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Trustmark Corporation Announces Third Quarter 2009 Financial Results and Declares $0.23 Quarterly Cash Dividend

JACKSON, Miss. - (BUSINESS WIRE) - Trustmark Corporation (NASDAQ:TRMK) announced net income available to common shareholders of $22.4 million in the third quarter of 2009, which represented basic earnings per common share of $0.39. Trustmark's third quarter 2009 net income produced a return on average tangible common equity of 13.06%. During the first nine months of 2009, Trustmark's net income available to common shareholders totaled $59.2 million, which represented basic earnings per common share of $1.03. Trustmark's performance during the first nine months of 2009 resulted in a return on average tangible common equity of 11.89%. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per common share. The dividend is payable December 15, 2009, to shareholders of record on December 1, 2009.

Printer friendly version of earnings release with consolidated financial statements and notes: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6083265&lang=en

Richard G. Hickson, Chairman and CEO, stated, "Trustmark's performance in the third quarter reflected the diversified revenue strengths of the organization. Robust net interest income, coupled with revenue growth in our general banking, mortgage banking, insurance and wealth management businesses, resulted in pre-tax, pre-provision earnings of $53.8 million during the third quarter. We remain focused upon revenue generation, credit quality, and disciplined expense management. Trustmark's solid financial performance is reflected in internally generated growth in tangible common equity of $70.0 million during the last four quarters, resulting in capital ratios that significantly exceed well-capitalized levels. As such, we remain well-positioned to meet the financial needs of our customers and take advantage of opportunities in the marketplace."

Credit Quality

  • Continued reduction in Florida construction and land development portfolio
  • Nonperforming loans increased $5.5 million to 2.09% of total loans

Trustmark has made significant progress in the resolution of its construction and land development portfolio in Florida. Over the last 24 months, this portfolio has been reduced by $171.5 million, or 45%, to $212.0 million. At September 30, 2009, Florida non-impaired construction and land development loans totaled $177.1 million with an associated reserve for loan losses of $22.2 million, or 12.52%.

During the third quarter, nonperforming loans increased $5.5 million relative to the prior quarter to $138.5 million, or 2.09% of total loans. Following the natural progression in the resolution of nonperforming loans, foreclosed real estate increased $16.5 million during the quarter. At September 30, 2009, nonperforming assets totaled $210.2 million, representing 3.14% of total loans and other real estate.

Trustmark's provision for loan losses totaled $15.8 million during the third quarter, exceeding net charge-offs of $14.5 million. Allocation of Trustmark's $103.0 million allowance for loan losses represented 2.08% of commercial loans and 0.76% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.61% as of September 30, 2009.

Capital Strength

  • Tangible common equity to tangible assets increased to 7.76%
  • Total risk-based capital increased to 16.09%

Consistent profitability, sound balance sheet management and a prudent capital philosophy continue to be reflected in Trustmark's solid capital base. As of the third quarter of 2009, internally generated tangible common equity increased $70.0 million relative to the comparable period one year earlier to total $703.0 million and represented 7.76% of tangible assets at September 30, 2009. Total risk-based capital expanded to 16.09% as of September 30, 2009. Excluding the $215 million in Senior Preferred stock issued under the Capital Purchase Program, Trustmark's total risk-based capital ratio is an estimated 12.80%, substantially exceeding guidelines to be classified as "well-capitalized" at September 30, 2009.

The fundamental strengths of Trustmark's business, as reflected by pre-tax, pre-provision earnings, remain solid despite the challenging economic environment. Based upon the existing capital base and the expectation of the level of profitability going forward, Trustmark believes at this time in the sustainability of its cash dividend to common shareholders.

Asset Liability Management

  • Net interest income totaled $91.3 million
  • Net interest margin expanded to 4.28%

Loans held for investment totaled $6.4 billion at September 30, 2009, down $188.1 million relative to the prior quarter. This reduction reflects Trustmark's continued efforts to reduce exposure to construction and land development lending and to its decision to discontinue indirect auto financing. Current economic conditions have also resulted in reduced loan demand.

Trustmark continued to benefit from its capital strength and strong liquidity as deposit and funding costs were lowered during the third quarter. Disciplined loan pricing and required minimum loan rates helped sustain loan yields. As a result, net interest income totaled $91.3 million during the third quarter, resulting in expansion of the net interest margin to 4.28%.

