Trustmark (TRMK) 8-K Trustmark Corporation Announces Second Quarter 2015 Financial Results

  News Release

Trustmark Corporation Announces Second Quarter 2015 Financial Results

JACKSON, Miss. – July 28, 2015 – Trustmark Corporation (NASDAQ:TRMK) reported net income of $30.6 million in the second quarter of 2015, which represented diluted earnings per share of $0.45.  Trustmark’s performance during the second quarter of 2015 produced a return on average tangible equity of 12.05% and a return on average assets of 1.01%.  During the first six months of 2015, Trustmark’s net income totaled $59.8 million, which represented diluted earnings per share of $0.88.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable September 15, 2015, to shareholders of record on September 1, 2015.

Second Quarter Highlights

● Revenue totaled $142.5 million, a 7.8% annualized increase from the prior quarter; efficiency ratio improved linked quarter to 66.00%  

● Net interest income (FTE) totaled $100.9 million; net interest margin excluding acquired loans expanded from the prior quarter to 3.49%

● Noninterest income increased 7.5% from the prior quarter, reflecting diversified growth across Trustmark’s fee-income businesses

● Continued solid credit performance; nonaccrual loans declined 11.1% from the prior quarter

Gerard R. Host, President and CEO, stated, “Trustmark’s financial performance reflects the value of our diversified financial services businesses.  We experienced solid loan growth in our Alabama and Texas markets.  Noninterest income increased 7.5% linked quarter, resulting from strong growth across our fee-income businesses.  During the quarter, we expanded our mortgage-production capabilities with the addition of ten mortgage producers in Mobile and Florence, Alabama, as well as Pensacola and Destin, Florida.  Noninterest expense remained well-controlled and credit quality remained strong, both of which continued to be important contributors to our financial success.  Thanks to our associates, solid profitability and strong capital base, Trustmark remains well-positioned to continue to add value to the customers, clients, communities and shareholders we serve.”

Balance Sheet Management

● Legacy loan growth in Alabama and Texas markets of $66.3 million, offset in part by reductions in Mississippi, Florida and Tennessee markets of $33.1 million

● Average earning assets and deposits remained stable at $10.6 billion and $9.8 billion, respectively

● Capital base provides opportunity to support additional growth

Loans held for investment totaled $6.4 billion at June 30, 2015, an increase of $33.2 million, or 0.5%, from the prior quarter and an increase of $260.1 million, or 4.2%, from one year earlier.  Loans secured by nonfarm, nonresidential real estate increased by $50.1 million linked quarter as growth in Texas, Alabama and Mississippi was partially offset by declines in Florida and Tennessee.  The single-family mortgage portfolio expanded by $23.9 million due principally to growth in the Mississippi and Alabama markets.  Other loans, which include loans to nonprofits and real estate investment trusts, increased $7.1 million, reflecting growth in Texas, Alabama, Florida and Tennessee.  Commercial and industrial loans declined $9.1 million as growth in Tennessee, Alabama and Florida was more than offset by paydowns in the Mississippi market.  Loans to states and other political subdivisions decreased by $40.1 million, while construction, land development and other land loans decreased $9.2 million, reflecting in part migration of balances to loans secured by nonfarm, nonresidential real estate and other loans secured by real estate.

Acquired loans totaled $466.4 million at June 30, 2015, down $32.0 million from the prior quarter.  Collectively, loans held for investment and acquired loans totaled $6.9 billion at June 30, 2015, up $1.2 million from the prior quarter.

Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses.  At June 30, 2015, Trustmark’s tangible equity to tangible assets ratio was 8.93%, while its total risk-based capital ratio was 15.07%.  Tangible book value per share was $15.58 at June 30, 2015, up 5.4% from the prior year.

Credit Quality

● Continued improvement in classified loan balances

● Nonperforming assets declined 4.8% linked quarter and 10.6% year-over-year

● Annualized net charge-offs totaled seven basis points of average loans in the second quarter

Classified loans continued to reflect steady improvement.  Relative to the prior quarter, Trustmark's classified loan balances declined 1.8%; when compared to the prior year, classified loan balances declined 11.0%.

Nonperforming assets declined $8.0 million, or 4.8%, from the prior quarter and $18.9 million, or 10.6%, from the comparable period one year earlier.  The decline during the quarter was attributable to a reduction in nonaccrual loans, while the year-over-year decline was attributable to both a reduction in nonaccrual loans and other real estate.

Allocation of Trustmark's $71.2 million allowance for loan losses represented 1.30% of commercial loans and 0.59% of consumer and home mortgage loans, resulting in an allowance to total loans held for investment of 1.10% at June 30, 2015, representing a level management considers commensurate with the inherent risk in the loan portfolio.  The allowance for loan losses represented 192.6% of nonperforming loans, excluding impaired loans at June 30, 2015.

All of the above credit quality metrics exclude acquired loans and other real estate covered by FDIC loss-share agreement.

Revenue Generation

● Net interest income (FTE) remained stable compared to the prior quarter; net interest margin excluding acquired loans expanded linked quarter to 3.49%

● Noninterest income increased 7.5% from the prior quarter; insurance commissions and service charges on deposit accounts increased 9.1% and 7.5%, respectively, from the prior quarter

Revenue in the second quarter increased 2.0%, or 7.8% annualized, from the prior quarter to $142.5 million, continuing to reflect Trustmark’s diversified business model.  Net interest income (FTE) in the second quarter totaled $100.9 million, resulting in a net interest margin of 3.81%.  Compared to results in the prior quarter, interest income (FTE) benefited from increased income on both the held for investment and held for sale loan portfolio as well as the securities portfolio, but was offset by lower interest and fees on acquired loans.  The yield on acquired loans in the second quarter totaled 10.43% and included recoveries from settlement of debt of $3.6 million, which represented approximately 2.97% of the annualized total acquired loan yield.  Excluding acquired loans, the net interest margin in the second quarter totaled 3.49%, up from 3.47% in the prior quarter.

Noninterest income totaled $45.5 million in the second quarter, an increase of 7.5% from the prior quarter and an increase of 3.2% from levels one year earlier.  Service charges on deposit accounts increased 7.5% linked quarter, rebounding from a seasonal reduction in fees in the prior quarter.  Bank card and other fees increased 9.7% from the prior quarter as a result of increased interchange income and fees on interest rate swaps for commercial loan customers.  Other income, net improved $622 thousand linked quarter due to gains associated with bank-owned life insurance in the second quarter and a previously disclosed loss on the disposition of a branch location in the prior quarter. The improvements in other income, net were partially offset by FDIC indemnification asset write-downs due to continued improvement in credit quality of acquired covered loans and dispositions of covered other real estate.

Insurance revenue in the second quarter totaled $9.4 million, an increase of 9.1% from the prior quarter and 13.3% from levels one year earlier.  The solid performance this quarter was primarily due to growth in the commercial property and casualty line of business, resulting from both a continued focus on new business and development of new production staff.  Wealth management revenue totaled $7.8 million, down $232 thousand, or 2.9%, due in part to lower income from brokerage commissions and retirement plan services.

Mortgage banking revenue in the second quarter totaled $9.5 million, up 5.8% and 53.1% from levels in the prior quarter and year, respectively.  The increase in mortgage revenue from the prior quarter primarily reflects favorable mortgage servicing hedge ineffectiveness and expanded secondary marketing gains.  Mortgage loan production in the second quarter totaled $416.9 million, up 36.9% from the prior quarter and 29.4% from levels one year earlier.

Noninterest Expense

● Noninterest expense totaled $100.3 million, up 1.1% from the prior quarter and down 2.4% from the prior year

● Efficiency ratio improved linked quarter to 66.00%

● During the first six months of the year, Trustmark closed or consolidated six banking offices and opened two new banking offices in markets with higher growth opportunities

Excluding ORE expense and intangible amortization of $2.9 million, noninterest expense totaled $97.4 million, an increase of $1.3 million, or 1.3%, from comparable expenses in the prior quarter.  Salaries and benefits totaled $57.4 million in the second quarter, up 0.4% on a linked quarter basis due primarily to increased commissions from higher mortgage production; in contrast, headcount, on a full-time equivalent basis, decreased by 49 and 106 from the prior quarter and year, respectively.  Services and fees increased $884 thousand from the prior quarter, reflecting additional legal and data processing expense.  ORE and foreclosure expense declined $194 thousand and $2.9 million from the prior quarter and year, respectively.  Other expense increased $480 thousand relative to the prior quarter due principally to higher loan expense.

