x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 for the fiscal year ended December 31,
2008
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Large accelerated
filer
x
|
Accelerated
filer
o
|
Non-accelerated filer
o
|
Smaller
reporting company
o
|
(Do
not check if a smaller reporting company)
|
PART
I
|
PAGE
|
|
Item
1.
|
3
|
|
Item
1A
|
9
|
|
Item
1B.
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14
|
|
Item
2.
|
14
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|
Item
3.
|
14
|
|
Item
4.
|
15
|
|
PART
II
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||
Item
5.
|
15
|
|
Item
6.
|
17
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Item
7.
|
19
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|
Item
7A.
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47
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Item
8.
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49
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|
Item
9.
|
84
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Item
9A.
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84
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Item
9B.
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85
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PART
III
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||
Item
10.
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86
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Item
11.
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86
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Item
12.
|
86
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|
Item
13.
|
86
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|
Item
14.
|
86
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PART
IV
|
||
Item
15.
|
86
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|
SIGNATURES | 89 |
|
·
|
In
general, for a given change in interest rates, the amount of the change in
value up or down is larger for instruments with longer remaining
maturities. The shape of the yield curve may affect new loan
yields and funding costs
differently.
|
|
·
|
The
remaining maturity of various assets or liabilities may shorten or
lengthen as interest rates change. For example, if long-term
mortgage interest rates decline sharply, higher fixed-rate mortgages may
prepay, or pay down, faster than anticipated, thus reducing future cash
flows and interest income.
|
|
·
|
Repricing
frequencies and maturity profiles for assets and liabilities may occur at
different times. For example, in a falling rate environment, if assets
reprice faster than liabilities, there will be an initial decline in
earnings. Moreover, if assets and liabilities reprice at the
same time, they may not be by the same increment. For instance,
if the Federal funds rate increased 50 basis points, demand deposits may
rise by 10 basis points, whereas prime based loans will instantly rise 50
basis points.
|
|
·
|
Trustmark
may expect to face increased regulation of its industry, including as a
result of the Emergency Economic Stabilization Act of 2008 and of its
issuance to the Treasury of its Senior Preferred Stock and warrants under
the Capital Purchase Program. Compliance with such regulation
may increase its costs and limit its ability to pursue business
opportunities.
|
|
·
|
Market
developments and the resulting economic pressure on consumers may affect
consumer confidence levels and may cause increases in delinquencies and
default rates, which, among other effects, could affect Trustmark’s
charge-offs and provision for loan
losses.
|
|
·
|
Competition
in the industry could intensify as a result of the increasing
consolidation of financial services companies in connection with current
market conditions.
|
|
·
|
The
current market disruptions make valuation even more difficult and
subjective, and Trustmark’s ability to measure the fair value of
Trustmark’s assets could be adversely affected. If Trustmark
determines that a significant portion of its assets have values that are
significantly below their recorded carrying value, Trustmark could
recognize a material charge to earnings in the quarter during which such
determination was made, Trustmark’s capital ratios would be adversely
affected and a rating agency might downgrade its credit rating or put
Trustmark on credit watch.
|
2008
|
2007
|
||||||||||||||||
Sales
Price Per Share
|
High
|
Low
|
High
|
Low
|
|||||||||||||
First
quarter
|
$ | 25.72 | $ | 17.60 | $ | 33.69 | $ | 26.85 | |||||||||
Second
quarter
|
24.00 | 17.64 | 28.76 | 25.04 | |||||||||||||
Third
quarter
|
34.00 | 14.31 | 30.15 | 24.13 | |||||||||||||
Fourth
quarter
|
23.50 | 14.51 | 29.71 | 23.10 | |||||||||||||
Dividends
Per Share
|
|
2008
|
2007
|
||||||||||||||
First
quarter
|
$ | 0.23 | $ | 0.22 | |||||||||||||
Second
quarter
|
0.23 | 0.22 | |||||||||||||||
Third
quarter
|
0.23 | 0.22 | |||||||||||||||
Fourth
quarter
|
0.23 | 0.23 | |||||||||||||||
Total
|
$ | 0.92 | $ | 0.89 |
Plan
Category
|
Number
of securities to be issued upon exercise of outstanding options, warrants
and rights (a)
|
Weighted
average exercise price of outstanding options, warrants and
rights
|
Number
of securities remaining available for future issuance under equity
compensations plans (excluding (a))
|
||||||||||
Approved
by security holders
|
1,796,174 | $ | 25.57 | 5,519,825 | |||||||||
Not
approved by security holders
|
- | - | - | ||||||||||
Total
|
1,796,174 | $ | 25.57 | 5,519,825 |
Company
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
||||||||||||||||||
Trustmark
|
100 | 108.94 | 99.13 | 121.31 | 97.15 | 86.64 | ||||||||||||||||||
Hemscott
Industry Group 413
|
100 | 114.98 | 116.43 | 137.18 | 93.76 | 55.37 | ||||||||||||||||||
NASDAQ
|
100 | 108.41 | 110.79 | 122.16 | 134.29 | 79.25 |
Years
Ended December 31,
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||||||
Consolidated
Statements of Income
|
||||||||||||||||||||
Total
interest income
|
$ | 483,279 | $ | 543,143 | $ | 482,746 | $ | 415,697 | $ | 364,355 | ||||||||||
Total
interest expense
|
164,119 | 242,360 | 202,175 | 139,256 | 88,738 | |||||||||||||||
Net
interest income
|
319,160 | 300,783 | 280,571 | 276,441 | 275,617 | |||||||||||||||
Provision
for loan losses
|
76,412 | 23,784 | (5,938 | ) | 19,541 | (3,055 | ) | |||||||||||||
Noninterest
income
|
177,258 | 162,447 | 155,128 | 143,107 | 124,028 | |||||||||||||||
Noninterest
expense
|
283,719 | 276,449 | 260,480 | 243,276 | 225,309 | |||||||||||||||
Income
before income taxes
|
136,287 | 162,997 | 181,157 | 156,731 | 177,391 | |||||||||||||||
Income
taxes
|
43,870 | 54,402 | 61,884 | 53,780 | 60,682 | |||||||||||||||
Net
Income
|
92,417 | 108,595 | 119,273 | 102,951 | 116,709 | |||||||||||||||
Preferred
stock dividend/discount accretion
|
1,353 | - | - | - | - | |||||||||||||||
Net
Income Available to Common Shareholders
|
$ | 91,064 | $ | 108,595 | $ | 119,273 | $ | 102,951 | $ | 116,709 | ||||||||||
Common
Share Data
|
||||||||||||||||||||
Basic
earnings per share
|
$ | 1.59 | $ | 1.88 | $ | 2.11 | $ | 1.82 | $ | 2.01 | ||||||||||
Diluted
earnings per share
|
1.59 | 1.88 | 2.09 | 1.81 | 2.00 | |||||||||||||||
Cash
dividends per share
|
0.92 | 0.89 | 0.85 | 0.81 | 0.77 | |||||||||||||||
Performance
Ratios
|
||||||||||||||||||||
Return
on average common equity
|
9.62 | % | 12.02 | % | 14.89 | % | 13.86 | % | 16.11 | % | ||||||||||
Return
on average tangible common equity
|
14.88 | % | 19.17 | % | 20.78 | % | 18.24 | % | 19.80 | % | ||||||||||
Return
on average total equity
|
9.53 | % | 12.02 | % | 14.89 | % | 13.86 | % | 16.11 | % | ||||||||||
Return
on average assets
|
1.01 | % | 1.23 | % | 1.42 | % | 1.25 | % | 1.43 | % | ||||||||||
December
31,
|
||||||||||||||||||||
Consolidated
Balance Sheets
|
||||||||||||||||||||
Total
assets
|
$ | 9,790,909 | $ | 8,966,802 | $ | 8,840,970 | $ | 8,389,750 | $ | 8,052,957 | ||||||||||
Securities
|
1,802,470 | 717,441 | 1,050,515 | 1,295,784 | 1,655,621 | |||||||||||||||
Loans
(including loans held for sale)
|
6,960,668 | 7,188,300 | 6,658,528 | 6,060,279 | 5,447,006 | |||||||||||||||
Deposits
|
6,823,870 | 6,869,272 | 6,976,164 | 6,282,814 | 5,450,093 | |||||||||||||||
Common
shareholders' equity
|
973,340 | 919,636 | 891,335 | 741,463 | 750,396 | |||||||||||||||
Preferred
shareholder equity
|
205,126 | - | - | - | - | |||||||||||||||
Capital
Ratios
|
||||||||||||||||||||
Total
equity/total assets
|
12.04 | % | 10.26 | % | 10.08 | % | 8.84 | % | 9.32 | % | ||||||||||
Common
equity/total assets
|
9.94 | % | 10.26 | % | 10.08 | % | 8.84 | % | 9.32 | % | ||||||||||
Tangible
equity/tangible assets
|
9.11 | % | 6.94 | % | 6.67 | % | 7.00 | % | 7.37 | % | ||||||||||
Tangible
common equity/tangible assets
|
6.95 | % | 6.94 | % | 6.67 | % | 7.00 | % | 7.37 | % | ||||||||||
Tier
1 leverage ratio
|
10.42 | % | 7.86 | % | 7.65 | % | 7.19 | % | 7.22 | % | ||||||||||
Tier
1 risk-based capital ratio
|
13.01 | % | 9.17 | % | 9.60 | % | 9.53 | % | 10.39 | % | ||||||||||
Total
risk-based capital ratio
|
14.95 | % | 10.93 | % | 11.40 | % | 10.78 | % | 11.55 | % |
2008
|
1Q
|
2Q
|
3Q
|
4Q
|
||||||||||||
Interest
income
|
$ | 126,014 | $ | 120,441 | $ | 118,032 | $ | 118,792 | ||||||||
Net
interest income
|
74,749 | 77,618 | 79,396 | 87,397 | ||||||||||||
Provision
for loan losses
|
14,243 | 31,012 | 14,473 | 16,684 | ||||||||||||
Noninterest
income
|
48,516 | 48,466 | 41,950 | 38,326 | ||||||||||||
Noninterest
expense
|
69,826 | 69,614 | 72,734 | 71,545 | ||||||||||||
Income
before income taxes
|
39,196 | 25,458 | 34,139 | 37,494 | ||||||||||||
Net
income
|
26,179 | 17,552 | 23,354 | 25,332 | ||||||||||||
Net
income available to common shareholders
|
26,179 | 17,552 | 23,354 | 23,979 | ||||||||||||
Earnings
per common share
|
||||||||||||||||
Basic
|
0.46 | 0.31 | 0.41 | 0.42 | ||||||||||||
Diluted
|
0.46 | 0.31 | 0.41 | 0.42 | ||||||||||||
2007
|
||||||||||||||||
Interest
income
|
$ | 130,693 | $ | 134,469 | $ | 137,593 | $ | 140,388 | ||||||||
Net
interest income
|
71,942 | 73,832 | 75,086 | 79,923 | ||||||||||||
Provision
for loan losses
|
1,639 | 145 | 4,999 | 17,001 | ||||||||||||
Noninterest
income
|
38,151 | 40,470 | 41,569 | 42,257 | ||||||||||||
Noninterest
expense
|
69,406 | 68,833 | 68,488 | 69,722 | ||||||||||||
Income
before income taxes
|
39,048 | 45,324 | 43,168 | 35,457 | ||||||||||||
Net
income
|
25,857 | 29,828 | 29,081 | 23,829 | ||||||||||||
Net
income available to common shareholders
|
25,857 | 29,828 | 29,081 | 23,829 | ||||||||||||
Earnings
per share
|
||||||||||||||||
Basic
|
0.44 | 0.52 | 0.51 | 0.42 | ||||||||||||
Diluted
|
0.44 | 0.51 | 0.51 | 0.42 |
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Years
Ended December 31,
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amount
|
Basic
EPS
|
Amount
|
Basic
EPS
|
Amount
|
Basic
EPS
|
|||||||||||||||||||
Net
Income available to common shareholders
|
$ | 91,064 | $ | 1.589 | $ | 108,595 | $ | 1.882 | $ | 119,273 | $ | 2.106 | ||||||||||||
Adjustments
(net of taxes):
|
||||||||||||||||||||||||
MasterCard
Class A Common
|
(3,308 | ) | (0.058 | ) | - | - | - | - | ||||||||||||||||
Visa
Litigation Contingency
|
(936 | ) | (0.016 | ) | 494 | 0.009 | - | - | ||||||||||||||||
Hurricane
Katrina
|
- | - | (665 | ) | (0.012 | ) | (5,688 | ) | (0.100 | ) | ||||||||||||||
Correction
of Accounting Error
|
- | - | (1,623 | ) | (0.028 | ) | - | - | ||||||||||||||||
(4,244 | ) | (0.074 | ) | (1,794 | ) | (0.031 | ) | (5,688 | ) | (0.100 | ) | |||||||||||||
Net
Income adjusted for specific items (Non-GAAP)
|
$ | 86,820 | $ | 1.515 | $ | 106,801 | $ | 1.851 | $ | 113,585 | $ | 2.006 |
Yield/Rate
Analysis Table
|
||||||||||||||||||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||||||||||||||||||
Years
Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Federal
funds sold and securities purchased under reverse repurchase
agreements
|
$ | 23,422 | $ | 502 | 2.14 | % | $ | 40,850 | $ | 2,147 | 5.26 | % | $ | 26,004 | $ | 1,327 | 5.10 | % | ||||||||||||||||||
Securities
available for sale:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
794,443 | 37,257 | 4.69 | % | 573,940 | 22,367 | 3.90 | % | 846,718 | 31,565 | 3.73 | % | ||||||||||||||||||||||||
Nontaxable
|
38,188 | 2,218 | 5.81 | % | 50,763 | 3,539 | 6.97 | % | 57,720 | 4,028 | 6.98 | % | ||||||||||||||||||||||||
Securities
held to maturity:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
182,373 | 8,904 | 4.88 | % | 195,468 | 9,417 | 4.82 | % | 200,501 | 10,010 | 4.99 | % | ||||||||||||||||||||||||
Nontaxable
|
76,304 | 5,648 | 7.40 | % | 86,030 | 6,404 | 7.44 | % | 93,439 | 7,007 | 7.50 | % | ||||||||||||||||||||||||
Loans
(including loans held for sale)
|
7,022,747 | 436,064 | 6.21 | % | 6,893,402 | 504,043 | 7.31 | % | 6,297,161 | 436,587 | 6.93 | % | ||||||||||||||||||||||||
Other
earning assets
|
41,251 | 1,822 | 4.42 | % | 37,133 | 2,116 | 5.70 | % | 38,770 | 2,230 | 5.75 | % | ||||||||||||||||||||||||
Total
interest-earning assets
|
8,178,728 | 492,415 | 6.02 | % | 7,877,586 | 550,033 | 6.98 | % | 7,560,313 | 492,754 | 6.52 | % | ||||||||||||||||||||||||
Cash
and due from banks
|
245,748 | 287,113 | 327,320 | |||||||||||||||||||||||||||||||||
Other
assets
|
792,835 | 753,503 | 614,779 | |||||||||||||||||||||||||||||||||
Allowance
for loan losses
|
(86,124 | ) | (72,365 | ) | (74,924 | ) | ||||||||||||||||||||||||||||||
Total
Assets
|
$ | 9,131,187 | $ | 8,845,837 | $ | 8,427,488 | ||||||||||||||||||||||||||||||
Liabilities
and Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 1,215,668 | 20,742 | 1.71 | % | $ | 1,186,683 | 39,217 | 3.30 | % | $ | 1,003,649 | 26,875 | 2.68 | % | |||||||||||||||||||||
Savings
deposits
|
1,776,397 | 23,032 | 1.30 | % | 1,708,378 | 38,977 | 2.28 | % | 1,677,921 | 31,037 | 1.85 | % | ||||||||||||||||||||||||
Time
deposits
|
2,598,472 | 96,148 | 3.70 | % | 2,625,327 | 122,181 | 4.65 | % | 2,367,263 | 95,928 | 4.05 | % | ||||||||||||||||||||||||
Federal
funds purchased and securities sold under repurchase
agreements
|
626,767 | 10,393 | 1.66 | % | 447,438 | 20,224 | 4.52 | % | 471,386 | 20,228 | 4.29 | % | ||||||||||||||||||||||||
Short-term
borrowings
|
276,974 | 7,032 | 2.54 | % | 269,102 | 13,723 | 5.10 | % | 520,942 | 25,965 | 4.98 | % | ||||||||||||||||||||||||
Long-term
FHLB advances
|
- | - | - | - | - | - | 2,825 | 104 | 3.68 | % | ||||||||||||||||||||||||||
Subordinated
notes
|
49,724 | 2,894 | 5.82 | % | 49,692 | 2,894 | 5.82 | % | 2,586 | 138 | 5.34 | % | ||||||||||||||||||||||||
Junior
subordinated debt securities
|
70,104 | 3,878 | 5.53 | % | 70,104 | 5,144 | 7.34 | % | 25,895 | 1,900 | 7.34 | % | ||||||||||||||||||||||||
Total
interest-bearing liabilities
|
6,614,106 | 164,119 | 2.48 | % | 6,356,724 | 242,360 | 3.81 | % | 6,072,467 | 202,175 | 3.33 | % | ||||||||||||||||||||||||
Noninterest-bearing
demand deposits
|
1,412,312 | 1,455,494 | 1,417,470 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
134,708 | 130,244 | 136,674 | |||||||||||||||||||||||||||||||||
Shareholders'
equity
|
970,061 | 903,375 | 800,877 | |||||||||||||||||||||||||||||||||
Total
Liabilities and
Shareholders'
Equity
|
$ | 9,131,187 | $ | 8,845,837 | $ | 8,427,488 | ||||||||||||||||||||||||||||||
Net
Interest Margin
|
328,296 | 4.01 | % | 307,673 | 3.91 | % | 290,579 | 3.84 | % | |||||||||||||||||||||||||||
Correction
of accounting error
|
- | 2,628 | - | |||||||||||||||||||||||||||||||||
Less
tax equivalent adjustments:
|
||||||||||||||||||||||||||||||||||||
Investments
|
