Business Wire | Oct 26, 2021 04:30PM EDT

Trustmark Corporation Announces Third Quarter 2021 Financial Results

Oct. 26, 2021

JACKSON, Miss.--(BUSINESS WIRE)--Oct. 26, 2021--Trustmark Corporation (NASDAQGS: TRMK) reported net income of $21.2 million in the third quarter of 2021, representing diluted earnings per share of $0.34. Third quarter results include costs of a previously announced voluntary early retirement program, which reduced net income by $4.3 million, or approximately $0.07 per diluted share. Results for the quarter also include a previously disclosed charge to resolve allegations by regulatory authorities regarding fair lending matters, which reduced net income by $5.0 million, or approximately $0.08 per diluted share. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable December 15, 2021, to shareholders of record on December 1, 2021.

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Third Quarter Highlights

* Voluntary early retirement program resulted in one-time, pre-tax charge of $5.7 million in the third quarter; expected pre-tax savings of approximately $1.3 million for the remainder of 2021 and $4.3 million in 2022 * Loans held for investment (HFI) increased $22.0 million, reflecting accelerated payoffs during the quarter while deposits expanded $290.8 million compared to the prior quarter * Investment securities increased $470.8 million in the third quarter as excess liquidity was deployed * Provision for credit losses, net totaled a negative $3.5 million, reflecting improved credit loss expectations * Adjusted noninterest expense totaled $116.6 million, up 0.3% linked-quarter; please refer to the Consolidated Financial Information, Note 10 - Non-GAAP Financial Measures

Duane A. Dewey, President and CEO, stated, "We made significant progress across the organization in the third quarter as reflected by continued balance sheet growth, strong credit quality, and disciplined expense management. Our associates are focused on expanding customer relationships, which is reflected in the solid performance of our banking, insurance, and wealth management businesses.

"Our third quarter results were impacted by our previously announced settlement with regulatory authorities to resolve fair lending allegations in our Memphis, Tennessee market. We entered into these settlements to avoid the distraction of protracted litigation and because we share the common goals of breaking down barriers to home financing and exploring innovative ways to help residents of underserved areas achieve the dream of homeownership. Our quarterly results also reflect the costs associated with our voluntary early retirement program, which was accepted by 98 associates, or 3.6% of our workforce. As you may recall, we also had a voluntary early retirement program in the first quarter of 2020 in which 107 associates, or 3.8% of the workforce at that time, elected to participate. Collectively, these programs have provided additional opportunities to redesign workflows and restructure the organization to leverage investments in technology and improve efficiency."

Balance Sheet Management

* Loans HFI totaled $10.2 billion, up 0.2% from the prior quarter and 3.3% year-over-year * Investment securities totaled $3.5 billion, up 15.8% from the prior quarter and 36.2% year-over-year * Noninterest-bearing deposits increased $540.9 million, or 12.2% linked-quarter * Maintained strong capital position with CET1 ratio of 11.68% and total risk-based capital ratio of 14.01%

Loans HFI totaled $10.2 billion at September 30, 2021, reflecting an increase of $22.0 million, or 0.2%, linked-quarter and $327.2 million, or 3.3%, year-over-year. The linked-quarter growth primarily reflects increases in loans secured by nonfarm, nonresidential properties and 1-4 family mortgage loans, which were largely offset by declines in construction loans, other real estate secured loans, and municipal loans. Trustmark's loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $14.9 billion at September 30, 2021, up $290.8 million, or 2.0%, from the prior quarter and $1.7 billion, or 12.9%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 68.2% of total deposits at September 30, 2021. Noninterest-bearing deposits represented 33.4% of total deposits at the end of the third quarter. Interest-bearing deposit costs totaled 0.14% in the third quarter, a decrease of 5 basis points from the prior quarter. The total cost of interest-bearing liabilities was 0.21% in the third quarter of 2021, a decrease of 4 basis points from the prior quarter.

During the third quarter, Trustmark repurchased $9.7 million, or approximately 319 thousand of its common shares. During the nine months ended September 30, 2021, Trustmark repurchased $34.6 million, or approximately 1.1 million of its common shares. At September 30, 2021, Trustmark had $65.4 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 September 30, 2021,Trustmark's tangible equity-to-tangible assets ratio was 8.12% while its total risk-based capital ratio was 14.01%.

Credit Quality

* Allowance for credit losses (ACL) represented 520.77% of nonaccrual loans, excluding individually evaluated loans at September 30, 2021 * Recoveries exceeded charge-offs by $2.5 million in the third quarter * Loans remaining under a COVID-19 related concession represented approximately 20 basis points of loans HFI at September 30, 2021

Nonaccrual loans totaled $66.2 million at September 30, 2021, up $14.8 million from the prior quarter and up $12.4 million year-over-year. Other real estate totaled $6.2 million, reflecting a $3.2 million decrease from the prior quarter and a decline of $10.0 million year-over-year. Collectively, nonperforming assets totaled $72.5 million at September 30, 2021, reflecting a linked-quarter increase of $11.6 million and year-over-year increase of $2.3 million.

The provision for credit losses for loans HFI was a negative $2.5 million in the third quarter. Negative provisioning was primarily due to improvements in credit quality and the economic forecasts. The provision for credit losses for off-balance sheet credit exposures was a negative $1.0 million in the third quarter and was primarily driven by decreases in the total reserve rates applied to the unfunded portion of the loan portfolio. Collectively, the provision for credit losses totaled a negative $3.5 million in the third quarter compared to an expense of $537 thousand in the prior quarter and a negative $1.2 million in the third quarter of 2020.

Allocation of Trustmark's $104.1 million allowance for credit losses on loans HFI represented 1.05% of commercial loans and 0.91% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 1.02% at September 30, 2021. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

* Excluding Paycheck Protection Program (PPP) interest and fees, net interest income (FTE) increased $2.9 million, or 2.9%, linked-quarter * Noninterest income totaled $54.1 million, representing 35.5% of total revenue in the third quarter * Mortgage banking revenue totaled $14.0 million on production of $708.8 million in the third quarter * Service charges on deposit accounts increased $1.3 million, or 17.0%, linked quarter

Revenue in the third quarter totaled $152.4 million, a decrease of $23.4 million, or 13.3%, from the prior quarter. During the third quarter, mortgage banking revenue declined $3.3 million while second quarter results included $18.6 million of PPP loan origination fees attributable to the sale of PPP loans.

Net interest income (FTE) in the third quarter totaled $101.2 million, resulting in a net interest margin of 2.57%. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.90% during the third quarter, a decrease of 4 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 of interest-bearing deposits.

Noninterest income in the third quarter totaled $54.1 million, a decrease of $2.3 million from the prior quarter and $19.6 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 third quarter totaled $708.8 million, down 3.8% from the prior quarter and 20.0% year-over-year. Mortgage banking revenue totaled $14.0 million in the third quarter, a decrease of $3.3 million from the prior quarter and $22.4 million year-over-year. The linked-quarter decline is attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market as well as reduced net hedge ineffectiveness.

Wealth management revenue totaled $9.1 million in the third quarter, an increase of $125 thousand, or 1.4%, from the prior quarter and $1.4 million, or 18.1%, year-over-year. The growth is attributable to increased trust and investment and brokerage business. Insurance revenue totaled $12.1 million in the third quarter, relatively unchanged from the prior quarter and up $571 thousand, or 4.9%, year-over-year due in part to increased property and casualty commissions. Service charges on deposit accounts increased $1.3 million, or 17.0%, from the prior quarter and $1.3 million, or 17.6%, year-over-year. Bank card and other fees increased $248 thousand from the prior quarter and decreased $294 thousand year-over-year. The linked-quarter and year-over-year changes are attributable to the level of customer derivative revenue.

Noninterest Expense

* Noninterest expense totaled $129.6 million in the third quarter and included $5.7 million in one-time expenses related to a voluntary early retirement program and $5.0 million regulatory settlement expenses * Adjusted noninterest expense, which excludes amortization of intangibles, ORE expenses, charitable contributions resulting in state tax credits, costs associated with the voluntary early retirement program and regulatory charges, totaled $116.6 million in the third quarter, an increase of 0.3% from the prior quarter and 1.8% year-over-year; please refer to the Consolidated Financial Information, Note 10 - Non-GAAP Financial Measures

Trustmark continued proactive measures to manage noninterest expense. During the third quarter, Trustmark completed a voluntary early retirement program. Of those eligible for the program, 98 associates, or 3.6% of the workforce, elected early retirement. A one-time, pre-tax charge of $5.7 million related to this program was incurred during the third quarter, reflecting $5.6 million in salaries and employee benefits expense and $89 thousand in other expense. The result of this program is expected to result in pre-tax savings of approximately $1.3 million in the fourth quarter of 2021 and $4.3 million in 2022.

Adjusted noninterest expense in the third quarter was $116.6 million, up $384 thousand, or 0.3%, from the prior quarter and $2.0 million, or 1.8%, year-over-year. Salaries and employee benefits expense increased $4.5 million linked-quarter; excluding the $5.6 million in charges related to the voluntary early retirement program, salary and employee benefits expense declined $1.1 million linked-quarter. Total other expense increased $5.4 million linked-quarter principally due to regulatory settlement expenses.

"Looking forward, Trustmark will continue to focus upon efficiency, growth, and innovation opportunities. We continue to redesign workflows and restructure the organization to leverage investments in technology, enhance the customer experience, and improve efficiency. We are focused on providing the services and advice our customers have come to expect while building long-term value for our shareholders," said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 27, 2021 at 8:30 a.m. Central Time to discuss the Corporation's financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, November 10, 2021, in archived format at the same web address or by calling (877) 344-7529, passcode 10160480.

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 INFORMATIONSeptember 30, 2021($ in thousands)(unaudited) Linked Quarter Year over YearQUARTERLY AVERAGE 9/30/2021 6/30/2021 9/30/2020 $ Change % $ Change %BALANCES Change ChangeSecurities $ 2,686,765 $ 2,339,662 $ 1,857,050 $ 347,103 14.8 % $ 829,715 44.7 %AFS-taxableSecurities 5,159 5,174 5,973 (15 ) -0.3 % (814 ) -13.6 %AFS-nontaxableSecurities 401,685 441,688 608,585 (40,003 ) -9.1 % (206,900 ) -34.0 %HTM-taxableSecurities 8,641 10,958 25,508 (2,317 ) -21.1 % (16,867 ) -66.1 %HTM-nontaxableTotal securities 3,102,250 2,797,482 2,497,116 304,768 10.9 % 605,134 24.2 %

Paycheck protection 122,176 648,222 941,456 (526,046 ) -81.2 % (819,280 ) -87.0 %program loans (PPP)Loans (includes 10,389,826 10,315,927 10,162,379 73,899 0.7 % 227,447 2.2 %loans held forsale)Fed funds sold and 69 55 301 14 25.5 % (232 ) -77.1 %reverse repurchasesOther earning 2,038,515 1,750,385 722,917 288,130 16.5 % 1,315,598 n/m assetsTotal earning 15,652,836 15,512,071 14,324,169 140,765 0.9 % 1,328,667 9.3 %assetsAllowance forcredit losses (104,857 ) (112,346 ) (121,842 ) 7,489 -6.7 % 16,985 13.9 %(ACL), loans heldfor investment(LHFI)Other assets 1,602,611 1,622,388 1,564,825 (19,777 ) -1.2 % 37,786 2.4 %

Total assets $ 17,150,590 $ 17,022,113 $ 15,767,152 $ 128,477 0.8 % $ 1,383,438 8.8 %

Interest-bearing $ 4,224,717 $ 4,056,910 $ 3,669,249 $ 167,807 4.1 % $ 555,468 15.1 %demand depositsSavings deposits 4,617,683 4,627,180 4,416,046 (9,497 ) -0.2 % 201,637 4.6 %

