Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 18 – Segment Information

Trustmark’s management reporting structure includes three segments: General Banking, Wealth Management and Insurance. For a complete overview of Trustmark’s operating segments, see Note 21 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2020 Annual Report.

The accounting policies of each reportable segment are the same as those of Trustmark except for its internal allocations. Noninterest expenses for back-office operations support are allocated to segments based on estimated uses of those services. Trustmark measures the net interest income of its business segments with a process that assigns cost of funds or earnings credit on a matched-term basis. This process, called “funds transfer pricing”, charges an appropriate cost of funds to assets held by a business unit, or credits the business unit for potential earnings for carrying liabilities. The net of these charges and credits flows through to the General Banking Segment, which contains the management team responsible for determining TNB’s funding and interest rate risk strategies.

The following table discloses financial information by reportable segment for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
General Banking
Net interest income	$	96,928		$	104,738		$	316,205		$	310,517
Provision for credit losses (1)		(3,539	)		969			(22,865	)		50,556
Noninterest income		32,863			54,422			107,682			149,649
Noninterest expense (1)		112,996			101,388			319,159			298,168
Income before income taxes		20,334			56,803			127,593			111,442
Income taxes		3,693			7,971			18,953			14,155
General banking net income	$	16,641		$	48,832		$	108,640		$	97,287
Selected Financial Information
Total assets	$	17,015,176		$	15,255,359		$	17,015,176		$	15,255,359
Depreciation and amortization	$	11,653		$	10,081		$	33,563		$	29,297
Wealth Management
Net interest income	$	1,341		$	1,401		$	3,828		$	4,481
Provision for credit losses		(2	)		(2,213	)		(7	)		(9	)
Noninterest income		9,126			7,694			26,609			23,760
Noninterest expense		7,747			7,067			23,690			22,527
Income before income taxes		2,722			4,241			6,754			5,723
Income taxes		685			1,009			1,694			1,380
Wealth management net income	$	2,037		$	3,232		$	5,060		$	4,343
Selected Financial Information
Total assets	$	265,672		$	224,773		$	265,672		$	224,773
Depreciation and amortization	$	65		$	69		$	199		$	203
Insurance
Net interest income	$	(3	)	$	68		$	(8	)	$	161
Noninterest income		12,160			11,585			36,852			35,067
Noninterest expense		8,857			8,508			26,978			25,712
Income before income taxes		3,300			3,145			9,866			9,516
Income taxes		778			769			2,423			2,338
Insurance net income	$	2,522		$	2,376		$	7,443		$	7,178
Selected Financial Information
Total assets	$	83,796		$	78,030		$	83,796		$	78,030
Depreciation and amortization	$	191		$	194		$	575		$	500
Consolidated
Net interest income	$	98,266		$	106,207		$	320,025		$	315,159
Provision for credit losses (1)		(3,541	)		(1,244	)		(22,872	)		50,547
Noninterest income		54,149			73,701			171,143			208,476
Noninterest expense (1)		129,600			116,963			369,827			346,407
Income before income taxes		26,356			64,189			144,213			126,681
Income taxes		5,156			9,749			23,070			17,873
Consolidated net income	$	21,200		$	54,440		$	121,143		$	108,808
Selected Financial Information
Total assets	$	17,364,644		$	15,558,162		$	17,364,644		$	15,558,162
Depreciation and amortization	$	11,909		$	10,344		$	34,337		$	30,000

(1)During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to PCL, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.