Trustmark Corporation Announces 2012 Financial Results and Declares $0.23 Quarterly Cash Dividend

  Trustmark Corporation Announces 2012 Financial Results and Declares $0.23
  Quarterly Cash Dividend

Business Wire

JACKSON, Miss. -- January 22, 2013

Trustmark Corporation (NASDAQ:TRMK) announced net income available to common
shareholders of $117.3 million for the year ended December 31, 2012, which
represented diluted earnings per share of $1.81, an increase of 9.0% compared
to figures one year earlier. Trustmark’s performance during 2012 produced a
return on average tangible common equity of 12.55% and a return on average
assets of 1.20%. In the fourth quarter of 2012, Trustmark’s net income
available to common shareholders totaled $27.7 million, which represented
diluted earnings per common share of $0.43, an increase of 13.2% compared to
the fourth quarter of 2011. Trustmark’s Board of Directors declared a
quarterly cash dividend of $0.23 per common share payable March 15, 2013, to
shareholders of record on March 1, 2013.

Printer friendly version of earnings release with consolidated financial
statements and notes:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50537853&lang=en

Gerard R. Host, President and CEO, stated, “2012 was a year of significant
achievement for Trustmark, particularly in light of prevailing economic
conditions. We continued to build upon and expand customer relationships, the
success of which is reflected in our strong financial performance. Thanks in
part to the low interest rate environment, the profitability of our mortgage
banking business reached record levels. We also experienced increased
profitability in our insurance and wealth management businesses. Credit
quality significantly improved in our banking business which, in turn,
increased profitability. During the year, we completed an acquisition in
Florida and announced plans to acquire Mobile, Alabama-based BancTrust
Financial Group, which is expected to close during the first quarter of 2013
pending regulatory approval. We also made investments in technology designed
to increase revenue and improve efficiency. Thanks to our dedicated
associates, solid profitability and strong capital base, Trustmark remains
well-positioned to continue meeting the needs of our customers and creating
value for our shareholders.”

Credit Quality

  *Significant reduction in classified and criticized loan balances
  *Nonperforming assets declined to lowest level in 16 quarters
  *Improved credit quality reflected in reduced net charge-offs and
    provisioning

Nonperforming loans totaled $82.4 million at December 31, 2012, an increase of
2.1% from the prior quarter and a decline of 25.4% from the prior year.
Foreclosed other real estate decreased 5.2% from the prior quarter and 1.1%
from the prior year to total $78.2 million. Collectively, nonperforming assets
totaled $160.6 million at December 31, 2012, the lowest level since year end
2008 and a decline of 1.6% from prior quarter and 15.3% from levels one year
earlier. All of the above metrics exclude acquired loans and other real estate
covered by FDIC loss-share agreements.

Net charge-offs during the fourth quarter of 2012 totaled $4.3 million and
represented 0.29% of average loans, excluding acquired loans. During 2012, net
charge-offs totaled $17.5 million, a 47.9% decline from levels one year
earlier, and represented 0.30% of average loans. The provision for loan losses
for loans held for investment (LHFI) in 2012 totaled $6.8 million, a 77.2%
reduction from the prior year. During the fourth quarter, Trustmark’s
provision for loan losses for LHFI was a negative $535 thousand as a result of
improved credit quality within its loan portfolio. During the fourth quarter,
Trustmark experienced a decline of $20.6 million, or 7.5%, in classified loans
and a decline of $20.9 million, or 6.0%, in criticized loans relative to the
prior quarter. Relative to figures one year earlier, classified loan balances
decreased $61.5 million, or 19.5%, while criticized loan balances decreased
$71.9 million, or 18.0%.

Allocation of Trustmark’s $78.7 million allowance for loan losses represented
1.59% of commercial loans and 0.97% of consumer and home mortgage loans,
resulting in an allowance to total loans of 1.41% at December 31, 2012, which
represents a level management considers to be commensurate with the inherent
risk in the loan portfolio. The allowance for loan losses represented 174.5%
of nonperforming loans, excluding impaired loans. All of the above metrics
exclude acquired loans.

Capital Strength

  *Tangible common equity to tangible assets expanded to 10.28%
  *Total risk-based capital ratio of 17.22%

Trustmark’s solid capital position reflects the consistent profitability of
its diversified financial services businesses as well as prudent balance sheet
management. At December 31, 2012, tangible common equity totaled $979.0
million and represented 10.28% of tangible assets while the total risk-based
capital ratio was 17.22%, significantly exceeding the 10% benchmark to be
classified as well capitalized. Trustmark’s strong capital base provides the
opportunity to support organic loan growth in an improving economy and enhance
long-term shareholder value.

Balance Sheet Management

  *Loan demand improved during fourth quarter
  *Average earning assets remained stable at $8.7 billion
  *Net interest income (FTE) totaled $86.0 million in fourth quarter, $355.4
    million in 2012

Loans held for investment and acquired loans totaled $5.7 billion at December
31, 2012, an increase of $50.7 million from the prior quarter. During the
quarter Trustmark increased lending to public entities and school districts,
which was reflected in other loan growth of $56.8 million. Trustmark also
experienced growth in its construction and land development ($7.1 million) and
commercial and industrial ($4.4 million) loan portfolios. Excluding
anticipated run-off in the 1-4 family mortgage loan portfolio ($13.6 million)
and in the indirect auto loan portfolio ($10.7 million), total loans increased
$75.1 million relative to the prior quarter.

During the fourth quarter of 2012, average earning assets remained stable at
$8.7 billion as growth in investment securities effectively offset declining
loan balances. Average deposits declined $36.5 million, or 0.5%, to $7.8
billion. Average noninterest-bearing deposits increased 3.7% to represent
27.1% of average deposits in the fourth quarter of 2012.

