193		181			(518	)		3,385		921			1,374			2,036
Other expense		12,663		11,994			13,032			12,198		12,186			24,657			23,892
Total noninterest expense		110,179		98,944			98,620			103,560		100,266			209,123			199,482
Income before income taxes and tax eq adj		31,754		39,993			40,762			40,305		44,338			71,747			86,818
Tax equivalent adjustment		4,532		4,473			4,334			4,056		3,970			9,005			8,043
Income before income taxes		27,222		35,520			36,428			36,249		40,368			62,742			78,775
Income taxes		5,719		8,517			8,570			7,819		9,766			14,236			19,025
Net income	$	21,503	$	27,003		$	27,858		$	28,430	$	30,602		$	48,506		$	59,750

Per share data
Earnings per share - basic	$	0.32	$	0.40		$	0.41		$	0.42	$	0.45		$	0.72		$	0.88

Earnings per share - diluted	$	0.32	$	0.40		$	0.41		$	0.42	$	0.45		$	0.72		$	0.88

Dividends per share	$	0.23	$	0.23		$	0.23		$	0.23	$	0.23		$	0.46		$	0.46

Weighted average shares outstanding
Basic		67,619,571		67,609,662			67,557,991			67,557,395		67,556,825			67,614,616			67,541,394

Diluted		67,770,174		67,746,592			67,734,109			67,707,456		67,685,449			67,761,315			67,662,757

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

	Quarter Ended
NONPERFORMING ASSETS (1)	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Nonaccrual loans
Alabama	$	1,379		$	1,788		$	1,776		$	1,306		$	713
Florida		1,806			4,952			5,180			7,444			7,892
Mississippi (2)		54,543			56,590			40,754			44,955			52,051
Tennessee (3)		5,345			5,849			5,106			4,911			5,468
Texas		2,055			1,515			2,496			2,515			2,314
Total nonaccrual loans		65,128			70,694			55,312			61,131			68,438
Other real estate
Alabama		18,031			19,137			21,578			23,822			21,849
Florida		28,052			27,907			29,579			30,374			31,059
Mississippi (2)		14,435			14,511			14,312			13,180			14,094
Tennessee (3)		7,432			8,699			9,974			9,840			9,707
Texas		1,552			1,552			1,734			6,739			14,039
Total other real estate		69,502			71,806			77,177			83,955			90,748
Total nonperforming assets	$	134,630		$	142,500		$	132,489		$	145,086		$	159,186

LOANS PAST DUE OVER 90 DAYS (4)
LHFI	$	3,382		$	611		$	2,300		$	9,224		$	1,771

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	23,473		$	24,110		$	21,812		$	15,165		$	11,987


	Quarter Ended															Six Months Ended
ALLOWANCE FOR LOAN LOSSES (4)	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015			6/30/2016			6/30/2015
Beginning Balance	$	69,668		$	67,619		$	65,607		$	71,166		$	71,321		$	67,619		$	69,616
Provision for loan losses		2,596			2,243			3,043			2,514			1,033			4,839			2,818
Charge-offs		(3,251	)		(3,363	)		(3,781	)		(11,406	)		(4,278	)		(6,614	)		(7,282	)
Recoveries		2,783			3,169			2,750			3,333			3,090			5,952			6,014
Net charge-offs		(468	)		(194	)		(1,031	)		(8,073	)		(1,188	)		(662	)		(1,268	)
Ending Balance	$	71,796		$	69,668		$	67,619		$	65,607		$	71,166		$	71,796		$	71,166

PROVISION FOR LOAN LOSSES (4)
Alabama	$	1,189		$	540		$	1,453		$	(70	)	$	623		$	1,729		$	1,384
Florida		(364	)		(818	)		(1,357	)		(1,430	)		(1,168	)		(1,182	)		665
Mississippi (2)		(833	)		1,848			1,842			4,221			2,046			1,015			(683	)
Tennessee (3)		726			138			182			(1,050	)		(483	)		864			949
Texas		1,878			535			923			843			15			2,413			503
Total provision for loan losses	$	2,596		$	2,243		$	3,043		$	2,514		$	1,033		$	4,839		$	2,818

