EXHIBIT 99.1
[OBJECT OMITTED] News Release
FOR IMMEDIATE RELEASE
April 15, 2003
Trustmark Announces First Quarter Earnings
Jackson, Miss. - Trustmark Corporation (NASDAQ:TRMK) announced net income of
$24.5 million in the first quarter of 2003, which represented basic and diluted
earnings per share of $0.41. Earnings during the quarter included a previously
announced one-time after-tax charge of $4.1 million, or $0.07 per share,
associated with the company's voluntary early retirement program. Trustmark's
performance for the quarter ended March 31, 2003 resulted in a return on average
shareholders' equity of 14.88% and a return on average assets of 1.40%.
Excluding the one-time charge for the early retirement program, Trustmark's
performance for the first quarter resulted in a return on average shareholders'
equity of 17.36% and a return on average assets of 1.63%. At March 31, 2003,
Trustmark reported total loans of $4.6 billion, total assets of $7.3 billion,
total deposits of $5.0 billion and shareholders' equity of $660.6 million.
Richard G. Hickson, Chairman and Chief Executive Officer, stated, "Despite the
challenging economic and geopolitical environments, Trustmark has continued its
focus on providing banking and financial solutions for its customers. Our loans
increased approximately $200 million while deposits grew nearly $350 million
when compared to figures one year earlier. We appreciate the confidence our
customers have placed in Trustmark and the efforts our associates have made in
increasing customer satisfaction."
"During the first quarter, we continued to proactively manage our expense base
with the completion of our previously announced voluntary early retirement
program. The benefits of this program, which was accepted by 116, or 4.75% of
our workforce, are expected to result in significant compensation expense
savings during the remainder of 2003. These compensation savings should also
enhance earnings in 2004," said Hickson.
"The continued decline in interest rates again provided both challenges and
opportunities for Trustmark. The effect of continued reductions in long-term
interest rates reduced the value of our mortgage servicing portfolio. During the
first quarter, Trustmark recorded a non-cash after-tax charge of $4.4 million to
recognize this reduction in value of our mortgage servicing portfolio due to
customers taking advantage of the opportunity to refinance their home mortgages
to lower interest rates. This non-cash charge against income could be reversed,
in whole or in part, if interest rates rise, refinancing slows and the expected
life of home mortgages lengthens. The current low interest rate environment also
provided an opportunity to restructure a portion of our fixed income investment
portfolio and reduce exposure to volatile interest rates. During the quarter,
Trustmark realized an after-tax net gain of $5.3 million resulting from sales of
fixed income investment securities," Hickson said.
During the first quarter of 2003, Trustmark repurchased approximately 1.3
million shares of its common stock. At March 31, 2003, Trustmark had
authorization to repurchase up to an additional 1.6 million shares. The
repurchase program is subject to market conditions and management discretion and
will continue to be implemented through open market purchases or privately
negotiated transactions.
Trustmark is a financial services company providing banking and financial
solutions through over 130 offices and 2,300 associates in Mississippi and
Tennessee. For additional information, visit Trustmark's web site at
www.trustmark.com.
# # # # #
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of and
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. A forward-looking statement in this press release
encompasses any estimate, prediction, expectation, projection, opinion,
anticipation, outlook or statement of belief included therein, as well as the
management assumptions underlying those forward-looking statements. Such
statements include, but may not be limited to effects of changes in interest
rates on earnings. Factors that might cause future results to differ from such
forward-looking statements are described in Trustmark's filings with the
Securities and Exchange Commission. Trustmark undertakes no obligation to update
or revise any of this information, whether as the result of new information,
future events or developments, or otherwise.