Trustmark also continued the optimization of its retail delivery channels to enhance productivity and efficiency as well as promote additional revenue growth.  During the second quarter, Trustmark completed the previously announced consolidation of five banking offices and announced plans to consolidate two additional offices in the third quarter of 2015.  Separately, Trustmark expanded its mortgage-banking platform with the addition of a new mortgage loan-production office in Florence, Alabama, while opening new banking offices in Spanish Fort and Inverness, Alabama.  In July, Trustmark opened a mortgage loan-production office in Pensacola, Florida.  Trustmark is committed to investments that support profitable revenue growth as well as reengineering and efficiency opportunities to enhance shareholder value.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, July 29, 2015, 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) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com, which will also include a slide presentation Management will review during the conference call.  A replay of the conference call will also be available through Wednesday, August 12, 2015, in archived format at the same web address or by calling (877) 344-7529, passcode 10068030.

Trustmark Corporation is a financial services company providing banking and financial solutions through 201 offices in Alabama, 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 as well as 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 relating to the European financial system, 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 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, changes in our compensation and benefit plans, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, natural disasters, environmental disasters, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission.

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.

Trustmark Investor Contacts:                                                                                                

Louis E. Greer                                                                                                

Treasurer and                                                                                                

Principal Financial Officer                                                                                     

601-208-2310

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

Trustmark Media Contact:

Melanie A. Morgan

Senior Vice President

601-208-2979
 

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	6/30/2015			3/31/2015			6/30/2014			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	2,255,485		$	2,190,344		$	2,205,352		$	65,141			3.0	%	$	50,133			2.3	%
Securities AFS-nontaxable		120,330			127,623			135,956			(7,293	)		-5.7	%		(15,626	)		-11.5	%
Securities HTM-taxable		1,143,273			1,119,979			1,120,448			23,294			2.1	%		22,825			2.0	%
Securities HTM-nontaxable		38,173			41,405			43,551			(3,232	)		-7.8	%		(5,378	)		-12.3	%
Total securities		3,557,261			3,479,351			3,505,307			77,910			2.2	%		51,954			1.5	%
Loans (including loans held for sale)		6,554,739			6,561,430			6,160,781			(6,691	)		-0.1	%		393,958			6.4	%
Acquired loans:
Noncovered loans		462,418			502,534			664,733			(40,116	)		-8.0	%		(202,315	)		-30.4	%
Covered loans		20,574			23,593			31,122			(3,019	)		-12.8	%		(10,548	)		-33.9	%
Fed funds sold and rev repos		557			217			2,648			340			n/m			(2,091	)		-79.0	%
Other earning assets		41,242			46,368			36,259			(5,126	)		-11.1	%		4,983			13.7	%
Total earning assets		10,636,791			10,613,493			10,400,850			23,298			0.2	%		235,941			2.3	%
Allowance for loan losses		(84,331	)		(81,993	)		(77,652	)		(2,338	)		2.9	%		(6,679	)		8.6	%
Cash and due from banks		272,292			290,251			304,441			(17,959	)		-6.2	%		(32,149	)		-10.6	%
Other assets		1,288,507			1,303,552			1,343,384			(15,045	)		-1.2	%		(54,877	)		-4.1	%
Total assets	$	12,113,259		$	12,125,303		$	11,971,023		$	(12,044	)		-0.1	%	$	142,236			1.2	%
Interest-bearing demand deposits	$	1,924,447		$	1,847,374		$	1,826,019		$	77,073			4.2	%	$	98,428			5.4	%
Savings deposits		3,226,380			3,252,586			3,260,634			(26,206	)		-0.8	%		(34,254	)		-1.1	%
Time deposits less than $100,000		1,101,477			1,139,912			1,225,706			(38,435	)		-3.4	%		(124,229	)		-10.1	%
Time deposits of $100,000 or more		751,129			785,715			911,531			(34,586	)		-4.4	%		(160,402	)		-17.6	%
Total interest-bearing deposits		7,003,433			7,025,587			7,223,890			(22,154	)		-0.3	%		(220,457	)		-3.1	%
Fed funds purchased and repos		497,606			421,206			387,289			76,400			18.1	%		110,317			28.5	%
Short-term borrowings		128,761			256,714			59,465			(127,953	)		-49.8	%		69,296			n/m
Long-term FHLB advances		1,213			1,243			8,291			(30	)		-2.4	%		(7,078	)		-85.4	%
Subordinated notes		49,947			49,939			49,915			8			0.0	%		32			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			-			0.0	%		-			0.0	%
Total interest-bearing liabilities		7,742,816			7,816,545			7,790,706			(73,729	)		-0.9	%		(47,890	)		-0.6	%
Noninterest-bearing deposits		2,772,741			2,741,945			2,676,907			30,796			1.1	%		95,834			3.6	%
Other liabilities		143,201			129,844			111,170			13,357			10.3	%		32,031			28.8	%
Total liabilities		10,658,758			10,688,334			10,578,783			(29,576	)		-0.3	%		79,975			0.8	%
Shareholders' equity		1,454,501			1,436,969			1,392,240			17,532			1.2	%		62,261			4.5	%
Total liabilities and equity	$	12,113,259		$	12,125,303		$	11,971,023		$	(12,044	)		-0.1	%	$	142,236			1.2	%
										Linked Quarter						Year over Year
PERIOD END BALANCES	6/30/2015			3/31/2015			6/30/2014			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	255,050		$	335,244		$	322,960		$	(80,194	)		-23.9	%	$	(67,910	)		-21.0	%
Fed funds sold and rev repos		-			-			5,000			-			n/m			(5,000	)		-100.0	%
Securities available for sale		2,446,383			2,381,459			2,376,431			64,924			2.7	%		69,952			2.9	%
Securities held to maturity		1,190,161			1,184,554			1,156,790			5,607			0.5	%		33,371			2.9	%
Loans held for sale (LHFS)		147,539			150,365			142,103			(2,826	)		-1.9	%		5,436			3.8	%
Loans held for investment (LHFI)		6,447,073			6,413,876			6,187,000			33,197			0.5	%		260,073			4.2	%
Allowance for loan losses		(71,166	)		(71,321	)		(66,648	)		155			-0.2	%		(4,518	)		6.8	%
Net LHFI		6,375,907			6,342,555			6,120,352			33,352			0.5	%		255,555			4.2	%
Acquired loans:
Noncovered loans		447,160			478,172			616,911			(31,012	)		-6.5	%		(169,751	)		-27.5	%
Covered loans		19,239			20,271			29,628			(1,032	)		-5.1	%		(10,389	)		-35.1	%
Allowance for loan losses, acquired loans		(12,629	)		(11,837	)		(11,179	)		(792	)		6.7	%		(1,450	)		13.0	%
Net acquired loans		453,770			486,606			635,360			(32,836	)		-6.7	%		(181,590	)		-28.6	%
Net LHFI and acquired loans		6,829,677			6,829,161			6,755,712			516			0.0	%		73,965			1.1	%
Premises and equipment, net		196,220			198,039			201,639			(1,819	)		-0.9	%		(5,419	)		-2.7	%
Mortgage servicing rights		71,422			62,903			65,049			8,519			13.5	%		6,373			9.8	%
Goodwill		365,500			365,500			365,500			-			0.0	%		-			0.0	%
Identifiable intangible assets		32,042			31,250			37,506			792			2.5	%		(5,464	)		-14.6	%
Other real estate, excluding covered other real estate		90,748			90,175			106,970			573			0.6	%		(16,222	)		-15.2	%
Covered other real estate		3,755			4,794			3,872			(1,039	)		-21.7	%		(117	)		-3.0	%
FDIC indemnification asset		2,632			4,743			10,866			(2,111	)		-44.5	%		(8,234	)		-75.8	%
Other assets		551,319			540,977			569,598			10,342			1.9	%		(18,279	)		-3.2	%
Total assets	$	12,182,448		$	12,179,164		$	12,119,996		$	3,284			0.0	%	$	62,452			0.5	%
Deposits:
Noninterest-bearing	$	2,819,171		$	2,936,875		$	2,729,199		$	(117,704	)		-4.0	%	$	89,972			3.3	%
Interest-bearing		6,973,003			6,970,115			7,131,167			2,888			0.0	%		(158,164	)		-2.2	%
Total deposits		9,792,174			9,906,990			9,860,366			(114,816	)		-1.2	%		(68,192	)		-0.7	%
Fed funds purchased and repos		477,462			523,187			559,316			(45,725	)		-8.7	%		(81,854	)		-14.6	%
Short-term borrowings		201,744			50,570			61,227			151,174			n/m			140,517			n/m
Long-term FHLB advances		1,204			1,222			8,236			(18	)		-1.5	%		(7,032	)		-85.4	%
Subordinated notes		49,953			49,944			49,920			9			0.0	%		33			0.1	%
Junior subordinated debt securities		61,856			61,856			61,856			-			0.0	%		-			0.0	%
Other liabilities		147,646			139,311			119,184			8,335			6.0	%		28,462			23.9	%
Total liabilities		10,732,039			10,733,080			10,720,105			(1,041	)		0.0	%		11,934			0.1	%
Common stock		14,076			14,076			14,051			-			0.0	%		25			0.2	%
Capital surplus		359,533			358,583			353,196			950			0.3	%		6,337			1.8	%
Retained earnings		1,117,993			1,103,077			1,063,201			14,916			1.4	%		54,792			5.2	%
Accum other comprehensive
loss, net of tax		(41,193	)		(29,652	)		(30,557	)		(11,541	)		38.9	%		(10,636	)		34.8	%
Total shareholders' equity		1,450,409			1,446,084			1,399,891			4,325			0.3	%		50,518			3.6	%
Total liabilities and equity	$	12,182,448		$	12,179,164		$	12,119,996		$	3,284			0.0	%	$	62,452			0.5	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands except per share data) (unaudited)