2,753 | 3,480 | 3,862 | |||||||||||||||||||||||||||||||||
Loans
|
6,383 | 6,038 | 6,146 | |||||||||||||||||||||||||||||||||
Net
Interest Margin per Income Statements
|
$ | 319,160 | $ | 300,783 | $ | 280,571 |
Volume/Rate
Analysis Table
|
2008
Compared to 2007
|
2007
Compared to 2006
|
||||||||||||||||||||||
($
in thousands)
|
Increase
(Decrease) Due To:
|
Increase
(Decrease) Due To:
|
||||||||||||||||||||||
Yield/
|
Yield/
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
Interest
earned on:
|
||||||||||||||||||||||||
Federal
funds sold and securities purchased under reverse repurchase
agreements
|
$ | (688 | ) | $ | (957 | ) | $ | (1,645 | ) | $ | 777 | $ | 43 | $ | 820 | |||||||||
Securities
available for sale:
|
||||||||||||||||||||||||
Taxable
|
9,750 | 5,140 | 14,890 | (10,580 | ) | 1,382 | (9,198 | ) | ||||||||||||||||
Nontaxable
|
(790 | ) | (531 | ) | (1,321 | ) | (483 | ) | (6 | ) | (489 | ) | ||||||||||||
Securities
held to maturity:
|
||||||||||||||||||||||||
Taxable
|
(630 | ) | 117 | (513 | ) | (251 | ) | (342 | ) | (593 | ) | |||||||||||||
Nontaxable
|
(722 | ) | (34 | ) | (756 | ) | (548 | ) | (55 | ) | (603 | ) | ||||||||||||
Loans,
net of unearned income
|
9,277 | (77,256 | ) | (67,979 | ) | 42,718 | 24,738 | 67,456 | ||||||||||||||||
Other
earning assets
|
217 | (511 | ) | (294 | ) | (95 | ) | (19 | ) | (114 | ) | |||||||||||||
Total
interest-earning assets
|
16,414 | (74,032 | ) | (57,618 | ) | 31,538 | 25,741 | 57,279 | ||||||||||||||||
Interest
paid on:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
930 | (19,405 | ) | (18,475 | ) | 5,440 | 6,902 | 12,342 | ||||||||||||||||
Savings
deposits
|
1,487 | (17,432 | ) | (15,945 | ) | 575 | 7,365 | 7,940 | ||||||||||||||||
Time
deposits
|
(1,242 | ) | (24,791 | ) | (26,033 | ) | 11,129 | 15,124 | 26,253 | |||||||||||||||
Federal
funds purchased and securities sold
under repurchase
agreements
|
6,113 | (15,944 | ) | (9,831 | ) | (1,057 | ) | 1,053 | (4 | ) | ||||||||||||||
Short-term
borrowings
|
390 | (7,081 | ) | (6,691 | ) | (12,852 | ) | 610 | (12,242 | ) | ||||||||||||||
Long-term
FHLB advances
|
- | - | - | (104 | ) | - | (104 | ) | ||||||||||||||||
Subordinated
notes
|
- | - | - | 2,536 | 220 | 2,756 | ||||||||||||||||||
Junior
subordinated debt securities
|
763 | (2,029 | ) | (1,266 | ) | 3,244 | - | 3,244 | ||||||||||||||||
Total
interest-bearing liabilities
|
8,441 | (86,682 | ) | (78,241 | ) | 8,911 | 31,274 | 40,185 | ||||||||||||||||
Change
in net interest income on a tax equivalent basis
|
$ | 7,973 | $ | 12,650 | $ | 20,623 | $ | 22,627 | $ | (5,533 | ) | $ | 17,094 |
($
in thousands)
|
Years
Ended December 31,
|
|||||||||||
2008
|
2007
|
2006
|
||||||||||
Florida
|
$ | 43,360 | $ | 16,463 | $ | (501 | ) | |||||
Mississippi
(1)
|
20,706 | 3,488 | 1,194 | |||||||||
Tennessee
(2)
|
4,707 | 1,837 | (965 | ) | ||||||||
Texas
|
7,639 | 1,996 | (5,666 | ) | ||||||||
Total
provision for loan losses
|
$ | 76,412 | $ | 23,784 | $ | (5,938 | ) |
Noninterest
Income
|
||||||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amount
|
%
Change
|
Amount
|
%
Change
|
Amount
|
%
Change
|
|||||||||||||||||||
Service
charges on deposit accounts
|
$ | 53,717 | -0.9 | % | $ | 54,179 | 1.8 | % | $ | 53,212 | 4.3 | % | ||||||||||||
Insurance
commissions
|
32,440 | -8.1 | % | 35,286 | 4.2 | % | 33,871 | 2.6 | % | |||||||||||||||
Wealth
management
|
27,600 | 7.2 | % | 25,755 | 11.1 | % | 23,183 | 7.4 | % | |||||||||||||||
General
banking-other
|
23,230 | -6.6 | % | 24,876 | 8.8 | % | 22,867 | 9.8 | % | |||||||||||||||
Mortgage
banking, net
|
26,480 | n/m | 12,024 | 19.9 | % | 10,030 | 71.6 | % | ||||||||||||||||
Other,
net
|
13,286 | 30.1 | % | 10,215 | 1.7 | % | 10,043 | -30.6 | % | |||||||||||||||
Total
Noninterest Income before securities gains, net
|
176,753 | 8.9 | % | 162,335 | 6.0 | % | 153,206 | 4.4 | % | |||||||||||||||
Securities
gains, net
|
505 | n/m | 112 | n/m | 1,922 | n/m | ||||||||||||||||||
Total
Noninterest Income
|
$ | 177,258 | 9.1 | % | $ | 162,447 | 4.7 | % | $ | 155,128 | 8.4 | % |
Mortgage
Banking Income
|
||||||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amount
|
%
Change
|
Amount
|
%
Change
|
Amount
|
%
Change
|
|||||||||||||||||||
Mortgage
servicing income, net
|
$ | 15,741 | 11.0 | % | $ | 14,184 | 7.1 | % | $ | 13,248 | 6.7 | % | ||||||||||||
Change
in fair value-MSR from market changes
|
(34,838 | ) | n/m | (9,460 | ) | n/m | 3,122 | n/m | ||||||||||||||||
Change
in fair value of derivatives
|
45,986 | n/m | 10,644 | n/m | (2,298 | ) | n/m | |||||||||||||||||
Change
in fair value-MSR from runoff
|
(8,987 | ) | 3.8 | % | (9,343 | ) | 5.2 | % | (9,858 | ) | n/m | |||||||||||||
Gain
on sales of loans
|
5,968 | 5.5 | % | 5,659 | 2.8 | % | 5,505 | n/m | ||||||||||||||||
Other,
net
|
2,610 | n/m | 340 | 9.3 | % | 311 | -51.3 | % | ||||||||||||||||
Mortgage
banking, net
|
$ | 26,480 | n/m | $ | 12,024 | 19.9 | % | $ | 10,030 | 71.6 | % |
Noninterest
Expense
|
||||||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amount
|
%
Change
|
Amount
|
%
Change
|
Amount
|
%
Change
|
|||||||||||||||||||
Salaries
and employee benefits
|
$ | 171,137 | 0.2 | % | $ | 170,722 | 6.9 | % | $ | 159,690 | 6.6 | % | ||||||||||||
Services
and fees
|
38,379 | 3.0 | % | 37,259 | 1.6 | % | 36,659 | 7.8 | % | |||||||||||||||
Net
occupancy-premises
|
19,508 | 5.4 | % | 18,517 | 8.2 | % | 17,120 | 12.0 | % | |||||||||||||||
Equipment
expense
|
16,632 | 3.7 | % | 16,039 | 7.7 | % | 14,899 | -1.9 | % | |||||||||||||||
Other
expense
|
38,063 | 12.2 | % | 33,912 | 5.6 | % | 32,112 | 10.7 | % | |||||||||||||||
Total
Noninterest Expense
|
$ | 283,719 | 2.6 | % | $ | 276,449 | 6.1 | % | $ | 260,480 | 7.1 | % |
2008
|
2007
|
2006
|
||||||||||
General
Banking
|
$ | 55,724 | $ | 104,092 | $ | 115,847 | ||||||
Insurance
|
5,377 | 6,908 | 6,663 | |||||||||
Wealth
Management
|
7,569 | 6,850 | 5,648 | |||||||||
Administration
|
23,747 | (9,255 | ) | (8,885 | ) | |||||||
Consolidated
Net Income
|
$ | 92,417 | $ | 108,595 | $ | 119,273 |
Amortized
Cost of Securities by Type
|
December
31,
|
|||||||||||
($
in thousands)
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Securities
available for sale
|
||||||||||||
U.S.
Treasury and other U.S. Government agencies
|
$ | 31,323 | $ | 8,005 | $ | 11,444 | ||||||
Obligations
of states and political subdivisions
|
98,323 | 45,704 | 56,839 | |||||||||
Mortgage-backed
securities
|
1,375,176 | 318,815 | 607,651 | |||||||||
Corporate
debt securities
|
8,254 | 70,971 | 93,735 | |||||||||
Total
securities available for sale
|
$ | 1,513,076 | $ | 443,495 | $ | 769,669 | ||||||
Securities
held to maturity
|
||||||||||||
Obligations
of states and political subdivisions
|
$ | 102,901 | $ | 114,497 | $ | 129,879 | ||||||
Mortgage-backed
securities
|
156,728 | 160,473 | 162,245 | |||||||||
Other
securities
|
- | 126 | 119 | |||||||||
Total
securities held to maturity
|
$ | 259,629 | $ | 275,096 | $ | 292,243 |
Maturity/Yield
Analysis Table
|
Maturing
|
|||||||||||||||||||||||||||||||||||
($
in thousands)
|
After
One,
|
After
Five,
|
||||||||||||||||||||||||||||||||||
Within
|
But
Within
|
But
Within
|
After
|
|||||||||||||||||||||||||||||||||
Securities
available for sale
|
One
Year
|
Yield
|
Five
Years
|
Yield
|
Ten
Years
|
Yield
|
Ten
Years
|
Yield
|
Total
|
|||||||||||||||||||||||||||
U.S.
Treasury and other U.S.
|
||||||||||||||||||||||||||||||||||||
Government
agencies
|
$ | 6,502 | 2.05 | % | $ | - | - | $ | 24,821 | 5.42 | % | $ | - | - | $ | 31,323 | ||||||||||||||||||||
Obligations
of states and political subdivisions
|
48,856 | 7.55 | % | 26,218 | 6.14 | % | 16,103 | 5.62 | % | 7,146 | 5.48 | % | 98,323 | |||||||||||||||||||||||
Mortgage-backed
securities
|
11 | 6.34 | % | 637 | 6.10 | % | 30,824 | 4.67 | % | 1,343,704 | 5.24 | % | 1,375,176 | |||||||||||||||||||||||
Corporate
debt securities
|
2,066 | 4.13 | % | 6,188 | 4.46 | % | - | - | - | - | 8,254 | |||||||||||||||||||||||||
Total
securities available for sale
|
$ | 57,435 | 6.80 | % | $ | 33,043 | 5.82 | % | $ | 71,748 | 5.14 | % | $ | 1,350,850 | 5.24 | % | $ | 1,513,076 | ||||||||||||||||||
Securities
held to maturity
|
||||||||||||||||||||||||||||||||||||
Obligations
of states and political subdivisions
|
$ | 12,789 | 6.87 | % | $ | 29,056 | 7.21 | % | $ | 44,884 | 7.48 | % | $ | 16,172 | 8.24 | % | $ | 102,901 | ||||||||||||||||||
Mortgage-backed
securities
|
- | - | - | - | - | - | 156,728 | 4.55 | % | 156,728 | ||||||||||||||||||||||||||
Total
securities held to maturity
|
$ | 12,789 | 6.87 | % | $ | 29,056 | 7.21 | % | $ | 44,884 | 7.48 | % | $ | 172,900 | 4.90 | % | $ | 259,629 |
Loan
Portfolio by Type
|
||||||||||||||||||||
($
in thousands)
|
December
31,
|
|||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Loans
secured by real estate:
|
||||||||||||||||||||
Construction,
land development and other land loans
|
$ | 1,028,788 | $ | 1,194,940 | $ | 896,254 | $ | 715,174 | $ | 661,808 | ||||||||||
Secured
by 1-4 family residential properties
|
1,524,061 | 1,694,757 | 1,842,886 | 1,901,196 | 1,682,249 | |||||||||||||||
Secured
by nonfarm, nonresidential properties
|
1,422,658 | 1,325,379 | 1,326,658 | 1,061,669 | 893,836 | |||||||||||||||
Other
real estate secured
|
186,915 | 167,610 | 148,921 | 166,685 | 156,140 | |||||||||||||||
Loans
to finance agricultural production and other loans to
farmers
|
18,641 | 23,692 | 23,938 | 40,162 | 29,885 | |||||||||||||||
Commercial
and industrial loans
|
1,305,938 | 1,283,014 | 1,106,460 | 861,167 | 865,436 | |||||||||||||||
Consumer
loans
|
895,046 | 1,087,337 | 934,261 | 880,868 | 802,334 | |||||||||||||||
Obligations
of states and political subdivisions
|
270,599 | 228,330 | 233,666 | 230,214 | 193,951 | |||||||||||||||
Loans
for purchasing or carrying securities
|
20,566 | 4,949 | 8,110 | 5,204 | 9,799 | |||||||||||||||
Other
loans
|
49,191 | 30,784 | 41,999 | 51,004 | 50,346 | |||||||||||||||
Loans
|
6,722,403 | 7,040,792 | 6,563,153 | 5,913,343 | 5,345,784 | |||||||||||||||
Loans
held for sale
|
238,265 | 147,508 | 95,375 | 146,936 | 101,222 | |||||||||||||||
Loans
(including loans held for sale)
|
$ | 6,960,668 | $ | 7,188,300 | $ | 6,658,528 | $ | 6,060,279 | $ | 5,447,006 |
Loan
Composition by Region
|
||||||||||||||||||||
($
in thousands)
|
December
31 ,2008
|
|||||||||||||||||||
Loan
Composition by Region
|
Total
|
Florida
|
Mississippi
(Central and Southern Regions)
|
Tennessee
(Memphis, TN and Northern MS Regions)
|
Texas
|
|||||||||||||||
Loans
secured by real estate:
|
||||||||||||||||||||
Construction,
land development and other land loans
|
$ | 1,028,788 | $ | 294,473 | $ | 397,779 | $ | 83,668 | $ | 252,868 | ||||||||||
Secured
by 1-4 family residential properties
|
1,524,061 | 91,559 | 1,224,662 | 175,321 | 32,519 | |||||||||||||||
Secured
by nonfarm, nonresidential properties
|
1,422,658 | 179,123 | 804,186 | 208,751 | 230,598 | |||||||||||||||
Other
real estate secured
|
186,915 | 12,632 | 141,951 | 13,551 | 18,781 | |||||||||||||||
Commercial
and industrial loans
|
1,305,938 | 18,814 | 941,563 | 61,391 | 284,170 | |||||||||||||||
Consumer
loans
|
895,046 | 3,206 | 848,835 | 31,400 | 11,605 | |||||||||||||||
Other
loans
|
358,997 | 18,505 | 313,564 | 18,070 | 8,858 | |||||||||||||||
Loans
|
$ | 6,722,403 | $ | 618,312 | $ | 4,672,540 | $ | 592,152 | $ | 839,399 | ||||||||||
Construction
and Land Development Loans by Region
|
||||||||||||||||||||
Lots
|
$ | 127,043 | $ | 76,849 | $ | 31,885 | $ | 5,524 | $ | 12,785 | ||||||||||
Development
|
212,965 | 35,927 | 91,465 | 11,657 | 73,916 | |||||||||||||||
Unimproved
land
|
301,759 | 114,232 | 106,522 | 34,049 | 46,956 | |||||||||||||||
1-4
family construction
|
191,351 | 29,246 | 89,644 | 11,936 | 60,525 | |||||||||||||||
Other
construction
|
195,670 | 38,219 | 78,263 | 20,502 | 58,686 | |||||||||||||||
Construction
and land development loans
|
$ | 1,028,788 | $ | 294,473 | $ | 397,779 | $ | 83,668 | $ | 252,868 |
Loan
Maturities by Category
|
||||||||||||||||
($
in thousands)
|
Maturing
|
|||||||||||||||
One
Year
|
||||||||||||||||
Within
|
Through
|
After
|
||||||||||||||
One
Year
|
Five
|
Five
|
||||||||||||||
or
Less
|
Years
|
Years
|
Total
|
|||||||||||||
Construction
and land development
|
$ | 797,774 | $ | 181,454 | $ | 49,560 | $ | 1,028,788 | ||||||||
Other
loans secured by real estate (excluding loans secured by 1-4 family
residential properties)
|
563,530 | 776,980 | 269,063 | 1,609,573 | ||||||||||||
Commercial
and industrial
|
744,490 | 495,111 | 66,337 | 1,305,938 | ||||||||||||
Other
loans (excluding consumer)
|
92,038 | 93,798 | 173,161 | 358,997 | ||||||||||||
Total
|
$ | 2,197,832 | $ | 1,547,343 | $ | 558,121 | $ | 4,303,296 |
Maturing
|
||||||||||||
One
Year
Through
Five
Years
|
After
Five
Years
|
Total
|
||||||||||
Above
loans due after one year which have:
|
||||||||||||
Predetermined
interest rates
|
$ | 1,505,495 | $ | 480,765 | $ | 1,986,260 | ||||||
Floating
interest rates
|
41,848 | 77,356 | 119,204 | |||||||||
Total
|
$ | 1,547,343 | $ | 558,121 | $ | 2,105,464 |
Nonperforming
Assets
|
||||||||
($
in thousands)
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Nonaccrual
loans
|
||||||||
Florida
|
$ | 75,092 | $ | 43,787 | ||||
Mississippi
(1)
|
18,703 | 13,723 | ||||||
Tennessee
(2)
|
3,638 | 4,431 | ||||||
Texas
|
16,605 | 3,232 | ||||||
Total
nonaccrual loans
|
114,038 | 65,173 | ||||||
Other
real estate
|
||||||||
Florida
|
21,265 | 995 | ||||||
Mississippi
(1)
|
6,113 | 1,123 | ||||||
Tennessee
(2)
|
8,862 | 6,084 | ||||||
Texas
|
2,326 | 146 | ||||||
Total
other real estate
|
38,566 | 8,348 | ||||||
Total
nonperforming assets
|
$ | 152,604 | $ | 73,521 |
Florida
Credit Quality
|
||||||||||||||||||||
($
in thousands)
|
Total
Loans
|
Criticized
Loans (1)
|
Classified
Loans (2)
|
Nonaccrual
Loans
|
Impaired
Loans (3)
|
|||||||||||||||
Construction
and land development loans:
|
||||||||||||||||||||
Lots
|
$ | 76,849 | $ | 21,174 | $ | 15,529 | $ | 10,386 | $ | 5,698 | ||||||||||
Development
|
35,927 | 17,462 | 17,462 | 17,461 | 8,636 | |||||||||||||||
Unimproved
land
|
114,232 | 69,462 | 36,247 | 20,496 | 19,680 | |||||||||||||||
1-4
family construction
|
29,246 | 12,626 | 12,626 | 9,630 | 9,630 | |||||||||||||||
Other
construction
|
38,219 | 24,952 | 13,959 | 9,328 | 6,482 | |||||||||||||||
Construction
and land development loans
|
294,473 | 145,676 | 95,823 | 67,301 | 50,126 | |||||||||||||||
Commercial,
commercial real estate and consumer
|
323,839 | 31,011 | 19,265 | 7,791 | 1,019 | |||||||||||||||
Total
Florida loans
|
$ | 618,312 | $ | 176,687 | $ | 115,088 | $ | 75,092 | $ | 51,145 |
Florida
Credit Quality (continued)
|
Total
Loans Less Impaired Loans
|
Loan
Loss Reserves
|
Loan
Loss Reserve % of Non-Impaired Loans
|
|||||||||
Construction
and land development loans:
|
||||||||||||
Lots
|
$ | 71,151 | $ | 3,542 | 4.98 | % | ||||||
Development
|
27,291 | 2,537 | 9.30 | % | ||||||||
Unimproved
land
|
94,552 | 5,043 | 5.33 | % | ||||||||
1-4
family construction
|
19,616 | 644 | 3.28 | % | ||||||||
Other
construction
|
31,737 | 2,850 | 8.98 | % | ||||||||
Construction
and land development loans
|
244,347 | 14,616 | 5.98 | % | ||||||||
Commercial,
commercial real estate and consumer
|
322,820 | 6,449 | 2.00 | % | ||||||||
Total
Florida loans
|
$ | 567,167 | $ | 21,065 | 3.71 | % |
(1)
|
Criticized
loans include all classified loans as defined in (2) below as well as
other loans that exhibit potential credit weaknesses that, if not
resolved, may ultimately result in a more severe
classification.
