 | News Release |
Trustmark Corporation Announces First Quarter 2008 Financial Results
and Declares $0.23 Quarterly Cash Dividend
Jackson, Miss. – April 22, 2008 – Trustmark Corporation (NASDAQ:TRMK) announced net income of $26.2 million in the first quarter of 2008, which represented basic earnings per share of $0.46. Earnings per share in the first quarter of 2008 increased 9.5% when compared to the prior quarter and 4.5% when compared to figures one year earlier. Trustmark’s first quarter 2008 net income produced returns on average tangible equity and average assets of 17.59% and 1.19%, respectively. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share. The dividend is payable June 15, 2008 to shareholders of record on June 1, 2008.
Richard G. Hickson, Chairman and CEO, stated, “The diligent efforts of our associates have produced positive financial results during the first quarter. We have continued to devote significant resources to proactively manage credit risks resulting from the slowdown in residential real estate. While the duration of the economic slowdown is unknown, Trustmark has the financial strength and resolve for continued success. We are particularly pleased with the meaningful growth of internally generated tangible equity over the last year. Continued preservation and growth of capital will afford Trustmark the financial flexibility to respond to opportunities in the marketplace.”
Proactive management of credit quality
| · | Nonperforming assets represented 1.21% of total loans and other real estate |
| · | Net charge-offs totaled 0.69% of average loans |
| · | Provision for loan losses totaled 0.80% of average loans |
Nonperforming assets totaled $87.6 million at March 31, 2008, up $14.1 million relative to the prior quarter, to represent 1.21% of total loans and other real estate. This change was largely attributable to residential real estate loans in the Corporation’s Florida Panhandle market.
Net charge-offs were $12.3 million, or 0.69% of average loans, in the first quarter of 2008 compared to $9.5 million, or 0.53% of average loans in the prior quarter. This was primarily the result of a continued lack of residential real estate sales activity in Trustmark’s Florida Panhandle market. We continue to monitor the impact of declining real estate values on borrowers and are proactively managing these situations. Trustmark’s total construction and land development exposure in the Florida Panhandle was $371.2 million at March 31, 2008.
The provision for loan losses in the first quarter was $14.2 million, which represented 0.80% of average loans while the allowance for loan losses totaled $81.8 million. Trustmark’s allocation of its allowance for loan losses represented 1.52% of commercial loans and 0.60% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.17%.
Sustained net interest margin of 3.94% in falling rate environment
| · | Decreased loan yields offset by lower deposit and borrowing costs |
The repositioning of the balance sheet continued during the first quarter as home mortgage and auto loans declined. Trustmark’s funding mix also improved as average deposits increased $170.9 million, or 2.5%, while average borrowings declined $261.5 million, or 28.1%, relative to the prior quarter. Lower loan yields during the quarter were effectively offset with lower deposit and borrowing costs. As a result, a net interest margin of 3.94% was sustained during the first quarter despite the falling interest rate environment.
Lower short-term interest rates during the quarter resulted in a positively sloped yield curve, creating an opportunity to enhance future net interest income through growth in investment securities. At March 31, 2008, Trustmark’s investment securities portfolio totaled $853.1 million, an increase of $135.6 million relative to year-end 2007.
Mortgage Banking
| · | Mortgage production volume up 19% |
| · | Increased market share in turbulent environment |
Mortgage production volume totaled $380 million during the first quarter of 2008, an increase of 19% from the prior quarter. Growth in volume, coupled with improved spreads and fees, positively impacted net interest income. In addition, noninterest income in Trustmark’s Mortgage Banking division increased $6.1 million relative to the prior quarter due to a successful mortgage servicing rights hedging strategy.
Trustmark’s highly regarded mortgage banking reputation has enabled it to take advantage of competitive disruptions and expand market share. Because Trustmark is not a subprime lender, the home mortgage and home equity loan portfolios continued to perform well.
Disciplined expense management and investments for the future
| · | Noninterest expense remained below $70 million target for fourth consecutive quarter |
| · | Efficiency ratio improved to 56.6% |
| · | Four banking centers scheduled to open during remainder of year |
In the first quarter of 2008, noninterest expense totaled $69.8 million, marking the fourth consecutive quarter below our $70 million target. Our success in this regard was the result of on-going technology enhancements, vendor and contract management programs, and human capital management and is reflected in an improved efficiency ratio of 56.6%. While we are pleased with our progress to date, we are committed to identifying additional reengineering and efficiency opportunities to enhance shareholder value.
Trustmark continued to make investments to support revenue growth and profitability as well as reallocate resources to areas with additional growth potential. Thus far in 2008, Trustmark has opened a total of two new banking centers in the Houston and Memphis markets. Four additional banking centers are scheduled to open over the course of the year in the Biloxi, Houston, Jackson and Panama City markets.
ADDITIONAL INFORMATION
As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 23 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) 397-0300, passcode 4682748 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, April 30 in archived format at the same web address or by calling (888) 203-1112, passcode 4682748.
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 are not statements of historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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.
