EXHIBIT 99.1
[OBJECT OMITTED] News Release
FOR IMMEDIATE RELEASE
January 21, 2003
Trustmark Announces Record Earnings of $121 Million in 2002
Earnings Per Share Increase 13.4%, Return on Equity reaches 17.9%
Jackson, Miss. - Trustmark Corporation (NASDAQ:TRMK) announced record
earnings of $121.1 million for the year ended December 31, 2002. Basic earnings
per share in 2002 were $1.95, up 13.4% compared to $1.72 in 2001. Trustmark's
performance during 2002 resulted in a return on average assets of 1.77% and a
return on average shareholders' equity of 17.93%. At December 31, 2002,
Trustmark reported total loans of $4.6 billion, total assets of $7.1 billion,
total deposits of $4.7 billion, and shareholders' equity of $680 million.
Basic earnings per share were $0.48 in the fourth quarter of 2002 comparing
favorably to $0.46 in the fourth quarter of 2001. Net income for the fourth
quarter of 2002 totaled $29.3 million. Trustmark's performance for the quarter
ended December 31, 2002, resulted in a return on average assets of 1.69% and a
return on average shareholders' equity of 17.12%.
Richard G. Hickson, Chairman and Chief Executive Officer, stated,
"Trustmark achieved continued success and made significant progress toward its
strategic objectives in 2002 despite a challenging economic and volatile
financial environment. We continued to implement and refine our strategic plan
to enhance shareholder value by providing solutions to meet the financial needs
of our customers. We realigned our consumer, commercial and investment
businesses, enhanced our product offerings and refined our delivery channels in
an effort to better serve our customers."
During 2002, Trustmark repurchased approximately 3.3 million shares of its
common stock, including approximately 1.2 million shares in the fourth quarter.
At December 31, 2002, Trustmark had authorization to repurchase up to an
additional 2.9 million shares. The share repurchase program is subject to market
conditions and management discretion and will continue to be implemented through
open market purchases or privately negotiated transactions.
Trustmark is a financial services company providing banking and financial
solutions through over 150 offices and 2,400 associates in Mississippi and
Tennessee. For additional financial information, visit Trustmark's web site at
www.trustmark.com.
# # # #
Investor Contacts: Zach Wasson, Executive Vice President and CFO 601-949-6816
Joseph Rein, First Vice President 601-949-6898
Media Contact: Gray Wiggers, Senior Vice President 601-354-5942
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2002
($ in thousands)
(unaudited)
Quarter Ended Dec. 31,
----------------------
AVERAGE BALANCES 2002 2001 $ Change % Change
- ---------------- ---------- ---------- --------- --------
Securities AFS-taxable $ 946,379 $ 961,937 $ (15,558) -1.6%
Securities AFS-nontaxable 74,723 96,191 (21,468) -22.3%
Securities HTM-taxable 491,306 760,677 (269,371) -35.4%
Securities HTM-nontaxable 89,903 90,382 (479) -0.5%
---------- ---------- ---------
Total securities 1,602,311 1,909,187 (306,876) -16.1%
---------- ---------- ---------
Loans 4,629,574 4,403,155 226,419 5.1%
Fed funds sold
and rev repos 23,133 15,332 7,801 50.9%
Trading account securities - 2 (2) -100.0%
---------- ---------- ---------
Total earning assets 6,255,018 6,327,676 (72,658) -1.1%
---------- ---------- ---------
Allowance for loan losses (75,334) (72,809) (2,525) 3.5%
Cash and due from banks 279,168 264,411 14,757 5.6%
Other assets 417,860 395,879 21,981 5.6%
---------- ---------- ---------
Total assets $6,876,712 $6,915,157 $ (38,445) -0.6%
========== ========== =========
