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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2012
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TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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MISSISSIPPI
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64-0471500
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification Number)
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248 East Capitol Street, Jackson, Mississippi
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39201
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(601) 208-5111
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Securities registered pursuant to Section 12(b) of the Act:
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Common Stock, no par value
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NASDAQ Stock Market
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(Title of Class)
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(Name of Exchange on Which Registered)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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PART I
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PAGE
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Item 1.
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3
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Item 1A.
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17
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Item 1B.
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23
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Item 2.
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23
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Item 3.
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23
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Item 4.
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25
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PART II
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Item 5.
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25 | |||
Item 6.
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27
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Item 7.
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29
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Item 7A.
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75
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Item 8.
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77
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Item 9.
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146
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Item 9A.
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146
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Item 9B.
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147
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PART III
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Item 10.
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148
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Item 11.
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148
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Item 12.
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148 | |||
Item 13.
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148
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Item 14.
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148
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PART IV
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Item 15.
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149
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153
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Summary Information
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||||||||||||||||||||
($ in thousands)
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||||||||||||||||||||
December 31,
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2012
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2011
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2010
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2009
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2008
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|||||||||||||||
Securities
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$ | 2,699,933 | $ | 2,526,698 | $ | 2,318,096 | $ | 1,917,380 | $ | 1,802,470 | ||||||||||
Total securities growth
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$ | 173,235 | $ | 208,602 | $ | 400,716 | $ | 114,910 | $ | 1,085,029 | ||||||||||
Total securities growth
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6.86 | % | 9.00 | % | 20.90 | % | 6.38 | % | 151.24 | % | ||||||||||
Loans *
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$ | 5,726,318 | $ | 5,934,288 | $ | 6,060,242 | $ | 6,319,797 | $ | 6,722,403 | ||||||||||
Total loans decline
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$ | (207,970 | ) | $ | (125,954 | ) | $ | (259,555 | ) | $ | (402,606 | ) | $ | (318,389 | ) | |||||
Total loans decline
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-3.50 | % | -2.08 | % | -4.11 | % | -5.99 | % | -4.52 | % | ||||||||||
Assets
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$ | 9,828,667 | $ | 9,727,007 | $ | 9,553,902 | $ | 9,526,018 | $ | 9,790,909 | ||||||||||
Total assets growth (decline)
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$ | 101,660 | $ | 173,105 | $ | 27,884 | $ | (264,891 | ) | $ | 824,107 | |||||||||
Total assets growth (decline)
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1.05 | % | 1.81 | % | 0.29 | % | -2.71 | % | 9.19 | % | ||||||||||
Deposits
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$ | 7,896,517 | $ | 7,566,363 | $ | 7,044,567 | $ | 7,188,465 | $ | 6,823,870 | ||||||||||
Total deposits growth (decline)
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$ | 330,154 | $ | 521,796 | $ | (143,898 | ) | $ | 364,595 | $ | (45,402 | ) | ||||||||
Total deposits growth (decline)
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4.36 | % | 7.41 | % | -2.00 | % | 5.34 | % | -0.66 | % | ||||||||||
Equity
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$ | 1,287,369 | $ | 1,215,037 | $ | 1,149,484 | $ | 1,110,060 | $ | 1,178,466 | ||||||||||
Total equity growth (decline)
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$ | 72,332 | $ | 65,553 | $ | 39,424 | $ | (68,406 | ) | $ | 258,830 | |||||||||
Total equity growth (decline)
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5.95 | % | 5.70 | % | 3.55 | % | -5.80 | % | 28.14 | % | ||||||||||
Years Ended December 31,
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||||||||||||||||||||
Revenue **
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$ | 516,179 | $ | 508,797 | $ | 517,950 | $ | 522,451 | $ | 496,418 | ||||||||||
Total revenue growth (decline)
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$ | 7,382 | $ | (9,153 | ) | $ | (4,501 | ) | $ | 26,033 | $ | 33,188 | ||||||||
Total revenue growth (decline)
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1.45 | % | -1.77 | % | -0.86 | % | 5.24 | % | 7.16 | % |
Loans
(3)
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Deposits
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Revenue
(4)
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||||||||||||||||||||||
Amount
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%
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Amount
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%
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Amount
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%
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|||||||||||||||||||
Mississippi
(1)
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$ | 4,010,197 | 70.1 | % | $ | 5,749,711 | 72.8 | % | $ | 385,179 | 74.6 | % | ||||||||||||
Tennessee
(2)
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493,794 | 8.6 | % | 1,288,543 | 16.3 | % | 51,402 | 10.0 | % | |||||||||||||||
Florida
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408,943 | 7.1 | % | 414,312 | 5.3 | % | 38,813 | 7.5 | % | |||||||||||||||
Texas
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813,384 | 14.2 | % | 443,951 | 5.6 | % | 40,785 | 7.9 | % | |||||||||||||||
Total
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$ | 5,726,318 | 100.0 | % | $ | 7,896,517 | 100.0 | % | $ | 516,179 | 100.0 | % |
Years ended December 31,
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2012
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2011
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2010
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General Banking
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||||||||||||
Net interest income
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$ | 336,362 | $ | 344,415 | $ | 347,607 | ||||||
Provision for loan losses, net
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12,188 | 30,185 | 49,551 | |||||||||
Noninterest income
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122,421 | 109,601 | 115,934 | |||||||||
Net income
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108,975 | 100,568 | 93,025 | |||||||||
Average assets
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9,658,924 | 9,436,557 | 9,136,491 | |||||||||
Wealth Management
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||||||||||||
Net interest income
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$ | 4,327 | $ | 4,256 | $ | 4,174 | ||||||
Provision for loan losses, net
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106 | 143 | (5 | ) | ||||||||
Noninterest income
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24,565 | 23,300 | 22,243 | |||||||||
Net income
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3,823 | 2,810 | 3,975 | |||||||||
Average assets
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78,567 | 81,472 | 89,240 | |||||||||
Insurance
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||||||||||||
Net interest income
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$ | 301 | $ | 272 | $ | 242 | ||||||
Noninterest income
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28,203 | 26,953 | 27,750 | |||||||||
Net income
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4,485 | 3,463 | 3,636 | |||||||||
Average assets
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65,560 | 65,414 | 66,096 |
Deposit Market Share
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Market
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Mississippi
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14.22 | % | ||
Texas
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0.07 | % | ||
Tennessee
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0.28 | % | ||
Florida
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0.10 | % |
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·
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In general, for a given change in interest rates, the amount of the change in value (positive or negative) is larger for assets and liabilities with longer remaining maturities. The shape of the yield curve may affect new loan yields, funding costs and investment income differently.
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·
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The remaining maturity of various assets or liabilities may shorten or lengthen as payment behavior changes in response to changes in interest rates. For example, if interest rates decline sharply, fixed-rate loans may pre-pay, or pay down, faster than anticipated, thus reducing future cash flows and interest income. Conversely, if interest rates increase, depositors may cash in their certificates of deposit prior to term (notwithstanding any applicable early withdrawal penalties) or otherwise reduce their deposits to pursue higher yielding investment alternatives. 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, rates on demand deposits may rise by 10 basis points, whereas rates on prime-based loans will instantly rise 50 basis points.
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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 further affect Trustmark’s charge-offs and provision for loan losses.
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Loan performance could experience a significantly extended deterioration or loan default levels could accelerate, foreclosure activity could significantly increase, or Trustmark’s assets (including loans and investment securities) could materially decline, any one of which, or any combination of more than one of which, could have a material adverse effect on Trustmark’s financial condition or results of operations.
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·
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Conditions in Trustmark’s four key market regions, Florida, Mississippi, Tennessee or Texas, could worsen.
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Competition in the industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions.
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·
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Management’s ability to measure the fair value of Trustmark’s assets could be adversely affected by market disruptions that have made valuation of assets even more difficult and subjective. If Management 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 by any such change, and a rating agency might downgrade Trustmark’s credit rating or put Trustmark on credit watch.
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·
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actual or anticipated variations in earnings;
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·
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changes in analysts’ recommendations or projections;
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operating and stock performance of other companies deemed to be peers;
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perception in the marketplace regarding Trustmark, its competitors and/or the industry as a whole;
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·
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significant acquisitions or business combinations involving Trustmark or its competitors;
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·
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changes in government regulation;
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·
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failure to integrate acquisitions or realize anticipated benefits from acquisitions; and
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·
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volatility affecting the financial markets in general.
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2012
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2011
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||||||||||||||||
Sales Price Per Share
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High
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Low
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High
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Low
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|||||||||||||
First quarter
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$ | 25.88 | $ | 22.86 | $ | 26.14 | $ | 21.57 | |||||||||
Second quarter
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26.16 | 22.97 | 24.50 | 22.27 | |||||||||||||
Third quarter
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26.35 | 23.37 | 24.14 | 17.62 | |||||||||||||
Fourth quarter
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24.96 | 20.76 | 24.78 | 17.06 |
Dividends Per Share
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2012 | 2011 | |||||||||||||||
First quarter
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$ | 0.23 | $ | 0.23 | |||||||||||||
Second quarter
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0.23 | 0.23 | |||||||||||||||
Third quarter
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0.23 | 0.23 | |||||||||||||||
Fourth quarter
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0.23 | 0.23 | |||||||||||||||
Total
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$ | 0.92 | $ | 0.92 |
Company
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2007
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2008
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2009
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2010
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2011
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2012
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Trustmark
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100.00 | 89.17 | 97.72 | 112.35 | 114.53 | 110.10 | ||||||||||||||||||
Morningstar Banks - Regional - US
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100.00 | 67.94 | 64.07 | 70.97 | 56.83 | 76.76 | ||||||||||||||||||
NASDAQ
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100.00 | 59.98 | 87.15 | 102.86 | 102.04 | 120.15 |
Years Ended December 31,
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2012
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2011
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2010
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2009
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2008
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|||||||||||||||
Consolidated Statements of Income
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||||||||||||||||||||
Total interest income
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$ | 371,659 | $ | 391,979 | $ | 408,218 | $ | 442,062 | $ | 483,279 | ||||||||||
Total interest expense
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30,669 | 43,036 | 56,195 | 87,853 | 164,119 | |||||||||||||||
Net interest income
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340,990 | 348,943 | 352,023 | 354,209 | 319,160 | |||||||||||||||
Provision for loan losses, LHFI
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6,766 | 29,704 | 49,546 | 77,112 | 76,412 | |||||||||||||||
Provision for loan losses, acquired loans
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5,528 | 624 | - | - | - | |||||||||||||||
Noninterest income
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175,189 | 159,854 | 165,927 | 168,242 | 177,258 | |||||||||||||||
Noninterest expense
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344,502 | 329,850 | 325,649 | 308,259 | 283,719 | |||||||||||||||
Income before income taxes
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159,383 | 148,619 | 142,755 | 137,080 | 136,287 | |||||||||||||||
Income taxes
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42,100 | 41,778 | 42,119 | 44,033 | 43,870 | |||||||||||||||
Net Income
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117,283 | 106,841 | 100,636 | 93,047 | 92,417 | |||||||||||||||
Preferred stock dividends/discount accretion
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- | - | - | 19,998 | 1,353 | |||||||||||||||
Net Income Available to Common Shareholders
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$ | 117,283 | $ | 106,841 | $ | 100,636 | $ | 73,049 | $ | 91,064 | ||||||||||
Common Share Data
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||||||||||||||||||||
Basic earnings per share
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$ | 1.81 | $ | 1.67 | $ | 1.58 | $ | 1.26 | $ | 1.59 | ||||||||||
Diluted earnings per share
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1.81 | 1.66 | 1.57 | 1.26 | 1.59 | |||||||||||||||
Cash dividends per share
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0.92 | 0.92 | 0.92 | 0.92 | 0.92 | |||||||||||||||
Performance Ratios
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||||||||||||||||||||
Return on average common equity
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9.30 | % | 8.95 | % | 8.79 | % | 7.22 | % | 9.62 | % | ||||||||||
Return on average tangible common equity
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12.55 | % | 12.25 | % | 12.31 | % | 10.80 | % | 14.88 | % | ||||||||||
Return on average total equity
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9.30 | % | 8.95 | % | 8.79 | % | 7.72 | % | 9.53 | % | ||||||||||
Return on average assets
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1.20 | % | 1.11 | % | 1.08 | % | 0.98 | % | 1.01 | % | ||||||||||
Net interest margin (fully taxable equivalent)
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4.09 | % | 4.26 | % | 4.41 | % | 4.25 | % | 4.01 | % | ||||||||||
Credit Quality Ratios
(1)
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||||||||||||||||||||
Net charge-offs/average loans
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0.30 | % | 0.56 | % | 0.95 | % | 1.01 | % | 0.87 | % | ||||||||||
Provision for loan losses/average loans
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0.11 | % | 0.49 | % | 0.79 | % | 1.14 | % | 1.09 | % | ||||||||||
Nonperforming loans/total loans (incl LHFS*)
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1.41 | % | 1.82 | % | 2.30 | % | 2.16 | % | 1.64 | % | ||||||||||
Nonperforming assets/total loans
(incl LHFS*) plus ORE**
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2.71 | % | 3.08 | % | 3.64 | % | 3.48 | % | 2.18 | % | ||||||||||
Allowance for loan losses/total loans (excl LHFS*)
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1.41 | % | 1.53 | % | 1.54 | % | 1.64 | % | 1.41 | % |
December 31,
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2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Consolidated Balance Sheets
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||||||||||||||||||||
Total assets
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$ | 9,828,667 | $ | 9,727,007 | $ | 9,553,902 | $ | 9,526,018 | $ | 9,790,909 | ||||||||||
Securities
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2,699,933 | 2,526,698 | 2,318,096 | 1,917,380 | 1,802,470 | |||||||||||||||
Loans held for investment and acquired loans (incl LHFS*)
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5,984,304 | 6,150,841 | 6,213,286 | 6,546,022 | 6,960,668 | |||||||||||||||
Deposits
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7,896,517 | 7,566,363 | 7,044,567 | 7,188,465 | 6,823,870 | |||||||||||||||
Common shareholders' equity
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1,287,369 | 1,215,037 | 1,149,484 | 1,110,060 | 973,340 | |||||||||||||||
Preferred shareholder equity
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- | - | - | - | 205,126 | |||||||||||||||
Common Stock Performance
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||||||||||||||||||||
Market value - close
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$ | 22.46 | $ | 24.29 | $ | 24.84 | $ | 22.54 | $ | 21.59 | ||||||||||
Common book value
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19.86 | 18.94 | 17.98 | 17.43 | 16.98 | |||||||||||||||
Tangible common book value
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15.10 | 14.18 | 13.17 | 12.55 | 11.49 | |||||||||||||||
Capital Ratios
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||||||||||||||||||||
Total equity/total assets
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13.10 | % | 12.49 | % | 12.03 | % | 11.65 | % | 12.04 | % | ||||||||||
Common equity/total assets
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13.10 | % | 12.49 | % | 12.03 | % | 11.65 | % | 9.94 | % | ||||||||||
Tangible equity/tangible assets
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10.28 | % | 9.66 | % | 9.11 | % | 8.67 | % | 9.11 | % | ||||||||||
Tangible common equity/tangible assets
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10.28 | % | 9.66 | % | 9.11 | % | 8.67 | % | 6.95 | % | ||||||||||
Tangible common equity/risk-weighted assets
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14.56 | % | 13.83 | % | 12.62 | % | 11.55 | % | 9.03 | % | ||||||||||
Tier 1 leverage ratio
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10.97 | % | 10.43 | % | 10.14 | % | 9.74 | % | 10.42 | % | ||||||||||
Tier 1 common risk-based capital ratio
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14.63 | % | 13.90 | % | 12.87 | % | 11.63 | % | 9.27 | % | ||||||||||
Tier 1 risk-based capital ratio
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15.53 | % | 14.81 | % | 13.77 | % | 12.61 | % | 13.01 | % | ||||||||||
Total risk-basead capital ratio
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17.22 | % | 16.67 | % | 15.77 | % | 14.58 | % | 14.95 | % |
2012
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1Q | 2Q | 3Q | 4Q | ||||||||||||
Interest income
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$ | 95,882 | $ | 94,414 | $ | 92,497 | $ | 88,866 | ||||||||
Interest expense
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8,938 | 7,966 | 7,218 | 6,547 | ||||||||||||
Net interest income
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86,944 | 86,448 | 85,279 | 82,319 | ||||||||||||
Provision for loan losses, LHFI
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3,293 | 650 | 3,358 | (535 | ) | |||||||||||
Provision for loan losses, acquired loans
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(194 | ) | 1,672 | 2,105 | 1,945 | |||||||||||
Noninterest income
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43,785 | 43,760 | 44,865 | 42,779 | ||||||||||||
Noninterest expense
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85,774 | 87,959 | 83,460 | 87,309 | ||||||||||||
Income before income taxes
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41,856 | 39,927 | 41,221 | 36,379 | ||||||||||||
Income taxes
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11,536 | 10,578 | 11,317 | 8,669 | ||||||||||||
Net income available to common shareholders
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$ | 30,320 | $ | 29,349 | $ | 29,904 | $ | 27,710 | ||||||||
Earnings per common share
|
||||||||||||||||
Basic
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$ | 0.47 | $ | 0.45 | $ | 0.46 | $ | 0.43 | ||||||||
Diluted
|
0.47 | 0.45 | 0.46 | 0.43 | ||||||||||||
2011
|
1Q | 2Q | 3Q | 4Q | ||||||||||||
Interest income
|
$ | 97,985 | $ | 99,402 | $ | 96,193 | $ | 98,399 | ||||||||
Interest expense
|
11,610 | 11,572 | 10,513 | 9,341 | ||||||||||||
Net interest income
|
86,375 | 87,830 | 85,680 | 89,058 | ||||||||||||
Provision for loan losses, LHFI
|
7,537 | 8,116 | 7,978 | 6,073 | ||||||||||||
Provision for loan losses, acquired loans
|
- | - | - | 624 | ||||||||||||
Noninterest income
|
36,371 | 46,432 | 44,272 | 32,779 | ||||||||||||
Noninterest expense
|
80,018 | 81,348 | 85,481 | 83,003 | ||||||||||||
Income before income taxes
|
35,191 | 44,798 | 36,493 | 32,137 | ||||||||||||
Income taxes
|
11,178 | 13,196 | 9,525 | 7,879 | ||||||||||||
Net income available to common shareholders
|
$ | 24,013 | $ | 31,602 | $ | 26,968 | $ | 24,258 | ||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$ | 0.38 | $ | 0.49 | $ | 0.42 | $ | 0.38 | ||||||||
Diluted
|
0.37 | 0.49 | 0.42 | 0.38 |
|
·
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Population and Characteristics of Associates.
Pension cost is directly related to the number of associates covered by the plan and characteristics such as salary, age, years of service and benefit terms. In an effort to control expenses, the Board voted to freeze plan benefits effective May 15, 2009. Associates will not earn additional benefits, except for interest as required by the Internal Revenue Service (IRS) regulations, after the effective date. Associates will retain their previously earned pension benefits.
At December 31, 2012, the pension plan census totaled 2,588 associates.
|
|
·
|
Discount Rate
.
The discount rate utilized in determining the present value of the future benefit obligation is currently 3.50% (as compared to 4.00% at December 31, 2011). The discount rate for each plan is determined by matching the expected cash flows of each plan to a yield curve based on long term, high quality fixed income debt instruments available as of the measurement date (December 31, 2012). The discount rate is reset annually on the measurement date to reflect current economic conditions. If Trustmark assumes a 1.00% increase or decrease in the discount rate for Trustmark’s defined benefit plans and kept all other assumptions constant, the benefit cost associated with these plans would decrease or increase by approximately $888 thousand and $1.0 million, respectively
.
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|
·
|
Expected Long-Term Rate of Return on Plan Assets. Based on historical experience and market projection of the target asset allocation set forth in the investment policy for the Capital Accumulation Plan, the current pre-tax expected rate of return on the plan assets used in 2012 and 2011 was 8.0%. This expected rate of return is dependent upon the asset allocation decisions made with respect to plan assets. Annual differences, if any, between expected and actual return are included in the unrecognized net actuarial gain or loss amount. Trustmark generally amortizes any cumulative unrecognized net actuarial gain or loss in excess of 10% of the greater of the projected benefit obligation or the fair value of the plan assets. If Trustmark assumes a 1.00% increase or decrease in the expected long-term rate of return for the Capital Accumulation Plan, holding all other actuarial assumptions constant, the pension cost would decrease or increase by approximately $740 thousand.
|
|
·
|
Recognition of Actual Asset Returns. Trustmark utilizes the provision of FASB ASC Topic 715, “Compensation – Retirement Benefits,” which allow for the use of asset values that smoothes investment gains and losses over a period of up to five years. This could partially mitigate the impact of short-term gains or losses on reported net income.
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|
·
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Other Actuarial Assumptions. To estimate the projected benefit obligation, actuarial assumptions are required to be made by Management, including mortality rate, retirement rate, disability rate and the rate of compensation increases. These factors do not change significantly over time, so the range of assumptions and their impact on net periodic pension expense is generally limited.
