Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 20 – Segment Information

Trustmark’s management reporting structure includes three segments: General Banking, Wealth Management and Insurance. The General Banking Segment is responsible for all traditional banking products and services, including loans and deposits. The General Banking Segment also consists of internal operations such as Human Resources, Executive Administration, Treasury (Funds Management), Public Affairs and Corporate Finance. The Wealth Management Segment provides customized solutions for customers by integrating financial services with traditional banking products and services such as money management, full-service brokerage, financial planning, personal and institutional trust and retirement services. Through FBBI, Trustmark’s Insurance Segment provides a full range of retail insurance products including commercial risk management products, bonding, group benefits and personal lines coverage.

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):

	Years Ended December 31,
	2022			2021			2020
General Banking
Net interest income	$	489,398		$	413,201		$	420,225
PCL (1)		22,913			(24,439	)		45,058
Noninterest income		116,350			137,874			197,691
Noninterest expense (1)		531,397			421,561			401,810
Income before income taxes		51,438			153,953			171,048
Income taxes		(3,683	)		22,706			25,109
General banking net income	$	55,121		$	131,247		$	145,939
Selected Financial Information
Total assets	$	17,710,673		$	17,275,438		$	16,226,358
Depreciation and amortization	$	38,909		$	44,776		$	40,351
Wealth Management
Net interest income	$	5,321		$	5,161		$	6,082
PCL		(21	)		(9	)		(11	)
Noninterest income		35,072			35,420			31,634
Noninterest expense		32,873			31,721			30,318
Income before income taxes		7,541			8,869			7,409
Income taxes		1,870			2,219			1,853
Wealth Management net income	$	5,671		$	6,650		$	5,556
Selected Financial Information
Total assets	$	214,313		$	232,997		$	242,429
Depreciation and amortization	$	288		$	269		$	274
Insurance
Net interest income	$	(11	)	$	(11	)	$	230
Noninterest income		53,722			48,616			45,268
Noninterest expense		38,943			36,014			34,173
Income before income taxes		14,768			12,591			11,325
Income taxes		3,673			3,123			2,795
Insurance net income	$	11,095		$	9,468		$	8,530
Selected Financial Information
Total assets	$	90,492		$	87,201		$	83,053
Depreciation and amortization	$	685		$	768		$	700
Consolidated
Net interest income	$	494,708		$	418,351		$	426,537
PCL (1)		22,892			(24,448	)		45,047
Noninterest income		205,144			221,910			274,593
Noninterest expense (1)		603,213			489,296			466,301
Income before income taxes		73,747			175,413			189,782
Income taxes		1,860			28,048			29,757
Consolidated net income	$	71,887		$	147,365		$	160,025
Selected Financial Information
Total assets	$	18,015,478		$	17,595,636		$	16,551,840
Depreciation and amortization	$	39,882		$	45,813		$	41,325

(1)During 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.