Investor Contact: Zach Wasson Joseph Rein
Executive Vice President and CFO First Vice President
601-208-6816 601-208-6898
Media Contact: Gray Wiggers
Senior Vice President
601-208-5942
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2003
($ in thousands)
(unaudited)
Quarter Ended Mar. 31,
----------------------
AVERAGE BALANCES 2003 2002 $ Change % Change
- ---------------- ---------- ---------- --------- --------
Securities AFS-taxable $1,235,837 $ 892,979 $ 342,858 38.4%
Securities AFS-nontaxable 70,021 90,720 (20,699) -22.8%
Securities HTM-taxable 408,165 687,548 (279,383) -40.6%
Securities HTM-nontaxable 90,945 89,473 1,472 1.6%
---------- ---------- ---------
Total securities 1,804,968 1,760,720 44,248 2.5%
---------- ---------- ---------
Loans 4,617,076 4,470,931 146,145 3.3%
Fed funds sold
and rev repos 29,700 24,619 5,081 20.6%
---------- ---------- ---------
Total earning assets 6,451,744 6,256,270 195,474 3.1%
---------- ---------- ---------
Allowance for loan losses (75,143) (75,364) 221 -0.3%
Cash and due from banks 302,372 285,818 16,554 5.8%
Other assets 410,141 416,476 (6,335) -1.5%
---------- ---------- ---------
Total assets $7,089,114 $6,883,200 $ 205,914 3.0%
========== ========== =========
Int-bearing demand dep $1,040,166 $ 928,994 $ 111,172 12.0%
Savings deposits 784,866 715,256 69,610 9.7%
Time deposits less
than $100,000 1,261,873 1,342,280 (80,407) -6.0%
Time deposits of $100,000
or more 464,029 533,427 (69,398) -13.0%
---------- ---------- ---------
Total interest-bearing dep 3,550,934 3,519,957 30,977 0.9%
Fed funds pch and repos 926,205 891,677 34,528 3.9%
Short-term borrowings 241,371 462,628 (221,257) -47.8%
Long-term FHLB advances 475,198 225,000 250,198 111.2%
---------- ---------- ---------
Total interest-bearing
liabilities 5,193,708 5,099,262 94,446 1.9%
Nonint-bearing deposits 1,158,944 1,039,334 119,610 11.5%
Other liabilities 69,053 69,497 (444) -0.6%
Shareholders' equity 667,409 675,107 (7,698) -1.1%
---------- ---------- ---------
Total liab and equity $7,089,114 $6,883,200 $ 205,914 3.0%
========== ========== =========
March 31,
----------------------
PERIOD END BALANCES 2003 2002 $ Change % Change
- ------------------- ---------- ---------- --------- --------
Sec available for sale $1,523,599 $ 996,472 $ 527,127 52.9%
Sec held to maturity 442,946 712,822 (269,876) -37.9%
---------- ---------- ---------
Total securities 1,966,545 1,709,294 257,251 15.1%
Loans 4,631,080 4,433,784 197,296 4.4%
Fed funds sold and
rev repos 27,015 17,150 9,865 57.5%
---------- ---------- ---------
Total earning assets 6,624,640 6,160,228 464,412 7.5%
---------- ---------- ---------
Allowance for loan losses (74,867) (75,240) 373 -0.5%
Cash and due from banks 363,738 271,619 92,119 33.9%
Intang-other identifiable 21,925 21,481 444 2.1%
Intang-mortgage servicing 39,655 57,220 (17,565) -30.7%
Intang-goodwill 48,028 41,004 7,024 17.1%
Other assets 282,745 295,123 (12,378) -4.2%
---------- ---------- ---------
Total assets $7,305,864 $6,771,435 $ 534,429 7.9%
========== ========== =========
Nonint-bearing deposits $1,223,941 $1,035,104 $ 188,837 18.2%
Int-bearing deposits 3,754,058 3,594,708 159,350 4.4%
---------- ---------- ---------
Total deposits 4,977,999 4,629,812 348,187 7.5%
Fed funds pch and repos 816,475 801,255 15,220 1.9%
Short-term borrowings 321,879 360,925 (39,046) -10.8%
Long-term FHLB advances 457,667 225,000 232,667 103.4%
Other liabilities 71,201 68,857 2,344 3.4%
---------- ---------- ---------
