Trustmark : First Quarter 2021 Financial Results Presentation

First Quarter 2021 Financial Results

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as "may," "hope," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "project," "potential," "seek," "continue," "could," "would," "future" or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other "forward-looking" information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption "Risk Factors" in Trustmark's filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission (SEC).

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

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Financial Highlights

Performance reflects continued balance sheet growth and strong credit quality

		Earnings	•	Loans Held for Investment (HFI), excluding Paycheck Protection Program
		Drivers		(PPP) loans, increased $159.2 million, or 1.6%, linked quarter and $415.8
			million, or 4.3 %, Y-o-Y
			• During the first quarter, originated 4,774 loans totaling $301.5 million (net of
				$16.5 million in deferred fees and costs) through SBA's Paycheck Protection
				Program
		Profitable	•	Insurance and wealth management businesses experienced linked-quarter
		Revenue		revenue growth 22.1% and 7.4%, respectively
		•	Mortgage banking revenue totaled $20.8 million, reflecting tighter spreads
		Generation
			and reduced gains on sale of mortgage loans
		Expense	• Adjusted noninterest expense(1) totaled $120.2 million in the first quarter, up
			0.5% linked-quarter reflecting increases in payroll taxes and performance-
		Management		based commissions
			• Continued branch realignment with closing of seven branches and opening
				two branches in first quarter
		Credit	•	Recoveries exceeded charge-offs by $2.4 million
		Quality	•	Loans remaining under a COVID-19 related concession represented
				approximately 28 basis points of loans HFI at March 31, 2021
			• Provision for credit losses was a negative $10.5 million driven by decreases
				in quantitative reserves as a result of an improving economic forecast
		Capital	•	Maintained strong capital levels with CET1 ratio of 11.71% and total risk-
		Management		based capital ratio of 14.07%
		•	During first quarter, repurchased $4.2 million, or approximately 145

thousand of its outstanding common shares; on March 31, 2021, had $95.8 million remaining for the repurchase program, which expires on December 31, 2021

At March 31, 2021

	Total Assets		$16.9 billion
	Loans (HFI)		$10.0 billion
	PPP Loans		$679.7 million
	Total Deposits		$14.4 billion
	Banking Centers		181
			Q1-21	Q4-20		Q1-20
	Net Income		$52.0	$51.2		$22.2
		million	million		million
	EPS -		$0.82	$0.81		$0.35
	Diluted
	PPNR (1)		$41.4	$57.6		$56.6
		million	million		million
	ROAA		1.26%	1.28%		0.66%
	ROATCE		15.56%	15.47%		7.34%
	Dividends /		$0.23	$0.23		$0.23
	Share
	TE/TA		8.30%	8.34%		9.27%

Source: Company reports

• Board of Directors declared quarterly cash dividend of $0.23 per share

(1) For Non-GAAP measures, please refer to the Earnings Release dated April 27, 2021 and the Consolidated Financial Information, Footnote 8 - Non-GAAP Financial Measures

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Loans Held for Investment (LHFI) Portfolio

Focus on profitable, credit-disciplined loan growth continued

LHFI				Change
($ in millions)
		03/31/21		LQ		Y-o-Y
Loans secured by real estate:
Const., land dev. and other land loans	$	1,342	$	33	$	206
Secured by 1-4 family residential prop.		1,743		2		(109)
Secured by nonfarm, nonresidential prop.		2,799		90		224
Other real estate secured		1,135		69		296
Commercial and industrial loans		1,323		14		(154)
Consumer loans		153		(8)		(17)
State and other political subdivision loans		1,037		36		98
Other loans		451		(77)		(128)
Total LHFI	$	9,984	$	159	$	416

Loan Portfolio Composition 03/31/21(1)

Other RE,

11%

	Nonfarm-Nonres,
C&I, 13%	28%
Consumer, 2%
State & Other
Political Sub. , 10%	1-4 Residential,
Other, 5%	17%
	Construction,
	Land Dev, 13%

 Trustmark has no loan exposure in which the source of

LHFI by Quarterrepayment or the underlying security of such exposure is tied to the realization of value from energy reserves

$9,984

				$9,848	$9,825
$9,568	$9,660
Dollar Change:	$92(2)	$188	$(23)		$159
	Q1-20	Q2-20		Q3-20	Q4-20	Q1-21

• Total energy-related sector exposure of $324 million with outstanding balances of $106 million - representing 1.07% of total LHFI - at March 31, 2021
• At March 31, 2021, nonaccrual energy-related loans represented 9.4% of outstanding energy- related loans and 10 basis points of outstanding
  LHFI

Source: Company reports

1. Percentages may not sum to 100% due to rounding.
2. During the first quarter of 2020, Trustmark reclassified $72.6 million of acquired loans to loans held for investment with the adoption of FASB ASC Topic 326. Reflects change excluding acquired loan reclass.

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Real Estate Secured Loan Portfolio Detail

CRE Portfolio	As	% of CRE
($ in millions)	Reported	Portfolio
	03/31/21
Lots, Development and Unimproved Land	$ 287	7%
1-4 Family Construction	256	6%
Other Construction	799	20%
Total Construction, Land Development and	$ 1,342	33%
Other Land Loans
Retail	401	10%
Offices	237	6%
Hotels/Motels	352	9%
Industrial	201	5%
Other (including REITs)	443	11%
Total Non-owner Occupied & REITs	$ 1,634	41%
Multi-Family(1)	1,053	26%
Total CRE	$ 4,029	100%

Source: Company reports

(1) Multi-Family is included in Other Real Estate Secured Loans in Financials

Owner-Occupied NonFarm,		% of
As	Owner-
NonResidential	Occupied
($ in millions)	Reported	Portfolio
	03/31/21
Offices	$ 164	14%
Churches	102	9%
Industrial Warehouses	178	15%
Health Care	141	12%
Convenience Stores	136	12%
Nursing Homes/Senior Living	177	15%
Other	279	24%
Total Owner-Occupied	$ 1,177	100%

• Focus on vertical construction with limited exposure to unimproved land and development
• Well-diversifiedproduct and geographical mix
• Balanced between non-owner and owner-occupied portfolios
• Virtually no REIT outstandings ($12.2 million)

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