Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Note 10 – Revenue from Contracts with Customers

Trustmark accounts for revenue from contracts with customers in accordance with FASB ASC Topic 606, “Revenue from Contracts with Customers,” which provides that revenue be recognized in a manner that depicts the transfer of goods or services to a customer in an amount that reflects the consideration Trustmark expects to be entitled to in exchange for those goods or services. Revenue from contracts with customers is recognized either over time in a manner that depicts Trustmark’s performance, or at a point in time when control of the goods or services are transferred to the customer. Trustmark’s noninterest income, excluding all of mortgage banking, net and securities gains (losses), net and portions of bank card and other fees and other income, are considered within the scope of FASB ASC Topic 606. Gains or losses on the sale of other real estate, which are included in Trustmark’s noninterest expense as other real estate expense, are also within the scope of FASB ASC Topic 606.

Trustmark records a gain or loss from the sale of other real estate when control of the property transfers to the buyer. Trustmark records the gain or loss from the sale of other real estate in noninterest expense as other real estate expense. Other real estate sales for the three and six months ended June 30, 2019 resulted in net gains of $123 thousand and $246 thousand, respectively, compared to $588 thousand and $1.0 million for the three and six months ended June 30, 2018, respectively.

The following tables present noninterest income disaggregated by reportable operating segment and revenue stream for the periods presented ($ in thousands):

	Three Months Ended June 30, 2019							Three Months Ended June 30, 2018 (1)
	Topic 606		Not Topic 606 (2)			Total		Topic 606		Not Topic 606 (2)		Total
General Banking Segment
Service charges on deposit accounts	$	10,357	$	—		$	10,357	$	10,626	$	—	$	10,626
Bank card and other fees		7,162		823			7,985		6,826		216		7,042
Mortgage banking, net		—		10,295			10,295		—		9,046		9,046
Wealth management		97		—			97		93		—		93
Other, net		2,333		(259	)		2,074		1,526		842		2,368
Total noninterest income	$	19,949	$	10,859		$	30,808	$	19,071	$	10,104	$	29,175

Wealth Management Segment
Service charges on deposit accounts	$	22	$	—		$	22	$	21	$	—	$	21
Bank card and other fees		19		—			19		28		—		28
Wealth management		7,645		—			7,645		7,385		—		7,385
Other, net		25		29			54		16		30		46
Total noninterest income	$	7,711	$	29		$	7,740	$	7,450	$	30	$	7,480

Insurance Segment
Insurance commissions	$	11,089	$	—		$	11,089	$	10,735	$	—	$	10,735
Other, net		2		—			2		1		—		1
Total noninterest income	$	11,091	$	—		$	11,091	$	10,736	$	—	$	10,736

Consolidated
Service charges on deposit accounts	$	10,379	$	—		$	10,379	$	10,647	$	—	$	10,647
Bank card and other fees		7,181		823			8,004		6,854		216		7,070
Mortgage banking, net		—		10,295			10,295		—		9,046		9,046
Insurance commissions		11,089		—			11,089		10,735		—		10,735
Wealth management		7,742		—			7,742		7,478		—		7,478
Other, net		2,360		(230	)		2,130		1,543		872		2,415
Total noninterest income	$	38,751	$	10,888		$	49,639	$	37,257	$	10,134	$	47,391

(1)

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.

(2)

Noninterest income not in scope for FASB ASC Topic 606 includes customer derivatives revenue and miscellaneous credit card fee income within bank card and other fees; mortgage banking, net; amortization of tax credits, accretion of the FDIC indemnification asset, cash surrender value on various life insurance policies, earnings on Trustmark’s non-qualified deferred compensation plans, other partnership investments and rental income within other, net; and security gains (losses), net

	Six Months Ended June 30, 2019							Six Months Ended June 30, 2018 (1)
	Topic 606		Not Topic 606 (2)			Total		Topic 606		Not Topic 606 (2)		Total
General Banking Segment
Service charges on deposit accounts	$	20,597	$	—		$	20,597	$	21,459	$	—	$	21,459
Bank card and other fees		14,027		1,125			15,152		13,350		291		13,641
Mortgage banking, net		—		13,737			13,737		—		20,311		20,311
Wealth management		188		—			188		140		—		140
Other, net		4,577		(530	)		4,047		2,950		434		3,384
Total noninterest income	$	39,389	$	14,332		$	53,721	$	37,899	$	21,036	$	58,935

Wealth Management Segment
Service charges on deposit accounts	$	47	$	—		$	47	$	45	$	—	$	45
Bank card and other fees		43		—			43		55		—		55
Wealth management		15,037		—			15,037		14,905		—		14,905
Other, net		261		55			316		31		58		89
Total noninterest income	$	15,388	$	55		$	15,443	$	15,036	$	58	$	15,094

Insurance Segment
Insurance commissions	$	21,960	$	—		$	21,960	$	20,154	$	—	$	20,154
Other, net		6		—			6		1		—		1
Total noninterest income	$	21,966	$	—		$	21,966	$	20,155	$	—	$	20,155

Consolidated
Service charges on deposit accounts	$	20,644	$	—		$	20,644	$	21,504	$	—	$	21,504
Bank card and other fees		14,070		1,125			15,195		13,405		291		13,696
Mortgage banking, net		—		13,737			13,737		—		20,311		20,311
Insurance commissions		21,960		—			21,960		20,154		—		20,154
Wealth management		15,225		—			15,225		15,045		—		15,045
Other, net		4,844		(475	)		4,369		2,982		492		3,474
Total noninterest income	$	76,743	$	14,387		$	91,130	$	73,090	$	21,094	$	94,184

(1)

(2)