Segment Information

12 Months Ended

Dec. 31, 2018

Note 21 – Segment Information

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

	Years Ended December 31,
	2018		2017		2016
General Banking
Net interest income	$	418,968	$	406,406	$	386,596
Provision for loan losses, net		16,988		7,699		14,714
Noninterest income		114,122		116,180		107,059
Noninterest expense		357,703		373,221		354,555
Income before income taxes		158,399		141,666		124,386
Income taxes		18,885		43,960		25,303
General banking net income	$	139,514	$	97,706	$	99,083

Selected Financial Information
Total assets	$	13,207,850	$	13,724,193	$	13,278,668
Depreciation and amortization	$	38,188	$	37,710	$	35,692

Wealth Management
Net interest income	$	226	$	910	$	726
Noninterest income		30,228		30,285		30,117
Noninterest expense		26,856		27,561		24,165
Income before income taxes		3,598		3,634		6,678
Income taxes		900		1,390		2,554
Wealth Management net income	$	2,698	$	2,244	$	4,124

Selected Financial Information
Total assets	$	9,691	$	5,592	$	7,501
Depreciation and amortization	$	180	$	131	$	174

Insurance
Net interest income	$	226	$	234	$	211
Noninterest income		40,486		38,198		36,767
Noninterest expense		30,856		29,387		28,578
Income before income taxes		9,856		9,045		8,400
Income taxes		2,484		3,365		3,196
Insurance net income	$	7,372	$	5,680	$	5,204

Selected Financial Information
Total assets	$	68,919	$	68,168	$	66,164
Depreciation and amortization	$	572	$	630	$	747

Consolidated
Net interest income	$	419,420	$	407,550	$	387,533
Provision for loan losses, net		16,988		7,699		14,714
Noninterest income		184,836		184,663		173,943
Noninterest expense		415,415		430,169		407,298
Income before income taxes		171,853		154,345		139,464
Income taxes		22,269		48,715		31,053
Consolidated net income	$	149,584	$	105,630	$	108,411

Selected Financial Information
Total assets	$	13,286,460	$	13,797,953	$	13,352,333
Depreciation and amortization	$	38,940	$	38,471	$	36,613