trmk-ex991

JACKSON, Miss. – July 28, 2020 – Trustmark Corporation (Nasdaq:TRMK) reported net income of $32.2 million in the second quarter of 2020, representing diluted earnings per share of $0.51. This level of earnings resulted in a return on average tangible equity of 10.32% and a return on average assets of 0.83%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2020, to shareholders of record on September 1, 2020.

Gerard R. Host, Chairman and CEO, stated, “During the second quarter, we remained focused on ensuring the safety of our customers and associates and supporting our local economies. We continued serving customers both remotely and through our branches, actively promoting digital touchpoints including our ATM and ITM network as well as digital and mobile banking applications. Trustmark participated in the SBA’s Paycheck Protection Program, providing approximately 9,700 loans totaling $970 million to local businesses. I am especially proud of our associates’ diligent efforts to assist in meeting the financial needs of our customers and work with local businesses to secure funding. We continue to follow best practices for the health and safety of our customers and associates, and we remain committed to providing solutions to meet customers’ unique needs in this challenging environment.”

Mr. Host stated, “Our second quarter results reflect the value of Trustmark’s diverse franchise as strong performance in our fee income businesses more than offset interest rate headwinds. Mortgage loan production increased over 85% linked-quarter and more than doubled year-over-year. In addition, we continued to invest in our insurance business with the completion of the acquisition of another Mississippi-based agency in the second quarter. We maintained disciplined expense management with minimal increases in core expenses despite increased costs related to COVID-19. Trustmark’s solid capital base and liquidity position continue to be a strength and provide stability in the face of an uncertain economic outlook. We remain well-positioned to continue serving customers and managing the franchise for the long-term.”

During the second quarter of 2020, Trustmark participated in the Paycheck Protection Program (PPP) on behalf of its customers. At June 30, 2020, Trustmark’s gross PPP loans totaled $969.7 million. Net of deferred fees and costs of $29.9 million, PPP loans totaled $939.8 million. Loans held for investment totaled $9.7 billion at June 30, 2020, reflecting an increase of 1.0% linked-quarter and 6.0% year-over-year. The linked-quarter growth was driven primarily by construction and development loans and other real estate loans. Collectively, loans held for investment and PPP loans totaled $10.6 billion at the end of the second quarter of 2020.

Deposits totaled $13.5 billion at June 30, 2020, up $1.9 billion, or 16.7%, from the prior quarter. Deposit growth primarily reflects increases in commercial and public funds as customers deposited proceeds from PPP loans and other government stimulus programs. Interest-bearing deposit costs totaled 0.37% for the second quarter, a decrease of 34 basis points linked-quarter. Trustmark continues to maintain an attractive, low-cost deposit base with approximately 63% of deposit balances in checking accounts. The total cost of interest-bearing liabilities was 0.39% for the second quarter of 2020, a decrease of 36 basis points from the prior quarter.

As previously announced, Trustmark suspended its share repurchase program on March 9, 2020, to ensure ample capital to support customers during the COVID-19 pandemic. Trustmark’s capital position remained solid, reflecting the strength and diversity of its financial services businesses. At June 30, 2020, Trustmark’s tangible equity to tangible assets ratio was 8.37%, while the total risk-based capital ratio was 13.00%.

Due to macroeconomic uncertainties related to the COVID-19 pandemic, Trustmark’s provision for credit losses was $18.2 million and its credit loss expense related to off-balance sheet credit exposures was $6.2 million, resulting in total credit loss expenses of $24.4 million in the second quarter.

Allocation of Trustmark's $119.2 million allowance for credit losses on loans held for investment represented 1.15% of commercial loans and 1.56% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 1.23% at June 30, 2020, representing a level management considers commensurate with the present risk in the loan portfolio.

Nonperforming loans totaled $50.0 million at June 30, 2020, down $3.0 million from the prior quarter and $2.9 million year-over-year. Other real estate totaled $18.3 million, reflecting a $6.6 million decrease from the prior quarter and down $13.0 million from the prior year. Collectively, nonperforming assets totaled $68.3 million, reflecting a linked-quarter decrease of $9.6 million and a year-over-year decrease of $15.9 million.

Revenue in the second quarter totaled $174.5 million, up 3.1% from the prior quarter and up 10.9% from the same quarter in the prior year. Excluding $5.0 million of interest and fees on PPP loans, revenue totaled $169.5 million in second quarter, in line with the prior quarter and up 7.7% year-over-year. The linked-quarter and year-over-year changes primarily reflect higher mortgage banking revenue partially offset by lower net interest income, excluding interest and fees on PPP loans. Net interest income (FTE) in the second quarter totaled $108.0 million, resulting in a net interest margin of 3.12%. Excluding PPP loans, the net interest margin totaled 3.14%, a linked-quarter decline of 38 basis points. Approximately 20 basis points of the decline was attributable to the impact of lower interest rates, and 18 basis points was due to an increase in average other earning asset balances driven by an increase in public fund deposit balances which is anticipated to be transitory. Relative to the prior quarter, net interest income (FTE) increased $947 thousand as a $5.8 million reduction in interest income was more than offset by a $6.8 million reduction in interest expense.

Noninterest income in the second quarter totaled $69.5 million, an increase of $4.2 million from the prior quarter and an increase of $19.9 million year-over-year. The linked-quarter change primarily reflects a $6.3 million increase in mortgage banking revenue. Mortgage loan production in the second quarter totaled $853.3 million, up $396.1 million from the prior quarter and $439.3 million from the same period in the prior year. Gain on sale of loans, net totaled $34.1 million in the second quarter, up $19.7 million from the prior quarter. Mortgage banking revenue totaled $33.7 million in the second quarter.

Insurance revenue totaled $11.9 million in the second quarter, up 2.8% from the first quarter of 2020 and 7.0% year-over-year. The linked-quarter increase primarily reflects growth in property and casualty commissions. Trustmark completed the acquisition of Boyles Moak Insurance Services in the second quarter, expanding its relationships in the Mississippi market. Wealth management revenue in the second quarter totaled $7.6 million, a decrease of $966 thousand, or 11.3%, from the prior quarter and $171 thousand, or 2.2%, year-over-year. The decline reflects lower income from fee-based accounts due to market devaluation in the second quarter.

Bank card and other fees increased $2.4 million, or 44.1%, from the prior quarter, reflecting higher customer derivative revenue. Service charges on deposit accounts decreased $3.6 million, or 36.2%, from the prior quarter, primarily due to lower NSF/OD fees. The decline reflects the impact of stimulus actions and the slowdown in economic activity related to COVID-19.

Trustmark maintained disciplined expense management in the second quarter as core expenses remained stable despite increased costs related to COVID-19 safety procedures and temporary compensation adjustments. Salaries and employee benefits increased $1.2 million compared to the prior quarter, excluding charges related to the voluntary early retirement program completed in the first quarter. The increase primarily reflects higher mortgage commissions as a result of increased production.

Services and fees rose $637 thousand linked-quarter, primarily due to data processing costs and outside services and professional fees. Other real estate expense, net decreased $1.0 million linked-quarter.

Trustmark remains focused on optimizing its delivery channels and reallocating resources to reflect changing customer preferences. During the first half of the year, Trustmark consolidated five offices across the franchise. Trustmark continues to evaluate efficiency opportunities and remains committed to investments to promote profitable revenue growth.

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 29, 2020 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 12, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10145738.

Trustmark is a financial services company providing banking and financial solutions through 187 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,” “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, the effects of the COVID-19 pandemic on the domestic and global economy, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve Board (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, particularly with respect to the COVID-19 pandemic, 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.

