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EurazeoOur vision is to be a premier financial services company in our marketplace. 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. Integrity • Service • Accountability • Relationships • Solutions Table of Contents Letter to Shareholders Community Engagement Board of Directors Corporate Information Executive Management Regional and Market Executives Community Market Advisory Directors Financial Highlights 2 12 14 16 18 19 20 26 To our shareholders 2018 was another year of significant achievement for Trustmark. We continued to build upon and expand customer relationships as reflected by growth in our banking, mortgage banking, wealth management and insurance businesses. Net income and diluted earnings per share reached record levels in 2018. We experienced continued growth in loans while credit quality remained strong, an enduring hallmark of Trustmark. Deposits also experienced solid growth during the year. Trustmark continued to be in an enviable position as reflected in our top-four deposit market share position in nearly 70% of the counties we serve across our five-state franchise. We are cognizant of the fact that banking is something customers do, not necessarily someplace they will go. We have adapted to this changing realigning delivery channels, environment by repositioning product offerings, reducing the size of new banking centers and providing technology that enables customers to conduct business anywhere, whenever and however they choose. What has not changed is the need for trustworthy service and solutions. Banking remains a people business. Our focus on providing financial solutions for customers has garnered numerous customer satisfaction awards, including recognition from the J.D. Power 2018 U.S. Retail Banking Satisfaction Study, in which Trustmark was recognized as having the “Highest Customer Satisfaction with Retail Banking in the South Central Region.” We have received this award twice in the last three years. This recognition serves as validation of the way in which we do business and is a reflection of our core values: Integrity, Service, Accountability, Relationships and Solutions. We would like to take this opportunity to review our notable accomplishments, share our direction for the future and highlight a few of the ways in which Trustmark serves as a trusted financial advisor in assisting customers to achieve their financial objectives. Financial Highlights Trustmark’s net income in 2018 totaled $149.6 million, which represented diluted earnings per share (EPS) of $2.21, the highest level in our history. Diluted EPS in 2018 increased 41.7% from reported diluted EPS in 2017 and 15.1% when compared to diluted EPS excluding non-routine items. Trustmark’s net income in 2018 produced a return on average tangible equity of 12.86% and a return on average assets of 1.11%. Trustmark paid quarterly cash dividends to Vanguard Soap | Memphis, TN “With Trustmark we are not dealing with a bureaucracy, we are dealing with real people, committed to our relationship, who are very customer and service oriented. I learned quickly that with Trustmark we’re not just a number in their latest quarterly report.” - Jeff Breazeale, Chairman and CEO 2 shareholders of $0.23 per share, or $0.92 annually, in 2018. During the year, approximately 42% of Trustmark’s net income was returned to shareholders through dividends, which have grown – and never decreased – throughout Additionally, history. Trustmark’s Trustmark repurchased approximately $62.4 million, or 2.0 million shares of its common stock, in 2018. Through dividends repurchases, approximately 84% of Trustmark’s net income was returned to shareholders in 2018. share and Loans held for investment totaled $8.8 billion at year-end 2018, an increase of $265.9 million, or 3.1%, from the prior year. Loan growth moderated relative to the last few years due largely to earlier than expected pay downs and payoffs, which is attributable in part to increased customer liquidity provided by the Tax Cuts and Jobs Act of 2017 (Tax Reform Act). Loan production pipelines remained robust and loan growth remained well diversified by 2 loan type and geographic market during 2018. Credit Quality As part of our balance sheet optimization program, Trustmark discontinued reinvestment of maturing investment securities in 2018, which resulted in a decline of $573.7 million in the investment securities portfolio. As a result, we improved interest rate risk exposure and the mix of earning assets as well as better positioned the net interest margin for a rising interest rate environment. including 26% Our diversified, low-cost deposit base remains a source of strength of the Trustmark franchise. At year-end 2018, deposits totaled $11.4 billion, an increase of $786.9 million, or 7.4%, from the prior year. Approximately 58% of deposits are in checking accounts, in noninterest-bearing accounts. We know our customers have