These risks could cause actual results to differ materially from current expectations of Management and include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, material changes in market interest rates, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, changes in existing regulations or the adoption of new regulations, natural disasters, acts of war or terrorism, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of Trustmark’s borrowers, the 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 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 Contacts: | | |
| Investors: | Louis E. Greer | Joseph Rein | |
| | Treasurer and | First Vice President | |
| | Principal Financial Officer | 601-208-6898 | |
| | 601-208-2310 | | |
| | | | |
| Media: | Melanie A. Morgan | | |
| | First Vice President | | |
| | 601-208-2979 | | |
 | TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
| | | | | | | | | | | | Linked Quarter | | | Year over Year | |
| QUARTERLY AVERAGE BALANCES | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | | | $ Change | | | % Change | | | $ Change | | | % Change | |
| Securities AFS-taxable | | $ | 353,079 | | | $ | 435,438 | | | $ | 681,885 | | | $ | (82,359 | ) | | | -18.9 | % | | $ | (328,806 | ) | | | -48.2 | % |
| Securities AFS-nontaxable | | | 36,241 | | | | 46,898 | | | | 54,815 | | | | (10,657 | ) | | | -22.7 | % | | | (18,574 | ) | | | -33.9 | % |
| Securities HTM-taxable | | | 189,604 | | | | 192,878 | | | | 198,286 | | | | (3,274 | ) | | | -1.7 | % | | | (8,682 | ) | | | -4.4 | % |
| Securities HTM-nontaxable | | | 81,559 | | | | 82,963 | | | | 89,988 | | | | (1,404 | ) | | | -1.7 | % | | | (8,429 | ) | | | -9.4 | % |
| Total securities | | | 660,483 | | | | 758,177 | | | | 1,024,974 | | | | (97,694 | ) | | | -12.9 | % | | | (364,491 | ) | | | -35.6 | % |
| Loans | | | 7,177,233 | | | | 7,149,243 | | | | 6,663,620 | | | | 27,990 | | | | 0.4 | % | | | 513,613 | | | | 7.7 | % |
| Fed funds sold and rev repos | | | 22,921 | | | | 25,960 | | | | 74,076 | | | | (3,039 | ) | | | -11.7 | % | | | (51,155 | ) | | | -69.1 | % |
| Total earning assets | | | 7,860,637 | | | | 7,933,380 | | | | 7,762,670 | | | | (72,743 | ) | | | -0.9 | % | | | 97,967 | | | | 1.3 | % |
| Allowance for loan losses | | | (80,998 | ) | | | (73,659 | ) | | | (72,452 | ) | | | (7,339 | ) | | | 10.0 | % | | | (8,546 | ) | | | 11.8 | % |
| Cash and due from banks | | | 259,392 | | | | 257,319 | | | | 345,974 | | | | 2,073 | | | | 0.8 | % | | | (86,582 | ) | | | -25.0 | % |
| Other assets | | | 812,680 | | | | 807,307 | | | | 778,595 | | | | 5,373 | | | | 0.7 | % | | | 34,085 | | | | 4.4 | % |
| Total assets | | $ | 8,851,711 | | | $ | 8,924,347 | | | $ | 8,814,787 | | | $ | (72,636 | ) | | | -0.8 | % | | $ | 36,924 | | | | 0.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 1,233,892 | | | $ | 1,160,823 | | | $ | 1,195,515 | | | $ | 73,069 | | | | 6.3 | % | | $ | 38,377 | | | | 3.2 | % |
| Savings deposits | | | 1,755,048 | | | | 1,608,125 | | | | 1,785,162 | | | | 146,923 | | | | 9.1 | % | | | (30,114 | ) | | | -1.7 | % |
| Time deposits less than $100,000 | | | 1,577,753 | | | | 1,570,687 | | | | 1,616,916 | | | | 7,066 | | | | 0.4 | % | | | (39,163 | ) | | | -2.4 | % |
| Time deposits of $100,000 or more | | | 1,030,527 | | | | 1,058,165 | | | | 1,021,953 | | | | (27,638 | ) | | | -2.6 | % | | | 8,574 | | | | 0.8 | % |
| Total interest-bearing deposits | | | 5,597,220 | | | | 5,397,800 | | | | 5,619,546 | | | | 199,420 | | | | 3.7 | % | | | (22,326 | ) | | | -0.4 | % |
| Fed funds purchased and repos | | | 417,338 | | | | 517,424 | | | | 351,797 | | | | (100,086 | ) | | | -19.3 | % | | | 65,541 | | | | 18.6 | % |
| Short-term borrowings | | | 252,234 | | | | 413,676 | | | | 202,838 | | | | (161,442 | ) | | | -39.0 | % | | | 49,396 | | | | 24.4 | % |
| Subordinated notes | | | 49,712 | | | | 49,703 | | | | 49,680 | | | | 9 | | | | 0.0 | % | | | 32 | | | | 0.1 | % |
| Junior subordinated debt securities | | | 70,104 | | | | 70,104 | | | | 70,104 | | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % |
| Total interest-bearing liabilities | | | 6,386,608 | | | | 6,448,707 | | | | 6,293,965 | | | | (62,099 | ) | | | -1.0 | % | | | 92,643 | | | | 1.5 | % |
| Noninterest-bearing deposits | | | 1,390,843 | | | | 1,419,364 | | | | 1,495,447 | | | | (28,521 | ) | | | -2.0 | % | | | (104,604 | ) | | | -7.0 | % |
| Other liabilities | | | 141,741 | | | | 137,197 | | | | 127,264 | | | | 4,544 | | | | 3.3 | % | | | 14,477 | | | | 11.4 | % |
| Shareholders' equity | | | 932,519 | | | | 919,079 | | | | 898,111 | | | | 13,440 | | | | 1.5 | % | | | 34,408 | | | | 3.8 | % |