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2020			3/31/2020			6/30/2019			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	1,724,320		$	1,620,422		$	1,661,464		$	103,898			6.4	%	$	62,856			3.8	%
Securities AFS-nontaxable		9,827			22,056			31,474			(12,229	)		-55.4	%		(21,647	)		-68.8	%
Securities HTM-taxable		655,085			694,740			821,357			(39,655	)		-5.7	%		(166,272	)		-20.2	%
Securities HTM-nontaxable		25,538			25,673			27,035			(135	)		-0.5	%		(1,497	)		-5.5	%
Total securities		2,414,770			2,362,891			2,541,330			51,879			2.2	%		(126,560	)		-5.0	%
Paycheck protection program loans (PPP)		764,416			—			—			764,416		n/m				764,416		n/m
Loans (includes loans held for sale) (1)		9,908,132			9,678,174			9,260,028			229,958			2.4	%		648,104			7.0	%
Acquired loans (1)		—			—			91,217			—		n/m				(91,217	)		-100.0	%
Fed funds sold and reverse repurchases		113			164			34,057			(51	)		-31.1	%		(33,944	)		-99.7	%
Other earning assets		854,642			187,327			316,604			667,315		n/m				538,038		n/m
Total earning assets		13,942,073			12,228,556			12,243,236			1,713,517			14.0	%		1,698,837			13.9	%
Allowance for credit losses (ACL), loans held for investment (LHFI) (1)		(103,006	)		(85,015	)		(81,996	)		(17,991	)		-21.2	%		(21,010	)		-25.6	%
Other assets		1,685,317			1,498,725			1,467,462			186,592			12.5	%		217,855			14.8	%
Total assets	$	15,524,384		$	13,642,266		$	13,628,702		$	1,882,118			13.8	%	$	1,895,682			13.9	%

Interest-bearing demand deposits	$	3,832,372		$	3,184,134		$	3,048,876		$	648,238			20.4	%	$	783,496			25.7	%
Savings deposits		4,180,540			3,646,936			3,801,187			533,604			14.6	%		379,353			10.0	%
Time deposits		1,578,737			1,617,307			1,840,065			(38,570	)		-2.4	%		(261,328	)		-14.2	%
Total interest-bearing deposits		9,591,649			8,448,377			8,690,128			1,143,272			13.5	%		901,521			10.4	%
Fed funds purchased and repurchases		105,696			247,513			51,264			(141,817	)		-57.3	%		54,432		n/m
Other borrowings		107,533			85,279			81,352			22,254			26.1	%		26,181			32.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Total interest-bearing liabilities		9,866,734			8,843,025			8,884,600			1,023,709			11.6	%		982,134			11.1	%
Noninterest-bearing deposits		3,645,761			2,910,951			2,898,266			734,810			25.2	%		747,495			25.8	%
Other liabilities		346,173			248,220			240,091			97,953			39.5	%		106,082			44.2	%
Total liabilities		13,858,668			12,002,196			12,022,957			1,856,472			15.5	%		1,835,711			15.3	%
Shareholders' equity		1,665,716			1,640,070			1,605,745			25,646			1.6	%		59,971			3.7	%
Total liabilities and equity	$	15,524,384		$	13,642,266		$	13,628,702		$	1,882,118			13.8	%	$	1,895,682			13.9	%

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

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

										Linked Quarter						Year over Year
PERIOD END BALANCES	6/30/2020			3/31/2020			6/30/2019			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	1,026,640		$	404,341		$	404,413		$	622,299		n/m			$	622,227		n/m
Fed funds sold and reverse repurchases		—			2,000			75,499			(2,000	)		-100.0	%		(75,499	)		-100.0	%
Securities available for sale		1,884,153			1,833,779			1,643,725			50,374			2.7	%		240,428			14.6	%
Securities held to maturity		660,048			704,276			825,536			(44,228	)		-6.3	%		(165,488	)		-20.0	%
PPP loans		939,783			—			—			939,783		n/m				939,783		n/m
Loans held for sale (LHFS)		355,089			325,389			240,380			29,700			9.1	%		114,709			47.7	%
Loans held for investment (LHFI) (1)		9,659,806			9,567,920			9,116,759			91,886			1.0	%		543,047			6.0	%
ACL LHFI (1)		(119,188	)		(100,564	)		(80,399	)		(18,624	)		-18.5	%		(38,789	)		-48.2	%
Net LHFI		9,540,618			9,467,356			9,036,360			73,262			0.8	%		504,258			5.6	%
Acquired loans (1)		—			—			87,884			—		n/m				(87,884	)		-100.0	%
Allowance for loan losses, acquired loans (1)		—			—			(1,398	)		—		n/m				1,398			-100.0	%
Net acquired loans		—			—			86,486			—		n/m				(86,486	)		-100.0	%
Net LHFI and acquired loans		9,540,618			9,467,356			9,122,846			73,262			0.8	%		417,772			4.6	%
Premises and equipment, net		190,567			190,179			189,820			388			0.2	%		747			0.4	%
Mortgage servicing rights		57,811			56,437			79,283			1,374			2.4	%		(21,472	)		-27.1	%
Goodwill		385,270			381,717			379,627			3,553			0.9	%		5,643			1.5	%
Identifiable intangible assets		8,895			7,537			9,101			1,358			18.0	%		(206	)		-2.3	%
Other real estate		18,276			24,847			31,243			(6,571	)		-26.4	%		(12,967	)		-41.5	%
Operating lease right-of-use assets		29,819			30,839			32,762			(1,020	)		-3.3	%		(2,943	)		-9.0	%
Other assets		595,110			591,132			514,723			3,978			0.7	%		80,387			15.6	%
Total assets	$	15,692,079		$	14,019,829		$	13,548,958		$	1,672,250			11.9	%	$	2,143,121			15.8	%

Deposits:
Noninterest-bearing	$	3,880,540		$	2,977,058		$	2,909,141		$	903,482			30.3	%	$	971,399			33.4	%
Interest-bearing		9,624,933			8,598,706			8,657,488			1,026,227			11.9	%		967,445			11.2	%
Total deposits		13,505,473			11,575,764			11,566,629			1,929,709			16.7	%		1,938,844			16.8	%
Fed funds purchased and repurchases		70,255			421,821			51,800			(351,566	)		-83.3	%		18,455			35.6	%
Other borrowings		152,860			84,230			79,012			68,630			81.5	%		73,848			93.5	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
ACL on off-balance sheet credit exposures (1)		42,663			36,421			—			6,242			17.1	%		42,663		n/m
Operating lease liabilities		31,076			32,055			33,878			(979	)		-3.1	%		(2,802	)		-8.3	%
Other liabilities		153,952			155,283			137,233			(1,331	)		-0.9	%		16,719			12.2	%
Total liabilities		14,018,135			12,367,430			11,930,408			1,650,705			13.3	%		2,087,727			17.5	%
Common stock		13,214			13,209			13,418			5			0.0	%		(204	)		-1.5	%
Capital surplus		230,613			229,403			260,619			1,210			0.5	%		(30,006	)		-11.5	%
Retained earnings		1,419,552			1,402,089			1,369,329			17,463			1.2	%		50,223			3.7	%
Accumulated other comprehensive income (loss), net of tax		10,565			7,698			(24,816	)		2,867			37.2	%		35,381		n/m
Total shareholders' equity		1,673,944			1,652,399			1,618,550			21,545			1.3	%		55,394			3.4	%
Total liabilities and equity	$	15,692,079		$	14,019,829		$	13,548,958		$	1,672,250			11.9	%	$	2,143,121			15.8	%