	Quarter Ended									Linked Quarter						Year over Year
INCOME STATEMENTS	6/30/2015			3/31/2015			6/30/2014			$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	71,546		$	69,658		$	69,618		$	1,888			2.7	%	$	1,928			2.8	%
Interest and fees on acquired loans		12,557			15,078			23,250			(2,521	)		-16.7	%		(10,693	)		-46.0	%
Interest on securities-taxable		19,731			19,586			19,522			145			0.7	%		209			1.1	%
Interest on securities-tax exempt-FTE		1,688			1,789			1,912			(101	)		-5.6	%		(224	)		-11.7	%
Interest on fed funds sold and rev repos		2			-			6			2			n/m			(4	)		-66.7	%
Other interest income		392			393			379			(1	)		-0.3	%		13			3.4	%
Total interest income-FTE		105,916			106,504			114,687			(588	)		-0.6	%		(8,771	)		-7.6	%
Interest on deposits		3,204			3,247			3,970			(43	)		-1.3	%		(766	)		-19.3	%
Interest on fed funds pch and repos		179			143			110			36			25.2	%		69			62.7	%
Other interest expense		1,614			1,649			1,375			(35	)		-2.1	%		239			17.4	%
Total interest expense		4,997			5,039			5,455			(42	)		-0.8	%		(458	)		-8.4	%
Net interest income-FTE		100,919			101,465			109,232			(546	)		-0.5	%		(8,313	)		-7.6	%
Provision for loan losses, LHFI		1,033			1,785			351			(752	)		-42.1	%		682			n/m
Provision for loan losses, acquired loans		825			347			3,784			478			n/m			(2,959	)		-78.2	%
Net interest income after provision-FTE		99,061			99,333			105,097			(272	)		-0.3	%		(6,036	)		-5.7	%
Service charges on deposit accounts		11,920			11,085			11,846			835			7.5	%		74			0.6	%
Insurance commissions		9,401			8,616			8,300			785			9.1	%		1,101			13.3	%
Wealth management		7,758			7,990			7,710			(232	)		-2.9	%		48			0.6	%
Bank card and other fees		7,416			6,762			9,894			654			9.7	%		(2,478	)		-25.0	%
Mortgage banking, net		9,481			8,965			6,191			516			5.8	%		3,290			53.1	%
Other, net		(433	)		(1,055	)		199			622			59.0	%		(632	)		n/m
Nonint inc-excl sec gains (losses), net		45,543			42,363			44,140			3,180			7.5	%		1,403			3.2	%
Security gains (losses), net		-			-			-			-			n/m			-			n/m
Total noninterest income		45,543			42,363			44,140			3,180			7.5	%		1,403			3.2	%
Salaries and employee benefits		57,393			57,169			56,134			224			0.4	%		1,259			2.2	%
Services and fees		15,005			14,121			14,543			884			6.3	%		462			3.2	%
Net occupancy-premises		6,243			6,191			6,413			52			0.8	%		(170	)		-2.7	%
Equipment expense		5,903			5,974			6,136			(71	)		-1.2	%		(233	)		-3.8	%
FDIC assessment expense		2,615			2,940			2,468			(325	)		-11.1	%		147			6.0	%
ORE/Foreclosure expense		921			1,115			3,836			(194	)		-17.4	%		(2,915	)		-76.0	%
Other expense		12,186			11,706			13,231			480			4.1	%		(1,045	)		-7.9	%
Total noninterest expense		100,266			99,216			102,761			1,050			1.1	%		(2,495	)		-2.4	%
Income before income taxes and tax eq adj		44,338			42,480			46,476			1,858			4.4	%		(2,138	)		-4.6	%
Tax equivalent adjustment		3,970			4,073			3,944			(103	)		-2.5	%		26			0.7	%
Income before income taxes		40,368			38,407			42,532			1,961			5.1	%		(2,164	)		-5.1	%
Income taxes		9,766			9,259			9,635			507			5.5	%		131			1.4	%
Net income	$	30,602		$	29,148		$	32,897		$	1,454			5.0	%	$	(2,295	)		-7.0	%
Per share data
Earnings per share - basic	$	0.45		$	0.43		$	0.49		$	0.02			4.7	%	$	(0.04	)		-8.2	%
Earnings per share - diluted	$	0.45		$	0.43		$	0.49		$	0.02			4.7	%	$	(0.04	)		-8.2	%
Dividends per share	$	0.23		$	0.23		$	0.23		$	-			0.0	%	$	-			0.0	%
Weighted average shares outstanding
Basic		67,556,825			67,525,791			67,439,659
Diluted		67,685,449			67,639,326			67,582,714
Period end shares outstanding		67,557,395			67,556,591			67,439,788
OTHER FINANCIAL DATA
Return on equity		8.44	%		8.23	%		9.48	%
Return on average tangible equity		12.05	%		11.86	%		13.90	%
Return on assets		1.01	%		0.97	%		1.10	%
Interest margin - Yield - FTE		3.99	%		4.07	%		4.42	%
Interest margin - Cost		0.19	%		0.19	%		0.21	%
Net interest margin - FTE		3.81	%		3.88	%		4.21	%
Efficiency ratio (1)		66.00	%		66.46	%		64.31	%
Full-time equivalent employees		2,989			3,038			3,095
STOCK PERFORMANCE
Market value-Close	$	24.98		$	24.28		$	24.69
Book value	$	21.47		$	21.41		$	20.76
Tangible book value	$	15.58		$	15.53		$	14.78
(1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of
partnership tax credits, amortization of purchased intangibles, and nonroutine income and expense items.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS(1)	6/30/2015			3/31/2015			6/30/2014			$ Change			% Change			$ Change			% Change
Nonaccrual loans
Alabama	$	713		$	902		$	80		$	(189	)		-21.0	%	$	633			n/m
Florida		7,892			8,179			11,041			(287	)		-3.5	%		(3,149	)		-28.5	%
Mississippi (2)		52,051			52,145			49,430			(94	)		-0.2	%		2,621			5.3	%
Tennessee (3)		5,468			4,197			4,244			1,271			30.3	%		1,224			28.8	%
Texas		2,314			11,585			6,323			(9,271	)		-80.0	%		(4,009	)		-63.4	%
Total nonaccrual loans		68,438			77,008			71,118			(8,570	)		-11.1	%		(2,680	)		-3.8	%
Other real estate
Alabama		21,849			21,795			24,541			54			0.2	%		(2,692	)		-11.0	%
Florida		31,059			34,746			43,207			(3,687	)		-10.6	%		(12,148	)		-28.1	%
Mississippi (2)		14,094			15,143			18,723			(1,049	)		-6.9	%		(4,629	)		-24.7	%
Tennessee (3)		9,707			10,072			12,073			(365	)		-3.6	%		(2,366	)		-19.6	%
Texas		14,039			8,419			8,426			5,620			66.8	%		5,613			66.6	%
Total other real estate		90,748			90,175			106,970			573			0.6	%		(16,222	)		-15.2	%
Total nonperforming assets	$	159,186		$	167,183		$	178,088		$	(7,997	)		-4.8	%	$	(18,902	)		-10.6	%
LOANS PAST DUE OVER 90 DAYS(4)
LHFI	$	1,771		$	1,413		$	1,936		$	358			25.3	%	$	(165	)		-8.5	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	11,987		$	7,584		$	21,810		$	4,403			58.1	%	$	(9,823	)		-45.0	%
	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES (4)	6/30/2015			3/31/2015			6/30/2014			$ Change			% Change			$ Change			% Change
Beginning Balance	$	71,321		$	69,616		$	67,518		$	1,705			2.4	%	$	3,803			5.6	%
Provision for loan losses		1,033			1,785			351			(752	)		-42.1	%		682			n/m
Charge-offs		(4,278	)		(3,004	)		(3,820	)		(1,274	)		42.4	%		(458	)		12.0	%
Recoveries		3,090			2,924			2,599			166			5.7	%		491			18.9	%
Net (charge-offs) recoveries		(1,188	)		(80	)		(1,221	)		(1,108	)		n/m			33			-2.7	%
Ending Balance	$	71,166		$	71,321		$	66,648		$	(155	)		-0.2	%	$	4,518			6.8	%
PROVISION FOR LOAN LOSSES (4)
Alabama	$	623		$	761		$	696		$	(138	)		-18.1	%	$	(73	)		-10.5	%
Florida		(1,168	)		1,833			(2,014	)		(3,001	)		n/m			846			-42.0	%
Mississippi (2)		2,046			(2,729	)		2,877			4,775			n/m			(831	)		-28.9	%
Tennessee (3)		(483	)		1,432			(277	)		(1,915	)		n/m			(206	)		74.4	%
Texas		15			488			(931	)		(473	)		-96.9	%		946			n/m
Total provision for loan losses	$	1,033		$	1,785		$	351		$	(752	)		-42.1	%	$	682			n/m
NET CHARGE-OFFS (4)
Alabama	$	216		$	144		$	84		$	72			50.0	%	$	132			n/m
Florida		539			(28	)		(525	)		567			n/m			1,064			n/m
Mississippi (2)		1,028			143			1,518			885			n/m			(490	)		-32.3	%
Tennessee (3)		105			(216	)		87			321			n/m			18			20.7	%
Texas		(700	)		37			57			(737	)		n/m			(757	)		n/m
Total net charge-offs (recoveries)	$	1,188		$	80		$	1,221		$	1,108			n/m		$	(33	)		-2.7	%
CREDIT QUALITY RATIOS(1)
Net charge-offs/average loans		0.07	%		0.00	%		0.08	%
Provision for loan losses/average loans		0.06	%		0.11	%		0.02	%
Nonperforming loans/total loans (incl LHFS)		1.04	%		1.17	%		1.12	%
Nonperforming assets/total loans (incl LHFS)		2.41	%		2.55	%		2.81	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.38	%		2.51	%		2.77	%
ALL/total loans (excl LHFS)		1.10	%		1.11	%		1.08	%
ALL-commercial/total commercial loans		1.30	%		1.30	%		1.20	%
ALL-consumer/total consumer and home mortgage loans		0.59	%		0.61	%		0.75	%
ALL/nonperforming loans		103.99	%		92.62	%		93.71	%
ALL/nonperforming loans -
(excl impaired loans)		192.60	%		205.52	%		159.71	%
CAPITAL RATIOS
Total equity/total assets		11.91	%		11.87	%		11.55	%
Tangible equity/tangible assets		8.93	%		8.91	%		8.51	%
Tangible equity/risk-weighted assets		12.34	%		12.34	%		12.19	%
Tier 1 leverage ratio		10.14	%		9.99	%		9.43	%
Tier 1 common risk-based capital ratio		13.28	%		13.14	%		12.61	%
Tier 1 risk-based capital ratio		13.97	%		13.83	%		13.34	%
Total risk-based capital ratio		15.07	%		14.92	%		14.54	%
(1) - Excludes acquired loans and covered other real estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes acquired loans
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited)