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Years Ended December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
Diluted EPS
|
Amount
|
Diluted EPS
|
Amount
|
Diluted EPS
|
|||||||||||||||||||
Net Income available to common shareholders (GAAP)
|
$ | 117,283 | $ | 1.809 | $ | 106,841 | $ | 1.663 | $ | 100,636 | $ | 1.571 | ||||||||||||
Significant non-routine transactions (net of taxes):
|
||||||||||||||||||||||||
Bargain purchase gain on acquisition
|
(2,245 | ) | (0.035 | ) | (4,604 | ) | (0.072 | ) | - | - | ||||||||||||||
Non-routine transaction expenses on acquisition
|
1,599 | 0.025 | - | - | - | - | ||||||||||||||||||
Acquisition termination fee, net of expenses
|
- | - | - | - | (811 | ) | (0.013 | ) | ||||||||||||||||
(646 | ) | (0.010 | ) | (4,604 | ) | (0.072 | ) | (811 | ) | (0.013 | ) | |||||||||||||
Net Income available to common shareholders adjusted
for significant non-routine transactions (Non-GAAP)
|
$ | 116,637 | $ | 1.799 | $ | 102,237 | $ | 1.591 | $ | 99,825 | $ | 1.558 |
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||
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
|
$ | 7,552 | $ | 26 | 0.34 | % | $ | 7,871 | $ | 30 | 0.38 | % | $ | 9,274 | $ | 36 | 0.39 | % | ||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
2,386,552 | 65,390 | 2.74 | % | 2,146,773 | 72,614 | 3.38 | % | 1,643,995 | 69,750 | 4.24 | % | ||||||||||||||||||||||||
Nontaxable
|
166,790 | 7,125 | 4.27 | % | 157,879 | 6,922 | 4.38 | % | 117,116 | 5,796 | 4.95 | % | ||||||||||||||||||||||||
Securities held to maturity:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
29,551 | 1,560 | 5.28 | % | 66,164 | 3,229 | 4.88 | % | 151,361 | 7,328 | 4.84 | % | ||||||||||||||||||||||||
Nontaxable
|
19,188 | 1,218 | 6.35 | % | 24,891 | 1,609 | 6.46 | % | 39,787 | 2,784 | 7.00 | % | ||||||||||||||||||||||||
Loans (including acquired loans and LHFS)
|
6,057,423 | 309,395 | 5.11 | % | 6,093,804 | 320,804 | 5.26 | % | 6,285,443 | 334,527 | 5.32 | % | ||||||||||||||||||||||||
Other earning assets
|
31,669 | 1,342 | 4.24 | % | 36,719 | 1,321 | 3.60 | % | 39,954 | 1,409 | 3.53 | % | ||||||||||||||||||||||||
Total interest-earning assets
|
8,698,725 | 386,056 | 4.44 | % | 8,534,101 | 406,529 | 4.76 | % | 8,286,930 | 421,630 | 5.09 | % | ||||||||||||||||||||||||
Cash and due from banks
|
244,952 | 219,058 | 211,632 | |||||||||||||||||||||||||||||||||
Other assets
|
949,328 | 922,905 | 895,764 | |||||||||||||||||||||||||||||||||
Allowance for loan losses
|
(89,954 | ) | (92,621 | ) | (102,499 | ) | ||||||||||||||||||||||||||||||
Total Assets
|
$ | 9,803,051 | $ | 9,583,443 | $ | 9,291,827 | ||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits
|
$ | 1,542,601 | 3,975 | 0.26 | % | $ | 1,528,963 | 7,077 | 0.46 | % | $ | 1,322,382 | 8,621 | 0.65 | % | |||||||||||||||||||||
Savings deposits
|
2,357,424 | 6,004 | 0.25 | % | 2,131,057 | 8,144 | 0.38 | % | 1,925,159 | 8,479 | 0.44 | % | ||||||||||||||||||||||||
Time deposits
|
1,952,948 | 14,625 | 0.75 | % | 2,103,404 | 21,073 | 1.00 | % | 2,266,606 | 31,557 | 1.39 | % | ||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements
|
370,283 | 588 | 0.16 | % | 507,925 | 965 | 0.19 | % | 580,427 | 1,183 | 0.20 | % | ||||||||||||||||||||||||
Short-term borrowings
|
83,042 | 1,208 | 1.45 | % | 142,984 | 1,605 | 1.12 | % | 209,550 | 1,798 | 0.86 | % | ||||||||||||||||||||||||
Long-term FHLB advances
|
- | - | 0.00 | % | 1,240 | 7 | 0.56 | % | 22,441 | 133 | 0.59 | % | ||||||||||||||||||||||||
Subordinated notes
|
49,854 | 2,894 | 5.80 | % | 49,821 | 2,894 | 5.81 | % | 49,789 | 2,894 | 5.81 | % | ||||||||||||||||||||||||
Junior subordinated debt securities
|
61,856 | 1,375 | 2.22 | % | 61,856 | 1,271 | 2.05 | % | 68,703 | 1,530 | 2.23 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities
|
6,418,008 | 30,669 | 0.48 | % | 6,527,250 | 43,036 | 0.66 | % | 6,445,057 | 56,195 | 0.87 | % | ||||||||||||||||||||||||
Noninterest-bearing demand deposits
|
2,006,230 | 1,761,946 | 1,602,187 | |||||||||||||||||||||||||||||||||
Other liabilities
|
117,196 | 99,974 | 100,102 | |||||||||||||||||||||||||||||||||
Shareholders' equity
|
1,261,617 | 1,194,273 | 1,144,481 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$ | 9,803,051 | $ | 9,583,443 | $ | 9,291,827 | ||||||||||||||||||||||||||||||
Net Interest Margin
|
355,387 | 4.09 | % | 363,493 | 4.26 | % | 365,435 | 4.41 | % | |||||||||||||||||||||||||||
Less tax equivalent adjustments:
|
||||||||||||||||||||||||||||||||||||
Investments
|
2,920 | 2,986 | 3,003 | |||||||||||||||||||||||||||||||||
Loans
|
11,477 | 11,564 | 10,409 | |||||||||||||||||||||||||||||||||
Net Interest Margin per Income Statements
|
$ | 340,990 | $ | 348,943 | $ | 352,023 |
Volume/Rate Analysis Table
|
2012 Compared to 2011
|
2011 Compared to 2010
|
||||||||||||||||||||||
($ 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
|
$ | (1 | ) | $ | (3 | ) | $ | (4 | ) | $ | (5 | ) | $ | (1 | ) | $ | (6 | ) | ||||||
Securities available for sale:
|
||||||||||||||||||||||||
Taxable
|
7,515 | (14,739 | ) | (7,224 | ) | 18,723 | (15,859 | ) | 2,864 | |||||||||||||||
Nontaxable
|
381 | (178 | ) | 203 | 1,850 | (724 | ) | 1,126 | ||||||||||||||||
Securities held to maturity:
|
||||||||||||||||||||||||
Taxable
|
(1,915 | ) | 246 | (1,669 | ) | (4,159 | ) | 60 | (4,099 | ) | ||||||||||||||
Nontaxable
|
(364 | ) | (27 | ) | (391 | ) | (974 | ) | (201 | ) | (1,175 | ) | ||||||||||||
Loans, net of unearned income (includes
acquired loans and LHFS)
|
(1,975 | ) | (9,434 | ) | (11,409 | ) | (10,018 | ) | (3,705 | ) | (13,723 | ) | ||||||||||||
Other earning assets
|
(196 | ) | 217 | 21 | (116 | ) | 28 | (88 | ) | |||||||||||||||
Total interest-earning assets
|
3,445 | (23,918 | ) | (20,473 | ) | 5,301 | (20,402 | ) | (15,101 | ) | ||||||||||||||
Interest paid on:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
61 | (3,163 | ) | (3,102 | ) | 1,213 | (2,757 | ) | (1,544 | ) | ||||||||||||||
Savings deposits
|
806 | (2,946 | ) | (2,140 | ) | 868 | (1,203 | ) | (335 | ) | ||||||||||||||
Time deposits
|
(1,435 | ) | (5,013 | ) | (6,448 | ) | (2,141 | ) | (8,343 | ) | (10,484 | ) | ||||||||||||
Federal funds purchased and securities sold under repurchase agreements
|
(239 | ) | (138 | ) | (377 | ) | (156 | ) | (62 | ) | (218 | ) | ||||||||||||
Short-term borrowings
|
(787 | ) | 390 | (397 | ) | (657 | ) | 464 | (193 | ) | ||||||||||||||
Long-term FHLB advances
|
(3 | ) | (4 | ) | (7 | ) | (119 | ) | (7 | ) | (126 | ) | ||||||||||||
Subordinated notes
|
3 | (3 | ) | - | - | - | - | |||||||||||||||||
Junior subordinated debt securities
|
- | 104 | 104 | (143 | ) | (116 | ) | (259 | ) | |||||||||||||||
Total interest-bearing liabilities
|
(1,594 | ) | (10,773 | ) | (12,367 | ) | (1,135 | ) | (12,024 | ) | (13,159 | ) | ||||||||||||
Change in net interest income on a tax equivalent basis
|
$ | 5,039 | $ | (13,145 | ) | $ | (8,106 | ) | $ | 6,436 | $ | (8,378 | ) | $ | (1,942 | ) |
Provision for Loan Losses, LHFI
|
||||||||||||
($ in thousands)
|
Years Ended December 31,
|
|||||||||||
2012
|
2011
|
2010
|
||||||||||
Florida
|
$ | (730 | ) | $ | 16,500 | $ | 19,926 | |||||
Mississippi
(1)
|
7,790 | 9,917 | 14,249 | |||||||||
Tennessee
(2)
|
460 | 786 | 5,612 | |||||||||
Texas
|
(754 | ) | 2,501 | 9,759 | ||||||||
Total provision for loan losses, LHFI
|
$ | 6,766 | $ | 29,704 | $ | 49,546 |
Noninterest Income
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
% Change
|
Amount
|
% Change
|
Amount
|
% Change
|
|||||||||||||||||||
Service charges on deposit accounts
|
$ | 50,351 | -2.6 | % | $ | 51,707 | -6.3 | % | $ | 55,183 | 2.0 | % | ||||||||||||
Mortgage banking, net
|
40,960 | 52.8 | % | 26,812 | -8.6 | % | 29,345 | 1.6 | % | |||||||||||||||
Bank card and other fees
|
30,445 | 10.8 | % | 27,474 | 9.8 | % | 25,014 | 8.6 | % | |||||||||||||||
Insurance commissions
|
28,205 | 4.6 | % | 26,966 | -2.6 | % | 27,691 | -4.8 | % | |||||||||||||||
Wealth management
|
23,056 | 0.4 | % | 22,962 | 5.0 | % | 21,872 | -0.9 | % | |||||||||||||||
Other, net
|
1,113 | -71.1 | % | 3,853 | -14.2 | % | 4,493 | -20.0 | % | |||||||||||||||
Total Noninterest Income before securities gains, net
|
174,130 | 9.0 | % | 159,774 | -2.3 | % | 163,598 | 0.5 | % | |||||||||||||||
Securities gains, net
|
1,059 | n/m | 80 | -96.6 | % | 2,329 | -57.4 | % | ||||||||||||||||
Total Noninterest Income
|
$ | 175,189 | 9.6 | % | $ | 159,854 | -3.7 | % | $ | 165,927 | -1.4 | % |
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
% Change
|
Amount
|
% Change
|
Amount
|
% Change
|
|||||||||||||||||||
Mortgage servicing income, net
|
$ | 16,202 | 9.5 | % | $ | 14,790 | 6.2 | % | $ | 13,927 | -12.3 | % | ||||||||||||
Change in fair value-MSR from runoff
|
(9,808 | ) | -42.0 | % | (6,907 | ) | 5.4 | % | (7,305 | ) | 14.7 | % | ||||||||||||
Gain on sales of loans, net
|
33,919 | n/m | 11,952 | -22.0 | % | 15,317 | -26.2 | % | ||||||||||||||||
Other, net
|
4,022 | 58.2 | % | 2,542 | n/m | 94 | -88.6 | % | ||||||||||||||||
Mortgage banking income before hedge ineffectiveness
|
44,335 | 98.1 | % | 22,377 | 1.6 | % | 22,033 | -23.7 | % | |||||||||||||||
Change in fair value-MSR from market changes
|
(9,378 | ) | 38.0 | % | (15,130 | ) | -69.2 | % | (8,943 | ) | n/m | |||||||||||||
Change in fair value of derivatives
|
6,003 | -69.3 | % | 19,565 | 20.4 | % | 16,255 | n/m | ||||||||||||||||
Net (negative) positive hedge ineffectiveness
|
(3,375 | ) | n/m | 4,435 | -39.3 | % | 7,312 | n/m | ||||||||||||||||
Mortgage banking, net
|
$ | 40,960 | 52.8 | % | $ | 26,812 | -8.6 | % | $ | 29,345 | 1.6 | % |
Other Income, Net
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
% Change
|
Amount
|
% Change
|
Amount
|
% Change
|
|||||||||||||||||||
Partnership amortization for tax credit purposes
|
$ | (8,417 | ) | 32.2 | % | $ | (6,366 | ) | 41.3 | % | $ | (4,504 | ) | n/m | ||||||||||
Bargain purchase gain on acquisition
|
3,635 | -51.2 | % | 7,456 | n/m | - | n/m | |||||||||||||||||
Decrease in FDIC indemnification asset
|
(3,722 | ) | -10.5 | % | (4,157 | ) | n/m | - | n/m | |||||||||||||||
Cadence termination fee
|
- | 0.0 | % | - | n/m | 2,000 | n/m | |||||||||||||||||
Other miscellaneous income
|
9,617 | 39.0 | % | 6,920 | -1.1 | % | 6,997 | 2.8 | % | |||||||||||||||
Total other, net
|
$ | 1,113 | -71.1 | % | $ | 3,853 | -14.2 | % | $ | 4,493 | -20.0 | % |
Noninterest Expense
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
% Change
|
Amount
|
% Change
|
Amount
|
% Change
|
|||||||||||||||||||
Salaries and employee benefits
|
$ | 190,519 | 6.7 | % | $ | 178,556 | 2.3 | % | $ | 174,582 | 3.1 | % | ||||||||||||
Services and fees
|
46,751 | 6.6 | % | 43,858 | 4.6 | % | 41,949 | 4.1 | % | |||||||||||||||
Net occupancy-premises
|
20,267 | 0.1 | % | 20,254 | 2.3 | % | 19,808 | -1.2 | % | |||||||||||||||
Equipment expense
|
20,478 | 1.5 | % | 20,177 | 17.8 | % | 17,135 | 4.1 | % | |||||||||||||||
ORE/Foreclosure expense:
|
||||||||||||||||||||||||
Write-downs
|
6,874 | -50.4 | % | 13,856 | -19.1 | % | 17,127 | n/m | ||||||||||||||||
Carrying costs
|
4,291 | 76.1 | % | 2,437 | -66.4 | % | 7,250 | 34.9 | % | |||||||||||||||
Total ORE/Foreclosure expense
|
11,165 | -31.5 | % | 16,293 | -33.2 | % | 24,377 | 90.2 | % | |||||||||||||||
FDIC assessment expense
|
6,502 | -18.6 | % | 7,984 | -34.3 | % | 12,161 | -23.1 | % | |||||||||||||||
Other expense
|
48,820 | 14.3 | % | 42,728 | 19.9 | % | 35,637 | 6.1 | % | |||||||||||||||
Total noninterest expense
|
$ | 344,502 | 4.4 | % | $ | 329,850 | 1.3 | % | $ | 325,649 | 5.6 | % |
Other Expense
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
% Change
|
Amount
|
% Change
|
Amount
|
% Change
|
|||||||||||||||||||
Loan expense
|
$ | 20,248 | 11.1 | % | $ | 18,229 | 50.4 | % | $ | 12,118 | 32.1 | % | ||||||||||||
Non-routine transaction expenses on acquisition
|
1,917 | 100.0 | % | - | n/m | - | n/m | |||||||||||||||||
Amortization of intangibles
|
3,788 | 21.0 | % | 3,131 | -11.1 | % | 3,520 | -12.0 | % | |||||||||||||||
Other miscellaneous expense
|
22,867 | 7.0 | % | 21,368 | 6.8 | % | 19,999 | -2.0 | % | |||||||||||||||
Total other expense
|
$ | 48,820 | 14.3 | % | $ | 42,728 | 19.9 | % | $ | 35,637 | 6.1 | % |
2012
|
2011
|
2010
|
||||||||||
General Banking
|
$ | 108,975 | $ | 100,568 | $ | 93,025 | ||||||
Wealth Management
|
3,823 | 2,810 | 3,975 | |||||||||
Insurance
|
4,485 | 3,463 | 3,636 | |||||||||
Consolidated Net Income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 |
Amortized Cost of Securities by Type
|
||||||||||||
($ in thousands)
|
December 31,
|
|||||||||||
2012
|
2011
|
2010
|
||||||||||
Securities available for sale
|
||||||||||||
U.S. Government agency obligations
|
||||||||||||
Issued by U.S. Government agencies
|
$ | 10 | $ | 3 | $ | 12 | ||||||
Issued by U.S. Government sponsored agencies
|
105,396 | 64,573 | 124,093 | |||||||||
Obligations of states and political subdivisions
|
202,877 | 190,868 | 159,418 | |||||||||
Mortgage-backed securities
|
||||||||||||
Residential mortgage pass-through securities
|
||||||||||||
Guaranteed by GNMA
|
18,981 | 11,500 | 11,719 | |||||||||
Issued by FNMA and FHLMC
|
201,493 | 340,839 | 432,162 | |||||||||
Other residential mortgage-backed securities
|
||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
1,436,812 | 1,570,782 | 1,361,339 | |||||||||
Commercial mortgage-backed securities
|
||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
380,514 | 216,698 | 54,331 | |||||||||
Asset-backed securities
|
238,893 | - | - | |||||||||
Total securities available for sale
|
$ | 2,584,976 | $ | 2,395,263 | $ | 2,143,074 | ||||||
Securities held to maturity
|
||||||||||||
Obligations of states and political subdivisions
|
$ | 36,206 | $ | 42,619 | $ | 53,246 | ||||||
Mortgage-backed securities
|
||||||||||||
Residential mortgage pass-through securities
|
||||||||||||
Guaranteed by GNMA
|
3,245 | 4,538 | 6,058 | |||||||||
Issued by FNMA and FHLMC
|
572 | 588 | 763 | |||||||||
Other residential mortgage-backed securities
|
||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
- | 7,749 | 78,526 | |||||||||
Commercial mortgage-backed securities
|
||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
2,165 | 2,211 | 2,254 | |||||||||
Total securities held to maturity
|
$ | 42,188 | $ | 57,705 | $ | 140,847 |
Maturity/Yield Analysis Table
|
Maturing
|
|||||||||||||||||||||||||||||||||||
($ in thousands)
|
After One,
|
After Five,
|
||||||||||||||||||||||||||||||||||
Within
|
But Within
|
But Within
|
After
|
|||||||||||||||||||||||||||||||||
One Year
|
Yield
|
Five Years
|
Yield
|
Ten Years
|
Yield
|
Ten Years
|
Yield
|
Total
|
||||||||||||||||||||||||||||
Securities available for sale
|
||||||||||||||||||||||||||||||||||||
U.S. Government agency obligations
|
||||||||||||||||||||||||||||||||||||
Issued by U.S. Government agencies
|
$ | 2 | 3.09 | % | $ | 8 | 2.61 | % | $ | - | - | $ | - | - | $ | 10 | ||||||||||||||||||||
Issued by U.S. Government sponsored agencies
|
- | - | - | - | 105,396 | 2.04 | % | - | - | 105,396 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions
|
12,048 | 3.01 | % | 82,132 | 3.71 | % | 103,843 | 4.42 | % | 4,854 | 4.79 | % | 202,877 | |||||||||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||||||||||||||
Residential mortgage pass-through securities
|
||||||||||||||||||||||||||||||||||||
Guaranteed by GNMA
|
- | - | 6 | 6.44 | % | 691 | 4.20 | % | 18,284 | 4.00 | % | 18,981 | ||||||||||||||||||||||||
Issued by FNMA and FHLMC
|
- | - | 152 | 8.14 | % | 271 | 3.83 | % | 201,070 | 3.20 | % | 201,493 | ||||||||||||||||||||||||
Other residential mortgage-backed securities
|
||||||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
29 | 2.17 | % | 5,306 | 4.63 | % | 40,635 | 2.35 | % | 1,390,842 | 2.81 | % | 1,436,812 | |||||||||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
- | - | 61,823 | 2.89 | % | 241,866 | 2.70 | % | 76,825 | 2.52 | % | 380,514 | ||||||||||||||||||||||||
Asset-backed securities
|
- | - | - | - | 197,830 | 2.25 | % | 41,063 | 1.63 | % | 238,893 | |||||||||||||||||||||||||
Total securities available for sale
|
$ | 12,079 | 3.01 | % | $ | 149,427 | 3.41 | % | $ | 690,532 | 2.71 | % | $ | 1,732,938 | 2.83 | % | $ | 2,584,976 | ||||||||||||||||||
Securities held to maturity
|
||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$ | 1,946 | 6.13 | % | $ | 16,507 | 6.95 | % | $ | 16,526 | 8.04 | % | $ | 1,227 | 7.88 | % | $ | 36,206 | ||||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||||||||||||||
Residential mortgage pass-through securities
|
||||||||||||||||||||||||||||||||||||
Guaranteed by GNMA
|
- | - | - | - | - | - | 3,245 | 4.60 | % | 3,245 | ||||||||||||||||||||||||||
Issued by FNMA and FHLMC
|
- | - | - | - | - | - | 572 | 4.31 | % | 572 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
- | - | - | - | - | - | 2,165 | 4.77 | % | 2,165 | ||||||||||||||||||||||||||
Total securities held to maturity
|
$ | 1,946 | 6.13 | % | $ | 16,507 | 6.95 | % | $ | 16,526 | 8.04 | % | $ | 7,209 | 5.19 | % | $ | 42,188 |
Securities Portfolio by Credit Rating
(1)
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||
Amortized Cost
|
Estimated Fair Value
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Securities Available for Sale
|
||||||||||||||||
Aaa
|
$ | 2,337,955 | 90.4 | % | $ | 2,397,207 | 90.2 | % | ||||||||
Aa1 to Aa3
|
142,376 | 5.5 | % | 150,894 | 5.7 | % | ||||||||||
A1 to A3
|
11,568 | 0.4 | % | 12,382 | 0.5 | % | ||||||||||
Baa1 to Baa3
|
- | 0.0 | % | - | 0.0 | % | ||||||||||
Not Rated
(2)
|
93,077 | 3.7 | % | 97,262 | 3.7 | % | ||||||||||
Total securities available for sale
|
$ | 2,584,976 | 100.0 | % | $ | 2,657,745 | 100.0 | % | ||||||||
Securities Held to Maturity
|
||||||||||||||||
Aaa
|
$ | 5,982 | 14.2 | % | $ | 6,498 | 13.9 | % | ||||||||
Aa1 to Aa3
|
21,843 | 51.8 | % | 25,391 | 54.2 | % | ||||||||||
A1 to A3
|
1,224 | 2.9 | % | 1,274 | 2.7 | % | ||||||||||
Baa1 to Baa3
|
331 | 0.8 | % | 357 | 0.8 | % | ||||||||||
Not Rated
(2)
|
12,808 | 30.3 | % | 13,368 | 28.5 | % | ||||||||||
Total securities held to maturity
|
$ | 42,188 | 100.0 | % | $ | 46,888 | 100.0 | % |
LHFI by Type
|
||||||||||||||||||||
($ in thousands)
|
December 31,
|
|||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||
Construction, land development and other land loans
|
$ | 468,975 | $ | 474,082 | $ | 583,316 | $ | 830,069 | $ | 1,028,788 | ||||||||||
Secured by 1-4 family residential properties
|
1,497,480 | 1,760,930 | 1,732,056 | 1,650,743 | 1,524,061 | |||||||||||||||
Secured by nonfarm, nonresidential properties
|
1,410,264 | 1,425,774 | 1,498,108 | 1,467,307 | 1,422,658 | |||||||||||||||
Other real estate secured
|
189,949 | 204,849 | 231,963 | 197,421 | 186,915 | |||||||||||||||
Commercial and industrial loans
|