Trustmark produced net interest income (FTE) of $86.0 million in the fourth
quarter of 2012. The net interest margin was 3.94% during the fourth quarter,
down 12 basis points from the prior quarter. The decline is primarily
attributable to the continued downward repricing of loans and securities,
partially offset by modest declines in the cost of interest-bearing deposits.

Noninterest Income

  *Noninterest income totaled $42.8 million in fourth quarter, $175.2 million
    in 2012
  *Mortgage banking revenue reaches record $11.3 million in fourth quarter,
    $41.0 million in 2012
  *Tax credit investments reduced effective tax rate to 23.8% in fourth
    quarter

Noninterest income totaled $42.8 million in the fourth quarter, a decrease of
$2.1 million from the prior quarter. This decline is a result of a $1.2
million gain on disposition of the Corporation’s proprietary mutual fund
family that occurred in the third quarter as well as an increase in
partnership amortization of $900 thousand related to tax credit investments
that reduced the Corporation’s effective tax rate during the fourth quarter by
approximately 3.6%. Each of these items was included in other noninterest
income.

Trustmark continued to achieve solid financial performance from its diverse
financial services businesses. Mortgage banking revenue continued at record
levels due to strong loan production resulting from historically low interest
rates. Mortgage loan production in the fourth quarter totaled $494.9 million,
down 3.9% from the prior quarter but up 17.5% relative to levels one year
earlier. During the fourth quarter, mortgage banking revenue totaled $11.3
million, reflecting increased mortgage servicing income and secondary
marketing gains and a decrease in mortgage servicing hedge ineffectiveness.
Mortgage loan production in 2012 totaled $1.9 billion, an increase of 48.8%
from levels in 2011 while mortgage banking revenue increased 52.8% to $41.0
million.

Insurance revenue in the fourth quarter totaled $6.9 million, reflecting a
seasonal decrease of 8.6% relative to the prior quarter and an increase of
13.3% from levels one year earlier. Improved performance year-over-year
resulted from increased business development efforts as well as increasing
insurance premium levels. Insurance revenue in 2012 totaled $28.2 million, an
increase of 4.6% relative to the prior year.

Wealth management revenue totaled $6.2 million during the fourth quarter, an
increase of 10.1% from the prior quarter and 18.3% from the comparable period
one year ago. This growth was attributable in part to increased sales within
investment services as well as improved profitability within the trust
management business.

Bankcard and other fee income totaled $8.0 million in the fourth quarter, an
increase of 15.2% from the prior quarter and 12.2% from the prior year. The
growth is principally due to increased commercial credit related fee income
and interchange income from debit cards. Service charges on deposit accounts
totaled $12.4 million in the fourth quarter, reflecting a 5.7% decline from
the prior quarter and 6.6% decrease from levels one year earlier due primarily
to a reduction in NSF and overdraft fees.

Noninterest Expense

  *Routine noninterest expense remained well-controlled
  *ORE and foreclosure expense declined 31.5% in 2012
  *Continued investments to support revenue growth and profitability

Noninterest expense in the fourth quarter totaled $87.3 million, an increase
of $3.8 million from the prior quarter; excluding ORE and foreclosure expense,
noninterest expense increased $2.4 million principally due to additional
incentive accruals and commissions ($1.1 million and $545 thousand,
respectively). Trustmark also made an additional contribution to its
self-funded medical plan ($643 thousand), a portion of which was to support
wellness and healthcare with the opening of an associate medical clinic in the
Corporation’s main office. Each of these items is included in salary and
employee benefits expense. ORE/foreclosure expense totaled $3.2 million in the
fourth quarter, an increase of $1.5 million from the prior quarter due to
additional write downs on foreclosed real estate.

During 2012, noninterest expense totaled $344.5 million; excluding ORE and
foreclosure expense, noninterest expense was $333.3 million, an increase of
$19.8 million, or 6.3% from levels one year earlier. Excluding non-routine
transaction expense ($2.6 million) as well as on-going expense ($4.0 million)
associated with the merger of Bay Bank and Trust Company in the first quarter,
noninterest expense increased approximately 4.2% in 2012.

Trustmark continued to make investments and reallocate resources to support
revenue growth and profitability. During the year, a new ATM fleet was
deployed across the franchise which included deposit automation. Since
implementation, ATM-originated deposit transactions have increased
approximately 150%. In addition, new operating systems designed to enhance
efficiency and productivity were introduced in the Corporation’s finance and
human resources areas. During 2012, Trustmark continued realignment of its
branch network as three branch offices were consolidated (two in Florida and
one in Houston); plans are underway to consolidate two other offices in
Houston into a new administrative office during the first quarter of 2013.
Trustmark remains committed to identifying additional reengineering and
efficiency opportunities to enhance shareholder value.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call with
analysts on Tuesday, January 22, 2013, at 4:00 p.m. Central Time to discuss
the Corporation’s financial results. Interested parties may listen to the
conference call by dialing (877)317-6789, passcode 10008303, 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 Monday, February 4, 2013, in archived format at the same web address
or by calling (877)344-7529, passcode 10008303.

Trustmark is a financial services company providing banking and financial
solutions through approximately 170 offices in 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,” “potential,” “continue,” “could,” “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 in this report
could have an adverse effect on our business, results of operations and
financial condition. Should one or more of these risks materialize, or should
any such underlying assumptions prove to be significantly different, actual
results may vary significantly from those anticipated, estimated, projected or
expected.