NET CHARGE-OFFS (4)
Alabama	$	436		$	63		$	422		$	163		$	216		$	499		$	360
Florida		(595	)		(674	)		(389	)		(1,090	)		539			(1,269	)		511
Mississippi (2)		(237	)		(74	)		925			7,391			1,028			(311	)		1,171
Tennessee (3)		252			8			188			448			105			260			(111	)
Texas		612			871			(115	)		1,161			(700	)		1,483			(663	)
Total net charge-offs	$	468		$	194		$	1,031		$	8,073		$	1,188		$	662		$	1,268

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

	Quarter Ended															Six Months Ended
FINANCIAL RATIOS AND OTHER DATA	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015			6/30/2016			6/30/2015
Return on equity		5.72	%		7.27	%		7.46	%		7.68	%		8.44	%		6.49	%		8.33	%
Return on average tangible equity		8.08	%		10.26	%		10.61	%		10.96	%		12.05	%		9.16	%		11.96	%
Return on assets		0.67	%		0.85	%		0.88	%		0.92	%		1.01	%		0.76	%		0.99	%
Interest margin - Yield - FTE		3.77	%		3.74	%		3.92	%		3.91	%		3.99	%		3.76	%		4.03	%
Interest margin - Cost		0.21	%		0.21	%		0.19	%		0.19	%		0.19	%		0.21	%		0.19	%
Net interest margin - FTE		3.56	%		3.54	%		3.74	%		3.72	%		3.81	%		3.55	%		3.84	%
Efficiency ratio (1)		67.20	%		66.87	%		66.03	%		67.87	%		66.00	%		67.04	%		66.23	%
Full-time equivalent employees		2,818			2,946			2,941			2,963			2,989

CREDIT QUALITY RATIOS (2)
Net charge-offs/average loans		0.03	%		0.01	%		0.06	%		0.47	%		0.07	%		0.02	%		0.04	%
Provision for loan losses/average loans		0.14	%		0.12	%		0.17	%		0.15	%		0.06	%		0.13	%		0.09	%
Nonperforming loans/total loans (incl LHFS)		0.85	%		0.95	%		0.76	%		0.88	%		1.04	%
Nonperforming assets/total loans (incl LHFS)		1.77	%		1.91	%		1.83	%		2.08	%		2.41	%
Nonperforming assets/total loans (incl LHFS) +ORE		1.75	%		1.89	%		1.81	%		2.06	%		2.38	%
ALL/total loans (excl LHFS)		0.97	%		0.96	%		0.95	%		0.97	%		1.10	%
ALL-commercial/total commercial loans		1.05	%		1.06	%		1.05	%		1.07	%		1.30	%
ALL-consumer/total consumer and home mortgage loans		0.70	%		0.65	%		0.66	%		0.67	%		0.59	%
ALL/nonperforming loans		110.24	%		98.55	%		122.25	%		107.32	%		103.99	%
ALL/nonperforming loans (excl specifically reviewed impaired loans)		231.13	%		203.24	%		210.32	%		206.72	%		192.60	%

CAPITAL RATIOS
Total equity/total assets		11.69	%		11.81	%		11.62	%		11.92	%		11.91	%
Tangible equity/tangible assets		8.97	%		9.01	%		8.79	%		9.01	%		8.93	%
Tangible equity/risk-weighted assets		11.85	%		11.84	%		11.68	%		12.24	%		12.34	%
Tier 1 leverage ratio		9.93	%		9.93	%		10.03	%		10.09	%		10.14	%
Common equity tier 1 capital ratio		12.32	%		12.41	%		12.57	%		13.00	%		13.28	%
Tier 1 risk-based capital ratio		12.94	%		13.04	%		13.21	%		13.66	%		13.97	%
Total risk-based capital ratio		13.82	%		13.92	%		14.07	%		14.66	%		15.07	%

STOCK PERFORMANCE
Market value-Close	$	24.85		$	23.03		$	23.04		$	23.17		$	24.98
Book value	$	22.53		$	22.30		$	21.80		$	21.86		$	21.47
Tangible book value	$	16.76		$	16.50		$	15.98		$	16.00		$	15.58