1,169,513 | 1,139,365 | 1,068,369 | 1,059,164 | 1,237,987 | |||||||||||||||
Consumer loans
|
171,660 | 243,756 | 402,165 | 606,315 | 895,046 | |||||||||||||||
Other loans
|
684,913 | 608,728 | 544,265 | 508,778 | 426,948 | |||||||||||||||
LHFI
|
$ | 5,592,754 | $ | 5,857,484 | $ | 6,060,242 | $ | 6,319,797 | $ | 6,722,403 |
LHFI Maturities by Category
(1)
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
Maturing
|
||||||||||||||||
One Year
|
||||||||||||||||
Within
|
Through
|
After
|
||||||||||||||
One Year
|
Five
|
Five
|
||||||||||||||
Loan Type
|
or Less
|
Years
|
Years
|
Total
|
||||||||||||
Construction, land development and other land loans
|
$ | 279,709 | $ | 164,653 | $ | 24,613 | $ | 468,975 | ||||||||
Secured by 1-4 family residential properties
|
495,893 | 196,717 | 804,870 | 1,497,480 | ||||||||||||
Other loans secured by real estate
|
511,142 | 892,216 | 196,855 | 1,600,213 | ||||||||||||
Commercial and industrial
|
572,474 | 549,929 | 47,110 | 1,169,513 | ||||||||||||
Consumer loans
|
59,524 | 110,356 | 1,780 | 171,660 | ||||||||||||
Other loans
|
220,461 | 170,732 | 293,720 | 684,913 | ||||||||||||
Total
|
$ | 2,139,203 | $ | 2,084,603 | $ | 1,368,948 | $ | 5,592,754 |
LHFI Maturities by Interest Rate Sensitivity
(1)
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
Maturing
|
||||||||||||||||
One Year
|
||||||||||||||||
Within
|
Through
|
After
|
||||||||||||||
One Year
|
Five
|
Five
|
||||||||||||||
Loan Type
|
or Less
|
Years
|
Years
|
Total
|
||||||||||||
Predetermined interest rates
|
$ | 1,318,284 | $ | 1,154,996 | $ | 1,256,068 | $ | 3,729,348 | ||||||||
Floating interest rates:
|
||||||||||||||||
Loans which are at contractual floor
|
63,774 | 767,404 | 37,846 | 869,024 | ||||||||||||
Loans which are free to float
|
757,145 | 162,203 | 75,034 | 994,382 | ||||||||||||
Total floating interest rates
|
820,919 | 929,607 | 112,880 | 1,863,406 | ||||||||||||
Total
|
$ | 2,139,203 | $ | 2,084,603 | $ | 1,368,948 | $ | 5,592,754 |
|
·
|
Real Estate – Owner Occupied
|
|
·
|
Real Estate – Non-Owner Occupied
|
|
·
|
Working Capital
|
|
·
|
Non-Working Capital
|
|
·
|
Land
|
|
·
|
Lots and Development
|
|
·
|
Political Subdivisions
|
|
·
|
1 to 4 Family
|
|
·
|
Non-1 to 4 Family
|
|
·
|
Residential Mortgage
|
|
·
|
Direct Consumer
|
|
·
|
Auto Finance
|
|
·
|
Junior Lien on 1-4 Family Residential Properties
|
|
·
|
Credit Cards
|
|
·
|
Overdrafts
|
|
·
|
National and regional economic trends and conditions
|
|
·
|
Impact of recent performance trends
|
|
·
|
Experience, ability and effectiveness of management
|
|
·
|
Adherence to Trustmark’s loan policies, procedures and internal controls
|
|
·
|
Collateral, financial and underwriting exception trends
|
|
·
|
Credit concentrations
|
|
·
|
Acquisitions
|
|
·
|
Catastrophe
|
Net Charge-Offs
(1)
|
||||||||||||
($ in thousands)
|
Years Ended December 31,
|
|||||||||||
2012
|
2011
|
2010
|
||||||||||
Florida
|
$ | 5,261 | $ | 18,843 | $ | 28,650 | ||||||
Mississippi
(2)
|
7,602 | 8,355 | 18,963 | |||||||||
Tennessee
(3)
|
1,154 | 2,575 | 6,578 | |||||||||
Texas
|
3,529 | 3,923 | 5,507 | |||||||||
Total net charge-offs
|
$ | 17,546 | $ | 33,696 | $ | 59,698 |
Nonperforming Assets
(1)
|
||||||||||||||||||||
($ in thousands)
|
December 31,
|
|||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
Nonaccrual LHFI
|
||||||||||||||||||||
Florida
|
$ | 19,314 | $ | 23,002 | $ | 53,773 | $ | 74,159 | $ | 75,092 | ||||||||||
Mississippi
(2)
|
38,960 | 46,746 | 39,803 | 31,050 | 18,703 | |||||||||||||||
Tennessee
(3)
|
8,401 | 15,791 | 14,703 | 12,749 | 3,638 | |||||||||||||||
Texas
|
15,688 | 24,919 | 34,644 | 23,204 | 16,605 | |||||||||||||||
Total nonaccrual LHFI
|
82,363 | 110,458 | 142,923 | 141,162 | 114,038 | |||||||||||||||
Other real estate
|
||||||||||||||||||||
Florida
|
18,569 | 29,963 | 32,370 | 45,927 | 21,265 | |||||||||||||||
Mississippi
(2)
|
27,771 | 19,483 | 24,181 | 22,373 | 6,113 | |||||||||||||||
Tennessee
(3)
|
17,589 | 16,879 | 16,407 | 10,105 | 8,862 | |||||||||||||||
Texas
|
14,260 | 12,728 | 13,746 | 11,690 | 2,326 | |||||||||||||||
Total other real estate
|
78,189 | 79,053 | 86,704 | 90,095 | 38,566 | |||||||||||||||
Total nonperforming assets
|
$ | 160,552 | $ | 189,511 | $ | 229,627 | $ | 231,257 | $ | 152,604 | ||||||||||
Nonperforming assets/total loans (including
loans held for sale) and ORE
|
2.71 | % | 3.08 | % | 3.64 | % | 3.48 | % | 2.18 | % | ||||||||||
Loans Past Due 90 days or more
|
||||||||||||||||||||
LHFI
|
$ | 6,378 | $ | 4,230 | $ | 3,608 | $ | 8,901 | $ | 5,139 | ||||||||||
LHFS - Serviced GNMA loans eligible for repurchase
(4)
|
$ | 43,073 | $ | 39,379 | $ | 15,777 | $ | 46,661 | $ | 18,095 |
Nonaccrual LHFI by Loan Type
(1)
|
||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
Construction, land development and other land loans
|
$ | 27,105 | $ | 40,413 | $ | 57,831 | $ | 81,805 | $ | 72,582 | ||||||||||
Secured by 1-4 family residential properties
|
27,114 | 24,348 | 30,313 | 31,464 | 11,699 | |||||||||||||||
Secured by nonfarm, nonresidential properties
|
18,289 | 23,981 | 29,013 | 18,056 | 10,775 | |||||||||||||||
Other loans secured by real estate
|
3,956 | 5,871 | 6,154 | 2,097 | 3,351 | |||||||||||||||
Commercial and industrial
|
4,741 | 14,148 | 16,107 | 6,630 | 14,617 | |||||||||||||||
Consumer loans
|
360 | 825 | 2,112 | 973 | 976 | |||||||||||||||
Other loans
|
798 | 872 | 1,393 | 137 | 38 | |||||||||||||||
Total Nonaccrual LHFI by Type
|
$ | 82,363 | $ | 110,458 | $ | 142,923 | $ | 141,162 | $ | 114,038 |
Other Real Estate by Property Type
(1)
|
||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
Construction, land development and other land properties
|
$ | 46,957 | $ | 53,834 | $ | 61,963 | $ | 60,276 | $ | 28,824 | ||||||||||
1-4 family residential properties
|
8,134 | 10,557 | 13,509 | 11,001 | 8,443 | |||||||||||||||
Nonfarm, nonresidential properties
|
22,760 | 13,883 | 9,820 | 7,285 | 1,220 | |||||||||||||||
Other real estate properties
|
338 | 779 | 1,412 | 11,533 | 79 | |||||||||||||||
Total other real estate
|
$ | 78,189 | $ | 79,053 | $ | 86,704 | $ | 90,095 | $ | 38,566 |
Writedowns of Other Real Estate by Region
(1)
|
||||||||||||
($ in thousands)
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Florida
|
$ | 3,048 | $ | 5,651 | $ | 11,033 | ||||||
Mississippi
(2)
|
2,102 | 6,782 | 4,844 | |||||||||
Tennessee
(3)
|
517 | (67 | ) | 935 | ||||||||
Texas
|
936 | 1,490 | 315 | |||||||||
Total writedowns of other real estate
|
$ | 6,603 | $ | 13,856 | $ | 17,127 |
Acquired Loans
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Covered
|
Noncovered
|
Covered
|
Noncovered
(1)
|
|||||||||||||
Loans secured by real estate:
|
||||||||||||||||
Construction, land development and other land loans
|
$ | 3,924 | $ | 10,056 | $ | 4,209 | $ | - | ||||||||
Secured by 1-4 family residential properties
|
23,990 | 19,404 | 31,874 | 76 | ||||||||||||
Secured by nonfarm, nonresidential properties
|
18,407 | 45,649 | 30,889 | - | ||||||||||||
Other real estate secured
|
3,567 | 669 | 5,126 | - | ||||||||||||
Commercial and industrial loans
|
747 | 3,035 | 2,971 | 69 | ||||||||||||
Consumer loans
|
177 | 2,610 | 290 | 4,146 | ||||||||||||
Other loans
|
1,229 | 100 | 1,445 | 72 | ||||||||||||
Acquired loans
|
52,041 | 81,523 | 76,804 | 4,363 | ||||||||||||
Less allowance for loan losses, acquired loans
|
4,190 | 1,885 | 502 | - | ||||||||||||
Net acquired loans
|
$ | 47,851 | $ | 79,638 | $ | 76,302 | $ | 4,363 |
Acquired Loans Carrying Value
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
Covered
|
Noncovered
(1)
|
|||||||||||||||
Acquired
|
Acquired
|
Acquired
|
Acquired
|
|||||||||||||
Impaired
|
Not ASC 310-30
(2)
|
Impaired
|
Not ASC 310-30
(2)
|
|||||||||||||
Carrying value, net
at January 1, 2011
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Loans acquired
|
93,940 | 3,830 | 9,468 | 176 | ||||||||||||
Accretion to interest income
|
4,347 | 543 | 349 | 4 | ||||||||||||
Payments received, net
(3)
|
(25,764 | ) | (202 | ) | (5,076 | ) | (47 | ) | ||||||||
Other
|
110 | - | (391 | ) | (120 | ) | ||||||||||
Less allowance for loan losses, acquired loans
|
(502 | ) | - | - | - | |||||||||||
Carrying value, net
at December 31, 2011
|
72,131 | 4,171 | 4,350 | 13 | ||||||||||||
Loans acquired
(4)
|
- | - | 91,987 | 5,927 | ||||||||||||
Accretion to interest income
|
8,031 | 367 | 4,138 | 161 | ||||||||||||
Payments received, net
|
(27,496 | ) | (2,107 | ) | (24,330 | ) | 868 | |||||||||
Other
|
(3,085 | ) | 29 | (1,318 | ) | (273 | ) | |||||||||
Less allowance for loan losses, acquired loans
|
(4,190 | ) | - | (1,885 | ) | - | ||||||||||
Carrying value, net at December 31, 2012
|
$ | 45,391 | $ | 2,460 | $ | 72,942 | $ | 6,696 |
(1)
|
Acquired noncovered loans were included in LHFI at December 31, 2011.
|
(2)
|
"Acquired Not ASC 31-30" loans consist of revolving credit agreements that are not in scope for FASB ASC Topic 310-30.
|
(3)
|
Includes $4.3 million for loan recoveries and an adjustment to payments recorded for covered acquired impaired loans, which was reported as "Changes in expected cash flows" at December 31, 2011.
|
(4)
|
Fair value of loans acquired from Bay Bank on March 16, 2012.
|
Covered Other Real Estate by Property Type
|
||||||||
($ in thousands)
|
||||||||
December 31,
|
||||||||
2012
|
2011
|
|||||||
Construction, land development and other land properties
|
$ | 1,284 | $ | 1,304 | ||||
1-4 family residential properties
|
1,306 | 889 | ||||||
Nonfarm, nonresidential properties
|
3,151 | 4,022 | ||||||
Other real estate properties
|
- | 116 | ||||||
Total covered other real estate
|
$ | 5,741 | $ | 6,331 |
Change in Covered Other Real Estate
|
||||||||
($ in thousands)
|
||||||||
December 31,
|
||||||||
2012
|
2011
|
|||||||
Balance at January 1,
|
$ | 6,331 | $ | - | ||||
Covered other real estate acquired
|
- | 7,485 | ||||||
Transfers from covered loans
|
1,424 | 632 | ||||||
FASB ASC 310-30 adjustment for the residual recorded investment
|
(112 | ) | (264 | ) | ||||
Net transfers from covered loans
|
1,312 | 368 | ||||||
Disposals
|
(1,631 | ) | (1,489 | ) | ||||
Writedowns
|
(271 | ) | (33 | ) | ||||
Balance at December 31,
|
$ | 5,741 | $ | 6,331 | ||||
Gain, net on the sale of covered
other real estate included in ORE/Foreclosure expenses
|
$ | 485 | $ | 286 |
FDIC Indemnification Asset
|
||||
($ in thousands)
|
||||
Balance at January 1, 2011
|
$ | - | ||
Additions from acquisition
|
33,333 | |||
Accretion
|
185 | |||
Loss-share payments received from FDIC
|
(986 | ) | ||
Change in expected cash flows
(1)
|
(4,157 | ) | ||
Change in FDIC true-up provision
|
(27 | ) | ||
Balance at December 31, 2011
|
$ | 28,348 | ||
Accretion
|
245 | |||
Transfers to FDIC claims receivable
|
(2,544 | ) | ||
Change in expected cash flows
(1)
|
(3,761 | ) | ||
Change in FDIC true-up provision
|
(514 | ) | ||
Balance at December 31, 2012
|
$ | 21,774 |
Federal funds purchased and securities
sold under repurchase agreements:
|
2012
|
2011
|
2010
|
|||||||||
Amount outstanding at end of period
|
$ | 288,829 | $ | 604,500 | $ | 700,138 | ||||||
Weighted average interest rate at end of period
|
0.10 | % | 0.12 | % | 0.19 | % | ||||||
Maximum amount outstanding at any month end during each period
|
$ | 713,975 | $ | 845,234 | $ | 827,162 | ||||||
Average amount outstanding during each period
|
$ | 370,283 | $ | 507,925 | $ | 580,427 | ||||||
Weighted average interest rate during each period
|
0.16 | % | 0.19 | % | 0.20 | % | ||||||
Short-term borrowings:
|
||||||||||||
Amount outstanding at end of period
|
$ | 86,920 | $ | 87,628 | $ | 425,343 | ||||||
Weighted average interest rate at end of period
|
1.42 | % | 1.77 | % | 0.57 | % | ||||||
Maximum amount outstanding at any month end during each period
|
$ | 93,162 | $ | 308,072 | $ | 425,343 | ||||||
Average amount outstanding during each period
|
$ | 83,042 | $ | 142,984 | $ | 209,550 | ||||||
Weighted average interest rate during each period
|
1.45 | % | 1.12 | % | 0.86 | % |
Contractual Obligations
|
||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Less than
|
One to Three
|
Three to Five
|
After
|
|||||||||||||||||
One Year
|
Years
|
Years
|
Five Years
|
Total
|
||||||||||||||||
Time deposits
|
$ | 1,347,371 | $ | 433,993 | $ | 57,156 | $ | 324 | $ | 1,838,844 | ||||||||||
Securities sold under repurchase agreements
|
156,124 | - | - | - | 156,124 | |||||||||||||||
Subordinated notes
|
- | - | 49,871 | - | 49,871 | |||||||||||||||
Junior subordinated debt securities
|
- | - | - | 61,856 | 61,856 | |||||||||||||||
Operating lease obligations
|
6,482 | 10,176 | 4,329 | 7,275 | 28,262 | |||||||||||||||
Total
|
$ | 1,509,977 | $ | 444,169 | $ | 111,356 | $ | 69,455 | $ | 2,134,957 |
Regulatory Capital Table
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Actual Regulatory Capital
|
Minimum Regulatory Capital Required
|
Minimum Regulatory Provision to be Well-Capitalized
|
||||||||||||||||||||||
At December 31, 2012:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,157,838 | 17.22 | % | $ | 537,861 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,119,438 | 16.85 | % | 531,577 | 8.00 | % | $ | 664,472 | 10.00 | % | ||||||||||||||
Tier 1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,043,865 | 15.53 | % | $ | 268,930 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,007,775 | 15.17 | % | 265,789 | 4.00 | % | $ | 398,683 | 6.00 | % | ||||||||||||||
Tier 1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,043,865 | 10.97 | % | $ | 285,556 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,007,775 | 10.72 | % | 281,984 | 3.00 | % | $ | 469,974 | 5.00 | % | ||||||||||||||
At December 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,096,213 | 16.67 | % | $ | 526,156 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,057,932 | 16.28 | % | 519,709 | 8.00 | % | $ | 649,636 | 10.00 | % | ||||||||||||||
Tier 1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 974,034 | 14.81 | % | $ | 263,078 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
938,122 | 14.44 | % | 259,855 | 4.00 | % | $ | 389,782 | 6.00 | % | ||||||||||||||
Tier 1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 974,034 | 10.43 | % | $ | 280,162 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
938,122 | 10.18 | % | 276,502 | 3.00 | % | $ | 460,837 | 5.00 | % |
Interest Rate Exposure Analysis
|
Estimated Annual % Change
|
|||||||
in Net Interest Income
|
||||||||
2012
|
2011
|
|||||||
Change in Interest Rates
|
||||||||
+200 basis points
|
0.5 | % | -1.8 | % | ||||
+100 basis points
|
-0.1 | % | -0.8 | % | ||||
-100 basis points
|
-4.9 | % | -5.4 | % |
Economic Value - at - Risk
|
Estimated % Change
|
|||||||
in Net Portfolio Value
|
||||||||
2012
|
2011
|
|||||||
Change in Interest Rates
|
||||||||
+200 basis points
|
2.4 | % | 2.4 | % | ||||
+100 basis points
|
2.1 | % | 2.9 | % | ||||
-100 basis points
|
-3.2 | % | -6.5 | % |
Trustmark Corporation and Subsidiaries
|
||||||||
Consolidated Balance Sheets
|
||||||||
($ in thousands except share data)
|
||||||||
December 31,
|
||||||||
2012
|
2011
|
|||||||
Assets
|
||||||||
Cash and due from banks (noninterest-bearing)
|
$ | 231,489 | $ | 202,625 | ||||
Federal funds sold and securities purchased under reverse repurchase agreements
|
7,046 | 9,258 | ||||||
Securities available for sale (at fair value)
|
2,657,745 | 2,468,993 | ||||||
Securities held to maturity (fair value: $46,888-2012; $62,515-2011)
|
42,188 | 57,705 | ||||||
Loans held for sale (LHFS)
|
257,986 | 216,553 | ||||||
Loans held for investment (LHFI)
|
5,592,754 | 5,857,484 | ||||||
Less allowance for loan losses, LHFI
|
78,738 | 89,518 | ||||||
Net LHFI
|
5,514,016 | 5,767,966 | ||||||
Acquired Loans:
|
||||||||
Noncovered loans
|
81,523 | - | ||||||
Covered loans
|
52,041 | 76,804 | ||||||
Allowance for loan losses, acquired loans
|
6,075 | 502 | ||||||
Net acquired loans
|
127,489 | 76,302 | ||||||
Net LHFI and acquired loans
|
5,641,505 | 5,844,268 | ||||||
Premises and equipment, net
|
154,841 | 142,582 | ||||||
Mortgage servicing rights
|
47,341 | 43,274 | ||||||
Goodwill
|
291,104 | 291,104 | ||||||
Identifiable intangible assets
|
17,306 | 14,076 | ||||||
Other real estate, excluding covered other real estate
|
78,189 | 79,053 | ||||||
Covered other real estate
|
5,741 | 6,331 | ||||||
FDIC indemnification asset
|
21,774 | 28,348 | ||||||
Other assets
|
374,412 | 322,837 | ||||||
Total Assets
|
$ | 9,828,667 | $ | 9,727,007 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 2,254,211 | $ | 2,033,442 | ||||
Interest-bearing
|
5,642,306 | 5,532,921 | ||||||
Total deposits
|
7,896,517 | 7,566,363 | ||||||
Federal funds purchased and securities sold under repurchase agreements
|
288,829 | 604,500 | ||||||
Short-term borrowings
|
86,920 | 87,628 | ||||||
Subordinated notes
|
49,871 | 49,839 | ||||||
Junior subordinated debt securities
|
61,856 | 61,856 | ||||||
Other liabilities
|
157,305 | 141,784 | ||||||
Total Liabilities
|
8,541,298 | 8,511,970 | ||||||
Commitments and Contingencies
|
||||||||
Shareholders' Equity
|
||||||||
Common stock, no par value:
|
||||||||
Authorized: 250,000,000 shares
|
||||||||
Issued and outstanding: 64,820,414 shares - 2012;
64,142,498 shares - 2011
|
13,506 | 13,364 | ||||||
Capital surplus
|
285,905 | 266,026 | ||||||
Retained earnings
|
984,563 | 932,526 | ||||||
Accumulated other comprehensive income, net of tax
|
3,395 | 3,121 | ||||||
Total Shareholders' Equity
|
1,287,369 | 1,215,037 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 9,828,667 | $ | 9,727,007 |
Trustmark Corporation and Subsidiaries
|
||||||||||||
Consolidated Statements of Income
|
||||||||||||
($ in thousands except per share data)
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Interest Income
|
||||||||||||
Interest and fees on loans
|
$ | 297,918 | $ | 309,240 | $ | 324,118 | ||||||
Interest on securities:
|
||||||||||||
Taxable
|
66,950 | 75,843 | 77,078 | |||||||||
Tax exempt
|
5,423 | 5,545 | 5,577 | |||||||||
Interest on federal funds sold and securities purchased under reverse repurchase agreements
|
26 | 30 | 36 | |||||||||
Other interest income
|
1,342 | 1,321 | 1,409 | |||||||||
Total Interest Income
|
371,659 | 391,979 | 408,218 | |||||||||
Interest Expense
|
||||||||||||
Interest on deposits
|
24,604 | 36,294 | 48,657 | |||||||||
Interest on federal funds purchased and securities sold under repurchase agreements
|
588 | 965 | 1,183 | |||||||||
Other interest expense
|
5,477 | 5,777 | 6,355 | |||||||||
Total Interest Expense
|
30,669 | 43,036 | 56,195 | |||||||||
Net Interest Income
|
340,990 | 348,943 | 352,023 | |||||||||
Provision for loan losses, LHFI
|
6,766 | 29,704 | 49,546 | |||||||||
Provision for loan losses, acquired loans
|
5,528 | 624 | - | |||||||||
Net Interest Income After Provision for Loan Losses
