Good morning. I'd like to remind everyone that our second quarter earnings release and the presentation that will be discussed on the call this morning are available on the Investor Relations section of our website at trustmark.com.

During 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 in our other filings with the Securities and Exchange Commission.

At this time, I'd like to introduce Duane Dewey, President and CEO of Trustmark.

Thank you, Joey, and good morning, everyone. Thank you for joining us this morning.

As our longtime CFO, Tom Owens, was named Chief Operating Officer during the second quarter, and Joe Bond joined us as Chief Financial Officer. Both are with me this morning.

Also with me are Barry Harvey, our Chief Credit and Operations Officer, and Tom Chambers, our Chief Accounting Officer. Our presentation this morning will provide a summary of our performance and discuss forward guidance before moving to your questions.

We continued to make significant progress in accomplishing our strategic initiatives in the second quarter. Loan production remained solid, and deposit growth continued at attractive rates, which was reflected in our expanded net interest margin.

Years of planning culminated in the second quarter with the successful conversion of our core deposit and related systems to state-of-the-art platforms, which will allow us to enhance the customer experience and operate more efficiently. This was a tremendous effort, and I'm extremely pleased with the commitment and dedication of our associates to make this transition as seamless as possible for our customers.

Now turning to slide 3, financial highlights. Our second quarter results reflect continued momentum across the organization, with strong financial performance supported by loan and deposit growth, expanded net interest income, improved credit quality, and continued investment in technology.

Reported net income totaled $63.5 million, representing diluted earnings per share of $1.08. Results in the quarter included two non-routine transactions that collectively increased net income by $6.9 million, or 11 cents per diluted share.

During the quarter, we sold a portfolio of mortgage loans that were primarily three payments delinquent and/or nonaccrual, totaling $73.8 million. The reserve on the portfolio exceeded the credit discount, which resulted in an increase in net income of $3.2 million.

The sale drove $47.1 million overall reduction in nonperforming loans and reduced the risk profile of our 1-4 family portfolio. We also exchanged Visa shares during the quarter, resulting in a gain of $3.7 million net of taxes.

Excluding these two non-routine transactions, operating net income totaled $56.7 million, representing diluted earnings per share of 97 cents. From a balance sheet perspective, loans held for investment increased $35.1 million, or 0.3% during the quarter, and $448.2 million, or 3.3% year-over-year.

Excluding the mortgage loan sale, loans held for investment increased $108.9 million, or 0.8% linked-quarter, and 500—$522 million, or 3.9% year-over-year. Barry will elaborate as needed, but I want to mention we had $643 million of new originations in the second quarter, and $456 million in line draws.

This strong production was offset in part by $318 million in CRE prepayments and $334 million in payoffs. Deposits expanded $358.7 million, or 2.3% linked-quarter, and $955.4 million, or 6.3% year-over-year.

The cost of total deposits declined 4 basis points linked-quarter to 1.59%, reflecting the continued strength of our attractive low-cost deposit base. Revenue generation remained solid during the quarter.

Total revenue expanded $5.3 million, or 2.6% linked-quarter, to $208.2 million. Net interest income on a fully tax-equivalent basis increased $5 million, or 3.1% linked-quarter, producing a net interest margin of 3.84%, up 3 basis points from the prior quarter.

Expense management continues to be a focus of the organization. Noninterest expense increased $1.5 million, or 1.2% linked-quarter, to $133.7 million.

Salaries and employee benefits expense declined $1.3 million, or 1.7% linked-quarter, while services and fees increased $1.8 million, or 6.5% linked-quarter, primarily reflecting data processing expense and professional fees related to the core deposit conversion and data center migration. From a credit perspective, credit quality improved meaningfully during the quarter.

Nonperforming assets declined 47.3% to represent 0.39% of loans held for investment. Net charge-offs totaled $7.5 million for the second quarter.

Excluding the mortgage loan sale, net charge-offs totaled $1.2 million and represented 0.03% of average loans. The net provision for credit losses was $6 million in the second quarter, excluding the $9.2 million release in the provision related to the mortgage sale.

Capital levels remained strong, and we continued to execute our share repurchase program. During the first 6 months of '26, we repurchased $40.9 million, or approximately 952,000 shares of common stock, including $21.1 million, or approximately 475,000 shares, in the second quarter.