many financial institutions from which to choose and are appreciative they continue to choose Trustmark as their trusted financial partner. Experience and attention to customer relationships have afforded Trustmark a position of leadership in the majority of the communities we serve. We are privileged to continue to have a #1 deposit market share ranking in not only the Jackson metropolitan area but also the state of Mississippi as well as significant market positions in the vast majority of markets served. Disciplined underwriting, pricing and credit management continue to be defining hallmarks of Trustmark. Nonperforming assets declined 13.1% in 2018, reflecting reductions in nonaccrual loans and other real estate of 8.8% and 19.8%, respectively. Net charge-offs to average loans were 19 basis points in 2018, well below historical long term averages. At December 31, 2018, allocation of Trustmark’s $79.3 million allowance for loan losses represented 351% of nonperforming loans, excluding specifically reviewed impaired loans. The foregoing credit metrics exclude acquired loans. Risk Management and Capital Strength Trustmark remains committed to a comprehensive, enterprise-wide risk management approach to not only ensure regulatory compliance, but to also manage the Corporation and its businesses most effectively. In implementing our plans for continued growth, risk management is at the forefront of the strategic planning process as well as the process for introducing new products and services. Our Board remains actively engaged in reviewing risk management and Tougaloo College | Jackson, MS “Trustmark was one of the first institutions in the entire state of Mississippi to support Tougaloo, and I’m proud of the partnership we formed. It’s helped us transform the lives of students as well as the state of Mississippi. ” - Delores Bolden Stamps, Ph.D., Vice President, Office of Institutional Advancement 4 capital ensuring that our liquidity, funding and capital levels are reflective of a strong financial institution. Trustmark’s position remained solid, reflecting the consistent profitability of our diversified financial services businesses. At December 31, 2018, total shareholders’ equity was $1.6 billion, while tangible common totaled $1.2 billion, which equity represented 9.31% of tangible assets. Trustmark’s regulatory capital ratios continue to significantly exceed levels to be categorized as well capitalized. We continually review opportunities to deploy capital in a manner that enhances long-term shareholder value, including investments that support organic or acquisitive growth, delivering consistent dividends and utilizing share repurchase programs, as appropriate. Revenue Generation Trustmark derives revenue through net interest income 4 generated by our banking business as well as through noninterest income provided by our banking, insurance, wealth management and mortgage banking businesses. Our total revenue reached a record level of $604.3 million in 2018, an increase of $12.0 million, or 2.0%, from the prior year. Excluding interest and fees on acquired loans, revenue totaled $587.1 million, an increase of $19.4 million, or 3.4%, from the prior year. Net interest income (FTE), excluding acquired loans, totaled $415.1 million in 2018, an increase of $12.2 million, or 3.0%, from the prior year and resulted in a net interest margin, excluding acquired loans, of 3.46%. Our diverse fee-income businesses continued to produce solid results and contributed significantly to our financial success; noninterest income represented approximately 32% of total revenue, excluding acquired loans, in 2018. Profitable revenue generation remains a central focus of Trustmark. Our mortgage banking business continued to produce solid fee income growth. In 2018, revenue expanded $4.8 million, or 16.0%, to total $34.7 million while loan production increased 3.4% to total $1.4 billion. Retail mortgage loan originations increased to nearly 70% of total loan production. Introduction of new technology applications and workflow redesign increased profitability. Also, we contributed to introduced a number of affordable housing initiatives designed to make home ownership more achievable and strengthen the communities in which we operate. Our team of Community Lending Specialists expanded significantly during the year, and we are beginning to see positive results from this important program. Fisher Brown Bottrell, our insurance agency subsidiary, had yet another record year in 2018 as total revenue increased 6.0% to $40.5 million. This performance reflects our dedication to unsurpassed customer service and our commitment to provide advice and appropriate solutions to meet our clients’ commercial and personal risk management needs. Fisher Brown Bottrell, which ranks among the top 100 retail insurance agencies in the country, was again recognized as a Best Practices Agency by Independent Insurance Agents and Brokers of America in 