Business Wire | Oct 27, 2020 04:31PM EDT

Trustmark Corporation Announces Third Quarter 2020 Financial Results

Oct. 27, 2020

JACKSON, Miss.--(BUSINESS WIRE)--Oct. 27, 2020--Trustmark Corporation (Nasdaq:TRMK) reported net income of $54.4 million in the third quarter of 2020, representing diluted earnings per share of $0.86. This level of earnings resulted in a return on average tangible equity of 16.82% and a return on average assets of 1.37%. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable December 15, 2020, to shareholders of record on December 1, 2020.

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Third Quarter Highlights

* Pre-tax, pre-provision income totaled $62.9 million, a linked-quarter increase of 1.4% and year-over-year increase of 26.0%. Please refer to the Consolidated Financial Information, Footnote 9 - Non-GAAP Financial Measures. * Noninterest income represented 41.0% of revenue in the third quarter and increased 6.0% from the prior quarter * Maintained strong capital position with CET1 ratio of 11.36% and total risk-based capital ratio of 12.88%

Gerard R. Host, Chairman and CEO, stated, "Our third quarter results demonstrate the value of our diversified financial services businesses with strong performance in both our banking and noninterest lines of business. Loans held for investment increased 6.8% year-over-year, and mortgage loan production was up over 56% year-over-year. We experienced significant year-over-year growth in pre-tax, pre-provision income, and we maintained our solid capital base and liquidity position. Trustmark remains committed to ensuring the safety of customers and associates and supporting local economies in this challenging environment. We continue to focus on serving customers and creating long-term value for shareholders."

Balance Sheet Management

* Loans held for investment increased $187.9 million from the prior quarter and $624.1 million year-over-year * Gross PPP loans totaled $970.0 million at September 30, 2020 * Noninterest bearing deposits increased $83.5 million linked-quarter and represented 30.0% of total deposits at September 30, 2020

Loans held for investment totaled $9.8 billion at September 30, 2020, reflecting an increase of 1.9% linked-quarter and 6.8% year-over-year. The linked-quarter growth was driven primarily by construction and development loans and commercial real estate loans. At September 30, 2020, Trustmark's gross Paycheck Protection Program (PPP) loans totaled $970.0 million. Net of deferred fees and costs of $25.7 million, PPP loans totaled $944.3 million. Collectively, loans held for investment and PPP loans totaled $10.8 billion at the end of the third quarter of 2020.

Deposits totaled $13.2 billion at September 30, 2020, down $283.1 million, or 2.1%, from the prior quarter. However, deposits are up $2.0 billion, or 17.5%, year-over-year primarily reflecting the impact of additional customer liquidity associated with PPP loans and government stimulus payments. Interest-bearing deposit costs totaled 0.31% for the third quarter, a decrease of 6 basis points linked-quarter. Trustmark continues to maintain an attractive, low-cost deposit base with approximately 62% of deposit balances in checking accounts. The total cost of interest-bearing liabilities was 0.33% for the third quarter of 2020, a decrease of 6 basis points from the prior quarter.

Trustmark's capital position remained solid, reflecting the strength and diversity of its financial services businesses. At September 30, 2020, Trustmark's tangible equity to tangible assets ratio was 8.68%, while the total risk-based capital ratio was 12.88%.

Credit Quality

* Allowance for credit losses represented 1.24% of loans held for investment and 593.72% of nonperforming loans, excluding individually evaluated loans * Net recoveries totaled $1.1 million in the third quarter * Other real estate declined 11.1% from the prior quarter and 49.2% year-over-year * Approximately 2% of the loans held for investment portfolio remained under a concession at September 30, 2020

Allocation of Trustmark's $122.0 million allowance for credit losses on loans held for investment represented 1.20% of commercial loans and 1.41% of consumer and home mortgage loans, resulting in an allowance for credit losses to total loans held for investment of 1.24% at September 30, 2020, representing a level management considers commensurate with the present risk in the loan portfolio. Trustmark recorded a provision for credit losses of $1.8 million in the third quarter.

Nonperforming loans totaled $53.9 million at September 30, 2020, up $3.9 million from the prior quarter and down $5.2 million year-over-year. Other real estate totaled $16.2 million, reflecting a $2.0 million decrease from the prior quarter and down $15.7 million from the prior year. Collectively, nonperforming assets totaled $70.1 million, reflecting a linked-quarter increase of $1.8 million and a year-over-year decrease of $20.9 million.

Revenue Generation

* Revenue in the third quarter, excluding interest and fees on PPP loans, totaled $173.2 million, up 2.2% from the prior quarter and 12.1% year-over-year * Noninterest income totaled $73.7 million in the third quarter, up 6.0% from the prior quarter and 52.5% year-over-year * Mortgage loan production in the third quarter totaled $885.8 million, an increase of 3.8% from the prior quarter and a 56.5% increase year-over-year

Revenue in the third quarter totaled $179.9 million, up 3.1% from the prior quarter and up 14.7% from the same quarter in the prior year. Excluding $6.7 million of interest and fees on PPP loans, revenue totaled $173.2 million in the third quarter, up 2.2% from the prior quarter and up 12.1% year-over-year. The linked-quarter and year-over-year changes primarily reflect higher noninterest income. Net interest income (FTE) in the third quarter totaled $109.2 million, resulting in a net interest margin of 3.03%. Excluding PPP loans, the net interest margin totaled 3.05%, a linked-quarter decline of 9 basis points. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits. Relative to the prior quarter, net interest income (FTE) increased $1.2 million as a $327 thousand reduction in interest income was more than offset by a $1.5 million reduction in interest expense.

Noninterest income in the third quarter totaled $73.7 million, an increase of $4.2 million from the prior quarter and an increase of $25.4 million year-over-year. The linked-quarter change reflects increases in mortgage banking revenue, service charges on deposit accounts and bank card and other fees. Mortgage banking revenue before hedge ineffectiveness totaled $35.6 million in the third quarter, in line with the prior quarter. Third quarter results include $815 thousand in positive net hedge ineffectiveness. Mortgage loan production in the third quarter totaled $885.8 million, up $32.5 million from the prior quarter and $319.6 million from the same period in the prior year. Gain on sale of loans, net totaled $34.5 million in the third quarter, up $394 thousand from the prior quarter. Mortgage banking revenue totaled $36.4 million in the third quarter, up $2.7 million from the prior quarter and $28.3 million from the same period in the prior year.

Insurance revenue totaled $11.6 million in the third quarter, a seasonal decline of 2.6% from the prior quarter and an increase of 4.4% year-over-year due to higher property and casualty commissions. Wealth management revenue in the third quarter totaled $7.7 million, in line with the prior quarter and the same period in the prior year as increases in brokerage and investment services were offset by a decline in trust management fees.

Bank card and other fees increased $1.1 million, or 14.6%, from the prior quarter, reflecting higher customer derivative revenue and interchange income. Service charges on deposit accounts increased $1.2 million, or 18.4%, from the prior quarter as customers gradually returned to more normal pre-pandemic activities.

Noninterest Expense

* Total expenses were $114.0 million in the third quarter, down $4.7 million, or 4.0%, from the prior quarter * Adjusted expenses, which excludes amortization of intangibles, ORE expense and credit losses for off-balance sheet credit exposures, increased $3.6 million, or 3.2%, from the prior quarter. Please refer to the Consolidated Financial Information, Footnote 9 - Non-GAAP Financial Measures.

Adjusted noninterest expenses totaled $114.6 million for the third quarter, representing an increase of 3.2% from the prior quarter. Salaries and employee benefits increased $1.2 million due to increases in salaries, commissions, and performance-based incentives. Services and fees increased due to continued investment in technology. Net occupancy-premises experienced a normal seasonal increase. Other adjusted noninterest expenses rose $1.5 million principally due to loan expense related to loan volumes and a non-cash charge for the realignment of branch offices.

In the third quarter, the credit loss expense related to off-balance sheet exposures was a negative $3.0 million, a decline of $9.2 million from the prior quarter. The decline primarily reflects improvement of the macroeconomic factors used to determine the necessary reserves for off-balance sheet exposures. Other real estate expense, net increased $932 thousand primarily due to write-downs. Total expenses for the third quarter declined $4.7 million, or 4.0%, from the prior quarter, as the decline in credit loss expense was partially offset by an increase in adjusted noninterest expense.

Trustmark continues to focus on identifying efficiency opportunities in operations and delivery channels as well as utilizing technology solutions to streamline processes and improve the customer experience. Year-to-date, Trustmark has consolidated six offices across the franchise. In addition, Trustmark is in the process of converting select drive-thru only branches to interactive teller machines which will provide extended hours for additional customer convenience while reducing servicing costs. Trustmark remains committed to investments to promote profitable revenue growth and reallocating resources to reflect changing customer preferences.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 28, 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, November 11, 2020, in archived format at the same web address or by calling (877) 344-7529, passcode 10148374.

Trustmark is a financial services company providing banking and financial solutions through 187 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as "may," "hope," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "project," "potential," "seek," "continue," "could," "would," "future" or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other "forward-looking" information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption "Risk Factors" in Trustmark's filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, 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.

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited) Linked Quarter Year over YearQUARTERLY AVERAGE 9/30/2020 6/30/2020 9/30/2019 $ Change % $ Change % ChangeBALANCES ChangeSecurities $ 1,857,050 $ 1,724,320 $ 1,570,803 $ 132,730 7.7 % $ 286,247 18.2 %AFS-taxableSecurities 5,973 9,827 25,096 (3,854 ) -39.2 % (19,123 ) -76.2 %AFS-nontaxableSecurities 608,585 655,085 778,098 (46,500 ) -7.1 % (169,513 ) -21.8 %HTM-taxableSecurities 25,508 25,538 26,088 (30 ) -0.1 % (580 ) -2.2 %HTM-nontaxableTotal securities 2,497,116 2,414,770 2,400,085 82,346 3.4 % 97,031 4.0 %

Paycheck protection 941,456 764,416 - 177,040 23.2 % 941,456 n/m program loans (PPP)Loans (includes 10,162,379 9,908,132 9,436,287 254,247 2.6 % 726,092 7.7 %loans held forsale) (1)Acquired loans (1) - - 82,641 - n/m (82,641 ) -100.0 %

Fed funds sold and 301 113 3,662 188 n/m (3,361 ) -91.8 %reverse repurchasesOther earning 722,917 854,642 176,163 (131,725 ) -15.4 % 546,754 n/m assetsTotal earning 14,324,169 13,942,073 12,098,838 382,096 2.7 % 2,225,331 18.4 %assetsAllowance forcredit losses (121,842 ) (103,006 ) (83,756 ) (18,836 ) -18.3 % (38,086 ) -45.5 %(ACL), loans heldfor investment(LHFI) (1)Other assets 1,564,825 1,685,317 1,447,977 (120,492 ) -7.1 % 116,848 8.1 %

Total assets $ 15,767,152 $ 15,524,384 $ 13,463,059 $ 242,768 1.6 % $ 2,304,093 17.1 %

Interest-bearing $ 3,669,249 $ 3,832,372 $ 3,085,758 $ (163,123 ) -4.3 % $ 583,491 18.9 %demand depositsSavings deposits 4,416,046 4,180,540 3,568,403 235,506 5.6 % 847,643 23.8 %

Time deposits 1,507,348 1,578,737 1,753,083 (71,389 ) -4.5 % (245,735 ) -14.0 %

Total 9,592,643 9,591,649 8,407,244 994 0.0 % 1,185,399 14.1 %interest-bearingdepositsFed funds purchased 84,077 105,696 142,064 (21,619 ) -20.5 % (57,987 ) -40.8 %and repurchasesOther borrowings 167,262 107,533 78,404 59,729 55.5 % 88,858 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesTotal 9,905,838 9,866,734 8,689,568 39,104 0.4 % 1,216,270 14.0 %interest-bearingliabilitiesNoninterest-bearing 3,921,867 3,645,761 2,932,754 276,106 7.6 % 989,113 33.7 %depositsOther liabilities 244,544 346,173 206,091 (101,629 ) -29.4 % 38,453 18.7 %

