Segment Information

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2011			2010			2011		2010
General Banking
Net interest income	$	84,509		$	86,453		$	256,449	$	260,128
Provision for loan losses		7,984			12,264			23,624		37,755
Noninterest income		30,686			30,964			88,205		89,390
Noninterest expense		72,916			73,923			212,263		213,406
Income before income taxes		34,295			31,230			108,767		98,357
Income taxes		8,760			7,710			31,198		28,991
General banking net income	$	25,535		$	23,520		$	77,569	$	69,366
Selected Financial Information
Average assets	$	9,423,743		$	9,061,255		$	9,417,382	$	9,109,516
Depreciation and amortization	$	6,207		$	6,335		$	17,276	$	17,230
Wealth Management
Net interest income	$	1,094		$	1,041		$	3,234	$	3,146
Provision for loan losses		(6	)		(5	)		7		(3	)
Noninterest income		6,078			5,289			18,000		16,404
Noninterest expense		6,819			4,752			17,946		14,790
Income before income taxes		359			1,583			3,281		4,763
Income taxes		71			528			1,047		1,587
Wealth management net income	$	288		$	1,055		$	2,234	$	3,176
Selected Financial Information
Average assets	$	81,527		$	87,863		$	82,323	$	90,634
Depreciation and amortization	$	49		$	69		$	162	$	204
Insurance
Net interest income	$	77		$	73		$	202	$	197
Provision for loan losses		-			-			-		-
Noninterest income		7,508			7,726			20,870		21,501
Noninterest expense		5,746			5,748			16,638		17,016
Income before income taxes		1,839			2,051			4,434		4,682
Income taxes		694			766			1,654		1,748
Insurance net income	$	1,145		$	1,285		$	2,780	$	2,934
Selected Financial Information
Average assets	$	67,186		$	68,805		$	65,822	$	67,176
Depreciation and amortization	$	355		$	396		$	1,085	$	1,192
Consolidated
Net interest income	$	85,680		$	87,567		$	259,885	$	263,471
Provision for loan losses		7,978			12,259			23,631		37,752
Noninterest income		44,272			43,979			127,075		127,295
Noninterest expense		85,481			84,423			246,847		245,212
Income before income taxes		36,493			34,864			116,482		107,802
Income taxes		9,525			9,004			33,899		32,326
Consolidated net income	$	26,968		$	25,860		$	82,583	$	75,476
Selected Financial Information
Average assets	$	9,572,456		$	9,217,923		$	9,565,527	$	9,267,326
Depreciation and amortization	$	6,611		$	6,800		$	18,523	$	18,626