Time deposits 1,258,829 1,301,896 1,507,348 (43,067 ) -3.3 % (248,519 ) -16.5 %

Total 10,101,229 9,985,986 9,592,643 115,243 1.2 % 508,586 5.3 %interest-bearingdepositsFed funds purchased 147,635 174,620 84,077 (26,985 ) -15.5 % 63,558 75.6 %and repurchasesOther borrowings 109,735 132,199 167,262 (22,464 ) -17.0 % (57,527 ) -34.4 %

Subordinated notes 122,951 122,897 - 54 0.0 % 122,951 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesTotal 10,543,406 10,477,558 9,905,838 65,848 0.6 % 637,568 6.4 %interest-bearingliabilitiesNoninterest-bearing 4,566,924 4,512,268 3,921,867 54,656 1.2 % 645,057 16.4 %depositsOther liabilities 257,956 251,582 244,544 6,374 2.5 % 13,412 5.5 %

Total liabilities 15,368,286 15,241,408 14,072,249 126,878 0.8 % 1,296,037 9.2 %

Shareholders' 1,782,304 1,780,705 1,694,903 1,599 0.1 % 87,401 5.2 %equityTotal liabilities $ 17,150,590 $ 17,022,113 $ 15,767,152 $ 128,477 0.8 % $ 1,383,438 8.8 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2021($ in thousands)(unaudited)Linked QuarterYear over YearPERIOD END BALANCES9/30/20216/30/20219/30/2020$ Change% Change$ Change% ChangeCash and due from banks$

2,175,058

$

2,267,224

$

564,588

$

(92,166

)

-4.1

%

$

1,610,470

n/m

Fed funds sold and reverse repurchases-

-

50

-

n/m

(50

)

-100.0

%

Securities available for sale3,057,605

2,548,739

1,922,728

508,866

20.0

%

1,134,877

59.0

%

Securities held to maturity394,905

433,012

611,280

(38,107

)

-8.8

%

(216,375

)

-35.4

%

PPP loans46,486

166,119

944,270

(119,633

)

-72.0

%

(897,784

)

-95.1

%

Loans held for sale (LHFS)335,339

332,132

485,103

3,207

1.0

%

(149,764

)

-30.9

%

Loans held for investment (LHFI)10,174,899

10,152,869

9,847,728

22,030

0.2

%

327,171

3.3

%

ACL LHFI(104,073

)

(104,032

)

(122,010

)

(41

)

0.0

%

17,937

14.7

%

Net LHFI10,070,826

10,048,837

9,725,718

21,989

0.2

%

345,108

3.5

%

Premises and equipment, net201,937

200,970

192,722

967

0.5

%

9,215

4.8

%

Mortgage servicing rights84,101

80,764

61,613

3,337

4.1

%

22,488

36.5

%

Goodwill384,237

384,237

385,270

-

0.0

%

(1,033

)

-0.3

%

Identifiable intangible assets5,621

6,170

8,142

(549

)

-8.9

%

(2,521

)

-31.0

%

Other real estate6,213

9,439

16,248

(3,226

)

-34.2

%

(10,035

)

-61.8

%

Operating lease right-of-use assets34,689

33,201

30,508

1,488

4.5

%

4,181

13.7

%

Other assets567,627

587,288

609,922

(19,661

)

-3.3

%

(42,295

)

-6.9

%

Total assets$

17,364,644

$

17,098,132

$

15,558,162

$

266,512

1.6

%

$

1,806,482

11.6

%

Deposits:Noninterest-bearing$

4,987,885

$

4,446,991

$

3,964,023

$

540,894

12.2

%

$

1,023,862

25.8

%

Interest-bearing9,934,954

10,185,093

9,258,390

(250,139

)

-2.5

%

676,564

7.3

%

Total deposits14,922,839

14,632,084

13,222,413

290,755

2.0

%

1,700,426

12.9

%

Fed funds purchased and repurchases146,417

157,176

153,834

(10,759

)

-6.8

%

(7,417

)

-4.8

%

Other borrowings94,889

117,223

178,599

(22,334

)

-19.1

%

(83,710

)

-46.9

%

Subordinated notes122,987

122,932

-

55

0.0

%

122,987

n/m

Junior subordinated debt securities61,856

61,856

61,856

-

0.0

%

-

0.0

%

ACL on off-balance sheet credit exposures32,684

33,733

39,659

(1,049

)

-3.1

%

(6,975

)

-17.6

%

Operating lease liabilities36,531

34,959

31,838

1,572

4.5

%

4,693

14.7

%

Other liabilities177,494

158,860

159,922

18,634

11.7

%

17,572

11.0

%

Total liabilities15,595,697

15,318,823

13,848,121

276,874

1.8

%

1,747,576

12.6

%

Common stock13,014

13,079

13,215

(65

)

-0.5

%

(201

)

-1.5

%

Capital surplus201,837

210,420

231,836

(8,583

)

-4.1

%

(29,999

)

-12.9

%

Retained earnings1,573,176

1,566,451

1,459,306

6,725

0.4

%

113,870

7.8

%

Accumulated other comprehensive income (loss), net of tax(19,080

)

(10,641

)

5,684

(8,439

)

-79.3

%

(24,764

)

n/m

Total shareholders' equity1,768,947

1,779,309

1,710,041

(10,362

)

-0.6

%

58,906

3.4

%

Total liabilities and equity$

17,364,644

$

17,098,132

$

15,558,162

$

266,512

1.6

%

$

1,806,482

11.6

%

n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONSeptember 30, 2021($ in thousands)(unaudited) Linked Quarter Year over YearPERIOD END BALANCES 9/30/2021 6/30/2021 9/30/2020 $ Change % $ Change % Change ChangeCash and due from $ 2,175,058 $ 2,267,224 $ 564,588 $ (92,166 ) -4.1 % $ 1,610,470 n/m banksFed funds sold and - - 50 - n/m (50 ) -100.0 %reverse repurchasesSecurities 3,057,605 2,548,739 1,922,728 508,866 20.0 % 1,134,877 59.0 %available for saleSecurities held to 394,905 433,012 611,280 (38,107 ) -8.8 % (216,375 ) -35.4 %maturityPPP loans 46,486 166,119 944,270 (119,633 ) -72.0 % (897,784 ) -95.1 %

Loans held for sale 335,339 332,132 485,103 3,207 1.0 % (149,764 ) -30.9 %(LHFS)Loans held for 10,174,899 10,152,869 9,847,728 22,030 0.2 % 327,171 3.3 %investment (LHFI)ACL LHFI (104,073 ) (104,032 ) (122,010 ) (41 ) 0.0 % 17,937 14.7 %

Net LHFI 10,070,826 10,048,837 9,725,718 21,989 0.2 % 345,108 3.5 %

Premises and 201,937 200,970 192,722 967 0.5 % 9,215 4.8 %equipment, netMortgage servicing 84,101 80,764 61,613 3,337 4.1 % 22,488 36.5 %rightsGoodwill 384,237 384,237 385,270 - 0.0 % (1,033 ) -0.3 %

Identifiable 5,621 6,170 8,142 (549 ) -8.9 % (2,521 ) -31.0 %intangible assetsOther real estate 6,213 9,439 16,248 (3,226 ) -34.2 % (10,035 ) -61.8 %

Operating lease 34,689 33,201 30,508 1,488 4.5 % 4,181 13.7 %right-of-use assetsOther assets 567,627 587,288 609,922 (19,661 ) -3.3 % (42,295 ) -6.9 %

Total assets $ 17,364,644 $ 17,098,132 $ 15,558,162 $ 266,512 1.6 % $ 1,806,482 11.6 %

Deposits:Noninterest-bearing $ 4,987,885 $ 4,446,991 $ 3,964,023 $ 540,894 12.2 % $ 1,023,862 25.8 %

Interest-bearing 9,934,954 10,185,093 9,258,390 (250,139 ) -2.5 % 676,564 7.3 %

Total deposits 14,922,839 14,632,084 13,222,413 290,755 2.0 % 1,700,426 12.9 %

Fed funds purchased 146,417 157,176 153,834 (10,759 ) -6.8 % (7,417 ) -4.8 %and repurchasesOther borrowings 94,889 117,223 178,599 (22,334 ) -19.1 % (83,710 ) -46.9 %

Subordinated notes 122,987 122,932 - 55 0.0 % 122,987 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesACL on off-balance 32,684 33,733 39,659 (1,049 ) -3.1 % (6,975 ) -17.6 %sheet creditexposuresOperating lease 36,531 34,959 31,838 1,572 4.5 % 4,693 14.7 %liabilitiesOther liabilities 177,494 158,860 159,922 18,634 11.7 % 17,572 11.0 %

Total liabilities 15,595,697 15,318,823 13,848,121 276,874 1.8 % 1,747,576 12.6 %

Common stock 13,014 13,079 13,215 (65 ) -0.5 % (201 ) -1.5 %

Capital surplus 201,837 210,420 231,836 (8,583 ) -4.1 % (29,999 ) -12.9 %

Retained earnings 1,573,176 1,566,451 1,459,306 6,725 0.4 % 113,870 7.8 %

Accumulated othercomprehensive (19,080 ) (10,641 ) 5,684 (8,439 ) -79.3 % (24,764 ) n/m income (loss), netof taxTotal shareholders' 1,768,947 1,779,309 1,710,041 (10,362 ) -0.6 % 58,906 3.4 %equityTotal liabilities $ 17,364,644 $ 17,098,132 $ 15,558,162 $ 266,512 1.6 % $ 1,806,482 11.6 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2021($ in thousands except per share data)(unaudited)Quarter EndedLinked QuarterYear over YearINCOME STATEMENTS9/30/20216/30/20219/30/2020$ Change% Change$ Change% ChangeInterest and fees on LHFS & LHFI-FTE$

94,101

$

93,698

$

97,429

$

403

0.4

%

$

(3,328

)

-3.4

%

Interest and fees on PPP loans1,533

25,555

6,729

(24,022

)

-94.0

%

(5,196

)

-77.2

%

Interest on securities-taxable9,973

8,991

12,542

982

10.9

%

(2,569

)

-20.5

%

Interest on securities-tax exempt-FTE132

149

301

(17

)

-11.4

%

(169

)

-56.1

%

Interest on fed funds sold and reverse repurchases-

-

1

-

n/m

(1

)

-100.0

%

Other interest income949

489

331

460

94.1

%

618

n/m

Total interest income-FTE106,688

128,882

117,333

(22,194

)

-17.2

%

(10,645

)

-9.1

%

Interest on deposits3,691

4,630

7,437

(939

)

-20.3

%

(3,746

)

-50.4

%

Interest on fed funds purchased and repurchases51

59

32

(8

)

-13.6

%

19

59.4

%

Other interest expense1,733

1,813

688

(80

)

-4.4

%

1,045

n/m

Total interest expense5,475

6,502

8,157

(1,027

)

-15.8

%

(2,682

)

-32.9

%

Net interest income-FTE101,213

122,380

109,176

(21,167

)

-17.3

%

(7,963

)

-7.3

%

Provision for credit losses, LHFI(2,492

)

(3,991

)

1,760

1,499

37.6

%

(4,252

)

n/m

Provision for credit losses, off-balance sheet credit exposures (1)(1,049

)

4,528

(3,004

)

(5,577

)

n/m

1,955

65.1

%

Net interest income after provision-FTE104,754

121,843

110,420

(17,089

)

-14.0

%

(5,666

)

-5.1

%

Service charges on deposit accounts8,911

7,613

7,577

1,298

17.0

%

1,334

17.6

%

Bank card and other fees8,549

8,301

8,843

248

3.0

%

(294

)

-3.3

%

Mortgage banking, net14,004

17,333

36,439

(3,329

)

-19.2

%

(22,435

)