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

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

	Quarter Ended						Linked Quarter						Year over Year
INCOME STATEMENTS	6/30/2020		3/31/2020		6/30/2019		$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	99,300	$	109,357	$	114,873	$	(10,057	)		-9.2	%	$	(15,573	)		-13.6	%
Interest and fees on PPP loans		5,044		—		—		5,044		n/m				5,044		n/m
Interest and fees on acquired loans (1)		—		—		2,010		—		n/m				(2,010	)		-100.0	%
Interest on securities-taxable		12,762		12,948		13,916		(186	)		-1.4	%		(1,154	)		-8.3	%
Interest on securities-tax exempt-FTE		315		457		551		(142	)		-31.1	%		(236	)		-42.8	%
Interest on fed funds sold and reverse repurchases		—		—		214		—		n/m				(214	)		-100.0	%
Other interest income		239		740		1,820		(501	)		-67.7	%		(1,581	)		-86.9	%
Total interest income-FTE		117,660		123,502		133,384		(5,842	)		-4.7	%		(15,724	)		-11.8	%
Interest on deposits		8,730		14,957		21,500		(6,227	)		-41.6	%		(12,770	)		-59.4	%
Interest on fed funds purchased and repurchases		42		625		81		(583	)		-93.3	%		(39	)		-48.1	%
Other interest expense		881		860		831		21			2.4	%		50			6.0	%
Total interest expense		9,653		16,442		22,412		(6,789	)		-41.3	%		(12,759	)		-56.9	%
Net interest income-FTE		108,007		107,060		110,972		947			0.9	%		(2,965	)		-2.7	%
Provision for credit losses, LHFI (1)		18,185		20,581		2,486		(2,396	)		-11.6	%		15,699		n/m
Provision for loan losses, acquired loans (1)		—		—		106		—		n/m				(106	)		-100.0	%
Net interest income after provision-FTE		89,822		86,479		108,380		3,343			3.9	%		(18,558	)		-17.1	%
Service charges on deposit accounts		6,397		10,032		10,379		(3,635	)		-36.2	%		(3,982	)		-38.4	%
Bank card and other fees		7,717		5,355		8,004		2,362			44.1	%		(287	)		-3.6	%
Mortgage banking, net		33,745		27,483		10,295		6,262			22.8	%		23,450		n/m
Insurance commissions		11,868		11,550		11,089		318			2.8	%		779			7.0	%
Wealth management		7,571		8,537		7,742		(966	)		-11.3	%		(171	)		-2.2	%
Other, net		2,213		2,307		2,130		(94	)		-4.1	%		83			3.9	%
Total noninterest income		69,511		65,264		49,639		4,247			6.5	%		19,872			40.0	%
Salaries and employee benefits		66,107		69,148		61,949		(3,041	)		-4.4	%		4,158			6.7	%
Services and fees		20,567		19,930		18,009		637			3.2	%		2,558			14.2	%
Net occupancy-premises		6,587		6,286		6,403		301			4.8	%		184			2.9	%
Equipment expense		5,620		5,616		5,958		4			0.1	%		(338	)		-5.7	%
Other real estate expense, net		271		1,294		132		(1,023	)		-79.1	%		139		n/m
Credit loss expense related to off-balance sheet credit exposures (1)		6,242		6,783		—		(541	)		-8.0	%		6,242		n/m
Other expense		13,265		14,753		13,650		(1,488	)		-10.1	%		(385	)		-2.8	%
Total noninterest expense		118,659		123,810		106,101		(5,151	)		-4.2	%		12,558			11.8	%
Income before income taxes and tax eq adj		40,674		27,933		51,918		12,741			45.6	%		(11,244	)		-21.7	%
Tax equivalent adjustment		3,007		3,108		3,248		(101	)		-3.2	%		(241	)		-7.4	%
Income before income taxes		37,667		24,825		48,670		12,842			51.7	%		(11,003	)		-22.6	%
Income taxes		5,517		2,607		6,530		2,910		n/m				(1,013	)		-15.5	%
Net income	$	32,150	$	22,218	$	42,140	$	9,932			44.7	%	$	(9,990	)		-23.7	%

Per share data
Earnings per share - basic	$	0.51	$	0.35	$	0.65	$	0.16			45.7	%	$	(0.14	)		-21.5	%

Earnings per share - diluted	$	0.51	$	0.35	$	0.65	$	0.16			45.7	%	$	(0.14	)		-21.5	%

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

Weighted average shares outstanding
Basic		63,416,307		63,756,629		64,677,889

Diluted		63,555,065		63,913,603		64,815,029

Period end shares outstanding		63,422,439		63,396,912		64,398,846

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

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

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS (1)	6/30/2020			3/31/2020			6/30/2019			$ Change			% Change			$ Change			% Change
Nonaccrual LHFI
Alabama	$	4,392		$	4,769		$	2,327		$	(377	)		-7.9	%	$	2,065			88.7	%
Florida		687			254			330			433		n/m				357		n/m
Mississippi (2)		37,884			40,815			39,373			(2,931	)		-7.2	%		(1,489	)		-3.8	%
Tennessee (3)		6,125			6,153			8,455			(28	)		-0.5	%		(2,330	)		-27.6	%
Texas		906			1,001			2,403			(95	)		-9.5	%		(1,497	)		-62.3	%
Total nonaccrual LHFI		49,994			52,992			52,888			(2,998	)		-5.7	%		(2,894	)		-5.5	%
Other real estate
Alabama		4,766			6,229			6,451			(1,463	)		-23.5	%		(1,685	)		-26.1	%
Florida		3,665			4,835			7,826			(1,170	)		-24.2	%		(4,161	)		-53.2	%
Mississippi (2)		9,408			13,296			15,511			(3,888	)		-29.2	%		(6,103	)		-39.3	%
Tennessee (3)		437			487			815			(50	)		-10.3	%		(378	)		-46.4	%
Texas		—			—			640			—		n/m				(640	)		-100.0	%
Total other real estate		18,276			24,847			31,243			(6,571	)		-26.4	%		(12,967	)		-41.5	%
Total nonperforming assets	$	68,270		$	77,839		$	84,131		$	(9,569	)		-12.3	%	$	(15,861	)		-18.9	%

LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	807		$	708		$	1,245		$	99			14.0	%	$	(438	)		-35.2	%

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	56,269		$	43,564		$	38,355		$	12,705			29.2	%	$	17,914			46.7	%

	Quarter Ended									Linked Quarter						Year over Year
ACL LHFI (1)(4)	6/30/2020			3/31/2020			6/30/2019			$ Change			% Change			$ Change			% Change
Beginning Balance	$	100,564		$	84,277		$	79,005		$	16,287			19.3	%	$	21,559			27.3	%
CECL adoption adjustments:
LHFI		—			(3,039	)		—			3,039		n/m				—		n/m
Acquired loan transfers		—			1,822			—			(1,822	)	n/m				—		n/m
Provision for credit losses		18,185			20,581			2,486			(2,396	)		-11.6	%		15,699		n/m
Charge-offs		(1,870	)		(5,545	)		(2,937	)		3,675			66.3	%		1,067			36.3	%
Recoveries		2,309			2,468			1,845			(159	)		-6.4	%		464			25.1	%
Net (charge-offs) recoveries		439			(3,077	)		(1,092	)		3,516		n/m				1,531		n/m
Ending Balance	$	119,188		$	100,564		$	80,399		$	18,624			18.5	%	$	38,789			48.2	%

NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	526		$	(1,080	)	$	(278	)	$	1,606		n/m			$	804		n/m
Florida		(127	)		64			130			(191	)	n/m				(257	)	n/m
Mississippi (2)		(86	)		126			(907	)		(212	)	n/m				821			90.5	%
Tennessee (3)		66			(2,186	)		(44	)		2,252		n/m				110		n/m
Texas		60			(1	)		7			61		n/m				53		n/m
Total net (charge-offs) recoveries	$	439		$	(3,077	)	$	(1,092	)	$	3,516		n/m			$	1,531		n/m