Int-bearing demand dep $ 956,895 $ 816,943 $ 139,952 17.1%
Savings deposits 752,474 670,309 82,165 12.3%
Time deposits less
than $100,000 1,286,384 1,303,224 (16,840) -1.3%
Time deposits of $100,000
or more 476,520 543,722 (67,202) -12.4%
---------- ---------- ---------
Total interest-bearing dep 3,472,273 3,334,198 138,075 4.1%
Fed funds pch and repos 766,711 1,000,332 (233,621) -23.4%
Short-term borrowings 275,500 604,560 (329,060) -54.4%
Long-term FHLB advances 458,152 201,359 256,793 127.5%
---------- ---------- ---------
Total interest-bearing
liabilities 4,972,636 5,140,449 (167,813) -3.3%
Nonint-bearing deposits 1,155,741 1,048,675 107,066 10.2%
Other liabilities 68,125 60,863 7,262 11.9%
Shareholders' equity 680,210 665,170 15,040 2.3%
---------- ---------- ---------
Total liab and equity $6,876,712 $6,915,157 $ (38,445) -0.6%
========== ========== =========
Year-to-date Dec. 31,
----------------------
AVERAGE BALANCES 2002 2001 $ Change % Change
- ---------------- ---------- ---------- --------- --------
Securities AFS-taxable $ 885,070 $1,078,519 $(193,449) -17.9%
Securities AFS-nontaxable 81,883 91,750 (9,867) -10.8%
Securities HTM-taxable 588,193 835,946 (247,753) -29.6%
Securities HTM-nontaxable 89,698 90,867 (1,169) -1.3%
---------- ---------- ---------
Total securities 1,644,844 2,097,082 (452,238) -21.6%
---------- ---------- ---------
Loans 4,544,611 4,302,485 242,126 5.6%
Fed funds sold
and rev repos 26,264 24,629 1,635 6.6%
Trading account securities 11 69 (58) -84.1%
---------- ---------- ---------
Total earning assets 6,215,730 6,424,265 (208,535) -3.2%
---------- ---------- ---------
Allowance for loan losses (75,518) (71,650) (3,868) 5.4%
Cash and due from banks 280,543 258,776 21,767 8.4%
Other assets 421,037 376,469 44,568 11.8%
---------- ---------- ---------
Total assets $6,841,792 $6,987,860 $(146,068) -2.1%
========== ========== =========
Int-bearing demand dep $ 957,410 $ 795,890 $ 161,520 20.3%
Savings deposits 735,885 637,973 97,912 15.3%
Time deposits less
than $100,000 1,311,405 1,308,425 2,980 0.2%
Time deposits of $100,000
or more 507,725 587,252 (79,527) -13.5%
---------- ---------- ---------
Total int-bearing dep 3,512,425 3,329,540 182,885 5.5%
Fed funds pch and repos 788,618 1,117,059 (328,441) -29.4%
Short-term borrowings 384,481 495,607 (111,126) -22.4%
Long-term FHLB advances 327,054 351,301 (24,247) -6.9%
---------- ---------- ---------
Total interest-bearing
liabilities 5,012,578 5,293,507 (280,929) -5.3%
Nonint-bearing deposits 1,086,487 966,437 120,050 12.4%
Other liabilities 66,996 72,478 (5,482) -7.6%
Shareholders' equity 675,731 655,438 20,293 3.1%
---------- ---------- ---------
Total liab and equity $6,841,792 $6,987,860 $(146,068) -2.1%
========== ========== =========
December 31,
----------------------
PERIOD END BALANCES 2002 2001 $ Change % Change
- ------------------- ---------- ---------- --------- --------
Sec available for sale $1,262,570 $1,061,495 $ 201,075 18.9%
Sec held to maturity 549,197 792,052 (242,855) -30.7%
---------- ---------- ---------
Total securities 1,811,767 1,853,547 (41,780) -2.3%
Loans 4,617,366 4,524,366 93,000 2.1%
Fed funds sold and
rev repos 23,957 137,521 (113,564) -82.6%
---------- ---------- ---------
Total earning assets 6,453,090 6,515,434 (62,344) -1.0%
---------- ---------- ---------
Allowance for loan losses (74,771) (75,534) 763 -1.0%
Cash and due from banks 357,427 328,779 28,648 8.7%
Intang-other identifiable 22,788 22,216 572 2.6%
Intang-mortgage servicing 48,827 53,471 (4,644) -8.7%
Intang-goodwill 48,028 41,004 7,024 17.1%
Other assets 283,317 294,969 (11,652) -4.0%
---------- ---------- ---------