2018. Our wealth management business – which provides comprehensive and integrated services to accumulate, preserve and transfer wealth – produced revenue of $30.3 million in 2018. Assets under management, administration and brokerage assets totaled $12.3 billion at year-end 2018. During the year, we rebranded our Wealth Management business to Trustmark Tailored Wealth to reflect a more customizable approach based on our clients’ Mississippi Sports Medicine and Orthopaedic Center | Jackson, MS “A large part of my role as CEO is keeping us an independent company by avoiding a buyout from a hospital or health system. Trustmark understands that and has always provided us with the best financial value to help us do so. They are built on relationship people.” - Glen Silverman, CEO 6 individual needs. This rebranding followed our successful conversion to the SEI Wealth Management Platform as well as a refinement of our Retirement Plan Services business model. Collectively, these changes provide state-of-the-art products and services for our customers and will ensure our competitiveness in the marketplace. Expense Management Trustmark committed to is continuous process improvement and investments to promote profitable growth. We will continue to leverage our technology investments so as to provide value for our customers while increasing our productivity and efficiency. In 2018, noninterest expense totaled $415.4 million. Excluding other real estate expense, amortization of intangibles, and non-routine charges, operating expense in 2018 totaled $408.2 million, an increase of 2.2% compared to comparable levels in 2017. 6 Customer preferences continue to evolve due to ever-changing technology. Trustmark has made significant advances in its digital banking platform. As customers migrate from branch-based transactions to digital channels, we have responded by realigning our branch network. During the year, we consolidated four branch offices in areas with limited growth prospects and opened two new offices in markets with attractive growth opportunities. We will continue to realign the branch network to reflect changing customer preferences, reduce expenses and improve the customer experience. We are committed to investments that promote profitable revenue growth as well as reengineering and efficiency opportunities that enhance long-term shareholder value. businesses are now operating on state-of-the-art platforms. Our digital banking platform is also world- class. In 2018, we began implementation of new core systems for loans, deposits and customer information. These advancements will be phased in over several years and will positively change the way we do business by expanding capabilities and providing additional efficiencies in our banking business. We are also testing customer management solutions in our mortgage business that have the potential to be expanded across the company. Additionally, we have continued investments in data analytics to aid in our sales and other processes. All of these investments are designed to provide our associates with the best tools available to serve our customers. Investing for the Future Leadership Trustmark has a systematic process for adopting best-in-class technology solutions across the company. In recent years, new systems have been implemented in our accounting and finance areas as well as our human resources area. We have reengineered workflow processes to take full advantage of automation and technology solutions. Our mortgage banking, insurance and tailored wealth There were notable changes to our Executive Team in 2018. Duane A. Dewey was named Chief Operating Officer and now oversees all revenue-related functions of the Company. Duane has played a key role during his 15-year tenure at Trustmark, including having served as president of Corporate Banking since 2008. David C. Kennedy joined the Executive Team as our Chief Information Officer. David’s accomplishments Dominick’s Seafood | Bayou La Batre, AL “Trustmark is focused on partnership and relationship. They aren’t a vendor. They’re a true, long-term partner. They have had a lot of trust in me over the years, and I feel like I’m part of a family as a customer, not just a stamp on the wall.” - Dominick Ficarino, Owner and President 8 in cybersecurity and proven track record in developing and leveraging technology investments over his 20+ year career will serve us well as we prepare for conversion of our core operating systems. We greatly value the leadership, counsel and guidance provided by the Board of Directors of Trustmark Corporation. Our directors are engaged in the governance and strategic direction of support management’s efforts to realize the full potential of the Trustmark franchise. During the year, John M. McCullouch retired from the Trustmark Board after 13 years of dedicated service. We have greatly appreciated John’s contributions and will miss his advice and counsel. the organization and Community