Segment Information

6 Months Ended

Jun. 30, 2014

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 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.  During the second quarter of 2014, Trustmark revised the composition of its operating segments by moving the Private Banking group from the Wealth Management Division to the General Banking Division, which provided a more accurate reflection of the manner in which Trustmark manages these operating segments.  Prior period amounts presented below include reclassifications to conform to the current period presentation.

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,
	2014		2013			2014		2013
General Banking
Net interest income	$	105,064	$	99,046		$	199,750	$	187,780
Provision for loan losses, net		4,135		(6,398	)		3,393		(9,236	)
Noninterest income		28,139		28,688			56,022		58,909
Noninterest expense		89,545		94,502			178,132		185,347
Income before income taxes		39,523		39,630			74,247		70,578
Income taxes		8,563		10,105			16,477		18,176
General banking net income	$	30,960	$	29,525		$	57,770	$	52,402
Selected Financial Information
Average assets	$	11,898,471	$	11,716,531		$	11,873,885	$	11,228,269
Depreciation and amortization	$	8,918	$	9,637		$	17,393	$	17,719
Wealth Management
Net interest income	$	134	$	112		$	282	$	288
Noninterest income		7,698		7,005			15,795		13,879
Noninterest expense		6,620		6,645			13,054		11,936
Income before income taxes		1,212		472			3,023		2,231
Income taxes		402		147			1,002		732
Wealth management net income	$	810	$	325		$	2,021	$	1,499
Selected Financial Information
Average assets	$	2,037	$	174		$	4,472	$	152
Depreciation and amortization	$	49	$	40		$	95	$	79
Insurance
Net interest income	$	90	$	70		$	160	$	135
Noninterest income		8,303		8,021			16,401		15,265
Noninterest expense		6,596		6,048			13,193		12,057
Income before income taxes		1,797		2,043			3,368		3,343
Income taxes		670		772			1,259		1,257
Insurance net income	$	1,127	$	1,271		$	2,109	$	2,086
Selected Financial Information
Average assets	$	70,515	$	65,945		$	66,707	$	65,602
Depreciation and amortization	$	233	$	260		$	468	$	519
Consolidated
Net interest income	$	105,288	$	99,228		$	200,192	$	188,203
Provision for loan losses, net		4,135		(6,398	)		3,393		(9,236	)
Noninterest income		44,140		43,714			88,218		88,053
Noninterest expense		102,761		107,195			204,379		209,340
Income before income taxes		42,532		42,145			80,638		76,152
Income taxes		9,635		11,024			18,738		20,165
Consolidated net income	$	32,897	$	31,121		$	61,900	$	55,987
Selected Financial Information
Average assets	$	11,971,023	$	11,782,650		$	11,945,064	$	11,294,023
Depreciation and amortization	$	9,200	$	9,937		$	17,956	$	18,317