The Board also declared a quarterly cash dividend of 25 cents per share payable September 15th to shareholders of record on September 1st, '26. Now let's focus on our '26 full-year expectations, which are shown on slide 15.

As we look ahead, we are affirming our previously provided guidance for all full-year '26 categories. We continue to expect loans held for investment to increase in the mid-single digits and deposits, excluding brokered deposits, to increase in the mid-single digits as well.

Securities balances are expected to remain stable. From a net interest income perspective, we continue to expect the net interest margin to be in the range of 3.80% to 3.85% for the full year '26.

Net interest income is expected to increase in the mid-single digits compared to '25. From a credit perspective, we expect total provision for credit losses, including off-balance-sheet credit exposure, to normalize, probably more in line with the first quarter than the second quarter.

This expectation is consistent with our continued focus on disciplined credit risk management and the improvement in asset quality metrics we reported in the second quarter. Noninterest income is expected to increase in the mid-single digits for the full year '26.

Noninterest expense is also expected to increase mid-single digits, reflecting continued investment in the business while maintaining our focus on expense discipline. Consistent with our prior messaging, 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.

With that, we'll now move to questions.

Hey, good morning, guys. Thanks for taking my questions.

Wanted to start on the loan growth side. Obviously, really good production this quarter, but still a bunch of paydowns as well.

If I exclude the loan sale, it looks like you guys were kind of tracking below the guide for the year. I guess, if you can just walk us through the comfort level of what would appear to be a kind of ramp in net loan growth in the back half of the year?

Does that assume production continues to increase, or does it assume that payoffs slow, or is it a combination of both? Thanks.

Michael, this is Barry. One piece of context as it relates to Q2 as well, as you mentioned, we reported $35 million worth of growth.

Add back in the mortgage sale, that puts us at 108. We also had $71 million worth of substandard credits that we pushed out of the bank.

From my perspective, I kind of like to think of those three credits getting pushed out of the bank as part of something that is not necessarily reoccurring—desired, but not necessarily reoccurring. That puts us starting off with about $179 million worth of growth for the quarter, Q2.

Then when you're looking into 3 and 4, we still see very strong pipelines. Production has been real steady for us from quarter to quarter.

The payoffs, that's always the tricky part. We're seeing less payoffs than we have maturities each quarter for that CRE book.

Also, we are seeing unexpected payoffs unrelated to what is scheduled to mature. The two kind of balance themselves out.

We do expect to meet the obligation of the mid-single-digit loan growth for the year. We do expect, hopefully, 3 and 4 will be a little less bumpy without the mortgage sale, etc.

We do expect to be at that mid-single-digit level for loan growth. Like I said, we do have $71 million worth of three substandard payoffs that happened this quarter that we don't expect to see those every quarter.

We'd love to see substandards leave the bank, but we don't get that normally every quarter. With that in mind, I do think the quarter looks a little better than just 35 plus the mortgage sale getting you to 108.

I think we're probably close to 179, 180.

That's very helpful context, Barry. I appreciate it.

That leads into kind of the margin question. Was there any prepayment fees or anything like that that impacted this quarter's margin?

Because at 3.84%, you guys are kind of bumping up against the high end of the target. Just trying to balance the puts and takes as we think about the margin over the next couple quarters.

Thanks.

Michael, this is Tom Owens. I'll start, and then I'll turn it over to Joe regarding guidance on the margin.

To your question directly, is there any impact from accelerated prepayment fees or anything like that, I don't believe there's a material impact from that, although do you want to weigh in, Joe?

Thanks, Tom. We're reaffirming our guidance at 3.80% to 3.85%.

Margin is 3.84%. We do expect near-term margin pressure from deposit funding decisions.

We were, as previously announced, in market with some promotional campaigns, and that has increased deposit costs. We've also seen strong pricing competition within our markets, and we have responded accordingly.

With the margin, we're expecting repricing of fixed-rate loans and investment securities to partially offset some of that margin pressure. Using the forward curve that we have, there is a rate increase, and that will flow through the margin more so in the last quarter of the year.

Initially, we're expecting margin pressure in this quarter, and then subsequently we expect that to reverse, which will put us in our mid-guidance range that we have communicated.