Involvement Community engagement continues to be a strength of Trustmark. Last year, we invested more than $3 million in contributions and sponsorships to local organizations in an effort 8 to strengthen the communities in which we live and work. We continued our focus on financial literacy, working with 100 high schools educating over 9,000 students on financial matters in addition to our 30+ Adopt-A-Schools. Our associates provided thousands of hours in volunteer support, including participation in Trustmark’s annual A Gift of Time initiative. Within low-to-moderate income areas, Trustmark provided $102 million in home mortgage loans and more than $128 million in small business loans in 2018. Additionally, Trustmark provided low-to-moderate income borrowers more than $235 million in home mortgage loans and approximately $61 million in community development loans. Our collaborative work with community service providers, developers, realtors, housing advocates and others resulted in more than $20 million in investments that provide affordable housing, employment and community services for those with low-to-moderate incomes. These efforts are a reflection of our commitment to strengthen our communities. In October, Hurricane Michael hit the Florida Panhandle as a Category 4 hurricane that caused extensive property and infrastructure damage, which was most severe in the Bay County-Panama City-Lynn Haven area. The Trustmark team rallied to assist associates, customers and the broader communities affected by the storm. Associates came from across our system to assist and open branches while fellow associates affected by the storm could focus on getting back on their feet. Thanks to the efforts of many, Trustmark was among the first businesses to reopen. Fisher Brown Bottrell associates reached out to customers to assess damage, initiate insurance claims and provide needed support to begin the rebuilding process. We are extremely pleased with the dedication and teamwork displayed by our Trustmark family during this challenging time. Strategic Focus We understand and respect the sources of our continuing success and remain steadfast in our commitment to the customers, associates, shareholders and communities we have the privilege of serving. While we have a rich history of accomplishments, we believe the best is yet to come. Trustmark is well-positioned to pursue opportunities for profitable growth, successfully navigate the evolving competitive landscape and, most importantly, assist our customers achieve their financial goals. In 2019, we will continue Champions Hydro-Lawn | Houston, TX “We don’t want to deal with the big banks, because I believe you’ll get lost in the system. To deal with a regional bank, you need them to have the financing and wealth to back it up. And Trustmark falls into that category. They’ve been very important for our growth.” - Lou Triche, Owner and Founder 10 to broaden customer relationships, refine the delivery of our products and services, improve operational efficiency, effectively manage risk and create value for our customers and shareholders. We appreciate your support and look forward to providing banking and financial solutions to meet your financial needs. Trustmark is “People you trust. Advice that works.” Sincerely, R. Michael Summerford Chairman Trustmark Corporation Gerard R. Host President and Chief Executive Officer Trustmark Corporation 9,237 students 31,636 44,586 hours platform modules One of the greatest contributions we can make to our communities is to provide financial education opportunities, tools and resources. From financial boot camps to grade school presentations, we staff and fund a variety of educational endeavors. One example is our Trustmark Financial Scholars program, an interactive financial digital literacy program that engaged 9,237 students in 2018 who completed 44,586 platform modules, representing 31,636 hours of technology-based media learning focused on financial topics. 12 13 Engagement Community engagement continued to be a foundational strength of Trustmark in 2018. 15,000 Collectively, our associates devoted over 15,000 hours of volunteer time to make a sustainable and meaningful difference in our markets. Our charitable giving exceeded $3 million, providing support for programs and services benefiting the arts, education, youth, health and social services, and community-based organizations. 3million Over 647 service projects were completed by associates throughout our footprint supporting community organizations in fulfilling their respective missions. 647 1,917 associates participated in our annual employee-driven benefit day for the community. 