Total liabilities 6,645,221 6,085,849 559,372 9.2%
---------- ---------- ---------
Common stock 12,337 13,110 (773) -5.9%
Surplus 157,954 46,857 111,097 237.1%
Retained earnings 484,980 608,196 (123,216) -20.3%
Accum other comprehensive
income, net of taxes 5,372 17,423 (12,051) -69.2%
---------- ---------- ---------
Total shareholders' equity 660,643 685,586 (24,943) -3.6%
---------- ---------- ---------
Total liab and equity $7,305,864 $6,771,435 $ 534,429 7.9%
========== ========== =========
Total int-bearing liab $5,350,079 $4,981,888 $ 368,191 7.4%
========== ========== =========
Quarter Ended Mar. 31,
----------------------
INCOME STATEMENTS 2003 2002 $ Change % Change
- ----------------- ---------- ---------- --------- --------
Int and fees on loans-FTE $ 71,791 $ 78,588 $ (6,797) -8.6%
Int on securities-taxable 20,155 24,169 (4,014) -16.6%
Int on securities-tax
exempt-FTE 3,183 3,594 (411) -11.4%
Int on fed funds sold
and rev repos 82 99 (17) -17.2%
Other interest income 12 770 (758) -98.4%
---------- ---------- ---------
Total interest income-FTE 95,223 107,220 (11,997) -11.2%
---------- ---------- ---------
Interest on deposits 16,062 21,778 (5,716) -26.2%
Interest on fed funds
pch and repos 2,726 3,659 (933) -25.5%
Other interest expense 5,032 5,471 (439) -8.0%
---------- ---------- ---------
Total interest expense 23,820 30,908 (7,088) -22.9%
---------- ---------- ---------
Net interest income-FTE 71,403 76,312 (4,909) -6.4%
Provision for loan losses 3,000 4,307 (1,307) -30.3%
---------- ---------- ---------
Net interest income after
provision-FTE 68,403 72,005 (3,602) -5.0%
---------- ---------- ---------
Service charges on
deposit accounts 12,680 11,424 1,256 11.0%
Other acct charges and fees 6,625 7,001 (376) -5.4%
Insurance commissions 3,787 2,660 1,127 42.4%
Mortgage servicing fees 4,326 4,322 4 0.1%
Trust service income 2,311 2,519 (208) -8.3%
Gains on sales of loans 3,893 1,505 2,388 158.7%
Other income (Note 3) (587) (585) (2) 0.3%
---------- ---------- ---------
Nonint inc-excl sec gains 33,035 28,846 4,189 14.5%
Security gains 8,148 140 8,008 5720.0%
---------- ---------- ---------
Total noninterest income 41,183 28,986 12,197 42.1%
---------- ---------- ---------
Salaries and employee
benefits (Note 2, 3) 35,924 29,522 6,402 21.7%
Net occupancy-premises 2,986 2,789 197 7.1%
Equipment expense 3,710 3,895 (185) -4.7%
Services and fees 7,879 7,805 74 0.9%
Amtz/impairment of intang
assets (Note 3) 11,655 986 10,669 1082.0%
Loan expense 2,371 2,552 (181) -7.1%
Other expense 5,201 4,441 760 17.1%
---------- ---------- ---------
Total noninterest expense 69,726 51,990 17,736 34.1%
---------- ---------- ---------
Income before income taxes 39,860 49,001 (9,141) -18.7%
Tax equivalent adjustment 2,206 2,383 (177) -7.4%
Income taxes 13,170 16,289 (3,119) -19.1%
---------- ---------- ---------
Net income $ 24,484 $ 30,329 $ (5,845) -19.3%
========== ========== =========
Earnings per share
Basic $ 0.41 $ 0.48 $ (0.07) -14.6%
========== ========== =========
Diluted $ 0.41 $ 0.48 $ (0.07) -14.6%
========== ========== =========
Wtd average shares o/s
Basic 59,912,276 63,463,798 -5.6%
========== ==========
Diluted 60,055,751 63,671,553 -5.7%
========== ==========
Period end shares o/s 59,210,244 62,919,313 -5.9%
========== ==========
Dividends per share $ 0.1650 $ 0.1500 10.0%
========== ==========
March 31,
----------------------
NONPERFORMING ASSETS 2003 2002 $ Change % Change
- -------------------- ---------- ---------- --------- --------