Risks that could cause actual results to differ materially from current
expectations of Management include, but are not limited to, changes in the
level of nonperforming assets and charge-offs, local, state and national
economic and market conditions, including the extent and duration of the
current volatility in the credit and financial markets, 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 the European financial crisis on the U.S. economy and the
markets we serve, and monetary and other governmental actions designed to
address the level and volatility of interest rates and the volatility of
securities, currency and other 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, changes in our compensation and benefit plans, greater than expected
costs or difficulties related to the integration of acquisitions or new
products and lines of business, natural disasters, environmental disasters,
acts of war or terrorism, the expected timing and likelihood of completion of
the proposed merger with BancTrust Financial Group, Inc., (BancTrust),
including the timing, receipt and terms and conditions of required regulatory
approvals of the proposed merger that could reduce anticipated benefits or
cause the parties to abandon the merger, the ability to maintain relationships
with customers, employees or suppliers as well as the ability to successfully
integrate the business and realize cost savings and any other synergies and
the risk that the credit ratings of the combined company or its subsidiaries
may be different from what the companies expect, the risk that the proposed
merger with BancTrust is terminated prior to completion and results in
significant transaction costs to Trustmark, and other risks described in our
filings with the Securities and Exchange Commission.

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

                                                                                                 
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2012
($ in thousands)
(unaudited)
                                                                        Linked Quarter           Year over Year
QUARTERLY AVERAGE        12/31/2012       9/30/2012        12/31/2011       $ Change       %         $ Change       % Change
BALANCES                                                                                   Change
Securities               $ 2,466,738      $ 2,409,292      $ 2,241,361      $ 57,446       2.4   %   $ 225,377      10.1   %
AFS-taxable
Securities                 169,906          169,037          164,057          869          0.5   %     5,849        3.6    %
AFS-nontaxable
Securities                 26,510           28,333           41,106           (1,823   )   -6.4  %     (14,596  )   -35.5  %
HTM-taxable
Securities                17,443         18,361         22,664         (918     )   -5.0  %    (5,221   )   -23.0  %
HTM-nontaxable
Total securities          2,680,597      2,625,023      2,469,188      55,574      2.1   %    211,409     8.6    %
Loans (including           5,834,525        5,886,447        5,999,221        (51,922  )   -0.9  %     (164,696 )   -2.7   %
loans held for sale)
Acquired loans:
Noncovered loans           82,317           88,562           -                (6,245   )   -7.1  %     82,317       n/m
Covered loans              58,272           65,259           77,934           (6,987   )   -10.7 %     (19,662  )   -25.2  %
Fed funds sold and         8,747            6,583            10,516           2,164        32.9  %     (1,769   )   -16.8  %
rev repos
Other earning assets      31,168         31,758         34,859         (590     )   -1.9  %    (3,691   )   -10.6  %
Total earning assets      8,695,626      8,703,632      8,591,718      (8,006   )   -0.1  %    103,908     1.2    %
Allowance for loan         (88,715    )     (86,865    )     (90,857    )     (1,850   )   2.1   %     2,142        -2.4   %
losses
Cash and due from          238,976          236,566          221,278          2,410        1.0   %     17,698       8.0    %
banks
Other assets              972,748        958,030        914,468        14,718      1.5   %    58,280      6.4    %
Total assets             $ 9,818,635     $ 9,811,363     $ 9,636,607     $ 7,272       0.1   %   $ 182,028     1.9    %
                                                                                                                    
Interest-bearing         $ 1,545,967      $ 1,534,244      $ 1,511,422      $ 11,723       0.8   %   $ 34,545       2.3    %
demand deposits
Savings deposits           2,275,569        2,348,413        2,067,431        (72,844  )   -3.1  %     208,138      10.1   %
Time deposits less         1,120,735        1,150,620        1,212,190        (29,885  )   -2.6  %     (91,455  )   -7.5   %
than $100,000
Time deposits of          760,363        781,926        844,565        (21,563  )   -2.8  %    (84,202  )   -10.0  %
$100,000 or more
Total
interest-bearing           5,702,634        5,815,203        5,635,608        (112,569 )   -1.9  %     67,026       1.2    %
deposits
Fed funds purchased        388,007          374,885          526,740          13,122       3.5   %     (138,733 )   -26.3  %
and repos
Short-term                 85,313           81,773           141,600          3,540        4.3   %     (56,287  )   -39.8  %
borrowings
Long-term FHLB             -                -                197              -            n/m         (197     )   -100.0 %
advances
Subordinated notes         49,866           49,858           49,833           8            0.0   %     33           0.1    %
Junior subordinated       61,856         61,856         61,856         -           0.0   %    -           0.0    %
debt securities
Total
interest-bearing           6,287,676        6,383,575        6,415,834        (95,899  )   -1.5  %     (128,158 )   -2.0   %
liabilities
Noninterest-bearing        2,115,784        2,039,729        1,897,398        76,055       3.7   %     218,386      11.5   %
deposits
Other liabilities         126,953        114,454        100,274        12,499      10.9  %    26,679      26.6   %
Total liabilities          8,530,413        8,537,758        8,413,506        (7,345   )   -0.1  %     116,907      1.4    %
Shareholders' equity      1,288,222      1,273,605      1,223,101      14,617      1.1   %    65,121      5.3    %
Total liabilities        $ 9,818,635     $ 9,811,363     $ 9,636,607     $ 7,272       0.1   %   $ 182,028     1.9    %
and equity
                                                                                                                    