Noninterest Income

  • Mortgage banking income increased to $8.9 million
  • Service charges expanded to $14.2 million

Noninterest income excluding security gains during the third quarter of 2009 totaled $43.1 million, an increase of $6.7 million relative to the prior quarter. Mortgage banking income during the quarter was $8.9 million, up $6.3 million from the prior quarter, and reflected the Corporation's successful mortgage servicing rights hedge strategy as well as continued secondary marketing gains. Service charges on deposit accounts increased $913 thousand relative to the prior quarter to total $14.2 million while insurance revenue totaled $7.9 million, an increase of $522 thousand from the prior quarter. Despite challenging market conditions, wealth management revenue remained stable at $5.6 million when compared to the prior quarter.

During the third quarter of 2009, Trustmark capitalized upon advantageous market conditions and sold approximately $30 million of longer duration mortgage securities, which resulted in a gain of $1.0 million.

Noninterest Expense

  • Core salary and benefit expense declined
  • Foreclosure expense increased $3.1 million

During the third quarter of 2009, noninterest expense totaled $79.2 million, an increase of $263 thousand from the prior quarter. Salary and benefit expense totaled $42.6 million during the third quarter. Excluding the one time benefit resulting from the decision to freeze benefits under the Corporation's defined benefit pension plan in the second quarter of 2009, salary and benefit expense declined $253 thousand. Services and fees, net occupancy expense, and equipment expense declined in the third quarter of 2009 relative to the prior quarter. Other expense in the third quarter totaled $17.5 million, a decrease of $1.2 million from the prior quarter as lower FDIC expense of $4.3 million was partially offset by increased real estate foreclosure expense of $3.1 million.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 28 at 10:00 a.m. Central Time to discuss the Corporation's financial results. Interested parties may listen to the conference call by dialing (877) 627-6580, passcode 4074008 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, November 4, 2009 in archived format at the same web address or by calling (888) 203-1112, passcode 4074008.

Trustmark is a financial services company providing banking and financial solutions through over 150 offices and 2,600 associates in Florida, Mississippi, Tennessee and Texas.

FORWARD-LOOKING STATEMENTS

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

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including the extent and duration of the current volatility in the credit and financial markets, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other markets, the enactment of legislation and changes in existing regulations, or enforcement practices, or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that effect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of Trustmark's borrowers, changes in Trustmark's ability to control expenses, changes in Trustmark's compensation and benefit plans, greater than expected costs or difficulties related to the integration of new products and lines of business, natural disasters, acts of war or terrorism and other risks described in Trustmark's filings with the Securities and Exchange Commission.

Although Management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Trustmark undertakes no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2009
($ in thousands)
(unaudited)
Linked Quarter Year over Year