Total liabilities 14,072,249 13,858,668 11,828,413 213,581 1.5 % 2,243,836 19.0 %

Shareholders' 1,694,903 1,665,716 1,634,646 29,187 1.8 % 60,257 3.7 %equityTotal liabilities $ 15,767,152 $ 15,524,384 $ 13,463,059 $ 242,768 1.6 % $ 2,304,093 17.1 %and equity(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 meaningfulSee Notes to Consolidated Financials(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 See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited)Linked QuarterYear over YearPERIOD END BALANCES9/30/20206/30/20209/30/2019$ Change% Change$ Change% ChangeCash and due from banks$

564,588

$

1,026,640

$

486,263

$

(462,052

)

-45.0

%

$

78,325

16.1

%

Fed funds sold and reverse repurchases50

-

-

50

n/m

50

n/m

Securities available for sale1,922,728

1,884,153

1,553,705

38,575

2.0

%

369,023

23.8

%

Securities held to maturity611,280

660,048

785,422

(48,768

)

-7.4

%

(174,142

)

-22.2

%

PPP loans944,270

939,783

-

4,487

0.5

%

944,270

n/m

Loans held for sale (LHFS)485,103

355,089

292,800

130,014

36.6

%

192,303

65.7

%

Loans held for investment (LHFI) (1)9,847,728

9,659,806

9,223,668

187,922

1.9

%

624,060

6.8

%

ACL LHFI (1)(122,010

)

(119,188

)

(83,226

)

(2,822

)

-2.4

%

(38,784

)

-46.6

%

Net LHFI9,725,718

9,540,618

9,140,442

185,100

1.9

%

585,276

6.4

%

Acquired loans (1)-

-

81,004

-

n/m

(81,004

)

-100.0

%

Allowance for loan losses, acquired loans (1)-

-

(1,249

)

-

n/m

1,249

-100.0

%

Net acquired loans-

-

79,755

-

n/m

(79,755

)

-100.0

%

Net LHFI and acquired loans9,725,718

9,540,618

9,220,197

185,100

1.9

%

505,521

5.5

%

Premises and equipment, net192,722

190,567

188,423

2,155

1.1

%

4,299

2.3

%

Mortgage servicing rights61,613

57,811

73,016

3,802

6.6

%

(11,403

)

-15.6

%

Goodwill385,270

385,270

379,627

-

0.0

%

5,643

1.5

%

Identifiable intangible assets8,142

8,895

8,345

(753

)

-8.5

%

(203

)

-2.4

%

Other real estate16,248

18,276

31,974

(2,028

)

-11.1

%

(15,726

)

-49.2

%

Operating lease right-of-use assets30,508

29,819

33,180

689

2.3

%

(2,672

)

-8.1

%

Other assets609,922

595,110

531,834

14,812

2.5

%

78,088

14.7

%

Total assets$

15,558,162

$

15,692,079

$

13,584,786

$

(133,917

)

-0.9

%

$

1,973,376

14.5

%

Deposits:Noninterest-bearing$

3,964,023

$

3,880,540

$

3,064,127

$

83,483

2.2

%

$

899,896

29.4

%

Interest-bearing9,258,390

9,624,933

8,190,056

(366,543

)

-3.8

%

1,068,334

13.0

%

Total deposits13,222,413

13,505,473

11,254,183

(283,060

)

-2.1

%

1,968,230

17.5

%

Fed funds purchased and repurchases153,834

70,255

376,712

83,579

n/m

(222,878

)

-59.2

%

Other borrowings178,599

152,860

76,685

25,739

16.8

%

101,914

n/m

Junior subordinated debt securities61,856

61,856

61,856

-

0.0

%

-

0.0

%

ACL on off-balance sheet credit exposures (1)39,659

42,663

-

(3,004

)

-7.0

%

39,659

n/m

Operating lease liabilities31,838

31,076

34,319

762

2.5

%

(2,481

)

-7.2

%

Other liabilities159,922

153,952

135,669

5,970

3.9

%

24,253

17.9

%

Total liabilities13,848,121

14,018,135

11,939,424

(170,014

)

-1.2

%

1,908,697

16.0

%

Common stock13,215

13,214

13,390

1

0.0

%

(175

)

-1.3

%

Capital surplus231,836

230,613

257,370

1,223

0.5

%

(25,534

)

-9.9

%

Retained earnings1,459,306

1,419,552

1,395,460

39,754

2.8

%

63,846

4.6

%

Accum other comprehensive income (loss), net of tax5,684

10,565

(20,858

)

(4,881

)

-46.2

%

26,542

n/m

Total shareholders' equity1,710,041

1,673,944

1,645,362

36,097

2.2

%

64,679

3.9

%

Total liabilities and equity$

15,558,162

$

15,692,079

$

13,584,786

$

(133,917

)

-0.9

%

$

1,973,376

14.5

%

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited) Linked Quarter Year over YearPERIOD END BALANCES 9/30/2020 6/30/2020 9/30/2019 $ Change % $ Change % Change ChangeCash and due from $ 564,588 $ 1,026,640 $ 486,263 $ (462,052 ) -45.0 % $ 78,325 16.1 %banksFed funds sold and 50 - - 50 n/m 50 n/m reverse repurchasesSecurities 1,922,728 1,884,153 1,553,705 38,575 2.0 % 369,023 23.8 %available for saleSecurities held to 611,280 660,048 785,422 (48,768 ) -7.4 % (174,142 ) -22.2 %maturityPPP loans 944,270 939,783 - 4,487 0.5 % 944,270 n/m

Loans held for sale 485,103 355,089 292,800 130,014 36.6 % 192,303 65.7 %(LHFS)Loans held for 9,847,728 9,659,806 9,223,668 187,922 1.9 % 624,060 6.8 %investment (LHFI)(1)ACL LHFI (1) (122,010 ) (119,188 ) (83,226 ) (2,822 ) -2.4 % (38,784 ) -46.6 %

Net LHFI 9,725,718 9,540,618 9,140,442 185,100 1.9 % 585,276 6.4 %

Acquired loans (1) - - 81,004 - n/m (81,004 ) -100.0 %

Allowance for loan - - (1,249 ) - n/m 1,249 -100.0 %losses, acquiredloans (1)Net acquired loans - - 79,755 - n/m (79,755 ) -100.0 %

Net LHFI and 9,725,718 9,540,618 9,220,197 185,100 1.9 % 505,521 5.5 %acquired loansPremises and 192,722 190,567 188,423 2,155 1.1 % 4,299 2.3 %equipment, netMortgage servicing 61,613 57,811 73,016 3,802 6.6 % (11,403 ) -15.6 %rightsGoodwill 385,270 385,270 379,627 - 0.0 % 5,643 1.5 %

Identifiable 8,142 8,895 8,345 (753 ) -8.5 % (203 ) -2.4 %intangible assetsOther real estate 16,248 18,276 31,974 (2,028 ) -11.1 % (15,726 ) -49.2 %

Operating lease 30,508 29,819 33,180 689 2.3 % (2,672 ) -8.1 %right-of-use assetsOther assets 609,922 595,110 531,834 14,812 2.5 % 78,088 14.7 %

Total assets $ 15,558,162 $ 15,692,079 $ 13,584,786 $ (133,917 ) -0.9 % $ 1,973,376 14.5 %

Deposits:Noninterest-bearing $ 3,964,023 $ 3,880,540 $ 3,064,127 $ 83,483 2.2 % $ 899,896 29.4 %

Interest-bearing 9,258,390 9,624,933 8,190,056 (366,543 ) -3.8 % 1,068,334 13.0 %

Total deposits 13,222,413 13,505,473 11,254,183 (283,060 ) -2.1 % 1,968,230 17.5 %

Fed funds purchased 153,834 70,255 376,712 83,579 n/m (222,878 ) -59.2 %and repurchasesOther borrowings 178,599 152,860 76,685 25,739 16.8 % 101,914 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesACL on off-balance 39,659 42,663 - (3,004 ) -7.0 % 39,659 n/m sheet creditexposures (1)Operating lease 31,838 31,076 34,319 762 2.5 % (2,481 ) -7.2 %liabilitiesOther liabilities 159,922 153,952 135,669 5,970 3.9 % 24,253 17.9 %

Total liabilities 13,848,121 14,018,135 11,939,424 (170,014 ) -1.2 % 1,908,697 16.0 %

Common stock 13,215 13,214 13,390 1 0.0 % (175 ) -1.3 %

Capital surplus 231,836 230,613 257,370 1,223 0.5 % (25,534 ) -9.9 %

Retained earnings 1,459,306 1,419,552 1,395,460 39,754 2.8 % 63,846 4.6 %

Accum othercomprehensive 5,684 10,565 (20,858 ) (4,881 ) -46.2 % 26,542 n/m income (loss), netof taxTotal shareholders' 1,710,041 1,673,944 1,645,362 36,097 2.2 % 64,679 3.9 %equityTotal liabilities $ 15,558,162 $ 15,692,079 $ 13,584,786 $ (133,917 ) -0.9 % $ 1,973,376 14.5 %and equity(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 meaningfulSee Notes to Consolidated Financials(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 See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands except per share data)(unaudited)Quarter EndedLinked QuarterYear over YearINCOME STATEMENTS9/30/20206/30/20209/30/2019$ Change% Change$ Change% ChangeInterest and fees on LHFS & LHFI-FTE$

97,429

$

99,300

$

116,432

$

(1,871

)

-1.9

%

$

(19,003

)

-16.3

%

Interest and fees on PPP loans6,729

5,044

-

1,685

33.4

%

6,729

n/m

Interest and fees on acquired loans (1)-

-

2,309

-

n/m

(2,309

)

-100.0

%

Interest on securities-taxable12,542

12,762

13,184

(220

)

-1.7

%

(642

)

-4.9

%

Interest on securities-tax exempt-FTE301

315

485

(14

)

-4.4

%

(184

)

-37.9

%

Interest on fed funds sold and reverse repurchases1

-

23

1

n/m

(22

)

-95.7

%

Other interest income331

239

1,044

92

38.5

%

(713

)

-68.3

%

Total interest income-FTE117,333

117,660

133,477

(327

)

-0.3

%

(16,144

)

-12.1

%

Interest on deposits7,437

8,730

20,385

(1,293

)

-14.8

%

(12,948

)

-63.5

%

Interest on fed funds purchased and repurchases32

42

547

(10

)

-23.8

%

(515

)

-94.1

%

Other interest expense688

881

830

(193

)

-21.9

%

(142

)

-17.1

%

Total interest expense8,157

9,653

21,762

(1,496

)

-15.5

%

(13,605

)

-62.5

%

Net interest income-FTE109,176

108,007

111,715

1,169

1.1

%

(2,539

)

-2.3

%

Provision for credit losses, LHFI (1)1,760

18,185

3,039

(16,425

)

-90.3

%

(1,279

)

-42.1

%

Provision for loan losses, acquired loans (1)-

-

(140

)

-

n/m

140

100.0

%

Net interest income after provision-FTE107,416

89,822

108,816

17,594

19.6

%

(1,400

)

-1.3

%

Service charges on deposit accounts7,577

6,397

11,065

1,180

18.4

%

(3,488

)

-31.5

%

Bank card and other fees8,843

7,717

8,349

1,126

14.6

%

494

5.9

%

Mortgage banking, net36,439

33,745

8,171

2,694

8.0

%

28,268

n/m

Insurance commissions11,562

11,868

11,072

(306

)

