Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

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 nine months ended September 30, 2020 resulted in net losses of $133 thousand and $388 thousand, respectively, compared to a net loss of $122 thousand and a net gain of $124 thousand for the three and nine months ended September 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 September 30, 2020						Three Months Ended September 30, 2019
	Topic 606		Not Topic 606 (1)		Total		Topic 606		Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	7,557	$	—	$	7,557	$	11,041	$	—	$	11,041
Bank card and other fees		7,019		1,817		8,836		6,959		1,383		8,342
Mortgage banking, net		—		36,439		36,439		—		8,171		8,171
Wealth management		54		—		54		92		—		92
Other, net		1,496		40		1,536		1,792		138		1,930
Total noninterest income	$	16,126	$	38,296	$	54,422	$	19,884	$	9,692	$	29,576
Wealth Management Segment
Service charges on deposit accounts	$	20	$	—	$	20	$	24	$	—	$	24
Bank card and other fees		7		—		7		7		—		7
Wealth management		7,625		—		7,625		7,599		—		7,599
Other, net		27		15		42		22		32		54
Total noninterest income	$	7,679	$	15	$	7,694	$	7,652	$	32	$	7,684
Insurance Segment
Insurance commissions	$	11,562	$	—	$	11,562	$	11,072	$	—	$	11,072
Other, net		23		—		23		5		—		5
Total noninterest income	$	11,585	$	—	$	11,585	$	11,077	$	—	$	11,077
Consolidated
Service charges on deposit accounts	$	7,577	$	—	$	7,577	$	11,065	$	—	$	11,065
Bank card and other fees		7,026		1,817		8,843		6,966		1,383		8,349
Mortgage banking, net		—		36,439		36,439		—		8,171		8,171
Insurance commissions		11,562		—		11,562		11,072		—		11,072
Wealth management		7,679		—		7,679		7,691		—		7,691
Other, net		1,546		55		1,601		1,819		170		1,989
Total noninterest income	$	35,390	$	38,311	$	73,701	$	38,613	$	9,724	$	48,337

(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.

	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
	Topic 606		Not Topic 606 (1)		Total		Topic 606		Not Topic 606 (1)			Total
General Banking Segment
Service charges on deposit accounts	$	23,949	$	—	$	23,949	$	31,638	$	—		$	31,638
Bank card and other fees		20,294		1,600		21,894		20,986		2,508			23,494
Mortgage banking, net		—		97,667		97,667		—		21,908			21,908
Wealth management		219		—		219		280		—			280
Other, net		4,614		1,306		5,920		6,369		(392	)		5,977
Total noninterest income	$	49,076	$	100,573	$	149,649	$	59,273	$	24,024		$	83,297
Wealth Management Segment
Service charges on deposit accounts	$	57	$	—	$	57	$	71	$	—		$	71
Bank card and other fees		21		—		21		50		—			50
Wealth management		23,568		—		23,568		22,636		—			22,636
Other, net		77		37		114		283		87			370
Total noninterest income	$	23,723	$	37	$	23,760	$	23,040	$	87		$	23,127
Insurance Segment
Insurance commissions	$	34,980	$	—	$	34,980	$	33,032	$	—		$	33,032
Other, net		87		—		87		11		—			11
Total noninterest income	$	35,067	$	—	$	35,067	$	33,043	$	—		$	33,043
Consolidated
Service charges on deposit accounts	$	24,006	$	—	$	24,006	$	31,709	$	—		$	31,709
Bank card and other fees		20,315		1,600		21,915		21,036		2,508			23,544
Mortgage banking, net		—		97,667		97,667		—		21,908			21,908
Insurance commissions		34,980		—		34,980		33,032		—			33,032
Wealth management		23,787		—		23,787		22,916		—			22,916
Other, net		4,778		1,343		6,121		6,663		(305	)		6,358
Total noninterest income	$	107,866	$	100,610	$	208,476	$	115,356	$	24,111		$	139,467

(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.