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

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

	6/30/2016		3/31/2016		12/31/2015		9/30/2015		6/30/2015
SECURITIES AVAILABLE FOR SALE
U.S. Government agency obligations
Issued by U.S. Government agencies	$	61,359	$	63,814	$	68,135	$	71,282	$	74,409
Issued by U.S. Government sponsored agencies		286		286		281		23,016		33,009
Obligations of states and political subdivisions		129,285		135,655		138,609		147,794		151,322
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		29,282		25,081		25,812		26,651		20,651
Issued by FNMA and FHLMC		428,542		330,558		225,542		177,411		185,651
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		1,474,357		1,540,541		1,582,860		1,630,402		1,662,476
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		265,195		272,185		279,226		279,609		290,398
Asset-backed securities and structured financial products		—		—		24,957		26,657		28,467
Total securities available for sale	$	2,388,306	$	2,368,120	$	2,345,422	$	2,382,822	$	2,446,383

SECURITIES HELD TO MATURITY
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	31,142	$	63,085	$	101,782	$	101,578	$	101,374
Obligations of states and political subdivisions		53,473		54,278		55,892		56,661		56,978
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		16,415		16,590		17,363		17,783		18,265
Issued by FNMA and FHLMC		42,267		9,871		10,368		10,669		10,965
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		824,175		818,201		820,012		808,763		838,989
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		205,732		206,178		182,401		182,986		163,590
Total securities held to maturity	$	1,173,204	$	1,168,203	$	1,187,818	$	1,178,440	$	1,190,161

During 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax). The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. At June 30, 2016, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive (loss) income in the accompanying balance sheet totaled approximately $28.3 million ($17.5 million, net of tax).

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

	June 30, 2016
LHFI - COMPOSITION BY REGION (1)	Total		Alabama		Florida		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and Northern MS Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	718,438	$	135,760	$	60,555	$	263,590	$	39,429	$	219,104
Secured by 1-4 family residential properties		1,620,013		66,770		48,831		1,379,746		106,845		17,821
Secured by nonfarm, nonresidential properties		1,900,784		268,607		161,025		878,342		137,101		455,709
Other real estate secured		323,734		19,172		4,285		144,120		33,028		123,129
Commercial and industrial loans		1,466,511		132,295		16,788		746,681		274,851		295,896
Consumer loans		166,436		19,229		3,175		123,956		17,807		2,269
State and other political subdivision loans		805,401		62,656		29,902		537,269		30,265		145,309
Other loans		403,864		37,703		19,402		264,620		40,707		41,432
Loans	$	7,405,181	$	742,192	$	343,963	$	4,338,324	$	680,033	$	1,300,669

CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION (1)
Lots	$	56,331	$	11,135	$	19,657	$	18,974	$	3,420	$	3,145
Development		58,621		6,908		6,084		26,007		681		18,941
Unimproved land		113,354		15,635		17,240		44,565		17,441		18,473
1-4 family construction		169,967		39,818		9,888		71,814		2,117		46,330
Other construction		320,165		62,264		7,686		102,230		15,770		132,215
Construction, land development and other land loans	$	718,438	$	135,760	$	60,555	$	263,590	$	39,429	$	219,104

LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION (1)
Income producing:
Retail	$	291,267	$	83,170	$	36,264	$	98,482	$	20,141	$	53,210
Office		220,773		30,879		29,886		80,288		6,507		73,213
Nursing homes/assisted living		108,982		—		—		103,691		5,291		—
Hotel/motel		181,738		37,641		19,481		44,432		31,788		48,396
Mini-storage		110,733		5,259		5,574		52,453		548		46,899
Industrial		86,429		18,173		9,365		16,447		4,357		38,087
Health care		26,461		2,222		849		23,390		—		—
Convenience stores		17,817		227		—		10,192		1,060		6,338
Other		74,425		6,188		11,059		24,706		3,072		29,400
Total income producing loans		1,118,625		183,759		112,478		454,081		72,764		295,543

Owner-occupied:
Office		143,101		14,698		22,726		77,502		8,208		19,967
Churches		89,589		8,907		2,157		45,630		24,262		8,633
Industrial warehouses		127,959		6,508		3,838		60,985		10,826		45,802
Health care		117,189		20,453		6,311		62,472		8,179		19,774
Convenience stores		81,780		7,197		2,425		48,219		1,308		22,631
Retail		34,116		3,976		5,735		18,470		2,128		3,807
Restaurants		35,019		3,656		1,677		23,948		3,582		2,156
Auto dealerships		13,676		7,926		44		4,536		1,170		—
Other		139,730		11,527		3,634		82,499		4,674		37,396
Total owner-occupied loans		782,159		84,848		48,547		424,261		64,337		160,166
Loans secured by nonfarm, nonresidential properties	$	1,900,784	$	268,607	$	161,025	$	878,342	$	137,101	$	455,709