-61.6

%

Insurance commissions12,133

12,217

11,562

(84

)

-0.7

%

571

4.9

%

Wealth management9,071

8,946

7,679

125

1.4

%

1,392

18.1

%

Other, net1,481

2,001

1,601

(520

)

-26.0

%

(120

)

-7.5

%

Total noninterest income54,149

56,411

73,701

(2,262

)

-4.0

%

(19,552

)

-26.5

%

Salaries and employee benefits74,623

70,115

67,342

4,508

6.4

%

7,281

10.8

%

Services and fees22,306

21,769

20,992

537

2.5

%

1,314

6.3

%

Net occupancy-premises6,854

6,578

7,000

276

4.2

%

(146

)

-2.1

%

Equipment expense5,941

5,567

5,828

374

6.7

%

113

1.9

%

Other real estate expense, net1,357

1,511

1,203

(154

)

-10.2

%

154

12.8

%

Other expense18,519

13,139

14,598

5,380

40.9

%

3,921

26.9

%

Total noninterest expense129,600

118,679

116,963

10,921

9.2

%

12,637

10.8

%

Income before income taxes and tax eq adj29,303

59,575

67,158

(30,272

)

-50.8

%

(37,855

)

-56.4

%

Tax equivalent adjustment2,947

2,957

2,969

(10

)

-0.3

%

(22

)

-0.7

%

Income before income taxes26,356

56,618

64,189

(30,262

)

-53.4

%

(37,833

)

-58.9

%

Income taxes5,156

8,637

9,749

(3,481

)

-40.3

%

(4,593

)

-47.1

%

Net income$

21,200

$

47,981

$

54,440

$

(26,781

)

-55.8

%

$

(33,240

)

-61.1

%

Per share dataEarnings per share - basic$

0.34

$

0.76

$

0.86

$

(0.42

)

-55.3

%

$

(0.52

)

-60.5

%

Earnings per share - diluted$

0.34

$

0.76

$

0.86

$

(0.42

)

-55.3

%

$

(0.52

)

-60.5

%

Dividends per share$

0.23

$

0.23

$

0.23

-

0.0

%

-

0.0

%

Weighted average shares outstandingBasic62,521,684

63,214,593

63,422,692

Diluted62,730,157

63,409,683

63,581,964

Period end shares outstanding62,461,832

62,773,226

63,423,820

(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 INFORMATIONSeptember 30, 2021($ in thousandsexcept per sharedata)(unaudited) Quarter Ended Linked Quarter Year over YearINCOME STATEMENTS 9/30/2021 6/30/2021 9/30/2020 $ Change % $ Change % Change ChangeInterest and fees $ 94,101 $ 93,698 $ 97,429 $ 403 0.4 % $ (3,328 ) -3.4 %on LHFS & LHFI-FTEInterest and fees 1,533 25,555 6,729 (24,022 ) -94.0 % (5,196 ) -77.2 %on PPP loansInterest on 9,973 8,991 12,542 982 10.9 % (2,569 ) -20.5 %securities-taxableInterest on 132 149 301 (17 ) -11.4 % (169 ) -56.1 %securities-taxexempt-FTEInterest on fed - - 1 - n/m (1 ) -100.0 %funds sold andreverse repurchasesOther interest 949 489 331 460 94.1 % 618 n/m incomeTotal interest 106,688 128,882 117,333 (22,194 ) -17.2 % (10,645 ) -9.1 %income-FTEInterest on 3,691 4,630 7,437 (939 ) -20.3 % (3,746 ) -50.4 %depositsInterest on fed 51 59 32 (8 ) -13.6 % 19 59.4 %funds purchased andrepurchasesOther interest 1,733 1,813 688 (80 ) -4.4 % 1,045 n/m expenseTotal interest 5,475 6,502 8,157 (1,027 ) -15.8 % (2,682 ) -32.9 %expenseNet interest 101,213 122,380 109,176 (21,167 ) -17.3 % (7,963 ) -7.3 %income-FTEProvision for (2,492 ) (3,991 ) 1,760 1,499 37.6 % (4,252 ) n/m credit losses, LHFIProvision forcredit losses, (1,049 ) 4,528 (3,004 ) (5,577 ) n/m 1,955 65.1 %off-balance sheetcredit exposures(1)Net interest income 104,754 121,843 110,420 (17,089 ) -14.0 % (5,666 ) -5.1 %after provision-FTEService charges on 8,911 7,613 7,577 1,298 17.0 % 1,334 17.6 %deposit accountsBank card and other 8,549 8,301 8,843 248 3.0 % (294 ) -3.3 %feesMortgage banking, 14,004 17,333 36,439 (3,329 ) -19.2 % (22,435 ) -61.6 %netInsurance 12,133 12,217 11,562 (84 ) -0.7 % 571 4.9 %commissionsWealth management 9,071 8,946 7,679 125 1.4 % 1,392 18.1 %

Other, net 1,481 2,001 1,601 (520 ) -26.0 % (120 ) -7.5 %

Total noninterest 54,149 56,411 73,701 (2,262 ) -4.0 % (19,552 ) -26.5 %incomeSalaries and 74,623 70,115 67,342 4,508 6.4 % 7,281 10.8 %employee benefitsServices and fees 22,306 21,769 20,992 537 2.5 % 1,314 6.3 %

Net 6,854 6,578 7,000 276 4.2 % (146 ) -2.1 %occupancy-premisesEquipment expense 5,941 5,567 5,828 374 6.7 % 113 1.9 %

Other real estate 1,357 1,511 1,203 (154 ) -10.2 % 154 12.8 %expense, netOther expense 18,519 13,139 14,598 5,380 40.9 % 3,921 26.9 %

Total noninterest 129,600 118,679 116,963 10,921 9.2 % 12,637 10.8 %expenseIncome before 29,303 59,575 67,158 (30,272 ) -50.8 % (37,855 ) -56.4 %income taxes andtax eq adjTax equivalent 2,947 2,957 2,969 (10 ) -0.3 % (22 ) -0.7 %adjustmentIncome before 26,356 56,618 64,189 (30,262 ) -53.4 % (37,833 ) -58.9 %income taxesIncome taxes 5,156 8,637 9,749 (3,481 ) -40.3 % (4,593 ) -47.1 %

Net income $ 21,200 $ 47,981 $ 54,440 $ (26,781 ) -55.8 % $ (33,240 ) -61.1 %

Per share dataEarnings per share $ 0.34 $ 0.76 $ 0.86 $ (0.42 ) -55.3 % $ (0.52 ) -60.5 %- basic Earnings per share $ 0.34 $ 0.76 $ 0.86 $ (0.42 ) -55.3 % $ (0.52 ) -60.5 %- diluted Dividends per share $ 0.23 $ 0.23 $ 0.23 - 0.0 % - 0.0 %

Weighted averageshares outstandingBasic 62,521,684 63,214,593 63,422,692

Diluted 62,730,157 63,409,683 63,581,964

Period end shares 62,461,832 62,773,226 63,423,820 outstanding (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 INFORMATIONSeptember 30, 2021($ in thousands)(unaudited)Quarter EndedLinked QuarterYear over YearNONPERFORMING ASSETS (1)9/30/20216/30/20219/30/2020$ Change% Change$ Change% ChangeNonaccrual LHFIAlabama$

9,223

$

8,952

$

3,860

$

271

3.0

%

$

5,363

n/m

Florida381

467

617

(86

)

-18.4

%

(236

)

-38.2

%

Mississippi (2)22,898

23,422

35,617

(524

)

-2.2

%

(12,719

)

-35.7

%

Tennessee (3)10,356

10,751

13,041

(395

)

-3.7

%

(2,685

)

-20.6

%

Texas23,382

7,856

721

15,526

n/m

22,661

n/m

Total nonaccrual LHFI66,240

51,448

53,856

14,792

28.8

%

12,384

23.0

%

Other real estateAlabama613

2,830

3,725

(2,217

)

-78.3

%

(3,112

)

-83.5

%

Florida-

-

3,665

-

n/m

(3,665

)

-100.0

%

Mississippi (2)5,600

6,550

8,718

(950

)

-14.5

%

(3,118

)

-35.8

%

Tennessee (3)-

59

140

(59

)

-100.0

%

(140

)

-100.0

%

Texas-

-

-

-

n/m

-

n/m

Total other real estate6,213

9,439

16,248

(3,226

)

-34.2

%

(10,035

)

-61.8

%

Total nonperforming assets$

72,453

$

60,887

$

70,104

$

11,566

19.0

%

$

2,349

3.4

%

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

625

$

423

$

782

$

202

47.8

%

$

(157

)

-20.1

%

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

75,091

$

81,538

$

121,281

$

(6,447

)

-7.9

%

$

(46,190

)

-38.1

%

Quarter EndedLinked QuarterYear over YearACL LHFI (1)9/30/20216/30/20219/30/2020$ Change% Change$ Change% ChangeBeginning Balance$

104,032

$

109,191

$

119,188

$

(5,159

)

-4.7

%

$

(15,156

)

-12.7

%

CECL adoption adjustments:LHFI-

-

-

-

n/m

-

n/m

Acquired loan transfers-

-

-

-

n/m

-

n/m

Provision for credit losses, LHFI(2,492

)

(3,991

)

1,760

1,499

37.6

%

(4,252

)

n/m

Charge-offs(1,586

)

(4,828

)

(1,263

)

3,242

67.1

%

(323

)

-25.6

%

Recoveries4,119

3,660

2,325

459

12.5

%

1,794

77.2

%

Net (charge-offs) recoveries2,533

(1,168

)

1,062

3,701

n/m

1,471

n/m

Ending Balance$

104,073

$

104,032

$

122,010

$

41

0.0

%

$

(17,937

)

-14.7

%

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

247

$

203

$

117

$

44

21.7

%

$

130

n/m

Florida356

167

387

189

n/m

(31

)

-8.0

%

Mississippi (2)1,436

(3,071

)

442

4,507

n/m

994

n/m

Tennessee (3)(8

)

1,031

42

(1,039

)

n/m

(50

)

n/m

Texas502

502

74

-

0.0

%

428

n/m

Total net (charge-offs) recoveries$

2,533

$

(1,168

)

$

1,062

$

3,701

n/m

$

1,471

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 FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONSeptember 30,2021($ inthousands)(unaudited) Quarter Ended Linked Quarter Year over YearNONPERFORMING 9/30/2021 6/30/2021 9/30/2020 $ Change % Change $ Change % ChangeASSETS (1)Nonaccrual LHFIAlabama $ 9,223 $ 8,952 $ 3,860 $ 271 3.0 % $ 5,363 n/m

Florida 381 467 617 (86 ) -18.4 % (236 ) -38.2 %

Mississippi (2) 22,898 23,422 35,617 (524 ) -2.2 % (12,719 ) -35.7 %

Tennessee (3) 10,356 10,751 13,041 (395 ) -3.7 % (2,685 ) -20.6 %

Texas 23,382 7,856 721 15,526 n/m 22,661 n/m

Total 66,240 51,448 53,856 14,792 28.8 % 12,384 23.0 %nonaccrual LHFIOther realestateAlabama 613 2,830 3,725 (2,217 ) -78.3 % (3,112 ) -83.5 %

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

Mississippi (2) 5,600 6,550 8,718 (950 ) -14.5 % (3,118 ) -35.8 %

Tennessee (3) - 59 140 (59 ) -100.0 % (140 ) -100.0 %

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

Total other 6,213 9,439 16,248 (3,226 ) -34.2 % (10,035 ) -61.8 %real estateTotal $ 72,453 $ 60,887 $ 70,104 $ 11,566 19.0 % $ 2,349 3.4 %nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 625 $ 423 $ 782 $ 202 47.8 % $ (157 ) -20.1 %