|
(2)
|
Classified
loans include those loans identified by management as exhibiting well
defined credit weaknesses that may jeopardize repayment in full of the
debt.
|
(3)
|
All
nonaccrual loans over $1 million are individually assessed for impairment
in accordance with SFAS No. 114. Impaired loans have been
determined to be collateral dependent and assessed using a fair value
approach. Fair value estimates begin with appraised values,
normally from recently received and reviewed
appraisals. Appraised values are adjusted down for costs
associated with asset disposal. When a loan is deemed to be
impaired, the full difference between book value and the most likely
estimate of the asset’s net realizable value is charged
off.
|
Analysis
of the Allowance for Loan Losses
|
Years
Ended December 31,
|
|||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Balance
at beginning of period
|
$ | 79,851 | $ | 72,098 | $ | 76,691 | $ | 64,757 | $ | 74,276 | ||||||||||
Loans
charged off:
|
||||||||||||||||||||
Real
estate loans
|
(48,182 | ) | (8,678 | ) | (1,511 | ) | (2,770 | ) | (3,009 | ) | ||||||||||
Loans
to finance agricultural production and other loans to
farmers
|
(3 | ) | (297 | ) | (3 | ) | (14 | ) | (19 | ) | ||||||||||
Commercial
and industrial
|
(3,182 | ) | (2,136 | ) | (1,670 | ) | (2,978 | ) | (1,178 | ) | ||||||||||
Consumer
|
(15,976 | ) | (10,207 | ) | (7,740 | ) | (8,147 | ) | (7,949 | ) | ||||||||||
All
other loans
|
(4,424 | ) | (5,472 | ) | (4,014 | ) | (2,913 | ) | (3,247 | ) | ||||||||||
Total
charge-offs
|
(71,767 | ) | (26,790 | ) | (14,938 | ) | (16,822 | ) | (15,402 | ) | ||||||||||
Recoveries
on loans previously charged off:
|
||||||||||||||||||||
Real
estate loans
|
208 | 57 | 152 | 135 | 30 | |||||||||||||||
Commercial
and industrial
|
1,137 | 1,356 | 1,729 | 1,006 | 1,029 | |||||||||||||||
Consumer
|
5,874 | 5,944 | 6,130 | 5,300 | 5,324 | |||||||||||||||
All
other loans
|
3,207 | 3,402 | 2,955 | 2,774 | 2,555 | |||||||||||||||
Total
recoveries
|
10,426 | 10,759 | 10,966 | 9,215 | 8,938 | |||||||||||||||
Net
charge-offs
|
(61,341 | ) | (16,031 | ) | (3,972 | ) | (7,607 | ) | (6,464 | ) | ||||||||||
Provision
for loan losses
|
76,412 | 23,784 | (5,938 | ) | 19,541 | (3,055 | ) | |||||||||||||
Allowance
of acquired bank
|
- | - | 5,317 | - | - | |||||||||||||||
Balance
at end of period
|
$ | 94,922 | $ | 79,851 | $ | 72,098 | $ | 76,691 | $ | 64,757 | ||||||||||
Percentage
of net charge-offs during period to average loans outstanding during the
period
|
0.87 | % | 0.23 | % | 0.06 | % | 0.13 | % | 0.12 | % |
Nonperforming
Assets
|
||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||
December
31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Nonaccrual
and restructed loans
|
$ | 114,038 | $ | 65,173 | $ | 36,399 | $ | 28,914 | $ | 21,864 | ||||||||||
Other
real estate (ORE)
|
38,566 | 8,348 | 2,509 | 4,107 | 5,615 | |||||||||||||||
Total
nonperforming assets
|
$ | 152,604 | $ | 73,521 | $ | 38,908 | $ | 33,021 | $ | 27,479 | ||||||||||
Nonperforming
assets/total loans (including loans held for sale) and ORE
|
2.18 | % | 1.02 | % | 0.58 | % | 0.56 | % | 0.51 | % | ||||||||||
Accruing
loans past due 90 days or more
|
$ | 5,139 | $ | 4,853 | $ | 2,957 | $ | 2,719 | $ | 5,284 | ||||||||||
Serviced
GNMA loans eligible for repurchase
|
18,095 | 11,847 | 8,510 | 22,769 | - | |||||||||||||||
Total
loans past due 90 days or more
|
$ | 23,234 | $ | 16,700 | $ | 11,467 | $ | 25,488 | $ | 5,284 |
Federal
funds purchased and securities sold under repurchase
agreements:
|
2008
|
2007
|
2006
|
|||||||||
Amount
outstanding at end of period
|
$ | 811,129 | $ | 460,763 | $ | 470,434 | ||||||
Weighted
average interest rate at end of period
|
0.18 | % | 3.30 | % | 4.50 | % | ||||||
Maximum
amount outstanding at any month end during each period
|
$ | 927,902 | $ | 525,142 | $ | 505,627 | ||||||
Average
amount outstanding during each period
|
$ | 626,767 | $ | 447,438 | $ | 471,386 | ||||||
Weighted
average interest rate during each period
|
1.66 | % | 4.52 | % | 4.29 | % |
Contractual
Obligations
|
||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||
Less
than
|
One
to Three
|
Three
to Five
|
After
|
|||||||||||||||||
One
Year
|
Years
|
Years
|
Five
Years
|
Total
|
||||||||||||||||
Subordinated
notes
|
$ | - | $ | - | $ | - | $ | 49,741 | $ | 49,741 | ||||||||||
Junior
subordinated debt securities
|
70,104 | 70,104 | ||||||||||||||||||
Operating
lease obligations
|
4,334 | 5,774 | 2,891 | 7,108 | 20,107 | |||||||||||||||
Time
deposits
|
2,264,597 | 245,479 | 30,930 | 17 | 2,541,023 | |||||||||||||||
FHLB
advances
|
450,000 | - | - | - | 450,000 | |||||||||||||||
TAF
borrowings
|
200,000 | - | - | - | 200,000 | |||||||||||||||
Securities
sold under repurchase agreements
|
198,273 | - | - | - | 198,273 | |||||||||||||||
Total
|
$ | 3,117,204 | $ | 251,253 | $ | 33,821 | $ | 126,970 | $ | 3,529,248 |
Regulatory
Capital Table
|
||||||||||||||||||||||||
($
in thousands)
|
||||||||||||||||||||||||
Actual
Regulatory Capital
|
Minimum
Regulatory
Capital
Required
|
Minimum
Regulatory Provision
to be Well-Capitalized
|
||||||||||||||||||||||
At
December 31, 2008:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 1,090,335 | 14.95 | % | $ | 583,571 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
1,045,769 | 14.52 | % | 576,082 | 8.00 | % | $ | 720,102 | 10.00 | % | ||||||||||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 949,365 | 13.01 | % | $ | 291,785 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
909,370 | 12.63 | % | 288,041 | 4.00 | % | $ | 432,061 | 6.00 | % | ||||||||||||||
Tier
1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 949,365 | 10.42 | % | $ | 273,353 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
909,370 | 10.13 | % | 269,197 | 3.00 | % | $ | 448,662 | 5.00 | % | ||||||||||||||
At
December 31, 2007:
|
||||||||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 805,649 | 10.93 | % | $ | 589,509 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
781,725 | 10.75 | % | 581,482 | 8.00 | % | $ | 726,852 | 10.00 | % | ||||||||||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 676,089 | 9.17 | % | $ | 294,755 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
658,059 | 9.05 | % | 290,741 | 4.00 | % | $ | 436,111 | 6.00 | % | ||||||||||||||
Tier
1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 676,089 | 7.86 | % | $ | 257,950 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
658,059 | 7.79 | % | 253,425 | 3.00 | % | $ | 422,375 | 5.00 | % |
Interest
Rate Exposure Analysis
|
Estimated
Annual % Change
|
|||||||
in
Net Interest Income
|
||||||||
2008
|
2007
|
|||||||
Change
in Interest Rates
|
||||||||
+200
basis points
|
-1.2 | % | 2.4 | % | ||||
+100
basis points
|
0.0 | % | 1.3 | % | ||||
-100
basis points
|
-3.1 | % | -1.7 | % | ||||
-200
basis points
|
n/m | -5.0 | % |
Economic
Value - at - Risk
|
Estimated
% Change
|
|||||||
in
Net Portfolio Value
|
||||||||
2008
|
2007
|
|||||||
Change
in Interest Rates
|
||||||||
+200
basis points
|
-4.1 | % | -3.7 | % | ||||
+100
basis points
|
-0.6 | % | -1.8 | % | ||||
-100
basis points
|
-1.5 | % | 1.0 | % | ||||
-200
basis points
|
n/m | 0.6 | % |
Consolidated
Balance Sheets
|
||||||||
($
in thousands except share data)
|
||||||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Cash
and due from banks (noninterest-bearing)
|
$ | 257,930 | $ | 292,983 | ||||
Federal
funds sold and securities purchased under reverse repurchase
agreements
|
23,401 | 17,997 | ||||||
Securities
available for sale (at fair value)
|
1,542,841 | 442,345 | ||||||
Securities
held to maturity (fair value: $264,039-2008;
$276,631-2007)
|
259,629 | 275,096 | ||||||
Loans
held for sale
|
238,265 | 147,508 | ||||||
Loans
|
6,722,403 | 7,040,792 | ||||||
Less
allowance for loan losses
|
94,922 | 79,851 | ||||||
Net
loans
|
6,627,481 | 6,960,941 | ||||||
Premises
and equipment, net
|
156,811 | 151,680 | ||||||
Mortgage
servicing rights
|
42,882 | 67,192 | ||||||
Goodwill
|
291,104 | 291,177 | ||||||
Identifiable
intangible assets
|
23,821 | 28,102 | ||||||
Other
assets
|
326,744 | 291,781 | ||||||
Total
Assets
|
$ | 9,790,909 | $ | 8,966,802 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 1,496,166 | $ | 1,477,171 | ||||
Interest-bearing
|
5,327,704 | 5,392,101 | ||||||
Total
deposits
|
6,823,870 | 6,869,272 | ||||||
Federal
funds purchased and securities sold under repurchase
agreements
|
811,129 | 460,763 | ||||||
Short-term
borrowings
|
730,958 | 474,354 | ||||||
Subordinated
notes
|
49,741 | 49,709 | ||||||
Junior
subordinated debt securities
|
70,104 | 70,104 | ||||||
Other
liabilities
|
126,641 | 122,964 | ||||||
Total
Liabilities
|
8,612,443 | 8,047,166 | ||||||
Commitments
and Contingencies
|
||||||||
Shareholders'
Equity
|
||||||||
Preferred
stock - authorized 20,000,000 shares
|
||||||||
Series
A, no par value, (liquidation preference $1,000 per share)
|
||||||||
Issued
and outstanding: 215,000 shares - 2008
|
205,126 | - | ||||||
Common
stock, no par value:
|
||||||||
Authorized: 250,000,000
shares
|
||||||||
Issued
and outstanding: 57,324,737 shares - 2008;
|
||||||||
57,272,408
shares - 2007
|
11,944 | 11,933 | ||||||
Capital
surplus
|
139,471 | 124,161 | ||||||
Retained
earnings
|
836,642 | 797,993 | ||||||
Accumulated
other comprehensive loss,net of tax
|
(14,717 | ) | (14,451 | ) | ||||
Total
Shareholders' Equity
|
1,178,466 | 919,636 | ||||||
Total
Liabilities and Shareholders' Equity
|
$ | 9,790,909 | $ | 8,966,802 |
Consolidated
Statements of Income
|
||||||||||||
($
in thousands except per share data)
|
||||||||||||
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Interest
Income
|
||||||||||||
Interest
and fees on loans
|
$ | 429,681 | $ | 500,633 | $ | 430,441 | ||||||
Interest
on securities:
|
||||||||||||
Taxable
|
46,161 | 31,784 | 41,576 | |||||||||
Tax
exempt
|
5,113 | 6,463 | 7,172 | |||||||||
Interest
on federal funds sold and securities purchased under reverse repurchase
agreements
|
502 | 2,147 | 1,327 | |||||||||
Other
interest income
|
1,822 | 2,116 | 2,230 | |||||||||
Total
Interest Income
|
483,279 | 543,143 | 482,746 | |||||||||
Interest
Expense
|
||||||||||||
Interest
on deposits
|
139,922 | 200,375 | 153,840 | |||||||||
Interest
on federal funds purchased and securities sold under repurchase
agreements
|
10,393 | 20,224 | 20,228 | |||||||||
Other
interest expense
|
13,804 | 21,761 | 28,107 | |||||||||
Total
Interest Expense
|
164,119 | 242,360 | 202,175 | |||||||||
Net
Interest Income
|
319,160 | 300,783 | 280,571 | |||||||||
Provision
for loan losses
|
76,412 | 23,784 | (5,938 | ) | ||||||||
Net
Interest Income After Provision for Loan Losses
|
242,748 | 276,999 | 286,509 | |||||||||
Noninterest
Income
|
||||||||||||
Service
charges on deposit accounts
|
53,717 | 54,179 | 53,212 | |||||||||
Insurance
commissions
|
32,440 | 35,286 | 33,871 | |||||||||
Wealth
management
|
27,600 | 25,755 | 23,183 | |||||||||
General
banking - other
|
23,230 | 24,876 | 22,867 | |||||||||
Mortgage
banking, net
|
26,480 | 12,024 | 10,030 | |||||||||
Other,
net
|
13,286 | 10,215 | 10,043 | |||||||||
Securities
gains, net
|
505 | 112 | 1,922 | |||||||||
Total
Noninterest Income
|
177,258 | 162,447 | 155,128 | |||||||||
Noninterest
Expense
|
||||||||||||
Salaries
and employee benefits
|
171,137 | 170,722 | 159,690 | |||||||||
Services
and fees
|
38,379 | 37,259 | 36,659 | |||||||||
Net
occupancy - premises
|
19,508 | 18,517 | 17,120 | |||||||||
Equipment
expense
|
16,632 | 16,039 | 14,899 | |||||||||
Other
expense
|
38,063 | 33,912 | 32,112 | |||||||||
Total
Noninterest Expense
|
283,719 | 276,449 | 260,480 | |||||||||
Income
Before Income Taxes
|
136,287 | 162,997 | 181,157 | |||||||||
Income
taxes
|
43,870 | 54,402 | 61,884 | |||||||||
Net
Income
|
92,417 | 108,595 | 119,273 | |||||||||
Preferred
stock dividends
|
1,165 | - | - | |||||||||
Accretion
of discount on preferred stock
|
188 | - | - | |||||||||
Net
Income Available to Common Shareholders
|
$ | 91,064 | $ | 108,595 | $ | 119,273 | ||||||
Earnings
Per Common Share
|
||||||||||||
Basic
|
$ | 1.59 | $ | 1.88 | $ | 2.11 | ||||||
Diluted
|
$ | 1.59 | $ | 1.88 | $ | 2.09 |
Consolidated
Statements of Changes in Shareholders' Equity
|
||||||||||||||||||||||||||||
($
in thousands except per share data)
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Common
Stock
|
Other
|
|||||||||||||||||||||||||||
Preferred
|
Shares
|
Capital
|
Retained
|
Comprehensive
|
||||||||||||||||||||||||
Stock
|
Outstanding
|
Amount
|
Surplus
|
Earnings
|
Loss
|
Total
|
||||||||||||||||||||||
Balance,
January 1, 2006
|
$ | - | 55,771,459 | $ | 11,620 | $ | 65,374 | $ | 670,231 | $ | (13,312 | ) | $ | 733,913 | ||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income per consolidated statements of income
|
- | - | - | - | 119,273 | - | 119,273 | |||||||||||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||||||||||||
Net
change in fair value of securities available for sale
|
- | - | - | - | - | 3,095 | 3,095 | |||||||||||||||||||||
Comprehensive
income
|
122,368 | |||||||||||||||||||||||||||
Capital
accumulation and other postretirement benefit plans, adoption of SFAS No.
