Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Note 19 – Segment Information

Trustmark’s management reporting structure includes two segments: General Banking and Wealth Management. For a complete overview of Trustmark’s operating segments, see Note 21 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2024 Annual Report.

Trustmark's reportable segments are determined by the Chief Executive Officer (CEO), who is the designated chief operating decision maker (CODM), based upon information provided about Trustmark's products and services offered. The reportable segments are also distinguished by the level of information provided to the CEO, who uses such information to review performance of various lines of business, which are then aggregated if operating performance, products and services and customers are similar. The CEO evaluates the financial performance of Trustmark's lines of business, such as evaluating revenue streams, significant expenses and budget to actual results, in assessing the performance of Trustmark's reportable segments and in the determination of allocating resources.

The Insurance Segment is included in discontinued operations for the three months ended March 31, 2024 in the accompanying consolidated balance sheets and the consolidated statements of income (loss). See Note 2 - Discontinued Operations for additional information about discontinued operations.

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 tables disclose financial information by reportable segment for the periods presented ($ in thousands):

Three Months Ended March 31, 2025	General Banking			Wealth Management			Consolidated
Interest income	$	226,158		$	2,989		$	229,147
Interest expense		76,297			795			77,092
Funds transfer pricing, net		460			(460	)		—
Net interest income		150,321			1,734			152,055
PCL		5,297			(3	)		5,294
Net interest income after PCL		145,024			1,737			146,761
Service charges on deposit accounts		10,615			21			10,636
Bank card and other fees		7,625			39			7,664
Mortgage banking, net		8,771			—			8,771
Wealth management		181			9,362			9,543
Other, net		5,918			52			5,970
Internal allocations		(96	)		96			—
Noninterest income (loss)		33,014			9,570			42,584
Salaries and employee benefits		62,871			5,621			68,492
Services and fees		25,599			648			26,247
Other segment expenses (1)		28,847			425			29,272
Internal allocations		(1,482	)		1,482			—
Noninterest expense		115,835			8,176			124,011
Income from continuing operations before income taxes		62,203			3,131			65,334
Income taxes from continuing operations		10,922			779			11,701
Consolidated income from continuing operations	$	51,281		$	2,352		$	53,633
Selected Financial Information
Total assets from continuing operations	$	18,098,364		$	197,839		$	18,296,203
Depreciation and amortization from continuing operations	$	8,509		$	62		$	8,571

(1) Other segment expenses for the General Banking Segment include net occupancy-premises, equipment expense, FDIC assessment expense, other real estate expense, net, loan expense and other miscellaneous expense. Other segment expenses for the Wealth Management Segment include net occupancy-premises, equipment expense, FDIC assessment expense, loan expense and other miscellaneous expense.

Three Months Ended March 31, 2024	General Banking			Wealth Management			Consolidated
Interest income	$	227,571		$	2,269		$	229,840
Interest expense		96,502			508			97,010
Funds transfer pricing, net		445			(445	)		—
Net interest income		131,514			1,316			132,830
PCL		7,348			168			7,516
Net interest income after PCL		124,166			1,148			125,314
Service charges on deposit accounts		10,936			22			10,958
Bank card and other fees		7,392			36			7,428
Mortgage banking, net		8,915			—			8,915
Wealth management		189			8,763			8,952
Other, net		3,060			42			3,102
Internal allocations		(94	)		94			—
Noninterest income (loss)		30,398			8,957			39,355
Salaries and employee benefits		60,103			5,384			65,487
Services and fees		23,739			692			24,431
Other segment expenses (1)		29,287			459			29,746
Internal allocations		(1,456	)		1,456			—
Noninterest expense		111,673			7,991			119,664
Income from continuing operations before income taxes		42,891			2,114			45,005
Income taxes from continuing operations		6,309			523			6,832
Consolidated income from continuing operations	$	36,582		$	1,591		$	38,173
Selected Financial Information
Total assets from continuing operations	$	18,125,354		$	178,165		$	18,303,519
Depreciation and amortization from continuing operations	$	8,367		$	62		$	8,429

(1) Other segment expenses for the General Banking Segment include net occupancy-premises, equipment expense, FDIC assessment expense, other real estate expense, net, loan expense and other miscellaneous expense. Other segment expenses for the Wealth Management Segment include net occupancy-premises, equipment expense, FDIC assessment expense, loan expense and other miscellaneous expense.