Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2023

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, net. Other real estate sales for the three months ended March 31, 2023 resulted in a net loss of $78 thousand compared to a net loss of $455 thousand for the three months ended March 31, 2022.

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

	Three Months Ended March 31, 2023									Three Months Ended March 31, 2022
	Topic 606			Not Topic 606 (1)			Total			Topic 606			Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	10,315		$	—		$	10,315		$	9,431		$	—	$	9,431
Bank card and other fees		7,643			149			7,792			7,417			1,015		8,432
Mortgage banking, net		—			7,639			7,639			—			9,873		9,873
Wealth management		233			—			233			24			—		24
Other, net		2,988			(608	)		2,380			2,518			657		3,175
Total noninterest income	$	21,179		$	7,180		$	28,359		$	19,390		$	11,545	$	30,935
Wealth Management Segment
Service charges on deposit accounts	$	21		$	—		$	21		$	20		$	—	$	20
Bank card and other fees		11			—			11			10			—		10
Wealth management		8,547			—			8,547			9,030			—		9,030
Other, net		45			95			140			32			7		39
Total noninterest income	$	8,624		$	95		$	8,719		$	9,092		$	7	$	9,099
Insurance Segment
Insurance commissions	$	14,305		$	—		$	14,305		$	14,089		$	—	$	14,089
Other, net		(6	)		—			(6	)		(8	)		—		(8	)
Total noninterest income	$	14,299		$	—		$	14,299		$	14,081		$	—	$	14,081
Consolidated
Service charges on deposit accounts	$	10,336		$	—		$	10,336		$	9,451		$	—	$	9,451
Bank card and other fees		7,654			149			7,803			7,427			1,015		8,442
Mortgage banking, net		—			7,639			7,639			—			9,873		9,873
Insurance commissions		14,305			—			14,305			14,089			—		14,089
Wealth management		8,780			—			8,780			9,054			—		9,054
Other, net		3,027			(513	)		2,514			2,542			664		3,206
Total noninterest income	$	44,102		$	7,275		$	51,377		$	42,563		$	11,552	$	54,115

(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.