| Total liabilities and equity | | $ | 8,851,711 | | | $ | 8,924,347 | | | $ | 8,814,787 | | | $ | (72,636 | ) | | | -0.8 | % | | $ | 36,924 | | | | 0.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Linked Quarter | | | Year over Year | |
| PERIOD END BALANCES | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | | | $ Change | | | % Change | | | $ Change | | | % Change | |
| Securities available for sale | | $ | 585,746 | | | $ | 442,345 | | | $ | 703,296 | | | $ | 143,401 | | | | 32.4 | % | | $ | (117,550 | ) | | | -16.7 | % |
| Securities held to maturity | | | 267,315 | | | | 275,096 | | | | 286,040 | | | | (7,781 | ) | | | -2.8 | % | | | (18,725 | ) | | | -6.5 | % |
| Total securities | | | 853,061 | | | | 717,441 | | | | 989,336 | | | | 135,620 | | | | 18.9 | % | | | (136,275 | ) | | | -13.8 | % |
| Loans held for sale | | | 198,245 | | | | 147,508 | | | | 125,898 | | | | 50,737 | | | | 34.4 | % | | | 72,347 | | | | 57.5 | % |
| Loans | | | 7,012,034 | | | | 7,040,792 | | | | 6,626,515 | | | | (28,758 | ) | | | -0.4 | % | | | 385,519 | | | | 5.8 | % |
| Fed funds sold and rev repos | | | 16,022 | | | | 17,997 | | | | 104,900 | | | | (1,975 | ) | | | -11.0 | % | | | (88,878 | ) | | | -84.7 | % |
| Total earning assets | | | 8,079,362 | | | | 7,923,738 | | | | 7,846,649 | | | | 155,624 | | | | 2.0 | % | | | 232,713 | | | | 3.0 | % |
| Allowance for loan losses | | | (81,818 | ) | | | (79,851 | ) | | | (72,049 | ) | | | (1,967 | ) | | | 2.5 | % | | | (9,769 | ) | | | 13.6 | % |
| Cash and due from banks | | | 290,200 | | | | 292,983 | | | | 336,438 | | | | (2,783 | ) | | | -0.9 | % | | | (46,238 | ) | | | -13.7 | % |
| Mortgage servicing rights | | | 59,047 | | | | 67,192 | | | | 70,594 | | | | (8,145 | ) | | | -12.1 | % | | | (11,547 | ) | | | -16.4 | % |
| Goodwill | | | 291,210 | | | | 291,177 | | | | 290,246 | | | | 33 | | | | 0.0 | % | | | 964 | | | | 0.3 | % |
| Identifiable intangible assets | | | 27,030 | | | | 28,102 | | | | 31,744 | | | | (1,072 | ) | | | -3.8 | % | | | (4,714 | ) | | | -14.9 | % |
| Other assets | | | 432,122 | | | | 443,461 | | | | 389,715 | | | | (11,339 | ) | | | -2.6 | % | | | 42,407 | | | | 10.9 | % |
| Total assets | | $ | 9,097,153 | | | $ | 8,966,802 | | | $ | 8,893,337 | | | $ | 130,351 | | | | 1.5 | % | | $ | 203,816 | | | | 2.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing deposits | | $ | 1,475,976 | | | $ | 1,477,171 | | | $ | 1,522,066 | | | $ | (1,195 | ) | | | -0.1 | % | | $ | (46,090 | ) | | | -3.0 | % |
| Interest-bearing deposits | | | 5,868,359 | | | | 5,392,101 | | | | 5,792,236 | | | | 476,258 | | | | 8.8 | % | | | 76,123 | | | | 1.3 | % |
| Total deposits | | | 7,344,335 | | | | 6,869,272 | | | | 7,314,302 | | | | 475,063 | | | | 6.9 | % | | | 30,033 | | | | 0.4 | % |
| Fed funds purchased and repos | | | 433,431 | | | | 460,763 | | | | 289,798 | | | | (27,332 | ) | | | -5.9 | % | | | 143,633 | | | | 49.6 | % |
| Short-term borrowings | | | 93,453 | | | | 474,354 | | | | 167,831 | | | | (380,901 | ) | | | -80.3 | % | | | (74,378 | ) | | | -44.3 | % |
| Subordinated notes | | | 49,717 | | | | 49,709 | | | | 49,685 | | | | 8 | | | | 0.0 | % | | | 32 | | | | 0.1 | % |
| Junior subordinated debt securities | | | 70,104 | | | | 70,104 | | | | 70,104 | | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % |
| Other liabilities | | | 168,772 | | | | 122,964 | | | | 107,610 | | | | 45,808 | | | | 37.3 | % | | | 61,162 | | | | 56.8 | % |
| Total liabilities | | | 8,159,812 | | | | 8,047,166 | | | | 7,999,330 | | | | 112,646 | | | | 1.4 | % | | | 160,482 | | | | 2.0 | % |
| Common stock | | | 11,938 | | | | 11,933 | | | | 12,130 | | | | 5 | | | | 0.0 | % | | | (192 | ) | | | -1.6 | % |
| Surplus | | | 126,003 | | | | 124,161 | | | | 146,937 | | | | 1,842 | | | | 1.5 | % | | | (20,934 | ) | | | -14.2 | % |
| Retained earnings | | | 810,369 | | | | 797,993 | | | | 753,801 | | | | 12,376 | | | | 1.6 | % | | | 56,568 | | | | 7.5 | % |
Accum other comprehensive loss, net of tax | | | (10,969 | ) | | | (14,451 | ) | | | (18,861 | ) | | | 3,482 | | | | -24.1 | % | | | 7,892 | | | | -41.8 | % |
| Total shareholders' equity | | | 937,341 | | | | 919,636 | | | | 894,007 | | | | 17,705 | | | | 1.9 | % | | | 43,334 | | | | 4.8 | % |
| Total liabilities and equity | | $ | 9,097,153 | | | $ | 8,966,802 | | | $ | 8,893,337 | | | $ | 130,351 | | | | 1.5 | % | | $ | 203,816 | | | | 2.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | $ | 6,515,064 | | | $ | 6,447,031 | | | $ | 6,369,654 | | | $ | 68,033 | | | | 1.1 | % | | $ | 145,410 | | | | 2.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| See Notes to Consolidated Financials | 1 |
| | TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS |
| | | Quarter Ended | | | Linked Quarter | | | Year over Year | |
| | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | | | $ Change | | | % Change | | | $ Change | | | % Change | |
| Interest and fees on loans-FTE | | $ | 119,641 | | | $ | 133,088 | | | $ | 119,965 | | | $ | (13,447 | ) | | | -10.1 | % | | $ | (324 | ) | | | -0.3 | % |
| Interest on securities-taxable | | | 5,857 | | | | 6,505 | | | | 9,080 | | | | (648 | ) | | | -10.0 | % | | | (3,223 | ) | | | -35.5 | % |
| Interest on securities-tax exempt-FTE | | | 2,086 | | | | 2,352 | | | | 2,633 | | | | (266 | ) | | | -11.3 | % | | | (547 | ) | | | -20.8 | % |
| Interest on fed funds sold and rev repos | | | 179 | | | | 317 | | | | 976 | | | | (138 | ) | | | -43.5 | % | | | (797 | ) | | | -81.7 | % |
| Other interest income | | | 572 | | | | 501 | | | | 592 | | | | 71 | | | | 14.2 | % | | | (20 | ) | | | -3.4 | % |
| Total interest income-FTE | | | 128,335 | | | | 142,763 | | | | 133,246 | | | | (14,428 | ) | | | -10.1 | % | | | (4,911 | ) | | | -3.7 | % |
| Interest on deposits | | | 43,363 | | | | 47,911 | | | | 50,355 | | | | (4,548 | ) | | | -9.5 | % | | | (6,992 | ) | | | -13.9 | % |
| Interest on fed funds pch and repos | | | 3,073 | | | | 5,499 | | | | 3,813 | | | | (2,426 | ) | | | -44.1 | % | | | (740 | ) | | | -19.4 | % |
| Other interest expense | | | 4,829 | | | | 7,055 | | | | 4,583 | | | | (2,226 | ) | | | -31.6 | % | | | 246 | | | | 5.4 | % |
| Total interest expense | | | 51,265 | | | | 60,465 | | | | 58,751 | | | | (9,200 | ) | | | -15.2 | % | | | (7,486 | ) | | | -12.7 | % |
| Net interest income-FTE | | | 77,070 | | | | 82,298 | | | | 74,495 | | | | (5,228 | ) | | | -6.4 | % | | | 2,575 | | | | 3.5 | % |
| Provision for loan losses | | | 14,243 | | | | 17,001 | | | | 1,639 | | | | (2,758 | ) | | | -16.2 | % | | | 12,604 | | | | n/m | |
| Net interest income after provision-FTE | | | 62,827 | | | | 65,297 | | | | 72,856 | | | | (2,470 | ) | | | -3.8 | % | | | (10,029 | ) | | | -13.8 | % |
| Service charges on deposit accounts | | | 12,564 | | | | 13,908 | | | | 12,693 | | | | (1,344 | ) | | | -9.7 | % | | | (129 | ) | | | -1.0 | % |
| Insurance commissions | | | 8,256 | | | | 7,630 | | | | 8,772 | | | | 626 | | | | 8.2 | % | | | (516 | ) | | | -5.9 | % |
| Wealth management | | | 7,198 | | | | 6,969 | | | | 5,879 | | | | 229 | | | | 3.3 | % | | | 1,319 | | | | 22.4 | % |
| General banking - other | | | 5,788 | | | | 6,177 | | | | 6,170 | | | | (389 | ) | | | -6.3 | % | | | (382 | ) | | | -6.2 | % |
| Mortgage banking, net | | | 11,056 | | | | 4,967 | | | | 2,755 | | | | 6,089 | | | | n/m | | | | 8,301 | | | | n/m | |
| Other, net | | | 3,221 | | | | 2,604 | | | | 1,824 | | | | 617 | | | | 23.7 | % | | | 1,397 | | | | 76.6 | % |
| Nonint inc-excl sec gains, net | | | 48,083 | | | | 42,255 | | | | 38,093 | | | | 5,828 | | | | 13.8 | % | | | 9,990 | | | | 26.2 | % |
| Security gains, net | | | 433 | | | | 2 | | | | 58 | | | | 431 | | | | n/m | | | | 375 | | | | n/m | |
| Total noninterest income | | | 48,516 | | | | 42,257 | | | | 38,151 | | | | 6,259 | | | | 14.8 | % | | | 10,365 | | | | 27.2 | % |
| Salaries and employee benefits | | | 43,584 | | | | 42,446 | | | | 43,166 | | | | 1,138 | | | | 2.7 | % | | | 418 | | | | 1.0 | % |
| Services and fees | | | 9,430 | | | | 9,375 | | | | 9,558 | | | | 55 | | | | 0.6 | % | | | (128 | ) | | | -1.3 | % |
| Net occupancy-premises | | | 4,801 | | | | 4,716 | | | | 4,414 | | | | 85 | | | | 1.8 | % | | | 387 | | | | 8.8 | % |
| Equipment expense | | | 4,074 | | | | 4,165 | | | | 3,904 | | | | (91 | ) | | | -2.2 | % | | | 170 | | | | 4.4 | % |
| Other expense | | | 7,937 | | | | 9,020 | | | | 8,364 | | | | (1,083 | ) | | | -12.0 | % | | | (427 | ) | | | -5.1 | % |
| Total noninterest expense | | | 69,826 | | | | 69,722 | | | | 69,406 | | | | 104 | | | | 0.1 | % | | | 420 | | | | 0.6 | % |
| Income before income taxes and tax eq adj | | | 41,517 | | | | 37,832 | | | | 41,601 | | | | 3,685 | | | | 9.7 | % | | | (84 | ) | | | -0.2 | % |
| Tax equivalent adjustment | | | 2,321 | | | | 2,375 | | | | 2,553 | | | | (54 | ) | | | -2.3 | % | | | (232 | ) | | | -9.1 | % |
| Income before income taxes | | | 39,196 | | | | 35,457 | | | | 39,048 | | | | 3,739 | | | | 10.5 | % | | | 148 | | | | 0.4 | % |
| Income taxes | | | 13,017 | | | | 11,628 | | | | 13,191 | | | | 1,389 | | | | 11.9 | % | | | (174 | ) | | | -1.3 | % |
