Business Wire | Apr 27, 2021 04:31PM EDT

Trustmark Corporation Announces First Quarter 2021 Financial Results

Apr. 27, 2021

JACKSON, Miss.--(BUSINESS WIRE)--Apr. 27, 2021--Trustmark Corporation (Nasdaq:TRMK) reported net income of $52.0 million in the first quarter of 2021, representing diluted earnings per share of $0.82. Net income in the first quarter produced a return on average tangible equity of 15.56% and a return on average assets of 1.26%. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2021, to shareholders of record on June 1, 2021.

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First Quarter Highlights

* Supported local businesses by originating 4,774 loans totaling $301.5 million (net of $16.5 million in deferred fees and costs) from the SBA's Paycheck Protection Program (PPP) during the quarter * Mortgage loan production totaled $766.6 million, down 2.8% from the prior quarter and an increase of 67.7% from levels one year earlier * Provision for credit losses totaled a negative $10.5 million due to improved credit loss expectations

Duane A. Dewey, President and CEO, stated, "Our first quarter financial performance reflects solid loan and deposit growth, as well as continued increases in our insurance and wealth management businesses. Our mortgage banking revenue remained strong following record-setting levels in the prior quarter. Improvement in the economic outlook resulted in negative provision and expense for credit losses, which also contributed to earnings. We continue to focus on efficiency enhancements throughout the organization, including investments in technology to better serve customers as well as rationalization of the branch network. Trustmark remains well-positioned to serve and expand our customer base and create long-term value for our shareholders."

Balance Sheet Management

* Loans held for investment (HFI) totaled $10.0 billion, up 1.6% from the prior quarter and 4.3% year-over-year * Deposits totaled $14.4 billion, an increase of 2.4% linked-quarter and 24.3% year-over-year * Maintained strong capital position with CET1 ratio of 11.71% and total risk-based capital ratio of 14.07%

Loans HFI totaled $10.0 billion at March 31, 2021, reflecting an increase of $159.2 million, or 1.6%, linked-quarter and $415.8 million, or 4.3%, year-over-year. The linked-quarter growth reflects increases in other real estate secured loans and loans secured by nonfarm, nonresidential properties, which were principally the result of the migration of construction loans as projects were completed. Trustmark's loan portfolio is well-diversified by loan type and geography.

Deposits totaled $14.4 billion at March 31, 2021, up $334.7 million, or 2.4%, from the prior quarter and $2.8 billion, or 24.3%, year-over-year. Trustmark maintains a strong liquidity position as loans HFI represented 69.4% of total deposits at March 31, 2021. Noninterest-bearing deposits represented 32.7% of total deposits at the end of the first quarter, compared to 31.0% in the prior quarter. Interest-bearing deposit costs totaled 0.22% for the first quarter, a decrease of 5 basis points from the prior quarter. The total cost of interest-bearing liabilities was 0.28% for the first quarter of 2021, a decrease of 2 basis points from the prior quarter.

During the first quarter, Trustmark repurchased $4.2 million, or approximately 145 thousand of its common shares in open market transactions. At March 31, 2021, Trustmark had $95.8 million in remaining authority under its existing stock repurchase program, which expires December 31, 2021. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At March 31, 2021, Trustmark's tangible equity to tangible assets ratio was 8.30%, while its total risk-based capital ratio was 14.07%. Tangible book value per share was $21.59 at March 31, 2021, up 8.4% year-over-year.

Credit Quality

* Allowance for credit losses (ACL) represented 437.08% of nonaccrual loans, excluding individually evaluated loans, at March 31, 2021 * Recoveries exceeded charge-offs by $2.4 million in the first quarter * Loans remaining under a COVID-19 related concession represented approximately 28 basis points of loans HFI at March 31, 2021

Nonaccrual loans totaled $63.5 million at March 31, 2021, up $386 thousand from the prior quarter and $10.5 million year-over-year. Other real estate totaled $10.7 million, reflecting a $1.0 million decrease from the prior quarter and a decline of $14.2 million year-over-year. Collectively, nonperforming assets totaled $74.2 million at March 31, 2021, reflecting a linked-quarter decrease of $614 thousand and a year-over-year decrease of $3.7 million.

The provision for credit losses was a negative $10.5 million in the first quarter. Negative provisioning was primarily driven by decreases in quantitative reserves as a result of an improving economic forecast.

Allocation of Trustmark's $109.2 million allowance for credit losses on loans HFI represented 1.13% of commercial loans and 0.95% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.09% at March 31, 2021. Management believes the level of the ACL is commensurate with the present risk in the loan portfolio.

Revenue Generation

* Mortgage banking revenue totaled $20.8 million in the first quarter, reflecting tighter spreads and reduced gains on sale of mortgage loans in the secondary market * Insurance commissions increased 22.1% from the prior quarter and wealth management revenue rose 7.4% over the same period

Revenue in the first quarter totaled $162.9 million, down 8.2% from the prior quarter and 3.7% from the same quarter in the prior year. The linked-quarter decrease primarily reflects lower interest income and fees from PPP loans and loans HFI and lower net gains on sales of mortgage loans.

Net interest income (FTE) in the first quarter totaled $105.2 million, resulting in a net interest margin of 2.81%, down 34 basis points from the prior quarter. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.99% for the first quarter, a decrease of 10 basis points when compared to the prior quarter. 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 first quarter totaled $60.6 million, a decrease of $5.5 million from the prior quarter and $4.7 million year-over-year. The linked-quarter increases in insurance, wealth management and bank card revenue were more than offset by declines in mortgage banking revenue and service charges on deposit accounts. Mortgage loan production in the first quarter totaled $766.6 million, down 2.8% from the record level in the prior quarter and an increase of 67.7% year-over-year. Mortgage banking revenue totaled $20.8 million in the first quarter, a decrease of $7.4 million from the prior quarter and $6.7 million year-over-year. The linked-quarter decline is principally attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market.

Insurance revenue totaled $12.4 million in the first quarter, up 22.1%, or $2.2 million, from the fourth quarter of 2020 and 7.7%, or $895 thousand, year-over-year. The linked-quarter increase primarily reflects growth in property and casualty commissions. Wealth management revenue in the first quarter totaled $8.4 million, an increase of $578 thousand, or 7.4%, from the prior quarter and relatively unchanged year-over-year. The linked-quarter growth reflects both higher trust management fees and brokerage and investment services revenue.

Bank card and other fees increased $365 thousand, or 4.0%, from the prior quarter and $4.1 million, or 76.9%, year-over-year, reflecting higher customer derivative revenue. Service charges on deposit accounts decreased $927 thousand, or 11.2%, from the prior quarter and $2.7 million, or 26.7%, year-over-year. The decline is due largely to reduced NSF/OD occurrences attributable in part to stimulus programs to address the COVID-19 pandemic.

Noninterest Expense

* Noninterest expense totaled $112.2 million in first quarter, down 5.6% from the prior quarter * Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses, and credit losses for off-balance sheet credit exposures, increased $629 thousand, or 0.5%, from the prior quarter; please refer to the Consolidated Financial Information, Footnote 8- Non-GAAP Financial Measures * Continued to realign delivery channels to reflect changing customer preferences

Adjusted noninterest expense in the first quarter was $120.2 million, up $629 thousand, or 0.5%, from the prior quarter. Salaries and employee benefits increased $1.5 million linked-quarter principally due to payroll taxes and increases for performance-based commissions. Services and fees increased $157 thousand and net occupancy-premises expense grew $179 thousand during the first quarter compared to the prior quarter.

Credit loss expense related to off-balance sheet credit exposures was a negative $9.4 million in the first quarter, reflecting the improvement of the macroeconomic factors used to determine the necessary reserves for off-balance sheet credit exposures. Other real estate expense, net totaled $324 thousand for the first quarter compared to a negative $812 thousand for the fourth quarter of 2020, reflecting lower net gains on sale of other real estate.

Trustmark continued to invest in technology to enhance efficiency. Digital transformation initiatives, including a completely redesigned, state-of-the-art website to promote engagement and enhance the customer experience, position Trustmark for additional growth. During the first quarter, Trustmark continued to realign delivery channels and closed seven offices, reflecting changing customer preferences and the continued migration to mobile and digital banking channels. Additionally, two new offices were opened, one each in the Memphis, TN MSA and the Jackson, MS MSA. Each of these offices features a design that integrates myTeller(r) interactive teller machine technology as well as provides enhanced areas for customer interaction.

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

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 28, 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, May 12, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10153927.

Trustmark is a financial services company providing banking and financial solutions through 181 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 could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, 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 System (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 Securities and Exchange Commission (SEC).

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

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited) Linked Quarter Year over YearQUARTERLY AVERAGE 3/31/2021 12/31/2020 3/31/2020 $ Change % $ Change %BALANCES Change ChangeSecurities $ 2,098,089 $ 1,902,162 $ 1,620,422 $ 195,927 10.3 % $ 477,667 29.5 %AFS-taxableSecurities 5,190 5,206 22,056 (16 ) -0.3 % (16,866 ) -76.5 %AFS-nontaxableSecurities 489,260 550,563 694,740 (61,303 ) -11.1 % (205,480 ) -29.6 %HTM-taxableSecurities 24,070 24,752 25,673 (682 ) -2.8 % (1,603 ) -6.2 %HTM-nontaxableTotal securities 2,616,609 2,482,683 2,362,891 133,926 5.4 % 253,718 10.7 %

Paycheck protection 598,139 875,098 - (276,959 ) -31.6 % 598,139 n/m program loans (PPP)Loans (includes 10,316,319 10,231,671 9,678,174 84,648 0.8 % 638,145 6.6 %loans held forsale)Fed funds sold and 136 303 164 (167 ) -55.1 % (28 ) -17.1 %reverse repurchasesOther earning 1,667,906 860,540 187,327 807,366 93.8 % 1,480,579 n/m assetsTotal earning 15,199,109 14,450,295 12,228,556 748,814 5.2 % 2,970,553 24.3 %assetsAllowance forcredit losses (119,557 ) (124,088 ) (85,015 ) 4,531 3.7 % (34,542 ) -40.6 %(ACL), loans held for investment(LHFI)Other assets 1,601,250 1,620,694 1,498,725 (19,444 ) -1.2 % 102,525 6.8 %

Total assets $ 16,680,802 $ 15,946,901 $ 13,642,266 $ 733,901 4.6 % $ 3,038,536 22.3 %

