Trustmark Corporation

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 touch-tone phone. 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 Rayne, Director of Investor Relations at Trustmark. Mr. Rayne, the floor is yours, sir.

Mr. Good morning. I would 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 course of our 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 would like to introduce Duane Dewey, President and CEO of Trustmark.

Thank you, Joey. Good morning, everyone. Thank you for joining us. With me this morning are Tom Owens, our Chief Financial Officer, Barry Harvey, our Chief Credit and Operations Officer, and Tom Chambers, our Chief Accounting Officer. Trustmark had a strong second quarter as reflected by significant loan growth, strong credit quality, and expansion in the net interest margin. For the second quarter, Trustmark reported net income of $34.3 million, or 56 cents per diluted share. Let's look at our financial highlights in a little more detail by turning to slide three. At June 30th, loans held for investments totaled $10.9 billion, an increase of $547.7 million from the prior quarter and $792 million from the previous year. Deposits totaled $14.8 million a decrease of $343.1 million linked quarter, and a $138.1 million increase from this time last year. Revenue in the second quarter totaled $165.9 million, a $12.5 million or 8.1 percent increase from the previous quarter. Net interest income totaled $115.6 million in the second quarter, an increase of $13.2 million, or 12.9% linked quarter. Non-interest income totaled $53.3 million and represented 32.1% of total revenue in the second quarter. Non-interest expense in the second quarter totaled $123.8 million, a 1.8% increase from the prior quarter. Credit quality remained solid this quarter as non-performing assets declined 3.7% from the prior quarter and recoveries exceeded charge-offs by 1.7 million. We continue to maintain strong capital levels with a Tier 1 ratio of 11.01% and a total risk-based capital ratio of 13.26%. the Board declared a quarterly cash dividend of 23 cents per share payable September 15 to shareholders of record September 1. During the second quarter, Trustmark repurchased $7.5 million for approximately 263,000 shares of common stock. As of June 30, Trustmark had $83.4 million remaining under its authority in its existing repurchase program. which expires 12-31-22. At this time, I'd like to ask Barry to provide color on loan growth and credit quality.