Trustmark Annual Report 2018

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FY2018 Annual Report · Trustmark

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Our 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

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

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.

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

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

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

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

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.

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

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

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

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.

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

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

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)

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

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

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

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

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

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

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

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.

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

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)

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

(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.