158:
|
||||||||||||||||||||||||||||
Net
prior service cost
|
- | - | - | - | - | 874 | 874 | |||||||||||||||||||||
Net
loss
|
- | - | - | - | - | (11,274 | ) | (11,274 | ) | |||||||||||||||||||
Cash
dividends paid ($0.85 per share)
|
- | - | - | - | (48,634 | ) | - | (48,634 | ) | |||||||||||||||||||
Common
stock issued, long-term incentive plan
|
- | 233,020 | 49 | 6,033 | - | - | 6,082 | |||||||||||||||||||||
Common
stock issued in business combination
|
- | 3,302,959 | 688 | 103,124 | - | - | 103,812 | |||||||||||||||||||||
Compensation
expense, long-term incentive plan
|
- | - | - | 3,004 | - | - | 3,004 | |||||||||||||||||||||
Repurchase
and retirement of common stock
|
- | (630,852 | ) | (131 | ) | (18,679 | ) | - | - | (18,810 | ) | |||||||||||||||||
Balance,
December 31, 2006
|
- | 58,676,586 | 12,226 | 158,856 | 740,870 | (20,617 | ) | 891,335 | ||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income per consolidated statements of income
|
- | - | - | - | 108,595 | - | 108,595 | |||||||||||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||||||||||||
Net
change in fair value of securities available for sale
|
- | - | - | - | - | 6,327 | 6,327 | |||||||||||||||||||||
Net
change in capital accumulation and other postretirement benefit
plans:
|
||||||||||||||||||||||||||||
Net
prior service credit
|
- | - | - | - | - | (234 | ) | (234 | ) | |||||||||||||||||||
Net
gain
|
- | - | - | - | - | 73 | 73 | |||||||||||||||||||||
Comprehensive
income
|
114,761 | |||||||||||||||||||||||||||
Cash
dividends paid ($0.89 per share)
|
- | - | - | - | (51,472 | ) | - | (51,472 | ) | |||||||||||||||||||
Common
stock issued, long-term incentive plan
|
- | 17,575 | 4 | 445 | - | - | 449 | |||||||||||||||||||||
Compensation
expense, long-term incentive plan
|
- | - | - | 3,422 | - | - | 3,422 | |||||||||||||||||||||
Repurchase
and retirement of common stock
|
- | (1,421,753 | ) | (297 | ) | (38,562 | ) | - | - | (38,859 | ) | |||||||||||||||||
Balance,
December 31, 2007
|
- | 57,272,408 | 11,933 | 124,161 | 797,993 | (14,451 | ) | 919,636 | ||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income per consolidated statements of income
|
- | - | - | - | 92,417 | - | 92,417 | |||||||||||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||||||||||||
Net
change in fair value of securities available for sale
|
- | - | - | - | - | 19,090 | 19,090 | |||||||||||||||||||||
Net
change in capital accumulation and other postretirement benefit
plans:
|
||||||||||||||||||||||||||||
Net
prior service credit
|
- | - | - | - | - | (451 | ) | (451 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | - | - | (18,905 | ) | (18,905 | ) | |||||||||||||||||||
Comprehensive
income
|
92,151 | |||||||||||||||||||||||||||
Issuance
of preferred stock and warrant
|
205,126 | - | - | 10,062 | (188 | ) | - | 215,000 | ||||||||||||||||||||
Cash
dividends paid ($0.92 per share)
|
- | - | - | - | (53,022 | ) | - | (53,022 | ) | |||||||||||||||||||
Common
stock issued, long-term incentive plan
|
- | 52,329 | 11 | 1,312 | (558 | ) | - | 765 | ||||||||||||||||||||
Compensation
expense, long-term incentive plan
|
- | - | - | 3,936 | - | - | 3,936 | |||||||||||||||||||||
Balance,
December 31, 2008
|
$ | 205,126 | 57,324,737 | $ | 11,944 | $ | 139,471 | $ | 836,642 | $ | (14,717 | ) | $ | 1,178,466 |
Consolidated
Statements of Cash Flows
|
||||||||||||
($
in thousands)
|
||||||||||||
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Operating
Activities
|
||||||||||||
Net
income
|
$ | 92,417 | $ | 108,595 | $ | 119,273 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Provision
for loan losses
|
76,412 | 23,784 | (5,938 | ) | ||||||||
Depreciation
and amortization
|
26,914 | 27,763 | 26,689 | |||||||||
Net
amortization of securities
|
1,109 | 1,552 | 4,537 | |||||||||
Securities
gains, net
|
(505 | ) | (112 | ) | (1,922 | ) | ||||||
Gains
on sales of loans
|
(6,046 | ) | (6,797 | ) | (6,707 | ) | ||||||
Deferred
income tax (benefit) provision
|
(17,673 | ) | (5,826 | ) | 7,948 | |||||||
Proceeds
from sales of loans held for sale
|
1,350,017 | 1,221,409 | 1,157,284 | |||||||||
Purchases
and originations of loans held for sale
|
(1,413,152 | ) | (1,263,460 | ) | (1,134,298 | ) | ||||||
Originations
of mortgage servicing rights
|
(19,515 | ) | (16,723 | ) | (16,678 | ) | ||||||
Net
decrease (increase) in other assets
|
10,899 | (28,603 | ) | (10,892 | ) | |||||||
Net
(decrease) increase in other liabilities
|
(27,471 | ) | 10,524 | 13,366 | ||||||||
Other
operating activities, net
|
39,117 | 11,821 | 498 | |||||||||
Net
cash provided by operating activities
|
112,523 | 83,927 | 153,160 | |||||||||
Investing
Activities
|
||||||||||||
Proceeds
from calls and maturities of securities held to maturity
|
30,207 | 17,212 | 12,037 | |||||||||
Proceeds
from calls and maturities of securities available for sale
|
230,021 | 373,532 | 306,896 | |||||||||
Proceeds
from sales of securities available for sale
|
157,949 | 62,170 | 94,650 | |||||||||
Purchases
of securities held to maturity
|
(14,833 | ) | - | (12,246 | ) | |||||||
Purchases
of securities available for sale
|
(1,458,061 | ) | (111,069 | ) | (77,777 | ) | ||||||
Net
(increase) decrease in federal funds sold and securities purchased under
reverse repurchase agreements
|
(5,404 | ) | 9,262 | 102,856 | ||||||||
Net
decrease (increase) in loans
|
218,289 | (500,919 | ) | (194,095 | ) | |||||||
Purchases
of premises and equipment
|
(16,861 | ) | (29,784 | ) | (22,514 | ) | ||||||
Proceeds
from sales of premises and equipment
|
170 | 1,423 | 3,631 | |||||||||
Proceeds
from sales of other real estate
|
8,289 | 2,727 | 3,304 | |||||||||
Net
cash paid in business combinations
|
- | - | (78,920 | ) | ||||||||
Net
cash (used in) provided by investing activities
|
(850,234 | ) | (175,446 | ) | 137,822 | |||||||
Financing
Activities
|
||||||||||||
Net
(decrease) increase in deposits
|
(45,402 | ) | (106,892 | ) | 99,376 | |||||||
Net
increase (decrease) in federal funds purchased and securities sold under
repurchase agreements
|
350,366 | (9,671 | ) | 42,104 | ||||||||
Net
increase (decrease) in short-term borrowings
|
234,951 | 198,864 | (478,480 | ) | ||||||||
Proceeds
from issuance of subordinated notes
|
- | - | 49,677 | |||||||||
Proceeds
from issuance of junior subordinated debt securities
|
- | - | 61,856 | |||||||||
Proceeds
from issuance of preferred stock and warrant
|
215,000 | - | - | |||||||||
Common
stock dividends
|
(53,022 | ) | (51,472 | ) | (48,634 | ) | ||||||
Common
stock issued-net, long-term incentive plan
|
567 | 439 | 5,334 | |||||||||
Excess
tax benefit from stock-based compensation arrangements
|
198 | 10 | 748 | |||||||||
Repurchase
and retirement of common stock
|
- | (38,859 | ) | (18,810 | ) | |||||||
Net
cash provided by (used in) financing activities
|
702,658 | (7,581 | ) | (286,829 | ) | |||||||
(Decrease)
increase in cash and cash equivalents
|
(35,053 | ) | (99,100 | ) | 4,153 | |||||||
Cash
and cash equivalents at beginning of year
|
292,983 | 392,083 | 387,930 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 257,930 | $ | 292,983 | $ | 392,083 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Income
taxes paid
|
$ | 56,906 | $ | 53,883 | $ | 56,309 | ||||||
Interest
expense paid on deposits and borrowings
|
176,456 | 243,562 | 196,080 | |||||||||
Noncash
transfers from loans to foreclosed properties
|
38,837 | 8,387 | 1,969 | |||||||||
Assets
acquired in business combinations
|
- | - | 647,550 | |||||||||
Liabilities
assumed in business combinations
|
- | - | 606,696 |
Securities
Available for Sale
|
Securities
Held to Maturity
|
|||||||||||||||||||||||||||||||
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
|||||||||||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||||||||||||||
2008
|
Cost
|
Gains
|
(Losses)
|
Value
|
Cost
|
Gains
|
(Losses)
|
Value
|
||||||||||||||||||||||||
U.S.
Treasury and other U.S Government agencies
|
$ | 31,323 | $ | 569 | $ | - | $ | 31,892 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Obligations
of states and political subdivisions
|
98,323 | 932 | (602 | ) | 98,653 | 102,901 | 2,764 | (524 | ) | 105,141 | ||||||||||||||||||||||
Mortgage-backed
securities
|
1,375,176 | 29,273 | (23 | ) | 1,404,426 | 156,728 | 2,171 | (1 | ) | 158,898 | ||||||||||||||||||||||
Corporate
debt
|
8,254 | - | (384 | ) | 7,870 | - | - | - | - | |||||||||||||||||||||||
Total
|
$ | 1,513,076 | $ | 30,774 | $ | (1,009 | ) | $ | 1,542,841 | $ | 259,629 | $ | 4,935 | $ | (525 | ) | $ | 264,039 | ||||||||||||||
2007
|
||||||||||||||||||||||||||||||||
U.S.
Treasury and other U.S.Government agencies
|
$ | 8,005 | $ | 18 | $ | - | $ | 8,023 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Obligations
of states and political subdivisions
|
45,704 | 363 | (48 | ) | 46,019 | 114,497 | 2,633 | (263 | ) | 116,867 | ||||||||||||||||||||||
Mortgage-backed
securities
|
318,815 | 723 | (1,771 | ) | 317,767 | 160,473 | 132 | (971 | ) | 159,634 | ||||||||||||||||||||||
Corporate
debt
|
70,971 | 62 | (497 | ) | 70,536 | - | - | - | - | |||||||||||||||||||||||
Other
securities
|
- | - | - | - | 126 | 4 | - | 130 | ||||||||||||||||||||||||
Total
|
$ | 443,495 | $ | 1,166 | $ | (2,316 | ) | $ | 442,345 | $ | 275,096 | $ | 2,769 | $ | (1,234 | ) | $ | 276,631 |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
|||||||||||||||||||
2008
|
||||||||||||||||||||||||
U.S.
Treasury and other U.S. Government agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Obligations
of states and political subdivisions
|
10,522 | 675 | 4,057 | 451 | 14,579 | 1,126 | ||||||||||||||||||
Mortgage-backed
securities
|
861 | 23 | 276 | 1 | 1,137 | 24 | ||||||||||||||||||
Corporate
debt
|
7,870 | 384 | - | - | 7,870 | 384 | ||||||||||||||||||
Total
|
$ | 19,253 | $ | 1,082 | $ | 4,333 | $ | 452 | $ | 23,586 | $ | 1,534 | ||||||||||||
2007
|
||||||||||||||||||||||||
U.S.
Treasury and other U.S. Government agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Obligations
of states and political subdivisions
|
206 | 1 | 21,629 | 310 | 21,835 | 311 | ||||||||||||||||||
Mortgage-backed
securities
|
- | - | 403,990 | 2,742 | 403,990 | 2,742 | ||||||||||||||||||
Corporate
debt
|
- | - | 58,103 | 497 | 58,103 | 497 | ||||||||||||||||||
Other
securities
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 206 | $ | 1 | $ | 483,722 | $ | 3,549 | $ | 483,928 | $ | 3,550 |
Securities
|
Securities
|
|||||||||||||||
Available
for Sale
|
Held
to Maturity
|
|||||||||||||||
Estimated
|
Estimated
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Due
in one year or less
|
$ | 57,424 | $ | 57,471 | $ | 12,789 | $ | 12,936 | ||||||||
Due
after one year through five years
|
32,406 | 32,534 | 29,056 | 29,635 | ||||||||||||
Due
after five years through ten years
|
40,924 | 41,770 | 44,884 | 46,401 | ||||||||||||
Due
after ten years
|
7,146 | 6,640 | 16,172 | 16,169 | ||||||||||||
137,900 | 138,415 | 102,901 | 105,141 | |||||||||||||
Mortgage-backed
securities
|
1,375,176 | 1,404,426 | 156,728 | 158,898 | ||||||||||||
Total
|
$ | 1,513,076 | $ | 1,542,841 | $ | 259,629 | $ | 264,039 |
2008
|
2007
|
|||||||
Real
estate loans:
|
||||||||
Construction,
development and other land loans
|
$ | 1,028,788 | $ | 1,194,940 | ||||
Secured
by 1- 4 family residential properties
|
1,524,061 | 1,694,757 | ||||||
Secured
by nonfarm, nonresidential properties
|
1,422,658 | 1,325,379 | ||||||
Other
|
186,915 | 167,610 | ||||||
Loans
to finance agricultural production and other loans to
farmers
|
18,641 | 23,692 | ||||||
Commercial
and industrial loans
|
1,305,938 | 1,283,014 | ||||||
Consumer
loans
|
895,046 | 1,087,337 | ||||||
Obligations
of states and political subdivisions
|
270,599 | 228,330 | ||||||
Other
loans
|
69,757 | 35,733 | ||||||
Loans
|
6,722,403 | 7,040,792 | ||||||
Less
allowance for loan losses
|
94,922 | 79,851 | ||||||
Net
loans
|
$ | 6,627,481 | $ | 6,960,941 |
2008
|
2007
|
2006
|
||||||||||
Balance
at January 1,
|
$ | 79,851 | $ | 72,098 | $ | 76,691 | ||||||
Provision
charged to expense
|
76,412 | 23,784 | (5,938 | ) | ||||||||
Loans
charged off
|
(71,767 | ) | (26,790 | ) | (14,938 | ) | ||||||
Recoveries
|
10,426 | 10,759 | 10,966 | |||||||||
Net
charge-offs
|
(61,341 | ) | (16,031 | ) | (3,972 | ) | ||||||
Allowance
of acquired bank
|
- | - | 5,317 | |||||||||
Balance
at December 31,
|
$ | 94,922 | $ | 79,851 | $ | 72,098 |
2008
|
2007
|
|||||||
Land
|
$ | 39,712 | $ | 39,822 | ||||
Buildings
and leasehold improvements
|
148,932 | 144,558 | ||||||
Furniture
and equipment
|
138,549 | 131,877 | ||||||
Total
cost of premises and equipment
|
327,193 | 316,257 | ||||||
Less
accumulated depreciation and amortization
|
170,382 | 164,577 | ||||||
Premises
and equipment, net
|
$ | 156,811 | $ | 151,680 |
2008
|
2007
|
|||||||
Balance
at beginning of period
|
$ | 67,192 | $ | 69,272 | ||||
Origination
of servicing assets
|
23,038 | 18,880 | ||||||
Disposals
|
(3,523 | ) | (2,157 | ) | ||||
Change
in fair value:
|
||||||||
Due
to market changes
|
(34,838 | ) | (9,460 | ) | ||||
Due
to runoff
|
(8,987 | ) | (9,343 | ) | ||||
Balance
at end of period
|
$ | 42,882 | $ | 67,192 |
General
|
||||||||||||
Banking
|
Insurance
|
Total
|
||||||||||
Balance
as of January 1, 2006
|
$ | 92,927 | $ | 44,441 | $ | 137,368 | ||||||
Additions
from business combination
|
152,995 | - | 152,995 | |||||||||
Balance
as of December 31, 2006
|
245,922 | 44,441 | 290,363 | |||||||||
Purchase
accounting adjustments
|
814 | - | 814 | |||||||||
Balance
as of December 31, 2007
|
246,736 | 44,441 | 291,177 | |||||||||
Purchase
accounting adjustments
|
- | (73 | ) | (73 | ) | |||||||
Balance
as of December 31, 2008
|
$ | 246,736 | $ | 44,368 | $ | 291,104 |
2008
|
2007
|
|||||||||||||||||||||||
Gross
Carrying
|
Accumulated
|
Net
Carrying
|
Gross
Carrying
|
Accumulated
|
Net
Carrying
|
|||||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
|||||||||||||||||||
Core
deposit intangibles
|
$ | 44,408 | $ | 28,506 | $ | 15,902 | $ | 44,408 | $ | 25,437 | $ | 18,971 | ||||||||||||
Insurance
intangibles
|
11,693 | 5,295 | 6,398 | 11,693 | 4,212 | 7,481 | ||||||||||||||||||
Banking
charters
|
1,325 | 347 | 978 | 1,325 | 281 | 1,044 | ||||||||||||||||||
Borrower
relationship intangible
|
690 | 147 | 543 | 690 | 84 | 606 | ||||||||||||||||||
Total
|
$ | 58,116 | $ | 34,295 | $ | 23,821 | $ | 58,116 | $ | 30,014 | $ | 28,102 |
2008
|
||||||||
Net
Carrying
Amount
|
Weighted-
Average
Amortization
Period
in Years
|
|||||||
Core
deposit intangibles
|
$ | 15,902 | 11.3 | |||||
Insurance
intangibles
|
6,398 | 15.0 | ||||||
Banking
charters
|
978 | 20.0 | ||||||
Borrower
relationship intangible
|
543 | 11.0 | ||||||
Total
|
$ | 23,821 | 12.2 |
2008
|
2007
|
|||||||
Noninterest-bearing
demand deposits
|
$ | 1,496,166 | $ | 1,477,171 | ||||
Interest-bearing
demand
|
1,128,426 | 1,210,817 | ||||||
Savings
|
1,658,255 | 1,577,198 | ||||||
Time
|
2,541,023 | 2,604,086 | ||||||
Total
|
$ | 6,823,870 | $ | 6,869,272 |
2008
|
2007
|
|||||||
3
months or less
|
$ | 436,500 | $ | 356,114 | ||||
Over
3 months through 6 months
|
243,691 | 283,136 | ||||||
Over
6 months through 12 months
|
307,841 | 286,496 | ||||||
Over
12 months
|
95,124 | 103,497 | ||||||
Total
|
$ | 1,083,156 | $ | 1,029,243 |
2009
|
$ | 2,264,597 | ||
2010
|
217,669 | |||
2011
|
27,810 | |||
2012
|
21,668 | |||
2013
and thereafter
|
9,279 | |||
Total
time deposits
|
2,541,023 | |||
Interest-bearing
deposits with no stated maturity
|
2,786,681 | |||
Total
interest-bearing deposits
|
$ | 5,327,704 |
2008
|
2007
|
|||||||
FHLB
advances
|
$ | 450,000 | $ | 375,000 | ||||
TAF
borrowings
|
200,000 | - | ||||||
Serviced
GNMA loans eligible for repurchase
|
39,539 | 17,886 | ||||||
Treasury
tax and loan note option account
|
17,078 | 50,000 | ||||||
Line
of credit payable
|
- | 7,000 | ||||||
Other
|
24,341 | 24,468 | ||||||
Total
short-term borrowings
|
$ | 730,958 | $ | 474,354 |
Current
|
2008
|
2007
|
2006
|
|||||||||
Federal
|
$ | 52,891 | $ | 51,729 | $ | 46,503 | ||||||
State
|
8,652 | 8,499 | 7,433 | |||||||||
Deferred
|
||||||||||||
Federal
|
(15,360 | ) | (5,067 | ) | 6,919 | |||||||
State
|
(2,313 | ) | (759 | ) | 1,029 | |||||||
Income
tax provision
|
$ | 43,870 | $ | 54,402 | $ | 61,884 |
2008
|
2007
|
2006
|
||||||||||
Income
tax computed at statutory tax rate
|
$ | 47,700 | $ | 57,049 | $ | 63,405 | ||||||
Tax
exempt interest
|
(4,791 | ) | (5,027 | ) | (5,272 | ) | ||||||
Nondeductible
interest expense
|
457 | 679 | 552 | |||||||||
