Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

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 September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
General Banking
Net interest income	$	104,738		$	106,806	$	310,517		$	315,708
Provision for credit losses		3,973			2,672		40,535			6,961
Noninterest income		54,422			29,576		149,649			83,297
Noninterest expense		98,384			93,103		308,189			273,211
Income before income taxes		56,803			40,607		111,442			118,833
Income taxes		7,971			4,456		14,155			13,973
General banking net income	$	48,832		$	36,151	$	97,287		$	104,860
Selected Financial Information
Total assets	$	15,255,359		$	13,221,723	$	15,255,359		$	13,221,723
Depreciation and amortization	$	10,081		$	10,254	$	29,297		$	28,985
Wealth Management
Net interest income	$	1,401		$	1,588	$	4,481		$	5,108
Provision for credit losses		(2,213	)		227		(9	)		219
Noninterest income		7,694			7,684		23,760			23,127
Noninterest expense		7,067			5,797		22,527			21,187
Income before income taxes		4,241			3,248		5,723			6,829
Income taxes		1,009			812		1,380			1,703
Wealth management net income	$	3,232		$	2,436	$	4,343		$	5,126
Selected Financial Information
Total assets	$	224,773		$	289,977	$	224,773		$	289,977
Depreciation and amortization	$	69		$	67	$	203		$	204
Insurance
Net interest income	$	68		$	72	$	161		$	182
Noninterest income		11,585			11,077		35,067			33,043
Noninterest expense		8,508			7,953		25,712			24,577
Income before income taxes		3,145			3,196		9,516			8,648
Income taxes		769			748		2,338			2,120
Insurance net income	$	2,376		$	2,448	$	7,178		$	6,528
Selected Financial Information
Total assets	$	78,030		$	73,086	$	78,030		$	73,086
Depreciation and amortization	$	194		$	141	$	500		$	396
Consolidated
Net interest income	$	106,207		$	108,466	$	315,159		$	320,998
Provision for credit losses		1,760			2,899		40,526			7,180
Noninterest income		73,701			48,337		208,476			139,467
Noninterest expense		113,959			106,853		356,428			318,975
Income before income taxes		64,189			47,051		126,681			134,310
Income taxes		9,749			6,016		17,873			17,796
Consolidated net income	$	54,440		$	41,035	$	108,808		$	116,514
Selected Financial Information
Total assets	$	15,558,162		$	13,584,786	$	15,558,162		$	13,584,786
Depreciation and amortization	$	10,344		$	10,462	$	30,000		$	29,585