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
	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015			6/30/2016			6/30/2015
Securities – taxable		2.34	%		2.41	%		2.50	%		2.35	%		2.33	%		2.37	%		2.36	%
Securities – nontaxable		4.29	%		4.25	%		4.25	%		4.18	%		4.27	%		4.27	%		4.28	%
Securities – total		2.41	%		2.48	%		2.57	%		2.43	%		2.42	%		2.45	%		2.45	%
Loans - LHFI & LHFS		4.17	%		4.17	%		4.16	%		4.27	%		4.38	%		4.17	%		4.34	%
Acquired loans		9.26	%		7.46	%		11.74	%		10.46	%		10.43	%		8.33	%		11.05	%
Loans - total		4.39	%		4.33	%		4.57	%		4.65	%		4.79	%		4.36	%		4.82	%
FF sold & rev repo		1.27	%		1.05	%		1.15	%		0.68	%		1.44	%		1.22	%		1.04	%
Other earning assets		1.26	%		1.39	%		2.34	%		2.66	%		3.81	%		1.32	%		3.61	%
Total earning assets		3.77	%		3.74	%		3.92	%		3.91	%		3.99	%		3.76	%		4.03	%

Interest-bearing deposits		0.19	%		0.18	%		0.18	%		0.18	%		0.18	%		0.18	%		0.19	%
FF pch & repo		0.33	%		0.34	%		0.19	%		0.15	%		0.14	%		0.33	%		0.14	%
Other borrowings		0.95	%		0.94	%		0.88	%		1.11	%		2.68	%		0.94	%		2.15	%
Total interest-bearing liabilities		0.29	%		0.28	%		0.26	%		0.26	%		0.26	%		0.29	%		0.26	%

Net interest margin		3.56	%		3.54	%		3.74	%		3.72	%		3.81	%		3.55	%		3.84	%
Net interest margin excluding acquired loans		3.38	%		3.40	%		3.43	%		3.43	%		3.49	%		3.39	%		3.48	%

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding acquired loans, which equals reported net interest income-FTE excluding interest income on acquired loans, annualized, as a percent of average earning assets excluding average acquired loans. The net interest margin increased 2 basis points during the second quarter of 2016. This increase was primarily due to an increase in recoveries on acquired loans of $1.6 million during the second quarter of 2016 compared to the first quarter of 2016.

The net interest margin included yield maintenance payments on prepaid securities of $33 thousand during the second quarter of 2016 compared to $389 thousand during the first quarter of 2016. Excluding the yield maintenance payments on prepaid securities, the net interest margin excluding acquired loans was not impacted during the second quarter of 2016 and totaled 3.38% during the first quarter of 2016.

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative ineffectiveness of $1.9 million for the quarter ended June 30, 2016 compared to a net positive ineffectiveness of $2.1 million for the quarter ended June 30, 2015.

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

In April 2016, Trustmark announced a voluntary early retirement program for associates age 60 and above with five or more years of service. The cost of this program is reflected in a one-time, pre-tax charge of approximately $9.3 million (salaries and benefits of $9.1 million and other miscellaneous expense of $230 thousand), or $0.085 per basic share net of tax, in Trustmark’s second quarter 2016 earnings. During the second half of 2016, pre-tax salary and employee benefits expense savings resulting from the implementation of the early retirement program are expected to total $4.2 million, or $0.039 per basic share net of tax. In 2017, these pre-tax salary and employee benefits expense savings are expected to total approximately $8.5 million, or $0.077 per basic share net of tax.

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

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

In order to terminate the Plan, in accordance with Internal Revenue Service and Pension Benefit Guaranty Corporation requirements, Trustmark is required to fully fund the Plan on a termination basis (approximately $67 million after giving effect to the necessary transfer of Plan assets to the Spin-Off Plan) and will contribute the additional assets necessary to do so. The final distributions will be made from current plan assets of approximately $55 million and a one-time pension settlement expense of approximately $12 million (pre-tax) will be recognized when paid by Trustmark during the second quarter of 2017. Further, as a result of Trustmark’s de-risking investment strategy for the Plan as of June 30, 2016, the expected rate of return on Plan assets during the second half of 2016 will be decreased from 6% to 2.5%. Accordingly, Trustmark anticipates that its periodic benefit cost for the Plan for this period will increase by approximately $1.2 million (pre-tax). Participants in the Plan will have a choice of receiving a lump sum cash payment or annuity payments under a group annuity contract purchased from an insurance carrier, subject to certain exceptions. As a result of the termination of the Plan, each participant will become fully vested in his or her accrued benefits under the Plan.