                                                                            Linked Quarter           Year over Year
PERIOD END BALANCES      12/31/2012       9/30/2012        12/31/2011       $ Change       %         $ Change       % Change
                                                                                           Change
Cash and due from        $ 231,489        $ 209,188        $ 202,625        $ 22,301       10.7  %   $ 28,864       14.2   %
banks
Fed funds sold and         7,046            5,295            9,258            1,751        33.1  %     (2,212   )   -23.9  %
rev repos
Securities available       2,657,745        2,724,446        2,468,993        (66,701  )   -2.4  %     188,752      7.6    %
for sale
Securities held to         42,188           45,484           57,705           (3,296   )   -7.2  %     (15,517  )   -26.9  %
maturity
Loans held for sale        257,986          324,897          216,553          (66,911  )   -20.6 %     41,433       19.1   %
(LHFS)
Loans held for             5,592,754        5,527,963        5,857,484        64,791       1.2   %     (264,730 )   -4.5   %
investment (LHFI)
Allowance for loan        (78,738    )    (83,526    )    (89,518    )    4,788       -5.7  %    10,780      -12.0  %
losses
Net LHFI                   5,514,016        5,444,437        5,767,966        69,579       1.3   %     (253,950 )   -4.4   %
Acquired loans:
Noncovered loans           81,523           83,110           -                (1,587   )   -1.9  %     81,523       n/m
Covered loans              52,041           64,503           76,804           (12,462  )   -19.3 %     (24,763  )   -32.2  %
Allowance for loan
losses, acquired          (6,075     )    (4,343     )    (502       )    (1,732   )   39.9  %    (5,573   )   n/m
loans
Net acquired loans        127,489        143,270        76,302         (15,781  )   -11.0 %    51,187      67.1   %
Net LHFI and               5,641,505        5,587,707        5,844,268        53,798       1.0   %     (202,763 )   -3.5   %
acquired loans
Premises and               154,841          155,467          142,582          (626     )   -0.4  %     12,259       8.6    %
equipment, net
Mortgage servicing         47,341           44,211           43,274           3,130        7.1   %     4,067        9.4    %
rights
Goodwill                   291,104          291,104          291,104          -            0.0   %     -            0.0    %
Identifiable               17,306           18,327           14,076           (1,021   )   -5.6  %     3,230        22.9   %
intangible assets
Other real estate,
excluding covered          78,189           82,475           79,053           (4,286   )   -5.2  %     (864     )   -1.1   %
other real estate
Covered other real         5,741            5,722            6,331            19           0.3   %     (590     )   -9.3   %
estate
FDIC indemnification       21,774           23,979           28,348           (2,205   )   -9.2  %     (6,574   )   -23.2  %
asset
Other assets              374,412        353,857        322,837        20,555      5.8   %    51,575      16.0   %
Total assets             $ 9,828,667     $ 9,872,159     $ 9,727,007     $ (43,492  )   -0.4  %   $ 101,660     1.0    %
                                                                                                                    
Deposits:
Noninterest-bearing      $ 2,254,211      $ 2,118,853      $ 2,033,442      $ 135,358      6.4   %   $ 220,769      10.9   %
Interest-bearing          5,642,306      5,685,188      5,532,921      (42,882  )   -0.8  %    109,385     2.0    %
Total deposits             7,896,517        7,804,041        7,566,363        92,476       1.2   %     330,154      4.4    %
Fed funds purchased        288,829          408,711          604,500          (119,882 )   -29.3 %     (315,671 )   -52.2  %
and repos
Short-term                 86,920           83,612           87,628           3,308        4.0   %     (708     )   -0.8   %
borrowings
Subordinated notes         49,871           49,863           49,839           8            0.0   %     32           0.1    %
Junior subordinated        61,856           61,856           61,856           -            0.0   %     -            0.0    %
debt securities
Other liabilities         157,305        186,061        141,784        (28,756  )   -15.5 %    15,521      10.9   %
Total liabilities         8,541,298      8,594,144      8,511,970      (52,846  )   -0.6  %    29,328      0.3    %
Common stock               13,506           13,496           13,364           10           0.1   %     142          1.1    %
Capital surplus            285,905          284,089          266,026          1,816        0.6   %     19,879       7.5    %
Retained earnings          984,563          973,182          932,526          11,381       1.2   %     52,037       5.6    %
Accum other
comprehensive             3,395          7,248          3,121          (3,853   )   -53.2 %    274         8.8    %
income, net of tax
Total shareholders'       1,287,369      1,278,015      1,215,037      9,354       0.7   %    72,332      6.0    %
equity
Total liabilities        $ 9,828,667     $ 9,872,159     $ 9,727,007     $ (43,492  )   -0.4  %   $ 101,660     1.0    %
and equity
                                                                                                                    
n/m - percentage changes greater than +/- 100% are considered not meaningful

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2012
($ in thousands except per share data)
(unaudited)
                                                                                                                    
