Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Note 21 – Segment Information

Trustmark’s management reporting structure includes three segments: General Banking, Wealth Management and Insurance.  The General Banking Division is responsible for all traditional banking products and services, including loans and deposits.  The General Banking Division also consists of internal operations such as Human Resources, Executive Administration, Treasury (Funds Management), Public Affairs and Corporate Finance.  The Wealth Management Division provides customized solutions for customers by integrating financial services with traditional banking products and services such as money management, full-service brokerage, financial planning, personal and institutional trust and retirement services.  Through Fisher Brown Bottrell Insurance, Inc. (FBBI), a wholly owned subsidiary of TNB, Trustmark’s Insurance Division provides a full range of retail insurance products including commercial risk management products, bonding, group benefits and personal lines coverage.

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 Division, 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):

	Years Ended December 31,
	2016		2015		2014
General Banking
Net interest income	$	386,596	$	391,092	$	404,214
Provision for loan losses, net		14,714		11,800		7,382
Noninterest income		107,059		105,477		107,457
Noninterest expense		354,555		348,270		355,693
Income before income taxes		124,386		136,499		148,596
Income taxes		25,303		29,761		33,726
General banking net income	$	99,083	$	106,738	$	114,870
Selected Financial Information
Average assets	$	12,872,123	$	12,196,144	$	11,957,761
Depreciation and amortization	$	35,692	$	36,072	$	35,038
Wealth Management
Net interest income	$	726	$	337	$	851
Noninterest income		30,117		31,245		32,209
Noninterest expense		24,165		25,346		26,733
Income before income taxes		6,678		6,236		6,327
Income taxes		2,554		2,386		2,105
Wealth Management net income	$	4,124	$	3,850	$	4,222
Selected Financial Information
Average assets	$	6,087	$	4,034	$	1,821
Depreciation and amortization	$	174	$	183	$	190
Insurance
Net interest income	$	211	$	336	$	271
Noninterest income		36,767		36,427		33,476
Noninterest expense		28,578		28,046		26,579
Income before income taxes		8,400		8,717		7,168
Income taxes		3,196		3,267		2,698
Insurance net income	$	5,204	$	5,450	$	4,470
Selected Financial Information
Average assets	$	59,810	$	70,017	$	68,448
Depreciation and amortization	$	747	$	801	$	844
Consolidated
Net interest income	$	387,533	$	391,765	$	405,336
Provision for loan losses, net		14,714		11,800		7,382
Noninterest income		173,943		173,149		173,142
Noninterest expense		407,298		401,662		409,005
Income before income taxes		139,464		151,452		162,091
Income taxes		31,053		35,414		38,529
Consolidated net income	$	108,411	$	116,038	$	123,562
Selected Financial Information
Average assets	$	12,938,020	$	12,270,195	$	12,028,030
Depreciation and amortization	$	36,613	$	37,056	$	36,072