-2.6

%

490

4.4

%

Wealth management7,679

7,571

7,691

108

1.4

%

(12

)

-0.2

%

Other, net1,601

2,213

1,989

(612

)

-27.7

%

(388

)

-19.5

%

Total noninterest income73,701

69,511

48,337

4,190

6.0

%

25,364

52.5

%

Salaries and employee benefits67,342

66,107

62,495

1,235

1.9

%

4,847

7.8

%

Services and fees20,992

20,567

18,838

425

2.1

%

2,154

11.4

%

Net occupancy-premises7,000

6,587

6,831

413

6.3

%

169

2.5

%

Equipment expense5,828

5,620

5,971

208

3.7

%

(143

)

-2.4

%

Other real estate expense, net1,203

271

531

932

n/m

672

n/m

Credit loss expense related to off-balance sheet credit exposures (1)(3,004

)

6,242

-

(9,246

)

n/m

(3,004

)

n/m

Other expense14,598

13,265

12,187

1,333

10.0

%

2,411

19.8

%

Total noninterest expense113,959

118,659

106,853

(4,700

)

-4.0

%

7,106

6.7

%

Income before income taxes and tax eq adj67,158

40,674

50,300

26,484

65.1

%

16,858

33.5

%

Tax equivalent adjustment2,969

3,007

3,249

(38

)

-1.3

%

(280

)

-8.6

%

Income before income taxes64,189

37,667

47,051

26,522

70.4

%

17,138

36.4

%

Income taxes9,749

5,517

6,016

4,232

76.7

%

3,733

62.1

%

Net income$

54,440

$

32,150

$

41,035

$

22,290

69.3

%

$

13,405

32.7

%

Per share dataEarnings per share - basic$

0.86

$

0.51

$

0.64

$

0.35

68.6

%

$

0.22

34.4

%

Earnings per share - diluted$

0.86

$

0.51

$

0.64

$

0.35

68.6

%

$

0.22

34.4

%

Dividends per share$

0.23

$

0.23

$

0.23

-

0.0

%

-

0.0

%

Weighted average shares outstandingBasic63,422,692

63,416,307

64,358,540

Diluted63,581,964

63,555,065

64,514,605

Period end shares outstanding63,423,820

63,422,439

64,262,779

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands except per share data)(unaudited) Quarter Ended Linked Quarter Year over YearINCOME STATEMENTS 9/30/2020 6/30/2020 9/30/2019 $ Change % $ Change % Change ChangeInterest and fees $ 97,429 $ 99,300 $ 116,432 $ (1,871 ) -1.9 % $ (19,003 ) -16.3 %on LHFS & LHFI-FTEInterest and fees 6,729 5,044 - 1,685 33.4 % 6,729 n/m on PPP loansInterest and fees - - 2,309 - n/m (2,309 ) -100.0 %on acquired loans(1)Interest on 12,542 12,762 13,184 (220 ) -1.7 % (642 ) -4.9 %securities-taxableInterest on 301 315 485 (14 ) -4.4 % (184 ) -37.9 %securities-taxexempt-FTEInterest on fedfunds sold and 1 - 23 1 n/m (22 ) -95.7 %reverserepurchasesOther interest 331 239 1,044 92 38.5 % (713 ) -68.3 %incomeTotal interest 117,333 117,660 133,477 (327 ) -0.3 % (16,144 ) -12.1 %income-FTEInterest on 7,437 8,730 20,385 (1,293 ) -14.8 % (12,948 ) -63.5 %depositsInterest on fed 32 42 547 (10 ) -23.8 % (515 ) -94.1 %funds purchasedand repurchasesOther interest 688 881 830 (193 ) -21.9 % (142 ) -17.1 %expenseTotal interest 8,157 9,653 21,762 (1,496 ) -15.5 % (13,605 ) -62.5 %expenseNet interest 109,176 108,007 111,715 1,169 1.1 % (2,539 ) -2.3 %income-FTEProvision for 1,760 18,185 3,039 (16,425 ) -90.3 % (1,279 ) -42.1 %credit losses,LHFI (1)Provision for loan - - (140 ) - n/m 140 100.0 %losses, acquiredloans (1)Net interest 107,416 89,822 108,816 17,594 19.6 % (1,400 ) -1.3 %income afterprovision-FTEService charges on 7,577 6,397 11,065 1,180 18.4 % (3,488 ) -31.5 %deposit accountsBank card and 8,843 7,717 8,349 1,126 14.6 % 494 5.9 %other feesMortgage banking, 36,439 33,745 8,171 2,694 8.0 % 28,268 n/m netInsurance 11,562 11,868 11,072 (306 ) -2.6 % 490 4.4 %commissionsWealth management 7,679 7,571 7,691 108 1.4 % (12 ) -0.2 %

Other, net 1,601 2,213 1,989 (612 ) -27.7 % (388 ) -19.5 %

Total noninterest 73,701 69,511 48,337 4,190 6.0 % 25,364 52.5 %incomeSalaries and 67,342 66,107 62,495 1,235 1.9 % 4,847 7.8 %employee benefitsServices and fees 20,992 20,567 18,838 425 2.1 % 2,154 11.4 %

Net 7,000 6,587 6,831 413 6.3 % 169 2.5 %occupancy-premisesEquipment expense 5,828 5,620 5,971 208 3.7 % (143 ) -2.4 %

Other real estate 1,203 271 531 932 n/m 672 n/m expense, netCredit lossexpense related to (3,004 ) 6,242 - (9,246 ) n/m (3,004 ) n/m off-balance sheetcredit exposures(1)Other expense 14,598 13,265 12,187 1,333 10.0 % 2,411 19.8 %

Total noninterest 113,959 118,659 106,853 (4,700 ) -4.0 % 7,106 6.7 %expenseIncome before 67,158 40,674 50,300 26,484 65.1 % 16,858 33.5 %income taxes andtax eq adjTax equivalent 2,969 3,007 3,249 (38 ) -1.3 % (280 ) -8.6 %adjustmentIncome before 64,189 37,667 47,051 26,522 70.4 % 17,138 36.4 %income taxesIncome taxes 9,749 5,517 6,016 4,232 76.7 % 3,733 62.1 %

Net income $ 54,440 $ 32,150 $ 41,035 $ 22,290 69.3 % $ 13,405 32.7 %

Per share dataEarnings per share $ 0.86 $ 0.51 $ 0.64 $ 0.35 68.6 % $ 0.22 34.4 %- basic Earnings per share $ 0.86 $ 0.51 $ 0.64 $ 0.35 68.6 % $ 0.22 34.4 %- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 - 0.0 % - 0.0 %share Weighted averageshares outstandingBasic 63,422,692 63,416,307 64,358,540

Diluted 63,581,964 63,555,065 64,514,605

Period end shares 63,423,820 63,422,439 64,262,779 outstanding(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 meaningfulSee Notes to Consolidated Financials(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 See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited)Quarter EndedLinked QuarterYear over YearNONPERFORMING ASSETS (1)9/30/20206/30/20209/30/2019$ Change% Change$ Change% ChangeNonaccrual LHFIAlabama$

3,860

$

4,392

$

2,936

$

(532

)

-12.1

%

$

924

31.5

%

Florida617

687

311

(70

)

-10.2

%

306

98.4

%

Mississippi (2)35,617

37,884

43,895

(2,267

)

-6.0

%

(8,278

)

-18.9

%

Tennessee (3)13,041

6,125

10,193

6,916

n/m

2,848

27.9

%

Texas721

906

1,695

(185

)

-20.4

%

(974

)

-57.5

%

Total nonaccrual LHFI53,856

49,994

59,030

3,862

7.7

%

(5,174

)

-8.8

%

Other real estateAlabama3,725

4,766

6,501

(1,041

)

-21.8

%

(2,776

)

-42.7

%

Florida3,665

3,665

6,983

-

0.0

%

(3,318

)

-47.5

%

Mississippi (2)8,718

9,408

17,646

(690

)

-7.3

%

(8,928

)

-50.6

%

Tennessee (3)140

437

844

(297

)

-68.0

%

(704

)

-83.4

%

Texas-

-

-

-

n/m

-

n/m

Total other real estate16,248

18,276

31,974

(2,028

)

-11.1

%

(15,726

)

-49.2

%

Total nonperforming assets$

70,104

$

68,270

$

91,004

$

1,834

2.7

%

$

(20,900

)

-23.0

%

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

782

$

807

$

878

$

(25

)

-3.1

%

$

(96

)

-10.9

%

LHFS-Guaranteed GNMA serviced loans(no obligation to repurchase)$

121,281

$

56,269

$

36,445

$

65,012

n/m

$

84,836

n/m

Quarter EndedLinked QuarterYear over YearACL LHFI (1)(4)9/30/20206/30/20209/30/2019$ Change% Change$ Change% ChangeBeginning Balance$

119,188

$

100,564

$

80,399

$

18,624

18.5

%

$

38,789

48.2

%

CECL adoption adjustments:LHFI-

-

-

-

n/m

-

n/m

Acquired loan transfers-

-

-

-

n/m

-

n/m

Provision for credit losses1,760

18,185

3,039

(16,425

)

-90.3

%

(1,279

)

-42.1

%

Charge-offs(1,263

)

(1,870

)

(2,892

)

607

32.5

%

1,629

56.3

%

Recoveries2,325

2,309

2,680

16

0.7

%

(355

)

-13.2

%

Net (charge-offs) recoveries1,062

439

(212

)

623

n/m

1,274

n/m

Ending Balance$

122,010

$

119,188

$

83,226

$

2,822

2.4

%

$

38,784

46.6

%

NET (CHARGE-OFFS) RECOVERIES (1)Alabama$

117

$

526

$

(329

)

$

(409

)

-77.8

%

$

446

n/m

Florida387

(127

)

136

514

n/m

251

n/m

Mississippi (2)442

(86

)

391

528

n/m

51

13.0

%

Tennessee (3)42

66

(483

)

(24

)

-36.4

%

525

n/m

Texas74

60

73

14

23.3

%

1

1.4

%

Total net (charge-offs) recoveries$

1,062

$

439

$

(212

)

$

623

n/m

$

1,274

n/m

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited) Quarter Ended Linked Quarter Year over YearNONPERFORMING 9/30/2020 6/30/2020 9/30/2019 $ Change % $ Change %ASSETS (1) Change ChangeNonaccrual LHFIAlabama $ 3,860 $ 4,392 $ 2,936 $ (532 ) -12.1 % $ 924 31.5 %

Florida 617 687 311 (70 ) -10.2 % 306 98.4 %

Mississippi (2) 35,617 37,884 43,895 (2,267 ) -6.0 % (8,278 ) -18.9 %

Tennessee (3) 13,041 6,125 10,193 6,916 n/m 2,848 27.9 %

Texas 721 906 1,695 (185 ) -20.4 % (974 ) -57.5 %

Total 53,856 49,994 59,030 3,862 7.7 % (5,174 ) -8.8 %nonaccrual LHFIOther realestateAlabama 3,725 4,766 6,501 (1,041 ) -21.8 % (2,776 ) -42.7 %

Florida 3,665 3,665 6,983 - 0.0 % (3,318 ) -47.5 %

Mississippi (2) 8,718 9,408 17,646 (690 ) -7.3 % (8,928 ) -50.6 %

Tennessee (3) 140 437 844 (297 ) -68.0 % (704 ) -83.4 %

Texas - - - - n/m - n/m

Total other 16,248 18,276 31,974 (2,028 ) -11.1 % (15,726 ) -49.2 %real estateTotal $ 70,104 $ 68,270 $ 91,004 $ 1,834 2.7 % $ (20,900 ) -23.0 %nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 782 $ 807 $ 878 $ (25 ) -3.1 % $ (96 ) -10.9 %

