Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

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, net. Other real estate sales for the three and six months ended June 30, 2020 resulted in net losses of $185 thousand and $255 thousand, respectively, compared to net gains of $124 thousand and $246 thousand for the three and six months ended June 30, 2019, 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, 2020						Three Months Ended June 30, 2019
	Topic 606		Not Topic 606 (1)		Total		Topic 606		Not Topic 606 (1)			Total
General Banking Segment
Service charges on deposit accounts	$	6,380	$	—	$	6,380	$	10,357	$	—		$	10,357
Bank card and other fees		6,549		1,160		7,709		7,162		823			7,985
Mortgage banking, net		—		33,745		33,745		—		10,295			10,295
Wealth management		79		—		79		97		—			97
Other, net		1,354		784		2,138		2,333		(259	)		2,074
Total noninterest income	$	14,362	$	35,689	$	50,051	$	19,949	$	10,859		$	30,808

Wealth Management Segment
Service charges on deposit accounts	$	17	$	—	$	17	$	22	$	—		$	22
Bank card and other fees		8		—		8		19		—			19
Wealth management		7,492		—		7,492		7,645		—			7,645
Other, net		24		9		33		25		29			54
Total noninterest income	$	7,541	$	9	$	7,550	$	7,711	$	29		$	7,740

Insurance Segment
Insurance commissions	$	11,868	$	—	$	11,868	$	11,089	$	—		$	11,089
Other, net		42		—		42		2		—			2
Total noninterest income	$	11,910	$	—	$	11,910	$	11,091	$	—		$	11,091

Consolidated
Service charges on deposit accounts	$	6,397	$	—	$	6,397	$	10,379	$	—		$	10,379
Bank card and other fees		6,557		1,160		7,717		7,181		823			8,004
Mortgage banking, net		—		33,745		33,745		—		10,295			10,295
Insurance commissions		11,868		—		11,868		11,089		—			11,089
Wealth management		7,571		—		7,571		7,742		—			7,742
Other, net		1,420		793		2,213		2,360		(230	)		2,130
Total noninterest income	$	33,813	$	35,698	$	69,511	$	38,751	$	10,888		$	49,639

(1)

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, 2020							Six Months Ended June 30, 2019
	Topic 606		Not Topic 606 (1)			Total		Topic 606		Not Topic 606 (1)			Total
General Banking Segment
Service charges on deposit accounts	$	16,392	$	—		$	16,392	$	20,597	$	—		$	20,597
Bank card and other fees		13,275		(217	)		13,058		14,027		1,125			15,152
Mortgage banking, net		—		61,228			61,228		—		13,737			13,737
Wealth management		165		—			165		188		—			188
Other, net		3,118		1,266			4,384		4,577		(530	)		4,047
Total noninterest income	$	32,950	$	62,277		$	95,227	$	39,389	$	14,332		$	53,721

Wealth Management Segment
Service charges on deposit accounts	$	37	$	—		$	37	$	47	$	—		$	47
Bank card and other fees		14		—			14		43		—			43
Wealth management		15,943		—			15,943		15,037		—			15,037
Other, net		50		22			72		261		55			316
Total noninterest income	$	16,044	$	22		$	16,066	$	15,388	$	55		$	15,443

Insurance Segment
Insurance commissions	$	23,418	$	—		$	23,418	$	21,960	$	—		$	21,960
Other, net		64		—			64		6		—			6
Total noninterest income	$	23,482	$	—		$	23,482	$	21,966	$	—		$	21,966

Consolidated
Service charges on deposit accounts	$	16,429	$	—		$	16,429	$	20,644	$	—		$	20,644
Bank card and other fees		13,289		(217	)		13,072		14,070		1,125			15,195
Mortgage banking, net		—		61,228			61,228		—		13,737			13,737
Insurance commissions		23,418		—			23,418		21,960		—			21,960
Wealth management		16,108		—			16,108		15,225		—			15,225
Other, net		3,232		1,288			4,520		4,844		(475	)		4,369
Total noninterest income	$	72,476	$	62,299		$	134,775	$	76,743	$	14,387		$	91,130

(1)