Total assets $7,138,706 $7,180,339 $ (41,633) -0.6%
========== ========== =========
Nonint-bearing deposits $1,251,240 $1,167,437 $ 83,803 7.2%
Int-bearing deposits 3,435,056 3,445,928 (10,872) -0.3%
---------- ---------- ---------
Total deposits 4,686,296 4,613,365 72,931 1.6%
Fed funds pch and repos 954,978 1,037,506 (82,528) -8.0%
Short-term borrowings 275,959 558,687 (282,728) -50.6%
Long-term FHLB advances 475,000 225,000 250,000 111.1%
Other liabilities 66,939 60,337 6,602 10.9%
---------- ---------- ---------
Total liabilities 6,459,172 6,494,895 (35,723) -0.6%
---------- ---------- ---------
Common stock 12,609 13,273 (664) -5.0%
Surplus 188,652 66,083 122,569 185.5%
Retained earnings 470,317 587,387 (117,070) -19.9%
Accum other comprehensive
income, net of taxes 7,956 18,701 (10,745) -57.5%
---------- ---------- ---------
Total shareholders' equity 679,534 685,444 (5,910) -0.9%
---------- ---------- ---------
Total liab and equity $7,138,706 $7,180,339 $ (41,633) -0.6%
========== ========== =========
Total int-bearing liab $5,140,993 $5,267,121 $(126,128) -2.4%
========== ========== =========
Quarter Ended Dec. 31,
----------------------
INCOME STATEMENTS 2002 2001 $ Change % Change
- ----------------- ----------- ---------- --------- --------
Int and fees on loans-FTE $ 75,653 $ 82,351 $ (6,698) -8.1%
Int on securities-taxable 19,365 26,817 (7,452) -27.8%
Int on securities-tax
exempt-FTE 3,262 3,712 (450) -12.1%
Int on fed funds sold
and rev repos 79 78 1 1.3%
Other interest income 22 586 (564) -96.2%
---------- ---------- ---------
Total interest income-FTE 98,381 113,544 (15,163) -13.4%
---------- ---------- ---------
Interest on deposits 17,627 25,796 (8,169) -31.7%
Interest on fed funds
pch and repos 2,706 5,427 (2,721) -50.1%
Other interest expense 5,489 7,216 (1,727) -23.9%
---------- ---------- ---------
Total interest expense 25,822 38,439 (12,617) -32.8%
---------- ---------- ---------
Net interest income-FTE 72,559 75,105 (2,546) -3.4%
Provision for loan losses 3,800 4,600 (800) -17.4%
---------- ---------- ---------
Net interest income after
provision-FTE 68,759 70,505 (1,746) -2.5%
---------- ---------- ---------
Service charges on
deposit accounts 13,510 12,321 1,189 9.7%
Other acct charges,
fees and commissions 11,342 10,333 1,009 9.8%
Mortgage servicing fees 4,322 4,383 (61) -1.4%
Trust service income 2,549 2,232 317 14.2%
Gains on sales of
loans (Note 2) 3,303 2,674 629 23.5%
Other income (Note 2) 1,268 2,100 (832) -39.6%
---------- ---------- ---------
Nonint inc-excl sec gains 36,294 34,043 2,251 6.6%
Security gains 1,019 718 301 41.9%
---------- ---------- ---------
Total noninterest income 37,313 34,761 2,552 7.3%
---------- ---------- ---------
Salaries and emp benefits 30,771 28,590 2,181 7.6%
Net occupancy-premises 3,225 2,942 283 9.6%
Equipment expense 3,728 3,967 (239) -6.0%
Services and fees 8,694 8,373 321 3.8%
Amtz of intangible
assets (Note 2) 5,389 3,554 1,835 51.6%
Loan expense 2,451 2,601 (150) -5.8%
Other expense 5,398 7,538 (2,140) -28.4%
---------- ---------- ---------
Total noninterest expense 59,656 57,565 2,091 3.6%
---------- ---------- ---------
Income before income taxes 46,416 47,701 (1,285) -2.7%
Tax equivalent adjustment 2,186 2,420 (234) -9.7%
Income taxes 14,884 15,872 (988) -6.2%
---------- ---------- ---------
Net income $ 29,346 $ 29,409 $ (63) -0.2%
========== ========== =========
Earnings per share
Basic $ 0.48 $ 0.46 $ 0.02 4.3%
========== ========== =========
Diluted $ 0.48 $ 0.46 $ 0.02 4.3%
========== ========== =========
Wtd average shares o/s
Basic 61,189,525 63,928,942 -4.3%
========== ==========
Diluted 61,292,213 64,105,178 -4.4%
