Trustmark maintained a noncontributory tax-qualified defined benefit pension plan titled the Trustmark Capital Accumulation Plan (the “Plan”) in which substantially all associates who began employment prior to 2007 participated. The Plan provided for retirement benefits based on the length of credited service and final average compensation, as defined in the Plan, which vested upon three years of service. Benefit accruals under the Plan were frozen in 2009, with the exception of benefit accruals for certain employees of acquired financial institutions covered through plans that were subsequently merged into the Plan. Other than certain employees of acquired financial institutions, associates have not earned additional benefits, except for interest as required by law, since the Plan was frozen. Current and former associates who participated in the Plan retained their right to receive benefits that accrued before the Plan was frozen. As previously reported, on July 26, 2016 the Board of Directors of Trustmark authorized the termination of the Plan, effective as of December 31, 2016. As a result of the termination of the Plan, each participant became fully vested in their accrued benefits under the Plan.

During the second quarter of 2017, Trustmark fully funded the Plan on a termination basis by contributing additional assets in the amount of $17.6 million in accordance with Internal Revenue Service (IRS) and Pension Benefit Guaranty Corporation requirements. Participants in the Plan elected to receive either a lump sum cash payment or annuity payments under a group annuity contract purchased from an insurance carrier. Final distributions were made to participants from plan assets and a one-time pension settlement expense was recognized totaling $17.6 million.

Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions

To satisfy commitments made by Trustmark to associates covered through plans obtained in acquisitions and subsequently merged into the Plan (collectively, the “Continuing Associates”), on July 26, 2016, the Board of Directors of Trustmark also approved the spin-off of the portion of the Plan associated with the accrued benefits of the Continuing Associates into a new plan titled the Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions (the “Continuing Plan”), effective as of December 30, 2016, immediately prior to the termination of the Plan.

The following tables present information regarding the benefit obligation, plan assets, funded status, amounts recognized in accumulated other comprehensive loss, net periodic benefit cost and other statistical disclosures for Trustmark’s tax-qualified defined benefit pension plans (the Continuing Plan and the Plan) for the periods presented ($ in thousands):

	December 31,
	2018			2017
Change in benefit obligation:
Benefit obligation, beginning of year	$	10,102		$	75,900
Service cost		277			253
Interest cost		332			1,461
Actuarial (gain) loss		(827	)		391
Benefits paid for the Plan		(705	)		(68,583	)
Settlement loss		—			680
Benefit obligation, end of year	$	9,179		$	10,102

Change in plan assets:
Fair value of plan assets, beginning of year	$	4,596		$	54,734
Actual return on plan assets		(314	)		481
Employer contributions		377			17,964
Benefit payments for the Plan		(705	)		(68,583	)
Fair value of plan assets, end of year	$	3,954		$	4,596

Funded status at end of year - net liability	$	(5,225	)	$	(5,506	)

Amounts recognized in accumulated other comprehensive loss:
Net loss - amount recognized	$	2,170		$	3,187

	Years Ended December 31,
	2018			2017			2016
Net periodic benefit cost:
Service cost	$	277		$	253		$	428
Interest cost		332			1,461			3,355
Expected return on plan assets		(227	)		(317	)		(2,897	)
Recognized net loss due to defined benefit plan termination		—			17,662			—
Recognized net loss due to lump sum settlements		161			—			3,906
Recognized net actuarial loss		571			1,414			2,749
Net periodic benefit cost	$	1,114		$	20,473		$	7,541

Other changes in plan assets and benefit obligation recognized in other comprehensive income (loss), before taxes:
Net loss - Total recognized in other comprehensive income (loss)	$	(1,017	)	$	(18,168	)	$	(3,572	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	97		$	2,305		$	3,969

Weighted-average assumptions as of end of year:
Discount rate for benefit obligation		3.97	%		3.32	%		3.71	%
Discount rate for net periodic benefit cost		3.32	%		3.71	%		3.86	%
Expected long-term return on plan assets		5.00	%		5.00	%		4.25	%

The weighted-average asset allocations by asset category are presented below for the Continuing Plan at December 31, 2018 and 2017. No assets remained in the Plan at December 31, 2017.

	December 31,
	2018			2017
Money market fund		8.0	%		6.0	%
Exchange traded funds:
Equity securities		52.0	%		48.0	%
Fixed income		29.0	%		32.0	%
International		11.0	%		14.0	%
Total		100.0	%		100.0	%

The strategic objective of the investments of the assets in the Continuing Plan aims to provide long-term capital growth with moderate income. The allocation is managed on a total return basis with the average participant age in mind. It is constructed with an intermediate investment time frame with a moderate to high risk tolerance or a long-term investment time frame with a low to moderate risk tolerance. The plan allocation is typically balanced between equity and fixed income. The equity exposure has the potential to earn a return greater than inflation while the fixed income exposure may reduce the risk and volatility of the portfolio to which the equity allocation contributes.

At this time, Trustmark presents no fair values that are derived through internal modeling. Should positions requiring fair valuation arise that are not relevant to existing methodologies, Trustmark will make every reasonable effort to obtain market participant assumptions, or independent evaluation.