	Quarter Ended															Six Months Ended
AVERAGE BALANCES	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
Securities AFS-taxable	$	2,255,485		$	2,190,344		$	2,204,361		$	2,202,020		$	2,205,352		$	2,223,094		$	2,171,062
Securities AFS-nontaxable		120,330			127,623			129,403			131,305			135,956			123,956			142,812
Securities HTM-taxable		1,143,273			1,119,979			1,117,989			1,126,309			1,120,448			1,131,690			1,119,602
Securities HTM-nontaxable		38,173			41,405			42,040			43,114			43,551			39,780			37,330
Total securities		3,557,261			3,479,351			3,493,793			3,502,748			3,505,307			3,518,520			3,470,806
Loans (including loans held for sale)		6,554,739			6,561,430			6,494,369			6,387,251			6,160,781			6,558,066			6,056,331
Acquired loans:
Noncovered loans		462,418			502,534			544,260			585,675			664,733			482,365			707,988
Covered loans		20,574			23,593			27,039			28,971			31,122			22,075			32,456
Fed funds sold and rev repos		557			217			1,269			4,228			2,648			388			4,543
Other earning assets		41,242			46,368			48,224			41,871			36,259			43,791			36,538
Total earning assets		10,636,791			10,613,493			10,608,954			10,550,744			10,400,850			10,625,205			10,308,662
Allowance for loan losses		(84,331	)		(81,993	)		(82,851	)		(78,227	)		(77,652	)		(83,168	)		(78,688	)
Cash and due from banks		272,292			290,251			284,754			272,925			304,441			281,222			355,476
Other assets		1,288,507			1,303,552			1,317,217			1,345,771			1,343,384			1,295,989			1,359,614
Total assets	$	12,113,259		$	12,125,303		$	12,128,074		$	12,091,213		$	11,971,023		$	12,119,248		$	11,945,064
Interest-bearing demand deposits	$	1,924,447		$	1,847,374		$	1,815,999		$	1,808,710		$	1,826,019		$	1,886,123		$	1,863,056
Savings deposits		3,226,380			3,252,586			2,963,771			3,050,743			3,260,634			3,239,411			3,227,053
Time deposits less than $100,000		1,101,477			1,139,912			1,152,622			1,187,794			1,225,706			1,120,588			1,252,958
Time deposits of $100,000 or more		751,129			785,715			838,309			874,333			911,531			768,326			929,421
Total interest-bearing deposits		7,003,433			7,025,587			6,770,701			6,921,580			7,223,890			7,014,448			7,272,488
Fed funds purchased and repos		497,606			421,206			526,482			540,870			387,289			459,617			335,341
Short-term borrowings		128,761			256,714			385,841			181,114			59,465			192,384			62,222
Long-term FHLB advances		1,213			1,243			2,652			8,050			8,291			1,228			8,348
Subordinated notes		49,947			49,939			49,931			49,923			49,915			49,943			49,911
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		7,742,816			7,816,545			7,797,463			7,763,393			7,790,706			7,779,476			7,790,166
Noninterest-bearing deposits		2,772,741			2,741,945			2,762,332			2,774,745			2,676,907			2,757,428			2,653,973
Other liabilities		143,201			129,844			146,011			140,218			111,170			136,561			120,906
Total liabilities		10,658,758			10,688,334			10,705,806			10,678,356			10,578,783			10,673,465			10,565,045
Shareholders' equity		1,454,501			1,436,969			1,422,268			1,412,857			1,392,240			1,445,783			1,380,019
Total liabilities and equity	$	12,113,259		$	12,125,303		$	12,128,074		$	12,091,213		$	11,971,023		$	12,119,248		$	11,945,064
PERIOD END BALANCES	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014
Cash and due from banks	$	255,050		$	335,244		$	315,973		$	237,497		$	322,960
Fed funds sold and rev repos		-			-			1,885			4,013			5,000
Securities available for sale		2,446,383			2,381,459			2,374,567			2,363,895			2,376,431
Securities held to maturity		1,190,161			1,184,554			1,170,685			1,169,640			1,156,790
Loans held for sale (LHFS)		147,539			150,365			132,196			135,562			142,103
Loans held for investment (LHFI)		6,447,073			6,413,876			6,449,469			6,333,651			6,187,000
Allowance for loan losses		(71,166	)		(71,321	)		(69,616	)		(70,134	)		(66,648	)
Net LHFI		6,375,907			6,342,555			6,379,853			6,263,517			6,120,352
Acquired loans:
Noncovered loans		447,160			478,172			525,783			564,542			616,911
Covered loans		19,239			20,271			23,626			27,607			29,628
Allowance for loan losses, acquired loans		(12,629	)		(11,837	)		(12,059	)		(11,949	)		(11,179	)
Net acquired loans		453,770			486,606			537,350			580,200			635,360
Net LHFI and acquired loans		6,829,677			6,829,161			6,917,203			6,843,717			6,755,712
Premises and equipment, net		196,220			198,039			200,781			200,474			201,639
Mortgage servicing rights		71,422			62,903			64,358			67,090			65,049
Goodwill		365,500			365,500			365,500			365,500			365,500
Identifiable intangible assets		32,042			31,250			33,234			35,357			37,506
Other real estate, excluding covered other real estate		90,748			90,175			92,509			97,037			106,970
Covered other real estate		3,755			4,794			6,060			4,146			3,872
FDIC indemnification asset		2,632			4,743			6,997			8,154			10,866
Other assets		551,319			540,977			568,685			564,234			569,598
Total assets	$	12,182,448		$	12,179,164		$	12,250,633		$	12,096,316		$	12,119,996
Deposits:
Noninterest-bearing	$	2,819,171		$	2,936,875		$	2,748,635		$	2,723,480		$	2,729,199
Interest-bearing		6,973,003			6,970,115			6,949,723			6,789,745			7,131,167
Total deposits		9,792,174			9,906,990			9,698,358			9,513,225			9,860,366
Fed funds purchased and repos		477,462			523,187			443,543			607,851			559,316
Short-term borrowings		201,744			50,570			425,077			316,666			61,227
Long-term FHLB advances		1,204			1,222			1,253			8,003			8,236
Subordinated notes		49,953			49,944			49,936			49,928			49,920
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
Other liabilities		147,646			139,311			150,670			123,689			119,184
Total liabilities		10,732,039			10,733,080			10,830,693			10,681,218			10,720,105
Common stock		14,076			14,076			14,060			14,051			14,051
Capital surplus		359,533			358,583			356,244			354,251			353,196
Retained earnings		1,117,993			1,103,077			1,092,120			1,081,161			1,063,201
Accum other comprehensive
loss, net of tax		(41,193	)		(29,652	)		(42,484	)		(34,365	)		(30,557	)
Total shareholders' equity		1,450,409			1,446,084			1,419,940			1,415,098			1,399,891
Total liabilities and equity	$	12,182,448		$	12,179,164		$	12,250,633		$	12,096,316		$	12,119,996
See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands except per share data) (unaudited)