========== ==========
Period end shares o/s 60,516,668 63,705,671 -5.0%
========== ==========
Dividends per share $ 0.1650 $ 0.1500 10.0%
========== ==========
Year-to-date Dec. 31,
----------------------
INCOME STATEMENTS 2002 2001 $ Change % Change
- ----------------- ---------- ---------- --------- --------
Int and fees on loans-FTE $ 309,986 $ 345,589 $ (35,603) -10.3%
Int on securities-taxable 89,562 123,971 (34,409) -27.8%
Int on securities-tax
exempt-FTE 13,642 14,558 (916) -6.3%
Int on fed funds sold
and rev repos 424 921 (497) -54.0%
Other interest income 1,390 982 408 41.5%
---------- ---------- ---------
Total interest income-FTE 415,004 486,021 (71,017) -14.6%
---------- ---------- ---------
Interest on deposits 79,059 126,356 (47,297) -37.4%
Interest on fed funds
pch and repos 12,652 42,390 (29,738) -70.2%
Other interest expense 22,055 40,496 (18,441) -45.5%
---------- ---------- ---------
Total interest expense 113,766 209,242 (95,476) -45.6%
---------- ---------- ---------
Net interest income-FTE 301,238 276,779 24,459 8.8%
Provision for loan losses 14,107 13,200 907 6.9%
---------- ---------- ---------
Net interest income after
provision-FTE 287,131 263,579 23,552 8.9%
---------- ---------- ---------
Service charges on
deposit accounts 50,056 46,769 3,287 7.0%
Other acct charges,
fees and commissions 46,208 41,108 5,100 12.4%
Mortgage servicing fees 17,247 16,920 327 1.9%
Trust service income 9,962 9,423 539 5.7%
Gains on sales of
loans (Note 2) 9,353 9,163 190 2.1%
Other income (Note 2) (4,524) 6,159 (10,683) -173.5%
---------- ---------- ---------
Nonint inc-excl sec gains 128,302 129,542 (1,240) -1.0%
Security gains 13,568 2,448 11,120 454.2%
---------- ---------- ---------
Total noninterest income 141,870 131,990 9,880 7.5%
---------- ---------- ---------
Salaries and emp benefits 119,801 110,540 9,261 8.4%
Net occupancy-premises 12,088 11,576 512 4.4%
Equipment expense 15,085 15,651 (566) -3.6%
Services and fees 32,414 30,098 2,316 7.7%
Amtz of intangible
assets (Note 2) 24,275 14,129 10,146 71.8%
Loan expense 9,765 9,560 205 2.1%
Other expense 20,413 22,713 (2,300) -10.1%
---------- ---------- ---------
Total noninterest expense 233,841 214,267 19,574 9.1%
---------- ---------- ---------
Income before income taxes 195,160 181,302 13,858 7.6%
Tax equivalent adjustment 9,052 9,875 (823) -8.3%
Income taxes 64,968 60,146 4,822 8.0%
---------- ---------- ---------
Net income $ 121,140 $ 111,281 $ 9,859 8.9%
========== ========== =========
Earnings per share
Basic $ 1.95 $ 1.72 $ 0.23 13.4%
========== ========== =========
Diluted $ 1.94 $ 1.72 $ 0.22 12.8%
========== ========== =========
Wtd avg shares o/s
Basic 62,250,734 64,755,382 -3.9%
========== ==========
Diluted 62,416,130 64,876,705 -3.8%
========== ==========
Period end shares o/s 60,516,668 63,705,671 -5.0%
========== ==========
Dividends per share $ 0.6150 $ 0.5550 10.8%
========== ==========
December 31,
----------------------
NONPERFORMING ASSETS 2002 2001 $ Change % Change
- -------------------- ---------- ---------- --------- --------
Nonaccrual loans $ 31,642 $ 36,901 $ (5,259) -14.3%
Restructured loans - - -
---------- ---------- ---------
Total nonperforming loans 31,642 36,901 (5,259) -14.3%
Other real estate 6,298 5,110 1,188 23.2%
---------- ---------- ---------
Total nonperforming assets 37,940 42,011 (4,071) -9.7%
Loans past due over 90 days 2,946 2,740 206 7.5%
---------- ---------- ---------
Total nonperforming
assets plus past
due over 90 days $ 40,886 $ 44,751 $ (3,865) -8.6%
========== ========== =========
Quarter Ended Dec. 31,
----------------------
ALLOWANCE FOR LOAN LOSSES 2002 2001 $ Change % Change
