Trustmark
Annual Report 2015

Plain-text annual report

Trustmark Corporation 2015 Annual Report TABLE OF CONTENTS Letter to Shareholders Corporate Board Corporate Information Bank Board and Executives Regional and Market Executives Community Market Advisory Directors Financial Highlights 2 12 13 14 16 18 24 TO OUR SHAREHOLDERS Trustmark made significant achievements in 2015 as we continued to provide the service and solutions our customers expect, while also transforming Trustmark for the future. Despite a challenging economic environment, we continued to achieve substantial loan growth, expanding the held for investment loan portfolio by $641.9 million, or 10.0%. Our acquired loan portfolio continued to exceed expectations and made meaningful contributions to our earnings. Credit quality – a defining characteristic of the Trustmark franchise – remained solid with substantial reductions in criticized and classified loan balances as well as nonperforming assets. Our Insurance business had a record year in terms of revenue, while Mortgage Banking achieved growth in both revenue and loan-production volume of approximately 22% and 24%, respectively. Our focus on providing financial solutions with integrity and accountability has garnered numerous customer satisfaction awards. All of this was achieved in light of the complexities our industry continues to face – changes in customer preferences, evolving regulatory frameworks and protracted low interest rates. While some factors are beyond our control, we remain focused on what we can manage. We continued to realign our delivery channels, cognizant of the fact that banking has evolved into something customers do, not necessarily someplace they will go. However, what has not changed is the need for trustworthy service and solutions. To that end, banking continues to remain a people business. We would like to take this opportunity to review our notable financial accomplishments, share our direction for the future and highlight a few of the ways Trustmark is well positioned for the years to come. Financial Highlights shareholder to shareholders Trustmark’s net income in 2015 totaled $116.0 million, which represented diluted earnings per share of $1.71. This performance produced a return on average tangible equity of 11.36% and a return on average assets of 0.95%. Trustmark paid quarterly cash dividends of $0.23 per share, or $0.92 annually, in 2015. During the year, over half of Trustmark’s net income was through dividends, which have returned grown – and never decreased – throughout Trustmark’s 126-year history. This consistent, reliable source of income reflects the steady earnings and profitability of our diversified financial services businesses. Investments expanding commercial relationship managers and resources to areas with additional growth opportunities are reflected in another year of substantial growth in our held for investment loan portfolio, which at year end totaled $7.1 billion, up $641.9 million, or 10.0%, for the year. Growth was diversified by loan type as well as by geographic market, both of which reflect the continued effort of providing customers with the solutions they need, when they need them. Our customer-focused, values-driven culture has enabled us to maintain share in markets we traditionally served, while also expanding in markets with additional growth opportunities. Collectively, held for investment and acquired loans totaled $7.5 billion at December 31, 2015. realigning lending in Although not fully apparent in this protracted low interest-rate environment, our diversified and low-cost deposit base remains 2 Mobile, Alabama a source of strength for the Trustmark franchise. At year-end 2015, deposits totaled $9.6 billion, with nearly 60% of deposits in transaction accounts, including over 31% in noninterest-bearing accounts. Experience and attention to customer relationships have afforded Trustmark a position of leadership in the majority of the communities it serves. We are privileged to maintain a #1 deposit share in the Jackson metropolitan area and, across the franchise, a top-three deposit share in 62% and a top-four deposit share in 73% of markets served. Credit Quality loan balances continued Disciplined underwriting, pricing and credit management continue to be hallmarks of Trustmark. During 2015, criticized and classified reflect steady improvement, declining 15.8% and 18.6%, respectively. Levels of nonperforming assets also improved significantly throughout the year as nonperforming