Segment Information

3 Months Ended

Mar. 31, 2019

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 21 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2018 Annual Report on Form 10-K. During the first quarter of 2019, Trustmark revised the composition of its operating segments by moving the Private Banking Group from the General Banking Segment to the Wealth Management Segment as a result of a change in supervision of this group for segment reporting purposes. The prior period amounts presented include reclassifications to conform to the current period presentation.

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 March 31,
	2019			2018
General Banking
Net interest income	$	103,787		$	100,707
Provision for loan losses, net		1,691			4,111
Noninterest income		22,913			29,760
Noninterest expense		90,659			87,990
Income before income taxes		34,350			38,366
Income taxes		4,190			4,486
General banking net income	$	30,160		$	33,880

Selected Financial Information
Total assets	$	13,297,961		$	13,288,601
Depreciation and amortization	$	9,139		$	9,210

Wealth Management
Net interest income	$	966		$	1,331
Provision for loan losses, net		(2	)		—
Noninterest income		7,703			7,614
Noninterest expense		7,019			6,876
Income before income taxes		1,652			2,069
Income taxes		409			517
Wealth management net income	$	1,243		$	1,552

Selected Financial Information
Total assets	$	108,464		$	107,503
Depreciation and amortization	$	69		$	27

Insurance
Net interest income	$	55		$	55
Noninterest income		10,875			9,419
Noninterest expense		8,343			7,599
Income before income taxes		2,587			1,875
Income taxes		651			477
Insurance net income	$	1,936		$	1,398

Selected Financial Information
Total assets	$	71,592		$	67,335
Depreciation and amortization	$	129		$	139

Consolidated
Net interest income	$	104,808		$	102,093
Provision for loan losses, net		1,689			4,111
Noninterest income		41,491			46,793
Noninterest expense		106,021			102,465
Income before income taxes		38,589			42,310
Income taxes		5,250			5,480
Consolidated net income	$	33,339		$	36,830

Selected Financial Information
Total assets	$	13,478,017		$	13,463,439
Depreciation and amortization	$	9,337		$	9,376