(1) Excludes PPP and acquired loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
(4) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

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

	Quarter Ended															Six Months Ended
AVERAGE BALANCES	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			6/30/2020			6/30/2019
Securities AFS-taxable	$	1,724,320		$	1,620,422		$	1,551,358		$	1,570,803		$	1,661,464		$	1,672,371		$	1,707,112
Securities AFS-nontaxable		9,827			22,056			23,300			25,096			31,474			15,942			35,793
Securities HTM-taxable		655,085			694,740			734,474			778,098			821,357			674,913			843,886
Securities HTM-nontaxable		25,538			25,673			25,703			26,088			27,035			25,606			27,868
Total securities		2,414,770			2,362,891			2,334,835			2,400,085			2,541,330			2,388,832			2,614,659
PPP loans		764,416			—			—			—			—			382,208			—
Loans (includes loans held for sale) (1)		9,908,132			9,678,174			9,467,437			9,436,287			9,260,028			9,793,153			9,149,729
Acquired loans (1)		—			—			77,797			82,641			91,217			—			97,730
Fed funds sold and reverse repurchases		113			164			184			3,662			34,057			139			17,260
Other earning assets		854,642			187,327			227,116			176,163			316,604			520,985			280,250
Total earning assets		13,942,073			12,228,556			12,107,369			12,098,838			12,243,236			13,085,317			12,159,628
ACL LHFI (1)		(103,006	)		(85,015	)		(86,211	)		(83,756	)		(81,996	)		(94,011	)		(82,111	)
Other assets		1,685,317			1,498,725			1,445,075			1,447,977			1,467,462			1,592,019			1,457,592
Total assets	$	15,524,384		$	13,642,266		$	13,466,233		$	13,463,059		$	13,628,702		$	14,583,325		$	13,535,109

Interest-bearing demand deposits	$	3,832,372		$	3,184,134		$	3,167,256		$	3,085,758		$	3,048,876		$	3,508,253		$	2,974,584
Savings deposits		4,180,540			3,646,936			3,448,899			3,568,403			3,801,187			3,913,738			3,794,051
Time deposits		1,578,737			1,617,307			1,663,741			1,753,083			1,840,065			1,598,022			1,860,696
Total interest-bearing deposits		9,591,649			8,448,377			8,279,896			8,407,244			8,690,128			9,020,013			8,629,331
Fed funds purchased and repurchases		105,696			247,513			164,754			142,064			51,264			176,605			67,717
Other borrowings		107,533			85,279			79,512			78,404			81,352			96,406			86,052
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		9,866,734			8,843,025			8,586,018			8,689,568			8,884,600			9,354,880			8,844,956
Noninterest-bearing deposits		3,645,761			2,910,951			3,017,824			2,932,754			2,898,266			3,278,356			2,861,448
Other liabilities		346,173			248,220			205,786			206,091			240,091			297,196			230,696
Total liabilities		13,858,668			12,002,196			11,809,628			11,828,413			12,022,957			12,930,432			11,937,100
Shareholders' equity		1,665,716			1,640,070			1,656,605			1,634,646			1,605,745			1,652,893			1,598,009
Total liabilities and equity	$	15,524,384		$	13,642,266		$	13,466,233		$	13,463,059		$	13,628,702		$	14,583,325		$	13,535,109

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

PERIOD END BALANCES	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
Cash and due from banks	$	1,026,640		$	404,341		$	358,916		$	486,263		$	404,413
Fed funds sold and reverse repurchases		—			2,000			—			—			75,499
Securities available for sale		1,884,153			1,833,779			1,602,404			1,553,705			1,643,725
Securities held to maturity		660,048			704,276			738,099			785,422			825,536
PPP loans		939,783			—			—			—			—
Loans held for sale (LHFS)		355,089			325,389			226,347			292,800			240,380
Loans held for investment (LHFI) (1)		9,659,806			9,567,920			9,335,628			9,223,668			9,116,759
ACL LHFI (1)		(119,188	)		(100,564	)		(84,277	)		(83,226	)		(80,399	)
Net LHFI		9,540,618			9,467,356			9,251,351			9,140,442			9,036,360
Acquired loans (1)		—			—			72,601			81,004			87,884
Allowance for loan losses, acquired loans (1)		—			—			(815	)		(1,249	)		(1,398	)
Net acquired loans		—			—			71,786			79,755			86,486
Net LHFI and acquired loans		9,540,618			9,467,356			9,323,137			9,220,197			9,122,846
Premises and equipment, net		190,567			190,179			189,791			188,423			189,820
Mortgage servicing rights		57,811			56,437			79,394			73,016			79,283
Goodwill		385,270			381,717			379,627			379,627			379,627
Identifiable intangible assets		8,895			7,537			7,343			8,345			9,101
Other real estate		18,276			24,847			29,248			31,974			31,243
Operating lease right-of-use assets		29,819			30,839			31,182			33,180			32,762
Other assets		595,110			591,132			532,389			531,834			514,723
Total assets	$	15,692,079		$	14,019,829		$	13,497,877		$	13,584,786		$	13,548,958

Deposits:
Noninterest-bearing	$	3,880,540		$	2,977,058		$	2,891,215		$	3,064,127		$	2,909,141
Interest-bearing		9,624,933			8,598,706			8,354,342			8,190,056			8,657,488
Total deposits		13,505,473			11,575,764			11,245,557			11,254,183			11,566,629
Fed funds purchased and repurchases		70,255			421,821			256,020			376,712			51,800
Other borrowings		152,860			84,230			85,396			76,685			79,012
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures (1)		42,663			36,421			—			—			—
Operating lease liabilities		31,076			32,055			32,354			34,319			33,878
Other liabilities		153,952			155,283			155,992			135,669			137,233
Total liabilities		14,018,135			12,367,430			11,837,175			11,939,424			11,930,408
Common stock		13,214			13,209			13,376			13,390			13,418
Capital surplus		230,613			229,403			256,400			257,370			260,619
Retained earnings		1,419,552			1,402,089			1,414,526			1,395,460			1,369,329
Accumulated other comprehensive income (loss), net of tax		10,565			7,698			(23,600	)		(20,858	)		(24,816	)
Total shareholders' equity		1,673,944			1,652,399			1,660,702			1,645,362			1,618,550
Total liabilities and equity	$	15,692,079		$	14,019,829		$	13,497,877		$	13,584,786		$	13,548,958