loans declined 30.3%, while other real estate declined 16.6%. At December 31, 2015, allocation of Trustmark’s $67.6 million allowance for loan losses represented to 210.32% of nonperforming loans, excluding impaired loans. The aforementioned credit metrics exclude acquired loans and other real estate covered by an FDIC loss-share agreement. Risk Management and Capital Strength Trustmark is committed to a comprehensive, enterprise-wide risk management approach to not only ensure regulatory compliance, but to also manage the corporation and its businesses more effectively. We have committed significant resources to the enhancement of our infrastructure and remain well positioned to support the additional regulatory requirements commensurate of a larger financial institution. In achieving our plans for continued growth, risk management is integral to both the strategic planning process as well as the process for new product and service introductions. This past year we successfully completed our inaugural regulatory capital stress-testing submission, which reflected capital ratios – in a severely adverse economic environment – above the minimum regulatory capital requirements. Our Board remains actively engaged in reviewing our risk management efforts, ensuring 4 Houston, Texas that liquidity, funding and capital levels are reflective of a strong financial institution. At December 31, 2015, total shareholders’ equity was $1.5 billion, while tangible equity totaled $1.1 billion, which represented 8.79% of tangible assets. Trustmark’s regulatory capital ratios continue to significantly exceed levels to be classified as well capitalized. We continue to review opportunities to deploy capital in a manner that enhances long-term shareholder value, including investments that support organic or acquisitive growth, as well as delivering consistent dividends or establishing share repurchase programs as appropriate. Our diverse, complementary fee-income businesses continued to achieve solid results and contributed significantly to our financial success, representing approximately 19% of total revenue excluding acquired loans in 2015. These businesses not only provide our customers a full suite of complementary products, but also serve as a foray into new markets. For example, in Birmingham, Alabama, we initially established a mortgage-loan production office and have since added a commercial real estate team. Time and time again, this approach of deliberate and measured investments has contributed to our financial success and enhanced the value of the Trustmark franchise. Revenue Generation in 2015. revenue, excluding In light of the aforementioned headwinds, our businesses continued to perform well as Trustmark’s interest total income on acquired loans, increased from the prior year to total $513.8 million Fundamentally, our banking business proved to be resilient, growing net interest income (FTE) excluding acquired loans by $12.6 million, or 3.7%, and resulted in a net interest margin of 3.46%. Banking fee income also remained stable when considering the full-year impact of the Durbin Amendment, which reduced interchange income as Trustmark became subject to debit card interchange fee standards on July 1, 2014. During the year, we expanded our commercial banking presence in various markets such as Montgomery, Alabama. We continue to believe that there are ample opportunities to expand the franchise within existing and contiguous markets to enhance revenue growth. and personal Trustmark’s Insurance business – which provides a full range of commercial risk management products – had a record year and achieved its highest level of revenue at $36.4 million, up 8.8% from the prior year. This impressive performance reflects our steadfast focus on business development as well as recent investments in various relationship managers and geographic markets. In recent years, we established new locations to serve growing metropolitan areas in Nashville and Memphis, Tennessee. Mortgage Banking posted another year of solid results, partially reflecting expansion into new markets. In 2015, revenue expanded $5.4 million, or 21.8%, to total $30.2 million, while loan production volume increased $290.0 million, or 24.3%, to total $1.5 billion. As we migrate through the current interest rate cycle, we remain excited about the opportunity to continue to invest in select markets to drive additional growth. 