QUARTERLY AVERAGE BALANCES

9/30/2009 6/30/2009 9/30/2008

$ Change

% Change

$ Change

% Change
Securities AFS-taxable $ 1,377,318 $ 1,395,303 $ 822,995 $ (17,985 ) -1.3 % $ 554,323 67.4 %
Securities AFS-nontaxable 89,259 70,165 39,886 19,094 27.2 % 49,373 n/m
Securities HTM-taxable 191,934 194,079 184,001 (2,145 ) -1.1 % 7,933 4.3 %
Securities HTM-nontaxable 55,440 61,166 74,937 (5,726 ) -9.4 % (19,497 ) -26.0 %
Total securities 1,713,951 1,720,713 1,121,819 (6,762 ) -0.4 % 592,132 52.8 %
Loans (including loans held for sale) 6,693,482 6,880,909 6,927,270 (187,427 ) -2.7 % (233,788 ) -3.4 %
Fed funds sold and rev repos 12,821 20,973 17,401 (8,152 ) -38.9 % (4,580 ) -26.3 %
Other earning assets 43,894 47,084 37,323 (3,190 ) -6.8 % 6,571 17.6 %
Total earning assets 8,464,148 8,669,679 8,103,813 (205,531 ) -2.4 % 360,335 4.4 %
Allowance for loan losses (102,545 ) (106,491 ) (88,643 ) 3,946 -3.7 % (13,902 ) 15.7 %
Cash and due from banks 205,361 214,633 246,515 (9,272 ) -4.3 % (41,154 ) -16.7 %
Other assets 871,477 824,724 810,449 46,753 5.7 % 61,028 7.5 %
Total assets $ 9,438,441 $ 9,602,545 $ 9,072,134 $ (164,104 ) -1.7 % $ 366,307 4.0 %
Interest-bearing demand deposits $ 1,148,537 $ 1,131,765 $ 1,222,087 $ 16,772 1.5 % $ (73,550 ) -6.0 %
Savings deposits 1,797,421 1,869,794 1,774,188 (72,373 ) -3.9 % 23,233 1.3 %
Time deposits less than $100,000 1,434,097 1,493,172 1,532,630 (59,075 ) -4.0 % (98,533 ) -6.4 %
Time deposits of $100,000 or more 1,095,431 1,096,170 1,108,677 (739 ) -0.1 % (13,246 ) -1.2 %
Total interest-bearing deposits 5,475,486 5,590,901 5,637,582 (115,415 ) -2.1 % (162,096 ) -2.9 %
Fed funds purchased and repos 644,012 589,542 659,312 54,470 9.2 % (15,300 ) -2.3 %
Short-term borrowings 263,891 340,816 156,880 (76,925 ) -22.6 % 107,011 68.2 %
Long-term FHLB advances 75,000 75,000 - - 0.0 % 75,000 n/m
Subordinated notes 49,760 49,752 49,728 8 0.0 % 32 0.1 %
Junior subordinated debt securities 70,104 70,104 70,104 - 0.0 % - 0.0 %
Total interest-bearing liabilities 6,578,253 6,716,115 6,573,606 (137,862 ) -2.1 % 4,647 0.1 %
Noninterest-bearing deposits 1,529,381 1,554,642 1,415,402 (25,261 ) -1.6 % 113,979 8.1 %
Other liabilities 113,820 124,586 136,229 (10,766 ) -8.6 % (22,409 ) -16.4 %
Total liabilities 8,221,454 8,395,343 8,125,237 (173,889 ) -2.1 % 96,217 1.2 %
Preferred equity 206,308 205,860 - 448 0.2 % 206,308 n/m
Common equity 1,010,679 1,001,342 946,897 9,337 0.9 % 63,782 6.7 %
Total shareholders' equity 1,216,987 1,207,202 946,897 9,785 0.8 % 270,090 28.5 %
Total liabilities and equity $ 9,438,441 $ 9,602,545 $ 9,072,134 $ (164,104 ) -1.7 % $ 366,307 4.0 %
Linked Quarter Year over Year

PERIOD END BALANCES

9/30/2009 6/30/2009 9/30/2008

$ Change

% Change

$ Change

% Change
Cash and due from banks $ 191,449 $ 220,706 $ 235,016 $ (29,257 ) -13.3 % $ (43,567 ) -18.5 %
Fed funds sold and rev repos 8,551 16,367 14,782 (7,816 ) -47.8 % (6,231 ) -42.2 %
Securities available for sale 1,528,625 1,488,428 907,629 40,197 2.7 % 620,996 68.4 %
Securities held to maturity 242,603 254,380 256,323 (11,777 ) -4.6 % (13,720 ) -5.4 %
Loans held for sale 237,152 280,975 154,162 (43,823 ) -15.6 % 82,990 53.8 %
Loans 6,382,440 6,570,582 6,740,730 (188,142 ) -2.9 % (358,290 ) -5.3 %
Allowance for loan losses (103,016 ) (101,751 ) (90,888 ) (1,265 ) 1.2 % (12,128 ) 13.3 %
Net Loans 6,279,424 6,468,831 6,649,842 (189,407 ) -2.9 % (370,418 ) -5.6 %
Premises and equipment, net 151,828 156,541 156,298 (4,713 ) -3.0 % (4,470 ) -2.9 %
Mortgage servicing rights 56,042 63,316 78,550 (7,274 ) -11.5 % (22,508 ) -28.7 %
Goodwill 291,104 291,104 291,145 - 0.0 % (41 ) 0.0 %
Identifiable intangible assets 20,819 21,820 24,887 (1,001 ) -4.6 % (4,068 ) -16.3 %
Other assets 360,901 364,402 317,639 (3,501 ) -1.0 % 43,262 13.6 %
Total assets $ 9,368,498 $ 9,626,870 $ 9,086,273 $ (258,372 ) -2.7 % $ 282,225 3.1 %
Deposits:
Noninterest-bearing $ 1,493,424 $ 1,558,934 $ 1,526,374 $ (65,510 ) -4.2 % $ (32,950 ) -2.2 %
Interest-bearing 5,377,011 5,588,955 5,411,304 (211,944 ) -3.8 % (34,293 ) -0.6 %
Total deposits 6,870,435 7,147,889 6,937,678 (277,454 ) -3.9 % (67,243 ) -1.0 %
Fed funds purchased and repos 645,057 627,616 592,818 17,441 2.8 % 52,239 8.8 %
Short-term borrowings 315,105 314,751 369,037 354 0.1 % (53,932 ) -14.6 %
Long-term FHLB advances 75,000 75,000 - - n/m 75,000 n/m
Subordinated notes 49,766 49,758 49,733 8 0.0 % 33 0.1 %
Junior subordinated debt securities 70,104 70,104 70,104 - 0.0 % - 0.0 %
Other liabilities 121,670 139,638 117,905 (17,968 ) -12.9 % 3,765 3.2 %
Total liabilities 8,147,137 8,424,756 8,137,275 (277,619 ) -3.3 % 9,862 0.1 %
Preferred stock 206,461 206,009 - 452 0.2 % 206,461 n/m
Common stock 11,968 11,964 11,944 4 0.0 % 24 0.2 %
Capital surplus 145,352 143,654 128,617 1,698 1.2 % 16,735 13.0 %
Retained earnings 854,508 845,882 824,768 8,626 1.0 % 29,740 3.6 %