Interest-bearing $ 3,743,651 $ 3,649,590 $ 3,184,134 $ 94,061 2.6 % $ 559,517 17.6 %demand depositsSavings deposits 4,659,037 4,350,783 3,646,936 308,254 7.1 % 1,012,101 27.8 %

Time deposits 1,371,830 1,436,677 1,617,307 (64,847 ) -4.5 % (245,477 ) -15.2 %

Total 9,774,518 9,437,050 8,448,377 337,468 3.6 % 1,326,141 15.7 %interest-bearingdepositsFed funds purchased 166,909 170,474 247,513 (3,565 ) -2.1 % (80,604 ) -32.6 %and repurchasesOther borrowings 166,926 173,525 85,279 (6,599 ) -3.8 % 81,647 95.7 %

Subordinated notes 122,875 42,828 - 80,047 n/m 122,875 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesTotal 10,293,084 9,885,733 8,843,025 407,351 4.1 % 1,450,059 16.4 %interest-bearingliabilitiesNoninterest-bearing 4,363,559 4,100,849 2,910,951 262,710 6.4 % 1,452,608 49.9 %depositsOther liabilities 264,808 235,284 248,220 29,524 12.5 % 16,588 6.7 %

Total liabilities 14,921,451 14,221,866 12,002,196 699,585 4.9 % 2,919,255 24.3 %

Shareholders' 1,759,351 1,725,035 1,640,070 34,316 2.0 % 119,281 7.3 %equityTotal liabilities $ 16,680,802 $ 15,946,901 $ 13,642,266 $ 733,901 4.6 % $ 3,038,536 22.3 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited)Linked QuarterYear over YearPERIOD END BALANCES3/31/202112/31/20203/31/2020$ Change% Change$ Change% ChangeCash and due from banks$

1,774,541

$

1,952,504

$

404,341

$

(177,963

)

-9.1

%

$

1,370,200

n/m

Fed funds sold and reverse repurchases-

50

2,000

(50

)

-100.0

%

(2,000

)

-100.0

%

Securities available for sale2,337,676

1,991,815

1,833,779

345,861

17.4

%

503,897

27.5

%

Securities held to maturity493,738

538,072

704,276

(44,334

)

-8.2

%

(210,538

)

-29.9

%

PPP loans679,725

610,134

-

69,591

11.4

%

679,725

n/m

Loans held for sale (LHFS)412,999

446,951

325,389

(33,952

)

-7.6

%

87,610

26.9

%

Loans held for investment (LHFI)9,983,704

9,824,524

9,567,920

159,180

1.6

%

415,784

4.3

%

ACL LHFI(109,191

)

(117,306

)

(100,564

)

8,115

6.9

%

(8,627

)

-8.6

%

Net LHFI9,874,513

9,707,218

9,467,356

167,295

1.7

%

407,157

4.3

%

Premises and equipment, net199,098

194,278

190,179

4,820

2.5

%

8,919

4.7

%

Mortgage servicing rights83,035

66,464

56,437

16,571

24.9

%

26,598

47.1

%

Goodwill384,237

385,270

381,717

(1,033

)

-0.3

%

2,520

0.7

%

Identifiable intangible assets6,724

7,390

7,537

(666

)

-9.0

%

(813

)

-10.8

%

Other real estate10,651

11,651

24,847

(1,000

)

-8.6

%

(14,196

)

-57.1

%

Operating lease right-of-use assets33,704

30,901

30,839

2,803

9.1

%

2,865

9.3

%

Other assets587,672

609,142

591,132

(21,470

)

-3.5

%

(3,460

)

-0.6

%

Total assets$

16,878,313

$

16,551,840

$

14,019,829

$

326,473

2.0

%

$

2,858,484

20.4

%

Deposits:Noninterest-bearing$

4,705,991

$

4,349,010

$

2,977,058

$

356,981

8.2

%

$

1,728,933

58.1

%

Interest-bearing9,677,449

9,699,754

8,598,706

(22,305

)

-0.2

%

1,078,743

12.5

%

Total deposits14,383,440

14,048,764

11,575,764

334,676

2.4

%

2,807,676

24.3

%

Fed funds purchased and repurchases160,991

164,519

421,821

(3,528

)

-2.1

%

(260,830

)

-61.8

%

Other borrowings145,994

168,252

84,230

(22,258

)

-13.2

%

61,764

73.3

%

Subordinated notes122,877

122,921

-

(44

)

0.0

%

122,877

n/m

Junior subordinated debt securities61,856

61,856

61,856

-

0.0

%

-

0.0

%

ACL on off-balance sheet credit exposures29,205

38,572

36,421

(9,367

)

-24.3

%

(7,216

)

-19.8

%

Operating lease liabilities35,389

32,290

32,055

3,099

9.6

%

3,334

10.4

%

Other liabilities178,856

173,549

155,283

5,307

3.1

%

23,573

15.2

%

Total liabilities15,118,608

14,810,723

12,367,430

307,885

2.1

%

2,751,178

22.2

%

Common stock13,209

13,215

13,209

(6

)

0.0

%

-

0.0

%

Capital surplus229,892

233,120

229,403

(3,228

)

-1.4

%

489

0.2

%

Retained earnings1,533,110

1,495,833

1,402,089

37,277

2.5

%

131,021

9.3

%

Accum other comprehensive income (loss), net of tax(16,506

)

(1,051

)

7,698

(15,455

)

n/m

(24,204

)

n/m

Total shareholders' equity1,759,705

1,741,117

1,652,399

18,588

1.1

%

107,306

6.5

%

Total liabilities and equity$

16,878,313

$

16,551,840

$

14,019,829

$

326,473

2.0

%

$

2,858,484

20.4

%

n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited) Linked Quarter Year over YearPERIOD END BALANCES 3/31/2021 12/31/2020 3/31/2020 $ Change % Change $ Change % ChangeCash and due from $ 1,774,541 $ 1,952,504 $ 404,341 $ (177,963 ) -9.1 % $ 1,370,200 n/m banksFed funds sold and - 50 2,000 (50 ) -100.0 % (2,000 ) -100.0 %reverse repurchasesSecurities 2,337,676 1,991,815 1,833,779 345,861 17.4 % 503,897 27.5 %available for saleSecurities held to 493,738 538,072 704,276 (44,334 ) -8.2 % (210,538 ) -29.9 %maturityPPP loans 679,725 610,134 - 69,591 11.4 % 679,725 n/m

Loans held for sale 412,999 446,951 325,389 (33,952 ) -7.6 % 87,610 26.9 %(LHFS)Loans held for 9,983,704 9,824,524 9,567,920 159,180 1.6 % 415,784 4.3 %investment (LHFI)ACL LHFI (109,191 ) (117,306 ) (100,564 ) 8,115 6.9 % (8,627 ) -8.6 %

Net LHFI 9,874,513 9,707,218 9,467,356 167,295 1.7 % 407,157 4.3 %

Premises and 199,098 194,278 190,179 4,820 2.5 % 8,919 4.7 %equipment, netMortgage servicing 83,035 66,464 56,437 16,571 24.9 % 26,598 47.1 %rightsGoodwill 384,237 385,270 381,717 (1,033 ) -0.3 % 2,520 0.7 %

Identifiable 6,724 7,390 7,537 (666 ) -9.0 % (813 ) -10.8 %intangible assetsOther real estate 10,651 11,651 24,847 (1,000 ) -8.6 % (14,196 ) -57.1 %

Operating lease 33,704 30,901 30,839 2,803 9.1 % 2,865 9.3 %right-of-use assetsOther assets 587,672 609,142 591,132 (21,470 ) -3.5 % (3,460 ) -0.6 %

Total assets $ 16,878,313 $ 16,551,840 $ 14,019,829 $ 326,473 2.0 % $ 2,858,484 20.4 %

Deposits:Noninterest-bearing $ 4,705,991 $ 4,349,010 $ 2,977,058 $ 356,981 8.2 % $ 1,728,933 58.1 %

Interest-bearing 9,677,449 9,699,754 8,598,706 (22,305 ) -0.2 % 1,078,743 12.5 %

Total deposits 14,383,440 14,048,764 11,575,764 334,676 2.4 % 2,807,676 24.3 %

Fed funds purchased 160,991 164,519 421,821 (3,528 ) -2.1 % (260,830 ) -61.8 %and repurchasesOther borrowings 145,994 168,252 84,230 (22,258 ) -13.2 % 61,764 73.3 %

Subordinated notes 122,877 122,921 - (44 ) 0.0 % 122,877 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesACL on off-balance 29,205 38,572 36,421 (9,367 ) -24.3 % (7,216 ) -19.8 %sheet creditexposuresOperating lease 35,389 32,290 32,055 3,099 9.6 % 3,334 10.4 %liabilitiesOther liabilities 178,856 173,549 155,283 5,307 3.1 % 23,573 15.2 %

Total liabilities 15,118,608 14,810,723 12,367,430 307,885 2.1 % 2,751,178 22.2 %

Common stock 13,209 13,215 13,209 (6 ) 0.0 % - 0.0 %

Capital surplus 229,892 233,120 229,403 (3,228 ) -1.4 % 489 0.2 %

Retained earnings 1,533,110 1,495,833 1,402,089 37,277 2.5 % 131,021 9.3 %

Accum othercomprehensive (16,506 ) (1,051 ) 7,698 (15,455 ) n/m (24,204 ) n/m income (loss), net of taxTotal shareholders' 1,759,705 1,741,117 1,652,399 18,588 1.1 % 107,306 6.5 %equityTotal liabilities $ 16,878,313 $ 16,551,840 $ 14,019,829 $ 326,473 2.0 % $ 2,858,484 20.4 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands except per share data)(unaudited)Quarter EndedLinked QuarterYear over YearINCOME STATEMENTS3/31/202112/31/20203/31/2020$ Change% Change$ Change% ChangeInterest and fees on LHFS & LHFI-FTE$

93,394

$

96,453

$

109,357

$

(3,059

)

-3.2

%

$

(15,963

)

-14.6

%

Interest and fees on PPP loans9,241

14,870

-

(5,629

)

-37.9

%

9,241

n/m

Interest on securities-taxable8,938

9,998

12,948

(1,060

)

-10.6

%

(4,010

)

-31.0

%

Interest on securities-tax exempt-FTE290

293

457

(3

)

-1.0

%

(167

)