- ------------------------- ---------- ---------- --------- --------
Beginning Balance $ 75,538 $ 72,529 $ 3,009 4.1%
Adjustments for business
combinations - 2,870 (2,870)
Charge-offs (6,754) (6,272) (482) 7.7%
Recoveries 2,187 1,807 380 21.0%
Provision for loan losses 3,800 4,600 (800) -17.4%
---------- ---------- ---------
Ending Balance $ 74,771 $ 75,534 $ (763) -1.0%
========== ========== =========
Year-to-date Dec. 31,
----------------------
ALLOWANCE FOR LOAN LOSSES 2002 2001 $ Change % Change
- ------------------------- ---------- ---------- --------- --------
Beginning Balance $ 75,534 $ 65,850 $ 9,684 14.7%
Adjustments for business
combinations - 11,578 (11,578)
Charge-offs (24,035) (22,698) (1,337) 5.9%
Recoveries 9,165 7,604 1,561 20.5%
Provision for loan losses 14,107 13,200 907 6.9%
---------- ---------- ---------
Ending Balance $ 74,771 $ 75,534 $ (763) -1.0%
========== ========== =========
Quarter Ended Year-to-date
--------------- ---------------
December 31, December 31,
--------------- ---------------
RATIOS 2002 2001 2002 2001
- ------ ------ ------ ------ ------
ROA 1.69% 1.69% 1.77% 1.59%
ROE 17.12% 17.54% 17.93% 16.98%
Equity generation rate 11.23% 11.82% 12.27% 11.50%
EOP equity/ EOP assets 9.52% 9.55% 9.52% 9.55%
Average equity/average assets 9.89% 9.62% 9.88% 9.38%
Interest margin - Yield - FTE 6.24% 7.12% 6.68% 7.57%
Interest margin - Cost - FTE 1.64% 2.41% 1.83% 3.26%
Net interest margin - FTE 4.60% 4.71% 4.85% 4.31%
Rate on interest-bearing liab 2.06% 2.97% 2.27% 3.95%
Efficiency ratio (Note 2) 54.14% 54.11% 51.63% 53.43%
Expense ratio 1.48% 1.47% 1.70% 1.32%
Net charge offs/average loans 0.39% 0.40% 0.33% 0.35%
Prov for loan losses/average loans 0.33% 0.41% 0.31% 0.31%
Nonperforming loans/total loans 0.69% 0.82% 0.69% 0.82%
Nonperforming assets/total loans 0.82% 0.93% 0.82% 0.93%
Nonperf assets/total loans+ORE 0.82% 0.93% 0.82% 0.93%
ALL/nonperforming loans 236.30% 204.69% 236.30% 204.69%
ALL/total loans 1.62% 1.67% 1.62% 1.67%
Net loans/total assets 63.63% 61.96% 63.63% 61.96%
Quarter Ended December 31,
---------------------------
COMMON STOCK PERFORMANCE 2002 2001
- ------------------------ ------- -------
Market value of stock-Close $23.800 $24.230
Market value of stock-High $24.300 $24.820
Market value of stock-Low $20.350 $21.260
Book value of stock $ 11.23 $ 10.76
Tangible book value of stock $ 9.25 $ 8.93
Market/Book value of stock 211.93% 225.19%
Price/Earnings ratio 12.50 13.28
Dividend payout 34.38% 32.61%
Year-to-date December 31,
---------------------------
COMMON STOCK PERFORMANCE 2002 2001
- ------------------------ ------- -------
Market value of stock-Close $23.800 $24.230
Market value of stock-High $27.140 $24.820
Market value of stock-Low $20.350 $19.375
Book value of stock $ 11.23 $ 10.76
Tangible book value of stock $ 9.25 $ 8.93
Market/Book value of stock 211.93% 225.19%
Price/Earnings ratio 12.21 14.09
Dividend payout 31.54% 32.27%
December 31,
---------------------------
OTHER DATA 2002 2001
- ---------- ------- -------
EOP Employees - FTE 2,443 2,427
Quarter Ended
----------------------
AVERAGE BALANCES 12/31/02 9/30/02 $ Change % Change
- ---------------- ---------- ---------- --------- --------
Securities AFS-taxable $ 946,379 $ 827,947 $ 118,432 14.3%
Securities AFS-nontaxable 74,723 78,540 (3,817) -4.9%
Securities HTM-taxable 491,306 564,031 (72,725) -12.9%
Securities HTM-nontaxable 89,903 90,063 (160) -0.2%
---------- ---------- ---------
Total securities 1,602,311 1,560,581 41,730 2.7%
---------- ---------- ---------
Loans 4,629,574 4,587,012 42,562 0.9%
Fed funds sold
and rev repos 23,133 35,001 (11,868) -33.9%
---------- ---------- ---------