                                                                                                                    
                         Quarter Ended                                      Linked Quarter           Year over Year
INCOME STATEMENTS        12/31/2012       9/30/2012        12/31/2011       $ Change       %         $ Change       % Change
                                                                                           Change
Interest and fees on     $ 74,848         $ 77,783         $ 82,230         $ (2,935   )   -3.8  %   $ (7,382   )   -9.0   %
loans-FTE
Interest on                15,305           15,909           17,362           (604     )   -3.8  %     (2,057   )   -11.8  %
securities-taxable
Interest on
securities-tax             2,066            2,089            2,133            (23      )   -1.1  %     (67      )   -3.1   %
exempt-FTE
Interest on fed
funds sold and rev         9                6                10               3            50.0  %     (1       )   -10.0  %
repos
Other interest            337            339            327            (2       )   -0.6  %    10          3.1    %
income
Total interest            92,565         96,126         102,062        (3,561   )   -3.7  %    (9,497   )   -9.3   %
income-FTE
Interest on deposits       5,061            5,725            7,728            (664     )   -11.6 %     (2,667   )   -34.5  %
Interest on fed            140              135              195              5            3.7   %     (55      )   -28.2  %
funds pch and repos
Other interest            1,346          1,358          1,418          (12      )   -0.9  %    (72      )   -5.1   %
expense
Total interest            6,547          7,218          9,341          (671     )   -9.3  %    (2,794   )   -29.9  %
expense
Net interest               86,018           88,908           92,721           (2,890   )   -3.3  %     (6,703   )   -7.2   %
income-FTE
Provision for loan         (535       )     3,358            6,073            (3,893   )   n/m         (6,608   )   n/m
losses, LHFI
Provision for loan
losses, acquired          1,945          2,105          624            (160     )   -7.6  %    1,321       n/m
loans
Net interest income       84,608         83,445         86,024         1,163       1.4   %    (1,416   )   -1.6   %
after provision-FTE
Service charges on         12,391           13,135           13,269           (744     )   -5.7  %     (878     )   -6.6   %
deposit accounts
Insurance                  6,887            7,533            6,076            (646     )   -8.6  %     811          13.3   %
commissions
Wealth management          6,181            5,612            5,223            569          10.1  %     958          18.3   %
Bank card and other        7,978            6,924            7,112            1,054        15.2  %     866          12.2   %
fees
Mortgage banking,          11,331           11,150           6,038            181          1.6   %     5,293        87.7   %
net
Other, net                (2,007     )    512            (4,928     )    (2,519   )   n/m        2,921       -59.3  %
Nonint inc-excl sec        42,761           44,866           32,790           (2,105   )   -4.7  %     9,971        30.4   %
gains (losses), net
Security gains            18             (1         )    (11        )    19          n/m        29          n/m
(losses), net
Total noninterest         42,779         44,865         32,779         (2,086   )   -4.6  %    10,000      30.5   %
income
Salaries and               49,724           47,404           45,616           2,320        4.9   %     4,108        9.0    %
employee benefits
Services and fees          12,572           11,682           11,323           890          7.6   %     1,249        11.0   %
Net                        5,023            5,352            5,038            (329     )   -6.1  %     (15      )   -0.3   %
occupancy-premises
Equipment expense          5,288            5,095            5,139            193          3.8   %     149          2.9    %
FDIC assessment            1,075            1,826            1,484            (751     )   -41.1 %     (409     )   -27.6  %
expense
ORE/Foreclosure            3,173            1,702            2,760            1,471        86.4  %     413          15.0   %
expense
Other expense             10,454         10,399         11,643         55          0.5   %    (1,189   )   -10.2  %
Total noninterest         87,309         83,460         83,003         3,849       4.6   %    4,306       5.2    %
expense
Income before income       40,078           44,850           35,800           (4,772   )   -10.6 %     4,278        11.9   %
taxes and tax eq adj
Tax equivalent            3,699          3,629          3,663          70          1.9   %    36          1.0    %
adjustment
Income before income       36,379           41,221           32,137           (4,842   )   -11.7 %     4,242        13.2   %
taxes
Income taxes              8,669          11,317         7,879          (2,648   )   -23.4 %    790         10.0   %
Net income available
to common                $ 27,710        $ 29,904        $ 24,258        $ (2,194   )   -7.3  %   $ 3,452       14.2   %
shareholders
                                                                                                                    
                                                                                                                    
Per common share
data
Earnings per share -     $ 0.43          $ 0.46          $ 0.38          $ (0.03    )   -6.5  %   $ 0.05        13.2   %
basic
                                                                                                                    
Earnings per share -     $ 0.43          $ 0.46          $ 0.38          $ (0.03    )   -6.5  %   $ 0.05        13.2   %
diluted
                                                                                                                    
Dividends per share      $ 0.23          $ 0.23          $ 0.23          $ -           0.0   %   $ -           0.0    %
                                                                                                                    
Weighted average
common shares
outstanding
Basic                     64,785,457     64,778,329     64,122,188 
                                                                                                                    
Diluted                   65,007,281     64,992,614     64,330,242 
                                                                                                                    
Period end common         64,820,414     64,779,937     64,142,498 
shares outstanding
                                                                                                                    
OTHER FINANCIAL DATA
Return on common           8.56       %     9.34       %     7.87       %
equity
Return on average
tangible common            11.51      %     12.61      %     10.70      %
equity
Return on equity           8.56       %     9.34       %     7.87       %
Return on assets           1.12       %     1.21       %     1.00       %
Interest margin -          4.23       %     4.39       %     4.71       %
Yield - FTE
Interest margin -          0.30       %     0.33       %     0.43       %
Cost
Net interest margin        3.94       %     4.06       %     4.28       %
- FTE
Efficiency ratio (1)       67.80      %     62.39      %     66.13      %
Full-time equivalent       2,666            2,632            2,537
employees
                                                                                                                    
COMMON STOCK
PERFORMANCE
Market value-Close       $ 22.46          $ 24.34          $ 24.29
Common book value        $ 19.86          $ 19.73          $ 18.94
Tangible common book     $ 15.10          $ 14.95          $ 14.18
value
                                                                                                                    
                                                                                                                    
(1) - Excludes nonrecurring income and expense items such as securities gains or losses, bargain purchase gains and
non-routine acquisition related transaction expenses.
                                                                                                                    
n/m - percentage changes greater than +/- 100% are considered not meaningful
                                                                                                                    
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2012
($ in thousands)
(unaudited)
                         Quarter Ended                                      Linked Quarter           Year over Year
NONPERFORMING ASSETS     12/31/2012       9/30/2012        12/31/2011       $ Change       %         $ Change       % Change
(1)                                                                                        Change
Nonaccrual loans
Florida                  $ 19,314         $ 21,456         $ 23,002         $ (2,142   )   -10.0 %   $ (3,688   )   -16.0  %
Mississippi (2)            38,960           32,041           46,746           6,919        21.6  %     (7,786   )   -16.7  %
Tennessee (3)              8,401            7,388            15,791           1,013        13.7  %     (7,390   )   -46.8  %
Texas                     15,688         19,773         24,919         (4,085   )   -20.7 %    (9,231   )   -37.0  %
Total nonaccrual           82,363           80,658           110,458          1,705        2.1   %     (28,095  )   -25.4  %
loans
Other real estate
Florida                    18,569           22,340           29,963           (3,771   )   -16.9 %     (11,394  )   -38.0  %
Mississippi (2)            27,771           27,113           19,483           658          2.4   %     8,288        42.5   %
Tennessee (3)              17,589           18,545           16,879           (956     )   -5.2  %     710          4.2    %
Texas                     14,260         14,477         12,728         (217     )   -1.5  %    1,532       12.0   %
Total other real          78,189         82,475         79,053         (4,286   )   -5.2  %    (864     )   -1.1   %
estate
Total nonperforming      $ 160,552       $ 163,133       $ 189,511       $ (2,581   )   -1.6  %   $ (28,959  )   -15.3  %
assets
                                                                                                                    