-36.5

%

Interest on fed funds sold and reverse repurchases-

-

-

-

n/m

-

n/m

Other interest income503

249

740

254

n/m

(237

)

-32.0

%

Total interest income-FTE112,366

121,863

123,502

(9,497

)

-7.8

%

(11,136

)

-9.0

%

Interest on deposits5,223

6,363

14,957

(1,140

)

-17.9

%

(9,734

)

-65.1

%

Interest on fed funds purchased and repurchases56

56

625

-

0.0

%

(569

)

-91.0

%

Other interest expense1,857

1,127

860

730

64.8

%

997

n/m

Total interest expense7,136

7,546

16,442

(410

)

-5.4

%

(9,306

)

-56.6

%

Net interest income-FTE105,230

114,317

107,060

(9,087

)

-7.9

%

(1,830

)

-1.7

%

Provision for credit losses, LHFI(10,501

)

(4,413

)

20,581

(6,088

)

n/m

(31,082

)

n/m

Net interest income after provision-FTE115,731

118,730

86,479

(2,999

)

-2.5

%

29,252

33.8

%

Service charges on deposit accounts7,356

8,283

10,032

(927

)

-11.2

%

(2,676

)

-26.7

%

Bank card and other fees9,472

9,107

5,355

365

4.0

%

4,117

76.9

%

Mortgage banking, net20,804

28,155

27,483

(7,351

)

-26.1

%

(6,679

)

-24.3

%

Insurance commissions12,445

10,196

11,550

2,249

22.1

%

895

7.7

%

Wealth management8,416

7,838

8,537

578

7.4

%

(121

)

-1.4

%

Other, net2,090

2,538

2,307

(448

)

-17.7

%

(217

)

-9.4

%

Total noninterest income60,583

66,117

65,264

(5,534

)

-8.4

%

(4,681

)

-7.2

%

Salaries and employee benefits71,162

69,660

69,148

1,502

2.2

%

2,014

2.9

%

Services and fees22,484

22,327

19,930

157

0.7

%

2,554

12.8

%

Net occupancy-premises6,795

6,616

6,286

179

2.7

%

509

8.1

%

Equipment expense6,244

6,213

5,616

31

0.5

%

628

11.2

%

Other real estate expense, net324

(812

)

1,294

1,136

n/m

(970

)

-75.0

%

Credit loss expense related to off-balance sheet credit exposures(9,367

)

(1,087

)

6,783

(8,280

)

n/m

(16,150

)

n/m

Other expense14,539

15,890

14,753

(1,351

)

-8.5

%

(214

)

-1.5

%

Total noninterest expense112,181

118,807

123,810

(6,626

)

-5.6

%

(11,629

)

-9.4

%

Income before income taxes and tax eq adj64,133

66,040

27,933

(1,907

)

-2.9

%

36,200

n/m

Tax equivalent adjustment2,894

2,939

3,108

(45

)

-1.5

%

(214

)

-6.9

%

Income before income taxes61,239

63,101

24,825

(1,862

)

-3.0

%

36,414

n/m

Income taxes9,277

11,884

2,607

(2,607

)

-21.9

%

6,670

n/m

Net income$

51,962

$

51,217

$

22,218

$

745

1.5

%

$

29,744

n/m

Per share dataEarnings per share - basic$

0.82

$

0.81

$

0.35

$

0.01

1.2

%

$

0.47

n/m

Earnings per share - diluted$

0.82

$

0.81

$

0.35

$

0.01

1.2

%

$

0.47

n/m

Dividends per share$

0.23

$

0.23

$

0.23

-

0.0

%

-

0.0

%

Weighted average shares outstandingBasic63,395,911

63,424,219

63,756,629

Diluted63,562,503

63,616,767

63,913,603

Period end shares outstanding63,394,522

63,424,526

63,396,912

n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands except per share data)(unaudited) Quarter Ended Linked Quarter Year over YearINCOME STATEMENTS 3/31/2021 12/31/2020 3/31/2020 $ Change % $ Change % Change ChangeInterest and fees $ 93,394 $ 96,453 $ 109,357 $ (3,059 ) -3.2 % $ (15,963 ) -14.6 %on LHFS & LHFI-FTEInterest and fees 9,241 14,870 - (5,629 ) -37.9 % 9,241 n/m on PPP loansInterest on 8,938 9,998 12,948 (1,060 ) -10.6 % (4,010 ) -31.0 %securities-taxableInterest on 290 293 457 (3 ) -1.0 % (167 ) -36.5 %securities-taxexempt-FTEInterest on fedfunds sold and - - - - n/m - n/m reverserepurchasesOther interest 503 249 740 254 n/m (237 ) -32.0 %incomeTotal interest 112,366 121,863 123,502 (9,497 ) -7.8 % (11,136 ) -9.0 %income-FTEInterest on 5,223 6,363 14,957 (1,140 ) -17.9 % (9,734 ) -65.1 %depositsInterest on fed 56 56 625 - 0.0 % (569 ) -91.0 %funds purchasedand repurchasesOther interest 1,857 1,127 860 730 64.8 % 997 n/m expenseTotal interest 7,136 7,546 16,442 (410 ) -5.4 % (9,306 ) -56.6 %expenseNet interest 105,230 114,317 107,060 (9,087 ) -7.9 % (1,830 ) -1.7 %income-FTEProvision for (10,501 ) (4,413 ) 20,581 (6,088 ) n/m (31,082 ) n/m credit losses,LHFINet interest 115,731 118,730 86,479 (2,999 ) -2.5 % 29,252 33.8 %income afterprovision-FTEService charges on 7,356 8,283 10,032 (927 ) -11.2 % (2,676 ) -26.7 %deposit accountsBank card and 9,472 9,107 5,355 365 4.0 % 4,117 76.9 %other feesMortgage banking, 20,804 28,155 27,483 (7,351 ) -26.1 % (6,679 ) -24.3 %netInsurance 12,445 10,196 11,550 2,249 22.1 % 895 7.7 %commissionsWealth management 8,416 7,838 8,537 578 7.4 % (121 ) -1.4 %

Other, net 2,090 2,538 2,307 (448 ) -17.7 % (217 ) -9.4 %

Total noninterest 60,583 66,117 65,264 (5,534 ) -8.4 % (4,681 ) -7.2 %incomeSalaries and 71,162 69,660 69,148 1,502 2.2 % 2,014 2.9 %employee benefitsServices and fees 22,484 22,327 19,930 157 0.7 % 2,554 12.8 %

Net 6,795 6,616 6,286 179 2.7 % 509 8.1 %occupancy-premisesEquipment expense 6,244 6,213 5,616 31 0.5 % 628 11.2 %

Other real estate 324 (812 ) 1,294 1,136 n/m (970 ) -75.0 %expense, netCredit lossexpense related to (9,367 ) (1,087 ) 6,783 (8,280 ) n/m (16,150 ) n/m off-balance sheet credit exposuresOther expense 14,539 15,890 14,753 (1,351 ) -8.5 % (214 ) -1.5 %

Total noninterest 112,181 118,807 123,810 (6,626 ) -5.6 % (11,629 ) -9.4 %expenseIncome before 64,133 66,040 27,933 (1,907 ) -2.9 % 36,200 n/m income taxes andtax eq adjTax equivalent 2,894 2,939 3,108 (45 ) -1.5 % (214 ) -6.9 %adjustmentIncome before 61,239 63,101 24,825 (1,862 ) -3.0 % 36,414 n/m income taxesIncome taxes 9,277 11,884 2,607 (2,607 ) -21.9 % 6,670 n/m

Net income $ 51,962 $ 51,217 $ 22,218 $ 745 1.5 % $ 29,744 n/m

Per share dataEarnings per share $ 0.82 $ 0.81 $ 0.35 $ 0.01 1.2 % $ 0.47 n/m - basic Earnings per share $ 0.82 $ 0.81 $ 0.35 $ 0.01 1.2 % $ 0.47 n/m - diluted Dividends per $ 0.23 $ 0.23 $ 0.23 - 0.0 % - 0.0 %share Weighted averageshares outstandingBasic 63,395,911 63,424,219 63,756,629

Diluted 63,562,503 63,616,767 63,913,603

Period end shares 63,394,522 63,424,526 63,396,912outstanding n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited)Quarter EndedLinked QuarterYear over YearNONPERFORMING ASSETS (1)3/31/202112/31/20203/31/2020$ Change% Change$ Change% ChangeNonaccrual LHFIAlabama$

9,161

$

9,221

$

4,769

$

(60

)

-0.7

%

$

4,392

92.1

%

Florida607

572

254

35

6.1

%

353

n/m

Mississippi (2)35,534

35,015

40,815

519

1.5

%

(5,281

)

-12.9

%

Tennessee (3)12,451

12,572

6,153

(121

)

-1.0

%

6,298

n/m

Texas5,761

5,748

1,001

13

0.2

%

4,760

n/m

Total nonaccrual LHFI63,514

63,128

52,992

386

0.6

%

10,522

19.9

%

Other real estateAlabama3,085

3,271

6,229

(186

)

-5.7

%

(3,144

)

-50.5

%

Florida-

-

4,835

-

n/m

(4,835

)

-100.0

%

Mississippi (2)7,566

8,330

13,296

(764

)

-9.2

%

(5,730

)

-43.1

%

Tennessee (3)-

50

487

(50

)

-100.0

%

(487

)

-100.0

%

Texas-

-

-

-

n/m

-

n/m

Total other real estate10,651

11,651

24,847

(1,000

)

-8.6

%

(14,196

)

-57.1

%

Total nonperforming assets$

74,165

$

74,779

$

77,839

$

(614

)

-0.8

%

$

(3,674

)

-4.7

%

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

2,593

$

1,576

$

708

$

1,017

64.5

%

$

1,885

n/m

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

109,566

$

119,409

$

43,564

$

(9,843

)

-8.2

%

$

66,002

n/m

Quarter EndedLinked QuarterYear over YearACL LHFI (1)3/31/202112/31/20203/31/2020$ Change% Change$ Change% ChangeBeginning Balance$

117,306

$

122,010

$

84,277

$

(4,704

)

-3.9

%

$

33,029

39.2

%

CECL adoption adjustments:LHFI-

-

(3,039

)

-

n/m

3,039

100.0

%

Acquired loan transfers-

-

1,822

-

n/m

(1,822

)

-100.0

%

Provision for credit losses(10,501

)

(4,413

)