LHFS-GuaranteedGNMA servicedloans(no obligation $ 121,281 $ 56,269 $ 36,445 $ 65,012 n/m $ 84,836 n/m to repurchase) Quarter Ended Linked Quarter Year over YearACL LHFI (1)(4) 9/30/2020 6/30/2020 9/30/2019 $ Change % $ Change % Change ChangeBeginning $ 119,188 $ 100,564 $ 80,399 $ 18,624 18.5 % $ 38,789 48.2 %BalanceCECL adoptionadjustments:LHFI - - - - n/m - n/m

Acquired loan - - - - n/m - n/m transfersProvision for 1,760 18,185 3,039 (16,425 ) -90.3 % (1,279 ) -42.1 %credit lossesCharge-offs (1,263 ) (1,870 ) (2,892 ) 607 32.5 % 1,629 56.3 %

Recoveries 2,325 2,309 2,680 16 0.7 % (355 ) -13.2 %

Net 1,062 439 (212 ) 623 n/m 1,274 n/m (charge-offs)recoveriesEnding Balance $ 122,010 $ 119,188 $ 83,226 $ 2,822 2.4 % $ 38,784 46.6 %

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 117 $ 526 $ (329 ) $ (409 ) -77.8 % $ 446 n/m

Florida 387 (127 ) 136 514 n/m 251 n/m

Mississippi (2) 442 (86 ) 391 528 n/m 51 13.0 %

Tennessee (3) 42 66 (483 ) (24 ) -36.4 % 525 n/m

Texas 74 60 73 14 23.3 % 1 1.4 %

Total net $ 1,062 $ 439 $ (212 ) $ 623 n/m $ 1,274 n/m (charge-offs)recoveries(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 meaningfulSee Notes to Consolidated Financials(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 See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited)Quarter EndedNine Months EndedAVERAGE BALANCES9/30/20206/30/20203/31/202012/31/20199/30/20199/30/20209/30/2019Securities AFS-taxable$

1,857,050

$

1,724,320

$

1,620,422

$

1,551,358

$

1,570,803

$

1,734,380

$

1,661,177

Securities AFS-nontaxable5,973

9,827

22,056

23,300

25,096

12,594

32,188

Securities HTM-taxable608,585

655,085

694,740

734,474

778,098

652,642

821,716

Securities HTM-nontaxable25,508

25,538

25,673

25,703

26,088

25,573

27,268

Total securities2,497,116

2,414,770

2,362,891

2,334,835

2,400,085

2,425,189

2,542,349

PPP loans941,456

764,416

-

-

-

569,985

-

Loans (includes loans held for sale) (1)10,162,379

9,908,132

9,678,174

9,467,437

9,436,287

9,917,127

9,246,298

Acquired loans (1)-

-

-

77,797

82,641

-

92,645

Fed funds sold and reverse repurchases301

113

164

184

3,662

193

12,678

Other earning assets722,917

854,642

187,327

227,116

176,163

588,787

245,173

Total earning assets14,324,169

13,942,073

12,228,556

12,107,369

12,098,838

13,501,281

12,139,143

ACL LHFI (1)(121,842

)

(103,006

)

(85,015

)

(86,211

)

(83,756

)

(103,355

)

(82,665

)

Other assets1,564,825

1,685,317

1,498,725

1,445,075

1,447,977

1,582,888

1,454,350

Total assets$

15,767,152

$

15,524,384

$

13,642,266

$

13,466,233

$

13,463,059

$

14,980,814

$

13,510,828

Interest-bearing demand deposits$

3,669,249

$

3,832,372

$

3,184,134

$

3,167,256

$

3,085,758

$

3,562,310

$

3,012,049

Savings deposits4,416,046

4,180,540

3,646,936

3,448,899

3,568,403

4,082,396

3,718,008

Time deposits1,507,348

1,578,737

1,617,307

1,663,741

1,753,083

1,567,577

1,824,431

Total interest-bearing deposits9,592,643

9,591,649

8,448,377

8,279,896

8,407,244

9,212,283

8,554,488

Fed funds purchased and repurchases84,077

105,696

247,513

164,754

142,064

145,537

92,771

Other borrowings167,262

107,533

85,279

79,512

78,404

120,197

83,475

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

61,856

61,856

Total interest-bearing liabilities9,905,838

9,866,734

8,843,025

8,586,018

8,689,568

9,539,873

8,792,590

Noninterest-bearing deposits3,921,867

3,645,761

2,910,951

3,017,824

2,932,754

3,494,425

2,885,478

Other liabilities244,544

346,173

248,220

205,786

206,091

279,517

222,404

Total liabilities14,072,249

13,858,668

12,002,196

11,809,628

11,828,413

13,313,815

11,900,472

Shareholders' equity1,694,903

1,665,716

1,640,070

1,656,605

1,634,646

1,666,999

1,610,356

Total liabilities and equity$

15,767,152

$

15,524,384

$

13,642,266

$

13,466,233

$

13,463,059

$

14,980,814

$

13,510,828

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited) Quarter Ended Nine Months EndedAVERAGE BALANCES 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019Securities AFS-taxable $ 1,857,050 $ 1,724,320 $ 1,620,422 $ 1,551,358 $ 1,570,803 $ 1,734,380 $ 1,661,177

Securities AFS-nontaxable 5,973 9,827 22,056 23,300 25,096 12,594 32,188

Securities HTM-taxable 608,585 655,085 694,740 734,474 778,098 652,642 821,716

Securities HTM-nontaxable 25,508 25,538 25,673 25,703 26,088 25,573 27,268

Total securities 2,497,116 2,414,770 2,362,891 2,334,835 2,400,085 2,425,189 2,542,349

PPP loans 941,456 764,416 - - - 569,985 -

Loans (includes loans held for 10,162,379 9,908,132 9,678,174 9,467,437 9,436,287 9,917,127 9,246,298 sale) (1)Acquired loans (1) - - - 77,797 82,641 - 92,645

Fed funds sold and reverse 301 113 164 184 3,662 193 12,678 repurchasesOther earning assets 722,917 854,642 187,327 227,116 176,163 588,787 245,173

Total earning assets 14,324,169 13,942,073 12,228,556 12,107,369 12,098,838 13,501,281 12,139,143

ACL LHFI (1) (121,842 ) (103,006 ) (85,015 ) (86,211 ) (83,756 ) (103,355 ) (82,665 )

Other assets 1,564,825 1,685,317 1,498,725 1,445,075 1,447,977 1,582,888 1,454,350

Total assets $ 15,767,152 $ 15,524,384 $ 13,642,266 $ 13,466,233 $ 13,463,059 $ 14,980,814 $ 13,510,828

Interest-bearing demand $ 3,669,249 $ 3,832,372 $ 3,184,134 $ 3,167,256 $ 3,085,758 $ 3,562,310 $ 3,012,049 depositsSavings deposits 4,416,046 4,180,540 3,646,936 3,448,899 3,568,403 4,082,396 3,718,008

Time deposits 1,507,348 1,578,737 1,617,307 1,663,741 1,753,083 1,567,577 1,824,431

Total interest-bearing 9,592,643 9,591,649 8,448,377 8,279,896 8,407,244 9,212,283 8,554,488 depositsFed funds purchased and 84,077 105,696 247,513 164,754 142,064 145,537 92,771 repurchasesOther borrowings 167,262 107,533 85,279 79,512 78,404 120,197 83,475

Junior subordinated debt 61,856 61,856 61,856 61,856 61,856 61,856 61,856 securitiesTotal interest-bearing 9,905,838 9,866,734 8,843,025 8,586,018 8,689,568 9,539,873 8,792,590 liabilitiesNoninterest-bearing deposits 3,921,867 3,645,761 2,910,951 3,017,824 2,932,754 3,494,425 2,885,478

Other liabilities 244,544 346,173 248,220 205,786 206,091 279,517 222,404

Total liabilities 14,072,249 13,858,668 12,002,196 11,809,628 11,828,413 13,313,815 11,900,472

Shareholders' equity 1,694,903 1,665,716 1,640,070 1,656,605 1,634,646 1,666,999 1,610,356

Total liabilities and equity $ 15,767,152 $ 15,524,384 $ 13,642,266 $ 13,466,233 $ 13,463,059 $ 14,980,814 $ 13,510,828

(1)

See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.See Notes to Consolidated Financials(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited)PERIOD END BALANCES9/30/20206/30/20203/31/202012/31/20199/30/2019Cash and due from banks$

564,588

$

1,026,640

$

404,341

$

358,916

$

486,263

Fed funds sold and reverse repurchases50

-

2,000

-

-

Securities available for sale1,922,728

1,884,153

1,833,779

1,602,404

1,553,705

Securities held to maturity611,280

660,048

704,276

738,099

785,422

PPP loans944,270

939,783

-

-

-

Loans held for sale (LHFS)485,103

355,089

325,389

226,347

292,800

Loans held for investment (LHFI) (1)9,847,728

9,659,806

9,567,920

9,335,628

9,223,668

ACL LHFI (1)(122,010

)

(119,188

)

(100,564

)

(84,277

)

(83,226

)

Net LHFI9,725,718

9,540,618

9,467,356

9,251,351

9,140,442

Acquired loans (1)-

-

-

72,601

81,004

Allowance for loan losses, acquired loans (1)-

-

-

(815

)

(1,249

)

Net acquired loans-

-

-

71,786

79,755

Net LHFI and acquired loans9,725,718

9,540,618

9,467,356

9,323,137

9,220,197

Premises and equipment, net192,722

190,567

190,179

189,791

188,423

Mortgage servicing rights61,613

57,811

56,437

79,394

73,016

Goodwill385,270

385,270

381,717

379,627

379,627

Identifiable intangible assets8,142

8,895

7,537

7,343

8,345

Other real estate16,248

18,276

24,847

29,248

31,974

Operating lease right-of-use assets30,508

29,819

30,839

31,182

33,180

Other assets609,922

595,110

591,132

532,389

531,834

Total assets$

15,558,162

$

15,692,079

$

14,019,829

$

13,497,877

$

13,584,786

Deposits:Noninterest-bearing$

3,964,023

$

3,880,540

$

2,977,058

$

2,891,215

$

3,064,127

Interest-bearing9,258,390

9,624,933

8,598,706

8,354,342

8,190,056

Total deposits13,222,413

13,505,473

11,575,764

11,245,557

11,254,183

Fed funds purchased and repurchases153,834

70,255

421,821

256,020

376,712

Other borrowings178,599

152,860

84,230

85,396

76,685

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

ACL on off-balance sheet credit exposures (1)39,659

42,663

36,421

-

-

Operating lease liabilities31,838

31,076

32,055

32,354

34,319

Other liabilities159,922

153,952

155,283

155,992

135,669

Total liabilities13,848,121

14,018,135

12,367,430

11,837,175

11,939,424

Common stock13,215

13,214

13,209

13,376

13,390

Capital surplus231,836

230,613

229,403

256,400

257,370

Retained earnings1,459,306

1,419,552

1,402,089

1,414,526

1,395,460

Accum other comprehensive income (loss), net of tax5,684

10,565

7,698

(23,600

)

(20,858

)

Total shareholders' equity1,710,041

1,673,944

1,652,399

1,660,702

1,645,362

Total liabilities and equity$

15,558,162

$

15,692,079

$

14,019,829

$

13,497,877

$

13,584,786

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited) PERIOD END BALANCES 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019Cash and due from $ 564,588 $ 1,026,640 $ 404,341 $ 358,916 $ 486,263 banksFed funds sold and 50 - 2,000 - - reverse repurchasesSecurities 1,922,728 1,884,153 1,833,779 1,602,404 1,553,705 available for saleSecurities held to 611,280 660,048 704,276 738,099 785,422 maturityPPP loans 944,270 939,783 - - -

