Business Wire | Jan 26, 2021 04:31PM EST

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2020 Financial Results

Jan. 26, 2021

JACKSON, Miss.--(BUSINESS WIRE)--Jan. 26, 2021--Trustmark Corporation (NASDAQ:TRMK) reported net income of $51.2 million in the fourth quarter of 2020, representing diluted earnings per share of $0.81. Net income in the fourth quarter produced a return on average tangible equity of 15.47% and a return on average assets of 1.28%. For the full year, Trustmark's net income totaled a record level of $160.0 million, representing diluted earnings per share of $2.51. Diluted earnings per share in 2020 increased 8.2% when compared to the prior year. Trustmark's net income in 2020 produced a return on average tangible equity of 12.58% and a return on average assets of 1.05%.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210126006001/en/

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/52367350/en

Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2021, to shareholders of record on March 1, 2021.

Gerard R. Host, Executive Chairman, stated, "This past year has been extremely challenging for everyone. The effects of COVID-19 have significantly impacted the ways in which we live, work and interact with one another. We extend our deepest sympathies to all who lost loved ones and all who have been impacted by this pandemic. We also extend our sincere appreciation and gratitude to healthcare professionals for their tireless and self-sacrificing work during this pandemic. Also, we want to thank our associates for their countless efforts to serve our customers and support our communities and businesses. Trustmark remains committed to providing solutions to meet customer's unique needs during these unprecedented times."

2020 Highlights

* Supported local communities with loan originations totaling $970 million through the SBA's Paycheck Protection Program (PPP) * Loans held for investment increased $488.9 million, or 5.2% * Nonperforming assets declined 9.3%, net charge-offs represented 0.02% of average loans * Total deposits increased $2.8 billion, or 24.9% * Record mortgage loan production of $3.0 billion produced noninterest income of $125.8 million * Total revenue expanded 14.3% to $701.1 million * Noninterest income totaled $274.6 million, an increase of 46.8% * Maintained strong capital position with CET1 ratio of 11.62% and total risk-based capital ratio of 14.12%

Duane A. Dewey, President and CEO, commented, "Our financial results demonstrate the value of Trustmark's diversified financial services businesses. Despite a challenging environment, our banking, insurance and wealth management businesses all performed well while our mortgage banking business achieved record results. We experienced significant loan and deposit growth, and credit quality remained extremely strong as did capital ratios. Trustmark continues to be well-positioned to serve and expand its customer base and create long-term value for its shareholders."

Balance Sheet Management

* Loans held for investment decreased $23.2 million, or 0.2%, during the quarter * Total deposits increased $826.4 million, or 6.2%, during the quarter * Enhanced capital base with issuance of $125 million of subordinated debt

Loans held for investment totaled $9.8 billion at December 31, 2020, reflecting an increase of 5.2% from the prior year. At December 31, 2020, Trustmark's gross PPP loans totaled $623.0 million. Net of deferred fees and costs of $12.9 million, PPP loans totaled $610.1 million. Collectively, loans held for investment and PPP loans totaled $10.4 billion at year end 2020, an increase of $1.1 billion, or 11.8% from the prior year.

Deposits totaled $14.0 billion at December 31, 2020, up $826.4 million, or 6.2%, from the prior quarter and $2.8 billion, or 24.9%, year-over-year primarily reflecting the impact of additional customer liquidity. Noninterest bearing deposits represented 31.0% of total deposits at December 31, 2020. Interest-bearing deposit costs totaled 0.27% for the fourth quarter, a decrease of 4 basis points linked-quarter. The total cost of interest-bearing liabilities was 0.30% for the fourth quarter of 2020, a decrease of 3 basis points from the prior quarter.

Trustmark's capital position remained solid, reflecting the strength and diversity of its financial services businesses. During the fourth quarter of 2020, Trustmark Corporation issued $125 million of 3.625% fixed-to-floating rate subordinated notes due in 2030 for general corporate purposes, further strengthening its regulatory capital position. At December 31, 2020, Trustmark's tangible equity to tangible assets ratio was 8.34%, while the total risk-based capital ratio increased to 14.12%.

As previously announced, Trustmark's Board of Directors authorized a stock repurchase program effective April 1, 2020, under which $100 million of Trustmark's outstanding shares may be acquired through December 31, 2021. While Trustmark suspended its share repurchase program during the first quarter of 2020 to preserve capital given the economic uncertainty associated with the COVID-19 pandemic, Trustmark expects to resume the repurchase of its shares from time to time at prevailing market prices, through open market or private transactions, depending on market conditions, and in conjunction with its disciplined share repurchase framework. There is no guarantee as to the number of shares that may be repurchased by Trustmark, and Trustmark may discontinue purchases at any time at management's discretion.

Credit Quality

* Allowance for credit losses represented 1.19% of loans held for investment and 572.69% of nonperforming loans, excluding individually evaluated loans at year-end * Net charge-offs totaled $291 thousand, or 0.01% of average loans, in the fourth quarter * Loans remaining under a COVID-19 related concession represented approximately 35 basis points of loans held for investment at December 31, 2020

Nonperforming loans totaled $63.1 million at December 31, 2020, an increase of $9.3 million from the prior quarter and $9.9 million year-over-year. Other real estate totaled $11.7 million, reflecting a $4.6 million decrease from the prior quarter and a $17.6 million decline from the prior year. Collectively, nonperforming assets totaled $74.8 million, reflecting a linked-quarter increase of 6.7% and year-over-year reduction of 9.3%.

Allocation of Trustmark's $117.3 million allowance for credit losses on loans held for investment represented 1.20% of commercial loans and 1.16% of consumer and home mortgage loans, resulting in an allowance for credit losses to total loans held for investment of 1.19% at December 31, 2020, representing a level management considers commensurate with the present risk in the loan portfolio.

Revenue Generation

* Mortgage banking revenue totaled $28.2 million and represented 15.9% of total revenue in the fourth quarter * Noninterest income totaled $66.1 million and represented 37.3% of total revenue in fourth quarter * The net interest margin (FTE) totaled 3.15% in fourth quarter; excluding interest and fees on PPP loans, net interest margin (FTE) was 2.91%

Revenue in the fourth quarter totaled $177.5 million, a decrease of 1.3% from the prior quarter and an increase of 15.9% from the same quarter in the prior year. The linked-quarter decline reflects higher net interest income, which was more than offset by reduced mortgage banking revenue. In 2020, revenue totaled $701.1 million, an increase of 14.3% from the prior year. Excluding interest and fees on PPP loans, revenue totaled $674.5 million in 2020, an increase of $60.9 million, or 9.9%, from the prior year principally due to growth in mortgage banking revenue.

Net interest income (FTE) in the fourth quarter totaled $114.3 million, resulting in a net interest margin of 3.15%. Relative to the prior quarter, net interest income (FTE) increased $5.1 million reflecting an increase of $4.5 million in interest income as well as a $611 thousand reduction in interest expense. Excluding interest and fees on PPP loans, net interest income (FTE) totaled $99.4 million, resulting in a net interest margin of 2.91%, a linked-quarter decline of 14 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.

Noninterest income in the fourth quarter totaled $66.1 million, a decrease of $7.6 million from the prior quarter and an increase of $18.5 million from the prior year. The linked-quarter change reflects increases in service charges on deposit accounts and bank card and other fees, which were more than offset by a decline in mortgage banking revenue and a seasonal decline in insurance revenue. The increase in noninterest income year-over-year is principally due to increased mortgage banking revenue.

Mortgage loan production in the fourth quarter totaled $788.4 million, a seasonal decline of 11.0% from the prior quarter and a 58.1% increase year-over-year. Mortgage banking revenue before hedge ineffectiveness totaled $29.1 million in the fourth quarter, a decline of $6.6 million from the prior quarter primarily due to lower gains on sale of loans in the secondary market. In 2020, mortgage loan production totaled a record $2.98 billion, up 69.4% from the prior year. Mortgage banking revenue totaled $125.8 million in 2020, an increase of $96.0 million from the prior year.

Insurance revenue in the fourth quarter totaled $10.2 million, a seasonal decline of $1.4 million from the prior quarter and an increase of $832 thousand from the prior year. Insurance revenue in 2020 totaled $45.2 million, up $2.8 million, or 6.6%, from the prior year. The solid performance during the year reflects an expanded producer workforce as well as the realization of operational efficiencies from investments in technology and improved processes.

Wealth management revenue totaled $7.8 million in the fourth quarter, up 2.1% from the prior quarter and 1.0% from the prior year. In 2020, wealth management revenue totaled $31.6 million, an increase of 3.1% from the prior year. During 2020, Trustmark continued to enhance its competitive positioning and efficiency of its wealth management businesses as well as expand its Private Banking capabilities in key markets.

Noninterest Expense

* Adjusted non-interest expense, which excludes amortization of intangibles, ORE expenses, and credit losses for off-balance sheet credit exposures, increased $4.9 million, or 4.3%, from the prior quarter. Please refer to the Consolidated Financial Information, Footnote 10 - Non-GAAP Financial Measures. * Efficiency ratio improved to 63.35% in 2020, a decline of 303 basis points from the prior year

Adjusted noninterest expense in the fourth quarter was $119.6 million, up $4.9 million, or 4.3%, from the prior quarter. Salaries and employee benefits increased $2.3 million linked-quarter principally due to increases for performance-based incentives. Total services and fees increased $1.3 million during the fourth quarter due to continued investments in technology and higher professional fees. Other expense increased $1.2 million from the prior quarter principally due to increased operational losses and other expenses.

Credit loss expense related to off-balance sheet credit exposures was a negative $1.1 million in the fourth quarter, reflecting the improvement of the macroeconomic factors used to determine the necessary reserves for off-balance sheet credit exposures. Other real estate expense was a negative $812 thousand for the fourth quarter, a decrease of approximately $2.0 million from the prior quarter, which is attributed to lower write-downs of ORE of $716 thousand and a net gain on the sale of ORE property of $1.3 million.

During 2020, Trustmark consolidated six offices and expanded deployment of interactive teller machines. In January 2021, Trustmark opened a new office featuring a design that integrates myTeller interactive teller machine technology as well as provides enhanced areas for customer engagement. With the opening of this office, two other offices were closed.

"Looking forward, Trustmark will focus upon efficiency, growth and innovation opportunities while building upon its solid risk management processes, corporate culture and core values. We will continue to optimize delivery channels to reflect changing customer preferences and introduce technology to enhance growth and efficiency opportunities. We will provide the services and advice our customers have come to expect while building term value for our shareholders," said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 27, 2021 at 8:30 a.m. Central Time to discuss the Corporation's financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 10, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10151113.