Nonaccrual loans $ 31,769 $ 40,985 $ (9,216) -22.5%
Restructured loans - - -
---------- ---------- ---------
Total nonperforming loans 31,769 40,985 (9,216) -22.5%
Other real estate 7,281 5,440 1,841 33.8%
---------- ---------- ---------
Total nonperforming assets 39,050 46,425 (7,375) -15.9%
Loans past due over 90 days 2,512 2,611 (99) -3.8%
---------- ---------- ---------
Total nonperforming
assets plus past
due over 90 days $ 41,562 $ 49,036 $ (7,474) -15.2%
========== ========== =========
Quarter Ended Mar. 31,
----------------------
ALLOWANCE FOR LOAN LOSSES 2003 2002 $ Change % Change
- ------------------------- ---------- ---------- --------- --------
Beginning Balance $ 74,771 $ 75,534 $ (763) -1.0%
Adjustments for business
combinations - - -
Charge-offs (5,191) (6,846) 1,655 -24.2%
Recoveries 2,287 2,245 42 1.9%
Provision for loan losses 3,000 4,307 (1,307) -30.3%
---------- ---------- ---------
Ending Balance $ 74,867 $ 75,240 $ (373) -0.5%
========== ========== =========
Quarter Ended March 31,
-----------------------
RATIOS 2003 2002
- ------ ---------- ----------
ROA 1.40% 1.79%
ROE 14.88% 18.22%
Equity generation rate 8.89% 12.53%
EOP equity/ EOP assets 9.04% 10.12%
Average equity/average assets 9.41% 9.81%
Interest margin - Yield - FTE 5.99% 6.95%
Interest margin - Cost - FTE 1.50% 2.00%
Net interest margin - FTE 4.49% 4.95%
Rate on interest-bearing liabilities 1.86% 2.46%
Efficiency ratio (Note 3) 54.17% 50.95%
Expense ratio 2.31% 1.50%
Net charge offs/average loans 0.26% 0.42%
Provision for loan losses/average loans 0.26% 0.39%
Nonperforming loans/total loans 0.69% 0.92%
Nonperforming assets/total loans 0.84% 1.05%
Nonperforming assets/total loans+ORE 0.84% 1.05%
ALL/nonperforming loans 235.66% 183.58%
ALL/total loans 1.62% 1.70%
Net loans/total assets 62.36% 64.37%
Quarter Ended March 31,
-----------------------
COMMON STOCK PERFORMANCE 2003 2002
- ------------------------ ---------- ----------
Market value of stock-Close $ 23.760 $ 25.260
Market value of stock-High $ 24.800 $ 25.500
Market value of stock-Low $ 22.560 $ 23.380
Book value of stock $ 11.16 $ 10.90
Tangible book value of stock $ 9.31 $ 8.99
Market/Book value of stock 212.90% 231.74%
Price/Earnings ratio 14.29 12.98
Dividend payout 40.24% 31.25%
March 31,
-----------------------
OTHER DATA 2003 2002
- ---------- ---------- ----------
EOP Employees - FTE 2,283 2,446
Quarter Ended
----------------------
AVERAGE BALANCES 3/31/2003 12/31/2002 $ Change % Change
- ---------------- ---------- ---------- --------- --------
Securities AFS-taxable $1,235,837 $ 946,379 $ 289,458 30.6%
Securities AFS-nontaxable 70,021 74,723 (4,702) -6.3%
Securities HTM-taxable 408,165 491,306 (83,141) -16.9%
Securities HTM-nontaxable 90,945 89,903 1,042 1.2%
----------- ---------- ---------
Total securities 1,804,968 1,602,311 202,657 12.6%
----------- ---------- ---------
Loans 4,617,076 4,629,574 (12,498) -0.3%
Fed funds sold
and rev repos 29,700 23,133 6,567 28.4%
----------- ---------- ---------
Total earning assets 6,451,744 6,255,018 196,726 3.1%
----------- ---------- ---------
Allowance for loan losses (75,143) (75,334) 191 -0.3%
Cash and due from banks 302,372 279,168 23,204 8.3%
Other assets 410,141 417,860 (7,719) -1.8%
----------- ---------- ---------
Total assets $7,089,114 $6,876,712 $ 212,402 3.1%
=========== ========== =========
Int-bearing demand dep $1,040,166 $ 956,895 $ 83,271 8.7%
Savings deposits 784,866 752,474 32,392 4.3%
Time deposits less
