Note 20 – Segment Information

Trustmark’s management reporting structure includes three segments: General Banking, Wealth Management and Insurance. The General Banking Division is responsible for all traditional banking products and services, including loans and deposits. The General Banking Division also consists of internal operations such as Human Resources, Executive Administration, Treasury (Funds Management), Public Affairs and Corporate Finance. The Wealth Management Division 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.

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 Division, 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):

	Years Ended December 31,
	2017		2016		2015
General Banking
Net interest income	$	406,406	$	386,596	$	391,092
Provision for loan losses, net		7,699		14,714		11,800
Noninterest income		116,180		107,059		105,477
Noninterest expense		373,221		354,555		348,270
Income before income taxes		141,666		124,386		136,499
Income taxes		43,960		25,303		29,761
General banking net income	$	97,706	$	99,083	$	106,738

Selected Financial Information
Total assets	$	13,724,193	$	13,278,668	$	12,604,112
Depreciation and amortization	$	37,710	$	35,692	$	36,072

Wealth Management
Net interest income	$	910	$	726	$	337
Noninterest income		30,285		30,117		31,245
Noninterest expense		27,561		24,165		25,346
Income before income taxes		3,634		6,678		6,236
Income taxes		1,390		2,554		2,386
Wealth Management net income	$	2,244	$	4,124	$	3,850

Selected Financial Information
Total assets	$	5,592	$	7,501	$	7,471
Depreciation and amortization	$	131	$	174	$	183

Insurance
Net interest income	$	234	$	211	$	336
Noninterest income		38,198		36,767		36,427
Noninterest expense		29,387		28,578		28,046
Income before income taxes		9,045		8,400		8,717
Income taxes		3,365		3,196		3,267
Insurance net income	$	5,680	$	5,204	$	5,450

Selected Financial Information
Total assets	$	68,168	$	66,164	$	67,313
Depreciation and amortization	$	630	$	747	$	801

Consolidated
Net interest income	$	407,550	$	387,533	$	391,765
Provision for loan losses, net		7,699		14,714		11,800
Noninterest income		184,663		173,943		173,149
Noninterest expense		430,169		407,298		401,662
Income before income taxes		154,345		139,464		151,452
Income taxes		48,715		31,053		35,414
Consolidated net income	$	105,630	$	108,411	$	116,038

Selected Financial Information
Total assets	$	13,797,953	$	13,352,333	$	12,678,896
Depreciation and amortization	$	38,471	$	36,613	$	37,056