Trustmark is a financial services company providing banking and financial solutions through 183 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

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

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve 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, 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 SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Linked Quarter Year over Year

QUARTERLY AVERAGE 12/31/2020 9/30/2020 12/31/2019 $ Change % Change $ Change % ChangeBALANCES

Securities $ 1,902,162 $ 1,857,050 $ 1,551,358 $ 45,112 2.4 % $ 350,804 22.6 %AFS-taxable

Securities 5,206 5,973 23,300 (767 ) -12.8 % (18,094 ) -77.7 %AFS-nontaxable

Securities 550,563 608,585 734,474 (58,022 ) -9.5 % (183,911 ) -25.0 %HTM-taxable

Securities 24,752 25,508 25,703 (756 ) -3.0 % (951 ) -3.7 %HTM-nontaxable

Total securities 2,482,683 2,497,116 2,334,835 (14,433 ) -0.6 % 147,848 6.3 %

Paycheck protection 875,098 941,456 - (66,358 ) -7.0 % 875,098 n/m program loans (PPP)

Loans (includesloans held for 10,231,671 10,162,379 9,467,437 69,292 0.7 % 764,234 8.1 %sale) (1)

Acquired loans (1) - - 77,797 - n/m (77,797 ) -100.0 %

Fed funds sold and 303 301 184 2 0.7 % 119 64.7 %reverse repurchases

Other earning 860,540 722,917 227,116 137,623 19.0 % 633,424 n/m assets

Total earning 14,450,295 14,324,169 12,107,369 126,126 0.9 % 2,342,926 19.4 %assets

Allowance forcredit losses(ACL), loans held (124,088 ) (121,842 ) (86,211 ) (2,246 ) -1.8 % (37,877 ) -43.9 %

for investment(LHFI) (1)

Other assets 1,620,694 1,564,825 1,445,075 55,869 3.6 % 175,619 12.2 %

Total assets $ 15,946,901 $ 15,767,152 $ 13,466,233 $ 179,749 1.1 % $ 2,480,668 18.4 %



Interest-bearing $ 3,649,590 $ 3,669,249 $ 3,167,256 $ (19,659 ) -0.5 % $ 482,334 15.2 %demand deposits

Savings deposits 4,350,783 4,416,046 3,448,899 (65,263 ) -1.5 % 901,884 26.1 %

Time deposits 1,436,677 1,507,348 1,663,741 (70,671 ) -4.7 % (227,064 ) -13.6 %

Totalinterest-bearing 9,437,050 9,592,643 8,279,896 (155,593 ) -1.6 % 1,157,154 14.0 %deposits

Fed funds purchased 170,474 84,077 164,754 86,397 n/m 5,720 3.5 %and repurchases

Other borrowings 173,525 167,262 79,512 6,263 3.7 % 94,013 n/m

Subordinated notes 42,828 - - 42,828 n/m 42,828 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securities

Totalinterest-bearing 9,885,733 9,905,838 8,586,018 (20,105 ) -0.2 % 1,299,715 15.1 %liabilities

Noninterest-bearing 4,100,849 3,921,867 3,017,824 178,982 4.6 % 1,083,025 35.9 %deposits

Other liabilities 235,284 244,544 205,786 (9,260 ) -3.8 % 29,498 14.3 %

Total liabilities 14,221,866 14,072,249 11,809,628 149,617 1.1 % 2,412,238 20.4 %

Shareholders' 1,725,035 1,694,903 1,656,605 30,132 1.8 % 68,430 4.1 %equity

Total liabilities $ 15,946,901 $ 15,767,152 $ 13,466,233 $ 179,749 1.1 % $ 2,480,668 18.4 %and equity



(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.



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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Linked Quarter

Year over Year

PERIOD END BALANCES

12/31/2020

9/30/2020

12/31/2019

$ Change

% Change

$ Change

% Change

Cash and due from banks

$

1,952,504

$

564,588

$

358,916

$

1,387,916

n/m

$

1,593,588

n/m

Fed funds sold and reverse repurchases

50

50

-

-

0.0

%

50

n/m

Securities available for sale

1,991,815

1,922,728

1,602,404

69,087

3.6

%

389,411

24.3

%

Securities held to maturity

538,072

611,280

738,099

(73,208

)

-12.0

%

(200,027

)

-27.1

%

PPP loans

610,134

944,270

-

(334,136

)

-35.4

%

610,134

n/m

Loans held for sale (LHFS)

446,951

485,103

226,347

(38,152

)

-7.9

%

220,604

97.5

%

Loans held for investment (LHFI) (1)

9,824,524

9,847,728

9,335,628

(23,204

)

-0.2

%

488,896

5.2

%

ACL LHFI (1)

(117,306

)

(122,010

)

(84,277

)

4,704

3.9

%

(33,029

)

-39.2

%

Net LHFI

9,707,218

9,725,718

9,251,351

(18,500

)

-0.2

%

455,867

4.9

%

Acquired loans (1)

-

-

72,601

-

n/m

(72,601

)

-100.0

%

Allowance for loan losses, acquired loans (1)

-

-

(815

)

-

n/m

815

-100.0

%

Net acquired loans

-

-

71,786

-

n/m

(71,786

)

-100.0

%

Net LHFI and acquired loans

9,707,218

9,725,718

9,323,137

(18,500

)

-0.2

%

384,081

4.1

%

Premises and equipment, net

194,278

192,722

189,791

1,556

0.8

%

4,487

2.4

%

Mortgage servicing rights

66,464

61,613

79,394

4,851

7.9

%

(12,930

)

-16.3

%

Goodwill

385,270

385,270

379,627

-

0.0

%

5,643

1.5

%

Identifiable intangible assets

7,390

8,142

7,343

(752

)

-9.2

%

47

0.6

%

Other real estate

11,651

16,248

29,248

(4,597

)

-28.3

%

(17,597

)

-60.2

%

Operating lease right-of-use assets

30,901

30,508

31,182

393

1.3

%

(281

)

-0.9

%

Other assets

609,142

609,922

532,389

(780

)

-0.1

%

76,753

14.4

%

Total assets

$

16,551,840

$

15,558,162

$

13,497,877

$

993,678

6.4

%

$

3,053,963

22.6

%

Deposits:

Noninterest-bearing

$

4,349,010

$

3,964,023

$

2,891,215

$

384,987

9.7

%

$

1,457,795

50.4

%

Interest-bearing

9,699,754

9,258,390

8,354,342

441,364

4.8

%

1,345,412

16.1

%

Total deposits

14,048,764

13,222,413

11,245,557

826,351

6.2

%

2,803,207

24.9

%

Fed funds purchased and repurchases

164,519

153,834

256,020

10,685

6.9

%

(91,501

)

-35.7

%

Other borrowings

168,252

178,599

85,396

(10,347

)

-5.8

%

82,856

97.0

%

Subordinated notes

122,921

-

-

122,921

n/m

122,921

n/m

Junior subordinated debt securities

61,856

61,856

61,856

-

0.0

%

-

0.0

%

ACL on off-balance sheet credit exposures (1)

38,572

39,659

-

(1,087

)

-2.7

%

38,572

n/m

Operating lease liabilities

32,290

31,838

32,354

452

1.4

%

(64

)

-0.2

%

Other liabilities

173,549

159,922

155,992

13,627

8.5

%

17,557

11.3

%

Total liabilities

14,810,723

13,848,121

11,837,175

962,602

7.0

%

2,973,548

25.1

%

Common stock

13,215

13,215

13,376

-

0.0

%

(161

)

-1.2

%

Capital surplus

233,120

231,836

256,400

1,284

0.6

%

(23,280

)

-9.1

%

Retained earnings

1,495,833

1,459,306

1,414,526

36,527

2.5

%

81,307

5.7

%

Accum other comprehensive income (loss),

net of tax

(1,051

)

5,684

(23,600

)

(6,735

)

n/m

22,549

95.5

%

Total shareholders' equity

1,741,117

1,710,041

1,660,702

31,076

1.8

%

80,415

4.8

%

Total liabilities and equity

$

16,551,840

$

15,558,162

$

13,497,877

$

993,678

6.4

%

$

3,053,963

22.6

%

(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 Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Linked Quarter Year over Year

PERIOD END BALANCES 12/31/2020 9/30/2020 12/31/2019 $ Change % Change $ Change % Change

Cash and due from $ 1,952,504 $ 564,588 $ 358,916 $ 1,387,916 n/m $ 1,593,588 n/m banks

Fed funds sold and 50 50 - - 0.0 % 50 n/m reverse repurchases

Securities 1,991,815 1,922,728 1,602,404 69,087 3.6 % 389,411 24.3 %available for sale

Securities held to 538,072 611,280 738,099 (73,208 ) -12.0 % (200,027 ) -27.1 %maturity

PPP loans 610,134 944,270 - (334,136 ) -35.4 % 610,134 n/m

Loans held for sale 446,951 485,103 226,347 (38,152 ) -7.9 % 220,604 97.5 %(LHFS)

Loans held forinvestment (LHFI) 9,824,524 9,847,728 9,335,628 (23,204 ) -0.2 % 488,896 5.2 %(1)

ACL LHFI (1) (117,306 ) (122,010 ) (84,277 ) 4,704 3.9 % (33,029 ) -39.2 %

Net LHFI 9,707,218 9,725,718 9,251,351 (18,500 ) -0.2 % 455,867 4.9 %

Acquired loans (1) - - 72,601 - n/m (72,601 ) -100.0 %

Allowance for loanlosses, acquired - - (815 ) - n/m 815 -100.0 %loans (1)

Net acquired loans - - 71,786 - n/m (71,786 ) -100.0 %

Net LHFI and 9,707,218 9,725,718 9,323,137 (18,500 ) -0.2 % 384,081 4.1 %acquired loans

Premises and 194,278 192,722 189,791 1,556 0.8 % 4,487 2.4 %equipment, net

Mortgage servicing 66,464 61,613 79,394 4,851 7.9 % (12,930 ) -16.3 %rights

Goodwill 385,270 385,270 379,627 - 0.0 % 5,643 1.5 %

Identifiable 7,390 8,142 7,343 (752 ) -9.2 % 47 0.6 %intangible assets

Other real estate 11,651 16,248 29,248 (4,597 ) -28.3 % (17,597 ) -60.2 %

Operating lease 30,901 30,508 31,182 393 1.3 % (281 ) -0.9 %right-of-use assets

Other assets 609,142 609,922 532,389 (780 ) -0.1 % 76,753 14.4 %

Total assets $ 16,551,840 $ 15,558,162 $ 13,497,877 $ 993,678 6.4 % $ 3,053,963 22.6 %



Deposits:

Noninterest-bearing $ 4,349,010 $ 3,964,023 $ 2,891,215 $ 384,987 9.7 % $ 1,457,795 50.4 %

Interest-bearing 9,699,754 9,258,390 8,354,342 441,364 4.8 % 1,345,412 16.1 %

Total deposits 14,048,764 13,222,413 11,245,557 826,351 6.2 % 2,803,207 24.9 %

Fed funds purchased 164,519 153,834 256,020 10,685 6.9 % (91,501 ) -35.7 %and repurchases

Other borrowings 168,252 178,599 85,396 (10,347 ) -5.8 % 82,856 97.0 %

Subordinated notes 122,921 - - 122,921 n/m 122,921 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securities

ACL on off-balancesheet credit 38,572 39,659 - (1,087 ) -2.7 % 38,572 n/m exposures (1)

Operating lease 32,290 31,838 32,354 452 1.4 % (64 ) -0.2 %liabilities

Other liabilities 173,549 159,922 155,992 13,627 8.5 % 17,557 11.3 %

Total liabilities 14,810,723 13,848,121 11,837,175 962,602 7.0 % 2,973,548 25.1 %

Common stock 13,215 13,215 13,376 - 0.0 % (161 ) -1.2 %

Capital surplus 233,120 231,836 256,400 1,284 0.6 % (23,280 ) -9.1 %

Retained earnings 1,495,833 1,459,306 1,414,526 36,527 2.5 % 81,307 5.7 %

Accum othercomprehensiveincome (loss), (1,051 ) 5,684 (23,600 ) (6,735 ) n/m 22,549 95.5 %

net of tax

Total shareholders' 1,741,117 1,710,041 1,660,702 31,076 1.8 % 80,415 4.8 %equity

Total liabilities $ 16,551,840 $ 15,558,162 $ 13,497,877 $ 993,678 6.4 % $ 3,053,963 22.6 %and equity



(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.



