Segment Information

9 Months Ended

Sep. 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 Trustmark’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,
	2013			2012		2013			2012
General Banking
Net interest income	$	97,210		$	84,125	$	283,134		$	255,184
Provision for loan losses, net		(375	)		5,448		(9,606	)		10,849
Noninterest income		31,367			30,433		90,250			92,772
Noninterest expense		88,615			72,029		272,951			224,256
Income before income taxes		40,337			37,081		110,039			112,851
Income taxes		9,916			9,817		27,803			29,834
General banking net income	$	30,421		$	27,264	$	82,236		$	83,017
Selected Financial Information
Average assets	$	11,621,803		$	9,664,428	$	11,312,070		$	9,653,259
Depreciation and amortization	$	9,182		$	7,514	$	26,897		$	20,649
Wealth Management
Net interest income	$	1,117		$	1,065	$	3,261		$	3,254
Provision for loan losses, net		43			15		38			35
Noninterest income		7,535			6,895		21,440			18,327
Noninterest expense		6,877			5,957		19,824			16,894
Income before income taxes		1,732			1,988		4,839			4,652
Income taxes		570			701		1,591			1,549
Wealth management net income	$	1,162		$	1,287	$	3,248		$	3,103
Selected Financial Information
Average assets	$	66,760		$	77,999	$	71,417		$	78,684
Depreciation and amortization	$	43		$	42	$	126		$	132
Insurance
Net interest income	$	102		$	89	$	237		$	233
Provision for loan losses, net		-			-		-			-
Noninterest income		8,231			7,537		23,496			21,311
Noninterest expense		6,032			5,474		18,089			16,043
Income before income taxes		2,301			2,152		5,644			5,501
Income taxes		850			799		2,107			2,048
Insurance net income	$	1,451		$	1,353	$	3,537		$	3,453
Selected Financial Information
Average assets	$	70,545		$	68,936	$	67,268		$	65,876
Depreciation and amortization	$	258		$	306	$	777		$	937
Consolidated
Net interest income	$	98,429		$	85,279	$	286,632		$	258,671
Provision for loan losses, net		(332	)		5,463		(9,568	)		10,884
Noninterest income		47,133			44,865		135,186			132,410
Noninterest expense		101,524			83,460		310,864			257,193
Income before income taxes		44,370			41,221		120,522			123,004
Income taxes		11,336			11,317		31,501			33,431
Consolidated net income	$	33,034		$	29,904	$	89,021		$	89,573
Selected Financial Information
Average assets	$	11,759,108		$	9,811,363	$	11,450,755		$	9,797,819
Depreciation and amortization	$	9,483		$	7,862	$	27,800		$	21,718