Note 19 – Segment Information

Trustmark’s management reporting structure includes three segments: General Banking, Wealth Management and Insurance. For a complete overview of Trustmark’s operating segments, see Note 20 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2017 Annual Report on Form 10-K. There have been no significant changes in Trustmark’s operating segments during the periods presented.

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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
General Banking
Net interest income	$	106,784	$	103,408	$	313,299	$	302,613
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		28,557		26,570		87,587		88,830
Noninterest expense		89,889		88,814		267,462		284,420
Income before income taxes		37,246		39,145		118,381		103,490
Income taxes		3,536		7,130		13,430		19,772
General banking net income	$	33,710	$	32,015	$	104,951	$	83,718

Selected Financial Information
Total assets	$	13,364,636	$	13,811,335	$	13,364,636	$	13,811,335
Depreciation and amortization	$	9,759	$	9,863	$	28,959	$	28,196

Wealth Management
Net interest income	$	134	$	434	$	771	$	718
Noninterest income		7,769		7,512		22,768		22,513
Noninterest expense		7,194		6,791		19,996		20,361
Income before income taxes		709		1,155		3,543		2,870
Income taxes		177		441		886		1,098
Wealth management net income	$	532	$	714	$	2,657	$	1,772

Selected Financial Information
Total assets	$	9,411	$	6,635	$	9,411	$	6,635
Depreciation and amortization	$	64	$	30	$	116	$	104

Insurance
Net interest income	$	65	$	70	$	170	$	175
Noninterest income		10,767		10,398		30,922		29,360
Noninterest expense		8,140		7,481		24,030		22,437
Income before income taxes		2,692		2,987		7,062		7,098
Income taxes		681		1,137		1,774		2,726
Insurance net income	$	2,011	$	1,850	$	5,288	$	4,372

Selected Financial Information
Total assets	$	65,765	$	66,685	$	65,765	$	66,685
Depreciation and amortization	$	155	$	159	$	437	$	481

Consolidated
Net interest income	$	106,983	$	103,912	$	314,240	$	303,506
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		47,093		44,480		141,277		140,703
Noninterest expense		105,223		103,086		311,488		327,218
Income before income taxes		40,647		43,287		128,986		113,458
Income taxes		4,394		8,708		16,090		23,596
Consolidated net income	$	36,253	$	34,579	$	112,896	$	89,862

Selected Financial Information
Total assets	$	13,439,812	$	13,884,655	$	13,439,812	$	13,884,655
Depreciation and amortization	$	9,978	$	10,052	$	29,512	$	28,781