Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Components of the Trustmark's Net Investment in its Sales-Type and Direct Financing Leases

The table below summarizes the components of Trustmark's net investment in its sales-type and direct financing leases for the periods presented ($ in thousands):

	September 30, 2024			December 31, 2023
Leases receivable	$	285,239		$	161,319
Unearned income		(48,170	)		(29,011	)
Initial direct costs		2,455			1,326
Unguaranteed lease residual		8,209			4,101
Total net investment	$	247,733		$	137,735

Minimum Future Lease Payments for Trustmark's Leases Receivable

The table below details the minimum future lease payments for Trustmark's leases receivable at September 30, 2024 ($ in thousands):

	September 30, 2024
2024 (excluding the nine months ended September 30, 2024)	$	13,948
2025		49,378
2026		48,274
2027		60,828
2028		49,986
Thereafter		62,825
Lease receivable	$	285,239

Components of Net Lease Cost

The following table details the components of net lease cost for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Finance leases:
Amortization of right-of-use assets	$	113		$	113		$	339		$	673
Interest on lease liabilities		37			41			113			124
Operating lease cost		1,344			1,258			3,756			3,566
Short-term lease cost		61			51			173			181
Variable lease cost		218			192			623			639
Sublease income		(58	)		(3	)		(63	)		(9	)
Net lease cost	$	1,715		$	1,652		$	4,941		$	5,174

Cash Payments Included in Measurement of Lease Liabilities

The following table details the cash payments included in the measurement of lease liabilities during the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2024		2023
Finance leases:
Operating cash flows included in operating activities	$	113	$	124
Financing cash flows included in payments under finance lease obligations		315		627
Operating leases:
Operating cash flows (fixed payments) included in other operating activities, net		3,535		3,022
Operating cash flows (liability reduction) included in other operating activities, net		2,515		2,425

Balance Sheet Information and Weighted-Average Lease Terms and Discount Rates Related to Leases

The following table details balance sheet information, as well as weighted-average lease terms and discount rates, related to leases at September 30, 2024 and December 31, 2023 ($ in thousands):

	September 30, 2024			December 31, 2023
Finance lease right-of-use assets, net of accumulated depreciation	$	3,412		$	3,751
Finance lease liabilities		4,019			4,334
Operating lease right-of-use assets		36,034			35,711
Operating lease liabilities		39,689			39,097
Weighted-average lease term:
Finance leases	7.60 years			8.34 years
Operating leases	9.50 years			10.28 years
Weighted-average discount rate:
Finance leases		3.61	%		3.61	%
Operating leases		3.72	%		3.67	%

Future Minimum Rental Commitments Under Finance and Operating Leases

At September 30, 2024, future minimum rental commitments under finance and operating leases were as follows ($ in thousands):

	Finance Leases			Operating Leases
2024 (excluding the nine months ended September 30, 2024)	$	145		$	1,312
2025		584			5,292
2026		589			5,169
2027		594			5,202
2028		599			4,831
Thereafter		2,086			25,922
Total minimum lease payments		4,597			47,728
Less imputed interest		(578	)		(8,039	)
Lease liabilities	$	4,019		$	39,689