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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands except per share data)

(unaudited)

Quarter Ended

Linked Quarter

Year over Year

INCOME STATEMENTS

12/31/2020

9/30/2020

12/31/2019

$ Change

% Change

$ Change

% Change

Interest and fees on LHFS & LHFI-FTE

$

96,453

$

97,429

$

111,383

$

(976

)

-1.0

%

$

(14,930

)

-13.4

%

Interest and fees on PPP loans

14,870

6,729

-

8,141

n/m

14,870

n/m

Interest and fees on acquired loans (1)

-

-

2,138

-

n/m

(2,138

)

-100.0

%

Interest on securities-taxable

9,998

12,542

12,884

(2,544

)

-20.3

%

(2,886

)

-22.4

%

Interest on securities-tax exempt-FTE

293

301

484

(8

)

-2.7

%

(191

)

-39.5

%

Interest on fed funds sold and reverse repurchases

-

1

1

(1

)

-100.0

%

(1

)

-100.0

%

Other interest income

249

331

896

(82

)

-24.8

%

(647

)

-72.2

%

Total interest income-FTE

121,863

117,333

127,786

4,530

3.9

%

(5,923

)

-4.6

%

Interest on deposits

6,363

7,437

17,716

(1,074

)

-14.4

%

(11,353

)

-64.1

%

Interest on fed funds purchased and repurchases

56

32

504

24

75.0

%

(448

)

-88.9

%

Other interest expense

1,127

688

826

439

63.8

%

301

36.4

%

Total interest expense

7,546

8,157

19,046

(611

)

-7.5

%

(11,500

)

-60.4

%

Net interest income-FTE

114,317

109,176

108,740

5,141

4.7

%

5,577

5.1

%

Provision for credit losses, LHFI (1)

(4,413

)

1,760

3,661

(6,173

)

n/m

(8,074

)

n/m

Provision for loan losses, acquired loans (1)

-

-

(2

)

-

n/m

2

100.0

%

Net interest income after provision-FTE

118,730

107,416

105,081

11,314

10.5

%

13,649

13.0

%

Service charges on deposit accounts

8,283

7,577

10,894

706

9.3

%

(2,611

)

-24.0

%

Bank card and other fees

9,107

8,843

8,192

264

3.0

%

915

11.2

%

Mortgage banking, net

28,155

36,439

7,914

(8,284

)

-22.7

%

20,241

n/m

Insurance commissions

10,196

11,562

9,364

(1,366

)

-11.8

%

832

8.9

%

Wealth management

7,838

7,679

7,763

159

2.1

%

75

1.0

%

Other, net

2,538

1,601

3,451

937

58.5

%

(913

)

-26.5

%

Total noninterest income

66,117

73,701

47,578

(7,584

)

-10.3

%

18,539

39.0

%

Salaries and employee benefits

69,660

67,342

62,319

2,318

3.4

%

7,341

11.8

%

Services and fees

22,327

20,992

19,500

1,335

6.4

%

2,827

14.5

%

Net occupancy-premises

6,616

7,000

6,461

(384

)

-5.5

%

155

2.4

%

Equipment expense

6,213

5,828

5,880

385

6.6

%

333

5.7

%

Other real estate expense, net

(812

)

1,203

1,491

(2,015

)

n/m

(2,303

)

n/m

Credit loss expense related to off-balance sheet

credit exposures (1)

(1,087

)

(3,004

)

-

1,917

63.8

%

(1,087

)

n/m

Other expense

15,890

14,598

14,376

1,292

8.9

%

1,514

10.5

%

Total noninterest expense

118,807

113,959

110,027

4,848

4.3

%

8,780

8.0

%

Income before income taxes and tax eq adj

66,040

67,158

42,632

(1,118

)

-1.7

%

23,408

54.9

%

Tax equivalent adjustment

2,939

2,969

3,149

(30

)

-1.0

%

(210

)

-6.7

%

Income before income taxes

63,101

64,189

39,483

(1,088

)

-1.7

%

23,618

59.8

%

Income taxes

11,884

9,749

5,537

2,135

21.9

%

6,347

n/m

Net income

$

51,217

$

54,440

$

33,946

$

(3,223

)

-5.9

%

$

17,271

50.9

%

Per share data

Earnings per share - basic

$

0.81

$

0.86

$

0.53

$

(0.05

)

-5.8

%

$

0.28

52.8

%

Earnings per share - diluted

$

0.81

$

0.86

$

0.53

$

(0.05

)

-5.8

%

$

0.28

52.8

%

Dividends per share

$

0.23

$

0.23

$

0.23

-

0.0

%

-

0.0

%

Weighted average shares outstanding

Basic

63,424,219

63,422,692

64,255,716

Diluted

63,616,767

63,581,964

64,435,276

Period end shares outstanding

63,424,526

63,423,820

64,200,111

(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 Financials TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands except per share data)

(unaudited)

Quarter Ended Linked Quarter Year over Year

INCOME STATEMENTS 12/31/2020 9/30/2020 12/31/2019 $ Change % Change $ Change % Change

Interest and fees $ 96,453 $ 97,429 $ 111,383 $ (976 ) -1.0 % $ (14,930 ) -13.4 %on LHFS & LHFI-FTE

Interest and fees 14,870 6,729 - 8,141 n/m 14,870 n/m on PPP loans

Interest and feeson acquired loans - - 2,138 - n/m (2,138 ) -100.0 %(1)

Interest on 9,998 12,542 12,884 (2,544 ) -20.3 % (2,886 ) -22.4 %securities-taxable

Interest onsecurities-tax 293 301 484 (8 ) -2.7 % (191 ) -39.5 %exempt-FTE

Interest on fedfunds sold and - 1 1 (1 ) -100.0 % (1 ) -100.0 %reverserepurchases

Other interest 249 331 896 (82 ) -24.8 % (647 ) -72.2 %income

Total interest 121,863 117,333 127,786 4,530 3.9 % (5,923 ) -4.6 %income-FTE

Interest on 6,363 7,437 17,716 (1,074 ) -14.4 % (11,353 ) -64.1 %deposits

Interest on fedfunds purchased 56 32 504 24 75.0 % (448 ) -88.9 %and repurchases

Other interest 1,127 688 826 439 63.8 % 301 36.4 %expense

Total interest 7,546 8,157 19,046 (611 ) -7.5 % (11,500 ) -60.4 %expense

Net interest 114,317 109,176 108,740 5,141 4.7 % 5,577 5.1 %income-FTE

Provision forcredit losses, (4,413 ) 1,760 3,661 (6,173 ) n/m (8,074 ) n/m LHFI (1)

Provision for loanlosses, acquired - - (2 ) - n/m 2 100.0 %loans (1)

Net interestincome after 118,730 107,416 105,081 11,314 10.5 % 13,649 13.0 %provision-FTE

Service charges on 8,283 7,577 10,894 706 9.3 % (2,611 ) -24.0 %deposit accounts

Bank card and 9,107 8,843 8,192 264 3.0 % 915 11.2 %other fees

Mortgage banking, 28,155 36,439 7,914 (8,284 ) -22.7 % 20,241 n/m net

Insurance 10,196 11,562 9,364 (1,366 ) -11.8 % 832 8.9 %commissions

Wealth management 7,838 7,679 7,763 159 2.1 % 75 1.0 %

Other, net 2,538 1,601 3,451 937 58.5 % (913 ) -26.5 %

Total noninterest 66,117 73,701 47,578 (7,584 ) -10.3 % 18,539 39.0 %income

Salaries and 69,660 67,342 62,319 2,318 3.4 % 7,341 11.8 %employee benefits

Services and fees 22,327 20,992 19,500 1,335 6.4 % 2,827 14.5 %

Net 6,616 7,000 6,461 (384 ) -5.5 % 155 2.4 %occupancy-premises

Equipment expense 6,213 5,828 5,880 385 6.6 % 333 5.7 %

Other real estate (812 ) 1,203 1,491 (2,015 ) n/m (2,303 ) n/m expense, net

Credit lossexpense related tooff-balance sheet (1,087 ) (3,004 ) - 1,917 63.8 % (1,087 ) n/m

credit exposures(1)

Other expense 15,890 14,598 14,376 1,292 8.9 % 1,514 10.5 %

Total noninterest 118,807 113,959 110,027 4,848 4.3 % 8,780 8.0 %expense

Income beforeincome taxes and 66,040 67,158 42,632 (1,118 ) -1.7 % 23,408 54.9 %tax eq adj

Tax equivalent 2,939 2,969 3,149 (30 ) -1.0 % (210 ) -6.7 %adjustment

Income before 63,101 64,189 39,483 (1,088 ) -1.7 % 23,618 59.8 %income taxes

Income taxes 11,884 9,749 5,537 2,135 21.9 % 6,347 n/m

Net income $ 51,217 $ 54,440 $ 33,946 $ (3,223 ) -5.9 % $ 17,271 50.9 %



Per share data

Earnings per share $ 0.81 $ 0.86 $ 0.53 $ (0.05 ) -5.8 % $ 0.28 52.8 %- basic



Earnings per share $ 0.81 $ 0.86 $ 0.53 $ (0.05 ) -5.8 % $ 0.28 52.8 %- diluted



Dividends per $ 0.23 $ 0.23 $ 0.23 - 0.0 % - 0.0 %share



Weighted average shares outstanding

Basic 63,424,219 63,422,692 64,255,716



Diluted 63,616,767 63,581,964 64,435,276



Period end shares 63,424,526 63,423,820 64,200,111 outstanding



(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.



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

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Quarter Ended

Linked Quarter

Year over Year

NONPERFORMING ASSETS(1)

12/31/2020

9/30/2020

12/31/2019

$ Change

% Change

$ Change

% Change

Nonaccrual LHFI

Alabama

$

9,221

$

3,860

$

1,870

$

5,361

n/m

$

7,351

n/m

Florida

572

617

267

(45

)

-7.3

%

305

n/m

Mississippi (2)

35,015

35,617

41,493

(602

)

-1.7

%

(6,478

)

-15.6

%

Tennessee (3)

12,572

13,041

8,980

(469

)

-3.6

%

3,592

40.0

%

Texas

5,748

721

616

5,027

n/m

5,132

n/m

Total nonaccrual LHFI

63,128

53,856

53,226

9,272

17.2

%

9,902

18.6

%

Other real estate

Alabama

3,271

3,725

8,133

(454

)

-12.2

%

(4,862

)

-59.8

%

Florida

-

3,665

5,877

(3,665

)

-100.0

%

(5,877

)

-100.0

%

Mississippi (2)

8,330

8,718

14,919

(388

)

-4.5

%

(6,589

)

-44.2

%

Tennessee (3)

50

140

319

(90

)

-64.3

%

(269

)

-84.3

%

Texas

-

-

-

-

n/m

-

n/m

Total other real estate

11,651

16,248

29,248

(4,597

)

-28.3

%

(17,597

)

-60.2

%

Total nonperforming assets

$

74,779

$

70,104

$

82,474

$

4,675

6.7

%

$

(7,695

)

-9.3

%

LOANS PAST DUE OVER 90 DAYS(1)

LHFI

$

1,576

$

782

$

642

$

794

n/m

$

934

n/m

LHFS-Guaranteed GNMA serviced loans

(no obligation to repurchase)

$

119,409

$

121,281

$

41,648

$

(1,872

)

-1.5

%

$

77,761

n/m

Quarter Ended

Linked Quarter

Year over Year

ACL LHFI(1)(4)

12/31/2020

9/30/2020

12/31/2019

$ Change

% Change

$ Change

% Change

Beginning Balance

$

122,010

$

119,188

$

83,226

$

2,822

2.4

%

$

38,784

46.6

%

CECL adoption adjustments:

LHFI

-

-

-

-

n/m

-

n/m

Acquired loan transfers

-

-

-

-

n/m

-

n/m

Provision for credit losses

(4,413

)

1,760

3,661

(6,173

)

n/m

(8,074

)

n/m

Charge-offs

(2,797

)

(1,263

)

(4,619

)

(1,534

)

n/m

1,822

39.4

%

Recoveries

2,506

2,325

2,009

181

7.8

%

497

24.7

%

Net (charge-offs) recoveries

(291

)

1,062

(2,610

)

(1,353

)

n/m

2,319

88.9

%

Ending Balance

$

117,306

$

122,010

$

84,277

$

(4,704

)

-3.9

%

$

33,029

39.2

%

NET (CHARGE-OFFS) RECOVERIES(1)

Alabama

$

(1,011

)

$

117

$

(132

)

$

(1,128

)

n/m

$

(879

)

n/m

Florida

66

387

357

(321

)

-82.9

%

(291

)

-81.5

%

Mississippi (2)

332

442

(1,792

)

(110

)

-24.9

%

2,124

n/m

Tennessee (3)

303

42

(131

)

261

n/m

434

n/m

Texas

19

74

(912

)

(55

)

-74.3

%

931

n/m

Total net (charge-offs) recoveries

$

(291

)

$

1,062

$

(2,610

)

$

(1,353

)

n/m

$

2,319

-88.9

%

(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 Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Quarter Ended Linked Quarter Year over Year

NONPERFORMING 12/31/2020 9/30/2020 12/31/2019 $ Change % Change $ Change % ChangeASSETS (1)