Loans held for sale 485,103 355,089 325,389 226,347 292,800 (LHFS)Loans held for 9,847,728 9,659,806 9,567,920 9,335,628 9,223,668 investment (LHFI)(1)ACL LHFI (1) (122,010 ) (119,188 ) (100,564 ) (84,277 ) (83,226 )

Net LHFI 9,725,718 9,540,618 9,467,356 9,251,351 9,140,442

Acquired loans (1) - - - 72,601 81,004

Allowance for loan - - - (815 ) (1,249 )losses, acquiredloans (1)Net acquired loans - - - 71,786 79,755

Net LHFI and 9,725,718 9,540,618 9,467,356 9,323,137 9,220,197 acquired loansPremises and 192,722 190,567 190,179 189,791 188,423 equipment, netMortgage servicing 61,613 57,811 56,437 79,394 73,016 rightsGoodwill 385,270 385,270 381,717 379,627 379,627

Identifiable 8,142 8,895 7,537 7,343 8,345 intangible assetsOther real estate 16,248 18,276 24,847 29,248 31,974

Operating lease 30,508 29,819 30,839 31,182 33,180 right-of-use assetsOther assets 609,922 595,110 591,132 532,389 531,834

Total assets $ 15,558,162 $ 15,692,079 $ 14,019,829 $ 13,497,877 $ 13,584,786

Deposits:Noninterest-bearing $ 3,964,023 $ 3,880,540 $ 2,977,058 $ 2,891,215 $ 3,064,127

Interest-bearing 9,258,390 9,624,933 8,598,706 8,354,342 8,190,056

Total deposits 13,222,413 13,505,473 11,575,764 11,245,557 11,254,183

Fed funds purchased 153,834 70,255 421,821 256,020 376,712 and repurchasesOther borrowings 178,599 152,860 84,230 85,396 76,685

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securitiesACL on off-balance 39,659 42,663 36,421 - - sheet creditexposures (1)Operating lease 31,838 31,076 32,055 32,354 34,319 liabilitiesOther liabilities 159,922 153,952 155,283 155,992 135,669

Total liabilities 13,848,121 14,018,135 12,367,430 11,837,175 11,939,424

Common stock 13,215 13,214 13,209 13,376 13,390

Capital surplus 231,836 230,613 229,403 256,400 257,370

Retained earnings 1,459,306 1,419,552 1,402,089 1,414,526 1,395,460

Accum othercomprehensive 5,684 10,565 7,698 (23,600 ) (20,858 )income (loss), netof taxTotal shareholders' 1,710,041 1,673,944 1,652,399 1,660,702 1,645,362 equityTotal liabilities $ 15,558,162 $ 15,692,079 $ 14,019,829 $ 13,497,877 $ 13,584,786 and equity(1)

See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.See Notes to Consolidated Financials(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands except per share data)(unaudited)Quarter EndedNine Months EndedINCOME STATEMENTS9/30/20206/30/20203/31/202012/31/20199/30/20199/30/20209/30/2019Interest and fees on LHFS & LHFI-FTE$

97,429

$

99,300

$

109,357

$

111,383

$

116,432

$

306,086

$

341,195

Interest and fees on PPP loans6,729

5,044

-

-

-

11,773

-

Interest and fees on acquired loans (1)-

-

-

2,138

2,309

-

6,235

Interest on securities-taxable12,542

12,762

12,948

12,884

13,184

38,252

41,765

Interest on securities-tax exempt-FTE301

315

457

484

485

1,073

1,682

Interest on fed funds sold and reverse repurchases1

-

-

1

23

1

239

Other interest income331

239

740

896

1,044

1,310

4,467

Total interest income-FTE117,333

117,660

123,502

127,786

133,477

358,495

395,583

Interest on deposits7,437

8,730

14,957

17,716

20,385

31,124

61,455

Interest on fed funds purchased and repurchases32

42

625

504

547

699

916

Other interest expense688

881

860

826

830

2,429

2,486

Total interest expense8,157

9,653

16,442

19,046

21,762

34,252

64,857

Net interest income-FTE109,176

108,007

107,060

108,740

111,715

324,243

330,726

Provision for credit losses, LHFI (1)1,760

18,185

20,581

3,661

3,039

40,526

7,136

Provision for loan losses, acquired loans (1)-

-

-

(2

)

(140

)

-

44

Net interest income after provision-FTE107,416

89,822

86,479

105,081

108,816

283,717

323,546

Service charges on deposit accounts7,577

6,397

10,032

10,894

11,065

24,006

31,709

Bank card and other fees8,843

7,717

5,355

8,192

8,349

21,915

23,544

Mortgage banking, net36,439

33,745

27,483

7,914

8,171

97,667

21,908

Insurance commissions11,562

11,868

11,550

9,364

11,072

34,980

33,032

Wealth management7,679

7,571

8,537

7,763

7,691

23,787

22,916

Other, net1,601

2,213

2,307

3,451

1,989

6,121

6,358

Total noninterest income73,701

69,511

65,264

47,578

48,337

208,476

139,467

Salaries and employee benefits67,342

66,107

69,148

62,319

62,495

202,597

185,398

Services and fees20,992

20,567

19,930

19,500

18,838

61,489

53,815

Net occupancy-premises7,000

6,587

6,286

6,461

6,831

19,873

19,688

Equipment expense5,828

5,620

5,616

5,880

5,971

17,064

17,853

Other real estate expense, net1,203

271

1,294

1,491

531

2,768

2,415

Credit loss expense related to off-balance sheet credit exposures (1)(3,004

)

6,242

6,783

-

-

10,021

-

Other expense14,598

13,265

14,753

14,376

12,187

42,616

39,806

Total noninterest expense113,959

118,659

123,810

110,027

106,853

356,428

318,975

Income before income taxes and tax eq adj67,158

40,674

27,933

42,632

50,300

135,765

144,038

Tax equivalent adjustment2,969

3,007

3,108

3,149

3,249

9,084

9,728

Income before income taxes64,189

37,667

24,825

39,483

47,051

126,681

134,310

Income taxes9,749

5,517

2,607

5,537

6,016

17,873

17,796

Net income$

54,440

$

32,150

$

22,218

$

33,946

$

41,035

$

108,808

$

116,514

Per share dataEarnings per share - basic$

0.86

$

0.51

$

0.35

$

0.53

$

0.64

$

1.71

$

1.80

Earnings per share - diluted$

0.86

$

0.51

$

0.35

$

0.53

$

0.64

$

1.71

$

1.80

Dividends per share$

0.23

$

0.23

$

0.23

$

0.23

$

0.23

$

0.69

$

0.69

Weighted average shares outstandingBasic63,422,692

63,416,307

63,756,629

64,255,716

64,358,540

63,531,478

64,755,406

Diluted63,581,964

63,555,065

63,913,603

64,435,276

64,514,605

63,665,127

64,889,916

Period end shares outstanding63,423,820

63,422,439

63,396,912

64,200,111

64,262,779

63,423,820

64,262,779

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands except per share data)(unaudited) Quarter Ended Nine Months EndedINCOME STATEMENTS 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019Interest and fees $ 97,429 $ 99,300 $ 109,357 $ 111,383 $ 116,432 $ 306,086 $ 341,195on LHFS & LHFI-FTEInterest and fees 6,729 5,044 - - - 11,773 -on PPP loansInterest and fees - - - 2,138 2,309 - 6,235on acquired loans(1)Interest on 12,542 12,762 12,948 12,884 13,184 38,252 41,765securities-taxableInterest on 301 315 457 484 485 1,073 1,682securities-taxexempt-FTEInterest on fedfunds sold and 1 - - 1 23 1 239reverserepurchasesOther interest 331 239 740 896 1,044 1,310 4,467incomeTotal interest 117,333 117,660 123,502 127,786 133,477 358,495 395,583income-FTEInterest on 7,437 8,730 14,957 17,716 20,385 31,124 61,455depositsInterest on fed 32 42 625 504 547 699 916funds purchasedand repurchasesOther interest 688 881 860 826 830 2,429 2,486expenseTotal interest 8,157 9,653 16,442 19,046 21,762 34,252 64,857expenseNet interest 109,176 108,007 107,060 108,740 111,715 324,243 330,726income-FTEProvision for 1,760 18,185 20,581 3,661 3,039 40,526 7,136credit losses,LHFI (1)Provision for loan - - - (2 ) (140 ) - 44losses, acquiredloans (1)Net interest 107,416 89,822 86,479 105,081 108,816 283,717 323,546income afterprovision-FTEService charges on 7,577 6,397 10,032 10,894 11,065 24,006 31,709deposit accountsBank card and 8,843 7,717 5,355 8,192 8,349 21,915 23,544other feesMortgage banking, 36,439 33,745 27,483 7,914 8,171 97,667 21,908netInsurance 11,562 11,868 11,550 9,364 11,072 34,980 33,032commissionsWealth management 7,679 7,571 8,537 7,763 7,691 23,787 22,916

Other, net 1,601 2,213 2,307 3,451 1,989 6,121 6,358

Total noninterest 73,701 69,511 65,264 47,578 48,337 208,476 139,467incomeSalaries and 67,342 66,107 69,148 62,319 62,495 202,597 185,398employee benefitsServices and fees 20,992 20,567 19,930 19,500 18,838 61,489 53,815

Net 7,000 6,587 6,286 6,461 6,831 19,873 19,688occupancy-premisesEquipment expense 5,828 5,620 5,616 5,880 5,971 17,064 17,853

Other real estate 1,203 271 1,294 1,491 531 2,768 2,415expense, netCredit lossexpense related to (3,004 ) 6,242 6,783 - - 10,021 -off-balance sheetcredit exposures(1)Other expense 14,598 13,265 14,753 14,376 12,187 42,616 39,806

Total noninterest 113,959 118,659 123,810 110,027 106,853 356,428 318,975expenseIncome before 67,158 40,674 27,933 42,632 50,300 135,765 144,038income taxes andtax eq adjTax equivalent 2,969 3,007 3,108 3,149 3,249 9,084 9,728adjustmentIncome before 64,189 37,667 24,825 39,483 47,051 126,681 134,310income taxesIncome taxes 9,749 5,517 2,607 5,537 6,016 17,873 17,796

Net income $ 54,440 $ 32,150 $ 22,218 $ 33,946 $ 41,035 $ 108,808 $ 116,514

Per share dataEarnings per share $ 0.86 $ 0.51 $ 0.35 $ 0.53 $ 0.64 $ 1.71 $ 1.80- basic Earnings per share $ 0.86 $ 0.51 $ 0.35 $ 0.53 $ 0.64 $ 1.71 $ 1.80- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.69 $ 0.69share Weighted averageshares outstandingBasic 63,422,692 63,416,307 63,756,629 64,255,716 64,358,540 63,531,478 64,755,406

Diluted 63,581,964 63,555,065 63,913,603 64,435,276 64,514,605 63,665,127 64,889,916

Period end shares 63,423,820 63,422,439 63,396,912 64,200,111 64,262,779 63,423,820 64,262,779outstanding(1)

See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.See Notes to Consolidated Financials(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited)Quarter EndedNONPERFORMING ASSETS (1)9/30/20206/30/20203/31/202012/31/20199/30/2019Nonaccrual LHFIAlabama$

3,860

$

4,392

$

4,769

$

1,870

$

2,936

Florida617

687

254

267

311

Mississippi (2)35,617

37,884

40,815

41,493

43,895

Tennessee (3)13,041

6,125

6,153

8,980

10,193

Texas721

906

1,001

616

1,695

Total nonaccrual LHFI53,856

49,994

52,992

53,226

59,030

Other real estateAlabama3,725

4,766

6,229

8,133

6,501

Florida3,665

3,665

4,835

5,877

6,983

Mississippi (2)8,718

9,408

13,296

14,919

17,646

Tennessee (3)140

437

487

319

844

Texas-

-

-

-

-

Total other real estate16,248

18,276

24,847

29,248

31,974

Total nonperforming assets$

70,104

$

68,270

$

77,839

$

82,474

$

91,004

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

782

$

807

$

708

$

642

$

878

LHFS-Guaranteed GNMA serviced loans(no obligation to repurchase)$

121,281

$

56,269

$

43,564

$

41,648

$

36,445

Quarter EndedNine Months EndedACL LHFI (1)(4)9/30/20206/30/20203/31/202012/31/20199/30/20199/30/20209/30/2019Beginning Balance$

