Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the presentation this morning, there will be a question-and-answer session. To ask a question, you may press star then one on your touchtone phone, and to withdraw your question, please press star then two. As a reminder, this call is being recorded. It is now my pleasure to introduce Mr. Joey Rein, Director of Corporate Strategy at Trustmark. Please go ahead, sir. Good morning! I'd like to remind everyone that a copy of our second quarter earnings release, as well as the slide presentation that will be discussed on our call this morning, is available on the investor relations section of our website at trustmark.com. During the call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We would like to caution you that these forward-looking statements may differ materially from actual results due to a number of risks and uncertainties, which are outlined in our earnings release and our other filings with the Securities and Exchange Commission. At this time, I'd like to introduce Duane Dewey, President and CEO of Trustmark Corporation. Thank you, Joey, and good morning, everyone. Thank you for joining us this morning. With me are Tom Owens, our Chief Financial Officer, Barry Harvey, our Chief Credit and Operations Officer, and Tom Chambers, our Chief Accounting Officer. The second quarter was a very active quarter and productive for Trustmark, so we have a lot to share with you this morning on multiple fronts. During the quarter, we completed significant actions to increase earnings, enhance our profitability profile, reduce risk, and strengthen capital flexibility. We had 4 significant non-routine items, as outlined on slide 3. First, we completed the previously announced sale of Fisher Brown Bottrell Insurance, capitalizing on attractive multiples of 5.9 x revenue and 28 x net income. We recognized an after-tax gain on sale of $171.2 million. Second, we sold $1.6 billion of AFS securities with an average yield of 1.36%, generating a loss of $182.8 million. We then purchased $1.4 billion of AFS securities with an average yield of 4.85%, which will significantly boost our net interest margin and enhance our profitability profile. Tom Owens will provide some additional color on this restructuring process that took place in late May and throughout much of June. Third, we proactively reduced the risk profile of our one-to-four family mortgage portfolio. During the quarter, we sold mortgage loans that were three payments or more delinquent and/or nonaccrual at the time of selection, totaling $56.2 million. The mortgage loan sale resulted in an after-tax loss of $10.1 million, and this sale drove a $54.1 million reduction in non-performing loans. Finally, we exchanged our Visa Class B-1 shares for B-2 shares and Class C common stock. The exchange of Class C shares resulted in a $6 million after-tax gain during the quarter. With all the moving parts during the quarter, we developed slide 4 to illustrate the strength of the quarter and provide additional details. The first column reflects reported earnings in the second quarter of $73.8 million, or earnings of $1.20 per diluted share. The next column reflects that we recognized $171.2 million or $2.70 per diluted share on the sale of the agency. During the 2 months of the quarter we owned the agency, we recognized $3.2 million in net income. Backing out the discontinued operations associated with the agency, the restructuring of the AFS securities portfolio, the mortgage loan sale, and the Visa share exchange, adjusted earnings from continuing operations in the second quarter was $40.5 million, or $0.66 per diluted share. Our performance in the second quarter also compares favorably to net income from continuing operations in the prior quarter, which is shown on the right side of the chart. We've discussed the non-recurring transactions during the quarter. Now, let's turn to slide 5 for a recap of the strong fundamental accomplishments during the quarter. Loans held for investment increased $98 million linked-quarter, net of the mortgage sale, and $541 million year-over-year. Deposit growth exceeded loan growth, increasing $124 million linked quarter and $549 million from the prior year. A significant contributor to our performance in the quarter was the growth in net interest income, which increased $8 million or 6% linked quarter to $144 million. The net interest margin expanded 17 basis points during the quarter to 3.38%. Revenue from continuing operations increased 4.1% linked quarter, and non-interest income from continuing operations represented 21.3% of total revenue. Diligent expense management continues to be a focus of the organization, and non-interest expense declined 1.1% linked quarter. Given the mortgage loan sale, key takeaways from include nonaccrual loans declining 55%, and net charge-offs, excluding the mortgage loan sale, totaled $3 million, representing 9 basis points of average loans. The allowance for credit losses represented 1.18% of loans held for investment and 840% of nonaccrual loans, excluding individually analyzed loans at June 30. Trustmark's capital ratios expanded meaningfully during the quarter as tangible equity to tangible assets increased 105 basis points to 8.52%, while CET1 ratio expanded 80 basis points to 10.92%, and total risk-based capital expanded 87 basis points to 13.29%. The second quarter was fundamentally strong, and the actions