Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Note 20 – 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 were provided by FBBI in 2011 and will be provided by FBBI going forward. 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 ended December 31, 2011, 2010 and 2009.

Segment Information
($ in thousands)
	Years Ended December 31,
	2011		2010			2009
General Banking
Net interest income	$	344,415	$	347,607		$	349,790
Provision for loan losses		30,185		49,551			77,052
Noninterest income		109,601		115,934			116,335
Noninterest expense		284,849		283,010			264,559
Income before income taxes		138,982		130,980			124,514
Income taxes		38,414		37,955			39,512
General banking net income	$	100,568	$	93,025		$	85,002
Selected Financial Information
Average assets	$	9,436,557	$	9,136,491		$	9,356,520
Depreciation and amortization	$	23,640	$	23,792		$	24,638
Wealth Management
Net interest income	$	4,256	$	4,174		$	4,123
Provision for loan losses		143		(5	)		60
Noninterest income		23,300		22,243			22,400
Noninterest expense		23,300		20,459			19,644
Income before income taxes		4,113		5,963			6,819
Income taxes		1,303		1,988			2,409
Wealth management net income	$	2,810	$	3,975		$	4,410
Selected Financial Information
Average assets	$	81,472	$	89,240		$	95,713
Depreciation and amortization	$	209	$	272		$	295
Insurance
Net interest income	$	272	$	242		$	296
Noninterest income		26,953		27,750			29,507
Noninterest expense		21,701		22,180			24,056
Income before income taxes		5,524		5,812			5,747
Income taxes		2,061		2,176			2,112
Insurance net income	$	3,463	$	3,636		$	3,635
Selected Financial Information
Average assets	$	65,414	$	66,096		$	68,209
Depreciation and amortization	$	1,424	$	1,582		$	1,556
Consolidated
Net interest income	$	348,943	$	352,023		$	354,209
Provision for loan losses		30,328		49,546			77,112
Noninterest income		159,854		165,927			168,242
Noninterest expense		329,850		325,649			308,259
Income before income taxes		148,619		142,755			137,080
Income taxes		41,778		42,119			44,033
Consolidated net income	$	106,841	$	100,636		$	93,047
Selected Financial Information
Average assets	$	9,583,443	$	9,291,827		$	9,520,442
Depreciation and amortization	$	25,273	$	25,646		$	26,489