| Net income | | $ | 26,179 | | | $ | 23,829 | | | $ | 25,857 | | | $ | 2,350 | | | | 9.9 | % | | $ | 322 | | | | 1.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings per share - basic | | $ | 0.46 | | | $ | 0.42 | | | $ | 0.44 | | | $ | 0.04 | | | | 9.5 | % | | $ | 0.02 | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings per share - diluted | | $ | 0.46 | | | $ | 0.42 | | | $ | 0.44 | | | $ | 0.04 | | | | 9.5 | % | | $ | 0.02 | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.23 | | | $ | 0.23 | | | $ | 0.22 | | | $ | - | | | | 0.0 | % | | $ | 0.01 | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 57,283,240 | | | | 57,272,408 | | | | 58,508,335 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Diluted | | | 57,283,240 | | | | 57,341,472 | | | | 58,791,656 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period end shares outstanding | | | 57,296,449 | | | | 57,272,408 | | | | 58,217,983 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| n/m - percentage changes greater than +/- 100% are considered not meaningful | | | | | | | | | | | | | | | | | | |
| See Notes to Consolidated Financials | 2 |
| | TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION |
| | | Quarter Ended | | | Linked Quarter | | | Year over Year | |
| NONPERFORMING ASSETS | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | | | $ Change | | | % Change | | | $ Change | | | % Change | |
| Nonaccrual loans | | | | | | | | | | | | | | | | | | | | | |
| Florida | | $ | 49,654 | | | $ | 43,787 | | | $ | 4,947 | | | $ | 5,867 | | | | 13.4 | % | | $ | 44,707 | | | | n/m | |
| Mississippi (1) | | | 14,583 | | | | 13,723 | | | | 22,043 | | | | 860 | | | | 6.3 | % | | | (7,460 | ) | | | -33.8 | % |
| Tennessee (2) | | | 6,550 | | | | 4,431 | | | | 4,941 | | | | 2,119 | | | | 47.8 | % | | | 1,609 | | | | 32.6 | % |
| Texas | | | 7,207 | | | | 3,232 | | | | 5,130 | | | | 3,975 | | | | n/m | | | | 2,077 | | | | 40.5 | % |
| Total nonaccrual loans | | | 77,994 | | | | 65,173 | | | | 37,061 | | | | 12,821 | | | | 19.7 | % | | | 40,933 | | | | n/m | |
| Other real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Florida | | | 1,067 | | | | 995 | | | | - | | | | 72 | | | | 7.2 | % | | | 1,067 | | | | n/m | |
| Mississippi (1) | | | 1,741 | | | | 1,123 | | | | 844 | | | | 618 | | | | 55.0 | % | | | 883 | | | | n/m | |
| Tennessee (2) | | | 6,634 | | | | 6,084 | | | | 1,011 | | | | 550 | | | | 9.0 | % | | | 5,637 | | | | n/m | |
| Texas | | | 146 | | | | 146 | | | | 303 | | | | - | | | | n/m | | | | (157 | ) | | | -51.8 | % |
| Total other real estate | | | 9,588 | | | | 8,348 | | | | 2,158 | | | | 1,240 | | | | 14.9 | % | | | 7,430 | | | | n/m | |
| Total nonperforming assets | | | 87,582 | | | | 73,521 | | | | 39,219 | | | | 14,061 | | | | 19.1 | % | | | 48,363 | | | | n/m | |
| Loans past due over 90 days | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Included in loan portfolio | | | 4,986 | | | | 4,853 | | | | 3,583 | | | | 133 | | | | 2.7 | % | | | 1,403 | | | | 39.2 | % |
| Serviced GNMA loans eligible for repch | | | 15,868 | | | | 11,847 | | | | 6,336 | | | | 4,021 | | | | 33.9 | % | | | 9,532 | | | | n/m | |
| Total loans past due over 90 days | | | 20,854 | | | | 16,700 | | | | 9,919 | | | | 4,154 | | | | 24.9 | % | | | 10,935 | | | | n/m | |
| Total nonperforming assets plus past | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| due over 90 days | | $ | 108,436 | | | $ | 90,221 | | | $ | 49,138 | | | $ | 18,215 | | | | 20.2 | % | | $ | 59,298 | | | | n/m | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Linked Quarter | | | Year over Year | |
| ALLOWANCE FOR LOAN LOSSES | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | | | $ Change | | | % Change | | | $ Change | | | % Change | |
| Beginning Balance | | $ | 79,851 | | | $ | 72,368 | | | $ | 72,098 | | | $ | 7,483 | | | | 10.3 | % | | $ | 7,753 | | | | 10.8 | % |
| Provision for loan losses | | | 14,243 | | | | 17,001 | | | | 1,639 | | | | (2,758 | ) | | | -16.2 | % | | | 12,604 | | | | n/m | |
| Charge-offs | | | (15,176 | ) | | | (11,904 | ) | | | (4,282 | ) | | | (3,272 | ) | | | 27.5 | % | | | (10,894 | ) | | | n/m | |
| Recoveries | | | 2,900 | | | | 2,386 | | | | 2,594 | | | | 514 | | | | 21.5 | % | | | 306 | | | | 11.8 | % |
| Net charge-offs | | | (12,276 | ) | | | (9,518 | ) | | | (1,688 | ) | | | (2,758 | ) | | | 29.0 | % | | | (10,588 | ) | | | n/m | |
| Ending Balance | | $ | 81,818 | | | $ | 79,851 | | | $ | 72,049 | | | $ | 1,967 | | | | 2.5 | % | | $ | 9,769 | | | | 13.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CREDIT QUALITY RATIOS | | | | | | | | | |
| Net charge offs/average loans | | | 0.69 | % | | | 0.53 | % | | | 0.10 | % |
