Segment Information

3 Months Ended

Mar. 31, 2020

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 22 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2019 Annual Report. During the first quarter of 2020, Trustmark revised the composition of its operating segments by moving the Retail 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,
	2020			2019
General Banking
Net interest income	$	102,403		$	103,005
Provision for credit losses		18,374			1,693
Noninterest income		45,176			22,913
Noninterest expense		106,450			90,015
Income before income taxes		22,755			34,210
Income taxes		2,091			4,155
General banking net income	$	20,664		$	30,055

Selected Financial Information
Total assets	$	13,663,877		$	13,077,106
Depreciation and amortization	$	8,794		$	9,139

Wealth Management
Net interest income	$	1,504		$	1,748
Provision for credit losses		2,207			(4	)
Noninterest income		8,516			7,703
Noninterest expense		8,516			7,663
Income before income taxes		(703	)		1,792
Income taxes		(176	)		444
Wealth management net income	$	(527	)	$	1,348

Selected Financial Information
Total assets	$	280,181		$	329,319
Depreciation and amortization	$	67		$	69

Insurance
Net interest income	$	45		$	55
Noninterest income		11,572			10,875
Noninterest expense		8,844			8,343
Income before income taxes		2,773			2,587
Income taxes		692			651
Insurance net income	$	2,081		$	1,936

Selected Financial Information
Total assets	$	75,771		$	71,592
Depreciation and amortization	$	135		$	129

Consolidated
Net interest income	$	103,952		$	104,808
Provision for credit losses		20,581			1,689
Noninterest income		65,264			41,491
Noninterest expense		123,810			106,021
Income before income taxes		24,825			38,589
Income taxes		2,607			5,250
Consolidated net income	$	22,218		$	33,339

Selected Financial Information
Total assets	$	14,019,829		$	13,478,017
Depreciation and amortization	$	8,996		$	9,337