Accum other comprehensive income (loss), net of tax

3,072 (5,395 ) (16,331 ) 8,467 n/m 19,403 n/m
Total shareholders' equity 1,221,361 1,202,114 948,998 19,247 1.6 % 272,363 28.7 %
Total liabilities and equity $ 9,368,498 $ 9,626,870 $ 9,086,273 $ (258,372 ) -2.7 % $ 282,225 3.1 %
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2009
($ in thousands except per share data)
(unaudited)
Quarter Ended Linked Quarter Year over Year

INCOME STATEMENTS

9/30/2009 6/30/2009 9/30/2008

$ Change

% Change

$ Change

% Change
Interest and fees on loans-FTE $ 89,672 $ 91,652 $ 105,706 $ (1,980 ) -2.2 % $ (16,034 ) -15.2 %
Interest on securities-taxable 19,524 20,444 12,117 (920 ) -4.5 % 7,407 61.1 %
Interest on securities-tax exempt-FTE 2,172 2,040 1,946 132 6.5 % 226 11.6 %
Interest on fed funds sold and rev repos 16 19 98 (3 ) -15.8 % (82 ) -83.7 %
Other interest income 381 343 407 38 11.1 % (26 ) -6.4 %
Total interest income-FTE 111,765 114,498 120,274 (2,733 ) -2.4 % (8,509 ) -7.1 %
Interest on deposits 18,403 21,430 32,860 (3,027 ) -14.1 % (14,457 ) -44.0 %
Interest on fed funds pch and repos 282 272 3,123 10 3.7 % (2,841 ) -91.0 %
Other interest expense 1,786 1,980 2,653 (194 ) -9.8 % (867 ) -32.7 %
Total interest expense 20,471 23,682 38,636 (3,211 ) -13.6 % (18,165 ) -47.0 %
Net interest income-FTE 91,294 90,816 81,638 478 0.5 % 9,656 11.8 %
Provision for loan losses 15,770 26,767 14,473 (10,997 ) -41.1 % 1,297 9.0 %
Net interest income after provision-FTE 75,524 64,049 67,165 11,475 17.9 % 8,359 12.4 %
Service charges on deposit accounts 14,157 13,244 13,886 913 6.9 % 271 2.0 %
Insurance commissions 7,894 7,372 9,007 522 7.1 % (1,113 ) -12.4 %
Wealth management 5,589 5,497 6,788 92 1.7 % (1,199 ) -17.7 %
General banking - other 5,620 6,063 5,813 (443 ) -7.3 % (193 ) -3.3 %
Mortgage banking, net 8,871 2,543 4,323 6,328 n/m 4,548 n/m
Other, net 994 1,693 2,131 (699 ) -41.3 % (1,137 ) -53.4 %
Nonint inc-excl sec gains, net 43,125 36,412 41,948 6,713 18.4 % 1,177 2.8 %
Security gains, net 1,014 4,404 2 (3,390 ) -77.0 % 1,012 n/m
Total noninterest income 44,139 40,816 41,950 3,323 8.1 % 2,189 5.2 %
Salaries and employee benefits 42,629 40,989 42,859 1,640 4.0 % (230 ) -0.5 %
Services and fees 10,124 10,249 9,785 (125 ) -1.2 % 339 3.5 %
Net occupancy-premises 4,862 4,948 5,153 (86 ) -1.7 % (291 ) -5.6 %
Equipment expense 4,104 4,108 4,231 (4 ) -0.1 % (127 ) -3.0 %
Other expense 17,515 18,677 10,706 (1,162 ) -6.2 % 6,809 63.6 %
Total noninterest expense 79,234 78,971 72,734 263 0.3 % 6,500 8.9 %
Income before income taxes and tax eq adj 40,429 25,894 36,381 14,535 56.1 % 4,048 11.1 %
Tax equivalent adjustment 2,417 2,325 2,242 92 4.0 % 175 7.8 %
Income before income taxes 38,012 23,569 34,139 14,443 61.3 % 3,873 11.3 %
Income taxes 12,502 6,994 10,785 5,508 78.8 % 1,717 15.9 %
Net income 25,510 16,575 23,354 8,935 53.9 % 2,156 9.2 %
Preferred stock dividends 2,688 2,687 - 1 0.0 % 2,688 n/m
Accretion of preferred stock discount 452 445 - 7 1.6 % 452 n/m
Net income available to common shareholders $ 22,370 $ 13,443 $ 23,354 $ 8,927 66.4 % $ (984 ) -4.2 %
Per common share data
Earnings per share - basic $ 0.39 $ 0.23 $ 0.41 $ 0.16 69.6 % $ (0.02 ) -4.9 %
Earnings per share - diluted $ 0.39 $ 0.23 $ 0.41 $ 0.16 69.6 % $ (0.02 ) -4.9 %
Dividends per share $ 0.23 $ 0.23 $ 0.23 $ - 0.0 % $ - 0.0 %
Weighted average common shares outstanding
Basic 57,431,128 57,406,499 57,298,710
Diluted 57,559,492 57,546,928 57,337,342
Period end common shares outstanding 57,440,047 57,423,841 57,324,627

