Business Wire | Jul 27, 2021 04:30PM EDT

Trustmark Corporation Announces Second Quarter 2021 Financial Results

Jul. 27, 2021

JACKSON, Miss.--(BUSINESS WIRE)--Jul. 27, 2021--Trustmark Corporation (NASDAQGS: TRMK) reported net income of $48.0 million in the second quarter of 2021, representing diluted earnings per share of $0.76. This level of earnings resulted in a return on average tangible equity of 13.96% and a return on average assets of 1.13%. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2021, to shareholders of record on September 1, 2021.

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Second Quarter Highlights

* Pre-provision net revenue totaled $57.2 million, a linked-quarter increase of 38.2%. Please refer to the Consolidated Financial Information, Note 8 - Non-GAAP Financial Measures. * Sale of $354.2 million of Paycheck Protection Program (PPP) loans originated in 2021 resulted in accelerated recognition of $18.6 million in origination fees, which is included in net interest income * Credit quality remained solid; nonperforming assets declined 17.9% linked-quarter * Continued steady growth in loans held for investment (HFI) and deposits * Noninterest expense declined 2.4% linked-quarter

Duane A. Dewey, President and CEO, stated, "Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner. The success of these efforts is reflected in solid growth in our traditional banking and mortgage businesses as well as strong performance in our insurance and wealth management businesses. Earlier this year, we introduced redesigned digital channels to enhance the customer experience and provide expanded sales capabilities, including on-line account openings. Customers have embraced these offerings and we look forward to leveraging these new tools to expand relationships and profitably generate additional revenue.

"We are pleased to have been recognized during the second quarter by Forbes as the Best-in-State Bank in Mississippi in 2021, based upon independent customer satisfaction surveys. This is affirmation that our associates are providing the financial solutions and convenience our customers' desire," said Dewey

Balance Sheet Management

* Loans HFI totaled $10.2 billion, up 1.7% from the prior quarter and 5.1% year-over-year * Investment securities totaled $3.0 billion, up 5.3% from the prior quarter and 17.2% year-over-year * PPP loans totaled $166.1 million, down 75.6% from the prior quarter and 82.3% year-over-year * Deposits totaled $14.6 billion, up 1.7% from the prior quarter and 8.3% year-over-year * Maintained strong capital position with CET1 ratio of 11.76% and total risk-based capital ratio of 14.10%

Loans HFI totaled $10.2 billion at June 30, 2021, reflecting an increase of $169.2 million, or 1.7%, linked-quarter and $493.1 million, or 5.1%, year-over-year. The linked-quarter growth primarily reflects increases in municipal loans, 1-4 family mortgage loans, loans secured by nonfarm, nonresidential properties, and construction loans, which were offset in part by a decline in other real estate secured loans. Trustmark's loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.6 billion at June 30, 2021, up $248.6 million, or 1.7%, from the prior quarter and $1.1 billion, or 8.3%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 69.4% of total deposits at June 30, 2021. Noninterest-bearing deposits represented 30.4% of total deposits at the end of the second quarter. Interest-bearing deposit costs totaled 0.19% in the second quarter, a decrease of 3 basis points from the prior quarter. The total cost of interest-bearing liabilities was 0.25% in the second quarter of 2021, a decrease of 3 basis points from the prior quarter.

During the second quarter, Trustmark repurchased $20.8 million, or approximately 630 thousand of its common shares. During the first six months of 2021, Trustmark repurchased $25.0 million, or approximately 775 thousand of its common shares. At June 30, 2021, Trustmark had $75.0 million in remaining authority under its existing stock repurchase program, which expires on 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 June 30, 2021, Trustmark's tangible equity-to-tangible assets ratio was 8.31% while its total risk-based capital ratio was 14.10%. Tangible book value per share was $22.13 at June 30, 2021, up 2.5% linked-quarter and 9.7% year-over-year.

Credit Quality

* Allowance for credit losses (ACL) represented 537.35% of nonaccrual loans, excluding individually evaluated loans at June 30, 2021 * Net charge-offs totaled $1.2 million in the second quarter * Loans remaining under a COVID-19 related concession represented approximately 19 basis points of loans HFI at June 30, 2021

Nonaccrual loans totaled $51.4 million at June 30, 2021, down $12.1 million from the prior quarter and up $1.5 million year-over-year. Other real estate totaled $9.4 million, reflecting a $1.2 million decrease from the prior quarter and decline of $8.8 million year-over-year. Collectively, nonperforming assets totaled $60.9 million at June 30, 2021, reflecting a linked-quarter decrease of $13.3 million and year-over-year decline of $7.4 million.

The provision for credit losses for loans HFI was a negative $4.0 million in the second quarter. Negative provisioning was primarily driven by decreases in individually analyzed reserves, qualitative reserves due to improvements in credit quality, and improving economic forecasts. The provision for credit losses for off-balance sheet credit exposures was $4.5 million in the second quarter. Off-balance sheet expense was primarily driven by an increase in off-balance sheet exposure as well as the implementation of probability of default and loss given default floors at a portfolio level to ensure appropriate risk is reflected as macroeconomic conditions improve. Collectively, the provision for credit losses totaled $537 thousand in the second quarter compared to negative $19.9 million in the prior quarter and expense of $24.4 million in the second quarter of 2020.

Allocation of Trustmark's $104.0 million allowance for credit losses on loans HFI represented 1.04% of commercial loans and 0.98% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.02% at June 30, 2021. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

* Total revenue increased $12.9 million, or 7.9%, linked-quarter * Net interest income (FTE) expanded $17.2 million, or 16.3%, linked-quarter * Excluding PPP interest and fees, net interest income (FTE) increased $836 thousand linked-quarter * Noninterest income totaled $56.4 million, representing 32.1% of total revenue in the second quarter * Wealth Management revenue increased 6.3% linked-quarter and 18.2% year-over-year

Revenue in the second quarter totaled $175.8 million, an increase of $12.9 million, or 7.9%, from the prior quarter and $1.3 million, or 0.8%, from the same quarter in the prior year. The linked-quarter increase reflects $18.6 million of PPP loan origination fees attributable to the previously announced sale of $354.2 million in PPP loans during the second quarter.

Net interest income (FTE) in the second quarter totaled $122.4 million, resulting in a net interest margin of 3.16%, up 35 basis points from the prior quarter. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.94% during the second quarter, a decrease of 5 basis points when compared to the prior quarter. Continued low interest rates decreased the yield on the loans HFI and held for sale portfolio as well as the securities portfolio, and were partially offset by lower costs on interest-bearing deposits.

Noninterest income in the second quarter totaled $56.4 million, a decrease of $4.2 million from the prior quarter and $13.1 million year-over-year. The linked quarter and year-over-year changes are principally attributable to lower mortgage banking revenue. Mortgage loan production in the second quarter totaled $736.8 million, down 3.9% from the prior quarter and 13.7% year-over-year. Mortgage banking revenue totaled $17.3 million in the second quarter, a decrease of $3.5 million from the prior quarter and $16.4 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.

Wealth management revenue totaled $8.9 million in the second quarter, an increase of $530 thousand, or 6.3%, from the prior quarter and $1.4 million, or 18.2%, year-over-year. The growth is attributable to increased trust and investment and brokerage business. Insurance revenue totaled $12.2 million in the second quarter, down 1.8%, or $228 thousand, from the prior quarter due to seasonality and up 2.9%, or $349 thousand, year-over-year. Service charges on deposit accounts increased $257 thousand, or 3.5%, from the prior quarter and $1.2 million, or 19.0%, year-over-year. Bank card and other fees decreased $1.2 million from the prior quarter and increased $584 thousand year-over-year. The linked-quarter decline reflects reduced customer derivative revenue.

Noninterest Expense

* Noninterest expense totaled $118.7 million in the second quarter, down $2.9 million, or 2.4%, from the prior quarter * Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses and charitable contributions resulting in state tax credits, declined $3.9 million, or 3.3%, from the prior quarter; please refer to the Consolidated Financial Information, Note 8 - Non-GAAP Financial Measures * Efficiency ratio improved to 64.31% in the second quarter

Adjusted noninterest expense in the second quarter was $116.3 million, down $3.9 million, or 3.3%, from the prior quarter. Salaries and employee benefits decreased $1.0 million linked-quarter principally due to the seasonality of payroll taxes in the prior quarter. Services and fees decreased $715 thousand and total equipment expense declined $677 thousand in the second quarter compared to the prior quarter. Total other expense in the second quarter declined $1.4 million, or 9.6%, from the prior quarter. Other real estate expense, net totaled $1.5 million in the second quarter compared to $324 thousand in the prior quarter, reflecting increased valuation allowances on other real estate.

"We continued to implement strategic initiatives designed to improve efficiency, accelerate growth and provide innovation while maintaining solid risk management and our corporate culture," said Dewey. During the first six months of 2021, Trustmark continued to realign delivery channels and closed nine offices reflecting changing customer preferences and the continued migration to mobile and digital banking channels. Additionally, Trustmark opened three new offices, one each in the Birmingham, AL MSA, Jackson, MS MSA, and Memphis, TN MSA. Each of these offices features a design that integrates myTeller(r) interactive teller machine (ITM) technology as well as provides enhanced areas for customer interaction.

"In addition to branch realignment initiatives, we recently announced a voluntary early retirement program for eligible associates, who have until July 31, 2021, to elect to participate in the program. Most participants are expected to retire effective August 31, 2021. Based upon participation, we plan to redesign workflows and restructure the organization to leverage investments in technology, enhance the customer experience and improve efficiency. We anticipate providing additional information regarding this program in our third quarter earnings release," said Dewey.

"Trustmark has a program to systematically invest in and upgrade technology. In recent years, investments in state-of-the-art technology were made in Trustmark's insurance, wealth management and mortgage banking areas as well as in human resources and accounting systems. We also made significant upgrades to our mobile banking platform, ITM network and digital marketing programs. Collectively, these investments have well-positioned Trustmark for additional growth and expansion. Over the last 36 months, we have been working toward the implementation of a new core banking system for consumer and commercial loans, deposits and customer information. This implementation, which we have named Core Optimization for Relationship Enhancement (CORE), is a multi-year project, the first phase of which will occur later this year. These investments will better position Trustmark for continued growth, enhance efficiency, and improve the customers' experience," said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 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, August 11, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10158119.

