Segment Information

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
General Banking
Net interest income	$	106,681		$	103,978		$	210,468		$	204,685
Provision for loan losses, net		2,593			2,731			4,284			6,842
Noninterest income		30,808			29,175			53,721			58,935
Noninterest expense		90,684			88,421			181,343			176,411
Income before income taxes		44,212			42,001			78,562			80,367
Income taxes		5,411			5,216			9,601			9,702
General banking net income	$	38,801		$	36,785		$	68,961		$	70,665

Selected Financial Information
Total assets	$	13,365,972		$	13,363,465		$	13,365,972		$	13,363,465
Depreciation and amortization	$	9,593		$	9,987		$	18,732		$	19,197

Wealth Management
Net interest income	$	988		$	1,136		$	1,954		$	2,467
Provision for loan losses, net		(1	)		(5	)		(3	)		(5	)
Noninterest income		7,740			7,480			15,443			15,094
Noninterest expense		7,136			7,088			14,155			13,964
Income before income taxes		1,593			1,533			3,245			3,602
Income taxes		398			384			807			901
Wealth management net income	$	1,195		$	1,149		$	2,438		$	2,701

Selected Financial Information
Total assets	$	109,106		$	94,447		$	109,106		$	94,447
Depreciation and amortization	$	67		$	28		$	136		$	55

Insurance
Net interest income	$	55		$	50		$	110		$	105
Noninterest income		11,091			10,736			21,966			20,155
Noninterest expense		8,281			8,291			16,624			15,890
Income before income taxes		2,865			2,495			5,452			4,370
Income taxes		721			616			1,372			1,093
Insurance net income	$	2,144		$	1,879		$	4,080		$	3,277

Selected Financial Information
Total assets	$	73,880		$	67,353		$	73,880		$	67,353
Depreciation and amortization	$	126		$	143		$	255		$	282

Consolidated
Net interest income	$	107,724		$	105,164		$	212,532		$	207,257
Provision for loan losses, net		2,592			2,726			4,281			6,837
Noninterest income		49,639			47,391			91,130			94,184
Noninterest expense		106,101			103,800			212,122			206,265
Income before income taxes		48,670			46,029			87,259			88,339
Income taxes		6,530			6,216			11,780			11,696
Consolidated net income	$	42,140		$	39,813		$	75,479		$	76,643

Selected Financial Information
Total assets	$	13,548,958		$	13,525,265		$	13,548,958		$	13,525,265
Depreciation and amortization	$	9,786		$	10,158		$	19,123		$	19,534