Trustmark Corporation

Good morning, ladies and gentlemen, and welcome to the Trustmark Corporation's Third 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 1 on a touch-tone phone. To withdraw your question, please press star, then 2. As a reminder, this call is being recorded. It is now my pleasure to introduce Mr. Joey Rain, Director of Corporate Strategy at Trustmark.

Good morning. I'd like to remind everyone that a copy of our third quarter earnings release, as well as the slide presentation that we will be discussing on the 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 with 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 Exchange Commission. At this time, I'd 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, Mary Harvey, our Chief Credit and Operations Officer, and Tom Chambers, our Chief Accounting Officer. Trustmark had a strong third quarter as reflected by significant loan growth, expansion of the net interest margin, solid performance in our insurance and wealth management businesses, and strong credit quality. For the third quarter, Trustmark reported net income of $42.5 million, or 69 cents per diluted share. Let's look at our financial highlights in a little more detail by turning to slide three. At September 30, loans held for investments totaled $11.6 billion, an increase of $641.2 million from the prior quarter and $1.4 billion from the previous year. Deposits totaled $14.4 billion, a decrease of $345 million linked quarter, and a $497.7 million decrease from this time last year. Revenue in the third quarter totaled $188.7 million, an increase of $22.8 million, or a 13.7 percent increase from the previous year. Net interest income totaled $139.1 million in the third quarter, an increase of $23.5 million, or a 20.3 percent length order. Non-interest income totaled $52.6 million and represented 27.9 percent of total revenue in the third quarter. Non-interest expense in the third quarter totaled $126.7 million, a 2.4 percent increase from the prior quarter. Credit quality remained solid this quarter as net charge-offs represented three basis points of average loans. The allowance for credit losses for loans held for investment represented 466 percent of non-accrual loans, excluding individually evaluated loans. We continue to maintain strong capital levels with a Tier 1 ratio of 10.63 percent and a total risk-based capital ratio of 12.85 percent. The Board declared a quarterly cash dividend of 23 cents per share payable December 15 to shareholders of record December 1. During the third quarter, Trustmark repurchased 8 million or approximately 247,000 shares of common stock. As of September 30, Trustmark had 75.4 million remaining under its authority in its existing repurchase program that expires December 31 of 22. At this time, I'd like to ask Barry Harvey to provide color on loan growth and credit quality.