|
328,696 | 318,615 | 302,477 | |||||||||
Noninterest Income
|
||||||||||||
Service charges on deposit accounts
|
50,351 | 51,707 | 55,183 | |||||||||
Bank card and other fees
|
30,445 | 27,474 | 25,014 | |||||||||
Mortgage banking, net
|
40,960 | 26,812 | 29,345 | |||||||||
Insurance commissions
|
28,205 | 26,966 | 27,691 | |||||||||
Wealth management
|
23,056 | 22,962 | 21,872 | |||||||||
Other, net
|
1,113 | 3,853 | 4,493 | |||||||||
Securities gains, net
|
1,059 | 80 | 2,329 | |||||||||
Total Noninterest Income
|
175,189 | 159,854 | 165,927 | |||||||||
Noninterest Expense
|
||||||||||||
Salaries and employee benefits
|
190,519 | 178,556 | 174,582 | |||||||||
Services and fees
|
46,751 | 43,858 | 41,949 | |||||||||
Equipment expense
|
20,478 | 20,177 | 17,135 | |||||||||
Net occupancy - premises
|
20,267 | 20,254 | 19,808 | |||||||||
ORE/Foreclosure expense
|
11,165 | 16,293 | 24,377 | |||||||||
FDIC assessment expense
|
6,502 | 7,984 | 12,161 | |||||||||
Other expense
|
48,820 | 42,728 | 35,637 | |||||||||
Total Noninterest Expense
|
344,502 | 329,850 | 325,649 | |||||||||
Income Before Income Taxes
|
159,383 | 148,619 | 142,755 | |||||||||
Income taxes
|
42,100 | 41,778 | 42,119 | |||||||||
Net Income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 | ||||||
Earnings Per Common Share
|
||||||||||||
Basic
|
$ | 1.81 | $ | 1.67 | $ | 1.58 | ||||||
Diluted
|
$ | 1.81 | $ | 1.66 | $ | 1.57 |
Trustmark Corporation and Subsidiaries
|
||||||||||||
Consolidated Statements of Comprehensive Income
|
||||||||||||
($ in thousands)
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
|
||||||||||||
Net income per consolidated statements of income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 | ||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||
Unrealized gains (losses) on available for sale securities:
|
||||||||||||
Unrealized holding gains (losses) arising during the period
|
60 | 24,475 | (9,529 | ) | ||||||||
Less: adjustment for net gains realized in net income
|
(654 | ) | (49 | ) | (1,438 | ) | ||||||
Pension and other postretirement benefit plans:
|
||||||||||||
Net change in prior service costs
|
32 | (591 | ) | 76 | ||||||||
Net decrease (increase) in loss arising during the period
|
836 | (9,288 | ) | 1,089 | ||||||||
Other comprehensive income (loss)
|
274 | 14,547 | (9,802 | ) | ||||||||
Comprehensive income
|
$ | 117,557 | $ | 121,388 | $ | 90,834 |
Trustmark Corporation and Subsidiaries
|
||||||||||||||||||||||||
Consolidated Statements of Changes in Shareholders' Equity
|
||||||||||||||||||||||||
($ in thousands except per share data)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||
Common Stock
|
Comprehensive
|
|||||||||||||||||||||||
Shares
|
Capital
|
Retained
|
Income
|
|||||||||||||||||||||
Outstanding
|
Amount
|
Surplus
|
Earnings
|
(Loss)
|
Total
|
|||||||||||||||||||
Balance, January 1, 2010
|
63,673,839 | $ | 13,267 | $ | 244,864 | $ | 853,553 | $ | (1,624 | ) | $ | 1,110,060 | ||||||||||||
Net income per consolidated statements of income
|
- | - | - | 100,636 | - | 100,636 | ||||||||||||||||||
Other comprehensive loss
|
- | - | - | - | (9,802 | ) | (9,802 | ) | ||||||||||||||||
Cash dividends paid on common stock ($0.92 per share)
|
- | - | - | (59,302 | ) | - | (59,302 | ) | ||||||||||||||||
Common stock issued, long-term incentive plan
|
243,752 | 51 | 7,047 | (3,970 | ) | - | 3,128 | |||||||||||||||||
Compensation expense, long-term incentive plan
|
- | - | 4,824 | - | - | 4,824 | ||||||||||||||||||
Other
|
- | - | (60 | ) | - | - | (60 | ) | ||||||||||||||||
Balance, December 31, 2010
|
63,917,591 | 13,318 | 256,675 | 890,917 | (11,426 | ) | 1,149,484 | |||||||||||||||||
Net income per consolidated statements of income
|
- | - | - | 106,841 | - | 106,841 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 14,547 | 14,547 | ||||||||||||||||||
Cash dividends paid on common stock ($0.92 per share)
|
- | - | - | (59,485 | ) | - | (59,485 | ) | ||||||||||||||||
Common stock issued, long-term incentive plan
|
224,907 | 46 | 5,560 | (5,747 | ) | - | (141 | ) | ||||||||||||||||
Compensation expense, long-term incentive plan
|
- | - | 3,791 | - | - | 3,791 | ||||||||||||||||||
Balance, December 31, 2011
|
64,142,498 | 13,364 | 266,026 | 932,526 | 3,121 | 1,215,037 | ||||||||||||||||||
Net income per consolidated statements of income
|
- | - | - | 117,283 | - | 117,283 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 274 | 274 | ||||||||||||||||||
Cash dividends paid on common stock ($0.92 per share)
|
- | - | - | (59,961 | ) | - | (59,961 | ) | ||||||||||||||||
Common stock issued, long-term incentive plan
|
167,715 | 36 | 4,012 | (5,285 | ) | - | (1,237 | ) | ||||||||||||||||
Common stock issued, business combination
|
510,201 | 106 | 11,894 | - | - | 12,000 | ||||||||||||||||||
Compensation expense, long-term incentive plan
|
- | - | 3,973 | - | - | 3,973 | ||||||||||||||||||
Balance, December 31, 2012
|
64,820,414 | $ | 13,506 | $ | 285,905 | $ | 984,563 | $ | 3,395 | $ | 1,287,369 |
Trustmark Corporation and Subsidiaries
|
||||||||||||
Consolidated Statements of Cash Flows
|
||||||||||||
($ in thousands)
|
Years Ended December 31,
|
|||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating Activities
|
||||||||||||
Net income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 | ||||||
Adjustments to reconcile net income to net cash provided
by operating activities:
|
||||||||||||
Provision for loan losses, net
|
12,294 | 30,328 | 49,546 | |||||||||
Depreciation and amortization
|
29,275 | 25,273 | 25,646 | |||||||||
Net amortization of securities
|
7,008 | 9,187 | 3,264 | |||||||||
Securities gains, net
|
(1,059 | ) | (80 | ) | (2,329 | ) | ||||||
Gains on sales of loans, net
|
(33,918 | ) | (11,952 | ) | (15,317 | ) | ||||||
Bargain purchase gain on acquisitions
|
(3,635 | ) | (7,456 | ) | - | |||||||
Deferred income tax benefit
|
(8,452 | ) | (9,683 | ) | (6,389 | ) | ||||||
Proceeds from sales of loans held for sale
|
1,849,712 | 981,349 | 1,164,541 | |||||||||
Purchases and originations of loans held for sale
|
(1,856,293 | ) | (1,003,803 | ) | (1,127,346 | ) | ||||||
Originations and sales of mortgage servicing rights, net
|
(23,253 | ) | (14,160 | ) | (16,885 | ) | ||||||
Net (increase) decrease in other assets
|
(35,816 | ) | 34,423 | 1,588 | ||||||||
Net increase in other liabilities
|
16,482 | 2,609 | 736 | |||||||||
Other operating activities, net
|
22,497 | 30,713 | 29,087 | |||||||||
Net cash provided by operating activities
|
92,125 | 173,589 | 206,778 | |||||||||
Investing Activities
|
||||||||||||
Proceeds from calls and maturities of securities held to maturity
|
15,534 | 83,219 | 92,324 | |||||||||
Proceeds from calls and maturities of securities available for sale
|
917,316 | 749,149 | 650,419 | |||||||||
Proceeds from sales of securities available for sale
|
34,826 | 22,996 | 65,074 | |||||||||
Purchases of securities available for sale
|
(1,122,480 | ) | (1,026,936 | ) | (1,227,199 | ) | ||||||
Net decrease (increase) in federal funds sold and securities
|
||||||||||||
purchased under reverse repurchase agreements
|
2,212 | 3,515 | (5,399 | ) | ||||||||
Net decrease in loans
|
250,508 | 141,988 | 138,071 | |||||||||
Purchases of premises and equipment
|
(17,172 | ) | (12,184 | ) | (6,720 | ) | ||||||
Proceeds from sales of premises and equipment
|
4 | 537 | 183 | |||||||||
Proceeds from sales of other real estate
|
34,992 | 54,104 | 48,019 | |||||||||
Net cash received in business combination
|
78,151 | 78,896 | - | |||||||||
Net cash provided by (used in) investing activities
|
193,891 | 95,284 | (245,228 | ) | ||||||||
Financing Activities
|
||||||||||||
Net increase (decrease) in deposits
|
121,358 | 317,447 | (143,898 | ) | ||||||||
Net (decrease) increase in federal funds purchased and
|
||||||||||||
securities sold under repurchase agreements
|
(315,671 | ) | (95,638 | ) | 47,106 | |||||||
Net (decrease) increase in short-term borrowings
|
(1,641 | ) | (389,666 | ) | 147,689 | |||||||
Payments from calls of long-term FHLB advances
|
- | (309 | ) | - | ||||||||
Redemption of junior subordinated debt securities
|
- | - | (8,248 | ) | ||||||||
Common stock dividends
|
(59,961 | ) | (59,485 | ) | (59,302 | ) | ||||||
Common stock issued-net, long-term incentive plan
|
(1,318 | ) | (595 | ) | 1,273 | |||||||
Excess tax benefit from stock-based compensation arrangements
|
81 | 454 | 1,855 | |||||||||
Net cash used in financing activities
|
(257,152 | ) | (227,792 | ) | (13,525 | ) | ||||||
Increase (decrease) in cash and cash equivalents
|
28,864 | 41,081 | (51,975 | ) | ||||||||
Cash and cash equivalents at beginning of year
|
202,625 | 161,544 | 213,519 | |||||||||
Cash and cash equivalents at end of year
|
$ | 231,489 | $ | 202,625 | $ | 161,544 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Income taxes paid
|
$ | 57,834 | $ | 37,604 | $ | 53,628 | ||||||
Interest expense paid on deposits and borrowings
|
31,496 | 44,060 | 59,858 | |||||||||
Noncash transfers from loans to foreclosed properties
(1)
|
37,635 | 57,297 | 61,786 | |||||||||
Transfer of long-term FHLB advance to short-term
|
- | - | 75,000 | |||||||||
Assets acquired in business combination
|
234,960 | 207,243 | - | |||||||||
Liabilities assumed in business combination
|
209,322 | 228,236 | - |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Basic shares
|
64,659 | 64,066 | 63,849 | |||||||||
Dilutive shares
|
192 | 195 | 190 | |||||||||
Diluted shares
|
64,851 | 64,261 | 64,039 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Weighted-average antidilutive shares
|
653 | 1,226 | 1,259 |
Assets:
|
||||
Cash and due from banks
|
$ | 88,154 | ||
Securities available for sale
|
26,369 | |||
Acquired noncovered loans
|
97,914 | |||
Premises and equipment, net
|
9,466 | |||
Identifiable intangible assets
|
7,017 | |||
Other real estate
|
2,569 | |||
Other assets
|
3,471 | |||
Total Assets
|
234,960 | |||
Liabilities:
|
||||
Deposits
|
208,796 | |||
Other liabilities
|
526 | |||
Total Liabilities
|
209,322 | |||
Net assets acquired at fair value
|
25,638 | |||
Consideration paid to Bay Bank
|
22,003 | |||
Bargain purchase gain
|
3,635 | |||
Income taxes
|
- | |||
Bargain purchase gain, net of taxes
|
$ | 3,635 |
Assets:
|
||||
Cash and due from banks
|
$ | 50,447 | ||
Federal funds sold
|
1,000 | |||
Securities available for sale
|
6,389 | |||
Acquired noncovered loans
|
9,644 | |||
Acquired covered loans
|
97,770 | |||
Premises and equipment, net
|
55 | |||
Identifiable intangible assets
|
902 | |||
Covered other real estate
|
7,485 | |||
FDIC indemnification asset
|
33,333 | |||
Other assets
|
218 | |||
Total Assets
|
207,243 | |||
Liabilities:
|
||||
Deposits
|
204,349 | |||
Short-term borrowings
|
23,157 | |||
Other liabilities
|
730 | |||
Total Liabilities
|
228,236 | |||
Net assets acquired at fair value
|
(20,993 | ) | ||
Cash received on acquisition
|
28,449 | |||
Bargain purchase gain
|
7,456 | |||
Income taxes
|
2,852 | |||
Bargain purchase gain, net of taxes
|
$ | 4,604 |
Securities Available for Sale
|
Securities Held to Maturity
|
|||||||||||||||||||||||||||||||
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
|||||||||||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||||||||||||||
December 31, 2012
|
Cost
|
Gains
|
(Losses)
|
Value
|
Cost
|
Gains
|
(Losses)
|
Value
|
||||||||||||||||||||||||
U.S. Government agency obligations
|
||||||||||||||||||||||||||||||||
Issued by U.S. Government agencies
|
$ | 10 | $ | - | $ | - | $ | 10 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Issued by U.S. Government sponsored agencies
|
105,396 | 339 | - | 105,735 | - | - | - | - | ||||||||||||||||||||||||
Obligations of states and political subdivisions
|
202,877 | 12,900 | (16 | ) | 215,761 | 36,206 | 4,184 | - | 40,390 | |||||||||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||||||||||
Residential mortgage pass-through securities
|
||||||||||||||||||||||||||||||||
Guaranteed by GNMA
|
18,981 | 921 | - | 19,902 | 3,245 | 227 | - | 3,472 | ||||||||||||||||||||||||
Issued by FNMA and FHLMC
|
201,493 | 7,071 | - | 208,564 | 572 | 52 | - | 624 | ||||||||||||||||||||||||
Other residential mortgage-backed securities
|
||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
1,436,812 | 29,574 | (20 | ) | 1,466,366 | - | - | - | - | |||||||||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
380,514 | 19,420 | (154 | ) | 399,780 | 2,165 | 237 | - | 2,402 | |||||||||||||||||||||||
Asset-backed securities
|
238,893 | 2,755 | (21 | ) | 241,627 | - | - | - | - | |||||||||||||||||||||||
Total
|
$ | 2,584,976 | $ | 72,980 | $ | (211 | ) | $ | 2,657,745 | $ | 42,188 | $ | 4,700 | $ | - | $ | 46,888 | |||||||||||||||
December 31, 2011
|
||||||||||||||||||||||||||||||||
U.S. Government agency obligations
|
||||||||||||||||||||||||||||||||
Issued by U.S. Government agencies
|
$ | 3 | $ | - | $ | - | $ | 3 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Issued by U.S. Government sponsored agencies
|
64,573 | 229 | - | 64,802 | - | - | - | - | ||||||||||||||||||||||||
Obligations of states and political subdivisions
|
190,868 | 11,971 | (12 | ) | 202,827 | 42,619 | 4,131 | (2 | ) | 46,748 | ||||||||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||||||||||
Residential mortgage pass-through securities
|
||||||||||||||||||||||||||||||||
Guaranteed by GNMA
|
11,500 | 945 | - | 12,445 | 4,538 | 336 | - | 4,874 | ||||||||||||||||||||||||
Issued by FNMA and FHLMC
|
340,839 | 7,093 | - | 347,932 | 588 | 28 | - | 616 | ||||||||||||||||||||||||
Other residential mortgage-backed securities
|
||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
1,570,782 | 44,183 | - | 1,614,965 | 7,749 | 133 | (1 | ) | 7,881 | |||||||||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
216,698 | 9,497 | (176 | ) | 226,019 | 2,211 | 185 | - | 2,396 | |||||||||||||||||||||||
Total
|
$ | 2,395,263 | $ | 73,918 | $ | (188 | ) | $ | 2,468,993 | $ | 57,705 | $ | 4,813 | $ | (3 | ) | $ | 62,515 |
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
December 31, 2012
|
Fair Value
|
(Losses)
|
Fair Value
|
(Losses)
|
Fair Value
|
(Losses)
|
||||||||||||||||||
Obligations of states and political subdivisions
|
$ | 5,878 | $ | (16 | ) | $ | - | $ | - | $ | 5,878 | $ | (16 | ) | ||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
Other residential mortgage-backed securities
|
||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
3,055 | (20 | ) | - | - | 3,055 | (20 | ) | ||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
- | - | 16,339 | (154 | ) | 16,339 | (154 | ) | ||||||||||||||||
Asset-backed securities
|
16,412 | (21 | ) | - | - | 16,412 | (21 | ) | ||||||||||||||||
Total
|
$ | 25,345 | $ | (57 | ) | $ | 16,339 | $ | (154 | ) | $ | 41,684 | $ | (211 | ) | |||||||||
December 31, 2011
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$ | 3,368 | $ | (12 | ) | $ | 202 | $ | (2 | ) | $ | 3,570 | $ | (14 | ) | |||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
Other residential mortgage-backed securities
|
||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
1,069 | (1 | ) | - | - | 1,069 | (1 | ) | ||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC or GNMA
|
46,890 | (176 | ) | - | - | 46,890 | (176 | ) | ||||||||||||||||
Total
|
$ | 51,327 | $ | (189 | ) | $ | 202 | $ | (2 | ) | $ | 51,529 | $ | (191 | ) |
Years Ended December 31,
|
||||||||||||
Available for Sale
|
2012
|
2011
|
2010
|
|||||||||
Proceeds from calls and sales of securities
|
$ | 38,364 | $ | 24,471 | $ | 65,074 | ||||||
Gross realized gains
|
1,052 | 57 | 2,216 | |||||||||
Gross realized (losses)
|
(2 | ) | (11 | ) | - | |||||||
Held to Maturity
|
||||||||||||
Proceeds from calls of securities
|
$ | 335 | $ | 3,645 | $ | 11,305 | ||||||
Gross realized gains
|
9 | 34 | 113 |
Securities
|
Securities
|
|||||||||||||||
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Estimated
|
Estimated
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Due in one year or less
|
$ | 12,048 | $ | 12,120 | $ | 1,946 | $ | 1,962 | ||||||||
Due after one year through five years
|
82,132 | 86,233 | 16,507 | 17,863 | ||||||||||||
Due after five years through ten years
|
407,078 | 417,300 | 16,526 | 19,262 | ||||||||||||
Due after ten years
|
45,918 | 47,480 | 1,227 | 1,303 | ||||||||||||
547,176 | 563,133 | 36,206 | 40,390 | |||||||||||||
Mortgage-backed securities
|
2,037,800 | 2,094,612 | 5,982 | 6,498 | ||||||||||||
Total
|
$ | 2,584,976 | $ | 2,657,745 | $ | 42,188 | $ | 46,888 |
2012
|
2011
|
|||||||
Loans secured by real estate:
|
||||||||
Construction, land development and other land loans
|
$ | 468,975 | $ | 474,082 | ||||
Secured by 1-4 family residential properties
|
1,497,480 | 1,760,930 | ||||||
Secured by nonfarm, nonresidential properties
|
1,410,264 | 1,425,774 | ||||||
Other
|
189,949 | 204,849 | ||||||
Commercial and industrial loans
|
1,169,513 | 1,139,365 | ||||||
Consumer loans
|
171,660 | 243,756 | ||||||
Other loans
|
684,913 | 608,728 | ||||||
LHFI
|
5,592,754 | 5,857,484 | ||||||
Less allowance for loan losses, LHFI
|
78,738 | 89,518 | ||||||
Net LHFI
|
$ | 5,514,016 | $ | 5,767,966 |
December 31, 2012
|
||||||||||||
LHFI Evaluated for Impairment
|
||||||||||||
Individually
|
Collectively
|
Total
|
||||||||||
Loans secured by real estate:
|
||||||||||||
Construction, land development and other land loans
|
$ | 27,105 | $ | 441,870 | $ | 468,975 | ||||||
Secured by 1-4 family residential properties
|
27,114 | 1,470,366 | 1,497,480 | |||||||||
Secured by nonfarm, nonresidential properties
|
18,289 | 1,391,975 | 1,410,264 | |||||||||
Other
|
3,956 | 185,993 | 189,949 | |||||||||
Commercial and industrial loans
|
4,741 | 1,164,772 | 1,169,513 | |||||||||
Consumer loans
|
360 | 171,300 | 171,660 | |||||||||
Other loans
|
798 | 684,115 | 684,913 | |||||||||
Total
|
$ | 82,363 | $ | 5,510,391 | $ | 5,592,754 |
December 31, 2011
|
||||||||||||
LHFI Evaluated for Impairment
|
||||||||||||
Individually
|
Collectively
|
Total
|
||||||||||
Loans secured by real estate:
|
||||||||||||
Construction, land development and other land loans
|
$ | 40,413 | $ | 433,669 | $ | 474,082 | ||||||
Secured by 1-4 family residential properties
|
24,348 | 1,736,582 | 1,760,930 | |||||||||
Secured by nonfarm, nonresidential properties
|
23,981 | 1,401,793 | 1,425,774 | |||||||||
Other
|
5,871 | 198,978 | 204,849 | |||||||||
Commercial and industrial loans
|
14,148 | 1,125,217 | 1,139,365 | |||||||||
Consumer loans
|
825 | 242,931 | 243,756 | |||||||||
Other loans
|
872 | 607,856 | 608,728 | |||||||||
Total
|
$ | 110,458 | $ | 5,747,026 | $ | 5,857,484 |
|
·
|
Trustmark accepts a third-party receivable or other asset(s) of the borrower, in lieu of the receivable from the borrower.