State
income taxes, net
|
4,120 | 5,031 | 5,500 | |||||||||
Income
tax credits
|
(3,372 | ) | (2,185 | ) | (1,847 | ) | ||||||
Other
|
(244 | ) | (1,145 | ) | (454 | ) | ||||||
Income
tax provision
|
$ | 43,870 | $ | 54,402 | $ | 61,884 |
Deferred
tax assets
|
2008
|
2007
|
||||||
Allowance
for loan losses
|
$ | 36,308 | $ | 30,543 | ||||
Pension
and other postretirement benefit plans
|
23,003 | 16,024 | ||||||
Other
real estate
|
6,976 | 878 | ||||||
Stock-based
compensation
|
4,612 | 3,416 | ||||||
Deferred
compensation
|
3,501 | 4,604 | ||||||
Mortgage
servicing rights
|
2,180 | - | ||||||
Unrealized
losses on securities available for sale
|
- | 440 | ||||||
Other
|
6,297 | 5,358 | ||||||
Gross
deferred tax asset
|
82,877 | 61,263 | ||||||
Deferred
tax liabilities
|
||||||||
Goodwill
and other identifiable intangibles
|
15,217 | 15,279 | ||||||
Premises
and equipment
|
12,220 | 10,730 | ||||||
Unrealized
gains on securities available for sale
|
11,385 | - | ||||||
Securities
|
5,042 | 4,956 | ||||||
Mortgage
servicing rights
|
- | 8,431 | ||||||
Other
|
2,565 | 2,412 | ||||||
Gross
deferred tax liability
|
46,429 | 41,808 | ||||||
Net
deferred tax asset
|
$ | 36,448 | $ | 19,455 |
Balance
at January 1, 2008
|
$ | 1,174 | ||
Increases
due to tax positions taken during the current year
|
591 | |||
Increases
due to tax positions taken during the prior year
|
300 | |||
Decreases
due to tax positions taken during a prior year
|
(140 | ) | ||
Decreases
due to settlements with taxing authorities during the current
year
|
(121 | ) | ||
Decreases
due to the lapse of applicable statute of limitations during the current
year
|
(255 | ) | ||
Balance
at December 31, 2008
|
$ | 1,549 | ||
Accrued
interest, net of federal benefit, at December 31, 2008
|
$ | 194 | ||
Unrecognized
tax benefits that would impact the effective tax rate, if recognized, at
December 31, 2008
|
$ | 1,209 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Change
in benefit obligation
|
||||||||
Benefit
obligation, beginning of year
|
$ | 84,868 | $ | 82,340 | ||||
Service
cost
|
1,645 | 1,306 | ||||||
Interest
cost
|
4,936 | 4,697 | ||||||
Actuarial
loss
|
1,163 | 1,981 | ||||||
Benefits
paid
|
(5,427 | ) | (5,456 | ) | ||||
Prior
service cost due to amendment
|
223 | - | ||||||
Benefit
obligation, end of year
|
$ | 87,408 | $ | 84,868 | ||||
Change
in plan assets
|
||||||||
Fair
value of plan assets, beginning of year
|
$ | 79,402 | $ | 77,868 | ||||
Actual
return on plan assets
|
(24,567 | ) | 6,990 | |||||
Employer
contributions
|
17,500 | - | ||||||
Benefit
payments
|
(5,427 | ) | (5,456 | ) | ||||
Fair
value of plan assets, end of year
|
$ | 66,908 | $ | 79,402 | ||||
Funded
status at end of year - net liability
|
$ | (20,500 | ) | $ | (5,466 | ) | ||
Amounts
recognized in accumulated other comprehensive loss
|
||||||||
Net
loss
|
$ | 46,400 | $ | 16,936 | ||||
Prior
service credits
|
(2,015 | ) | (2,747 | ) | ||||
Amounts
recognized
|
$ | 44,385 | $ | 14,189 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Net
periodic benefit cost
|
||||||||||||
Service
cost
|
$ | 1,645 | $ | 1,306 | $ | 2,404 | ||||||
Interest
cost
|
4,936 | 4,697 | 4,432 | |||||||||
Expected
return on plan assets
|
(5,593 | ) | (5,290 | ) | (5,238 | ) | ||||||
Amortization
of prior service cost
|
(510 | ) | (510 | ) | (376 | ) | ||||||
Recognized
net actuarial loss
|
1,859 | 2,254 | 2,461 | |||||||||
Net
periodic benefit cost
|
$ | 2,337 | $ | 2,457 | $ | 3,683 | ||||||
Other
changes in plan assets and benefit obligation
recognized
in other comprehensive loss, before taxes
|
||||||||||||
Net
loss (gain)
|
$ | 29,464 | $ | (1,973 | ) | $ | 18,909 | |||||
Prior
service cost
|
223 | - | (3,257 | ) | ||||||||
Amortization
of prior service cost
|
510 | 510 | - | |||||||||
Total
recognized in other comprehensive loss
|
$ | 30,197 | $ | (1,463 | ) | $ | 15,652 | |||||
Total
recognized in net periodic benefit cost and other comprehensive
loss
|
$ | 32,534 | $ | 994 | $ | 19,335 | ||||||
Weighted-average
assumptions as of end of year
|
||||||||||||
Discount
rate for benefit obligation
|
6.00 | % | 6.00 | % | 6.00 | % | ||||||
Discount
rate for net periodic benefit cost
|
6.00 | % | 6.00 | % | 5.75 | % | ||||||
Expected
long-term return on plan assets
|
8.00 | % | 8.00 | % | 8.00 | % | ||||||
Rate
of compensation increase
|
4.00 | % | 4.00 | % | 4.00 | % |
2008
|
2007
|
|||||||
Cash
and cash equivalents
|
39.9 | % | 2.0 | % | ||||
Fixed
income securities
|
- | 14.9 | % | |||||
Equity
mutual funds
|
53.7 | % | 75.5 | % | ||||
Fixed
income hedge fund
|
6.4 | % | 7.6 | % | ||||
Total
|
100.0 | % | 100.0 | % |
Year
|
|
Amount
|
|||
2009
|
$ | 9,897 | |||
2010
|
7,869 | ||||
2011
|
8,388 | ||||
2012
|
7,840 | ||||
2013
|
7,164 | ||||
2014-2018
|
31,012 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Change
in benefit obligation
|
||||||||
Benefit
obligation, beginning of year
|
$ | 34,482 | $ | 31,013 | ||||
Service
cost
|
1,167 | 1,296 | ||||||
Interest
cost
|
2,091 | 1,815 | ||||||
Actuarial
loss
|
1,398 | 1,949 | ||||||
Benefits
paid
|
(1,523 | ) | (1,599 | ) | ||||
Prior
service cost due to amendment
|
146 | 8 | ||||||
Benefit
obligation, end of year
|
$ | 37,761 | $ | 34,482 | ||||
Change
in plan assets
|
||||||||
Fair
value of plan assets, beginning of year
|
$ | - | $ | - | ||||
Actual
return on plan assets
|
- | - | ||||||
Employer
contributions
|
1,523 | 1,599 | ||||||
Benefit
payments
|
(1,523 | ) | (1,599 | ) | ||||
Fair
value of plan assets, end of year
|
$ | - | $ | - | ||||
Funded
status at end of year - net liability
|
$ | (37,761 | ) | $ | (34,482 | ) | ||
Amounts
recognized in accumulated other comprehensive loss
|
||||||||
Net
loss
|
$ | 7,504 | $ | 6,352 | ||||
Prior
service cost
|
1,708 | 1,710 | ||||||
Amounts
recognized
|
$ | 9,212 | $ | 8,062 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Net
periodic benefit cost
|
||||||||||||
Service
cost
|
$ | 1,167 | $ | 1,296 | $ | 1,599 | ||||||
Interest
cost
|
2,091 | 1,815 | 1,651 | |||||||||
Amortization
of prior service cost
|
148 | 139 | 139 | |||||||||
Recognized
net actuarial loss
|
246 | 94 | 148 | |||||||||
Net
periodic benefit cost
|
$ | 3,652 | $ | 3,344 | $ | 3,537 | ||||||
Other
changes in plan assets and benefit obligation recognized in other
comprehensive loss, before taxes
|
||||||||||||
Net
loss (gain)
|
$ | 1,152 | $ | 1,855 | $ | (652 | ) | |||||
Prior
service cost
|
146 | 8 | 1,981 | |||||||||
Amortization
of prior service cost
|
(148 | ) | (139 | ) | (139 | ) | ||||||
Total
recognized in other comprehensive loss
|
$ | 1,150 | $ | 1,724 | $ | 1,190 | ||||||
Total recognized
in net periodic benefit cost and other comprehensive loss
|
$ | 4,802 | $ | 5,068 | $ | 4,727 | ||||||
Weighted-average
assumptions as of end of year
|
||||||||||||
Discount
rate for benefit obligation
|
6.00 | % | 6.00 | % | 6.00 | % | ||||||
Discount
rate for net periodic benefit cost
|
6.00 | % | 6.00 | % | 5.75 | % |
Year
|
|
Amount
|
|||
2009
|
$ | 1,745 | |||
2010
|
2,176 | ||||
2011
|
2,269 | ||||
2012
|
2,347 | ||||
2013
|
2,554 | ||||
2014
- 2018
|
14,800 |
2008
|
2007
|
2006
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||
Option
|
Option
|
Option
|
||||||||||||||||||||||
Options
|
Shares
|
Price
|
Shares
|
Price
|
Shares
|
Price
|
||||||||||||||||||
Outstanding,
beginning of year
|
1,954,360 | $ | 25.42 | 1,996,035 | $ | 25.46 | 2,016,930 | $ | 24.44 | |||||||||||||||
Granted
|
- | - | - | - | 272,700 | 31.55 | ||||||||||||||||||
Exercised
|
(28,150 | ) | 21.92 | (17,575 | ) | 24.97 | (233,020 | ) | 22.89 | |||||||||||||||
Forfeited
|
(130,036 | ) | 24.20 | (24,100 | ) | 29.17 | (60,575 | ) | 28.67 | |||||||||||||||
Outstanding,
end of year
|
1,796,174 | 25.57 | 1,954,360 | 25.42 | 1,996,035 | 25.46 | ||||||||||||||||||
Exercisable,
end of year
|
1,545,174 | 24.82 | 1,504,305 | 24.18 | 1,242,133 | 23.47 | ||||||||||||||||||
Aggregate
Intrinsic Value
|
||||||||||||||||||||||||
Outstanding,
end of year
|
$ | 597,450 | $ | 2,951,605 | $ | 15,173,001 | ||||||||||||||||||
Exercisable,
end of year
|
$ | 597,450 | $ | 2,951,605 | $ | 11,920,289 |
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||||||
Weighted-
|
Weighted-
|
Weighted-
|
Weighted-
|
|||||||||||||||||||||||
Outstanding
|
Average
|
Average
|
Exercisable
|
Average
|
Average
|
|||||||||||||||||||||
Range
of
|
December
31,
|
Remaining
Years
|
Exercise
|
December
31,
|
Remaining
Years
|
Exercise
|
||||||||||||||||||||
Exercise
Prices
|
2008
|
To
Expiration
|
Price
|
2008
|
To
Expiration
|
Price
|
||||||||||||||||||||
$ |
16.17
- $19.41
|
169,350 | 1.4 | $ | 18.06 | 169,350 | 1.4 | $ | 18.06 | |||||||||||||||||
$ |
19.41
- $22.64
|
205,725 | 2.4 | 21.68 | 205,725 | 2.4 | 21.68 | |||||||||||||||||||
$ |
22.64
- $25.88
|
577,949 | 3.1 | 24.38 | 577,949 | 3.1 | 24.38 | |||||||||||||||||||
$ |
25.88
- $29.11
|
596,000 | 4.4 | 27.73 | 487,520 | 5.6 | 27.61 | |||||||||||||||||||
$ |
29.11
- $32.35
|
247,150 | 4.3 | 31.49 | 104,630 | 4.4 | 31.41 | |||||||||||||||||||
1,796,174 | 3.5 | 25.57 | 1,545,174 | 3.9 | 24.82 |
2006
|
||||
Fair
value of options
|
$ | 7.28 | ||
Risk-free
interest rate
|
5.01 | % | ||
Expected
volatility
|
25.17 | % | ||
Expected
dividend yield
|
2.79 | % | ||
Expected
life (in years)
|
5 |
2008
|
2007
|
2006
|
||||||||||||||||||||||
Weighted-
|
Weighted-
|
Weighted-
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||
Grant-Date
|
Grant-Date
|
Grant-Date
|
||||||||||||||||||||||
Shares
|
Fair
Value
|
Shares
|
Fair
Value
|
Shares
|
Fair
Value
|
|||||||||||||||||||
Nonvested
shares, beginning of year
|
162,325 | $ | 28.77 | 89,075 | $ | 28.27 | 26,325 | $ | 28.28 | |||||||||||||||
Granted
|
76,464 | 20.99 | 75,250 | 30.13 | 67,000 | 28.25 | ||||||||||||||||||
Released
from restriction
|
(26,325 | ) | 28.28 | - | - | - | - | |||||||||||||||||
Forfeited
|
- | - | (2,000 | ) | 28.90 | (4,250 | ) | 28.25 | ||||||||||||||||
Nonvested
shares, end of year
|
212,464 | 27.60 | 162,325 | 28.77 | 89,075 | 28.27 |
2008
|
2007
|
2006
|
||||||||||||||||||||||
Weighted-
|
Weighted-
|
Weighted-
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||
Grant-Date
|
Grant-Date
|
Grant-Date
|
||||||||||||||||||||||
Shares
|
Fair
Value
|
Shares
|
Fair
Value
|
Shares
|
Fair
Value
|
|||||||||||||||||||
Nonvested
shares, beginning of year
|
50,219 | $ | 30.38 | 61,035 | $ | 31.96 | - | $ | - | |||||||||||||||
Granted
|
100,368 | 20.94 | 37,500 | 29.03 | 61,035 | 31.96 | ||||||||||||||||||
Released
from Restriction
|
(200 | ) | 26.38 | - | - | - | - | |||||||||||||||||
Forfeited
|
(10,444 | ) | 28.14 | (48,316 | ) | 30.54 | - | - | ||||||||||||||||
Nonvested
shares, end of year
|
139,943 | 27.58 | 50,219 | 30.38 | 61,035 | 31.96 |
Year
|
Amount
|
|||
2009
|
$ | 4,334 | ||
2010
|
3,448 | |||
2011
|
2,326 | |||
2012
|
1,605 | |||
2013
|
1,286 | |||
Thereafter
|
7,108 | |||
Total
|
$ | 20,107 |
Minimum
Regulatory
|
||||||||||||||||||||||||
Actual
|
Minimum
Regulatory
|
Provision
to be
|
||||||||||||||||||||||
Regulatory
Capital
|
Capital
Required
|
Well-Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
At
December 31, 2008:
|
||||||||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 1,090,335 | 14.95 | % | $ | 583,571 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
1,045,769 | 14.52 | % | 576,082 | 8.00 | % | $ | 720,102 | 10.00 | % | ||||||||||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 949,365 | 13.01 | % | $ | 291,785 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
909,370 | 12.63 | % | 288,041 | 4.00 | % | $ | 432,061 | 6.00 | % | ||||||||||||||
Tier
1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 949,365 | 10.42 | % | $ | 273,353 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
909,370 | 10.13 | % | 269,197 | 3.00 | % | $ | 448,662 | 5.00 | % | ||||||||||||||
At
December 31, 2007:
|
||||||||||||||||||||||||
Total
Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 805,649 | 10.93 | % | $ | 589,509 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
781,725 | 10.75 | % | 581,482 | 8.00 | % | $ | 726,852 | 10.00 | % | ||||||||||||||
Tier
1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 676,089 | 9.17 | % | $ | 294,755 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
658,059 | 9.05 | % | 290,741 | 4.00 | % | $ | 436,111 | 6.00 | % | ||||||||||||||
Tier
1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark
Corporation
|
$ | 676,089 | 7.86 | % | $ | 257,950 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark
National Bank
|
658,059 | 7.79 | % | 253,425 | 3.00 | % | $ | 422,375 | 5.00 | % |
Accumulated
|
||||||||||||
Other
|
||||||||||||
Before-Tax
|
Tax
|
Comprehensive
|
||||||||||
Amount
|
Effect
|
Loss
|
||||||||||
Balance,
January 1, 2006
|
$ | (21,526 | ) | $ | 8,214 | $ | (13,312 | ) | ||||
Unrealized
gains on available for sale securities:
|
||||||||||||
Unrealized
holding gains arising during period
|
6,935 | (2,653 | ) | 4,282 | ||||||||
Less:
adjustment for net gains realized in net income
|
(1,922 | ) | 735 | (1,187 | ) | |||||||
Pension
and other postretirement benefit plans:
|
||||||||||||
Net
prior service costs arising during the period
|
1,415 | (541 | ) | 874 | ||||||||
Net
loss arising during the period
|
(18,257 | ) | 6,983 | (11,274 | ) | |||||||
Balance,
December 31, 2006
|
(33,355 | ) | 12,738 | (20,617 | ) | |||||||
Unrealized
gains on available for sale securities:
|
||||||||||||
Unrealized
holding gains arising during period
|
10,358 | (3,962 | ) | 6,396 | ||||||||
Less:
adjustment for net gains realized in net income
|
(112 | ) | 43 | (69 | ) | |||||||
Pension
and other postretirement benefit plans:
|
||||||||||||
Net
prior service credits arising during the period
|
(379 | ) | 145 | (234 | ) | |||||||
Net
gain arising during the period
|
118 | (45 | ) | 73 | ||||||||
Balance,
December 31, 2007
|
(23,370 | ) | 8,919 | (14,451 | ) | |||||||
Unrealized
gains on available for sale securities:
|
||||||||||||
Unrealized
holding gains arising during period
|
31,420 | (12,018 | ) | 19,402 | ||||||||
Less:
adjustment for net gains realized in net income
|
(505 | ) | 193 | (312 | ) | |||||||
Pension
and other postretirement benefit plans:
|
- | |||||||||||
Net
prior service credits arising during the period
|
(730 | ) | 279 | (451 | ) | |||||||
Net
loss arising during the period
|
(30,615 | ) | 11,710 | (18,905 | ) | |||||||
Balance,
December 31, 2008
|
$ | (23,800 | ) | $ | 9,083 | $ | (14,717 | ) |
Total
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
Securities
available for sale
|
$ | 1,542,841 | $ | 6,525 | $ | 1,536,316 | $ | - | ||||||||
Loans
held for sale
|
238,265 | - | 238,265 | - | ||||||||||||
Mortgage
servicing rights
|
42,882 | - | - | 42,882 | ||||||||||||
Other
assets - derivatives
|
12,504 | 11,071 | - | 1,433 | ||||||||||||
Other
liabilities - derivatives
|
7,367 | 4,635 | 2,732 | - |
Other
Assets - Derivatives
|
MSR
|
|||||||
Balance,
beginning of period
|
$ | 198 | $ | 67,192 | ||||
Total
net gains (losses) included in net income
|
3,629 | (43,825 | ) | |||||
Purchases,
sales, issuances and settlements, net
|
(2,394 | ) | 19,515 | |||||
Balance,
end of period
|
$ | 1,433 | $ | 42,882 | ||||
The
amount of total gains (losses) for the period included in earnings that
are attributable to the change in unrealized gains or losses still held at
December 31, 2008
|
$ | 1,337 | $ | (34,838 | ) |
2008
|
2007
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair
Value
|
Value
|
Fair
Value
|
|||||||||||||
Financial
Assets:
|
||||||||||||||||
Cash
and short-term investments
|
$ | 281,331 | $ | 281,331 | $ | 310,980 | $ | 310,980 | ||||||||
Securities
available for sale
|
1,542,841 | 1,542,841 | 442,345 | 442,345 | ||||||||||||
Securities
held to maturity
|
259,629 | 264,039 | 275,096 | 276,631 | ||||||||||||
Loans
held for sale
|
238,265 | 238,265 | 147,508 | 147,508 | ||||||||||||
Net
loans
|
6,627,481 | 6,718,049 | 6,960,941 | 6,990,354 | ||||||||||||
Other
assets - derivatives
|
12,504 | 12,504 | 1,839 | 1,839 | ||||||||||||
Financial
Liabilities:
|
||||||||||||||||
Deposits
|
6,823,870 | 6,831,950 | 6,869,272 | 6,876,805 | ||||||||||||
Short-term
liabilities
|
1,542,087 | 1,542,087 | 935,117 | 935,117 | ||||||||||||
Subordinated
notes
|
49,741 | 39,765 | 49,709 | 48,125 | ||||||||||||
Junior
subordinated debt securities
|
70,104 | 24,969 | 70,104 | 70,104 | ||||||||||||
Other
liabilities - derivatives
|
7,367 | 7,367 | 1,727 | 1,727 |
General
|
||||||||||||||||||||
Banking
|
Insurance
|
Wealth
Mgt.
|
Admin.