LHFS-GuaranteedGNMA servicedloans(no obligation $ 75,091 $ 81,538 $ 121,281 $ (6,447 ) -7.9 % $ (46,190 ) -38.1 %to repurchase) Quarter Ended Linked Quarter Year over YearACL LHFI (1) 9/30/2021 6/30/2021 9/30/2020 $ Change % Change $ Change % ChangeBeginning $ 104,032 $ 109,191 $ 119,188 $ (5,159 ) -4.7 % $ (15,156 ) -12.7 %BalanceCECL adoptionadjustments:LHFI - - - - n/m - n/m

Acquired loan - - - - n/m - n/m transfersProvision for (2,492 ) (3,991 ) 1,760 1,499 37.6 % (4,252 ) n/m credit losses,LHFICharge-offs (1,586 ) (4,828 ) (1,263 ) 3,242 67.1 % (323 ) -25.6 %

Recoveries 4,119 3,660 2,325 459 12.5 % 1,794 77.2 %

Net 2,533 (1,168 ) 1,062 3,701 n/m 1,471 n/m (charge-offs)recoveriesEnding Balance $ 104,073 $ 104,032 $ 122,010 $ 41 0.0 % $ (17,937 ) -14.7 %

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 247 $ 203 $ 117 $ 44 21.7 % $ 130 n/m

Florida 356 167 387 189 n/m (31 ) -8.0 %

Mississippi (2) 1,436 (3,071 ) 442 4,507 n/m 994 n/m

Tennessee (3) (8 ) 1,031 42 (1,039 ) n/m (50 ) n/m

Texas 502 502 74 - 0.0 % 428 n/m

Total net $ 2,533 $ (1,168 ) $ 1,062 $ 3,701 n/m $ 1,471 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 INFORMATIONSeptember 30, 2021($ in thousands)(unaudited)Quarter EndedNine Months EndedAVERAGE BALANCES9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020Securities AFS-taxable$

2,686,765

$

2,339,662

$

2,098,089

$

1,902,162

$

1,857,050

$

2,376,995

$

1,734,380

Securities AFS-nontaxable5,159

5,174

5,190

5,206

5,973

5,174

12,594

Securities HTM-taxable401,685

441,688

489,260

550,563

608,585

443,890

652,642

Securities HTM-nontaxable8,641

10,958

24,070

24,752

25,508

14,500

25,573

Total securities3,102,250

2,797,482

2,616,609

2,482,683

2,497,116

2,840,559

2,425,189

PPP loans122,176

648,222

598,139

875,098

941,456

454,436

569,985

Loans (includes loans held for sale)10,389,826

10,315,927

10,316,319

10,231,671

10,162,379

10,340,960

9,917,127

Fed funds sold and reverse repurchases69

55

136

303

301

86

193

Other earning assets2,038,515

1,750,385

1,667,906

860,540

722,917

1,820,293

588,787

Total earning assets15,652,836

15,512,071

15,199,109

14,450,295

14,324,169

15,456,334

13,501,281

ACL LHFI(104,857

)

(112,346

)

(119,557

)

(124,088

)

(121,842

)

(112,199

)

(103,355

)

Other assets1,602,611

1,622,388

1,601,250

1,620,694

1,564,825

1,608,754

1,582,888

Total assets$

17,150,590

$

17,022,113

$

16,680,802

$

15,946,901

$

15,767,152

$

16,952,889

$

14,980,814

Interest-bearing demand deposits$

4,224,717

$

4,056,910

$

3,743,651

$

3,649,590

$

3,669,249

$

4,010,188

$

3,562,310

Savings deposits4,617,683

4,627,180

4,659,037

4,350,783

4,416,046

4,634,482

4,082,396

Time deposits1,258,829

1,301,896

1,371,830

1,436,677

1,507,348

1,310,438

1,567,577

Total interest-bearing deposits10,101,229

9,985,986

9,774,518

9,437,050

9,592,643

9,955,108

9,212,283

Fed funds purchased and repurchases147,635

174,620

166,909

170,474

84,077

162,984

145,537

Other borrowings109,735

132,199

166,926

173,525

167,262

136,077

120,197

Subordinated notes122,951

122,897

122,875

42,828

-

122,908

-

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

61,856

61,856

Total interest-bearing liabilities10,543,406

10,477,558

10,293,084

9,885,733

9,905,838

10,438,933

9,539,873

Noninterest-bearing deposits4,566,924

4,512,268

4,363,559

4,100,849

3,921,867

4,481,662

3,494,425

Other liabilities257,956

251,582

264,808

235,284

244,544

258,090

279,517

Total liabilities15,368,286

15,241,408

14,921,451

14,221,866

14,072,249

15,178,685

13,313,815

Shareholders' equity1,782,304

1,780,705

1,759,351

1,725,035

1,694,903

1,774,204

1,666,999

Total liabilities and equity$

17,150,590

$

17,022,113

$

16,680,802

$

15,946,901

$

15,767,152

$

16,952,889

$

14,980,814

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION ANDSUBSIDIARIESCONSOLIDATED FINANCIALINFORMATIONSeptember 30, 2021($ in thousands)(unaudited) Quarter Ended Nine Months EndedAVERAGE BALANCES 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020Securities AFS-taxable $ 2,686,765 $ 2,339,662 $ 2,098,089 $ 1,902,162 $ 1,857,050 $ 2,376,995 $ 1,734,380

Securities AFS-nontaxable 5,159 5,174 5,190 5,206 5,973 5,174 12,594

Securities HTM-taxable 401,685 441,688 489,260 550,563 608,585 443,890 652,642

Securities HTM-nontaxable 8,641 10,958 24,070 24,752 25,508 14,500 25,573

Total securities 3,102,250 2,797,482 2,616,609 2,482,683 2,497,116 2,840,559 2,425,189

PPP loans 122,176 648,222 598,139 875,098 941,456 454,436 569,985

Loans (includes loans held for 10,389,826 10,315,927 10,316,319 10,231,671 10,162,379 10,340,960 9,917,127 sale)Fed funds sold and reverse 69 55 136 303 301 86 193 repurchasesOther earning assets 2,038,515 1,750,385 1,667,906 860,540 722,917 1,820,293 588,787

Total earning assets 15,652,836 15,512,071 15,199,109 14,450,295 14,324,169 15,456,334 13,501,281

ACL LHFI (104,857 ) (112,346 ) (119,557 ) (124,088 ) (121,842 ) (112,199 ) (103,355 )

Other assets 1,602,611 1,622,388 1,601,250 1,620,694 1,564,825 1,608,754 1,582,888

Total assets $ 17,150,590 $ 17,022,113 $ 16,680,802 $ 15,946,901 $ 15,767,152 $ 16,952,889 $ 14,980,814

Interest-bearing demand $ 4,224,717 $ 4,056,910 $ 3,743,651 $ 3,649,590 $ 3,669,249 $ 4,010,188 $ 3,562,310 depositsSavings deposits 4,617,683 4,627,180 4,659,037 4,350,783 4,416,046 4,634,482 4,082,396

Time deposits 1,258,829 1,301,896 1,371,830 1,436,677 1,507,348 1,310,438 1,567,577

Total interest-bearing 10,101,229 9,985,986 9,774,518 9,437,050 9,592,643 9,955,108 9,212,283 depositsFed funds purchased and 147,635 174,620 166,909 170,474 84,077 162,984 145,537 repurchasesOther borrowings 109,735 132,199 166,926 173,525 167,262 136,077 120,197

Subordinated notes 122,951 122,897 122,875 42,828 - 122,908 -

Junior subordinated debt 61,856 61,856 61,856 61,856 61,856 61,856 61,856 securitiesTotal interest-bearing 10,543,406 10,477,558 10,293,084 9,885,733 9,905,838 10,438,933 9,539,873 liabilitiesNoninterest-bearing deposits 4,566,924 4,512,268 4,363,559 4,100,849 3,921,867 4,481,662 3,494,425

Other liabilities 257,956 251,582 264,808 235,284 244,544 258,090 279,517

Total liabilities 15,368,286 15,241,408 14,921,451 14,221,866 14,072,249 15,178,685 13,313,815

Shareholders' equity 1,782,304 1,780,705 1,759,351 1,725,035 1,694,903 1,774,204 1,666,999

Total liabilities and equity $ 17,150,590 $ 17,022,113 $ 16,680,802 $ 15,946,901 $ 15,767,152 $ 16,952,889 $ 14,980,814

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2021($ in thousands)(unaudited)PERIOD END BALANCES9/30/20216/30/20213/31/202112/31/20209/30/2020Cash and due from banks$

2,175,058

$

2,267,224

$

1,774,541

$

1,952,504

$

564,588

Fed funds sold and reverse repurchases-

-

-

50

50

Securities available for sale3,057,605

2,548,739

2,337,676

1,991,815

1,922,728

Securities held to maturity394,905

433,012

493,738

538,072

611,280

PPP loans46,486

166,119

679,725

610,134

944,270

LHFS335,339

332,132

412,999

446,951

485,103

LHFI10,174,899

10,152,869

9,983,704

9,824,524

9,847,728

ACL LHFI(104,073

)

(104,032

)

(109,191

)

(117,306

)

(122,010

)

Net LHFI10,070,826

10,048,837

9,874,513

9,707,218

9,725,718

Premises and equipment, net201,937

200,970

199,098

194,278

192,722

Mortgage servicing rights84,101

80,764

83,035

66,464

61,613

Goodwill384,237

384,237

384,237

385,270

385,270

Identifiable intangible assets5,621

6,170

6,724

7,390

8,142

Other real estate6,213

9,439

10,651

11,651

16,248

Operating lease right-of-use assets34,689

33,201

33,704

30,901

30,508

Other assets567,627

587,288

587,672

609,142

609,922

Total assets$

17,364,644

$

17,098,132

$

16,878,313

$

16,551,840

$

15,558,162

Deposits:Noninterest-bearing$

4,987,885

$

4,446,991

$

4,705,991

$

4,349,010

$

3,964,023

Interest-bearing9,934,954

10,185,093

9,677,449

9,699,754

9,258,390

Total deposits14,922,839

14,632,084

14,383,440

14,048,764

13,222,413

Fed funds purchased and repurchases146,417

157,176

160,991

164,519

153,834

Other borrowings94,889

117,223

145,994

168,252

178,599

Subordinated notes122,987

122,932

122,877

122,921

-

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

ACL on off-balance sheet credit exposures32,684

33,733

29,205

38,572

39,659

Operating lease liabilities36,531

34,959

35,389

32,290

31,838

Other liabilities177,494

158,860

178,856

173,549

159,922

Total liabilities15,595,697

15,318,823

15,118,608

14,810,723

13,848,121

Common stock13,014

13,079

13,209

13,215

13,215

Capital surplus201,837

210,420

229,892

233,120

231,836

Retained earnings1,573,176

1,566,451

1,533,110

1,495,833

1,459,306

Accumulated other comprehensive income (loss), net of tax(19,080

)

(10,641

)

(16,506

)

(1,051

)

5,684

Total shareholders' equity1,768,947

1,779,309

1,759,705

1,741,117

1,710,041

Total liabilities and equity$

17,364,644

$

17,098,132

$

16,878,313

$

16,551,840

$

15,558,162

See Notes to Consolidated FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONSeptember 30, 2021($ in thousands)(unaudited) PERIOD END BALANCES 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Cash and due from $ 2,175,058 $ 2,267,224 $ 1,774,541 $ 1,952,504 $ 564,588 banksFed funds sold and - - - 50 50 reverse repurchasesSecurities 3,057,605 2,548,739 2,337,676 1,991,815 1,922,728 available for saleSecurities held to 394,905 433,012 493,738 538,072 611,280 maturityPPP loans 46,486 166,119 679,725 610,134 944,270

LHFS 335,339 332,132 412,999 446,951 485,103

LHFI 10,174,899 10,152,869 9,983,704 9,824,524 9,847,728

ACL LHFI (104,073 ) (104,032 ) (109,191 ) (117,306 ) (122,010 )