Trustmark is a financial services company providing banking and financial solutions through 180 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 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 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 INFORMATIONJune 30, 2021($ in thousands)(unaudited) Linked Quarter Year over YearQUARTERLY AVERAGE 6/30/2021 3/31/2021 6/30/2020 $ Change % $ Change %BALANCES Change ChangeSecurities $ 2,339,662 $ 2,098,089 $ 1,724,320 $ 241,573 11.5 % $ 615,342 35.7 %AFS-taxableSecurities 5,174 5,190 9,827 (16 ) -0.3 % (4,653 ) -47.3 %AFS-nontaxableSecurities 441,688 489,260 655,085 (47,572 ) -9.7 % (213,397 ) -32.6 %HTM-taxableSecurities 10,958 24,070 25,538 (13,112 ) -54.5 % (14,580 ) -57.1 %HTM-nontaxableTotal securities 2,797,482 2,616,609 2,414,770 180,873 6.9 % 382,712 15.8 %

Paycheck protection 648,222 598,139 764,416 50,083 8.4 % (116,194 ) -15.2 %program loans (PPP)Loans (includes 10,315,927 10,316,319 9,908,132 (392 ) 0.0 % 407,795 4.1 %loans held forsale)Fed funds sold and 55 136 113 (81 ) -59.6 % (58 ) -51.3 %reverse repurchasesOther earning 1,750,385 1,667,906 854,642 82,479 4.9 % 895,743 n/m assetsTotal earning 15,512,071 15,199,109 13,942,073 312,962 2.1 % 1,569,998 11.3 %assetsAllowance forcredit losses (112,346 ) (119,557 ) (103,006 ) 7,211 6.0 % (9,340 ) -9.1 %(ACL), loans held for investment(LHFI)Other assets 1,622,388 1,601,250 1,685,317 21,138 1.3 % (62,929 ) -3.7 %

Total assets $ 17,022,113 $ 16,680,802 $ 15,524,384 $ 341,311 2.0 % $ 1,497,729 9.6 %

Interest-bearing $ 4,056,910 $ 3,743,651 $ 3,832,372 $ 313,259 8.4 % $ 224,538 5.9 %demand depositsSavings deposits 4,627,180 4,659,037 4,180,540 (31,857 ) -0.7 % 446,640 10.7 %

Time deposits 1,301,896 1,371,830 1,578,737 (69,934 ) -5.1 % (276,841 ) -17.5 %

Total 9,985,986 9,774,518 9,591,649 211,468 2.2 % 394,337 4.1 %interest-bearingdepositsFed funds purchased 174,620 166,909 105,696 7,711 4.6 % 68,924 65.2 %and repurchasesOther borrowings 132,199 166,926 107,533 (34,727 ) -20.8 % 24,666 22.9 %

Subordinated notes 122,897 122,875 - 22 0.0 % 122,897 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesTotal 10,477,558 10,293,084 9,866,734 184,474 1.8 % 610,824 6.2 %interest-bearingliabilitiesNoninterest-bearing 4,512,268 4,363,559 3,645,761 148,709 3.4 % 866,507 23.8 %depositsOther liabilities 251,582 264,808 346,173 (13,226 ) -5.0 % (94,591 ) -27.3 %

Total liabilities 15,241,408 14,921,451 13,858,668 319,957 2.1 % 1,382,740 10.0 %

Shareholders' 1,780,705 1,759,351 1,665,716 21,354 1.2 % 114,989 6.9 %equityTotal liabilities $ 17,022,113 $ 16,680,802 $ 15,524,384 $ 341,311 2.0 % $ 1,497,729 9.6 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited)Linked QuarterYear over YearPERIOD END BALANCES6/30/20213/31/20216/30/2020$ Change% Change$ Change% ChangeCash and due from banks$

2,267,224

$

1,774,541

$

1,026,640

$

492,683

27.8

%

$

1,240,584

n/m

Fed funds sold and reverse repurchases-

-

-

-

n/m

-

n/m

Securities available for sale2,548,739

2,337,676

1,884,153

211,063

9.0

%

664,586

35.3

%

Securities held to maturity433,012

493,738

660,048

(60,726

)

-12.3

%

(227,036

)

-34.4

%

PPP loans166,119

679,725

939,783

(513,606

)

-75.6

%

(773,664

)

-82.3

%

Loans held for sale (LHFS)332,132

412,999

355,089

(80,867

)

-19.6

%

(22,957

)

-6.5

%

Loans held for investment (LHFI)10,152,869

9,983,704

9,659,806

169,165

1.7

%

493,063

5.1

%

ACL LHFI(104,032

)

(109,191

)

(119,188

)

5,159

-4.7

%

15,156

-12.7

%

Net LHFI10,048,837

9,874,513

9,540,618

174,324

1.8

%

508,219

5.3

%

Premises and equipment, net200,970

199,098

190,567

1,872

0.9

%

10,403

5.5

%

Mortgage servicing rights80,764

83,035

57,811

(2,271

)

-2.7

%

22,953

39.7

%

Goodwill384,237

384,237

385,270

-

0.0

%

(1,033

)

-0.3

%

Identifiable intangible assets6,170

6,724

8,895

(554

)

-8.2

%

(2,725

)

-30.6

%

Other real estate9,439

10,651

18,276

(1,212

)

-11.4

%

(8,837

)

-48.4

%

Operating lease right-of-use assets33,201

33,704

29,819

(503

)

-1.5

%

3,382

11.3

%

Other assets587,288

587,672

595,110

(384

)

-0.1

%

(7,822

)

-1.3

%

Total assets$

17,098,132

$

16,878,313

$

15,692,079

$

219,819

1.3

%

$

1,406,053

9.0

%

Deposits:Noninterest-bearing$

4,446,991

$

4,705,991

$

3,880,540

$

(259,000

)

-5.5

%

$

566,451

14.6

%

Interest-bearing10,185,093

9,677,449

9,624,933

507,644

5.2

%

560,160

5.8

%

Total deposits14,632,084

14,383,440

13,505,473

248,644

1.7

%

1,126,611

8.3

%

Fed funds purchased and repurchases157,176

160,991

70,255

(3,815

)

-2.4

%

86,921

n/m

Other borrowings117,223

145,994

152,860

(28,771

)

-19.7

%

(35,637

)

-23.3

%

Subordinated notes122,932

122,877

-

55

0.0

%

122,932

n/m

Junior subordinated debt securities61,856

61,856

61,856

-

0.0

%

-

0.0

%

ACL on off-balance sheet credit exposures33,733

29,205

42,663

4,528

15.5

%

(8,930

)

-20.9

%

Operating lease liabilities34,959

35,389

31,076

(430

)

-1.2

%

3,883

12.5

%

Other liabilities158,860

178,856

153,952

(19,996

)

-11.2

%

4,908

3.2

%

Total liabilities15,318,823

15,118,608

14,018,135

200,215

1.3

%

1,300,688

9.3

%

Common stock13,079

13,209

13,214

(130

)

-1.0

%

(135

)

-1.0

%

Capital surplus210,420

229,892

230,613

(19,472

)

-8.5

%

(20,193

)

-8.8

%

Retained earnings1,566,451

1,533,110

1,419,552

33,341

2.2

%

146,899

10.3

%

Accum other comprehensive income (loss), net of tax(10,641

)

(16,506

)

10,565

5,865

35.5

%

(21,206

)

n/m

Total shareholders' equity1,779,309

1,759,705

1,673,944

19,604

1.1

%

105,365

6.3

%

Total liabilities and equity$

17,098,132

$

16,878,313

$

15,692,079

$

219,819

1.3

%

$

1,406,053

9.0

%

n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited) Linked Quarter Year over YearPERIOD END BALANCES 6/30/2021 3/31/2021 6/30/2020 $ Change % $ Change % Change ChangeCash and due from $ 2,267,224 $ 1,774,541 $ 1,026,640 $ 492,683 27.8 % $ 1,240,584 n/m banksFed funds sold and - - - - n/m - n/m reverse repurchasesSecurities 2,548,739 2,337,676 1,884,153 211,063 9.0 % 664,586 35.3 %available for saleSecurities held to 433,012 493,738 660,048 (60,726 ) -12.3 % (227,036 ) -34.4 %maturityPPP loans 166,119 679,725 939,783 (513,606 ) -75.6 % (773,664 ) -82.3 %

Loans held for sale 332,132 412,999 355,089 (80,867 ) -19.6 % (22,957 ) -6.5 %(LHFS)Loans held for 10,152,869 9,983,704 9,659,806 169,165 1.7 % 493,063 5.1 %investment (LHFI)ACL LHFI (104,032 ) (109,191 ) (119,188 ) 5,159 -4.7 % 15,156 -12.7 %

Net LHFI 10,048,837 9,874,513 9,540,618 174,324 1.8 % 508,219 5.3 %

Premises and 200,970 199,098 190,567 1,872 0.9 % 10,403 5.5 %equipment, netMortgage servicing 80,764 83,035 57,811 (2,271 ) -2.7 % 22,953 39.7 %rightsGoodwill 384,237 384,237 385,270 - 0.0 % (1,033 ) -0.3 %

Identifiable 6,170 6,724 8,895 (554 ) -8.2 % (2,725 ) -30.6 %intangible assetsOther real estate 9,439 10,651 18,276 (1,212 ) -11.4 % (8,837 ) -48.4 %

Operating lease 33,201 33,704 29,819 (503 ) -1.5 % 3,382 11.3 %right-of-use assetsOther assets 587,288 587,672 595,110 (384 ) -0.1 % (7,822 ) -1.3 %

Total assets $ 17,098,132 $ 16,878,313 $ 15,692,079 $ 219,819 1.3 % $ 1,406,053 9.0 %

Deposits:Noninterest-bearing $ 4,446,991 $ 4,705,991 $ 3,880,540 $ (259,000 ) -5.5 % $ 566,451 14.6 %

Interest-bearing 10,185,093 9,677,449 9,624,933 507,644 5.2 % 560,160 5.8 %

Total deposits 14,632,084 14,383,440 13,505,473 248,644 1.7 % 1,126,611 8.3 %

Fed funds purchased 157,176 160,991 70,255 (3,815 ) -2.4 % 86,921 n/m and repurchasesOther borrowings 117,223 145,994 152,860 (28,771 ) -19.7 % (35,637 ) -23.3 %

Subordinated notes 122,932 122,877 - 55 0.0 % 122,932 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesACL on off-balance 33,733 29,205 42,663 4,528 15.5 % (8,930 ) -20.9 %sheet creditexposuresOperating lease 34,959 35,389 31,076 (430 ) -1.2 % 3,883 12.5 %liabilitiesOther liabilities 158,860 178,856 153,952 (19,996 ) -11.2 % 4,908 3.2 %

Total liabilities 15,318,823 15,118,608 14,018,135 200,215 1.3 % 1,300,688 9.3 %

Common stock 13,079 13,209 13,214 (130 ) -1.0 % (135 ) -1.0 %

Capital surplus 210,420 229,892 230,613 (19,472 ) -8.5 % (20,193 ) -8.8 %

Retained earnings 1,566,451 1,533,110 1,419,552 33,341 2.2 % 146,899 10.3 %

Accum othercomprehensive (10,641 ) (16,506 ) 10,565 5,865 35.5 % (21,206 ) n/m income (loss), net of taxTotal shareholders' 1,779,309 1,759,705 1,673,944 19,604 1.1 % 105,365 6.3 %equityTotal liabilities $ 17,098,132 $ 16,878,313 $ 15,692,079 $ 219,819 1.3 % $ 1,406,053 9.0 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands except per share data)(unaudited)Quarter EndedLinked QuarterYear over YearINCOME STATEMENTS6/30/20213/31/20216/30/2020$ Change% Change$ Change% ChangeInterest and fees on LHFS & LHFI-FTE$

93,698

$

93,394

$

99,300

$

304

0.3%

$

(5,602)

-5.6%

Interest and fees on PPP loans25,555

9,241

5,044

16,314

n/m

20,511

n/m

Interest on securities-taxable8,991

8,938

12,762

53

0.6%

(3,771)

-29.5%

Interest on securities-tax exempt-FTE149

290

315

(141)

-48.6%

(166)

-52.7%

Interest on fed funds sold and reverse repurchases-

-

-

-

n/m

-

n/m

Other interest income489

503

239

(14)

