Segment Information

9 Months Ended

Sep. 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. 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 September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018
General Banking
Net interest income	$	107,540	$	105,935		$	318,008	$	310,620
Provision for loan losses, net		2,895		8,212			7,179		15,054
Noninterest income		29,575		28,509			83,296		87,444
Noninterest expense		93,709		89,288			275,052		265,699
Income before income taxes		40,511		36,944			119,073		117,311
Income taxes		4,432		3,460			14,033		13,162
General banking net income	$	36,079	$	33,484		$	105,040	$	104,149

Selected Financial Information
Total assets	$	13,421,295	$	13,269,567		$	13,421,295	$	13,269,567
Depreciation and amortization	$	10,255	$	9,758		$	28,987	$	28,955

Wealth Management
Net interest income	$	854	$	983		$	2,808	$	3,450
Provision for loan losses, net		4		(6	)		1		(11	)
Noninterest income		7,685		7,817			23,128		22,911
Noninterest expense		5,191		7,795			19,346		21,759
Income before income taxes		3,344		1,011			6,589		4,613
Income taxes		836		253			1,643		1,154
Wealth management net income	$	2,508	$	758		$	4,946	$	3,459

Selected Financial Information
Total assets	$	90,405	$	104,480		$	90,405	$	104,480
Depreciation and amortization	$	66	$	65		$	202	$	120

Insurance
Net interest income	$	72	$	65		$	182	$	170
Noninterest income		11,077		10,767			33,043		30,922
Noninterest expense		7,953		8,140			24,577		24,030
Income before income taxes		3,196		2,692			8,648		7,062
Income taxes		748		681			2,120		1,774
Insurance net income	$	2,448	$	2,011		$	6,528	$	5,288

Selected Financial Information
Total assets	$	73,086	$	65,765		$	73,086	$	65,765
Depreciation and amortization	$	141	$	155		$	396	$	437

Consolidated
Net interest income	$	108,466	$	106,983		$	320,998	$	314,240
Provision for loan losses, net		2,899		8,206			7,180		15,043
Noninterest income		48,337		47,093			139,467		141,277
Noninterest expense		106,853		105,223			318,975		311,488
Income before income taxes		47,051		40,647			134,310		128,986
Income taxes		6,016		4,394			17,796		16,090
Consolidated net income	$	41,035	$	36,253		$	116,514	$	112,896

Selected Financial Information
Total assets	$	13,584,786	$	13,439,812		$	13,584,786	$	13,439,812
Depreciation and amortization	$	10,462	$	9,978		$	29,585	$	29,512