	Quarter Ended															Six Months Ended
INCOME STATEMENTS	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
Interest and fees on LHFS & LHFI-FTE	$	71,546		$	69,658		$	70,775		$	70,197		$	69,618		$	141,204		$	135,803
Interest and fees on acquired loans		12,557			15,078			13,500			23,200			23,250			27,635			40,036
Interest on securities-taxable		19,731			19,586			21,694			19,712			19,522	��		39,317			38,742
Interest on securities-tax exempt-FTE		1,688			1,789			1,814			1,845			1,912			3,477			3,832
Interest on fed funds sold and rev repos		2			-			3			9			6			2			11
Other interest income		392			393			384			386			379			785			754
Total interest income-FTE		105,916			106,504			108,170			115,349			114,687			212,420			219,178
Interest on deposits		3,204			3,247			3,382			3,606			3,970			6,451			8,335
Interest on fed funds pch and repos		179			143			184			180			110			322			186
Other interest expense		1,614			1,649			1,510			1,425			1,375			3,263			2,738
Total interest expense		4,997			5,039			5,076			5,211			5,455			10,036			11,259
Net interest income-FTE		100,919			101,465			103,094			110,138			109,232			202,384			207,919
Provision for loan losses, LHFI		1,033			1,785			(1,393	)		3,058			351			2,818			(454	)
Provision for loan losses, acquired loans		825			347			1,179			1,145			3,784			1,172			3,847
Net interest income after provision-FTE		99,061			99,333			103,308			105,935			105,097			198,394			204,526
Service charges on deposit accounts		11,920			11,085			12,514			12,743			11,846			23,005			23,414
Insurance commissions		9,401			8,616			7,831			9,240			8,300			18,017			16,397
Wealth management		7,758			7,990			8,460			8,038			7,710			15,748			15,845
Bank card and other fees		7,416			6,762			6,712			7,279			9,894			14,178			18,975
Mortgage banking, net		9,481			8,965			5,918			5,842			6,191			18,446			13,020
Other, net		(433	)		(1,055	)		596			(160	)		199			(1,488	)		178
Nonint inc-excl sec gains (losses), net		45,543			42,363			42,031			42,982			44,140			87,906			87,829
Security gains (losses), net		-			-			-			(89	)		-			-			389
Total noninterest income		45,543			42,363			42,031			42,893			44,140			87,906			88,218
Salaries and employee benefits		57,393			57,169			57,159			56,675			56,134			114,562			112,860
Services and fees		15,005			14,121			14,401			14,489			14,543			29,126			27,708
Net occupancy-premises		6,243			6,191			6,632			6,817			6,413			12,434			13,019
Equipment expense		5,903			5,974			5,911			5,675			6,136			11,877			12,274
FDIC assessment expense		2,615			2,940			2,669			2,644			2,468			5,555			4,884
ORE/Foreclosure expense		921			1,115			3,240			930			3,836			2,036			7,151
Other expense		12,186			11,706			14,420			12,964			13,231			23,892			26,483
Total noninterest expense		100,266			99,216			104,432			100,194			102,761			199,482			204,379
Income before income taxes and tax eq adj		44,338			42,480			40,907			48,634			46,476			86,818			88,365
Tax equivalent adjustment		3,970			4,073			4,179			3,909			3,944			8,043			7,727
Income before income taxes		40,368			38,407			36,728			44,725			42,532			78,775			80,638
Income taxes		9,766			9,259			8,655			11,136			9,635			19,025			18,738
Net income	$	30,602		$	29,148		$	28,073		$	33,589		$	32,897		$	59,750		$	61,900
Per share data
Earnings per share - basic	$	0.45		$	0.43		$	0.42		$	0.50		$	0.49		$	0.88		$	0.92
Earnings per share - diluted	$	0.45		$	0.43		$	0.42		$	0.50		$	0.49		$	0.88		$	0.92
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.46		$	0.46
Weighted average shares outstanding
Basic		67,556,825			67,525,791			67,445,721			67,439,788			67,439,659			67,541,394			67,424,984
Diluted		67,685,449			67,639,326			67,633,637			67,608,612			67,582,714			67,662,757			67,566,640
Period end shares outstanding		67,557,395			67,556,591			67,481,992			67,439,788			67,439,788			67,557,395			67,439,788
OTHER FINANCIAL DATA
Return on equity		8.44	%		8.23	%		7.83	%		9.43	%		9.48	%		8.33	%		9.05	%
Return on average tangible equity		12.05	%		11.86	%		11.40	%		13.70	%		13.90	%		11.96	%		13.43	%
Return on assets		1.01	%		0.97	%		0.92	%		1.10	%		1.10	%		0.99	%		1.05	%
Interest margin - Yield - FTE		3.99	%		4.07	%		4.05	%		4.34	%		4.42	%		4.03	%		4.29	%
Interest margin - Cost		0.19	%		0.19	%		0.19	%		0.20	%		0.21	%		0.19	%		0.22	%
Net interest margin - FTE		3.81	%		3.88	%		3.86	%		4.14	%		4.21	%		3.84	%		4.07	%
Efficiency ratio (1)		66.00	%		66.46	%		69.16	%		62.80	%		64.31	%		66.23	%		66.24	%
Full-time equivalent employees		2,989			3,038			3,060			3,067			3,095
STOCK PERFORMANCE
Market value-Close	$	24.98		$	24.28		$	24.54		$	23.04		$	24.69
Book value	$	21.47		$	21.41		$	21.04		$	20.98		$	20.76
Tangible book value	$	15.58		$	15.53		$	15.13		$	15.04		$	14.78
(1) - The efficiency ratio is noninterest expense to total net interest income (FTE) and noninterest income, excluding security gains (losses), amortization of
partnership tax credits, amortization of purchased intangibles, and nonroutine income and expense items.
See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION June 30, 2015 ($ in thousands) (unaudited)