6 Montgomery, Alabama Our Wealth Management business – which provides comprehensive and integrated services to accumulate, preserve and transfer wealth – was impacted by volatile market conditions, which pressured both asset values and brokerage activity throughout the year. In 2015, revenue totaled $31.4 million, down 3.0% from the prior year, while assets under management totaled $12.3 billion, up 4.6% from the prior year. Our associates remained committed to serving our clients’ needs; this service has not gone unnoticed, as three of our financial advisors were recognized as top 100 advisors in the country by leading publications. Managing and Investing for the Future At Trustmark, expense management is not a one-time program, but rather part of a long-standing culture that has led to solid profitability levels year after year. We remain committed to continuous improvement and have a proven process for investing in our businesses. During 2015, noninterest expense declined $7.3 million, or 1.8%, and totaled $401.7 million for the year. This net decline does not fully reflect all of the reductions in our cost structure, since a portion of these savings were reinvested to position Trustmark for continued, profitable growth. At the same time, some complexities – increased compliance costs and decreased revenues – are by-products of being a larger financial institution. We made the deliberate decision to cross the $10 billion asset threshold, investing in our infrastructure and risk management processes to foster growth and enhance long-term shareholder value. As mentioned earlier, we continued to realign our retail delivery channels as consumer preferences have changed, ensuring minimal disruption to established relationships and striving to provide a consistent Trustmark experience, regardless of the delivery channel. Several years ago, we upgraded our ATM fleet to support same-day deposit capabilities, which resulted in a larger deposit base as well as a migration from the branch to the ATM. This past year, we introduced myTrustmark , our new consumer mobile banking service. Roll-out and adoption of this service have been successful, and we remain excited about the opportunities this platform, in addition to others, may present for our franchise. It is because of investments like these that we have been able to realign branch staffing models and reallocate resources. SM 8 myTrustmark mobile banking SM In 2015, Trustmark consolidated 8 branch offices and opened 3 new branch offices; over the past 3 years, Trustmark consolidated 27 branch offices and established 8 new branch offices. Community Involvement As members of the communities we serve, civic development is achieved not only through loan underwriting, but also through active engagement. Each year, our associates spend thousands of hours in their communities making sustainable and meaningful contributions. From leading home–buying education courses, teaching children how to save or building Habitat homes to our annual associate-inspired volunteer program, A Gift of Time, our associates have embraced Trustmark’s commitment to corporate social responsibility. This past year we continued to expand the Trustmark Financial Scholars Program – an interactive financial digital literacy program – to engage teens at 125 high schools throughout Mississippi. Trustmark also continued to operate under an “Outstanding” rating by the Office of the Comptroller of the Currency for its Community Reinvestment Act program. Trustmark’s commitment to all communities, including those in low-to-moderate income areas, is demonstrated by the following: over $100 million in home mortgages and more than $151 million in small business loans within low-to-moderate income areas, as well as approximately $200 million in home mortgages to low-to-moderate income borrowers and $68 million in community development loans. These collective efforts, in collaboration with local community leaders, have provided opportunities for affordable housing, employment and community services. This reflects our commitment to the strengthening of our communities. Strategic Focus Much has changed since Trustmark’s inception in 1889. Through the years we have grown to become a strong regional financial services organization operating in five states. While we have a rich history of accomplishments, we believe there is more to be done. Although banking continues to evolve as something customers do, not necessarily someplace they will go, it continues to remain a people business. We will focus on factors we can manage and continue to maintain and expand sustainable