Sticking with the 3.80% to 3.85%, Michael.

Helpful. Then maybe just one follow-up to that.

I assume you're assuming a rate hike in December, there wouldn't be much Q4 benefit or full-year benefit if we didn't get it, correct?

No, actually, our forward curve has a rate increase in the month of September, there would be more of a benefit in the month of in the fourth quarter versus the third quarter.

Okay. Any idea what that benefit might be, just roughly?

In terms of margin, we're looking at a couple basis points of margin pressure in the third quarter due to the deposit pricing, and then we expect a couple basis points of margin improvement, pulling us pretty close to the levels that we are right now.

I'll step back. Thanks for all the color.

Thanks, Michael.

Thanks. Good morning.

Morning, Gary.

Hey, could you remind us that $643 million of new production, just how that compares to the first quarter production?

This is Barry. It's very very similar.

We're pretty much in line with that, as well as the additional funding on the revolvers is very much in line with the first quarter as well. We are very pleased to see some upticks, at least through year-end, in the utilization.

The bank as a whole, with all revolvers, that would be including HELOCs on the consumer side, are right at 40% utilization. I will say on the C&I side, the revolvers, the utilization has moved up from 32% at the year-end, moved to 37%, now we're at 38% as of the end of the second quarter.

We are very pleased to see that utilization. A lot of activity going on in part three of our markets, and I think a lot of our customers, especially on the construction side, are benefiting from that additional business.

Appreciate that. Then as it relates to kind of back half of the year, obviously, a positive outlook for loan growth, and you talked about kind of an adjusted second quarter number, if you will.

A lot of banks have had kind of really strong second quarters, but have been more cautious, it seems like, for the back half of the year. Doesn't feel like that's where you guys are.

A lot of ours is, as I mentioned, it's not so much about production, and because the pipelines are very good today for us, and our production has been steady from quarter to quarter. It's more about the payoffs and what we see in terms of the scheduled payoffs extending out, and then how much do we see of unanticipated payoffs coming, both of which are coming from the CRE book specifically.

That phenomenon will play itself out. We'll just have to wait and see.

It's not about the engine, and the engine working and running hard. That's happening.

It's about whether or not we have some more departures than we expect based upon the percent of the maturities that have been leaving us. Then, of course, what we can't see, which is the unexpected, we'll see some of those leave as we do each quarter.

That's going to generate or result in our gain or growth strong or weak more so than the production. The production is there and very predictable.

Got it. Appreciate that color.

Then just vis-à-vis the buyback, I think last quarter you talked about $70 million of kind of being low end of what you'd expect for the year. Any changes to the kind of back half of the year outlook on the buyback?

I would say probably in line with where we've been the first two quarters. It's been right around $20 million per quarter.

We continue to see that into the future. Again, it depends a little bit on what's going on in the market or any other activities that we have.

I would expect that equal to where we've been the first two quarters.

Great, great. Thank you.

Thanks. Good morning.

Morning, Catherine.

You're now past your big conversion, which I know is a big lift. Just wanted to see if you could give us an update on some efficiencies or benefits that you're going to have now that that's behind you, any upcoming tech or AI investments that you're making and what impact any of that may have on the expense outlook?

Thanks.

Catherine, this is Barry. I'll start, and Duane may want to chime in as well.

From standpoint of the conversion, I think moving to a supported environment as opposed to a self-supported environment is going to allow us, over time, to reposition a lot of the jobs that supported our previous deposit system, as it did with our previous loan system. We're going to be shifting some of those jobs into different roles, and then there may be an opportunity to, over time, not have some of the positions.

The application type positions where we were actually doing all the maintenance to the system previously, now that we're running an FIS solution on, name it, deposits, teller, sales platform, image system, from that standpoint, we're going to need to determine what our needs are once we're fully settled in, which we will be later this year. The same is going to be true on the frontline side.

We did staff up during the second quarter to make sure, first quarter and second quarter, to make sure we had as many people manning the station, if you will, for waiting on customers, making sure that we were able to do everything we needed to do during the conversion window. There's a lot of attrition in that area of the bank already.

If we see that we don't need quite what we staffed up to to make sure we had more than adequate number of resources in the branches, if that begins to move down, which it can because, like I said, it's a lot of turnover in those positions, then we may be able to decide that we don't need quite as much as we staffed up to. That would be an efficiency gain as well.