than $100,000 1,261,873 1,286,384 (24,511) -1.9%
Time deposits of $100,000
or more 464,029 476,520 (12,491) -2.6%
----------- ---------- ---------
Total interest-bearing dep 3,550,934 3,472,273 78,661 2.3%
Fed funds pch and repos 926,205 766,711 159,494 20.8%
Short-term borrowings 241,371 275,500 (34,129) -12.4%
Long-term FHLB advances 475,198 458,152 17,046 3.7%
----------- ---------- ---------
Total int-bearing
liabilities 5,193,708 4,972,636 221,072 4.4%
Nonint-bearing deposits 1,158,944 1,155,741 3,203 0.3%
Other liabilities 69,053 68,125 928 1.4%
Shareholders' equity 667,409 680,210 (12,801) -1.9%
----------- ---------- ---------
Total liab and equity $7,089,114 $6,876,712 $ 212,402 3.1%
=========== ========== =========
Period Ended
----------------------
PERIOD END BALANCES 3/31/2003 12/31/2002 $ Change % Change
- ------------------- ---------- ---------- --------- --------
Sec available for sale $1,523,599 $1,262,570 $ 261,029 20.7%
Sec held to maturity 442,946 549,197 (106,251) -19.3%
---------- ---------- ---------
Total securities 1,966,545 1,811,767 154,778 8.5%
Loans 4,631,080 4,617,366 13,714 0.3%
Fed funds sold
and rev repos 27,015 23,957 3,058 12.8%
---------- ---------- ---------
Total earning assets 6,624,640 6,453,090 171,550 2.7%
---------- ---------- ---------
Allowance for loan losses (74,867) (74,771) (96) 0.1%
Cash and due from banks 363,738 357,427 6,311 1.8%
Intang-other identifiable 21,925 22,788 (863) -3.8%
Intang-mortgage servicing 39,655 48,827 (9,172) -18.8%
Intang-goodwill 48,028 48,028 - 0.0%
Other assets 282,745 283,317 (572) -0.2%
---------- ---------- ---------
Total assets $7,305,864 $7,138,706 $ 167,158 2.3%
========== ========== =========
Nonint-bearing deposits $1,223,941 $1,251,240 $ (27,299) -2.2%
Interest-bearing deposits 3,754,058 3,435,056 319,002 9.3%
---------- ---------- ---------
Total deposits 4,977,999 4,686,296 291,703 6.2%
Fed funds pch and repos 816,475 954,978 (138,503) -14.5%
Short-term borrowings 321,879 275,959 45,920 16.6%
Long-term FHLB advances 457,667 475,000 (17,333) -3.6%
Other liabilities 71,201 66,939 4,262 6.4%
---------- ---------- ---------
Total liabilities 6,645,221 6,459,172 186,049 2.9%
---------- ---------- ---------
Common stock 12,337 12,609 (272) -2.2%
Surplus 157,954 188,652 (30,698) -16.3%
Retained earnings 484,980 470,317 14,663 3.1%
Accum other comprehensive
income, net of taxes 5,372 7,956 (2,584) -32.5%
---------- ---------- ---------
Total shareholders' equity 660,643 679,534 (18,891) -2.8%
---------- ---------- ---------
Total liab and equity $7,305,864 $7,138,706 $ 167,158 2.3%
========== ========== =========
Total int-bearing liab $5,350,079 $5,140,993 $ 209,086 4.1%
========== ========== =========
Quarter Ended
----------------------
INCOME STATEMENTS 3/31/2003 12/31/2002 $ Change % Change
- ----------------- ---------- ---------- --------- --------
Int and fees on loans-FTE $ 71,791 $ 75,653 $ (3,862) -5.1%
Int on securities-taxable 20,155 19,365 790 4.1%
Int on securities-tax
exempt-FTE 3,183 3,262 (79) -2.4%
Int on fed funds sold
and rev repos 82 79 3 3.8%
Other interest income 12 22 (10) -45.5%
---------- ---------- ---------
Total interest income-FTE 95,223 98,381 (3,158) -3.2%
---------- ---------- ---------
Interest on deposits 16,062 17,627 (1,565) -8.9%
Int on fed funds
pch and repos 2,726 2,706 20 0.7%
Other interest expense 5,032 5,489 (457) -8.3%
---------- ---------- ---------
Total interest expense 23,820 25,822 (2,002) -7.8%