Net LHFI 10,070,826 10,048,837 9,874,513 9,707,218 9,725,718

Premises and 201,937 200,970 199,098 194,278 192,722 equipment, netMortgage servicing 84,101 80,764 83,035 66,464 61,613 rightsGoodwill 384,237 384,237 384,237 385,270 385,270

Identifiable 5,621 6,170 6,724 7,390 8,142 intangible assetsOther real estate 6,213 9,439 10,651 11,651 16,248

Operating lease 34,689 33,201 33,704 30,901 30,508 right-of-use assetsOther assets 567,627 587,288 587,672 609,142 609,922

Total assets $ 17,364,644 $ 17,098,132 $ 16,878,313 $ 16,551,840 $ 15,558,162

Deposits:Noninterest-bearing $ 4,987,885 $ 4,446,991 $ 4,705,991 $ 4,349,010 $ 3,964,023

Interest-bearing 9,934,954 10,185,093 9,677,449 9,699,754 9,258,390

Total deposits 14,922,839 14,632,084 14,383,440 14,048,764 13,222,413

Fed funds purchased 146,417 157,176 160,991 164,519 153,834 and repurchasesOther borrowings 94,889 117,223 145,994 168,252 178,599

Subordinated notes 122,987 122,932 122,877 122,921 -

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securitiesACL on off-balance 32,684 33,733 29,205 38,572 39,659 sheet creditexposuresOperating lease 36,531 34,959 35,389 32,290 31,838 liabilitiesOther liabilities 177,494 158,860 178,856 173,549 159,922

Total liabilities 15,595,697 15,318,823 15,118,608 14,810,723 13,848,121

Common stock 13,014 13,079 13,209 13,215 13,215

Capital surplus 201,837 210,420 229,892 233,120 231,836

Retained earnings 1,573,176 1,566,451 1,533,110 1,495,833 1,459,306

Accumulated othercomprehensive (19,080 ) (10,641 ) (16,506 ) (1,051 ) 5,684 income (loss), netof taxTotal shareholders' 1,768,947 1,779,309 1,759,705 1,741,117 1,710,041 equityTotal liabilities $ 17,364,644 $ 17,098,132 $ 16,878,313 $ 16,551,840 $ 15,558,162 and equity See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2021($ in thousands except per share data)(unaudited)Quarter EndedNine Months EndedINCOME STATEMENTS9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020Interest and fees on LHFS & LHFI-FTE$

94,101

$

93,698

$

93,394

$

96,453

$

97,429

$

281,193

$

306,086

Interest and fees on PPP loans1,533

25,555

9,241

14,870

6,729

36,329

11,773

Interest on securities-taxable9,973

8,991

8,938

9,998

12,542

27,902

38,252

Interest on securities-tax exempt-FTE132

149

290

293

301

571

1,073

Interest on fed funds sold and reverse repurchases-

-

-

-

1

-

1

Other interest income949

489

503

249

331

1,941

1,310

Total interest income-FTE106,688

128,882

112,366

121,863

117,333

347,936

358,495

Interest on deposits3,691

4,630

5,223

6,363

7,437

13,544

31,124

Interest on fed funds purchased and repurchases51

59

56

56

32

166

699

Other interest expense1,733

1,813

1,857

1,127

688

5,403

2,429

Total interest expense5,475

6,502

7,136

7,546

8,157

19,113

34,252

Net interest income-FTE101,213

122,380

105,230

114,317

109,176

328,823

324,243

Provision for credit losses, LHFI(2,492

)

(3,991

)

(10,501

)

(4,413

)

1,760

(16,984

)

40,526

Provision for credit losses, off-balance sheet credit exposures (1)(1,049

)

4,528

(9,367

)

(1,087

)

(3,004

)

(5,888

)

10,021

Net interest income after provision-FTE104,754

121,843

125,098

119,817

110,420

351,695

273,696

Service charges on deposit accounts8,911

7,613

7,356

8,283

7,577

23,880

24,006

Bank card and other fees8,549

8,301

9,472

9,107

8,843

26,322

21,915

Mortgage banking, net14,004

17,333

20,804

28,155

36,439

52,141

97,667

Insurance commissions12,133

12,217

12,445

10,196

11,562

36,795

34,980

Wealth management9,071

8,946

8,416

7,838

7,679

26,433

23,787

Other, net1,481

2,001

2,090

2,538

1,601

5,572

6,121

Total noninterest income54,149

56,411

60,583

66,117

73,701

171,143

208,476

Salaries and employee benefits74,623

70,115

71,162

69,660

67,342

215,900

202,597

Services and fees22,306

21,769

22,484

22,327

20,992

66,559

61,489

Net occupancy-premises6,854

6,578

6,795

6,616

7,000

20,227

19,873

Equipment expense5,941

5,567

6,244

6,213

5,828

17,752

17,064

Other real estate expense, net1,357

1,511

324

(812

)

1,203

3,192

2,768

Other expense18,519

13,139

14,539

15,890

14,598

46,197

42,616

Total noninterest expense129,600

118,679

121,548

119,894

116,963

369,827

346,407

Income before income taxes and tax eq adj29,303

59,575

64,133

66,040

67,158

153,011

135,765

Tax equivalent adjustment2,947

2,957

2,894

2,939

2,969

8,798

9,084

Income before income taxes26,356

56,618

61,239

63,101

64,189

144,213

126,681

Income taxes5,156

8,637

9,277

11,884

9,749

23,070

17,873

Net income$

21,200

$

47,981

$

51,962

$

51,217

$

54,440

$

121,143

$

108,808

Per share dataEarnings per share - basic$

0.34

$

0.76

$

0.82

$

0.81

$

0.86

$

1.92

$

1.71

Earnings per share - diluted$

0.34

$

0.76

$

0.82

$

0.81

$

0.86

$

1.92

$

1.71

Dividends per share$

0.23

$

0.23

$

0.23

$

0.23

$

0.23

$

0.69

$

0.69

Weighted average shares outstandingBasic62,521,684

63,214,593

63,395,911

63,424,219

63,422,692

63,040,860

63,531,478

Diluted62,730,157

63,409,683

63,562,503

63,616,767

63,581,964

63,219,987

63,665,127

Period end shares outstanding62,461,832

62,773,226

63,394,522

63,424,526

63,423,820

62,461,832

63,423,820

(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 Financials

TRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONSeptember 30, 2021($ in thousandsexcept per sharedata)(unaudited) Quarter Ended Nine Months EndedINCOME STATEMENTS 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020Interest and fees $ 94,101 $ 93,698 $ 93,394 $ 96,453 $ 97,429 $ 281,193 $ 306,086on LHFS & LHFI-FTEInterest and fees 1,533 25,555 9,241 14,870 6,729 36,329 11,773on PPP loansInterest on 9,973 8,991 8,938 9,998 12,542 27,902 38,252securities-taxableInterest on 132 149 290 293 301 571 1,073securities-taxexempt-FTEInterest on fedfunds sold and - - - - 1 - 1reverserepurchasesOther interest 949 489 503 249 331 1,941 1,310incomeTotal interest 106,688 128,882 112,366 121,863 117,333 347,936 358,495income-FTEInterest on 3,691 4,630 5,223 6,363 7,437 13,544 31,124depositsInterest on fed 51 59 56 56 32 166 699funds purchasedand repurchasesOther interest 1,733 1,813 1,857 1,127 688 5,403 2,429expenseTotal interest 5,475 6,502 7,136 7,546 8,157 19,113 34,252expenseNet interest 101,213 122,380 105,230 114,317 109,176 328,823 324,243income-FTEProvision for (2,492 ) (3,991 ) (10,501 ) (4,413 ) 1,760 (16,984 ) 40,526credit losses,LHFIProvision forcredit losses, (1,049 ) 4,528 (9,367 ) (1,087 ) (3,004 ) (5,888 ) 10,021off-balance sheetcredit exposures(1)Net interest 104,754 121,843 125,098 119,817 110,420 351,695 273,696income afterprovision-FTEService charges on 8,911 7,613 7,356 8,283 7,577 23,880 24,006deposit accountsBank card and 8,549 8,301 9,472 9,107 8,843 26,322 21,915other feesMortgage banking, 14,004 17,333 20,804 28,155 36,439 52,141 97,667netInsurance 12,133 12,217 12,445 10,196 11,562 36,795 34,980commissionsWealth management 9,071 8,946 8,416 7,838 7,679 26,433 23,787

Other, net 1,481 2,001 2,090 2,538 1,601 5,572 6,121

Total noninterest 54,149 56,411 60,583 66,117 73,701 171,143 208,476incomeSalaries and 74,623 70,115 71,162 69,660 67,342 215,900 202,597employee benefitsServices and fees 22,306 21,769 22,484 22,327 20,992 66,559 61,489

Net 6,854 6,578 6,795 6,616 7,000 20,227 19,873occupancy-premisesEquipment expense 5,941 5,567 6,244 6,213 5,828 17,752 17,064

Other real estate 1,357 1,511 324 (812 ) 1,203 3,192 2,768expense, netOther expense 18,519 13,139 14,539 15,890 14,598 46,197 42,616

Total noninterest 129,600 118,679 121,548 119,894 116,963 369,827 346,407expenseIncome before 29,303 59,575 64,133 66,040 67,158 153,011 135,765income taxes andtax eq adjTax equivalent 2,947 2,957 2,894 2,939 2,969 8,798 9,084adjustmentIncome before 26,356 56,618 61,239 63,101 64,189 144,213 126,681income taxesIncome taxes 5,156 8,637 9,277 11,884 9,749 23,070 17,873

Net income $ 21,200 $ 47,981 $ 51,962 $ 51,217 $ 54,440 $ 121,143 $ 108,808

Per share dataEarnings per share $ 0.34 $ 0.76 $ 0.82 $ 0.81 $ 0.86 $ 1.92 $ 1.71- basic Earnings per share $ 0.34 $ 0.76 $ 0.82 $ 0.81 $ 0.86 $ 1.92 $ 1.71- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.69 $ 0.69share Weighted averageshares outstandingBasic 62,521,684 63,214,593 63,395,911 63,424,219 63,422,692 63,040,860 63,531,478

Diluted 62,730,157 63,409,683 63,562,503 63,616,767 63,581,964 63,219,987 63,665,127

Period end shares 62,461,832 62,773,226 63,394,522 63,424,526 63,423,820 62,461,832 63,423,820outstanding (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 Financials

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2021($ in thousands)(unaudited)Quarter EndedNONPERFORMING ASSETS (1)9/30/20216/30/20213/31/202112/31/20209/30/2020Nonaccrual LHFIAlabama$

9,223

$

8,952

$

9,161

$

9,221

$

3,860

Florida381

467

607

572

617

Mississippi (2)22,898

23,422

35,534

35,015

35,617

Tennessee (3)10,356

10,751

12,451

12,572

13,041

Texas23,382

7,856

5,761

5,748

721

Total nonaccrual LHFI66,240

51,448

63,514

63,128

53,856

Other real estateAlabama613

2,830

3,085

3,271

3,725

Florida-

-

-

-

3,665

Mississippi (2)5,600

6,550

7,566

8,330

8,718

Tennessee (3)-

59

-

50

140

Texas-

-

-

-

-

Total other real estate6,213

9,439

10,651

11,651

16,248

Total nonperforming assets$

72,453

$

60,887

$

74,165

$

74,779

$

70,104

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

625

$

423

$

2,593

$

1,576

$

782

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

75,091

$

81,538

$

109,566

$

119,409

$

121,281

Quarter EndedNine Months EndedACL LHFI (1)9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020Beginning Balance$