-2.8%

250

n/m

Total interest income-FTE128,882

112,366

117,660

16,516

14.7%

11,222

9.5%

Interest on deposits4,630

5,223

8,730

(593)

-11.4%

(4,100)

-47.0%

Interest on fed funds purchased and repurchases59

56

42

3

5.4%

17

40.5%

Other interest expense1,813

1,857

881

(44)

-2.4%

932

n/m

Total interest expense6,502

7,136

9,653

(634)

-8.9%

(3,151)

-32.6%

Net interest income-FTE122,380

105,230

108,007

17,150

16.3%

14,373

13.3%

Provision for credit losses, LHFI(3,991)

(10,501)

18,185

6,510

62.0%

(22,176)

n/m

Provision for credit losses, off-balance sheet credit exposures (1)4,528

(9,367)

6,242

13,895

n/m

(1,714)

-27.5%

Net interest income after provision-FTE121,843

125,098

83,580

(3,255)

-2.6%

38,263

45.8%

Service charges on deposit accounts7,613

7,356

6,397

257

3.5%

1,216

19.0%

Bank card and other fees8,301

9,472

7,717

(1,171)

-12.4%

584

7.6%

Mortgage banking, net17,333

20,804

33,745

(3,471)

-16.7%

(16,412)

-48.6%

Insurance commissions12,217

12,445

11,868

(228)

-1.8%

349

2.9%

Wealth management8,946

8,416

7,571

530

6.3%

1,375

18.2%

Other, net2,001

2,090

2,213

(89)

-4.3%

(212)

-9.6%

Total noninterest income56,411

60,583

69,511

(4,172)

-6.9%

(13,100)

-18.8%

Salaries and employee benefits70,115

71,162

66,107

(1,047)

-1.5%

4,008

6.1%

Services and fees21,769

22,484

20,567

(715)

-3.2%

1,202

5.8%

Net occupancy-premises6,578

6,795

6,587

(217)

-3.2%

(9)

-0.1%

Equipment expense5,567

6,244

5,620

(677)

-10.8%

(53)

-0.9%

Other real estate expense, net1,511

324

271

1,187

n/m

1,240

n/m

Other expense13,139

14,539

13,265

(1,400)

-9.6%

(126)

-0.9%

Total noninterest expense118,679

121,548

112,417

(2,869)

-2.4%

6,262

5.6%

Income before income taxes and tax eq adj59,575

64,133

40,674

(4,558)

-7.1%

18,901

46.5%

Tax equivalent adjustment2,957

2,894

3,007

63

2.2%

(50)

-1.7%

Income before income taxes56,618

61,239

37,667

(4,621)

-7.5%

18,951

50.3%

Income taxes8,637

9,277

5,517

(640)

-6.9%

3,120

56.6%

Net income$

47,981

$

51,962

$

32,150

$

(3,981)

-7.7%

$

15,831

49.2%

Per share dataEarnings per share - basic$

0.76

$

0.82

$

0.51

$

(0.06)

-7.3%

$

0.25

49.0%

Earnings per share - diluted$

0.76

$

0.82

$

0.51

$

(0.06)

-7.3%

$

0.25

49.0%

Dividends per share$

0.23

$

0.23

$

0.23

-

0.0%

-

0.0%

Weighted average shares outstandingBasic63,214,593

63,395,911

63,416,307

Diluted63,409,683

63,562,503

63,555,065

Period end shares outstanding62,773,226

63,394,522

63,422,439

(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands except per share data)(unaudited) Quarter Ended Linked Quarter Year over YearINCOME STATEMENTS 6/30/2021 3/31/2021 6/30/2020 $ Change % $ Change % Change ChangeInterest and fees $ 93,698 $ 93,394 $ 99,300 $ 304 0.3% $ (5,602) -5.6%on LHFS & LHFI-FTEInterest and fees 25,555 9,241 5,044 16,314 n/m 20,511 n/mon PPP loansInterest on 8,991 8,938 12,762 53 0.6% (3,771) -29.5%securities-taxableInterest on 149 290 315 (141) -48.6% (166) -52.7%securities-taxexempt-FTEInterest on fedfunds sold and - - - - n/m - n/mreverserepurchasesOther interest 489 503 239 (14) -2.8% 250 n/mincomeTotal interest 128,882 112,366 117,660 16,516 14.7% 11,222 9.5%income-FTEInterest on 4,630 5,223 8,730 (593) -11.4% (4,100) -47.0%depositsInterest on fed 59 56 42 3 5.4% 17 40.5%funds purchasedand repurchasesOther interest 1,813 1,857 881 (44) -2.4% 932 n/mexpenseTotal interest 6,502 7,136 9,653 (634) -8.9% (3,151) -32.6%expenseNet interest 122,380 105,230 108,007 17,150 16.3% 14,373 13.3%income-FTEProvision for (3,991) (10,501) 18,185 6,510 62.0% (22,176) n/mcredit losses,LHFIProvision forcredit losses, 4,528 (9,367) 6,242 13,895 n/m (1,714) -27.5%off-balance sheet credit exposures(1)Net interest 121,843 125,098 83,580 (3,255) -2.6% 38,263 45.8%income afterprovision-FTEService charges on 7,613 7,356 6,397 257 3.5% 1,216 19.0%deposit accountsBank card and 8,301 9,472 7,717 (1,171) -12.4% 584 7.6%other feesMortgage banking, 17,333 20,804 33,745 (3,471) -16.7% (16,412) -48.6%netInsurance 12,217 12,445 11,868 (228) -1.8% 349 2.9%commissionsWealth management 8,946 8,416 7,571 530 6.3% 1,375 18.2%

Other, net 2,001 2,090 2,213 (89) -4.3% (212) -9.6%

Total noninterest 56,411 60,583 69,511 (4,172) -6.9% (13,100) -18.8%incomeSalaries and 70,115 71,162 66,107 (1,047) -1.5% 4,008 6.1%employee benefitsServices and fees 21,769 22,484 20,567 (715) -3.2% 1,202 5.8%

Net 6,578 6,795 6,587 (217) -3.2% (9) -0.1%occupancy-premisesEquipment expense 5,567 6,244 5,620 (677) -10.8% (53) -0.9%

Other real estate 1,511 324 271 1,187 n/m 1,240 n/mexpense, netOther expense 13,139 14,539 13,265 (1,400) -9.6% (126) -0.9%

Total noninterest 118,679 121,548 112,417 (2,869) -2.4% 6,262 5.6%expenseIncome before 59,575 64,133 40,674 (4,558) -7.1% 18,901 46.5%income taxes andtax eq adjTax equivalent 2,957 2,894 3,007 63 2.2% (50) -1.7%adjustmentIncome before 56,618 61,239 37,667 (4,621) -7.5% 18,951 50.3%income taxesIncome taxes 8,637 9,277 5,517 (640) -6.9% 3,120 56.6%

Net income $ 47,981 $ 51,962 $ 32,150 $ (3,981) -7.7% $ 15,831 49.2%

Per share dataEarnings per share $ 0.76 $ 0.82 $ 0.51 $ (0.06) -7.3% $ 0.25 49.0%- basic Earnings per share $ 0.76 $ 0.82 $ 0.51 $ (0.06) -7.3% $ 0.25 49.0%- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 - 0.0% - 0.0%share Weighted averageshares outstandingBasic 63,214,593 63,395,911 63,416,307

Diluted 63,409,683 63,562,503 63,555,065

Period end shares 62,773,226 63,394,522 63,422,439outstanding (1) During the second quarter of 2021, Trustmark reclassified its credit lossexpense related to off-balance sheet credit exposures from noninterest expenseto provision for credit losses, off-balance sheet credit exposures. Priorperiods have been reclassified accordingly. n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited)Quarter EndedLinked QuarterYear over YearNONPERFORMING ASSETS (1)6/30/20213/31/20216/30/2020$ Change% Change$ Change% ChangeNonaccrual LHFIAlabama$

8,952

$

9,161

$

4,392

$

(209

)

-2.3

%

$

4,560

n/m

Florida467

607

687

(140

)

-23.1

%

(220

)

-32.0

%

Mississippi (2)23,422

35,534

37,884

(12,112

)

-34.1

%

(14,462

)

-38.2

%

Tennessee (3)10,751

12,451

6,125

(1,700

)

-13.7

%

4,626

75.5

%

Texas7,856

5,761

906

2,095

36.4

%

6,950

n/m

Total nonaccrual LHFI51,448

63,514

49,994

(12,066

)

-19.0

%

1,454

2.9

%

Other real estateAlabama2,830

3,085

4,766

(255

)

-8.3

%

(1,936

)

-40.6

%

Florida-

-

3,665

-

n/m

(3,665

)

-100.0

%

Mississippi (2)6,550

7,566

9,408

(1,016

)

-13.4

%

(2,858

)

-30.4

%

Tennessee (3)59

-

437

59

n/m

(378

)

-86.5

%

Texas-

-

-

-

n/m

-

n/m

Total other real estate9,439

10,651

18,276

(1,212

)

-11.4

%

(8,837

)

-48.4

%

Total nonperforming assets$

60,887

$

74,165

$

68,270

$

(13,278

)

-17.9

%

$

(7,383

)

-10.8

%

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

423

$

2,593

$

807

$

(2,170

)

-83.7

%

$

(384

)

-47.6

%

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

81,538

$

109,566

$

56,269

$

(28,028

)

-25.6

%

$

25,269

44.9

%

Quarter EndedLinked QuarterYear over YearACL LHFI (1)6/30/20213/31/20216/30/2020$ Change% Change$ Change% ChangeBeginning Balance$

109,191

$

117,306

$

100,564

$

(8,115

)

-6.9

%

$

8,627

8.6

%

CECL adoption adjustments:LHFI-

-

-

-

n/m

-

n/m

Acquired loan transfers-

-

-

-

n/m

-

n/m

Provision for credit losses, LHFI(3,991

)

(10,501

)

18,185

6,510

62.0

%

(22,176

)

n/m

Charge-offs(4,828

)

(1,245

)

(1,870

)

(3,583

)

n/m

(2,958

)

n/m

Recoveries3,660

3,631

2,309

29

0.8

%

1,351

58.5

%

Net (charge-offs) recoveries(1,168

)

2,386

439

(3,554

)

n/m

(1,607

)

n/m

Ending Balance$

104,032

$

109,191

$

119,188

$

(5,159

)

-4.7

%

$

(15,156

)

-12.7

%

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

203

$

102

$

526

$

101

99.0

%

$

(323

)

-61.4

%

Florida167

30

(127

)

137

n/m

294

n/m

Mississippi (2)(3,071

)

2,207

(86

)

(5,278

)

n/m

(2,985

)

n/m

Tennessee (3)1,031

47

66

984

n/m

965

n/m

Texas502

-

60

502

n/m

442

n/m

Total net (charge-offs) recoveries$

(1,168

)

$

2,386

$

439

$

(3,554

)

n/m

$

(1,607

)

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 FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited) Quarter Ended Linked Quarter Year over YearNONPERFORMING 6/30/2021 3/31/2021 6/30/2020 $ Change % $ Change % ChangeASSETS (1) ChangeNonaccrual LHFIAlabama $ 8,952 $ 9,161 $ 4,392 $ (209 ) -2.3 % $ 4,560 n/m