taken during the quarter, which were designed to enhance our profitability profile going forward. Turning to Slide 6, we expect loans held for investment and deposits to grow single digits for the full year 2024. Securities balances are expected to remain stable as we reinvest cash flows. We anticipate net interest income to increase low single digits in 2024, reflecting continuing asset growth, stabilizing deposit costs, and accretion from balance sheet repositioning, resulting in full year 2024 net interest margin of approximately 3.4% based on the market implied forward interest rates. We expect the net interest margin to be in the range of 3.55%-3.60% in the second half of 2024. From a credit perspective, the provision for credit losses, including unfunded commitments, is dependent upon credit quality trends, current macroeconomic forecast, and future loan growth. Net charge-offs from continuing operations are expected to remain below the industry average based on the current economic outlook. Non-interest income from continuing operations in the second half of 2024 is expected to increase low single digits compared to the first half of 2024. Likewise, non-interest expense from continuing operations is also expected to increase low single digits in the second half of the year when compared to the first half of 2024. We will continue our disciplined approach to capital deployment with a preference for organic loan growth, potential market expansion, M&A, or other general corporate purposes, depending on market conditions. We also continue to assess the board of directors approved 2024 share repurchase program as the market and balance sheet dictates. At this time, Barry Harvey is going to provide some color on our loan portfolio and credit quality. Thank you, Duane. I'd be glad to. Turning to Slide 7, loans held for investment totaled $13.2 billion as of June 30. That's an increase, as Duane mentioned, of $97 million for the quarter. Loan growth during Q2 came from commercial real estate and the equipment finance line of business. We expect loan growth of low single digits for 2024. As you can see, our loan portfolio remains diversified, both from a product standpoint as well as a geography. Looking on to Slide 8, Trustmark's CRE portfolio is 94% vertical, with 69% in the existing category and 31% in construction land development. Our construction land development portfolio is 82% construction. Trustmark's office portfolio, as you can see, is very modest at $279 million outstanding, which represents only 2% of our overall loan book. The portfolio is comprised of credits with high-quality tenants, low lease turnover, strong occupancy levels, and low leverage. On to Slide 9, the bank's commercial portfolio is well diversified, as you can see, across numerous industries, with no single category exceeding 15%. Looking at Slide 10, our provision for credit losses for loans held for investment was $23.3 million during the second quarter. Excluding the mortgage loan sale, the provision for credit losses for loans held for investment was $14.7 million, which was driven by two parts: one, loan growth, as well as risk grade migration. The provision for credit losses for off-balance sheet credit exposure was -$3.6 million, which resulted primarily from a decline in unfunded CRE commitments. At June 30, the allowance for credit losses for loans held for investment was $155 million. Looking on to Slide 11, we continue to post solid credit quality metrics. The allowance for credit losses represents 1.18% of loans held for investment and 840% of nonaccruals, excluding those that are individually analyzed. In the second quarter, net charge-offs totaled $11.6 million. Excluding the previously referenced mortgage loan sale, net charge-offs totaled $3 million, or nine basis points of average loans. Both non-accruals and non-performing assets decreased significantly during the quarter as a result of the mortgage loan sale. Duane? Okay, thanks, Barry. Now, Tom Owens will cover deposits, net interest margin, and non-interest income. Thanks, Duane, and good morning, everyone. Turning to deposits on slide 12. We had another good quarter, which continued to show the strength of our deposit base. Deposits totaled $15.5 billion at June 30, a linked quarter increase of $124 million, or 0.8%-1%, and a year-over-year increase of $549 million, or 3.7%. The linked quarter increase was driven by growth of $114 million in non-interest-bearing DDA balances, which remained at 20% of our deposit base. Time deposits also increased by $90 million linked quarter, driven by $77 million of growth in personal CDs and $13 million of growth in brokered CDs. As of June thirtieth, our promotional and exception priced time deposit book totaled $1.5 billion, with a weighted average rate paid of 4.98% and a weighted average remaining term of about five months. Our broker deposit book totaled $600 million, had an all-in weighted average rate paid, which remained at about 5.43%, and the weighted average remaining term remained at about three months as of June thirtieth. Our cost of interest-bearing deposits increased by one basis point from the prior quarter to 2.75%, down from the seven basis point linked quarter increase in the second quarter. Turning to slide 13, Trustmark continues to maintain a stable, granular, and low exposure deposit base. During the first quarter, we had an average of about 460,000 personal