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

	Quarter Ended												Six Months Ended
INCOME STATEMENTS	6/30/2020		3/31/2020		12/31/2019			9/30/2019			6/30/2019		6/30/2020		6/30/2019
Interest and fees on LHFS & LHFI-FTE	$	99,300	$	109,357	$	111,383		$	116,432		$	114,873	$	208,657	$	224,763
Interest and fees on PPP loans		5,044		—		—			—			—		5,044		—
Interest and fees on acquired loans (1)		—		—		2,138			2,309			2,010		—		3,926
Interest on securities-taxable		12,762		12,948		12,884			13,184			13,916		25,710		28,581
Interest on securities-tax exempt-FTE		315		457		484			485			551		772		1,197
Interest on fed funds sold and reverse repurchases		—		—		1			23			214		—		216
Other interest income		239		740		896			1,044			1,820		979		3,423
Total interest income-FTE		117,660		123,502		127,786			133,477			133,384		241,162		262,106
Interest on deposits		8,730		14,957		17,716			20,385			21,500		23,687		41,070
Interest on fed funds purchased and repurchases		42		625		504			547			81		667		369
Other interest expense		881		860		826			830			831		1,741		1,656
Total interest expense		9,653		16,442		19,046			21,762			22,412		26,095		43,095
Net interest income-FTE		108,007		107,060		108,740			111,715			110,972		215,067		219,011
Provision for credit losses, LHFI (1)		18,185		20,581		3,661			3,039			2,486		38,766		4,097
Provision for loan losses, acquired loans (1)		—		—		(2	)		(140	)		106		—		184
Net interest income after provision-FTE		89,822		86,479		105,081			108,816			108,380		176,301		214,730
Service charges on deposit accounts		6,397		10,032		10,894			11,065			10,379		16,429		20,644
Bank card and other fees		7,717		5,355		8,192			8,349			8,004		13,072		15,195
Mortgage banking, net		33,745		27,483		7,914			8,171			10,295		61,228		13,737
Insurance commissions		11,868		11,550		9,364			11,072			11,089		23,418		21,960
Wealth management		7,571		8,537		7,763			7,691			7,742		16,108		15,225
Other, net		2,213		2,307		3,451			1,989			2,130		4,520		4,369
Total noninterest income		69,511		65,264		47,578			48,337			49,639		134,775		91,130
Salaries and employee benefits		66,107		69,148		62,319			62,495			61,949		135,255		122,903
Services and fees		20,567		19,930		19,500			18,838			18,009		40,497		34,977
Net occupancy-premises		6,587		6,286		6,461			6,831			6,403		12,873		12,857
Equipment expense		5,620		5,616		5,880			5,971			5,958		11,236		11,882
Other real estate expense, net		271		1,294		1,491			531			132		1,565		1,884
Credit loss expense related to off-balance sheet credit exposures (1)		6,242		6,783		—			—			—		13,025		—
Other expense		13,265		14,753		14,376			12,187			13,650		28,018		27,619
Total noninterest expense		118,659		123,810		110,027			106,853			106,101		242,469		212,122
Income before income taxes and tax eq adj		40,674		27,933		42,632			50,300			51,918		68,607		93,738
Tax equivalent adjustment		3,007		3,108		3,149			3,249			3,248		6,115		6,479
Income before income taxes		37,667		24,825		39,483			47,051			48,670		62,492		87,259
Income taxes		5,517		2,607		5,537			6,016			6,530		8,124		11,780
Net income	$	32,150	$	22,218	$	33,946		$	41,035		$	42,140	$	54,368	$	75,479

Per share data
Earnings per share - basic	$	0.51	$	0.35	$	0.53		$	0.64		$	0.65	$	0.86	$	1.16

Earnings per share - diluted	$	0.51	$	0.35	$	0.53		$	0.64		$	0.65	$	0.85	$	1.16

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

Weighted average shares outstanding
Basic		63,416,307		63,756,629		64,255,716			64,358,540			64,677,889		63,586,468		64,957,128

Diluted		63,555,065		63,913,603		64,435,276			64,514,605			64,815,029		63,721,728		65,088,908

Period end shares outstanding		63,422,439		63,396,912		64,200,111			64,262,779			64,398,846		63,422,439		64,398,846

(1) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

	Quarter Ended
NONPERFORMING ASSETS (1)	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
Nonaccrual LHFI
Alabama	$	4,392		$	4,769		$	1,870		$	2,936		$	2,327
Florida		687			254			267			311			330
Mississippi (2)		37,884			40,815			41,493			43,895			39,373
Tennessee (3)		6,125			6,153			8,980			10,193			8,455
Texas		906			1,001			616			1,695			2,403
Total nonaccrual LHFI		49,994			52,992			53,226			59,030			52,888
Other real estate
Alabama		4,766			6,229			8,133			6,501			6,451
Florida		3,665			4,835			5,877			6,983			7,826
Mississippi (2)		9,408			13,296			14,919			17,646			15,511
Tennessee (3)		437			487			319			844			815
Texas		—			—			—			—			640
Total other real estate		18,276			24,847			29,248			31,974			31,243
Total nonperforming assets	$	68,270		$	77,839		$	82,474		$	91,004		$	84,131

LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	807		$	708		$	642		$	878		$	1,245

LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	56,269		$	43,564		$	41,648		$	36,445		$	38,355


	Quarter Ended															Six Months Ended
ACL LHFI (1)(4)	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			6/30/2020			6/30/2019
Beginning Balance	$	100,564		$	84,277		$	83,226		$	80,399		$	79,005		$	84,277		$	79,290
CECL adoption adjustments:
LHFI		—			(3,039	)		—			—			—			(3,039	)		—
Acquired loan transfers		—			1,822			—			—			—			1,822			—
Provision for credit losses		18,185			20,581			3,661			3,039			2,486			38,766			4,097
Charge-offs		(1,870	)		(5,545	)		(4,619	)		(2,892	)		(2,937	)		(7,415	)		(6,970	)
Recoveries		2,309			2,468			2,009			2,680			1,845			4,777			3,982
Net (charge-offs) recoveries		439			(3,077	)		(2,610	)		(212	)		(1,092	)		(2,638	)		(2,988	)
Ending Balance	$	119,188		$	100,564		$	84,277		$	83,226		$	80,399		$	119,188		$	80,399

NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	526		$	(1,080	)	$	(132	)	$	(329	)	$	(278	)	$	(554	)	$	(293	)
Florida		(127	)		64			357			136			130			(63	)		357
Mississippi (2)		(86	)		126			(1,792	)		391			(907	)		40			(3,037	)
Tennessee (3)		66			(2,186	)		(131	)		(483	)		(44	)		(2,120	)		(94	)
Texas		60			(1	)		(912	)		73			7			59			79
Total net (charge-offs) recoveries	$	439		$	(3,077	)	$	(2,610	)	$	(212	)	$	(1,092	)	$	(2,638	)	$	(2,988	)

(1) Excludes PPP and acquired loans.
(2) Mississippi includes Central and Southern Mississippi Regions.
(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
(4) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

	Quarter Ended															Six Months Ended
FINANCIAL RATIOS AND OTHER DATA	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			6/30/2020			6/30/2019
Return on average equity		7.76	%		5.45	%		8.13	%		9.96	%		10.53	%		6.61	%		9.52	%
Return on average tangible equity		10.32	%		7.34	%		10.85	%		13.31	%		14.14	%		8.84	%		12.86	%
Return on average assets		0.83	%		0.66	%		1.00	%		1.21	%		1.24	%		0.75	%		1.12	%
Interest margin - Yield - FTE		3.39	%		4.06	%		4.19	%		4.38	%		4.37	%		3.71	%		4.35	%
Interest margin - Cost		0.28	%		0.54	%		0.62	%		0.71	%		0.73	%		0.40	%		0.71	%
Net interest margin - FTE		3.12	%		3.52	%		3.56	%		3.66	%		3.64	%		3.31	%		3.63	%
Efficiency ratio (1)		62.13	%		63.50	%		68.08	%		64.98	%		64.55	%		62.81	%		66.25	%
Full-time equivalent employees		2,798			2,761			2,844			2,835			2,819

CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		-0.02	%		0.13	%		0.11	%		0.01	%		0.05	%		0.05	%		0.07	%
Provision for credit losses / average loans (3)		0.74	%		0.86	%		0.15	%		0.13	%		0.11	%		0.80	%		0.09	%
Nonaccrual LHFI / (LHFI + LHFS)		0.50	%		0.54	%		0.56	%		0.62	%		0.57	%
Nonperforming assets / (LHFI + LHFS)		0.68	%		0.79	%		0.86	%		0.96	%		0.90	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.68	%		0.78	%		0.86	%		0.95	%		0.90	%
ACL LHFI / LHFI (3)		1.23	%		1.05	%		0.90	%		0.90	%		0.88	%
ACL LHFI-commercial / commercial LHFI (3)		1.15	%		0.97	%		0.98	%		0.98	%		0.96	%
ACL LHFI-consumer / consumer and home mortgage LHFI (3)		1.56	%		1.35	%		0.61	%		0.61	%		0.60	%
ACL LHFI / nonaccrual LHFI (3)		238.40	%		189.77	%		158.34	%		140.99	%		152.02	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans) (3)		561.04	%		468.84	%		410.52	%		357.15	%		383.19	%

CAPITAL RATIOS (3)
Total equity / total assets		10.67	%		11.79	%		12.30	%		12.11	%		11.95	%
Tangible equity / tangible assets		8.37	%		9.27	%		9.72	%		9.53	%		9.34	%
Tangible equity / risk-weighted assets		11.09	%		11.05	%		11.58	%		11.50	%		11.39	%
Tier 1 leverage ratio		9.08	%		10.21	%		10.48	%		10.34	%		10.03	%
Common equity tier 1 capital ratio		11.42	%		11.35	%		11.93	%		11.83	%		11.76	%
Tier 1 risk-based capital ratio		11.94	%		11.88	%		12.48	%		12.38	%		12.31	%
Total risk-based capital ratio		13.00	%		12.78	%		13.25	%		13.15	%		13.07	%

STOCK PERFORMANCE
Market value-Close	$	24.52		$	23.30		$	34.51		$	34.11		$	33.25
Book value	$	26.39		$	26.06		$	25.87		$	25.60		$	25.13
Tangible book value	$	20.18		$	19.92		$	19.84		$	19.57		$	19.10

(1) See Note 9 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2) Excludes PPP and acquired loans.
(3) See Note 1 – Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.

ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” was adopted by Trustmark on January 1, 2020. At the date of adoption, Trustmark recorded a decrease to its ACL, LHFI of $3.0 million and an increase to its ACL on off-balance sheet credit exposures of $29.6 million resulting in a one-time cumulative effect adjustment of $26.6 million ($19.9 million, net of tax) through retained earnings.

In accordance with the amendments of ASU 2016-13, Trustmark estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts including the COVID-19 pandemic effects. Trustmark uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the ACL is based on general economic conditions and other internal and external factors affecting Trustmark as a whole as well as specific LHFI. The total quantitative and qualitative portions of the ACL reflect Management’s expectations of future conditions based on reasonable and supportable forecasts.

Based upon the factors discussed above, during the second quarter of 2020, Trustmark recorded a provision for credit losses of $18.2 million and a credit loss expense related to off-balance sheet credit exposures of $6.2 million compared to a provision for credit losses of $20.6 million and a credit loss expense related to off-balance sheet credit exposures of $6.8 million recorded during the first quarter of 2020.

Upon adoption of FASB ASC Topic 326, Trustmark elected to account for its existing acquired loans as purchased credit deteriorated loans included within the LHFI portfolio. As a result, acquired loans of $72.6 million, as well as the necessary calculated allowance of $1.8 million, were transferred during the first quarter of 2020. The acquired loans and related allowance transferred were acquired in the BancTrust Financial Group, Inc. merger on February 13, 2013. LHFI presented in prior periods exclude acquired loans and thus may not be comparable to the current period presentation.

In accordance with FASB ASC Subtopic 326-20, “Financial Instruments – Credit Losses – Measured at Amortized Cost,” Trustmark has developed an allowance for credit losses methodology effective January 1, 2020, which replaces its previous allowance for loan losses methodology. The ACL for LHFI is adjusted through the provision for credit losses and reduced by the charge off of loan amounts, net of recoveries. Prior periods present the allowance for loan losses and provision for loan losses methodology under the incurred loss model and thus may not be comparable to the current period presentation.

Trustmark’s estimated allowance for credit losses on securities available for sale and held to maturity under ASU 2016-13 was deemed immaterial due to the composition of these portfolios. Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal. Therefore, Trustmark did not recognize a cumulative effect adjustment through retained earnings related to the available for sale or held to maturity securities.

Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a $2 trillion stimulus package intended to provide relief to businesses and consumers in the United States struggling as a result of the pandemic, was signed into law. A provision in the CARES Act included a $349 billion fund for the creation of the Paycheck Protection Program (PPP) through the Small Business Administration (SBA) and Treasury Department. The PPP is intended to provide loans to small businesses to pay their employees, rent, mortgage interest and utilities. PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% per annum and a term of two years, if not forgiven, in whole or in part. Payments are deferred for the first six months of the loan. The loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee ranging from 1.0% to 5.0%, based on the size of the loan.

During the second quarter of 2020, Trustmark participated in the PPP on behalf of its customers. At June 30, 2020, Trustmark’s gross PPP loans totaled $969.7 million with an average loan size of $100 thousand. Net of deferred fees and costs of $29.9 million, PPP loans totaled $939.8 million at June 30, 2020.

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:

	6/30/2020		3/31/2020		12/31/2019		9/30/2019		6/30/2019
SECURITIES AVAILABLE FOR SALE
U.S. Government agency obligations	$	19,898	$	21,190	$	22,327	$	24,697	$	26,646
Obligations of states and political subdivisions		11,176		23,572		25,465		35,001		38,698
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		69,637		71,971		69,252		63,391		65,716
Issued by FNMA and FHLMC		1,121,604		967,329		713,356		589,962		624,364
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		574,940		634,075		658,226		705,601		751,371
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		86,898		115,642		113,778		135,053		136,930
Total securities available for sale	$	1,884,153	$	1,833,779	$	1,602,404	$	1,553,705	$	1,643,725

SECURITIES HELD TO MATURITY
U.S. Government agency obligations	$	—	$	—	$	3,781	$	3,770	$	3,758
Obligations of states and political subdivisions		31,629		31,758		31,781		31,806		32,860
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		10,306		10,492		10,820		10,994		11,184
Issued by FNMA and FHLMC		86,346		91,971		96,631		102,048		106,755
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		435,333		463,175		485,324		510,770		536,166
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		96,434		106,880		109,762		126,034		134,813
Total securities held to maturity	$	660,048	$	704,276	$	738,099	$	785,422	$	825,536

At June 30, 2020, 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 $10.5 million ($7.9 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 98.3% 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.

The following table presents the LHFI composition by region at June 30, 2020 and reflects each region’s diversified mix of loans:

	June 30, 2020
LHFI - COMPOSITION BY REGION	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	$	1,277,277	$	391,698	$	100,052	$	348,029	$	25,641	$	411,857
Secured by 1-4 family residential properties		1,813,525		127,961		40,303		1,553,730		79,745		11,786
Secured by nonfarm, nonresidential properties		2,610,392		670,633		278,285		936,469		188,264		536,741
Other real estate secured		884,815		256,797		26,201		348,224		7,898		245,695
Commercial and industrial loans		1,413,255		195,494		22,629		674,592		305,918		214,622
Consumer loans		161,620		24,182		5,593		110,988		18,489		2,368
State and other political subdivision loans		931,536		90,539		37,549		603,171		29,236		171,041
Other loans		567,386		70,185		14,778		375,440		82,255		24,728
Loans	$	9,659,806	$	1,827,489	$	525,390	$	4,950,643	$	737,446	$	1,618,838

CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	79,174	$	17,812	$	24,342	$	30,072	$	1,932	$	5,016
Development		66,900		16,233		5,018		31,184		5,284		9,181
Unimproved land		101,285		24,335		18,401		26,874		11,359		20,316
1-4 family construction		234,950		98,621		21,346		80,468		6,710		27,805
Other construction		794,968		234,697		30,945		179,431		356		349,539
Construction, land development and other land loans	$	1,277,277	$	391,698	$	100,052	$	348,029	$	25,641	$	411,857

LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	410,176	$	147,990	$	39,904	$	120,699	$	27,437	$	74,146
Office		233,980		67,549		27,499		65,692		12,335		60,905
Hotel/motel		348,958		135,970		102,544		59,237		40,207		11,000
Mini-storage		114,380		16,312		3,928		49,075		412		44,653
Industrial		193,415		62,803		10,991		36,216		2,166		81,239
Health care		45,871		13,166		11,739		18,738		—		2,228
Convenience stores		22,416		3,425		—		6,477		401		12,113
Nursing homes/senior living		48,453		18,627		—		4,012		7,243		18,571
Other		70,999		4,595		6,280		15,121		6,629		38,374
Total non-owner occupied loans		1,488,648		470,437		202,885		375,267		96,830		343,229

Owner-occupied:
Office		159,624		39,672		35,831		49,691		9,609		24,821
Churches		104,498		24,138		7,731		47,965		10,785		13,879
Industrial warehouses		159,246		10,878		2,588		48,310		17,150		80,320
Health care		140,073		16,535		5,953		102,405		2,493		12,687
Convenience stores		110,245		14,870		7,641		66,720		609		20,405
Retail		74,453		15,863		7,125		28,915		6,771		15,779
Restaurants		57,884		4,127		2,401		34,467		15,424		1,465
Auto dealerships		47,720		7,982		290		12,615		26,833		—
Nursing homes/senior living		184,563		61,645		5,840		117,078		—		—
Other		83,438		4,486		—		53,036		1,760		24,156
Total owner-occupied loans		1,121,744		200,196		75,400		561,202		91,434		193,512
Loans secured by nonfarm, nonresidential properties	$	2,610,392	$	670,633	$	278,285	$	936,469	$	188,264	$	536,741

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
	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			6/30/2020			6/30/2019
Securities – taxable		2.16	%		2.25	%		2.24	%		2.23	%		2.25	%		2.20	%		2.26	%
Securities – nontaxable		3.58	%		3.85	%		3.92	%		3.76	%		3.78	%		3.74	%		3.79	%
Securities – total		2.18	%		2.28	%		2.27	%		2.26	%		2.28	%		2.23	%		2.30	%
PPP loans		2.65	%		—			—			—			—			2.65	%		—
Loans - LHFI & LHFS		4.03	%		4.54	%		4.67	%		4.90	%		4.98	%		4.28	%		4.95	%
Acquired loans		—			—			10.90	%		11.08	%		8.84	%		—			8.10	%
Loans - total		3.93	%		4.54	%		4.72	%		4.95	%		5.01	%		4.22	%		4.99	%
Fed funds sold & reverse repurchases		—			—			2.16	%		2.49	%		2.52	%		—			2.52	%
Other earning assets		0.11	%		1.59	%		1.57	%		2.35	%		2.31	%		0.38	%		2.46	%
Total earning assets		3.39	%		4.06	%		4.19	%		4.38	%		4.37	%		3.71	%		4.35	%

Interest-bearing deposits		0.37	%		0.71	%		0.85	%		0.96	%		0.99	%		0.53	%		0.96	%
Fed funds purchased & repurchases		0.16	%		1.02	%		1.21	%		1.53	%		0.63	%		0.76	%		1.10	%
Other borrowings		2.09	%		2.35	%		2.32	%		2.35	%		2.33	%		2.21	%		2.26	%
Total interest-bearing liabilities		0.39	%		0.75	%		0.88	%		0.99	%		1.01	%		0.56	%		0.98	%

Net interest margin		3.12	%		3.52	%		3.56	%		3.66	%		3.64	%		3.31	%		3.63	%
Net interest margin excluding PPP and acquired loans		3.14	%		3.52	%		3.52	%		3.61	%		3.60	%		3.32	%		3.60	%

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 and acquired loans, which equals reported net interest income-FTE excluding interest income on PPP and acquired loans, annualized, as a percent of average earning assets excluding average PPP and acquired loans.

The net interest margin excluding PPP and acquired loans totaled 3.14% for the second quarter of 2020, a decrease of 38 basis points when compared to the first quarter of 2020 . Approximately 20 basis points of this decline was due to lower interest rates, which decreased the yield on the loans held for investment and held for sale portfolio and was partially offset by lower costs of interest-bearing deposits, and 18 basis points was due to an increase in other earning asset balances driven by an increase in public fund deposit balances which is anticipated to be transitory.

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 $2.0 million primarily due to tightening spreads between mortgage and ten-year Treasury rates during the second quarter of 2020.

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

In January 2020, Trustmark announced a voluntary early retirement program for associates age 60 and above with five or more years of continuous service. The cost of this program is reflected in a one-time, pre-tax charge of approximately $4.4 million (salaries and benefits of $4.3 million and other miscellaneous expense of $102 thousand; or $0.05 per basic share net of tax) in Trustmark’s first quarter 2020 earnings. The pre-tax salary and employee benefits expense savings resulting from the implementation of the early retirement program are expected to total approximately $2.9 million ($0.03 per basic share net of tax) and $4.0 million ($0.05 per basic share net of tax) for the remainder of 2020 and for the year ended 2021, respectively.

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.

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
		6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			6/30/2020			6/30/2019
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,665,716		$	1,640,070		$	1,656,605		$	1,634,646		$	1,605,745		$	1,652,893		$	1,598,009
Less: Goodwill			(383,081	)		(380,671	)		(379,627	)		(379,627	)		(379,627	)		(381,876	)		(379,627	)
Identifiable intangible assets			(7,834	)		(8,049	)		(7,882	)		(8,706	)		(9,631	)		(7,942	)		(10,146	)
Total average tangible equity		$	1,274,801		$	1,251,350		$	1,269,096		$	1,246,313		$	1,216,487		$	1,263,075		$	1,208,236

PERIOD END BALANCES
Total shareholders' equity		$	1,673,944		$	1,652,399		$	1,660,702		$	1,645,362		$	1,618,550
Less: Goodwill			(385,270	)		(381,717	)		(379,627	)		(379,627	)		(379,627	)
Identifiable intangible assets			(8,895	)		(7,537	)		(7,343	)		(8,345	)		(9,101	)
Total tangible equity	(a)	$	1,279,779		$	1,263,145		$	1,273,732		$	1,257,390		$	1,229,822

TANGIBLE ASSETS
Total assets		$	15,692,079		$	14,019,829		$	13,497,877		$	13,584,786		$	13,548,958
Less: Goodwill			(385,270	)		(381,717	)		(379,627	)		(379,627	)		(379,627	)
Identifiable intangible assets			(8,895	)		(7,537	)		(7,343	)		(8,345	)		(9,101	)
Total tangible assets	(b)	$	15,297,914		$	13,630,575		$	13,110,907		$	13,196,814		$	13,160,230
Risk-weighted assets	(c)	$	11,539,157		$	11,427,297		$	11,002,877		$	10,935,018		$	10,796,903

NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	32,150		$	22,218		$	33,946		$	41,035		$	42,140		$	54,368		$	75,479
Plus: Intangible amortization net of tax			552			609			752			766			744			1,161			1,570
Net income adjusted for intangible amortization		$	32,702		$	22,827		$	34,698		$	41,801		$	42,884		$	55,529		$	77,049
Period end common shares outstanding	(d)		63,422,439			63,396,912			64,200,111			64,262,779			64,398,846

TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			10.32	%		7.34	%		10.85	%		13.31	%		14.14	%		8.84	%		12.86	%
Tangible equity/tangible assets	(a)/(b)		8.37	%		9.27	%		9.72	%		9.53	%		9.34	%
Tangible equity/risk-weighted assets	(a)/(c)		11.09	%		11.05	%		11.58	%		11.50	%		11.39	%
Tangible book value	(a)/(d)*1,000	$	20.18		$	19.92		$	19.84		$	19.57		$	19.10

COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,673,944		$	1,652,399		$	1,660,702		$	1,645,362		$	1,618,550
CECL transition adjustment (3)			32,693			26,476			—			—			—
AOCI-related adjustments			(10,565	)		(7,698	)		23,600			20,858			24,816
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(371,342	)		(367,825	)		(365,738	)		(365,741	)		(365,745	)
Other adjustments and deductions for CET1 (2)			(7,352	)		(6,269	)		(5,896	)		(6,671	)		(8,268	)
CET1 capital	(e)		1,317,378			1,297,083			1,312,668			1,293,808			1,269,353
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,377,378		$	1,357,083		$	1,372,668		$	1,353,808		$	1,329,353

Common equity tier 1 capital ratio	(e)/(c)		11.42	%		11.35	%		11.93	%		11.83	%		11.76	%

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-tax pre-provision income during the periods presented:

			Quarter Ended												Six Months Ended
			6/30/2020			3/31/2020			12/31/2019		9/30/2019		6/30/2019		6/30/2020			6/30/2019

Net interest income (GAAP)			$	105,000		$	103,952		$	105,591	$	108,466	$	107,724	$	208,952		$	212,532
Noninterest income (GAAP)				69,511			65,264			47,578		48,337		49,639		134,775			91,130
Pre-tax pre-provision revenue		(a)	$	174,511		$	169,216		$	153,169	$	156,803	$	157,363	$	343,727		$	303,662

Noninterest expense (GAAP)			$	118,659		$	123,810		$	110,027	$	106,853	$	106,101	$	242,469		$	212,122
Less:	Voluntary early retirement program			—			(4,375	)		—		—		—		(4,375	)		—
	Credit loss expense related to off-balance sheet credit exposures			(6,242	)		(6,783	)		—		—		—		(13,025	)		—
Adjusted noninterest expense (Non-GAAP)		(b)	$	112,417		$	112,652		$	110,027	$	106,853	$	106,101	$	225,069		$	212,122

Pre-tax pre-provision income (Non-GAAP)		(a)-(b)	$	62,094		$	56,564		$	43,142	$	49,950	$	51,262	$	118,658		$	91,540

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
	6/30/2020					6/30/2019					6/30/2020						6/30/2019
	Amount			Diluted EPS		Amount			Diluted EPS		Amount			Diluted EPS			Amount			Diluted EPS

Net Income (GAAP)	$	32,150		$	0.51	$	42,140		$	0.65	$	54,368		$	0.85		$	75,479		$	1.16

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)	$	32,150		$	0.51	$	42,140		$	0.65	$	57,649		$	0.90		$	75,479		$	1.16

	Reported (GAAP)			Adjusted		Reported (GAAP)			Adjusted		Reported (GAAP)			Adjusted			Reported (GAAP)			Adjusted
	Reported (GAAP)			(Non-GAAP)		Reported (GAAP)			(Non-GAAP)		Reported (GAAP)			(Non-GAAP)			Reported (GAAP)			(Non-GAAP)
Return on average equity		7.76	%	n/a			10.53	%	n/a			6.61	%		7.00	%		9.52	%	n/a
Return on average tangible equity		10.32	%	n/a			14.14	%	n/a			8.84	%		9.35	%		12.86	%	n/a
Return on average assets		0.83	%	n/a			1.24	%	n/a			0.75	%		0.79	%		1.12	%	n/a

n/a - not applicable

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

			Quarter Ended															Six Months Ended
			6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			6/30/2020			6/30/2019

Total noninterest expense (GAAP)			$	118,659		$	123,810		$	110,027		$	106,853		$	106,101		$	242,469		$	212,122
Less:	Other real estate expense, net			(271	)		(1,294	)		(1,491	)		(531	)		(132	)		(1,565	)		(1,884	)
	Amortization of intangibles			(736	)		(812	)		(1,002	)		(1,021	)		(992	)		(1,548	)		(2,093	)
	Voluntary early retirement program			—			(4,375	)		—			—			—			(4,375	)		—
	Credit loss expense related to off-balance sheet exposures			(6,242	)		(6,783	)		—			—			—			(13,025	)		—
	Charitable contributions resulting in state tax credits			(375	)		(375	)		—			—			—			(750	)		—
Adjusted noninterest expense (Non-GAAP)		(c)	$	111,035		$	110,171		$	107,534		$	105,301		$	104,977		$	221,206		$	208,145

Net interest income (GAAP)			$	105,000		$	103,952		$	105,591		$	108,466		$	107,724		$	208,952		$	212,532
Add:	Tax equivalent adjustment			3,007			3,108			3,149			3,249			3,248			6,115			6,479
Net interest income-FTE (Non-GAAP)		(a)	$	108,007		$	107,060		$	108,740		$	111,715		$	110,972		$	215,067		$	219,011

Noninterest income (GAAP)			$	69,511		$	65,264		$	47,578		$	48,337		$	49,639		$	134,775		$	91,130
Add:	Partnership amortization for tax credit purposes			1,205			1,161			1,630			1,994			2,010			2,366			4,020
Adjusted noninterest income (Non-GAAP)		(b)	$	70,716		$	66,425		$	49,208		$	50,331		$	51,649		$	137,141		$	95,150

Adjusted revenue (Non-GAAP)		(a)+(b)	$	178,723		$	173,485		$	157,948		$	162,046		$	162,621		$	352,208		$	314,161

Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		62.13	%		63.50	%		68.08	%		64.98	%		64.55	%		62.81	%		66.25	%


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, 2020
		($ in thousands)
		(unaudited)


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		June 30, 2020
		($ in thousands)
		(unaudited)


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		June 30, 2020
		($ in thousands except per share data)
		(unaudited)


		TRUSTMARK CORPORATION AND SUBSIDIARIES
		CONSOLIDATED FINANCIAL INFORMATION
		June 30, 2020
		($ in thousands)
		(unaudited)

		TRUSTMARK CORPORATION AND SUBSIDIARIES
		NOTES TO CONSOLIDATED FINANCIALS
		June 30, 2020
		($ in thousands)
		(unaudited)

LHFI BY TYPE (1)	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
Loans secured by real estate:
Construction, land development and other land loans	$	1,277,277		$	1,136,389		$	1,162,791		$	1,135,999		$	1,111,297
Secured by 1-4 family residential properties		1,813,525			1,852,065			1,855,913			1,820,455			1,818,126
Secured by nonfarm, nonresidential properties		2,610,392			2,575,422			2,475,245			2,442,308			2,326,312
Other real estate secured		884,815			838,573			724,480			668,667			635,839
Commercial and industrial loans		1,413,255			1,476,777			1,477,896			1,491,367			1,533,318
Consumer loans		161,620			170,678			175,738			176,894			176,133
State and other political subdivision loans		931,536			938,637			967,944			978,456			982,187
Other loans		567,386			579,379			495,621			509,522			533,547
LHFI		9,659,806			9,567,920			9,335,628			9,223,668			9,116,759
ACL LHFI		(119,188	)		(100,564	)		(84,277	)		(83,226	)		(80,399	)
Net LHFI	$	9,540,618		$	9,467,356		$	9,251,351		$	9,140,442		$	9,036,360