1,917 Our associates served on boards for more than 444 community and non-profit organizations.444 13 Trustmark Corporation and Trustmark National Bank Board of Directors Adolphus B. Baker Chairman and Chief Executive Officer Cal-Maine Foods, Inc. Toni D. Cooley Chief Executive Officer Systems Electro Coating William A. Brown President and Chief Executive Officer Brown Bottling Group, Inc. J. Clay Hays, Jr., M.D. Cardiologist, Partner and President Jackson Heart Clinic, PA James N. Compton President and Chief Executive Officer Cooperative Energy Gerard R. Host President and Chief Executive Officer Trustmark Corporation and Trustmark National Bank Tracy T. Conerly Partner Emeritus Carr, Riggs & Ingram, LLC Harris V. Morrissette President China Doll Rice & Beans, Inc. / Dixie Lily Foods 14 15 Richard H. Puckett Chairman and Chief Executive Officer Puckett Machinery Company LeRoy G. Walker, Jr. President LTM Enterprises, Inc. (Retired) William G. Yates III President and Chief Executive Officer W.G. Yates & Sons Construction Company R. Michael Summerford Chairman Trustmark Corporation and Trustmark National Bank Chief Operating Officer ChemFirst, Inc. (Former) Harry M. Walker President Mississippi Business and Community Relations Trustmark National Bank (Retired) 15 Corporate Information Common Stock Trustmark common stock is listed on the NASDAQ Global Select Market and is traded under the symbol TRMK. Shareholder Requests and Account Access Shareholders may contact AST through one of the following methods: can view shareholders Online: their Registered account information through AST’s website at astfinancial.com by clicking on Login and selecting Shareholder Central. This website provides instructions on how to gain access to shareholder account information, perform certain transactions, request forms or participate in the Plan. Shareholders may also e-mail our transfer agent at help@astfinancial.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 c/o American Stock Transfer & Trust Company, LLC Operations Center 6201 15th Avenue Brooklyn, NY 11219 Shareholder Services Trustmark’s shareholder services are provided by American Stock Transfer & Trust Company, LLC (AST). AST will assist with: Registration status Dividend payments Change of address Lost certificates Transfer of ownership Other inquiries or requests 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 astfinancial.com. Financial Publications Available at No Charge Additional copies of Trustmark’s Annual Report on Form 10-K, quarterly reports and other corporate publications at trustmark.com or upon request by calling our Investor Relations Department at (601) 208-6898 or by writing to: available, without charge, are Trustmark Corporation Attn: Investor Relations 248 East Capitol Street Jackson, MS 39201 16 Investor Inquiries Analyst and investor inquiries may be directed to: Media Inquiries Media representatives seeking general information should contact: Louis E. Greer Treasurer and Principal Financial Officer (601) 208-2310 lgreer@trustmark.com F. Joseph Rein, Jr. Senior Vice President (601) 208-6898 jrein@trustmark.com Melanie A. Morgan Senior Vice President (601) 208-2979 mmorgan@trustmark.com Annual Meeting of Shareholders Trustmark Corporation’s Annual Meeting of Shareholders will be held on Tuesday, April 23, 2019, at 1:00 p.m. Central Time at Trustmark’s Corporate Office located at 248 East Capitol Street, Jackson, Mississippi. Trustmark Corporation Officers R. Michael Summerford Chairman Granville Tate, Jr. Secretary Gerard R. Host President and Chief Executive Officer F. Joseph Rein, Jr. Assistant Secretary Louis E. Greer Treasurer and Principal Financial Officer 16 17 Trustmark National Bank Executive Management Executive Gerard R. Host President and Chief Executive Officer James M. Outlaw, Jr. Executive Vice President and Chief Administrative Officer Duane A. Dewey Chief Operating Officer Thomas C. Owens Executive Vice President and Bank Treasurer Monica A. Day Executive Vice President and Real Estate Banking Manager W. Arthur Stevens President – Retail Banking Louis E. Greer Executive Vice President and Chief Financial Officer Granville Tate, Jr. Executive Vice President, Chief Risk Officer and General Counsel Robert B. Harvey Executive Vice President and Chief Credit Officer Breck W. Tyler President – Mortgage Services David C. Kennedy Executive Vice President and Chief Information Officer C. Scott Woods President – Insurance and Wealth Management 18 19 Trustmark National Bank Regional and Market Executives Regional Presidents Region William S. Bridges Michael D. Fitzhugh Aubrey E. Henson, Jr. Charles H. Lewis IV W. Mark Lewis Linwood O. McClain John D. Sumrall Market Presidents Alabama Kevin S. Carey, Mobile Dave Crenshaw, Greenville David C. Darby, Montevallo Paul J. England, Monroeville Steven D. Erickson, Homewood Tommy B. Faust, Jr., Baldwin County Deborah C. Hardee, Brewton Robert F. Harwell, Jr., Huntsville/Athens James B. Hurst, Opelika William V. Lewis, Tuscaloosa Charles R. Schaeffer, Eufaula R. Wade Seamon, Prattville James A. Stewart, Centreville/Selma Loyd Todd Tally, Demopolis Florida William C. Hart, Pensacola Stephen J. Holt, Bay County Jonathan E. Ochs, Okaloosa and Walton Counties Houston South Alabama/Mississippi