Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

Note 9 – 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, 2021 resulted in a net loss of $41 thousand and a net gain of $18 thousand, respectively, compared to net losses of $185 thousand and $255 thousand for the three and six months ended June 30, 2020, respectively.

The following table presents noninterest income disaggregated by reportable operating segment and revenue stream for the periods presented ($ in thousands):

	Three Months Ended June 30, 2021							Three Months Ended June 30, 2020
	Topic 606		Not Topic 606 (1)			Total		Topic 606		Not Topic 606 (1)		Total
General Banking Segment
Service charges on deposit accounts	$	7,591	$	—		$	7,591	$	6,380	$	—	$	6,380
Bank card and other fees		8,519		(228	)		8,291		6,549		1,160		7,709
Mortgage banking, net		—		17,333			17,333		—		33,745		33,745
Wealth management		2		—			2		79		—		79
Other, net		1,699		251			1,950		1,354		784		2,138
Total noninterest income	$	17,811	$	17,356		$	35,167	$	14,362	$	35,689	$	50,051
Wealth Management Segment
Service charges on deposit accounts	$	22	$	—		$	22	$	17	$	—	$	17
Bank card and other fees		10		—			10		8		—		8
Wealth management		8,944		—			8,944		7,492		—		7,492
Other, net		35		9			44		24		9		33
Total noninterest income	$	9,011	$	9		$	9,020	$	7,541	$	9	$	7,550
Insurance Segment
Insurance commissions	$	12,217	$	—		$	12,217	$	11,868	$	—	$	11,868
Other, net		7		—			7		42		—		42
Total noninterest income	$	12,224	$	—		$	12,224	$	11,910	$	—	$	11,910
Consolidated
Service charges on deposit accounts	$	7,613	$	—		$	7,613	$	6,397	$	—	$	6,397
Bank card and other fees		8,529		(228	)		8,301		6,557		1,160		7,717
Mortgage banking, net		—		17,333			17,333		—		33,745		33,745
Insurance commissions		12,217		—			12,217		11,868		—		11,868
Wealth management		8,946		—			8,946		7,571		—		7,571
Other, net		1,741		260			2,001		1,420		793		2,213
Total noninterest income	$	39,046	$	17,365		$	56,411	$	33,813	$	35,698	$	69,511

(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, 2021						Six Months Ended June 30, 2020
	Topic 606		Not Topic 606 (1)		Total		Topic 606		Not Topic 606 (1)			Total
General Banking Segment
Service charges on deposit accounts	$	14,929	$	—	$	14,929	$	16,392	$	—		$	16,392
Bank card and other fees		15,703		2,052		17,755		13,275		(217	)		13,058
Mortgage banking, net		—		38,137		38,137		—		61,228			61,228
Wealth management		20		—		20		165		—			165
Other, net		3,087		891		3,978		3,118		1,266			4,384
Total noninterest income	$	33,739	$	41,080	$	74,819	$	32,950	$	62,277		$	95,227
Wealth Management Segment
Service charges on deposit accounts	$	40	$	—	$	40	$	37	$	—		$	37
Bank card and other fees		18		—		18		14		—			14
Wealth management		17,342		—		17,342		15,943		—			15,943
Other, net		67		16		83		50		22			72
Total noninterest income	$	17,467	$	16	$	17,483	$	16,044	$	22		$	16,066
Insurance Segment
Insurance commissions	$	24,662	$	—	$	24,662	$	23,418	$	—		$	23,418
Other, net		30		—		30		64		—			64
Total noninterest income	$	24,692	$	—	$	24,692	$	23,482	$	—		$	23,482
Consolidated
Service charges on deposit accounts	$	14,969	$	—	$	14,969	$	16,429	$	—		$	16,429
Bank card and other fees		15,721		2,052		17,773		13,289		(217	)		13,072
Mortgage banking, net		—		38,137		38,137		—		61,228			61,228
Insurance commissions		24,662		—		24,662		23,418		—			23,418
Wealth management		17,362		—		17,362		16,108		—			16,108
Other, net		3,184		907		4,091		3,232		1,288			4,520
Total noninterest income	$	75,898	$	41,096	$	116,994	$	72,476	$	62,299		$	134,775

(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.