customer relationships. We would like to thank our associates for their dedication and commitment, our shareholders who have invested in Trustmark and its future, and our customers who look to us as their financial partners. Trustmark is “People you trust. Advice that works.” Sincerely, Daniel A. Grafton Chairman Trustmark Corporation Gerard R. Host President and Chief Executive Officer Trustmark Corporation 10 Habitat Bankers Build TRUSTMARK CORPORATION DIRECTORS Adolphus B. Baker Chairman, President and Chief Executive Officer Cal-Maine Foods, Inc. Tracy T. Conerly Partner Emeritus Carr, Riggs & Ingram, LLC Toni D. Cooley Chief Executive Officer Systems Electro Coating, LLC Daniel A. Grafton Chairman Trustmark Corporation Chairman Trustmark National Bank President L-3 Communications Vertex Aerospace (Retired) Gerard R. Host President and Chief Executive Officer Trustmark Corporation President and Chief Executive Officer Trustmark National Bank TRUSTMARK CORPORATION OFFICERS David H. Hoster II Chairman EastGroup Properties, Inc. John M. McCullouch Associate Dean Metro Jackson University of Mississippi School of Law President, AT&T Mississippi (Retired) Richard H. Puckett Chairman and Chief Executive Officer Puckett Machinery Company R. Michael Summerford President and Chief Operating Officer ChemFirst, Inc. (Former) LeRoy G. Walker, Jr. President LTM Enterprises, Inc. William G. Yates III President and Chief Executive Officer W.G. Yates & Sons Construction Company Daniel A. Grafton Chairman Gerard R. Host President and Chief Executive Officer Louis E. Greer Treasurer and Principal Financial Officer Granville Tate, Jr. Secretary F. Joseph Rein, Jr. Assistant Secretary ANNUAL MEETING OF SHAREHOLDERS Trustmark Corporation’s Annual Meeting of Shareholders will be held on Tuesday, April 26, 2016, at 2:00 p.m. Central Time in the Trustmark Conference Center at the Mississippi Sports Hall of Fame, 1152 Lakeland Drive, Jackson, Mississippi. 12 CORPORATE INFORMATION Common Stock Trustmark common stock is listed on the NASDAQ Global Select Market and is traded under the symbol TRMK. Shareholder Services Trustmark’s shareholder services are provided by American Stock Transfer & Trust Company, LLC (AST). AST will assist with: Dividend Reinvestment and Stock Purchase and Sale Trustmark is pleased to offer the Investors Choice Dividend Reinvestment & Direct Stock Purchase and Sale Plan (Plan), a voluntary plan administered by AST. Under the Plan, shareholders may reinvest dividends, purchase additional shares, sell all or part of shares owned or deposit their Trustmark stock certificates for safekeeping or sale. For more information, call (877) 476-4393 or visit AST’s website at www.amstock.com. Registration status Dividend payments Change of address Lost certificates Transfer of ownership Other inquiries or requests Financial Publications Available at No Charge Additional copies of Trustmark’s Annual Report on Form 10-K, quarterly reports and other corporate publications are available, without charge, at www trustmark.com or upon request by calling our Investor Relations Department at (601) 208-6898 or by writing to: Shareholder Requests and Account Access Shareholders may contact AST through one of the following methods: Online: Registered shareholders can view their account information through AST’s website, www.amstock.com, by clicking on Shareholder Account Access. This website provides instructions on how to gain access to shareholder account information, perform certain transactions, request forms or participate in the Investors Choice Dividend Reinvestment & Direct Stock Purchase and Sale Plan. Shareholders may also e-mail our transfer agent at info@amstock.com. Telephone: Shareholders may call our toll-free number (877) 476-4393 for assistance. Written Correspondence: Shareholders should mail written account inquiries or other requests for assistance regarding stock ownership to: Trustmark Corporation Attn: Investor Relations 248 East Capitol Street Jackson, MS 39201 Investor Inquiries Analyst and investor inquiries may be directed to: F. Joseph Rein, Jr. Senior Vice President (601) 208-6898 jrein@trustmark.com Louis E. Greer Treasurer and Principal Financial Officer (601) 208-2310 lgreer@trustmark.com Media Inquiries Media representatives seeking general information should contact: Trustmark Corporation c/o American Stock Transfer & Trust Company, LLC Operations Center 6201 15th Avenue Brooklyn, NY 11219 Melanie A. Morgan Senior Vice President (601) 208-2979 