Gulf Coast Memphis/North Mississippi South Mississippi Central Mississippi Central Alabama Florida Mississippi Benjamin W. Aldridge, Hinds County David G. (“Archie”) Anderson, Meridian J. Gregory Bennett, Laurel Bernard Bridges, Jackson Eric C. Brown, Mississippi Gulf Coast Michael E. Crandall, Canton James B. Daly, Madison County Jason A. Douglas, McComb Stanley L. Foster, Brookhaven Brandon S. Hubbard, Magee Thomas Kendall, Vicksburg Charlie Scott King, Tylertown Joe B. Madden, Hazlehurst Charles T. Magee, Columbia Victor L. Marlar, Corinth R. Andrew McGahey, Greenville Charles R. Russell, Tupelo Darrell W. Temple, Taylorsville J. Clifton Thach, Greenwood Larry A. Waggoner, Carthage Hal B. Williams, Rankin County Bart C. Wise, Columbus Tennessee John David Douglas, Fayette County Texas Leonard P. Hein, Southeast Houston Christine Petrilla, North Houston Raymond W. Sanders, Montgomery County Travis H. Van Horn, Southwest Houston 19 Trustmark National Bank Community Market Advisory Directors In each of our markets, our advisory directors help us understand the unique needs and challenges of our customers and communities. They are business owners, educators, professionals and civic leaders who take on the challenges of their organizations and communities every day. Alabama Centreville Dan E. Wilson Owner Colony Office Products Ken Chesser Owner KC Land & Cattle Company Brewton H. C. “Harry” Cecil Program Specialist Alabama Technology Network Broox G. Garrett Attorney Thompson, Garrett & Hines Chris B. Griffin Administrator D.W. McMillan Memorial Hospital Deborah C. Hardee President Trustmark National Bank 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) Stephanie Walker Preschool Director St. Stephen’s Episcopal Church 20 John Downs Business Office Manager Alabama Power Company Steve Edmonds President Windwood Management Group Eufaula Robert M. Dixon, Jr. Chief Executive Officer M.C. Dixon Lumber Company, Inc. Stephanie Kemmer Probate Judge Bibb County Mo Erkins Military (Retired) Debbie Martin Funeral Director/Office Administrator Rocko Funeral Home Mary Foy Kirkland President Young Johnston and Associates, Inc. Dave Crenshaw President Trustmark National Bank P. Richard Hartley Partner Hartley & Hickman Attorneys at Law John H. McGowin Owner/President McGowin Logging Co., Inc. Dexter McLendon Mayor City of Greenville J. W. Oakley Recruiting Coordinator School of Communications University of Alabama Demopolis Gary B. Butler President Butler & Company, Inc. Johnnie Anderson Shows II Owner Jaber, Inc. Loyd Todd Tally President Trustmark National Bank Mem Stewart Webb Owner Webb Realty, Inc. Thomas Alvin Williams Partner Morgan’s Ice Charles R. Schaeffer President Trustmark National Bank Allin Whittle Butler County Commissioner Joel Smith, Jr. Attorney Williams, Potthoff, Williams & Smith Warren J. Williamson Attorney Williamson & Williamson (Retired) Robert L. Taylor Owner Bobby Taylor Enterprises Deltonya Warren Director Federal Programs Principal Eufaula Early Learning Center Huntsville John R. Baggette, Jr. Attorney and Shareholder Sirote & Permutt, P.C. Michael R. Hockman Senior Vice President Trustmark National Bank Doug Winkleblack Southern Regional Manager Alabama Interforest Corp David A. Hunt Administrator/Owner Limestone Health Facility, Inc. Greenville Barry E. Boan President Boan Contracting Robert F. Harwell, Jr. President Trustmark National Bank Babu R. Kahani Manager Tennessee Valley OB/GYN Clinic, P.C. James E. McClary President and Owner McClary Tire Company Timothy A. Smalley CPA Byrd, Smalley & Adams P.C. Robert E. Thurber Investor Michael E. Underwood CEO TriGreen Equipment LLC Mobile/Baldwin County Sumner G. Adams Vice President Cash Management/Finance Norton Lilly International Tommy B. Faust, Jr. President – Baldwin County Trustmark National Bank Frank McKinley Bell III President Marine Rigging, Inc. Kevin S. Carey President - Mobile Trustmark National Bank Jacob L. Cunningham Manager Summit Industries, LLC David A. Dye Chairman and Chief Growth Officer Computer Programs and Systems, Inc. (CPSI) Thomas Gross Chief Financial Officer White-Spunner Construction H. Ray Hix, Jr. Partner/Manager Hix Snedeker Companies, LLC John E. Estes, Jr. Vice President J. E. Estes Wood Company, Inc. Phyllis Ingram Partner/Shareholder Carr, Riggs & Ingram, 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 Alfred M. Newmann, Jr., MD Premier Medical ENT West Henry F. O’Connor III Attorney Jones Walker LLP E. Luckett Robinson II Vice President - Finance Overseas Hardwoods Company, Inc. (OHC) David Sutley President - Baldwin County Trustmark National Bank (Retired) Dr. Reginald L. Sykes President – Bishop State Community College Monroeville Pete Black Executive Pulp & Paper (Retired) Haniel Croft President BankTrust (Retired) Paul J. England President Trustmark National Bank Sloan Fountain Vice President/Manager Vanity Fair Mills, Inc. (Retired) Leonard N. Math Partner/Shareholder Chambless, Math & Carr, PC Attorneys at Law Ed Lee, DMD Dentist (Retired) John T. Lee President Pilots for Christ Alex Roberts Photographer Alex Roberts Photography (Retired) Sandy Smith Mayor City of Monroeville Montevallo David C. Darby President Trustmark National Bank Steven L. Reed Probate Judge Montgomery County Prattville John Boutwell Owner Boutwell Farms J.N. Buckner Partner Buckner and Cook, LLC Keith Gamble Owner FirstGuard, LLC David McDowell Partner McDowell, Faulk and McDowell, LLC Philip C. Hubbard Veterinarian Countryside Animal Hospital R. Wade Seamon President Trustmark National Bank Karen Kelly Director of Compensation & Benefits U.S. Pipe and Foundry Company (Retired) Selma Tommy Atchison Attorney Atchison Injury Attorneys, LLC Denson Henry Vice President Henry Brick Co. S. Kirk Johnson Owner Oxford Manufacturing Leroy Lucas, Jr. Owner Lelco, Inc. Montgomery George Traweek Dickson President and CEO Joe Hudson’s Collision Center 20 21 Trustmark National Bank Community Market Advisory Directors Edward T. Livingston Regional President Trustmark National Bank (Retired) Johnny Moss III Director of Marketing & College Relations Wallace Community College - Selma Hollis Mann Store Manager Tallassee Super Foods, Inc. Jennie Rhinehart Chief Executive Officer Community Hospital, Inc. Florida James A. Stewart President Trustmark National Bank Angus G. Andrews, Jr. Real Estate Investor/ Developer Mississippi Carthage 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. Stanley L. Foster President Trustmark National Bank Kenneth W. Goza Program Coordinator Copiah Lincoln Community College Arlustra Henderson, Jr. Chief of Police City of Brookhaven (Retired) Tracy T. Conerly Partner Emeritus Carr, Riggs & Ingram, LLC Gerald R. Dunkle President Sundial Developers, Inc. Robert C. McLendon Executive Vice President Fisher Brown Bottrell Insurance, Inc. James (Jay) R. Moody IV CPA/Member Warren Averett, LLC Floyd Skinner President Skinner Tax Consulting, Inc. 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 David Spencer President Glass Center, Inc. John D. Sumrall Regional President Florida Trustmark National Bank Jay N. Trumbull Owner Culligan Water Solutions Dennis A. Wallace Real Estate Investor Walton County School Board (retired) Carl Blocker Sales Greco Electrical Contractor Lee Carson President N.L. Carson Construction, Inc. 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 Columbus Mark G. Alexander Chairman Dynahealth, Inc. William Key Blair, Jr. Vice President Columbus Marble Works Mark Castleberry President Castle Properties W. R. Phillips IV Vice President Phillips Contracting Company, Inc. Bart C. Wise President Trustmark National Bank 23 William P. Swift III Owner Swift Drug Co. Abigail Tucker, DMD Owner/Dentist Tucker Family Dentistry Ira M. Wagoner Accountant Edwards and Wilkinson, PC Tallassee Cecil Mack Daugherty Chief of Security Russell Lands Gary Fuller Owner Fuller Warehouse & Gin, Inc. James B. Hurst President Trustmark National Bank Charles Frank Keith Owner Johnson Furniture David Lawrence Owner Tallassee Super Foods, Inc. 22 R.A. Norris President S&N Airflow, Inc. Robert R. Vardaman Owner and President Vardaman Buick-Honda, Inc. Victor Jones, Jr. Salesman Mississippi Ag Company Corinth Victor L. Marlar President Trustmark National Bank William J. Napier III President Corinth Mill Supply Ricky R. Stockton Hotel Manager S.S.S.S. &P., Inc. Clifton Thach President Trustmark National Bank Robert L. Upchurch President Upchurch Plumbing, Inc. Hattiesburg Kenneth W. Williams President Corinth Coca-Cola Bottling Works Refreshments, Inc. Hugh Bolton Executive Vice President Trustmark National Bank (Retired) Jeff C. Bowman Senior Vice President/ Chief Administrative Officer Cooperative Energy Thomas M. Duff Managing Partner Southern Tire Mart, LLC John M. Fitzpatrick III, MD President and Physician Hattiesburg Clinic, PA Linda Kuykendall Vice President Commercial Business Interiors, Inc. Charles H. Lewis IV Regional President South Mississippi Trustmark National Bank W. A. Payne III Chief Executive Officer The Payne Companies Robert O. Tatum, Jr. Principal/Owner CR Properties, LLC Greenville Paul D. Dees Partner Greenland Planting Company Stephen R. Jernigan Owner River City Rehabilitation R. Andrew McGahey President Trustmark National Bank Harley Metcalfe III Investor (Retired) Steven R. Millwood President Mississippi Marine Corporation Greenwood H. Don Brock, Jr. Partner Whittington Brock & Swayze Alexander John Malouf III Co-Owner The John Richard Collection, Inc. Hazlehurst Olen C. Bryant, Jr. Attorney Bryant & Rutland, PLLC Joe B. Madden President Trustmark National Bank Fred J. McDonnell, MD Physician Copiah Medical Associates Rhes V. Low, Sr. Investor Low Company, LLC Richard L. Yoder, Jr. Attorney Gilchrist Sumrall Yoder & Boone, PLLC Magee Julie Polk Breazeale Chief Executive Officer Polk’s Meat Products, Inc. John C. Pyron Co-Owner Copiah Forest Products, Inc. Copiah Lumber