Trustmark repurchases shares from Treasury

by Wally Northway

Published: December 10,2009

Tags: banking and finance, federal agency, federal government, recession, stimulus, TARP

JACKSON — Trustmark Corporation has completed the repurchase of its 215,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, from the U. S. Treasury Department at a purchase price of $215 million plus a final accrued dividend of $716.7 thousand.

The preferred stock and a warrant to purchase 1,647,931 shares of common stock were issued to the Treasury Department in November 2008 under the Capital Purchase Program. Trustmark intends to seek agreement with the Treasury Department for the repurchase of the warrant.

The repurchase of the preferred stock will result in a one-time, non-cash charge of approximately $8.2 million, or $0.14 per share, in Trustmark’s fourth quarter financial statements for the unaccreted discount recorded at the date of issuance of the preferred stock.

Richard G. Hickson, Trustmark chairman and CEO, said, “We believe the repurchase of these preferred shares is in the best interests of our shareholders. Based upon our continued solid profitability and strong capital base, Trustmark remains well positioned to meet the needs of our customers as well as maintain its financial flexibility to take advantage of opportunities for growth and expansion in the marketplace.”

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