mmorgan@trustmark.com 13 TRUSTMARK NATIONAL BANK DIRECTORS Adolphus B. Baker Chairman, President and Chief Executive Officer Cal-Maine Foods, Inc. William A. Brown President and Chief Executive Officer Brown Bottling Group, Inc. James N. Compton General Manager and Chief Executive Officer South Mississippi Electric Power Association Tracy T. Conerly Partner Emeritus Carr, Riggs & Ingram, LLC Toni D. Cooley Chief Executive Officer Systems Electro Coating, LLC Daniel A. Grafton Chairman Trustmark Corporation Chairman Trustmark National Bank President L-3 Communications Vertex Aerospace (Retired) J. Clay Hays, Jr., MD President Jackson Heart Clinic, PA Gerard R. Host President and Chief Executive Officer Trustmark Corporation President and Chief Executive Officer Trustmark National Bank David H. Hoster II Chairman EastGroup Properties, Inc. Harry M. Walker President Mississippi Business and Community Relations Trustmark National Bank LeRoy G. Walker, Jr. President LTM Enterprises, Inc. William G. Yates III President and Chief Executive Officer W.G. Yates & Sons Construction Company John M. McCullouch Associate Dean Metro Jackson University of Mississippi School of Law President, AT&T Mississippi (Retired) Harris V. Morrissette President China Doll Rice & Beans, Inc. Dixie Lily Foods Richard H. Puckett Chairman and Chief Executive Officer Puckett Machinery Company R. Michael Summerford President and Chief Operating Officer ChemFirst, Inc. (Former) 14 TRUSTMARK NATIONAL BANK BOARD OFFICERS Daniel A. Grafton Chairman Gerard R. Host President and Chief Executive Officer Granville Tate, Jr. Executive Vice President, General Counsel and Secretary F. Joseph Rein, Jr. Senior Vice President and Assistant Secretary TRUSTMARK NATIONAL BANK EXECUTIVE MANAGEMENT Gerard R. Host President and Chief Executive Officer Duane A. Dewey President Corporate Banking Robert B. Harvey Executive Vice President and Chief Credit Officer Glynn Ingram Executive Vice President and Chief Information Officer Douglas H. Ralston President Wealth Management W. Arthur Stevens President Retail Banking Chester A. Wood, Jr. Executive Vice President and Chief Risk Officer C. Scott Woods President Insurance Services Louis E. Greer Executive Vice President and Chief Financial Officer James M. Outlaw, Jr. Executive Vice President and Chief Administrative Officer Granville Tate, Jr. Executive Vice President and General Counsel George C. Gunn Executive Vice President and Real Estate Banking Manager Thomas C. Owens Executive Vice President and Bank Treasurer Breck W. Tyler President Mortgage Services 15 TRUSTMARK NATIONAL BANK REGIONAL AND MARKET EXECUTIVES REGIONAL ALABAMA Michael D. Fitzhugh Regional President South Alabama Edward T. Livingston Regional President West Central Alabama Linwood McClain Regional President East Central Alabama FLORIDA John D. Sumrall Regional President Florida MISSISSIPPI Jerry M. Hall Regional President West Mississippi W. Holt McMullan Regional President South Mississippi MARKET John B. Barnett III Brewton Kevin S. Carey Mobile Paul J. England Monroeville David E. Sutley Baldwin County David C. Darby Montevallo William V. Lewis Greenville Charles E. Singleton Demopolis James A. Stewart Selma James B. Hurst Opelika Charles R. Schaeffer Eufaula R. Wade Seamon Prattville John G. Hindsman Bay County Jonathan E. Ochs Okaloosa and Walton Counties Michael E. Crandall Canton Jason A. Douglas McComb Stanley L. Foster Brookhaven Thomas Kendall Vicksburg Joe B. Madden Hazlehurst R. Andrew McGahey Greenville James A. Smith Magee Clifton Thach Greenwood J. Gregory Bennett Laurel Eric C. Brown MS Gulf Coast Charles H. Lewis IV Hattiesburg Charles T. Magee Columbia Darrell W. Temple Taylorsville Danny M. Trusty Tylertown 16 TRUSTMARK NATIONAL BANK REGIONAL AND MARKET EXECUTIVES REGIONAL MISSISSIPPI John S. Stringer Regional President Northeast Mississippi TENNESSEE Aubrey E. Henson, Jr. Regional President Memphis Region TEXAS William S. Bridges Regional President Houston MARKET David G. Anderson Meridian Victor L. Marlar Corinth Charles R. Russell Tupelo Larry A. Waggoner Carthage Bart C. Wise Columbus John David Douglas Fayette County Leonard Hein Southeast Houston Christine Petrilla North Houston Travis Van Horn Southwest Houston 17 TRUSTMARK NATIONAL BANK COMMUNITY MARKET ADVISORY DIRECTORS ALABAMA Centreville Brewton John B. Barnett III President Trustmark National Bank Broox G. Garrett Attorney Thompson, Garrett & Hines Mark Manning Administrator West Gate Village Nursing Home Cosby Martin Owner Marco