|
|
·
|
Trustmark accepts an equity interest in the borrower in lieu of the receivable.
|
|
·
|
Trustmark accepts modification of the terms of the debt including but not limited to:
|
|
o
|
Reduction of (absolute or contingent) the stated interest rate to below the current market rate.
|
|
o
|
Extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk.
|
|
o
|
Reduction (absolute or contingent) of the face amount or maturity amount of the debt as stated in the note or other agreement.
|
|
o
|
Reduction (absolute or contingent) of accrued interest.
|
Year Ended December 31, 2012
|
||||||||||||
Troubled Debt Restructurings
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||
Construction, land development and other land loans
|
12 | $ | 4,092 | $ | 4,092 | |||||||
Secured by 1-4 family residential properties
|
48 | 5,399 | 5,383 | |||||||||
Secured by nonfarm, nonresidential properties
|
2 | 1,210 | 1,210 | |||||||||
Other loans secured by real estate
|
1 | 199 | 199 | |||||||||
Commercial and industrial
|
1 | 148 | - | |||||||||
Total
|
64 | $ | 11,048 | $ | 10,884 |
Year Ended December 31, 2011
|
||||||||||||
Troubled Debt Restructurings
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||
Construction, land development and other land loans
|
26 | $ | 16,200 | $ | 13,984 | |||||||
Secured by 1-4 family residential properties
|
17 | 3,843 | 3,793 | |||||||||
Commercial and industrial
|
2 | 11,997 | 11,503 | |||||||||
Total
|
45 | $ | 32,040 | $ | 29,280 |
Years Ended December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Troubled Debt Restructurings that Subsequently Defaulted
|
Number of Contracts
|
Recorded Investment
|
Number of Contracts
|
Recorded Investment
|
||||||||||||
Construction, land development and other land loans
|
7 | $ | 1,881 | 5 | $ | 3,058 | ||||||||||
Secured by 1-4 family residential properties
|
16 | 1,469 | 1 | 179 | ||||||||||||
Secured by nonfarm, nonresidential properties
|
1 | 862 | - | - | ||||||||||||
Total
|
24 | $ | 4,212 | 6 | $ | 3,237 |
December 31, 2012
|
||||||||||||
Accruing
|
Nonaccrual
|
Total
|
||||||||||
Construction, land development and other land loans
|
$ | 233 | $ | 12,073 | $ | 12,306 | ||||||
Secured by 1-4 family residential properties
|
1,280 | 5,908 | 7,188 | |||||||||
Secured by nonfarm, nonresidential properties
|
- | 4,582 | 4,582 | |||||||||
Other loans secured by real estate
|
- | 197 | 197 | |||||||||
Total Troubled Debt Restructurings by Type
|
$ | 1,513 | $ | 22,760 | $ | 24,273 | ||||||
December 31, 2011
|
||||||||||||
Accruing
|
Nonaccrual
|
Total
|
||||||||||
Construction, land development and other land loans
|
$ | 241 | $ | 14,041 | $ | 14,282 | ||||||
Secured by 1-4 family residential properties
|
782 | 3,485 | 4,267 | |||||||||
Secured by nonfarm, nonresidential properties
|
- | 4,135 | 4,135 | |||||||||
Commercial and industrial
|
- | 11,503 | 11,503 | |||||||||
Total Troubled Debt Restructurings by Type
|
$ | 1,023 | $ | 33,164 | $ | 34,187 |
|
·
|
Credit File Completeness and Financial Statement Exceptions – evaluates the quality and condition of credit files in terms of content, completeness and organization and focuses on efforts to obtain and document sufficient information to determine the quality and status of credits. Also included is an evaluation of the systems/procedures used to insure compliance with policy such as financial statements, review memos and loan agreements.
|
|
·
|
Underwriting/Policy – evaluates whether credits are adequately analyzed, appropriately structured and properly approved within requirements of bank loan policy. A properly approved credit is approved by adequate authority in a timely manner with all conditions of approval fulfilled. Total policy exceptions measures the level of underwriting and other policy exceptions within a loan portfolio.
|
|
·
|
Collateral Documentation – focuses on the adequacy of documentation to support the obligation, perfect Trustmark’s collateral position and protect collateral value. There are two parts to this measure:
|
|
ü
|
Collateral exceptions where certain collateral documentation is either not present, is not considered current or has expired.
|
|
ü
|
90 days and over collateral exceptions are where certain collateral documentation is either not present, is not considered current or has expired and the exception has been identified in excess of 90 days.
|
|
·
|
Compliance with Law – focuses on underwriting, documentation, approval and reporting in compliance with banking laws and regulations. Primary emphasis is directed to Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and Regulation O requirements.
|
|
·
|
Risk Rate (RR) 1 through RR 6 – Grades one through six represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risk measured by using a variety of credit risk criteria such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties.
|
|
·
|
Other Assets Especially Mentioned (OAEM) - (RR 7) – a loan that has a potential weakness that if not corrected will lead to a more severe rating. This rating is for credits that are currently protected but potentially weak because of an adverse feature or condition that if not corrected will lead to a further downgrade.
|
|
·
|
Substandard (RR 8) – a loan that has at least one identified weakness that is well defined. This rating is for credits where the primary sources of repayment are not viable at this time or where either the capital or collateral is not adequate to support the loan and the secondary means of repayment do not provide a sufficient level of support to offset the identified weakness. Loss potential exists in the aggregate amount of substandard loans but does not necessarily exist in individual loans.
|
|
·
|
Doubtful (RR 9) – a loan with an identified weakness that does not have a valid secondary source of repayment. Generally these credits have an impaired primary source of repayment and secondary sources are not sufficient to prevent a loss in the credit. The exact amount of the loss has not been determined at this time.
|
|
·
|
Loss (RR 10) – a loan or a portion of a loan that is deemed to be uncollectible.
|
|
·
|
Trustmark’s Credit Quality Review Committee meets monthly and performs the following functions: detailed review and evaluation of all loans of $100 thousand or more that are either delinquent thirty days or more or on nonaccrual, including determination of appropriate risk ratings, accrual status, and appropriate servicing officer; review of risk rate changes for relationships of $100 thousand or more; quarterly review of all nonaccruals less than $100 thousand to determine whether the credit should be charged off, returned to accrual, or remain in nonaccrual status; monthly/quarterly review of continuous action plans for all credits rated seven or worse for relationships of $100 thousand or more; monthly review of all commercial charge-offs of $25 thousand or more for the preceding month.
|
|
·
|
Residential real estate developments - a development project analysis is performed on all projects regardless of size. Performance of the development is assessed through an evaluation of the number of lots remaining, the payout ratios, and the loan-to-value ratios. Results are stress tested as to absorption and price of lots. This information is reviewed by each senior credit officer for that market to determine the need for any risk rate or accrual status changes.
|
|
·
|
Non-owner occupied commercial real estate – a cash flow analysis is performed on all projects with an outstanding balance of $1.0 million or more. In addition, credits are stress tested for vacancies and rate sensitivity. Confirmation is obtained that guarantor financial statements are current, taxes have been paid, and that there are no other issues that need to be addressed. This information is reviewed by each senior credit officer for that market to determine the need for any risk rate or accrual status changes.
|
December 31, 2012 | ||||||||||||||||||||||||
Commercial Loans
|
||||||||||||||||||||||||
Pass -
|
Special Mention -
|
Substandard -
|
Doubtful -
|
|||||||||||||||||||||
Categories 1-6
|
Category 7
|
Category 8
|
Category 9
|
Subtotal
|
||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 335,179 | $ | 23,812 | $ | 63,832 | $ | 143 | $ | 422,966 | ||||||||||||||
Secured by 1-4 family residential properties
|
110,333 | 1,012 | 13,303 | 432 | 125,080 | |||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
1,298,820 | 12,156 | 98,082 | - | 1,409,058 | |||||||||||||||||||
Other
|
178,790 | 444 | 5,768 | - | 185,002 | |||||||||||||||||||
Commercial and industrial loans
|
1,091,356 | 36,992 | 39,479 | 1,334 | 1,169,161 | |||||||||||||||||||
Consumer loans
|
404 | - | - | - | 404 | |||||||||||||||||||
Other loans
|
676,618 | 59 | 1,714 | 784 | 679,175 | |||||||||||||||||||
$ | 3,691,500 | $ | 74,475 | $ | 222,178 | $ | 2,693 | $ | 3,990,846 |
Consumer Loans
|
||||||||||||||||||||||||
Past Due
|
Past Due Greater
|
|||||||||||||||||||||||
Current
|
30-89 Days
|
Than 90 days
|
Nonaccrual
|
Subtotal
|
Total LHFI
|
|||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 44,131 | $ | 1,109 | $ | - | $ | 769 | $ | 46,009 | $ | 468,975 | ||||||||||||
Secured by 1-4 family residential properties
|
1,339,000 | 10,332 | 2,630 | 20,438 | 1,372,400 | 1,497,480 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
1,206 | - | - | - | 1,206 | 1,410,264 | ||||||||||||||||||
Other
|
4,746 | 150 | - | 51 | 4,947 | 189,949 | ||||||||||||||||||
Commercial and industrial loans
|
313 | 29 | - | 10 | 352 | 1,169,513 | ||||||||||||||||||
Consumer loans
|
167,131 | 3,481 | 285 | 359 | 171,256 | 171,660 | ||||||||||||||||||
Other loans
|
5,738 | - | - | - | 5,738 | 684,913 | ||||||||||||||||||
$ | 1,562,265 | $ | 15,101 | $ | 2,915 | $ | 21,627 | $ | 1,601,908 | $ | 5,592,754 |
December 31, 2011 | ||||||||||||||||||||||||
Commercial Loans
|
||||||||||||||||||||||||
Pass -
|
Special Mention -
|
Substandard -
|
Doubtful -
|
|||||||||||||||||||||
Categories 1-6
|
Category 7
|
Category 8
|
Category 9
|
Subtotal
|
||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 308,618 | $ | 26,273 | $ | 90,175 | $ | 116 | $ | 425,182 | ||||||||||||||
Secured by 1-4 family residential properties
|
119,155 | 142 | 16,324 | - | 135,621 | |||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
1,287,886 | 26,232 | 110,472 | 51 | 1,424,641 | |||||||||||||||||||
Other
|
188,772 | 130 | 9,312 | - | 198,214 | |||||||||||||||||||
Commercial and industrial loans
|
1,048,556 | 32,046 | 56,577 | 405 | 1,137,584 | |||||||||||||||||||
Consumer loans
|
643 | 25 | - | - | 668 | |||||||||||||||||||
Other loans
|
600,411 | - | 1,834 | 600 | 602,845 | |||||||||||||||||||
$ | 3,554,041 | $ | 84,848 | $ | 284,694 | $ | 1,172 | $ | 3,924,755 |
Consumer Loans
|
||||||||||||||||||||||||
Past Due
|
Past Due Greater
|
|||||||||||||||||||||||
Current
|
30-89 Days
|
Than 90 days
|
Nonaccrual
|
Subtotal
|
Total LHFI
|
|||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 47,253 | $ | 353 | $ | - | $ | 1,294 | $ | 48,900 | $ | 474,082 | ||||||||||||
Secured by 1-4 family residential properties
|
1,596,800 | 8,477 | 1,306 | 18,726 | 1,625,309 | 1,760,930 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
1,133 | - | - | - | 1,133 | 1,425,774 | ||||||||||||||||||
Other
|
6,405 | 201 | - | 29 | 6,635 | 204,849 | ||||||||||||||||||
Commercial and industrial loans
|
1,626 | 118 | - | 37 | 1,781 | 1,139,365 | ||||||||||||||||||
Consumer loans
|
234,593 | 7,172 | 498 | 825 | 243,088 | 243,756 | ||||||||||||||||||
Other loans
|
5,848 | 35 | - | - | 5,883 | 608,728 | ||||||||||||||||||
$ | 1,893,658 | $ | 16,356 | $ | 1,804 | $ | 20,911 | $ | 1,932,729 | $ | 5,857,484 |
December 31, 2012
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
Greater than
|
Current
|
|||||||||||||||||||||||
30-89 Days
|
90 Days (1)
|
Total
|
Nonaccrual
|
Loans
|
Total LHFI
|
|||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 4,957 | $ | 438 | $ | 5,395 | $ | 27,105 | $ | 436,475 | $ | 468,975 | ||||||||||||
Secured by 1-4 family residential properties
|
12,626 | 3,131 | 15,757 | 27,114 | 1,454,609 | 1,497,480 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
9,460 | - | 9,460 | 18,289 | 1,382,515 | 1,410,264 | ||||||||||||||||||
Other
|
172 | - | 172 | 3,956 | 185,821 | 189,949 | ||||||||||||||||||
Commercial and industrial loans
|
4,317 | 2,525 | 6,842 | 4,741 | 1,157,930 | 1,169,513 | ||||||||||||||||||
Consumer loans
|
3,480 | 284 | 3,764 | 360 | 167,536 | 171,660 | ||||||||||||||||||
Other loans
|
181 | - | 181 | 798 | 683,934 | 684,913 | ||||||||||||||||||
Total past due LHFI
|
$ | 35,193 | $ | 6,378 | $ | 41,571 | $ | 82,363 | $ | 5,468,820 | $ | 5,592,754 |
December 31, 2011
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
Greater than
|
Current
|
|||||||||||||||||||||||
30-89 Days
|
90 Days (1)
|
Total
|
Nonaccrual
|
Loans
|
Total LHFI
|
|||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 1,784 | $ | 1,657 | $ | 3,441 | $ | 40,413 | $ | 430,228 | $ | 474,082 | ||||||||||||
Secured by 1-4 family residential properties
|
9,755 | 1,306 | 11,061 | 24,348 | 1,725,521 | 1,760,930 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
9,925 | - | 9,925 | 23,981 | 1,391,868 | 1,425,774 | ||||||||||||||||||
Other
|
879 | - | 879 | 5,871 | 198,099 | 204,849 | ||||||||||||||||||
Commercial and industrial loans
|
1,646 | 769 | 2,415 | 14,148 | 1,122,802 | 1,139,365 | ||||||||||||||||||
Consumer loans
|
7,172 | 498 | 7,670 | 825 | 235,261 | 243,756 | ||||||||||||||||||
Other loans
|
3,104 | - | 3,104 | 872 | 604,752 | 608,728 | ||||||||||||||||||
Total past due LHFI
|
$ | 34,265 | $ | 4,230 | $ | 38,495 | $ | 110,458 | $ | 5,708,531 | $ | 5,857,484 |
·
|
Real Estate – Owner Occupied
|
·
|
Real Estate – Non-Owner Occupied
|
·
|
Working Capital
|
·
|
Non-Working Capital
|
·
|
Land
|
·
|
Lots and Development
|
·
|
Political Subdivisions
|
·
|
1 to 4 Family
|
·
|
Non-1 to 4 Family
|
|
·
|
National and regional economic trends and conditions
|
|
·
|
Impact of recent performance trends
|
|
·
|
Experience, ability and effectiveness of management
|
|
·
|
Adherence to Trustmark’s loan policies, procedures and internal controls
|
|
·
|
Collateral, financial and underwriting exception trends
|
|
·
|
Credit concentrations
|
|
·
|
Acquisitions
|
|
·
|
Catastrophe
|
|
·
|
Residential Mortgage
|
|
·
|
Direct Consumer
|
|
·
|
Auto Finance
|
|
·
|
Junior Lien on 1-4 Family Residential Properties
|
|
·
|
Credit Cards
|
|
·
|
Overdrafts
|
|
·
|
Economic indicators
|
|
·
|
Performance trends
|
|
·
|
Management experience
|
|
·
|
Lending policy measures
|
|
·
|
Credit concentrations
|
2012
|
2011
|
2010
|
||||||||||
Balance at January 1,
|
$ | 89,518 | $ | 93,510 | $ | 103,662 | ||||||
Loans charged-off
|
(31,376 | ) | (45,769 | ) | (71,897 | ) | ||||||
Recoveries
|
13,830 | 12,073 | 12,199 | |||||||||
Net charge-offs
|
(17,546 | ) | (33,696 | ) | (59,698 | ) | ||||||
Provision for loan losses, LHFI
|
6,766 | 29,704 | 49,546 | |||||||||
Balance at December 31,
|
$ | 78,738 | $ | 89,518 | $ | 93,510 |
2012
|
||||||||||||||||||||
Provision for
|
||||||||||||||||||||
January 1,
|
Charge-offs
|
Recoveries
|
Loan Losses
|
December 31,
|
||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||
Construction, land development and other land loans
|
$ | 27,220 | $ | (3,480 | ) | $ | - | $ | (1,902 | ) | $ | 21,838 | ||||||||
Secured by 1-4 family residential properties
|
12,650 | (5,532 | ) | 435 | 5,404 | 12,957 | ||||||||||||||
Secured by nonfarm, nonresidential properties
|
24,358 | (5,410 | ) | - | 2,148 | 21,096 | ||||||||||||||
Other
|
3,079 | (1,601 | ) | - | 719 | 2,197 | ||||||||||||||
Commercial and industrial loans
|
15,868 | (6,922 | ) | 3,916 | 1,457 | 14,319 | ||||||||||||||
Consumer loans
|
3,656 | (3,082 | ) | 6,211 | (3,698 | ) | 3,087 | |||||||||||||
Other loans
|
2,687 | (5,349 | ) | 3,268 | 2,638 | 3,244 | ||||||||||||||
Total allowance for loan losses, LHFI
|
$ | 89,518 | $ | (31,376 | ) | $ | 13,830 | $ | 6,766 | $ | 78,738 | |||||||||
Disaggregated by Impairment Method
|
||||||||||||||||||||
Individually
|
Collectively
|
Total
|
||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||
Construction, land development and other land loans
|
$ | 4,992 | $ | 16,846 | $ | 21,838 | ||||||||||||||
Secured by 1-4 family residential properties
|
1,469 | 11,488 | 12,957 | |||||||||||||||||
Secured by nonfarm, nonresidential properties
|
2,296 | 18,800 | 21,096 | |||||||||||||||||
Other
|
760 | 1,437 | 2,197 | |||||||||||||||||
Commercial and industrial loans
|
640 | 13,679 | 14,319 | |||||||||||||||||
Consumer loans
|
5 | 3,082 | 3,087 | |||||||||||||||||
Other loans
|
342 | 2,902 | 3,244 | |||||||||||||||||
Total allowance for loan losses, LHFI
|
$ | 10,504 | $ | 68,234 | $ | 78,738 |
2011
|
||||||||||||||||||||
Provision for
|
||||||||||||||||||||
January 1,
|
Charge-offs
|
Recoveries
|
Loan Losses
|
December 31,
|
||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||
Construction, land development and other land loans
|
$ | 35,562 | $ | (16,399 | ) | $ | - | $ | 8,057 | $ | 27,220 | |||||||||
Secured by 1-4 family residential properties
|
13,051 | (9,271 | ) | 447 | 8,423 | 12,650 | ||||||||||||||
Secured by nonfarm, nonresidential properties
|
20,980 | (3,896 | ) | - | 7,274 | 24,358 | ||||||||||||||
Other
|
1,582 | (1,082 | ) | - | 2,579 | 3,079 | ||||||||||||||
Commercial and industrial loans
|
14,775 | (4,299 | ) | 2,703 | 2,689 | 15,868 | ||||||||||||||
Consumer loans
|
5,400 | (5,629 | ) | 5,749 | (1,864 | ) | 3,656 | |||||||||||||
Other loans
|
2,160 | (5,193 | ) | 3,174 | 2,546 | 2,687 | ||||||||||||||
Total allowance for loan losses, LHFI
|
$ | 93,510 | $ | (45,769 | ) | $ | 12,073 | $ | 29,704 | $ | 89,518 | |||||||||
Disaggregated by Impairment Method
|
||||||||||||||||||||
Individually
|
Collectively
|
Total
|
||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||
Construction, land development and other land loans
|
$ | 6,547 | $ | 20,673 | $ | 27,220 | ||||||||||||||
Secured by 1-4 family residential properties
|
1,348 | 11,302 | 12,650 | |||||||||||||||||
Secured by nonfarm, nonresidential properties
|
2,431 | 21,927 | 24,358 | |||||||||||||||||
Other
|
1,007 | 2,072 | 3,079 | |||||||||||||||||
Commercial and industrial loans
|
1,137 | 14,731 | 15,868 | |||||||||||||||||
Consumer loans
|
9 | 3,647 | 3,656 | |||||||||||||||||
Other loans
|
185 | 2,502 | 2,687 | |||||||||||||||||
Total allowance for loan losses, LHFI
|
$ | 12,664 | $ | 76,854 | $ | 89,518 |
December 31, 2012
|
December 31, 2011
|
|||||||||||||||
Covered
|
Noncovered
|
Covered
|
Noncovered
(1)
|
|||||||||||||
Loans secured by real estate:
|
||||||||||||||||
Construction, land development and other land loans
|
$ | 3,924 | $ | 10,056 | $ | 4,209 | $ | - | ||||||||
Secured by 1-4 family residential properties
|
23,990 | 19,404 | 31,874 | 76 | ||||||||||||
Secured by nonfarm, nonresidential properties
|
18,407 | 45,649 | 30,889 | - | ||||||||||||
Other
|
3,567 | 669 | 5,126 | - | ||||||||||||
Commercial and industrial loans
|
747 | 3,035 | 2,971 | 69 | ||||||||||||
Consumer loans
|
177 | 2,610 | 290 | 4,146 | ||||||||||||
Other loans
|
1,229 | 100 | 1,445 | 72 | ||||||||||||
Acquired loans
|
52,041 | 81,523 | 76,804 | 4,363 | ||||||||||||
Less allowance for loan losses, acquired loans
|
4,190 | 1,885 | 502 | - | ||||||||||||
Net acquired loans
|
$ | 47,851 | $ | 79,638 | $ | 76,302 | $ | 4,363 |
At acquisition date:
|
March 16, 2012
|
|||
Contractually required principal and interest
|
$ | 134,615 | ||
Nonaccretable difference
|
20,161 | |||
Cash flows expected to be collected
|
114,454 | |||
Accretable yield
(1)
|
16,540 | |||
Fair value of loans at acquisition
|
$ | 97,914 |
Covered
|
Noncovered
(1)
|
|||||||||||||||
Acquired
|
Acquired
|
Acquired
|
Acquired
|
|||||||||||||
Impaired
|
Not ASC 310-30
(2)
|
Impaired
|
Not ASC 310-30
(2)
|
|||||||||||||
Carrying value, net
at January 1, 2011
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Loans acquired
|
93,940 | 3,830 | 9,468 | 176 | ||||||||||||
Accretion to interest income
|
4,347 | 543 | 349 | 4 | ||||||||||||
Payments received, net
(3)
|
(25,764 | ) | (202 | ) | (5,076 | ) | (47 | ) | ||||||||
Other
|
110 | - | (391 | ) | (120 | ) | ||||||||||
Less allowance for loan losses, acquired loans
|
(502 | ) | - | - | - | |||||||||||
Carrying value, net
at December 31, 2011
|
72,131 | 4,171 | 4,350 | 13 | ||||||||||||
Loans acquired
(4)
|
- | - | 91,987 | 5,927 | ||||||||||||
Accretion to interest income
|
8,031 | 367 | 4,138 | 161 | ||||||||||||
Payments received, net
|
(27,496 | ) | (2,107 | ) | (24,330 | ) | 868 | |||||||||
Other
|
(3,085 | ) | 29 | (1,318 | ) | (273 | ) | |||||||||
Less allowance for loan losses, acquired loans
|
(4,190 | ) | - | (1,885 | ) | - | ||||||||||
Carrying value, net at December 31, 2012
|
$ | 45,391 | $ | 2,460 | $ | 72,942 | $ | 6,696 |
Accretable yield at January 1, 2012
(1)
|
$ | (17,653 | ) | |
Additions due to acquisition
(2)
|
(15,538 | ) | ||
Accretion to interest income
|
12,169 | |||
Disposals
|
3,757 | |||
Reclassification to / (from) nonaccretable difference
|
(9,118 | ) | ||
Accretable yield at December 31, 2012
|
$ | (26,383 | ) |
(1)
|
Accretable yield at January 1, 2012, includes $777 thousand of accretable yield for noncovered loans acquired from Heritage and accounted for under FASB ASC Topic 310-30.