20,581

(6,088

)

n/m

(31,082

)

n/m

Charge-offs(1,245

)

(2,797

)

(5,545

)

1,552

55.5

%

4,300

77.5

%

Recoveries3,631

2,506

2,468

1,125

44.9

%

1,163

47.1

%

Net (charge-offs) recoveries2,386

(291

)

(3,077

)

2,677

n/m

5,463

n/m

Ending Balance$

109,191

$

117,306

$

100,564

$

(8,115

)

-6.9

%

$

8,627

8.6

%

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

102

$

(1,011

)

$

(1,080

)

$

1,113

n/m

$

1,182

n/m

Florida30

66

64

(36

)

-54.5

%

(34

)

-53.1

%

Mississippi (2)2,207

332

126

1,875

n/m

2,081

n/m

Tennessee (3)47

303

(2,186

)

(256

)

-84.5

%

2,233

n/m

Texas-

19

(1

)

(19

)

-100.0

%

1

100.0

%

Total net (charge-offs) recoveries$

2,386

$

(291

)

$

(3,077

)

$

2,677

n/m

$

5,463

n/m

(1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited) Quarter Ended Linked Quarter Year over YearNONPERFORMING 3/31/2021 12/31/2020 3/31/2020 $ Change % Change $ Change % ChangeASSETS (1)Nonaccrual LHFIAlabama $ 9,161 $ 9,221 $ 4,769 $ (60 ) -0.7 % $ 4,392 92.1 %

Florida 607 572 254 35 6.1 % 353 n/m

Mississippi (2) 35,534 35,015 40,815 519 1.5 % (5,281 ) -12.9 %

Tennessee (3) 12,451 12,572 6,153 (121 ) -1.0 % 6,298 n/m

Texas 5,761 5,748 1,001 13 0.2 % 4,760 n/m

Total 63,514 63,128 52,992 386 0.6 % 10,522 19.9 %nonaccrual LHFIOther realestateAlabama 3,085 3,271 6,229 (186 ) -5.7 % (3,144 ) -50.5 %

Florida - - 4,835 - n/m (4,835 ) -100.0 %

Mississippi (2) 7,566 8,330 13,296 (764 ) -9.2 % (5,730 ) -43.1 %

Tennessee (3) - 50 487 (50 ) -100.0 % (487 ) -100.0 %

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

Total other 10,651 11,651 24,847 (1,000 ) -8.6 % (14,196 ) -57.1 %real estateTotal $ 74,165 $ 74,779 $ 77,839 $ (614 ) -0.8 % $ (3,674 ) -4.7 %nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 2,593 $ 1,576 $ 708 $ 1,017 64.5 % $ 1,885 n/m

LHFS-GuaranteedGNMA servicedloans(no obligation $ 109,566 $ 119,409 $ 43,564 $ (9,843 ) -8.2 % $ 66,002 n/m to repurchase) Quarter Ended Linked Quarter Year over YearACL LHFI (1) 3/31/2021 12/31/2020 3/31/2020 $ Change % Change $ Change % ChangeBeginning $ 117,306 $ 122,010 $ 84,277 $ (4,704 ) -3.9 % $ 33,029 39.2 %BalanceCECL adoptionadjustments:LHFI - - (3,039 ) - n/m 3,039 100.0 %

Acquired loan - - 1,822 - n/m (1,822 ) -100.0 %transfersProvision for (10,501 ) (4,413 ) 20,581 (6,088 ) n/m (31,082 ) n/m credit lossesCharge-offs (1,245 ) (2,797 ) (5,545 ) 1,552 55.5 % 4,300 77.5 %

Recoveries 3,631 2,506 2,468 1,125 44.9 % 1,163 47.1 %

Net 2,386 (291 ) (3,077 ) 2,677 n/m 5,463 n/m (charge-offs)recoveriesEnding Balance $ 109,191 $ 117,306 $ 100,564 $ (8,115 ) -6.9 % $ 8,627 8.6 %

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 102 $ (1,011 ) $ (1,080 ) $ 1,113 n/m $ 1,182 n/m

Florida 30 66 64 (36 ) -54.5 % (34 ) -53.1 %

Mississippi (2) 2,207 332 126 1,875 n/m 2,081 n/m

Tennessee (3) 47 303 (2,186 ) (256 ) -84.5 % 2,233 n/m

Texas - 19 (1 ) (19 ) -100.0 % 1 100.0 %

Total net $ 2,386 $ (291 ) $ (3,077 ) $ 2,677 n/m $ 5,463 n/m (charge-offs)recoveries (1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited)Quarter EndedAVERAGE BALANCES3/31/202112/31/20209/30/20206/30/20203/31/2020Securities AFS-taxable$

2,098,089

$

1,902,162

$

1,857,050

$

1,724,320

$

1,620,422

Securities AFS-nontaxable5,190

5,206

5,973

9,827

22,056

Securities HTM-taxable489,260

550,563

608,585

655,085

694,740

Securities HTM-nontaxable24,070

24,752

25,508

25,538

25,673

Total securities2,616,609

2,482,683

2,497,116

2,414,770

2,362,891

PPP loans598,139

875,098

941,456

764,416

-

Loans (includes loans held for sale)10,316,319

10,231,671

10,162,379

9,908,132

9,678,174

Fed funds sold and reverse repurchases136

303

301

113

164

Other earning assets1,667,906

860,540

722,917

854,642

187,327

Total earning assets15,199,109

14,450,295

14,324,169

13,942,073

12,228,556

ACL LHFI(119,557

)

(124,088

)

(121,842

)

(103,006

)

(85,015

)

Other assets1,601,250

1,620,694

1,564,825

1,685,317

1,498,725

Total assets$

16,680,802

$

15,946,901

$

15,767,152

$

15,524,384

$

13,642,266

Interest-bearing demand deposits$

3,743,651

$

3,649,590

$

3,669,249

$

3,832,372

$

3,184,134

Savings deposits4,659,037

4,350,783

4,416,046

4,180,540

3,646,936

Time deposits1,371,830

1,436,677

1,507,348

1,578,737

1,617,307

Total interest-bearing deposits9,774,518

9,437,050

9,592,643

9,591,649

8,448,377

Fed funds purchased and repurchases166,909

170,474

84,077

105,696

247,513

Other borrowings166,926

173,525

167,262

107,533

85,279

Subordinated notes122,875

42,828

-

-

-

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

Total interest-bearing liabilities10,293,084

9,885,733

9,905,838

9,866,734

8,843,025

Noninterest-bearing deposits4,363,559

4,100,849

3,921,867

3,645,761

2,910,951

Other liabilities264,808

235,284

244,544

346,173

248,220

Total liabilities14,921,451

14,221,866

14,072,249

13,858,668

12,002,196

Shareholders' equity1,759,351

1,725,035

1,694,903

1,665,716

1,640,070

Total liabilities and equity$

16,680,802

$

15,946,901

$

15,767,152

$

15,524,384

$

13,642,266

See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited) Quarter EndedAVERAGE BALANCES 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020Securities $ 2,098,089 $ 1,902,162 $ 1,857,050 $ 1,724,320 $ 1,620,422 AFS-taxableSecurities 5,190 5,206 5,973 9,827 22,056 AFS-nontaxableSecurities 489,260 550,563 608,585 655,085 694,740 HTM-taxableSecurities 24,070 24,752 25,508 25,538 25,673 HTM-nontaxableTotal securities 2,616,609 2,482,683 2,497,116 2,414,770 2,362,891

PPP loans 598,139 875,098 941,456 764,416 -

Loans (includes 10,316,319 10,231,671 10,162,379 9,908,132 9,678,174 loans held for sale)Fed funds sold and 136 303 301 113 164 reverse repurchasesOther earning assets 1,667,906 860,540 722,917 854,642 187,327

Total earning assets 15,199,109 14,450,295 14,324,169 13,942,073 12,228,556

ACL LHFI (119,557 ) (124,088 ) (121,842 ) (103,006 ) (85,015 )

Other assets 1,601,250 1,620,694 1,564,825 1,685,317 1,498,725

Total assets $ 16,680,802 $ 15,946,901 $ 15,767,152 $ 15,524,384 $ 13,642,266

Interest-bearing $ 3,743,651 $ 3,649,590 $ 3,669,249 $ 3,832,372 $ 3,184,134 demand depositsSavings deposits 4,659,037 4,350,783 4,416,046 4,180,540 3,646,936

Time deposits 1,371,830 1,436,677 1,507,348 1,578,737 1,617,307

Total 9,774,518 9,437,050 9,592,643 9,591,649 8,448,377 interest-bearingdepositsFed funds purchased 166,909 170,474 84,077 105,696 247,513 and repurchasesOther borrowings 166,926 173,525 167,262 107,533 85,279

Subordinated notes 122,875 42,828 - - -

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securitiesTotal 10,293,084 9,885,733 9,905,838 9,866,734 8,843,025 interest-bearingliabilitiesNoninterest-bearing 4,363,559 4,100,849 3,921,867 3,645,761 2,910,951 depositsOther liabilities 264,808 235,284 244,544 346,173 248,220

Total liabilities 14,921,451 14,221,866 14,072,249 13,858,668 12,002,196

Shareholders' equity 1,759,351 1,725,035 1,694,903 1,665,716 1,640,070

Total liabilities $ 16,680,802 $ 15,946,901 $ 15,767,152 $ 15,524,384 $ 13,642,266 and equity See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited)PERIOD END BALANCES3/31/202112/31/20209/30/20206/30/20203/31/2020Cash and due from banks$

1,774,541

$

1,952,504

$

564,588

$

1,026,640

$

404,341

Fed funds sold and reverse repurchases-

50

50

-

2,000

Securities available for sale2,337,676

1,991,815

1,922,728

1,884,153

1,833,779

Securities held to maturity493,738

538,072

611,280

660,048

704,276

PPP loans679,725

610,134

944,270

939,783

-

LHFS412,999

446,951

485,103

355,089

325,389

LHFI9,983,704

9,824,524

9,847,728

9,659,806

9,567,920

ACL LHFI(109,191

)

(117,306

)

(122,010

)

(119,188

)

(100,564

)