Florida 467 607 687 (140 ) -23.1 % (220 ) -32.0 %

Mississippi (2) 23,422 35,534 37,884 (12,112 ) -34.1 % (14,462 ) -38.2 %

Tennessee (3) 10,751 12,451 6,125 (1,700 ) -13.7 % 4,626 75.5 %

Texas 7,856 5,761 906 2,095 36.4 % 6,950 n/m

Total 51,448 63,514 49,994 (12,066 ) -19.0 % 1,454 2.9 %nonaccrual LHFIOther realestateAlabama 2,830 3,085 4,766 (255 ) -8.3 % (1,936 ) -40.6 %

Florida - - 3,665 - n/m (3,665 ) -100.0 %

Mississippi (2) 6,550 7,566 9,408 (1,016 ) -13.4 % (2,858 ) -30.4 %

Tennessee (3) 59 - 437 59 n/m (378 ) -86.5 %

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

Total other 9,439 10,651 18,276 (1,212 ) -11.4 % (8,837 ) -48.4 %real estateTotal $ 60,887 $ 74,165 $ 68,270 $ (13,278 ) -17.9 % $ (7,383 ) -10.8 %nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 423 $ 2,593 $ 807 $ (2,170 ) -83.7 % $ (384 ) -47.6 %

LHFS-GuaranteedGNMA servicedloans(no obligation $ 81,538 $ 109,566 $ 56,269 $ (28,028 ) -25.6 % $ 25,269 44.9 %to repurchase) Quarter Ended Linked Quarter Year over YearACL LHFI (1) 6/30/2021 3/31/2021 6/30/2020 $ Change % $ Change % Change ChangeBeginning $ 109,191 $ 117,306 $ 100,564 $ (8,115 ) -6.9 % $ 8,627 8.6 %BalanceCECL adoptionadjustments:LHFI - - - - n/m - n/m

Acquired loan - - - - n/m - n/m transfersProvision for (3,991 ) (10,501 ) 18,185 6,510 62.0 % (22,176 ) n/m credit losses,LHFICharge-offs (4,828 ) (1,245 ) (1,870 ) (3,583 ) n/m (2,958 ) n/m

Recoveries 3,660 3,631 2,309 29 0.8 % 1,351 58.5 %

Net (1,168 ) 2,386 439 (3,554 ) n/m (1,607 ) n/m (charge-offs)recoveriesEnding Balance $ 104,032 $ 109,191 $ 119,188 $ (5,159 ) -4.7 % $ (15,156 ) -12.7 %

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 203 $ 102 $ 526 $ 101 99.0 % $ (323 ) -61.4 %

Florida 167 30 (127 ) 137 n/m 294 n/m

Mississippi (2) (3,071 ) 2,207 (86 ) (5,278 ) n/m (2,985 ) n/m

Tennessee (3) 1,031 47 66 984 n/m 965 n/m

Texas 502 - 60 502 n/m 442 n/m

Total net $ (1,168 ) $ 2,386 $ 439 $ (3,554 ) n/m $ (1,607 ) 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 INFORMATIONJune 30, 2021($ in thousands)(unaudited)Quarter EndedSix Months EndedAVERAGE BALANCES6/30/20213/31/202112/31/20209/30/20206/30/20206/30/20216/30/2020Securities AFS-taxable$

2,339,662

$

2,098,089

$

1,902,162

$

1,857,050

$

1,724,320

$

2,219,543

$

1,672,371

Securities AFS-nontaxable5,174

5,190

5,206

5,973

9,827

5,182

15,942

Securities HTM-taxable441,688

489,260

550,563

608,585

655,085

465,343

674,913

Securities HTM-nontaxable10,958

24,070

24,752

25,508

25,538

17,478

25,606

Total securities2,797,482

2,616,609

2,482,683

2,497,116

2,414,770

2,707,546

2,388,832

PPP loans648,222

598,139

875,098

941,456

764,416

623,319

382,208

Loans (includes loans held for sale)10,315,927

10,316,319

10,231,671

10,162,379

9,908,132

10,316,122

9,793,153

Fed funds sold and reverse repurchases55

136

303

301

113

95

139

Other earning assets1,750,385

1,667,906

860,540

722,917

854,642

1,709,373

520,985

Total earning assets15,512,071

15,199,109

14,450,295

14,324,169

13,942,073

15,356,455

13,085,317

ACL LHFI(112,346

)

(119,557

)

(124,088

)

(121,842

)

(103,006

)

(115,932

)

(94,011

)

Other assets1,622,388

1,601,250

1,620,694

1,564,825

1,685,317

1,611,877

1,592,019

Total assets$

17,022,113

$

16,680,802

$

15,946,901

$

15,767,152

$

15,524,384

$

16,852,400

$

14,583,325

Interest-bearing demand deposits$

4,056,910

$

3,743,651

$

3,649,590

$

3,669,249

$

3,832,372

$

3,901,146

$

3,508,253

Savings deposits4,627,180

4,659,037

4,350,783

4,416,046

4,180,540

4,643,020

3,913,738

Time deposits1,301,896

1,371,830

1,436,677

1,507,348

1,578,737

1,336,670

1,598,022

Total interest-bearing deposits9,985,986

9,774,518

9,437,050

9,592,643

9,591,649

9,880,836

9,020,013

Fed funds purchased and repurchases174,620

166,909

170,474

84,077

105,696

170,786

176,605

Other borrowings132,199

166,926

173,525

167,262

107,533

149,467

96,406

Subordinated notes122,897

122,875

42,828

-

-

122,886

-

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

61,856

61,856

Total interest-bearing liabilities10,477,558

10,293,084

9,885,733

9,905,838

9,866,734

10,385,831

9,354,880

Noninterest-bearing deposits4,512,268

4,363,559

4,100,849

3,921,867

3,645,761

4,438,324

3,278,356

Other liabilities251,582

264,808

235,284

244,544

346,173

258,158

297,196

Total liabilities15,241,408

14,921,451

14,221,866

14,072,249

13,858,668

15,082,313

12,930,432

Shareholders' equity1,780,705

1,759,351

1,725,035

1,694,903

1,665,716

1,770,087

1,652,893

Total liabilities and equity$

17,022,113

$

16,680,802

$

15,946,901

$

15,767,152

$

15,524,384

$

16,852,400

$

14,583,325

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited) Quarter Ended Six Months EndedAVERAGE BALANCES 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020Securities AFS-taxable $ 2,339,662 $ 2,098,089 $ 1,902,162 $ 1,857,050 $ 1,724,320 $ 2,219,543 $ 1,672,371

Securities AFS-nontaxable 5,174 5,190 5,206 5,973 9,827 5,182 15,942

Securities HTM-taxable 441,688 489,260 550,563 608,585 655,085 465,343 674,913

Securities HTM-nontaxable 10,958 24,070 24,752 25,508 25,538 17,478 25,606

Total securities 2,797,482 2,616,609 2,482,683 2,497,116 2,414,770 2,707,546 2,388,832

PPP loans 648,222 598,139 875,098 941,456 764,416 623,319 382,208

Loans (includes loans held for 10,315,927 10,316,319 10,231,671 10,162,379 9,908,132 10,316,122 9,793,153 sale)Fed funds sold and reverse 55 136 303 301 113 95 139 repurchasesOther earning assets 1,750,385 1,667,906 860,540 722,917 854,642 1,709,373 520,985

Total earning assets 15,512,071 15,199,109 14,450,295 14,324,169 13,942,073 15,356,455 13,085,317

ACL LHFI (112,346 ) (119,557 ) (124,088 ) (121,842 ) (103,006 ) (115,932 ) (94,011 )

Other assets 1,622,388 1,601,250 1,620,694 1,564,825 1,685,317 1,611,877 1,592,019

Total assets $ 17,022,113 $ 16,680,802 $ 15,946,901 $ 15,767,152 $ 15,524,384 $ 16,852,400 $ 14,583,325

Interest-bearing demand $ 4,056,910 $ 3,743,651 $ 3,649,590 $ 3,669,249 $ 3,832,372 $ 3,901,146 $ 3,508,253 depositsSavings deposits 4,627,180 4,659,037 4,350,783 4,416,046 4,180,540 4,643,020 3,913,738

Time deposits 1,301,896 1,371,830 1,436,677 1,507,348 1,578,737 1,336,670 1,598,022

Total interest-bearing 9,985,986 9,774,518 9,437,050 9,592,643 9,591,649 9,880,836 9,020,013 depositsFed funds purchased and 174,620 166,909 170,474 84,077 105,696 170,786 176,605 repurchasesOther borrowings 132,199 166,926 173,525 167,262 107,533 149,467 96,406

Subordinated notes 122,897 122,875 42,828 - - 122,886 -

Junior subordinated debt 61,856 61,856 61,856 61,856 61,856 61,856 61,856 securitiesTotal interest-bearing 10,477,558 10,293,084 9,885,733 9,905,838 9,866,734 10,385,831 9,354,880 liabilitiesNoninterest-bearing deposits 4,512,268 4,363,559 4,100,849 3,921,867 3,645,761 4,438,324 3,278,356

Other liabilities 251,582 264,808 235,284 244,544 346,173 258,158 297,196

Total liabilities 15,241,408 14,921,451 14,221,866 14,072,249 13,858,668 15,082,313 12,930,432

Shareholders' equity 1,780,705 1,759,351 1,725,035 1,694,903 1,665,716 1,770,087 1,652,893

Total liabilities and equity $ 17,022,113 $ 16,680,802 $ 15,946,901 $ 15,767,152 $ 15,524,384 $ 16,852,400 $ 14,583,325

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited)PERIOD END BALANCES6/30/20213/31/202112/31/20209/30/20206/30/2020Cash and due from banks$

2,267,224

$

1,774,541

$

1,952,504

$

564,588

$

1,026,640

Fed funds sold and reverse repurchases-

-

50

50

-

Securities available for sale2,548,739

2,337,676

1,991,815

1,922,728

1,884,153

Securities held to maturity433,012

493,738

538,072

611,280

660,048

PPP loans166,119

679,725

610,134

944,270

939,783

LHFS332,132

412,999

446,951

485,103

355,089

LHFI10,152,869

9,983,704

9,824,524

9,847,728

9,659,806

ACL LHFI(104,032

)

(109,191

)

(117,306

)

(122,010

)

(119,188

)

Net LHFI10,048,837

9,874,513

9,707,218

9,725,718

9,540,618

Premises and equipment, net200,970

199,098

194,278

192,722

190,567

Mortgage servicing rights80,764

83,035

66,464

61,613

57,811

Goodwill384,237

384,237

385,270

385,270

385,270

Identifiable intangible assets6,170

6,724

7,390

8,142

8,895

Other real estate9,439

10,651

11,651

16,248

18,276

Operating lease right-of-use assets33,201

33,704

30,901

30,508

29,819

Other assets587,288

587,672

609,142

609,922

595,110

Total assets$

17,098,132

$

16,878,313

$

16,551,840

$

15,558,162

$

15,692,079

Deposits:Noninterest-bearing$

4,446,991

$

4,705,991

$

4,349,010

$

3,964,023

$

3,880,540

Interest-bearing10,185,093

9,677,449

9,699,754

9,258,390

9,624,933

Total deposits14,632,084

14,383,440

14,048,764

13,222,413

13,505,473

Fed funds purchased and repurchases157,176

160,991

164,519

153,834

70,255

Other borrowings117,223

145,994

168,252

178,599

152,860

Subordinated notes122,932

122,877

122,921

-

-

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

ACL on off-balance sheet credit exposures33,733

29,205

38,572

39,659

42,663

Operating lease liabilities34,959

35,389

32,290

31,838

31,076

Other liabilities158,860

178,856

173,549

159,922

153,952

Total liabilities15,318,823

15,118,608

14,810,723

13,848,121

14,018,135

Common stock13,079

13,209

13,215

13,215

13,214

Capital surplus210,420

229,892

233,120

231,836

230,613

Retained earnings1,566,451

1,533,110

1,495,833

1,459,306

1,419,552

Accum other comprehensive income (loss), net of tax(10,641

)