| Provision for loan losses/average loans | | | 0.80 | % | | | 0.94 | % | | | 0.10 | % |
| Nonperforming loans/total loans (incl LHFS) | | | 1.08 | % | | | 0.91 | % | | | 0.55 | % |
| Nonperforming assets/total loans (incl LHFS) | | | 1.21 | % | | | 1.02 | % | | | 0.58 | % |
| Nonperforming assets/total loans (incl LHFS) +ORE | | | 1.21 | % | | | 1.02 | % | | | 0.58 | % |
| ALL/total loans (excl LHFS) | | | 1.17 | % | | | 1.13 | % | | | 1.09 | % |
| ALL-commercial/total commercial loans | | | 1.52 | % | | | 1.48 | % | | | 1.47 | % |
| ALL-consumer/total consumer and home mortgage loans | | | 0.60 | % | | | 0.59 | % | | | 0.53 | % |
| ALL/nonperforming loans | | | 104.90 | % | | | 122.52 | % | | | 194.41 | % |
| | | | | | | | | | | | | |
| CAPITAL RATIOS | | | | | | | | | | | | |
| EOP equity/ EOP assets | | | 10.30 | % | | | 10.26 | % | | | 10.05 | % |
| Average equity/average assets | | | 10.53 | % | | | 10.30 | % | | | 10.19 | % |
| EOP tangible equity/EOP tangible assets | | | 7.05 | % | | | 6.94 | % | | | 6.67 | % |
| Tier 1 leverage ratio | | | 8.12 | % | | | 7.86 | % | | | 7.68 | % |
| Tier 1 risk-based capital ratio | | | 9.42 | % | | | 9.17 | % | | | 9.51 | % |
| Total risk-based capital ratio | | | 11.21 | % | | | 10.93 | % | | | 11.28 | % |
| | | | | | | | | | | | | |
| OTHER FINANCIAL DATA | | | | | | | | | | | | |
| ROA | | | 1.19 | % | | | 1.06 | % | | | 1.19 | % |
| ROE | | | 11.29 | % | | | 10.29 | % | | | 11.68 | % |
| Return on average tangible equity | | | 17.59 | % | | | 16.28 | % | | | 18.76 | % |
| Interest margin - Yield - FTE | | | 6.57 | % | | | 6.98 | % | | | 6.96 | % |
| Interest margin - Cost - FTE | | | 2.63 | % | | | 3.02 | % | | | 3.07 | % |
| Net interest margin - FTE | | | 3.94 | % | | | 3.95 | % | | | 3.89 | % |
| Rate on interest-bearing liabilities | | | 3.23 | % | | | 3.72 | % | | | 3.79 | % |
| Efficiency ratio | | | 56.64 | % | | | 56.80 | % | | | 61.89 | % |
| EOP Employees - FTE | | | 2,627 | | | | 2,612 | | | | 2,729 | |
| | | | | | | | | | | | | |
| COMMON STOCK PERFORMANCE | | | | | | | | | | | | |
| Market value-Close | | $ | 22.28 | | | $ | 25.36 | | | $ | 28.04 | |
| Book value | | $ | 16.36 | | | $ | 16.06 | | | $ | 15.36 | |
| Tangible book value | | $ | 10.81 | | | $ | 10.48 | | | $ | 9.83 | |
| Market/Book value | | | 136.19 | % | | | 157.91 | % | | | 182.55 | % |
| Market/Tangible book value | | | 206.20 | % | | | 241.98 | % | | | 285.38 | % |
| | | | | | | | | | | | | |
| (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 | 3 |
| | TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS |
Note 1 – Financial Performance Non-GAAP Disclosures
Management is presenting, in the accompanying table, adjustments to net income as reported in accordance with generally accepted accounting principles resulting from significant items occurring during the periods presented. Management believes this information will help users compare Trustmark’s current results to those of prior periods as presented in the table below.
| | | Quarter Ended | |
| | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | |
| | | Amount | | | Basic EPS | | | Amount | | | Basic EPS | | | Amount | | | Basic EPS | |
| | | | | | | | | | | | | | | | | | | |
| Net Income as reported-GAAP | | $ | 26,179 | | | $ | 0.457 | | | $ | 23,829 | | | $ | 0.416 | | | $ | 25,857 | | | $ | 0.442 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjustments (net of taxes): | | | | | | | | | | | | | | | | | | | | | | | | |
| Visa Litigation Contingency | | | (936 | ) | | | (0.016 | ) | | | 494 | | | | 0.009 | | | | - | | | | - | |
| Correction of Accounting Error | | | - | | | | - | | | | (1,989 | ) | | | (0.035 | ) | | | - | | | | - | |
| Hurricane Katrina | | | - | | | | - | | | | - | | | | - | | | | (665 | ) | | | (0.011 | ) |
| | | | (936 | ) | | | (0.016 | ) | | | (1,495 | ) | | | (0.026 | ) | | | (665 | ) | | | (0.011 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Income adjusted for specific items (Non-GAAP) | | $ | 25,243 | | | $ | 0.441 | | | $ | 22,334 | | | $ | 0.390 | | | $ | 25,192 | | | $ | 0.431 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Visa Litigation Contingency
In the first quarter of 2008, Trustmark recognized a gain of $1.5 million resulting from the Visa initial public offering. This gain more than offsets an accrual of $800 thousand that Trustmark recorded in the fourth quarter of 2007 for the Visa litigation contingency relating to the Visa USA Inc. antitrust lawsuit settlement with American Express and other pending Visa litigation (reflecting Trustmark’s share as a Visa member).