Nonaccrual LHFI

Alabama $ 9,221 $ 3,860 $ 1,870 $ 5,361 n/m $ 7,351 n/m

Florida 572 617 267 (45 ) -7.3 % 305 n/m

Mississippi (2) 35,015 35,617 41,493 (602 ) -1.7 % (6,478 ) -15.6 %

Tennessee (3) 12,572 13,041 8,980 (469 ) -3.6 % 3,592 40.0 %

Texas 5,748 721 616 5,027 n/m 5,132 n/m

Total 63,128 53,856 53,226 9,272 17.2 % 9,902 18.6 %nonaccrual LHFI

Other real estate

Alabama 3,271 3,725 8,133 (454 ) -12.2 % (4,862 ) -59.8 %

Florida - 3,665 5,877 (3,665 ) -100.0 % (5,877 ) -100.0 %

Mississippi (2) 8,330 8,718 14,919 (388 ) -4.5 % (6,589 ) -44.2 %

Tennessee (3) 50 140 319 (90 ) -64.3 % (269 ) -84.3 %

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

Total other 11,651 16,248 29,248 (4,597 ) -28.3 % (17,597 ) -60.2 %real estate

Totalnonperforming $ 74,779 $ 70,104 $ 82,474 $ 4,675 6.7 % $ (7,695 ) -9.3 %assets



LOANS PAST DUEOVER 90 DAYS (1)

LHFI $ 1,576 $ 782 $ 642 $ 794 n/m $ 934 n/m



LHFS-GuaranteedGNMA serviced loans

(no obligation $ 119,409 $ 121,281 $ 41,648 $ (1,872 ) -1.5 % $ 77,761 n/m to repurchase)



Quarter Ended Linked Quarter Year over Year

ACL LHFI (1)(4) 12/31/2020 9/30/2020 12/31/2019 $ Change % Change $ Change % Change

Beginning $ 122,010 $ 119,188 $ 83,226 $ 2,822 2.4 % $ 38,784 46.6 %Balance

CECL adoption adjustments:

LHFI - - - - n/m - n/m

Acquired loan - - - - n/m - n/m transfers

Provision for (4,413 ) 1,760 3,661 (6,173 ) n/m (8,074 ) n/m credit losses

Charge-offs (2,797 ) (1,263 ) (4,619 ) (1,534 ) n/m 1,822 39.4 %

Recoveries 2,506 2,325 2,009 181 7.8 % 497 24.7 %

Net(charge-offs) (291 ) 1,062 (2,610 ) (1,353 ) n/m 2,319 88.9 %recoveries

Ending Balance $ 117,306 $ 122,010 $ 84,277 $ (4,704 ) -3.9 % $ 33,029 39.2 %



NET(CHARGE-OFFS) RECOVERIES (1)

Alabama $ (1,011 ) $ 117 $ (132 ) $ (1,128 ) n/m $ (879 ) n/m

Florida 66 387 357 (321 ) -82.9 % (291 ) -81.5 %

Mississippi (2) 332 442 (1,792 ) (110 ) -24.9 % 2,124 n/m

Tennessee (3) 303 42 (131 ) 261 n/m 434 n/m

Texas 19 74 (912 ) (55 ) -74.3 % 931 n/m

Total net(charge-offs) $ (291 ) $ 1,062 $ (2,610 ) $ (1,353 ) n/m $ 2,319 -88.9 %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 toConsolidated Financials for additional details.



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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Quarter Ended

Year Ended

AVERAGE BALANCES

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Securities AFS-taxable

$

1,902,162

$

1,857,050

$

1,724,320

$

1,620,422

$

1,551,358

$

1,776,555

$

1,633,496

Securities AFS-nontaxable

5,206

5,973

9,827

22,056

23,300

10,737

29,948

Securities HTM-taxable

550,563

608,585

655,085

694,740

734,474

626,983

799,726

Securities HTM-nontaxable

24,752

25,508

25,538

25,673

25,703

25,366

26,874

Total securities

2,482,683

2,497,116

2,414,770

2,362,891

2,334,835

2,439,641

2,490,044

PPP loans

875,098

941,456

764,416

-

-

646,680

-

Loans (includes loans held for sale) (1)

10,231,671

10,162,379

9,908,132

9,678,174

9,467,437

9,996,192

9,302,037

Acquired loans (1)

-

-

-

-

77,797

-

88,903

Fed funds sold and reverse repurchases

303

301

113

164

184

221

9,529

Other earning assets

860,540

722,917

854,642

187,327

227,116

657,096

240,622

Total earning assets

14,450,295

14,324,169

13,942,073

12,228,556

12,107,369

13,739,830

12,131,135

ACL LHFI (1)

(124,088

)

(121,842

)

(103,006

)

(85,015

)

(86,211

)

(108,567

)

(83,559

)

Other assets

1,620,694

1,564,825

1,685,317

1,498,725

1,445,075

1,592,393

1,452,012

Total assets

$

15,946,901

$

15,767,152

$

15,524,384

$

13,642,266

$

13,466,233

$

15,223,656

$

13,499,588

Interest-bearing demand deposits

$

3,649,590

$

3,669,249

$

3,832,372

$

3,184,134

$

3,167,256

$

3,584,249

$

3,051,170

Savings deposits

4,350,783

4,416,046

4,180,540

3,646,936

3,448,899

4,149,860

3,650,178

Time deposits

1,436,677

1,507,348

1,578,737

1,617,307

1,663,741

1,534,673

1,783,928

Total interest-bearing deposits

9,437,050

9,592,643

9,591,649

8,448,377

8,279,896

9,268,782

8,485,276

Fed funds purchased and repurchases

170,474

84,077

105,696

247,513

164,754

151,805

110,915

Other borrowings

173,525

167,262

107,533

85,279

79,512

133,602

82,476

Subordinated notes

42,828

-

-

-

-

10,766

-

Junior subordinated debt securities

61,856

61,856

61,856

61,856

61,856

61,856

61,856

Total interest-bearing liabilities

9,885,733

9,905,838

9,866,734

8,843,025

8,586,018

9,626,811

8,740,523

Noninterest-bearing deposits

4,100,849

3,921,867

3,645,761

2,910,951

3,017,824

3,646,860

2,918,836

Other liabilities

235,284

244,544

346,173

248,220

205,786

268,398

218,216

Total liabilities

14,221,866

14,072,249

13,858,668

12,002,196

11,809,628

13,542,069

11,877,575

Shareholders' equity

1,725,035

1,694,903

1,665,716

1,640,070

1,656,605

1,681,587

1,622,013

Total liabilities and equity

$

15,946,901

$

15,767,152

$

15,524,384

$

13,642,266

$

13,466,233

$

15,223,656

$

13,499,588

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Quarter Ended Year Ended

AVERAGE BALANCES 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019

Securities $ 1,902,162 $ 1,857,050 $ 1,724,320 $ 1,620,422 $ 1,551,358 $ 1,776,555 $ 1,633,496 AFS-taxable

Securities 5,206 5,973 9,827 22,056 23,300 10,737 29,948 AFS-nontaxable

Securities 550,563 608,585 655,085 694,740 734,474 626,983 799,726 HTM-taxable

Securities 24,752 25,508 25,538 25,673 25,703 25,366 26,874 HTM-nontaxable

Total securities 2,482,683 2,497,116 2,414,770 2,362,891 2,334,835 2,439,641 2,490,044

PPP loans 875,098 941,456 764,416 - - 646,680 -

Loans (includes loans 10,231,671 10,162,379 9,908,132 9,678,174 9,467,437 9,996,192 9,302,037 held for sale) (1)

Acquired loans (1) - - - - 77,797 - 88,903

Fed funds sold and 303 301 113 164 184 221 9,529 reverse repurchases

Other earning assets 860,540 722,917 854,642 187,327 227,116 657,096 240,622

Total earning assets 14,450,295 14,324,169 13,942,073 12,228,556 12,107,369 13,739,830 12,131,135

ACL LHFI (1) (124,088 ) (121,842 ) (103,006 ) (85,015 ) (86,211 ) (108,567 ) (83,559 )

Other assets 1,620,694 1,564,825 1,685,317 1,498,725 1,445,075 1,592,393 1,452,012

Total assets $ 15,946,901 $ 15,767,152 $ 15,524,384 $ 13,642,266 $ 13,466,233 $ 15,223,656 $ 13,499,588



Interest-bearing $ 3,649,590 $ 3,669,249 $ 3,832,372 $ 3,184,134 $ 3,167,256 $ 3,584,249 $ 3,051,170 demand deposits

Savings deposits 4,350,783 4,416,046 4,180,540 3,646,936 3,448,899 4,149,860 3,650,178

Time deposits 1,436,677 1,507,348 1,578,737 1,617,307 1,663,741 1,534,673 1,783,928

Totalinterest-bearing 9,437,050 9,592,643 9,591,649 8,448,377 8,279,896 9,268,782 8,485,276 deposits

Fed funds purchased 170,474 84,077 105,696 247,513 164,754 151,805 110,915 and repurchases

Other borrowings 173,525 167,262 107,533 85,279 79,512 133,602 82,476

Subordinated notes 42,828 - - - - 10,766 -

Junior subordinated 61,856 61,856 61,856 61,856 61,856 61,856 61,856 debt securities

Totalinterest-bearing 9,885,733 9,905,838 9,866,734 8,843,025 8,586,018 9,626,811 8,740,523 liabilities

Noninterest-bearing 4,100,849 3,921,867 3,645,761 2,910,951 3,017,824 3,646,860 2,918,836 deposits

Other liabilities 235,284 244,544 346,173 248,220 205,786 268,398 218,216

Total liabilities 14,221,866 14,072,249 13,858,668 12,002,196 11,809,628 13,542,069 11,877,575

Shareholders' equity 1,725,035 1,694,903 1,665,716 1,640,070 1,656,605 1,681,587 1,622,013

Total liabilities and $ 15,946,901 $ 15,767,152 $ 15,524,384 $ 13,642,266 $ 13,466,233 $ 15,223,656 $ 13,499,588 equity



(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

PERIOD END BALANCES

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Cash and due from banks

$

1,952,504

$

564,588

$

1,026,640

$

404,341

$

358,916

Fed funds sold and reverse repurchases

50

50

-

2,000

-

Securities available for sale

1,991,815

1,922,728

1,884,153

1,833,779

1,602,404

Securities held to maturity

538,072

611,280

660,048

704,276

738,099

PPP loans

610,134

944,270

939,783

-

-

Loans held for sale (LHFS)

446,951

485,103

355,089

325,389

226,347

Loans held for investment (LHFI) (1)

9,824,524

9,847,728

9,659,806

9,567,920

9,335,628

ACL LHFI (1)

(117,306

)

(122,010

)

(119,188

)

(100,564

)

(84,277

)

Net LHFI

9,707,218

9,725,718

9,540,618

9,467,356

9,251,351

Acquired loans (1)

-

-

-

-

72,601

Allowance for loan losses, acquired loans (1)

-

-

-

-

(815

)

Net acquired loans

-

-

-

-

71,786

Net LHFI and acquired loans

9,707,218

9,725,718

9,540,618

9,467,356

9,323,137

Premises and equipment, net

194,278

192,722

190,567

190,179

189,791

Mortgage servicing rights

66,464

61,613

57,811

56,437

79,394

Goodwill

385,270

385,270

385,270

381,717

379,627

Identifiable intangible assets

7,390

8,142

8,895

7,537

7,343

Other real estate

11,651

16,248

18,276

24,847

29,248

Operating lease right-of-use assets

30,901

30,508

29,819

30,839

31,182

Other assets

609,142

609,922

595,110

591,132

532,389

Total assets

$

16,551,840

$

15,558,162

$

15,692,079

$

14,019,829

$

13,497,877

Deposits:

Noninterest-bearing

$

4,349,010

$

3,964,023

$

3,880,540

$

2,977,058

$

2,891,215

Interest-bearing

9,699,754

9,258,390

9,624,933

8,598,706

8,354,342

Total deposits

14,048,764

13,222,413

13,505,473

11,575,764

11,245,557

Fed funds purchased and repurchases

164,519

153,834

70,255

421,821

256,020

Other borrowings

168,252

178,599

152,860

84,230

85,396

Subordinated notes

122,921

-

-

-

-

Junior subordinated debt securities

61,856

61,856

61,856

61,856

61,856

ACL on off-balance sheet credit exposures (1)