|
(2)
|
Accretable yield on loans acquired from Bay Bank on March 16, 2012.
|
Covered
|
Noncovered
|
Total
|
||||||||||
Balance at January 1, 2012
|
$ | 502 | $ | - | $ | 502 | ||||||
Loans charged-off
|
(81 | ) | (290 | ) | (371 | ) | ||||||
Recoveries
|
157 | 259 | 416 | |||||||||
Net charge-offs
|
76 | (31 | ) | 45 | ||||||||
Provision for loan losses, acquired loans
|
3,612 | 1,916 | 5,528 | |||||||||
Balance at December 31, 2012
|
$ | 4,190 | $ | 1,885 | $ | 6,075 |
December 31, 2012
|
||||||||||||||||||||||||
Commercial Loans
|
||||||||||||||||||||||||
Pass -
|
Special Mention -
|
Substandard -
|
Doubtful -
|
|||||||||||||||||||||
Categories 1-6
|
Category 7
|
Category 8
|
Category 9
|
Subtotal
|
||||||||||||||||||||
Covered Loans:
(1)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 1,341 | $ | 18 | $ | 1,489 | $ | 744 | $ | 3,592 | ||||||||||||||
Secured by 1-4 family residential properties
|
3,128 | 810 | 2,940 | 85 | 6,963 | |||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
5,857 | 1,052 | 9,839 | 798 | 17,546 | |||||||||||||||||||
Other
|
443 | 318 | 1,231 | - | 1,992 | |||||||||||||||||||
Commercial and industrial loans
|
82 | 458 | 207 | - | 747 | |||||||||||||||||||
Consumer loans
|
- | - | - | - | - | |||||||||||||||||||
Other loans
|
245 | - | 345 | 535 | 1,125 | |||||||||||||||||||
Total covered loans
|
11,096 | 2,656 | 16,051 | 2,162 | 31,965 | |||||||||||||||||||
Noncovered loans:
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
3,259 | 119 | 4,915 | 921 | 9,214 | |||||||||||||||||||
Secured by 1-4 family residential properties
|
7,325 | - | 3,708 | 23 | 11,056 | |||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
22,453 | 3,596 | 18,682 | 831 | 45,562 | |||||||||||||||||||
Other
|
236 | - | 417 | - | 653 | |||||||||||||||||||
Commercial and industrial loans
|
2,853 | 89 | 93 | - | 3,035 | |||||||||||||||||||
Consumer loans
|
- | - | - | - | - | |||||||||||||||||||
Other loans
|
86 | - | - | - | 86 | |||||||||||||||||||
Total noncovered loans
|
36,212 | 3,804 | 27,815 | 1,775 | 69,606 | |||||||||||||||||||
Total acquired loans
|
$ | 47,308 | $ | 6,460 | $ | 43,866 | $ | 3,937 | $ | 101,571 | ||||||||||||||
Consumer Loans
|
||||||||||||||||||||||||
Past Due
|
Past Due Greater
|
Total
|
||||||||||||||||||||||
Current
|
30-89 Days
|
Than 90 Days
|
Nonaccrual
|
Subtotal
|
Acquired Loans
|
|||||||||||||||||||
Covered Loans:
(1)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 306 | $ | 26 | $ | - | $ | - | $ | 332 | $ | 3,924 | ||||||||||||
Secured by 1-4 family residential properties
|
14,311 | 1,028 | 1,650 | 38 | 17,027 | 23,990 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
692 | 169 | - | - | 861 | 18,407 | ||||||||||||||||||
Other
|
1,468 | 48 | 52 | 7 | 1,575 | 3,567 | ||||||||||||||||||
Commercial and industrial loans
|
- | - | - | - | - | 747 | ||||||||||||||||||
Consumer loans
|
177 | - | - | - | 177 | 177 | ||||||||||||||||||
Other loans
|
104 | - | - | - | 104 | 1,229 | ||||||||||||||||||
Total covered loans
|
17,058 | 1,271 | 1,702 | 45 | 20,076 | 52,041 | ||||||||||||||||||
Noncovered loans:
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
802 | - | 40 | - | 842 | 10,056 | ||||||||||||||||||
Secured by 1-4 family residential properties
|
7,715 | 357 | 215 | 61 | 8,348 | 19,404 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
87 | - | - | - | 87 | 45,649 | ||||||||||||||||||
Other
|
16 | - | - | - | 16 | 669 | ||||||||||||||||||
Commercial and industrial loans
|
- | - | - | - | - | 3,035 | ||||||||||||||||||
Consumer loans
|
2,394 | 164 | 52 | - | 2,610 | 2,610 | ||||||||||||||||||
Other loans
|
14 | - | - | - | 14 | 100 | ||||||||||||||||||
Total noncovered loans
|
11,028 | 521 | 307 | 61 | 11,917 | 81,523 | ||||||||||||||||||
Total acquired loans
|
$ | 28,086 | $ | 1,792 | $ | 2,009 | $ | 106 | $ | 31,993 | $ | 133,564 |
(1)
|
Total dollar balances are presented in this table; however, these loans are covered by the loss-share agreement with the FDIC. TNB is at risk for only 20% of the losses incurred on these loans.
|
December 31, 2011
|
||||||||||||||||||||||||
Commercial Loans
|
||||||||||||||||||||||||
Pass -
|
Special Mention -
|
Substandard -
|
Doubtful -
|
|||||||||||||||||||||
Categories 1-6
|
Category 7
|
Category 8
|
Category 9
|
Subtotal
|
||||||||||||||||||||
Covered Loans:
(1)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 1,212 | $ | 194 | $ | 1,425 | $ | 909 | $ | 3,740 | ||||||||||||||
Secured by 1-4 family residential properties
|
6,402 | 1,256 | 1,943 | 19 | 9,620 | |||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
13,302 | 5,275 | 8,932 | 2,134 | 29,643 | |||||||||||||||||||
Other
|
878 | 429 | 658 | 86 | 2,051 | |||||||||||||||||||
Commercial and industrial loans
|
1,780 | 1,109 | 82 | - | 2,971 | |||||||||||||||||||
Consumer loans
|
- | - | - | - | - | |||||||||||||||||||
Other loans
|
212 | 63 | 402 | 535 | 1,212 | |||||||||||||||||||
Total covered loans
|
23,786 | 8,326 | 13,442 | 3,683 | 49,237 | |||||||||||||||||||
Noncovered loans:
(2)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
- | - | - | - | - | |||||||||||||||||||
Secured by 1-4 family residential properties
|
- | - | - | - | - | |||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
- | - | - | - | - | |||||||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||||||
Commercial and industrial loans
|
27 | - | 42 | - | 69 | |||||||||||||||||||
Consumer loans
|
- | - | - | - | - | |||||||||||||||||||
Other loans
|
(3 | ) | - | - | - | (3 | ) | |||||||||||||||||
Total noncovered loans
|
24 | - | 42 | - | 66 | |||||||||||||||||||
Total acquired loans
|
$ | 23,810 | $ | 8,326 | $ | 13,484 | $ | 3,683 | $ | 49,303 | ||||||||||||||
Consumer Loans
|
||||||||||||||||||||||||
Past Due
|
Past Due Greater
|
Total
|
||||||||||||||||||||||
Current
|
30-89 Days
|
Than 90 Days
|
Nonaccrual
|
Subtotal
|
Acquired Loans
|
|||||||||||||||||||
Covered Loans:
(1)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 448 | $ | 18 | $ | 3 | $ | - | $ | 469 | $ | 4,209 | ||||||||||||
Secured by 1-4 family residential properties
|
19,159 | 1,044 | 2,013 | 38 | 22,254 | 31,874 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
1,246 | - | - | - | 1,246 | 30,889 | ||||||||||||||||||
Other
|
2,953 | 108 | 14 | - | 3,075 | 5,126 | ||||||||||||||||||
Commercial and industrial loans
|
- | - | - | - | - | 2,971 | ||||||||||||||||||
Consumer loans
|
290 | - | - | - | 290 | 290 | ||||||||||||||||||
Other loans
|
230 | 3 | - | - | 233 | 1,445 | ||||||||||||||||||
Total covered loans
|
24,326 | 1,173 | 2,030 | 38 | 27,567 | 76,804 | ||||||||||||||||||
Noncovered loans:
(2)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
- | - | - | - | - | - | ||||||||||||||||||
Secured by 1-4 family residential properties
|
71 | 5 | - | - | 76 | 76 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
- | - | - | - | - | - | ||||||||||||||||||
Other
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial and industrial loans
|
- | - | - | - | - | 69 | ||||||||||||||||||
Consumer loans
|
3,943 | 202 | 1 | - | 4,146 | 4,146 | ||||||||||||||||||
Other loans
|
75 | - | - | - | 75 | 72 | ||||||||||||||||||
Total noncovered loans
|
4,089 | 207 | 1 | - | 4,297 | 4,363 | ||||||||||||||||||
Total acquired loans
|
$ | 28,415 | $ | 1,380 | $ | 2,031 | $ | 38 | $ | 31,864 | $ | 81,167 |
(1)
|
Total dollar balances are presented in this table; however, these loans are covered by the loss-share agreement with the FDIC. TNB is at risk for only 20% of the losses incurred on these loans.
|
(2)
|
Acquired noncovered loans were included in LHFI at December 31, 2011.
|
December 31, 2012
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
Greater than
|
Current
|
Total Acquired
|
||||||||||||||||||||||
30-89 Days
|
90 Days
(1)
|
Total
|
Nonaccrual
(2)
|
Loans
|
Loans
|
|||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 240 | $ | 246 | $ | 486 | $ | 445 | $ | 2,993 | $ | 3,924 | ||||||||||||
Secured by 1-4 family residential properties
|
1,705 | 1,883 | 3,588 | 234 | 20,168 | 23,990 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
3,953 | 1,539 | 5,492 | - | 12,915 | 18,407 | ||||||||||||||||||
Other
|
221 | 52 | 273 | 9 | 3,285 | 3,567 | ||||||||||||||||||
Commercial and industrial loans
|
94 | 4 | 98 | 39 | 610 | 747 | ||||||||||||||||||
Consumer loans
|
- | - | - | - | 177 | 177 | ||||||||||||||||||
Other loans
|
- | - | - | - | 1,229 | 1,229 | ||||||||||||||||||
Total past due covered loans
|
6,213 | 3,724 | 9,937 | 727 | 41,377 | 52,041 | ||||||||||||||||||
Noncovered loans:
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
- | 3,622 | 3,622 | - | 6,434 | 10,056 | ||||||||||||||||||
Secured by 1-4 family residential properties
|
458 | 1,392 | 1,850 | 243 | 17,311 | 19,404 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
3,526 | 1,217 | 4,743 | 133 | 40,773 | 45,649 | ||||||||||||||||||
Other
|
30 | 44 | 74 | - | 595 | 669 | ||||||||||||||||||
Commercial and industrial loans
|
217 | 23 | 240 | - | 2,795 | 3,035 | ||||||||||||||||||
Consumer loans
|
164 | 52 | 216 | - | 2,394 | 2,610 | ||||||||||||||||||
Other loans
|
- | - | - | - | 100 | 100 | ||||||||||||||||||
Total past due noncovered loans
|
4,395 | 6,350 | 10,745 | 376 | 70,402 | 81,523 | ||||||||||||||||||
Total past due acquired loans
|
$ | 10,608 | $ | 10,074 | $ | 20,682 | $ | 1,103 | $ | 111,779 | $ | 133,564 |
December 31, 2011
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
Greater than
|
Current
|
Total Acquired
|
||||||||||||||||||||||
30-89 Days
|
90 Days
(1)
|
Total
|
Nonaccrual
(2)
|
Loans
|
Loans
|
|||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
$ | 253 | $ | 1,004 | $ | 1,257 | $ | 386 | $ | 2,566 | $ | 4,209 | ||||||||||||
Secured by 1-4 family residential properties
|
1,339 | 2,159 | 3,498 | 92 | 28,284 | 31,874 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
4,464 | 2,463 | 6,927 | - | 23,962 | 30,889 | ||||||||||||||||||
Other
|
176 | 14 | 190 | - | 4,936 | 5,126 | ||||||||||||||||||
Commercial and industrial loans
|
37 | 45 | 82 | 13 | 2,876 | 2,971 | ||||||||||||||||||
Consumer loans
|
- | - | - | - | 290 | 290 | ||||||||||||||||||
Other loans
|
3 | - | 3 | - | 1,442 | 1,445 | ||||||||||||||||||
Total past due covered loans
|
6,272 | 5,685 | 11,957 | 491 | 64,356 | 76,804 | ||||||||||||||||||
Noncovered loans:
(3)
|
||||||||||||||||||||||||
Loans secured by real estate:
|
||||||||||||||||||||||||
Construction, land development and other land loans
|
- | - | - | - | - | - | ||||||||||||||||||
Secured by 1-4 family residential properties
|
5 | - | 5 | - | 71 | 76 | ||||||||||||||||||
Secured by nonfarm, nonresidential properties
|
- | - | - | - | - | - | ||||||||||||||||||
Other
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial and industrial loans
|
19 | - | 19 | - | 50 | 69 | ||||||||||||||||||
Consumer loans
|
202 | 2 | 204 | - | 3,942 | 4,146 | ||||||||||||||||||
Other loans
|
- | - | - | - | 72 | 72 | ||||||||||||||||||
Total past due noncovered loans
|
226 | 2 | 228 | - | 4,135 | 4,363 | ||||||||||||||||||
Total past due acquired loans
|
$ | 6,498 | $ | 5,687 | $ | 12,185 | $ | 491 | $ | 68,491 | $ | 81,167 |
2012
|
2011
|
|||||||
Land
|
$ | 40,327 | $ | 39,724 | ||||
Buildings and leasehold improvements
|
163,638 | 155,506 | ||||||
Furniture and equipment
|
142,771 | 127,762 | ||||||
Total cost of premises and equipment
|
346,736 | 322,992 | ||||||
Less accumulated depreciation and amortization
|
191,895 | 180,410 | ||||||
Premises and equipment, net
|
$ | 154,841 | $ | 142,582 |
2012
|
2011
|
|||||||
Balance at beginning of period
|
$ | 43,274 | $ | 51,151 | ||||
Origination of servicing assets
|
23,253 | 14,160 | ||||||
Change in fair value:
|
||||||||
Due to market changes
|
(9,378 | ) | (15,130 | ) | ||||
Due to runoff
|
(9,808 | ) | (6,907 | ) | ||||
Balance at end of period
|
$ | 47,341 | $ | 43,274 |
General
|
||||||||||||
Banking
|
Insurance
|
Total
|
||||||||||
Balance as of December 31, 2012 and 2011
|
$ | 246,736 | $ | 44,368 | $ | 291,104 |
2012
|
2011
|
|||||||||||||||||||||||
Gross Carrying
|
Accumulated
|
Net Carrying
|
Gross Carrying
|
Accumulated
|
Net Carrying
|
|||||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
|||||||||||||||||||
Core deposit intangibles
|
$ | 52,327 | $ | 38,532 | $ | 13,795 | $ | 45,309 | $ | 35,730 | $ | 9,579 | ||||||||||||
Insurance intangibles
|
11,693 | 9,188 | 2,505 | 11,693 | 8,330 | 3,363 | ||||||||||||||||||
Banking charters
|
1,325 | 612 | 713 | 1,325 | 546 | 779 | ||||||||||||||||||
Borrower relationship intangible
|
690 | 397 | 293 | 690 | 335 | 355 | ||||||||||||||||||
Total
|
$ | 66,035 | $ | 48,729 | $ | 17,306 | $ | 59,017 | $ | 44,941 | $ | 14,076 |
2012
|
||||||||
Remaining
|
||||||||
Weighted-
|
||||||||
Average
|
||||||||
Net Carrying
|
Amortization
|
|||||||
Amount
|
Period in Years
|
|||||||
Core deposit intangibles
|
$ | 13,795 | 7.8 | |||||
Insurance intangibles
|
2,505 | 6.1 | ||||||
Banking charters
|
713 | 10.7 | ||||||
Borrower relationship intangible
|
293 | 4.7 | ||||||
Total
|
$ | 17,306 | 7.6 |
2012
|
2011
|
2010
|
||||||||||
Balance at beginning of period
|
$ | 79,053 | $ | 86,704 | $ | 90,095 | ||||||
Additions
|
38,894 | 56,929 | 61,786 | |||||||||
Disposals
|
(33,155 | ) | (50,724 | ) | (48,050 | ) | ||||||
Writedowns
|
(6,603 | ) | (13,856 | ) | (17,127 | ) | ||||||
Balance at end of period
|
$ | 78,189 | $ | 79,053 | $ | 86,704 | ||||||
(Loss) gain, net on the sale of noncovered
other real estate included in ORE/Foreclosure expense
|
$ | (279 | ) | $ | 1,605 | $ | (31 | ) |
2012
|
2011
|
|||||||
Construction, land development and other land properties
|
$ | 46,957 | $ | 53,834 | ||||
1-4 family residential properties
|
8,134 | 10,557 | ||||||
Nonfarm, nonresidential properties
|
22,760 | 13,883 | ||||||
Other real estate properties
|
338 | 779 | ||||||
Total other real estate, excluding covered other real estate
|
$ | 78,189 | $ | 79,053 |
2012
|
2011
|
|||||||
Florida
|
$ | 18,569 | $ | 29,963 | ||||
Mississippi
(1)
|
27,771 | 19,483 | ||||||
Tennessee
(2)
|
17,589 | 16,879 | ||||||
Texas
|
14,260 | 12,728 | ||||||
Total other real estate, excluding covered other real estate
|
$ | 78,189 | $ | 79,053 |
2012
|
2011
|
|||||||
Balance at beginning of period
|
$ | 6,331 | $ | - | ||||
Covered other real estate acquired
|
- | 7,485 | ||||||
Transfers from covered loans
|
1,424 | 632 | ||||||
FASB ASC 310-30 adjustment for the residual recorded investment
|
(112 | ) | (264 | ) | ||||
Net transfers from covered loans
|
1,312 | 368 | ||||||
Disposals
|
(1,631 | ) | (1,489 | ) | ||||
Writedowns
|
(271 | ) | (33 | ) | ||||
Balance at end of period
|
$ | 5,741 | $ | 6,331 | ||||
Gain, net on the sale of covered
|
||||||||
other real estate included in ORE/Foreclosure expenses
|
$ | 485 | $ | 286 |
2012
|
2011
|
|||||||
Construction, land development and other land properties
|
$ | 1,284 | $ | 1,304 | ||||
1-4 family residential properties
|
1,306 | 889 | ||||||
Nonfarm, nonresidential properties
|
3,151 | 4,022 | ||||||
Other real estate properties
|
- | 116 | ||||||
Total covered other real estate
|
$ | 5,741 | $ | 6,331 |
Balance at January 1, 2011
|
$ | - | ||
Additions from acquisition
|
33,333 | |||
Accretion
|
185 | |||
Loss-share payments received from FDIC
|
(986 | ) | ||
Change in expected cash flows
(1)
|
(4,157 | ) | ||
Change in FDIC true-up provision
|
(27 | ) | ||
Balance at December 31, 2011
|
$ | 28,348 | ||
Accretion
|
245 | |||
Transfers to FDIC claims receivable
|
(2,544 | ) | ||
Change in expected cash flows
(1)
|
(3,761 | ) | ||
Change in FDIC true-up provision
|
(514 | ) | ||
Balance at December 31, 2012
|
$ | 21,774 |
2012
|
2011
|
|||||||
Noninterest-bearing demand deposits
|
$ | 2,254,211 | $ | 2,033,442 | ||||
Interest-bearing demand
|
1,481,182 | 1,463,640 | ||||||
Savings
|
2,322,280 | 2,051,701 | ||||||
Time
|
1,838,844 | 2,017,580 | ||||||
Total
|
$ | 7,896,517 | $ | 7,566,363 |
2012
|
2011
|
2010
|
||||||||||
Interest-bearing demand
|
$ | 3,975 | $ | 7,077 | $ | 8,621 | ||||||
Savings
|
6,004 | 8,144 | 8,479 | |||||||||
Time
|
14,625 | 21,073 | 31,557 | |||||||||
Total
|
$ | 24,604 | $ | 36,294 | $ | 48,657 |
2012
|
2011
|
|||||||
3 months or less
|
$ | 161,806 | $ | 217,577 | ||||
Over 3 months through 6 months
|
142,026 | 177,519 | ||||||
Over 6 months through 12 months
|
221,056 | 256,773 | ||||||
Over 12 months
|
208,600 | 166,658 | ||||||
Total
|
$ | 733,488 | $ | 818,527 |
2013
|
$ | 1,347,371 | ||
2014
|
370,471 | |||
2015
|
63,522 | |||
2016
|
21,424 | |||
2017 and thereafter
|
36,056 | |||
Total time deposits
|
1,838,844 | |||
Interest-bearing deposits with no stated maturity
|
3,803,462 | |||
Total interest-bearing deposits
|
$ | 5,642,306 |
2012
|
2011
|
|||||||
FHLB advances
|
$ | - | $ | 2,579 | ||||
Serviced GNMA loans eligible for repurchase
|
59,775 | 58,842 | ||||||
Other
|
27,145 | 26,207 | ||||||
Total short-term borrowings
|
$ | 86,920 | $ | 87,628 |
Current
|
2012
|
2011
|
2010
|
|||||||||
Federal
|
$ | 48,186 | $ | 46,749 | $ | 43,806 | ||||||
State
|
2,366 | 4,712 | 4,702 | |||||||||
Deferred
|
||||||||||||
Federal
|
(7,349 | ) | (8,414 | ) | (5,558 | ) | ||||||
State
|
(1,103 | ) | (1,269 | ) | (831 | ) | ||||||
Income tax provision
|
$ | 42,100 | $ | 41,778 | $ | 42,119 |
2012
|
2011
|
2010
|
||||||||||
Income tax computed at statutory tax rate
|
$ | 55,784 | $ | 52,017 | $ | 49,964 | ||||||
Tax exempt interest
|
(5,150 | ) | (5,244 | ) | (5,115 | ) | ||||||
Nondeductible interest expense
|
144 | 153 | 181 | |||||||||
State income taxes, net
|
821 | 2,238 | 2,517 | |||||||||
Income tax credits
|
(9,255 | ) | (7,633 | ) | (6,729 | ) | ||||||
Other
|
(244 | ) | 247 | 1,301 | ||||||||
Income tax provision
|
$ | 42,100 | $ | 41,778 | $ | 42,119 |
Deferred tax assets
|
2012
|
2011
|
||||||
Pension and other postretirement benefit plans
|
$ | 32,507 | $ | 31,606 | ||||
Allowance for loan losses
|
32,441 | 34,433 | ||||||
Other real estate
|
30,001 | 25,113 | ||||||
Loan purchase accounting
|
7,020 | - | ||||||
Deferred compensation
|
5,055 | 4,519 | ||||||
Stock-based compensation
|
4,723 | 5,387 | ||||||
Other
|
13,203 | 11,094 | ||||||
Gross deferred tax asset
|
124,950 | 112,152 | ||||||
Deferred tax liabilities
|
||||||||
Unrealized gains on securities available for sale
|
27,834 | 28,202 | ||||||
Goodwill and other identifiable intangibles
|
18,707 | 15,871 | ||||||
Premises and equipment
|
17,339 | 15,336 | ||||||
Securities
|
2,055 | 2,167 | ||||||
Mortgage servicing rights
|
1,737 | 2,925 | ||||||
Other
|
2,276 | 3,485 | ||||||
Gross deferred tax liability
|
69,948 | 67,986 | ||||||
Net deferred tax asset
|
$ | 55,002 | $ | 44,166 |
Balance at January 1, 2012
|
$ | 1,164 | ||
Increases due to tax positions taken during the current year
|
226 | |||
Increases due to tax positions taken during a prior year
|
676 | |||
Decreases due to tax positions taken during a prior year
|
(41 | ) | ||
Decreases due to the lapse of applicable statute of limitations during the current year
|
(161 | ) | ||
Balance at December 31, 2012
|
$ | 1,864 | ||
Accrued interest, net of federal benefit, at December 31, 2012
|
$ | 517 | ||
Unrecognized tax benefits that would impact the effective tax rate, if recognized, at December 31, 2012
|
$ | 1,250 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Change in benefit obligation
|
||||||||
Benefit obligation, beginning of year
|
$ | 100,556 | $ | 94,136 | ||||
Service cost
|
547 | 522 | ||||||
Interest cost
|
3,942 | 4,460 | ||||||
Actuarial loss
|
4,559 | 7,620 | ||||||
Benefits paid
|
(6,369 | ) | (6,182 | ) | ||||
Benefit obligation, end of year
|
$ | 103,235 | $ | 100,556 | ||||
Change in plan assets
|
||||||||
Fair value of plan assets, beginning of year
|
$ | 72,304 | $ | 77,764 | ||||
Actual return on plan assets
|
9,178 | (331 | ) | |||||
Employer contributions
|
1,547 | 1,053 | ||||||
Benefit payments
|
(6,369 | ) | (6,182 | ) | ||||
Fair value of plan assets, end of year
|
$ | 76,660 | $ | 72,304 | ||||
Funded status at end of year - net liability
|
$ | (26,575 | ) | $ | (28,252 | ) | ||
Amounts recognized in accumulated other comprehensive income (loss)
