Revenue from Contracts with Customers

9 Months Ended

Sep. 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. Other real estate sales for the three and nine months ended September 30, 2022 resulted in a net losses of $11 thousand and $465 thousand, respectively, compared to a net losses of $734 thousand and $716 thousand for the three and nine months ended September 30, 2021, respectively.

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

	Three Months Ended September 30, 2022								Three Months Ended September 30, 2021
	Topic 606			Not Topic 606 (1)		Total			Topic 606		Not Topic 606 (1)			Total
General Banking Segment
Service charges on deposit accounts	$	11,296		$	—	$	11,296		$	8,893	$	—		$	8,893
Bank card and other fees		7,644			1,648		9,292			7,561		979			8,540
Mortgage banking, net		—			6,876		6,876			—		14,004			14,004
Wealth management		263			—		263			13		—			13
Other, net		1,724			239		1,963			1,826		(413	)		1,413
Total noninterest income	$	20,927		$	8,763	$	29,690		$	18,293	$	14,570		$	32,863
Wealth Management Segment
Service charges on deposit accounts	$	22		$	—	$	22		$	18	$	—		$	18
Bank card and other fees		13			—		13			9		—			9
Wealth management		8,515			—		8,515			9,058		—			9,058
Other, net		447			10		457			32		9			41
Total noninterest income	$	8,997		$	10	$	9,007		$	9,117	$	9		$	9,126
Insurance Segment
Insurance commissions	$	13,911		$	—	$	13,911		$	12,133	$	—		$	12,133
Other, net		(2	)		—		(2	)		27		—			27
Total noninterest income	$	13,909		$	—	$	13,909		$	12,160	$	—		$	12,160
Consolidated
Service charges on deposit accounts	$	11,318		$	—	$	11,318		$	8,911	$	—		$	8,911
Bank card and other fees		7,657			1,648		9,305			7,570		979			8,549
Mortgage banking, net		—			6,876		6,876			—		14,004			14,004
Insurance commissions		13,911			—		13,911			12,133		—			12,133
Wealth management		8,778			—		8,778			9,071		—			9,071
Other, net		2,169			249		2,418			1,885		(404	)		1,481
Total noninterest income	$	43,833		$	8,773	$	52,606		$	39,570	$	14,579		$	54,149

(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.

	Nine Months Ended September 30, 2022								Nine Months Ended September 30, 2021
	Topic 606			Not Topic 606 (1)		Total			Topic 606		Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	30,932		$	—	$	30,932		$	23,822	$	—	$	23,822
Bank card and other fees		23,726			4,153		27,879			23,264		3,031		26,295
Mortgage banking, net		—			24,898		24,898			—		52,141		52,141
Wealth management		468			—		468			33		—		33
Other, net		6,097			896		6,993			4,913		478		5,391
Total noninterest income	$	61,223		$	29,947	$	91,170		$	52,032	$	55,650	$	107,682
Wealth Management Segment
Service charges on deposit accounts	$	63		$	—	$	63		$	58	$	—	$	58
Bank card and other fees		35			—		35			27		—		27
Wealth management		26,466			—		26,466			26,400		—		26,400
Other, net		512			29		541			99		25		124
Total noninterest income	$	27,076		$	29	$	27,105		$	26,584	$	25	$	26,609
Insurance Segment
Insurance commissions	$	41,702		$	—	$	41,702		$	36,795	$	—	$	36,795
Other, net		(3	)		—		(3	)		57		—		57
Total noninterest income	$	41,699		$	—	$	41,699		$	36,852	$	—	$	36,852
Consolidated
Service charges on deposit accounts	$	30,995		$	—	$	30,995		$	23,880	$	—	$	23,880
Bank card and other fees		23,761			4,153		27,914			23,291		3,031		26,322
Mortgage banking, net		—			24,898		24,898			—		52,141		52,141
Insurance commissions		41,702			—		41,702			36,795		—		36,795
Wealth management		26,934			—		26,934			26,433		—		26,433
Other, net		6,606			925		7,531			5,069		503		5,572
Total noninterest income	$	129,998		$	29,976	$	159,974		$	115,468	$	55,675	$	171,143

(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.