	Quarter Ended
NONPERFORMING ASSETS(1)	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014
Nonaccrual loans
Alabama	$	713		$	902		$	852		$	852		$	80
Florida		7,892			8,179			11,091			10,986			11,041
Mississippi (2)		52,051			52,145			57,129			65,751			49,430
Tennessee (3)		5,468			4,197			5,819			5,901			4,244
Texas		2,314			11,585			4,452			4,824			6,323
Total nonaccrual loans		68,438			77,008			79,343			88,314			71,118
Other real estate
Alabama		21,849			21,795			21,196			24,256			24,541
Florida		31,059			34,746			35,324			36,608			43,207
Mississippi (2)		14,094			15,143			17,397			16,419			18,723
Tennessee (3)		9,707			10,072			10,292			11,347			12,073
Texas		14,039			8,419			8,300			8,407			8,426
Total other real estate		90,748			90,175			92,509			97,037			106,970
Total nonperforming assets	$	159,186		$	167,183		$	171,852		$	185,351		$	178,088
LOANS PAST DUE OVER 90 DAYS(4)
LHFI	$	1,771		$	1,413		$	2,764		$	3,839		$	1,936
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	11,987		$	7,584		$	25,943		$	24,979		$	21,810
	Quarter Ended															Six Months Ended
ALLOWANCE FOR LOAN LOSSES (4)	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
Beginning Balance	$	71,321		$	69,616		$	70,134		$	66,648		$	67,518		$	69,616		$	66,448
Provision for loan losses		1,033			1,785			(1,393	)		3,058			351			2,818			(454	)
Charge-offs		(4,278	)		(3,004	)		(3,174	)		(3,216	)		(3,820	)		(7,282	)		(6,836	)
Recoveries		3,090			2,924			4,049			3,644			2,599			6,014			7,490
Net (charge-offs) recoveries		(1,188	)		(80	)		875			428			(1,221	)		(1,268	)		654
Ending Balance	$	71,166		$	71,321		$	69,616		$	70,134		$	66,648		$	71,166		$	66,648
PROVISION FOR LOAN LOSSES (4)
Alabama	$	623		$	761		$	283		$	1,093		$	696		$	1,384		$	1,168
Florida		(1,168	)		1,833			(66	)		(147	)		(2,014	)		665			(5,513	)
Mississippi (2)		2,046			(2,729	)		(3,065	)		4,679			2,877			(683	)		4,860
Tennessee (3)		(483	)		1,432			1,993			244			(277	)		949			(1,192	)
Texas		15			488			(538	)		(2,811	)		(931	)		503			223
Total provision for loan losses	$	1,033		$	1,785		$	(1,393	)	$	3,058		$	351		$	2,818		$	(454	)
NET CHARGE-OFFS (4)
Alabama	$	216		$	144		$	92		$	172		$	84		$	360		$	139
Florida		539			(28	)		(226	)		(89	)		(525	)		511			(3,049	)
Mississippi (2)		1,028			143			(880	)		462			1,518			1,171			2,194
Tennessee (3)		105			(216	)		325			48			87			(111	)		86
Texas		(700	)		37			(186	)		(1,021	)		57			(663	)		(24	)
Total net charge-offs (recoveries)	$	1,188		$	80		$	(875	)	$	(428	)	$	1,221		$	1,268		$	(654	)
CREDIT QUALITY RATIOS(1)
Net charge-offs/average loans		0.07	%		0.00	%		-0.05	%		-0.03	%		0.08	%		0.04	%		-0.02	%
Provision for loan losses/average loans		0.06	%		0.11	%		-0.09	%		0.19	%		0.02	%		0.09	%		-0.02	%
Nonperforming loans/total loans (incl LHFS)		1.04	%		1.17	%		1.21	%		1.37	%		1.12	%
Nonperforming assets/total loans (incl LHFS)		2.41	%		2.55	%		2.61	%		2.87	%		2.81	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.38	%		2.51	%		2.57	%		2.82	%		2.77	%
ALL/total loans (excl LHFS)		1.10	%		1.11	%		1.08	%		1.11	%		1.08	%
ALL-commercial/total commercial loans		1.30	%		1.30	%		1.23	%		1.26	%		1.20	%
ALL-consumer/total consumer and home mortgage loans		0.59	%		0.61	%		0.67	%		0.69	%		0.75	%
ALL/nonperforming loans		103.99	%		92.62	%		87.74	%		79.41	%		93.71	%
ALL/nonperforming loans -
(excl impaired loans)		192.60	%		205.52	%		180.95	%		178.81	%		159.71	%
CAPITAL RATIOS
Total equity/total assets		11.91	%		11.87	%		11.59	%		11.70	%		11.55	%
Tangible equity/tangible assets		8.93	%		8.91	%		8.62	%		8.67	%		8.51	%
Tangible equity/risk-weighted assets		12.34	%		12.34	%		12.17	%		12.24	%		12.19	%
Tier 1 leverage ratio		10.14	%		9.99	%		9.63	%		9.54	%		9.43	%
Tier 1 common risk-based capital ratio		13.28	%		13.14	%		12.75	%		12.74	%		12.61	%
Tier 1 risk-based capital ratio		13.97	%		13.83	%		13.47	%		13.47	%		13.34	%
Total risk-based capital ratio		15.07	%		14.92	%		14.56	%		14.70	%		14.54	%
(1) - Excludes acquired loans and covered other real estate
(2) - Mississippi includes Central and Southern Mississippi Regions
(3) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
(4) - Excludes acquired loans
See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited)

Note 1 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity ($ in thousands):

	6/30/2015		3/31/2015		12/31/2014		9/30/2014		6/30/2014
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	-	$	-	$	100	$	100	$	100
U.S. Government agency obligations
Issued by U.S. Government agencies		74,409		78,115		79,656		83,011		117,489
Issued by U.S. Government sponsored agencies		33,009		33,076		32,818		30,779		40,848
Obligations of states and political subdivisions		151,322		160,154		162,258		165,463		171,229
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		20,651		12,010		12,427		12,828		13,492
Issued by FNMA and FHLMC		185,651		195,470		204,441		213,420		225,229
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		1,662,476		1,646,710		1,661,833		1,603,138		1,543,619
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		290,398		225,826		189,334		221,641		229,283
Asset-backed securities and structured financial products		28,467		30,098		31,700		33,515		35,142
Total securities available for sale	$	2,446,383	$	2,381,459	$	2,374,567	$	2,363,895	$	2,376,431
SECURITIES HELD TO MATURITY
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	101,374	$	101,171	$	100,971	$	100,767	$	100,563
Obligations of states and political subdivisions		56,978		62,928		63,505		64,538		65,193
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		18,265		18,861		19,115		13,368		13,959
Issued by FNMA and FHLMC		10,965		11,341		11,437		11,816		12,165
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		838,989		842,827		834,176		836,966		822,444
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		163,590		147,426		141,481		142,185		142,466
Total securities held to maturity	$	1,190,161	$	1,184,554	$	1,170,685	$	1,169,640	$	1,156,790

During the fourth quarter of 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax). The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer.  At June 30, 2015, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive (loss) income in the accompanying balance sheet totaled approximately $37.3 million ($23.0 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of approximately 94% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited)

Note 2 – Loan Composition

LHFI BY TYPE (excluding acquired loans)	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014
Loans secured by real estate:
Construction, land development and other land loans	$	682,444		$	691,657		$	619,877		$	580,794		$	531,651
Secured by 1-4 family residential properties		1,637,933			1,613,993			1,634,397			1,625,480			1,581,859
Secured by nonfarm, nonresidential properties		1,567,035			1,516,895			1,553,193			1,560,901			1,544,516
Other real estate secured		240,056			233,322			253,787			239,819			250,383
Commercial and industrial loans		1,219,684			1,228,788			1,270,350			1,246,753			1,250,146
Consumer loans		165,215			161,535			167,964			168,813			165,372
State and other political subdivision loans		574,265			614,330			602,727			585,382			562,415
Other loans		360,441			353,356			347,174			325,709			300,658
LHFI		6,447,073			6,413,876			6,449,469			6,333,651			6,187,000
Allowance for loan losses		(71,166	)		(71,321	)		(69,616	)		(70,134	)		(66,648	)
Net LHFI	$	6,375,907		$	6,342,555		$	6,379,853		$	6,263,517		$	6,120,352

