Segment Information

9 Months Ended

Sep. 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 September 30,					Nine Months Ended September 30,
	2014		2013			2014		2013
General Banking
Net interest income	$	105,672	$	98,135		$	305,422	$	285,915
Provision for loan losses, net		4,203		(332	)		7,596		(9,568	)
Noninterest income		25,663		31,443			81,685		90,352
Noninterest expense		86,935		89,198			265,067		274,545
Income before income taxes		40,197		40,712			114,444		111,290
Income taxes		9,535		10,040			26,012		28,216
General banking net income	$	30,662	$	30,672		$	88,432	$	83,074
Selected Financial Information
Average assets	$	12,013,572	$	11,688,102		$	11,928,029	$	11,383,231
Depreciation and amortization	$	8,896	$	9,186		$	26,289	$	26,905
Wealth Management
Net interest income	$	467	$	192		$	749	$	480
Noninterest income		7,989		7,459			23,784		21,338
Noninterest expense		6,303		6,294			19,357		18,230
Income before income taxes		2,153		1,357			5,176		3,588
Income taxes		712		446			1,714		1,178
Wealth management net income	$	1,441	$	911		$	3,462	$	2,410
Selected Financial Information
Average assets	$	263	$	461		$	1,478	$	256
Depreciation and amortization	$	48	$	39		$	143	$	118
Insurance
Net interest income	$	90	$	102		$	250	$	237
Noninterest income		9,241		8,231			25,642		23,496
Noninterest expense		6,956		6,032			20,149		18,089
Income before income taxes		2,375		2,301			5,743		5,644
Income taxes		889		850			2,148		2,107
Insurance net income	$	1,486	$	1,451		$	3,595	$	3,537
Selected Financial Information
Average assets	$	77,378	$	70,545		$	64,808	$	67,268
Depreciation and amortization	$	188	$	258		$	656	$	777
Consolidated
Net interest income	$	106,229	$	98,429		$	306,421	$	286,632
Provision for loan losses, net		4,203		(332	)		7,596		(9,568	)
Noninterest income		42,893		47,133			131,111		135,186
Noninterest expense		100,194		101,524			304,573		310,864
Income before income taxes		44,725		44,370			125,363		120,522
Income taxes		11,136		11,336			29,874		31,501
Consolidated net income	$	33,589	$	33,034		$	95,489	$	89,021
Selected Financial Information
Average assets	$	12,091,213	$	11,759,108		$	11,994,315	$	11,450,755
Depreciation and amortization	$	9,132	$	9,483		$	27,088	$	27,800