38,572

39,659

42,663

36,421

-

Operating lease liabilities

32,290

31,838

31,076

32,055

32,354

Other liabilities

173,549

159,922

153,952

155,283

155,992

Total liabilities

14,810,723

13,848,121

14,018,135

12,367,430

11,837,175

Common stock

13,215

13,215

13,214

13,209

13,376

Capital surplus

233,120

231,836

230,613

229,403

256,400

Retained earnings

1,495,833

1,459,306

1,419,552

1,402,089

1,414,526

Accum other comprehensive income (loss), net of tax

(1,051

)

5,684

10,565

7,698

(23,600

)

Total shareholders' equity

1,741,117

1,710,041

1,673,944

1,652,399

1,660,702

Total liabilities and equity

$

16,551,840

$

15,558,162

$

15,692,079

$

14,019,829

$

13,497,877

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

PERIOD END BALANCES 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019

Cash and due from $ 1,952,504 $ 564,588 $ 1,026,640 $ 404,341 $ 358,916 banks

Fed funds sold and 50 50 - 2,000 - reverse repurchases

Securities 1,991,815 1,922,728 1,884,153 1,833,779 1,602,404 available for sale

Securities held to 538,072 611,280 660,048 704,276 738,099 maturity

PPP loans 610,134 944,270 939,783 - -

Loans held for sale 446,951 485,103 355,089 325,389 226,347 (LHFS)

Loans held forinvestment (LHFI) 9,824,524 9,847,728 9,659,806 9,567,920 9,335,628 (1)

ACL LHFI (1) (117,306 ) (122,010 ) (119,188 ) (100,564 ) (84,277 )

Net LHFI 9,707,218 9,725,718 9,540,618 9,467,356 9,251,351

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

Allowance for loanlosses, acquired - - - - (815 ) loans (1)

Net acquired loans - - - - 71,786

Net LHFI and 9,707,218 9,725,718 9,540,618 9,467,356 9,323,137 acquired loans

Premises and 194,278 192,722 190,567 190,179 189,791 equipment, net

Mortgage servicing 66,464 61,613 57,811 56,437 79,394 rights

Goodwill 385,270 385,270 385,270 381,717 379,627

Identifiable 7,390 8,142 8,895 7,537 7,343 intangible assets

Other real estate 11,651 16,248 18,276 24,847 29,248

Operating lease 30,901 30,508 29,819 30,839 31,182 right-of-use assets

Other assets 609,142 609,922 595,110 591,132 532,389

Total assets $ 16,551,840 $ 15,558,162 $ 15,692,079 $ 14,019,829 $ 13,497,877



Deposits:

Noninterest-bearing $ 4,349,010 $ 3,964,023 $ 3,880,540 $ 2,977,058 $ 2,891,215

Interest-bearing 9,699,754 9,258,390 9,624,933 8,598,706 8,354,342

Total deposits 14,048,764 13,222,413 13,505,473 11,575,764 11,245,557

Fed funds purchased 164,519 153,834 70,255 421,821 256,020 and repurchases

Other borrowings 168,252 178,599 152,860 84,230 85,396

Subordinated notes 122,921 - - - -

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securities

ACL on off-balancesheet credit 38,572 39,659 42,663 36,421 - exposures (1)

Operating lease 32,290 31,838 31,076 32,055 32,354 liabilities

Other liabilities 173,549 159,922 153,952 155,283 155,992

Total liabilities 14,810,723 13,848,121 14,018,135 12,367,430 11,837,175

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

Capital surplus 233,120 231,836 230,613 229,403 256,400

Retained earnings 1,495,833 1,459,306 1,419,552 1,402,089 1,414,526

Accum othercomprehensive (1,051 ) 5,684 10,565 7,698 (23,600 ) income (loss), netof tax

Total shareholders' 1,741,117 1,710,041 1,673,944 1,652,399 1,660,702 equity

Total liabilities $ 16,551,840 $ 15,558,162 $ 15,692,079 $ 14,019,829 $ 13,497,877 and equity



(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands except per share data)

(unaudited)

Quarter Ended

Year Ended

INCOME STATEMENTS

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Interest and fees on LHFS & LHFI-FTE

$

96,453

$

97,429

$

99,300

$

109,357

$

111,383

$

402,539

$

452,578

Interest and fees on PPP loans

14,870

6,729

5,044

-

-

26,643

-

Interest and fees on acquired loans (1)

-

-

-

-

2,138

-

8,373

Interest on securities-taxable

9,998

12,542

12,762

12,948

12,884

48,250

54,649

Interest on securities-tax exempt-FTE

293

301

315

457

484

1,366

2,166

Interest on fed funds sold and reverse repurchases

-

1

-

-

1

1

240

Other interest income

249

331

239

740

896

1,559

5,363

Total interest income-FTE

121,863

117,333

117,660

123,502

127,786

480,358

523,369

Interest on deposits

6,363

7,437

8,730

14,957

17,716

37,487

79,171

Interest on fed funds purchased and repurchases

56

32

42

625

504

755

1,420

Other interest expense

1,127

688

881

860

826

3,556

3,312

Total interest expense

7,546

8,157

9,653

16,442

19,046

41,798

83,903

Net interest income-FTE

114,317

109,176

108,007

107,060

108,740

438,560

439,466

Provision for credit losses, LHFI (1)

(4,413

)

1,760

18,185

20,581

3,661

36,113

10,797

Provision for loan losses, acquired loans (1)

-

-

-

-

(2

)

-

42

Net interest income after provision-FTE

118,730

107,416

89,822

86,479

105,081

402,447

428,627

Service charges on deposit accounts

8,283

7,577

6,397

10,032

10,894

32,289

42,603

Bank card and other fees

9,107

8,843

7,717

5,355

8,192

31,022

31,736

Mortgage banking, net

28,155

36,439

33,745

27,483

7,914

125,822

29,822

Insurance commissions

10,196

11,562

11,868

11,550

9,364

45,176

42,396

Wealth management

7,838

7,679

7,571

8,537

7,763

31,625

30,679

Other, net

2,538

1,601

2,213

2,307

3,451

8,659

9,809

Total noninterest income

66,117

73,701

69,511

65,264

47,578

274,593

187,045

Salaries and employee benefits

69,660

67,342

66,107

69,148

62,319

272,257

247,717

Services and fees

22,327

20,992

20,567

19,930

19,500

83,816

73,315

Net occupancy-premises

6,616

7,000

6,587

6,286

6,461

26,489

26,149

Equipment expense

6,213

5,828

5,620

5,616

5,880

23,277

23,733

Other real estate expense, net

(812

)

1,203

271

1,294

1,491

1,956

3,906

Credit loss expense related to off-balance sheet credit

exposures (1)

(1,087

)

(3,004

)

6,242

6,783

-

8,934

-

Other expense

15,890

14,598

13,265

14,753

14,376

58,506

54,182

Total noninterest expense

118,807

113,959

118,659

123,810

110,027

475,235

429,002

Income before income taxes and tax eq adj

66,040

67,158

40,674

27,933

42,632

201,805

186,670

Tax equivalent adjustment

2,939

2,969

3,007

3,108

3,149

12,023

12,877

Income before income taxes

63,101

64,189

37,667

24,825

39,483

189,782

173,793

Income taxes

11,884

9,749

5,517

2,607

5,537

29,757

23,333

Net income

$

51,217

$

54,440

$

32,150

$

22,218

$

33,946

$

160,025

$

150,460

Per share data

Earnings per share - basic

$

0.81

$

0.86

$

0.51

$

0.35

$

0.53

$

2.52

$

2.33

Earnings per share - diluted

$

0.81

$

0.86

$

0.51

$

0.35

$

0.53

$

2.51

$

2.32

Dividends per share

$

0.23

$

0.23

$

0.23

$

0.23

$

0.23

$

0.92

$

0.92

Weighted average shares outstanding

Basic

63,424,219

63,422,692

63,416,307

63,756,629

64,255,716

63,504,516

64,629,457

Diluted

63,616,767

63,581,964

63,555,065

63,913,603

64,435,276

63,645,599

64,771,770

Period end shares outstanding

63,424,526

63,423,820

63,422,439

63,396,912

64,200,111

63,424,526

64,200,111

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

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands except per share data)

(unaudited)

Quarter Ended Year Ended

INCOME STATEMENTS 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019

Interest and fees on $ 96,453 $ 97,429 $ 99,300 $ 109,357 $ 111,383 $ 402,539 $ 452,578 LHFS & LHFI-FTE

Interest and fees on 14,870 6,729 5,044 - - 26,643 - PPP loans

Interest and fees on - - - - 2,138 - 8,373 acquired loans (1)

Interest on 9,998 12,542 12,762 12,948 12,884 48,250 54,649 securities-taxable

Interest onsecurities-tax 293 301 315 457 484 1,366 2,166 exempt-FTE

Interest on fed fundssold and reverse - 1 - - 1 1 240 repurchases

Other interest income 249 331 239 740 896 1,559 5,363

Total interest 121,863 117,333 117,660 123,502 127,786 480,358 523,369 income-FTE

Interest on deposits 6,363 7,437 8,730 14,957 17,716 37,487 79,171

Interest on fed fundspurchased and 56 32 42 625 504 755 1,420 repurchases

Other interest expense 1,127 688 881 860 826 3,556 3,312

Total interest expense 7,546 8,157 9,653 16,442 19,046 41,798 83,903

Net interest 114,317 109,176 108,007 107,060 108,740 438,560 439,466 income-FTE

Provision for credit (4,413 ) 1,760 18,185 20,581 3,661 36,113 10,797 losses, LHFI (1)

Provision for loanlosses, acquired loans - - - - (2 ) - 42 (1)

Net interest income 118,730 107,416 89,822 86,479 105,081 402,447 428,627 after provision-FTE

Service charges on 8,283 7,577 6,397 10,032 10,894 32,289 42,603 deposit accounts

Bank card and other 9,107 8,843 7,717 5,355 8,192 31,022 31,736 fees

Mortgage banking, net 28,155 36,439 33,745 27,483 7,914 125,822 29,822

Insurance commissions 10,196 11,562 11,868 11,550 9,364 45,176 42,396

Wealth management 7,838 7,679 7,571 8,537 7,763 31,625 30,679

Other, net 2,538 1,601 2,213 2,307 3,451 8,659 9,809

Total noninterest 66,117 73,701 69,511 65,264 47,578 274,593 187,045 income

Salaries and employee 69,660 67,342 66,107 69,148 62,319 272,257 247,717 benefits

Services and fees 22,327 20,992 20,567 19,930 19,500 83,816 73,315

Net occupancy-premises 6,616 7,000 6,587 6,286 6,461 26,489 26,149

Equipment expense 6,213 5,828 5,620 5,616 5,880 23,277 23,733

Other real estate (812 ) 1,203 271 1,294 1,491 1,956 3,906 expense, net

Credit loss expenserelated to off-balancesheet credit (1,087 ) (3,004 ) 6,242 6,783 - 8,934 -

exposures (1)

Other expense 15,890 14,598 13,265 14,753 14,376 58,506 54,182

Total noninterest 118,807 113,959 118,659 123,810 110,027 475,235 429,002 expense

Income before income 66,040 67,158 40,674 27,933 42,632 201,805 186,670 taxes and tax eq adj

Tax equivalent 2,939 2,969 3,007 3,108 3,149 12,023 12,877 adjustment

Income before income 63,101 64,189 37,667 24,825 39,483 189,782 173,793 taxes

Income taxes 11,884 9,749 5,517 2,607 5,537 29,757 23,333

Net income $ 51,217 $ 54,440 $ 32,150 $ 22,218 $ 33,946 $ 160,025 $ 150,460



Per share data

Earnings per share - $ 0.81 $ 0.86 $ 0.51 $ 0.35 $ 0.53 $ 2.52 $ 2.33 basic



Earnings per share - $ 0.81 $ 0.86 $ 0.51 $ 0.35 $ 0.53 $ 2.51 $ 2.32 diluted



Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 $ 0.92



Weighted average shares outstanding

Basic 63,424,219 63,422,692 63,416,307 63,756,629 64,255,716 63,504,516 64,629,457