ACQUIRED NONCOVERED LOANS BY TYPE	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014
Loans secured by real estate:
Construction, land development and other land loans	$	50,867		$	51,363		$	58,309		$	64,808		$	75,353
Secured by 1-4 family residential properties		101,027			111,830			116,920			120,366			133,191
Secured by nonfarm, nonresidential properties		168,698			177,210			202,323			214,806			226,967
Other real estate secured		25,666			26,819			27,813			28,036			30,918
Commercial and industrial loans		73,732			81,261			88,256			103,185			114,212
Consumer loans		7,273			8,494			9,772			11,236			14,733
Other loans		19,897			21,195			22,390			22,105			21,537
Noncovered loans		447,160			478,172			525,783			564,542			616,911
Allowance for loan losses		(11,927	)		(11,106	)		(10,541	)		(11,136	)		(9,770	)
Net noncovered loans	$	435,233		$	467,066		$	515,242		$	553,406		$	607,141

ACQUIRED COVERED LOANS BY TYPE	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014
Loans secured by real estate:
Construction, land development and other land loans	$	904		$	1,447		$	1,197		$	1,721		$	2,130
Secured by 1-4 family residential properties		11,080			11,200			13,180			14,114			14,565
Secured by nonfarm, nonresidential properties		5,206			5,844			7,672			8,270			8,831
Other real estate secured		1,622			1,469			1,096			2,949			2,376
Commercial and industrial loans		371			255			277			327			336
Consumer loans		-			-			-			-			-
Other loans		56			56			204			226			1,390
Covered loans		19,239			20,271			23,626			27,607			29,628
Allowance for loan losses		(702	)		(731	)		(1,518	)		(813	)		(1,409	)
Net covered loans	$	18,537		$	19,540		$	22,108		$	26,794		$	28,219

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited)

Note 2 – Loan Composition (continued)
	June 30, 2015
LHFI - COMPOSITION BY REGION(1)	Total		Alabama		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	$	682,444	$	90,143	$	59,123	$	250,180	$	55,907	$	227,091
Secured by 1-4 family residential properties		1,637,933		51,114		50,074		1,400,973		118,877		16,895
Secured by nonfarm, nonresidential properties		1,567,035		127,686		163,491		771,774		147,094		356,990
Other real estate secured		240,056		16,920		5,630		143,176		17,932		56,398
Commercial and industrial loans		1,219,684		87,282		12,290		750,577		115,896		253,639
Consumer loans		165,215		17,228		2,594		125,937		16,886		2,570
State and other political subdivision loans		574,265		45,427		26,826		408,388		20,732		72,892
Other loans		360,441		22,861		19,707		237,846		38,742		41,285
Loans	$	6,447,073	$	458,661	$	339,735	$	4,088,851	$	532,066	$	1,027,760
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION(1)
Lots	$	46,755	$	5,766	$	21,435	$	13,767	$	2,297	$	3,490
Development		52,087		7,610		5,471		29,861		796		8,349
Unimproved land		113,535		8,061		21,608		46,250		21,915		15,701
1-4 family construction		144,864		24,526		10,127		69,343		1,941		38,927
Other construction		325,203		44,180		482		90,959		28,958		160,624
Construction, land development and other land loans	$	682,444	$	90,143	$	59,123	$	250,180	$	55,907	$	227,091
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION (1)
Income producing:
Retail	$	212,385	$	36,496	$	35,661	$	71,404	$	21,084	$	47,740
Office		205,966		15,924		38,868		77,619		6,225		67,330
Nursing homes/assisted living		76,658		-		-		70,847		5,811		-
Hotel/motel		110,620		11,372		18,477		37,192		33,472		10,107
Industrial		43,212		5,325		5,795		11,316		1,091		19,685
Health care		25,319		2,174		-		23,126		19		-
Convenience stores		13,471		239		-		7,356		1,180		4,696
Other		154,628		6,257		19,021		69,527		3,089		56,734
Total income producing loans		842,259		77,787		117,822		368,387		71,971		206,292
Owner-occupied:
Office		114,409		7,234		17,756		57,401		7,887		24,131
Churches		94,059		3,967		2,791		47,170		30,108		10,023
Industrial warehouses		129,256		3,776		2,659		68,110		11,419		43,292
Health care		110,329		13,310		8,182		59,034		10,044		19,759
Convenience stores		66,751		463		1,492		49,544		2,914		12,338
Retail		36,774		2,305		5,396		22,629		3,369		3,075
Restaurants		33,161		1,946		1,908		23,960		3,928		1,419
Auto dealerships		13,473		7,629		80		4,439		1,313		12
Other		126,564		9,269		5,405		71,100		4,141		36,649
Total owner-occupied loans		724,776		49,899		45,669		403,387		75,123		150,698
Loans secured by nonfarm, nonresidential properties	$	1,567,035	$	127,686	$	163,491	$	771,774	$	147,094	$	356,990
(1) Excludes acquired loans.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited)

Note 3 – Yields on 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															Six Months Ended
	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
Securities – taxable		2.33	%		2.40	%		2.59	%		2.35	%		2.35	%		2.36	%		2.37	%
Securities – nontaxable		4.27	%		4.29	%		4.20	%		4.20	%		4.27	%		4.28	%		4.29	%
Securities – total		2.42	%		2.49	%		2.67	%		2.44	%		2.45	%		2.45	%		2.47	%
Loans - LHFI & LHFS		4.38	%		4.31	%		4.32	%		4.36	%		4.53	%		4.34	%		4.52	%
Acquired loans		10.43	%		11.62	%		9.38	%		14.98	%		13.40	%		11.05	%		10.90	%
Loans - total		4.79	%		4.85	%		4.73	%		5.29	%		5.43	%		4.82	%		5.22	%
FF sold & rev repo		1.44	%		0.00	%		0.94	%		0.84	%		0.91	%		1.04	%		0.49	%
Other earning assets		3.81	%		3.44	%		3.16	%		3.66	%		4.19	%		3.61	%		4.16	%
Total earning assets		3.99	%		4.07	%		4.05	%		4.34	%		4.42	%		4.03	%		4.29	%
Interest-bearing deposits		0.18	%		0.19	%		0.20	%		0.21	%		0.22	%		0.19	%		0.23	%
FF pch & repo		0.14	%		0.14	%		0.14	%		0.13	%		0.11	%		0.14	%		0.11	%
Other borrowings		2.68	%		1.81	%		1.20	%		1.88	%		3.07	%		2.15	%		3.03	%
Total interest-bearing liabilities		0.26	%		0.26	%		0.26	%		0.27	%		0.28	%		0.26	%		0.29	%
Net interest margin		3.81	%		3.88	%		3.86	%		4.14	%		4.21	%		3.84	%		4.07	%
Net interest margin excluding acquired loans		3.49	%		3.47	%		3.54	%		3.47	%		3.55	%		3.48	%		3.54	%

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets.  In addition, the table includes net interest margin excluding acquired loans, which equals reported net interest income-FTE excluding interest income on acquired loans, annualized, as a percent of average earning assets excluding average acquired loans.  The net interest margin decreased 7 basis points during the second quarter of 2015.  The decline in the net interest margin was primarily due to a $2.2 million decrease in accretion and recoveries on acquired loans during the second quarter of 2015.

The net interest margin, excluding acquired loans, increased 2 basis points to 3.49% during the second quarter of 2015 from a total of 3.47% during the first quarter of 2015.  During the fourth quarter of 2014, the net interest margin, excluding acquired loans as well as $2.2 million of yield maintenance payments on prepaid securities, totaled 3.46%.

Note 4 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates.  These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP).  Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR.  The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates.  Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions.  The impact of this strategy resulted in a net positive ineffectiveness of $2.1 million and $546 thousand for the quarters ended June 30, 2015 and 2014, respectively.

