Revenue from Contracts with Customers

9 Months Ended

Sep. 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 nine months ended September 30, 2019 resulted in a net loss of $122 thousand and a net gain of $124 thousand, respectively, compared to net gains of $224 thousand and $1.2 million for the three and nine months ended September 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 September 30, 2019						Three Months Ended September 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	$	11,041	$	—	$	11,041	$	11,054	$	—		$	11,054
Bank card and other fees		6,959		1,383		8,342		6,498		936			7,434
Mortgage banking, net		—		8,171		8,171		—		8,647			8,647
Wealth management		92		—		92		70		—			70
Other, net		1,791		138		1,929		1,670		(366	)		1,304
Total noninterest income	$	19,883	$	9,692	$	29,575	$	19,292	$	9,217		$	28,509

Wealth Management Segment
Service charges on deposit accounts	$	24	$	—	$	24	$	21	$	—		$	21
Bank card and other fees		7		—		7		25		—			25
Wealth management		7,599		—		7,599		7,719		—			7,719
Other, net		23		32		55		18		34			52
Total noninterest income	$	7,653	$	32	$	7,685	$	7,783	$	34		$	7,817

Insurance Segment
Insurance commissions	$	11,072	$	—	$	11,072	$	10,765	$	—		$	10,765
Other, net		5		—		5		2		—			2
Total noninterest income	$	11,077	$	—	$	11,077	$	10,767	$	—		$	10,767

Consolidated
Service charges on deposit accounts	$	11,065	$	—	$	11,065	$	11,075	$	—		$	11,075
Bank card and other fees		6,966		1,383		8,349		6,523		936			7,459
Mortgage banking, net		—		8,171		8,171		—		8,647			8,647
Insurance commissions		11,072		—		11,072		10,765		—			10,765
Wealth management		7,691		—		7,691		7,789		—			7,789
Other, net		1,819		170		1,989		1,690		(332	)		1,358
Total noninterest income	$	38,613	$	9,724	$	48,337	$	37,842	$	9,251		$	47,093

(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.

	Nine Months Ended September 30, 2019							Nine Months Ended September 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	$	31,638	$	—		$	31,638	$	32,513	$	—	$	32,513
Bank card and other fees		20,986		2,508			23,494		19,848		1,227		21,075
Mortgage banking, net		—		21,908			21,908		—		28,958		28,958
Wealth management		280		—			280		210		—		210
Other, net		6,368		(392	)		5,976		4,620		68		4,688
Total noninterest income	$	59,272	$	24,024		$	83,296	$	57,191	$	30,253	$	87,444

Wealth Management Segment
Service charges on deposit accounts	$	71	$	—		$	71	$	66	$	—	$	66
Bank card and other fees		50		—			50		80		—		80
Wealth management		22,636		—			22,636		22,624		—		22,624
Other, net		284		87			371		49		92		141
Total noninterest income	$	23,041	$	87		$	23,128	$	22,819	$	92	$	22,911

Insurance Segment
Insurance commissions	$	33,032	$	—		$	33,032	$	30,919	$	—	$	30,919
Other, net		11		—			11		3		—		3
Total noninterest income	$	33,043	$	—		$	33,043	$	30,922	$	—	$	30,922

Consolidated
Service charges on deposit accounts	$	31,709	$	—		$	31,709	$	32,579	$	—	$	32,579
Bank card and other fees		21,036		2,508			23,544		19,928		1,227		21,155
Mortgage banking, net		—		21,908			21,908		—		28,958		28,958
Insurance commissions		33,032		—			33,032		30,919		—		30,919
Wealth management		22,916		—			22,916		22,834		—		22,834
Other, net		6,663		(305	)		6,358		4,672		160		4,832
Total noninterest income	$	115,356	$	24,111		$	139,467	$	110,932	$	30,345	$	141,277

(1)

(2)