104,032

$

109,191

$

117,306

$

122,010

$

119,188

$

117,306

$

84,277

CECL adoption adjustments:LHFI-

-

-

-

-

-

(3,039

)

Acquired loan transfers-

-

-

-

-

-

1,822

Provision for credit losses, LHFI(2,492

)

(3,991

)

(10,501

)

(4,413

)

1,760

(16,984

)

40,526

Charge-offs(1,586

)

(4,828

)

(1,245

)

(2,797

)

(1,263

)

(7,659

)

(8,678

)

Recoveries4,119

3,660

3,631

2,506

2,325

11,410

7,102

Net (charge-offs) recoveries2,533

(1,168

)

2,386

(291

)

1,062

3,751

(1,576

)

Ending Balance$

104,073

$

104,032

$

109,191

$

117,306

$

122,010

$

104,073

$

122,010

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

247

$

203

$

102

$

(1,011

)

$

117

$

552

$

(437

)

Florida356

167

30

66

387

553

324

Mississippi (2)1,436

(3,071

)

2,207

332

442

572

482

Tennessee (3)(8

)

1,031

47

303

42

1,070

(2,078

)

Texas502

502

-

19

74

1,004

133

Total net (charge-offs) recoveries$

2,533

$

(1,168

)

$

2,386

$

(291

)

$

1,062

$

3,751

$

(1,576

)

(1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.See Notes to Consolidated Financials

TRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONSeptember 30,2021($ inthousands)(unaudited) Quarter EndedNONPERFORMING 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020ASSETS (1)Nonaccrual LHFIAlabama $ 9,223 $ 8,952 $ 9,161 $ 9,221 $ 3,860

Florida 381 467 607 572 617

Mississippi (2) 22,898 23,422 35,534 35,015 35,617

Tennessee (3) 10,356 10,751 12,451 12,572 13,041

Texas 23,382 7,856 5,761 5,748 721

Total 66,240 51,448 63,514 63,128 53,856 nonaccrual LHFIOther realestateAlabama 613 2,830 3,085 3,271 3,725

Florida - - - - 3,665

Mississippi (2) 5,600 6,550 7,566 8,330 8,718

Tennessee (3) - 59 - 50 140

Texas - - - - -

Total other 6,213 9,439 10,651 11,651 16,248 real estateTotal $ 72,453 $ 60,887 $ 74,165 $ 74,779 $ 70,104 nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 625 $ 423 $ 2,593 $ 1,576 $ 782

LHFS-GuaranteedGNMA servicedloans(no obligation $ 75,091 $ 81,538 $ 109,566 $ 119,409 $ 121,281 to repurchase) Quarter Ended Nine Months EndedACL LHFI (1) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020Beginning $ 104,032 $ 109,191 $ 117,306 $ 122,010 $ 119,188 $ 117,306 $ 84,277 BalanceCECL adoptionadjustments:LHFI - - - - - - (3,039 )

Acquired loan - - - - - - 1,822 transfersProvision for (2,492 ) (3,991 ) (10,501 ) (4,413 ) 1,760 (16,984 ) 40,526 credit losses,LHFICharge-offs (1,586 ) (4,828 ) (1,245 ) (2,797 ) (1,263 ) (7,659 ) (8,678 )

Recoveries 4,119 3,660 3,631 2,506 2,325 11,410 7,102

Net 2,533 (1,168 ) 2,386 (291 ) 1,062 3,751 (1,576 )(charge-offs)recoveriesEnding Balance $ 104,073 $ 104,032 $ 109,191 $ 117,306 $ 122,010 $ 104,073 $ 122,010

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 247 $ 203 $ 102 $ (1,011 ) $ 117 $ 552 $ (437 )

Florida 356 167 30 66 387 553 324

Mississippi (2) 1,436 (3,071 ) 2,207 332 442 572 482

Tennessee (3) (8 ) 1,031 47 303 42 1,070 (2,078 )

Texas 502 502 - 19 74 1,004 133

Total net $ 2,533 $ (1,168 ) $ 2,386 $ (291 ) $ 1,062 $ 3,751 $ (1,576 )(charge-offs)recoveries (1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern MississippiRegions. See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONSeptember 30, 2021(unaudited)Quarter EndedNine Months EndedFINANCIAL RATIOS AND OTHER DATA9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020Return on average equity4.72

%

10.81

%

11.98

%

11.81

%

12.78

%

9.13

%

8.72

%

Return on average tangible equity6.16

%

13.96

%

15.56

%

15.47

%

16.82

%

11.84

%

11.57

%

Return on average assets0.49

%

1.13

%

1.26

%

1.28

%

1.37

%

0.96

%

0.97

%

Interest margin - Yield - FTE2.70

%

3.33

%

3.00

%

3.35

%

3.26

%

3.01

%

3.55

%

Interest margin - Cost0.14

%

0.17

%

0.19

%

0.21

%

0.23

%

0.17

%

0.34

%

Net interest margin - FTE2.57

%

3.16

%

2.81

%

3.15

%

3.03

%

2.84

%

3.21

%

Efficiency ratio (1)74.10

%

64.31

%

71.84

%

65.59

%

62.19

%

69.85

%

62.59

%

Full-time equivalent employees2,680

2,772

2,793

2,797

2,807

CREDIT QUALITY RATIOS (2)Net (recoveries) charge-offs / average loans-0.10

%

0.05

%

-0.09

%

0.01

%

-0.04

%

-0.05

%

0.02

%

Provision for credit losses, LHFI / average loans-0.10

%

-0.16

%

-0.41

%

-0.17

%

0.07

%

-0.22

%

0.55

%

Nonaccrual LHFI / (LHFI + LHFS)0.63

%

0.49

%

0.61

%

0.61

%

0.52

%

Nonperforming assets / (LHFI + LHFS)0.69

%

0.58

%

0.71

%

0.73

%

0.68

%

Nonperforming assets / (LHFI + LHFS + other real estate)0.69

%

0.58

%

0.71

%

0.73

%

0.68

%

ACL LHFI / LHFI1.02

%

1.02

%

1.09

%

1.19

%

1.24

%

ACL LHFI-commercial / commercial LHFI1.05

%

1.04

%

1.13

%

1.20

%

1.20

%

ACL LHFI-consumer / consumer and home mortgage LHFI0.91

%

0.98

%

0.95

%

1.16

%

1.41

%

ACL LHFI / nonaccrual LHFI157.11

%

202.21

%

171.92

%

185.82

%

226.55

%

ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)520.77

%

537.35

%

437.08

%

572.69

%

593.72

%

CAPITAL RATIOSTotal equity / total assets10.19

%

10.41

%

10.43

%

10.52

%

10.99

%

Tangible equity / tangible assets8.12

%

8.31

%

8.30

%

8.34

%

8.68

%

Tangible equity / risk-weighted assets11.19

%

11.33

%

11.23

%

11.22

%

11.01

%

Tier 1 leverage ratio8.92

%

9.00

%

9.11

%

9.33

%

9.20

%

Common equity tier 1 capital ratio11.68

%

11.76

%

11.71

%

11.62

%

11.36

%

Tier 1 risk-based capital ratio12.17

%

12.25

%

12.20

%

12.11

%

11.86

%

Total risk-based capital ratio14.01

%

14.10

%

14.07

%

14.12

%

12.88

%

STOCK PERFORMANCEMarket value-Close$

32.22

$

30.80

$

33.66

$

27.31

$

21.41

Book value$

28.32

$

28.35

$

27.76

$

27.45

$

26.96

Tangible book value$

22.08

$

22.13

$

21.59

$

21.26

$

20.76

(1) See Note 10 - 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 SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands) (unaudited)

Note 1 - Regulatory Matters

On October 22, 2021, Trustmark Corporation's subsidiary, Trustmark National Bank ("TNB"), issued a press release announcing that it entered into a consent order with the Office of the Comptroller of the Currency ("OCC") and a separate consent order jointly with the U.S. Department of Justice ("DOJ") and the Consumer Financial Protection Bureau ("CFPB"), to resolve allegations that TNB previously violated the Fair Housing Act (the "FHA"), the Equal Credit Opportunity Act (the "ECOA") and the Consumer Financial Protection Act within the Memphis metropolitan statistical area (the "Memphis MSA").

Under the DOJ and CFPB's joint consent order, TNB will pay a civil money penalty totaling $5.0 million, of which $4.0 million will satisfy the OCC's civil money penalty as set forth in the OCC's consent order; the remaining $1.0 million will be paid to the CFPB. The joint consent order also requires TNB, among other things, to implement a mutually agreed-upon Fair Lending Plan, invest $3.85 million over five years in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods, and devote a minimum of $400 thousand over five years toward community development partnership contributions and $200 thousand per year over five years toward advertising, community outreach, and credit repair and education in TNB's Memphis lending area (defined in the consent order as consisting of Shelby County and Fayette County in Tennessee and DeSoto County in Mississippi). TNB will also open one new mortgage loan production office to serve the credit needs of residents in a majority-Black and Hispanic neighborhood in TNB's Memphis lending area. In addition, TNB will continue to maintain its full-time Community Lending Manager position and its full-time Community Development Manager position, which are both focused on the Memphis MSA.

The joint consent order must be approved by the United States District Court for the Western District of Tennessee.

Note 2 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, 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.

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 September 30, 2021, Trustmark had PPP loans outstanding that totaled $46.5 million (net of $798 thousand of deferred fees and costs) under the CARES Act. Due to the 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 3 - Securities Available for Sale and Held to Maturity

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

TRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONSeptember 30,2021(unaudited) Quarter Ended Nine Months EndedFINANCIAL 9/30/ 9/30/RATIOS AND 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 2021 2020OTHER DATAReturn on 4.72 % 10.81 % 11.98 % 11.81 % 12.78 % 9.13 % 8.72 %average equityReturn on 6.16 % 13.96 % 15.56 % 15.47 % 16.82 % 11.84 % 11.57 %averagetangible equityReturn on 0.49 % 1.13 % 1.26 % 1.28 % 1.37 % 0.96 % 0.97 %average assetsInterest margin 2.70 % 3.33 % 3.00 % 3.35 % 3.26 % 3.01 % 3.55 %- Yield - FTEInterest margin 0.14 % 0.17 % 0.19 % 0.21 % 0.23 % 0.17 % 0.34 %- CostNet interest 2.57 % 3.16 % 2.81 % 3.15 % 3.03 % 2.84 % 3.21 %margin - FTEEfficiency 74.10 % 64.31 % 71.84 % 65.59 % 62.19 % 69.85 % 62.59 %ratio (1)Full-time 2,680 2,772 2,793 2,797 2,807 equivalentemployees CREDIT QUALITYRATIOS (2)Net(recoveries) -0.10 % 0.05 % -0.09 % 0.01 % -0.04 % -0.05 % 0.02 %charge-offs /average loansProvision forcredit losses, -0.10 % -0.16 % -0.41 % -0.17 % 0.07 % -0.22 % 0.55 %LHFI / averageloansNonaccrual LHFI 0.63 % 0.49 % 0.61 % 0.61 % 0.52 %/ (LHFI + LHFS)Nonperforming 0.69 % 0.58 % 0.71 % 0.73 % 0.68 %assets / (LHFI+ LHFS)Nonperformingassets / (LHFI 0.69 % 0.58 % 0.71 % 0.73 % 0.68 %+ LHFS + otherreal estate)ACL LHFI / LHFI 1.02 % 1.02 % 1.09 % 1.19 % 1.24 %