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

	Quarter Ended															Six Months Ended
	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
Mortgage servicing income, net	$	4,696		$	4,897		$	4,814		$	4,674		$	4,592		$	9,593		$	9,131
Change in fair value-MSR from runoff		(2,587	)		(2,213	)		(1,999	)		(2,364	)		(2,391	)		(4,800	)		(4,203	)
Gain on sales of loans, net		5,114			3,716			2,910			3,272			2,749			8,830			4,588
Other, net		206			1,245			132			(323	)		695			1,451			1,095
Mortgage banking income before hedge ineffectiveness		7,429			7,645			5,857			5,259			5,645			15,074			10,611
Change in fair value-MSR from market changes		6,076			(2,368	)		(4,142	)		700			(3,038	)		3,708			(3,761	)
Change in fair value of derivatives		(4,024	)		3,688			4,203			(117	)		3,584			(336	)		6,170
Net positive hedge ineffectiveness		2,052			1,320			61			583			546			3,372			2,409
Mortgage banking, net	$	9,481		$	8,965		$	5,918		$	5,842		$	6,191		$	18,446		$	13,020

During the first quarter of 2015, Trustmark exercised its option to repurchase delinquent loans serviced for GNMA. These loans were subsequently sold to a third party under different repurchase provisions. Trustmark retained the servicing for these loans, which are fully guaranteed by FHA/VA. As a result of this repurchase and sale, the loans are no longer carried as "LHFS-Guaranteed GNMA serviced loans" (see pages 3 and 6). The transaction resulted in a gain of $304 thousand, which was recorded during the first quarter of 2015 and is included in the table above as "Gain on sales of loans, net.”

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited)

Note 5 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented ($ in thousands):

	Quarter Ended															Six Months Ended
	6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
Partnership amortization for tax credit purposes	$	(2,480	)	$	(2,472	)	$	(2,806	)	$	(3,006	)	$	(3,006	)	$	(4,952	)	$	(6,012	)
Decrease in FDIC indemnification asset		(1,798	)		(970	)		(735	)		(452	)		(999	)		(2,768	)		(1,687	)
Increase in life insurance cash surrender value		1,673			1,675			1,693			1,702			1,857			3,348			3,945
Other miscellaneous income		2,172			712			2,444			1,596			2,347			2,884			3,932
Total other, net	$	(433	)	$	(1,055	)	$	596		$	(160	)	$	199		$	(1,488	)	$	178

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low income housing tax credits or historical tax credits).  These investments are recorded based on the equity method of accounting, which requires the equity in partnership losses to be recognized when incurred and are recorded as a reduction in other income.  The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

During the second quarter of 2015, other noninterest income included a write-down of the FDIC indemnification asset of $1.8 million on acquired covered loans and covered other real estate obtained from the Heritage Banking Group as a result of loan pay-offs, real estate sales, improved cash flow projections and valuation of covered other real estate.

Other noninterest expense consisted of the following for the periods presented ($ in thousands):

	Quarter Ended										Six Months Ended
	6/30/2015		3/31/2015		12/31/2014		9/30/2014		6/30/2014		6/30/2015		6/30/2014
Loan expense	$	3,342	$	2,721	$	3,312	$	3,070	$	3,107	$	6,063	$	6,571
Amortization of intangibles		1,959		1,991		2,123		2,150		2,190		3,950		4,483
Other miscellaneous expense		6,885		6,994		8,985		7,744		7,934		13,879		15,429
Total other expense	$	12,186	$	11,706	$	14,420	$	12,964	$	13,231	$	23,892	$	26,483

Note 6 – Non-GAAP Financial Measures

In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy.  Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations.  These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators.  Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios.  Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure. The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS June 30, 2015 ($ in thousands) (unaudited)

Note 6 - Non-GAAP Financial Measures (continued)
				Quarter Ended															Six Months Ended
				6/30/2015			3/31/2015			12/31/2014			9/30/2014			6/30/2014			6/30/2015			6/30/2014
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity				$	1,454,501		$	1,436,969		$	1,422,268		$	1,412,857		$	1,392,240		$	1,445,783		$	1,380,019
Less:	Goodwill				(365,500	)		(365,500	)		(365,500	)		(365,500	)		(365,500	)		(365,500	)		(369,090	)
	Identifiable intangible assets				(30,385	)		(32,398	)		(34,411	)		(36,553	)		(38,711	)		(31,386	)		(39,857	)
Total average tangible equity				$	1,058,616		$	1,039,071		$	1,022,357		$	1,010,804		$	988,029		$	1,048,897		$	971,072
PERIOD END BALANCES
Total shareholders' equity				$	1,450,409		$	1,446,084		$	1,419,940		$	1,415,098		$	1,399,891
Less:	Goodwill				(365,500	)		(365,500	)		(365,500	)		(365,500	)		(365,500	)
	Identifiable intangible assets				(32,042	)		(31,250	)		(33,234	)		(35,357	)		(37,506	)
Total tangible equity			(a)	$	1,052,867		$	1,049,334		$	1,021,206		$	1,014,241		$	996,885
TANGIBLE ASSETS
Total assets				$	12,182,448		$	12,179,164		$	12,250,633		$	12,096,316		$	12,119,996
Less:	Goodwill				(365,500	)		(365,500	)		(365,500	)		(365,500	)		(365,500	)
	Identifiable intangible assets				(32,042	)		(31,250	)		(33,234	)		(35,357	)		(37,506	)
Total tangible assets			(b)	$	11,784,906		$	11,782,414		$	11,851,899		$	11,695,459		$	11,716,990
Risk-weighted assets			(c)	$	8,530,144		$	8,503,102		$	8,387,799		$	8,287,608		$	8,175,622
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income				$	30,602		$	29,148		$	28,073		$	33,589		$	32,897		$	59,750		$	61,900
Plus:	Intangible amortization net of tax				1,210			1,229			1,312			1,328			1,353			2,439			2,770
Net income adjusted for intangible amortization				$	31,812		$	30,377		$	29,385		$	34,917		$	34,250		$	62,189		$	64,670
Period end common shares outstanding			(d)		67,557,395			67,556,591			67,481,992			67,439,788			67,439,788
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)					12.05	%		11.86	%		11.40	%		13.70	%		13.90	%		11.96	%		13.43	%
Tangible equity/tangible assets			(a)/(b)		8.93	%		8.91	%		8.62	%		8.67	%		8.51	%
Tangible equity/risk-weighted assets			(a)/(c)		12.34	%		12.34	%		12.17	%		12.24	%		12.19	%
Tangible book value			(a)/(d)*1,000	$	15.58		$	15.53		$	15.13		$	15.04		$	14.78
TIER 1 COMMON RISK-BASED CAPITAL - BASEL I
Total shareholders' equity										$	1,419,940		$	1,415,098		$	1,399,891
Eliminate qualifying AOCI											42,484			34,365			30,557
Qualifying tier 1 capital											60,000			60,000			60,000
Disallowed goodwill											(365,500	)		(365,500	)		(365,500	)
Adj to goodwill allowed for deferred taxes											15,855			15,503			15,150
Other disallowed intangibles											(33,234	)		(35,357	)		(37,506	)
Disallowed servicing intangible											(6,436	)		(6,709	)		(6,505	)
Disallowed deferred taxes											(3,479	)		(1,234	)		(5,134	)
Total tier 1 capital											1,129,630			1,116,166			1,090,953
Less:	Qualifying tier 1 capital										(60,000	)		(60,000	)		(60,000	)
Total tier 1 common capital			(e)							$	1,069,630		$	1,056,166		$	1,030,953
Tier 1 common risk-based capital ratio			(e)/(c)								12.75	%		12.74	%		12.61	%
COMMON EQUITY TIER 1 CAPITAL (CET1) - BASEL III
Total shareholders' equity				$	1,450,409		$	1,446,084
AOCI-related adjustments					41,193			29,652
CET1 adjustments and deductions:
	Goodwill net of associated deferred tax liabilities (DTLs)				(348,940	)		(349,292	)
	Other adjustments and deductions for CET1 (2)				(9,568	)		(9,104	)
		CET1  capital	(f)		1,133,094			1,117,340
	Additional tier 1 capital instruments plus related surplus				60,000			60,000
	Less:  additional tier 1 capital deductions				(1,571	)		(1,762	)
		Additional tier 1 capital			58,429			58,238
		Tier 1 capital		$	1,191,523		$	1,175,578
Tier 1 common risk-based capital ratio			(f)/(c)		13.28	%		13.14	%
(1) Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity
(2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAS), threshold deductions and transition adjustments, as applicable.