|
|||||||||||||||||
Division
|
Division
|
Division
|
Division
|
Total
|
||||||||||||||||
For the year ended December 31,
2008
|
||||||||||||||||||||
Net
interest income from external customers
|
$ | 283,623 | $ | - | $ | 5,017 | $ | 30,520 | $ | 319,160 | ||||||||||
Internal
funding
|
(28,435 | ) | 224 | (941 | ) | 29,152 | - | |||||||||||||
Net
interest income
|
255,188 | 224 | 4,076 | 59,672 | 319,160 | |||||||||||||||
Provision
for loan losses
|
76,158 | - | (23 | ) | 277 | 76,412 | ||||||||||||||
Net
interest income after provision for loan losses
|
179,030 | 224 | 4,099 | 59,395 | 242,748 | |||||||||||||||
Noninterest
income
|
111,462 | 32,544 | 28,573 | 4,679 | 177,258 | |||||||||||||||
Noninterest
expense
|
205,434 | 24,133 | 20,940 | 33,212 | 283,719 | |||||||||||||||
Income
before income taxes
|
85,058 | 8,635 | 11,732 | 30,862 | 136,287 | |||||||||||||||
Income
taxes
|
29,334 | 3,258 | 4,163 | 7,115 | 43,870 | |||||||||||||||
Segment
net income
|
$ | 55,724 | $ | 5,377 | $ | 7,569 | $ | 23,747 | $ | 92,417 | ||||||||||
Selected
Financial Information
|
||||||||||||||||||||
Average
assets
|
$ | 7,481,713 | $ | 20,489 | $ | 98,240 | $ | 1,530,745 | $ | 9,131,187 | ||||||||||
Depreciation
and amortization
|
$ | 21,112 | $ | 433 | $ | 331 | $ | 5,038 | $ | 26,914 | ||||||||||
For the year ended December 31,
2007
|
||||||||||||||||||||
Net
interest income (expense) from external customers
|
$ | 294,373 | $ | (3 | ) | $ | 4,947 | $ | 1,466 | $ | 300,783 | |||||||||
Internal
funding
|
(16,733 | ) | - | (922 | ) | 17,655 | - | |||||||||||||
Net
interest income (expense)
|
277,640 | (3 | ) | 4,025 | 19,121 | 300,783 | ||||||||||||||
Provision
for loan losses
|
23,409 | - | 4 | 371 | 23,784 | |||||||||||||||
Net
interest income (expense) after provision for loan losses
|
254,231 | (3 | ) | 4,021 | 18,750 | 276,999 | ||||||||||||||
Noninterest
income
|
101,173 | 35,574 | 26,433 | (733 | ) | 162,447 | ||||||||||||||
Noninterest
expense
|
196,466 | 24,285 | 19,848 | 35,850 | 276,449 | |||||||||||||||
Income
(loss) before income taxes
|
158,938 | 11,286 | 10,606 | (17,833 | ) | 162,997 | ||||||||||||||
Income
taxes
|
54,846 | 4,378 | 3,756 | (8,578 | ) | 54,402 | ||||||||||||||
Segment
net income (loss)
|
$ | 104,092 | $ | 6,908 | $ | 6,850 | $ | (9,255 | ) | $ | 108,595 | |||||||||
Selected
Financial Information
|
||||||||||||||||||||
Average
assets
|
$ | 7,373,472 | $ | 21,670 | $ | 90,533 | $ | 1,360,162 | $ | 8,845,837 | ||||||||||
Depreciation
and amortization
|
$ | 21,369 | $ | 407 | $ | 383 | $ | 5,604 | $ | 27,763 | ||||||||||
For the year ended December 31,
2006
|
||||||||||||||||||||
Net
interest income (expense) from external customers
|
$ | 278,083 | $ | (8 | ) | $ | 4,552 | $ | (2,056 | ) | $ | 280,571 | ||||||||
Internal
funding
|
(6,679 | ) | - | (470 | ) | 7,149 | - | |||||||||||||
Net
interest income (expense)
|
271,404 | (8 | ) | 4,082 | 5,093 | 280,571 | ||||||||||||||
Provision
for loan losses
|
3,687 | - | 1 | (9,626 | ) | (5,938 | ) | |||||||||||||
Net
interest income (expense) after provision for loan losses
|
267,717 | (8 | ) | 4,081 | 14,719 | 286,509 | ||||||||||||||
Noninterest
income
|
94,876 | 34,279 | 23,696 | 2,277 | 155,128 | |||||||||||||||
Noninterest
expense
|
185,617 | 23,384 | 18,888 | 32,591 | 260,480 | |||||||||||||||
Income
(loss) before income taxes
|
176,976 | 10,887 | 8,889 | (15,595 | ) | 181,157 | ||||||||||||||
Income
taxes
|
61,129 | 4,224 | 3,241 | (6,710 | ) | 61,884 | ||||||||||||||
Segment
net income (loss)
|
$ | 115,847 | $ | 6,663 | $ | 5,648 | $ | (8,885 | ) | $ | 119,273 | |||||||||
Selected
Financial Information
|
||||||||||||||||||||
Average
assets
|
$ | 6,801,864 | $ | 25,065 | $ | 88,695 | $ | 1,511,864 | $ | 8,427,488 | ||||||||||
Depreciation
and amortization
|
$ | 21,111 | $ | 392 | $ | 422 | $ | 4,764 | $ | 26,689 |
Condensed
Balance Sheets
|
December
31,
|
|||||||||||
Assets:
|
2008
|
2007
|
||||||||||
Investment
in banks
|
$ | 1,225,505 | $ | 987,365 | ||||||||
Other
assets
|
23,633 | 9,778 | ||||||||||
Total
Assets
|
$ | 1,249,138 | $ | 997,143 | ||||||||
Liabilities
and Shareholders' Equity:
|
||||||||||||
Accrued
expense
|
$ | 568 | $ | 403 | ||||||||
Borrowings
|
- | 7,000 | ||||||||||
Junior
subordinated debt securities
|
70,104 | 70,104 | ||||||||||
Shareholders'
equity
|
1,178,466 | 919,636 | ||||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 1,249,138 | $ | 997,143 | ||||||||
Condensed
Statements of Income
|
Years
Ended December 31,
|
|||||||||||
Revenue:
|
2008
|
|
2007
|
2006
|
||||||||
Dividends
received from banks
|
$ | 65,558 | $ | 96,228 | $ | 85,741 | ||||||
Earnings
of subsidiaries over distributions
|
29,468 | 15,922 | 34,238 | |||||||||
Other
income
|
241 | 326 | 1,862 | |||||||||
Total
Revenue
|
95,267 | 112,476 | 121,841 | |||||||||
Expense:
|
||||||||||||
Interest
expense
|
181 | 444 | 628 | |||||||||
Other
expense
|
2,669 | 3,437 | 1,940 | |||||||||
Total
Expense
|
2,850 | 3,881 | 2,568 | |||||||||
Net
Income
|
92,417 | 108,595 | 119,273 | |||||||||
Preferred
stock dividends
|
1,165 | - | - | |||||||||
Accretion
of discount on preferred stock
|
188 | - | - | |||||||||
Net
Income Available to Common Shareholders
|
$ | 91,064 | $ | 108,595 | $ | 119,273 | ||||||
Condensed
Statements of Cash Flows
|
Years
Ended December 31,
|
|||||||||||
Operating
Activities:
|
2008
|
2007
|
2006
|
|||||||||
Net
income
|
$ | 92,417 | $ | 108,595 | $ | 119,273 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Increase
in investment in subsidiaries
|
(29,468 | ) | (15,922 | ) | (34,238 | ) | ||||||
Other
|
342 | (583 | ) | 1,043 | ||||||||
Net
cash provided by operating activities
|
63,291 | 92,090 | 86,078 | |||||||||
Investing
Activities:
|
||||||||||||
Payment
for investments in subsidiaries
|
(205,000 | ) | - | (212,669 | ) | |||||||
Proceeds
from maturities of securities available for sale
|
4,002 | 3,172 | - | |||||||||
Proceeds
from sales of securities available for sale
|
- | - | 15,409 | |||||||||
Purchases
of securities available for sale
|
(1,531 | ) | (7,167 | ) | - | |||||||
Proceeds
from sale of other assets
|
- | 3,550 | - | |||||||||
Net
cash used in investing activities
|
(202,529 | ) | (445 | ) | (197,260 | ) | ||||||
Financing
Activities:
|
||||||||||||
Proceeds
from line of credit
|
- | 17,000 | - | |||||||||
Repayments
of line of credit
|
(7,000 | ) | (21,000 | ) | - | |||||||
Proceeds
from issuance of junior subordinated debt securities
|
- | - | 70,104 | |||||||||
Proceeds
from issuance of preferred stock and warrant
|
215,000 | - | - | |||||||||
Cash
dividends
|
(53,022 | ) | (51,472 | ) | (48,634 | ) | ||||||
Common
stock transactions, net
|
765 | (38,410 | ) | 90,336 | ||||||||
Net
cash provided by (used in) financing activities
|
155,743 | (93,882 | ) | 111,806 | ||||||||
Increase
(decrease) in cash and cash equivalents
|
16,505 | (2,237 | ) | 624 | ||||||||
Cash
and cash equivalents at beginning of year
|
2,973 | 5,210 | 4,586 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 19,478 | $ | 2,973 | $ | 5,210 |
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM
9A.
|
CONTROLS
AND PROCEDURES
|
ITEM
9B.
|
OTHER
INFORMATION
|
ITEM
10.
|
DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE
GOVERNANCE
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
|
ITEM
14.
|
PRINCIPAL
ACCOUNTING FEES AND SERVICES
|
ITEM
15.
|
EXHIBITS,
FINANCIAL STATEMENT SCHEDULES
|
|
Consolidated
Balance Sheets as of December 31, 2008 and
2007
|
|
Consolidated
Statements of Income for the Years Ended December 31, 2008, 2007 and
2006
|
|
Consolidated
Statements of Changes in Shareholders’ Equity for the Years Ended December
31, 2008, 2007 and 2006
|
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2008, 2007 and
2006
|
|
Notes
to Consolidated Financial Statements (Notes 1 through
20)
|
2-a
|
Agreement
and Plan of Reorganization by and among Trustmark Corporation and Republic
Bancshares of Texas, Inc. Filed April 17, 2006, as Exhibit 2.1
to Trustmark’s Form 8-K Current Report, incorporated herein by
reference.
|
|
2-b
|
First
Amendment to Agreement and Plan of Reorganization by and among Trustmark
Corporation and Republic Bancshares of Texas, Inc. Filed May
17, 2006. as Exhibit 2.1A to Trustmark’s Form 8-K Current Report,
incorporated herein by reference.
|
|
3-a
|
Articles
of Incorporation of Trustmark, as amended to April 9,
2002. Incorporated herein by reference to Exhibit 3-a to
Trustmark’s Form 10-K Annual Report for the year ended
December 31, 2002, filed on March 21, 2003.
|
|
3-b
|
Amended
and Restated Bylaws of Trustmark. Incorporated herein by reference to
Exhibit 3.2 to Trustmark’s Form 8-K Current Report filed on November
25, 2008.
|
|
3-c
|
Certificate
of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series
A, attached to the Articles of Amendment of Trustmark. Incorporated herein
by reference to Exhibit 3.1 to Trustmark’s Form 8-K Current Report
filed on November 25, 2008
.
|
|
4-a
|
Amended
and Restated Trust Agreement among Trustmark Corporation, Wilmington Trust
Company and the Administrative Trustees regarding Trustmark Preferred
Capital Trust I. Filed August 21, 2006, as Exhibit 4.1 to
Trustmark’s Form 8-K Current Report, incorporated herein by
reference.
|
|
4-b
|
Junior
Subordinated Indenture between Trustmark Corporation and Wilmington Trust
Company. Filed August 21, 2006, as Exhibit 4.2 to Trustmark’s
Form 8-K Current Report, incorporated herein by
reference.
|
|
4-c
|
Guarantee
Agreement between Trustmark Corporation and Wilmington Trust
Company. Filed August 21, 2006, as Exhibit 4.3 to Trustmark’s
Form 8-K Current Report, incorporated herein by
reference.
|
|
4-d
|
Fiscal
and Paying Agency Agreement between Trustmark National Bank and The Bank
of New York Trust Company, N.A. regarding Subordinated Notes due December
15, 2016. Filed December 13, 2006, as Exhibit 4.1 to
Trustmark’s Form 8-K Current Report, incorporated herein by
reference.
|
|
4-e
|
Warrant
to Purchase 1,647,931 Shares of Common Stock of Trustmark. Incorporated
herein by reference to Exhibit 4.1 to Trustmark’s Form 8-K Current
Report filed on November 25, 2008.
|
|
4-f
|
Form
of Preferred Stock Certificate. Incorporated herein by
reference to Exhibit 4.2 to Trustmark’s Form 8-K Current Report filed
on November 25, 2008.
|
|
10-a
|
Deferred
Compensation Plan for Executive Officers (Executive Deferral Plan-Group 2)
of Trustmark National Bank, as amended. Filed as Exhibit 10-a
to Trustmark’s Form 10-K Annual Report for the year ended December 31,
2007, incorporated herein by reference.
|
|
10-b
|
Deferred
Compensation Plan for Directors of First National Financial Corporation
acquired October 7, 1994. Filed as Exhibit 10-c to Trustmark’s
Form 10-K Annual Report for the year ended December 31, 1994, incorporated
herein by reference.
|
|
10-c
|
Life
Insurance Plan for Executive Officers of First National Financial
Corporation acquired October 7, 1994. Filed as Exhibit 10-d to
Trustmark’s Form 10-K Annual Report for the year ended December 31, 1994,
incorporated herein by reference.
|
|
10-d
|
Long
Term Incentive Plan for key employees of Trustmark Corporation and its
subsidiaries approved March 11, 1997. Filed as Exhibit 10-e to
Trustmark’s Form 10-K Annual Report for the year ended December 31, 1996,
incorporated herein by reference.
|
|
10-e
|
Deferred
Compensation Plan for Directors (Directors’ Deferred Fee Plan) of
Trustmark National Bank, as amended. Filed as Exhibit 10-e to
Trustmark’s Form 10-K Annual Report for the year ended December 31, 2007,
incorporated herein by reference.
|
|
10-f
|
Deferred
Compensation Plan for Executives (Executive Deferral Plan-Group 1) of
Trustmark National Bank, as amended. Filed as Exhibit 10-f to
Trustmark’s Form 10-K Annual Report for the year ended December 31, 2007,
incorporated herein by reference.
|
|
10-g
|
Trustmark
Corporation Deferred Compensation Plan (Master Plan Document), as amended.
Filed as Exhibit 10-g to Trustmark’s Form 10-K Annual Report for the year
ended December 31, 2007, incorporated herein by
reference.
|
|
10-h
|
Amended
and Restated Employment Agreement between Trustmark Corporation and
Richard G. Hickson, dated as of November 20, 2008. Filed as Exhibit 10.3
to Trustmark’s Form 8-K Current Report filed on November 25,
2008, incorporated herein by reference.
|
|
10-i
|
Amended
and Restated Change in Control Agreement between Trustmark Corporation and
Gerard R. Host dated October 23, 2007. Filed as Exhibit 10-i to
Trustmark’s Form 10- K Annual Report for the year ended December 31, 2007,
incorporated herein by reference.
|
|
10-j
|
Amended
and Restated Change in Control Agreement between Trustmark Corporation and
Harry M. Walker dated October 23, 2007. Filed as Exhibit 10-j
to Trustmark’s Form 10- K Annual Report for the year ended December 31,
2007, incorporated herein by
reference.
|
10-k
|
2005
Stock and Incentive Compensation Plan approved May 10,
2005. Filed as Exhibit 10-a to Trustmark’s Form 10-Q Quarterly
Report for the quarter ended March 31, 2005, incorporated by
reference.
|
|
10-l
|
Form
of Restricted Stock Agreement (under the 2005 Stock and Incentive
Compensation Plan). Filed May 16, 2005, as Exhibit 10-b to
Trustmark’s Form 8-K Current Report, incorporated herein by
reference.
|
|
10-m
|
Form
of Non-Qualified Stock Option Agreement for Director (under the
2005 Stock and Incentive Compensation Plan). Filed May 16,
2005, as Exhibit 10-c to Trustmark’s Form 8-K Current Report, incorporated
herein by reference.
|
|
10-n
|
Form
of Non-Qualified Stock Option Agreement for Associate (under
the 2005 Stock and Incentive Compensation Plan). ). Filed May
16, 2005, as Exhibit 10-d to Trustmark’s Form 8-K Current Report,
incorporated herein by reference.
|
|
10-o
|
Termination
Amendment to the Second Amended Trustmark Corporation 1997 Long Term
Incentive Plan. Filed May 16, 2005, as Exhibit 10-e to
Trustmark’s Form 8-K Current Report, incorporated herein by
reference.
|
|
Revised
Form of Restricted Stock Agreement (under the 2005 Stock and Incentive
Compensation Plan).
|
||
Revised
Form of Time-Based Restricted Stock Agreement for Executive (under the
2005 Stock and Incentive Compensation Plan).
|
||
10-r
|
First
Amendment to Trustmark Corporation Deferred Compensation Plan (Master Plan
Document). Filed November 7, 2008, as Exhibit 10-r to
Trustmark’s Form 10-Q Quarterly Report for the quarter ended September 30,
2008, incorporated herein by reference.
|
|
10-s
|
Letter
Agreement including Securities Purchase Agreement between Trustmark and
the United States Department of Treasury. Incorporated herein
by reference to Exhibit 10.1 to Trustmark’s Form 8-K Current Report
filed on November 25, 2008.
|
|
10-t
|
Form
of Waiver executed by Trustmark Senior Executive
Officers. Incorporated herein by reference to Exhibit 10.2 to
Trustmark’s Form 8-K Current Report filed November 25,
2008.
|
|
10-u
|
Omnibus
Benefit Plan Amendment dated November 21, 2008. Incorporated
herein by reference to Exhibit 10.4 to Trustmark’s Form 8-K Current Report
filed November 25, 2008.
|
|
Cash-Settled
Performance-Based Restricted Stock Unit Award Agreement between Trustmark
and Rickard G. Hickson dated January 27, 2009.
|
||
List
of Subsidiaries.
|
||
Consent
of KPMG LLP.
|
||
Certification
by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
||
Certification
by Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||
Certification
by Chief Executive Officer pursuant to 18 U.S.C. ss. 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
||
Certification
by Principal Financial Officer pursuant to 18 U.S.C. ss. 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
||
All
other exhibits are omitted, as they are inapplicable or not required by
the related
instructions.
|
BY:
|
/s/ Richard G. Hickson
|
BY:
|
/s/ Louis E. Greer
|
Richard
G. Hickson
|
Louis
E. Greer
|
||
Chairman
of the Board, President
|
Treasurer and
Principal
|
||
&
Chief Executive Officer
|
Financial
Officer
|
||
DATE:
|
February
26, 2009
|
DATE:
|
February
26, 2009
|
DATE:
February 26, 2009
|
BY:
|
/s/ Reuben V. Anderson
|
Reuben
V. Anderson, Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ Adolphus B. Baker
|
Adolphus
B. Baker, Director
|
||
DATE: February
26, 2009
|
BY:
|
/
s/ William C. Deviney,
Jr.
|
William
C. Deviney, Jr., Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ C. Gerald Garnett
|
C.
Gerald Garnett, Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ Daniel A. Grafton
|
Daniel
A. Grafton, Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ Richard G. Hickson
|
Richard
G. Hickson, Chairman, President,
|
||
Chief
Executive Officer and Director
|
||
DATE: February
26, 2009
|
BY:
|
/s/ David H. Hoster
II
|
David
H. Hoster II, Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ John M.
McCullouch
|
John
M. McCullouch, Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ Richard H. Puckett
|
|
Richard
H. Puckett, Director
|
|
DATE:
February 26, 2009
|
BY:
|
/s/ R. Michael
Summerford
|
R.