Correction of Accounting Error
Trustmark’s consolidated financial statements for the fourth quarter of 2007 included a pre-tax benefit of $3.2 million for the correction of an error relating to the amortization of deferred loan fees, which was included in interest income on loans. Trustmark’s Management as well as the Audit and Finance Committee of the Board of Directors reviewed this accounting error utilizing Securities and Exchange Commission Staff Accounting Bulletins (SAB) Nos. 99 and 108 and believe the impact of this error was not material to the 2007 or prior period consolidated financial statements.
Hurricane Katrina
In the third quarter of 2005, immediately following in the aftermath of Hurricane Katrina, Trustmark estimated possible pre-tax losses resulting from this storm of $11.7 million. Trustmark revised these estimates quarterly and any subsequent adjustments are reflected in the table above, net of taxes. At March 31, 2008, the allowance for loan losses included $564 thousand related to possible Hurricane Katrina losses.
Note 2 – Loan Composition and Allowance for Loan Losses
| LOANS BY TYPE | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | |
| Loans secured by real estate: | | | | | | | | | |
| Construction, land development and other land loans | | $ | 1,212,052 | | | $ | 1,194,940 | | | $ | 1,000,006 | |
| Secured by 1-4 family residential properties | | | 1,660,148 | | | | 1,694,757 | | | | 1,805,469 | |
| Secured by nonfarm, nonresidential properties | | | 1,315,449 | | | | 1,325,379 | | | | 1,233,710 | |
| Other real estate secured | | | 160,373 | | | | 167,610 | | | | 150,120 | |
| Commercial and industrial loans | | | 1,286,578 | | | | 1,283,014 | | | | 1,155,825 | |
| Consumer loans | | | 1,056,346 | | | | 1,087,337 | | | | 969,739 | |
| Other loans | | | 321,088 | | | | 287,755 | | | | 311,646 | |
| Loans | | | 7,012,034 | | | | 7,040,792 | | | | 6,626,515 | |
| Less Allowance for loan losses | | | 81,818 | | | | 79,851 | | | | 72,049 | |
| Net Loans | | $ | 6,930,216 | | | $ | 6,960,941 | | | $ | 6,554,466 | |
| See Notes to Consolidated Financials | 4 |
| | TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS |
| | | March 31, 2008 | |
| LOAN COMPOSITION BY REGION | | Total | | | Florida | | | Mississippi (Central and Southern Regions) | | | Tennessee (Memphis, TN and Northern MS Regions) | | | Texas | |
| Loans secured by real estate: | | | | | | | | | | | | | | | |
| Construction, land development and other land loans | | $ | 1,212,052 | | | $ | 371,187 | | | $ | 472,312 | | | $ | 118,346 | | | $ | 250,207 | |
| Secured by 1-4 family residential properties | | | 1,660,148 | | | | 95,664 | | | | 1,348,258 | | | | 177,571 | | | | 38,655 | |
| Secured by nonfarm, nonresidential properties | | | 1,315,449 | | | | 179,658 | | | | 714,570 | | | | 196,103 | | | | 225,118 | |
| Other real estate secured | | | 160,373 | | | | 12,388 | | | | 120,034 | | | | 9,204 | | | | 18,747 | |
| Commercial and industrial loans | | | 1,286,578 | | | | 22,850 | | | | 887,765 | | | | 72,802 | | | | 303,161 | |
| Consumer loans | | | 1,056,346 | | | | 2,604 | | | | 1,004,490 | | | | 34,123 | | | | 15,129 | |
| Other loans | | | 321,088 | | | | 8,201 | | | | 291,544 | | | | 16,837 | | | | 4,506 | |
| Loans | | $ | 7,012,034 | | | $ | 692,552 | | | $ | 4,838,973 | | | $ | 624,986 | | | $ | 855,523 | |
| CONSTRUCTION AND LAND DEVELOPMENT LOANS BY REGION | | | | | | | | | | | | | | | |
| Lots | | $ | 138,572 | | | $ | 91,163 | | | $ | 27,396 | | | $ | 5,785 | | | $ | 14,228 | |
| Development | | | 242,656 | | | | 52,009 | | | | 93,360 | | | | 14,973 | | | | 82,314 | |
| Unimproved land | | | 351,792 | | | | 134,428 | | | | 146,024 | | | | 36,037 | | | | 35,303 | |
| 1-4 family construction | | | 222,894 | | | | 46,170 | | | | 93,740 | | | | 18,050 | | | | 64,934 | |
| Other construction | | | 256,138 | | | | 47,417 | | | | 111,792 | | | | 43,501 | | | | 53,428 | |
| Construction and land development loans | | $ | 1,212,052 | | | $ | 371,187 | | | $ | 472,312 | | | $ | 118,346 | | | $ | 250,207 | |
ALLOWANCE FOR LOAN LOSSES
The rollforward of the allowance for loan losses is included in the consolidated financial information. The allowance for loan losses is maintained at a level believed adequate by Management, based on estimated probable losses within the existing loan portfolio. Trustmark’s allowance for probable loan loss methodology is based on guidance provided in SAB No. 102, “Selected Loan Loss Allowance Methodology and Documentation Issues,” as well as on other regulatory guidance. Accordingly, Trustmark’s methodology is based on historical loss experience by type of loan and internal risk ratings, homogeneous risk pools and specific loss allocations, with adjustments considering current economic events and conditions. The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors, in compliance with the Interagency Policy Statement on the Allowance for Loan and Lease Losses published by the governmental regulating agencies for financial services companies. Trustmark’s allocation of its allowance for loan losses represented 1.52% of commercial loans and 0.60% of consumer and home mortgage loans, resulting in an allowance of 1.17% at March 31, 2008, up from 1.13% at December 31, 2007.
