Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Note 9 – Revenue from Contracts with Customers

Trustmark accounts for revenue from contracts with customers in accordance with FASB ASC Topic 606, “Revenue from Contracts with Customers,” which provides that revenue be recognized in a manner that depicts the transfer of goods or services to a customer in an amount that reflects the consideration Trustmark expects to be entitled to in exchange for those goods or services. Revenue from contracts with customers is recognized either over time in a manner that depicts Trustmark’s performance, or at a point in time when control of the goods or services are transferred to the customer. Trustmark’s noninterest income, excluding all of mortgage banking, net and securities gains (losses), net and portions of bank card and other fees and other income, are considered within the scope of FASB ASC Topic 606. Gains or losses on the sale of other real estate, which are included in Trustmark’s noninterest expense as other real estate expense, are also within the scope of FASB ASC Topic 606.

Trustmark records a gain or loss from the sale of other real estate when control of the property transfers to the buyer. Trustmark records the gain or loss from the sale of other real estate in noninterest expense as other real estate expense, net. There were no sales of other real estate properties, and therefore, no net gain or loss on the sales, during the three months ended June 30, 2022 compared to a net loss of $41 thousand for the three months ended June 30, 2021. Other real estate sales for the six months ended June 30, 2022 resulted in a net loss of $455 thousand compared to a net gain of $18 thousand for the six months ended June 30, 2021.

The following table presents noninterest income disaggregated by reportable operating segment and revenue stream for the periods presented ($ in thousands):

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
	Topic 606		Not Topic 606 (1)		Total		Topic 606		Not Topic 606 (1)			Total
General Banking Segment
Service charges on deposit accounts	$	10,205	$	—	$	10,205	$	7,591	$	—		$	7,591
Bank card and other fees		8,665		1,490		10,155		8,519		(228	)		8,291
Mortgage banking, net		—		8,149		8,149		—		17,333			17,333
Wealth management		181		—		181		2		—			2
Other, net		1,855		—		1,855		1,699		251			1,950
Total noninterest income	$	20,906	$	9,639	$	30,545	$	17,811	$	17,356		$	35,167
Wealth Management Segment
Service charges on deposit accounts	$	21	$	—	$	21	$	22	$	—		$	22
Bank card and other fees		12		—		12		10		—			10
Wealth management		8,921		—		8,921		8,944		—			8,944
Other, net		33		12		45		35		9			44
Total noninterest income	$	8,987	$	12	$	8,999	$	9,011	$	9		$	9,020
Insurance Segment
Insurance commissions	$	13,702	$	—	$	13,702	$	12,217	$	—		$	12,217
Other, net		7		—		7		7		—			7
Total noninterest income	$	13,709	$	—	$	13,709	$	12,224	$	—		$	12,224
Consolidated
Service charges on deposit accounts	$	10,226	$	—	$	10,226	$	7,613	$	—		$	7,613
Bank card and other fees		8,677		1,490		10,167		8,529		(228	)		8,301
Mortgage banking, net		—		8,149		8,149		—		17,333			17,333
Insurance commissions		13,702		—		13,702		12,217		—			12,217
Wealth management		9,102		—		9,102		8,946		—			8,946
Other, net		1,895		12		1,907		1,741		260			2,001
Total noninterest income	$	43,602	$	9,651	$	53,253	$	39,046	$	17,365		$	56,411

(1)Noninterest income not in scope for FASB ASC Topic 606 includes customer derivatives revenue and miscellaneous credit card fee income within bank card and other fees; mortgage banking, net; amortization of tax credits, accretion of the FDIC indemnification asset, cash surrender value on various life insurance policies, earnings on Trustmark’s non-qualified deferred compensation plans, other partnership investments and rental income within other, net; and security gains (losses), net.

	Six Months Ended June 30, 2022								Six Months Ended June 30, 2021
	Topic 606			Not Topic 606 (1)		Total			Topic 606		Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	19,636		$	—	$	19,636		$	14,929	$	—	$	14,929
Bank card and other fees		16,082			2,505		18,587			15,703		2,052		17,755
Mortgage banking, net		—			18,022		18,022			—		38,137		38,137
Wealth management		205			—		205			20		—		20
Other, net		4,373			657		5,030			3,087		891		3,978
Total noninterest income	$	40,296		$	21,184	$	61,480		$	33,739	$	41,080	$	74,819
Wealth Management Segment
Service charges on deposit accounts	$	41		$	—	$	41		$	40	$	—	$	40
Bank card and other fees		22			—		22			18		—		18
Wealth management		17,951			—		17,951			17,342		—		17,342
Other, net		65			19		84			67		16		83
Total noninterest income	$	18,079		$	19	$	18,098		$	17,467	$	16	$	17,483
Insurance Segment
Insurance commissions	$	27,791		$	—	$	27,791		$	24,662	$	—	$	24,662
Other, net		(1	)		—		(1	)		30		—		30
Total noninterest income	$	27,790		$	—	$	27,790		$	24,692	$	—	$	24,692
Consolidated
Service charges on deposit accounts	$	19,677		$	—	$	19,677		$	14,969	$	—	$	14,969
Bank card and other fees		16,104			2,505		18,609			15,721		2,052		17,773
Mortgage banking, net		—			18,022		18,022			—		38,137		38,137
Insurance commissions		27,791			—		27,791			24,662		—		24,662
Wealth management		18,156			—		18,156			17,362		—		17,362
Other, net		4,437			676		5,113			3,184		907		4,091
Total noninterest income	$	86,165		$	21,203	$	107,368		$	75,898	$	41,096	$	116,994

(1)Noninterest income not in scope for FASB ASC Topic 606 includes customer derivatives revenue and miscellaneous credit card fee income within bank card and other fees; mortgage banking, net; amortization of tax credits, accretion of the FDIC indemnification asset, cash surrender value on various life insurance policies, earnings on Trustmark’s non-qualified deferred compensation plans, other partnership investments and rental income within other, net; and security gains (losses), net.