(16,506

)

(1,051

)

5,684

10,565

Total shareholders' equity1,779,309

1,759,705

1,741,117

1,710,041

1,673,944

Total liabilities and equity$

17,098,132

$

16,878,313

$

16,551,840

$

15,558,162

$

15,692,079

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited) PERIOD END BALANCES 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020Cash and due from $ 2,267,224 $ 1,774,541 $ 1,952,504 $ 564,588 $ 1,026,640 banksFed funds sold and - - 50 50 - reverse repurchasesSecurities 2,548,739 2,337,676 1,991,815 1,922,728 1,884,153 available for saleSecurities held to 433,012 493,738 538,072 611,280 660,048 maturityPPP loans 166,119 679,725 610,134 944,270 939,783

LHFS 332,132 412,999 446,951 485,103 355,089

LHFI 10,152,869 9,983,704 9,824,524 9,847,728 9,659,806

ACL LHFI (104,032 ) (109,191 ) (117,306 ) (122,010 ) (119,188 )

Net LHFI 10,048,837 9,874,513 9,707,218 9,725,718 9,540,618

Premises and 200,970 199,098 194,278 192,722 190,567 equipment, netMortgage servicing 80,764 83,035 66,464 61,613 57,811 rightsGoodwill 384,237 384,237 385,270 385,270 385,270

Identifiable 6,170 6,724 7,390 8,142 8,895 intangible assetsOther real estate 9,439 10,651 11,651 16,248 18,276

Operating lease 33,201 33,704 30,901 30,508 29,819 right-of-use assetsOther assets 587,288 587,672 609,142 609,922 595,110

Total assets $ 17,098,132 $ 16,878,313 $ 16,551,840 $ 15,558,162 $ 15,692,079

Deposits:Noninterest-bearing $ 4,446,991 $ 4,705,991 $ 4,349,010 $ 3,964,023 $ 3,880,540

Interest-bearing 10,185,093 9,677,449 9,699,754 9,258,390 9,624,933

Total deposits 14,632,084 14,383,440 14,048,764 13,222,413 13,505,473

Fed funds purchased 157,176 160,991 164,519 153,834 70,255 and repurchasesOther borrowings 117,223 145,994 168,252 178,599 152,860

Subordinated notes 122,932 122,877 122,921 - -

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securitiesACL on off-balance 33,733 29,205 38,572 39,659 42,663 sheet creditexposuresOperating lease 34,959 35,389 32,290 31,838 31,076 liabilitiesOther liabilities 158,860 178,856 173,549 159,922 153,952

Total liabilities 15,318,823 15,118,608 14,810,723 13,848,121 14,018,135

Common stock 13,079 13,209 13,215 13,215 13,214

Capital surplus 210,420 229,892 233,120 231,836 230,613

Retained earnings 1,566,451 1,533,110 1,495,833 1,459,306 1,419,552

Accum othercomprehensive (10,641 ) (16,506 ) (1,051 ) 5,684 10,565 income (loss), netof taxTotal shareholders' 1,779,309 1,759,705 1,741,117 1,710,041 1,673,944 equityTotal liabilities $ 17,098,132 $ 16,878,313 $ 16,551,840 $ 15,558,162 $ 15,692,079 and equity See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands except per share data)(unaudited)Quarter EndedSix Months EndedINCOME STATEMENTS6/30/20213/31/202112/31/20209/30/20206/30/20206/30/20216/30/2020Interest and fees on LHFS & LHFI-FTE$

93,698

$

93,394

$

96,453

$

97,429

$

99,300

$

187,092

$

208,657

Interest and fees on PPP loans25,555

9,241

14,870

6,729

5,044

34,796

5,044

Interest on securities-taxable8,991

8,938

9,998

12,542

12,762

17,929

25,710

Interest on securities-tax exempt-FTE149

290

293

301

315

439

772

Interest on fed funds sold and reverse repurchases-

-

-

1

-

-

-

Other interest income489

503

249

331

239

992

979

Total interest income-FTE128,882

112,366

121,863

117,333

117,660

241,248

241,162

Interest on deposits4,630

5,223

6,363

7,437

8,730

9,853

23,687

Interest on fed funds purchased and repurchases59

56

56

32

42

115

667

Other interest expense1,813

1,857

1,127

688

881

3,670

1,741

Total interest expense6,502

7,136

7,546

8,157

9,653

13,638

26,095

Net interest income-FTE122,380

105,230

114,317

109,176

108,007

227,610

215,067

Provision for credit losses, LHFI(3,991

)

(10,501

)

(4,413

)

1,760

18,185

(14,492

)

38,766

Provision for credit losses, off-balance sheet credit exposures (1)4,528

(9,367

)

(1,087

)

(3,004

)

6,242

(4,839

)

13,025

Net interest income after provision-FTE121,843

125,098

119,817

110,420

83,580

246,941

163,276

Service charges on deposit accounts7,613

7,356

8,283

7,577

6,397

14,969

16,429

Bank card and other fees8,301

9,472

9,107

8,843

7,717

17,773

13,072

Mortgage banking, net17,333

20,804

28,155

36,439

33,745

38,137

61,228

Insurance commissions12,217

12,445

10,196

11,562

11,868

24,662

23,418

Wealth management8,946

8,416

7,838

7,679

7,571

17,362

16,108

Other, net2,001

2,090

2,538

1,601

2,213

4,091

4,520

Total noninterest income56,411

60,583

66,117

73,701

69,511

116,994

134,775

Salaries and employee benefits70,115

71,162

69,660

67,342

66,107

141,277

135,255

Services and fees21,769

22,484

22,327

20,992

20,567

44,253

40,497

Net occupancy-premises6,578

6,795

6,616

7,000

6,587

13,373

12,873

Equipment expense5,567

6,244

6,213

5,828

5,620

11,811

11,236

Other real estate expense, net1,511

324

(812

)

1,203

271

1,835

1,565

Other expense13,139

14,539

15,890

14,598

13,265

27,678

28,018

Total noninterest expense118,679

121,548

119,894

116,963

112,417

240,227

229,444

Income before income taxes and tax eq adj59,575

64,133

66,040

67,158

40,674

123,708

68,607

Tax equivalent adjustment2,957

2,894

2,939

2,969

3,007

5,851

6,115

Income before income taxes56,618

61,239

63,101

64,189

37,667

117,857

62,492

Income taxes8,637

9,277

11,884

9,749

5,517

17,914

8,124

Net income$

47,981

$

51,962

$

51,217

$

54,440

$

32,150

$

99,943

$

54,368

Per share dataEarnings per share - basic$

0.76

$

0.82

$

0.81

$

0.86

$

0.51

$

1.58

$

0.86

Earnings per share - diluted$

0.76

$

0.82

$

0.81

$

0.86

$

0.51

$

1.57

$

0.85

Dividends per share$

0.23

$

0.23

$

0.23

$

0.23

$

0.23

$

0.46

$

0.46

Weighted average shares outstandingBasic63,214,593

63,395,911

63,424,219

63,422,692

63,416,307

63,304,751

63,586,468

Diluted63,409,683

63,562,503

63,616,767

63,581,964

63,555,065

63,465,515

63,721,728

Period end shares outstanding62,773,226

63,394,522

63,424,526

63,423,820

63,422,439

62,773,226

63,422,439

(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands except per share data)(unaudited) Quarter Ended Six Months EndedINCOME STATEMENTS 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020Interest and fees on $ 93,698 $ 93,394 $ 96,453 $ 97,429 $ 99,300 $ 187,092 $ 208,657LHFS & LHFI-FTEInterest and fees on 25,555 9,241 14,870 6,729 5,044 34,796 5,044PPP loansInterest on 8,991 8,938 9,998 12,542 12,762 17,929 25,710securities-taxableInterest on 149 290 293 301 315 439 772securities-taxexempt-FTEInterest on fed - - - 1 - - -funds sold andreverse repurchasesOther interest 489 503 249 331 239 992 979incomeTotal interest 128,882 112,366 121,863 117,333 117,660 241,248 241,162income-FTEInterest on deposits 4,630 5,223 6,363 7,437 8,730 9,853 23,687

Interest on fed 59 56 56 32 42 115 667funds purchased andrepurchasesOther interest 1,813 1,857 1,127 688 881 3,670 1,741expenseTotal interest 6,502 7,136 7,546 8,157 9,653 13,638 26,095expenseNet interest 122,380 105,230 114,317 109,176 108,007 227,610 215,067income-FTEProvision for credit (3,991 ) (10,501 ) (4,413 ) 1,760 18,185 (14,492 ) 38,766losses, LHFIProvision for creditlosses, off-balance 4,528 (9,367 ) (1,087 ) (3,004 ) 6,242 (4,839 ) 13,025sheet credit exposures(1)Net interest income 121,843 125,098 119,817 110,420 83,580 246,941 163,276after provision-FTEService charges on 7,613 7,356 8,283 7,577 6,397 14,969 16,429deposit accountsBank card and other 8,301 9,472 9,107 8,843 7,717 17,773 13,072feesMortgage banking, 17,333 20,804 28,155 36,439 33,745 38,137 61,228netInsurance 12,217 12,445 10,196 11,562 11,868 24,662 23,418commissionsWealth management 8,946 8,416 7,838 7,679 7,571 17,362 16,108

Other, net 2,001 2,090 2,538 1,601 2,213 4,091 4,520

Total noninterest 56,411 60,583 66,117 73,701 69,511 116,994 134,775incomeSalaries and 70,115 71,162 69,660 67,342 66,107 141,277 135,255employee benefitsServices and fees 21,769 22,484 22,327 20,992 20,567 44,253 40,497

Net 6,578 6,795 6,616 7,000 6,587 13,373 12,873occupancy-premisesEquipment expense 5,567 6,244 6,213 5,828 5,620 11,811 11,236

Other real estate 1,511 324 (812 ) 1,203 271 1,835 1,565expense, netOther expense 13,139 14,539 15,890 14,598 13,265 27,678 28,018

Total noninterest 118,679 121,548 119,894 116,963 112,417 240,227 229,444expenseIncome before income 59,575 64,133 66,040 67,158 40,674 123,708 68,607taxes and tax eq adjTax equivalent 2,957 2,894 2,939 2,969 3,007 5,851 6,115adjustmentIncome before income 56,618 61,239 63,101 64,189 37,667 117,857 62,492taxesIncome taxes 8,637 9,277 11,884 9,749 5,517 17,914 8,124

Net income $ 47,981 $ 51,962 $ 51,217 $ 54,440 $ 32,150 $ 99,943 $ 54,368

Per share dataEarnings per share - $ 0.76 $ 0.82 $ 0.81 $ 0.86 $ 0.51 $ 1.58 $ 0.86basic Earnings per share - $ 0.76 $ 0.82 $ 0.81 $ 0.86 $ 0.51 $ 1.57 $ 0.85diluted Dividends per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.46 $ 0.46