|
||||||||
Net loss - amount recognized
|
$ | 45,178 | $ | 49,040 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net periodic benefit cost
|
||||||||||||
Service cost
|
$ | 547 | $ | 522 | $ | 550 | ||||||
Interest cost
|
3,942 | 4,460 | 4,777 | |||||||||
Expected return on plan assets
|
(5,983 | ) | (5,882 | ) | (5,926 | ) | ||||||
Recognized net actuarial loss
|
5,225 | 4,127 | 3,397 | |||||||||
Net periodic benefit cost
|
$ | 3,731 | $ | 3,227 | $ | 2,798 | ||||||
Other changes in plan assets and benefit obligation
recognized in other comprehensive income (loss), before taxes
|
||||||||||||
Net (gain) loss - Total recognized in other comprehensive income (loss)
|
$ | (3,861 | ) | $ | 9,707 | $ | (4,035 | ) | ||||
Total recognized in net periodic benefit cost and other comprehensive income (loss)
|
$ | (130 | ) | $ | 12,934 | $ | (1,237 | ) | ||||
Weighted-average assumptions as of end of year
|
||||||||||||
Discount rate for benefit obligation
|
3.50 | % | 4.00 | % | 5.05 | % | ||||||
Discount rate for net periodic benefit cost
|
4.00 | % | 5.05 | % | 5.50 | % | ||||||
Expected long-term return on plan assets
|
8.00 | % | 8.00 | % | 8.00 | % | ||||||
Rate of compensation increase
|
3.00 | % | 3.00 | % | 4.00 | % |
2012
|
2011
|
|||||||
Money market fund
|
1.3 | % | 3.0 | % | ||||
Fixed income mutual funds
|
19.8 | % | 19.9 | % | ||||
Equity mutual funds
|
63.2 | % | 70.4 | % | ||||
Equity securities
|
15.5 | % | 6.3 | % | ||||
Fixed income hedge fund
|
0.2 | % | 0.4 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2012
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Money market fund
|
$ | 1,028 | $ | - | $ | 1,028 | $ | - | ||||||||
Fixed income mutual funds
|
15,145 | 15,145 | - | - | ||||||||||||
Equity mutual funds
|
48,414 | 48,414 | - | - | ||||||||||||
Equity securities
|
11,910 | 11,910 | - | - | ||||||||||||
Fixed income hedge fund
|
163 | - | - | 163 | ||||||||||||
Total assets at fair value
|
$ | 76,660 | $ | 75,469 | $ | 1,028 | $ | 163 |
December 31, 2011
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Money market fund
|
$ | 2,189 | $ | - | $ | 2,189 | $ | - | ||||||||
Fixed income mutual funds
|
14,422 | 14,422 | - | - | ||||||||||||
Equity mutual funds
|
50,886 | 50,886 | - | - | ||||||||||||
Equity securities
|
4,506 | 4,506 | - | - | ||||||||||||
Fixed income hedge fund
|
301 | - | - | 301 | ||||||||||||
Total assets at fair value
|
$ | 72,304 | $ | 69,814 | $ | 2,189 | $ | 301 |
Fixed Income Hedge Fund
|
||||
Balance, January 1, 2011
|
$ | 597 | ||
Sales, net
|
(373 | ) | ||
Net losses included in plan
|
(8 | ) | ||
Change in fair value
|
85 | |||
Balance, December 31, 2011
|
301 | |||
Change in fair value
|
(138 | ) | ||
Balance, December 31, 2012
|
$ | 163 |
|
·
|
Money market fund approximates fair value due to its immediate maturity.
|
|
·
|
Fixed income hedge fund is valued in accordance with the valuation provided by the general partner of the underlying partnership.
|
Year
|
Amount
|
||||
2013
|
$ | 9,432 | |||
2014
|
8,176 | ||||
2015
|
7,850 | ||||
2016
|
7,143 | ||||
2017
|
7,110 | ||||
2018-2022
|
30,240 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Change in benefit obligation
|
||||||||
Benefit obligation, beginning of year
|
$ | 52,646 | $ | 45,433 | ||||
Service cost
|
679 | 589 | ||||||
Interest cost
|
2,067 | 2,276 | ||||||
Actuarial loss
|
3,368 | 5,831 | ||||||
Benefits paid
|
(2,339 | ) | (2,676 | ) | ||||
Prior service cost due to amendment
|
198 | 1,193 | ||||||
Benefit obligation, end of year
|
$ | 56,619 | $ | 52,646 | ||||
Change in plan assets
|
||||||||
Fair value of plan assets, beginning of year
|
$ | - | $ | - | ||||
Employer contributions
|
2,339 | 2,676 | ||||||
Benefit payments
|
(2,339 | ) | (2,676 | ) | ||||
Fair value of plan assets, end of year
|
$ | - | $ | - | ||||
Funded status at end of year - net liability
|
$ | (56,619 | ) | $ | (52,646 | ) | ||
Amounts recognized in accumulated other comprehensive income (loss)
|
||||||||
Net loss
|
$ | 19,733 | $ | 17,226 | ||||
Prior service cost
|
2,360 | 2,412 | ||||||
Amounts recognized
|
$ | 22,093 | $ | 19,638 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net periodic benefit cost
|
||||||||||||
Service cost
|
$ | 679 | $ | 589 | $ | 756 | ||||||
Interest cost
|
2,067 | 2,276 | 2,242 | |||||||||
Amortization of prior service cost
|
250 | 236 | 152 | |||||||||
Recognized net actuarial loss
|
861 | 495 | 355 | |||||||||
Net periodic benefit cost
|
$ | 3,857 | $ | 3,596 | $ | 3,505 | ||||||
Other changes in plan assets and benefit obligation recognized in other comprehensive income (loss), before taxes
|
||||||||||||
Net loss
|
$ | 2,507 | $ | 5,336 | $ | 2,272 | ||||||
Prior service cost
|
198 | 1,192 | 28 | |||||||||
Amortization of prior service cost
|
(250 | ) | (236 | ) | (152 | ) | ||||||
Total recognized in other comprehensive income (loss)
|
$ | 2,455 | $ | 6,292 | $ | 2,148 | ||||||
Total recognized in net periodic benefit cost and other comprehensive income (loss)
|
$ | 6,312 | $ | 9,888 | $ | 5,653 | ||||||
Weighted-average assumptions as of end of year
|
||||||||||||
Discount rate for benefit obligation
|
3.50 | % | 4.00 | % | 5.05 | % | ||||||
Discount rate for net periodic benefit cost
|
4.00 | % | 5.05 | % | 5.50 | % |
Year
|
Amount
|
||||
2013
|
$ | 2,599 | |||
2014
|
2,780 | ||||
2015
|
2,968 | ||||
2016
|
3,149 | ||||
2017
|
3,428 | ||||
2018 - 2022
|
18,335 |
2012
|
2011
|
2010
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||
Option
|
Option
|
Option
|
||||||||||||||||||||||
Options
|
Shares
|
Price
|
Shares
|
Price
|
Shares
|
Price
|
||||||||||||||||||
Outstanding, beginning of year
|
1,205,100 | $ | 27.31 | 1,311,925 | $ | 27.03 | 1,531,925 | $ | 26.27 | |||||||||||||||
Granted
|
- | - | - | - | - | - | ||||||||||||||||||
Exercised
|
(11,125 | ) | 24.09 | (69,525 | ) | 21.68 | (188,550 | ) | 20.65 | |||||||||||||||
Expired
|
(494,375 | ) | 27.01 | (36,000 | ) | 27.71 | (29,350 | ) | 28.22 | |||||||||||||||
Forfeited
|
- | - | (1,300 | ) | 31.55 | (2,100 | ) | 31.55 | ||||||||||||||||
Outstanding, end of year
|
699,600 | 27.58 | 1,205,100 | 27.31 | 1,311,925 | 27.03 | ||||||||||||||||||
Exercisable, end of year
|
699,600 | 27.58 | 1,205,100 | 27.31 | 1,270,085 | 26.88 | ||||||||||||||||||
Aggregate Intrinsic Value
|
||||||||||||||||||||||||
Outstanding, end of year
|
$ | - | $ | 44,365 | $ | 394,341 | ||||||||||||||||||
Exercisable, end of year
|
$ | - | $ | 44,365 | $ | 394,341 |
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
|
2012
|
To Expiration
|
Price
|
2012
|
To Expiration
|
Price
|
|||||||||||||||||||
$22.64 - $25.88 | 205,700 | 0.3 | $ | 24.10 | 205,700 | 0.3 | $ | 24.10 | |||||||||||||||||
$25.88 - $29.11 | 288,200 | 1.2 | 27.26 | 288,200 | 1.2 | 27.26 | |||||||||||||||||||
$29.11 - $32.35 | 205,700 | 0.4 | 31.49 | 205,700 | 0.4 | 31.49 | |||||||||||||||||||
699,600 | 0.7 | 27.58 | 699,600 | 0.7 | 27.58 |
2012
|
2011
|
2010
|
||||||||||||||||||||||
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
|
179,421 | $ | 20.30 | 210,797 | $ | 20.30 | 229,227 | $ | 25.52 | |||||||||||||||
Granted
|
55,295 | 25.66 | 53,863 | 25.40 | 55,787 | 23.05 | ||||||||||||||||||
Released from restriction
|
(72,632 | ) | 21.38 | (84,338 | ) | 20.00 | (73,862 | ) | 27.68 | |||||||||||||||
Forfeited
|
(2,501 | ) | 24.70 | (901 | ) | 23.82 | (355 | ) | 25.30 | |||||||||||||||
Nonvested shares, end of year
|
159,583 | 24.26 | 179,421 | 20.30 | 210,797 | 20.30 |
2012
|
2011
|
2010
|
||||||||||||||||||||||
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
|
334,356 | $ | 21.04 | 343,469 | $ | 20.33 | 291,999 | $ | 25.50 | |||||||||||||||
Granted
|
141,616 | 24.66 | 157,178 | 24.15 | 146,605 | 22.44 | ||||||||||||||||||
Released from restriction
|
(151,331 | ) | 23.14 | (160,447 | ) | 20.46 | (90,372 | ) | 23.91 | |||||||||||||||
Forfeited
|
(7,068 | ) | 24.14 | (5,844 | ) | 20.17 | (4,763 | ) | 20.52 | |||||||||||||||
Nonvested shares, end of year
|
317,573 | 23.28 | 334,356 | 21.04 | 343,469 | 20.33 |
Weighted
|
||||||||||||||||||||
Average Life
|
||||||||||||||||||||
Recognized Compensation Expense
|
Unrecognized
|
of Unrecognized
|
||||||||||||||||||
for Years Ended December 31,
|
Compensation
|
Compensation
|
||||||||||||||||||
2012
|
2011
|
2010
|
Expense
|
Expense
|
||||||||||||||||
Stock option-based awards
|
$ | - | $ | 100 | $ | 430 | $ | - | - | |||||||||||
Performance awards
|
868 | 855 | 1,004 | 908 | 1.68 | |||||||||||||||
Time-vested awards
|
3,105 | 2,835 | 3,390 | 4,740 | 2.93 | |||||||||||||||
RSU award
|
- | 184 | 696 | - | - | |||||||||||||||
Total stock and incentive plan compensation expense
|
$ | 3,973 | $ | 3,974 | $ | 5,520 | $ | 5,648 |
Year
|
Amount
|
||||
2013
|
$ | 6,482 | |||
2014
|
5,687 | ||||
2015
|
4,489 | ||||
2016
|
2,279 | ||||
2017
|
2,050 | ||||
Thereafter
|
7,275 | ||||
Total
|
$ | 28,262 |
Minimum Regulatory
|
||||||||||||||||||||||||
Actual
|
Minimum Regulatory
|
Provision to be
|
||||||||||||||||||||||
Regulatory Capital
|
Capital Required
|
Well-Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
At December 31, 2012:
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,157,838 | 17.22 | % | $ | 537,861 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,119,438 | 16.85 | % | 531,577 | 8.00 | % | $ | 664,472 | 10.00 | % | ||||||||||||||
Tier 1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,043,865 | 15.53 | % | $ | 268,930 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,007,775 | 15.17 | % | 265,789 | 4.00 | % | $ | 398,683 | 6.00 | % | ||||||||||||||
Tier 1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,043,865 | 10.97 | % | $ | 285,556 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,007,775 | 10.72 | % | 281,984 | 3.00 | % | $ | 469,974 | 5.00 | % | ||||||||||||||
At December 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 1,096,213 | 16.67 | % | $ | 526,156 | 8.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
1,057,932 | 16.28 | % | 519,709 | 8.00 | % | $ | 649,636 | 10.00 | % | ||||||||||||||
Tier 1 Capital (to Risk Weighted Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 974,034 | 14.81 | % | $ | 263,078 | 4.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
938,122 | 14.44 | % | 259,855 | 4.00 | % | $ | 389,782 | 6.00 | % | ||||||||||||||
Tier 1 Capital (to Average Assets)
|
||||||||||||||||||||||||
Trustmark Corporation
|
$ | 974,034 | 10.43 | % | $ | 280,162 | 3.00 | % | n/a | n/a | ||||||||||||||
Trustmark National Bank
|
938,122 | 10.18 | % | 276,502 | 3.00 | % | $ | 460,837 | 5.00 | % |
Accumulated
|
||||||||||||
Other
|
||||||||||||
Comprehensive
|
||||||||||||
Before-Tax
|
Tax
|
Income
|
||||||||||
Amount
|
Effect
|
(Loss)
|
||||||||||
Balance, January 1, 2010
|
$ | (2,596 | ) | $ | 972 | $ | (1,624 | ) | ||||
Unrealized gains on available for sale securities:
|
||||||||||||
Unrealized holding losses arising during period
|
(15,431 | ) | 5,902 | (9,529 | ) | |||||||
Less: adjustment for net gains realized in net income
|
(2,329 | ) | 891 | (1,438 | ) | |||||||
Pension and other postretirement benefit plans:
|
||||||||||||
Net change in prior service cost arising during the period
|
123 | (47 | ) | 76 | ||||||||
Net decrease in loss arising during the period
|
1,764 | (675 | ) | 1,089 | ||||||||
Balance, December 31, 2010
|
(18,469 | ) | 7,043 | (11,426 | ) | |||||||
Unrealized gains on available for sale securities:
|
||||||||||||
Unrealized holding gains arising during period
|
39,636 | (15,161 | ) | 24,475 | ||||||||
Less: adjustment for net gains realized in net income
|
(80 | ) | 31 | (49 | ) | |||||||
Pension and other postretirement benefit plans:
|
||||||||||||
Net change in prior service cost arising during the period
|
(957 | ) | 366 | (591 | ) | |||||||
Net increase in loss arising during the period
|
(15,041 | ) | 5,753 | (9,288 | ) | |||||||
Balance, December 31, 2011
|
5,089 | (1,968 | ) | 3,121 | ||||||||
Unrealized gains on available for sale securities:
|
||||||||||||
Unrealized holding gains arising during period
|
97 | (37 | ) | 60 | ||||||||
Less: adjustment for net gains realized in net income
|
(1,059 | ) | 405 | (654 | ) | |||||||
Pension and other postretirement benefit plans:
|
||||||||||||
Net change in prior service cost arising during the period
|
52 | (20 | ) | 32 | ||||||||
Net decrease in loss arising during the period
|
1,354 | (518 | ) | 836 | ||||||||
Balance, December 31, 2012
|
$ | 5,533 | $ | (2,138 | ) | $ | 3,395 |
December 31, 2012
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
U.S. Government agency obligations
|
$ | 105,745 | $ | - | $ | 105,745 | $ | - | ||||||||
Obligations of states and political subdivisions
|
215,761 | - | 215,761 | - | ||||||||||||
Mortgage-backed securities
|
2,094,612 | - | 2,094,612 | - | ||||||||||||
Asset-back securities
|
241,627 | - | 241,627 | - | ||||||||||||
Securities available for sale
|
2,657,745 | - | 2,657,745 | - | ||||||||||||
Loans held for sale
|
257,986 | - | 257,986 | - | ||||||||||||
Mortgage servicing rights
|
47,341 | - | - | 47,341 | ||||||||||||
Other assets - derivatives
|
7,107 | (440 | ) | 5,263 | 2,284 | |||||||||||
Other liabilities - derivatives
|
6,612 | 545 | 6,067 | - |
December 31, 2011
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
U.S. Government agency obligations
|
$ | 64,805 | $ | - | $ | 64,805 | $ | - | ||||||||
Obligations of states and political subdivisions
|
202,827 | - | 202,827 | - | ||||||||||||
Mortgage-backed securities
|
2,201,361 | - | 2,201,361 | - | ||||||||||||
Securities available for sale
|
2,468,993 | - | 2,468,993 | - | ||||||||||||
Loans held for sale
|
216,553 | - | 216,553 | - | ||||||||||||
Mortgage servicing rights
|
43,274 | - | - | 43,274 | ||||||||||||
Other assets - derivatives
|
3,521 | 1,130 | 1,689 | 702 | ||||||||||||
Other liabilities - derivatives
|
4,680 | 694 | 3,986 | - |
MSR
|
Other Assets - Derivatives
|
|||||||
Balance, January 1, 2011
|
$ | 51,151 | $ | 337 | ||||
Total net (losses) gains included in net income
(1)
|
(22,037 | ) | 3,968 | |||||
Additions
|
14,160 | - | ||||||
Sales
|
- | (3,603 | ) | |||||
Balance, December 31, 2011
|
43,274 | 702 | ||||||
Total net (losses) gains included in net income
(1)
|
(19,186 | ) | 13,441 | |||||
Additions
|
23,253 | - | ||||||
Sales
|
- | (11,859 | ) | |||||
Balance, December 31, 2012
|
$ | 47,341 | $ | 2,284 | ||||
The amount of total (losses) gains for the period included in
earnings that are attributable to the change in unrealized
gains or losses still held at December 31, 2012
|
$ | (9,378 | ) | $ | 2,317 |
2012
|
2011
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair Value
|
Value
|
Fair Value
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Level 2 Inputs:
|
||||||||||||||||
Cash and short-term investments
|
$ | 238,535 | $ | 238,535 | $ | 211,883 | $ | 211,883 | ||||||||
Securities held to maturity
|
42,188 | 46,888 | 57,705 | 62,515 | ||||||||||||
Level 3 Inputs:
|
||||||||||||||||
Net LHFI
|
5,514,016 | 5,619,933 | 5,767,966 | 5,848,791 | ||||||||||||
Net acquired loans
|
127,489 | 127,489 | 76,302 | 76,302 | ||||||||||||
FDIC indemnification asset
|
21,774 | 21,774 | 28,348 | 28,348 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Level 2 Inputs:
|
||||||||||||||||
Deposits
|
7,896,517 | 7,904,179 | 7,566,363 | 7,575,064 | ||||||||||||
Short-term liabilities
|
375,749 | 375,749 | 692,128 | 692,128 | ||||||||||||
Subordinated notes
|
49,871 | 53,980 | 49,839 | 51,438 | ||||||||||||
Junior subordinated debt securities
|
61,856 | 40,206 | 61,856 | 35,876 |
December 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Derivatives in hedging relationships
|
||||||||
Interest rate contracts:
|
||||||||
Forward contracts included in other liabilities
|
$ | 738 | $ | 2,217 | ||||
Derivatives not designated as hedging instruments
|
||||||||
Interest rate contracts:
|
||||||||
Futures contracts included in other assets
|
$ | (482 | ) | $ | 986 | |||
Exchange traded purchased options included in other assets
|
42 | 144 | ||||||
OTC written options (rate locks) included in other assets
|
2,284 | 702 | ||||||
Interest rate swaps included in other assets
|
5,241 | 1,689 | ||||||
Credit risk participation agreements included in other assets
|
22 | - | ||||||
Exchange traded written options included in other liabilities
|
545 | 694 | ||||||
Interest rate swaps included in other liabilities
|
5,329 | 1,769 |
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Derivatives in hedging relationships
|
||||||||||||
Amount of gain (loss) recognized in mortgage banking, net
|
$ | 1,479 | $ | (5,360 | ) | $ | 987 | |||||
Derivatives not designated as hedging instruments
|
||||||||||||
Amount of gain recognized in mortgage banking, net
|
$ | 7,585 | $ | 19,929 | $ | 16,655 | ||||||
Amount of loss recognized in bankcard and other fees
|
(82 | ) | (79 | ) | - |
Segment Information
|
|||||||||||||
($ in thousands)
|
|||||||||||||
Years Ended December 31,
|
|||||||||||||
2012
|
2011
|
2010
|
|||||||||||
General Banking
|
|||||||||||||
Net interest income
|
$ | 336,362 | $ | 344,415 | $ | 347,607 | |||||||
Provision for loan losses, net
|
12,188 | 30,185 | 49,551 | ||||||||||
Noninterest income
|
122,421 | 109,601 | 115,934 | ||||||||||
Noninterest expense
|
300,097 | 284,849 | 283,010 | ||||||||||
Income before income taxes
|
146,498 | 138,982 | 130,980 | ||||||||||
Income taxes
|
37,523 | 38,414 | 37,955 | ||||||||||
General banking net income
|
$ | 108,975 | $ | 100,568 | $ | 93,025 | |||||||
Selected Financial Information
|
|||||||||||||
Average assets
|
$ | 9,658,924 | $ | 9,436,557 | $ | 9,136,491 | |||||||
Depreciation and amortization
|
$ | 27,876 | $ | 23,640 | $ | 23,792 | |||||||
Wealth Management
|
|||||||||||||
Net interest income
|
$ | 4,327 | $ | 4,256 | $ | 4,174 | |||||||
Provision for loan losses, net
|
106 | 143 | (5 | ) | |||||||||
Noninterest income
|
24,565 | 23,300 | 22,243 | ||||||||||
Noninterest expense
|
23,053 | 23,300 | 20,459 | ||||||||||
Income before income taxes
|
5,733 | 4,113 | 5,963 | ||||||||||
Income taxes
|
1,910 | 1,303 | 1,988 | ||||||||||
Wealth Management net income
|
$ | 3,823 | $ | 2,810 | $ | 3,975 | |||||||
Selected Financial Information
|
|||||||||||||
Average assets
|
$ | 78,567 | $ | 81,472 | $ | 89,240 | |||||||
Depreciation and amortization
|
$ | 174 | $ | 209 | $ | 272 | |||||||
Insurance
|
|||||||||||||
Net interest income
|
$ | 301 | $ | 272 | $ | 242 | |||||||
Noninterest income
|
28,203 | 26,953 | 27,750 | ||||||||||
Noninterest expense
|
21,352 | 21,701 | 22,180 | ||||||||||
Income before income taxes
|
7,152 | 5,524 | 5,812 | ||||||||||
Income taxes
|
2,667 | 2,061 | 2,176 | ||||||||||
Insurance net income
|
$ | 4,485 | $ | 3,463 | $ | 3,636 | |||||||
Selected Financial Information
|
|||||||||||||
Average assets
|
$ | 65,560 | $ | 65,414 | $ | 66,096 | |||||||
Depreciation and amortization
|
$ | 1,225 | $ | 1,424 | $ | 1,582 | |||||||
Consolidated
|
|||||||||||||
Net interest income
|
$ | 340,990 | $ | 348,943 | $ | 352,023 | |||||||
Provision for loan losses, net
|
12,294 | 30,328 | 49,546 | ||||||||||
Noninterest income
|
175,189 | 159,854 | 165,927 | ||||||||||
Noninterest expense
|
344,502 | 329,850 | 325,649 | ||||||||||
Income before income taxes
|
159,383 | 148,619 | 142,755 | ||||||||||
Income taxes
|
42,100 | 41,778 | 42,119 | ||||||||||
Consolidated net income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 | |||||||
Selected Financial Information
|
|||||||||||||
Average assets
|
$ | 9,803,051 | $ | 9,583,443 | $ | 9,291,827 | |||||||
Depreciation and amortization
|
$ | 29,275 | $ | 25,273 | $ | 25,646 |
Condensed Balance Sheets
|
December 31,
|
|||||||
Assets:
|
2012
|
2011
|
||||||
Investment in banks
|
$ | 1,330,452 | $ | 1,257,982 | ||||
Other assets
|
19,608 | 20,071 | ||||||
Total Assets
|
$ | 1,350,060 | $ | 1,278,053 | ||||
Liabilities and Shareholders' Equity:
|
||||||||
Accrued expense
|
$ | 835 | $ | 1,160 | ||||
Junior subordinated debt securities
|
61,856 | 61,856 | ||||||
Shareholders' equity
|
1,287,369 | 1,215,037 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 1,350,060 | $ | 1,278,053 |