---------- ---------- ---------
Net interest income-FTE 71,403 72,559 (1,156) -1.6%
Provision for loan losses 3,000 3,800 (800) -21.1%
---------- ---------- ---------
Net interest income after
provision-FTE 68,403 68,759 (356) -0.5%
---------- ---------- ---------
Service charges on
deposit accounts 12,680 13,510 (830) -6.1%
Other acct charges and fees 6,625 7,085 (460) -6.5%
Insurance commissions 3,787 4,257 (470) -11.0%
Mortgage servicing fees 4,326 4,322 4 0.1%
Trust service income 2,311 2,549 (238) -9.3%
Gains on sales of loans 3,893 3,303 590 17.9%
Other income (Note 3) (587) 1,268 (1,855) -146.3%
---------- ---------- ---------
Nonint inc-excl sec gains 33,035 36,294 (3,259) -9.0%
Security gains 8,148 1,019 7,129 699.6%
---------- ---------- ---------
Total noninterest income 41,183 37,313 3,870 10.4%
---------- ---------- ---------
Salaries and employee
benefits (Note 2, 3) 35,924 30,771 5,153 16.7%
Net occupancy-premises 2,986 3,225 (239) -7.4%
Equipment expense 3,710 3,728 (18) -0.5%
Services and fees 7,879 8,694 (815) -9.4%
Amtz/impairment of intang
assets (Note 3) 11,655 5,389 6,266 116.3%
Loan expense 2,371 2,451 (80) -3.3%
Other expense 5,201 5,398 (197) -3.6%
---------- ---------- ---------
Total noninterest expense 69,726 59,656 10,070 16.9%
---------- ---------- ---------
Income before income taxes 39,860 46,416 (6,556) -14.1%
Tax equivalent adjustment 2,206 2,186 20 0.9%
Income taxes 13,170 14,884 (1,714) -11.5%
---------- ---------- ---------
Net income $ 24,484 $ 29,346 $ (4,862) -16.6%
========== ========== =========
Earnings per share
Basic $ 0.41 $ 0.48 $ (0.07) -14.6%
========== ========== =========
Diluted $ 0.41 $ 0.48 $ (0.07) -14.6%
========== ========== =========
Wtd average shares o/s
Basic 59,912,276 61,189,525
========== ==========
Diluted 60,055,751 61,292,213
========== ==========
Period end shares o/s 59,210,244 60,516,668
========== ==========
Dividends per share $ 0.1650 $ 0.1650
========== ==========
Period Ended
----------------------
NONPERFORMING ASSETS 3/31/2003 12/31/2002 $ Change % Change
- -------------------- ---------- ---------- --------- --------
Nonaccrual loans $ 31,769 $ 31,642 $ 127 0.4%
Restructured loans - - -
---------- ---------- ---------
Total nonperforming loans 31,769 31,642 127 0.4%
Other real estate 7,281 6,298 983 15.6%
---------- ---------- ---------
Total nonperforming assets 39,050 37,940 1,110 2.9%
Loans past due over 90 days 2,512 2,946 (434) -14.7%
---------- ---------- ---------
Total nonperforming
assets plus past
due over 90 days $ 41,562 $ 40,886 $ 676 1.7%
========== ========== =========
Quarter Ended
----------------------
ALLOWANCE FOR LOAN LOSSES 3/31/2003 12/31/2002 $ Change % Change
- ------------------------- ---------- ---------- --------- --------
Beginning Balance $ 74,771 $ 75,538 $ (767) -1.0%
Adjustments for business
combinations - - -
Charge-offs (5,191) (6,754) 1,563 -23.1%
Recoveries 2,287 2,187 100 4.6%
Provision for loan losses 3,000 3,800 (800) -21.1%
---------- ---------- ---------
Ending Balance $ 74,867 $ 74,771 $ 96 0.1%
========== ========== =========
Quarter Ended
-----------------------
RATIOS 3/31/2003 12/31/2002
- ------ ---------- ----------
ROA 1.40% 1.69%
ROE 14.88% 17.12%
Equity generation rate 8.89% 11.23%
EOP equity/ EOP assets 9.04% 9.52%
Average equity/average assets 9.41% 9.89%
Interest margin - Yield - FTE 5.99% 6.24%
Interest margin - Cost - FTE 1.50% 1.64%
Net interest margin - FTE 4.49% 4.60%
Rate on interest-bearing liabilities 1.86% 2.06%