and non-personal deposit accounts, excluding collateralized public fund accounts, with an average balance per account of about $27,000. As of June 30, 64% of our deposits were insured and 14% were collateralized, meaning that our mix of deposits that are uninsured and uncollateralized was essentially unchanged linked quarter at 22%. We continue to maintain substantial secured borrowing capacity, which stood at $6.1 billion at June 30, representing 179% coverage of uninsured and uncollateralized deposits. Our second quarter total deposit cost was unchanged linked quarter at 2.18%, which continues to represent a cumulative beta cycle to date of 40%. The favorable variance to prior guidance was driven by pricing actions we'd taken during the first quarter, which gave us a running start toward a lower deposit cost in the second quarter. Deposit cost has, however, continued to increase monthly and as a frame of reference for the guide to 2.27% in the third quarter, which would bring the cycle-to-date beta to 44%. Deposit cost is approximately 2.25% month-to-date in July. Turning our attention to revenue on slide 14, net interest income FTE increased $8.1 million linked quarter, totaling $144.3 million, which resulted in a net interest margin of 3.38%. Net interest margin increased by seventeen basis points linked quarter, driven by 13 basis points of accretion from loan rate and volume, and 5 basis points of accretion from the securities portfolio restructuring. With respect to the loan rate accretion, loan fees normalized during the second quarter from the unusual drop we had experienced during the first quarter. Absent the linked quarter volatility in loan fees, loan yields continued to trend higher by mid-single digit basis points each quarter. As Duane indicated, we anticipate net interest margin of 3.55%-3.60% in the second half of 2024, with the increase driven by the securities portfolio restructuring, which was completed during June, resulting in an anticipated securities portfolio yield of approximately 3.5% going forward. We were pleased with the execution of the securities portfolio restructuring in what was a challenging interest rate environment, and we did achieve our objectives with the restructuring of extending effective duration from about 3.7 years to about 4.2 years. We adjusted mix to achieve more consistent ladder of cash flows over time, while also improving the stability of cash flows to changes in interest rates, while picking up approximately 350 basis points of yield between securities purchased and securities sold. Turning to slide 15, our interest rate risk profile remained essentially unchanged to June 30th. We continue to have substantial asset sensitivity driven by loan portfolio mix with 51% variable rate coupon. During the second quarter, we entered into $60 million notional of forward starting interest rate swaps, which brought the swap portfolio notional at quarter end to $1.165 billion, with a weighted average maturity of 3 years and a weighted average received fixed rate of 3.23%. We also entered into $30 million notional of forward-starting floors, which brought the floor portfolio notional at quarter end to $150 million, with a weighted average maturity of 4.3 years and a weighted average SOFR rate of 3.68%. The cash flow hedging program substantially reduces our adverse asset sensitivity to potential downward shock in interest rates. Turning to slide 16, non-interest income from adjusted continuing operations totaled $38.2 million in the second quarter, a $1.1 million linked-quarter decrease and approximately $400,000 year-over-year increase. The linked-quarter decrease was driven by a $3.4 million increase in negative net hedge ineffectiveness, which was driven by a higher assumed discount rate applied to mortgage servicing cash flows and the asset valuation methodology. Excluding the increase in negative net hedging effectiveness, the linked-quarter increase in total non-interest income would have been $2.3 million, or 5.8%, and the year-over-year increase would have been $3.6 million, or 9.4%. Now I'll ask Tom Chambers to cover non-interest expense and capital management. Thank you, Tom. Turning to slide 17, we'll see a detail of our total non-interest expense. During the second quarter, non-interest expense continued to decline and totaled $118.3 million, for a linked quarter decrease of $1.3 million, or 1.1%. This decline was mainly driven by a decrease in salary and benefits of $600,000, resulting in reduced compensation expense and a seasonal decline in payroll taxes, offset by increased commission expense driven by increased revenue. Other expense decreased by $900,000, resulting from lower operational losses during the quarter. Turning to slide 18, Trustmark remains well positioned from a capital perspective. As Duane previously mentioned, our capital ratios remain solid, with a common equity tier one ratio of 10.92%, a linked quarter increase of 80 basis points, and a total risk-based capital ratio of 13.29%, a linked quarter increase of 87 basis points. Although we currently have a $50 million share repurchase program in place, our priority for capital deployment continues to be focused on organic lending. As Duane indicated, we will continue to evaluate the share repurchase program as the market and our capital levels dictate. Back to you, Duane. Great. Thanks, Tom. A very, very busy quarter for us here. So, we'll now open the floor up for questions that you may have. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. The first question will come from Catherine Mealor with KBW. Please go ahead. Thanks. Good morning. Good morning, Catherine. I wanted to start on some of the guidance that you provided, which is really helpful just to look at it, you know, on continuing operations and then kind of a growth rate into the back half of the year. So thank you for how you laid that out. I think with expenses, if you, if you take the first half of the year and then grow that at a low single digit pace, I'm getting kind of a run rate in the back half of the year around kind of $122 million-$123 million a quarter, which is a little bit higher than the, the first half. Just want to make sure that that's around what you're thinking and, and where some of that growth is coming from. Catherine, I'll start. Tom Chambers can continue on. But yeah, I think, I think general, some of the things that occurred in the first quarter and second quarter, you know, will not continue into the second half of the year. So we, we do think we'll get a little bit of growth comparing first half to second half, and it is in the very low single digit range. Tom, can you elaborate a little more, but, yeah, I think you're about right with your numbers. Tom? Yes, Duane, thank you. I believe the biggest driver of the increase in the second half of the year is we changed our merit increase structure. We used to have merit increases hit during March of the year, and we delayed that this year to hit in July. So the first half of the year did not have merit increases in our salaries, and the second half of the year will. So that'll be the biggest- But it still keeps it in that low- Yeah. very low single digit range. Yes, sir. Okay, great. Perfect. And everything else was made perfect sense. I'm actually not going to ask a margin question this quarter, so Tom, I'm going to... You're off the hook this quarter from me. My second question is on the CRE. So it looks like you sold the NPAs but then built the reserve, and looks like you put a lot of that in your CRE reserve. Just curious if that's just from pure conservatism, or was there any negative migration in special mention or classified within your commercial real estate portfolio that drove that? Hey, Catherine, this is Barry. Now, I'll try to take both of those. Good morning. Morning. The first thought process as it relates to the selling of the mortgage book that we did was, you know, those are—that's most all that's- ... paper. And, you know, it's once it gets into that category of nonaccrual, and there's a high roll rate from three payments down and more, it's kind of sticky and hard to remove. And we thought in today's environment, where it's still attractive, it'd be a good time to go ahead and give ourselves some additional room as it relates to as it relates to NPLs and NPAs. As it relates to the second part of your question, as it regarding the risk grade migrations driving some of the provisioning, that is correct. I mean, we, like all banks, on the CRE side, are beginning to see some risk grade migration as it relates to predominantly special mention, and occasionally there's some that's going to be substandard. We don't really see this as anything other than a cycle at this stage that we're flowing through. But of course, you know, when you have the rate increases we have, coming out of what was put on the books in the second half of 2023 and then most all of 2022, if not all of 2022, that population is going to be more challenged just because it was made at the lowest rates, lowest rate environment, and then now it's functioning because all of ours are variable rates that I'm referencing. It's functioning, and it's always been functioning in the higher rate environment. So there is more stress on the category of lending, not just for Trustmark, but anybody who was booking those type of CRE loans during that window of time that are now beginning to reach CO and in many cases, beginning to stabilize. There is the need to continue to support those projects by the sponsor, by the guarantors, by the borrowers, in order to give them a little bit more time to to fully stabilize. It's also a function of most construction projects for quite a while. Very seldom do they finish on time, so they need a little more time to fully stabilize. And sometimes that's six months, sometimes that's 12 months. So it's all those factors that are going into making sure we're staying on top of our credits, making sure we're grading them appropriately at all times. I wouldn't call it conservatism. I would just say that we're very focused on making sure that we're looking at as much of the book as often as we can, to make sure the grades are right at all times, which would lead you to believe the ACL is accurate at all times as well. Okay, that's great. Do you have the balances of increase in, in criticized or classified? We don't report those in our earnings traditionally. There will be, of course, they will be in the call report. Okay, that's great. We can wait for that. So it seems like the loss content perhaps is still arguably low on these projects, but you're more just migrating them to special mention, you know, if there needs to be support from the guarantor just because of a project delay. That, that's correct. That's, that's the correct assessment, Catherine. We don't see our, you