Weighted averageshares outstandingBasic 63,214,593 63,395,911 63,424,219 63,422,692 63,416,307 63,304,751 63,586,468

Diluted 63,409,683 63,562,503 63,616,767 63,581,964 63,555,065 63,465,515 63,721,728

Period end shares 62,773,226 63,394,522 63,424,526 63,423,820 63,422,439 62,773,226 63,422,439outstanding (1) During the second quarter of 2021, Trustmark reclassified its credit lossexpense related to off-balance sheet credit exposures from noninterest expenseto provision for credit losses, off-balance sheet credit exposures. Priorperiods have been reclassified accordingly. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONJune 30, 2021($ in thousands)(unaudited)Quarter EndedNONPERFORMING ASSETS (1)6/30/20213/31/202112/31/20209/30/20206/30/2020Nonaccrual LHFIAlabama$

8,952

$

9,161

$

9,221

$

3,860

$

4,392

Florida467

607

572

617

687

Mississippi (2)23,422

35,534

35,015

35,617

37,884

Tennessee (3)10,751

12,451

12,572

13,041

6,125

Texas7,856

5,761

5,748

721

906

Total nonaccrual LHFI

51,448

63,514

63,128

53,856

49,994

Other real estateAlabama2,830

3,085

3,271

3,725

4,766

Florida-

-

-

3,665

3,665

Mississippi (2)6,550

7,566

8,330

8,718

9,408

Tennessee (3)59

-

50

140

437

Texas-

-

-

-

-

Total other real estate9,439

10,651

11,651

16,248

18,276

Total nonperforming assets$

60,887

$

74,165

$

74,779

$

70,104

$

68,270

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

423

$

2,593

$

1,576

$

782

$

807

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

81,538

$

109,566

$

119,409

$

121,281

$

56,269

Quarter Ended

Six Months Ended

ACL LHFI (1)6/30/20213/31/202112/31/20209/30/20206/30/20206/30/20216/30/2020Beginning Balance$

109,191

$

117,306

$

122,010

$

119,188

$

100,564

$

117,306

$

84,277

CECL adoption adjustments:LHFI-

-

-

-

-

-

(3,039

)

Acquired loan transfers-

-

-

-

-

-

1,822

Provision for credit losses, LHFI(3,991

)

(10,501

)

(4,413

)

1,760

18,185

(14,492

)

38,766

Charge-offs(4,828

)

(1,245

)

(2,797

)

(1,263

)

(1,870

)

(6,073

)

(7,415

)

Recoveries3,660

3,631

2,506

2,325

2,309

7,291

4,777

Net (charge-offs) recoveries(1,168

)

2,386

(291

)

1,062

439

1,218

(2,638

)

Ending Balance$

104,032

$

109,191

$

117,306

$

122,010

$

119,188

$

104,032

$

119,188

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

203

$

102

$

(1,011

)

$

117

$

526

$

305

$

(554

)

Florida167

30

66

387

(127

)

197

(63

)

Mississippi (2)(3,071

)

2,207

332

442

(86

)

(864

)

40

Tennessee (3)1,031

47

303

42

66

1,078

(2,120

)

Texas502

-

19

74

60

502

59

Total net (charge-offs) recoveries$

(1,168

)

$

2,386

$

(291

)

$

1,062

$

439

$

1,218

$

(2,638

)

(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 INFORMATIONJune 30, 2021($ in thousands)(unaudited) Quarter EndedNONPERFORMING 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020ASSETS (1)Nonaccrual LHFIAlabama $ 8,952 $ 9,161 $ 9,221 $ 3,860 $ 4,392

Florida 467 607 572 617 687

Mississippi (2) 23,422 35,534 35,015 35,617 37,884

Tennessee (3) 10,751 12,451 12,572 13,041 6,125

Texas 7,856 5,761 5,748 721 906

Total 51,448 63,514 63,128 53,856 49,994 nonaccrual LHFI

Other realestateAlabama 2,830 3,085 3,271 3,725 4,766

Florida - - - 3,665 3,665

Mississippi (2) 6,550 7,566 8,330 8,718 9,408

Tennessee (3) 59 - 50 140 437

Texas - - - - -

Total other 9,439 10,651 11,651 16,248 18,276 real estateTotal $ 60,887 $ 74,165 $ 74,779 $ 70,104 $ 68,270 nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 423 $ 2,593 $ 1,576 $ 782 $ 807

LHFS-GuaranteedGNMA servicedloans(no obligation $ 81,538 $ 109,566 $ 119,409 $ 121,281 $ 56,269 to repurchase) Quarter Ended Six Months Ended

ACL LHFI (1) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020Beginning $ 109,191 $ 117,306 $ 122,010 $ 119,188 $ 100,564 $ 117,306 $ 84,277 BalanceCECL adoptionadjustments:LHFI - - - - - - (3,039 )

Acquired loan - - - - - - 1,822 transfersProvision for (3,991 ) (10,501 ) (4,413 ) 1,760 18,185 (14,492 ) 38,766 credit losses,LHFICharge-offs (4,828 ) (1,245 ) (2,797 ) (1,263 ) (1,870 ) (6,073 ) (7,415 )

Recoveries 3,660 3,631 2,506 2,325 2,309 7,291 4,777

Net (1,168 ) 2,386 (291 ) 1,062 439 1,218 (2,638 )(charge-offs)recoveriesEnding Balance $ 104,032 $ 109,191 $ 117,306 $ 122,010 $ 119,188 $ 104,032 $ 119,188

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 203 $ 102 $ (1,011 ) $ 117 $ 526 $ 305 $ (554 )

Florida 167 30 66 387 (127 ) 197 (63 )

Mississippi (2) (3,071 ) 2,207 332 442 (86 ) (864 ) 40

Tennessee (3) 1,031 47 303 42 66 1,078 (2,120 )

Texas 502 - 19 74 60 502 59

Total net $ (1,168 ) $ 2,386 $ (291 ) $ 1,062 $ 439 $ 1,218 $ (2,638 )(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 INFORMATIONJune 30, 2021(unaudited)Quarter EndedSix Months EndedFINANCIAL RATIOS AND OTHER DATA6/30/20213/31/202112/31/20209/30/20206/30/20206/30/20216/30/2020Return on average equity10.81

%

11.98

%

11.81

%

12.78

%

7.76

%

11.39

%

6.61

%

Return on average tangible equity13.96

%

15.56

%

15.47

%

16.82

%

10.32

%

14.75

%

8.84

%

Return on average assets1.13

%

1.26

%

1.28

%

1.37

%

0.83

%

1.20

%

0.75

%

Interest margin - Yield - FTE3.33

%

3.00

%

3.35

%

3.26

%

3.39

%

3.17

%

3.71

%

Interest margin - Cost0.17

%

0.19

%

0.21

%

0.23

%

0.28

%

0.18

%

0.40

%

Net interest margin - FTE3.16

%

2.81

%

3.15

%

3.03

%

3.12

%

2.99

%

3.31

%

Efficiency ratio (1)64.31

%

71.84

%

65.59

%

62.19

%

62.13

%

67.93

%

62.81

%

Full-time equivalent employees2,772

2,793

2,797

2,807

2,798

CREDIT QUALITY RATIOS (2)Net (recoveries) charge-offs / average loans0.05

%

-0.09

%

0.01

%

-0.04

%

-0.02

%

-0.02

%

0.05

%

Provision for credit losses, LHFI / average loans-0.16

%

-0.41

%

-0.17

%

0.07

%

0.74

%

-0.28

%

0.80

%

Nonaccrual LHFI / (LHFI + LHFS)0.49

%

0.61

%

0.61

%

0.52

%

0.50

%

Nonperforming assets / (LHFI + LHFS)0.58

%

0.71

%

0.73

%

0.68

%

0.68

%

Nonperforming assets / (LHFI + LHFS + other real estate)0.58

%

0.71

%

0.73

%

0.68

%

0.68

%

ACL LHFI / LHFI1.02

%

1.09

%

1.19

%

1.24

%

1.23

%

ACL LHFI-commercial / commercial LHFI1.04

%

1.13

%

1.20

%

1.20

%

1.15

%

ACL LHFI-consumer / consumer and home mortgage LHFI0.98

%

0.95

%

1.16

%

1.41

%

1.56

%

ACL LHFI / nonaccrual LHFI202.21

%

171.92

%

185.82

%

226.55

%

238.40

%

ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)537.35

%

437.08

%

572.69

%

593.72

%

561.04

%

CAPITAL RATIOSTotal equity / total assets10.41

%

10.43

%

10.52

%

10.99

%

10.67

%

Tangible equity / tangible assets8.31

%

8.30

%

8.34

%

8.68

%

8.37

%

Tangible equity / risk-weighted assets11.33

%

11.23

%

11.22

%

11.01

%

11.09

%

Tier 1 leverage ratio9.00

%

9.11

%

9.33

%

9.20

%

9.08

%

Common equity tier 1 capital ratio11.76

%

11.71

%

11.62

%

11.36

%

11.42

%

Tier 1 risk-based capital ratio12.25

%

12.20

%

12.11

%

11.86

%

11.94

%

Total risk-based capital ratio14.10

%

14.07

%

14.12

%

12.88

%

13.00

%

STOCK PERFORMANCEMarket value-Close$

30.80

$

33.66

$

27.31

$

21.41

$

24.52

Book value$

28.35

$

27.76

$

27.45

$

26.96

$

26.39

Tangible book value$

22.13

$

21.59

$

21.26

$

20.76

$

20.18

(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 FINANCIALSJune 30, 2021($ in thousands)(unaudited)

Note 1 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, Trustmark National Bank (TNB), to The Loan Source, Inc. (Loan Source), a firm with significant expertise in PPP loans. As a result of this transaction, Loan Source will assume responsibility for the servicing and forgiveness process for the loans it has acquired from Trustmark. This transaction will allow Trustmark to focus on more traditional lending efforts and increase its ability to provide customers with financial services in an improving economic environment.

On a pre-tax basis, Trustmark accelerated the recognition of unamortized PPP loan origination fees, net of cost, of approximately $18.6 million, in the second quarter of 2021 due to the sale of approximately $354.2 million in PPP loans. This revenue is substantially the same as Trustmark would expect to recognize upon the maturity or forgiveness of the PPP loans being sold in this transaction, and thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.