119,188

$

100,564

$

84,277

$

83,226

$

80,399

$

84,277

$

79,290

CECL adoption adjustments:LHFI-

-

(3,039

)

-

-

(3,039

)

-

Acquired loan transfers-

-

1,822

-

-

1,822

-

Provision for credit losses1,760

18,185

20,581

3,661

3,039

40,526

7,136

Charge-offs(1,263

)

(1,870

)

(5,545

)

(4,619

)

(2,892

)

(8,678

)

(9,862

)

Recoveries2,325

2,309

2,468

2,009

2,680

7,102

6,662

Net (charge-offs) recoveries1,062

439

(3,077

)

(2,610

)

(212

)

(1,576

)

(3,200

)

Ending Balance$

122,010

$

119,188

$

100,564

$

84,277

$

83,226

$

122,010

$

83,226

NET (CHARGE-OFFS) RECOVERIES (1)Alabama$

117

$

526

$

(1,080

)

$

(132

)

$

(329

)

$

(437

)

$

(622

)

Florida387

(127

)

64

357

136

324

493

Mississippi (2)442

(86

)

126

(1,792

)

391

482

(2,646

)

Tennessee (3)42

66

(2,186

)

(131

)

(483

)

(2,078

)

(577

)

Texas74

60

(1

)

(912

)

73

133

152

Total net (charge-offs) recoveries$

1,062

$

439

$

(3,077

)

$

(2,610

)

$

(212

)

$

(1,576

)

$

(3,200

)

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020($ in thousands)(unaudited) Quarter EndedNONPERFORMING 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019ASSETS (1)Nonaccrual LHFIAlabama $ 3,860 $ 4,392 $ 4,769 $ 1,870 $ 2,936

Florida 617 687 254 267 311

Mississippi (2) 35,617 37,884 40,815 41,493 43,895

Tennessee (3) 13,041 6,125 6,153 8,980 10,193

Texas 721 906 1,001 616 1,695

Total 53,856 49,994 52,992 53,226 59,030 nonaccrual LHFIOther realestateAlabama 3,725 4,766 6,229 8,133 6,501

Florida 3,665 3,665 4,835 5,877 6,983

Mississippi (2) 8,718 9,408 13,296 14,919 17,646

Tennessee (3) 140 437 487 319 844

Texas - - - - -

Total other 16,248 18,276 24,847 29,248 31,974 real estateTotal $ 70,104 $ 68,270 $ 77,839 $ 82,474 $ 91,004 nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 782 $ 807 $ 708 $ 642 $ 878

LHFS-GuaranteedGNMA servicedloans(no obligation $ 121,281 $ 56,269 $ 43,564 $ 41,648 $ 36,445 to repurchase) Quarter Ended Nine Months EndedACL LHFI (1)(4) 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019Beginning $ 119,188 $ 100,564 $ 84,277 $ 83,226 $ 80,399 $ 84,277 $ 79,290 BalanceCECL adoptionadjustments:LHFI - - (3,039 ) - - (3,039 ) -

Acquired loan - - 1,822 - - 1,822 - transfersProvision for 1,760 18,185 20,581 3,661 3,039 40,526 7,136 credit lossesCharge-offs (1,263 ) (1,870 ) (5,545 ) (4,619 ) (2,892 ) (8,678 ) (9,862 )

Recoveries 2,325 2,309 2,468 2,009 2,680 7,102 6,662

Net 1,062 439 (3,077 ) (2,610 ) (212 ) (1,576 ) (3,200 )(charge-offs)recoveriesEnding Balance $ 122,010 $ 119,188 $ 100,564 $ 84,277 $ 83,226 $ 122,010 $ 83,226

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 117 $ 526 $ (1,080 ) $ (132 ) $ (329 ) $ (437 ) $ (622 )

Florida 387 (127 ) 64 357 136 324 493

Mississippi (2) 442 (86 ) 126 (1,792 ) 391 482 (2,646 )

Tennessee (3) 42 66 (2,186 ) (131 ) (483 ) (2,078 ) (577 )

Texas 74 60 (1 ) (912 ) 73 133 152

Total net $ 1,062 $ 439 $ (3,077 ) $ (2,610 ) $ (212 ) $ (1,576 ) $ (3,200 )(charge-offs)recoveries(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.See Notes to Consolidated Financials(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. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020(unaudited)Quarter EndedNine Months EndedFINANCIAL RATIOS AND OTHER DATA9/30/20206/30/20203/31/202012/31/20199/30/20199/30/20209/30/2019Return on average equity12.78

%

7.76

%

5.45

%

8.13

%

9.96

%

8.72

%

9.67

%

Return on average tangible equity16.82

%

10.32

%

7.34

%

10.85

%

13.31

%

11.57

%

13.01

%

Return on average assets1.37

%

0.83

%

0.66

%

1.00

%

1.21

%

0.97

%

1.15

%

Interest margin - Yield - FTE3.26

%

3.39

%

4.06

%

4.19

%

4.38

%

3.55

%

4.36

%

Interest margin - Cost0.23

%

0.28

%

0.54

%

0.62

%

0.71

%

0.34

%

0.71

%

Net interest margin - FTE3.03

%

3.12

%

3.52

%

3.56

%

3.66

%

3.21

%

3.64

%

Efficiency ratio (1)62.19

%

62.13

%

63.50

%

68.08

%

64.98

%

62.59

%

65.82

%

Full-time equivalent employees2,807

2,798

2,761

2,844

2,835

CREDIT QUALITY RATIOS (2)Net (recoveries) charge-offs / average loans-0.04

%

-0.02

%

0.13

%

0.11

%

0.01

%

0.02

%

0.05

%

Provision for credit losses / average loans (3)0.07

%

0.74

%

0.86

%

0.15

%

0.13

%

0.55

%

0.10

%

Nonaccrual LHFI / (LHFI + LHFS)0.52

%

0.50

%

0.54

%

0.56

%

0.62

%

Nonperforming assets / (LHFI + LHFS)0.68

%

0.68

%

0.79

%

0.86

%

0.96

%

Nonperforming assets / (LHFI + LHFS + other real estate)0.68

%

0.68

%

0.78

%

0.86

%

0.95

%

ACL LHFI / LHFI (3)1.24

%

1.23

%

1.05

%

0.90

%

0.90

%

ACL LHFI-commercial / commercial LHFI (3)1.20

%

1.15

%

0.97

%

0.98

%

0.98

%

ACL LHFI-consumer / consumer and home mortgage LHFI (3)1.41

%

1.56

%

1.35

%

0.61

%

0.61

%

ACL LHFI / nonaccrual LHFI (3)226.55

%

238.40

%

189.77

%

158.34

%

140.99

%

ACL LHFI / nonaccrual LHFI (excl individually evaluated loans) (3)593.72

%

561.04

%

468.84

%

410.52

%

357.15

%

CAPITAL RATIOS (3)Total equity / total assets10.99

%

10.67

%

11.79

%

12.30

%

12.11

%

Tangible equity / tangible assets8.68

%

8.37

%

9.27

%

9.72

%

9.53

%

Tangible equity / risk-weighted assets11.01

%

11.09

%

11.05

%

11.58

%

11.50

%

Tier 1 leverage ratio9.20

%

9.08

%

10.21

%

10.48

%

10.34

%

Common equity tier 1 capital ratio11.36

%

11.42

%

11.35

%

11.93

%

11.83

%

Tier 1 risk-based capital ratio11.86

%

11.94

%

11.88

%

12.48

%

12.38

%

Total risk-based capital ratio12.88

%

13.00

%

12.78

%

13.25

%

13.15

%

STOCK PERFORMANCEMarket value-Close$

21.41

$

24.52

$

23.30

$

34.51

$

34.11

Book value$

26.96

$

26.39

$

26.06

$

25.87

$

25.60

Tangible book value$

20.76

$

20.18

$

19.92

$

19.84

$

19.57

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2020(unaudited) Quarter Ended Nine Months EndedFINANCIAL 9/30/ 9/30/RATIOS AND 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 2020 2019OTHER DATAReturn on 12.78 % 7.76 % 5.45 % 8.13 % 9.96 % 8.72 % 9.67 %average equityReturn on 16.82 % 10.32 % 7.34 % 10.85 % 13.31 % 11.57 % 13.01 %averagetangible equityReturn on 1.37 % 0.83 % 0.66 % 1.00 % 1.21 % 0.97 % 1.15 %average assetsInterest margin 3.26 % 3.39 % 4.06 % 4.19 % 4.38 % 3.55 % 4.36 %- Yield - FTEInterest margin 0.23 % 0.28 % 0.54 % 0.62 % 0.71 % 0.34 % 0.71 %- CostNet interest 3.03 % 3.12 % 3.52 % 3.56 % 3.66 % 3.21 % 3.64 %margin - FTEEfficiency 62.19 % 62.13 % 63.50 % 68.08 % 64.98 % 62.59 % 65.82 %ratio (1)Full-time 2,807 2,798 2,761 2,844 2,835 equivalentemployees CREDIT QUALITYRATIOS (2)Net(recoveries) -0.04 % -0.02 % 0.13 % 0.11 % 0.01 % 0.02 % 0.05 %charge-offs /average loansProvision forcredit losses / 0.07 % 0.74 % 0.86 % 0.15 % 0.13 % 0.55 % 0.10 %average loans(3)Nonaccrual LHFI 0.52 % 0.50 % 0.54 % 0.56 % 0.62 %/ (LHFI + LHFS)Nonperforming 0.68 % 0.68 % 0.79 % 0.86 % 0.96 %assets / (LHFI+ LHFS)Nonperformingassets / (LHFI 0.68 % 0.68 % 0.78 % 0.86 % 0.95 %+ LHFS + otherreal estate)ACL LHFI / LHFI 1.24 % 1.23 % 1.05 % 0.90 % 0.90 %(3)ACLLHFI-commercial 1.20 % 1.15 % 0.97 % 0.98 % 0.98 %/ commercialLHFI (3)ACLLHFI-consumer / 1.41 % 1.56 % 1.35 % 0.61 % 0.61 %consumer andhome mortgageLHFI (3)ACL LHFI / 226.55 % 238.40 % 189.77 % 158.34 % 140.99 %nonaccrual LHFI(3)ACL LHFI /nonaccrual LHFI(excl 593.72 % 561.04 % 468.84 % 410.52 % 357.15 %individuallyevaluatedloans) (3) CAPITAL RATIOS(3)Total equity / 10.99 % 10.67 % 11.79 % 12.30 % 12.11 %total assetsTangible equity 8.68 % 8.37 % 9.27 % 9.72 % 9.53 %/ tangibleassetsTangible equity 11.01 % 11.09 % 11.05 % 11.58 % 11.50 %/ risk-weightedassetsTier 1 leverage 9.20 % 9.08 % 10.21 % 10.48 % 10.34 %ratioCommon equity 11.36 % 11.42 % 11.35 % 11.93 % 11.83 %tier 1 capitalratioTier 1 11.86 % 11.94 % 11.88 % 12.48 % 12.38 %risk-basedcapital ratioTotal 12.88 % 13.00 % 12.78 % 13.25 % 13.15 %risk-basedcapital ratio STOCKPERFORMANCEMarket $ 21.41 $ 24.52 $ 23.30 $ 34.51 $ 34.11 value-CloseBook value $ 26.96 $ 26.39 $ 26.06 $ 25.87 $ 25.60

Tangible book $ 20.76 $ 20.18 $ 19.92 $ 19.84 $ 19.57 value(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.See Notes to Consolidated Financials(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. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 1 - Recently Effective Accounting Pronouncements

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 third quarter of 2020, Trustmark recorded a provision for credit losses of $1.8 million and a negative credit loss expense related to off-balance sheet credit exposures of $3.0 million compared to 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 recorded during the second 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.

