Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 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 September 30, 2023 result in a net loss of $47 thousand compared to a net loss of $11 thousand for the three months ended September 30, 2022. Other real estate sales for the nine months ended September 30, 2023 resulted in a net loss of $159 thousand compared to a net loss of $465 thousand for the nine months ended September 30, 2022.

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

	Three Months Ended September 30, 2023							Three Months Ended September 30, 2022
	Topic 606		Not Topic 606 (1)			Total		Topic 606			Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	11,052	$	—		$	11,052	$	11,296		$	—	$	11,296
Bank card and other fees		7,332		873			8,205		7,644			1,648		9,292
Mortgage banking, net		—		6,458			6,458		—			6,876		6,876
Wealth management		202		—			202		263			—		263
Other, net		2,843		(579	)		2,264		1,724			239		1,963
Total noninterest income	$	21,429	$	6,752		$	28,181	$	20,927		$	8,763	$	29,690
Wealth Management Segment
Service charges on deposit accounts	$	22	$	—		$	22	$	22		$	—	$	22
Bank card and other fees		12		—			12		13			—		13
Wealth management		8,571		—			8,571		8,515			—		8,515
Other, net		41		94			135		447			10		457
Total noninterest income	$	8,646	$	94		$	8,740	$	8,997		$	10	$	9,007
Insurance Segment
Insurance commissions	$	15,303	$	—		$	15,303	$	13,911		$	—	$	13,911
Other, net		—		—			—		(2	)		—		(2	)
Total noninterest income	$	15,303	$	—		$	15,303	$	13,909		$	—	$	13,909
Consolidated
Service charges on deposit accounts	$	11,074	$	—		$	11,074	$	11,318		$	—	$	11,318
Bank card and other fees		7,344		873			8,217		7,657			1,648		9,305
Mortgage banking, net		—		6,458			6,458		—			6,876		6,876
Insurance commissions		15,303		—			15,303		13,911			—		13,911
Wealth management		8,773		—			8,773		8,778			—		8,778
Other, net		2,884		(485	)		2,399		2,169			249		2,418
Total noninterest income	$	45,378	$	6,846		$	52,224	$	43,833		$	8,773	$	52,606

(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, 2023							Nine Months Ended September 30, 2022
	Topic 606		Not Topic 606 (1)			Total		Topic 606			Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	32,040	$	—		$	32,040	$	30,932		$	—	$	30,932
Bank card and other fees		23,011		1,890			24,901		23,726			4,153		27,879
Mortgage banking, net		—		20,697			20,697		—			24,898		24,898
Wealth management		650		—			650		468			—		468
Other, net		8,763		(1,516	)		7,247		6,097			896		6,993
Total noninterest income	$	64,464	$	21,071		$	85,535	$	61,223		$	29,947	$	91,170
Wealth Management Segment
Service charges on deposit accounts	$	65	$	—		$	65	$	63		$	—	$	63
Bank card and other fees		36		—			36		35			—		35
Wealth management		25,785		—			25,785		26,466			—		26,466
Other, net		122		285			407		512			29		541
Total noninterest income	$	26,008	$	285		$	26,293	$	27,076		$	29	$	27,105
Insurance Segment
Insurance commissions	$	44,372	$	—		$	44,372	$	41,702		$	—	$	41,702
Other, net		954		—			954		(3	)		—		(3	)
Total noninterest income	$	45,326	$	—		$	45,326	$	41,699		$	—	$	41,699
Consolidated
Service charges on deposit accounts	$	32,105	$	—		$	32,105	$	30,995		$	—	$	30,995
Bank card and other fees		23,047		1,890			24,937		23,761			4,153		27,914
Mortgage banking, net		—		20,697			20,697		—			24,898		24,898
Insurance commissions		44,372		—			44,372		41,702			—		41,702
Wealth management		26,435		—			26,435		26,934			—		26,934
Other, net		9,839		(1,231	)		8,608		6,606			925		7,531
Total noninterest income	$	135,798	$	21,356		$	157,154	$	129,998		$	29,976	$	159,974

(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.