At June 30, 2021, Trustmark had 843 PPP loans outstanding that totaled $166.1 million (net of $2.1 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 Small Business Administration; 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 INFORMATIONJune 30, 2021(unaudited) Quarter Ended Six Months EndedFINANCIAL 6/30/ 6/30/RATIOS AND 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 2021 2020OTHER DATAReturn on 10.81 % 11.98 % 11.81 % 12.78 % 7.76 % 11.39 % 6.61 %average equityReturn on 13.96 % 15.56 % 15.47 % 16.82 % 10.32 % 14.75 % 8.84 %averagetangible equityReturn on 1.13 % 1.26 % 1.28 % 1.37 % 0.83 % 1.20 % 0.75 %average assetsInterest margin 3.33 % 3.00 % 3.35 % 3.26 % 3.39 % 3.17 % 3.71 %- Yield - FTEInterest margin 0.17 % 0.19 % 0.21 % 0.23 % 0.28 % 0.18 % 0.40 %- CostNet interest 3.16 % 2.81 % 3.15 % 3.03 % 3.12 % 2.99 % 3.31 %margin - FTEEfficiency 64.31 % 71.84 % 65.59 % 62.19 % 62.13 % 67.93 % 62.81 %ratio (1)Full-time 2,772 2,793 2,797 2,807 2,798 equivalentemployees CREDIT QUALITYRATIOS (2)Net(recoveries) 0.05 % -0.09 % 0.01 % -0.04 % -0.02 % -0.02 % 0.05 %charge-offs /average loansProvision forcredit losses, -0.16 % -0.41 % -0.17 % 0.07 % 0.74 % -0.28 % 0.80 %LHFI / averageloansNonaccrual LHFI 0.49 % 0.61 % 0.61 % 0.52 % 0.50 %/ (LHFI + LHFS)Nonperforming 0.58 % 0.71 % 0.73 % 0.68 % 0.68 %assets / (LHFI+ LHFS)Nonperformingassets / (LHFI 0.58 % 0.71 % 0.73 % 0.68 % 0.68 %+ LHFS + otherreal estate)ACL LHFI / LHFI 1.02 % 1.09 % 1.19 % 1.24 % 1.23 %

ACLLHFI-commercial 1.04 % 1.13 % 1.20 % 1.20 % 1.15 %/ commercialLHFIACLLHFI-consumer / 0.98 % 0.95 % 1.16 % 1.41 % 1.56 %consumer andhome mortgageLHFIACL LHFI / 202.21 % 171.92 % 185.82 % 226.55 % 238.40 %nonaccrual LHFIACL LHFI /nonaccrual LHFI(excl 537.35 % 437.08 % 572.69 % 593.72 % 561.04 %individuallyevaluatedloans) CAPITAL RATIOSTotal equity / 10.41 % 10.43 % 10.52 % 10.99 % 10.67 %total assetsTangible equity 8.31 % 8.30 % 8.34 % 8.68 % 8.37 %/ tangibleassetsTangible equity 11.33 % 11.23 % 11.22 % 11.01 % 11.09 %/ risk-weightedassetsTier 1 leverage 9.00 % 9.11 % 9.33 % 9.20 % 9.08 %ratioCommon equity 11.76 % 11.71 % 11.62 % 11.36 % 11.42 %tier 1 capitalratioTier 1 12.25 % 12.20 % 12.11 % 11.86 % 11.94 %risk-basedcapital ratioTotal 14.10 % 14.07 % 14.12 % 12.88 % 13.00 %risk-basedcapital ratio STOCKPERFORMANCEMarket $ 30.80 $ 33.66 $ 27.31 $ 21.41 $ 24.52 value-CloseBook value $ 28.35 $ 27.76 $ 27.45 $ 26.96 $ 26.39

Tangible book $ 22.13 $ 21.59 $ 21.26 $ 20.76 $ 20.18 value (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 FINANCIALSJune 30, 2021($ in thousands)(unaudited)

Note 1 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, Trustmark National Bank (TNB), to The Loan Source, Inc. (Loan Source), a firm with significant expertise in PPP loans. As a result of this transaction, Loan Source will assume responsibility for the servicing and forgiveness process for the loans it has acquired from Trustmark. This transaction will allow Trustmark to focus on more traditional lending efforts and increase its ability to provide customers with financial services in an improving economic environment.

On a pre-tax basis, Trustmark accelerated the recognition of unamortized PPP loan origination fees, net of cost, of approximately $18.6 million, in the second quarter of 2021 due to the sale of approximately $354.2 million in PPP loans. This revenue is substantially the same as Trustmark would expect to recognize upon the maturity or forgiveness of the PPP loans being sold in this transaction, and thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.

At June 30, 2021, Trustmark had 843 PPP loans outstanding that totaled $166.1 million (net of $2.1 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 Small Business Administration; 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:

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

SECURITIESAVAILABLE FOR SALE

U.S. Treasury $ 30,025 $ - $ - $ - $ - securities

U.S. Governmentagency 16,023 17,349 18,041 19,011 19,898 obligations

Obligations ofstates and 5,807 5,798 5,835 8,315 11,176 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 48,445 52,406 56,862 62,156 69,637 GNMA

Issued by FNMA 1,983,783 1,749,144 1,441,321 1,279,919 1,121,604 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 283,988 345,869 419,437 500,858 574,940 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 180,668 167,110 50,319 52,469 86,898 FNMA, FHLMC, orGNMA

Totalsecurities $ 2,548,739 $ 2,337,676 $ 1,991,815 $ 1,922,728 $ 1,884,153 available forsale



SECURITIES HELD TO MATURITY

Obligations ofstates and $ 12,994 $ 26,554 $ 26,584 $ 31,605 $ 31,629 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 6,249 7,268 7,598 8,244 10,306 GNMA

Issued by FNMA 53,406 61,855 67,944 78,213 86,346 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 291,477 324,360 360,361 399,400 435,333 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 68,886 73,701 75,585 93,818 96,434 FNMA, FHLMC, orGNMA

Totalsecurities held $ 433,012 $ 493,738 $ 538,072 $ 611,280 $ 660,048 to maturity

At June 30, 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 $7.5 million ($5.6 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 99.4% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody's. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSJune 30, 2021($ in thousands)(unaudited)

Note 3 - Loan Composition

LHFI consisted of the following during the periods presented:

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

Loans securedby real estate:

Construction,landdevelopment $ 1,360,302 $ 1,342,088 $ 1,309,039 $ 1,385,947 $ 1,277,277 and other landloans

Secured by 1-4family 1,810,396 1,742,782 1,741,132 1,775,400 1,813,525 residentialproperties

Secured bynonfarm, 2,819,662 2,799,195 2,709,026 2,707,627 2,610,392 nonresidentialproperties

Other real 1,078,622 1,135,005 1,065,964 887,792 884,815 estate secured

Commercial andindustrial 1,326,605 1,323,277 1,309,078 1,398,468 1,413,255 loans

Consumer loans 153,519 153,267 161,174 160,960 161,620

State andotherpolitical 1,136,764 1,036,694 1,000,776 935,349 931,536 subdivisionloans

Other loans 466,999 451,396 528,335 596,185 567,386

LHFI 10,152,869 9,983,704 9,824,524 9,847,728 9,659,806

ACL LHFI (104,032 ) (109,191 ) (117,306 ) (122,010 ) (119,188 )

Net LHFI $ 10,048,837 $ 9,874,513 $ 9,707,218 $ 9,725,718 $ 9,540,618

The following table presents the LHFI composition by region at June 30, 2021 and reflects each region's diversified mix of loans:

June 30, 2021

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 $ 1,360,302 $ 512,156 $ 57,415 $ 358,091 $ 36,934 $ 395,706 and other landloans

Secured by 1-4family 1,810,396 113,712 38,443 1,576,135 68,876 13,230 residentialproperties

Secured bynonfarm, 2,819,662 783,796 248,269 1,006,513 175,586 605,498 nonresidentialproperties

Other real 1,078,622 287,039 5,734 356,092 19,676 410,081 estate secured

Commercial andindustrial 1,326,605 212,425 21,180 585,821 298,249 208,930 loans

Consumer loans 153,519 22,792 7,660 99,067 19,496 4,504

State andotherpolitical 1,136,764 106,447 53,425 722,702 37,777 216,413 subdivisionloans

Other loans 466,999 77,295 12,964 290,024 65,816 20,900

Loans $ 10,152,869 $ 2,115,662 $ 445,090 $ 4,994,445 $ 722,410 $ 1,875,262



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

Lots $ 59,839 $ 22,570 $ 9,368 $ 20,283 $ 1,181 $ 6,437

Development 106,548 41,903 554 37,599 13,211 13,281

Unimproved 102,023 27,747 12,709 32,564 11,375 17,628 land

1-4 family 264,227 135,418 19,606 63,863 10,088 35,252 construction

Other 827,665 284,518 15,178 203,782 1,079 323,108 construction

Construction,landdevelopment $ 1,360,302 $ 512,156 $ 57,415 $ 358,091 $ 36,934 $ 395,706 and other landloans



TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSJune 30, 2021($ in thousands)(unaudited)

Note 3 - Loan Composition (continued)

June 30, 2021

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 $ 401,811 $ 158,862 $ 36,208 $ 108,021 $ 22,347 $ 76,373

Office 203,704 48,483 25,523 62,711 12,352 54,635

Hotel/motel 340,867 167,536 65,163 47,535 35,708 24,925

Mini-storage 138,841 22,969 2,151 66,392 382 46,947

Industrial 211,872 43,197 19,008 46,733 139 102,795

Health care 41,722 21,555 1,167 16,468 376 2,156

Convenience 22,052 6,742 200 3,737 564 10,809 stores

Nursing homes/ 154,351 84,686 - 43,067 6,598 20,000 senior living

Other 85,841 12,990 8,293 27,345 8,962 28,251

Total non-owner 1,601,061 567,020 157,713 422,009 87,428 366,891 occupied loans



Owner-occupied:

Office 174,051 40,219 41,695 54,589 8,149 29,399

Churches 100,575 20,331 6,439 50,387 10,056 13,362

Industrial 177,645 12,820 3,582 49,855 16,729 94,659 warehouses

Health care 139,456 25,317 7,019 94,162 2,313 10,645

Convenience 139,508 16,425 13,211 64,621 511 44,740 stores

Retail 68,652 13,448 9,815 20,565 10,382 14,442

Restaurants 54,470 3,838 4,609 31,637 14,101 285

Auto 55,141 6,664 267 23,099 25,111 - dealerships

Nursing homes/ 202,579 71,916 - 130,663 - - senior living

Other 106,524 5,798 3,919 64,926 806 31,075

Totalowner-occupied 1,218,601 216,776 90,556 584,504 88,158 238,607 loans

Loans securedby nonfarm, $ 2,819,662 $ 783,796 $ 248,269 $ 1,006,513 $ 175,586 $ 605,498 nonresidentialproperties

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 June 30, 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.

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSJune 30, 2021($ in thousands)(unaudited)

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

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

Quarter Ended Six Months Ended

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

Securities - 1.30 % 1.40 % 1.62 % 2.02 % 2.16 % 1.35 % 2.20 %taxable

Securities - 3.70 % 4.02 % 3.89 % 3.80 % 3.58 % 3.91 % 3.74 %nontaxable

Securities - 1.31 % 1.43 % 1.65 % 2.05 % 2.18 % 1.37 % 2.23 %total

PPP loans 15.81 % 6.27 % 6.76 % 2.84 % 2.65 % 11.26 % 2.65 %

Loans - LHFI & 3.64 % 3.67 % 3.75 % 3.81 % 4.03 % 3.66 % 4.28 %LHFS

Loans - total 4.36 % 3.81 % 3.99 % 3.73 % 3.93 % 4.09 % 4.22 %

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

Other earning 0.11 % 0.12 % 0.12 % 0.18 % 0.11 % 0.12 % 0.38 %assets

Total earning 3.33 % 3.00 % 3.35 % 3.26 % 3.39 % 3.17 % 3.71 %assets



Interest-bearing 0.19 % 0.22 % 0.27 % 0.31 % 0.37 % 0.20 % 0.53 %deposits

Fed fundspurchased & 0.14 % 0.14 % 0.13 % 0.15 % 0.16 % 0.14 % 0.76 %repurchases

Other borrowings 2.29 % 2.14 % 1.61 % 1.19 % 2.09 % 2.21 % 2.21 %

Totalinterest-bearing 0.25 % 0.28 % 0.30 % 0.33 % 0.39 % 0.26 % 0.56 %liabilities



Net interest 3.16 % 2.81 % 3.15 % 3.03 % 3.12 % 2.99 % 3.31 %margin

Net interestmargin excluding 2.94 % 2.99 % 3.09 % 3.20 % 3.35 % 2.96 % 3.44 %PPP loans andthe 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 June 30, 2021 and March 31, 2021, the average FRB balance totaled $1.700 billion and $1.618 billion, 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 2.94% for the second quarter of 2021, a decrease of 5 basis points when compared to the first quarter of 2021. 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 $1.3 million during the second quarter of 2021.