Diluted 63,616,767 63,581,964 63,555,065 63,913,603 64,435,276 63,645,599 64,771,770



Period end shares 63,424,526 63,423,820 63,422,439 63,396,912 64,200,111 63,424,526 64,200,111 outstanding



(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Quarter Ended

NONPERFORMING ASSETS(1)

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Nonaccrual LHFI

Alabama

$

9,221

$

3,860

$

4,392

$

4,769

$

1,870

Florida

572

617

687

254

267

Mississippi (2)

35,015

35,617

37,884

40,815

41,493

Tennessee (3)

12,572

13,041

6,125

6,153

8,980

Texas

5,748

721

906

1,001

616

Total nonaccrual LHFI

63,128

53,856

49,994

52,992

53,226

Other real estate

Alabama

3,271

3,725

4,766

6,229

8,133

Florida

-

3,665

3,665

4,835

5,877

Mississippi (2)

8,330

8,718

9,408

13,296

14,919

Tennessee (3)

50

140

437

487

319

Texas

-

-

-

-

-

Total other real estate

11,651

16,248

18,276

24,847

29,248

Total nonperforming assets

$

74,779

$

70,104

$

68,270

$

77,839

$

82,474

LOANS PAST DUE OVER 90 DAYS(1)

LHFI

$

1,576

$

782

$

807

$

708

$

642

LHFS-Guaranteed GNMA serviced loans

(no obligation to repurchase)

$

119,409

$

121,281

$

56,269

$

43,564

$

41,648

Quarter Ended

Year Ended

ACL LHFI(1)(4)

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Beginning Balance

$

122,010

$

119,188

$

100,564

$

84,277

$

83,226

$

84,277

$

79,290

CECL adoption adjustments:

LHFI

-

-

-

(3,039

)

-

(3,039

)

-

Acquired loan transfers

-

-

-

1,822

-

1,822

-

Provision for credit losses

(4,413

)

1,760

18,185

20,581

3,661

36,113

10,797

Charge-offs

(2,797

)

(1,263

)

(1,870

)

(5,545

)

(4,619

)

(11,475

)

(14,481

)

Recoveries

2,506

2,325

2,309

2,468

2,009

9,608

8,671

Net (charge-offs) recoveries

(291

)

1,062

439

(3,077

)

(2,610

)

(1,867

)

(5,810

)

Ending Balance

$

117,306

$

122,010

$

119,188

$

100,564

$

84,277

$

117,306

$

84,277

NET (CHARGE-OFFS) RECOVERIES(1)

Alabama

$

(1,011

)

$

117

$

526

$

(1,080

)

$

(132

)

$

(1,448

)

$

(754

)

Florida

66

387

(127

)

64

357

390

850

Mississippi (2)

332

442

(86

)

126

(1,792

)

814

(4,438

)

Tennessee (3)

303

42

66

(2,186

)

(131

)

(1,775

)

(708

)

Texas

19

74

60

(1

)

(912

)

152

(760

)

Total net (charge-offs) recoveries

$

(291

)

$

1,062

$

439

$

(3,077

)

$

(2,610

)

$

(1,867

)

$

(5,810

)

(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 TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

($ in thousands)

(unaudited)

Quarter Ended

NONPERFORMING 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 ASSETS (1)

Nonaccrual LHFI

Alabama $ 9,221 $ 3,860 $ 4,392 $ 4,769 $ 1,870

Florida 572 617 687 254 267

Mississippi (2) 35,015 35,617 37,884 40,815 41,493

Tennessee (3) 12,572 13,041 6,125 6,153 8,980

Texas 5,748 721 906 1,001 616

Total 63,128 53,856 49,994 52,992 53,226 nonaccrual LHFI

Other real estate

Alabama 3,271 3,725 4,766 6,229 8,133

Florida - 3,665 3,665 4,835 5,877

Mississippi (2) 8,330 8,718 9,408 13,296 14,919

Tennessee (3) 50 140 437 487 319

Texas - - - - -

Total other 11,651 16,248 18,276 24,847 29,248 real estate

Totalnonperforming $ 74,779 $ 70,104 $ 68,270 $ 77,839 $ 82,474 assets



LOANS PAST DUEOVER 90 DAYS (1)

LHFI $ 1,576 $ 782 $ 807 $ 708 $ 642



LHFS-GuaranteedGNMA serviced loans

(no obligation $ 119,409 $ 121,281 $ 56,269 $ 43,564 $ 41,648 to repurchase)





Quarter Ended Year Ended

ACL LHFI (1)(4) 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019

Beginning $ 122,010 $ 119,188 $ 100,564 $ 84,277 $ 83,226 $ 84,277 $ 79,290 Balance

CECL adoption adjustments:

LHFI - - - (3,039 ) - (3,039 ) -

Acquired loan - - - 1,822 - 1,822 - transfers

Provision for (4,413 ) 1,760 18,185 20,581 3,661 36,113 10,797 credit losses

Charge-offs (2,797 ) (1,263 ) (1,870 ) (5,545 ) (4,619 ) (11,475 ) (14,481 )

Recoveries 2,506 2,325 2,309 2,468 2,009 9,608 8,671

Net(charge-offs) (291 ) 1,062 439 (3,077 ) (2,610 ) (1,867 ) (5,810 )recoveries

Ending Balance $ 117,306 $ 122,010 $ 119,188 $ 100,564 $ 84,277 $ 117,306 $ 84,277



NET(CHARGE-OFFS) RECOVERIES (1)

Alabama $ (1,011 ) $ 117 $ 526 $ (1,080 ) $ (132 ) $ (1,448 ) $ (754 )

Florida 66 387 (127 ) 64 357 390 850

Mississippi (2) 332 442 (86 ) 126 (1,792 ) 814 (4,438 )

Tennessee (3) 303 42 66 (2,186 ) (131 ) (1,775 ) (708 )

Texas 19 74 60 (1 ) (912 ) 152 (760 )

Total net(charge-offs) $ (291 ) $ 1,062 $ 439 $ (3,077 ) $ (2,610 ) $ (1,867 ) $ (5,810 )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 toConsolidated Financials for additional details.

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

(unaudited)

Quarter Ended

Year Ended

FINANCIAL RATIOS AND OTHER DATA

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Return on average equity

11.81

%

12.78

%

7.76

%

5.45

%

8.13

%

9.52

%

9.28

%

Return on average tangible equity

15.47

%

16.82

%

10.32

%

7.34

%

10.85

%

12.58

%

12.45

%

Return on average assets

1.28

%

1.37

%

0.83

%

0.66

%

1.00

%

1.05

%

1.11

%

Interest margin - Yield - FTE

3.35

%

3.26

%

3.39

%

4.06

%

4.19

%

3.50

%

4.31

%

Interest margin - Cost

0.21

%

0.23

%

0.28

%

0.54

%

0.62

%

0.30

%

0.69

%

Net interest margin - FTE

3.15

%

3.03

%

3.12

%

3.52

%

3.56

%

3.19

%

3.62

%

Efficiency ratio (1)

65.59

%

62.19

%

62.13

%

63.50

%

68.08

%

63.35

%

66.38

%

Full-time equivalent employees

2,797

2,807

2,798

2,761

2,844

CREDIT QUALITY RATIOS(2)

Net (recoveries) charge-offs / average loans

0.01

%

-0.04

%

-0.02

%

0.13

%

0.11

%

0.02

%

0.06

%

Provision for credit losses / average loans (3)

-0.17

%

0.07

%

0.74

%

0.86

%

0.15

%

0.36

%

0.12

%

Nonaccrual LHFI / (LHFI + LHFS)

0.61

%

0.52

%

0.50

%

0.54

%

0.56

%

Nonperforming assets / (LHFI + LHFS)

0.73

%

0.68

%

0.68

%

0.79

%

0.86

%

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

0.73

%

0.68

%

0.68

%

0.78

%

0.86

%

ACL LHFI / LHFI (3)

1.19

%

1.24

%

1.23

%

1.05

%

0.90

%

ACL LHFI-commercial / commercial LHFI (3)

1.20

%

1.20

%

1.15

%

0.97

%

0.98

%

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

1.16

%

1.41

%

1.56

%

1.35

%

0.61

%

ACL LHFI / nonaccrual LHFI (3)

185.82

%

226.55

%

238.40

%

189.77

%

158.34

%

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

572.69

%

593.72

%

561.04

%

468.84

%

410.52

%

CAPITAL RATIOS(3)

Total equity / total assets

10.52

%

10.99

%

10.67

%

11.79

%

12.30

%

Tangible equity / tangible assets

8.34

%

8.68

%

8.37

%

9.27

%

9.72

%

Tangible equity / risk-weighted assets

11.22

%

11.01

%

11.09

%

11.05

%

11.58

%

Tier 1 leverage ratio

9.33

%

9.20

%

9.08

%

10.21

%

10.48

%

Common equity tier 1 capital ratio

11.62

%

11.36

%

11.42

%

11.35

%

11.93

%

Tier 1 risk-based capital ratio

12.11

%

11.86

%

11.94

%

11.88

%

12.48

%

Total risk-based capital ratio

14.12

%

12.88

%

13.00

%

12.78

%

13.25

%

STOCK PERFORMANCE

Market value-Close

$

27.31

$

21.41

$

24.52

$

23.30

$

34.51

Book value

$

27.45

$

26.96

$

26.39

$

26.06

$

25.87

Tangible book value

$

21.26

$

20.76

$

20.18

$

19.92

$

19.84

(1) See Note 10 - 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 TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 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 Corporation (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 fourth quarter of 2020, Trustmark recorded a negative provision for credit losses of $4.4 million and a negative credit loss expense related to off-balance sheet credit exposures of $1.1 million compared to 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 recorded during the third 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

At December 31, 2020, Trustmark had outstanding 7,398 PPP loans totaling $610.1 million (net of $12.9 million of deferred fees and costs) under the Coronavirus Aid, Relief, and Economic Security Act, which was signed into law on March 27, 2020. 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.

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:

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

December 31, 2020

(unaudited)

Quarter Ended Year Ended

FINANCIAL 12/31/ 12/31/RATIOS AND 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 2020 2019OTHER DATA

Return on 11.81 % 12.78 % 7.76 % 5.45 % 8.13 % 9.52 % 9.28 %average equity

Return onaverage 15.47 % 16.82 % 10.32 % 7.34 % 10.85 % 12.58 % 12.45 %tangible equity

Return on 1.28 % 1.37 % 0.83 % 0.66 % 1.00 % 1.05 % 1.11 %average assets

Interest margin 3.35 % 3.26 % 3.39 % 4.06 % 4.19 % 3.50 % 4.31 %- Yield - FTE

Interest margin 0.21 % 0.23 % 0.28 % 0.54 % 0.62 % 0.30 % 0.69 %- Cost

Net interest 3.15 % 3.03 % 3.12 % 3.52 % 3.56 % 3.19 % 3.62 %margin - FTE

Efficiency 65.59 % 62.19 % 62.13 % 63.50 % 68.08 % 63.35 % 66.38 %ratio (1)

Full-timeequivalent 2,797 2,807 2,798 2,761 2,844 employees



CREDIT QUALITY RATIOS (2)

Net(recoveries) 0.01 % -0.04 % -0.02 % 0.13 % 0.11 % 0.02 % 0.06 %charge-offs /average loans

Provision forcredit losses / -0.17 % 0.07 % 0.74 % 0.86 % 0.15 % 0.36 % 0.12 %average loans(3)

Nonaccrual LHFI 0.61 % 0.52 % 0.50 % 0.54 % 0.56 % / (LHFI + LHFS)

Nonperformingassets / (LHFI 0.73 % 0.68 % 0.68 % 0.79 % 0.86 % + LHFS)

Nonperformingassets / (LHFI 0.73 % 0.68 % 0.68 % 0.78 % 0.86 % + LHFS + otherreal estate)

ACL LHFI / LHFI 1.19 % 1.24 % 1.23 % 1.05 % 0.90 % (3)

ACLLHFI-commercial 1.20 % 1.20 % 1.15 % 0.97 % 0.98 % / commercialLHFI (3)

ACLLHFI-consumer /consumer and 1.16 % 1.41 % 1.56 % 1.35 % 0.61 % home mortgageLHFI (3)

ACL LHFI /nonaccrual LHFI 185.82 % 226.55 % 238.40 % 189.77 % 158.34 % (3)

ACL LHFI /nonaccrual LHFI(excl 572.69 % 593.72 % 561.04 % 468.84 % 410.52 % individuallyevaluatedloans) (3)



CAPITAL RATIOS (3)

Total equity / 10.52 % 10.99 % 10.67 % 11.79 % 12.30 % total assets

Tangible equity/ tangible 8.34 % 8.68 % 8.37 % 9.27 % 9.72 % assets

Tangible equity/ risk-weighted 11.22 % 11.01 % 11.09 % 11.05 % 11.58 % assets

Tier 1 leverage 9.33 % 9.20 % 9.08 % 10.21 % 10.48 % ratio

Common equitytier 1 capital 11.62 % 11.36 % 11.42 % 11.35 % 11.93 % ratio

Tier 1risk-based 12.11 % 11.86 % 11.94 % 11.88 % 12.48 % capital ratio

Totalrisk-based 14.12 % 12.88 % 13.00 % 12.78 % 13.25 % capital ratio



STOCK PERFORMANCE

Market $ 27.31 $ 21.41 $ 24.52 $ 23.30 $ 34.51 value-Close

Book value $ 27.45 $ 26.96 $ 26.39 $ 26.06 $ 25.87

Tangible book $ 21.26 $ 20.76 $ 20.18 $ 19.92 $ 19.84 value



(1) See Note 10 - Non-GAAP Financial Measures in the Notes to ConsolidatedFinancials for Trustmark's efficiency ratio calculation.