Total earning assets 6,255,018 6,182,594 72,424 1.2%
---------- ---------- ---------
Allowance for loan losses (75,334) (75,993) 659 -0.9%
Cash and due from banks 279,168 282,665 (3,497) -1.2%
Other assets 417,860 431,083 (13,223) -3.1%
---------- ---------- ---------
Total assets $6,876,712 $6,820,349 $ 56,363 0.8%
========== ========== =========
Int-bearing demand dep $ 956,895 $ 986,617 $ (29,722) -3.0%
Savings deposits 752,474 739,027 13,447 1.8%
Time deposits less
than $100,000 1,286,384 1,308,381 (21,997) -1.7%
Time deposits of $100,000
or more 476,520 485,620 (9,100) -1.9%
---------- ---------- ---------
Total interest-bearing dep 3,472,273 3,519,645 (47,372) -1.3%
Fed funds pch and repos 766,711 729,862 36,849 5.0%
Short-term borrowings 275,500 408,051 (132,551) -32.5%
Long-term FHLB advances 458,152 325,000 133,152 41.0%
---------- ---------- ---------
Total int-bearing
liabilities 4,972,636 4,982,558 (9,922) -0.2%
Nonint-bearing deposits 1,155,741 1,089,755 65,986 6.1%
Other liabilities 68,125 74,127 (6,002) -8.1%
Shareholders' equity 680,210 673,909 6,301 0.9%
---------- ---------- ---------
Total liab and equity $6,876,712 $6,820,349 $ 56,363 0.8%
========== ========== =========
Period Ended
----------------------
PERIOD END BALANCES 12/31/02 9/30/02 $ Change % Change
- ------------------- ---------- ---------- --------- --------
Sec available for sale $1,262,570 $ 940,061 $ 322,509 34.3%
Sec held to maturity 549,197 614,417 (65,220) -10.6%
---------- ---------- ---------
Total securities 1,811,767 1,554,478 257,289 16.6%
Loans 4,617,366 4,613,570 3,796 0.1%
Fed funds sold
and rev repos 23,957 189,056 (165,099) -87.3%
---------- ---------- ---------
Total earning assets 6,453,090 6,357,104 95,986 1.5%
---------- ---------- ---------
Allowance for loan losses (74,771) (75,538) 767 -1.0%
Cash and due from banks 357,427 354,824 2,603 0.7%
Intang-other identifiable 22,788 23,056 (268) -1.2%
Intang-mortgage servicing 48,827 46,923 1,904 4.1%
Intang-goodwill 48,028 47,982 46 0.1%
Other assets 283,317 304,958 (21,641) -7.1%
---------- ---------- ---------
Total assets $7,138,706 $7,059,309 $ 79,397 1.1%
========== ========== =========
Nonint-bearing deposits $1,251,240 $1,237,109 $ 14,131 1.1%
Interest-bearing deposits 3,435,056 3,585,085 (150,029) -4.2%
---------- ---------- ---------
Total deposits 4,686,296 4,822,194 (135,898) -2.8%
Fed funds pch and repos 954,978 724,016 230,962 31.9%
Short-term borrowings 275,959 429,760 (153,801) -35.8%
Long-term FHLB advances 475,000 325,000 150,000 46.2%
Other liabilities 66,939 65,705 1,234 1.9%
---------- ---------- ---------
Total liabilities 6,459,172 6,366,675 92,497 1.5%
---------- ---------- ---------
Common stock 12,609 12,847 (238) -1.9%
Surplus 188,652 14,370 174,282 1212.8%
Retained earnings 470,317 651,015 (180,698) -27.8%
Accum other comprehensive
income, net of taxes 7,956 14,402 (6,446) -44.8%
---------- ---------- ---------
Total shareholders' equity 679,534 692,634 (13,100) -1.9%
---------- ---------- ---------
Total liab and equity $7,138,706 $7,059,309 $ 79,397 1.1%
========== ========== =========
Total int-bearing liab $5,140,993 $5,063,861 $ 77,132 1.5%
========== ========== =========
Quarter Ended
----------------------
INCOME STATEMENTS 12/31/02 9/30/2002 $ Change % Change
- ----------------- ---------- ---------- --------- --------
Int and fees on loans-FTE $ 75,653 $ 78,571 $ (2,918) -3.7%
Int on securities-taxable 19,365 21,519 (2,154) -10.0%
Int on securities-tax
exempt-FTE 3,262 3,346 (84) -2.5%
Int on fed funds sold
and rev repos 79 150 (71) -47.3%
Other interest income 22 23 (1) -4.3%
---------- ---------- ---------