know, this quarter charge-offs for $3 million when you exclude the mortgage sale, which is obviously one-time, that's versus $4 million last quarter. So, and we don't really see a trend developing there that is concerned. We don't see a trend developing in our NPAs or NPLs of concern, but we do want to make sure the grading is correct on all of our credits, and we would expect those to cycle. Like, especially if we get any type of rate reductions second half of this year or next year. Obviously, any of those would be some welcome relief in terms of trying to meet those debt service coverage ratio requirements. Great. Thank you very much for the color, Barry. Again, if you have a question, please press star then one. Our next question will come from Gary Tenner with D.A. Davidson. Please go ahead. Thanks. Good morning. Good morning, Gary. I wanted to ask about the guide on deposit costs for the third quarter. I guess I'm a little surprised that it's, you know, the guide is that much higher, just given the success on the non-interest-bearing front in the second quarter and, you know, generally moderated, moderating deposit cost increases, you know, in the industry overall. So you had alluded to some actions you took to set yourselves up better for lower rates. I'm curious kind of what impact that's having on the third quarter outlook. Yeah. Good morning, Gary. This is Tom Owens. So good question. You know, coming into 2024, early in the first quarter, we began to take some actions to try and rationalize our deposit costs, particularly as it related to maturing promotional CDs, as well as some rates on non-maturity products. And what we found, you know, I don't want to say that was experimental, right, but I think all banks at this point are focused on their deposit base and what the opportunities are to try and rationalize costs. And so we did try some of that in the first quarter, and what we found is we were driving more deposit mix change and more deposit disintermediation than we would have liked. And so we got into approximately mid-March, and we really sort of pivoted away from that. And so that's what I mean by the actions we had taken in the first quarter, which set us up for, you know, a good running start, so to speak, towards beating on the guide that we had put out there for the second quarter. But at the same time, knowing that those deposit costs would continue to march higher going forward, and that's what we've seen. So, you know, I would really encourage you and analysts and investors to think in terms of, you know, whether we're talking about loan yield or deposit cost, you know, it's think in terms of mid-single digit increases on a normalized basis. You know, we had a sort of a hiccup in terms of our loan yields in the first quarter on a linked quarter basis, which was the result of sort of an unusual decrease in loan fees. That normalized for us here in the second quarter, right? And so you saw what is seemingly a disproportionately large increase on a linked quarter basis in loan yield in the second quarter. That was normalization. And our guide in terms of deposit costs for the third quarter is also normalization. We're in relative equilibrium at this point on a month-over-month basis and on a linked quarter basis in terms of the increase in loan yield versus the increase in deposit cost. Thanks a lot for those thoughts there. I guess, if I were to boil it down to thinking that the third quarter outlook on deposit costs is almost, is basically then normalized and kind of skipped over the second quarter from a repricing perspective, is that kind of what it boils down to? Absolutely, and that's, that's exactly right, Gary. That's why in my prepared comments, I gave you the reference point of month-to-date deposit cost here in July of 2.25%. Okay, I appreciate that. And then if I could ask a follow-up, just on capital. You know, you've talked, you know, about kind of the priorities of organic growth, et cetera, but, you know, pushing an 11% CET1 ratio, just I wonder if you could talk about capital, really more from an M&A perspective, you know, kind of where things are, in terms of conversations. Has there been any sort of increase in conversations in your footprint, and activity levels? I'll start, others can add if they need to. You know, as it relates to M&A, I mean, first of all, yes, there are, there are more, there's a little more activity out there, things we're hearing about and, and things that are being presented to us as opportunities, et cetera. So we are seeing some increased activity there. In our minds, I think we wanted to get through this quarter with a lot of noise and activity and all these different one-time deals, kind of let the dust settle and then, you know, really moving into 2025, more thinking about the M&A space, in a little more, with a little more focus and the like. But at the end of the day, I do believe there is a little more activity or at least a lot of different discussions and thought processes going on across, across our marketplace. Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Duane Dewey for any closing remarks. Please go ahead, sir. Thank you again for joining us this morning. A very, very busy quarter for us, and we're very excited about the second half of 2024. And we look forward to our third quarter call in October. So look forward to catching up then. Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.