Net LHFI9,874,513

9,707,218

9,725,718

9,540,618

9,467,356

Premises and equipment, net199,098

194,278

192,722

190,567

190,179

Mortgage servicing rights83,035

66,464

61,613

57,811

56,437

Goodwill384,237

385,270

385,270

385,270

381,717

Identifiable intangible assets6,724

7,390

8,142

8,895

7,537

Other real estate10,651

11,651

16,248

18,276

24,847

Operating lease right-of-use assets33,704

30,901

30,508

29,819

30,839

Other assets587,672

609,142

609,922

595,110

591,132

Total assets$

16,878,313

$

16,551,840

$

15,558,162

$

15,692,079

$

14,019,829

Deposits:Noninterest-bearing$

4,705,991

$

4,349,010

$

3,964,023

$

3,880,540

$

2,977,058

Interest-bearing9,677,449

9,699,754

9,258,390

9,624,933

8,598,706

Total deposits14,383,440

14,048,764

13,222,413

13,505,473

11,575,764

Fed funds purchased and repurchases160,991

164,519

153,834

70,255

421,821

Other borrowings145,994

168,252

178,599

152,860

84,230

Subordinated notes122,877

122,921

-

-

-

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

ACL on off-balance sheet credit exposures29,205

38,572

39,659

42,663

36,421

Operating lease liabilities35,389

32,290

31,838

31,076

32,055

Other liabilities178,856

173,549

159,922

153,952

155,283

Total liabilities15,118,608

14,810,723

13,848,121

14,018,135

12,367,430

Common stock13,209

13,215

13,215

13,214

13,209

Capital surplus229,892

233,120

231,836

230,613

229,403

Retained earnings1,533,110

1,495,833

1,459,306

1,419,552

1,402,089

Accum other comprehensive income (loss), net of tax(16,506

)

(1,051

)

5,684

10,565

7,698

Total shareholders' equity1,759,705

1,741,117

1,710,041

1,673,944

1,652,399

Total liabilities and equity$

16,878,313

$

16,551,840

$

15,558,162

$

15,692,079

$

14,019,829

See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited) PERIOD END BALANCES 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020Cash and due from $ 1,774,541 $ 1,952,504 $ 564,588 $ 1,026,640 $ 404,341 banksFed funds sold and - 50 50 - 2,000 reverse repurchasesSecurities 2,337,676 1,991,815 1,922,728 1,884,153 1,833,779 available for saleSecurities held to 493,738 538,072 611,280 660,048 704,276 maturityPPP loans 679,725 610,134 944,270 939,783 -

LHFS 412,999 446,951 485,103 355,089 325,389

LHFI 9,983,704 9,824,524 9,847,728 9,659,806 9,567,920

ACL LHFI (109,191 ) (117,306 ) (122,010 ) (119,188 ) (100,564 )

Net LHFI 9,874,513 9,707,218 9,725,718 9,540,618 9,467,356

Premises and 199,098 194,278 192,722 190,567 190,179 equipment, netMortgage servicing 83,035 66,464 61,613 57,811 56,437 rightsGoodwill 384,237 385,270 385,270 385,270 381,717

Identifiable 6,724 7,390 8,142 8,895 7,537 intangible assetsOther real estate 10,651 11,651 16,248 18,276 24,847

Operating lease 33,704 30,901 30,508 29,819 30,839 right-of-use assetsOther assets 587,672 609,142 609,922 595,110 591,132

Total assets $ 16,878,313 $ 16,551,840 $ 15,558,162 $ 15,692,079 $ 14,019,829

Deposits:Noninterest-bearing $ 4,705,991 $ 4,349,010 $ 3,964,023 $ 3,880,540 $ 2,977,058

Interest-bearing 9,677,449 9,699,754 9,258,390 9,624,933 8,598,706

Total deposits 14,383,440 14,048,764 13,222,413 13,505,473 11,575,764

Fed funds purchased 160,991 164,519 153,834 70,255 421,821 and repurchasesOther borrowings 145,994 168,252 178,599 152,860 84,230

Subordinated notes 122,877 122,921 - - -

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securitiesACL on off-balance 29,205 38,572 39,659 42,663 36,421 sheet creditexposuresOperating lease 35,389 32,290 31,838 31,076 32,055 liabilitiesOther liabilities 178,856 173,549 159,922 153,952 155,283

Total liabilities 15,118,608 14,810,723 13,848,121 14,018,135 12,367,430

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

Capital surplus 229,892 233,120 231,836 230,613 229,403

Retained earnings 1,533,110 1,495,833 1,459,306 1,419,552 1,402,089

Accum othercomprehensive (16,506 ) (1,051 ) 5,684 10,565 7,698 income (loss), netof taxTotal shareholders' 1,759,705 1,741,117 1,710,041 1,673,944 1,652,399 equityTotal liabilities $ 16,878,313 $ 16,551,840 $ 15,558,162 $ 15,692,079 $ 14,019,829 and equity See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands except per share data)(unaudited)Quarter EndedINCOME STATEMENTS3/31/202112/31/20209/30/20206/30/20203/31/2020Interest and fees on LHFS & LHFI-FTE$

93,394

$

96,453

$

97,429

$

99,300

$

109,357

Interest and fees on PPP loans9,241

14,870

6,729

5,044

-

Interest on securities-taxable8,938

9,998

12,542

12,762

12,948

Interest on securities-tax exempt-FTE290

293

301

315

457

Interest on fed funds sold and reverse repurchases-

-

1

-

-

Other interest income503

249

331

239

740

Total interest income-FTE112,366

121,863

117,333

117,660

123,502

Interest on deposits5,223

6,363

7,437

8,730

14,957

Interest on fed funds purchased and repurchases56

56

32

42

625

Other interest expense1,857

1,127

688

881

860

Total interest expense7,136

7,546

8,157

9,653

16,442

Net interest income-FTE105,230

114,317

109,176

108,007

107,060

Provision for credit losses, LHFI(10,501

)

(4,413

)

1,760

18,185

20,581

Net interest income after provision-FTE115,731

118,730

107,416

89,822

86,479

Service charges on deposit accounts7,356

8,283

7,577

6,397

10,032

Bank card and other fees9,472

9,107

8,843

7,717

5,355

Mortgage banking, net20,804

28,155

36,439

33,745

27,483

Insurance commissions12,445

10,196

11,562

11,868

11,550

Wealth management8,416

7,838

7,679

7,571

8,537

Other, net2,090

2,538

1,601

2,213

2,307

Total noninterest income60,583

66,117

73,701

69,511

65,264

Salaries and employee benefits71,162

69,660

67,342

66,107

69,148

Services and fees22,484

22,327

20,992

20,567

19,930

Net occupancy-premises6,795

6,616

7,000

6,587

6,286

Equipment expense6,244

6,213

5,828

5,620

5,616

Other real estate expense, net324

(812

)

1,203

271

1,294

Credit loss expense related to off-balance sheet credit exposures(9,367

)

(1,087

)

(3,004

)

6,242

6,783

Other expense14,539

15,890

14,598

13,265

14,753

Total noninterest expense112,181

118,807

113,959

118,659

123,810

Income before income taxes and tax eq adj64,133

66,040

67,158

40,674

27,933

Tax equivalent adjustment2,894

2,939

2,969

3,007

3,108

Income before income taxes61,239

63,101

64,189

37,667

24,825

Income taxes9,277

11,884

9,749

5,517

2,607

Net income$

51,962

$

51,217

$

54,440

$

32,150

$

22,218

Per share dataEarnings per share - basic$

0.82

$

0.81

$

0.86

$

0.51

$

0.35

Earnings per share - diluted$

0.82

$

0.81

$

0.86

$

0.51

$

0.35

Dividends per share$

0.23

$

0.23

$

0.23

$

0.23

$

0.23

Weighted average shares outstandingBasic63,395,911

63,424,219

63,422,692

63,416,307

63,756,629

Diluted63,562,503

63,616,767

63,581,964

63,555,065

63,913,603

Period end shares outstanding63,394,522

63,424,526

63,423,820

63,422,439

63,396,912

See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands except per share data)(unaudited) Quarter EndedINCOME STATEMENTS 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020Interest and fees $ 93,394 $ 96,453 $ 97,429 $ 99,300 $ 109,357on LHFS & LHFI-FTEInterest and fees 9,241 14,870 6,729 5,044 -on PPP loansInterest on 8,938 9,998 12,542 12,762 12,948securities-taxableInterest on 290 293 301 315 457securities-taxexempt-FTEInterest on fedfunds sold and - - 1 - -reverserepurchasesOther interest 503 249 331 239 740incomeTotal interest 112,366 121,863 117,333 117,660 123,502income-FTEInterest on 5,223 6,363 7,437 8,730 14,957depositsInterest on fed 56 56 32 42 625funds purchasedand repurchasesOther interest 1,857 1,127 688 881 860expenseTotal interest 7,136 7,546 8,157 9,653 16,442expenseNet interest 105,230 114,317 109,176 108,007 107,060income-FTEProvision for (10,501 ) (4,413 ) 1,760 18,185 20,581credit losses,LHFINet interest 115,731 118,730 107,416 89,822 86,479income afterprovision-FTEService charges on 7,356 8,283 7,577 6,397 10,032deposit accountsBank card and 9,472 9,107 8,843 7,717 5,355other feesMortgage banking, 20,804 28,155 36,439 33,745 27,483netInsurance 12,445 10,196 11,562 11,868 11,550commissionsWealth management 8,416 7,838 7,679 7,571 8,537

Other, net 2,090 2,538 1,601 2,213 2,307

Total noninterest 60,583 66,117 73,701 69,511 65,264incomeSalaries and 71,162 69,660 67,342 66,107 69,148employee benefitsServices and fees 22,484 22,327 20,992 20,567 19,930

Net 6,795 6,616 7,000 6,587 6,286occupancy-premisesEquipment expense 6,244 6,213 5,828 5,620 5,616

Other real estate 324 (812 ) 1,203 271 1,294expense, netCredit lossexpense related to (9,367 ) (1,087 ) (3,004 ) 6,242 6,783off-balance sheetcredit exposuresOther expense 14,539 15,890 14,598 13,265 14,753

Total noninterest 112,181 118,807 113,959 118,659 123,810expenseIncome before 64,133 66,040 67,158 40,674 27,933income taxes andtax eq adjTax equivalent 2,894 2,939 2,969 3,007 3,108adjustmentIncome before 61,239 63,101 64,189 37,667 24,825income taxesIncome taxes 9,277 11,884 9,749 5,517 2,607

