Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

Note 17 – Segment Information

Trustmark's management reporting structure includes three segments: General Banking, Wealth Management and Insurance.  General Banking is primarily responsible for all traditional banking products and services, including loans and deposits. General Banking also consists of internal operations such as Human Resources, Executive Administration, Treasury, Funds Management, Public Affairs and Corporate Finance.  Wealth Management provides customized solutions for affluent customers by integrating financial services with traditional banking products and services such as private banking, money management, full-service brokerage, financial planning, personal and institutional trust and retirement services.  During 2010, Wealth Management provided life insurance and other risk management services through TRMK Risk Management, Inc. (TRMI), a wholly owned subsidiary of Trustmark National Bank who engaged in individual insurance product sales as a broker of life and long-term care insurance for Wealth Management customers.  On December 30, 2010, TRMI was merged into Fisher Brown Bottrell Insurance, Inc. (FBBI), another wholly owned subsidiary of TNB.  All previous products and services provided to Wealth Management customers are being provided by FBBI in 2011. Through FBBI, Trustmark's Insurance Division provides a full range of retail insurance products including commercial risk management products, bonding, group benefits and personal lines coverage.  As a result of the changes discussed above, certain immaterial reclassifications have been made to the prior year amounts in order to be in conformity with the current year.

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 the bank's funding and interest rate risk strategies.

The following table discloses financial information by reportable segment for the periods presented ($ in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
General Banking
Net interest income	$	86,699	$	87,363		$	171,940	$	173,675
Provision for loan losses		8,100		10,403			15,640		25,491
Noninterest income		33,704		32,377			57,519		58,426
Noninterest expense		70,527		73,906			139,347		139,483
Income before income taxes		41,776		35,431			74,472		67,127
Income taxes		12,134		11,334			22,438		21,281
General banking net income	$	29,642	$	24,097		$	52,034	$	45,846
Selected Financial Information
Average assets	$	9,465,636	$	9,093,036		$	9,414,149	$	9,134,009
Depreciation and amortization	$	5,651	$	5,563		$	11,069	$	10,895
Wealth Management
Net interest income	$	1,067	$	1,054		$	2,140	$	2,105
Provision for loan losses		16		(5	)		13		2
Noninterest income		5,851		5,681			11,922		11,115
Noninterest expense		5,340		5,037			11,127		10,038
Income before income taxes		1,562		1,703			2,922		3,180
Income taxes		520		564			976		1,059
Wealth management net income	$	1,042	$	1,139		$	1,946	$	2,121
Selected Financial Information
Average assets	$	82,986	$	91,454		$	82,727	$	92,042
Depreciation and amortization	$	51	$	67		$	113	$	135
Insurance
Net interest income	$	64	$	69		$	125	$	124
Provision for loan losses		-		-			-		-
Noninterest income		6,877		6,889			13,362		13,775
Noninterest expense		5,481		5,485			10,892		11,268
Income before income taxes		1,460		1,473			2,595		2,631
Income taxes		542		548			960		982
Insurance net income	$	918	$	925		$	1,635	$	1,649
Selected Financial Information
Average assets	$	65,503	$	66,011		$	65,129	$	66,386
Depreciation and amortization	$	357	$	398		$	730	$	796
Consolidated
Net interest income	$	87,830	$	88,486		$	174,205	$	175,904
Provision for loan losses		8,116		10,398			15,653		25,493
Noninterest income		46,432		44,947			82,803		83,316
Noninterest expense		81,348		84,428			161,366		160,789
Income before income taxes		44,798		38,607			79,989		72,938
Income taxes		13,196		12,446			24,374		23,322
Consolidated net income	$	31,602	$	26,161		$	55,615	$	49,616
Selected Financial Information
Average assets	$	9,614,125	$	9,250,501		$	9,562,005	$	9,292,437
Depreciation and amortization	$	6,059	$	6,028		$	11,912	$	11,826