LOANS PAST DUE OVER
90 DAYS  (4)
LHFI                     $ 6,378         $ 5,699         $ 4,230         $ 679         11.9  %   $ 2,148       50.8   %
                                                                                                                    
LHFS-Guaranteed GNMA
serviced loans
(no obligation to        $ 43,073        $ 39,492        $ 39,379        $ 3,581       9.1   %   $ 3,694       9.4    %
repurchase)
                                                                                                                    
                         Quarter Ended                                      Linked Quarter           Year over Year
ALLOWANCE FOR LOAN       12/31/2012       9/30/2012        12/31/2011       $ Change       %         $ Change       % Change
LOSSES (4)                                                                                 Change
Beginning Balance        $ 83,526         $ 84,809         $ 89,463         $ (1,283   )   -1.5  %   $ (5,937   )   -6.6   %
Provision for loan         (535       )     3,358            6,073            (3,893   )   n/m         (6,608   )   n/m
losses
Charge-offs                (8,829     )     (7,907     )     (8,457     )     (922     )   11.7  %     (372     )   4.4    %
Recoveries                4,576          3,266          2,439          1,310       40.1  %    2,137       87.6   %
Net charge-offs           (4,253     )    (4,641     )    (6,018     )    388         -8.4  %    1,765       -29.3  %
Ending Balance           $ 78,738        $ 83,526        $ 89,518        $ (4,788   )   -5.7  %   $ (10,780  )   -12.0  %
                                                                                                                    
PROVISION FOR LOAN                                                                                                `
LOSSES (4)
Florida                  $ (706       )   $ 7              $ 4,797          $ (713     )   n/m       $ (5,503   )   n/m
Mississippi (2)            2,031            466              3,783            1,565        n/m         (1,752   )   -46.3  %
Tennessee (3)              (1,037     )     687              (885       )     (1,724   )   n/m         (152     )   17.2   %
Texas                     (823       )    2,198          (1,622     )    (3,021   )   n/m        799         -49.3  %
Total provision for      $ (535       )   $ 3,358         $ 6,073         $ (3,893   )   n/m       $ (6,608   )   n/m
loan losses
                                                                                                                    
NET CHARGE-OFFS (4)
Florida                  $ (237       )   $ (488       )   $ 2,576          $ 251          -51.4 %   $ (2,813   )   n/m
Mississippi (2)            874              4,726            2,556            (3,852   )   -81.5 %     (1,682   )   -65.8  %
Tennessee (3)              (43        )     438              773              (481     )   n/m         (816     )   n/m
Texas                     3,659          (35        )    113            3,694       n/m        3,546       n/m
Total net                $ 4,253         $ 4,641         $ 6,018         $ (388     )   -8.4  %   $ (1,765   )   -29.3  %
charge-offs
                                                                                                                    
CREDIT QUALITY
RATIOS  (1)
Net charge                 0.29       %     0.31       %     0.40       %
offs/average loans
Provision for loan         -0.04      %     0.23       %     0.40       %
losses/average loans
Nonperforming
loans/total loans          1.41       %     1.38       %     1.82       %
(incl LHFS)
Nonperforming
assets/total loans         2.74       %     2.79       %     3.12       %
(incl LHFS)
Nonperforming
assets/total loans         2.71       %     2.75       %     3.08       %
(incl LHFS) +ORE
ALL/total loans            1.41       %     1.51       %     1.53       %
(excl LHFS)
ALL-commercial/total       1.59       %     1.79       %     1.91       %
commercial loans
ALL-consumer/total
consumer and home          0.97       %     0.84       %     0.76       %
mortgage loans
ALL/nonperforming          95.60      %     103.56     %     81.04      %
loans
ALL/nonperforming
loans -
(excl impaired             174.46     %     174.09     %     194.19     %
loans)
                                                                                                                    
CAPITAL RATIOS
Total equity/total         13.10      %     12.95      %     12.49      %
assets
Common equity/total        13.10      %     12.95      %     12.49      %
assets
Tangible common
equity/tangible            10.28      %     10.13      %     9.66       %
assets
Tangible common
equity/risk-weighted       14.56      %     14.49      %     13.83      %
assets
Tier 1 leverage            10.97      %     10.83      %     10.43      %
ratio
Tier 1 common
risk-based capital         14.63      %     14.50      %     13.90      %
ratio
Tier 1 risk-based          15.53      %     15.40      %     14.81      %
capital ratio
Total risk-based           17.22      %     17.25      %     16.67      %
capital ratio
                                                                                                                    