The following table sets forth by level, within the fair value hierarchy, the Continuing Plan’s assets measured at fair value at December 31, 2018 and 2017 ($ in thousands):

	December 31, 2018
	Total		Level 1		Level 2		Level 3
Money market fund	$	304	$	304	$	—	$	—
Exchange traded funds:
Equity securities		2,044		2,044		—		—
Fixed income		1,162		1,162		—		—
International		444		444		—		—
Total assets at fair value	$	3,954	$	3,954	$	—	$	—

	December 31, 2017
	Total		Level 1		Level 2		Level 3
Money market fund	$	269	$	269	$	—	$	—
Exchange traded funds:
Equity securities		2,199		2,199		—		—
Fixed income		1,462		1,462		—		—
International		666		666		—		—
Total assets at fair value	$	4,596	$	4,596	$	—	$	—

There have been no changes in the methodologies used in estimating the fair value of plan assets at December 31, 2018. The money market fund approximates fair value due to its immediate maturity.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although Trustmark believes their valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The range of potential contributions to the Continuing Plan is determined annually by the Continuing Plan’s actuary in accordance with applicable IRS rules and regulations. Trustmark’s policy is to fund amounts that are sufficient to satisfy the annual minimum funding requirements and do not exceed the maximum that is deductible for federal income tax purposes. The actual amount of the contribution is determined annually based on the Continuing Plan’s funded status and return on plan assets as of the measurement date, which is December 31. For the plan year ending December 31, 2018, Trustmark’s minimum required contribution to the Continuing Plan was $148 thousand; however, Trustmark contributed $275 thousand. For the plan year ending December 31, 2019, Trustmark’s minimum required contribution to the Continuing Plan is expected to be $160 thousand; however, Management and the Board of Directors of Trustmark will monitor the Continuing Plan throughout 2019 to determine any additional funding requirements by the plan’s measurement date.

The following table presents the expected benefit payments, which reflect expected future service, for the Continuing Plan ($ in thousands):

Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2019 include a net loss of $371 thousand.

Trustmark maintains a nonqualified supplemental retirement plan covering key executive officers and senior officers as well as directors who have elected to defer fees. The plan provides for retirement and/or death benefits based on a participant’s covered salary or deferred fees. Although plan benefits may be paid from Trustmark’s general assets, Trustmark has purchased life insurance contracts on the participants covered under the plan, which may be used to fund future benefit payments under the plan. The measurement date for the plan is December 31. As a result of mergers prior to 2014, Trustmark became the administrator of small nonqualified supplemental retirement plans, for which the plan benefits were frozen prior to the merger date.

The following tables present information regarding the benefit obligation, plan assets, funded status, amounts recognized in accumulated other comprehensive loss, net periodic benefit cost and other statistical disclosures for Trustmark’s nonqualified supplemental retirement plans ($ in thousands):

	December 31,
	2018			2017
Change in benefit obligation:
Benefit obligation, beginning of year	$	57,930		$	58,495
Service cost		116			141
Interest cost		1,865			2,103
Actuarial loss		(3,228	)		642
Benefits paid		(3,426	)		(3,451	)
Benefit obligation, end of year	$	53,257		$	57,930
Change in plan assets:
Fair value of plan assets, beginning of year	$	—		$	—
Employer contributions		3,426			3,451
Benefit payments		(3,426	)		(3,451	)
Fair value of plan assets, end of year	$	—		$	—

Funded status at end of year - net liability	$	(53,257	)	$	(57,930	)

Amounts recognized in accumulated other comprehensive loss:
Net loss	$	13,403		$	17,514
Prior service cost		859			1,109
Amounts recognized	$	14,262		$	18,623

	Years Ended December 31,
	2018			2017			2016
Net periodic benefit cost:
Service cost	$	116		$	141		$	295
Interest cost		1,865			2,103			2,223
Amortization of prior service cost		250			250			250
Recognized net actuarial loss		884			866			864
Net periodic benefit cost	$	3,115		$	3,360		$	3,632

Other changes in plan assets and benefit obligation recognized in other comprehensive income (loss), before taxes:
Net (gain) loss	$	(4,111	)	$	(224	)	$	(810	)
Amortization of prior service cost		(250	)		(250	)		(250	)
Total recognized in other comprehensive income (loss)	$	(4,361	)	$	(474	)	$	(1,060	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(1,246	)	$	2,886		$	2,572

Weighted-average assumptions as of end of year:
Discount rate for benefit obligation		3.97	%		3.32	%		3.71	%
Discount rate for net periodic benefit cost		3.32	%		3.71	%		3.86	%

The following table presents the expected benefits payments for Trustmark’s supplemental retirement plans ($ in thousands):

Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2019 include a loss of $625 thousand and prior service cost of $250 thousand.

Trustmark provides associates with a self-directed 401(k) retirement plan that allows associates to contribute a percentage of base pay, within limits provided by the Internal Revenue Code and accompanying regulations, into the plan. Trustmark matches 100% of associate contributions to the plan based on the amount of each participant’s contributions up to a maximum of 6% of eligible compensation. Associates may become eligible to make elective deferral contributions the first of the month following 30 days of employment. Eligible associates must complete one year of service in order to vest in Trustmark’s matching contributions. Trustmark’s contributions to this plan were $7.9 million in 2018, $7.5 million in 2017 and $7.2 million in 2016.