Net income $ 51,962 $ 51,217 $ 54,440 $ 32,150 $ 22,218

Per share dataEarnings per share $ 0.82 $ 0.81 $ 0.86 $ 0.51 $ 0.35- basic Earnings per share $ 0.82 $ 0.81 $ 0.86 $ 0.51 $ 0.35- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23share Weighted averageshares outstandingBasic 63,395,911 63,424,219 63,422,692 63,416,307 63,756,629

Diluted 63,562,503 63,616,767 63,581,964 63,555,065 63,913,603

Period end shares 63,394,522 63,424,526 63,423,820 63,422,439 63,396,912outstanding See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited)Quarter EndedNONPERFORMING ASSETS (1)3/31/202112/31/20209/30/20206/30/20203/31/2020Nonaccrual LHFIAlabama$

9,161

$

9,221

$

3,860

$

4,392

$

4,769

Florida607

572

617

687

254

Mississippi (2)35,534

35,015

35,617

37,884

40,815

Tennessee (3)12,451

12,572

13,041

6,125

6,153

Texas5,761

5,748

721

906

1,001

Total nonaccrual LHFI63,514

63,128

53,856

49,994

52,992

Other real estateAlabama3,085

3,271

3,725

4,766

6,229

Florida-

-

3,665

3,665

4,835

Mississippi (2)7,566

8,330

8,718

9,408

13,296

Tennessee (3)-

50

140

437

487

Texas-

-

-

-

-

Total other real estate10,651

11,651

16,248

18,276

24,847

Total nonperforming assets$

74,165

$

74,779

$

70,104

$

68,270

$

77,839

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

2,593

$

1,576

$

782

$

807

$

708

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

109,566

$

119,409

$

121,281

$

56,269

$

43,564

Quarter EndedACL LHFI (1)3/31/202112/31/20209/30/20206/30/20203/31/2020Beginning Balance$

117,306

$

122,010

$

119,188

$

100,564

$

84,277

CECL adoption adjustments:LHFI-

-

-

-

(3,039

)

Acquired loan transfers-

-

-

-

1,822

Provision for credit losses(10,501

)

(4,413

)

1,760

18,185

20,581

Charge-offs(1,245

)

(2,797

)

(1,263

)

(1,870

)

(5,545

)

Recoveries3,631

2,506

2,325

2,309

2,468

Net (charge-offs) recoveries2,386

(291

)

1,062

439

(3,077

)

Ending Balance$

109,191

$

117,306

$

122,010

$

119,188

$

100,564

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

102

$

(1,011

)

$

117

$

526

$

(1,080

)

Florida30

66

387

(127

)

64

Mississippi (2)2,207

332

442

(86

)

126

Tennessee (3)47

303

42

66

(2,186

)

Texas-

19

74

60

(1

)

Total net (charge-offs) recoveries$

2,386

$

(291

)

$

1,062

$

439

$

(3,077

)

(1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021($ in thousands)(unaudited) Quarter EndedNONPERFORMING 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020ASSETS (1)Nonaccrual LHFIAlabama $ 9,161 $ 9,221 $ 3,860 $ 4,392 $ 4,769

Florida 607 572 617 687 254

Mississippi (2) 35,534 35,015 35,617 37,884 40,815

Tennessee (3) 12,451 12,572 13,041 6,125 6,153

Texas 5,761 5,748 721 906 1,001

Total 63,514 63,128 53,856 49,994 52,992 nonaccrual LHFIOther realestateAlabama 3,085 3,271 3,725 4,766 6,229

Florida - - 3,665 3,665 4,835

Mississippi (2) 7,566 8,330 8,718 9,408 13,296

Tennessee (3) - 50 140 437 487

Texas - - - - -

Total other 10,651 11,651 16,248 18,276 24,847 real estateTotal $ 74,165 $ 74,779 $ 70,104 $ 68,270 $ 77,839 nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 2,593 $ 1,576 $ 782 $ 807 $ 708

LHFS-GuaranteedGNMA servicedloans(no obligation $ 109,566 $ 119,409 $ 121,281 $ 56,269 $ 43,564 to repurchase) Quarter EndedACL LHFI (1) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020Beginning $ 117,306 $ 122,010 $ 119,188 $ 100,564 $ 84,277 BalanceCECL adoptionadjustments:LHFI - - - - (3,039 )

Acquired loan - - - - 1,822 transfersProvision for (10,501 ) (4,413 ) 1,760 18,185 20,581 credit lossesCharge-offs (1,245 ) (2,797 ) (1,263 ) (1,870 ) (5,545 )

Recoveries 3,631 2,506 2,325 2,309 2,468

Net 2,386 (291 ) 1,062 439 (3,077 )(charge-offs)recoveriesEnding Balance $ 109,191 $ 117,306 $ 122,010 $ 119,188 $ 100,564

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 102 $ (1,011 ) $ 117 $ 526 $ (1,080 )

Florida 30 66 387 (127 ) 64

Mississippi (2) 2,207 332 442 (86 ) 126

Tennessee (3) 47 303 42 66 (2,186 )

Texas - 19 74 60 (1 )

Total net $ 2,386 $ (291 ) $ 1,062 $ 439 $ (3,077 )(charge-offs)recoveries (1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021(unaudited)Quarter EndedFINANCIAL RATIOS AND OTHER DATA3/31/202112/31/20209/30/20206/30/20203/31/2020Return on average equity11.98

%

11.81

%

12.78

%

7.76

%

5.45

%

Return on average tangible equity15.56

%

15.47

%

16.82

%

10.32

%

7.34

%

Return on average assets1.26

%

1.28

%

1.37

%

0.83

%

0.66

%

Interest margin - Yield - FTE3.00

%

3.35

%

3.26

%

3.39

%

4.06

%

Interest margin - Cost0.19

%

0.21

%

0.23

%

0.28

%

0.54

%

Net interest margin - FTE2.81

%

3.15

%

3.03

%

3.12

%

3.52

%

Efficiency ratio (1)71.84

%

65.59

%

62.19

%

62.13

%

63.50

%

Full-time equivalent employees2,793

2,797

2,807

2,798

2,761

CREDIT QUALITY RATIOS (2)Net (recoveries) charge-offs / average loans-0.09

%

0.01

%

-0.04

%

-0.02

%

0.13

%

Provision for credit losses / average loans-0.41

%

-0.17

%

0.07

%

0.74

%

0.86

%

Nonaccrual LHFI / (LHFI + LHFS)0.61

%

0.61

%

0.52

%

0.50

%

0.54

%

Nonperforming assets / (LHFI + LHFS)0.71

%

0.73

%

0.68

%

0.68

%

0.79

%

Nonperforming assets / (LHFI + LHFS + other real estate)0.71

%

0.73

%

0.68

%

0.68

%

0.78

%

ACL LHFI / LHFI1.09

%

1.19

%

1.24

%

1.23

%

1.05

%

ACL LHFI-commercial / commercial LHFI1.13

%

1.20

%

1.20

%

1.15

%

0.97

%

ACL LHFI-consumer / consumer and home mortgage LHFI0.95

%

1.16

%

1.41

%

1.56

%

1.35

%

ACL LHFI / nonaccrual LHFI171.92

%

185.82

%

226.55

%

238.40

%

189.77

%

ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)437.08

%

572.69

%

593.72

%

561.04

%

468.84

%

CAPITAL RATIOSTotal equity / total assets10.43

%

10.52

%

10.99

%

10.67

%

11.79

%

Tangible equity / tangible assets8.30

%

8.34

%

8.68

%

8.37

%

9.27

%

Tangible equity / risk-weighted assets11.23

%

11.22

%

11.01

%

11.09

%

11.05

%

Tier 1 leverage ratio9.11

%

9.33

%

9.20

%

9.08

%

10.21

%

Common equity tier 1 capital ratio11.71

%

11.62

%

11.36

%

11.42

%

11.35

%

Tier 1 risk-based capital ratio12.20

%

12.11

%

11.86

%

11.94

%

11.88

%

Total risk-based capital ratio14.07

%

14.12

%

12.88

%

13.00

%

12.78

%

STOCK PERFORMANCEMarket value-Close$

33.66

$

27.31

$

21.41

$

24.52

$

23.30

Book value$

27.76

$

27.45

$

26.96

$

26.39

$

26.06

Tangible book value$

21.59

$

21.26

$

20.76

$

20.18

$

19.92

(1) See Note 8 - Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark's efficiency ratio calculation.(2) Excludes PPP loans.See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands)(unaudited)

Note 1 - Paycheck Protection Program

In January 2021, Trustmark began submitting applications to the SBA on behalf of and originating loans to qualified small businesses under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), as amended by the Consolidated Appropriations Act, 2021. During the first quarter of 2021, Trustmark originated 4,774 PPP loans totaling $301.5 million (net of $16.5 million of deferred fees and costs). At March 31, 2021, Trustmark had 7,456 PPP loans outstanding that totaled $679.7 million (net of $22.1 million of deferred fees and costs) under the CARES Act.