Total interest income-FTE 98,381 103,609 (5,228) -5.0%
---------- ---------- ---------
Interest on deposits 17,627 19,634 (2,007) -10.2%
Int on fed funds
pch and repos 2,706 3,058 (352) -11.5%
Other interest expense 5,489 5,636 (147) -2.6%
---------- ---------- ---------
Total interest expense 25,822 28,328 (2,506) -8.8%
---------- ---------- ---------
Net interest income-FTE 72,559 75,281 (2,722) -3.6%
Provision for loan losses 3,800 3,000 800 26.7%
---------- ---------- ---------
Net interest income after
provision-FTE 68,759 72,281 (3,522) -4.9%
---------- ---------- ---------
Service charges on
deposit accounts 13,510 12,725 785 6.2%
Other acct charges,
fees and commissions 11,342 14,189 (2,847) -20.1%
Mortgage servicing fees 4,322 4,310 12 0.3%
Trust service income 2,549 2,402 147 6.1%
Gains on sales of
loans (Note 2) 3,303 2,376 927 39.0%
Other income (Note 2) 1,268 (3,114) 4,382 -140.7%
---------- ---------- ---------
Nonint inc-excl sec gains 36,294 32,888 3,406 10.4%
Security gains 1,019 12,033 (11,014) -91.5%
---------- ---------- ---------
Total noninterest income 37,313 44,921 (7,608) -16.9%
---------- ---------- ---------
Salaries and emp benefits 30,771 30,568 203 0.7%
Net occupancy-premises 3,225 3,168 57 1.8%
Equipment expense 3,728 3,598 130 3.6%
Services and fees 8,694 8,093 601 7.4%
Amtz of intangible
assets (Note 2) 5,389 15,063 (9,674) -64.2%
Loan expense 2,451 2,373 78 3.3%
Other expense 5,398 5,618 (220) -3.9%
---------- ---------- ---------
Total noninterest expense 59,656 68,481 (8,825) -12.9%
---------- ---------- ---------
Income before income taxes 46,416 48,721 (2,305) -4.7%
Tax equivalent adjustment 2,186 2,188 (2) -0.1%
Income taxes 14,884 16,471 (1,587) -9.6%
---------- ---------- ---------
Net income $ 29,346 $ 30,062 $ (716) -2.4%
========== ========== =========
Earnings per share
Basic $ 0.48 $ 0.49 $ (0.01) -2.0%
========== ========== =========
Diluted $ 0.48 $ 0.49 $ (0.01) -2.0%
========== ========== =========
Wtd avg shares o/s
Basic 61,189,525 61,786,676
========== ==========
Diluted 61,292,213 61,961,033
========== ==========
Period end shares o/s 60,516,668 61,660,409
========== ==========
Dividends per share $ 0.1650 $ 0.1500
========== ==========
Period Ended
----------------------
NONPERFORMING ASSETS 12/31/02 9/30/02 $ Change % Change
- -------------------- ---------- ---------- --------- --------
Nonaccrual loans $ 31,642 $ 30,998 $ 644 2.1%
Restructured loans - - -
---------- ---------- ---------
Total nonperforming loans 31,642 30,998 644 2.1%
Other real estate 6,298 5,983 315 5.3%
---------- ---------- ---------
Total nonperforming assets 37,940 36,981 959 2.6%
Loans past due over 90 days 2,946 3,145 (199) -6.3%
---------- ---------- ---------
Total nonperforming
assets plus past
due over 90 days $ 40,886 $ 40,126 $ 760 1.9%
========== ========== =========
Quarter Ended
----------------------
ALLOWANCE FOR LOAN LOSSES 12/31/02 9/30/02 $ Change % Change
- ------------------------- ---------- ---------- --------- --------
Beginning Balance $ 75,538 $ 75,900 $ (362) -0.5%
Charge-offs (6,754) (5,780) (974) 16.9%
Recoveries 2,187 2,418 (231) -9.6%
Provision for loan losses 3,800 3,000 800 26.7%
---------- ---------- ---------
Ending Balance $ 74,771 $ 75,538 $ (767) -1.0%
========== ========== =========
Quarter Ended
-------------------------
RATIOS 12/31/02 9/30/02
- ------ -------- --------
ROA 1.69% 1.75%
ROE 17.12% 17.70%
Equity generation rate 11.23% 12.28%
EOP equity/ EOP assets 9.52% 9.81%
Average equity/average assets 9.89% 9.88%
Interest margin - Yield - FTE 6.24% 6.65%
Interest margin - Cost - FTE 1.64% 1.82%
Net interest margin - FTE 4.60% 4.83%