(1) - Excludes Acquired Loans and Covered Other Real Estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes Acquired Loans
                                                                                                                    
n/m - percentage changes greater than +/- 100% are considered not
meaningful

<*Story too large*
                                                                                                                   
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2012
($ in thousands)
(unaudited)
                      Quarter Ended                                                                   Year Ended
AVERAGE BALANCES        12/31/2012     9/30/2012      6/30/2012       3/31/2012       12/31/2011      12/31/2012      12/31/2011
Securities              $ 2,466,738     $ 2,409,292     $ 2,341,475     $ 2,327,572     $ 2,241,361     $ 2,386,552     $ 2,146,773
AFS-taxable
Securities                169,906         169,037         167,287         160,870         164,057         166,790         157,879
AFS-nontaxable
Securities                26,510          28,333          30,136          33,270          41,106          29,551          66,164
HTM-taxable
Securities               17,443        18,361        19,378        21,598        22,664        19,188        24,891    
HTM-nontaxable
Total securities         2,680,597     2,625,023     2,558,276     2,543,310     2,469,188     2,602,081     2,395,707 
Loans (including
loans held for            5,834,525       5,886,447       5,938,168       6,014,133       5,999,221       5,918,002       6,033,624
sale)
Acquired loans:
Noncovered loans          82,317          88,562          97,341          19,931          -               72,111          -
Covered loans             58,272          65,259          70,217          75,612          77,934          67,310          60,180
Fed funds sold and        8,747           6,583           5,309           9,568           10,516          7,552           7,871
rev repos
Other earning            31,168        31,758        29,654        34,102        34,859        31,669        36,719    
assets
Total earning            8,695,626     8,703,632     8,698,965     8,696,656     8,591,718     8,698,725     8,534,101 
assets
Allowance for loan        (88,715   )     (86,865   )     (92,223   )     (92,062   )     (90,857   )     (89,954   )     (92,621   )
losses
Cash and due from         238,976         236,566         272,283         232,139         221,278         244,952         219,058
banks
Other assets             972,748       958,030       947,914       918,273       914,468       949,328       922,905   
Total assets            $ 9,818,635    $ 9,811,363    $ 9,826,939    $ 9,755,006    $ 9,636,607    $ 9,803,051    $ 9,583,443 
                                                                                                                        
Interest-bearing        $ 1,545,967     $ 1,534,244     $ 1,545,203     $ 1,545,045     $ 1,511,422     $ 1,542,601     $ 1,528,963
demand deposits
Savings deposits          2,275,569       2,348,413       2,467,546       2,339,166       2,067,431       2,357,424       2,131,057
Time deposits less        1,120,735       1,150,620       1,169,532       1,190,888       1,212,190       1,157,822       1,227,588
than $100,000
Time deposits of         760,363       781,926       813,530       825,214       844,565       795,126       875,816   
$100,000 or more
Total
interest-bearing          5,702,634       5,815,203       5,995,811       5,900,313       5,635,608       5,852,973       5,763,424
deposits
Fed funds purchased       388,007         374,885         280,726         437,270         526,740         370,283         507,925
and repos
Short-term                85,313          81,773          80,275          84,797          141,600         83,042          142,984
borrowings
Long-term FHLB            -               -               -               -               197             -               1,240
advances
Subordinated notes        49,866          49,858          49,850          49,842          49,833          49,854          49,821
Junior subordinated      61,856        61,856        61,856        61,856        61,856        61,856        61,856    
debt securities
Total
interest-bearing          6,287,676       6,383,575       6,468,518       6,534,078       6,415,834       6,418,008       6,527,250
liabilities
Noninterest-bearing       2,115,784       2,039,729       1,998,077       1,869,758       1,897,398       2,006,230       1,761,946
deposits
Other liabilities        126,953       114,454       104,628       122,668       100,274       117,196       99,974    
Total liabilities         8,530,413       8,537,758       8,571,223       8,526,504       8,413,506       8,541,434       8,389,170
Shareholders'            1,288,222     1,273,605     1,255,716     1,228,502     1,223,101     1,261,617     1,194,273 
equity
Total liabilities       $ 9,818,635    $ 9,811,363    $ 9,826,939    $ 9,755,006    $ 9,636,607    $ 9,803,051    $ 9,583,443 
and equity
                                                                                                                        
PERIOD END BALANCES     12/31/2012      9/30/2012       6/30/2012       3/31/2012       12/31/2011
Cash and due from       $ 231,489       $ 209,188       $ 284,735       $ 213,500       $ 202,625
banks
Fed funds sold and        7,046           5,295           6,725           6,301           9,258
rev repos
Securities                2,657,745       2,724,446       2,592,807       2,595,664       2,468,993
available for sale
Securities held to        42,188          45,484          47,867          52,010          57,705
maturity
Loans held for sale       257,986         324,897         286,221         227,449         216,553
(LHFS)
Loans held for            5,592,754       5,527,963       5,650,548       5,774,753       5,857,484
investment (LHFI)
Allowance for loan       (78,738   )    (83,526   )    (84,809   )    (90,879   )    (89,518   )
losses
Net LHFI                  5,514,016       5,444,437       5,565,739       5,683,874       5,767,966
Acquired loans:
Noncovered loans          81,523          83,110          94,013          100,669         -
Covered loans             52,041          64,503          66,015          74,419          76,804
Allowance for loan
losses, acquired         (6,075    )    (4,343    )    (1,526    )    (773      )    (502      )
loans
Net acquired loans       127,489       143,270       158,502       174,315       76,302    
Net LHFI and              5,641,505       5,587,707       5,724,241       5,858,189       5,844,268
acquired loans
Premises and              154,841         155,467         156,089         156,158         142,582
equipment, net
Mortgage servicing        47,341          44,211          43,580          45,893          43,274
rights
Goodwill                  291,104         291,104         291,104         291,104         291,104
Identifiable              17,306          18,327          19,356          18,821          14,076
intangible assets
Other real estate,
excluding covered         78,189          82,475          73,673          75,742          79,053
other real estate
Covered other real        5,741           5,722           6,482           5,824           6,331
estate
FDIC
indemnification           21,774          23,979          25,309          28,260          28,348
asset
Other assets             374,412       353,857       332,657       356,678       322,837   
Total assets            $ 9,828,667    $ 9,872,159    $ 9,890,846    $ 9,931,593    $ 9,727,007 
                                                                                                                        
