Trustmark Corporation (NASDAQ:TRMK) today completed the issuance and
sale of $215 million of Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, to the U.S. Treasury as part of the government’s Capital
Purchase Program, a voluntary initiative for U.S. financial institutions
designed to support the economy by increasing financing to businesses
and consumers. Trustmark’s preliminary approval to participate in this
program was announced on November 6, 2008. Trustmark’s Series A
Preferred Stock will pay a cumulative annual dividend rate of 5% for the
first five years and will reset to an annual rate of 9% after year five.
The Series A Preferred Stock is callable by Trustmark, in whole or in
part, at par after three years. Trustmark may call these securities
during the first three years, also in whole or in part, but only with
the proceeds of newly-issued Tier 1 equity capital in an amount of at
least 25% of the $215 million. In conjunction with the purchase of
Trustmark’s Series A Preferred Stock, Treasury received a warrant to
purchase 1,647,931 shares of Trustmark common stock at an exercise price
of $19.57 per share. The proceeds from the sale of the Series A
Preferred Stock increases Trustmark’s total risk-based capital ratio
from 11.80% to 14.70% on a pro forma basis at September 30, 2008.
Richard G. Hickson, Chairman and CEO stated, "We believe the U.S.
Treasury Capital Purchase Program provides an opportunity for strong,
healthy banks like Trustmark to support the recovery of the U.S.
economy. Trustmark’s participation in the Capital Purchase Program
further strengthens our existing solid capital base and provides
additional flexibility in an uncertain economic environment. This
cost-effective capital will support Trustmark’s growth and expansion
opportunities as well as support the Treasury’s efforts to facilitate
additional lending in our markets.”
Trustmark is a financial services company providing banking and
financial solutions through over 150 offices and 2,600 associates in
Florida, Mississippi, Tennessee and Texas.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document are not statements of
historical fact and constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, statements
relating to anticipated future operating and financial performance
measures, including net interest margin, credit quality, business
initiatives, growth opportunities and growth rates, among other things
and encompass any estimate, prediction, expectation, projection,
opinion, anticipation, outlook or statement of belief included therein
as well as the management assumptions underlying these forward-looking
statements. Should one or more of these risks materialize, or should any
such underlying assumptions prove to be significantly different, actual
results may vary significantly from those anticipated, estimated,
projected or expected.
These risks could cause actual results to differ materially from current
expectations of Management and include, but are not limited to, changes
in the level of nonperforming assets and charge-offs, local, state and
national economic and market conditions, including the extent and
duration of current volatility in the credit and financial markets,
material changes in market interest rates, the costs and effects of
litigation and of unexpected or adverse outcomes in such litigation,
competition in loan and deposit pricing, as well as the entry of new
competitors into our markets through de novo expansion and acquisitions,
changes in existing regulations or the adoption of new regulations,
natural disasters, acts of war or terrorism, changes in consumer
spending, borrowings and savings habits, technological changes, changes
in the financial performance or condition of Trustmark’s borrowers, the
ability to control expenses, changes in Trustmark’s compensation and
benefit plans, greater than expected costs or difficulties related to
the integration of new products and lines of business and other risks
described in Trustmark’s filings with the Securities and Exchange
Commission. Although Management believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. Trustmark
undertakes no obligation to update or revise any of this information,
whether as the result of new information, future events or developments
or otherwise.