ACLLHFI-commercial 1.05 % 1.04 % 1.13 % 1.20 % 1.20 %/ commercialLHFIACLLHFI-consumer / 0.91 % 0.98 % 0.95 % 1.16 % 1.41 %consumer andhome mortgageLHFIACL LHFI / 157.11 % 202.21 % 171.92 % 185.82 % 226.55 %nonaccrual LHFIACL LHFI /nonaccrual LHFI(excl 520.77 % 537.35 % 437.08 % 572.69 % 593.72 %individuallyevaluatedloans) CAPITAL RATIOSTotal equity / 10.19 % 10.41 % 10.43 % 10.52 % 10.99 %total assetsTangible equity 8.12 % 8.31 % 8.30 % 8.34 % 8.68 %/ tangibleassetsTangible equity 11.19 % 11.33 % 11.23 % 11.22 % 11.01 %/ risk-weightedassetsTier 1 leverage 8.92 % 9.00 % 9.11 % 9.33 % 9.20 %ratioCommon equity 11.68 % 11.76 % 11.71 % 11.62 % 11.36 %tier 1 capitalratioTier 1 12.17 % 12.25 % 12.20 % 12.11 % 11.86 %risk-basedcapital ratioTotal 14.01 % 14.10 % 14.07 % 14.12 % 12.88 %risk-basedcapital ratio STOCKPERFORMANCEMarket $ 32.22 $ 30.80 $ 33.66 $ 27.31 $ 21.41 value-CloseBook value $ 28.32 $ 28.35 $ 27.76 $ 27.45 $ 26.96

Tangible book $ 22.08 $ 22.13 $ 21.59 $ 21.26 $ 20.76 value (1) See Note 10 - 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 SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands) (unaudited)

Note 1 - Regulatory Matters

On October 22, 2021, Trustmark Corporation's subsidiary, Trustmark National Bank ("TNB"), issued a press release announcing that it entered into a consent order with the Office of the Comptroller of the Currency ("OCC") and a separate consent order jointly with the U.S. Department of Justice ("DOJ") and the Consumer Financial Protection Bureau ("CFPB"), to resolve allegations that TNB previously violated the Fair Housing Act (the "FHA"), the Equal Credit Opportunity Act (the "ECOA") and the Consumer Financial Protection Act within the Memphis metropolitan statistical area (the "Memphis MSA").

Under the DOJ and CFPB's joint consent order, TNB will pay a civil money penalty totaling $5.0 million, of which $4.0 million will satisfy the OCC's civil money penalty as set forth in the OCC's consent order; the remaining $1.0 million will be paid to the CFPB. The joint consent order also requires TNB, among other things, to implement a mutually agreed-upon Fair Lending Plan, invest $3.85 million over five years in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods, and devote a minimum of $400 thousand over five years toward community development partnership contributions and $200 thousand per year over five years toward advertising, community outreach, and credit repair and education in TNB's Memphis lending area (defined in the consent order as consisting of Shelby County and Fayette County in Tennessee and DeSoto County in Mississippi). TNB will also open one new mortgage loan production office to serve the credit needs of residents in a majority-Black and Hispanic neighborhood in TNB's Memphis lending area. In addition, TNB will continue to maintain its full-time Community Lending Manager position and its full-time Community Development Manager position, which are both focused on the Memphis MSA.

The joint consent order must be approved by the United States District Court for the Western District of Tennessee.

Note 2 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, 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.

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 September 30, 2021, Trustmark had PPP loans outstanding that totaled $46.5 million (net of $798 thousand of deferred fees and costs) under the CARES Act. Due to the 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 3 - Securities Available for Sale and Held to Maturity

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

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

SECURITIESAVAILABLE FOR SALE

U.S. Treasury $ 278,615 $ 30,025 $ - $ - $ - securities

U.S. Governmentagency 14,979 16,023 17,349 18,041 19,011 obligations

Obligations ofstates and 5,734 5,807 5,798 5,835 8,315 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 43,860 48,445 52,406 56,862 62,156 GNMA

Issued by FNMA 2,187,412 1,983,783 1,749,144 1,441,321 1,279,919 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 236,885 283,988 345,869 419,437 500,858 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 290,120 180,668 167,110 50,319 52,469 FNMA, FHLMC, orGNMA

Totalsecurities $ 3,057,605 $ 2,548,739 $ 2,337,676 $ 1,991,815 $ 1,922,728 available forsale



SECURITIES HELD TO MATURITY

Obligations ofstates and $ 10,683 $ 12,994 $ 26,554 $ 26,584 $ 31,605 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 5,912 6,249 7,268 7,598 8,244 GNMA

Issued by FNMA 48,554 53,406 61,855 67,944 78,213 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 264,638 291,477 324,360 360,361 399,400 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 65,118 68,886 73,701 75,585 93,818 FNMA, FHLMC, orGNMA

Totalsecurities held $ 394,905 $ 433,012 $ 493,738 $ 538,072 $ 611,280 to maturity

At September 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 $6.8 million ($5.1 million, net of tax).

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands) (unaudited)

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

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 98.5% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody's. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 4 - Loan Composition

LHFI consisted of the following during the periods presented:

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

Loans securedby real estate:

Construction,landdevelopment $ 1,286,613 $ 1,360,302 $ 1,342,088 $ 1,309,039 $ 1,385,947 and other landloans

Secured by 1-4family 1,891,292 1,810,396 1,742,782 1,741,132 1,775,400 residentialproperties

Secured bynonfarm, 2,924,953 2,819,662 2,799,195 2,709,026 2,707,627 nonresidentialproperties

Other real 986,163 1,078,622 1,135,005 1,065,964 887,792 estate secured

Commercial andindustrial 1,327,211 1,326,605 1,323,277 1,309,078 1,398,468 loans

Consumer loans 157,963 153,519 153,267 161,174 160,960

State andotherpolitical 1,125,186 1,136,764 1,036,694 1,000,776 935,349 subdivisionloans

Other loans 475,518 466,999 451,396 528,335 596,185

LHFI 10,174,899 10,152,869 9,983,704 9,824,524 9,847,728

ACL LHFI (104,073 ) (104,032 ) (109,191 ) (117,306 ) (122,010 )

Net LHFI $ 10,070,826 $ 10,048,837 $ 9,874,513 $ 9,707,218 $ 9,725,718

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

September 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 $ 1,286,613 $ 554,207 $ 45,335 $ 374,064 $ 38,583 $ 274,424 and other landloans

Secured by 1-4family 1,891,292 109,986 39,699 1,659,289 68,123 14,195 residentialproperties

Secured bynonfarm, 2,924,953 834,328 259,997 1,089,333 174,338 566,957 nonresidentialproperties

Other real 986,163 221,832 6,154 303,760 19,850 434,567 estate secured

Commercial andindustrial 1,327,211 230,698 23,678 597,197 276,876 198,762 loans

Consumer loans 157,963 22,125 8,403 101,034 19,398 7,003

State andotherpolitical 1,125,186 101,679 54,619 734,853 37,408 196,627 subdivisionloans

Other loans 475,518 74,703 11,903 289,739 69,725 29,448

Loans $ 10,174,899 $ 2,149,558 $ 449,788 $ 5,149,269 $ 704,301 $ 1,721,983



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

Lots $ 60,804 $ 27,014 $ 8,676 $ 17,782 $ 905 $ 6,427

Development 124,213 48,692 612 46,452 13,016 15,441

Unimproved 93,283 28,095 12,146 28,601 11,187 13,254 land

1-4 family 281,504 147,073 19,485 70,508 12,528 31,910 construction

Other 726,809 303,333 4,416 210,721 947 207,392 construction

Construction,landdevelopment $ 1,286,613 $ 554,207 $ 45,335 $ 374,064 $ 38,583 $ 274,424 and other landloans



TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands) (unaudited)

Note 4 - Loan Composition (continued)

September 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 $ 384,940 $ 155,375 $ 32,778 $ 105,444 $ 18,285 $ 73,058

Office 215,297 52,628 23,835 67,094 11,714 60,026

Hotel/motel 347,023 176,352 76,664 47,229 32,638 14,140

Mini-storage 130,853 22,757 2,227 76,790 632 28,447

Industrial 246,576 57,901 20,755 62,071 137 105,712

Health care 59,676 39,225 1,140 16,755 370 2,186

Convenience 23,047 8,010 683 3,627 1,194 9,533 stores

Nursing homes/ 204,678 106,572 - 71,672 6,434 20,000 senior living

Other 76,742 16,021 7,388 31,370 10,939 11,024

Total non-owner 1,688,832 634,841 165,470 482,052 82,343 324,126 occupied loans



Owner-occupied:

Office 167,713 37,485 42,334 49,810 9,794 28,290

Churches 96,810 19,892 6,089 48,537 9,352 12,940

Industrial 178,394 11,807 2,989 50,594 18,686 94,318 warehouses

Health care 143,180 12,033 6,915 107,190 2,296 14,746

Convenience 141,490 16,155 13,945 68,325 489 42,576 stores

Retail 75,640 13,214 13,577 20,040 12,035 16,774

Restaurants 56,892 3,750 4,545 31,612 13,585 3,400

Auto 56,403 6,358 261 25,240 24,544 - dealerships

Nursing homes/ 211,190 73,078 - 138,112 - - senior living

Other 108,409 5,715 3,872 67,821 1,214 29,787

Totalowner-occupied 1,236,121 199,487 94,527 607,281 91,995 242,831 loans

Loans securedby nonfarm, $ 2,924,953 $ 834,328 $ 259,997 $ 1,089,333 $ 174,338 $ 566,957 nonresidentialproperties

Note 5 - 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 September 30, 2021, the carrying amount of the Notes was $123.0 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 SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands) (unaudited)

Note 6 - Yields on Earning Assets and Interest-Bearing Liabilities

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

Quarter Ended Nine Months Ended

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

Securities - 1.28 % 1.30 % 1.40 % 1.62 % 2.02 % 1.32 % 2.14 %taxable

Securities - 3.79 % 3.70 % 4.02 % 3.89 % 3.80 % 3.88 % 3.76 %nontaxable

Securities - 1.29 % 1.31 % 1.43 % 1.65 % 2.05 % 1.34 % 2.17 %total

PPP loans 4.98 % 15.81 % 6.27 % 6.76 % 2.84 % 10.69 % 2.76 %

Loans - LHFI & 3.59 % 3.64 % 3.67 % 3.75 % 3.81 % 3.64 % 4.12 %LHFS

Loans - total 3.61 % 4.36 % 3.81 % 3.99 % 3.73 % 3.93 % 4.05 %

Fed funds sold &reverse - - - - 1.32 % - 0.69 %repurchases

Other earning 0.18 % 0.11 % 0.12 % 0.12 % 0.18 % 0.14 % 0.30 %assets

Total earning 2.70 % 3.33 % 3.00 % 3.35 % 3.26 % 3.01 % 3.55 %assets



Interest-bearing 0.14 % 0.19 % 0.22 % 0.27 % 0.31 % 0.18 % 0.45 %deposits

Fed fundspurchased & 0.14 % 0.14 % 0.14 % 0.13 % 0.15 % 0.14 % 0.64 %repurchases

Other borrowings 2.33 % 2.29 % 2.14 % 1.61 % 1.19 % 2.25 % 1.78 %

Totalinterest-bearing 0.21 % 0.25 % 0.28 % 0.30 % 0.33 % 0.24 % 0.48 %liabilities



Net interest 2.57 % 3.16 % 2.81 % 3.15 % 3.03 % 2.84 % 3.21 %margin

Net interestmargin excluding 2.90 % 2.94 % 2.99 % 3.09 % 3.20 % 2.94 % 3.36 %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 September 30, 2021 and June 30, 2021, the average FRB balance totaled $1.996 billion and $1.700 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 2.90% for the third quarter of 2021, a decrease of 4 basis points when compared to the second 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 7 - Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net positive ineffectiveness of $144 thousand during the third quarter of 2021.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands) (unaudited)

Note 7 - Mortgage Banking(continued)

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

Quarter Ended Nine Months Ended

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

Mortgageservicing $ 6,406 $ 6,318 $ 6,181 $ 6,227 $ 5,742 $ 18,905 $ 17,454 income, net

Change in fairvalue-MSR from (5,283 ) (5,029 ) (5,103 ) (5,177 ) (4,590 ) (15,415 ) (11,411 )runoff

Gain on sales 12,737 14,778 19,456 28,014 34,472 46,971 82,889 of loans, net

Mortgagebanking income 13,860 16,067 20,534 29,064 35,624 50,461 88,932 before hedgeineffectiveness

Change in fairvalue-MSR from 1,806 (4,465 ) 13,696 951 60 11,037 (27,098 )market changes

Change in fairvalue of (1,662 ) 5,731 (13,426 ) (1,860 ) 755 (9,357 ) 35,833 derivatives

Net positive(negative) 144 1,266 270 (909 ) 815 1,680 8,735 hedgeineffectiveness

Mortgage $ 14,004 $ 17,333 $ 20,804 $ 28,155 $ 36,439 $ 52,141 $ 97,667 banking, net

Note 8 - Salaries and Employee Benefit Plans

Early Retirement Program

In June 2021, Trustmark announced a voluntary early retirement program. In general, associates who were eligible to participate had to be at least 60 years of age with five or more years of continuous service. The cost of this program is reflected in a one-time charge of approximately $5.7 million (salaries and benefits of $5.6 million and other miscellaneous expense of $89 thousand; or $0.07 per diluted share net of tax) in Trustmark's third quarter of 2021 earnings. The salary and employee benefits expense savings resulting from the implementation of the early retirement program are expected to total approximately $1.3 million ($0.02 per diluted share net of tax) and $4.3 million ($0.05 per diluted share net of tax) for the remainder of 2021 and for the year ended 2022, respectively.