The provision for loan losses and net charge-offs by region are presented in the table below:
| PROVISION FOR LOAN LOSSES AND NET CHARGE-OFFS BY REGION | | Total | | | Florida | | | Mississippi (Central and Southern Regions) | | | Tennessee (Memphis, TN and Northern MS Regions) | | | Texas | |
| Provision for loan losses for the quarter ended: | | | | | | | | | | | | | | | |
| March 31, 2008 | | $ | 14,243 | | | $ | 9,557 | | | $ | 2,807 | | | $ | 779 | | | $ | 1,100 | |
| December 31, 2007 | | | 17,001 | | | | 12,523 | | | | 2,724 | | | | 1,056 | | | | 698 | |
| March 31, 2007 | | | 1,639 | | | | 94 | | | | 1,202 | | | | (4 | ) | | | 347 | |
| Net charge-offs for the quarter ended: | | | | | | | | | | | | | | | | | | | | |
| March 31, 2008 | | $ | 12,276 | | | $ | 9,688 | | | $ | 1,574 | | | $ | 186 | | | $ | 828 | |
| December 31, 2007 | | | 9,518 | | | | 3,665 | | | | 3,999 | | | | 1,284 | | | | 570 | |
| March 31, 2007 | | | 1,688 | | | | 99 | | | | 1,235 | | | | 1 | | | | 353 | |
| See Notes to Consolidated Financials | 5 |
| | TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS |
Note 3 – Mortgage Banking
Trustmark utilizes derivative instruments to offset changes in the fair value of mortgage servicing rights (MSR) attributable to changes in interest rates. Changes in the fair value of the derivative instrument are recorded in mortgage banking income, net and are offset by the changes in the fair value of MSR, as shown in the accompanying table. MSR fair values represent the effect of present value decay and the effect of changes in interest rates. Ineffectiveness of hedging MSR fair value is measured by comparing total hedge cost to the fair value of the MSR asset attributable to market changes. The impact of implementing this strategy resulted in a net positive ineffectiveness of $7.4 million, $2.0 million and $268 thousand for the quarters ended March 31, 2008, December 31, 2007 and March 31, 2007, respectively.
The following table illustrates the components of mortgage banking income included in noninterest income in the accompanying income statements:
| | | Quarter Ended | |
| | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | |
| Mortgage servicing income, net | | $ | 3,747 | | | $ | 3,725 | | | $ | 3,478 | |
| Change in fair value-MSR from market changes | | | (10,193 | ) | | | (8,143 | ) | | | (447 | ) |
| Change in fair value of derivatives | | | 17,599 | | | | 10,123 | | | | 715 | |
| Change in fair value-MSR from runoff | | | (2,430 | ) | | | (2,064 | ) | | | (2,104 | ) |
| Gain on sales of loans | | | 1,078 | | | | 1,594 | | | | 1,345 | |
| Other, net | | | 1,255 | | | | (268 | ) | | | (232 | ) |
| Mortgage banking, net | | $ | 11,056 | | | $ | 4,967 | | | $ | 2,755 | |
Note 4 – Earning Assets and Interest-Bearing Liabilities
The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:
| | | Quarter Ended | |
| | | 3/31/2008 | | | 12/31/2007 | | | 3/31/2007 | |
| Securities – Taxable | | | 4.34 | % | | | 4.11 | % | | | 4.18 | % |
| Securities - Nontaxable | | | 7.12 | % | | | 7.19 | % | | | 7.37 | % |
| Securities – Total | | | 4.84 | % | | | 4.63 | % | | | 4.63 | % |
| Loans | | | 6.70 | % | | | 7.21 | % | | | 7.30 | % |
| FF Sold & Rev Repo | | | 3.14 | % | | | 4.84 | % | | | 5.34 | % |
| Total Earning Assets | | | 6.57 | % | | | 6.98 | % | | | 6.96 | % |
| | | | | | | | | | | | | |
| Interest-bearing Deposits | | | 3.12 | % | | | 3.52 | % | | | 3.63 | % |
| FF Pch & Repo | | | 2.96 | % | | | 4.22 | % | | | 4.40 | % |
| Borrowings | | | 5.22 | % | | | 5.25 | % | | | 5.76 | % |
| Total Interest-bearing Liabilities | | | 3.23 | % | | | 3.72 | % | | | 3.79 | % |
| | | | | | | | | | | | | |
| Net interest margin | | | 3.94 | % | | | 3.95 | % | | | 3.89 | % |
As discussed in Note 1, Trustmark corrected an accounting error in its consolidated financial statements resulting in a pre-tax benefit of $3.2 million for the quarter ended December 31, 2007. This error correction has been excluded in the table above. Including this error correction, Trustmark’s loan yield for the quarter ended December 31, 2007 was 7.39%, while the net interest margin for the same time period was 4.12%.
| See Notes to Consolidated Financials | 6 |
