Shareholders' Equity

3 Months Ended

Mar. 31, 2017

Stockholders Equity Note [Abstract]

Shareholders' Equity

Note 15 – Shareholders’ Equity

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2016 Annual Report on Form 10-K, 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.  Trustmark’s and TNB’s minimum risk-based capital requirements include the phased in capital conservation buffer of 1.250% at March 31, 2017 and 0.625% at December 31, 2016.  Accumulated other comprehensive loss, net of tax, is not included in computing regulatory capital.  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 March 31, 2017, Trustmark and TNB exceeded all applicable minimum capital standards.  In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at March 31, 2017.  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 March 31, 2017, 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 March 31, 2017 and December 31, 2016 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At March 31, 2017:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,223,078		12.19	%		5.750	%	n/a
Trustmark National Bank		1,266,309		12.63	%		5.750	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,282,919		12.79	%		7.250	%	n/a
Trustmark National Bank		1,266,309		12.63	%		7.250	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,365,370		13.61	%		9.250	%	n/a
Trustmark National Bank		1,348,760		13.45	%		9.250	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,282,919		9.86	%		4.00	%	n/a
Trustmark National Bank		1,266,309		9.75	%		4.00	%		5.00	%
At December 31, 2016:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,209,927		12.16	%		5.125	%	n/a
Trustmark National Bank		1,251,329		12.58	%		5.125	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,269,660		12.76	%		6.625	%	n/a
Trustmark National Bank		1,251,329		12.58	%		6.625	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,352,322		13.59	%		8.625	%	n/a
Trustmark National Bank		1,333,991		13.41	%		8.625	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,269,660		9.90	%		4.00	%	n/a
Trustmark National Bank		1,251,329		9.77	%		4.00	%		5.00	%

Stock Repurchase Program

On March 11, 2016, the Board of Directors of Trustmark authorized a stock repurchase program under which $100.0 million of Trustmark’s outstanding common stock may be acquired through March 31, 2019.  The shares may be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions.  Trustmark did not repurchase any shares of its common stock during the three months ended March 31, 2017 or 2016.  

Other Comprehensive Income and 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 three months ended March 31, 2017 and 2016 ($ in thousands).  Reclassification adjustments related to securities available for sale are included in security losses, 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 pension and other postretirement benefit plans are included in salaries and employee benefits and other expense in the accompanying consolidated statements of income.  Reclassification adjustments related to the cash flow hedge derivative are included in other interest expense in the accompanying consolidated statements of income.

	Three Months Ended March 31, 2017							Three Months Ended March 31, 2016
	Before Tax Amount		Tax (Expense) Benefit			Net of Tax Amount		Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Unrealized holding gains arising during    the period	$	2,285	$	(874	)	$	1,411	$	35,343		$	(13,518	)	$	21,825
Reclassification adjustment for net losses realized    in net income		—		—			—		310			(119	)		191
Change in net unrealized holding loss on    securities transferred to held to maturity		1,232		(471	)		761		2,724			(1,042	)		1,682
Total securities available for sale    and transferred securities		3,517		(1,345	)		2,172		38,377			(14,679	)		23,698
Pension and other postretirement benefit plans:
Net change in prior service costs		63		(24	)		39		62			(24	)		38
Recognized net loss due to lump sum settlements		—		—			—		423			(162	)		261
Change in net actuarial loss		787		(301	)		486		882			(337	)		545
Total pension and other postretirement benefit plans		850		(325	)		525		1,367			(523	)		844
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective cash flow    hedge derivatives		57		(22	)		35		(1,328	)		508			(820	)
Reclassification adjustment for loss realized    in net income		99		(38	)		61		160			(61	)		99
Total cash flow hedge derivatives		156		(60	)		96		(1,168	)		447			(721	)
Total other comprehensive income	$	4,523	$	(1,730	)	$	2,793	$	38,576		$	(14,755	)	$	23,821

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 Availablefor Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2017	$	(20,800	)	$	(24,980	)	$	(18	)	$	(45,798	)
Other comprehensive income before reclassification		2,172			—			35			2,207
Amounts reclassified from accumulated other    comprehensive loss		—			525			61			586
Net other comprehensive income		2,172			525			96			2,793
Balance at March 31, 2017	$	(18,628	)	$	(24,455	)	$	78		$	(43,005	)
Balance at January 1, 2016	$	(17,394	)	$	(27,840	)	$	(160	)	$	(45,394	)
Other comprehensive income (loss) before reclassification		23,507			—			(820	)		22,687
Amounts reclassified from accumulated other    comprehensive loss		191			844			99			1,134
Net other comprehensive income (loss)		23,698			844			(721	)		23,821
Balance at March 31, 2016	$	6,304		$	(26,996	)	$	(881	)	$	(21,573	)