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Trustmark News Release Trustmark Corporation Announces Second Quarter 2021 Financial Results Performance Reflects Continued Balance Sheet Growth , Strong Credit Quality and Disciplined Expense Management JACKSON , Miss . - July 27 , 2021 - Trustmark Corporation ( NASDAQGS : TRMK ) reported net income of $ 48.0 million in the second quarter of 2021 , representing diluted earnings per share of $ 0.76 . This level of earnings resulted in a return on average tangible equity of 13.96 % and a return on average assets of 1.13 % . Trustmark's Board of Directors declared a quarterly cash dividend of $ 0.23 per share payable September 15 , 2021 , to shareholders of record on September 1 , 2021 . Second Quarter Highlights • Pre - provision net revenue totaled $ 57.2 million , a linked - quarter increase of 38.2 % . Please refer to the Consolidated Financial Information , Note 8 - Non - GAAP Financial Measures . Sale of $ 354.2 million of Paycheck Protection Program ( PPP ) loans originated in 2021 resulted in accelerated recognition of $ 18.6 million in origination fees , which is included in net interest income • Credit quality remained solid ; nonperforming assets declined 17.9 % linked - quarter • Continued steady growth in loans held for investment ( HFI ) and deposits • Noninterest expense declined 2.4 % linked - quarter Duane A. Dewey , President and CEO , stated , “ Our associates are focused on expanding existing customer relationships as well as demonstrating the value Trustmark can provide potential customers as their trusted financial partner . The success of these efforts is reflected in solid growth in our traditional banking and mortgage businesses as well as strong performance in our insurance and wealth management businesses . Earlier this year , we introduced redesigned digital channels to enhance the customer experience and provide expanded sales capabilities , including on - line account openings . Customers have embraced these offerings and we look forward to leveraging these new tools to expand relationships and profitably generate additional revenue . " We are pleased to have been recognized during the second quarter by Forbes as the Best - in - State Bank in Mississippi in 2021 , based upon independent customer satisfaction surveys . This is affirmation that our associates are providing the financial solutions and convenience our customers ' desire , " said Dewey . Balance Sheet Management • Loans HFI totaled $ 10.2 billion , up 1.7 % from the prior quarter and 5.1 % year - over - year Investment securities totaled $ 3.0 billion , up 5.3 % from the prior quarter and 17.2 % year - over - year • • PPP loans totaled $ 166.1 million , down 75.6 % from the prior quarter and 82.3 % year - over - year • • Deposits totaled $ 14.6 billion , up 1.7 % from the prior quarter and 8.3 % year - over - year Maintained strong capital position with CET1 ratio of 11.76 % and total risk - based capital ratio of 14.10 % Loans HFI totaled $ 10.2 billion at June 30 , 2021 , reflecting an increase of $ 169.2 million , or 1.7 % , linked - quarter and $ 493.1 million , or 5.1 % , year - over - year . The linked - quarter growth primarily reflects increases in municipal loans , 1-4 family mortgage loans , loans secured by nonfarm , nonresidential properties , and construction loans , which were offset in part by a decline in other real estate secured loans . Trustmark's loan portfolio remains well - diversified by loan type and geography . Deposits totaled $ 14.6 billion at June 30 , 2021 , up $ 248.6 million , or 1.7 % , from the prior quarter and $ 1.1 billion , or 8.3 % , year - over - year . Trustmark continues to maintain a strong liquidity position as loans HFI represented 69.4 % of total deposits at June 30 , 2021. Noninterest - bearing deposits represented 30.4 % of total deposits at the end of the second quarter . Interest - bearing deposit costs totaled 0.19 % in the second quarter , a decrease of 3 basis points from the prior quarter . The total cost of interest - bearing liabilities was 0.25 % in the second quarter of 2021 , a decrease of 3 basis points from the prior quarter . During the second quarter , Trustmark repurchased $ 20.8 million , or approximately 630 thousand of its common shares . During the first six months of 2021 , Trustmark repurchased $ 25.0 million , or approximately 775 thousand of its common shares . At June 30 , 2021 , Trustmark had $ 75.0 million in remaining authority under its existing stock repurchase program , which expires on December 31 , 2021. The repurchase program , which is subject to market conditions and management discretion , will continue to be implemented through open market repurchases or privately negotiated transactions . At June 30 , 2021 , Trustmark's tangible equity - to - tangible assets ratio was 8.31 % while its total risk - based capital ratio was 14.10 % . Tangible book value per share was $ 22.13 at June 30 , 2021 , up 2.5 % linked - quarter and 9.7 % year- over - year . Credit Quality • • Allowance for credit losses ( ACL ) represented 537.35 % of nonaccrual loans , excluding individually evaluated loans at June 30 , 2021 Net charge - offs totaled $ 1.2 million in the second quarter • Loans remaining under a COVID - 19 related concession represented approximately 19 basis points of loans HFI at June 30 , 2021 Nonaccrual loans totaled $ 51.4 million at June 30 , 2021 , down $ 12.1 million from the prior quarter and up $ 1.5 million year - over - year . Other real estate totaled $ 9.4 million , reflecting a $ 1.2 million decrease from the prior quarter and decline of $ 8.8 million year - over - year . Collectively , nonperforming assets totaled $ 60.9 million at June 30 , 2021 , reflecting a linked - quarter decrease of $ 13.3 million and year - over - year decline of $ 7.4 million . The provision for credit losses for loans HFI was a negative $ 4.0 million in the second quarter . Negative provisioning was primarily driven by decreases in individually analyzed reserves , qualitative reserves due to improvements in credit quality , and improving economic forecasts . The provision for credit losses for off - balance sheet credit exposures was $ 4.5 million in the second quarter . Off - balance sheet expense was primarily driven by an increase in off - balance sheet exposure as well as the implementation of probability of default and loss given default floors at a portfolio level to ensure appropriate risk is reflected as macroeconomic conditions improve . Collectively , the provision for credit losses totaled $ 537 thousand in the second quarter compared to negative $ 19.9 million in the prior quarter and expense of $ 24.4 million in the second quarter of 2020 .