Michael Summerford, Director
|
||
DATE: February
26, 2009
|
BY:
|
/s/ Kenneth W. Williams
|
Kenneth
W. Williams, Director
|
||
DATE:
February 26, 2009
|
BY:
|
/s/ William G. Yates,
Jr.
|
William
G. Yates, Jr., Director
|
Granted
<<grant
date>>
|
2.
|
Period of Restriction
and Vesting in the Award Shares
.
|
(a)
|
Subject
to earlier vesting or forfeiture as provided below, the period of
restriction (the “Period of Restriction”) applicable to the Award Shares
is the period from the Award Date through <<end of restriction
period>>, with vesting in the Award Shares being determined by the
Company’s return on average tangible equity (“ROATE”) and total
shareholder return (“TSR”) ranking for the <<number>> calendar
quarters beginning <<beginning of measurement period>> and
ending <<end of measurement period>> (the “Performance
Period”) compared to the ROATE and TSR for the Peer Group (see
Attachment A) as follows, where vesting in the Award Shares is equal
to the number of the Award Shares multiplied by the sum of the vesting
percentage in (A) and the vesting percentage in (B)
below:
|
(A)
|
(B)
|
|||
ROATE
|
ROATE
|
TSR
|
TSR
|
|
Ranking
|
Vesting Percentage
|
Ranking
|
Vesting Percentage
|
|
<<rank>>
Percentile
|
100%
|
+
|
<<rank>>
Percentile
|
100%
|
<<rank>>
Percentile
|
90%
|
+
|
<<rank>>
Percentile
|
90%
|
<<rank>>
Percentile
|
70%
|
+
|
<<rank>>
Percentile
|
70%
|
<<rank>>
Percentile
|
50%
|
+
|
<<rank>>
Percentile
|
50%
|
<<rank>>
Percentile
|
32.5%
|
+
|
<<rank>>
Percentile
|
32.5%
|
<<rank>>
Percentile
|
22.5%
|
+
|
<<rank>>
Percentile
|
22.5%
|
<<rank>>
Percentile
|
17.5%
|
+
|
<<rank>>
Percentile
|
17.5%
|
Less
than <<rank>>
|
0%
|
+
|
Less
than <<rank>>
|
0%
|
(b)
|
Subject
to earlier forfeiture as provided below, in the event a Vesting
Acceleration Event occurs while the Associate is an employee of the
Company or one of its Subsidiaries and after the first calendar quarter
in, but prior to the last day of, the Performance Period, then the ROATE
and the TSR of the Company and the Peer Group shall be determined for all
calendar quarters in the Performance Period ending on or prior to the date
of the first such Vesting Acceleration Event and the vesting provisions
set forth in Paragraph 2(a) shall be applied to a time-weighted portion of
the Award Shares (determined by multiplying the number of Award Shares by
a fraction (not to exceed one), the numerator of which is the number of
complete calendar months from the beginning of the Performance Period to
and including the Vesting Acceleration Event, and the denominator of which
is the number of calendar months in the Performance Period) based on such
ROATE and the TSR. In such event, the Period of Restriction
shall end, the restrictions applicable to the Award Shares shall
automatically terminate, and the Award Shares shall be free of
restrictions and freely transferable, all to the extent of the vested
Award Shares as so determined. In such event, the balance of
the Award Shares which are not vested shall be immediately forfeited, and
no Excess Shares (as otherwise provided for in Paragraph 11) shall be
granted. All determinations regarding vesting and entitlement
to the Award Shares under this Paragraph 2(b) shall be made and certified
to in writing by the Committee during the period beginning on the date of
the Vesting Acceleration Event and ending 2-1/2 months following the end
of the calendar quarter in which the Vesting Acceleration Event
occurs.
|
(c)
|
The
following terms have the following meanings for purposes
hereof:
|
|
(i)
|
“Cause”
means that the Associate (A) has committed an act of personal
dishonesty, embezzlement or fraud, (B) has misused alcohol or drugs,
(C) has failed to pay any obligation owed to the Company or any
affiliate, (D) has breached a fiduciary duty or deliberately
disregarded any rule of the Company or any affiliate, (E) has
committed an act of willful misconduct, or the intentional failure to
perform stated duties, (F) has willfully violated any law, rule or
regulation (other than misdemeanors, traffic violations or similar
offenses) or any final cease-and-desist order, (G) has disclosed
without authorization any confidential information of the Company or any
affiliate, (H) has engaged in any conduct constituting unfair
competition, or (I) has induced any customer of the Company or any
affiliate to breach a contract with the Company or any
affiliate.
|
(ii)
|
“Peer
Group” means the financial institutions listed on Attachment A
hereto; provided that subject to any restrictions and limitations under
Section 162(m) of the Internal Revenue Code, any listed financial
institution shall be eliminated if it is acquired or otherwise changes its
structure or business such that it is no longer reasonably comparable to
the Company (as determined by the Committee), and in the case of any such
elimination, the Committee may replace the eliminated financial
institution with another financial institution which it considers
reasonably comparable to the
Company.
|
(iii)
|
“ROATE”
means
the
cumulative
net earnings after taxes available to common
shareholders, adjusted for tax-affected amortization of intangibles, for
the calendar quarters in each calendar year in a specified period of time
divided by average shareholder’s tangible common equity (which is the
excess of the difference between the total assets, excluding total
identifiable intangible assets and goodwill, and the sum of total
liabilities and preferred equity, averaged for the calendar quarters in
each calendar year in the specified period), all as determined in
accordance with generally accepted accounting principles and as reported
in the company’s financial statements provided to shareholders and
converted to an annual rate by dividing by the number of years and partial
years (expressed in quarters) in the specified
period.
|
(iv)
|
“TSR”
means the return a holder of common stock earns over a specified period of
time, expressed as a percentage and including changes in Average Market
Value of, and dividends or other distributions with respect to, the stock
and
converted
to an annual rate by dividing the calculated percentage for the specified
period by the number of years and partial years (expressed in quarters) in
the specified period
. TSR return shall be determined as
the sum of (A) the Ending Average Market Value reduced by the
Beginning Average Market Value and (B) dividends or other
distributions with respect to a share paid during the specified period and
with such dividends and other distributions deemed reinvested in Stock
(based on Market Share Price on the date of payment where not paid in
Stock), and (C) with such sum being divided by the Beginning Average
Market Value. TSR, including the value of reinvested dividends
and other distributions, shall be determined on the basis of the
appropriate total shareholder return model of Bloomberg L.P. or any
affiliate thereof or such other authoritative source as the Committee may
determine. For purposes
hereof:
|
(A)
|
“Average
Market Value” means the average of the closing sale price of such stock
for the applicable ten trading days beginning or ending on a specified
date for which such closing sales price is reported by Bloomberg L.P. or
any affiliate thereof or such other authoritative source as the Committee
may determine.
|
(B)
|
“Beginning
Average Market Value” means the Average Market Value based on the first
ten trading days of the Performance
Period.
|
(C)
|
“Ending
Average Market Value” means the Average Market Value based on the last ten
trading days of the Performance Period (or other period as of which Ending
Average Market Value is
calculated).
|
(D)
|
“Market
Share Price” means the closing sale price for the specified day (or the
last preceding day thereto for which reported) as reported by Bloomberg
L.P. or any affiliate thereof or such other authoritative source as the
Committee may determine.
|
|
(v)
|
“Vesting
Acceleration Event” means the Associate’s death, the Associate’s
retirement, with the consent of the Committee or its delegate, at or after
age sixty-five (65) where there is no Cause (as defined herein) for the
Company to terminate the Associate’s employment, the termination of the
Associate’s employment with the Company and its Subsidiaries by the
Company other than for Cause (as defined herein), the occurrence of a
Change in Control (as defined in the Plan) which with respect to the
Associate is a change in the ownership or effective control of the Company
or in the ownership of a substantial portion of its assets (as defined in
Section 409A of the Internal Revenue Code),
or
|
(A)
|
if
the Associate does not have an Employment Agreement, the Associate’s
termination of employment due to becoming disabled (as defined for
purposes of Section 22(e)(3) of the Internal Revenue Code),
or
|
(B)
|
if
the Associate has an Employment Agreement, the Associate’s termination of
employment due to becoming disabled (as defined in his or her Employment
Agreement or, if not so defined, as defined for purposes of Section
22(e)(3) of the Internal Revenue Code), or the Associate’s termination of
employment with the Company and its Subsidiaries at his or her own
initiative for “Good Reason” (as defined in his or her Employment
Agreement, but only if defined
therein).
|
Trustmark
Corporation
|
Mailing
Address
|
248
E. Capitol Street
|
P.O.
Box 291
|
Jackson,
MS 39201
|
Jackson,
MS 39205
|
11.
|
Terms and Conditions
Applicable to Excess Shares Where Vesting in the Award Shares Exceeds
100%
.
|
(a)
|
Since
vesting in the Award Shares pursuant to Paragraph 2(a) equals the number
of Award Shares multiplied by the sum of the applicable ROATE vesting
percentage and the applicable TSR vesting percentage, the aggregate
vesting pursuant to Paragraph 2(a) could exceed 100%. In that
event, additional Restricted Stock (“Excess Shares”) shall be granted to
the Associate within the first 2-1/2 months following the end of the
Performance Period in a number equal to the excess of the aggregate
vesting pursuant to Paragraph 2(a) over 100% multiplied by the number of
Award Shares granted on the Award Date (as adjusted by the Committee
pursuant to Section 4.4 of the Plan
to reflect such
events as stock dividends, stock splits, recapitalizations, mergers,
consolidations or reorganizations of or by the Company). No
Excess Shares shall be granted in connection with vesting pursuant to
Paragraph 2(b).
|
(b)
|
The
Excess Shares, if any, shall be subject to the following terms and
conditions:
|
(i)
|
Voting
rights shall be provided from the date of grant of the Excess
Shares.
|
(ii)
|
Dividends
and other distributions with respect to the Excess Shares after the date
of grant thereof shall be deposited with the Company and shall be paid, to
the extent vested, when and to the extent the underlying Excess Shares are
vested and freed of restrictions. No dividends and other
distributions shall be accumulated for periods before the date of grant of
the Excess Shares.
|
(iii)
|
Subject
to earlier vesting or forfeiture as provided below, if the Associate
remains continuously employed by the Company or one of its Subsidiaries
from the beginning of the Performance Period through <<Excess Share
vesting date>> (the “Excess Share Regular Vesting Date”), then the
Excess Shares shall be vested and shall become freely transferable by the
Associate as of the last day of the Excess Share Regular Vesting
Date.
|
(iv)
|
Notwithstanding
Paragraph 11(b)(iii) above, but subject to earlier forfeiture as provided
below, in the event a Vesting Acceleration Event occurs while the
Associate is employed by the Company or one of its Subsidiaries and on or
after the last day of the Performance Period, but prior to the Excess
Share Regular Vesting Date, then the Excess Shares shall be vested and
shall become freely transferable by the Associate as of the date the
Vesting Acceleration Event occurs.
|
(v)
|
If
the Associate’s employment with the Company and its Subsidiaries ceases
prior to the Excess Share Regular Vesting Date and the Vesting
Acceleration Event vesting in Paragraph 11(b)(iv) above does not apply,
then the Excess Shares still subject to restrictions at the date of such
cessation of employment shall be automatically forfeited to the
Company.
|
(a)
|
It
is intended that any right or benefit which is provided pursuant to or in
connection with this Award which is considered to be nonqualified deferred
compensation subject to Section 409A (“Section 409A”) of the Internal
Revenue Code (a “409A benefit”) shall be provided and paid in a manner,
and at such time
(i.e., at the
applicable event described herein if a Section 409A payment event or
otherwise at the first Section 409A payment event thereafter consisting of
a fixed time (here, the 2-1/2 month period from <<vesting
determination period>> for
Award Shares and <<Excess
Share vesting date>> for Excess Shares)
, a Section 409A
disability, a Section 409A separation from service (as described below),
or a Section 409A change with respect to the Associate in the ownership or
effective control of the Company or in the ownership of a substantial
portion of its assets of the Company and including, in the discretion of
the Committee or its delegate, any applicable Section 409A de minimis
limited cashout payment permitted under Treasury Reg. Section
1.409A-3(j)(4)(v))
and in such form, as complies with the
applicable requirements of Section 409A to avoid the unfavorable tax
consequences provided therein for non-compliance. Consequently,
this Agreement is intended to be administered, interpreted and construed
in accordance with the applicable requirements of Section
409A. Notwithstanding the foregoing, the Associate and his or
her successor in interest shall be solely responsible and liable for the
satisfaction of all taxes and penalties that may be imposed on the
Associate or his or her successor in interest in connection with this
Agreement (including any taxes and penalties under Section 409A); and
neither the Company nor any of its affiliates shall have any obligation to
indemnify or otherwise hold the Associate or his or her successor in
interest harmless from any or all of such taxes or
penalties.
|
(b)
|
Except
as permitted under Section 409A, any 409A benefit payable to the Associate
or for his or her benefit with respect to the Award may not be reduced by,
or offset against, any amount owing by the Associate to the Company or any
of its affiliates.
|
(c)
|
To
the extent that entitlement to payment of any 409A benefit occurs due to
termination or cessation of employment, termination or cessation of
employment shall be read to mean “separation from service” (within the
meaning of Section 409A and as applicable to the Company and its
affiliates). Where entitlement to payment occurs by reason of
such termination or cessation of employment and the Associate is a
“specified employee” (within the meaning of Section 409A, as applicable to
the Company and its affiliates and using the identification methodology
selected by the Company from time to time in accordance with Section 409A)
on the date of his or her “separation from service”, then payment of such
409A benefit shall be delayed (without interest) until the first business
day after the end of the six month delay period required under Section
409A or, if earlier, after the Associate’s death. In
determining separation from service, separation from service is determined
based on the “Separation from Service” definition in the Trustmark
Corporation Deferred Compensation Plan (as in effect on
<<date>>), which provides, in part, that in determining
separation from service as an employee, separation from service occurs
when it is reasonably anticipated that no further services would be
performed after that date or that the level of services the Associate
would perform after that date (whether as an employee or independent
contractor) would permanently decrease to less than 50% of the average
level of bona fide services performed over the immediately preceding
<<months>> month
period.
|
COMPANY:
|
|||
TRUSTMARK
CORPORATION
|
|||
By:
|
|||
Its:
|
|||
ASSOCIATE
:
|
|||
By:
|
|||
«name»
|
2.
|
Period of
Restriction
and Vesting in the
Award Shares
.
|
(a)
|
Subject
to earlier vesting or forfeiture as provided below, the period of
restriction (the “Period of Restriction”) applicable to the Award Shares
is the period from the Award Date through <<end of restriction
period>>, with vesting in the Award Shares being <<vesting
schedule>> if the Associate’s employment with the Company or its
Subsidiaries continues for the <<vesting
period>>.
|
(b)
|
Except
as contemplated in Paragraph 2(c), the Award Shares may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated,
otherwise than by will or by the laws of descent and distribution, during
the <<vesting period>>. Except as otherwise
provided pursuant to Paragraph 2(c), the Award Shares as determined
pursuant to Paragraph 2(a) shall become freely transferable by the
Associate as of the last day of the <<vesting
period>>.
|
(c)
|
Subject
to earlier forfeiture as provided below, in the event a Vesting
Acceleration Event occurs while the Associate is an employee of the
Company or one of its Subsidiaries and after the first calendar quarter
in, but prior to the last day of, <<vesting period>>, then
vesting in the Award Shares shall be provided for a time-weighted portion
of the Award Shares (determined by multiplying the number of Award Shares
by a fraction (not to exceed one), the numerator of which is the number of
complete calendar months from the beginning of the Period of Restriction
(counting the calendar month containing the Award Date as a complete
calendar month) to and including the Vesting Acceleration Event, and the
denominator of which is the number of whole and partial calendar months in
the Period of Restriction). In such event, the Period of
Restriction shall end, the restrictions applicable to the Award Shares
shall automatically terminate, and the Award Shares shall be free of
restrictions and freely transferable, all to the extent of the vested
Award Shares as so determined. In such event, the balance of
the Award Shares which are not vested shall be immediately
forfeited.
|
(d)
|
The
following terms have the following meanings for purposes
hereof:
|
|
(i)
|
“Cause”
means that the Associate (A) has committed an act of personal dishonesty,
embezzlement or fraud, (B) has misused alcohol or drugs, (C) has
failed to pay any obligation owed to the Company or any affiliate, (D) has
breached a fiduciary duty or deliberately disregarded any rule of the
Company or any affiliate, (E) has committed an act of willful
misconduct, or the intentional failure to perform stated duties,
(F) has willfully violated any law, rule or regulation (other than
misdemeanors, traffic violations or similar offenses) or any final
cease-and-desist order, (G) has disclosed without authorization any
confidential information of the Company or any affiliate, (H) has
engaged in any conduct constituting unfair competition, or (I) has
induced any customer of the Company or any affiliate to breach a contract
with the Company or any affiliate.
|
(ii)
|
“Vesting
Acceleration Event” means the Associate’s death, the Associate’s
retirement, with the consent of the
Committee or its
delegate
, at or after age sixty-five (65) where there is no Cause
(as defined herein) for the Company to terminate the Associate’s
employment, the termination of the Associate’s employment with the Company
and its Subsidiaries by the Company other than for Cause (as defined
herein), the occurrence of a Change in Control (as defined in the
Plan)
which with respect
to the Associate is a change in the ownership or effective control of the
Company or in the ownership of a substantial portion of its assets (as
defined in Section 409A of the Internal Revenue Code)
,
or
|
(A)
|
if
the Associate does not have an Employment Agreement, the Associate’s
termination of employment due to becoming disabled (as defined for
purposes of Section 22(e)(3) of the Internal Revenue Code),
or
|
(B)
|
if
the Associate has an Employment Agreement, the Associate’s termination of
employment due to becoming disabled (as defined in his or her Employment
Agreement or, if not so defined, as defined for purposes of Section
22(e)(3) of the Internal Revenue Code), or the Associate’s
termination of employment with the Company and its Subsidiaries at his or
her own initiative for “Good Reason” (as defined in his or her Employment
Agreement, but only if defined
therein).
|
Trustmark
Corporation
|
Mailing
Address
|
248
E. Capitol Street
|
P.O.