OTHER FINANCIAL DATA

Return on common equity 8.78 % 5.38 % 9.81 %
Return on average tangible common equity 13.06 % 8.20 % 15.16 %
Return on equity 8.32 % 5.51 % 9.81 %
Return on assets 1.07 % 0.69 % 1.02 %
Interest margin - Yield - FTE 5.24 % 5.30 % 5.90 %
Interest margin - Cost 0.96 % 1.10 % 1.90 %
Net interest margin - FTE 4.28 % 4.20 % 4.01 %
Efficiency ratio 58.95 % 58.57 % 58.85 %
Full-time equivalent employees 2,550 2,562 2,623

COMMON STOCK PERFORMANCE

Market value-Close $ 19.05 $ 19.32 $ 20.74
Common book value $ 17.67 $ 17.35 $ 16.55
Tangible common book value $ 12.24 $ 11.90 $ 11.04
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2009
($ in thousands)
(unaudited)
Quarter Ended Linked Quarter Year over Year

NONPERFORMING ASSETS

9/30/2009 6/30/2009 9/30/2008

$ Change

% Change

$ Change

% Change
Nonaccrual loans
Florida $ 72,063 $ 72,185 $ 71,125 $ (122 ) -0.2 % $ 938 1.3 %
Mississippi (1) 28,470 32,040 12,727 (3,570 ) -11.1 % 15,743 n/m
Tennessee (2) 11,481 2,941 4,012 8,540 n/m 7,469 n/m
Texas 26,490 25,824 17,418 666 2.6 % 9,072 52.1 %
Total nonaccrual loans 138,504 132,990 105,282 5,514 4.1 % 33,222 31.6 %
Other real estate
Florida 34,030 26,387 18,265 7,643 29.0 % 15,765 86.3 %
Mississippi (1) 22,932 15,542 6,062 7,390 47.5 % 16,870 n/m
Tennessee (2) 9,809 10,234 7,924 (425 ) -4.2 % 1,885 23.8 %
Texas 4,918 3,033 214 1,885 62.1 % 4,704 n/m
Total other real estate 71,689 55,196 32,465 16,493 29.9 % 39,224 n/m
Total nonperforming assets $ 210,193 $ 188,186 $ 137,747 $ 22,007 11.7 % $ 72,446 52.6 %

LOANS PAST DUE OVER 90 DAYS

Loans held for investment $ 6,854 $ 6,873 $ 3,622 $ (19 ) -0.3 % $ 3,232 89.2 %

Loans HFS-Guaranteed GNMA serviced loans (no obligation to repurchase)

$ 36,686 $ 28,523 $ 20,332 $ 8,163 28.6 % $ 16,354 80.4 %
Quarter Ended Linked Quarter Year over Year

