Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 15 – Shareholders’ Equity

Regulatory Capital

As of January 1, 2015, Trustmark and TNB were subject to revised capital requirements as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2014 Annual Report on Form 10-K.  Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, which are administered by the federal bank regulatory agencies.  These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends.  As of September 30, 2015, Trustmark and TNB exceeded all applicable minimum capital standards.  In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2015.  To be categorized in this manner, Trustmark and TNB maintained minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the accompanying table, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures.  There are no significant conditions or events that have occurred since September 30, 2015, which Management believes have affected Trustmark’s or TNB’s present classification.

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2015 (Basel III) and December 31, 2014 (Basel I) ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2015:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,147,861		13.00	%		4.50	%		n/a
Trustmark National Bank		1,186,875		13.44	%		4.50	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,206,574		13.66	%		6.00	%		n/a
Trustmark National Bank		1,186,875		13.44	%		6.00	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,294,358		14.66	%		8.00	%		n/a
Trustmark National Bank		1,274,659		14.43	%		8.00	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,206,574		10.09	%		4.00	%		n/a
Trustmark National Bank		1,186,875		9.94	%		4.00	%		5.00	%
At December 31, 2014:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,069,630		12.75	%		n/a			n/a
Trustmark National Bank		1,108,399		13.24	%		n/a			n/a
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,129,630		13.47	%		4.00	%		n/a
Trustmark National Bank		1,108,399		13.24	%		4.00	%		6.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,221,292		14.56	%		8.00	%		n/a
Trustmark National Bank		1,198,697		14.32	%		8.00	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,129,630		9.63	%		4.00	%		n/a
Trustmark National Bank		1,108,399		9.46	%		4.00	%		5.00	%

Accumulated Other Comprehensive Loss

The following table presents the components of accumulated other comprehensive loss and the related tax effects allocated to each component for the nine months ended September 30, 2015 and 2014 ($ in thousands).  Reclassification adjustments related to securities available for sale are included in securities gains, net in the accompanying consolidated statements of income.  The amortization of prior service cost, recognized net loss due to lump sum settlements and change in net actuarial loss on pension and other postretirement benefit plans are included in the computation of net periodic benefit cost (see Note 10 – Defined Benefit and Other Postretirement Benefits for additional details).  Reclassification adjustments related to the cash flow hedge derivative are included in other interest expense in the accompanying consolidated statements of income.

	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Nine Months Ended September 30, 2015:
Securities available for sale and transferred securities:
Unrealized holding gains arising during the period	$	13,718		$	(5,248	)	$	8,470
Reclassification adjustment for net gains realized in net income		-			-			-
Change in net unrealized holding loss on securities transferred to held to maturity		4,747			(1,816	)		2,931
Total securities available for sale and transferred securities		18,465			(7,064	)		11,401
Pension and other postretirement benefit plans:
Net change in prior service costs		188			(72	)		116
Recognized net loss due to lump sum settlements		1,499			(573	)		926
Change in net actuarial loss		3,653			(1,397	)		2,256
Total pension and other postretirement benefit plans		5,340			(2,042	)		3,298
Cash flow hedge derivatives:
Change in accumulated loss on effective cash flow hedge derivatives		(1,919	)		734			(1,185	)
Reclassification adjustment for loss realized in net income		632			(242	)		390
Total cash flow hedge derivatives		(1,287	)		492			(795	)
Total other comprehensive income	$	22,518		$	(8,614	)	$	13,904
Nine Months Ended September 30, 2014:
Securities available for sale and transferred securities:
Unrealized holding gains arising during the period	$	9,415		$	(3,601	)	$	5,814
Reclassification adjustment for net gains realized in net income		(300	)		115			(185	)
Change in net unrealized holding loss on securities transferred to held to maturity		4,444			(1,700	)		2,744
Total securities available for sale and transferred securities		13,559			(5,186	)		8,373
Pension and other postretirement benefit plans:
Net change in prior service costs		188			(72	)		116
Recognized net loss due to lump sum settlements		2,459			(941	)		1,518
Change in net actuarial loss		268			(102	)		166
Total pension and other postretirement benefit plans		2,915			(1,115	)		1,800
Cash flow hedge derivatives:
Change in accumulated gain on effective cash flow hedge derivatives		(1,307	)		500			(807	)
Total other comprehensive income	$	15,167		$	(5,801	)	$	9,366

The following table presents the changes in the balances of each component of accumulated other comprehensive loss for the periods presented ($ in thousands).  All amounts are presented net of tax.

	Securities Available for Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2015	$	(11,003	)	$	(31,617	)	$	136		$	(42,484	)
Other comprehensive income (loss) before reclassification		11,401			3,298			(1,185	)		13,514
Amounts reclassified from accumulated other comprehensive loss		-			-			390			390
Net other comprehensive income (loss)		11,401			3,298			(795	)		13,904
Balance at September 30, 2015	$	398		$	(28,319	)	$	(659	)	$	(28,580	)
Balance at January 1, 2014	$	(25,462	)	$	(19,793	)	$	1,524		$	(43,731	)
Other comprehensive income (loss) before reclassification		8,558			1,800			(807	)		9,551
Amounts reclassified from accumulated other comprehensive loss		(185	)		-			-			(185	)
Net other comprehensive income (loss)		8,373			1,800			(807	)		9,366
Balance at September 30, 2014	$	(17,089	)	$	(17,993	)	$	717		$	(34,365	)