Company, Inc. Jacqueline P. Gordy Secretary-Treasurer Pace Oil Company 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. Brandon S. Hubbard President Trustmark National Bank Charles Pruitt III, MD Physician Magee Medical and Surgical Clinic, PLLC James H. Stuard, DMD Dental Group of Magee James Price Wallace Owner and Manager River Birch Farm Linda R. Gavin Associate Executive Director of Marketing South Central Regional Medical Center McComb Pat H. Brumfield, Jr. President Brumfield Oil Company, Inc. Jerome Harless President Flarestack, Inc. (Retired) Brad Clark President Clark Construction Co., Inc. of Mississippi 23 Trustmark National Bank Community Market Advisory Directors David B. Craddock President Craddock Oil Company Larkin Kennedy President and CEO Rush Health Systems Tylertown Timothy O. Jones Assistant District Attorney 14th Judicial District Samuel L. Pierce, MD Partner Medical Associates of Vicksburg PLLC Adam Mitchell Chief Executive Officer Mitchell Distributing Company John M. Mitchell, Jr. Owner The Mitchell Companies C.D. Smith, Jr. Regional Manager AT&T Mississippi Steven L. Kennedy Owner Tylertown Sports Center Charlie Scott King President Trustmark National Bank Rob Loper, DVM Veterinarian Tylertown Animal Hospital Tupelo V.M. Cleveland President Tupelo Furniture Market I. Conrad Mord II Attorney Mord Law Firm 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 Group, Inc. 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 J. Keith Speed, DO Doctor of Osteopathy William Carey University Vicksburg Ronald L. Andrews, Sr. President Vicksburg Insurance Agency, Inc. Robert R. Bailess Partner Bailess & Rector, LLP W. Briggs Hopson III Partner Teller, Hassell & Hopson, LLP Donald Jarratt Managing Partner Jarratt Properties, LLC Thomas Kendall President Trustmark National Bank James O. Smith III President Big River Shipbuilders, Inc. Patrick R. Smith President Yazoo River Towing, Inc. President Vicksburg Plant Food, Inc. Howard C. (Charles) Waring, Jr. Sales Manager Waring Oil Company, LLC 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/North Mississippi Trustmark National Bank John S. Wilder, Jr. Treasurer and General Manager Long Town Gin & Supply 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. John Andrew Watson Medical Director STATCare Medical Clinics Meridian David G. “Archie” Anderson President Trustmark National Bank Cole Cardwell Vice President/ General Manager Structural Steel Services, Inc. Tommy E. Dulaney President and Chief Executive Officer Structural Steel Services, Inc. Billy W. Estes President Trustmark National Bank (Retired) 24 Trustmark Corporation Financial Highlights ($ in thousands except per share data) Operating Results Net interest income Provision for loan losses Noninterest income Noninterest expense Net income Cash dividends on common stock 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 12.86% 9.43% 1.11% Capital Ratios 2018 2017 2016 2015 2014 $ $ $ $ 419,420 16,988 184,836 415,415 149,584 62,425 2.22 2.21 0.92 24.17 18.24 407,550 7,699 184,663 430,169 105,630 62,795 1.56 1.56 0.92 23.20 17.35 9.39% 6.77% 0.77% $ $ $ $ 387,533 14,714 173,943 407,298 108,411 62,666 1.60 1.60 0.92 22.48 16.76 $ 391,765 11,800 173,149 401,662 116,038 62,605 405,336 7,382 173,412 409,005 123,562 62,474 $ 1.72 1.71 0.92 21.80 15.98 1.83 1.83 0.92 21.04 15.13 9.99% 7.14% 0.84% 11.36% 7.94% 0.95% 12.97% 8.83% 1.03% Total equity/total assets Tangible equity/tangible assets Tier 1 leverage ratio Tier 1 risk-based capital ratio Total risk-based capital ratio 11.98% 9.31% 10.26% 12.33% 13.07% 11.39% 8.77% 9.67% 12.33% 13.10% 11.39% 8.74% 9.90% 12.76% 13.59% 11.62% 8.79% 10.03% 13.21% 14.07% 11.59% 8.62% 9.63% 13.47% 14.56% Year-end Balance Sheet Data Securities Loans Total assets Total deposits Total borrowings Total shareholders’ equity $ 2,721,456 9,096,599 13,286,460 11,364,411 192,212 1,591,453 $ 3,295,121 9,011,996 13,797,953 10,577,512 1,503,678 1,571,701 $ 3,515,325 8,299,387 13,352,333 10,056,012 1,622,500 1,520,208 $ 3,533,240 7,641,985 12,678,896 9,588,230 1,466,639 1,473,057 $ 3,545,252 7,131,074 12,250,633 9,698,358 981,665 1,419,940 Non-GAAP Financial Measures (1) Net income Diluted earnings per share Return on average tangible equity Return on average equity Return on average assets $ n/a n/a n/a n/a n/a $ 130,599 1.92 11.53% 8.37% 0.95% 115,280 1.70 10.60% 7.59% 0.89% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a (1) Trustmark discloses certain non-GAAP financial measures, including net income adjusted for significant non-routine transactions as a measure of our core operating business, as these transactions are generally not operational in nature. Reconciliations of these non-GAAP measures to comparable measures calculated in accordance with generally accepted accounting principles can be found under Part II, Item 7 in Trustmark Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 19, 2019. 26
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