Efficiency ratio (Note 3) 54.17% 54.14%
Expense ratio 2.31% 1.48%
Net charge offs/average loans 0.26% 0.39%
Provision for loan losses/average loans 0.26% 0.33%
Nonperforming loans/total loans 0.69% 0.69%
Nonperforming assets/total loans 0.84% 0.82%
Nonperforming assets/total loans+ORE 0.84% 0.82%
ALL/nonperforming loans 235.66% 236.30%
ALL/total loans 1.62% 1.62%
Net loans/total assets 62.36% 63.63%
Quarter Ended
-----------------------
COMMON STOCK PERFORMANCE 3/31/2003 12/31/2002
- ------------------------ ---------- ----------
Market value of stock-Close $ 23.760 $ 23.800
Market value of stock-High $ 24.800 $ 24.300
Market value of stock-Low $ 22.560 $ 20.350
Book value of stock $ 11.16 $ 11.23
Tangible book value of stock $ 9.31 $ 9.25
Market/Book value of stock 212.90% 211.93%
Price/Earnings ratio 14.29 12.50
Dividend payout 40.24% 34.38%
Quarter Ended
-----------------------
OTHER DATA 3/31/2003 12/31/2002
- ---------- ---------- ----------
EOP Employees - FTE 2,283 2,443
NOTES TO CONSOLIDATED FINANCIAL INFORMATION
Note 1 - Business Combinations
On June 28, 2002, The Bottrell Insurance Agency, Inc., a
wholly-owned subsidiary of Trustmark National Bank, acquired
Chandler-Sampson Insurance, Inc. (CSI) in Jackson, Mississippi.
This business combination, which is not material to Trustmark,
was accounted for under the purchase method of accounting. The
shareholders of CSI received $8 million in cash in connection
with the merger. Excess cost over tangible net assets acquired
totaled $10 million, of which $3 million and $7 million have been
allocated to other identifiable intangible assets and goodwill,
respectively.
Note 2 - Early Retirement Program
In February 2003, Trustmark announced a voluntary early
retirement program (ERP) for associates age 58 and above with ten
or more years of service. This program was accepted by 116
associates, or 4.75% of Trustmark's workforce. A one-time
after-tax charge of approximately $4.1 million, or $0.07 per
share, was recognized in Trustmark's first quarter 2003 earnings.
The following table demonstrates the effects of this program on
Trustmark's results of operations and ratios:
Quarter Ended
----------------------------------
3/31/2003 12/31/2002 3/31/2002
---------- ---------- ----------
Net income, as reported $ 24,484 $ 29,346 $ 30,329
Add back ERP charge, net
of tax 4,085 - -
---------- ---------- ----------
Net income adjusted for ERP $ 28,569 $ 29,346 $ 30,329
========== ========== ==========
Earnings per share adjusted
for ERP
Basic $ 0.48 $ 0.48 $ 0.48
========== ========== ==========
Diluted $ 0.48 $ 0.48 $ 0.48
========== ========== ==========
Ratios adjusted for ERP
ROA 1.63% 1.69% 1.79%
ROE 17.36% 17.12% 18.22%
Efficiency ratio (Note 3) 54.17% 54.14% 50.95%
Note 3 - Efficiency Ratio Calculation
The efficiency ratio is calculated by dividing total noninterest
expense by tax-equivalent net interest income plus noninterest
income, excluding security gains and demonstrates how much a
company spends for each dollar of revenue earned. The efficiency
ratio has been adjusted for the following transactions:
2003 2002
-------------- ----------------
1Q YTD 1Q YTD
------ ------ ------- -------
Other income
Valuation adjustments -
interest rate contracts $ (269) $ (269) $ (814) $ (814)
Salaries and employee benefits
Early retirement program $6,285 $6,285 $ - $ -
Amortization/impairment of
intangible assets
Impairment of mortgage
servicing rights $6,722 $6,722 $(2,000) $(2,000)