Segment Information

6 Months Ended

Jun. 30, 2015

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 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 as the result of a change in supervision of this group for segment reporting purposes.

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 TNB’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,
	2015		2014		2015		2014
General Banking
Net interest income	$	96,815	$	105,064	$	194,075	$	199,750
Provision for loan losses, net		1,858		4,135		3,990		3,393
Noninterest income		28,417		28,139		54,157		56,022
Noninterest expense		86,843		89,545		172,360		178,132
Income before income taxes		36,531		39,523		71,882		74,247
Income taxes		8,297		8,563		16,381		16,477
General banking net income	$	28,234	$	30,960	$	55,501	$	57,770
Selected Financial Information
Average assets	$	12,036,687	$	11,898,424	$	12,054,143	$	11,876,198
Depreciation and amortization	$	9,172	$	8,918	$	18,047	$	17,393
Wealth Management
Net interest income	$	48	$	134	$	103	$	282
Noninterest income		7,722		7,698		15,729		15,795
Noninterest expense		6,408		6,620		13,178		13,054
Income before income taxes		1,362		1,212		2,654		3,023
Income taxes		502		402		1,015		1,002
Wealth management net income	$	860	$	810	$	1,639	$	2,021
Selected Financial Information
Average assets	$	4,256	$	2,084	$	3,052	$	2,159
Depreciation and amortization	$	49	$	49	$	95	$	95
Insurance
Net interest income	$	86	$	90	$	163	$	160
Noninterest income		9,404		8,303		18,020		16,401
Noninterest expense		7,015		6,596		13,944		13,193
Income before income taxes		2,475		1,797		4,239		3,368
Income taxes		967		670		1,629		1,259
Insurance net income	$	1,508	$	1,127	$	2,610	$	2,109
Selected Financial Information
Average assets	$	72,316	$	70,515	$	62,053	$	66,707
Depreciation and amortization	$	228	$	233	$	387	$	468
Consolidated
Net interest income	$	96,949	$	105,288	$	194,341	$	200,192
Provision for loan losses, net		1,858		4,135		3,990		3,393
Noninterest income		45,543		44,140		87,906		88,218
Noninterest expense		100,266		102,761		199,482		204,379
Income before income taxes		40,368		42,532		78,775		80,638
Income taxes		9,766		9,635		19,025		18,738
Consolidated net income	$	30,602	$	32,897	$	59,750	$	61,900
Selected Financial Information
Average assets	$	12,113,259	$	11,971,023	$	12,119,248	$	11,945,064
Depreciation and amortization	$	9,449	$	9,200	$	18,529	$	17,956