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 2 - 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 SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONMarch 31, 2021(unaudited) Quarter EndedFINANCIAL RATIOS 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020AND OTHER DATAReturn on average 11.98 % 11.81 % 12.78 % 7.76 % 5.45 %equityReturn on average 15.56 % 15.47 % 16.82 % 10.32 % 7.34 %tangible equityReturn on average 1.26 % 1.28 % 1.37 % 0.83 % 0.66 %assetsInterest margin - 3.00 % 3.35 % 3.26 % 3.39 % 4.06 %Yield - FTEInterest margin - 0.19 % 0.21 % 0.23 % 0.28 % 0.54 %CostNet interest margin 2.81 % 3.15 % 3.03 % 3.12 % 3.52 %- FTEEfficiency ratio 71.84 % 65.59 % 62.19 % 62.13 % 63.50 %(1)Full-time 2,793 2,797 2,807 2,798 2,761 equivalentemployees CREDIT QUALITYRATIOS (2)Net (recoveries) -0.09 % 0.01 % -0.04 % -0.02 % 0.13 %charge-offs /average loansProvision for -0.41 % -0.17 % 0.07 % 0.74 % 0.86 %credit losses /average loansNonaccrual LHFI / 0.61 % 0.61 % 0.52 % 0.50 % 0.54 %(LHFI + LHFS)Nonperforming 0.71 % 0.73 % 0.68 % 0.68 % 0.79 %assets / (LHFI +LHFS)Nonperformingassets / (LHFI + 0.71 % 0.73 % 0.68 % 0.68 % 0.78 %LHFS + other realestate)ACL LHFI / LHFI 1.09 % 1.19 % 1.24 % 1.23 % 1.05 %

ACL LHFI-commercial 1.13 % 1.20 % 1.20 % 1.15 % 0.97 %/ commercial LHFIACL LHFI-consumer / 0.95 % 1.16 % 1.41 % 1.56 % 1.35 %consumer and homemortgage LHFIACL LHFI / 171.92 % 185.82 % 226.55 % 238.40 % 189.77 %nonaccrual LHFIACL LHFI /nonaccrual LHFI 437.08 % 572.69 % 593.72 % 561.04 % 468.84 %(excl individuallyevaluated loans) CAPITAL RATIOSTotal equity / 10.43 % 10.52 % 10.99 % 10.67 % 11.79 %total assetsTangible equity / 8.30 % 8.34 % 8.68 % 8.37 % 9.27 %tangible assetsTangible equity / 11.23 % 11.22 % 11.01 % 11.09 % 11.05 %risk-weightedassetsTier 1 leverage 9.11 % 9.33 % 9.20 % 9.08 % 10.21 %ratioCommon equity tier 11.71 % 11.62 % 11.36 % 11.42 % 11.35 %1 capital ratioTier 1 risk-based 12.20 % 12.11 % 11.86 % 11.94 % 11.88 %capital ratioTotal risk-based 14.07 % 14.12 % 12.88 % 13.00 % 12.78 %capital ratio STOCK PERFORMANCEMarket value-Close $ 33.66 $ 27.31 $ 21.41 $ 24.52 $ 23.30

Book value $ 27.76 $ 27.45 $ 26.96 $ 26.39 $ 26.06

Tangible book value $ 21.59 $ 21.26 $ 20.76 $ 20.18 $ 19.92

(1) See Note 8 - Non-GAAP Financial Measures in the Notes to ConsolidatedFinancials for Trustmark's efficiency ratio calculation.(2) Excludes PPP loans. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands)(unaudited)

Note 1 - Paycheck Protection Program

In January 2021, Trustmark began submitting applications to the SBA on behalf of and originating loans to qualified small businesses under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), as amended by the Consolidated Appropriations Act, 2021. During the first quarter of 2021, Trustmark originated 4,774 PPP loans totaling $301.5 million (net of $16.5 million of deferred fees and costs). At March 31, 2021, Trustmark had 7,456 PPP loans outstanding that totaled $679.7 million (net of $22.1 million of deferred fees and costs) under the CARES Act.

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 2 - 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:

3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020

SECURITIESAVAILABLE FOR SALE

U.S. Governmentagency $ 17,349 $ 18,041 $ 19,011 $ 19,898 $ 21,190 obligations

Obligations ofstates and 5,798 5,835 8,315 11,176 23,572 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 52,406 56,862 62,156 69,637 71,971 GNMA

Issued by FNMA 1,749,144 1,441,321 1,279,919 1,121,604 967,329 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 345,869 419,437 500,858 574,940 634,075 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 167,110 50,319 52,469 86,898 115,642 FNMA, FHLMC, orGNMA

Totalsecurities $ 2,337,676 $ 1,991,815 $ 1,922,728 $ 1,884,153 $ 1,833,779 available forsale



SECURITIES HELD TO MATURITY

Obligations ofstates and $ 26,554 $ 26,584 $ 31,605 $ 31,629 $ 31,758 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 7,268 7,598 8,244 10,306 10,492 GNMA

Issued by FNMA 61,855 67,944 78,213 86,346 91,971 and FHLMC

Otherresidential mortgage-backedsecurities

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

Commercialmortgage-backed securities

Issued orguaranteed by 73,701 75,585 93,818 96,434 106,880 FNMA, FHLMC, orGNMA

Totalsecurities held $ 493,738 $ 538,072 $ 611,280 $ 660,048 $ 704,276 to maturity

At March 31, 2021, 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 $8.2 million ($6.2 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 98.0% 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 3 - Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020

Loans securedby real estate:

Construction,landdevelopment $ 1,342,088 $ 1,309,039 $ 1,385,947 $ 1,277,277 $ 1,136,389 and other landloans

Secured by 1-4family 1,742,782 1,741,132 1,775,400 1,813,525 1,852,065 residentialproperties

Secured bynonfarm, 2,799,195 2,709,026 2,707,627 2,610,392 2,575,422 nonresidentialproperties

Other real 1,135,005 1,065,964 887,792 884,815 838,573 estate secured

Commercial andindustrial 1,323,277 1,309,078 1,398,468 1,413,255 1,476,777 loans

Consumer loans 153,267 161,174 160,960 161,620 170,678

State andotherpolitical 1,036,694 1,000,776 935,349 931,536 938,637 subdivisionloans

Other loans 451,396 528,335 596,185 567,386 579,379

LHFI 9,983,704 9,824,524 9,847,728 9,659,806 9,567,920

ACL LHFI (109,191 ) (117,306 ) (122,010 ) (119,188 ) (100,564 )

Net LHFI $ 9,874,513 $ 9,707,218 $ 9,725,718 $ 9,540,618 $ 9,467,356

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands)(unaudited)

Note 3 - Loan Composition (continued)

The following table presents the LHFI composition by region at March 31, 2021 and reflects each region's diversified mix of loans:

March 31, 2021

Mississippi Tennessee

(Central (Memphis,LHFI - and TN andCOMPOSITION BY Total Alabama Florida Texas REGION Southern Northern MS Regions) Regions)

Loans secured by real estate:

Construction,landdevelopment and $ 1,342,088 $ 497,839 $ 65,032 $ 315,127 $ 40,117 $ 423,973 other landloans

Secured by 1-4family 1,742,782 112,699 37,777 1,509,503 69,371 13,432 residentialproperties

Secured bynonfarm, 2,799,195 765,496 263,877 976,949 181,688 611,185 nonresidentialproperties

Other real 1,135,005 325,951 6,139 418,988 19,910 364,017 estate secured

Commercial andindustrial 1,323,277 203,778 22,980 621,592 290,619 184,308 loans

Consumer loans 153,267 22,501 7,755 100,323 19,232 3,456

State and otherpolitical 1,036,694 95,707 35,179 684,640 45,335 175,833 subdivisionloans

Other loans 451,396 79,979 13,016 279,520 64,796 14,085

Loans $ 9,983,704 $ 2,103,950 $ 451,755 $ 4,906,642 $ 731,068 $ 1,790,289



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

Lots $ 67,471 $ 21,575 $ 11,036 $ 26,266 $ 1,373 $ 7,221

Development 110,837 42,509 610 42,838 13,709 11,171

Unimproved land 108,607 33,232 14,333 31,363 11,568 18,111

1-4 family 255,987 117,406 22,312 71,072 12,495 32,702 construction

Other 799,186 283,117 16,741 143,588 972 354,768 construction

Construction,landdevelopment and $ 1,342,088 $ 497,839 $ 65,032 $ 315,127 $ 40,117 $ 423,973 other landloans



LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION

Non-owner occupied:

Retail $ 400,595 $ 162,007 $ 31,393 $ 106,249 $ 25,339 $ 75,607

Office 236,662 68,374 26,516 64,074 12,449 65,249

Hotel/motel 352,191 150,807 90,266 51,443 36,164 23,511

Mini-storage 135,538 23,176 2,392 62,461 390 47,119

Industrial 201,182 47,521 18,356 47,369 419 87,517

Health care 41,973 21,803 1,194 16,417 383 2,176

Convenience 16,773 3,289 200 3,134 373 9,777 stores

Nursing homes/ 158,489 71,123 - 42,050 6,760 38,556 senior living

Other 78,407 10,075 7,261 25,585 8,846 26,640

Total non-owner 1,621,810 558,175 177,578 418,782 91,123 376,152 occupied loans





Owner-occupied:

Office 163,874 40,240 44,295 37,566 8,662 33,111

Churches 102,001 21,454 6,586 50,270 10,030 13,661

Industrial 177,666 12,410 3,169 49,610 17,122 95,355 warehouses

Health care 141,491 26,787 7,525 94,096 2,327 10,756

Convenience 136,175 17,369 9,348 65,479 531 43,448 stores

Retail 69,585 14,050 6,670 23,696 10,512 14,657

Restaurants 56,319 4,267 4,394 32,341 15,025 292

Auto 56,449 7,033 274 23,599 25,543 - dealerships

Nursing homes/ 176,746 58,770 - 117,976 - - senior living

Other 97,079 4,941 4,038 63,534 813 23,753

Totalowner-occupied 1,177,385 207,321 86,299 558,167 90,565 235,033 loans

Loans securedby nonfarm, $ 2,799,195 $ 765,496 $ 263,877 $ 976,949 $ 181,688 $ 611,185 nonresidentialproperties

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands)(unaudited)

Note 4 - Subordinated Notes

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. At March 31, 2021, the carrying amount of the Notes was $122.9 million. The Notes are unsecured obligations and are subordinated in right of payment to all of Trustmark's 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 TNB. 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.

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

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

Quarter Ended

3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020

Securities - taxable 1.40 % 1.62 % 2.02 % 2.16 % 2.25 %

Securities - nontaxable 4.02 % 3.89 % 3.80 % 3.58 % 3.85 %

Securities - total 1.43 % 1.65 % 2.05 % 2.18 % 2.28 %

PPP loans 6.27 % 6.76 % 2.84 % 2.65 % -

Loans - LHFI & LHFS 3.67 % 3.75 % 3.81 % 4.03 % 4.54 %

Loans - total 3.81 % 3.99 % 3.73 % 3.93 % 4.54 %

Fed funds sold & reverse - - 1.32 % - - repurchases

Other earning assets 0.12 % 0.12 % 0.18 % 0.11 % 1.59 %

Total earning assets 3.00 % 3.35 % 3.26 % 3.39 % 4.06 %



Interest-bearing deposits 0.22 % 0.27 % 0.31 % 0.37 % 0.71 %

Fed funds purchased & 0.14 % 0.13 % 0.15 % 0.16 % 1.02 %repurchases

Other borrowings 2.14 % 1.61 % 1.19 % 2.09 % 2.35 %

Total interest-bearing 0.28 % 0.30 % 0.33 % 0.39 % 0.75 %liabilities



Net interest margin 2.81 % 3.15 % 3.03 % 3.12 % 3.52 %

Net interest margin excluding 2.99 % 3.09 % 3.20 % 3.35 % 3.55 %PPP loans and the FRB balance

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 loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At March 31, 2021 and December 31, 2020, the average FRB balance totaled $1.618 billion and $814.2 million, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 2.99% for the first quarter of 2021, a decrease of 10 basis points when compared to the fourth quarter of 2020. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Note 6 - Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net positive ineffectiveness of $270 thousand during the first quarter of 2021.