Then as far as being able to go in and make adjustments to the system, do things we need to do probably to drive more business, there's definitely opportunity for us to go in to establish a different pricing mechanisms, whether it be on the deposit side, to possibly offer some products and offer some services that we've not been able to previously. Kind of hard to quantify the value of that today, but we do definitely know that we've been holding off on making some changes on our deposit system that we felt like would be advantageous for us, whether it be getting more customers or getting them at a better price.

We'll be able to do that now that we have moved to a vendor-supported solution. We're very excited about that.

Duane, is there any comments you want to add to that? I would

yeah, I'd like to add. We can't overemphasize how significant that core conversion is for us.

We've talked to many of the analysts out there. That was a 45-year-old core that we were operating that, for the last 20-plus years, was self-supported.

It was a major lift. It was pretty much all hands on deck across the organization.

Every depository customer, every commercial customer, every consumer was impacted by the change. Therefore, our staffs were entirely focused on the process of conversion, post-conversion interaction with clients and all that.

To have a solid overall financial quarter in the midst of that, we're extremely pleased. Like I said, really, really couldn't be prouder of our associates for dealing with that process.

We can't underemphasize that or overemphasize that. To put some meat on the bone, we added roughly 50 to 55 new associates throughout our retail system to handle and fully staff our branch locations for customer interaction.

That was that was an increase in FTEs for the quarter. Now over time, that will trend back downward, and I think at the end of the day, maybe anywhere from 10 to 15 would be permanent.

We'll see some reduction right off the bat in that regard across the system. Then secondly, post-core conversion, there's a three-month or, we're right now normalized or pretty pretty much normalized throughout our our company.

There's been a settling, as Barry mentioned, a settling in, since then of of the whole process and new new ways of doing business. Now we have settled in.

We made a comprehensive presentation to our board yesterday on our AI efforts. Our Chief Information Officer, Chris Davidson, made an outstanding presentation.

We have plans that we see will create efficiencies in the future. It's a little early to to start to pin numbers and and give forecasts in terms of real positive impact of that.

We do see tremendous impact across the organization. Now with that transition and conversion behind us, can really turn our attention to that those efficiency gains, Catherine, that you're hoping to see.

That's great. Okay.

Awesome. Thank you for all of that.

I know that was a really big deal for y'all, I'm glad you gave it some airtime. Then my follow-up was maybe just on that now that you've got the conversion behind you, I know M&A has been something that you've been thinking about.

Any kind of update on that? Especially now that the conversion's behind you, I assume that M&A outlook is maybe an easier lift.

Kind of curious how you're thinking about M&A. Thank you.

I think it's fairly similar to what we've guided. We've had some trepidation in the past, yes, with the conversion upcoming and some of the other things we've dealt with.

We are now fully considering options there. We do feel we have a lot of options.

I would say, from our perspective, we're seeing increased discussion and interest, and it is all size ranges across the board. There's a lot of discussion going on, and we would love to participate in M&A, but remain disciplined and focused on doing good things that add to our company and make our company better.

I'll emphasize, small, medium, large, there are a lot of different things under consideration across the industry, and we're no different. We're looking at every opportunity to make our company better.

Great. Thank you.

Hey, good morning, gentlemen. Just wanted to touch on deposit growth.

Do we see that step down a little bit in the back half of the year just given the affirmation of the guide and the really strong run rate this quarter? Or could we maybe just see the higher end of what could be considered mid-single-digit growth for the year?

Hi, Feddie, this is Joe Bond. Thank you for the question.

We're managing the deposit growth in relation to the loan growth activity, aligning the two. We do have deposit campaigns in place right now.

We're not trying to achieve a much higher pace of growth, we're maintaining the guidance in mid-single digits. That's what we expect in the remainder of this part of the year.

I would like to just touch on a little bit too in terms of the competition and pricing being much higher than what we've expected. It may be the case that we will increase our deposit costs, and as a result, also improve the margin at the bottom line, which will help our margin outlook as well.

We're looking at both managing the appropriate growth of our deposits and the associated costs and the impact on the margin on the bottom line.

Understood. That's really helpful.