Note 2 - Paycheck Protection Program

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a 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. If not forgiven, in whole or in part, these loans carry a fixed rate of 1.00% per annum with payments deferred for the first six months of the loan. Originally, the loans carried a term of two years under SBA rules implemented by the CARES Act, but a June 5, 2020 amendment to the CARES Act provided for a five-year minimum loan term for loans made beginning as of such date, and permitted lenders and borrowers to mutually agree to amend existing two-year loans to have terms of five to ten years. 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.

At September 30, 2020, Trustmark had outstanding 9,691 PPP loans totaling $944.3 million (net of $25.7 million of deferred fees and costs) with an average loan size of $100 thousand. Due to amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the SBA; therefore, no ACL was estimated for these loans.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 1 - Recently Effective Accounting Pronouncements

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 third quarter of 2020, Trustmark recorded a provision for credit losses of $1.8 million and a negative credit loss expense related to off-balance sheet credit exposures of $3.0 million compared to 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 recorded during the second 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.

Note 2 - Paycheck Protection Program

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a 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. If not forgiven, in whole or in part, these loans carry a fixed rate of 1.00% per annum with payments deferred for the first six months of the loan. Originally, the loans carried a term of two years under SBA rules implemented by the CARES Act, but a June 5, 2020 amendment to the CARES Act provided for a five-year minimum loan term for loans made beginning as of such date, and permitted lenders and borrowers to mutually agree to amend existing two-year loans to have terms of five to ten years. 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.

At September 30, 2020, Trustmark had outstanding 9,691 PPP loans totaling $944.3 million (net of $25.7 million of deferred fees and costs) with an average loan size of $100 thousand. Due to amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the SBA; therefore, no ACL was estimated for these loans.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 3 - Securities Available for Sale and Held to Maturity

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

9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019SECURITIESAVAILABLE FORSALEU.S. Government $ 19,011 $ 19,898 $ 21,190 $ 22,327 $ 24,697agencyobligationsObligations ofstates and 8,315 11,176 23,572 25,465 35,001politicalsubdivisionsMortgage-backedsecuritiesResidentialmortgagepass-throughsecuritiesGuaranteed by 62,156 69,637 71,971 69,252 63,391GNMAIssued by FNMA 1,279,919 1,121,604 967,329 713,356 589,962and FHLMCOtherresidentialmortgage-backedsecuritiesIssued orguaranteed by 500,858 574,940 634,075 658,226 705,601FNMA, FHLMC, orGNMACommercialmortgage-backedsecuritiesIssued orguaranteed by 52,469 86,898 115,642 113,778 135,053FNMA, FHLMC, orGNMATotalsecurities $ 1,922,728 $ 1,884,153 $ 1,833,779 $ 1,602,404 $ 1,553,705available forsale SECURITIES HELDTO MATURITYU.S. Government $ - $ - $ - $ 3,781 $ 3,770agencyobligationsObligations ofstates and 31,605 31,629 31,758 31,781 31,806politicalsubdivisionsMortgage-backedsecuritiesResidentialmortgagepass-throughsecuritiesGuaranteed by 8,244 10,306 10,492 10,820 10,994GNMAIssued by FNMA 78,213 86,346 91,971 96,631 102,048and FHLMCOtherresidentialmortgage-backedsecuritiesIssued orguaranteed by 399,400 435,333 463,175 485,324 510,770FNMA, FHLMC, orGNMACommercialmortgage-backedsecuritiesIssued orguaranteed by 93,818 96,434 106,880 109,762 126,034FNMA, FHLMC, orGNMATotal $ 611,280 $ 660,048 $ 704,276 $ 738,099 $ 785,422securities heldto maturity At September 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 $9.7 million ($7.3 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 98.4% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody's. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 4 - Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019(1)Loans securedby realestate:Construction,land $ 1,385,947 $ 1,277,277 $ 1,136,389 $ 1,162,791 $ 1,135,999 developmentand other landloansSecured by 1-4family 1,775,400 1,813,525 1,852,065 1,855,913 1,820,455 residentialpropertiesSecured bynonfarm, 2,707,627 2,610,392 2,575,422 2,475,245 2,442,308 nonresidentialpropertiesOther real 887,792 884,815 838,573 724,480 668,667 estate securedCommercial and 1,398,468 1,413,255 1,476,777 1,477,896 1,491,367 industrialloansConsumer loans 160,960 161,620 170,678 175,738 176,894

State andother 935,349 931,536 938,637 967,944 978,456 politicalsubdivisionloansOther loans 596,185 567,386 579,379 495,621 509,522

LHFI 9,847,728 9,659,806 9,567,920 9,335,628 9,223,668

ACL LHFI (122,010 ) (119,188 ) (100,564 ) (84,277 ) (83,226 )

Net LHFI $ 9,725,718 $ 9,540,618 $ 9,467,356 $ 9,251,351 $ 9,140,442

(1)

See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 4 - Loan Composition (continued)

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

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 4 - Loan Composition (continued)

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

September 30, 2020

Mississippi TennesseeLHFI - (Central (Memphis,COMPOSITION BY Total Alabama Florida and TN and Texas REGION Southern Northern Regions) MS Regions)

Loans secured by real estate:

Construction,landdevelopment and $ 1,385,947 $ 417,037 $ 106,909 $ 323,508 $ 25,941 $ 512,552 other landloans

Secured by 1-4family 1,775,400 124,666 38,269 1,524,234 77,201 11,030 residentialproperties

Secured bynonfarm, 2,707,627 679,817 283,629 998,294 183,620 562,267 nonresidentialproperties

Other real 887,792 253,180 6,133 409,377 6,095 213,007 estate secured

Commercial andindustrial 1,398,468 183,024 23,617 717,164 302,111 172,552 loans

Consumer loans 160,960 24,262 6,481 108,193 18,789 3,235

State and otherpolitical 935,349 86,610 37,106 623,607 37,366 150,660 subdivisionloans

Other loans 596,185 83,526 14,878 389,907 80,180 27,694

Loans $ 9,847,728 $ 1,852,122 $ 517,022 $ 5,094,284 $ 731,303 $ 1,652,997



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

Lots $ 77,787 $ 17,880 $ 23,659 $ 29,991 $ 1,246 $ 5,011

Development 72,903 24,010 6,155 30,424 5,264 7,050

Unimproved land 102,092 25,890 20,007 25,866 11,084 19,245

1-4 family 241,737 111,104 21,856 70,073 7,560 31,144 construction

Other 891,428 238,153 35,232 167,154 787 450,102 construction

Construction,landdevelopment and $ 1,385,947 $ 417,037 $ 106,909 $ 323,508 $ 25,941 $ 512,552 other landloans



LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION

Non-owner occupied:

Retail $ 415,168 $ 142,452 $ 38,484 $ 133,673 $ 26,868 $ 73,691

Office 257,143 66,829 27,215 83,379 12,230 67,490

Hotel/motel 343,854 137,960 101,206 53,507 40,181 11,000

Mini-storage 120,173 20,676 3,572 56,772 405 38,748

Industrial 216,231 57,102 12,327 41,895 1,124 103,783

Health care 45,835 12,865 11,729 18,634 395 2,212

Convenience 16,214 3,366 - 3,223 392 9,233 stores

Nursing homes/ 65,903 28,197 - 12,051 7,084 18,571 senior living

Other 61,932 4,608 7,167 17,054 6,120 26,983

Total non-owner 1,542,453 474,055 201,700 420,188 94,799 351,711 occupied loans



Owner-occupied:

Office 180,968 43,521 41,440 52,219 9,359 34,429

Churches 106,979 22,981 7,213 52,590 10,501 13,694

Industrial 165,356 13,234 2,869 50,088 16,784 82,381 warehouses

Health care 127,692 17,162 4,975 101,319 2,462 1,774

Convenience 120,909 15,874 7,899 70,654 580 25,902 stores

Retail 69,764 15,119 6,655 26,636 6,275 15,079

Restaurants 59,955 4,088 4,492 34,295 15,658 1,422

Auto 46,629 7,664 284 12,278 26,403 - dealerships

Nursing homes/ 181,803 61,368 - 120,435 - - senior living

Other 105,119 4,751 6,102 57,592 799 35,875

Totalowner-occupied 1,165,174 205,762 81,929 578,106 88,821 210,556 loans

Loans securedby nonfarm, $ 2,707,627 $ 679,817 $ 283,629 $ 998,294 $ 183,620 $ 562,267 nonresidentialproperties

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

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

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

Quarter Ended Nine Months Ended 9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 9/30/ 9/30/ 2020 2020 2020 2019 2019 2020 2019Securities - taxable 2.02 % 2.16 % 2.25 % 2.24 % 2.23 % 2.14 % 2.25 %

Securities - 3.80 % 3.58 % 3.85 % 3.92 % 3.76 % 3.76 % 3.78 %nontaxableSecurities - total 2.05 % 2.18 % 2.28 % 2.27 % 2.26 % 2.17 % 2.28 %

PPP loans 2.84 % 2.65 % - - - 2.76 % -

Loans - LHFI & LHFS 3.81 % 4.03 % 4.54 % 4.67 % 4.90 % 4.12 % 4.93 %

Acquired loans - - - 10.90 % 11.08 % - 9.00 %

Loans - total 3.73 % 3.93 % 4.54 % 4.72 % 4.95 % 4.05 % 4.97 %

Fed funds sold & 1.32 % - - 2.16 % 2.49 % 0.69 % 2.52 %reverse repurchasesOther earning assets 0.18 % 0.11 % 1.59 % 1.57 % 2.35 % 0.30 % 2.44 %

Total earning assets 3.26 % 3.39 % 4.06 % 4.19 % 4.38 % 3.55 % 4.36 %

Interest-bearing 0.31 % 0.37 % 0.71 % 0.85 % 0.96 % 0.45 % 0.96 %depositsFed funds purchased & 0.15 % 0.16 % 1.02 % 1.21 % 1.53 % 0.64 % 1.32 %repurchasesOther borrowings 1.19 % 2.09 % 2.35 % 2.32 % 2.35 % 1.78 % 2.29 %

Total 0.33 % 0.39 % 0.75 % 0.88 % 0.99 % 0.48 % 0.99 %interest-bearingliabilities Net interest margin 3.03 % 3.12 % 3.52 % 3.56 % 3.66 % 3.21 % 3.64 %

Net interest margin 3.05 % 3.14 % 3.52 % 3.52 % 3.61 % 3.23 % 3.60 %excluding PPP andacquired loans 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 3.05% for the third quarter of 2020, a decrease of 9 basis points when compared to the second quarter of 2020. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Note 6 - Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net positive ineffectiveness of $815 thousand during the third quarter of 2020.