Box 291
|
Jackson,
MS 39201
|
Jackson,
MS 39205
|
(a)
|
It
is intended that any right or benefit which is provided pursuant to or in
connection with this Award which is considered to be nonqualified deferred
compensation subject to Section 409A (“Section 409A”) of the Internal
Revenue Code (a “409A benefit”) shall be provided and paid in a manner,
and at such time
(i.e.,
at
the applicable event
described herein if a Section 409A payment event or otherwise at the first
Section 409A payment event thereafter consisting of a fixed
time
(here,
<<date>>)
, a Section 409A
disability, a Section 409A separation from service (as described below),
or a Section 409A change
with respect to the
Associate
in the ownership or
effective control of the Company or in the ownership of a substantial
portion of its assets of the Company and including
, in the discretion
of the Committee or its delegate,
any applicable
Section 409A de minimis
limited cashout
payment
rule
permitted under
Treasury Reg. Section 1.409A-3(j)(4)(v)
)
and in such
form, as complies with the applicable requirements of Section 409A to
avoid the unfavorable tax consequences provided therein for
non-compliance. Consequently, this Agreement is intended to be
administered, interpreted and construed in accordance with the applicable
requirements of Section 409A. Notwithstanding the foregoing,
the Associate and his or her successor in interest shall be solely
responsible and liable for the satisfaction of all taxes and penalties
that may be imposed on the Associate or his or her successor in interest
in connection with this Agreement (including any taxes and penalties under
Section 409A); and neither the Company nor any of its affiliates shall
have any obligation to indemnify or otherwise hold the Associate or his or
her successor in interest harmless from any or all of such taxes or
penalties.
|
(b)
|
Except
as permitted under Section 409A, any 409A benefit payable to the Associate
or for his or her benefit with respect to the Award may not be reduced by,
or offset against, any amount owing by the Associate to the Company or any
of its affiliates.
|
(c)
|
To
the extent that entitlement to payment of any 409A benefit occurs due to
termination or cessation of employment, termination or cessation of
employment shall be read to mean “separation from service” (within the
meaning of Section 409A and as applicable to the Company and its
affiliates). Where entitlement to payment occurs by reason of
such termination or cessation of employment and the Associate is a
“specified employee” (within the meaning of Section 409A, as applicable to
the Company and its affiliates and using the identification methodology
selected by the Company from time to time in accordance with Section 409A)
on the date of his or her “separation from service”, then payment of such
409A benefit shall be delayed (without interest) until the first business
day after the end of the six month delay period required under Section
409A or, if earlier, after the Associate’s death. In
determining separation from service, separation from service is determined
based on the “Separation from Service” definition in the Trustmark
Corporation Deferred Compensation Plan (as in effect on
<<date>>), which provides, in part, that in determining
separation from service as an employee, separation from service occurs
when it is reasonably anticipated that no further services would be
performed after that date or that the level of services the Associate
would perform after that date (whether as an employee or independent
contractor) would permanently decrease to less than 50% of the average
level of bona fide services performed over the immediately preceding
<<months>> month
period.
|
COMPANY:
|
|||
TRUSTMARK
CORPORATION
|
|||
By:
|
|||
Its:
|
|||
ASSOCIATE
:
|
|||
By:
|
|||
«name»
|
Granted
January 27, 2009
|
(a)
|
Subject
to earlier vesting or forfeiture as provided below, the period of
restriction (the “Period of Restriction”) applicable to the Award Units is
the period from the Award Date through May 10, 2011, with vesting in
the Award Units being determined based on both the Associate’s continued
employment by the Company through May 10, 2011 (“service-based
vesting”) and the Company’s return on average tangible equity (“ROATE”)
and total shareholder return (“TSR”) ranking for the eight calendar
quarters beginning January 1, 2009 and ending December 31, 2010
(the “Performance Period”) compared to the ROATE and TSR for the Peer
Group (see Attachment A) as follows, where vesting in the Award Units
is equal to the number of the Award Units multiplied by the sum of the
vesting percentage in (A) and the vesting percentage in (B) below
(“performance-based
vesting”):
|
|
(A)
|
|
(B)
|
|||
ROATE
|
ROATE
|
TSR
|
TSR
|
|||
Ranking
|
Vesting
Percentage
|
Ranking
|
Vesting
Percentage
|
|||
75th
Percentile
|
100%
|
+
|
75th
Percentile
|
100%
|
||
70th
Percentile
|
90%
|
+
|
70th
Percentile
|
90%
|
||
60th
Percentile
|
70%
|
+
|
60th
Percentile
|
70%
|
||
50th
Percentile
|
50%
|
+
|
50th
Percentile
|
50%
|
||
40th
Percentile
|
32.5%
|
+
|
40th
Percentile
|
32.5%
|
||
35th
Percentile
|
22.5%
|
+
|
35th
Percentile
|
22.5%
|
||
30th
Percentile
|
17.5%
|
+
|
30th
Percentile
|
17.5%
|
||
Less
than 30th
|
0%
|
+
|
Less
than 30th
|
0%
|
(b)
|
Subject
to earlier forfeiture as provided
below:
|
(i)
|
In
the event a Vesting Acceleration Event occurs while the Associate is an
employee of the Company and after the first calendar quarter in, but prior
to the last day of, the Performance Period, then (A) the
service-based vesting requirement in Paragraph 2(a) shall be considered
met as of such Vesting Acceleration Event and (B) the ROATE and the
TSR of the Company and the Peer Group for performance-based vesting
purposes shall be determined for all calendar quarters in the Performance
Period ending on or prior to the date of the first such Vesting
Acceleration Event and the performance-based vesting provisions set forth
in Paragraph 2(a) shall be applied to a time-weighted portion of the Award
Units (determined by multiplying the number of Award Units by a fraction
(not to exceed one), the numerator of which is the number of complete
calendar months from the beginning of the Performance Period to and
including the Vesting Acceleration Event, and the denominator of which is
the number of calendar months in the Performance Period) based on such
ROATE and the TSR. In such event, the Period of Restriction
shall end and the Award Units shall be settled in cash, all to the extent
of the vested Award Units as so determined. In such event, the
balance of the Award Units which are not vested shall be immediately
forfeited, and no Excess Units (as otherwise provided for in Paragraph 11)
shall be granted. All determinations regarding vesting and
entitlement to the Award Units under this Paragraph 2(b)(i) shall be made
and certified to in writing by the Committee during the period beginning
on the date of the Vesting Acceleration Event and ending 2-1/2 months
following the end of the calendar quarter in which the Vesting
Acceleration Event occurs.
S
ettlement
of such vested Award Units under this Paragraph 2(b)(i) shall occur
immediately after the Committee’s
certification.
|
(ii)
|
In
the event a Vesting Acceleration Event occurs while the Associate is an
employee of the Company and after the last day of the Performance Period
but prior to May 10, 2011, then the Award Units which are
contingently vested based on the performance-based vesting in Paragraph
2(a) shall be deemed to have satisfied the service-based vesting
requirement in Paragraph 2(a) as of such Vesting Acceleration
Event. In such event, the Period of Restriction shall end and
the vested Award Units shall be settled in cash. Settlement of
such vested Award Units under this Paragraph 2(b)(ii) shall be immediate
on the Vesting Acceleration Date. This Paragraph 2(b)(ii) does
not apply to Excess Units for which vesting and settlement is determined
under Paragraph 11.
|
(c)
|
The
following terms have the following meanings for purposes
hereof:
|
|
(i)
|
“Cause”
means that the Associate (A) has committed an act of personal
dishonesty, embezzlement or fraud, (B) has misused alcohol or drugs,
(C) has failed to pay any obligation owed to the Company or any
affiliate, (D) has breached a fiduciary duty or deliberately
disregarded any rule of the Company or any affiliate, (E) has
committed an act of willful misconduct, or the intentional failure to
perform stated duties, (F) has willfully violated any law, rule or
regulation (other than misdemeanors, traffic violations or similar
offenses) or any final cease-and-desist order, (G) has disclosed
without authorization any confidential information of the Company or any
affiliate, (H) has engaged in any conduct constituting unfair
competition, or (I) has induced any customer of the Company or any
affiliate to breach a contract with the Company or any
affiliate.
|
|
(i
i
)
|
“
Employment
Agreement
” means that
employment agreement dated November 20, 2008 entered into by
and between the Company and the Associate, as in effect on the Award
Date
.
|
(iii)
|
“Peer
Group” means the financial institutions listed on Attachment A
hereto; provided that any listed financial institution shall be eliminated
if it is acquired or otherwise changes its structure or business such that
it is no longer reasonably comparable to the Company (as determined by the
Committee), and in the case of any such elimination, the Committee may
replace the eliminated financial institution with another financial
institution which it considers reasonably comparable to the
Company.
|
(iv)
|
“ROATE”
means
the
cumulative
net earnings after taxes available to common
shareholders, adjusted for tax-affected amortization of intangibles,
for the calendar quarters in each calendar year in a specified period of
time divided by average shareholder’s tangible common equity (which is the
excess of the difference between the total assets, excluding total
identifiable intangible assets and goodwill, and the sum of total
liabilities and preferred equity, averaged for the calendar quarters in
each calendar year in the specified period), all as determined in
accordance with generally accepted accounting principles and as reported
in the company’s financial statements provided to shareholders and
converted to an annual rate by dividing by the number of years and partial
years (expressed in quarters) in the specified
period.
|
(v)
|
“TSR”
means the return a holder of common stock earns over a specified period of
time, expressed as a percentage and including changes in Average Market
Value of, and dividends or other distributions with respect to, the stock
and
converted to an
annual rate by dividing the calculated percentage for the specified period
by the number of years and partial years (expressed in quarters) in the
specified period
. TSR return shall be determined as the
sum of (A) the Ending Average Market Value reduced by the Beginning
Average Market Value and (B) dividends or other distributions with
respect to a share paid during the specified period and with such
dividends and other distributions deemed reinvested in Stock (based on
Market Share Price on the date of payment where not paid in Stock), and
(C) with such sum being divided by the Beginning Average Market
Value. TSR, including the value of reinvested dividends and
other distributions, shall be determined on the basis of the appropriate
total shareholder return model of Bloomberg L.P. or any affiliate thereof
or such other authoritative source as the Committee may
determine. For purposes
hereof:
|
(A)
|
“Average
Market Value” means the average of the closing sale price of such
stock for the applicable ten trading days beginning or ending on a
specified date for which such closing sales price is reported by Bloomberg
L.P. or any affiliate thereof or such other authoritative source as the
Committee may determine.
|
(B)
|
“Beginning
Average Market Value” means the Average Market Value based on the
first ten trading days of the Performance
Period.
|
(C)
|
“Ending
Average Market Value” means the Average Market Value based on the
last ten trading days of the Performance Period (or other period as of
which Ending Average Market Value is
calculated).
|
(D)
|
“Market
Share Price” means the closing sale price for the specified day (or the
last preceding day thereto for which reported) as reported by Bloomberg
L.P. or any affiliate thereof or such other authoritative source as the
Committee may determine.
|
(vi)
|
“Vesting
Acceleration Event” means the Associate’s death, the termination of
the Associate’s employment with the Company by the Company other than for
Cause (as defined herein), the occurrence of a Change in Control (as
defined in the 2005 Plan)
which with respect
to the Associate is a change in the ownership or effective control of the
Company or in the ownership of a substantial portion of its assets (as
defined in Section 409A of the Internal Revenue Code)
, or the
Associate’s termination of employment due to becoming disabled (as defined
in his Employment Agreement, or the Associate’s termination of
employment with the Company at his own initiative for “Good Reason” (as
defined in his Employment Agreement, but only if defined
therein).
|
Trustmark
Corporation
|
Mailing
Address
|
248
E. Capitol
|
Street
P.O. Box 291
|
Jackson,
MS 39201
|
Jackson,
MS 39205
|
(a)
|
Since
performance-based vesting in the Award Units pursuant to Paragraph 2(a)
equals the number of Award Units multiplied by the sum of the
applicable ROATE vesting percentage and the applicable TSR vesting
percentage, the aggregate performance-based vesting pursuant to Paragraph
2(a) could exceed 100%. In that event, additional Units (“Excess
Units”) shall be granted to the Associate within the first 2-1/2 months
following the end of the Performance Period in a number equal to the
excess of the aggregate performance-based vesting pursuant to Paragraph
2(a) over 100% multiplied by the number of Award Units granted on the
Award Date (as adjusted by the Committee pursuant to Section 4.4 of the
2005 Plan
to reflect such
events as stock dividends, stock splits, recapitalizations, mergers,
consolidations or reorganizations of or by the Company
). No
Excess Units shall be granted in connection with vesting pursuant to
Paragraph 2(b).
|
(b)
|
The
Excess Units, if any, shall be subject to the following terms and
conditions:
|
(i)
|
Dividends
Credits on Excess Units, determined as though each Excess Unit was a
Share, shall be credited and accumulated from and after the date the
Committee grants the Excess Units. Such Dividend Credits shall be
accumulated and shall be subject to the same vesting as the Excess Units
with respect to which they are attributable and shall, to the extent
vested, be settled and paid in cash when and to the extent the underlying
Excess Units are vested and
settled.
|
(ii)
|
Subject
to earlier vesting or forfeiture as provided below, if the Associate
remains continuously employed by the Company or one of its Subsidiaries
from the beginning of the Performance Period through May 10, 2011
(the “Excess Unit Regular Vesting Date”), then the Excess Units shall be
vested and settlement of the vested Excess Units as determined pursuant
hereto shall occur on the Excess Unit Regular Vesting Date, and any
unvested balance of the Award Units at that time shall be
forfeited.
|
(iii)
|
Notwithstanding
Paragraph 11(b)(ii) above, but subject to earlier forfeiture as provided
below and Paragraph 13, in the event a Vesting Acceleration Event
occurs while the Associate is employed by the Company and on or after the
last day of the Performance Period, but prior to the Excess Unit Regular
Vesting Date, then the Excess Units shall be vested and settlement of the
vested Excess Units as determined pursuant hereto shall occur on the date
the Vesting Acceleration Event
occurs.
|
(iv)
|
If
the Associate’s employment with the Company ceases prior to the Excess
Unit Regular Vesting Date and the Vesting Acceleration Event vesting in
Paragraph 11(b)(iii) above does not apply, then the unvested Excess Units
at the time shall be automatically forfeited to the
Company.
|
(a)
|
It
is intended that any right or benefit which is provided pursuant to or in
connection with this Award which is considered to be nonqualified deferred
compensation subject to Section 409A (“Section 409A”) of the Internal
Revenue Code (a “409A benefit”) shall be provided and paid in a manner,
and at such time
(i.e.,
at
the applicable event
described herein if a Section 409A payment event or otherwise at the first
Section 409A payment event thereafter consisting of a fixed
time
(here,
May 10, 2011 for Award Units and May 10, 2011
Excess Units)
,
a Section 409A disability, a Section 409A separation from service (as
described below), or a Section 409A change
with respect to the
Associate
in the ownership or
effective control of the Company or in the ownership of a substantial
portion of its assets of the Company and including
, in the discretion
of the Committee or its delegate,
any applicable
Section 409A de minimis
limited cashout
payment
permitted under
Treasury Reg. Section 1.409A-3(j)(4)(v)
)
and in such
form, as complies with the applicable requirements of Section 409A to
avoid the unfavorable tax consequences provided therein for
non-compliance. Consequently, this Agreement is intended to be
administered, interpreted and construed in accordance with the applicable
requirements of Section 409A. Notwithstanding the foregoing,
the Associate and his successor in interest shall be solely responsible
and liable for the satisfaction of all taxes and penalties that may be
imposed on the Associate or his successor in interest in connection with
this Agreement (including any taxes and penalties under Section 409A); and
neither the Company nor any of its affiliates shall have any obligation to
indemnify or otherwise hold the Associate or his successor in interest
harmless from any or all of such taxes or
penalties.
|
(b)
|
Except
as permitted under Section 409A, any 409A benefit payable to the Associate
or for his benefit with respect to the Award may not be reduced by, or
offset against, any amount owing by the Associate to the Company or any of
its affiliates.
|
(c)
|
To
the extent that entitlement to payment of any 409A benefit occurs due to
termination or cessation of employment, termination or cessation of
employment shall be read to mean “separation from service” (within the
meaning of Section 409A and as applicable to the Company and its
affiliates). Where entitlement to payment occurs by reason of
such termination or cessation of employment and the Associate is a
“specified employee” (within the meaning of Section 409A, as applicable to
the Company and its affiliates and using the identification methodology
selected by the Company from time to time in accordance with Section 409A)
on the date of his “separation from service”, then payment of such 409A
benefit shall be delayed (without interest) until the first business day
after the end of the six month delay period required under Section 409A
or, if earlier, after the Associate’s death. In determining
separation from service, separation from service is determined based on
the “Separation from Service” definition in the Trustmark Corporation
Deferred Compensation Plan (as in effect on December 31, 2008), which
provides, in part, that in determining separation from service as an
employee, separation from service occurs when it is reasonably anticipated
that no further services would be performed after that date or that the
level of services the Associate would perform after that date (whether as
an employee or independent contractor) would permanently decrease to less
than 50% of the average level of bona fide services performed over the
immediately preceding thirty-six (36) month
period.
|
COMPANY:
|
|||
TRUSTMARK
CORPORATION
|
|||
By:
|
/s/
Louis
E.
Greer
|
||
Its:
|
Treasurer and Principal Financial
Officer
|
||
ASSOCIATE
:
|
|||
By:
|
/s/
Richard
G.
Hickson
|
||
Richard G. Hickson
|
Name
|
Ticker
Symbol
|
City
|
State
|
|||
BancorpSouth,
Inc.
|
BXS
|
Tupelo
|
MS
|
|||
Citizens
Republic Bancorp, Inc.
|
CRBC
|
Flint
|
MI
|
|||
Commerce
Bancshares, Inc.
|
CBSH
|
Kansas
City
|
MO
|
|||
Cullen/Frost
Bankers, Inc.
|
CFR
|
San
Antonio
|
TX
|
|||
First
Midwest Bancorp, Inc.
|
FMBI
|
Itasca
|
IL
|
|||
FirstMerit
Corporation
|
FMER
|
Akron
|
OH
|
|||
F.N.B.
Corporation
|
FNB
|
Hermitage
|
PA
|
|||
Fulton
Financial Corporation
|
FULT
|
Lancaster
|
PA
|
|||
Hancock
Holding Company
|
HBHC
|
Gulfport
|
MS
|
|||
MB
Financial, Inc.
|
MBFI
|
Chicago
|
IL
|
|||
Old
National Bancorp
|
ONB
|
Evansville
|
IN
|
|||
Pacific
Capital Bancorp
|
PCBC
|
Santa
Barbara
|
CA
|
|||
Park
National Corporation
|
PRK
|
Newark
|
OH
|
|||
South
Financial Group, Inc.
|
TSFG
|
Greenville
|
SC
|
|||
Sterling
Financial Corporation
|
STSA
|
Spokane
|
WA
|
|||
Susquehanna
Bancshares Inc.
|
SUSQ
|
Lititz
|
PA
|
|||
UMB
Financial Corporation
|
UMBF
|
Kansas
City
|
MO
|
|||
Umpqua
Holdings Corporation
|
UMPQ
|
Portland
|
OR
|
|||
United
Bankshares, Inc.
|
UBSI
|
Charleston
|
WV
|
|||
United
Community Banks, Inc.
|
UCBI
|
Blairsville
|
GA
|
|||
Valley
National Bancorp
|
VLY
|
Wayne
|
NJ
|
|||
Webster
Financial Corporation
|
WBS
|
Waterbury
|
CT
|
|||
Whitney
Holding Corporation
|
WTNY
|
New
Orleans
|
LA
|
Name
|
Jurisdiction Where
Organized
|
|
Trustmark
National Bank
|
Mississippi
|
|
F.
S. Corporation
|
Mississippi
|
|
First
Building Corporation
|
Mississippi
|
|
Somerville
Bank & Trust Company
|
Tennessee
|
|
Trustmark
Preferred Capital Trust I
|
Delaware
|
|
Republic
Bancshares Capital Trust I
|
Delaware
|
|
Trustmark
Securities, Inc. (1)
|
Mississippi
|
|
The
Bottrell Insurance Agency, Inc. (1)
|
Mississippi
|
|
Trustmark
Investment Advisors, Inc. (1)
|
Mississippi
|
|
TRMK
Risk Management, Inc. (1)
|
Mississippi
|
|
Fisher-Brown,
Incorporated (1)
|
Florida
|
|
1)
|
I
have reviewed this annual report on Form 10-K of Trustmark
Corporation;
|
|
2)
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3)
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4)
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
|
a.
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b.
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c.
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d.
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5)
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent
function):
|
|
a.
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
|
b.
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
BY:
|
/s/ Richard G.
Hickson
|
DATE:
|
February
26, 2009
|
|
1)
|
I
have reviewed this annual report on Form 10-K of Trustmark
Corporation;
|
|
2)
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3)
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4)
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
|
a.
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b.
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c.
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d.
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5)
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent
function):
|
|
a.
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
|
b.
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
BY:
|
/s/ Louis E.
Greer
|
DATE:
|
February
26, 2009
|
|
1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
|
2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of
Trustmark.
|
BY:
|
/s/ Richard G.
Hickson
|
DATE:
|
February
26, 2009
|
|
1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
|
2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of
Trustmark.
|
BY:
|
/s/ Louis E.
Greer
|
DATE:
|
February
26, 2009
|