Segment Information

3 Months Ended

Mar. 31, 2022

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 2021 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 March 31,
	2022			2021
General Banking
Net interest income	$	97,991		$	101,108
Provision for credit losses (1)		(1,959	)		(19,866	)
Noninterest income		30,935			39,652
Noninterest expense (1)		103,333			103,964
Income before income taxes		27,552			56,662
Income taxes		3,101			8,123
General banking net income	$	24,451		$	48,539
Selected Financial Information
Total assets	$	17,123,482		$	16,555,481
Depreciation and amortization	$	10,176		$	10,864
Wealth Management
Net interest income	$	1,356		$	1,231
Provision for credit losses		(7	)		(2	)
Noninterest income		9,099			8,463
Noninterest expense		8,282			8,194
Income before income taxes		2,180			1,502
Income taxes		546			376
Wealth management net income	$	1,634		$	1,126
Selected Financial Information
Total assets	$	231,295		$	243,132
Depreciation and amortization	$	73		$	68
Insurance
Net interest income	$	(3	)	$	(3	)
Noninterest income		14,081			12,468
Noninterest expense		9,904			9,390
Income before income taxes		4,174			3,075
Income taxes		1,048			778
Insurance net income	$	3,126		$	2,297
Selected Financial Information
Total assets	$	86,774		$	79,700
Depreciation and amortization	$	192		$	194
Consolidated
Net interest income	$	99,344		$	102,336
Provision for credit losses (1)		(1,966	)		(19,868	)
Noninterest income		54,115			60,583
Noninterest expense (1)		121,519			121,548
Income before income taxes		33,906			61,239
Income taxes		4,695			9,277
Consolidated net income	$	29,211		$	51,962
Selected Financial Information
Total assets	$	17,441,551		$	16,878,313
Depreciation and amortization	$	10,441		$	11,126

(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.