Land & Petroleum Thomas E. McMillan, Jr. Managing Member Longleaf Energy McGowin Miller President Miller Relocation Services Steve Nelson Banker (Retired) Phillip L. Parker Director of Pharmacy D. W. McMillan Memorial Hospital Stephanie Walker Preschool Director St. Stephen’s Episcopal Church John Downs Business Office Manager Alabama Power Company Steve Edmonds President Windwood Management Group Mike Hobson Attorney Hobson Law Firm Stephanie Kemmer Probate Judge Bibb County Bobby Leach Business Manager Cahaba Companies Debbie Martin Funeral Director/Office Administrator Rocko Funeral Home J. W. Oakley Recruiting Coordinator School of Communications University of Alabama Demopolis Charles E. Singleton President Trustmark National Bank Mem Stewart Webb Owner Webb Realty, Inc. Thomas Alvin Williams Partner Morgan’s Ice Dan E. Wilson Owner Colony Office Products Eufaula Deltonya Warren Director of Curriculum Eufaula City Schools Doug Winkleblack Southern Regional Manager Alabama Interforest Corp Greenville Barry E. Boan President Boan Contracting Ken Chesser Owner KC Land & Cattle Company Robert M. Dixon, Jr. Chief Executive Officer M.C. Dixon Lumber Company, Inc. P. Richard Hartley Partner Hartley & Hickman Attorneys At Law Mo Erkins U.S. Military (Retired) William V. Lewis President Trustmark National Bank Mary Foy Kirkland President Young Johnston and Associates, Inc. Dexter McLendon Mayor City of Greenville Charles R. Schaeffer President Trustmark National Bank Allin Whittle Butler County Commissioner Warren J. Williamson Attorney Williamson & Williamson (Retired) Gary B. Butler President Butler & Company, Inc. Joel Smith, Jr. Attorney Williams, Potthoff, Williams & Smith Johnnie Anderson Shows II Owner Jaber, Inc. Robert L. Taylor Owner Bobby Taylor Enterprises 18 TRUSTMARK NATIONAL BANK COMMUNITY MARKET ADVISORY DIRECTORS Mobile/Baldwin County Sumner G. Adams Vice President Cash Management/Finance Norton Lilly International Frank McKinley Bell III President Marine Rigging, Inc. Kevin S. Carey President - Mobile Trustmark National Bank Jacob L. Cunningham Manager Summit Industries, LLC David C. DeLaney President First Small Business Investment Co. of Alabama David A. Dye Chairman and Chief Growth Officer Computer Programs and Systems, Inc. (CPSI) Thomas Gross Chief Financial Officer Battle Plan Capital, LLC Truland Homes, LLC Clifton C. Inge, Jr. Chief Executive Officer IPC Industries, Inc. Frank J. Lott III President Heritage Homes Harris V. Morrissette President China Doll Rice & Beans, Inc. Dixie Lily Foods Sloan Fountain Vice President/Mgr. Vanity Fair Mills, Inc. (Retired) Alfred M. Newmann, Jr., MD Premier Medical ENT West Ed Lee, DMD Dentist Henry F. O’Connor III Attorney Jones Walker E. Luckett Robinson II Vice President - Finance Overseas Hardwoods Company, Inc. (OHC) David Sutley President - Baldwin County Trustmark National Bank Monroeville Pete Black Alabama Business Development Mgr. Parsons & Whittemore John T. Lee Auto Dealer Lee Motor Company (Retired) Alex Roberts Photographer Alex Roberts Photography (Retired) Sandy Smith Director Monroeville Area Chamber of Commerce Dr. Reginald L. Sykes President Alabama Southern Community College Haniel Croft President BankTrust (Retired) Paul J. England President Trustmark National Bank John E. Estes, Jr. Vice President J.E. Estes Wood Co., Inc. Montevallo David C. Darby President Trustmark National Bank Philip C. Hubbard Veterinarian Countryside Animal Hospital Karen Kelly Human Resources McWane, Inc. John C. Kirby President Trustmark National Bank (Retired) Leroy Lucas, Jr. Owner Lelco, Inc. John W. Stewart III President University of Montevallo Thomas Walker Executive Director American Village Montgomery Jim W. Benefield, DVM Veterinarian Carmichael Road Animal Clinic Thomas H. Cawthon, MD Otolaryngologist Montgomery Otolaryngology John E. Hall, Jr. Owner/Broker John Hall & Company Phyllis Ingram Partner/Shareholder Carr, Riggs & Ingram, LLC 19 TRUSTMARK NATIONAL BANK COMMUNITY MARKET ADVISORY DIRECTORS Leonard N. Math Partner/Shareholder Chambless, Math & Carr, PC Attorneys at Law William E. Wallace Chief Executive Officer Goodwyn, Mills and Cawood Prattville John Boutwell Owner Boutwell Farms J. N. Buckner Partner Buckner & Cook, LLC Keith Gamble Owner FirstGuard, LLC Larry Liveoak Owner The Liveoak Agency, Inc. Selma Tommy Atchison Attorney Pitts, Pitts & Williams John Chisolm President Trustmark National Bank (Retired) Denson Henry Vice President Henry Brick Co. S. Kirk Johnson Owner Oxford Manufacturing