(2) Excludes PPP and acquired loans.

(3) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.

See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 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 Corporation (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 fourth quarter of 2020, Trustmark recorded a negative provision for credit losses of $4.4 million and a negative credit loss expense related to off-balance sheet credit exposures of $1.1 million compared to 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 recorded during the third 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

At December 31, 2020, Trustmark had outstanding 7,398 PPP loans totaling $610.1 million (net of $12.9 million of deferred fees and costs) under the Coronavirus Aid, Relief, and Economic Security Act, which was signed into law on March 27, 2020. 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.

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:

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019

SECURITIESAVAILABLE FOR SALE

U.S. Governmentagency $ 18,041 $ 19,011 $ 19,898 $ 21,190 $ 22,327 obligations

Obligations ofstates and 5,835 8,315 11,176 23,572 25,465 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 56,862 62,156 69,637 71,971 69,252 GNMA

Issued by FNMA 1,441,321 1,279,919 1,121,604 967,329 713,356 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 419,437 500,858 574,940 634,075 658,226 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 50,319 52,469 86,898 115,642 113,778 FNMA, FHLMC, orGNMA

Totalsecurities $ 1,991,815 $ 1,922,728 $ 1,884,153 $ 1,833,779 $ 1,602,404 available forsale



SECURITIES HELD TO MATURITY

U.S. Governmentagency $ - $ - $ - $ - $ 3,781 obligations

Obligations ofstates and 26,584 31,605 31,629 31,758 31,781 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 7,598 8,244 10,306 10,492 10,820 GNMA

Issued by FNMA 67,944 78,213 86,346 91,971 96,631 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 360,361 399,400 435,333 463,175 485,324 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 75,585 93,818 96,434 106,880 109,762 FNMA, FHLMC, orGNMA

Totalsecurities held $ 538,072 $ 611,280 $ 660,048 $ 704,276 $ 738,099 to maturity

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2020 ($ in thousands) (unaudited)

Note 3 - Securities Available for Sale and Held to Maturity (continued)

At December 31, 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 $8.9 million ($6.7 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 98.7% 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 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019(1)

Loans securedby real estate:

Construction,landdevelopment $ 1,309,039 $ 1,385,947 $ 1,277,277 $ 1,136,389 $ 1,162,791 and other landloans

Secured by 1-4family 1,741,132 1,775,400 1,813,525 1,852,065 1,855,913 residentialproperties

Secured bynonfarm, 2,709,026 2,707,627 2,610,392 2,575,422 2,475,245 nonresidentialproperties

Other real 1,065,964 887,792 884,815 838,573 724,480 estate secured

Commercial andindustrial 1,309,078 1,398,468 1,413,255 1,476,777 1,477,896 loans

Consumer loans 161,174 160,960 161,620 170,678 175,738

State andotherpolitical 1,000,776 935,349 931,536 938,637 967,944 subdivisionloans

Other loans 528,335 596,185 567,386 579,379 495,621

LHFI 9,824,524 9,847,728 9,659,806 9,567,920 9,335,628

ACL LHFI (117,306 ) (122,010 ) (119,188 ) (100,564 ) (84,277 )

Net LHFI $ 9,707,218 $ 9,725,718 $ 9,540,618 $ 9,467,356 $ 9,251,351

(1) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details.

The following table presents the LHFI composition by region at December 31, 2020 and reflects each region's diversified mix of loans:

December 31, 2020

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

Loans securedby real estate:

Construction,landdevelopment $ 1,309,039 $ 494,486 $ 62,963 $ 315,555 $ 30,618 $ 405,417 and other landloans

Secured by 1-4family 1,741,132 118,205 37,062 1,501,505 73,039 11,321 residentialproperties

Secured bynonfarm, 2,709,026 710,266 262,697 984,508 186,405 565,150 nonresidentialproperties

Other real 1,065,964 312,295 6,332 392,986 6,621 347,730 estate secured

Commercial andindustrial 1,309,078 199,301 22,774 611,743 271,940 203,320 loans

Consumer loans 161,174 23,402 6,641 107,133 20,062 3,936

State andotherpolitical 1,000,776 87,468 35,179 670,883 41,698 165,548 subdivisionloans

Other loans 528,335 81,631 14,247 349,217 61,709 21,531

Loans $ 9,824,524 $ 2,027,054 $ 447,895 $ 4,933,530 $ 692,092 $ 1,723,953



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

Lots $ 74,177 $ 24,842 $ 12,945 $ 28,546 $ 1,231 $ 6,613

Development 94,443 37,537 315 33,059 12,505 11,027

Unimproved 99,857 30,260 15,863 24,742 10,746 18,246 land

1-4 family 245,579 112,709 23,641 71,815 5,061 32,353 construction

Other 794,983 289,138 10,199 157,393 1,075 337,178 construction

Construction,landdevelopment $ 1,309,039 $ 494,486 $ 62,963 $ 315,555 $ 30,618 $ 405,417 and other landloans



TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2020 ($ in thousands) (unaudited)

Note 4 - Loan Composition (continued)

December 31, 2020

Mississippi Tennessee (Central (Memphis, Total Alabama Florida and TN and Texas Southern Northern Regions) MS Regions)



LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION

Non-owner occupied:

Retail $ 389,905 $ 149,401 $ 31,965 $ 108,724 $ 26,257 $ 73,558

Office 228,094 64,625 26,697 68,056 12,122 56,594

Hotel/motel 341,972 146,542 91,819 52,883 39,728 11,000

Mini-storage 130,995 23,499 2,344 61,359 397 43,396

Industrial 183,795 47,135 15,805 40,308 1,087 79,460

Health care 46,597 23,088 2,462 18,462 389 2,196

Convenience 16,148 3,304 - 3,351 383 9,110 stores

Nursing homes/ 112,256 35,941 - 31,456 6,923 37,936 senior living

Other 71,670 4,505 6,715 24,133 8,450 27,867

Total non-owner 1,521,432 498,040 177,807 408,732 95,736 341,117 occupied loans



Owner-occupied:

Office 188,960 42,679 45,651 49,120 8,814 42,696

Churches 105,832 22,604 6,768 51,499 10,231 14,730

Industrial 161,050 13,732 3,097 50,969 16,362 76,890 warehouses

Health care 136,246 24,485 4,466 94,695 2,341 10,259

Convenience 122,155 18,744 9,516 65,919 556 27,420 stores

Retail 73,832 15,308 6,574 26,447 10,653 14,850

Restaurants 59,856 4,255 4,446 34,681 15,097 1,377

Auto 54,805 7,542 279 21,009 25,975 - dealerships

Nursing homes/ 175,442 57,846 - 117,596 - - senior living

Other 109,416 5,031 4,093 63,841 640 35,811

Totalowner-occupied 1,187,594 212,226 84,890 575,776 90,669 224,033 loans

Loans securedby nonfarm, $ 2,709,026 $ 710,266 $ 262,697 $ 984,508 $ 186,405 $ 565,150 nonresidentialproperties

Note 5 - Subordinated Notes Payable

During the fourth quarter of 2020, Trustmark agreed to issue and sell $125.0 million aggregate principal amount of its 3.625% Fixed-to-Floating Rate Subordinated Notes (the Notes) due December 1, 2030. The Notes were sold at an underwriting discount of 1.2%, resulting in net proceeds to Trustmark of $123.5 million before deducting offering expenses of $600 thousand. At December 31, 2020, the carrying amount of the Notes was $122.9 million. The Notes are unsecured obligations and are subordinated in right of payment to all our existing and future senior indebtedness, whether secured or unsecured. The Notes are obligations of Trustmark only and are not obligations of, and are not guaranteed by, any of its subsidiaries, including Trustmark National Bank. From the date of issuance until November 30, 2025, the Notes bear interest at a fixed rate of 3.625% per year, payable semi-annually in arrears on June 1 and December 1 of each year. Beginning December 1, 2025, the Notes will bear interest at a floating rate per year equal to the Benchmark rate, which is the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 338.7 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. The Notes qualify as Tier 2 capital for Trustmark. The Notes may be redeemed at Trustmark's option under certain circumstances. Trustmark intends to use the net proceeds for general corporate purposes.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2020 ($ in thousands) (unaudited)

Note 6 - 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 Year Ended

12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 12/31/ 12/31/ 2020 2020 2020 2020 2019 2020 2019

Securities - 1.62 % 2.02 % 2.16 % 2.25 % 2.24 % 2.01 % 2.25 %taxable

Securities - 3.89 % 3.80 % 3.58 % 3.85 % 3.92 % 3.78 % 3.81 %nontaxable

Securities - 1.65 % 2.05 % 2.18 % 2.28 % 2.27 % 2.03 % 2.28 %total

PPP loans 6.76 % 2.84 % 2.65 % - - 4.12 % -

Loans - LHFI & 3.75 % 3.81 % 4.03 % 4.54 % 4.67 % 4.03 % 4.87 %LHFS

Acquired loans - - - - 10.90 % - 9.42 %

Loans - total 3.99 % 3.73 % 3.93 % 4.54 % 4.72 % 4.03 % 4.91 %

Fed funds sold &reverse - 1.32 % - - 2.16 % 0.45 % 2.52 %repurchases

Other earning 0.12 % 0.18 % 0.11 % 1.59 % 1.57 % 0.24 % 2.23 %assets

Total earning 3.35 % 3.26 % 3.39 % 4.06 % 4.19 % 3.50 % 4.31 %assets



Interest-bearing 0.27 % 0.31 % 0.37 % 0.71 % 0.85 % 0.40 % 0.93 %deposits

Fed fundspurchased & 0.13 % 0.15 % 0.16 % 1.02 % 1.21 % 0.50 % 1.28 %repurchases

Other borrowings 1.61 % 1.19 % 2.09 % 2.35 % 2.32 % 1.72 % 2.29 %

Totalinterest-bearing 0.30 % 0.33 % 0.39 % 0.75 % 0.88 % 0.43 % 0.96 %liabilities



Net interest 3.15 % 3.03 % 3.12 % 3.52 % 3.56 % 3.19 % 3.62 %margin

Net interestmargin excluding 2.91 % 3.05 % 3.14 % 3.52 % 3.52 % 3.15 % 3.58 %PPP and acquiredloans

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 2.91% for the fourth quarter of 2020, a decrease of 14 basis points when compared to the third 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 7 - 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 negative ineffectiveness of $909 thousand during the fourth quarter of 2020.