Just wanted to ask on credit. Obviously, great to see NPAs down by nearly half following the loan sale here.

Does that impact at all forward expectations for charge-offs, and is maybe something in the mid-teens rather than the low-20s maybe more appropriate going forward, just given the step-down in nonaccruals?

This is Barry, and I would say the answer's yes. I do think that the reduction in NPAs, NPLs definitely has the potential to reduce the actual losses we experience going forward.

I think from the standpoint of provisioning, Duane mentioned earlier that we're thinking for the second half of the year it would be more like somewhere in between the first quarter and the second quarter when you exclude the mortgage sale. I think that's probably where we would be there as it relates to the provision.

As far as the charge-offs go, I do think that the lower nonaccruals that we have, the less charge-offs we're going to have going forward. Although our charge-offs have been pretty muted already, but I would think that that is a fair assumption.

Great. Just one last one, if I could.

Just from a big-picture economic growth perspective, seems like there's a good bit of new investments across the Mid-South. Can you talk about maybe what you're seeing on the ground and maybe what your expectations are, what you're hearing in terms of potential household income and just economic growth potential there?

Feddie, I would say economic activity and so what we're most familiar with, the state of Mississippi, is off the charts relative to historic levels within our state. It does relate partially to the data center builds that are occurring, and there are multiple data center builds across the state.

Along with that, there's other manufacturing in support of everything from battery generation to we have the Nissan plant, a Toyota plant, we have timber, we have on the coast, we have shipping. We have multiple different areas of economic investment and activity across the state that are at levels never seen before in Mississippi.

I would suggest that that spills definitely over into Louisiana and spills over into Alabama, both of which are markets, although we don't have the physical presence in Louisiana, we do bank numerous commercial relationships in that state. All of that plus Alabama is really, really positive for economic activity.

I've been to a couple different presentations where we've had different leadership across both governmental, private sector, etc., talking about ongoing past data center construction, all of that still looks really, really positive. I would say from a Trustmark perspective, we're as positive about the southeastern U.S.

economic activity as we've been in a very long time, if ever before. It's just really dynamic right now.

I would say, Duane, that also is reflected in our line utilization that we've seen, especially on the revolving C&I side. Then we are seeing more activity create from the municipality side as well as these projects have to be funded.

We are seeing some good activity there as well.

Understood. Really helpful perspective.

I appreciate it. I'll step back.

Thank you.

Hey, thanks. Good morning.

I had a similar question that you already answered about the net charge-offs changing. Barry, I'm curious if the CECL rules allow you to revisit kind of lifetime losses, or was that already done in the release you had this quarter?

Right.

That's correct, Christopher. Every quarter we're updating our historical averages to recalibrate our probability of default, loss given default.

As we do encounter lower charge-offs as we move forward, that will, in fact, result in potentially a little bit lower provisioning. To make sure I'm catching your question correctly there.

Yes, that's correct. It's an ongoing process, and we may see some further release in future quarters.

We should. Now the loss we took on the mortgage sale obviously flows in and impacts the mortgage book itself.

The reality of it is the discount we took two years ago same quarter on the mortgage sale was 29 cents. The discount we took this time, same criteria for the mortgages which we sold, the discount was 19 cents.

While we maybe were provisioning around 23 cents, that's the portion of the 29 previously that was credit-related. Now that same portion that's credit-related of the 19 is 13.

For these mortgages that meet this criteria that we just sold, we were provisioning 23 cents, now we're provisioning 13 cents on a go-forward basis. That more than anything else will help us on our provisioning for those loans that meet the criteria we just sold in the future.

Great, Barry. Thanks for that.

Just a question on deposits. The success you had in deposits this quarter, is there any sort of lower bound on the loan-to-deposit ratio where you don't want it to get below a certain level?

I'll start. Chris, this is Tom Owens.

Historically, 85% has probably been the bottom end. You've heard us talk for any number of quarters now on being intent on maintaining the loan-to-deposit ratio below 90%.

We're kind of midway between 85% and 90% now. I would say 85% is a practical matter.

Sounds good, Tom. Thanks for sharing that, and thanks for hosting us all this morning.

Thank you.

Thank you again for joining us on our second quarter call, and we look forward to connecting again after the third quarter. Hope everybody has a great rest of the week, and we'll talk to you then.