Note 9 - Other Noninterest Income and Expense

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

Quarter Ended Nine Months Ended

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

Partnershipamortizationfor tax $ (2,045 ) $ (1,989 ) $ (1,522 ) $ (1,877 ) $ (1,457 ) $ (5,556 ) $ (3,823 )creditpurposes

Increase inlifeinsurance 1,663 1,653 1,639 1,708 1,755 4,955 5,173 cashsurrendervalue

Othermiscellaneous 1,863 2,337 1,973 2,707 1,303 6,173 4,771 income

Total other, $ 1,481 $ 2,001 $ 2,090 $ 2,538 $ 1,601 $ 5,572 $ 6,121 net

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

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

Quarter Ended Nine Months Ended

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

Loan expense $ 4,022 $ 3,738 $ 4,167 $ 4,243 $ 4,184 $ 11,927 $ 10,934

Amortization of 549 553 666 752 752 1,768 2,300 intangibles

FDIC assessment 1,275 1,225 1,540 1,500 1,410 4,040 4,590 expense

Regulatory 5,000 - - - - 5,000 - settlement charge

Othermiscellaneous 7,673 7,623 8,166 9,395 8,252 23,462 24,792 expense

Total other $ 18,519 $ 13,139 $ 14,539 $ 15,890 $ 14,598 $ 46,197 $ 42,616 expense

During the third quarter of 2021, other expense included a charge of $5.0 million to resolve allegations by regulatory authorities regarding fair lending matters. See Note 1 - Regulatory Matters for further details.

Note 10 - Non-GAAP Financial Measures

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

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands except per share data) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

Quarter Ended Nine Months Ended

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

TANGIBLE EQUITY

AVERAGE BALANCES

Total shareholders' $ 1,782,304 $ 1,780,705 $ 1,759,351 $ 1,725,035 $ 1,694,903 $ 1,774,204 $ 1,666,999 equity

Less: Goodwill (384,237 ) (384,237 ) (385,155 ) (385,270 ) (385,270 ) (384,540 ) (383,016 )

Identifiable (5,899 ) (6,442 ) (7,118 ) (7,803 ) (8,550 ) (6,482 ) (8,146 )intangible assets

Total average $ 1,392,168 $ 1,390,026 $ 1,367,078 $ 1,331,962 $ 1,301,083 $ 1,383,182 $ 1,275,837 tangible equity



PERIOD END BALANCES

Total shareholders' $ 1,768,947 $ 1,779,309 $ 1,759,705 $ 1,741,117 $ 1,710,041 equity

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

Identifiable (5,621 ) (6,170 ) (6,724 ) (7,390 ) (8,142 ) intangible assets

Total tangible (a) $ 1,379,089 $ 1,388,902 $ 1,368,744 $ 1,348,457 $ 1,316,629 equity



TANGIBLE ASSETS

Total assets $ 17,364,644 $ 17,098,132 $ 16,878,313 $ 16,551,840 $ 15,558,162

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

Identifiable (5,621 ) (6,170 ) (6,724 ) (7,390 ) (8,142 ) intangible assets

Total tangible (b) $ 16,974,786 $ 16,707,725 $ 16,487,352 $ 16,159,180 $ 15,164,750 assets

Risk-weighted assets (c) $ 12,324,254 $ 12,256,492 $ 12,188,988 $ 12,017,378 $ 11,963,269



NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION

Net income $ 21,200 $ 47,981 $ 51,962 $ 51,217 $ 54,440 $ 121,143 $ 108,808

Plus: Intangibleamortization net of 412 415 500 564 564 1,327 1,725 tax

Net income adjusted for $ 21,612 $ 48,396 $ 52,462 $ 51,781 $ 55,004 $ 122,470 $ 110,533 intangible amortization

Period end common (d) 62,461,832 62,773,226 63,394,522 63,424,526 63,423,820 shares outstanding



TANGIBLE COMMON EQUITY MEASUREMENTS

Return on average 6.16 % 13.96 % 15.56 % 15.47 % 16.82 % 11.84 % 11.57 %tangible equity (1)

Tangible equity/ (a)/ 8.12 % 8.31 % 8.30 % 8.34 % 8.68 % tangible assets (b)

Tangible equity/ (a)/ 11.19 % 11.33 % 11.23 % 11.22 % 11.01 % risk-weighted assets (c)

(a)/Tangible book value (d) $ 22.08 $ 22.13 $ 21.59 $ 21.26 $ 20.76 *1,000



COMMON EQUITY TIER 1 CAPITAL (CET1)

Total shareholders' $ 1,768,947 $ 1,779,309 $ 1,759,705 $ 1,741,117 $ 1,710,041 equity

CECL transition 26,419 26,671 26,829 31,199 32,647 adjustment

AOCI-related 19,080 10,641 16,506 1,051 (5,684 ) adjustments

CET1 adjustments and deductions:

Goodwill net of associateddeferred tax liabilities (370,264 ) (370,276 ) (370,288 ) (371,333 ) (371,345 ) (DTLs)

Other adjustments and (4,817 ) (5,243 ) (5,675 ) (6,190 ) (6,770 ) deductions for CET1 (2)

CET1 capital (e) 1,439,365 1,441,102 1,427,077 1,395,844 1,358,889

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

Tier 1 capital $ 1,499,365 $ 1,501,102 $ 1,487,077 $ 1,455,844 $ 1,418,889



Common equity tier 1 (e)/ 11.68 % 11.76 % 11.71 % 11.62 % 11.36 % capital ratio (c)

(1)

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

(2)

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

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands except per share data) unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

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

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

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

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

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands except per share data) unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

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

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

Quarter Ended Nine Months Ended

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



Net interest $ 98,266 $ 119,423 $ 102,336 $ 111,378 $ 106,207 $ 320,025 $ 315,159 income (GAAP)

Noninterest 54,149 56,411 60,583 66,117 73,701 171,143 208,476 income (GAAP)

Pre-provision (a) $ 152,415 $ 175,834 $ 162,919 $ 177,495 $ 179,908 $ 491,168 $ 523,635 revenue



Noninterestexpense $ 129,600 $ 118,679 $ 121,548 $ 119,894 $ 116,963 $ 369,827 $ 346,407 (GAAP)

Less:Voluntaryearly (5,700 ) - - - - (5,700 ) (4,375 )retirementprogram

Regulatorysettlement (5,000 ) - - - - (5,000 ) - charge

Adjustednoninterestexpense - (b) $ 118,900 $ 118,679 $ 121,548 $ 119,894 $ 116,963 $ 359,127 $ 342,032 PPNR(Non-GAAP)



PPNR (a)(Non-GAAP) - $ 33,515 $ 57,155 $ 41,371 $ 57,601 $ 62,945 $ 132,041 $ 181,603 (b)

The following table presents adjustments to net income and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:

Quarter Ended Nine Months Ended

9/30/2021 9/30/2020 9/30/2021 9/30/2020

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



Net income $ 21,200 $ 0.34 $ 54,440 $ 0.86 $ 121,143 $ 1.92 $ 108,808 $ 1.71 (GAAP)



Significantnon-routinetransactions (net oftaxes):

Voluntaryearly 4,275 0.07 - - 4,275 0.07 3,281 0.05 retirementprogram

Regulatorysettlementcharge (not 5,000 0.08 - - 5,000 0.08 - - taxdeductible)

Net incomeadjusted forsignificant non-routine

transactions $ 30,475 $ 0.49 $ 54,440 $ 0.86 $ 130,418 $ 2.07 $ 112,089 $ 1.76 (Non-GAAP)





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

Return onaverage 4.72 % 6.77 % 12.78 % n/a 9.13 % 9.82 % 8.72 % 8.97 %equity

Return onaverage 6.16 % 8.77 % 16.82 % n/a 11.84 % 12.72 % 11.57 % 11.89 %tangibleequity

Return onaverage 0.49 % 0.71 % 1.37 % n/a 0.96 % 1.03 % 0.97 % 1.00 %assets



n/a - not applicable



TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS September 30, 2021 ($ in thousands except per share data) unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

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

Quarter Ended Nine Months Ended

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



Totalnoninterest $ 129,600 $ 118,679 $ 121,548 $ 119,894 $ 116,963 369,827 $ 346,407 expense(GAAP)

Less: Other realestate expense, (1,357 ) (1,511 ) (324 ) 812 (1,203 ) (3,192 ) (2,768 )net

Amortization of (549 ) (553 ) (666 ) (752 ) (752 ) (1,768 ) (2,300 )intangibles

Charitablecontributionsresulting in (350 ) (355 ) (350 ) (375 ) (375 ) (1,055 ) (1,125 )state taxcredits

Voluntary earlyretirement (5,700 ) - - - - (5,700 ) (4,375 )program

Regulatorysettlement (5,000 ) - - - - (5,000 ) - charge

Adjustednoninterest (c) $ 116,644 $ 116,260 $ 120,208 $ 119,579 $ 114,633 $ 353,112 $ 335,839 expense(Non-GAAP)



Netinterest $ 98,266 $ 119,423 $ 102,336 $ 111,378 $ 106,207 $ 320,025 $ 315,159 income(GAAP)

Add: Taxequivalent 2,947 2,957 2,894 2,939 2,969 8,798 9,084 adjustment

Netinterest (a) $ 101,213 $ 122,380 $ 105,230 $ 114,317 $ 109,176 $ 328,823 $ 324,243 income-FTE(Non-GAAP)



Noninterestincome $ 54,149 $ 56,411 $ 60,583 $ 66,117 $ 73,701 $ 171,143 $ 208,476 (GAAP)

Add: Partnershipamortization for 2,045 1,989 1,522 1,877 1,457 5,556 3,823 tax creditpurposes

Adjustednoninterest (b) $ 56,194 $ 58,400 $ 62,105 $ 67,994 $ 75,158 $ 176,699 $ 212,299 income(Non-GAAP)



Adjusted (a)+revenue (b) $ 157,407 $ 180,780 $ 167,335 $ 182,311 $ 184,334 $ 505,522 $ 536,542 (Non-GAAP)



Efficiency (c)/ratio ((a) 74.10 % 64.31 % 71.84 % 65.59 % 62.19 % 69.85 % 62.59 %(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