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

Quarter Ended Year Ended

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019

Mortgageservicing $ 6,227 $ 5,742 $ 5,893 $ 5,819 $ 5,854 $ 23,681 $ 22,883 income, net

Change in fairvalue-MSR from (5,177 ) (4,590 ) (4,214 ) (2,607 ) (2,950 ) (16,588 ) (11,835 )runoff

Gain on sales 28,014 34,472 34,078 14,339 7,984 110,903 30,296 of loans, net

Mortgagebanking income 29,064 35,624 35,757 17,551 10,888 117,996 41,344 before hedgeineffectiveness

Change in fairvalue-MSR from 951 60 (3,159 ) (23,999 ) 4,048 (26,147 ) (21,078 )market changes

Change in fairvalue of (1,860 ) 755 1,147 33,931 (7,022 ) 33,973 9,556 derivatives

Net positive(negative) (909 ) 815 (2,012 ) 9,932 (2,974 ) 7,826 (11,522 )hedgeineffectiveness

Mortgage $ 28,155 $ 36,439 $ 33,745 $ 27,483 $ 7,914 $ 125,822 $ 29,822 banking, net

Note 8 - 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.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2020 ($ in thousands) (unaudited)

Note 9 - Other Noninterest Income and Expense

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

Quarter Ended Year Ended

12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 12/31/ 12/31/ 2020 2020 2020 2020 2019 2020 2019

Partnershipamortizationfor tax $ (1,877 ) $ (1,457 ) $ (1,205 ) $ (1,161 ) $ (1,630 ) $ (5,700 ) $ (7,644 )creditpurposes

Increase inlifeinsurance 1,708 1,755 1,696 1,722 1,802 6,881 7,202 cashsurrendervalue

Othermiscellaneous 2,707 1,303 1,722 1,746 3,279 7,478 10,251 income

Total other, $ 2,538 $ 1,601 $ 2,213 $ 2,307 $ 3,451 $ 8,659 $ 9,809 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 Year Ended

12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 12/31/ 12/31/ 2020 2020 2020 2020 2019 2020 2019

Loan expense $ 3,696 $ 3,485 $ 2,954 $ 2,799 $ 2,968 $ 12,934 $ 11,554

Amortization of 752 752 736 812 1,002 3,052 4,116 intangibles

FDIC assessment 1,500 1,410 1,590 1,590 1,450 6,090 6,444 expense

Other miscellaneous 9,942 8,951 7,985 9,552 8,956 36,430 32,068 expense

Total other expense $ 15,890 $ 14,598 $ 13,265 $ 14,753 $ 14,376 $ 58,506 $ 54,182

Note 10 - 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 December 31, 2020 ($ in thousands except per share data) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

Quarter Ended Year Ended

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019

TANGIBLE EQUITY

AVERAGE BALANCES

Total shareholders' $ 1,725,035 $ 1,694,903 $ 1,665,716 $ 1,640,070 $ 1,656,605 $ 1,681,587 $ 1,622,013 equity

Less: Goodwill (385,270 ) (385,270 ) (383,081 ) (380,671 ) (379,627 ) (383,582 ) (379,627 )

Identifiable (7,803 ) (8,550 ) (7,834 ) (8,049 ) (7,882 ) (8,060 ) (9,212 )intangible assets

Total average $ 1,331,962 $ 1,301,083 $ 1,274,801 $ 1,251,350 $ 1,269,096 $ 1,289,945 $ 1,233,174 tangible equity



PERIOD END BALANCES

Total shareholders' $ 1,741,117 $ 1,710,041 $ 1,673,944 $ 1,652,399 $ 1,660,702 equity

Less: Goodwill (385,270 ) (385,270 ) (385,270 ) (381,717 ) (379,627 )

Identifiable (7,390 ) (8,142 ) (8,895 ) (7,537 ) (7,343 ) intangible assets

Total tangible equity (a) $ 1,348,457 $ 1,316,629 $ 1,279,779 $ 1,263,145 $ 1,273,732



TANGIBLE ASSETS

Total assets $ 16,551,840 $ 15,558,162 $ 15,692,079 $ 14,019,829 $ 13,497,877

Less: Goodwill (385,270 ) (385,270 ) (385,270 ) (381,717 ) (379,627 )

Identifiable (7,390 ) (8,142 ) (8,895 ) (7,537 ) (7,343 ) intangible assets

Total tangible assets (b) $ 16,159,180 $ 15,164,750 $ 15,297,914 $ 13,630,575 $ 13,110,907

Risk-weighted assets (c) $ 12,017,378 $ 11,963,269 $ 11,539,157 $ 11,427,297 $ 11,002,877



NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION

Net income $ 51,217 $ 54,440 $ 32,150 $ 22,218 $ 33,946 $ 160,025 $ 150,460

Plus: Intangibleamortization net of 564 564 552 609 752 2,289 3,088 tax

Net income adjusted for $ 51,781 $ 55,004 $ 32,702 $ 22,827 $ 34,698 $ 162,314 $ 153,548 intangible amortization

Period end common (d) 63,424,526 63,423,820 63,422,439 63,396,912 64,200,111 shares outstanding



TANGIBLE COMMON EQUITY MEASUREMENTS

Return on average 15.47 % 16.82 % 10.32 % 7.34 % 10.85 % 12.58 % 12.45 %tangible equity (1)

Tangible equity/ (a)/ 8.34 % 8.68 % 8.37 % 9.27 % 9.72 % tangible assets (b)

Tangible equity/ (a)/ 11.22 % 11.01 % 11.09 % 11.05 % 11.58 % risk-weighted assets (c)

(a)/Tangible book value (d) $ 21.26 $ 20.76 $ 20.18 $ 19.92 $ 19.84 *1,000



COMMON EQUITY TIER 1 CAPITAL (CET1)

Total shareholders' $ 1,741,117 $ 1,710,041 $ 1,673,944 $ 1,652,399 $ 1,660,702 equity

CECL transition 31,199 32,647 32,693 26,476 - adjustment (3)

AOCI-related 1,051 (5,684 ) (10,565 ) (7,698 ) 23,600 adjustments

CET1 adjustments and deductions:

Goodwill net of associateddeferred tax liabilities (371,333 ) (371,345 ) (371,342 ) (367,825 ) (365,738 ) (DTLs)

Other adjustments and (6,190 ) (6,770 ) (7,352 ) (6,269 ) (5,896 ) deductions for CET1 (2)

CET1 capital (e) 1,395,844 1,358,889 1,317,378 1,297,083 1,312,668

Additional tier 1 capitalinstruments plus related 60,000 60,000 60,000 60,000 60,000 surplus

Tier 1 capital $ 1,455,844 $ 1,418,889 $ 1,377,378 $ 1,357,083 $ 1,372,668



Common equity tier 1 (e)/ 11.62 % 11.36 % 11.42 % 11.35 % 11.93 % capital ratio (c)

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

(2) Includes other intangible assets, net of DTLs, disallowed deferred taxassets (DTAs), threshold deductions and transition adjustments, as applicable.(3) See Note 1 - Recently Effective Accounting Pronouncements in the Notes toConsolidated Financials for additional details. TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2020 ($ in thousands except per share data) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

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

The following table presents pre-provision net revenue (PPNR) during the periods presented:

Quarter Ended Year Ended

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019



Net interest $ 111,378 $ 106,207 $ 105,000 $ 103,952 $ 105,591 $ 426,537 $ 426,589 income (GAAP)

Noninterest 66,117 73,701 69,511 65,264 47,578 274,593 187,045 income (GAAP)

Pre-provision (a) $ 177,495 $ 179,908 $ 174,511 $ 169,216 $ 153,169 $ 701,130 $ 613,634 revenue



Noninterest $ 118,807 $ 113,959 $ 118,659 $ 123,810 $ 110,027 $ 475,235 $ 429,002 expense (GAAP)

VoluntaryLess: early - - - (4,375 ) - (4,375 ) - retirement program Credit loss expense related to 1,087 3,004 (6,242 ) (6,783 ) - (8,934 ) - off-balance sheet credit exposuresAdjustednoninterest (b) $ 119,894 $ 116,963 $ 112,417 $ 112,652 $ 110,027 $ 461,926 $ 429,002 expense - PPNR(Non-GAAP)



(a)PPNR (Non-GAAP) - $ 57,601 $ 62,945 $ 62,094 $ 56,564 $ 43,142 $ 239,204 $ 184,632 (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 Year Ended

12/31/2020 12/31/2019 12/31/2020 12/31/2019

Amount Diluted Amount Diluted Amount Diluted Amount Diluted EPS EPS EPS EPS



Net Income $ 51,217 $ 0.81 $ 33,946 $ 0.53 $ 160,025 $ 2.51 $ 150,460 $ 2.32 (GAAP)



Significantnon-routinetransactions (net oftaxes):



Voluntaryearly - - - - 3,281 0.05 - - retirementprogram

Net Incomeadjusted for significant

non-routinetransactions $ 51,217 $ 0.81 $ 33,946 $ 0.53 $ 163,306 $ 2.56 $ 150,460 $ 2.32 (Non-GAAP)



Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted

(GAAP) (Non-GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP)

Return onaverage 11.81 % n/a 8.13 % n/a 9.52 % 9.69 % 9.28 % n/a equity

Return onaverage 15.47 % n/a 10.85 % n/a 12.58 % 12.81 % 12.45 % n/a tangibleequity

Return onaverage 1.28 % n/a 1.00 % n/a 1.05 % 1.07 % 1.11 % n/a assets



n/a - not applicable



TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2020 ($ in thousands) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

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

Quarter Ended Year Ended

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019



Total noninterest $ 118,807 $ 113,959 $ 118,659 $ 123,810 $ 110,027 $ 475,235 $ 429,002 expense (GAAP)

Other realLess: estate expense, 812 (1,203 ) (271 ) (1,294 ) (1,491 ) (1,956 ) (3,906 ) net

Amortization of (752 ) (752 ) (736 ) (812 ) (1,002 ) (3,052 ) (4,116 ) intangibles

Voluntary early retirement - - - (4,375 ) - (4,375 ) - program

Credit loss expense related 1,087 3,004 (6,242 ) (6,783 ) - (8,934 ) - to off-balance sheet exposures

Charitable contributions resulting in (375 ) (375 ) (375 ) (375 ) - (1,500 ) - state tax credits

Adjustednoninterest (c) $ 119,579 $ 114,633 $ 111,035 $ 110,171 $ 107,534 $ 455,418 $ 420,980 expense(Non-GAAP)



Net interest income $ 111,378 $ 106,207 $ 105,000 $ 103,952 $ 105,591 $ 426,537 $ 426,589 (GAAP)

TaxAdd: equivalent 2,939 2,969 3,007 3,108 3,149 12,023 12,877 adjustment

Net interestincome-FTE (a) $ 114,317 $ 109,176 $ 108,007 $ 107,060 $ 108,740 $ 438,560 $ 439,466 (Non-GAAP)



Noninterest income $ 66,117 $ 73,701 $ 69,511 $ 65,264 $ 47,578 $ 274,593 $ 187,045 (GAAP)

PartnershipAdd: amortization for 1,877 1,457 1,205 1,161 1,630 5,700 7,644 tax credit purposes

Adjustednoninterest (b) $ 67,994 $ 75,158 $ 70,716 $ 66,425 $ 49,208 $ 280,293 $ 194,689 income (Non-GAAP)



Adjusted revenue (a)+ $ 182,311 $ 184,334 $ 178,723 $ 173,485 $ 157,948 $ 718,853 $ 634,155 (Non-GAAP) (b)



(c)/Efficiency ratio ((a) 65.59 % 62.19 % 62.13 % 63.50 % 68.08 % 63.35 % 66.38 %(Non-GAAP) + (b))

View source version on businesswire.com: https://www.businesswire.com/news/home/20210126006001/en/

CONTACT: Trustmark Investor Contacts: Louis E. Greer Treasurer and Principal Financial Officer 601-208-2310

CONTACT: F. Joseph Rein, Jr. Senior Vice President 601-208-6898

CONTACT: Trustmark Media Contact: Melanie A. Morgan Senior Vice President 601-208-2979