After the distribution of Plan assets during the second quarter of 2017, Trustmark estimates that its projected benefit obligation and annual pension expense related to the Spin-Off Plan will be approximately $10 million and $900 thousand (pre-tax), respectively, and these actions will reduce annual pension expense by approximately $3-$4 million (pre-tax).

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

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

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

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

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

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

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

		Quarter Ended															Six Months Ended
		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015			6/30/2016			6/30/2015
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,512,841		$	1,494,684		$	1,481,294		$	1,469,255		$	1,454,501		$	1,503,763		$	1,445,783
Less: Goodwill			(366,156	)		(366,156	)		(365,945	)		(365,500	)		(365,500	)		(366,156	)		(365,500	)
Identifiable intangible assets			(24,961	)		(26,709	)		(28,851	)		(31,144	)		(30,385	)		(25,835	)		(31,386	)
Total average tangible equity		$	1,121,724		$	1,101,819		$	1,086,498		$	1,072,611		$	1,058,616		$	1,111,772		$	1,048,897

PERIOD END BALANCES
Total shareholders' equity		$	1,523,467		$	1,508,256		$	1,473,057		$	1,476,756		$	1,450,409
Less: Goodwill			(366,156	)		(366,156	)		(366,156	)		(365,500	)		(365,500	)
Identifiable intangible assets			(24,058	)		(25,751	)		(27,546	)		(30,129	)		(32,042	)
Total tangible equity	(a)	$	1,133,253		$	1,116,349		$	1,079,355		$	1,081,127		$	1,052,867

TANGIBLE ASSETS
Total assets		$	13,030,349		$	12,775,196		$	12,678,896		$	12,390,276		$	12,182,448
Less: Goodwill			(366,156	)		(366,156	)		(366,156	)		(365,500	)		(365,500	)
Identifiable intangible assets			(24,058	)		(25,751	)		(27,546	)		(30,129	)		(32,042	)
Total tangible assets	(b)	$	12,640,135		$	12,383,289		$	12,285,194		$	11,994,647		$	11,784,906
Risk-weighted assets	(c)	$	9,559,816		$	9,431,021		$	9,242,902		$	8,831,355		$	8,530,144

NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	21,503		$	27,003		$	27,858		$	28,430		$	30,602		$	48,506		$	59,750
Plus: Intangible amortization net of tax			1,045			1,109			1,191			1,199			1,210			2,154			2,439
Net income adjusted for intangible amortization		$	22,548		$	28,112		$	29,049		$	29,629		$	31,812		$	50,660		$	62,189
Period end common shares outstanding	(d)		67,623,601			67,639,832			67,559,128			67,557,395			67,557,395

TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			8.08	%		10.26	%		10.61	%		10.96	%		12.05	%		9.16	%		11.96	%
Tangible equity/tangible assets	(a)/(b)		8.97	%		9.01	%		8.79	%		9.01	%		8.93	%
Tangible equity/risk-weighted assets	(a)/(c)		11.85	%		11.84	%		11.68	%		12.24	%		12.34	%
Tangible book value	(a)/(d)*1,000	$	16.76		$	16.50		$	15.98		$	16.00		$	15.58

COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,523,467		$	1,508,256		$	1,473,057		$	1,476,756		$	1,450,409
AOCI-related adjustments			12,164			21,573			45,394			28,580			41,193
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(348,158	)		(348,515	)		(348,873	)		(348,587	)		(348,940	)
Other adjustments and deductions for CET1 (2)			(10,042	)		(10,861	)		(7,980	)		(8,888	)		(9,568	)
CET1 capital	(e)		1,177,431			1,170,453			1,161,598			1,147,861			1,133,094
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Less: additional tier 1 capital deductions			(328	)		(434	)		(1,063	)		(1,287	)		(1,571	)
Additional tier 1 capital			59,672			59,566			58,937			58,713			58,429
Tier 1 capital		$	1,237,103		$	1,230,019		$	1,220,535		$	1,206,574		$	1,191,523

Common equity tier 1 capital ratio	(e)/(c)		12.32	%		12.41	%		12.57	%		13.00	%		13.28	%