Condensed Statements of Income
|
Years Ended December 31,
|
|||||||||||
Revenue:
|
2012
|
2011
|
2010
|
|||||||||
Dividends received from banks
|
$ | 72,216 | $ | 61,138 | $ | 61,843 | ||||||
Earnings of subsidiaries over distributions
|
46,220 | 46,818 | 40,036 | |||||||||
Other income
|
59 | 54 | 68 | |||||||||
Total Revenue
|
118,495 | 108,010 | 101,947 | |||||||||
Expense:
|
||||||||||||
Other expense
|
1,212 | 1,169 | 1,311 | |||||||||
Total Expense
|
1,212 | 1,169 | 1,311 | |||||||||
Net Income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 |
Condensed Statements of Cash Flows
|
Years Ended December 31,
|
|||||||||||
Operating Activities:
|
2012
|
2011
|
2010
|
|||||||||
Net income
|
$ | 117,283 | $ | 106,841 | $ | 100,636 | ||||||
Adjustments to reconcile net income to net cash provided by
operating activities:
|
||||||||||||
Increase in investment in subsidiaries
|
(46,220 | ) | (46,818 | ) | (40,036 | ) | ||||||
Other
|
(376 | ) | 268 | (252 | ) | |||||||
Net cash provided by operating activities
|
70,687 | 60,291 | 60,348 | |||||||||
Investing Activities:
|
||||||||||||
Payment for investments in subsidiaries
|
(10,003 | ) | - | - | ||||||||
Repayment for investments in subsidiaries
|
- | - | 248 | |||||||||
Net cash (used in) provided by investing activities
|
(10,003 | ) | - | 248 | ||||||||
Financing Activities:
|
||||||||||||
Repayments of advances from subsidiaries
|
- | - | (8,248 | ) | ||||||||
Cash dividends paid on common stock
|
(59,961 | ) | (59,485 | ) | (59,302 | ) | ||||||
Other common stock transactions, net
|
(1,237 | ) | (141 | ) | 3,128 | |||||||
Other, net
|
- | - | (60 | ) | ||||||||
Net cash used in financing activities
|
(61,198 | ) | (59,626 | ) | (64,482 | ) | ||||||
(Decrease) increase in cash and cash equivalents
|
(514 | ) | 665 | (3,886 | ) | |||||||
Cash and cash equivalents at beginning of year
|
18,170 | 17,505 | 21,391 | |||||||||
Cash and cash equivalents at end of year
|
$ | 17,656 | $ | 18,170 | $ | 17,505 |
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
|
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)
(1)
|
Weighted-average exercise price of outstanding options, warrants and rights
(2)
|
Number of securities remaining available for future issuance under equity compensations plans (excluding securities reflected in column (a))
(3)
|
|||||||||
Equity compensation plans
approved by security holders
|
859,183 | $ | 27.58 | 5,425,091 | ||||||||
Equity compensation plans
not approved by security holders
|
- | - | - | |||||||||
Total
|
859,183 | $ | 27.58 | 5,425,091 |
(1)-
|
Includes shares issuable pursuant to outstanding options and the maximum potential excess shares issuable in the event currently unvested performance-based restricted stock awards vest in excess of 100%.
|
(2)-
|
Potential excess shares, to the extent issued, do not have an exercise price and are, therefore, excluded for purposes of computing the weighted-average exercise price.
|
(3)-
|
Consists of shares available to be granted in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and/or performance units.
|
ITEM
13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM
14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
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.
|
|
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.
|
|
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.
|
|
10-p
|
Revised Form of Restricted Stock Agreement (under the 2005 Stock and Incentive Compensation Plan). Filed February 26, 2009, as Exhibit 10-p to Trustmark’s Annual Report on Form 10-K, incorporated herein by reference.
|
|
10-q
|
Revised Form of Time-Based Restricted Stock Agreement for Executive (under the 2005 Stock and Incentive Compensation Plan). Filed February 26, 2009, as Exhibit 10-q to Trustmark’s Annual Report on Form 10-K, incorporated herein by reference.
|
|
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-v
|
Cash-Settled Performance-Based Restricted Stock Unit Award Agreement between Trustmark and Rickard G. Hickson dated January 27, 2009. Filed February 26, 2009, as Exhibit 10-v to Trustmark’s Annual Report on Form 10-K, incorporated herein by reference.
|
|
10-w
|
Form of Bonus Restricted Stock Agreement for Executive (under the 2005 Stock and Incentive Compensation Plan). Incorporated herein by reference to Exhibit 10.w to Trustmark’s Form 8-K Current Report filed April 6, 2009.
|
|
10-x
|
Form of Time-Based TARP-Compliant Restricted Stock Agreement for Executive (under the 2005 Stock and Incentive Compensation Plan). Filed November 9, 2009, as Exhibit 10-x to Trustmark’s Form 10-Q Quarterly Report for the quarter ended September 30, 2009 and incorporated herein by reference.
|
|
10-y
|
Form of Performance-Based TARP-Compliant Restricted Stock Agreement for Executive (under the 2005 Stock and Incentive Compensation Plan.). Filed November 9, 2009, as Exhibit 10-y to Trustmark’s Form 10-Q Quarterly Report for the quarter ended September 30, 2009 and incorporated herein by reference.
|
|
10-z
|
Employment Agreement between Trustmark Corporation and Gerard R. Host dated September 14, 2010. Filed September 14, 2010, as Exhibit 10-z to Trustmark's Form 8-K Current Report, incorporated herein by reference.
|
|
10-aa
|
Form of Time-Based Restricted Stock Agreement for Director (under the 2005 Stock and Incentive Compensation Plan.) Filed August 8, 2011 as Exhibit 10-aa to Trustmark's Form 10-Q Quarterly Report for the quarter ended June 30, 2011 and incorporated herein by reference.
|
10-ab
|
Summary of the Trustmark Corporation Management Incentive Plan. Filed November 7, 2012, as Exhibit 10-ab to Trustmark’s Form 10-Q Quarterly Report for the quarter ended September 30, 2012 and incorporated herein by reference.
|
|
Form of Performance-Based Restricted Stock Agreement for Executive (under the 2005 Stock and Incentive Compensation Plan.) Filed herein as Exhibit 10-ac to Trustmark’s Form 10-K Annual Report for the year ended December 31, 2012.
|
||
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.
|
||
101.INS
|
XBRL Instance Document *
|
|
101.SCH
|
XBRL Schema Document *
|
|
101.CAL
|
XBRL Calculation Linkbase Document *
|
|
101.DEF
|
XBRL Label Linkbase Document *
|
|
101.LAB
|
XBRL Presentation Linkbase Document *
|
|
101.PRE
|
XBRL Definition Linkbase Document *
|
*-
|
In accordance with Regulation S-T, the XBRL-related information found in Exhibit No. 101 to this Annual Report on Form 10-K shall be deemed “furnished” and not “filed.”
|
BY:
|
/s/ Gerard R. Host
|
BY:
|
/s/ Louis E. Greer
|
|
|
Gerard R. Host
|
|
Louis E. Greer
|
|
|
President and Chief Executive Officer
|
|
Treasurer, Principal Financial Officer and
Principal Accounting Officer
|
|
|
|
|
|
|
DATE:
|
February 27, 2013
|
DATE:
|
February 27, 2013
|
DATE: February 27, 2013
|
BY:
|
/s/ Adolphus B. Baker
|
Adolphus B. Baker, Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ Daniel A. Grafton
|
Daniel A. Grafton, Chairman and Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ Gerard R. Host
|
Gerard R. Host, President, Chief Executive Officer
and Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ David H. Hoster II
|
David H. Hoster II, Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ John M. McCullouch
|
John M. McCullouch, Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ Richard H. Puckett
|
Richard H. Puckett, Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ R. Michael Summerford
|
R. Michael Summerford, Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ Leroy G. Walker, Jr.
|
Leroy G.Walker, Jr., Director
|
||
DATE: February 27, 2013
|
BY:
|
/s/ William G. Yates III
|
William G. Yates III, Director
|
|
(a)
|
Subject to earlier vesting or forfeiture as provided below, the period of restriction (the “Period of Restriction”) applicable to the Award Shares and the Restricted Stock Units is the period from the Award Date through <<vesting date>>, with vesting 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 performance period>> and ending <<end of performance 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 Participant 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 <<number of calendar months in 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, on the date of such Vesting Acceleration Event. In such event, any balance of the Award Shares and Restricted Stock Units which are not vested shall be immediately forfeited. If the aggregate time-weighted vesting exceeds 100%, Achievement Shares shall be issued to the Participant, in settlement of the vested Restricted Stock Units, in a number equal to the excess of the aggregate time-weighted vesting pursuant to this Paragraph 2(b) over 100% multiplied by the number of Restricted Stock Units (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). The Achievement Shares shall be unrestricted, 100% vested and freely transferable as of their date of issuance and shall have full voting rights and otherwise possess all rights of Shares from their date of issuance. All determinations regarding vesting and entitlement to the Award Shares, the Restricted Stock Units and any Achievement Shares under this Paragraph 2(b) shall be made and certified to in writing by the Committee, and all such shares and units shall be settled or issued, as applicable, within 2-1/2 months following the date of the Vesting Acceleration Event (subject to any delay in issuance of the Achievement Shares required by Section 409A of the Internal Revenue Code).
|
|
(c)
|
The following terms have the following meanings for purposes hereof:
|
|
(i)
|
“Cause” means that the Participant (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, (I) has induced any customer of the Company or any affiliate to breach a contract with the Company or any affiliate, (J) has been convicted of, or has entered a guilty plea or plea of no contest to, any felony or misdemeanor involving moral turpitude, (K) has failed to perform substantially his duties with and responsibilities to the Company (other than any such failure resulting from incapacity due to disability), (L) has violated in any material respect the Company’s or any affiliate's policies or procedures, including without limitation, the Code of Ethics, or (M) has engaged in conduct that has resulted, or if it became known by any regulatory or governmental agency or the public is reasonably likely to result, in the good faith judgment of the Board of Directors, in material injury to the Company or any affiliate, whether monetary, reputational or otherwise.
|
|
(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 or may not 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 shareholders’ 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 Participant’s death, the Participant’s retirement after <<date>>, 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 Participant’s employment, the termination after <<date>> of the Participant’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 which with respect to the Participant 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 Participant does not have an Employment Agreement, the Participant’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 Participant has an Employment Agreement, the Participant’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 Participant’s termination of employment with the Company and its Subsidiaries after <<date>> at his or her own initiative for Good Reason (as defined in his or her Employment Agreement, but only if defined therein).
|
3.
|
Stock Certificates
.
|
|
(a)
|
The Company shall issue the Award Shares and Achievement Shares, if any, either: (i) in certificate form as provided in Paragraph 3(b) below; or (ii) in book entry form, registered in the name of the Participant with notations regarding any applicable restrictions on transfer imposed under this Agreement.
|
|
(b)
|
Any certificates representing Award Shares shall be held by the Company until such time as the restrictions hereunder lapse and such shares become transferable, or are forfeited hereunder. Any Award Shares issued in book entry form shall be subject to the following legend and any certificates representing the Award Shares shall bear the following legend, until such time as the restrictions hereunder lapse and such shares become transferable:
|
|
(c)
|
Promptly after the lapse of the restrictions with respect to any of the Award Shares, the Company shall, as applicable, either remove the notations on the Award Shares issued in book entry form as to which the restrictions have lapsed or deliver to the Participant a certificate or certificates evidencing the number of Award Shares as to which the restrictions have lapsed.
|
|
(d)
|
The Committee may require, concurrently with the Participant’s electronic acceptance of this Agreement, the Participant to submit to the Company an executed stock power, in blank, with respect to the Award Shares or Achievement Shares. The Participant, by acceptance of the Award, shall be deemed to appoint, and does so appoint, the Company and each of its authorized representatives as the Participant’s attorney(s) in fact to effect any transfer of forfeited shares (or shares otherwise reacquired or withheld by the Company hereunder) to the Company as may be required pursuant to the Plan or this Agreement and to execute such documents as the Company or such representatives deem necessary or advisable in connection with any such transfer.
|
|
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 payment 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 cash dividends on the Award Shares and for Achievement Shares), a Section 409A disability, a Section 409A separation from service (as described below), or a Section 409A change with respect to the Participant 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 Participant 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 Participant 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 Participant or his or her successor in interest harmless from any or all of such taxes or penalties.
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(b)
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Except as permitted under Section 409A, any 409A benefit payable to the Participant or for his or her benefit with respect to the Award may not be reduced by, or offset against, any amount owing by the Participant to the Company or any of its affiliates.
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(c)
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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 Participant 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 Participant’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 Participant 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.
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COMPANY:
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TRUSTMARK CORPORATION
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By:
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Its:
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Name
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Jurisdiction Where Organized
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Trustmark National Bank
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United States
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F. S. Corporation (inactive)
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Mississippi
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First Building Corporation (inactive)
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Mississippi
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Somerville Bank & Trust Company
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Tennessee
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Trustmark Preferred Capital Trust I
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Delaware
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Trustmark Securities, Inc. (1) (inactive)
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Mississippi
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Fisher Brown Bottrell Insurance, Inc. (1)
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Mississippi
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Trustmark Investment Advisors, Inc. (1)
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Mississippi
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1)
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I have reviewed this annual report on Form 10-K of Trustmark Corporation;
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2)
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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;
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3)
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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;
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4)
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5)
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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 the registrant's board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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BY:
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/s/ Gerard R. Host
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Gerard R. Host
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President and Chief Executive Officer
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DATE:
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February 27, 2013
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1)
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I have reviewed this annual report on Form 10-K of Trustmark Corporation;
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2)
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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;
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3)
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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;
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4)
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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:
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|
a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5)
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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 the registrant's board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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BY:
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/s/ Louis E. Greer
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Louis E. Greer
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Treasurer, Principal Financial Officer and Principal Accounting Officer
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DATE:
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February 27, 2013
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1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Trustmark.
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BY:
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/s/ Gerard R. Host
|
Gerard R. Host
|
|
President and Chief Executive Officer
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DATE:
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February 27, 2013
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1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Trustmark.
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BY:
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/s/ Louis E. Greer
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Louis E. Greer
|
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Treasurer, Principal Financial Officer and
Principal Accounting Officer
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DATE:
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February 27, 2013
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