Segment Information

6 Months Ended

Jun. 30, 2013

Segment Information [Abstract]

Segment Information

Note 18 – 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.  Through Fisher Brown Bottrell Insurance, Inc. (FBBI), a wholly owned subsidiary of TNB, Trustmark’s Insurance Division provides a full range of retail insurance products including commercial risk management products, bonding, group benefits and personal lines coverage.

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,
	2013			2012		2013			2012
General Banking
Net interest income	$	98,112		$	85,293	$	185,924		$	171,059
Provision for loan losses, net		(6,395	)		2,300		(9,231	)		5,401
Noninterest income		28,694			30,768		58,883			62,339
Noninterest expense		94,030			77,091		184,336			152,227
Income before income taxes		39,171			36,670		69,702			75,770
Income taxes		9,954			9,452		17,887			20,017
General banking net income	$	29,217		$	27,218	$	51,815		$	55,753
Selected Financial Information
Average assets	$	11,645,336		$	9,681,451	$	11,154,636		$	9,647,614
Depreciation and amortization	$	9,636		$	6,912	$	17,715		$	13,135
Wealth Management
Net interest income	$	1,046		$	1,082	$	2,144		$	2,189
Provision for loan losses, net		(3	)		22		(5	)		20
Noninterest income		6,999			5,844		13,905			11,432
Noninterest expense		7,117			5,450		12,947			10,937
Income before income taxes		931			1,454		3,107			2,664
Income taxes		298			453		1,021			848
Wealth management net income	$	633		$	1,001	$	2,086		$	1,816
Selected Financial Information
Average assets	$	71,369		$	80,579	$	73,785		$	79,030
Depreciation and amortization	$	41		$	43	$	83		$	90
Insurance
Net interest income	$	70		$	73	$	135		$	144
Provision for loan losses, net		-			-		-			-
Noninterest income		8,021			7,148		15,265			13,774
Noninterest expense		6,048			5,418		12,057			10,569
Income before income taxes		2,043			1,803		3,343			3,349
Income taxes		772			673		1,257			1,249
Insurance net income	$	1,271		$	1,130	$	2,086		$	2,100
Selected Financial Information
Average assets	$	65,945		$	64,909	$	65,602		$	64,329
Depreciation and amortization	$	260		$	312	$	519		$	631
Consolidated
Net interest income	$	99,228		$	86,448	$	188,203		$	173,392
Provision for loan losses, net		(6,398	)		2,322		(9,236	)		5,421
Noninterest income		43,714			43,760		88,053			87,545
Noninterest expense		107,195			87,959		209,340			173,733
Income before income taxes		42,145			39,927		76,152			81,783
Income taxes		11,024			10,578		20,165			22,114
Consolidated net income	$	31,121		$	29,349	$	55,987		$	59,669
Selected Financial Information
Average assets	$	11,782,650		$	9,826,939	$	11,294,023		$	9,790,973
Depreciation and amortization	$	9,937		$	7,267	$	18,317		$	13,856