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSJune 30, 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 Six Months Ended

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

Mortgageservicing $ 6,318 $ 6,181 $ 6,227 $ 5,742 $ 5,893 $ 12,499 $ 11,712 income, net

Change in fairvalue-MSR from (5,029 ) (5,103 ) (5,177 ) (4,590 ) (4,214 ) (10,132 ) (6,821 )runoff

Gain on sales 14,778 19,456 28,014 34,472 34,078 34,234 48,417 of loans, net

Mortgagebanking income 16,067 20,534 29,064 35,624 35,757 36,601 53,308 before hedgeineffectiveness

Change in fairvalue-MSR from (4,465 ) 13,696 951 60 (3,159 ) 9,231 (27,158 )market changes

Change in fairvalue of 5,731 (13,426 ) (1,860 ) 755 1,147 (7,695 ) 35,078 derivatives

Net positive(negative) 1,266 270 (909 ) 815 (2,012 ) 1,536 7,920 hedgeineffectiveness

Mortgage $ 17,333 $ 20,804 $ 28,155 $ 36,439 $ 33,745 $ 38,137 $ 61,228 banking, net

Note 7 - Other Noninterest Income and Expense

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

Quarter Ended Six Months Ended

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

Partnershipamortizationfor tax $ (1,989 ) $ (1,522 ) $ (1,877 ) $ (1,457 ) $ (1,205 ) $ (3,511 ) $ (2,366 )creditpurposes

Increase inlifeinsurance 1,653 1,639 1,708 1,755 1,696 3,292 3,418 cashsurrendervalue

Othermiscellaneous 2,337 1,973 2,707 1,303 1,722 4,310 3,468 income

Total other, $ 2,001 $ 2,090 $ 2,538 $ 1,601 $ 2,213 $ 4,091 $ 4,520 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 Six Months Ended

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

Loan expense $ 3,738 $ 4,167 $ 4,243 $ 4,184 $ 3,619 $ 7,905 $ 6,751

Amortization of 553 666 752 752 736 1,219 1,548 intangibles

FDIC assessment 1,225 1,540 1,500 1,410 1,590 2,765 3,180 expense

Othermiscellaneous 7,623 8,166 9,395 8,252 7,320 15,789 16,539 expense

Total other $ 13,139 $ 14,539 $ 15,890 $ 14,598 $ 13,265 $ 27,678 $ 28,018 expense

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 FINANCIALSJune 30, 2021($ in thousands except per share data)(unaudited)

Note 8 - Non-GAAP Financial Measures (continued)

Quarter Ended Six Months Ended

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

TANGIBLE EQUITY

AVERAGE BALANCES

Total shareholders' $ 1,780,705 $ 1,759,351 $ 1,725,035 $ 1,694,903 $ 1,665,716 $ 1,770,087 $ 1,652,893 equity

Less: Goodwill (384,237 ) (385,155 ) (385,270 ) (385,270 ) (383,081 ) (384,694 ) (381,876 )

Identifiable (6,442 ) (7,118 ) (7,803 ) (8,550 ) (7,834 ) (6,778 ) (7,942 )intangible assets

Total average $ 1,390,026 $ 1,367,078 $ 1,331,962 $ 1,301,083 $ 1,274,801 $ 1,378,615 $ 1,263,075 tangible equity



PERIOD END BALANCES

Total shareholders' $ 1,779,309 $ 1,759,705 $ 1,741,117 $ 1,710,041 $ 1,673,944 equity

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

Identifiable (6,170 ) (6,724 ) (7,390 ) (8,142 ) (8,895 ) intangible assets

Total tangible (a) $ 1,388,902 $ 1,368,744 $ 1,348,457 $ 1,316,629 $ 1,279,779 equity



TANGIBLE ASSETS

Total assets $ 17,098,132 $ 16,878,313 $ 16,551,840 $ 15,558,162 $ 15,692,079

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

Identifiable (6,170 ) (6,724 ) (7,390 ) (8,142 ) (8,895 ) intangible assets

Total tangible (b) $ 16,707,725 $ 16,487,352 $ 16,159,180 $ 15,164,750 $ 15,297,914 assets

Risk-weighted assets (c) $ 12,256,492 $ 12,188,988 $ 12,017,378 $ 11,963,269 $ 11,539,157



NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION

Net income $ 47,981 $ 51,962 $ 51,217 $ 54,440 $ 32,150 $ 99,943 $ 54,368

Plus: Intangibleamortization net of 415 500 564 564 552 915 1,161 tax

Net income adjusted for $ 48,396 $ 52,462 $ 51,781 $ 55,004 $ 32,702 $ 100,858 $ 55,529 intangible amortization

Period end common (d) 62,773,226 63,394,522 63,424,526 63,423,820 63,422,439 shares outstanding



TANGIBLE COMMON EQUITY MEASUREMENTS

Return on average 13.96 % 15.56 % 15.47 % 16.82 % 10.32 % 14.75 % 8.84 %tangible equity (1)

Tangible equity/ (a)/ 8.31 % 8.30 % 8.34 % 8.68 % 8.37 % tangible assets (b)

Tangible equity/ (a)/ 11.33 % 11.23 % 11.22 % 11.01 % 11.09 % risk-weighted assets (c)

(a)/Tangible book value (d) $ 22.13 $ 21.59 $ 21.26 $ 20.76 $ 20.18 *1,000



COMMON EQUITY TIER 1 CAPITAL (CET1)

Total shareholders' $ 1,779,309 $ 1,759,705 $ 1,741,117 $ 1,710,041 $ 1,673,944 equity

CECL transition 26,671 26,829 31,199 32,647 32,693 adjustment

AOCI-related 10,641 16,506 1,051 (5,684 ) (10,565 ) adjustments

CET1 adjustments and deductions:

Goodwill net of associateddeferred tax liabilities (370,276 ) (370,288 ) (371,333 ) (371,345 ) (371,342 ) (DTLs)

Other adjustments and (5,243 ) (5,675 ) (6,190 ) (6,770 ) (7,352 ) deductions for CET1 (2)

CET1 capital (e) 1,441,102 1,427,077 1,395,844 1,358,889 1,317,378

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

Tier 1 capital $ 1,501,102 $ 1,487,077 $ 1,455,844 $ 1,418,889 $ 1,377,378



Common equity tier 1 (e)/ 11.76 % 11.71 % 11.62 % 11.36 % 11.42 % 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.

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSJune 30, 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 Six Months Ended

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



Net interest $ 119,423 $ 102,336 $ 111,378 $ 106,207 $ 105,000 $ 221,759 $ 208,952 income (GAAP)

Noninterest 56,411 60,583 66,117 73,701 69,511 116,994 134,775 income (GAAP)

Pre-provision (a) $ 175,834 $ 162,919 $ 177,495 $ 179,908 $ 174,511 $ 338,753 $ 343,727 revenue



Noninterestexpense $ 118,679 $ 121,548 $ 119,894 $ 116,963 $ 112,417 $ 240,227 $ 229,444 (GAAP)

Less:Voluntaryearly - - - - - - (4,375 )retirementprogram

Adjustednoninterestexpense - (b) $ 118,679 $ 121,548 $ 119,894 $ 116,963 $ 112,417 $ 240,227 $ 225,069 PPNR(Non-GAAP)



PPNR (a)(Non-GAAP) - $ 57,155 $ 41,371 $ 57,601 $ 62,945 $ 62,094 $ 98,526 $ 118,658 (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 Six Months Ended

6/30/2021 6/30/2020 6/30/2021 6/30/2020

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



Net Income $ 47,981 $ 0.76 $ 32,150 $ 0.51 $ 99,943 $ 1.57 $ 54,368 $ 0.85 (GAAP)



Significantnon-routinetransactions (net oftaxes):



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

Net Incomeadjusted for significant

non-routinetransactions $ 47,981 $ 0.76 $ 32,150 $ 0.51 $ 99,943 $ 1.57 $ 57,649 $ 0.90 (Non-GAAP)



Adjusted Adjusted Adjusted Adjusted Reported Reported Reported Reported (GAAP) (Non- (GAAP) (Non- (GAAP) (Non- (GAAP) (Non- GAAP) GAAP) GAAP) GAAP)

Return onaverage 10.81 % n/a 7.76 % n/a 11.39 % n/a 6.61 % 7.00 %equity

Return onaverage 13.96 % n/a 10.32 % n/a 14.75 % n/a 8.84 % 9.35 %tangibleequity

Return onaverage 1.13 % n/a 0.83 % n/a 1.20 % n/a 0.75 % 0.79 %assets



n/a - not applicable

TRUSTMARK CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIALSJune 30, 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 Six Months Ended

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



Totalnoninterest $ 118,679 $ 121,548 $ 119,894 $ 116,963 $ 112,417 240,227 $ 229,444 expense(GAAP)

Less: Otherreal estate (1,511 ) (324 ) 812 (1,203 ) (271 ) (1,835 ) (1,565 )expense, net

Amortizationof (553 ) (666 ) (752 ) (752 ) (736 ) (1,219 ) (1,548 )intangibles

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

Charitablecontributionsresulting in (355 ) (350 ) (375 ) (375 ) (375 ) (705 ) (750 )state taxcredits

Adjustednoninterest (c) $ 116,260 $ 120,208 $ 119,579 $ 114,633 $ 111,035 $ 236,468 $ 221,206 expense(Non-GAAP)



Net interest $ 119,423 $ 102,336 $ 111,378 $ 106,207 $ 105,000 $ 221,759 $ 208,952 income (GAAP)

Add: Taxequivalent 2,957 2,894 2,939 2,969 3,007 5,851 6,115 adjustment

Net interestincome-FTE (a) $ 122,380 $ 105,230 $ 114,317 $ 109,176 $ 108,007 $ 227,610 $ 215,067 (Non-GAAP)



Noninterest $ 56,411 $ 60,583 $ 66,117 $ 73,701 $ 69,511 $ 116,994 $ 134,775 income (GAAP)

Add:Partnershipamortization 1,989 1,522 1,877 1,457 1,205 3,511 2,366 for tax creditpurposes

Adjustednoninterest (b) $ 58,400 $ 62,105 $ 67,994 $ 75,158 $ 70,716 $ 120,505 $ 137,141 income(Non-GAAP)



Adjusted (a)+revenue (b) $ 180,780 $ 167,335 $ 182,311 $ 184,334 $ 178,723 $ 348,115 $ 352,208 (Non-GAAP)



Efficiency (c)/ratio ((a) 64.31 % 71.84 % 65.59 % 62.19 % 62.13 % 67.93 % 62.81 %(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