James A. Stewart President Trustmark National Bank William P. Swift III Owner Swift Drug Co. David McDowell Partner McDowell, Faulk & McDowell, LLC Abigail Tucker, DMD Owner/Dentist Tucker Family Dentistry R. Wade Seamon President Trustmark National Bank Ira M. Wagoner Accountant Edwards and Wilkinson, PC Richard Williams Owner/Partner Williams Hotels Cecil Mack Daugherty Chief of Security Russell Lands James R. Moody IV Accountant Jinks & Moody, P.A. Gary Fuller Owner Fuller Warehouse & Gin, Inc. Floyd Skinner President Skinner Tax Consulting, Inc. Charles Frank Keith Owner Johnson Furniture David Lawrence Vice President/Owner Tallassee Super Foods, Inc. Hollis Mann Store Manager Tallassee Super Foods, Inc. Jennie Rhinehart Chief Executive Officer Community Hospital, Inc. FLORIDA Angus G. Andrews Real Estate Investor/Developer Tracy T. Conerly Partner Emeritus Carr, Riggs & Ingram, LLC Gerald R. Dunkle President Sundial Developers, Inc. David Spencer President Glass Center, Inc. John D. Sumrall Regional President Florida Trustmark National Bank Jay N. Trumbull Owner Culligan Water Services, Inc. Dennis A. Wallace Member Walton County School Board (Retired) MISSISSIPPI Brookhaven Robert O. Allen Partner Allen, Allen, Breeland & Allen, PLLC Cecil Estess Corporate Officer Dickerson & Bowen Robin Tyler Faust, CFSP Funeral Director Tyler Funeral Home, Inc. Tallassee Ben Atkinson Owner Ben Atkinson Motors, Inc. Robert C. McLendon Commercial Insurance Fisher Brown Bottrell Insurance, Inc. 20 TRUSTMARK NATIONAL BANK COMMUNITY MARKET ADVISORY DIRECTORS Stanley L. Foster President Trustmark National Bank Kenneth W. Goza Program Coodinator Copiah Lincoln Community College Arlustra Henderson, Jr. Chief of Police City of Brookhaven (Retired) J. Spencer Mooney, MD Physician/Owner Quail Ridge Enterprise, Inc. J. Kim Sessums, MD Physician Brookhaven OB-GYN Associates Charlie Lee Smith Chief Executive Officer Southern Diversified Technologies, Inc. A. Lavelle Sullivan Co-Owner Sullivan Ford-Lincoln Carthage Carl Blocker Sales Greco Electrical Contractor Lee Carson President N.L. Carson Construction, Inc. H. Frank Rhea President Trustmark National Bank (Retired) Susan Triplett Administrator Northeast Region Sta-Home Health Larry A. Waggoner President Trustmark National Bank Jason Wilcox President/Owner Wilcox Funeral Home Steve Wilkerson Owner Steve’s on the Square Bart C. Wise President Trustmark National Bank Corinth Victor L. Marlar President Trustmark National Bank William J. Napier III Vice President Corinth Mill Supply Ricky R. Stockton Hotel Manager S.S.S.S. & P., Inc. R. Andrew McGahey President Trustmark National Bank Harley Metcalfe III Investor (Retired) Greenwood H. Don Brock, Jr. Partner Whittington Brock & Swayze Alexander John Malouf III Co-Owner The John Richard Collection, Inc. Kenneth W. Williams President Corinth Coca-Cola Bottling Works Refreshments, Inc. R. A. Norris President S&N Airflow, Inc. Columbus Greenville Mark Alexander Chairman Dynahealth, Inc. William Key Blair, Jr. Vice President Columbus Marble Works Delynn W. Burkhalter President Burkhalter Rigging, Inc. W. R. Phillips IV Vice President Phillips Contracting Company, Inc. William C. Callaway, Jr. President Trustmark National Bank (Retired) Paul D. Dees Partner Greenland Planting Company Stephen R. Jernigan Owner River City Rehabilitation Clifton Thach President Trustmark National Bank Robert L. Upchurch President Upchurch Plumbing, Inc. Hattiesburg Thomas M. Duff Managing Partner Southern Tire Mart, LLC John M. Fitzpatrick III, MD President and Physician Hattiesburg Clinic, PA 21 TRUSTMARK NATIONAL BANK COMMUNITY MARKET ADVISORY DIRECTORS William H. Gullung III, MD Dermatologist Hattiesburg Clinic, PA Linda Kuykendall Vice President Commercial Business Interiors, Inc. Charles H. Lewis IV President Trustmark National Bank W. A. Payne III President Camellia Home Health Robert O. Tatum, Jr. Principal/Owner CR Properties, LLC John C. Pyron Co-Owner Copiah Forest Products, Inc. Copiah Lumber Company, Inc. Richard L. Yoder, Jr. Attorney Gilchrist, Sumrall, Yoder & Boone, PLLC A. Wendell Stringer President Stringer Family Funeral Services Laurel J. Gregory Bennett President Trustmark National Bank Louis S. Crumbley President Crumbley Paper & Food Service Co., Inc. Magee Jacqueline P. Gordy Secretary-Treasurer Pace Oil Company Charles Pruitt III, MD Physician Magee Medical and Surgical Clinic, PLLC James A. Smith President Trustmark National Bank Jason A. Douglas President Trustmark National Bank John Dale