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

Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019Mortgage $ 5,742 $ 5,893 $ 5,819 $ 5,854 $ 5,688 $ 17,454 $ 17,029 servicingincome, netChange in fair (4,590 ) (4,214 ) (2,607 ) (2,950 ) (3,569 ) (11,411 ) (8,885 )value-MSR fromrunoffGain on sales 34,472 34,078 14,339 7,984 9,799 82,889 22,312 of loans, netMortgagebanking income 35,624 35,757 17,551 10,888 11,918 88,932 30,456 before hedgeineffectivenessChange in fair 60 (3,159 ) (23,999 ) 4,048 (8,054 ) (27,098 ) (25,126 )value-MSR frommarket changesChange in fair 755 1,147 33,931 (7,022 ) 4,307 35,833 16,578 value ofderivativesNet positive(negative) 815 (2,012 ) 9,932 (2,974 ) (3,747 ) 8,735 (8,548 )hedgeineffectivenessMortgage $ 36,439 $ 33,745 $ 27,483 $ 7,914 $ 8,171 $ 97,667 $ 21,908 banking, netTRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 7 - Salaries and Employee Benefit Plans

Early Retirement Program

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.

Note 8 - Other Noninterest Income and Expense

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

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 7 - Salaries and Employee Benefit Plans

Early Retirement Program

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.

Note 8 - Other Noninterest Income and Expense

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

Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019Partnershipamortization $ (1,457 ) $ (1,205 ) $ (1,161 ) $ (1,630 ) $ (1,994 ) $ (3,823 ) $ (6,014 )for taxcreditpurposesIncrease inlifeinsurance 1,755 1,696 1,722 1,802 1,814 5,173 5,400 cashsurrendervalueOther 1,303 1,722 1,746 3,279 2,169 4,771 6,972 miscellaneousincomeTotal other, $ 1,601 $ 2,213 $ 2,307 $ 3,451 $ 1,989 $ 6,121 $ 6,358 net Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

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

Quarter Ended Nine Months Ended 9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 9/30/ 9/30/ 2020 2020 2020 2019 2019 2020 2019Loan expense $ 3,485 $ 2,954 $ 2,799 $ 2,968 $ 2,886 $ 9,238 $ 8,586

Amortization 752 736 812 1,002 1,021 2,300 3,114ofintangiblesFDIC 1,410 1,590 1,590 1,450 1,400 4,590 4,994assessmentexpenseOther 8,951 7,985 9,552 8,956 6,880 26,488 23,112miscellaneousexpenseTotal other $ 14,598 $ 13,265 $ 14,753 $ 14,376 $ 12,187 $ 42,616 $ 39,806expense Note 9 - Non-GAAP Financial Measures

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

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands except per share data)

(unaudited)

Note 9 - Non-GAAP Financial Measures (continued)

Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019TANGIBLEEQUITYAVERAGEBALANCESTotal $ 1,694,903 $ 1,665,716 $ 1,640,070 $ 1,656,605 $ 1,634,646 $ 1,666,999 $ 1,610,356 shareholders'equityLess: (385,270 ) (383,081 ) (380,671 ) (379,627 ) (379,627 ) (383,016 ) (379,627 )GoodwillIdentifiable (8,550 ) (7,834 ) (8,049 ) (7,882 ) (8,706 ) (8,146 ) (9,660 )intangibleassetsTotal average $ 1,301,083 $ 1,274,801 $ 1,251,350 $ 1,269,096 $ 1,246,313 $ 1,275,837 $ 1,221,069 tangibleequity PERIOD ENDBALANCESTotal $ 1,710,041 $ 1,673,944 $ 1,652,399 $ 1,660,702 $ 1,645,362 shareholders'equityLess: (385,270 ) (385,270 ) (381,717 ) (379,627 ) (379,627 )GoodwillIdentifiable (8,142 ) (8,895 ) (7,537 ) (7,343 ) (8,345 )intangibleassetsTotal $ 1,316,629 $ 1,279,779 $ 1,263,145 $ 1,273,732 $ 1,257,390 tangible (a)equity TANGIBLEASSETSTotal assets $ 15,558,162 $ 15,692,079 $ 14,019,829 $ 13,497,877 $ 13,584,786

Less: (385,270 ) (385,270 ) (381,717 ) (379,627 ) (379,627 )GoodwillIdentifiable (8,142 ) (8,895 ) (7,537 ) (7,343 ) (8,345 )intangibleassetsTotal $ 15,164,750 $ 15,297,914 $ 13,630,575 $ 13,110,907 $ 13,196,814 tangible (b)assetsRisk-weighted (c) $ 11,963,269 $ 11,539,157 $ 11,427,297 $ 11,002,877 $ 10,935,018 assets NET INCOME ADJUSTEDFOR INTANGIBLEAMORTIZATIONNet income $ 54,440 $ 32,150 $ 22,218 $ 33,946 $ 41,035 $ 108,808 $ 116,514

Plus:Intangible 564 552 609 752 766 1,725 2,336 amortizationnet of taxNet incomeadjusted for $ 55,004 $ 32,702 $ 22,827 $ 34,698 $ 41,801 $ 110,533 $ 118,850 intangibleamortizationPeriod end 63,423,820 63,422,439 63,396,912 64,200,111 64,262,779 common shares (d)outstanding TANGIBLECOMMON EQUITYMEASUREMENTSReturn onaverage 16.82 % 10.32 % 7.34 % 10.85 % 13.31 % 11.57 % 13.01 %tangibleequity (1)Tangibleequity/ (a)/ 8.68 % 8.37 % 9.27 % 9.72 % 9.53 %tangible (b)assetsTangibleequity/ (a)/ 11.01 % 11.09 % 11.05 % 11.58 % 11.50 %risk-weighted (c)assetsTangible book (a)/ $ 20.76 $ 20.18 $ 19.92 $ 19.84 $ 19.57 value (d) *1,000 COMMON EQUITY TIER 1CAPITAL (CET1)Total $ 1,710,041 $ 1,673,944 $ 1,652,399 $ 1,660,702 $ 1,645,362 shareholders'equityCECLtransition 32,647 32,693 26,476 - - adjustment(3)AOCI-related (5,684 ) (10,565 ) (7,698 ) 23,600 20,858 adjustmentsCET1adjustmentsanddeductions:Goodwill netof associated (371,345 ) (371,342 ) (367,825 ) (365,738 ) (365,741 )deferred taxliabilities(DTLs)Otheradjustments (6,770 ) (7,352 ) (6,269 ) (5,896 ) (6,671 )anddeductionsfor CET1 (2)CET1 capital (e) 1,358,889 1,317,378 1,297,083 1,312,668 1,293,808

Additionaltier 1capital 60,000 60,000 60,000 60,000 60,000 instrumentsplus relatedsurplusTier 1 $ 1,418,889 $ 1,377,378 $ 1,357,083 $ 1,372,668 $ 1,353,808 capital Common equity (e)/ 11.36 % 11.42 % 11.35 % 11.93 % 11.83 %tier 1 (c)capital ratio(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.(3)

See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.(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.(3) See Note 1 - Recently Effective Accounting Pronouncements in the Notes to Consolidated Financials for additional details.TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands except per share data)

(unaudited)

Note 9 - Non-GAAP Financial Measures (continued)

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

The following table presents pre-tax pre-provision income during the periods presented:

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands except per share data)

(unaudited)

Note 9 - Non-GAAP Financial Measures (continued)

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

The following table presents pre-tax pre-provision income during the periods presented:

Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/ 9/30/2019 9/30/2020 9/30/2019 2019 Net interest $ 106,207 $ 105,000 $ 103,952 $ 105,591 $ 108,466 $ 315,159 $ 320,998income (GAAP)Noninterest 73,701 69,511 65,264 47,578 48,337 208,476 139,467income (GAAP)Pre-tax $ 179,908 $ 174,511 $ 169,216 $ 153,169 $ 156,803 $ 523,635 $ 460,465pre-provision (a)revenue Noninterest $ 113,959 $ 118,659 $ 123,810 $ 110,027 $ 106,853 $ 356,428 $ 318,975expense (GAAP) VoluntaryLess: early - - (4,375 ) - - (4,375 ) - retirement program Credit loss expense related 3,004 (6,242 ) (6,783 ) - - (10,021 ) - to off-balance sheet credit exposuresAdjustednoninterest (b) $ 116,963 $ 112,417 $ 112,652 $ 110,027 $ 106,853 $ 342,032 $ 318,975expense(Non-GAAP) Pre-tax (a) $ 62,945 $ 62,094 $ 56,564 $ 43,142 $ 49,950 $ 181,603 $ 141,490pre-provision -income (Non-GAAP) (b) 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 Nine Months Ended 9/30/2020 9/30/2019 9/30/2020 9/30/2019 Amount Diluted Amount Diluted Amount Diluted Amount Diluted EPS EPS EPS EPS Net Income $ 54,440 $ 0.86 $ 41,035 $ 0.64 $ $ 1.71 $ $ 1.80(GAAP) 108,808 116,514

Significantnon-routinetransactions(net oftaxes): Voluntaryearly - - - - 3,281 0.05 - -retirementprogramNet Incomeadjusted forsignificantnon-routine $ 54,440 $ 0.86 $ 41,035 $ 0.64 $ $ 1.76 $ $ 1.80transactions 112,089 116,514(Non-GAAP) Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP)Return on 12.78% n/a 9.96% n/a 8.72% 8.97% 9.67% n/aaverageequityReturn onaverage 16.82% n/a 13.31% n/a 11.57% 11.89% 13.01% n/atangibleequityReturn on 1.37% n/a 1.21% n/a 0.97% 1.00% 1.15% n/aaverageassets n/a - notapplicableTRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 9 - Non-GAAP Financial Measures (continued)

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

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

September 30, 2020

($ in thousands)

(unaudited)

Note 9 - Non-GAAP Financial Measures (continued)

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

Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Total noninterest $ 113,959 $ 118,659 $ 123,810 $ 110,027 $ 106,853 $ 356,428 $ 318,975 expense (GAAP) Other real (1,203 ) (271 ) (1,294 ) (1,491 ) (531 ) (2,768 ) (2,415 )Less: estate expense, net Amortization of (752 ) (736 ) (812 ) (1,002 ) (1,021 ) (2,300 ) (3,114 ) intangibles Voluntary early - - (4,375 ) - - (4,375 ) - retirement program Credit loss expense related 3,004 (6,242 ) (6,783 ) - - (10,021 ) - to off-balance sheet exposures Charitable contributions (375 ) (375 ) (375 ) - - (1,125 ) - resulting in state tax creditsAdjustednoninterest (c) $ 114,633 $ 111,035 $ 110,171 $ 107,534 $ 105,301 $ 335,839 $ 313,446 expense(Non-GAAP) Net interest $ 106,207 $ 105,000 $ 103,952 $ 105,591 $ 108,466 $ 315,159 $ 320,998 income (GAAP) Tax 2,969 3,007 3,108 3,149 3,249 9,084 9,728 Add: equivalent adjustmentNet interest $ 109,176 $ 108,007 $ 107,060 $ 108,740 $ 111,715 $ 324,243 $ 330,726 income-FTE (a)(Non-GAAP) Noninterest $ 73,701 $ 69,511 $ 65,264 $ 47,578 $ 48,337 $ 208,476 $ 139,467 income (GAAP) PartnershipAdd: amortization for 1,457 1,205 1,161 1,630 1,994 3,823 6,014 tax credit purposesAdjusted $ 75,158 $ 70,716 $ 66,425 $ 49,208 $ 50,331 $ 212,299 $ 145,481 noninterest (b)income (Non-GAAP) Adjusted revenue (a)+ $ 184,334 $ 178,723 $ 173,485 $ 157,948 $ 162,046 $ 536,542 $ 476,207 (Non-GAAP) (b) (c)/Efficiency ratio ((a) 62.19 % 62.13 % 63.50 % 68.08 % 64.98 % 62.59 % 65.82 %(Non-GAAP) + (b)) View source version on businesswire.com: https://www.businesswire.com/news/home/20201027006161/en/

CONTACT: Trustmark Investor Contacts: Louis E. Greer Treasurer and Principal Financial Officer 601-208-2310 F. Joseph Rein, Jr. Senior Vice President 601-208-6898 Trustmark Media Contact: Melanie A. Morgan Senior Vice President 601-208-2979