Deposits:
Noninterest-bearing     $ 2,254,211     $ 2,118,853     $ 2,063,261     $ 2,024,290     $ 2,033,442
Interest-bearing         5,642,306     5,685,188     5,932,596     6,066,456     5,532,921 
Total deposits            7,896,517       7,804,041       7,995,857       8,090,746       7,566,363
Fed funds purchased       288,829         408,711         297,669         254,878         604,500
and repos
Short-term                86,920          83,612          78,594          82,023          87,628
borrowings
Subordinated notes        49,871          49,863          49,855          49,847          49,839
Junior subordinated       61,856          61,856          61,856          61,856          61,856
debt securities
Other liabilities        157,305       186,061       148,520       150,723       141,784   
Total liabilities        8,541,298     8,594,144     8,632,351     8,690,073     8,511,970 
Common stock              13,506          13,496          13,496          13,494          13,364
Capital surplus           285,905         284,089         283,023         282,388         266,026
Retained earnings         984,563         973,182         958,322         944,101         932,526
Accum other
comprehensive            3,395         7,248         3,654         1,537         3,121     
income, net of tax
Total shareholders'      1,287,369     1,278,015     1,258,495     1,241,520     1,215,037 
equity
Total liabilities       $ 9,828,667    $ 9,872,159    $ 9,890,846    $ 9,931,593    $ 9,727,007 
and equity
                                                                                                                        
                                                                                                                        
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2012
($ in thousands except per share data)
(unaudited)
                                                                                                                        
                                                                                                                        
                        Quarter Ended                                                                   Year Ended
INCOME STATEMENTS       12/31/2012      9/30/2012       6/30/2012       3/31/2012       12/31/2011      12/31/2012      12/31/2011
Interest and fees       $ 74,848        $ 77,783        $ 78,046        $ 78,718        $ 82,230        $ 309,395       $ 320,804
on loans-FTE
Interest on               15,305          15,909          17,352          18,384          17,362          66,950          75,843
securities-taxable
Interest on
securities-tax            2,066           2,089           2,086           2,102           2,133           8,343           8,531
exempt-FTE
Interest on fed
funds sold and rev        9               6               5               6               10              26              30
repos
Other interest           337           339           336           330           327           1,342         1,321     
income
Total interest           92,565        96,126        97,825        99,540        102,062       386,056       406,529   
income-FTE
Interest on               5,061           5,725           6,465           7,353           7,728           24,604          36,294
deposits
Interest on fed           140             135             142             171             195             588             965
funds pch and repos
Other interest           1,346         1,358         1,359         1,414         1,418         5,477         5,777     
expense
Total interest           6,547         7,218         7,966         8,938         9,341         30,669        43,036    
expense
Net interest              86,018          88,908          89,859          90,602          92,721          355,387         363,493
income-FTE
Provision for loan        (535      )     3,358           650             3,293           6,073           6,766           29,704
losses, LHFI
Provision for loan
losses, acquired         1,945         2,105         1,672         (194      )    624           5,528         624       
loans
Net interest income      84,608        83,445        87,537        87,503        86,024        343,093       333,165   
after provision-FTE
Service charges on        12,391          13,135          12,614          12,211          13,269          50,351          51,707
deposit accounts
Insurance                 6,887           7,533           7,179           6,606           6,076           28,205          26,966
commissions
Wealth management         6,181           5,612           5,762           5,501           5,223           23,056          22,962
Bank card and other       7,978           6,924           8,179           7,364           7,112           30,445          27,474
fees
Mortgage banking,         11,331          11,150          11,184          7,295           6,038           40,960          26,812
net
Other, net               (2,007    )    512           (1,150    )    3,758         (4,928    )    1,113         3,853     
Nonint inc-excl sec       42,761          44,866          43,768          42,735          32,790          174,130         159,774
gains (losses), net
Security gains           18            (1        )    (8        )    1,050         (11       )    1,059         80        
(losses), net
Total noninterest        42,779        44,865        43,760        43,785        32,779        175,189       159,854   
income
Salaries and              49,724          47,404          46,959          46,432          45,616          190,519         178,556
employee benefits
Services and fees         12,572          11,682          11,750          10,747          11,323          46,751          43,858
Net                       5,023           5,352           4,954           4,938           5,038           20,267          20,254
occupancy-premises
Equipment expense         5,288           5,095           5,183           4,912           5,139           20,478          20,177
FDIC assessment           1,075           1,826           1,826           1,775           1,484           6,502           7,984
expense
ORE/Foreclosure           3,173           1,702           2,388           3,902           2,760           11,165          16,293
expense
Other expense            10,454        10,399        14,899        13,068        11,643        48,820        42,728    
Total noninterest        87,309        83,460        87,959        85,774        83,003        344,502       329,850   
expense
Income before
income taxes and          40,078          44,850          43,338          45,514          35,800          173,780         163,169
tax eq adj
Tax equivalent           3,699         3,629         3,411         3,658         3,663         14,397        14,550    
adjustment
Income before             36,379          41,221          39,927          41,856          32,137          159,383         148,619
income taxes
Income taxes             8,669         11,317        10,578        11,536        7,879         42,100        41,778    
Net income
available to common     $ 27,710       $ 29,904       $ 29,349       $ 30,320       $ 24,258       $ 117,283      $ 106,841   
shareholders
                                                                                                                        
Per common share
data
Earnings per share      $ 0.43         $ 0.46         $ 0.45         $ 0.47         $ 0.38         $ 1.81         $ 1.67      
- basic
                                                                                                                        
Earnings per share      $
- diluted

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