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 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. Go ahead.

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 course of our call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. And 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 as well as our filings with the Securities and Exchange Commission. At this time, I'd like to introduce Dwayne Dewey, President and CEO of Trustmark.

Thank you, Joey, and 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 solid second quarter with continued loan and deposit growth, expanding net interest income, and growth in our fee income businesses. We reported net income of $45 million, or $0.74 per diluted share, in the second quarter. This level of profitability resulted in a return on average tangible common equity of 15.18% and a return on average assets of 0.96%. Let's look at our financial highlights in a little more detail by turning to slide three. Loans held for investment increased 117 million or 0.9% linked quarter to a total of 12.6 billion. Deposits during the quarter grew $130 million or 0.9% linked quarter to a level of $14.9 billion. Revenue in the second quarter rose $193 million, an increase of 2.4% linked quarter. Net interest income increased 1.6% linked quarter, while non-interest income grew 4.2% linked quarter. Non-interest income totaled $53.6 million in the second quarter and represented 27.7% of total revenue. Non-interest expense in the second quarter was $132.2 million, up 3% compared to the prior quarter. Credit quality remained solid as the allowance for credit losses represented 1.03% of loans held for investment and 301% of non-accrual loans. Net charge-offs during the quarter totaled $1.2 million and represented four basis points of average loans. Non-performing assets represented 0.6% of total loans as of June 30. We continue to maintain strong capital levels with common equity Tier 1 of 9.87% and a total risk-based capital ratio of 12.08%. The Board declared a quarterly cash dividend of 23 cents per share payable on September 15 to shareholders of record as of September 1. At this time, I'd like to ask Barry Harvey to provide some color on loan growth and credit quality.