Rate on interest-bearing liabilities 2.06% 2.26%
Efficiency ratio 54.14% 52.12%
Expense ratio 1.48% 2.28%
Net charge offs/average loans 0.39% 0.29%
Provision for loan losses/average loans 0.33% 0.26%
Nonperforming loans/total loans 0.69% 0.67%
Nonperforming assets/total loans 0.82% 0.80%
Nonperforming assets/total loans+ORE 0.82% 0.80%
ALL/nonperforming loans 236.30% 243.69%
ALL/total loans 1.62% 1.64%
Net loans/total assets 63.63% 64.28%
COMMON STOCK PERFORMANCE
- ------------------------
Market value of stock-Close $23.800 $22.800
Market value of stock-High $24.300 $26.150
Market value of stock-Low $20.350 $21.290
Book value of stock $ 11.23 $ 11.23
Tangible book value of stock $ 9.25 $ 9.32
Market/Book value of stock 211.93% 203.03%
Price/Earnings ratio 12.50 11.73
Dividend payout 34.38% 30.61%
OTHER DATA
- ----------
EOP Employees - FTE 2,443 2,450
NOTES TO CONSOLIDATED FINANCIAL INFORMATION
Note 1- Business Combinations
On June 28, 2002, Trustmark Corporation announced that
Chandler-Sampson Insurance, Inc. was merged into the Bottrell
Insurance Agency, Inc., a wholly owned subsidiary of Trustmark
National Bank. This business combination, which is not material
to Trustmark, was accounted for under the purchase method of
accounting and the results of operations have been included in
the financial statements from the merger date.
On December 14, 2001, Nashoba Bancshares, Inc. (Nashoba) in
Germantown, Tennessee, was merged with Trustmark in a business
combination accounted for by the purchase method of accounting.
Nashoba was the holding company for Nashoba Bank in Germantown,
Tennessee. At the merger date, Nashoba had $10 million in
securities, $147 million in total loans, $163 million in total
assets and $132 million in total deposits. The shareholders of
Nashoba received $27.55 million in cash in connection with the
merger. Excess cost over net assets acquired equaled $17 million
of which $3 million and $14 million have been allocated to core
deposits and goodwill, respectively. The results of operations
have been included in the financial statements from the merger
date.
On April 6, 2001, Barret Bancorp, Inc. (Barret) in Barretville,
Tennessee, was merged with Trustmark in a business combination
accounted for by the purchase method of accounting. Barret was
the holding company for Peoples Bank in Barretville, Tennessee
and Somerville Bank and Trust Company in Somerville, Tennessee.
At the merger date, Barret had $104 million in securities, $307
million in total loans, $508 million in total assets and $414
million in total deposits. The shareholders of Barret received
2,405,630 shares of Trustmark's common stock along with $51.2
million in cash. Excess cost over net assets acquired equaled $27
million of which $11 million and $16 million have been allocated
to core deposits and goodwill, respectively. The results of
operations have been included in the financial statements from
the merger date.
Note 2 - Efficiency Ratio Calculation
The efficiency ratio computes the ratio of noninterest expenses
to total revenues which include net interest income and
noninterest income excluding security gains. Nonrecurring
transactions that occurred during the period are excluded from
the efficiency ratio computation. The efficiency ratio has been
adjusted for the following nonrecurring items:
2002 2001
----------------- ----------------
4Q YTD 4Q YTD
-------- ------- ------- -------
Gains on sales of loans $ - $ 1,090 $ 1,241 $ 5,128
Other Income
Valuation adjustments -
Interest rate contracts $ 47 $(5,980) $ 1,521 $ 3,946
Amtz of intangible assets
Impairment of mortgage
servicing rights $ 744 $ 9,530 $ - $ 2,000