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands)(unaudited)

Note 6 - Mortgage Banking(continued)

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

Quarter Ended

3/31/2021 12/31/ 9/30/ 6/30/ 3/31/2020 2020 2020 2020

Mortgageservicing $ 6,181 $ 6,227 $ 5,742 $ 5,893 $ 5,819 income, net

Change in fairvalue-MSR from (5,103 ) (5,177 ) (4,590 ) (4,214 ) (2,607 )runoff

Gain on sales 19,456 28,014 34,472 34,078 14,339 of loans, net

Mortgagebanking income 20,534 29,064 35,624 35,757 17,551 before hedgeineffectiveness

Change in fairvalue-MSR from 13,696 951 60 (3,159 ) (23,999 )market changes

Change in fairvalue of (13,426 ) (1,860 ) 755 1,147 33,931 derivatives

Net positive(negative) 270 (909 ) 815 (2,012 ) 9,932 hedgeineffectiveness

Mortgage $ 20,804 $ 28,155 $ 36,439 $ 33,745 $ 27,483 banking, net

Note 7 - Other Noninterest Income and Expense

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

Quarter Ended

3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020

Partnershipamortization $ (1,522 ) $ (1,877 ) $ (1,457 ) $ (1,205 ) $ (1,161 )for tax creditpurposes

Increase inlife insurance 1,639 1,708 1,755 1,696 1,722 cash surrendervalue

Othermiscellaneous 1,973 2,707 1,303 1,722 1,746 income

Total other, $ 2,090 $ 2,538 $ 1,601 $ 2,213 $ 2,307 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

3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020

Loan expense $ 3,411 $ 3,696 $ 3,485 $ 2,954 $ 2,799

Amortization of 666 752 752 736 812 intangibles

FDIC assessment 1,540 1,500 1,410 1,590 1,590 expense

Other miscellaneous 8,922 9,942 8,951 7,985 9,552 expense

Total other expense $ 14,539 $ 15,890 $ 14,598 $ 13,265 $ 14,753

Note 8 - 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 SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands except per share data)(unaudited)

Note 8 - Non-GAAP Financial Measures (continued)

Quarter Ended

3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020

TANGIBLE EQUITY

AVERAGE BALANCES

Totalshareholders' $ 1,759,351 $ 1,725,035 $ 1,694,903 $ 1,665,716 $ 1,640,070 equity

Less: (385,155 ) (385,270 ) (385,270 ) (383,081 ) (380,671 )Goodwill

Identifiableintangible (7,118 ) (7,803 ) (8,550 ) (7,834 ) (8,049 )assets

Total averagetangible $ 1,367,078 $ 1,331,962 $ 1,301,083 $ 1,274,801 $ 1,251,350 equity



PERIOD END BALANCES

Totalshareholders' $ 1,759,705 $ 1,741,117 $ 1,710,041 $ 1,673,944 $ 1,652,399 equity

Less: (384,237 ) (385,270 ) (385,270 ) (385,270 ) (381,717 )Goodwill

Identifiableintangible (6,724 ) (7,390 ) (8,142 ) (8,895 ) (7,537 )assets

Totaltangible (a) $ 1,368,744 $ 1,348,457 $ 1,316,629 $ 1,279,779 $ 1,263,145 equity



TANGIBLE ASSETS

Total assets $ 16,878,313 $ 16,551,840 $ 15,558,162 $ 15,692,079 $ 14,019,829

Less: (384,237 ) (385,270 ) (385,270 ) (385,270 ) (381,717 )Goodwill

Identifiableintangible (6,724 ) (7,390 ) (8,142 ) (8,895 ) (7,537 )assets

Totaltangible (b) $ 16,487,352 $ 16,159,180 $ 15,164,750 $ 15,297,914 $ 13,630,575 assets

Risk-weighted (c) $ 12,188,988 $ 12,017,378 $ 11,963,269 $ 11,539,157 $ 11,427,297 assets



NET INCOME ADJUSTEDFOR INTANGIBLE AMORTIZATION

Net income $ 51,962 $ 51,217 $ 54,440 $ 32,150 $ 22,218

Plus:Intangible 500 564 564 552 609 amortizationnet of tax

Net incomeadjusted for $ 52,462 $ 51,781 $ 55,004 $ 32,702 $ 22,827 intangibleamortization

Period endcommon shares (d) 63,394,522 63,424,526 63,423,820 63,422,439 63,396,912 outstanding



TANGIBLECOMMON EQUITY MEASUREMENTS

Return onaverage 15.56 % 15.47 % 16.82 % 10.32 % 7.34 %tangibleequity (1)

Tangibleequity/ (a)/ 8.30 % 8.34 % 8.68 % 8.37 % 9.27 %tangible (b)assets

Tangibleequity/ (a)/ 11.23 % 11.22 % 11.01 % 11.09 % 11.05 %risk-weighted (c)assets

Tangible book (a)/value (d) $ 21.59 $ 21.26 $ 20.76 $ 20.18 $ 19.92 *1,000



COMMON EQUITY TIER 1 CAPITAL (CET1)

Totalshareholders' $ 1,759,705 $ 1,741,117 $ 1,710,041 $ 1,673,944 $ 1,652,399 equity

CECLtransition 26,829 31,199 32,647 32,693 26,476 adjustment

AOCI-related 16,506 1,051 (5,684 ) (10,565 ) (7,698 )adjustments

CET1adjustments anddeductions:

Goodwill netof associateddeferred tax (370,288 ) (371,333 ) (371,345 ) (371,342 ) (367,825 )liabilities(DTLs)

Otheradjustmentsand (5,675 ) (6,190 ) (6,770 ) (7,352 ) (6,269 )deductionsfor CET1 (2)

CET1 capital (e) 1,427,077 1,395,844 1,358,889 1,317,378 1,297,083

Additionaltier 1capital 60,000 60,000 60,000 60,000 60,000 instrumentsplus relatedsurplus

Tier 1 $ 1,487,077 $ 1,455,844 $ 1,418,889 $ 1,377,378 $ 1,357,083 capital



Common equity (e)/tier 1 (c) 11.71 % 11.62 % 11.36 % 11.42 % 11.35 %capital ratio

(1)

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

(2)

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

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands except per share data)(unaudited)

Note 8 - 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:

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands except per share data)(unaudited)

Note 8 - 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

3/31/2021 12/31/ 9/30/2020 6/30/2020 3/31/2020 2020



Net interest $ 102,336 $ 111,378 $ 106,207 $ 105,000 $ 103,952 income (GAAP)

Noninterest income 60,583 66,117 73,701 69,511 65,264 (GAAP)

Pre-provision (a) $ 162,919 $ 177,495 $ 179,908 $ 174,511 $ 169,216 revenue



Noninterest $ 112,181 $ 118,807 $ 113,959 $ 118,659 $ 123,810 expense (GAAP)

Less: Voluntaryearly retirement - - - - (4,375 )program

Credit lossexpense related to 9,367 1,087 3,004 (6,242 ) (6,783 )off-balance sheetcredit exposures

Adjustednoninterest (b) $ 121,548 $ 119,894 $ 116,963 $ 112,417 $ 112,652 expense - PPNR(Non-GAAP)



(a)PPNR (Non-GAAP) - $ 41,371 $ 57,601 $ 62,945 $ 62,094 $ 56,564 (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

3/31/2021 3/31/2020

Amount Diluted Amount Diluted EPS EPS



Net Income (GAAP) $ 51,962 $ 0.82 $ 22,218 $ 0.35



Significantnon-routine transactions (net oftaxes):



Voluntary early - - 3,281 0.05 retirement program

Net Income adjusted for significant

non-routinetransactions $ 51,962 $ 0.82 $ 25,499 $ 0.40 (Non-GAAP)



Reported Adjusted Reported Adjusted

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

Return on average 11.98 % n/a 5.45 % 6.25 %equity

Return on average 15.56 % n/a 7.34 % 8.39 %tangible equity

Return on average 1.26 % n/a 0.66 % 0.75 %assets



n/a - not applicable



TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSMarch 31, 2021($ in thousands)(unaudited)

Note 8 - Non-GAAP Financial Measures (continued)

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

Quarter Ended

3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020



Totalnoninterest $ 112,181 $ 118,807 $ 113,959 $ 118,659 $ 123,810 expense (GAAP)

Other realLess: estate expense, (324 ) 812 (1,203 ) (271 ) (1,294 ) net

Amortization of (666 ) (752 ) (752 ) (736 ) (812 ) intangibles

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

Credit loss expense related 9,367 1,087 3,004 (6,242 ) (6,783 ) to off-balance sheet exposures

Charitable contributions resulting in (350 ) (375 ) (375 ) (375 ) (375 ) state tax credits

Adjustednoninterest (c) $ 120,208 $ 119,579 $ 114,633 $ 111,035 $ 110,171 expense(Non-GAAP)



Net interest $ 102,336 $ 111,378 $ 106,207 $ 105,000 $ 103,952 income (GAAP)

TaxAdd: equivalent 2,894 2,939 2,969 3,007 3,108 adjustment

Net interestincome-FTE (a) $ 105,230 $ 114,317 $ 109,176 $ 108,007 $ 107,060 (Non-GAAP)



Noninterest $ 60,583 $ 66,117 $ 73,701 $ 69,511 $ 65,264 income (GAAP)

PartnershipAdd: amortization 1,522 1,877 1,457 1,205 1,161 for tax credit purposes

Adjustednoninterest (b) $ 62,105 $ 67,994 $ 75,158 $ 70,716 $ 66,425 income(Non-GAAP)



Adjusted revenue (a)+ $ 167,335 $ 182,311 $ 184,334 $ 178,723 $ 173,485 (Non-GAAP) (b)



(c)/Efficiency ratio ((a) 71.84 % 65.59 % 62.19 % 62.13 % 63.50 %(Non-GAAP) + (b))

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CONTACT: Trustmark Investor Contacts: Thomas C. Owens Treasurer and Principal Financial Officer 601-208-7853

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

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