ALLOWANCE FOR LOAN LOSSES

9/30/2009 6/30/2009 9/30/2008

$ Change

% Change

$ Change

% Change
Beginning Balance $ 101,751 $ 100,358 $ 86,576 $ 1,393 1.4 % $ 15,175 17.5 %
Provision for loan losses 15,770 26,767 14,473 (10,997 ) -41.1 % 1,297 9.0 %
Charge-offs (18,687 ) (27,870 ) (12,732 ) 9,183 -32.9 % (5,955 ) 46.8 %
Recoveries 4,182 2,496 2,571 1,686 67.5 % 1,611 62.7 %
Net charge-offs (14,505 ) (25,374 ) (10,161 ) 10,869 -42.8 % (4,344 ) 42.8 %
Ending Balance $ 103,016 $ 101,751 $ 90,888 $ 1,265 1.2 % $ 12,128 13.3 %

PROVISION FOR LOAN LOSSES

Florida $ (3,295 ) $ 28,915 $ 3,167 $ (32,210 ) n/m $ (6,462 ) n/m
Mississippi (1) 12,009 (1,044 ) 8,476 13,053 n/m 3,533 41.7 %
Tennessee (2) 159 (659 ) 27 818 n/m 132 n/m
Texas 6,897 (445 ) 2,803 7,342 n/m 4,094 n/m
Total provision for loan losses $ 15,770 $ 26,767 $ 14,473 $ (10,997 ) -41.1 % $ 1,297 9.0 %

NET CHARGE-OFFS

Florida $ 131 $ 21,167 $ 3,779 $ (21,036 ) -99.4 % $ (3,648 ) -96.5 %
Mississippi (1) 9,629 3,267 4,515 6,362 n/m 5,114 n/m
Tennessee (2) 872 897 1,291 (25 ) -2.8 % (419 ) -32.5 %
Texas 3,873 43 576 3,830 n/m 3,297 n/m
Total net charge-offs $ 14,505 $ 25,374 $ 10,161 $ (10,869 ) -42.8 % $ 4,344 42.8 %

CREDIT QUALITY RATIOS

Net charge offs/average loans 0.86 % 1.48 % 0.58 %
Provision for loan losses/average loans 0.93 % 1.56 % 0.83 %
Nonperforming loans/total loans (incl LHFS) 2.09 % 1.94 % 1.53 %
Nonperforming assets/total loans (incl LHFS) 3.18 % 2.75 % 2.00 %
Nonperforming assets/total loans (incl LHFS) +ORE 3.14 % 2.72 % 1.99 %
ALL/total loans (excl LHFS) 1.61 % 1.55 % 1.35 %
ALL-commercial/total commercial loans 2.08 % 2.01 % 1.76 %
ALL-consumer/total consumer and home mortgage loans 0.76 % 0.73 % 0.64 %
ALL/nonperforming loans 74.38 % 76.51 % 86.33 %
ALL/nonperforming loans (excl impaired loans) 117.93 % 123.15 % 145.21 %

CAPITAL RATIOS

Total equity/total assets 13.04 % 12.49 % 10.44 %
Common equity/total assets 10.83 % 10.35 % 10.44 %
Tangible equity/tangible assets 10.04 % 9.55 % 7.22 %
Tangible common equity/tangible assets 7.76 % 7.34 % 7.22 %
Tangible common equity/risk-weighted assets 10.15 % 9.56 % 8.80 %
Tier 1 leverage ratio 10.70 % 10.38 % 8.11 %
Tier 1 common risk-based capital ratio 10.15 % 9.66 % 8.91 %
Tier 1 risk-based capital ratio 14.11 % 13.50 % 9.86 %
Total risk-based capital ratio 16.09 % 15.45 % 11.80 %
(1) - Mississippi includes Central and Southern Mississippi Regions
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2009
($ in thousands)
(unaudited)
Quarter Ended Nine Months Ended

QUARTERLY AVERAGE BALANCES

9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008 9/30/2009 9/30/2008
Securities AFS-taxable $ 1,377,318 $ 1,395,303 $ 1,505,328 $ 1,226,843 $ 822,995 $ 1,425,514 $ 649,258
Securities AFS-nontaxable 89,259 70,165 43,429 40,708 39,886 67,786 37,341
Securities HTM-taxable 191,934 194,079 178,417 169,958 184,001 188,193 186,542
Securities HTM-nontaxable 55,440 61,166 67,308 71,843 74,937 61,261 77,802
Total securities 1,713,951 1,720,713 1,794,482 1,509,352 1,121,819 1,742,754 950,943
Loans (including loans held for sale) 6,693,482 6,880,909 6,981,921 6,908,296 6,