Trustmark Corporation (Trustmark), a Mississippi business corporation incorporated
in 1968, is a bank holding company headquartered in Jackson, Mississippi. Trustmark’s
principal subsidiary is Trustmark National Bank (TNB), initially chartered by
the State of Mississippi in 1889. TNB had total assets of $12.677 billion, which
represented approximately 99.99% of the consolidated assets of Trustmark.
Through TNB and its subsidiaries, Trustmark operates as a financial services
organization providing banking and other financial solutions through 200 offices
alocated in the states of Alabama (primarily in the central and southern regions
of that state, which are collectively referred to herein as Trustmark’s
Alabama market), Florida (primarily in the northwest or “Panhandle”
region of that state, which is referred to herein as Trustmark’s Florida
market), Mississippi, Tennessee (in Memphis and the Northern Mississippi regions,
which are collectively referred to herein as Trustmark’s Tennessee market),
and Texas (primarily in Houston, which is referred to herein as Trustmark’s
Texas market).
Trustmark National Bank
Commercial Banking – TNB provides a full range of commercial banking services
to corporations and other business customers. Loans are provided for a variety
of general corporate purposes, including financing for commercial and industrial
projects, income producing commercial real estate, owner-occupied real estate
and construction and land development. TNB also provides deposit services, including
checking, savings and money market accounts and certificates of deposit as well
as treasury management services.
Consumer Banking – TNB provides banking services to consumers, including
checking, savings, and money market accounts as well as certificates of deposit
and individual retirement accounts. In addition, TNB provides consumer customers
with installment and real estate loans and lines of credit.
Mortgage Banking – TNB provides mortgage banking services, including construction
financing, production of conventional and government insured mortgages, secondary
marketing and mortgage servicing.
Insurance – TNB provides a competitive array of insurance solutions for
business and individual risk management needs. Business insurance offerings
include services and specialized products for medical professionals, construction,
manufacturing, hospitality, real estate and group life and health plans. Individual
customers are also provided life and health insurance, and personal line policies.
TNB provides these services through Fisher Brown Bottrell Insurance, Inc. (FBBI),
a Mississippi corporation and a wholly-owned subsidiary of TNB, which is based
in Jackson, Mississippi.
Wealth Management and Trust Services – TNB offers specialized services
and expertise in the areas of wealth management, trust, investment and custodial
services for corporate and individual customers. These services include the
administration of personal trusts and estates as well as the management of investment
accounts for individuals, employee benefit plans and charitable foundations.
TNB also provides corporate trust and institutional custody, securities brokerage,
financial and estate planning and retirement plan services. TNB’s wealth
management division is also assisted by Trustmark Investment Advisors, Inc.
(TIA), a Securities and Exchange Commission (SEC)-registered investment adviser
and a wholly-owned subsidiary of TNB. TIA provides customized investment management
services to TNB’s Wealth Management Division, which in turns relies upon
that advice to provide investment management services to TNB’s wealth
management customers. During 2014, TNB moved the administration of Private Banking,
previously reported in the Wealth Management Division, to the General Banking
Division, which encompasses TNB’s commercial, consumer and mortgage banking
products and services.
New Market Tax Credits (NMTC) – TNB provides an intermediary vehicle
for the provision of loans or investments in Low-Income Communities (LICs) through
its subsidiary Southern Community Capital, LLC (SCC). SCC is a Mississippi single
member limited liability company, a certified Community Development Entity (CDE)
and a wholly-owned subsidiary of TNB. The primary mission of SCC is to provide
investment capital for LICs, as defined by Section 45D of the Internal Revenue
Code, or for Low-Income Persons (LIPs). As a certified CDE, SCC is able to apply
to the Community Development Financial Institutions Fund (CDFI Fund) to receive
NMTC allocations to offer investors in exchange for equity investments in qualified
projects.
Capital Trust
Trustmark Preferred Capital Trust I (the Trust) is a Delaware trust affiliate
and a wholly-owned subsidiary of Trustmark formed in 2006 to facilitate a private
placement of $60.0 million in trust preferred securities. As defined in applicable
accounting standards, the Trust is considered a variable interest entity for
which Trustmark is not the primary beneficiary. Accordingly, the accounts of
the Trust are not included in Trustmark’s consolidated financial statements.
LHFI Secured by Construction, Land Development, and Other Land – Construction
and land development loans include loans for both commercial and residential
properties to builders/developers and to consumers. This category also includes
loans secured by vacant land, except land known to be used or usable for agricultural
purposes, such as crop and livestock production. Repayment is normally derived
from the sale of the underlying property or from permanent financing, which
refinances Trustmark’s initial loan. Trustmark’s engagement in this
type of lending is restricted to projects within its geographic markets and
is generally extended to those builders and developers exhibiting the highest
credit quality with significant equity invested in the project. The underwriting
process for these loans includes analysis of the financial position and strength
of both the borrower and guarantor, experience with similar projects in the
past, market demand and prospects for successful completion of the proposed
project within the established budget and schedule, values of underlying collateral
and availability of permanent financing. Risk within this portfolio is mitigated
through adherence to policies and lending limits, periodic target credit reviews
of the different segments of this portfolio, inspection of projects throughout
the life of the loan and routine monitoring of financial information and collateral
values as they are updated.
5.22%