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

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

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

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

	Quarter Ended											Six Months Ended
	6/30/2016						6/30/2015					6/30/2016						6/30/2015
	Amount			Diluted EPS			Amount			Diluted EPS		Amount			Diluted EPS			Amount			Diluted EPS
Net Income (GAAP)	$	21,503		$	0.317		$	30,602		$	0.452	$	48,506		$	0.716		$	59,750		$	0.883

Significant non-routine transactions (net of taxes):
Non-routine early retirement
program expense		5,738			0.085			—			—		5,738			0.085			—			—
Net Income adjusted for significant
non-routine transactions (Non-GAAP)	$	27,241		$	0.402		$	30,602		$	0.452	$	54,244		$	0.801		$	59,750		$	0.883

	Reported			Adjusted			Reported			Adjusted		Reported			Adjusted			Reported			Adjusted
	(GAAP)			(Non-GAAP)			(GAAP)			(Non-GAAP)		(GAAP)			(Non-GAAP)			(GAAP)			(Non-GAAP)
Return on equity		5.72	%		7.24	%		8.44	%	n/a			6.49	%		7.25	%		8.33	%	n/a
Return on average tangible equity		8.08	%		10.14	%		12.05	%	n/a			9.16	%		10.20	%		11.96	%	n/a
Return on assets		0.67	%		0.85	%		1.01	%	n/a			0.76	%		0.85	%		0.99	%	n/a

n/a - not applicable


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


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


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


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


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

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

LHFI BY TYPE (excluding acquired loans)	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Loans secured by real estate:
Construction, land development and other land loans	$	718,438		$	697,500		$	824,723		$	785,472		$	682,444
Secured by 1-4 family residential properties		1,620,013			1,640,015			1,649,501			1,638,639			1,637,933
Secured by nonfarm, nonresidential properties		1,900,784			1,893,240			1,736,476			1,604,453			1,567,035
Other real estate secured		323,734			273,752			211,228			225,523			240,056
Commercial and industrial loans		1,466,511			1,368,464			1,343,211			1,270,277			1,219,684
Consumer loans		166,436			164,544			169,135			169,509			165,215
State and other political subdivision loans		805,401			787,049			734,615			677,539			574,265
Other loans		403,864			443,458			422,496			420,231			360,441
LHFI		7,405,181			7,268,022			7,091,385			6,791,643			6,447,073
Allowance for loan losses		(71,796	)		(69,668	)		(67,619	)		(65,607	)		(71,166	)
Net LHFI	$	7,333,385		$	7,198,354		$	7,023,766		$	6,726,036		$	6,375,907

ACQUIRED NONCOVERED LOANS BY TYPE	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Loans secured by real estate:
Construction, land development and other land loans	$	37,682		$	41,097		$	41,623		$	45,299		$	50,867
Secured by 1-4 family residential properties		73,313			81,314			86,950			96,870			101,027
Secured by nonfarm, nonresidential properties		115,989			126,177			135,626			146,614			168,698
Other real estate secured		24,015			24,374			23,860			23,816			25,666
Commercial and industrial loans		49,639			51,663			55,075			57,748			73,732
Consumer loans		4,295			5,027			5,641			6,295			7,273
Other loans		20,263			20,129			23,936			23,886			19,897
Noncovered loans		325,196			349,781			372,711			400,528			447,160
Allowance for loan losses		(12,218	)		(13,212	)		(11,259	)		(11,417	)		(11,927	)
Net noncovered loans	$	312,978		$	336,569		$	361,452		$	389,111		$	435,233

ACQUIRED COVERED LOANS BY TYPE	6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Loans secured by real estate:
Construction, land development and other land loans	$	334		$	387		$	1,021		$	966		$	904
Secured by 1-4 family residential properties		8,363			8,564			10,058			10,546			11,080
Secured by nonfarm, nonresidential properties		3,709			3,679			4,638			5,363			5,206
Other real estate secured		1,257			1,132			1,286			1,511			1,622
Commercial and industrial loans		121			1,143			624			205			371
Consumer loans		—			—			—			—			—
Other loans		55			69			73			54			56
Covered loans		13,839			14,974			17,700			18,645			19,239
Allowance for loan losses		(262	)		(323	)		(733	)		(768	)		(702	)
Net covered loans	$	13,577		$	14,651		$	16,967		$	17,877		$	18,537