Dumas, DMD John Dale Dumas PA Michael Faust CPA Faust & Associates Craig Haskins Vice President Commercial Developers, Inc. Eric S. Lewis, MD Surgeon Southwest Mississippi Oral & Maxillofacial Surgery, Inc. Robert R. Vardaman Owner and President Vardaman Buick-Honda, Inc. Hazlehurst Linda R. Gavin Associate Executive Director of Marketing South Central Regional Medical Center James H. Stuard, DMD James Stuard Family Dentistry McComb John Andrew Watson, DO Southwest Mississippi Regional Medical Center Meridian Olen C. Bryant, Jr. Attorney Bryant & Rutland, PLLC Joe B. Madden President Trustmark National Bank Jerome Harless President Flarestack, Inc. Victor Jones, Jr. President Jones Sales and Service, Inc. Fred J. McDonnell, MD Physician Copiah Medical Associates Rhes V. Low, Sr. Investor Low Company, LLC Pat H. Brumfield, Jr. President Brumfield Oil Company, Inc. Brad Clark Vice President Clark Construction Co., Inc. of Mississippi David B. Craddock President Craddock Oil Company David G. Anderson President Trustmark National Bank Jay L. Davidson President and Director Southern Pipe & Supply, Inc. Mark L. Denney Owner Meridian Order Buyers, Inc. (Former) 22 TRUSTMARK NATIONAL BANK COMMUNITY MARKET ADVISORY DIRECTORS Tommy E. Dulaney President and Chief Executive Officer Structural Steel Services, Inc. Billy W. Estes President Trustmark National Bank (Retired) Larkin Kennedy Executive Vice President/Administrator Rush Foundation Hospital John M. Mitchell, Jr. Owner Mitchell Distributing Company, M-Prints and Mitchell Signs C. D. Smith, Jr. Regional Manager AT&T Mississippi Tupelo V. M. Cleveland President Tupelo Furniture Market Johnny L. Crane II President F. L. Crane & Sons, Inc. Carlyle S. Harris, Jr. General Partner Harris Holdings LP D. Colin Maloney President Century Construction and Realty, Inc. Adam Mitchell Vice President Mitchell Distributing Company Danny M. Trusty President Trustmark National Bank TENNESSEE Fayette County Charles E. Dacus, Jr. Farmer Dacus Farms John David Douglas President Trustmark National Bank Paul S. Harris General Manager Chickasaw Electric (Retired) Aubrey E. Henson, Jr. Regional President Memphis Region Trustmark National Bank John S. Wilder, Jr. Treasurer and General Manager Long Town Gin & Supply Elizabeth J. Randall President Randall Commercial Group, LLC Charles R. Russell President Trustmark National Bank David S. Talton, MD President Cardiothoracic Surgery Clinic of North Mississippi Tylertown Timothy O. Jones Assistant District Attorney Office of the D.A., 14th Circuit Court District Steven L. Kennedy Owner Tylertown Sports Center Rob Loper, DVM Veterinarian Tylertown Animal Hospital I. Conrad Mord II Attorney Mord Law Firm J. Keith Speed, DO Doctor of Osteopathy William Carey University Vicksburg Ronald L. Andrews, Sr. President Vicksburg Insurance Agency, Inc. Robert R. Bailess Partner Wheeless, Shappley, Bailess & Rector, LLP John Fredric Farrell President Falco Chemical, Inc. Vice President and Treasurer PolyVulc USA, Inc. Member Power Transport Services, LLC W. Briggs Hopson III Partner Teller, Hassell & Hopson, LLP Donald Jarratt Managing Partner Jarratt Properties, LLC Thomas Kendall President Trustmark National Bank 23 TRUSTMARK CORPORATION FINANCIAL HIGHLIGHTS ($ in thousands except per share data) Net Income Per Share Data Basic earnings per share Diluted earnings per share Dividends Book value Tangible book value Performance Ratios Return on average tangible equity Return on average equity Return on average assets Capital Ratios Total equity/total assets Tangible equity/tangible assets Tier 1 leverage ratio Tier 1 risk-based capital ratio Total risk-based capital ratio Year-end Balance Sheet Data Securities Loans Total assets Total deposits Total borrowings Total shareholders’ equity $ $ $ 2014 123,562 1.83 1.83 0. 92 21.04 15.13 12.97 % 8.83 % 1.03 % 11.59 % 8.62 % 9.63 % 13.47 % 14.56 % 3,545,252 7,131,074 12,250,633 9,698,358 981,665 1,419,940 $ $ $ 2015 116,038 1.72 1.71 0. 92 21.80 15.98 11.36 % 7.94 % 0.95 % 11.62 % 8.79 % 10.03 % 13.21 % 14.07 % 3,533,240 7,641,985 12,678,896 9,588,230 1,466,639 1,473,057 24 VISION Our vision is to be a premier financial services company in our marketplace. MISSION Our mission is to achieve outstanding customer satisfaction by providing banking, wealth management and insurance solutions through superior sales and service, utilizing excellent people, teamwork and diversity, while meeting our corporate financial goals. 

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